ALJAZEERA - Strategy To Raise The Value Of The Iraqi Dinar [Aug 4 2010]

[Dinerry]

Article Date: November 13 2010

Original date : August 4 2010

The Article :

AN IRAQI OFFICIAL ANNOUNCED THE ADOPTION OF A NEW STRATEGY INTENDED TO RAISE THE VALUE OF THE IRAQI DINAR AGAINST FOREIGN CURRENCIES.

The chancellor said the Central Bank of the appearance of Dr. Mohammed Saleh in a statement of the island, “"I HAVE BEEN WORKING FOR YEARS TO IMPROVE THE VALUE OF THE IRAQI DINAR EXCHANGE

...and was taking several measures until we came to the stability of its value at 1170 dinars to the dollar.”

He explained that he had talked with some fluctuations up and down according to the impact of the overall situation in Iraq in the absence of stability.

Reform Progress

He disclosed that the new strategy has begun the reform of management system of the national currency and payment system of Iraq, said that this will be the basis in the application of Istratejp to reform the currency. The Iraqi official was likely that these steps will take a year or more.

On the zeros added in the Iraqi currency, which made the value of the disbursement of land, Saleh said that the zeros added that high inflation rates since the Iran-Iraq war and the subsequent siege and invasion, and thus doubled the cash block several times.

In 1990, the cash block of 28 billion dinars, and became a six trillion dinars in 2003, and now stands at 25 trillion dinars. He said that this has become necessary to change the payment system because of the Iraqi economy on the verge of developing and producing oil major which leads to a large expenditure.

ACCORDING TO THE ADVISER AT THE CBI, THE NEW STRATEGY WILL TRANSFORM THE CURRENT MONETARY MASS (25 Trillion Dinars) TO $15 Billion THROUGH THE ADOPTION OF COINS AND THE NEW IRAQI CURRENCY.

And the ability to withstand the Iraqi dinar against foreign currencies, SALEH SAID THAT "THE IRAQI ECONOMY IS STRONG AND HAS GREAT RESOURCES TO QUALIFY TO STAND IN FRONT OF FOREIGN EXCHANGE IF THERE ARE ECONOMIC AND MONETARY POLICY IS CORRECT, AND POLITICAL AND ECONOMIC STABILITY AND SECURITY."

HE EXPRESSED OPTIMISM THAT THE IRAQI ECONOMY WILL RECOVER, which is reflected in the rise of the dinar against foreign currencies.

Relative stability

For his part, said a banking expert, Mohammed al-Samarrai said the Iraqi dinar is witnessing a relatively stable for the time being, and security conditions influenced the rise and a slight decrease is not as great as in the past.

He assured the island revealed that the dinar is witnessing now balanced and influenced by a simple economic decisions and the political right in the exchange rate, no prejudice was balanced.

He hoped that the high value if foreign investors have entered the Iraqi market, or if there is openness towards the private sector. He called Samurai to the reconstruction of the many industrial projects that have been stalled as a result of the blockade and invasion which led to the destruction of industrial facilities equipment.

He pointed to the neglect of a giant 36 factories in the past seven years. AND THE ACTIONS NECESSARY TO RAISE THE VALUE OF THE DINAR AGAINST FOREIGN CURRENCIES,

“Said Samarrai, including the STABILITY OF SECURITY AND POLITICAL SITUATION AND MAKE DECISIONS AND LAW THAT ENCOURAGE THE PRIVATE SECTOR AND SUPPORTED BY, AND ENCOURAGE THE ENTRY OF FOREIGN AND DOMESTIC INVESTMENT, AND ENCOURAGE THE RETURN OF TALENT TO REBUILD IT."

Surplus oil

The Iraqi banking expert Mohamed Kamel Hussein said that there was a perception among the Iraqi Central Bank to raise three zeroes from the value of the dinar, by issuing a new currency to improve its value.

However, he believed that the lifting of the three zeros will not change anything because the factors affecting THE EXCHANGE OF THE DINAR against foreign currency DEPENDS ON THE SURPLUS THAT IS SUPPLIED BY OIL REVENUES.

And provides lift the LIFT the productive capacity of large oil revenues DIMINISH THE VALUE OF INFLATION, and thus RAISE THE VALUE OF THE DINAR BY PROVIDING A SURPLUS OF FOREIGN CURRENCY.

THE EXCHANGE VALUE OF THE IRAQ DINAR WAS THE STRONGEST REGION IN THE LATE SEVENTIES OF THE LAST CENTURY, BUT BEGAN TO DECLINE DURING THE IRAN-IRAQ WAR BEFORE IT COULD HIT THE SIEGE.

Have fallen to their LOWEST LEVELS DURING THE U.S. INVASION IN 2003, amounting to U.S. dollar exchange rate four thousand Iraqi dinars

http://bit.ly/9ARsbK

Edited November 14, 2010 by Dinerry

[Traconesu02]

Thanks for the post Dinerry

[ozark]

:D

[SteveI]

Very nice post with positive information. Thank you for sharing. God Bless.

[lechesuerte]

Thanks for the post.

[A. Zuccaro]

Thanks for the post! Ann

[jfv]

Great Article..Thanks for the post..

[tcjams]

Great find! Thanks!!

[MovieMaker]

Awsome, thanks

[Butifldrm]

Great Post. Thanks.

[Soup]

...

However, he believed that the lifting of the three zeros will not change anything because the factors affecting THE EXCHANGE OF THE DINAR against foreign currency DEPENDS ON THE SURPLUS THAT IS SUPPLIED BY OIL REVENUES.

...

I am a new investor so I may not be accurate on my thinking, but wouldn't it be better if the GOI RV's the Dinar based on PROJECTED oil revenues, not ACTUAL surplus that is supplied by oil revenues?

I do not know what the current oil production rate is vs. what the short and long term production projections are, but the potential has to be huge if Iraq has the world's second largest untapped oil supply.

It seems to me that the article writer is speaking of more of long term maintenance of the Dinar and keeping its growth stable based on its oil production, industrial activity and foreign investors... which is good. But when it comes to a RV rate being set, I wonder where the line will be drawn between an actual and projected economy based on potential and current outputs. From everything I have been reading on this site for the last three days, it seems so many factors that are not typical in the average Country's economy are being brought into consideration, it is tough for me to wrap my head around everything they will or might base the value of the Dinar on.

When this article was published in August, had not heard of this investment opportunity, so I am a "Johnny Come Lately" ... hopefully a last minute one sliding into home base.

[tampagirl]

Thanks for the post!!!! GOOOOOOOOOOOOOOOOOOOOOOOOOOOOO RVVVVVVVVVVVVVVVVVVVVVVV!!!!!!

[Eddinar]

Great job Dinerry! Awesome post...

[filipina girl]

Great post Dinerry!!!

[Az Joe]

Not sure why everyone seems happy when another LOP article comes out.The gurus twist them and say there good news but I really don't see it that way.Worst part is if they do LOP they will say we have said that is what we had planned and told everyone we were going to do that.If they LOP we get burnt nobody gets to retire everyone has to get up and go to work in the morning.If they LOP we should get our investment back and maybe a small profit but no retireing.If they LOP this really was a scam and after 5 years of waiting that would be very disapointing.GO RV!!!!!!!!!!NO LOP!!!!!!!!!!!!!!!!!!!!!!!