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In recent developments, the Central Bank of Iraq (CBI) has called

for clarification regarding the Iraq Federal Supreme Court ruling.

The courts ruling was to place the CBI under the control of the

Council of Ministries and under the direct control of Prime

Minister Maliki. This all began when Maliki asked the courts for

guidance in November 2010, just before he was appointed the new

Prime Minister. Now, the CBI is asking for clarification of the

ruling and it is unknown whether the Iraq Federal Supreme Court

will issue one or not.

The Development Fund of Iraq (DFI) is located in the Federal

Reserve of New York (FRNY) which holds an estimated 50 billion

dollars in the Iraq account. The CBI has stated and seems to

believe that the DFI funds will be in danger when the CBI is placed

under the control of the Council Ministries. This is not completely

the case nor is it completely accurate.

The Iraq's funds are now protected by the United Nations as per

Chapter VII of the U.N.Charter. However, Iraq has emerged with

limits from Chapter VII and this protection will only hold for six

months. The creditors, whether they be private or government will

eventually ask Iraq to pay back its debts. This will no doubt

create a problem for the Iraqi government to service its debts. The

debt servicing cost would ring up approximately 1.3 billion per

month and could jump up to 5 billion in the future. Iraq may

eventually find itself in a position where they are obligated to

repay the countries debts resulting in a negative impact on the

local economy. The result being a depletion of foreign currency

reserves and oil revenues. The Iraqi government will continue with

the DFI fund in New York. However, it will be under a different

name thus allowing the Iraqi government to protect its growing 50

billion dollars.

The International Monetary Fund (IMF) recently asked the Ministry

of Finance (MoF) to start privatizing state owned banks so that

Iraq will be able to obtain IMF loans. The Iraqi government has

responded saying it is still several years away. The IMF is

reminding Iraq about the pledge Iraq made in 2007 in regards to

removing subsidies given to industrial sectors.

The 2011 Iraq Federal Budget is approximately 78 trillion dinars.

There is no set dinar exchange rate associated with the federal

budget. The budget is calculated at the Oil price of $73 per

barrel. The 2011 Budget will have some changes coming as the Kurds

are upset about only getting 11% instead of the usual 17% due to

calculations of the last years old prices. Expect more Budget

delays in Parliament as there is backing to close the accounts of

2010. Meaning that, the state general budgets for the last 4 years

were endorsed without having the closing of accounts of the

previous years submitted to Parliament. Previously reported, the

CBI was asked by the Ministry of Finance to remove all liquidity

from all Ministry budgets monies that have not been spent in the

fiscal year. Also, in December Prime Minister Maliki instructed the

Ministry of Finance to submit a detailed report on the 2010 budget

funds posted to ledger books. The report should highlight the names

of the ministries that have not used up their funds.

During a recent private meeting, in which I attended, the Iraqi

currency was addressed. The Dinar currency will be going through

restructuring in terms of specifications and shapes. When this

transpires, both the existing currency and the new currency will be

in circulation at the same time. That's right. One will not be

taken out beforehand. Also discussed was the previously mentioned

topic of the 100,000 dinar bank note. It appears that talks are

still on the table in regards to this topic. The idea has not been

flushed out.

In other news, The Iraq Central Bank has announced that seven

foreign and regional banks are now operating in Iraq in compliance

with the CBI's financial controls. The CBI is also working very

hard to activate banking licenses for the following banks; The

British-Iraqi Bank, the Ceyhan Bank, a Turkish Bank, the Joint

Bahrain Bank, the Iranian Qom Bank, the National Bank of Kuwait,

and the Bank of China.

I have also just learned that the World Bank will be giving the

Iraqi government a loan of an additional 250 million dollars. That

announcement will be made very shortly. The last loan they were

given was back in April 2010 and that was for 250 million.

Also, the Iraqi government is currently handing out 150 liters of

heating oil for every citizen for the months of January, February,

and March. The weather here has been unusually colder than normal

as it also seems to be in many other parts of the world. In regards

to the official inflation rate, it has risen to 3%.

To the many loyal readers and followers, I appreciate all the very

kind emails that I have received over the past several weeks. My

work here in Baghdad sometimes prevents me from dedicating the time

that I'd like to in reporting to my loyal following. I'm hoping to

get back on schedule to where I was posting more frequently. Thanks

for remaining faithful!

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"During a recent private meeting, in which I attended, the Iraqi

currency was addressed. The Dinar currency will be going through

restructuring in terms of specifications and shapes. When this

transpires, both the existing currency and the new currency will be

in circulation at the same time. That's right. One will not be

taken out beforehand. Also discussed was the previously mentioned

topic of the 100,000 dinar bank note. It appears that talks are

still on the table in regards to this topic. The idea has not been

flushed out."

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I never took him as 'doom & gloom'. I prefer to keep it real. Too much hype and bogus info already floating around.

Thanks for the post, I especially liked the part about the two currency's existing simultaniously. This would confirm no lop. And true this sounds like a different another site! No doom and gloom stuff!

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Really? Because I didn't see where it implied that. Not seeing that as a confirmation at all.

Quote: 'estephan:

'Thanks for the post, I especially liked the part about the two currency's existing simultaniously. This would confirm no lop.

Edited by TAE
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I don't believe he is in iraq either attending meetings and all that crap he just wants more people on his site, and buying his product. He's been gone for weeks then he comes out of the wood work rehashing old information and twisting it to make himself seem informed especially after we have all been disillusioned by the constant monday RV's so he takes advantage trying to seem like the one with the answers and that we should keep following his bread crumbs to the RV. I'm sorry but I rather just keep watching for news and the CBI and the forex for RV information.

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AmericanContractor is pretty much about the ONLY one who does not have a product, posts no adds on his site and doesn't ask for any kind of subscription fees. If you can prove me wrong I'd love the challenge. If not, I suggest you do your homework instead of criticizing others that do theirs.

I don't believe he is in iraq either attending meetings and all that crap he just wants more people on his site, and buying his product. He's been gone for weeks then he comes out of the wood work rehashing old information and twisting it to make himself seem informed especially after we have all been disillusioned by the constant monday RV's so he takes advantage trying to seem like the one with the answers and that we should keep following his bread crumbs to the RV. I'm sorry but I rather just keep watching for news and the CBI and the forex for RV information.

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I don't believe he is in iraq either attending meetings and all that crap he just wants more people on his site, and buying his product.

i guess he is the only one who wants more people to his site? if i'm not mistaken all of the dinar sites out there are always bragging about how they are the #1 dinar site on the internet and brag on how many thousands of members they have. and if i'm also not mistaken all these sites are bragging on what "product" they offer such as post RV investments, post RV cruises or parties, VIP sections, conference calls, radio talk shows....etc. what is AC offering? i'm not saying i agree with AC and his info any more than i do in any of the other sites and their "intel" but he hasn't said RV every friday and monday like some do every week. IMO no one knows nothing and has no "intel or sources" period!!!! B)

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Yeah I agree.

Doesn't call an RV every Friday & Monday. Maybe that's why some don't want to agree. I guess some like that kinda stuff. :wacko:

i guess he is the only one who wants more people to his site? if i'm not mistaken all of the dinar sites out there are always bragging about how they are the #1 dinar site on the internet and brag on how many thousands of members they have. and if i'm also not mistaken all these sites are bragging on what "product" they offer such as post RV investments, post RV cruises or parties, VIP sections, conference calls, radio talk shows....etc. what is AC offering? i'm not saying i agree with AC and his info any more than i do in any of the other sites and their "intel" but he hasn't said RV every friday and monday like some do every week. IMO no one knows nothing and has no "intel or sources" period!!!! B)

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I never took him as 'doom & gloom'. I prefer to keep it real. Too much hype and bogus info already floating around.

I will have to conceed here , doom and gloom is not the words. Sometimes amc is just to practical! :unsure: We all get hyped up on this investment and then amc kind of brings it down a notch. And at our high points this has been hard stuff to read. But I suppose this helps to balance this crazy ride.

Really? Because I didn't see where it implied that. Not seeing that as a confirmation at all.

Quote: 'estephan:

'Thanks for the post, I especially liked the part about the two currency's existing simultaniously. This would confirm no lop.

It did imply the lower denominations , If a 5 iqd note is in circulation with a 5000 iqd the face value of a 5000 iqd must remain 5000 iqd ... LOP would remove 3 zeros from the 5000 iqd and cause the 5 iqd to be .005 iqd or $00.00000425

See these 5 zeros behind the decimal point makes this value nil (actually 4 zeros would accomplish that.

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however, if the 100,000 dinar note is still under consideration, that is not good news... that would mean an RV is nowhere in sight if they need to produce a 100k dinar note to be able to do everyday business

That is truely the other end of the spectrum Don. But what I don'r understand is the need for this 100,000 note under any circumstances the 25,000 note should easily suffice , even in our deepest darkest fears!

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Yeah. The 100,000 note bothers me too.

I'm not seeing the way others are trying to twist it.

It is what it is. Think about the circumstances for why it would be made. Not positive.

But it hasn't been made yet so let's just see how this rides out.

however, if the 100,000 dinar note is still under consideration, that is not good news... that would mean an RV is nowhere in sight if they need to produce a 100k dinar note to be able to do everyday business

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