DrDinar Blog

Iraq Chapter 7 Recovery Involves American Commitment

20 years after the 1990 Gulf War and the Iraqi Government is still faced with the clean up in the form of 73 United Nations sanctions.  American coalition forces helped to create these sanctions.  Today’s post Saddam agenda now has America committed to the recovery. 

(Iraq) “Will not regain full sovereignty and independence without getting rid of these resolutions”, says Hoshyar Zebari, Iraq’s Foreign Minister in July of 2009.

The Government of Kuwait continues to siphon a percentage of oil revenue from Iraq with the help of these United Nation sanctions.  Kuwait also owns 60% of the banks in Iraq.  So if you can imagine the correlation of these two variables, everything is working together in the preparation of Iraq’s oil based recovery. 

Understanding a ‘ball park’ time line for the revaluation of the Iraqi Dinar would require a broad look at all the parts of the puzzle that once together form an inevitable platform for the Dinar to springboard from. 

Iraq elections in march of 2010 will be followed by the passing of the hydrocarbon law.  This will increase oil revenue and combined with a forecast of increasing oil prices Iraq will be much better positioned for removal of sanctions and a revaluation. 

Status of Forces Agreement was signed by Iraq Government officials which in essence was a promise of the U.S. Government to help out Iraq chapter 7.  Iraq is not out of the woods yet but the country is in a position where full independence militarily is within reach. 

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Written by Darren Chabluk for http://DrDinar.com
This article may be reproduced online or offline as
long as this box remains and is hyperlinked online.
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Warka ATM Card Works In 210 Counties 

Officials from the Al Warka Bank in Iraq announced in a press conference in Erbil that a pre paid MasterCard tied to the global network is now available.

Banking with Warka in Iraq allows a foreign account holder to earn up to 6% annual interest with an Iraqi bank account without having to go to Iraq.  There is only a $10US minimum to open the account also.

The new MasterCard for offered by Warka is the only one of its kind available anywhere in Iraq.  The card is interfaced directly with the SWIFT banking system for easy International payments from any bank that accepts MasterCard payments. 

Asking your Warka banker to set you up with one of these cards may be a good idea.  Requesting the card to be linked to your Dinar savings account would be even better.  These are simple features that would effectively allow you to withdraw your Dinars from a bank machine anywhere in the world.  You would get the local currency instead of dinars and the exchange rate would include a new banking fee of about 2% minimum plus other fixed ATM fees for international use. 

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Written by Darren Chabluk for http://DrDinar.com
This article may be reproduced online or offline
as long as this box remains and hyperlinked online.
DrDinar helps people with Warka procedures.
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Warka ‘Rule Breaker’ Becomes ‘Rule Maker’

If your like me you know about Warka Bank in Iraq and their front line reputation in opening accounts for foreign companies and private Dinar investors. But what about this rule breaker, rule maker bit you may ask. Allow me to change the subject briefly then tie it all back together for you.

Rule Breaker/Rule Maker explained

Take a look at MicrosoftÒ in the very early 1990’s when AppleÒ owned the patent on what became a billion dollar function in a software application. I’m talking about the ability of a window, in WindowsÒ to be able to over lap other windows.

AppleÒ in a nutshell would allow MicrosoftÒ to create a software application that permitted the user to open multiple windows in one computer screen but AppleÒ owned the patent on the ability of those windows to be able to overlap one another.

What did Bill Gates do? Well we all know he created WindowsÒ and explicitly broke the rules regarding Apple’s intellectual property. MicrosoftÒ grew so fast that they became a rule maker. Dominating the software industry with what became a monopoly in Internet access software.

American ContractorÓ a personal security specialist who blogs right there from Iraq has deadly accuracy when it comes to gathering and broadcasting Iraq investing and Iraq current events intelligence. I’ve chat with him and regularly read his broadcasts for years already. Here is one of American Contractor’s blog post headlines from just over 2 years ago regarding Warka Bank….

***Start Quote***

“December 14 ‘2007 blog post by http://www.AmericanContractor.com
 CEO Al-Warka Bank; Assets and Shares frozen by ISX”
   -Courtesy of American Contractor

***End Quote***

Sounds a bit scary don’t it,…. It does to me too…. but let us jump from fall of 2007 to March of 2009

Warka Becomes A Rule Maker

Foreign investment revenue for Warka in Iraq in January and February 2009 was under 1 million US dollars per month. When Warka online banking opened in March of 2009 the bank experienced exponential growth that no one would have predicted.

Warka bank foreign investment revenue from folks who want to buy dinar like you and I went from under 1 million US per month to over 1 billion US in march 2009. Just from opening a website that accepts online applications and allows warka online banking in the form of viewing account balances and things of that nature.

Well, what the exponential growth in revenue did for Bill Gates happened with Warka too. Imagine being able to pay off all the law suits that had been brewing before the exponential growth in revenue with money left over to - influence law makers, thus becoming a Rule Maker.

There came a point where President Bill Clinton publicly gave Bill Gates a hug when Mr Gates was hit with a custom tailored change in law that would help level the playing field for competition in the software industry. Bill Clinton didn’t put Mr Gates in jail, he just gave him a hug.

Al-Warka, although I don’t know much about him; Al must be a likable guy to have a monopoly on instant bank machines in Iraq way back in the Saddam Hussein era. Owning a piece of land for a house back then was virtually impossible unless you married a women who had ties to the Saddam regime, or a brother in Saddam’s honourable Republican Guard which would be comparable to the Secret Service in the US.

Owning Dinar in a bank account in Iraq at Warka is not nearly as risky as it was a mere 2 years ago. Opportunity access procedures is something you need to be much more concerned about. How to do, what to do, what not to do, regarding a new Warka account.

Dinar Banknotes are not the only way to own dinar and diversification is key to adding strength to any portfolio.

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Written by Darren Chabluk for http://DrDinar.com
This article may be reprinted online or offline as long
As this box remains and the link is hyperlinked online.
DrDinar specializes in Iraq investing procedures
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Iraq Ministry Of Oil Set To Be Leading Oil Producer

If you are like me you like to take the good Dinar news with the bad. Ad Melkert with the United Nations is Iraq’s leading UN official.

“I’d like to tell everybody that seven years is not a lot. You see enormous changes in a country that actually has never seen different centres of power competing in a peaceful way,” Melkert speaks out, in a ‘Reuters’ interview.

Progress does not only exist in curbing the violence in Iraq. The Iraq Ministry of Oil is signing deals pending full force with the new profit sharing Hydrocarbon Law that will put Iraq on top as a world leader in oil production. But, Melkert warns that world expectations are too high for a substantial oil based recovery when in fact the fruits of the labour will take a little longer than some are hoping for.

Delay in the Iraq Parliamentary Elections is a prime example of how a revaluation of the Dinar will take longer than a few weeks or a few months. The elections are now set for March 7 from it’s original end of January date.

“I do not believe a revaluation will be used to harness elections there is simply too much chest beating and slamming doors from Iraq blocs over money as it is. The elections need to be dealt with using massive UN security, not CBI revaluation revenue. It would just add fuel to the fire at this point.” – Darren Chabluk, DrDinar.com

UN will use some 250,000 observers to watch over about 50,000 voting stations in Iraq for the pre-spring elections in 2010. The worst of the insurgency from 2006 to 2007 is over but not yet fully defeated.

Iraq’s Maliki’s shot at the title for a second term as Iraq’s leader is under heavy fire, were talking bombings and such, against his own Government buildings.

US President Obama has been keeping pressure on coalition leaders in Iraq to reduce troops from a current 115,000 to some 50,000 in Iraq by late summer 2010. This movement has prompted Iraqi leadership to come out of the woodwork hell or high water.

Iraq’s new 2010 leadership team will be the Dinar revaluation team leading the country into it’s maximum oil production alongside oil rich Dinar banknotes. As for a definitive time line, one could expect 1 or 2 political terms for next years elected Iraqi Prime Minister which overlaps with a 2009 forecast of 5 years or less prediction for a revaluation.

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This article may be reprinted online or offline as long
As the link remains and is hyperlinked online.
Written by Darren Chabluk for http://DrDinar.com
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This is going to be an informal article today just because I’m working on the launch of the new site. But, the Kurdish President of Iraq has not completed a final acceptable draft for the Hydrocarbon law as of yet.

There are companies from abroad that already have the go ahead to start working in Iraq oil fields but would rather wait until this law passes. This is serious business. This also puts pressure on the Iraqi Government as revenue although shared, is tied to increased production in the fields.

“Oil based recovery…” -Jim Cramer, endorsing the Iraq Banknotes as an ‘ Iraq Play ‘ on CNBC news.

Nevertheless, an oil based recovery in Iraq is evolving by the minute so it seems. Changes seem to happen much more quickly now regarding Government progress. It will be very interesting to see what changes occur with Iraqi elections and all else in 2010.

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This article may be reprinted online or offline as
long as this box remains and hyperlinked online.
Written by Darren Chabluk for http://DrDinar.com/blog
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Kuwait and Iraq are two of the richest countries in the world, each country holding 10% of the worlds oil. Kuwait and Iraq are neighbours also, some people don’t know this fact.

There is one additional distinct similarity between the two counties regarding a revaluation. Both countries have international support to revalue their respective currency. Kuwait experienced its revaluation virtually under the radar after the Gulf war, probably because the Internet as we know it was not around for online trading of restricted (pre-reval) currency.

Violence in Iraq has dropped dramatically over the past 5 years and this violence was one of the largest reasons that the Iraq Dinar as we know it could fail to make it to the world bank. Were over that hurdle now, waiting for sanctions to be lifted along with more progress in the Iraqi Government.

Although very real and realistic risks are involved in the Dinar, there are a couple myths that are just impossible. Having a reliable source of information is important.

If it was a criminal offence to make or believe false accusations about Iraq Dinar currency, I think I could think of a suitable ‘Charge’ such as:

“Gross Negligence In Iraqi Dinar Knowledge Causing Broke Mentality.”

Whenever rumours, even ‘reliable source’ rumours relating the Iraq Dinar to Germany’s currency downfall after World War II, there could very well be charges laid of Gross Negligence In Iraqi Dinar Knowledge Causing Broke Mentality. Assuming such type of mentality were illegal, which it is not.

The world did not support Germany after World War II and Germany does not have 10% of the worlds oil for good measure. Yes, Germany had to devalue their currency after that war. The US Government is fully backing Iraq along with the World Bank and countless other countries with oil deals in the works. Iraq is all about revalue, not devalue.  The enemy wants the devalue, and the broke critics like to place the term ‘devalue’ into false ‘reliable source’ scenarios. 

My question for you now is, if such broke mentality were in fact a criminal offence what would be the sentence?

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This article may be reprinted online and offline as
long as this box remains and is hyperlinked online.
Written by Darren Chabluk for http://DrDinar.com/blog
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25000 dinar note is the highest currency denomination available in Iraq today. Hence, you may be of the opinion that you can buy a lot of stuff when you step out into the market in Baghdad or any other urban or rural market in the country. However, the drastic fall in the prices of crude oil and the ’still improving’ internal security situation has led to inflation and a huge rise in prices of basic goods in Iraq.

While prices of wheat and rice (imported rice) stood at less than 500 Iraqi Dinar per kg in January 2004, the cost of these goods have risen from 2500 Iraqi Dinar to 3300 Iraqi Dinar per kg by January 2009. As far as locally grown rice is concerned, the starting price stood at 700-800 Dinar per kg, which has now risen to more than 4500 Dinar per kg today.

The rise in prices of basic foodstuff is making life miserable for most ordinary men on the street. That is when you realize that the 25000 Iraqi Dinar note in your pocket is not going to fetch you a lot. You would need numerous 25000 Dinar notes for your shopping bag to get filled.

The fluctuations in the prices of beef and vegetable oil have been particularly vicious in Iraq. While prices stood at 1250-1750 Iraqi Dinar in 2004, prices now stand at more than 7500 Iraqi Dinar today. Despite the inflation and high prices, there is no denying that shopping in Iraq has a charm of its own.

Iraq is one of the oldest civilizations and no race can ever survive for such a long time without having healthy trade in and out of the country. The markets are flooded with numerous stalls and shops with each and every shop keeper hawking his or her wares in loud voices.

The smells, sights, colors and shapes is enough to dazzle even the most bored person. The market may not have the glitz and glamour of an American mall. It may also not have the sophistication of a Japanese or French market. Yet, it grows on you and you realize that shopping is a lot more than just a commercial transaction here.

Old shops jostle for space with new shops here with rickety old stalls overloaded with fruits and vegetable stands next to neat shops proudly displaying the latest electronic goods. The markets are crowded and the sheer surge of humanity on the market days is enough to disorient the most experienced shoppers.

Prices of bread, white meat, sugar and beans and lentils too have increased over the years. All this means that 25000 dinar will not help you purchase a lot of foodstuffs in an Iraqi market. As far as personal use items like shoes, garments and other such products are concerned, a 25000 Dinar note will help you buy a few of these products without any difficulty.

As per the current dinar exchange rates, a 25000 Iraqi dinar will fetch around $17. Now, what can one buy with $17 in a shopping mall or store in USA? A trip to Walmart will help you realize the fantastic goodies that $17 or 25000 Iraqi Dinar can buy in America.

You can easily buy a brand new digital camera from Walmart or Walmart.com for $17 amount. If you want something for personal use, then how about a few purses or one or two pairs of jeans? A 25000 Iraqi Dinar can be used to buy enough rations and foodstuffs to provide sufficient nutrients for an individual for 4-5 days. Or you could feed a family of four individuals for a day with $17 shopping in Walmart.

25000 Iraqi Dinar can easily help you buy flash drives, books, Cd’s, DVDs, PC games, video game consoles and other such electronic gadgets at Walmart. Inflation and teething trouble for the government has led to prices rising in Iraq.

The romance and charm of shopping in any market in Iraq has not diminished one bit. The improvement in the global economic condition will, hopefully, cool prices in the markets of Iraq as well. That will soon make the experience of shopping in the markets of Iraq with 25000 Iraqi Dinar notes a lot more enjoyable.

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This article may be reproduced online and offline as long
as this box remains the same and hyperlinked online. 
Written by Darren Chabluk for http://DrDinar.com
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Has this ever happened to you?  You purchased several million Dinar and it was all sold before your initial order even arrived in your own hands?  This was something that kept happening to me when I sold Dinar as one of Canadas largest Iraq Dinar dealers.  It grabs attention and its fun to tell veteran Dinar investors about that experience.  Dinar dealers selling Dinar before a revaluation sell at or near a price called Average Market Value. 

Average Market Value is the average price that consumers are willing to pay for a certain good or service such that the good or services price has not been set and backed by a Government law or in this case, Dinar has not yet been backed by World Bank at a fixed Exchange Rate.

What is the average market value of the Iraq Dinar?

There is an easy way to quickly find out what the average market value of Iraqi Dinar is.   The average price that a consumer is willing to pay for 1 Dinar can be found by executing the following simple steps:

Go to eBay, search for Iraq Dinar, then take the average of the top 10 sellers of Dinar.  Keep in mind you must compare apples to apples.  1 seller might have a million dinar for sale, another seller may have single notes.  You can’t count the same seller twice either.  So find out what each of the top 10 sellers are selling 1 dinar for and take an average. 

Central Bank of Iraq exchange rate is a totally different story.  Because Iraq Dinar is a restricted currency according to banks outside of Iraq we cannot buy Dinars at the current exchange rate unless we open an account at Warka Bank in Iraq, or go to Iraq to buy Dinar!

Anyone wanting to purchase Dinar outside of Iraq must pay a markup.  This markup is the difference between the exchange rate and the average market value that investors are willing to pay.  This margin is what gives dinar dealers incentive to distribute the currency and produce a profit. 

One of the 25,000 Dinar notes in excellent condition can fetch up to $100US or more at a coin shop in America.  Meanwhile, the exchange rate values the note at less than $20 and dealers sell such note for $22 and up. 

Revaluation of the Iraq Dinar currency will see the Dinar put onto the world market and accepted at currency exchange houses around the world.  What does this entail?  Well, Dinar dealers as we know it will have to compete with major banks and much smaller margins for one thing.  This will put most Dinar dealers as we know it out of business.  The great thing about the reval of the Dinar when it occurs is that the Dinar will be accepted around the world for exchange at the same rate as it is in Iraq. 

What some experts are predicting is that the initial revaluation of the Iraq Dinar will create a huge sell off for most people holding the Dinar.  The Central Bank of Iraq will be in a frenzy to buy back as much Dinar as humanly possible.  Then the second cycle of the reval will take place as the exchange rate will increase, allowing Iraq to sell much of the dinar it just bought back at a profit.  This is similar to what happened with the Kuwaiti Dinar reval.  Folks that sold off after the reval, saw a huge jump in the value just after they sold upon the initial reval spiked rate.   How long are You willing to hold on?

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This article may be reproduced online and offline as long as
this box remains and hyperlinked online.  Written by Darren
Chabluk for http://DrDinar.com/blog
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First quarter of 2008 Iraq signed contracts with three small companies from the Czech Republic to help modernize the Basra refinery, an important plant in the South.

Deals range between $50 and $70 million and one of them includes the setting up of a new refinery to help increase production capacity with 70,000 barrels per day.

In June 2008, several major companies were short listed for oil contracts, including BP, Exxon Mobil, Shell, Chevron, Sinopec and Total, but the announcement of the winners has been delayed several times.

The plans were ultimately cancelled in September 2008 because the projects could no longer be completed within the settled timeframe. In January this year 2009, Technip, an Italian-based company, won a contract to build a refinery in Kerbala, and Stone & Webster, part of Shaw Group Inc, won two projects for the redesigning of two plants in Maysan and Kirku.

In May, Foster Wheeler was awarded a $128 million contract for the final design of an oil refinery in the south with a production capacity of 300 thousand barrels per day.

Iraq also signed a controversial deal with South Korea where the former will provide infrastructure such as refineries and generators worth $3.55 billion, gaining some rights to the fields of Basra in exchange. This region concentrates most of Iraq’s crude oil.

The deals signed with major oil companies are service contracts. It is rather unusual for these companies to embark on such projects, which are generally carried out by smaller specialist firms. Large companies generally prefer investments that offer them a stake in the ownership of the oil and thus the possibility for high profits.

According to specialists in oil industry research, the reason behind such actions is that they see these deals as stepping stones towards more profitable projects. All in all, these deals are speeding up the previously sluggish development of Iraq’s oil industry.

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Article may be reprinted online or offline as long
as this box remains and hyperlinked online. Written
by Darren Chabluk for http://DrDinar.com/blog
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