DrDinar Blog

Did you know that facebook allows the creation of ’secret’ groups? I created the DrDinar group on facebook several years ago but it wasn’t until around last summer that I changed the settings of the group into a secret group. And that is exactly what it is called ’secret group’. You can’t find it if you search for it on facebook, you can only be invited by one of your facebook friends who are in the group.

Why did we myself and the members decide to make it a secret group? Well I polled the other members last year and everyone wanted the group to be of the secret status. The main reason was, there are so many public groups on the internet, and with Dinar it was desired by all the members to have an undercover place to talk and share information about the dinar.

DrDinar secret group on facebook is moderated by myself and one of my full time admin girls so we keep a close eye on spam or any funny business. There are only just over a couple hundred members so far yet the group is quite active. If you are looking for a place to remain low profile while sharing your thoughts and questions about the dinar then you may make a great new member of the group.

How to join?

You can’t find the group on facebook, it is unlisted. If you are my facebook friend, send me a private message asking about the ‘Dinar group’, or ‘Dinar page’, or ’secret Dinar group’ and I will invite you into the group. You must be my friend on facebook first to send a private message to enter this group. If you are not sure just go to my friends page on facebook www.facebook.com/chabluk and send me a private message now!

Regards,
Darren Chabluk
DrDinar.com

2011 has been a year of slow and steady progress, the biggest change was coalition troops coming home for Christmas. I always believed that pulling out the troops would eventually be required to give Iraq full independence with the currency, I just didn’t it would happen so fast.

2012 will be a year of locking in stability for Iraq, and after that I predict the growth stage. Please invest only what you can afford to loose, enjoy the investment experience, and drive safe this holiday season. I’ve been busy this year building my marketing team and working with other online projects but DrDinar is going to get a shot in the arm in 2012 with more activity. We have not had a live call for over a year and we will be bringing our forum back to life too….

Merry Christmas,
Darren Chabluk

Appreciate The Risk Or Get Out Of The Oven

Abunch of inquiries about Iraq’s increasing in value of their currency and dropping off the zeros in their Dinar has been haunting several dinar investors for over 7 years. More curious about the newly introduced redenomination and its effect to the value of Dinar and the country’s economy.

As what AmericanContractor stated,

“There has been a lot of discussion in regards to the deleting of the zero’s or what most people in Baghdad consider as changing the Iraqi dinar currency.” What will be the outcome with this peril of the zeros?

A rumor even broke out that the Iraq Finance Minister himself has released a statement asserting that the government has prepared a plan to increase the value of the country’s currency against the current value of the USD. It is believed that fiscal policies imposed in the country have significantly contributed to the increase of Iraqi Dinar’s value against the USD.

Some individuals are not totally convinced on the issue springing forth that there will be re-denomination in the country’s currency because of the existing debate on the planned implementation of the Erbil agreement but the low demand for the US dollar in the local Iraqi currency exchange markets has caught the majority’s attention more than the concern of the 19 Terms Paper.

Mudhhir Muhammad Salih, the Central Bank advisory panel, released a statement telling that new banknotes will be introduced while the current banknotes will be removed from the circulation of Iraq’s economy. The denomination would be tender in Iraq until the current banknotes will be completely replaced by the new ones although the date as to when the new banknotes be released is not yet specified.

With all the breaking rumors and news, what do they imply? As a whole, news points to significant alterations in the country’s currency value. Lots of Dinar vets are hoping that the Iraqi government will introduce new lower denominations into the economy of Iraq.

It is already expected that when the purchasing power of the dinar increases rapidly, the larger denominations would become impractical for use during the daily transactions in the country.

So, if there would be an increase of value to ten cents (which would make 0.1 US dollar), the smallest banknote of the country would make up for 5 USD. It would then be impractical to buy daily necessary items in the market and there would be no way to make for change – this would make the country’s currency impractical and unusable. There has to be a denomination in the country’s economy to address the need. Not a devaluation which is a totally different reason for a re-denomination.

Also from the recent released news, it appears that all denominations will be in circulation right at the same time without immediate exchange. It is believed (hopefully) that Iraqi Dinar will be among the currencies engaging on the world exchange market. This will definitely open a door to an easier exchange in the future. There are high expectations on Iraq becoming fast as the country continually rebuilds their wealth, economy and promoting international relations.

Some of the rumors spread are the issue about the future exchangeable value of few of the present Iraqi bank note denominations and the rumor about the time-bounded periods for exchange of current Iraqi banknotes. And to the numerous rumors being spread, it won’t be impossible to get false rumors.

One of the false rumors getting into the ear of the people concern is the issue about the 25,000 dinar banknote to be exchanged at a different exchange rate than the present smaller banknotes. Another false rumor suggests that there will be an expected short period of exchange for the present banknotes after a significant alteration of value and the release of lower denominations.

Well, to clarify all these rumors, we may try to look at currency from a basic perspective. Countries issue their own chosen currency. They issue their currency with an obligation to honor and redeem it. When a certain country issues currency (we’ll make use of US as anexample), they borrow against that currency and issue debt to support it. The US just printed a huge amount of currency for stimulus funding. And order to implement this, the government of US had to borrow the money bearing the responsibility to pay it back.

US Treasury Department, the function of this department is to manage effectively the national debt of the country– the huge amount of money which the federal government owes to its investors and creditors. As believed, China owns much of our debt as do US people living within the premises of the country and othercountries. And as concerned citizens, we should honor our issued currency and our debt because a country that refuses to honor its debt will lose creditors and investors.

When creditors lose their faith in the defaulting country, the country will expectedly experience financial ruins. And Iraq as part of the world economic community carrying a goal of getting their currency online with the rest of the known world currencies, has successfully issued currency with an obligation to honor it all and not just on certain denominations.

All countries have to take full responsibility (and that certainly includes Iraq) for all of their currency issued and they are not allowed to exchange time lines to try and even eradicate people for exchanging. And money from all over the corners of the globe has already flowed into Iraq through the purchase of its famous Dinar.

Government of Iraq will honor that opportunity in their present economy otherwise; They will never be accepted by the world financial community. Besides, there has never been a country among the world economic community that refused to honor its debt -the world financial community would never accept such.

So, what will be the outcome? Will ‘knocking off the zeros’ contribute for a greater change? Well, we may think of the positive possibilities and positive results. This can mean, not having to carry a heavy bunch of papers while doing transactions or purchasing daily needs for the Iraq citizens. Give the Iraqi’s what they want, and we may possibly get what we want. Iraqis want a currency they can carry that doesn’t have all the zeros that a ‘devalued’ China currency has. Where 1 dinar means something, now, before a revaluation. A dinar actually has some skin in the game.

Besides, if they are not going to make a move to re-denominate the Dinar, how would they increase the value without reducing the number of Iraqi Dinar in circulation first? Although there is no certainty that re-denomination would make the value of Iraqi Dinar closer tothe current value of the US dollar still, such a re-denomination would certainly help simplify Iraqi transactions and the record keeping.

A new look and feel for the physical banknotes of Iraq may open new doors for the development of the growing country; While keeping the old banknotes proportional in value to the new. Kind of like what a US $10,000 banknote is worth. A US $10K banknote has not been in print since some time in the 60’s but such note is still worth $10,000 today legal tender value.

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Written by Darren Chabluk for http://DrDinar.com/blog
This article may be reprinted online or offline as long as
this box remains and the link is hyperlinked online.
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American Contractor Clearing things up!!

It appears that my last post may have caused some confusion amongst a few readers and I would just like to begin by clarifying something. Dr. Sinan Shabibi is NOT under house arrest. That is not the case and it appears that I was once again, misquoted. Dr. Shabibi can not leave the country for the time being. That is all. This is not the same as house arrest. How long this order will be kept active is anyone’s guess. I have no other information on this only that I have witnessed him being served with the order. The Arabic Translation from the written order in English stated “Forced Residency”. This order was given after the meeting with the Council of Minster on June 19th. This was when Dr. Shabibi was advised not to leave the country. It is important to note that Dr. Shabibi is one of two people in the CBI that will be asked to present the Re-Denomination report to the Council of Ministries when asked in the future.

When I recently wrote that Dr. Shabibi did not attend the 2011 International Arab Banking conference in Rome, Italy I stated that because it is FACT. He was NOT there. The only thing I can tell you is to look at and review all the news articles that came out in regards to that meeting and I challenge anyone of you to find even one article quoting Dr. Shabibi from the Arab Banking Summit. Anyone saying he was there is mistaken. The confusion might stem from all the news articles prior to the Arab Banking Summit listing him as a guest speaker. However, you will discover that there is not one article quoting him at the Summit event. It is customary for him to speak at these meetings when he is an attendee. Dr. Shabibi was quoted in prior Summit meetings in 2008 and 2009.

Chapter Seven

Contrary to what a few keep saying, Iraq and Chapter Seven will most likely continue till the next review by the United Nations, in December 2011. In another twist, Kuwait’s newly planned port, will more than likely obstruct the commerce of Iraq’s only main deep water port. The Kuwait government has assured the United Nations that the new port would not violate the sovereignty of Iraq. This will continue to be an issue in the months to come as Iraq is challenged again to be released from Chapter Seven. The Iraqi port has yet to be expanded and rebuilt due to lack of funding.

There is a lot of disinformation in regards to the Erbil agreement. The word out there is that PM Maliki has to give up power and this is just not true. PM Maliki does not have to give up his power he just has to conduct Power Sharing with the al-Iraqiyah list leader Iyad Allawi. PM Maliki is against the sharing of power at this present time.

The Development Fund for Iraq
Some people appear to be confused in regards to what is happening with the DFI fund. The account which the funds are located are in the Federal Reserve Bank of New York and will remain for years to come. The fund will most likely have a name change although the name has not been revealed as of yet. 5% of the proceeds coming from the oil sales each month goes to a special account the United Nations has set up to pay for the reparations for Kuwait. Iraq still owes 25 billion dollars to Kuwait.

Contrary to what some are claiming, Dr. Sinan Shabibi has never said that he will RV the currency to meet the Iraq budget.

Another false statement made, the Iraq inflation rate is currently 7% and is rising due to increase in import prices not because they don’t have a tradable currency.

Regardless of all the disorganization and pace of a snail, Iraq continues to make progress and strides in the banking sector as well as the overall economy. I am hopeful that we will be able to speak more positively in the coming months about all the advancements and progress being made.

Thanks for reading.

E-mail: ac@americancontractor.com

Skype: americancontractor

Posted by American Contractor on June 30, 2011 9:20 PM |
http://www.americancontractor.com/2011/06/american_contractor_clearing_t.html

Has anyone heard anything about what Ali is up to?

Please leave your comments if you have something beneficial to say!!

Spring Survey DrDinar 2011

It doesn’t get any more original than this, a little home grown dinar community social proof. 100 survey participants.

Thank you for sharing and contributing to this data. Your comments on the yellow link are appreciated.

Please answer our 2 question Spring 2011 Dinar survey, it’s important!

***Survey is closed***
Thank you for your participation to all survey participants. Results will be posted in the weeks to come.
-Darren Chabluk June 4 2011.

This is your chance to get the information you are looking for, well, unless it involves the crystal ball but I’ll see what I can do…

Iraq Banking System Moving to 21st Century in 2014

Recently, there was a Reuters news article with a headline titled, ‘Iraq to boost retail banking via mobiles, Internet.’ Upon reading that most people would naturally assume that this is good news for the Iraq banking sector. Many people perceived this as ‘huge’ news and have even tried to convince others of the same. What some need to understand is that, the people with this thought process just do not fully understand the banking system as it is here in Iraq. If they did, they would not had perceived this news as ‘huge’.

These individuals are the same people that also claim that Iraq does not have a tradable international currency (which Iraq does). At some point in time, hopefully in the near future, it will be good for the banking system, but that’s only when they they get the single payer system in place. It’s one thing to have it constructed and installed, training is another. If they are lucky, they will have it completed in the banking system by the end of the year. It will take them an additional 18 months to complete the training and get acclimated to it.

In case some of you are wondering how the banks in Iraq will transfer funds outside of Iraq, It will be by correspondent banking agreements. There are several banks that have correspondent banking agreements with foreign banks outside of Iraq. These Iraqi banks use the foreign banking system (SWIFT) to facilitate transactions abroad. The Iraqi bank has no single payer system that conducts the due diligence to investigate where the funds are exactly coming from. Keep in mind that there are Anti-Money Laundering Laws (AML). In Iraq the AML penalties are very harsh on the banks and on any individuals. The Iraqi banking sector is seeking ways to get away from the correspondent agreements. They want to stop criminals from funneling money, independently investigate exactly where the funds being sent or received are coming from, as well as who actually owns the money.

There is a caveat in that the Iraqi Parliament must pass legislation to even use this particular payment system. The CBI is not as independent as people think, they have to get the permission of the Iraqi government on nearly every move they make. Such as, 1.) Parliaments vote on the new Iraqi dinar currency, 2.) reviewing of the CBI Report on Re-Denomination Revaluation reports, and lastly, Ministry of Finance giving the approval of banking licenses.

http://www.americancontractor.com

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American Contractor
skype: americancontractor
e-mail: ac@americancontractor.com
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Managing a large list in the Dinar network has one distinct advantage. I can see trends in the dinar industry from dealers and bloggers around the world. Investor behavior for the dinar has always been very interesting to watch.

How is Bin Laden’s death related to stability in the dinar? I suppose it is one less major potential enemy for the dinar, an enemy as perceived by many involved in the spike in Dinar sales in May 2011. How else can we explain the little frenzy that is going on here with our dinar?

Central Bank of Iraq in May of 2011 is imposing a hefty transaction fee inside Iraq when US dollars are used. The CBI is enforcing these rates on foreign currency transactions inside Iraq to force everyone inside of Iraq to use Iraq Dinar instead of US dollar or Euro or other popular middle eastern currency’s in the region. This is good news for the Iraq dinar, every little bit helps.

There is also a tax in Iraq which is related to foreign currency transactions in the CBI’s effort to get everyone in Iraq to use the Dinar. Common sense tells me that the Iraq Dinar must be the most popular currency in Iraq, it’s motherland, in order to have a revaluation. Maximize the value of the dinar with all possibly methods beforehand, then, we will see.

As always, invest only what you can afford to loose. If you feel like you’ve put too much into your dinar investment you need to sell off dinar till you feel you can afford the loss. Ali from DinarTrade will buy your dinar. And if you bought back in around 2006 or earlier you should get back everything you paid. The dinar has gone up since then.

On the contrary, if you are comfortable with your dinar investment then hold on and enjoy the ride. Buy more if you can handle the risk. In my opinion the opportunity is not as risky as it once was. There are other risks that are all tied into the realm of the ‘risky investment’ we are dealing with here. We are dealing with Governments here, and corruption, massive corruption. That being said, prepare for the worst and hope for the best and you are in good hands. If you are mad about this, you need to sell now. Period.

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Written for http://www.DrDinar.com
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