The Future Of Iraq’s Economy

November 28th, 2011
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The Future Of Iraq’s Economy

Politics in Iraq has been frustrating for all parties involved, including Iraqi citizens. The Iraqi people have been annoyed by the lack of leadership by all parties unite to form a unity within the government that works for the benefit of Iraq as a country. The election was held in March 2010 and most Iraqi thought that they will have a good government to lead them but a formal government is still not established.

Iraqi dinar revaluation is a tough challenge to answer especially for business and people who would like to invest in Iraq. While there might be some problems between the Iraq and United States, the problems concerning the Iraq’s economy is still bound to arise.

The revaluation of the Iraqi dinar is expected by many investors and economists because the economy is slowly spreading its arms to new opportunities. One of its promising new opportunities is the country’s oil supply. From the moment when the country discovered its abundant oil reserves, many of the oil companies and nations have signed contracts with the country’s oil reserves.

According to senior Iraqi Central Bank adviser the government has adopted a two-pronged plan to restructure the national currency in order to facilitate large transactions and make government accounts more efficient. Many Iraqis still depend mainly in cash and it was burdensome to carry bags full of money to pay for expensive items. This inconvenience leads people use dollars for any transactions instead of dinars which the Iraq government wants to end.

Many Iraqi dinar investors have invested in the dinar to take advantage of its historically low value. The current trading value of the Iraq currency is nearly 1175 to 1 US dollar. People are anticipating about the revaluation of Iraq’s currency because from the moment that this anticipated revaluation will take its occurrence, a gain is expected. This is good news for investors who have invested in it.Dinar investors are anticipating for Iraq to be stabilized as a country and waiting for the Iraqi dinar to be in the open market.

Today, Iraqi dinar can only be purchased from the private distributors since the commercial banks have stopped taking the dinar expect the banks that choose the develop policies to deal with the restricted dinar. Given that dinar is not listed in a foreign currency, banks do not have a necessity to carry the dinar. Investors are waiting for the dinar to be traded publicly so that market forces will establish the value of the dinar.

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US Troops Move Out

November 25th, 2011
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For most of the last decade, Iraq occupied the Arab world, as it was swiftly invaded by American forces in 2003 before being wracked by the insurgency that sprang up in opposition and then by waves of sectarian killing that grew into a civil war.

Since the bloodshed peaked in 2006, order has gradually been restored, though violence remains high by any but wartime standards. The fairest elections in the country’s history in March 2010 led to the creation of a government of national unity, although after only eight months of political stalemate that played out mostly along sectarian lines.

In 2008, Iraq and the United States signed a status of forces agreement, negotiated in the last days of the Bush administration, which called for the withdrawal of all American troops by the end of 2011. But the agreement was reached with a wink-and-nod understanding that a politically palatable way would be found to keep a substantial American troop presence in the country after that date.

On Oct. 21, President Obama declared that the United States would bring all American troops home by the end of the year, ending a nearly nine-year military engagement that cost the lives of 4,400 troops and more than $1 trillion, divided the American public and came to define America’s role in the world. What could be the effect of this action to Iraq’s government and economy?

The Iraq that U.S. forces will leave behind is far from stable, and the mounting tension between Iran and Saudi Arabia could well see a renewed flare-up of Iraq’s disastrous sectarian civil war. A jihadist Sunni insurgency has reasserted itself in recent months with a steady uptick in terror attacks, and it could become a vehicle for Saudi proxy warfare against Iran, which backs the Maliki government and various Shi’ite political and military formations, including Sadr’s. Kurdish-Arab tensions are growing in the north, where the fate of such contested cities as Kirkuk remains unresolved and a source of mounting security danger.

Iraq’s political future still remains contested, with sectarian and ethnic rivalries reflected in the continued failure to pass a low regulating the sharing of oil revenues, and mounting anxiety over the increasingly authoritarian approach of Prime Minister Maliki. Iraq could yet fail as a state. Those US forces no longer patrol Iraq’s cities, and are mostly involved in mentoring Iraqi units, although they have played a major role in mediating Arab-Kurdish conflicts in the north. But despite these conflicts in the government of Iraq, UN News Centre reported that Iraq’s security situation had improved, but while progress has been made, noted the need for further progress on the humanitarian, human rights, and political fronts.

There are speculations that time will come that Iraqi dinar will be revaluated due to the weak trading of dinar. The best place for investors right now is portfolio positions in physical precious metals, mineral exploration stocks, and quality mining. There is still very limited market for junior mining stocks among huge financial institutions as seasonal traders have left for the summer. CIBC Analyst Barry Cooper recently wrote, “The net result is that gold companies can now be purchased for about their intrinsic value for the spot price of bullion.” This lag in junior gold stocks, as well as in the overall junior mining stock market, will carve out a beautiful buying opportunity for investors to take a position at historically low prices compared to bullion.

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5 Tips To Enjoy Your Iraq Investment Experience 2011

November 18th, 2011
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In no particular order these are the tips I want to suggest to my Dinar holding friends at this stage in the game.

Diversify – This is one of the most important elements to help protect you against the potential of loosing everything in your investment arena. Don’t put all your eggs in one basket. Iraqi Dinar should be the aggressive portion of your investment, 5% or 10%, maybe 20% of your total liquid (easy to sell) assets to be aggressive investments (including dinar)

Bathroom wall of society – Don’t just adopt any old article or belief you see on the internet. If you are a professional or a hard working middle class just remember that some of that brainy advice that looks authentic could be written from some slob sitting in front of a computer in a 400 square foot appartment. The internet is great but much of the internet is used as a writing board as it can be called the bathroom wall of society.

Invest only what you can afford to loose – I’ve been saying this for years also, only invest what you can afford to loose in the Dinar. If you can assume that responsibility you are mature enouph to play the game, I’ve had a very small handful of people over the years that want to point fingers and even sue me if the dinar goes bad. Talk to a certified financial advisor and bring this article before investing in Dinar. If it’s too risky for you, sell your dinar on ebay now.

Associate with others in the same boat – Don’t join just one blog or forum for the Dinar, join several so you can compare and contrast and stay in the loop. I watch many sites and when articles start pouring into my email inbox from many different sources all about the same thing, I know I need to take a closer look. But, I also watch for the little tip bits that can turn the Dinar investment into a whole new direction. The full troop pull out is an example.

Enjoy life and don’t watch results every day – Fluctuations in a currency can be deceiving up close, stand back and see the bigger picture on the charts. A currency can change value going up and down hundreds of times in one day. You can be winning and feel like you are loosing. Let the dinar do its thing and move on, sticking with your core values. Whatever they are.

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CCTV NEWS: IRAQ TO REVALUE DINAR (uploaded September 7)

November 9th, 2011
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Massive Troop Pullout A Hot Topic This Holiday Season

November 4th, 2011
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The hottest topic in the weeks to come will be the troop pullout. Currently, the RV is the top topic but not for long. The news coverage alone will keep everyone glued to the topic of the coalition troops coming home. Coupled with the pullout happening around the Christmas holiday season will give the media the extra incentive to cover endless stories. But what about my dinar? Your dinar?

I do not anticipate a civil war breakout in Iraq due to the pullout, but it is possible. There are so many variables related to the pullout and what effect it can and will have on that I will not even attempt to get into it. Iraqi forces are well enouph to stand on thier own two feet. Politics is another story, what will happen with the Iraq Government, Iran is sure supportive of the pullout…

This is where the leadership will come to fruitation, hell or high water, Iraq’s leadership will be revealed. Raising money will be a priority for the Government but it will be done strategically, rocking the boat is not an option at this stage in the game. Success with all the trimmings is at hand for Central Bank of Iraq, Warka Bank, Government and private, the entire country but timing will be everything.

Pulling the trigger on the RV will not be done in haste, as haste will make waste. I do believe it will be done, and independence harnessed properly will be a good sign. So lets wait and see how Iraq takes on this first ride without the training wheels with a final push from big daddy.

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American Contractor – 24 October 2011

October 27th, 2011
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The Iraqi Minister of Oil recently announced that Iraq had
increased their oil output to 2.9 million barrels a day.

However, that figure is exaggerated. Iraq only exported 2.2 million
barrels a day due to the limitations of the infrastructure. Iraq is hoping
to reach 3 million barrels a day in out put oil production by the
end of the month. This remains to be seen as going from 2.9 to 3
million barrels a day in output capacity with the current
limitations will be difficult. In any case, this is a milestone for
Iraq.

http://www.foxbusiness.com/industries/2011/10/22/iraq-oil-output-capacity-jumps-to-250-million-bd-oil-minister/

The Troops here in Iraq are definitely leaving at the end of the
year and with this goes the hundreds of millions of dollars the
troops or the US government brought to Iraq. This will have a
lasting effect on the Iraqi economy. This scenario could be short
lived if the Iraqi government can acquire foreign investments. The
Iraqi government will now have to find the funds to fill the void.

After numerous meetings and consulting with various entities the
consensus is that there will not be any movement with the Iraqi
Dinar currency. The Iraq currency reform report will not commence
this year as the Iraqi parliament will not schedule this for
discussions. This remains in the hands of the Council of
Ministries who have already reviewed the currency reform report
courtesy of Governor Sinan al-Shabibi. In addition, the Currency
Reform report has also been reviewed by a committee that has been
set up by the Iraqi Parliament. There will be no action taken this
year as more debates and discussions are continuing with the
government and private enterprise. This is the reason for the
continued articles in the media referencing the same facts over and
over. The Central Bank of Iraq (CBI) continues to move at a snails
pace when it comes to removing the 25k notes from circulation and
at such time will be replacing those denominations with another
newer Iraqi currency. There are six new denominations being
considered and when the decision is finalized they will be printed.
Many claim this is premature as the Iraqi Parliament, Council of
Ministries and the legal department are still reviewing and
debating the Central Bank of Iraq Currency Reform report.

The Iraqi Parliament did accomplish one major goal and that is the
appointment of the new Ministry of Electricity, Abd Al-Karim Aftan.
The appointment of this new Minister casts doubt on Iyad Allawi who
is showing to be less relevant in the political process. Al-Karim
Aftan is from the al-Hal Party which is a small faction of the
Iraqi National Movement. The new Electricity Minister also has a
brother who is the Minister of Industry. You can count on both
brothers to be supportive of PM Maliki which will enforce his grip
of power. PM Maliki is also looking forward to completing his
second term and possibly a third.

Prime Minister Maliki does not want the U.S. Troops to remain past
the agreed deadline of 31 Dec. If he didn’t voice this he would
lose all support from the same political groups that are keeping
him in his position as Prime Minister.

http://www.alsumarianews.com/ar/1/29164/news-details-.html

The Kuwaiti government is continuing with the construction of their
new port of Mubarak despite the Iraqi government politicians
opposition. The only Iraqi government officials who currently have
no problems with the new Kuwaiti port is Prime Minister Maliki and
the Ministry of foreign Affairs Zebari. But rumor has it that
Zebari has been accepting gifts from the Kuwaiti government. The
Kuwaiti government gave Zebari the gifts in exchange for his
influence in continuing with the Kuwait Port of Mubarak. This is
not the good economic partnership for both the Iraqi new Port and
the Kuwaiti Port of Mubarak that you’re led to believe. The fact is
that it blocks the shipping lanes and makes navigation to the Iraqi
port very difficult.

A talk show host recently reported that Iran was a third world
country and that they have no money. I was astonished at this claim
because this host is supposedly an expert on Iraq, or so he claims.
In regards to Iran, the GDP of Iran is almost 900 billion dollars.
Now, compare this to Iraq which is barely 110 billion dollars.
Clearly, Iran is far from being broke. When you hear these
different reports from these various hosts on different topics
please fact check or verify them. If this reporter was so educated
on the topic of Iran then he would’ve known that Iran and Turkey
have already traded 15 billion dollars in the first 8 months of
2011.

http://en.wikipedia.org/wiki/Economy_of_Iran

http://tehrantimes.com/index.php/economy-and-business/3835-iran-turkey-trade-to-reach-15-billion-in-2011

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American Contractor

E-Mail: ac@americancontractor.com

Skype: americancontractor

American Contractor

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Iraq to Sell Oil in Dinars Says CBI

October 19th, 2011
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Iraq to Sell Oil in Dinars Says CBI

There have been several events that have recently occurred in Baghdad. On 17 Sept the al-Iraqiyah TV news station hosted an interview with the Central Bank governor Dr. Sinan al-Shabibi, CBI Advisor Mudher Mohammed Saleh and an unidentified Iraq parliament member. The interview was about the Iraqi dinar currency and the deleting of the three zero’s. The interview lasted about 30 minutes however, we were able to record 20 minutes of the interview. After the recording I had the interview translated from Arabic to English. I have included the translation in this post for all my readers.

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. My close contacts in the banking industry have recently informed me that as of yet no decision has been made in regards to the changing of the currency. There has been a lot of resistance from the Iraqi Parliament as some members do not believe it is the right time. They are not alone in this thought process. Economists have said that changing the currency would harm the Iraqi economy. They feel that the economy is just not strong enough at this time to take on a complex endeavor as changing the Iraq currency. The Iraqi Parliament holds in their hands the detailed report from the CBI on the deleting of the zeros. However, they have not placed it in the agenda to be discussed and voted on. There has not yet been a date assigned for this. I will keep an eye out and will inform you when they start talking about this issue. Hopefully, in the near future.

The Iraqi government continues to meet and debate on other matters such as what to do about implementing the Erbil agreement. In local Baghdad it is sometimes referred to as the 19 Terms Paper. A Kurdish delegation will be coming to Baghdad and meeting with the Central Government to talk about the Erbil agreement. The Kurdish group is coming to talk about a mechanism to implement the terms of the Erbil Agreement and not to renegotiate the terms of the 19 Terms Paper. Some of the terms are the Article 140, the Oil and Gas Law, and the Iraq Census that desperately needs to be completed. You must have the census completed before you can complete the Article 140.

As the Kurdish delegation are coming to Baghdad the Iraq Parliament Speaker Usamah al-Nujayfi will be travelling around the major cities in Iraq meeting various political blocs. This has the backing of the Prime Minister Nuri Maliki. All are trying desperately to mend the rift that have occurred in the past with the different political blocs.

Chapter VII
As I’ve said in the past several months, UN Chapter VII continues in Iraq as President Jalal Talabani makes his way to New York to attend meetings and lobby for the removal of Chapter VII. The next major review for the Chapter VII sanctions will be in December 2011. I believe that the sanctions will continue into 2012.

Kuwait Port of Mubarak
The new Kuwait is not a welcomed project for the Iraqi government and it creates nothing but problems for the commerce, shipping, fish hatcheries, iraq oil platforms etc. There is no cooperation between the two countries on this project as Iraq wants to build the Grand Faw Port which was designed a few years ago. Way before Kuwait even thought of their Port of Mubarak. Tensions will flair in the future over these two projects.

For those of you that continue to believe that Chapter VII has been lifted, read the links I provided below.

http://en.aswataliraq.info/Default1.aspx?page=article_page&id=144905&l=1

http://en.aswataliraq.info/Default1.aspx?page=article_page&id=144926&l=1

Let’s talk about the interview on the state run al-Iraqiyah TV with the CBI representatives and the unidentified Iraq Parliament member.

During the interview Dr. Sinan Shabibi sometimes sounded confused, at times incoherent and often repeated himself. He certainly did not prepare himself for the interview on al-Iraqiyah TV. The CBI Advisor Mudher Mohammad Saleh appeared prepared for the interview.

During the interview the TV producer asked about how the CBI was going to make sure that no counterfeit dinars will be involved in the 30 Trillion dinar notes. This part was odd to me because Dr. Shabibi answers the question with an answer that had nothing to do with the question asked.

One thing significant I found in the interview is that the CBI Advisor Saleh mentioned that Iraq would be selling oil and having the oil be paid for in Iraqi dinar. Meaning that Iraq dinar will be a reserve currency for other countries.

This will be all for now as I will be posting more later. As always, thank you for being a loyal reader and joining the American Contractor mailing list.

E-mail: ac@americancontractor.com

www.americancontractor.com

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You can download snap shots of the interview.
PDF File 500kb
CBI Interview

17 Sept 2011 Interview on Iraqiyah TV with CBI Governor Sinan al-Shabibi, A unidentified Parliament Member and CBI Advisor Mudher Mohammed Saleh.

The Parliament Person:
This old currency when it will be destroyed, there must be awareness, because this old currency could go back to the market again and to the recharging process one again.

The producer of the show:
Destroyed by a specialized committee, through them?

The Parliament Person:
Yes, of course, there is nothing ultimate in this world, because even the committee could be infected by the corruption, so there must be a double procedures to prevent the old currency from been leaking out.

The producer of the show:
Did you consider such fears acceptable, as it is come from other people?

The Parliament Person:
Of course its acceptable, but the CBI personnel must make a strategy with one way only so when the currency get through it, there will be no way back, and thatís mean the destruction process must be in it correct way with the supervise of a specialized persons and go a step by step and also with the committee monitoring which is still in the process of develop and grow up.

The producer of the show:
Dr. Sinan Al Shabibi the printed currency right now is 30 Trillion Dinars? Do you have a statistic way to know the stock of this currency? And how you will make sure that no fake dominations will become a part of this 30 Trillion?

Dr. Sinan Al Shebibi:
By God its, I mean this is part of the faking process that possibly become a part of process like Ahhhhhh, trying to Ahhh!!, entering through the Banks and these stuff, and for this truth we watch very good, and we of course have statistics I mean the currency, currency we discover fake, I mean I didn’t come to and in all the dominations I mean let us say 0003 something very little very little a very simple number let us say has an effect but I mean it will be watched in a very good way but this this not it be in truth it is the limitation of the process or the continue like we heard in the conference and such a stuff, because this is very limited, but Mafia and such a stuff is very limited its an open case not open like this but that doesnít mean that they will come carrying a bags of money on their shoulders Ahhhhh Ahhhhh, the subject is crystallized and there is a control above such a thing Ahhh Ahhhh checking and checking the currency and and and and, are they fake or something like this, this is in delivering in main.

The producer of the show:
So can we know the fake currency? Even if it was professionally faked?

Dr. Sinan Al Shebibi:
Yes, Yes, like what we are doing right now, like the truth right now will not be different

The producer of the show:
Thatís mean that you printed the new currency with the value of 30 Trillion after deleting the three zeros? So is there is any increasing in this number according to the government neediness or the needs? Or we reached a final number which is 30 Trillion?

Dr. Sinan Al Shebibi:
30 they are the stock right now, thatís mean that the 30 that exist will be reduced to 30 Trillions to 30??? Ahhhhhh!!!! “Billion”

Mudher Mohammed:
As a number it will be reduced and as an amount it will be reduced also because it a restructuring of the whole currency.

The producer of the show:
So from the economical side it is very useful to strength the Iraqi Dinar? And will the CBI continue selling the U.S. Dollars and working with the new currency as well?

Mudher Mohammed Saleh:
The people will submit to the new currency and they have to have it or they will face punishment like tax, and there will be a big dominations and small dominations which is consisted of the coins, if we made two or three big value domination this will reduce the stock of currency (four Trillions) and it will become 2.9 billion and this will make the system thinner and make it more settle.

The producer of the show:
Dr. Hayder (The parliament person) you are a parliament authority, we find a lot of people rejecting this process because Iraq from the political side is not done yet or not developed yet to get through such a process and these people saying these when Iraq complete some of it more important sides and develop enough and then we will be ready to go through such a step?

The Parliament Person:
I will answer your question but first I will commit on the work evaluating.
Of course the suggestion will consist of a varied dominations but the 25 Dinar and above like 50 or 100 Dinar will be more than 65% or even 75% and the rest dominations will be the 25% so faking process will be a very easy to control because the big value currency will be easy to identify wither it official or fake and faking them almost impossible.

Dr. Sinan Al Shebibi:
And we also in truthÖ. Didnít print the currency, itís a strategic thing.

The Parliament Person:
We all the time start such a process with the stock we have the one used between the banks and this will protected from being faked, but the one that the people exchange will may be fake,

The producer of the show:
Is this thing will be a stuck point within the Parliament?

The Parliament Person:
The CBI provide us with a completed studied documents of the whole project but some parts still in the process of developing and we will have a good time to finish these sides and the project will be established at the 2013 and this will leave a good time period to study every thing once again and fill all the holes in the project to make it perfect, and the parliament will have the time to negotiate about this project in front of every one.

The producer of the show:
Dr. Sinan, one of the major duties for the CBI is to raise the value of the currency and make it a welcomed currency where ever we go with it, and also will the government set a time to sell amount of Iraqi Oil for Iraqi Dinars and remove it all from the outside and make the preparations for the process of changing the currency?

Mudher Mohammed Saleh:
As I think that the Iraqi currency amounts is very little out side and its there only in the neighboring countries like Syria, Iran, Turkey, Saudi.. etc, and it went there for a tourism and small trading process only, your question is that when the Iraqi Dinar will be a reserve currency for other countries, and my answer is that Iraq have a lot of goods and his abilities is very strong and if the steps goes right in the future the Iraqi currency will be a reserve currency for other countries.

The producer of the show:
What is the stock of reserves right now?

Mudher Mohammed Saleh:
It’s about 58 Billion U.S.D and this is the highest number that Iraq reached through it economical history.

The producer of the show:
Ok, Dr. Sinan, a currency with three languages, Arabic, Kurdish, and English, is such a thing possible and is there any country have such a currency or may be with more languages? And dose the Iraqi constitution allow this?

Dr. Sinan Al Shebibi:
(The conclusion of what he said is that it’s possible but with shortened the writings and makes the languages refer to the amount of the domination and not a long sentence)

The producer of the show:
What if you found that the stock is more than 30 Trillion?

Mudher Mohammed Saleh:
Thatís mean there will be a problem in the whole of the study and the whole project, and even though we have a lot of way to prevent such a thing from happening and even if it happen we have ways to correct it

End of Translation

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Iraqi Dinar – History and Signs of Growth

October 14th, 2011
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After the fall of Saddam Hussein’s reign in 2003, numerous changes were undertaken by the Iraqi government regarding political and economic conditions of the nation. The Iraqis confided in the government to rebuild Iraq’s infrastructure and stabilize the nation in all political, economic, and social aspects. The government encouraged foreign investments into their monetary system with the goal of developing Iraq’s economy as a major player in the Middle East.

Iraq showed many other signs of growth as well like the foreign licenses being awarded by the Central Bank of Iraq. This stirred a great spur of growth and many were convinced that the new Iraqi Dinar currency will most likely rise in value after the implementation of different changes planned.

The Presidential Order 13303 facilitated the citizens of United States to invest into the new Iraq economy. According to the order along with the Coalition Provisional Government Order 39, the US citizens get the right to invest similar to an Iraqi citizen. They can invest presently in alternatives such as Stocks, Currency, Bonds, Business and Real Estate in Iraq. Further, these investments are guaranteed under the order, through removal of sanctions on Iraqi investments. The Iraqi banking system was also permitted for restructuring under the new order.

The Iraqi government planned for many more issues of Treasury bills into secondary market. The central bank of Iraq auctioned the Treasury bills in July after a long time. Currently, the local banks have purchased 3-month bills worth 900 billion Iraqi Dinars (approximately USD 628 million) with coupons varying between 2.5%-6.8%. In order to enhance the value of Iraqi exchange rate, the Central bank is planning to increase their reserves of foreign currency as well. Likewise, the government measures successfully led to the current position of Iraq in the world.

For more information on the Iraqi Dinar, including the latest revaluation, exchange rate, economic, and political news, please visit DinarBanker.com.

If you would like to buy Iraqi Dinar [http://www.dinarbanker.com/buy-iraqi-dinar.html], Dinar Banker is an established dealer with a reputation for fast, secure delivery with a reputation for excellent customer service.

Stefano Grossi

DinarBanker.com 1-888-346-2771

Article Source: http://EzineArticles.com/?expert=Stefano_Grossi

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Perils Of The Zeros Explained, Finally

October 3rd, 2011
2

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
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Quietly Rebuilding Towards An RV

September 28th, 2011
9

Quietly Rebuilding Towards An RV

Iraq’s currency is becoming one of the most talked-about topics among foreign investors and entrepreneurs even though most people ‘in the know’ will never take action to purchase the dinar. And to this day, the country has taken another step in rebuilding its great empire. The country has discovered its billion worth of oil reserves and decided to reconstruct its oil facilities for another era of oil exploration activities.

The reconstruction works are believed to be first initiated by the United States Army Cop. Right now, people believe that lots of oil infrastructures in various localities of the country are about to be finished. Iraq aims to reconstruct its oil facilities accompanied with oil licenses so that by the year 2017, it will become one of the top oil sources talked about on International news.

To make the goal a reality, the country needs help from countries like the US. Fortunately,the USACE or the United State Cop Engineers responded to the needs of Iraq. It is believed that the USACE made an appointment with media personnel discussing things and ways on how to level up the success of the reconstructions.

USACE has committed to help and to serve the citizens. The team of US engineers has been implementing effective ways to enhance and rebuild the damaged oil facilities of the country.

These engineers are determined to increase the oil production of the country. Normally, the country can produce 2 million barrels for a single day but the engineers want to increase the oil production to three million barrels. That can only be possible when there will be stable and strong oil facilities.

It is greatly expected that the 200 cubic feet of natural gas will go higher up to 800 cubic feet per day. And if these goals and expectations are successfully met, other infrastructures will spring forth. One of the most expected infrastructures right after meeting the goal of increasing the oil production of the country is the power supply. This means that there will be more generated electricity applicable for industrial and domestic purposes.

Iraq will have abundant cooking gas supply in the next years to come. And it is believed that the country needs to produce over $100 million for the cooking oil production project. This could mean that Iraq will set the pace for world leaders to follow with natural gas consumption as cheap natural gas starts showing up all over Iraq from vehicles to cooking on the streets. Don’t be surprised if Iraq takes charge in producing its own natural gas car to boost the natural gas car industry.

With the reconstruction of oil facilities in the country, more national refineries will emerge and abundant oil production will come forth. And if there will be an increase of oil production, there will also be improvement in the economic status of the country. When the country will gain economic stability, Iraqi Dinar revaluation is never hard to expect. Iraq Dinar RV will definitely follow right after the reconstruction works of the country’s oil facilities.

And, as we all know, there is nothing that foreign investors are waiting but the revaluation of the currency. And revaluation is not hard to expect because as we can observe, the country is constantly rising and developing. It has taken hard steps to meet the needs of its people and even to meet the needs of the whole world. Facts tell that the country got billions of oil reserves which can supply the world demand. So, in simple terms, the reconstruction of oil facilities in Iraq is a promising step for Iraqi Dinar revaluation.

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Written by Darren Chabluk for http://www.DrDinar.com/blog
This article may be reprinted online or offline as long as the
link in this box remains and is hyperlinked online.
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