Iraqi Dinar vs USD for US military in Iraq



Tallil” is the US Airforce base just south of Baghdad, FYI.

The Future of U.S. Dollars in Iraq

As U.S. Forces conduct stability operations in support of Operation Iraqi Freedom, the removal of US currency and increased use of Electronic Funds Transfers (EFT) and Iraqi Dinar are top priorities. Therefore, US currency will be reduced to an operational minimum at all finance offices in theater.

The U.S. Dollar is being phased out of the Iraqi theater. The increased use of Iraqi Dinar will facilitate a decrease in the dependency of the local economy on the U.S. Dollar, and to encourage Iraqi Financial Institutions to expand and mature into reliable resources for the Iraqi people.

What this means to you:

Effective 1 June 2009 the Finance office on Tallil will no longer disburse U.S. Dollars.

All checks cashed will be loaded on to an EagleCash Card (ECC).

You WILL NOT be able to withdraw US Dollars from your ECC.

You WILL be able to withdraw Iraqi Dinar from your ECC at the daily exchange rate (rate changes daily).

You must ensure that you maintain and secure your ECC. Protect it at all times as you would actual currency. Ensure that you have money in your account before you press load on the Kiosk. Change your PIN to something other than your default PIN.

What does this mean for us? Oh, it could mean a LOT! With the USD being pushed out further and further, Iraq has more control over the currency being used. This also gives Iraq a better handle on how much currency is in circulation, since it will begin forcing paper money out from under mattresses everywhere.

Stay tuned!

23 Responses to “Iraqi Dinar vs USD for US military in Iraq”

  1. nancy ray says:

    great info

  2. jose says:

    I enjoyed this post ……..

  3. jose says:

    ME ENCANTO ESTA NOTICIA SOBRE LA ELIMINICION DEL DOLAR EN IRAQ.

  4. admin says:

    Thanks Jose. i translated your comment to:
    “I love this ELIMINICION NEWS ON THE DOLLAR IN IRAQ.”

    Pretty close?

  5. BFT says:

    Wahooooooooooooooooo

  6. Buck Robinson says:

    Thanks for the info. I am a Contractor working in Kuwait. From what I hear from the people here the Iraqi Dinar will be used in Afghanistan, Iraq, Kuwait and Qatar. The average rate per million is around $860.00 for this month. Any word on when the currency will be going up? Will it do like the Kuwaiti Dinar did after the war? The Kuwaiti Dinar had gone down to .10 per dollar; unfortunately I didn’t have a chance to purchase any or I wouldn’t writing this e-mail now….. LoL

  7. admin says:

    Isn’t that the truth!

  8. Barry Slaton says:

    I hear that the RV of the Iraqi Dinar is any day. Is that true? Anybody know?

  9. a says:

    The Iraqi dinar slightly going up month ago ,nobody know the reason ,the government seeks to fix the price of the Dinar that it could to do that duringb the last years and if it abandoned it ,the Dinar will jump soon .i hope that our currency will restore its price as it was in the 70s so that the people could enjoy their life again .

  10. a says:

    The Iraqi dinar is slightly going up month ago .Nobody knows the reason ,the government seeks to fix the price of the Dinar that it could do that during the last years and if it abandoned it ,the Dinar will jump soon .I hope that our currency will restore its price as it was in the 70s so that the people could enjoy their life again .

  11. Dianne says:

    When do you think the Iraqi Dinar will RV? Also what or who is the holdup?

  12. James from Singapore says:

    Next polling day of Iraq could be around year 2010. Revaluation of Iraqi Dinars @USD2.50 is highly possible in the near future as rumoured by market intelligence. Let’s hope for more once in our lifetime.

  13. James from Singapore says:

    Just fancy buying 1,000,000 Iraqi dinars and we time it by 2.5 = USD2,500,000 before we may convert them all into our better currency exchange rate in our own nation.

  14. James from Singapore says:

    Tell the sceptics what if we win soon?

  15. James from Singapore says:

    Next polling day of Iraq could be around year 2010 and please rethink why we should hold Iraqi Dinars for fun? Prime Minister of Iraq Maliki must decide soon to revalue Iraqi Dinars or else, he mightn’t be re-elected as a Prime Minister at all. Please step into his shoes to understand that he must not procrastinate further in such a computer age.

  16. John From Kuwait says:

    Would Be nice to get some hard info what this Rv ganna do

  17. Muhammad says:

    I couldn’t do alone, we all must quickly convey the message to the opposition parties of Iraq that if they want to win more votes from the people of Iraq somewhere in early 2010 to increase their seats in the parliament, they must promise them (by God’s Permission) about the speedier revaluation of Iraqi Dinars at an excellent rate first to enable the poor and the needy Muslims inside Iraq to improve their living standards, better their buying power and assure them of more employment. Iraq government must do it this way without further procrastination against the revaluation of Iraqi Dinars like what PM Maliki like to procrastinate for already some years where many investors of Iraqi Dinars still keep speculating about it till today. Why keep withdrawing money to help their Iraqis without any financial gain in return at all and her debts had kept and will keep piling up without a full stop right there? There must be a way to teach them how to catch fish for their own meal everyday, not just by giving them free fish everyday.

    Numerous future negative repercussions like the emergence of civil wars, corruption, criminal activities of pirates and bandits, drug syndicates, prostitution and all that you can name them may happen without any control if procrastination keeps on till next generations of Iraqis emerge. Even greater pressures on natural resources will increase as Iraq may face a population explosion in the near future. Because most Muslim families in Iraq would love to have more children suggested by the rule of Sunnah. Is Iraq government prepared for such a contingency? Only revaluation of Iraqi Dinars would enrich all Iraqis asap. By this, the pain of poverty decreases in order to welcome the joy of more future progeny next. If such procrastination continues due to corruption caused by unscrupulous governors, ombudsmen and bureaucrats, Iraq’ll suffer!

    Does PM Maliki of Iraq himself involve in corruption so much so that the revaluation of Iraqi Dinars has been delayed for some years by now? I personally feel his procrastination is fishy to me. The saying Don’t judge the book by its cover is an absolute truth. I don’t trust him at all!

    My mentor once told me this: Rather than competition bringing down corruption, corruption is often allowed to prevent competition. Apart from the general moral and ethical arguments about bribery and dishonesty and the effect they can have in undermining general respect for the rule of law, corruption is generally bad for efficiency. It leads to decisions made by bureaucrats on the basis of what is good for them, not good for the economy. Let us hope PM Maliki of Iraq is not a corrupted person as labelled by the Qu’ran as well. The future leader of the whole world Imam Mahdi is an honest person who will not, I believe, hold up revaluation of Iraqi Dinars like him for whatever reasons to prolong the sufferings of the poorer Iraqis around Iraq.

    Continuous corruption in the government can prevent the speed of revaluation plan because some big guys inside might be pocketing more US Dollars for their own benefits, not for their economy. Qu’ran keeps warning us about the many hidden corruption occurring in the departments of governments everywhere in our space age and I am one of the persons who can see the invisible colours of their true faces. It’s okay to tell you because it’s a blog site here you won’t know who am I. I am gifted by God. Insha-Allah! and Alhamdulillah! You shall see the truth very soon about the hypocrisy of them.

    We all, not I alone in this blog site, must convey such message and suggestion asap to the government of Iraq and her opposition parties before the next polling day may occur in early 2010. Iraq is a more civilised country right now after the fall of Saddam Hussein and she deserves to get her Iraqi Dinars revalued at an excellent rate to rebuild her economy asap in a fair way like what Kuwait has received.

    Singapore is such a small dot in the world map and if she could be so financially successful in businesses with stabilized economy without any mineral resources at all, could Iraq’s future economy be better off in an even shorter period of time if she has so many mineral resources given by God under the ground ready to be shared with the whole world? If Singapore can do it, Iraq can do it as well!

    China has just opened her gateway to business opportunities worldwide not long ago, perhaps somewhere around 1997. If China can do it, Iraq can do it as well! Why must the naysayers still live in the past and imagine the shadow of Saddam Hussein, even after his demise, is lingering on in Iraq. It is unfair to always keep imagining Iraq is a villain while Kuwait is a hero. Let us not only pray, just do it altogether to speed up the revaluation of Iraqi Dinars by letting Iraq governors know about our urgent message.

    Please contact minister@industry.gov.iq and minister.office@industry.gov.iq to contribute our suggestions.

  18. Muhammad says:

    Iraq is no more Saddam Hussein’s precious house because he is in the grave. In actual fact, it belongs to the whole world at large. Allah is the Lord of the Worlds but He entrusts certain people to be in certain lands to rule for Him. As in Qu’ranic Chapter 30 Verse 22, He has excellent reasons to create languages and colours… (of His intelligent creatures, regardless of race, language, status and religion to live and die in any land as He wishes, neither overly fat wishes of “Jihadists” nor “Slovenians”). In Qu’ranic Chapter 31 Verse 34, we all won’t know we may migrate to a foreign land in future to live and die right overthere as He wishes.

    The word “Insha-Allah!” means “By Permission of God” is already written in the Bible under The New Testament of James Chapter 4 Verses 13 to 17 to warn all Believers and Christians alike not to promise what we couldn’t deliver because we’d never know we might die before the sun rises tomorrow.

    Qu’ranic Chapter 4 Verse 29 clearly state that Believers mustn’t commit suicide and Chapter 4 Verse 92 killing innocent people in the streets or elsewhere is simply reckless murder in the first degree.

    Every year since 9/11, Allah(swt) has converted numerous thousands of non-Muslim people in the United States, Germany and United Kingdom alone despite 9/11. The terrorism of “Jihadists” is likened to a small drop of plain water in the vast ocean. If the suicide bombers are replaceable, so do anti-terrorists like us who believe in peaceful living. If America is marked as Satan, it is wrong to curse the land Allah(swt) has created. We can curse the injustice of a corrupted person but definitely, not his soul. But we can curse Satan and his soul for sure! How do we know all past, present and future American presidents are Satans? We don’t see any horns like cows growing on their heads. As Sunnis, we believe in The Second Coming of Jesus Christ together with Imam Mahdi (the future ruler of the whole world to welcome Jesus or Isa personally).
    As Chris Angel and David Copperfield can do magical wonders, our Muslim saints can do much better than them. We are not told by these Muslim saints that such “Jihadists” are right in murdering innocent people anywhere. The blind leading the blind is a true saying targetted at the “Jihadists”. It is a great insult to Islam! Please do understand the meaning of Islam is Peace. Islam is not Terrorism at all. Do not possess the tunnel vision of a frog in a well and misunderstand Islam for whole life. We do not support terrorism.

    Here, let us talk about why revaluation of Iraqi Dinars is highly possible. Please take note:

    Latest news on: The Unique Situation of the Iraqi Dinar

    A backgrounder on the Iraqi dinar, including details on why the Iraqi dinar is positioned for a huge rise in value.
    The Iraq Dinar is set up in a very simple, almost crude fashion. The set up was a quick fix after the invasion, seeing that the banking sector in Iraq was about as developed as a model T. Without a modern bank system in place, the “crude and simple” was chosen as a workable interim model.
    A Brief History of the Dinar
    With Saddam’s face plastered all over it, the old dinar had to go. The Saddam dinar also was of very low quality, and could be easily forged on a simple copy machine.
    After the invasion, new bills were immediately ordered, but due to the enormous amount needed, some of the old Saddam dinars continued to be printed and circulated until the new ones arrived.
    The new dinar bills started to arrive, and they brought with them all the modern safety features one would expect. A wide spread of denominations was chosen, both to make the daily handling easier, and to cover for value variations in it’s exchange. Finally, a reasonable time period was granted in order to allow the citizens of Iraq to swap the old Saddam, and “Swiss” dinar in.
    The Central Bank of Iraq (CBI)
    The Central Bank of Iraq (CBI) was set up as an auction system, with the CBI sitting on the newly printed currency, auctioning older outdated dinars and other foreign currencies with Iraqi banks for new dinars. Now that the currency exchange has been completed, the CBI also sends nearly half of it’s daily auction of dinars to foreign banks in Kuwait, Jordan and beyond.
    If you go to the CBI official website you will see the daily auction, the currency is now primarily sold in exchange for US dollars. The CBI is slowly but surely acquiring US dollars to help back the worth of the dinar. Everyday the amount of dollars in it’s vaults increases.
    The exact number of dinars in print, in circulation or on hold at the CBI is exactly known. By doing some very simple steps, full control is achieved through:
    1. Limit the amount a person can bring with him if he is leaving Iraq, to a very small amount (in this case, 100,000 dinar);
    2. Knowing the exact amount sold to banks outside of Iraq.
    Once you know the amount of dinars out there, viola, you have complete control over it’s fate. The CBI simply sells more or less to hold the dinar in a position exactly where they want it to be.
    Given this situation, the dinar will not strictly be pegged. It has been called ‘pegged’ by some, but in reality you will have some small fluctuations on the dinar value, which you have likely noticed if you have followed it over time. These fluctuations are a balancing act by the CBI.
    Simply put, truly pegged currencies don’t move from the currency it is pegged to.
    This is the basic Iraqi dinar system. Now some may already be asking, that if the Dinar is endlessly sold, wouldn’t it flood the market, making them worthless? No, because you have exchanged your US dollars for your dinar, which helps to back the dinar through the above explained CBI mechanism.
    Now, this is a very temporary system. Interested readers will of course note that any currency that is not free flowing is a hindrance to full economic development. This fall, new Iraq investment laws are suppose to be passed by the elected Iraqi parliament, allowing international investment companies (read: Big Oil) to invest.
    At this very moment, oil company survey and geological teams are crisscrossing the desert, testing grounds, staking claims and hopefully not giving each other a black eye. Again, this is not Iraq government, US government, US Government contractors, US armed forces, etc. running around, this is oil companies. The future mega investment in Iraq which will help drive the economy forward.
    A Question of Priorities
    Some may ask if we shouldn’t take care of the violence first. If Joe Everyman is building a house, is it relevant that his young children are fighting? The short answer is that ‘Big Oil’ is operating in many areas of the world where violence is the norm, not the exception.
    By last June it was announced that no more printing of the dinar is necessary, meaning that we are most probably in the end part of the ‘first stage’, and are ready for the dinar revaluation. It would be an suicidal economically to leave the dinar in it’s current low range, and let the oil companies come in ‘on the cheap’. The dinar MUST have a much higher value at that time, otherwise Iraqi will be sold off for literally pennies, or dinars, on the dollar.
    While the exact arrangement of the investment law is not yet settled, deals have already been made in how the oil revenue will be shared amongst the different regions and groups in Iraq. So things are moving forward.
    It is not yet known if the revaluing of the dinar will be an overnight thing, with no previous announcements, or if it will be a gradual increase as necessary. It should be pointed out that the value of many oilfields in Iraq is also not fully known, because actual modern geological surveys have not been done for decades, if at all, but even with this lack of recent study, the known reserve in the ground rivals that of Saudi Arabia. It is hoped that in the next decade, Iraq will achieve the same oil output as its southern neighbor. Nobody can deny that the potential is there.
    From the time the pumps start working, Iraqi society will start getting more and more benefits from the oil revenue. The finances will be available for roads, schools, the electric grid, social programs, new equipment, better computers, etc. These oil-funded infrastructure improvements will help drive manufacturing, and in turn, generate more jobs. Social unrest is handled with police and justice, but it must also be handled with economics. A prosperous nation is a happy nation.
    Finally, Iraq has been blessed with something very few Arab countries have. Water. The agricultural heartland of Iraq have one of the highest potentials of big development. With proper development, it could be the Iraqi equivalent of the orchards and fields of California’s central valley. This development and the potential of it will only strengthen the dinar now and in the future.
    Exciting Times, a Positive Direction
    For the dinar, these are exciting times, but even more interesting when it comes to investing in the Iraq stock exchange, because as the oil revenue will start making things possible in Iraq, the opportunities to be in on the ground floor on different investment start ups, will increase. Knowing this is a nation destined for great wealth it makes it even more exciting.
    Saudi Arabia, Dubai, the Arab Emirates and Kuwait; are they rich and prosperous states? Of course they are. Why are they wealthy? Oil. Oil is money. Iraq is practically floating on oil. When do the oil companies want to start pumping? … Yesterday.
    Will Iraq continue to be a poor nation? Will the dinar continue to be at it’s all time low?
    **END ARTICLE**
    Source: ISX Data Services.

  19. Muhammad says:

    Sorry! correction to the speeling mistake of …reckless murder in the first decree.

  20. Muhammad says:

    spelling mistake, typing too fast lah!

  21. Trent says:

    Muhammad, give us an update on your previous post, number 18, on the workings of the CBI mechanism and how buying dinar with US dollars helps to back the dinar and an update on investment law. That was an interesting post, thanks.

  22. right says:

    why not dates this is old news
    why do you replay the same old stuff over and over

  23. Patrick says:

    BIG NEWS TODAY!!!!!!

    EQUITIES
    A consortium made up of ExxonMobil (XOM) and Royal Dutch Shell (RDSA) finalized a deal in Baghdad Monday to develop the West Qurna phase 1 oil field in southern Iraq, Iraqi oil officials said.

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