2009 September | Iraq Dinar Speculation

Archive for September, 2009

Kuwait considers investments rather than reparations

Saturday, September 26th, 2009

This is a follow up and maybe a clarification on the article previous here on Dinar Speculation. The google translation that suggested Iraq requested to release Iraq from Chapter 7 could possibly be a misinterpretation of the following article:

Sheikh Mohammed said that Talabani and Sheikh Nasser discussed Iraqi attempts to get out from under Chapter Seven of the UN charter which imposed crippling sanctions after Saddam Hussein forces invaded Kuwait in 1990.

He said Kuwait is willing to assist Iraq to leave Chapter Seven as soon as possible, but reiterated the emirate’s position that this requires full Iraqi compliance with the relevant UN resolutions.

“The most important aspect for us now is completing the maintenance of border markers,” based on a 1993 UN Security Council resolution demarcating the common border, Sheikh Mohammed said.

Kuwait is also demanding return of property stolen during the invasion, repatriation of remains of prisoners of war and demarcation of maritime borders…

As you can see, this article talks about Kuwait, Iraq, and Chapter 7…. but does not indicate that Kuwait has officially requested that Iraq be released from Chapter 7. In fact, it states the opposite… Kuwait does not want Iraq out until they have fulfilled several commitments, as described above.

Stay tuned, and join the newsletter for instant notification if something major happens!

-Adam Montana

Posted in Uncategorized | 13 Comments »

Possible Iraq Chapter VII news… are we out?

Saturday, September 26th, 2009

Take this how you will, because the translations can be a bit dicey… but this was sent in by a reader. The text “the exit of Iraq from Chapter VII…” doesn’t exactly say Iraq is out, or even that Kuwait has specifically requested to release Iraq from Chapter 7. Read on:

Conscious / Kuwait Office / o. ع P

26/9/2009 26/9/2009 12:30am 12:30 am

أكد مصدر مسؤول في وزارة الخارجية الكويتية لمكتب ( وكالة أنباء الاعلام العراقي/ واع ) في الكويت “أن الكويت أبلغت رسمياً الأمين العام للأمم المتحدة بان كي مون بخروج العراق من البند السابع . وأضاف المصدر لمراسل ( واع ) An official source at the Kuwaiti Foreign Ministry, the Office of the (Agency Iraqi media / conscious) in Kuwait “Kuwait officially informed the Secretary-General Ban Ki-moon, the exit of Iraq from Chapter VII. The source of the reporter (conscious) ” أن الموافقة أرتكزت على الأستثمار بدلاً من التعويضات المتفق عليها في القرار اعلاه. فيما أوضح وزير الخارجية الكويتي محمد الصباح “ان الكويت ستسعى بجميع أمكانياتها لمساعدة العراق على أستكمال تطبيق قرارات مجلس الامن المتبقية والحائلة بين العراق والكويت”. “The approval was based on investment rather than the compensation agreed upon in the above decision. Clearer with Kuwaiti Foreign Minister Mohammad al-Sabah” Kuwait will strive with all their means to help Iraq to complete the implementation of Security Council resolutions, the remaining buffer between Iraq and Kuwait.

Any native arabic speakers, please feel free to give a better translation in the comments. If you’re new to the Dinar investment, please understand that it could be very important for Iraq to be out of Chapter 7 before they are allowed or able to revalue their currency.

Posted in Uncategorized | 4 Comments »

Is Iraq exchanging large notes for smaller denominations?

Tuesday, September 22nd, 2009

We’ve been bombarded with emails regarding the recent rumor that

tents have been set up to exchange large Iraq Dinar notes for

smaller denominations. This has not been confirmed on our end, but

we welcome all feedback from our members.

Thanks, and best wishes!

-Adam Montana

PS – I’ve also received several requests for information on how to

get into the forex. I’m currently using eToro, it has a demo trading

platform that alows you to practice with fake money – very cool!

Here’s the link, if you want to give it a shot:

http://www.etoro.com/B1345_A16827_TClick.aspx

(Also sent out to the newsletter subscribers.)

DS readers,

We’ve been bombarded with emails regarding the recent rumor that

tents have been set up to exchange large Iraq Dinar notes for

smaller denominations. This has not been confirmed on our end, but

we welcome all feedback from our members.

Thanks, and best wishes!

-Adam Montana

PS – I’ve also received several requests for information on how to

get into the forex. I’m currently using eToro, it has a demo trading

platform that alows you to practice with fake money – very cool!

Here’s the link, if you want to give it a shot:

http://www.etoro.com/B1345_A16827_TClick.aspx

Posted in Uncategorized | 61 Comments »

The change from USD to IQD in Iraq

Thursday, September 17th, 2009

From Army Times author Kris Osborne (no link provided):

U.S. slows cash flow into Iraq, Afghanistan
By Kris Osborn

The U.S. government is slowing the flow of dollars into Iraq and Afghanistan as part of a push to build up the local currencies, banking systems and economies.
In the effort by the State and Treasury departments and the Army, all U.S. payments to local vendors in Iraq and Afghanistan will be made by electronic transfer starting Oct. 1, said Brig. Gen. Phillip McGhee, director of resource management, Third Army.
In recent years, billions of U.S. dollars has flowed into the countries.
“There was no banking structure, there were no financial institutions. They either didn’t exist to begin with or they collapsed after the start of Operation Iraqi Freedom,” McGhee said. “We went for years reverting back to what we know and can do very well, and that is put a lot of cash out there.” But that approach invited corruption and theft, tied up U.S. troops as security guards and gave insurgents a key financial tool.
“Insurgents and al-Qaida prefer to use U.S. currency,” McGhee said. “They can use that anywhere in the world, so the sooner you get that out of there, they will have to find another currency.” But the primary reason for the switch, the general said, was to give Iraqis and Afghans more control of their recovering economies. Using local currency boosts confidence in local governments, one analyst said.
“For the long term, this is good for the country to the extent that people see the Afghan and Iraqi governments as providing stable institutions. It does build some confidence,” said Keith Crane, who directs environment, energy and economic development programs at Rand Corp., a California based think tank.
The flow of U.S. cash is already drying up. U.S. payments will move through a web-based Defense Department service called “Wide Area Work Flow.” That allows the government to “write contracts to the vendors in U.S. currency that are paid in local currency,” McGhee said. “If you are a contractor and your contract was written through [electronic funds transfers] — you can see where your payment is in the system.” The funds will be sent to local banks that have been certified ready to handle e-transfers, where they will be available for the vendors to withdraw in local currency. Reducing cash payments saves the Army money. Each transaction costs about $32 a payment, according to an Army news release.

(Hat tip to one of the readers of DS, please claim your credit in the comments if you wish it.)

Posted in General Iraq Discussion, Iraq Finance, Iraqi Banking related | 12 Comments »

U.S. Vice President Joe Biden makes surprise visit

Tuesday, September 15th, 2009

US VP Joe Biden popped into Iraq this afternoon, unannounced. Biden is meeting with a number of US military commanders and Iraqi officials to discuss security and political develpments in Iraq.

U.S. Vice President Joe Biden has been appointed to supervise the late 2011 departure of US troops from Iraq.

DS readers, if you have any information on the proceedings of this surprise visit, please leave comments on this article. Most likely this is simply a routine visit, and it was left unannounced due to security reasons, but we always like to know more… rather than less! Stay tuned!

Posted in Uncategorized | 3 Comments »

Oil Law passes Iraqi Cabinet stage

Monday, September 14th, 2009

A couple of sources are claiming that the HCL was passed, but that is not true. Dinar Speculators are still waiting for an official approval of the HCL in spite of hte article quoted below. As you can see, it says the Iraqi Cabinet approved it… but it still needs to make it through parliament.

Regardless, it’s a good sign that they are moving forward!

Article below:

The Iraqi government has approve 5a8 d a draft Oil Law. The accord does represent a major rapprochement between Baghdad and the Kurdish Regional Government. However, the initial approval may be the easy part in the process. The draft is only an outline and pressure is building to negotiate details. With additional opposition to the move developing, the prospect of finalizing legislation remains in serious doubt, according to an analysis published by Caspian Investor.

Caspian Investor is published by WorldTrade Executive, Inc. and provides unequaled news and analysis of energy sector developments impacting the countries of Central Asia and the Caspian Sea region. It includes extensive coverage of Iran and some details of Iraq as it impacts regional markets.

That still may happen in practice

The law was approved without any details.

317 The Iraqi Cabinet approved a draft of the long-awaited Oil Law on February 27. The bill now moves to the parliament. Sources told Caspian Investor, however, that significant problems remain in securing passage.

Kurdish Support Vital

That the bill has made it this far is a result only of a last-minute decision by the Kurdistan Regional Government (KRG) to back it. “The support, however, is for a broad outline accord,” one source close to the negotiations told us on February 28. “The details of actually dividing oil proceeds will present a major future obstacle.”

Majority Shiite factions are supporting the initiative, at least in its present general version, with the Sunnis expressing reserved support since they remain included in the partition of revenues from sales. There had been genuine concern among the Sunnis, now a minority of the population and controlling only areas of the country without significant hydrocarbon reserves, that the accord would leave them with no oil revenues.

“That still may happen in practice,” notes a Sunni member of the Oil Ministry. “The law was approved without any details.” According to the draft, oil sales will comprise a single fund controlled by the central government and redistributed throughout the country based on population. The regions will have authority to negotiate and sign contracts within the contract guidelines set out in the law. Unfortunately, the government has yet to propose any of these contract specifics.

Other recent articles in Caspian Investor are:

How Serious is the Iranian Push for a Natural Gas Cartel?

Kazakhstan Enters the Russian M&A Market

An Interview with Vagit Alekperov: The president of Russian crude leader LUKOIL.

For more information on Caspian Investor or its related publication, Russian Petrolem Investor, contact Jay Stanley, +1 978 287-0301. or go to http://www.wtexecutive.com and review the energy section.

Posted in General Iraq Discussion, Iraq news, Iraqi Politics | 3 Comments »

For those of you not in the ISX…

Tuesday, September 8th, 2009

It’s amazing to me to hear all the naysayers out there when it comes to the ISX. If you haven’t noticed, Iraq IS moving forward in leaps and bounds on a regular basis. Security is consistently stronger, peace is more prevalent, technology is moving forward, and business is growing. Take a look, for example, at the Warka Bank news page. Here are a couple excerpts:

… Baghdad Motor Cars Servicing is issuing 200% paid up shares at the value IQD (1) per share for those shares owned prior to holding their general assembly meeting. You are kindly requested to submit your signed buy requests to purchase the paid up shares…

You know what that is, right? Free shares. Free shares = free money! More:

… Ready Made Clothes has announced that it will be issuing 41.718% paid up shares at the price of IQD (1) per share for those shares owned prior to holding its general assembly meeting. Investors are kindly requested to …

Yep, more free money! More:

Dear Warka Investors,

Please note that Palestine Hotel has announced that it will be issuing 47% free shares to its fine shareholders.

Getting the picture yet? Well, here’s one more:

… Mamoura Real Estate has announced that it will be issuing 15% free capital shares…

Pretty amazing, huh? All of those announcements were made within the last three weeks. I was personally the recipient of 2 of them, and I am in the process of buying into a few more stocks.

This is, of course, my personal opinion and I am not a financial advisor.

I’m just a wealthy guy who knows the value of free money. Best regards to you and yours.

Now for the poll question – are you invested in the ISX?

Posted in General Iraq Discussion, Iraq Finance | 19 Comments »

Good articles on Central Bank expecting to raise the value of the Iraqi Dinar

Friday, September 4th, 2009

Hat tip to Seaview over at IIF.

Someone please tell me how the article was translated by google to include a famous Disney character, though! Article:

Sign adviser CBI Mzarmohamd for Iraq to become of the oil-producing countries developed during the next two years if entering Iraq through the gate of the oil investment.

وأكد صالح أن الاستثمار سينعكس على تطور الواقع الاقتصادي في البلاد نتيجة تنوع موارده، وهو ما سيؤدي إلى ارتفاع قيمة الدينار العراقي: The benefit of that investment will be reflected on the evolution of the economic reality in the country by the diversity of its resources, which would lead to a rise in the value of the Iraqi Dinar:

وأشار صالح في حديث لـ”راديو سوا” إلى أن العراق يحتفظ بمعدلات عالية من العملة الأجنبية تغطي السيولة المحلية ما يدفع إلى استقرار الدينار العراقي في تداولات سوق العملات وبالتالي يحفظ الاستقرار الاقتصادي: Salih noted in an interview with “Radio Sawa” that Iraq retains high rates of foreign currency cover domestic liquidity is paid to the stability of the Iraqi dinar in trading the currency market and thus preserve economic stability:

فيما أوضح الخبير الاقتصادي أسعد العاقولي أن سعي عدد من الدول الأوربية للاستثمار في العراق سيرفع من موارد البلاد وسيدعم قيمة الدينار في المستقبل، ما يؤهل العراق للدخول في الاستثمارات الخاصة في مجال الغاز: The economic expert explained that the happiest bugsbunny attempt by a number of European countries to invest in Iraq will raise the country’s resources and will support the value of the dinar in the future, as Iraq prepares to enter into private investments in gas:

وكان صندوق النقد الدولي قرر منح العراق 1.8 مليار دولار لدعم السيولة النقدية واحتياطيات البنك المركزي العراقي، فضلا عن إنعاش المشاريع التنموية. The International Monetary Fund decided to give Iraq $ 1.8 billion to boost liquidity and cash reserves of the Central Bank of Iraq, as well as for the recovery of development projects.

It sure would be handy to know how to read arabic… If someone could comment on this article with firsthand knowledge of the translation, it would be appreciated!

Posted in General Iraq Discussion, Iraq Finance, Iraq news, Iraqi Banking related, Uncategorized | 5 Comments »

Iraq Dinar Speculation

Archive for September, 2009

Kuwait considers investments rather than reparations

Possible Iraq Chapter VII news… are we out?

Is Iraq exchanging large notes for smaller denominations?

U.S. Vice President Joe Biden makes surprise visit

Oil Law passes Iraqi Cabinet stage

For those of you not in the ISX…

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