Latest on the Iraq Dinar situation



Hello again, Adam Montana reporting for duty on www.DinarSpeculation.com!

It’s been a wild month already, and many indicators are pointing towards a quick end to the Dinar rollercoaster. If this is your first visit to the site, do yourself a favor and enter your name and email in the newsletter signup box – it’s free and you’ll get instant notification of Iraqi Dinar Revaluation – trust me, you need that Dinar news! This is the one investment that can make you very wealthy overnight, with very little relative risk. Not only can it happen overnight – there’s heavy speculation that it will be tonight or tomorrow night. Get on the email list! Today I will cover a few Frequently Asked Dinar Questions and talk about the recent events bringing Iraq closer to having a real currency. Yeah, I know – the Dinar is “real” already. But it’s not traded on the FOREX yet, and it’s not internationally recognized… so it’s not as “real” as it will be soon.

So, who the heck are you?

That one is funny, and I get it a lot. Simple answer is I am Adam Montana. I am a Harvard Graduate and a self made man, 48 years old. I specialize in investments, dabble in web development, and have a wonderful family that receives the majority of my attention.

OK Mr. Montana… why do you have this Iraqi Dinar information blog?

The simple answer is “I enjoy it!” I research foreign affairs and investment opportunities every day, and the Iraqi Dinar is by far my favorite topic. As I learn about the Dinar, I am presented with the opportunity to share with thousands of people what I’m learning… and I do that by posting what I find on this blog. If you like what I report and my “no B.S.” approach to the Iraqi Dinar topic, please bookmark the site and even share your comments on the articles!

Fine, Adam, thanks! Now let’s talk about Iraqi Dinar.

Let’s get started with some commonly asked questions. I know I get these same questions over and over again in our dinar chat room, so this will be a good place to start.

Do you know when the Dinar will RV?

Nobody knows that, and anyone who gives you a specific RV date and rate is probably lying to you. I’ve built a huge following by not b.s.-ing the readers here. I write about factual events and give my honest opinions.

Thanks for the honesty. Is the Dinar a safe investment?

This is a great question! I have strong faith in the Dinar, I believe at the very least you will see a 100% return on your investment over the next 5 years. That is the VERY LEAST!!! Study the history of the Dinar, and you’ll see that it could be MUCH more lucrative than that. However, be smart – don’t bet your rent money on it. We ARE dealing with Iraq here!

Wait a minute… are you trying to pump up Dinar Sales?

Haha! No, not even a little. I don’t sell Dinars, I don’t care if you buy them or not. I just want you to know as much as possible so you can make up your own mind about the Iraqi Dinar.

What is CBI?

CBI is most often “Central Bank of Iraq”, not to be confused with Commercial Bank of Iraq or Credit Bank of Iraq.

What is TBI?

TBI is Trade Bank of Iraq. Although TBI is a state owned bank, like CBI, the Trade Bank of Iraq’s focus is on international trading and lending. TBI was created in July 2003 after the expiration of the Oil for Food program. The bank opened in November of 2003 and quickly established lending credit with 134 prime bans throughout the world. TBI was the first Iraqi bank to join VISA, the first to bring ATM machines to the Iraqi banking world.

How are CBI and TBI different?

CBI (Central Bank of Iraq) focuses on monetary policy and the actual currency of Iraq.  They also issue permits and supervise other Iraqi banks. In a way, the CBI is the top of the banking ladder in Iraq. Heading the CBI is another name you’ll hear quite often: Dr. Sinan al-Shabibi. TBI (Trade Bank of Iraq) is independently owned by the Ministry of Finance, which is headed by another name you will hear quite a bit: Bayan Jabr. In recent news, TBI is the first Iraqi Banking institution to engage in trading on the FOREX through a newly established contract with Thomson Reuters.

What is the Ministry of Finance?

Ministry of Finance and Banking in Iraq manages Iraq’s debt, establishes budgets, and also handles economic policy. Bayan Jabr is Iraq’s equivalent of the U.S. Alan Greenspan, you could say. OK! Don’t feel bad if some of that was confusing – Iraq takes time to understand. On the other side of the coin, please don’t throw eggs at me if you already knew all of that – I get a lot of newbies asking those questions, and I want to help everyone! Now that you’re a little more up to date on some basic facts in Iraq, let’s talk speculation.

Is the IRAQI DINAR on the FOREX?

No, it’s not. Let’s be realistic, though – how COULD the Dinar go on the FOREX if Iraq itself wasn’t able to take part in the trading of their own currency? IT COULDN’T, and it’s ridiculous to think that it would! When we see an RV that puts the Dinar on par with the USD or higher, it will be on the FOREX. Every investor in their right mind will be jumping on the IQD as soon as it’s listed next to the EURO, USD, and other tradable currencies. Next logical question: how could IRAQ trade on FOREX if they didn’t already have the technology in place? The answer is also simple: THEY CAN’T!

Summary of Current Iraqi Dinar Revaluation

As we all know, the EL (Election Law) was pushed through yesterday. I had advance notice of this, as I mentioned in chat last night. Had it triggered an RV, everyone would have received an email already, but we’re still waiting as I write this. Thomson Reuters and TBI are moving forward with their FOREX agreement. I have an update coming shortly regarding the Chapter 7 restrictions Iraq is under right now. (Actually, it will be a small eBook – but I’ll be giving it away for free.) The revaluation of the Iraqi Dinar is not a couple of sticks leaning against each other like a kids attempt at making a teepee. It has to be a well constructed HOUSE that is capable of withstanding storms, heat, cold, and more. Stability in the country is the foundation, Political momentum is the framework, International banking capability and FOREX technology is key to the wiring, Chapter 7 is a big bow wrapped on the outside of this present that’s just ready to be taken off. I hope I’ve helped you all to understand the current situation in Iraq a little better. Have faith, and stay tuned: things are happening fast right now.

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69 Responses to “Latest on the Iraq Dinar situation”

  1. avatar Fahema Allen says:

    Now that Ali has a bank in Iraq will he be opening an office here where we can open an account? Instead of going thru Warka? It would be beneficial to be able to do it here in the US, creating a sense of safety, than sending dinar directly to Warka in Iraq. Ali would be able get it safely to his bank in Iraq.

  2. [...] The rest is here: Latest on the Iraq Dinar situation | Iraq Dinar Speculation [...]

  3. avatar Swabby says:

    A logical basic order of instruction on how to enter the Iraqi Stock Exchange would be nice.
    This comment is intended for the Dummies Book.

  4. avatar imafc1 says:

    ADAM,

    I have a VERY COMPREHENSIVE information message regarding ways to MINIMIZE tax obligations after RV. I want to send it to you, personally, for your assessment before posting it publically. PLEASE reply to me by return e-mail with an address where I can send it to you. If necessary to maintain your personal privacy, please set up a “one time only” type of e-mail address on your website where I can send it and if you are not interested, just reply to me accordingly and close the e-mail address.

    Thanks in advance.

  5. avatar nick syl says:

    should i keep the 25000 bills or try to cash in for smaller notes?

  6. avatar Bluewaters2u says:

    I must say Adam, that you have put together some great info here on the Blog that should at the very least help those who have not done or have had time for some homework/research available to them on the past and current info available on the Iraq Dinar. I enjoy your no-nonesense-BS approach to this Investment info and or Intel that you may have to share with us all. Also thanks for the upgrade on your DinarVet web site as well. It is a much welcomed none intrusive site and fun to chat on as well…Bluewaters2u

  7. avatar jeannekip says:

    Adam, I couldn’t get into the site re: your upcoming ebook to ask a question. My question is, once the dinar revals, should I try to get in line asap to convert to U.S. dollars or does it matter when I have them exchanged? If there’s a hurry to exchange my investment, what would the hurry be caused by? As a newbie I really need your ebook, obviously.

  8. avatar Woody Woodyard says:

    First time invester…I trust many folks and I
    look forward helping my family with the income.
    Thank You, Woody

  9. avatar Richierich says:

    I would like your tax info and e-book plz and ty for all the work u do for us and making it fun …. Mycal

  10. avatar challengerll says:

    Has anyone beside Medic confirmed that Ali has actually bought a bank like did someone email him

  11. avatar Woody Woodyard says:

    I guess “income” was the wrong word to use.
    I will use the word more potential than other
    investments I made. Thank You

  12. avatar mrs. williams says:

    Adam are you a christian ? B/C what you do comes from a good heart. Thank you for looking out for us. Many blessings.

  13. avatar Greg Lindstrom says:

    Adam. I have been able to set up an account with Warka.But I haven’t been able to fund that account through Citibank. Citibank has not responded to my e-mails as to how this process works. My local bank is unsure of what steps I need to take. Can you clafify.

  14. avatar Speed says:

    Is Ali going to open other sites to exchange after the RV?

    What is holding up the RV now?

    Speed

  15. avatar Lots2Learn says:

    Could you give a step by step process for exchanging our IQD for USD after the rv? Is there anything that we have to take with us other than the currency? Which questions should we be asking of our banks? How can we compare exchange rates? Could you explain “spread”? Is there an RSS feed we could sign up for to keep track of the Chapter 7 progress?

    Thanks.

  16. avatar Greg Lindstrom says:

    I’m I just asking questions? are there any answers, especially to #13. I need the step by step process of How Citibank recieves funds from me to forward to the Warka account. Warka doesn’t know, Citibank say’s talk to Warka and Warka say’s talk to Citibank. My local bank doesn’t know. So now I’ve set up an account with Warka and I don’t know how to send them money. Is this suppose to be easy, has anyone done this? Tell me how. I would very much appreciate an answer. This sounded like the solution for protecting my 25.000 notes, in case of a forced recall. I can’t possibly be the only one trying to get this done.

  17. avatar Muhammad says:

    Letter from CBI – November 18th 2009
    Mr. Vxxxxxs,

    Apologies for the extended delay of this reply. Thank you for your inquiry regarding the revaluation of the Iraqi Dinar. Currently we are not told what is discussed behind closed doors, but I can say that there are plenty of rumors amongst bank employees regarding a revaluation of the currency. We are not sure when this will happen, since there is a long list of procedures before this can be accomplished.

    We here at the CBI are excited of the rumors at the moment. There have been many meetings here throughout the month of October and November with government officials, which can really only mean one thing, a revaluation is in the works.

    I can only think of the possibilities for Iraq once the currency is worth something to the people of the world and we here in Iraq are able to travel and trade freely amongst the international markets.

    This is the only information I have, sorry I could not be more specific with the information you had requested.

    Kind Regards,

    Al-Bin Ra*****d

    Customer Service
    cbi@cbi.iq
    +964-1-8165170

  18. avatar John says:

    What you might notice in the letter from CBI could be true as CBI hopes more foreign investors of IQD would buy more legal tenders of any denominations so that they can receive more commissions when you convert IQD into USD in their banks. Make sense? No one is too free to make that remark to BS us for fun. There must be a catch for someone in the CBI to provide us such confidence.

  19. avatar John says:

    Sorry, I meant CBI hopes more foreign investors of IQD would recommend others to buy IQD as well as commission charge is always the same whether you convert 1,000,000 IQD or 300,000,000 IQD inot USD. Get it!? More bank customers in this case more commission charges.

  20. avatar jme says:

    I talked with someone in the foreign exchange department for Well Fargo in Portland who stated that they are not buying or selling NID, in fact are at this time restricted from doing so. He stated that his experience with RV in Mexico was they reprint the currency in small demoninations, lob off three zeros, and holders of the currency were given a short time to exchange the money. Can this issue be addressed? If this is not a possibility, I would like to know. If it is, we need to know.

  21. avatar Sandy smith says:

    I would appreciate the info about how to minimize taxes after the RV.
    thank you

  22. avatar Albert E Bryant says:

    Any information pertainig to the above questions or subject matter, will be appreciated!

  23. avatar Louis Moreland says:

    Adam, this is my first comment to you. Thank you for everything. When this RV finally happens, I will know my life has changed for the better. Maybe I can do something for you one day. I really need your help and guidance through this process. I have no clue as to what to do when it happens. Thanks.

  24. avatar Tim says:

    Greg,On the Warka transmission; try John Drummond.He sells an info book on e-bay for about $12 or he will do it for you for $8. I’ve bought the book and am considering his service for a Warke account.Adam,thanks for your info;it’s very useful.

  25. avatar mike says:

    I just ordered 1,000,000… Im worried that i mite have got into late. They said that they would be shipping my order by the end of the week. I hope that this isnt a way to buy them time. My friends all did it 2 weeks ago. i just now had the money. Do you no if there will be a hold on all trade?

  26. avatar Larry says:

    How do I get your Dinar E Book?

  27. avatar Carla says:

    Adam, What about taxes and how will that be handled and how do we hold on to our as much money as possible? Carla

  28. avatar sammiePJ says:

    Adam, first i would like to say.. thankyou for your input and research. im a fact girl.. only want to deal with facts..
    Like everyone else here i would love for this adventure to come to an end..and to begin a new one.
    if it is not too much trouble, could you please send me your tax info and e-book …
    thank you and have a blessed day

  29. avatar khaukha wilfred says:

    Adams, we appreciate all the info’ you endevour to give us but the question is, when will the RV happen b’se we are like tied up and we can’t move, so i wonder when shall we ever develop if the whole process is not coming to an end and we start business we other countries in the world.OKAY we are keeping our fingers crossed expecting all to go well so that we start serious business in the new year.
    stay blessed Khaukha

  30. avatar Marni says:

    I’ve purchase some Dinar recently and have read all the blogs, posts etc. I couldn’t be more confused! :) I heard that the IQD had RV’d, but there is something that needs to be done before it technically goes through? Help please? Also, the post on #20 concerns me a bit about not being able to convert the $25k notes when it actually does officially RV. Forgive my ignorance, foreign currency is new to me.

  31. avatar Robert says:

    I brought back from Iraq alot of the Dinar and now I would like to know how to go about opening a Warka account with that Dinar. After I get an account with Warka Bank, will I have to open an account with Citibank or some other bank that will accept the Dinar. Then will there be an exchange fee on top of the transfer fee? I understand the fee of taking USD and transfering it to Warka and then exchanging it to IQD.However my confusion is dealing with the Dinar that I have in hand now. I would also like any sugestion you might have on the tax of the Dinar after the RV and please send me your e-book.
    Thank You So Much
    Robert

  32. avatar kathy says:

    Do you know the tax implications when turning in the dinar? Will it be treated as a capitol gain? Thanks for answering my questions.

  33. avatar LEO says:

    Hello Adam. I heard that the election in iraq will be exactly on March 07, 2010. So the good news is the RV will happen after March 07 AND THE EXACT DATE IS MARCH 08, 2010 at directly
    1 Dinar=US$ 3,20. This isn’t a rumor. This is true. Doesn’t it sound easy money to invest in Dinar.

  34. avatar meghays says:

    Thanks for all the great info and the blog. I have learned a lot from your site and pass the info along every time I get something new. Thanks again and here’s to the Dinars RVing very soon!! :)

  35. avatar Frank says:

    Hi Adam ,
    It is interesting to see that on all the sites nothing is really being mention as to this huge media event by the GCC. Frist its been mention that sometime near future Iraq is to be brought back into the GCC . What a better time then when you have 300 invited media company’s . Maybe the big screen TV in IRAQ is just for this event.MAYBE their currency will be discuss at this event along with the GCC . It seems for the first time all these great ITEL gathers have nothing to say about this event. What’s UP?

    ZEEKE
    fzitkevitz@hotmail.com

  36. avatar Attakhalil says:

    What I am wondering is that there are a lot of Americans invested in IRAQI DINAR and most of them are relying the news and updates of the Dinar sites run by Americans. I have been monitoring all the financial updates in all the major news around the world and nobody is indicating about the revaluation except in these blogs. Even the CNBC interview with Ali and Jim Crammer deosnt indicate anything about revaluation. So come how these Dinar sites are so confident of a revaluation of Dinar before Iraq economy is capable of accepting such a scenario….? As a financial expert myself, I cannot see any revaluation to take place until and unless iraq has the financial resources to buy back their Dinar…this is my point..I hope someone will prove me wrong. I would appreciate any argument to support vise versa.

  37. avatar Woody says:

    Here’s another lovely rumor for you… I heard today that the Dinar is trading for 3.60 in Iraq NOW. Is it possible that one dinar is worth 3.60 USD in Iraq and nowhere else?

  38. avatar Trent says:

    “Not only can it happen overnight – there’s heavy speculation that it will be tonight or tomorrow night.” What happened?

  39. avatar Kimberly says:

    Just wondering, how can the economy afford to pay everyone in USD in exchange for the Dinar? I understand the concept, just don’t understand how the USD could hold its value if some many people are ‘vested’ into the Dinar. Yes, I am new to this, and I need guidance…..and your book

  40. avatar James says:

    Adam I cant not reply to anything at the forum scene the change can you help me here i got a e-mail saying to reply to introduce yourself but cant reply

    user name is Mojo

  41. avatar WDMCB says:

    Today, Thursday, December 10, 2009, Wolf’s “Situation Room” on CNN reported a bombing in Bagdad that wounded and killed over 500 people.
    And that bombing has postponed meetings that were scheduled that if they were held, would have had an impact on the progress Iraq is making towards recovery…which implies that the politics that is being played as well as the democratic elections that will be held in March will be the denominator that will determine the relative value of the Dinar. So we should not expect a RV or RI until after the dust settles from these two events. Patience is still the optimal word!…I would presume.

  42. avatar Duce says:

    Leo: you seem confident in your statement about March 8th and 1 IQD = $3.20. Do you have any proof of this statement? I’m just wondering.

    Woody: No, the IQD is not trading at $3.60 in Iraq now. I am in Iraq now and I’ve been here since 2004 and have held my IQD since 2004-05. Trust me, if the IQD was trading at $3.60 over here, I would be home with my wife and kids…..Sorry.

    WDMCB: I wouldn’t be too concerned about the recent bombings in Baghdad. There is no way to stop all of shootings and crimes over here, just like it will never stop in the US or any other part of the world. This is just something that the government will have to work around and/or with. In my own opinion.

    Holding strong and hoping for RV very soon, like everyone else,

    DUCE

  43. avatar Trent says:

    Leo,
    Why is it that you alone have the inside information on when the RV will occur and at what rate? It has already been established on this site that nobody knows the date or the rate.

  44. avatar Gerald says:

    Please keep me updated

  45. avatar scott mullens says:

    whats going on with the rv

  46. avatar LEO says:

    Trent:you Just wait and see for yourselves exactly on March 08, 2010. JUST REMEMBER THIS DATE.

    Duce: you Just also wait and see for yourselves exactly on March 08, 2010. JUST REMEMBER THIS DATE.

  47. avatar Carla says:

    Leo, Ok you really talk a good game. But answer the question MAN? Talk is cheap! Where is the the proof? Everyone wants to keep saying tonight or tomorrow or next week or March 8th. Where is the proof??? We know this will happen no doubt but this constant back and forth without proof is getting old. Either show us proof of what you are saying and this goes for everyone else who thinks they know when the RV will happen or just not say any thing. Really people. Lets get some proof its not right to lead people on an emotional rollercoaster. Like some people have been doing. RIGHT?

  48. avatar LEO says:

    Hi Adam. I heard Iraq will join the GCC ( Gulf Cooperation Council )that include Saudi Arabia, Kuwait, Bahrain, Qatar. And, the GCC already print out the new money called ” GULF DINAR ” in 2010. Then, the member of GCC will use Gulf Single Currency caleed ” GULF DINAR “. Then, Iraqi will use Gulf Dinar instead of Iraq Dinar. And, the rate is 1 Gulf Dinar = US$ 2,66 or if exchanged from Iraq Dinar to Gulf Dinar, 1 Gulf Dinar= 3,000 Iraq Dinar. Is it a good news or what?

  49. avatar Jack says:

    Hi Adam,

    I am a newcomer at the Dinar investment. I was wondering if you could provide me with any information when the Dinar RV, how can we pay less capital gains or taxes? Could you send me your book. Appreciate your insite and current information….. Thanks So Much

  50. avatar Winston says:

    Thank you for the information. It is very helpful.

  51. avatar Winston says:

    Leo, with your breakdown 1,000,000.00 Araq Dinar will only be worth 333.33 Gulf Dinar and the 333.33 Gulf Dinar would only be worth 886.66 USD. That doesn’t sound that good. Am I missing something?

  52. avatar Joe says:

    Leo Iraq is not appart of that.And they said for that new currency to come into play it could take up to 10 years.

  53. avatar William says:

    Hi Adam. I heard that Iraq will increase the Oil Production into 10-12 million barrel a day , just assume that the price of oil is around = US$ 60/ barrel.. So by increasing the Oil Productions,the government of Iraqi can pay off all their debts and also can make the iraqi people’s lives more prosperous. In this case, If at any time ,all the iraqi people’s lives prosper without debts at all that means the RV will not happen at all. I hope that prove me wrong. Help me out and give me your opinion anyone here……

  54. avatar Trent says:

    Duce, you say you’re Iraq, whats the word on the street?
    Leo I hope you’re right about March 8 bro! I’ll remember that date.

  55. avatar Starlie Buchan says:

    Adam, You are a very special person for keeping everyone informed and listening to everyones concerns. I have not commented on the dinars because everyone needs to have more patience and whatever willbe will be. You are truly and educated person with great feeling for other people.and I know that something real good will happen for you and your family . You are truly blessed with many gifts and the best gift for us is when you came along and educated us about our hard earned worked money and little investment for what we believe will help our little familys out. Many Thanks and just know that someone is guiding and watching over you for you have many talents. Your the best gift of all. thanks , Star

  56. avatar Joseph says:

    Hey Adam. I just heard that Zimbabwean dollar is also a good investment after Iraqi dinar. And,I just got very very little information about Zimbabwean Dollar and I hope this will help anyone here who may be interested in Zimbabwean Dollar because the rates changes daily.
    1.)Changed daily due to hyperinflation
    Redenominated currency 1 Aug 2006: 1,000
    first Zimbabwean dollars ( ZWD )-> 1 second
    Zimbabwean dollar ( ZWN )( NOTE: US$ 1= 500,000 ZBD.
    2.)Changed daily due to hyperinflation.
    Redenominated currency 1 Aug 2008:
    10,000,000,000 second Zimbabwean dollars
    (ZWN )-> 1 third Zimbabwean dollar ( ZWR ). ( NOTE: US$ 1= 758,530,000,000 ZWN ).
    3.)Changed daily due to hyperinflation.
    Redenominated currency 2 Feb 2009:
    1,000,000,000,000 third Zimbabwe dollars
    ( ZWR ) –> 1 fourth Zimbabwe dollar ( ZWL ).
    ( NOTE: US$ 1= 669,000,000,000 ZWR )

    Doesn’t anyone think that Zimbabwean Dollar sounds profitable investment?anyone here has some opinions tell me more……..

  57. avatar Joseph says:

    Gulf nations may opt first for dollar in currency union: The US dollar will be a dominant component even if a basket of currencies is chosen.
    Four Gulf nations entering the Middle East’s first monetary union pact are expected to peg their single currency to the US dollar in the first phase of the historic project but might opt for a basket later.Saudi Arabia, Kuwait, Qatar and Bahrain, members of the six-nation Gulf Co-operation Council (GCC), have kept the world guessing on what type of currency they would adopt for their monetary union, which was ratified by their heads of state at their annual summit in Kuwait in mid-December.But there have been strong official signals that the four countries would not veer away from the US dollar in the first years of the monetary union.And some of them have indicated that even if a basket of currencies is selected, the US dollar would be its dominant component. And that the Gulf currency would be pegged to the US dollar in the first stages of the monetary union because it is the official price of their oil exports, which account for the bulk of their exports… a large part of their foreign assets is also denominated in dollar.”A basket of currencies in the early stages of the union would create several technical difficulties for them in their currency and fiscal policy alignment… I believe that a basket could be chosen at a later stage but I am confident the dollar will have the lion’s share, say at least 60 per cent of its components.” Gulf central bank:The central bank: governors of the four Gulf states will meet in Riyadh soon to create the GCC Monetary Authority, which will pave the way for the establishment of a common central bank to manage their currency union.The meeting in the next few weeks will cover steps to implement the union, including the formation of the Gulf Monetary Authority (GMA).”The meeting will be held within the next few weeks and it will cover the establishment of the GMA and naming of its members… It is expected the GMA will be set up within the next two months.”The GMA is the first actual step towards the full implementation of the monetary union… the GMA’s functions include the establishment of a common GCC central bank to be based in Riyadh and enjoy full autonomy. The basic functions of the central bank will be to devise and implement the union’s monetary policy and exchange rate policy. The GMA will continue to operate until it is replaced by the central bank once it is created and becomes fully operational.”The currencies of Saudi Arabia, Qatar and Bahrain are pegged to the dollar while Kuwait detached its dinar and linked it to a basket last year in a bid to tackle soaring inflation, caused mainly by the weakening US currency. Experts said Kuwait could revert to the dollar should its partners in the union opt for a dollar peg in their single currency, which could be launched in 2015.”Preparation for the full enforcement of the GCC monetary union will start next year and a common Gulf currency would materialise in 2015,” Abdul Rahim Naqi, Secretary-General of the Dammam-based Federation of GCC Chambers of Commerce and Industry.The UAE, the second largest economy in the 28-year-old Gulf alliance, pulled out of the currency union early this year. Oman opted out in 2007 on the grounds it is nor ready for the project. Dollar dominates:
    The proposed Gulf currency will be pegged to the US dollar at the beginning because it is the official price of the GCC oil and gas exports and most of the region’s assets abroad are in US dollar.”they could adopt a basket at a later stage… this basket will of course take into account the size of the GCC’s exports and imports from their main economic partners. But the dollar will be the main part of it.”the dollar, to which the GCC currencies have been effectively linked for more than two decades, would be the official peg to the new single currency in the first few years of the monetary union.”It is natural that the GCC countries peg the new currency to the dollar in the beginning since the dollar forms a large part of their trade and foreign assets. I think all regional and global conditions indicate that the Gulf currency would be pegged to the dollar. But this might change at a later stage, depending on what they decide for their currency. IMF help:The four members have already sought help from the International Monetary Fund on a possible revaluation of their currencies for the monetary union.In a working paper released recently, the IMF suggested slight appreciation
    of the currencies of those members against the US dollar but it warned any leakage of news ahead of the revaluation could spur damaging speculation.
    “This paper developed from an informal request to one of the authors by a member of the GCC Secretariat for guidance on how to set the conversion values for the new GCC currency.”If hypothetically the GCC decided to establish the new currency in its original planned date, Saudi Arabia would need to revalue its currency by 2.94 per cent, Kuwait by 5.15 per cent, Qatar by 4.54 per cent, and Bahrain by 1.09 per cent. The methodology provides an estimate of the required adjustment for each currency if the conversion is to take place in 2011, 2012, or 2013.”that a sharp appreciation against the dollar would hit the GCC foreign assets. Another negative effect is that their oil sales are priced in dollar and an appreciation means lower crude export earnings in local currencies.”This will again put pressure on their fiscal systems and could create budget deficits when regional states have just reverted to surpluses after painful shortfalls for more than two decades.”In Saudi Arabia for example, oil revenues are earned in dollars and converted into riyal for budgetary spending. A revaluation would permanently impair the riyal value of oil revenues, reducing the size of the current budget surplus and accelerating the day when the budget falls into deficit. The value of the government’s mostly dollar-denominated foreign assets, currently in excess of $400 billion (Dh1.46trn), when converted into riyals would also be cut.” Foreign assets:Figures by the Washington-based institute of International Finance (IIF) showed the GCC’s combined foreign assets were estimated at $1.490trn towards the end of 2009, including nearly $1trn for the monetary union members. The official reserves of the four nations stood at about $490bn, including assets held by the Saudi Arabian Monetary Agency (Sama).the Saudi American Bank Group (Samba) also expected the new Gulf currency to be pegged to the dollar.”It is most likely the dollar peg continues to be the preferred exchange rate regime for the bloc in the foreseeable future. Faith in the peg is understandable. There are a number of good reasons why it may be adopted, not least the familiarity that it enjoys. “In particular, interest rate transmission signals are weak in the Gulf, given the preponderance of actual and expected government spending on consumption and investment decisions. If changes to nominal interest rates have little impact on the spending patterns of firms and households, then much of the advantage associated with a floating exchange rate is lost.”But it noted that this could change over a longer time horizon, as regional financial and capital markets broaden and deepen, thereby enhancing the potential advantages of a more flexible exchange rate at a later stage. Flexible rate:”In such conditions, a flexible exchange rate would help encourage a more robust, diversified and competitive non-oil export sector, which in turn could provide the spur to sustainable employment growth.It recalled a decision by the GCC nations in 2003 to peg their individual currencies to the US dollar and to maintain the parity until the establishment of full Monetary Union in 2010. A decision on the exchange rate regime for the single GCC currency would be made then.Despite domestic and global changes ever since, a fixed peg to the dollar remains the most plausible prospective exchange rate regime.It cited several reasons for this, including the fact that the new central bank would inherit a well-functioning anchor and associated monetary framework.It said the peg remains reasonably straightforward to administer and does not require the institutions necessary for an independent monetary policy.”Second, market participants are already familiar and – for the most part – comfortable with the peg. GCC countries’ individual pegs are well-established and have provided a degree of stability and comfort during times of oil price weakness or regional political stress.A third factor is that the GCC’s dominant export, crude oil, is already priced in US dollars while the fourth reason is that the group’s flexible labour markets should be enough to support international competitiveness.a managed float has been proposed by some and its advocates argue that this would allow the countries to absorb large adverse real shocks more easily than a fixed exchange rate regime.”As such, sharp swings in oil prices could be offset by changes in the nominal exchange rate, thereby imparting some stability to the local currency value of export earnings. Similarly, the impact of higher import prices could also be blunted by exchange rate adjustments.”Beyond this, an autonomous monetary policy would allow appropriate monetary responses to domestic demand conditions. Thus if demand was in danger of overheating, nominal interest rates could be adjusted accordingly. The credibility of the float would be underpinned by the GCC’s vast stock of foreign assets.”an alternative version of the floating rate is a peg to the price of oil. The main argument in favour of this regime is that it delivers automatic accommodation to terms of trade shocks, while simultaneously retaining the credibility-enhancing advantages of a nominal anchor.”Its proponents argue that enabling the exchange rate to move in line with the price of the region’s dominant export would allow the real exchange rate to achieve equilibrium and would also decouple oil exporters’ monetary policies from those of oil importers.”Its detractors note that the price of oil is not truly exogenous, since the oil production policies of the GCC countries themselves influence the price. The volatility of oil prices would also present problems, forcing potentially sharp day-to-day swings in the exchange rate, making planning difficult.” Pressure to unpeg:In 2008, GCC countries resisted pressure to unpeg or appreciate their currencies against the US dollar after inflation rates soared to double digit levels in most members because of the weakening greenback and other factors. Their decision prompted a massive withdrawal of speculative funds deposited by international institutions in anticipation of a revaluation.”We should acknowledge the firm position adopted by the GCC monetary authorities when they refused to end the peg or appreciate their currencies against the US dollar.”They have firmly resisted speculation campaigns which have jolted the Gulf currency markets during the past 10 months… had they bowed to these pressures, Gulf states could have encouraged more
    speculations in the future and fueled expectation and speculation that local currencies could be depreciated after the US dollar starts to recover.”GCC states had succeeded in maintaining a stable exchange rate for their currencies over the past 23 years by keeping them pegged to the dollar.”This success has largely lessened exchange rate risks that could have discouraged local and foreign investors. The policy has also encouraged capital inflow and strengthened the credibility of GCC monetary authorities. As a result, speculations have largely receded and this will contribute to reasonable growth in the monetary aggregates in member states.
    The M2 or money supply for Iraq is 50 trillion dinar divided by the rate of 1170 is $42.74 billion. as the total value of Iraq’s money supply.The population of China is 1.3 billion people. If each Chinese citizen owned $32.88 worth of dinar or 38,465 dinar they would own the total money supply of Iraq and more than twice the amount of dinar in circulation outside banks.If the average Chinese citizen just owned $14.46 worth of dinar it would be all the dinar in circulation outside banks.It is customary for the average Chinese citizen to save half of their income or approximately $4500 a year times 1.3 billion people is $5,850 billion dollars and 136.8 times the total money supply of Iraq. The CBI has no record of the Chinese Govt buying any dinar either with dollars or Yuan either in the CBI statistics and information nor is that any mention of such at the IMF.. Whats more it would be illegal to sell it to them out of country.It might surprise most people but what the Chinese want is more dollars.This must end and the begining for a revalue for the 4 countries. Just think what happens when Iraq joins. It will interesting to see what they are pegged/valued at on the come out with just the 4 of them. From the looks of this news. The change of currency could be in place in a matter of months from now. I wounder if any speculators are jumping on now to buy each countries currency’s in hopes of a revalue of the GCC to higher.

  58. avatar Joseph says:

    Arrived to the land at Baghdad International Airport on Wednesday, 12/23/2009 three CRJ aircraft have been purchased by the Ministry of Finance in the presence of His Excellency the Minister of Transport, Amer Abdul-Jabbar Ismail, a representative of the Prime Minister Mr. Nouri Al Maliki and Minister of Finance Baqir Jabr Al-Zubaidi has been signed annual operating contract between the Ministry of Finance and the Ministry of Transport contract was signed by the Deputy Minister of Finance Mr. Zia Habib Khayoun and General Manager of Iraqi Airways pilot Kifah Hassan Jabbar, representative of the Minister of Transport after it was received one aircraft in 2008 bringing the total to four aircraft. The Minister of Transport for the purpose of opening to the world in terms of aviation and passenger service to Iraq that we always fleet of Iraqi Airways aircraft from modern and sophisticated, where we have a few days ago a plane chartered Boeing 737 / 900 Model 2009. Adding that the decades old aircraft had completed are not renewed, any contract where the Iraqi Airways plane today has 15 modern, developed and leased. And preached His Excellency the Minister of Transport, the traveler and the Iraqi people that there are many great achievements and will be witnessed by the Iraqi arena, including the achievements by which updated the Iraqi Airways fleet of aircraft. He pointed out that Iraqi Airways did not buy any plane since 1990 because of the call set up by Kuwait Airways in British courts and demanded financial compensation is very large and today there are negotiations between the parties for the purpose of settlement of these problems and obstacles. He noted that the achievements of the rental of aircraft and sophisticated will open to the world of aviation and the Iraqi citizens will feel that in 2010 there planes in service and managed by the staff and I call on the Iraqi employees of Iraqi Airways to exercise their extensive service to the passengers of Iraq. For his part, Minister of Finance Baqir Jabr Al-Zubaidi that the Ministry of Finance has signed contracts for the purchase ten aircraft, including aircraft type CRJ Canadian origin and the new generations have been received four so far and two more in the coming year and the rest during the year 2011 and also signed contracts for the purchase of 55 Boeing aircraft of various types will be leased to the Ministry of Transport / Iraqi Airways, according to an annual employment contract agreed upon between the parties and this is the achievement of the Ministry of Finance and the Public Treasury in addition to providing better services to citizens, customers and facilitate the task of traveling to neighboring countries and Arab and Islamic states and European countries on the one hand and the other hand, mobility between the provinces of the country in which domestic airports. As Undersecretary of Finance Minister Zia Khyoun that this agreement is a type of investment where the aircraft was leased to a lease year to Iraqi Airways, and this is done to increase resources for the Ministry of Finance and the Ministry of Transport / Airlines of Iraq, emphasizing the existence of other contracts will be which the receipt of new aircraft and advanced, respectively. WOW I HOPE THIS SPEED UP THE RV. we all aspire in the near future to the return of Iraqi dinar to what it was in the seventies and the beginning eighties against the dollar and other foreign currencies .

  59. avatar Joseph says:

    Confirmed coalition Shell and Petronas of direct intention in developing the field Majnoon case of signing the contract in final form, as announced is not affected companies invested the political situation and security in the country.The Deputy Minister for oil extraction and export Abdul Karim Laibi through effective initialed a coalition with the “Shell – Petronas,” which took place at the Ministry yesterday: that the volume of primary production in the Majnoon field of 175 thousand barrels and up to the peak of production million and 800 thousand barrels per day . He explained that the Majnoon field in the province of Basra, which was run by the Southern Oil Company of the giant oil fields in the world and contains 11 ambush oil, declaring that the current and next two weeks will witness the signing of contracts initiated with the development of coalitions, which won seven oil fields out of ten fields offered within the The second licensing round. The contract was signed on the Iraqi side and the Deputy Director General of the Department contracts and licenses Abdul Mahdi al-Amidi, the Director of the Legal Section in the department, Dr. Sabah al-Saadi, was signed in a winning coalition, representative of the Dutch-British Shell Mounir Bouaziz and the representative of Malaysia’s Petronas is the color. The representative of Shell Munir Bouaziz happiness for signing the contract with the ministry, adding that his company is the first international companies in the oil sector, which entered Iraq for about a year and a half in Basra.And on direct work in the field and the impact of security and political situation of the company, said Bouaziz the “morning” that Shell will start its work immediately after signing the final contract, without saying how much money will be invested in the field, saying only that it billions of dollars. Promised the recent tension on the Fakkah field in the Maysan province of Iraq and Iran, it was an internal jurisdiction of the Iraqi government, stressing that the size of the turnout international companies in the second round of licensing and activities of the initial signatures of the contracts is not affected by evidence of corporate political situation and security in the country. For his part, denied the proxy Laibi what he described as “hype” that some of the throughput of the media that Iranian forces occupied the field of loose change, adding that specific problem the well number four from the field. He pointed out that the disagreement between the parties to this well-based for several years, noting that national professional staff began digging the well mentioned in the seventies the last century, and began production in 1979 and until 1980 before stopping by the Iran-Iraq war. He Laibi Maysan Oil Company has operations in 2007 lifting the debris from the well site in order to re-run, but she was harassment from the Iranian side, who claimed that the zone is within its territory, pointing out that the bilateral commission for the demarcation of the border look into this matter to be resolved through diplomatic channels. the “morning” that the contract which was signed initialed yesterday will not face obstacles in the way of ratification by the Board of Minister. He noted that the licensing contracts for the first round did not face obstacles because there are technical committees and legal contracts are reviewed prior to submission to the Council of Ministers, adding that after the council approved the contract the ministry will sign the final with the investing companies.And on statements made by some MPs and officials of the Organization of Petroleum Exporting Countries and other oil states will not allow Iraq to increase oil exports to 12 million barrels per day, after the conclusion of the second licensing round, “this issue is premature.He hinted that many countries would not welcome an increase of Iraq’s exports during the next six years, adding that those countries should take into account the war and the conditions through the country and its citizens for many years. He pointed out that any economic developments taking place in Iraq therefore will be reflected on the countries of the region, explaining It’s the right of Iraq to increase its exports to the country’s reconstruction and rehabilitation of infrastructure. while Jihad said he and Oil Minister Hussein al-Shahristani said to Angola to participate in the meetings of the Ministers of Petroleum Exporting Countries OPEC, which will last for two days to review the conditions of the global market and OECD member countries.He expressed his belief that he will keep the production ceiling by the Organization after the stability of world oil prices, especially as they began to increase gradually, indicating that preclude the need to increase or reduce the quantities that OPEC countries have promised to pump to world markets.Separately, the pipeline pumping oil from Kirkuk to the Turkish port of Ceyhan was the fourth time in the last three months of the acts of sabotage, noting that the line came under a bomb attack near the town of Sharqat north of Salahuddin Province. He explained that the duration of the process reform dating back to the size of the operation was to sabotage the pipeline. They should have done this years ago. Now they have taken their economy and banking system to the edge. Lets hope the money starts to flow quickly.If not there will be some banks going down

  60. avatar Joseph says:

    the Iraqi government asked the U.S. side to interfere in the management of the security file to install the security and stability in the country, to develop security plans to prevent recurrence of the violence that hit the capital recently,
    especially since the terms of the agreement it has struck the Maliki government with the U.S. administration, it gives the right to address the American side, to show some assistance in security issues. The source, who asked not to be named, “told the Iraqi press that” the American side condition of assuming the administration file of the Iraqi economy for his involvement security file. He added that Iraqi government has not determined until the moment of its latest U.S. request,
    and is still studying the matter with its partners in the political process. the American side in the field of superior intelligence by its functional and logistics and information base on which the U.S. military sought to establish them ever since he entered Iraqi territory in March 2003, through the recruitment of some informants to secure the information we reveal hideouts of terrorists and their plans criminal».Does this mean what I think it means. U.S. control of the Iraq economy. If they do assume control of the economy what does this mean for the dinar? Does it change anything? Can anyone elaborate on this? It is also very interesting what is going on over in Iran. If
    there is to be an RV in Iraq it would not happen until Iran falls. Can you imagine the economic boost that a RV would give the current Iranian government, they might be holding billions of dinars with their connections in Iraq. The U.S. assisted with thier security. The Military helped the GOI to equip, train and organize their security forces so they can be effective and successful.This was by invitation of the GOI.The GOI has ALSO requested U.S. assistance in developing thier economy.Assistance is NOT control. It’s simply experts brainstorming and advising the GOI what they can do to improve thier economy.They first need to start with laws, privatize state owned entities, reduce their social programs, and finally, eliminate corruption and the “good ole boy” network.They want capitalism’s success, but they don’t know how to get there.

  61. avatar joy kalun says:

    when will we be able to get our dinars traded we really need the money and have been waiting what seems like forever…and everyone that i talk to claims that we wont ever get the money

  62. avatar Trent says:

    Joy, from everything I have read and heard this revaluation will happen. It may be a while. I have been putting money in an IRA in mutual funds, I wonder if that is ever going to be worth what I was told it would be. Don’t invest more that you can afford. My wife and I would also like this reval to happen. The Central Bank of Iraq is selling a lot of dinar, why are people buying it? Because it’s a scam, I doubt that. Iraq has to get those oil leases sold to all those foreign oil companies and get that big money coming in….thats why they’re buying dinar….because oil is money and there is alot of it.

  63. avatar Joseph says:

    GCC monetary authority soon, on Monday, January 04, 2010
    Four Gulf nations will launch their monetary authority to set up a joint central bank at the end of February as part of an historic pact to create the Middle East’s first currency union.Saudi Arabia, Kuwait, Qatar and Bahrain, members of the six-nation Gulf Co-operation Council (GCC), will officially launch their monetary union on January 23 following its final summit approval last month.”The monetary union will be enforced on January 23, a month after the fourth ratification document was deposited by the members with the GCC Secretariat,”.”As for the Gulf Monetary Authority (GMA), which will pave the way for the creation of the GCC central bank, it will start operating at the end of February,”.The Newspaper reports that the central banks of the four countries halted lending operations at the beginning of 2010.”Those reports carried wrong information that the central banks would stop lending at the start of 2010… this process requires several procedures, which will be the responsibility of the GMA,”.”Any way, most central banks in those countries normally do not lend to the government, which means these reports do not carry any new information,”. Is this a good news or what……

  64. avatar Joseph says:

    to borrow from the IMF as “a serious matter, the interests of Iraq over the long term, indicating the threat to the future of Iraq and the interests of the people.The proposal is based splendor in the general budget for the year 2010 to borrow from the International Monetary Fund.the World Bank when giving loans to countries within the framework of the restructuring of the economy of these countries and, therefore, is the long-term intervention in the affairs of these countries even amount to interference in its sovereignty. Rubaie confirmed his refusal not to pass the federal budget for 2010 until the next parliamentary session, noting they relate to the interests of the people.He stressed the need to separate the budget for the elections and political history.

  65. avatar Joseph says:

    Now Iraq is ranked twelfth in the list of the richest Arab..Iraq is occupied twelfth place located in the bottom of the sequence of the richest Arab countries, along with Algeria, Tunisia, Jordan, Morocco, Egypt, Syria and Sudan. Landing in Qatar topped the list and after the United Arab Emirates, Kuwait and Bahrain in Almertbpaiip Dissolved and Oman in fifth place followed by Saudi Arabia in the sixth, while Yemen was ranked by the recent order of the poorest countries, followed by Mauritania poorest of Arab nations.Qatar was ranked first at the top of the order of the richest Arab countries, as annual per capita income of the 70,651 dollars, while not exceeding a population of 1.448 million people, followed by the UAE in the second and per capita income of 52,574 people while the population of 4.76 million people, and Kuwait ranked third, and per capita income of 43,046 dollars and a population of 3.43 million people, to the Bahrain came in the fourth income of 21,675 dollars per capita and a population of 1.123 million people, either the average per capita income in Oman to $ 20,908 for its population of 2.86 million people, and Saudi Arabia in sixth place, and per capita income of 18,903 dollars and the number of population of 24.8 million people, and replaced Libya was ranked seventh with 10,519 thousand dollars for an individual and a population of 7.2 million, Lebanon ranked eighth and income per capita in 7479 dollars, followed by Algeria, Tunisia, Jordan, Iraq, Morocco, Egypt, Syria and Sudan. They can pass all the laws you want and it will be a very long time before Iraq is as per capita rich as Qatar. Qatar has per capita income of $70,651. With over 28 million people that would require a GDP of ~ 2 trillion dollars for Iraq. 2 trillion divided by 365 days would be ~ $5.4 billion a day. Divided by $80 a barrel and they would need to produce 67,500,000 barrels a day to be as rich as Qatar and have almost 90% of the worlds total production. 33.75 times as much as they are now producing. Maybe we should give them another 6 months to accomplish 90% of the worlds total oil production. We hope this will speed up the RV that make iraq is ranked # 1 richest sooner early 2010, don’t we…

  66. avatar Joseph says:

    Just To the point, the Iraqi Dinar is currently at an extremely low valuation compared all other world currencies, which would make a very lucrative investment for anyone. The investment community is currently watching everything for signs of upward movement in the value of the Iraqi Dinar. Many sources including the Iraqi Financial ministry speculate an increase in Iraqi Dinar value in early 2010.
    “A twenty-seven dollar investment today could be worth seventy-five thousand dollars if Iraqi Dinars are revalued to historical values.”
    2009 IRAQI DINAR REVALUATION INDICATORS & SIGNS:
    • Donald Trump investing Millions in Iraqi Dinars
    • Iraq oil field contracts being let.
    • Iraq Financial Ministry
    • Large world corporate investments in Iraq infrastructure
    • Obama election cause ease of middle east tensions against US
    • US Secretary of State – Hillary Clinton’s recent remarks about Iraq becoming one of the richest countries in the Middle East.
    Many believe that the Dinar will return to its historic value of $3.20 as opposed to it value today of less then one cent. Will these indicators and signs mean to speed up the RV early 2010.…

  67. avatar Joseph says:

    Iraq has received a loan of $ 7 trillion dinars to cover the deficit : Alaa al-Sadoun said Deputy Chairperson of the Finance Committee in the House of Representatives that the World Bank and IMF special drawing rights and made a loan to Iraq Bmlbg 7 trillion Iraqi dinars to bridge the fiscal deficit. Said Saadoun, a member of the Accordance Front, said: “The fiscal budget deficit of 21 trillion Iraqi dinars. Sntdark and recycled it through my existing budget of the past year. And the budget in 2010 was calculated on the basis that the price of a barrel of oil to $ 62,5, and the price The current oil is $ 73 a barrel. and this difference would reduce the fiscal deficit.” Saadoun predicted: “The vote is on the budget for the current year next week.” In this case, Something gotta give soon. And, The IMF could of just told then to RV! and the budget would not be affected.

  68. avatar pretty quiet out there says:

    just woundered if there is any news since jan 12th

  69. avatar Ryan says:

    Keep it comin