Comments on: Sorry for the delay in posts…

By: Joseph

Joseph — Thu, 21 Jan 2010 02:52:32 +0000

OPEC seeks using euro in oil deals. Tuesday, January 19th 2010 7:39 AM. Tehran, Jan. 19 (AKnews) – Iran’s representative to OPEC says the group weighs replacing the dollar by the euro in crude oil pricing, adding that no decision has been made. “Members of OPEC are free (to use any currency) in their oil transactions,” said Mohammad Ali Khatibi on Sunday. He added that Iran receives 90 percent of its oil revenues in currencies other than the US dollar. Iran’s President Mahmoud Ahmadinejad ordered in September 2009 the replacement of the US dollar by the euro in the country’s foreign exchange accounts. Earlier, the Islamic Republic of Iran had announced that the euro would replace the greenback in the country’s oil transactions. Also, Iran’s Trade Promotion Organization announced in 2009 that it would completely exclude the US dollar from the country’s foreign revenues and reserves. Iran has recently asked Japan to replace the US dollar with the yen in oil deals it has with the Islamic Republic. The constantly declining value of the dollar and persisting economic crisis in the US has encouraged many countries to drop the currency in favor of a more stable one. Saudi Arabia, South Korea, China, Venezuela, Sudan and Russia have taken steps to replace the US dollar in their foreign exchange reserves. Earlier in November, the head of Iran’s Bank Melli (BMI) said Iran’s Central Bank and BMI have entered into negotiations with some countries and international banks regarding the use of the Iranian rial, the official currency of Iran, in international transactions and operations. Well in this case, will there be a possibility that Iraq will also use a EURO to replace the US Dollar, like what Iran did?Anyone here has better opinion…..Also, is there a possibility too that IQD will be RV using EURO to replace US Dollar one day?Anyone can help to answer it……

By: Joseph

Joseph — Tue, 12 Jan 2010 07:52:35 +0000

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.

By: Joseph

Joseph — Tue, 05 Jan 2010 04:23:14 +0000

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.…

By: Joseph

Joseph — Tue, 05 Jan 2010 04:22:54 +0000

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…

By: Joseph

Joseph — Tue, 05 Jan 2010 04:22:28 +0000

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.

By: Joseph

Joseph — Tue, 05 Jan 2010 04:22:03 +0000

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……

By: Joseph

Joseph — Tue, 29 Dec 2009 02:30:19 +0000

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.

By: Joseph

Joseph — Tue, 29 Dec 2009 02:29:49 +0000

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

By: Joseph

Joseph — Tue, 29 Dec 2009 02:29:13 +0000

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 .

By: Joseph

Joseph — Mon, 28 Dec 2009 04:12:07 +0000

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.