Dinar Daddy: Just Following the Money…



It’s amazing how such an amazing day of news…. financial news at that, has generated so much chatter and rumors being posted from so many. Is it a coincidence, or are those who are connected to “sources” finally hearing the real deal is coming down the pipe? I certainly don’t know for sure, but I have discovered a few fantastic articles that give me tremendous hope about my investment in Iraq. The best part about these articles is that they are ALL discussing BIG BUCKS being dropped in Iraq… wish I could join the fray!

Check these investment articles out…

Article: Baghdad Plans 75,000 Apartments to Modernize Slum

Excerpts: “The city of Baghdad asked foreign companies on Thursday to sign up for a project to design and build 75,000 apartments, the first phase of a $10 billion plan to rebuild the Iraqi capital’s sprawling Sadr City slum. The entire 56 sq km (22 sq mile) project, to be built over 10 years, includes 150,000 apartments, stores, service buildings, a medical complex, a university and entertainment centers. “It will be a part of Baghdad city but with new, modern construction, not low-cost construction,” Baghdad mayor Saber al-Issawi said. “We will build it in a distinctive style.” Iraq is trying to line up at least $30 billion in housing and commercial development projects over the next decade as Baghdad tries to rebuild after years of war.”

Link: http://news.alibaba.com/article/detail/markets/100236331-1-baghdad-plans-75%252C000-apartments-modernise.html

Tidbit: Two things must be in place to support such an undertaking: SECURITY to protect such a massive investment from destruction and loss, and a legitimate CURRENCY to pay back any loan or investment. I know no company enters an investment without an exit strategy and legitimate source of income. Either requires being paid in a currency they can use. Why approach foreign companies if you can’t give them something in return that they can use to justify their risk and investment?

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Article: Noor Capital to Build $100m Iraq Hotel (Reuters)

Excerpts: “Abu Dhabi investment company Noor Capital will build a $100 million five-star hotel apartment project in Karbala, Iraq, with UK hospitality developer Range Hospitality..”… “The transaction is in line with Noor Capital’s governing philosophy to promote hospitality projects within the Middle East and in particular within the religious tourism sector…”

Link: http://www.khaleejtimes.com/biz/inside.asp?xfile=/data/business/2010/January/business_January463.xml§ion=business&col

Tidbit: The question that comes to my mind reading this is, why would a company that is obviously extremely successful in promoting, “hospitality projects within the Middle East”, risk $100 million in a country with nothing but Iraqi Dinars paying for hotel stays? Such a company has a plan and is confident in “The Plan”… IMO.

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Article: Eni-led Group Inks Oil Deal in Iraq

Excerpts: “Italian energy giant Eni and its consortium partners announced Friday they signed an agreement to redevelop the Zubair oil field in southern Iraq.”… “The consortium said it plans to increase production at the southern oil field by more than 1 million barrels to 1.2 million barrels of oil per day within the next six years.” A consortium led by Italian oil company ENI early Friday finalized a 20-year contract to develop the Zubair oilfield in southern Iraq, the company said in a statement. The consortium, which will invest 20 billion dollars (14 billion euros), groups ENI, with a stake of 32.81 percent, with Occidental Petroleum Corp. (23.44 percent), Korea Gas Corp. (18.75 percent), and Iraqi state oil company Missan (25 percent).”

Link: http://news.yahoo.com/s/afp/20100122/wl_mideast_afp/italyoileniiraq_20100122130148

http://www.upi.com/Science_News/Resource-Wars/2010/01/22/Eni-led-group-inks-oil-deal-in-Iraq/UPI-44461264178353/

Tidbit: They, like me, feel Iraq’s a good investment long-term. I feel each oil deal “inked” adds another layer of security for the currency of Iraq. Furthermore, each deal secures a value to said currency. Why? A country’s currency is ultimately tied to the potential and current GDP of its host. Iraq’s potential, Iraq’s reserves, and Iraq’s ultimate health as a nation is what will provide the confidence needed to pull the trigger on the RV. Are they ready? We’re watching them prepare…

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Article: Oil Sign With a Coalition of Three International Companies, The Final Contract to Develop the Field of West of Basra, Zubair

Excerpts: “Zubair holds an estimated 4 billion barrels of oil and ranks among the largest discovered fields in the world.”… “A source in the ministry of the National Iraqi News Agency / NINA /: “The representatives of the coalition companies from Italy and the United States and South Korea today signed the final contract to develop the field.”

Link: http://translate.googleusercontent.com/translate_c?hl=en&u=http://www.alforattv.net/index.php%3Fshow%3Dnews%26action%3Darticle%26id%3D43173&prev=/language_tools&rurl=translate.google.com&usg=ALkJrhjT6MZj39i-MzdnlPBScDXA90fkgA

Tidbit: The “final contract” signed of those awarded? The Arablish is getting to me. LOL! Either way, they continue to press forward. Great news!

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Article: Iraq Is Suddenly an Opportunity

Excerpts: “Compared to what we’ve seen before—and what might have happened—the overall story is remarkably positive. For the markets, Iraq is suddenly an opportunity. Institutions are becoming legitimate (even with the unresolved Kurdish issue), the army is starting to function, and most important, political leaders from all communities are beginning to recognize the value of Iraq’s tremendous natural resource base from which all can benefit if they make compromises to maintain the country’s stability. For all the basic governance problems, there’s very little chance of Iraq becoming a failed state at this point. As recently as a year ago, that constituted a meaningful risk.”

Link: Written by Shawn Baldwin for Bloomberg

Tidbit: How the west was won… over! :)

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Whether it be stories talking about money pouring into Iraq for investment (remember the first rule of investing, you don’t make your money based on how high you sell a stock, but on where you buy it, thus the reason for world-renowned companies’ willingness to risk huge money investing in Iraq), or money being harvested through the efforts of the world’s largest oil companies for Iraq, it’s clear every major country on this planet has a vested and concerned interest in their success. Wow, what an amazing time in this world’s history! Surely, we are witnessing fulfillment of prophecy. Gratefully, I watch…

As always… Go Dinar!

Dinar Daddy for DinarSpeculation

Related posts:

  1. 4 more companies on the Iraqi Stock Exchange
  2. Dinar Daddy: A “News-Frenzied” Tidbit
  3. Dinar Daddy: Offering a Tidbit or Two

15 Responses to “Dinar Daddy: Just Following the Money…”

  1. avatar Justin says:

    Amazing stuff, one thing i found intresting is we all discuess what to do with our bills.

    but what iv heard is Dinar is sold on Forex, so wouldnt it make sense to open a Forex account and buy Dinar there so if it did RV then your money is digital and your abel at that point to sell your Dinar for other currency????? or am i wrong? any one else have a idea on this?

  2. avatar John says:

    so, cash, or a bank account? thx!

  3. avatar WDMCB says:

    Speaking on speculation: Yesterday, I had a meeting with a VP-Investments at Chase/JPMorgan who said that Iraq is in such debt, thanks to Hussein, that they don’t have the money to support an exchange…and before they let the US capitalize on their Dinar, in all probability, they will come out with a NEW currency, provide time to exchange, reduce it’s value and make it hard for us to turn in our Dinar’s. He said that if it does become 1 dinar = $1.00 US, DON’T expect a 1 to 1 exchange. That I will be must fortune to get back what I paid for the Dinar. He said, Iraq just doesn’t have the billions that will be needed to honor an RV. And that the elections will have no effect on the amount set or the policy that will be imposed for an exchange.
    This is not encouraging, to say the least, but it is interesting to note the opinion of a US Banker. He said that the Iraq Dinar will take the same route as the Mexican Peso. Notwithstanding, I’m still optimistic that we will come out of all of this mess with some gain… maybe not as much as we had hoped for, but enough to show for our patience and endurance.

  4. avatar John says:

    Even for me is difficult to see Dinar at 3,50 dollars in little time. I think, that is possible if iraq pay the debt with all others state. I think that it is possible in max 10 years. We must remember that Iraq has the most big oil production, and the second for natural gas.Pay the debts, is possible and quicky, but not in a little day. And when the debts is paid, the dinar can grown, and grown! I don’t think that Iraq will change currency. The dinar is too new to change.

  5. avatar Patrick says:

    Iraq Seals Oil Deal With Exxon,
    By HASSAN HAFIDH

    A consortium made up of Exxon Mobil Corp. and Royal Dutch Shell PLC finalized a deal in Baghdad Monday to develop the West Qurna phase 1 oil field in southern Iraq, Iraqi oil officials said.

    It represents the first time a U.S.-led group has been allowed into Iraq’s oil patch since the U.S.-led invasion in 2003.

    Exxon and Shell won the right to develop the field following the country’s first postwar licensing auction held last year. The license to develop the field wasn’t initially awarded in the auction in June, but a deal was reached following subsequent negotiations.

    Under the terms of the 20-year-long deal, Exxon and Shell will be paid $1.90 for each extra barrel of oil they extract on top of current production at the field.

    The Exxon team said it would boost production at the field to 2.325 million barrels a day, up from just 279,000 barrels a day currently. The field has estimated reserves of 8.7 billion barrels.

    Exxon has the bigger stake in the venture with 80%, while Shell holds the remaining 20%.

    Unlike other more typical big development deals, this contract doesn’t allow the companies to book new reserves or production, but it does offer access to Iraqi oil executives and experience working in Iraq’s fields, both crucial to future bids.

    Exxon and Shell first proposed a payment of $4 a barrel during the auction. That was rejected, but in November they accepted the fee see by the Iraqi government. Last week, the Exxon team also accepted amendments to the text of the original contract which was signed in November.

    Iraqi officials didn’t want to speak about these amendments, but a company official said one amendment gives the Iraqi government the right to change production levels in order to comply with quotas that the Organization of Petroleum Exporting Countries might impose on Iraq.

    The companies are also required under the contract to insure all employees, works and equipment, the official said, adding that Iraq will impose taxes on imported materials and equipment used to develop the field.

    These new amendments apply to other Iraqi oil deals that have been either finalized or initialed over the last few days.

  6. avatar Warren says:

    In response to the so-called employee of Chase/JP Morgan…It is no wonder they needed a taxpayer bailout..Most of Iraqs’ debt has been forgiven from the ‘Hussein’ era…Debt occurred to date is from the new government..And it’s less than 5% of GDP…Can you say the same for the US? Hell no!! Plus they are showing signs of Deflation and not Inflation..Inflation is less than 1%…When they go to the Middle Eastern Currency it will have to be valued to the rate of the surrounding countries that participate in that currency…Remember the Euro??..IQD is coming back.

  7. avatar John says:

    So, we even must believe in RV in short time (7th February)? Or not?

  8. avatar Matthew says:

    Nice post Patrick. I love facts

  9. avatar Joe says:

    John you can beleive whatever you want I will beleive when I see.

  10. avatar Ms. Green says:

    Adam or Dinar Daddy,

    When the time comes should us investors cash in all the dinars at once or a little at a time?

    Last, can we go to any bank that exchanges currency or are there particular banks?

  11. avatar gary says:

    anyone have any insite on the exchanging IQD for USD after the rv takes place? I havent really heard how the exchange will take place…. at banks or through a broker????

  12. avatar tomneedsrv says:

    Adam,

    After the posting on the 26th,does this mean that the March 17th loan payment to the IMF is due?

  13. avatar Joe says:

    I think you should cash in anough to get you through a year or 2 and let it gain value it won’t peak at RV.

  14. avatar Gary says:

    Joe
    Sounds like a good Idea but if you only hold large dinar like 10,000 and 25,000 ….. I have been told their may be a window that you have to cash these in. They want to get all the large bills out of circulation. Im not sure but it is something to think about.

  15. avatar Rob says:

    Hey guys be patient with this you will be happy the gov stands to lose a lot of tax money you and i will pay on this revalue in the case iraq tries to do a low-ball rv and force you to turn in your large notes so you will be stuck !! Imo that wont happen .From my personal research and not chats this will happen soon everything for the most part has been accomplished,but something we need to consider to avoid depression or an emotional roller coaster lets be prepared to still be waiting a year from now . Personally I dont see it but amm prepared remember theres a lot of details to change value of currency than just someone waking up one morning saying lets RV today so I will be re-elected or other various reasons !! I hope this helps . Even if it takes some time its the best investment/low risk opp.imo