News

Posted: December 1, 2010 by Justhopin in Iraqi Dinar/Politics
Tags: CBI, Central bank, Currency, Dinar, Economy of Iraq, Foreign exchange reserves,International Monetary Fund, Iraq, Iraqi dinar, middle east, redenominate, redenomination,Reinstate, restructure, Revaluation, revalue, Saleh, United States

Over the past 48 hours many articles have been published discussing items specific to the the dinar, UN, Chapter VII, IMF, and the CBI. Out of the oridinary compared to most days….

The past two days four articles have been published discussing the future of the Iraqi Dinar. Some of which has drawn some confusion just in the headline alone. The following articles will be discussed:
1. CBI Advisor: Reserves is not sufficient to raise the value of the Iraqi dinar (Nov 30)
2. CBI Adviser: Reserve is sufficient to raise the value of the Iraqi dinar (Dec 1)
3. CBI Consultant: We seek to restructure the currency (Dec 1)
4. Reduce the circulation of foreign currency increases the strength of the dinar (Dec 1)

Articles 1 and 2 appear very similar except for one primary difference…the use of the word “not”.

On November 30th INA published Article 1 telling the reader the CBI had insufficient foreign currency reserves to raise the value of the Iraqi Dinar.

Investors familiar with Iraq and the development of its currency immediately clued in on this article as being out of line.

Two reasons, I am sure there are many more. Reason 1…The week prior, news articles were published discussing how Iraq’s foreign currency reserves have grown from $40 Billion upward to $50 Billion, in country. More importantly, Reason 2….it is well published and documented the vast amount of foreign currency reserves, assets, and gold Iraq has in its possession deposited abroad, albeit seized due to Chapter VII sanctions. The actual amount of Iraq’s frozen assets are debatable however it is estimated near $1 trillion in the US alone. Therefore once Chapter VII is released Iraq will be a very wealthy nation.

The following day (Dec 1) the same news agency, INA, published Article 2 with a similar headline however notably without the use of the word “Not”. Which significantly changes the dynamic of the story and is more in line with the truth.

Furthermore, INA, added additional text to the Nov 30th (Article 1) quoting the CBI advisor as stating “….the improvement of the Iraqi dinar is governed by many monetary policy and fiscal policy, noting that the Iraqi dinar is witnessing strong touches of improved monetary value to him after 2003 through the growth and improve the market economy and opening up relations all the countries in the world” While the added text is not a retraction on the news agency’s part it does reflect some editorial manipulation which obviously created a need for a brand new story to be released the very next day.

Articles 3 and 4 again are very similar using the word “restructure”. This is new terminology as of late however the articles are suggesting to the reader the Iraqi economy is on the verge of a “boom” period and its currency will have to reflect the economics of the country in value and worth. The primary difference between Articles 3 and 4 is the added discussion of trading the Iraqi currency globally.

It is my opinion and I would imagine the opinions of many of you the term “restructure” is another play on the words we have commonly grown to know as redominate, reinstate, revaluate, etc. And in order for the Iraqi Dinar to trade globally, as Mr. Saleh desires, Iraqs dinar must be recognized internationally.

So, in 48 hours, four interesting articles have been published telling the reader one significant thing. The CBI is preparing for the dinar to do something….hopefully it is a pocket full of blessings…