News
Iraqi Dinar Buzz Updates
[Nighthk11] Good day DV- Hope all are well this day. I think we have been greatly mislead in the press releases and Iraq is a lot further along in activating the RV then many believe. I would focus now on CBI and forget about the so called spat between Allawi-Sadr-Hakim and Maliki because I believe it is Misdirection. I spoke with Chloe and Cool last night about a posting that indicated they were basically ready to activate- They stated that they now have banks online with the personnel fully trained for “Global Bankingâ€- that debt would be handled by Internal-External- Their Treasury etc- It indicated to me that they are ready. I believe that they spoke before they realized that certain procedures that are requirements they are unable to “Get Around†for activation to proceed must be done- This involves both the IMF-WTO- and WB- all require a “Trade able Currency†to be active participants. Shabibi has 6 banks online to do international banking- the rest are tied into the CBI thru electronic means. This number may not seem like a lot but it makes good sense because they will be able to monitor and control electronic actions thru CBI until they feel they can tie in the rest.
There is no getting around the IMF requirements nor WTO- Now they have asked for US help in the “Next Few Days†to get them into the WTO which is absolutely vital for international trade- this cannot be done w/out a trade able currency and must come first before they can be “Acceptedâ€. This acceptance and inclusion will be extremely instrumental in “Activating the private sectorâ€- The request was made a week ago for this US assistance. They have asked for a “Fast Trackâ€- The US has agreed to help get this for them- so everything is lining up for RV- I also read where a bank in turkey is supposed to accept dinar this coming Monday for exchange of Euro- someone did the math and it amounts to about $3.70 US- This figure is in line with what has been said about the coming value of the dinar- I am told that Kuwait have raised their dinar to something around $3.90.
Maliki has issues statements concerning the development of the private sector and has placed strong emphasis on its development- there are more and more statements about this coming out- His visit to Wassit province and meeting with the council there he alluded to this in plain-clear language. I think in the end of this after everything is said and done- that Iraq will have been proven to have done everything they said they were going to do. The RV is now in Shabibi’s hands and his call to activate. Forgetting the politics of the day with Iraq- I believe we will see what we want in this coming week- The demonstrations will not go away- nor will the requirements for them to re-join the international community- so having said that- time is definitely not on their side. From all appearances it really looks like they are working overtime to bring the dinar out finally.
The Trade Bank Of Iraq is the proponent for international dinar exchange and banking with Iraq and has been on line for some time- along with Rasheed and Rafidan banks- more are planned.
As I said before- this spat for power between Allawi- Maliki is an internal matter that will not affect the RV- What the people are asking for is services which cannot be provided without money- to activate the private sector- they must get outside investment- no way around that- people must be able to take a profit outside the country or they will not spend their monies there- so the currency has to be trade able – They fully understand that and have no issue with it.
All this stuff that has been in the news IMO is a diversion- The meeting in Wassit province was telling in so much as Maliki came right out and stated that the private sector must have priority- This means RV. Now the time frame- Given what we do know about the demos and what the people are actually demanding- this cannot be done without money- the sooner the CBI acts- the smaller the demos will be- but they will not go away. I think they are finally at the point where all requirements for RV are in place- and this is the reason why we are now seeing reports and comments of attention to the private sector
[Nighthk11] What they are requesting SFC- Cannot be done without money
[SFCDiaz] i understand but i never saw or heard the request for the Rv I just was wonder why we never saw it in the media out there
[masterkim] Nighthk11 over the last month or two we are seeing the pattern of the RV and the political pattern somewhat separate themselves
[Nighthk11] Electricity- By Seimens and GE – transformers and generators (3 Billion dollars) must be paid for- Desalinization plants to take seawater and make it drinkable- Housing- jobs- development of the agricultural sector- small businesses- all this requires opening the country up for trade and investment- must have trade able currency or no company country will spend money there.
Yes MK because they used the political aspects to detract from the requirements they have to input to actually RV
[masterkim] And as the govt has been more and more formed the RV is less and less dependent on the politics of the day.
[Nighthk11] That is correct MK. It is misdirection- How can we see a statement one day that says Allawi has withdrawn from being head of the council- then one the next day that says he supports the gov’t 100%-
[pasta] in other words look at my left hand while my right hand is doing something else
[masterkim] And as you have said in the recent past, it now more important to follow the money and banking trail to the RV itself
[Nighthk11] Yes Pasta- Now we are seeing statements that indicate how close they are from their own mouths about RV-ing
[lifeisgood2] So night do you think it will be an RV and not RI or RD???
[lifeisgood2] It seems like we have seen chats with RD lately
[Nighthk11] Since they have basically been given all that they have begged for from the world- I think they felt they would be allowed to by-pass these requirements from the IMF- but not so- no exceptions will be made for them in this area because that would have to be done for all national.
Life Is Good- what is an RD?
[dmitch] re denomination
[Nighthk11] Re denomination is replacing larger denominations with the lower currency
[Nighthk11] It is Revalue
[lifeisgood2] Re denominate
[dmitch] thank you Nighthk11 for the clarification
[lifeisgood2] okay so same thing basically
[Nighthk11] RI is restoring the currency to what it was before- This cannot be done as the #3.22 that was in place under Saddam was only internal and for his inner circle- it was never tested internationally- That is why we are seeing $3.10-$3.20
[Nighthk11] and every figure that has been stated that is NOT $3.22
[Mackmomma] and if it were to ri, isn’t the tax situation much different?
[Nighthk11] By Allawi and Maliki stating “Golden Dinar†they are looking at $3.00 +
[Nighthk11] Yes- If they were to get away with an RI- There would be much less taxes upon turn in because all they would be doing is placing the funds back on the international market as they were before the wars. [Chazmaz comment: this is correct only if you bought saddam dinars at $3.22 and then exchanged them for the new dinars. In this case, you gain would be $0. Otherwise, your gain is the difference between what your proceeds and your cost, whether they call it an RI, RV, RD or a banana split.]
[Mackmomma] I am sure that the powers that be in our country wouldn’t have that!
[Nighthk11] They will not have that because they must thru their greed and thievery get some taxes from us
[dmitch] I agree – M-Momma
[Nighthk11] Given events of the past few days in what the GOI is saying parliament is doing- CBI making statements- these are clear indications to me that they are ready to finally activate this long sought RV. The time line being espoused is by March 15th- but I think given their track record- it will go to the wire and we may see it just around the 13-14th of the month- whatever happens- I fully believe that March will not come to an end without this happening. There are just too many things in place and being planned for this not to get done this month-They have not and will not come out and said “We are going to RV on this date and make our money this amount†but from carefully reading their statements it should be very clear where they are now at and what they are planning to do and the time frame
[harleyrider] The demonstrations in Iraq are showing the people of Iraq how a democracy really works. Freedom to protest to get results from government. It’s the democratic way.
[Nighthk11] Now the so called 100 days is NOT 100 days- the main factor in this is the protection of DFI funds which will expire in June. There is no way as a head of gov’t one can take an established budget to run the country and just give away 17-20% to the people without replacing that money- where is it coming from (Kuwait)- from the reval of Iraq’s dinar thru cash payments and business ventures which Kuwait will have first choice. This was a key factor in settling the issue that is a UN UNSC-US requirement to lift the final vestiges of Chap 7 sanctions. So everything has lined up for this to happen- another telling event concerning timing is the fast track requested for inclusion to the WTO for international trade in “Daysâ€- before this happens currency must be trade able- so everything is in place
[dmitch] Excuse me Nighthk11 – do we know what day in June that DFI funding protection will expire??
[Nighthk11] DMitch I believe it will expire on 30 june 2011- UN/UNSC/US Prez stated it will NOT BE EXTENDEDâ€
[Nighthk11] I believe this is where we are- I have read that the “Province chiefs†are very happy with the new budget and what share they will be getting for their areas in the process of development
[Lady of the Lake] Right now… I see the xe.com has Kuwait dinar at $3.60
[Nighthk11] I believe that this RV will do great things to settle down the fears and dying hopes of the people in a better life. Hummm- lady if so then we should expect anything below that figure (over $3.00) from Iraq
[Lady of the Lake] yes, that is what I have always thought too…. just below
[Nighthk11] At any length folks I am satisfied that there is some very good info coming out from the main Iraqi players in this that mean we are very close to getting this done and in a timely manner. hk11] I am looking at any time any moment we may see something of change from CBI. Thanks again for letting me comment with my 2 cents- all take care- keep looking up and supporting each other because we are looking at this RV-BBL
[dmitch] Thanks Nighthk11 for the info!