Blog posts tagged with 'Iraqi dinar'

Decision to delete the zeros from the currency .. Ink on paper- Tuesday, November 6, 2012

Decision to delete the zeros from the currency .. Ink on paper

Al Mutar Magazine

translation:  Long ago, announced near the implementation of the decision of the deletion of three zeros from the Iraqi currency, and that the project will be launched early next year and will continue for two to three years. He then appeared other comments announces lingered government to the implementation of this resolution and postponed to another date.

So is the project will remain a dead letter, as described by the Deputy Director of the Central Bank of the appearance of Mohammed Saleh? .... And received the decision to delete the zeros from the Iraqi currency a lot of opinions pro and con, there Economists believe that the decision will lead to the collapse of the national currency and see some last he would return to the country benefit the country It is unfortunate patient in its implementation because it is a joint venture between the government and the central bank. As long as the government seeks to postponed due to security concerns, it can not be implemented in this year or the year after that - according to deputy director of the Central Bank - Timing is very important in this case is also implemented, they must coincide with the beginning of the fiscal year, so you will not find space for implementation inevitably through this year .. And regrets for the postponement of the project because it is economic benefit to the country as long as improve the efficiency of the currency and reduce the impact of large numbers, then dealing with cash needs into categories cash large and small, as will be dealt again categories such as (50 dinars) and (100 dinars) and (200 dinars) in addition to less than the dinar categories such as (half a dinar) and (quarter of a dinar) and (50 fils) and (25 fils).

This is confirmed by financial and economic expert at the Central Bank Majid picture that sees no difficulty in implementing the decision because it will help in the process of reducing the trading volume of currency in transactions large and will lead to fee pricing policy more accurate in the future as long as it will be dealing thousands and millions rather than billions, as well as its role in detect fraud earlier because the central bank will impose on banks use very modern techniques to detect fraud. He adds, As the technologies that will be used in the printing of the new currency will be difficult to penetrate unless the gangs behind it or organization backed by the state because the precise specifications and styles to be set by the central bank will be very strict '.

In contrast warns economist Tawfiq inhibitor of the collapse of the national currency in the case of the application of the decision to delete the zeros three of them, pointing to the need to prolong the period of the currency exchange and not withdrawn the old currency and launch new direct, but do it together so it would not cause harm to the economy or any direct impact on living conditions of the citizens. On the other hand sees inhibitor that counterfeiting process is another reason to collapse and therefore warns that happens, especially as there are great bands and mafias currency capable of forging the biggest Iraqi currency.
Most citizens see the decision to delete the three zeros from the national currency look apprehension after their pockets used to carry large paper groups and accustomed stakeholders including dealing with hundreds of millions.

The businessman believes weighted in favor of deletion of zeros would hurt the level of share trading in the Iraqi market for securities, because there shares will be lost in case of deletion of zeros. And works weighted in stock since 2005 and increased his passion for them when evolved using screens electronic, but does not hide his fear of failure dealing with them, especially since stocks foreign exchange reduced the lead to block the signing of agreements with companies of foreign investment, which believes that the change of currency will reduce profits.

For his part, sees Adel Abdul Jalil / assistant professor at the Faculty of Administration and Economics / that Iraq is ready now for the deletion of zeros from the dinar, because it needs to stabilize security, political and economic, and that Iraq - in his opinion - no need to replace the currency as it is needed to control of the oscillation happening in the exchange rate of the dinar against the dollar. Abdul Jalil confirms that the lifting of the zeroes will cost the state budget large sums may open the door for financial corruption and waste of public money as well as failure to address the problem of inflation because the Iraqi market for all imported goods and services from abroad, which means a large drain of hard currency.

In response to these concerns, stresses, deputy director of the Central Bank «the power of the Iraqi dinar, which became like a hard currency thanks to the policy of the central bank in control of the cash raised in the local market '. He pointed to the existence of a large cash reserve of hard currency is kept to face the difficult circumstances that may occur in the country gives the strength of the dinar against foreign currencies. The central bank's policy is aimed - according to the benefit - to the stability of the exchange rate of the dinar against the U.S. dollar, likely equal to the price of the Iraqi dinar against the U.S. dollar during the next two years after the implementation of the project to delete three zeros from the Iraqi currency. And in favor of the view that the Iraqi citizens need to raise awareness in the villages and towns and schools also require that students have a role in the media help citizens to receive the project.

The expert economic Majid picture this view, explaining that the circulation of the new currency would be gradual so as not exposed citizen to any defect or blackmail the owners of interests until withdrawing the old currency fully, on condition also do a mass media campaign is overseen by the central bank and entities associated with it to educate citizen.

Dinar is served; Investors caught between Iraq and a hard place- Sunday, August 26, 2012

Dinar is served

Investors caught between Iraq and a hard place

Thousands of Main Street investors, fed up with a stock market that has barely moved in more than a decade, are seeking out heftier returns in more exotic investments.

And then there is Ryan Williams.

Williams, 35, of Bakersfield, Calif., has abandoned US stocks and bonds for one of the chanciest investments on the map: the Iraqi dinar.

The small-business owner said he has been buying Iraqi dinars regularly since he was first turned on to them around 2005. His last purchase: just this month.

“There’s risk in anything,” he told The Post in a recent interview, explaining why he gave up US stocks and bonds in favor of the world of currencies. “I think our economy has shown us that.”

Iraqi dinar investing figures in the plot of “Hit and Run,” starring Kristen Bell, above, giving Hollywood heft to a potentially explosive bet.

Williams is not alone in investing in the currency of the war-torn country. There is a growing number of dinar devotees betting that the currency — currently pegged at 1,165 dinars per US dollar — could one day spike in value if Iraq’s new government gets on its feet, begins profiting from its massive oil supplies and revalues its currency.

The exotic investors point to currency spikes in West Germany following World War II and in Kuwait following its 1990 invasion as proof the strategy works.

The potential for riches has opportunity-hungry investors so eager for information that Paul Christopher of Wells Fargo said he gets more questions about the controversial paper than any other currency except, more recently, the euro.

“I don’t get many currency questions as frequently as I get questions about the dinar,” Christopher, the chief international investment strategist for Wells Fargo, told The Post.

Indeed, knowledge of the once-obscure currency trade is reflected in “Hit and Run,” a new movie starring Bradley Cooper and Kristen Bell.

Bell, who plays a university professor in love with a former bank robber, derides Cooper’s dinar deal as a “get-rich-quick” scheme.

Wells Fargo’s Christopher agrees with Bell’s assessment — and not just because of the ongoing geopolitical turmoil that could tumble the current government.

The Iraqi dinar isn’t held by US banks or traded by major currency exchanges, so interested investors must locate dealers who will deliver the investment in paper form.

That means higher risk for fraud, which has been increasing around this trade in recent years, according to warnings from the Better Business Bureau.

But it also means higher markups to buy the currency, plus storage fees. Selling the dinar could also be pricey, given the lack of big, institutional buyers.

At dealer DinarTrade, for example, buying 1 million dinars will cost $1,020, according to the website. But selling them back will earn you just $810, said DinarTrade founder Ali Agha, citing the unfavorable exchange rate by the Central Bank of Iraq.

Still, Agha, one of the few dealers rated favorably by the Better Business Bureau, doesn’t see interest in the trade fading anytime soon, given the degree to which mom-and-pop investors — who make up the bulk of his clientele — have been burned by stocks and real estate.

“Main Street doesn’t believe in the stock market anymore,” Agha said.

IMF Press Release: IMF Approves Seven-Month Extension of Stand-By Arrangement for Iraq- Thursday, August 2, 2012

IMF Press Release: IMF Approves Seven-Month Extension of Stand-By Arrangement for Iraq

IMF Approves Seven-Month Extension of Stand-By Arrangement for Iraq
Press Release No. 12/286
August 3, 2012

The Executive Board of the International Monetary Fund (IMF) approved on July 20, 2012—on a lapse-of-time basis1—a seven-month extension of Iraq’s Stand-By Arrangement (SBA), to February 23, 2013.
The SBA had been scheduled to expire on July 23, 2012. The extension, which had been requested by the Iraqi authorities, will provide them with time to implement the policy measures needed to complete the combined third and fourth reviews under the SBA. The extension will, in particular, provide time for discussions on fiscal policies for the remainder of 2012 and on measures to improve the functioning of the exchange regime.
The two-year Stand-By Arrangement (SBA) in the amount of SDR 2.38 billion (about US$3.58 billion), was approved by the IMF's Executive Board on February 24, 2010 (see press release 10/60). The IMF's Executive Board completed the first program review on October 1, 2010 (see press release 10/373), and the second review on March 18, 2011 (see press release 11/90). At the time of the second review, the program duration was extended by five months to July 2012, along with a rephasing of program disbursements based on a shift in financing needs. Total resources currently available to Iraq under the arrangement amount to the equivalent of SDR 1307.24 million (about $1.96 billion).
1 The Executive Board takes decisions under its lapse of time procedure when it is agreed by the Board that a proposal can be considered without convening formal discussions.

Emir of Kuwait is keen on the stability of Iraq- Friday, July 20, 2012

Emir of Kuwait is keen on the stability of Iraq

BAGHDAD - (translated) Morning confirmed the Emir of Kuwait Sabah Al-Ahmad Al-Jaber Al-Sabah during a meeting with Transport Minister Hadi al-Amiri keenness of his country's security and stability of Iraq. reported official KUNA news agency that the Emir of Kuwait, received at Bayan Palace yesterday and Transport Minister Hadi al-Amiri and his entourage. "and stressed Kuwait's Emir the need to strengthen the common interests between the two countries and promote the form in which the benefit of the two countries, noting that Kuwait is interested in Iraq's stability and security. witnessing Iraqi-Kuwaiti relations are positive developments as it announced Kuwaiti Ambassador in Iraq to the insured in the April 30, 2012 that his country will open soon consulates in the cities of Erbil and Basra as well as the offices of the embassy in the number of Iraqi provinces, and confirmed that the Kuwaiti side touching seriousness of the Iraqi government to close the outstanding issues between the two countries since the nineties of the last century. stressed morning, according to the agency, his country's keenness to resolve all outstanding issues in the interest of the two countries, As the two historical relations and strong. As a result of the improvement in relations agreed Kuwait with Iraq to shed compensations for Kuwait Airways that is created Airlines joint worth the amount of compensation, which amounted to about $ 300 million, also re-Kuwait flights to Iraq, where landed in Najaf airport on April 17 last year, the first Kuwaiti plane after 22 years on the last trip to Iraq, while confirming the company (airline) it will twice weekly to the airport can be increased, as well as other trips to the rest of the airports in the country, as Minister of Public Works Minister of Planning and Development Minister Kuwaiti Dr Fadhel Safar recently, dispensing the fourth phase of the port of Mubarak the Great, which was expected to reach the number of berths to 60 Marina, and only only three phases the first to reach the number of berths to 24 Marsa only, pursuant to the agreement recently between the two governments Kuwaiti and Iraqi. has also led the visit of Prime Minister Nuri al-Maliki to Kuwait on March 14 last year to the parties' agreement on the maintenance of border markers, and lay the foundations and frameworks common resolve all files, timetables short, while Foreign Minister Hoshyar Zebari, who accompanied Maliki on the trip to what has been agreed upon is significant progress in relation to the exit of Iraq from Chapter VII.

Finance Committee: Delete the zeros of the local currency begins early next year- Friday, July 13, 2012

Finance Committee: Delete the zeros of the local currency begins early next year

Diyala July 14 (AKnews) - Translated:  The parliamentary Finance Committee, Saturday, that the process of replacing the currency and delete the zeros of which will be gradually beginning of next year, noting that the process takes two to three. said committee member and MP for the Iraqi List, Hassan Auzmn told Kurdistan News (Rn) that the CBI will withdraw the existing currency early next year gradually and keep trading currency current grant citizens enough time to replace the currency. " He Auzmn replace the currency and delete the zeros experience successful and useful for the Iraqi economy through their success in a number of other countries, pointing out that "The operation will contribute to ease carrying banknotes among citizens and will not have any negative impact on the Iraqi economy (according to him). has not ruled out Auzmn attempts forging new currency afterthought: the security measures to be taken to protect the currency will mark easily between the old currency and the new currency. announced the Finance Committee Parliamentary early July of this that the budget next year 2013 will be the new currency after deleting three zeros from the current currency, saying that the reluctance of traders and companies from trading in Iraqi currency behind the adoption of the Central Bank project to delete zeros. Some economists that Iraq is not formatted for the time being to delete the zeros of Iraqi dinar, pointing out that the deletion needs to security and political stability as well as economic stability. : Mahmoud al-Jubouri, the Open: Peace Baghdadi


Government wants CBI to carefully delete zeros and reveal the financial details of the project- Saturday, June 30, 2012

Government wants CBI to carefully delete zeros and reveal the financial details of the project

translated:   Revealed the House Financial Committee, Sunday, prompting Prime Minister Nouri al-Maliki for the Central Bank to wait to delete the zeros of the Iraqi currency, noting the presence of several foreign companies vying for printing the new currency.

Member of the parliamentary Finance Committee for “Haitham al-Jabburi,twilight news,” Prime Minister Nuri al-Maliki asked the Central Bank to wait to delete the zeros of the Iraqi currency.

“The Finance Committee met Wednesday with the Deputy Governor of the Central Bank and was discussing the deletion of zeros and print new currency”.

“We’re afraid that in the process of delivering the money to the banks for the purpose of manipulation and blackmail citizens but time is exceeded, this case after the approval of the Central Bank to be there 10 years forward allowed the old Iraqi currency delivered.”

The “new currency contains 36 cases of fraud while ensuring that current currency contains 8 just so it is expected that the new currency forgery difficult.”

He said the new currency would consist of categories of paper and metal paper ones are groups of 200 dinars, equivalent to 200,000 dinars a $ 180, 100, 50 and 25 dinar JD either metal is half dinar JD and a quarter and 100 Fils and 50 Fils, 25 Fils is the smallest coin equal to 250 dinars “.

“Been subject to national symbols such as Helicobacter and civilization of ur and the castle of Arbil and waterfall geli and Mosul Dam”.

He noted that “there are offers of mnsharkat Swiss and Russian and Brazilian compete in terms of price and quality for printing the new currency would be subject to discussion, presentations by competent Central Bank to determine who qualified for printed money.”

The CBI had earlier described, delete zeros from the currency project as “a new infrastructure of the country is no less important than other infrastructure.”

The Deputy Governor of the Bank, said Mohammad Saleh appearance that the project reflects the harmony of speed angashza ministries and competent State departments away from institutional work, ‘ isolationist value for the independence of the Central Bank if the independence high coordination with other economic institutions to build Iraq. “

Import of 60 armored vehicles for the transfer of funds between Iraqi banks- Wednesday, June 20, 2012

Import of 60 armored vehicles for the transfer of funds between Iraqi banks

Translation:  Finance 60 US-made armored truck, to transfer money between Iraqi banks. The sources said the reporter Agency (dinars), "The Ministry of Finance has imported 60 trucks armored American made, dedicated to the transfer of funds between banks in Baghdad and the provinces, adding that the new trucks armored and can not be breached even improvised explosive device., The sources added, quoting a Force Personnel Protection and the Ministry of Finance he new trucks were imported due to the worn out old trucks. Iraq has witnessed many incidents of theft of money banking during the transfer process during the deterioration of security after the 2003 World especially in Alosth region and west of it.

Iraq reduces below poverty line to 16% from 23%- Sunday, June 17, 2012

Iraq reduces below poverty line to 16% from 23%

The number of Iraqis under poverty line has been reduced to 16% of the country’s population of more than 30 million people from 23%, said Labor and Social Affairs minister.

The minister Nassar al-Rubaai said one main reason for the drop in poverty has been the country’s social security network and the interest free loans the ministry extends to low-income families to start small businesses.

“The government has begun implementing national and strategic policies to alleviate poverty in accordance with the national vision that calls for the building of a democratic, just and balanced society,” the minister said.

He said this year the government has allocated $84 million to support small projects by low income families across the country with the social security system currently covering almost all Iraqis with no regular income.

“These allocations and policies have contributed to reducing the rate of those under poverty line from 23% to 16%,” he said.

The plunge in poverty line has positively impacted employment which is still estimated at 16% in Iraq, the minister added.

Iraq has seen a surge in its hard cash earnings due to marked increases in its oil export and firm oil prices in international markets.

But the country still remains almost solely reliant on oil royalties for its hard cash most of which goes to covering civil servant salaries, defense and imports.

The country’s exports other than oil are almost negligible.