* SOMETHING TO THINK ABOUT – Post By Steve1 Peoples Dinar: Dinar Recaps 01/04/2012

_Here is a little something to think about. I had a long talk with an old friend of mine that is an international expert in many fields.This is a basic observation regarding Iraqi contracts with other countries. He said that those contracts are derived in USD for a reason, and OPEC has something to do with that.

If other companies (larger ones) from other countries wish to engage in business or investments, then Iraq will have to stand on it own two feet at some point with their currency. As you are all aware, that will change prior to entering into the WTO as a full fledged member.

_IMF Country Report No. 10/316 <– See Page 12 “Fiscal policy is on track, but the authorities will need to ensure that the 2011 budget will be consistent with a return to a sustainable fiscal position over the medium term. In this regard, the 2011 budget should be based on conservative assumptions for oil prices and volumes. The large uncertainty about the global economic outlook and the large scope for delays in the increase in oil production in Iraq warrant a cautious approach. The authorities should also continue to make every effort to contain current spending.”Page 13: “Staff supports the CBI’s intention to continue to manage the exchange rate with a view to keeping inflation low. A strong and stable currency provides a solid anchor for the public’s expectations in an otherwise highly uncertain environment.” (I think this message is loud and clear that the budget must contain a STRONG RATE or the entire country and economy is a destiny for failure.)

Lets talk about the Ministry of Planning (MOF). MOF Amended Exchange Rate Document

1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities. (Recommended by the UN regarding Chapter 7 guidelines)

Baker Jaber AL Zubaidi: Iraqi Dinar Value should be Raised<– Article to support this.Reserve is sufficient to raise the value of the Iraqi dinar

Secondly would be regarding need for re-evaluation of the Iraq currency. Back in February of last year, Maliki’s quote was “The Iraqi dinar has all the reasons to grow stronger thanks to an increase in revenues and development of the economy,”

Recap of that article:

The Iraqi dinar’s exchange rate is suffering from low value against foreign currencies as a result of decades of wars and economic embargo that brought the local currency’s exchange rate to the rock bottom from three dinars per dollar in the late 1970s and 1980s to 3,000 dinars per dollar after the 1990 invasion of Kuwait, followed by a 13-year crippling sanctions regime.

We have Dr. Sinan al-Shibibi in news interviews and articles, on more than one occasion throughout the year telling us they are going to raise the value of their currency this year.

The primary objectives of the Central Bank of Iraq (CBI) is to ensure domestic price stability and foster a stable competitive market based financial system. The CBI shall also promote sustainable growth, employment and prosperity in Iraq. The functions of the CBI in addition to achieving its primary objectives are:

* Implement the monetary policy and the exchange rate policy of Iraq. * Hold gold and manage the state reserves of gold. * Issue and manage the Iraqi currency. * Establish, oversee, promote a sound and efficient payment system. * Issue licenses or permits in addition to regulating and supervising the banking sector as specified by the Banking Law. * Carry out any ancillary tasks or transactions within the framework of Iraqi law.

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Archives: Latest Posts

May 24

• * (BGG): Dinar Updates 5/24/12

• * (Bulldog): OOM 5/24/12

• * (OKIE OIL MAN): OOM 5/24/12

• * White bloc rejects withdrawing confidence from Maliki

• * Ashton announced the conclusion of the meetings of 5 +1 and confirms that the negotiations need to be a long time

• * Central Bank: The teams we have reduced the dinar exchange rate to 4%, and we seek to raise the value

• * (Hammerman Update): MIG 5/24/12

• * Dinar Daddy: Several Things On My Mind…

• * (Millionday Wed Night Chat): Dinar Recaps 5/24/12

• * Iraq participates in the First World Summit for the aviation industry in Abu Dhabi

• * Suhail: Iraq will be the pole of the most influential in the region and has the makings of that

• * CBI will require foreign banks applying for an Iraqi charter to open with $170 million

• * Parliament: the smuggling of foreign currency abroad contributed to the reduction of the dinar exchange rate

• * Central Bank confirms the reduction of teams dinar exchange rate to 4%

• * CBI will require foreign banks applying for an Iraqi charter to open with $170 million