Iraqi Dinars Blog

Saturday, January 21, 2012 13:44 GMT

Central Bank of Iraq announced, on Thursday, that it revaluated Iraqi Dinar 3.4% in exchange with Dollar. This decision will affect the exchange rate of Iraqi Dinar against US dollar in Iraqi markets, Central Bank stressed.

“During his daily auction of foreign currencies’ exchange, Central Bank raised the value of Iraqi dinar against the dollar with a percentage of 3.4% which counts 4 Dinars,” deputy governor of Iraqi Central Bank Mazhar Mohammad Saleh told Alsumarianews noting that after the current change each 1166 Iraqi Dinars equal 1 Dollar. “Nominal rate of Dinar doesn’t coincide with its purchasing power or with its real exchange rate against the Dollar,” Saleh revealed.

“The current account of Iraq payments has a surplus of 5 to 8% in comparison with the GDP,” Saleh advanced stressing that this surplus is a strength indicator and points that Central Bank has major reserves.

“Central Bank of Iraq’s decision will affect Dollar exchange rates which slightly increased lately in Iraqi markets,” Saleh declared adding that Iraqi Dinar will become a riveter in Iraqi markets.

Central Bank of Iraq had announced, on Thursday, exchanging Dollar categories for 1166 Dinars per Dollar after it used to sell 1170 Dinars per Dollar. Auctions of the Central Bank are taking place, daily, with the participation of 23 different banks.

At the end of this week’s sessions, Central Bank of Iraq scored a slight decrease of about 1 million Dollars reaching therefore more than 199 million Dollars in comparison with the 200 million Dollars scored on Wednesday.

Deputy Governor of Iraqi Central Bank Mazhar Mohammad Saleh revealed, on December 14, that Central Bank is willing to create 3 money categories following the deletion of 3 zeros from Iraqi Dinar. The currency exchange requires about two years, Saleh pointed out.

Reserves of foreign currencies in Central Bank of Iraq increased, for the first time in Iraqi history, to 60 billion Dollars, Saleh announced on December 6 explaining that Central Bank can curb inflation if it reached two decimal ranks. Current levels don’t raise concern though, he assured.

January 3rd 2012

I have been trading the Iraqi Dinar since March 2003 and am one of the oldest Dinar Dealers in the world . We have never written nor followed any bulletin board nor other posts on so called overnight , magical “RV” – Revaluation of the Iraqi Dinar . We do believe in long term appreciation of the Dinar against traditional currencies such as the Euro and US Dollar which we have steadily seen over the past 9 years but urge caution in believing in dramatic overnight currency increases . With this in mind , BEFORE investing in Iraqi currency , please conisder this :-

1. Investing in any currency is a HIGH RISK investment – only invest what you can afford to lose .
2. Be fully informed of the political and economic situation of the currency you are buying.
3. Bear in mind that the Iraqi Government has CLEARLY stated VARIOUS times over the past year that they intend deleting 3 zeros from the current Iraqi money . ie. a zero lop in order to ease financial transactions as written about previously in my blog .

If this was to become a reality we will make every effort to exchange the old currency for the new ones for our clients provided we have a sufficient time window and it is carried out in and orderly and patient manner and provided the appropriate authorities allow us to move the old and new currencies freely . We are not responsible in any way for sudden chnages in government policies towards movement of currencies nor any change of currency overnight .

We strive to serve our customers needs but there are limitations to which we can act at times and this needs to be borne clearly in mind .

For this reason we have clients whom we have recommended in the past purchase Call Optiosn through us as well as hold cash within the Iraqi banking system , but equally like any investment , this too comes with risks .

We still belive the long term potential for Iraq is good and over the long term the currency has good potential for appreciation , but all the above mentioned factors must be taken into account before making any decision to purchase the currency . Certainly not on rumours spread over social media and bulletin boards .

Bruce Tupholme
Iraqidinars.com
3rd January 2012

U.S. military marks end to nearly nine bloody years in Iraq

By Missy Ryan and Patrick Markey | Reuters – 1 hr 24 mins ago

BAGHDAD (Reuters) – The U.S. military officially ended its war in Iraq on Thursday, rolling up its flag at a low-key ceremony with Defense Secretary Leon Panetta nearly nine bloody years after the invasion that ousted dictator Saddam Hussein.

“After a lot of blood spilled by Iraqis and Americans, the mission of an Iraq that could govern and secure itself has become real,” Panetta said at the ceremony outside Baghdad’s still heavily-fortified airport.

Almost 4,500 U.S. soldiers and tens of thousands of Iraqis lost their lives in the war that began with a “Shock and Awe” campaign of missiles pounding Baghdad, but descended into sectarian strifeand a surge in U.S. troop numbers.

U.S. soldiers rolled up the flag of American forces in Iraq and slipped it into a camouflage-colored sleeve in a brief, symbolically ending the most unpopular U.S. military venture since the Vietnam War of the 1960s and 70s.

The remaining 4,000 American troops will withdraw by the end of the year, leaving behind a country still tackling a weakened but stubborn Islamist insurgency, sectarian tensions and political uncertainty.

“Iraq will be tested in the days ahead, by terrorism, by those who would seek to divide, by economic and social issues,” Panetta told the rows of assembled U.S. soldiers and embassy officials at the ceremony. “Challenges remain, but the United States will be there to stand by the Iraqi people.”

Saddam is dead, executed in 2006, while an uneasy politics is at work and the violence has ebbed. But Iraq still struggles with insurgents, a fragile power-sharing government and an oil-reliant economy plagued by power shortages and corruption.

In Falluja, the former heartland of an al Qaeda insurgency and scene of some of the worst fighting in the war, several thousand Iraqis celebrated the withdrawal on Wednesday, some burning U.S. flags and waving pictures of dead relatives.

Iraq’s neighbors will watch how Baghdad tackles its problems without the U.S. military, while a crisis in neighboring Syria threatens to upset the region’s sectarian and ethnic balance.

U.S. President Barack Obama, who made an election promise to bring troops home, told Iraqi Prime Minister Nuri al-Maliki that Washington will remain a loyal partner after the last troops roll across the Kuwaiti border.

“WE NEED TO BE SAFE”

Iraq’s Shi’ite leadership presents the withdrawal as a new start for the country’s sovereignty, but many Iraqis question which direction the nation will take without U.S. troops.

“I am happy they are leaving. This is my country and they should leave,” said Samer Saad, a soccer coach. “But I am worried because we need to be safe. We are worried because all the militias will start to come back.”

Some like Saad fear more sectarian strife or an al Qaeda return to the cities. A squabble between Kurds in their northern semi-autonomous enclave and the Iraqi Arab central government over disputed territories and oil is another flashpoint.

Violence has ebbed since the bloodier days of sectarian slaughter when suicide bombers and hit squads claimed hundreds of victims a day at times as the country descended into tit-for-tat killings between the Sunni and Shi’ite communities.

In 2006 alone, 17,800 Iraqi military and civilians were killed in violence.

Iraqi security forces are generally seen as capable of containing the remaining Sunni Islamist insurgency and the rival Shi’ite militias that U.S. officials say are backed by Iran.

But attacks now target local government offices and security forces in an attempt show the authorities are not in control.

Saddam’s fall opened the way for the Shi’ite majority community to take positions of power after decades of oppression under his Sunni-run Baath party.

Even the power-sharing in Maliki’s Shi’ite-led government is hamstrung, with coalition parties split along sectarian lines, squabbling over laws and government posts.

Sunnis fear they will be marginalized or even face creeping Shi’ite-led authoritarian rule under Maliki. A recent crackdown on former members of the Baath party has fueled those fears.

Iraq’s Shi’ite leadership frets the crisis in neighboring Syria could eventually bring a hardline Sunni leadership to power in Damascus, worsening Iraq’s own sectarian tensions.

“WAS IT WORTH IT?”

U.S. troops were supposed to stay on as part of a deal to train the Iraqi armed forces but talks over immunity from prosecution for American soldiers fell apart.

Memories of U.S. abuses, arrests and killings still haunt many Iraqis and the question of legal protection from prosecution looked too sensitive to push through parliament.

At the height of the war, 170,000 American soldiers occupied more than 500 bases across the country.

Only around 150 U.S. soldiers will remain after December 31 attached to the huge U.S. Embassy near the Tigris River. Civilian contractors will take on the task of training Iraqi forces on U.S. military hardware.

Every day hundreds of trunks and troops trundle in convoys across the Kuwaiti border as U.S. troops end their mission.

“Was it worth it? I am sure it was. When we first came in here, the Iraqi people seemed like they were happy to see us,” said Sgt 1st Class Lon Bennish, packing up recently at a U.S. base and finishing the last of three deployments in Iraq.

“I hope we are leaving behind a country that says ‘Hey, we are better off now than we were before.’”

(Editing by David Stamp)

By REUTERS

Published: Sep 5, 2011 22:20 Updated: Sep 5, 2011 22:20

BAGHDAD: Iraq’s foreign currency reserves have risen to close to $58 billion and are expected to increase further thanks to a rise in oil revenues, a central bank official said.

Mudher Kasim, a deputy central bank governor, said higher global oil prices had boosted Iraq’s federal revenue and could result in a budget surplus for 2011.

“(The amount of reserves) has gradually increased since the beginning of last year, when it was $40 billion. Now it is close to $58 billion,” Kasim said.

Last October, Kasim had put reserves at around $50 billion, with 45 percent held in dollars, 45 percent in euros and 10 percent mainly in gold and British pounds.

Iraqi federal revenue depends mainly on oil, and higher oil prices have helped the country earn billions of dollars this year.

Iraq earned $34.1 billion in oil revenue, an increase of $8.7 billion, or 34 percent, over budgeted revenue, in the first five months of this year, Deputy Prime Minister Hussain Al-Shahristani said in June.

Iraq’s parliament approved an $82.6 billion budget for 2011 in February, based on an average oil price of $76.50 per barrel and 2.2 million barrels per day in crude exports.

If international oil prices remain at over $100 this year, Iraq would see a 2011 budget surplus of 15 percent, Kasim said.

While the country’s current year deficit had been projected at $13.4 billion, officials have said the shortfall will be eliminated if world oil prices remain at current high levels.

The deputy governor said inflation – which quickened to 7.1 percent in July from 6.4 percent in June – was under control but being monitored carefully.

Iraq, battered by years of war and economic sanctions, depends mainly on imports for most goods, including food and building materials.

“If prices continue to increase and the inflation rate approaches two digits, monetary policy tools will be strongly activated to fight inflation,” he said.

Kasim said a plan to take off three zeroes from Iraq’s currency to simplify financial transactions was awaiting parliamentary approval and said the government should approve the project sooner rather than later.

Azzaman – [7/31/2011]

Per capita income in Iraq will surge to $9000 from the current $4000 in 2014, the Central Bank says.

The new per capita income forecast means that Iraqis’ living standards are expected to more than double in less than four years.

The promising economic prediction for the war-torn country is a rare good piece of news.

“The per capita income will more than double by the end of the investment plan in 2014″ said Mudher Saleh, a Central Bank consultant.

Saleh put the country’s growth rate at a little more than 9 per cent and said his figure was based “on the aggregate growth forecast for 2014-2014.”

If Iraq achieves the growth rate predicted for the investment plan, the country will see an explosion in income, he said.

There will be enough income to finance infrastructure projects in various fields, he said.

Saleh said the country’s bloated civil service sector was currently among the most prosperous in the country.

He said while average per capita income was $4000, civil servants earned an average of $6000 a year.

Oil revenues, he said, would still make the lion’s share of the country’s income.

“The importance of oil royalties in financing investment projects is of vital importance,” he said. “Maximizing oil earnings is the philosophy the oil sector is pursuing to provide steady access to resources to finance the national development plant.”

BAGHDAD — A senior Iraqi Central Bank adviser says the government has adopted a two-pronged plan to restructure the national currency in order to facilitate large transactions and make government accounts more efficient, RFE/RL’s Radio Free Iraq (RFI) reports.

Mudhhir Muhammad Salih, a member of the bank’s advisory panel, told RFI on June 23 that in the short term, larger banknote denominations of the dinar will be issued to simplify major transactions.

He said that because so many Iraqis still deal mainly in cash, it is cumbersome to carry bags full of money to pay for expensive items like cars. The inconvenience leads people making such purchases — as well as many entrepreneurs — to use dollars for those kinds of transactions instead of dinars, something the government wants to end.

He added that large denominations equivalent to around $100 will be issued to simplify major purchases, and new coins and lower denominations will be introduced for smaller transactions.

In the longer term, Saleh said a redenomination is needed wherein three zeros will be dropped so that the 25,000 Iraqi-dinar banknote — currently the largest denomination — becomes a 25-dinar note.

He said the change is inevitable, considering the economy is expecting high growth in the coming years with a planned increase in oil production to finance reconstruction projects.

Saleh said there are currently some 29 trillion dinars in circulation in Iraq, represented by some 6 trillion banknotes of various denominations, most of them quite small. He said this also causes complications for the central bank and government, as well as commercial accounting departments.

Saleh said the monetary-restructuring plan was drawn up with the help of foreign experts and financial institutions, including the International Monetary Fund (IMF), of which Iraq has been a member since 1945.

The plan will soon be presented to the cabinet, which is expected to subsequently send a bill to parliament.

Saleh noted that until 1980 the Iraqi dinar exchange rate was 1 dinar/$3.3 compared to $1/1,168 dinars now due to hyperinflation that occurred during the latter part of the late ousted leader Saddam Hussein’s reign.

Source :- Radio Free Europe Radio Free Liberty

Saturday, June 25, 2011 11:23 GMT

Iraq’s Central Bank announced on Thursday that it is planning to delete the zeros from the Iraqi currency.

This step is one of the bank’s strategic missions; the Central Bank said adding that the new currency will include the Kurdish language in addition to the Arabic language.

“The zeros that were added to the Iraqi currency previously constituted a large money supply up to 28.500 trillion Iraqi Dinar and 5 trillion banknotes”, the adviser of Iraqi Central Bank governor Mothahhar Mohammed Saleh told Alsumarianews.

“The Central Bank has prepared all requirements needed to delete the zeros from the Iraqi Currency”, Saleh said.

“This step is one of the Iraqi central bank’s strategic missions. The monetary policy of the bank aims to structure and reduce the currency in a country moving towards an economic phase”, he added.

“The project of deleting zeroes is complete. It will be submitted to the central bank’s administration in the next session. Then, it will be passed to the ministerial council before presenting it to the Parliament for vote. The mechanisms of changing the currency will be gradual. It will be preceded by awareness campaigns for citizens”, the adviser of Iraqi Central Bank governor said.

“The new currency will be printed after deleting the zeros and will include the Kurdish language in addition to the Arabic language. It will bear as well photos of Iraq’s civilizations and patrimony in addition to symbols of Iraqi intellectuals and figures”, Saleh noted.

On June 19, Iraq’s Central Bank Governor Sanan Al Shebeibi affirmed during the meeting of independent commissions with Prime Minister Nuri Al Maliki that the bank is preparing all requirements needed to replace the Iraqi Currency.

Iraq’s Central Bank has four branches including Basra, Sulaimaniah, Arbil and Mosul. It was founded as an Iraqi independent bank by virtue of Iraq’s Central Bank Law issued on March 6, 2004.

The bank is responsible for the prices stability and the implementation of monetary policy including exchange rates, the management of foreign reserves, the issuance of currencies and the organization of the banking sector.

Source : Alsumari TV Network

May 12, 2011

Three vice presidents for Iraq have been approved by parliament, Xinhua reported May 12, citing an unnamed source. They are Adel Abdul Mahdi, Iraqi Supreme Islamic Council; Tariq al-Hashimi, al-Iraqiya List; and Khazir al Kharajai, State of Law coalition, Al Sumaria reported.

Source : STRATFOR

Iraq Central Bank to remove three zeroes from Iraqi Dinar

Wednesday, April 13, 2011 09:58 GMT
Iraq’s Central Bank announced on Tuesday that the project of Iraqi Dinar re-denomination consisting of removing three zeroes is close to completion.
The re-denomination project is believed to be a strategic plan that will be passed to the ministerial council and Parliament once complete.

The plan to remove three zeroes from the Iraqi Dinar is a strategic plan that the central bank is currently finalizing, Central Bank’s advisor Mothahhar Mohammed Saleh said in a statement to Alsumaria News.

This plan aims to alleviate transactions cost and help people carry less money, Saleh said noting that Iraq seeks to produce 6 to 12 oil barrels which is expected to increase the value of Iraqi dinar and boost development, he said.

Iraq’s central Bank has managed during the past five years to reduce inflation rates from 34% to 3 or 4% and stabilize Iraqi Dinar exchange, the Central Bank’s advisor told Alsumaria News.

In an earlier statement to Alsumaria News, Iraq’s central Bank adviser Mothahhar Mohammed Saleh affirmed that the bank plans to remove three zeroes from the Iraqi Dinar noting that the zeroes which were added to the Iraqi currency previously constituted a large money supply estimated at 27 trillion Iraqi Dinar.

Saleh revealed on the other hand that Iraq engages for the first time in banks payment system as it moved from manual to electronic clearance. The system includes six banks in addition to electronic deeds exchange, he said adding that the smart and credit cards will be bound to the central bank system.

The Central Bank will form after three years what is known to be as the payments council which sets forth Iraq’s banking protocols and infrastructure, the central bank’s adviser said.

Iraqi economists believe the re-denomination of Iraqi Dinar will not have a major influence on the purchasing power of the Iraqi Dinar which the government has hopes high on it.

By Hassan Hafidh

Published March 01, 2011

| Dow Jones Newswires

AMMAN -(Dow Jones)- Iraq’s oil exports rose to 2.202 million barrels a day in February, the highest rate reached since the U.S.-led invasion in 2003, the head of the state oil marketing company SOMO said Tuesday, and the country’s top oil officials said output should hit 3 million barrels a day by the end of the year.

Falah Alamri also said Iraq sold its crude oil at an average $97-$98 a barrel in February, compared with an average $90.78 a barrel in the previous month. That means Iraq would earn some $6 billion-$6.042 billion, he said. In January Iraq earned some $6.082 billion, the highest in a year.

Alamri said there was an increase in February’s oil movements from fields in northern Iraq due to the resumption of exports from the semi-autonomous Kurdish region. Some 494,000 barrels a day were exported from Kirkuk and Kurdish oil fields in February, compared with 419,000 barrels a day in January.

The Kurdistan region resumed oil exports in February after a one-and-a-half year suspension at just shy of 10,000 barrels a day and the flow is now between 60,000 and 70,000 barrels a day, Iraqi oil officials said. Kurdish officials had said they could lift output from their fields to up to 200,000 barrels a day by the end of this year.

Alamri said some 1.708 million barrels a day were exported in February from southern terminals in the Basra ports, compared with 1.742 million barrels a day in the previous month, with the slight fall attributed to a shorter month.

The total export increase has come in-line with swift work at the southern Rumaila, Zubair and West Qurna Phase 1 fields, where some 300,000 barrels a day have been already been added. A further 200,000 barrels a day from southern oil fields are expected by the end of this year to bring Iraq’s total output to 3 million barrels a day, according to Iraqi Oil Minister Abdul Kareem Luaiby and Deputy Prime Minister for Energy Affairs Hussein al-Shahristani.

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