New Iraqi Dinar - U S Currency will be eliminated from Iraq to Strengthen Dinars

U S Currency will be eliminated from Iraq to Strengthen Dinars

Iraq will no longer use U.S. currency starting in October
By DB Cooper

As the United States pulls out of the country, we're trying to push the use of the Iraqi Dinar as much as possible. Iraq has started to strengthen their economy. The new policy from the Defense Finance and Accounting Service states that in October of this year, the finance office here will no longer be able to disperse U.S. currency.

"We're instituting changes now so when the policy is implemented, residents are prepared to handle their finances when October gets here," said Meadows, a native of Andalusia, Ala. "We didn't want to surprise Soldiers and civilians with an abrupt halt of distribution, so we're weaning them off the need of American money here."

Prior to July 1, Soldiers were able to use either U.S. dollars or Iraqi Dinar to purchase products from the local national market at Forward Operating Base Kalsu. In an effort to help boost Iraq's economy, the market will no longer accept U.S. currency. Soldiers can exchange their American dollars at the Finance office during their business hours, 9 a.m. to 4 p.m. Monday through Saturday and 1 p.m. to 4 p.m. on Sundays. Previously, anyone could draw as much as $200 a month in American money from the finance office.

Now residents can only pull out $50 in American money. Anything more, up to $200 worth, is converted into Iraqi Dinar. "Soldiers and civilians traveling on environmental morale leave or redeploying to their home unit are able to receive American money," said Meadows. "Our goal is to help boost the Iraqi economy by making their currency stronger. In order to do that, the American dollar has to stop circulating through the country." If the shop owners do not comply with the new policy, they are suspended from conducting business in the market for five days on the first offense. If they are seen accepting American money again they are permanently suspended from the market.

Iraqi Dinar Value - Many economists see this as the first step to economic recovery for Iraq

Hmmm....suspect spelling but interesting...

U.S. Forces Withdraw Iraq Could Raise Dinar

Many economists see this as the first step to economic recovery for Iraq
By DB Cooper

Iraq Celebrates WithdrawalIraqi Dinar New; U.S. Forces Withdraw From Cities Iraqis celebrate the U.S. withdrawal from Iraqi cities on June 30. Many economists see this as the first step to economic recovery for Iraq. This story sponsored by; http://www.directdinar.com/ As the U.S. forces withdrew from Iraqi cities this June 30, they are turning security responsibilities over to Iraqi security forces. Some 130,000 U.S. troops will remain in Iraq, and some will remain at urban outposts to assist with security in cities if needed, but the coming weeks and months will be a test for Iraqi security forces seeking to maintain relative calm in the country.

With more than six years of war behind it, and foreign occupation and civil strife in Iraq's attempt to rebuild itself as a nation. Iraqi security forces on June 30 celebrated the handing over of responsibility for security in the country's cities from U.S. forces. Front pages featured Iraqi security forces celebrating the June 30 deadline for the withdrawal of U.S. forces from Iraq's cities, but the U.S. military had been preparing for this moment for months by withdrawing or making preparations for withdrawal.

Still, some 130,000 U.S. troops remain on the ground in Iraq, and that troop level is not expected to change until at least September. This is roughly the same number of troops that was in Iraq three years ago, before the surge. Some are remaining at urban outposts beyond the deadline, while others are available to reinforce the cities if the security situation warrants - all at Baghdad's request, of course. Overall, the United States wants out of Iraq - and Iraqis want the United States out. Both Baghdad and Washington are invested in making this work. The United States must move quickly to reduce its commitment in Iraq in order to free itself up not only for the campaign in Afghanistan, but also for dealing with emerging challenges in Iran and across the Russian periphery.Of course all of this is going to have great consiquences on the Iraq dinar value and many are expecting this to raise the current values.

Iraqi Dinar Buying Guide - Iraq: U.S. Forces Withdraw From Cities

So now that US forces have pulled out we are all millionaries from our dinar right?

Its time to cash in?


Hat tip to http://www.dealorbuydinar.com/

Iraq: U.S. Forces Withdraw From Cities

Iraqis celebrate the U.S. withdrawal from Iraqi cities on June 30 in Muhannad Fala'ah

SummaryU.S. forces withdrew from Iraqi cities June 30, turning security responsibilities over to Iraqi security forces. Some 130,000 U.S. troops will remain in Iraq, and some will remain at urban outposts to assist with security in cities if needed, but the coming weeks and months will be a test for Iraqi security forces seeking to maintain relative calm in the country.

AnalysisAfter more than six years of war, foreign occupation and civil strife in Iraq's attempt to rebuild itself as a nation, Iraqi security forces on June 30 celebrated the handing over of responsibility for security in the country's cities from U.S. forces. Only in the weeks and months ahead, however, will it become evident whether much has actually changed in the war-torn nation.Newspapers' front pages featured Iraqi security forces celebrating the June 30 deadline for the withdrawal of U.S. forces from Iraq's cities, but the U.S. military had been preparing for this moment for months by withdrawing or making preparations for withdrawal.

Still, some 130,000 U.S. troops remain on the ground in Iraq, and that troop level is not expected to change until at least September. This is roughly the same number of troops that was in Iraq three years ago, before the surge. Some are remaining at urban outposts beyond the deadline, while others are available to reinforce the cities if the security situation warrants - all at Baghdad's request, of course.But the Iraqi government and the United States are deeply concerned about sustaining security gains made since the surge.

And though Gen. Ray Odierno - the top U.S. military officer in Iraq - has expressed confidence in the Iraqi security forces despite a recent spate of deadly suicide bombings, these concerns are genuine. There are powerful near-term incentives for elements of Iran's Islamic Revolutionary Guard Corps, as well as al Qaeda in Iraq and other foreign jihadists remaining in Iraq, to carry out attacks at this time in order to call into question Iraqi security forces' capabilities and try to reignite the sectarian bloodshed of 2006.

A June 30 car bombing in Kirkuk that left more than 20 people dead as U.S. troops withdrew from the city served as a critical reminder of this threat.In the coming weeks and months, the world will first see whether the Iraqi security forces prove themselves capable of maintaining day-to-day security. This will take several forms. One is proficiency - the security forces' capability to adhere to basic doctrine, maintain security and execute tactical maneuvers. Another is their willingness to do so.

If the security forces can keep above the sectarian strife they were so embroiled in years ago and enforce security in a relatively even-handed, uncorrupt manner, they may be able to make a positive contribution to overall security, rather than fan the sectarian flames. But it is far from clear whether the key security organs have overcome their sectarian roots and issues.It then remains for Baghdad to wield these forces fairly and effectively.

Given the amount of sectarian tension that still colors debates over oil revenues, the integration of Sunni irregular forces into the security apparatus, the fate of Kirkuk and other issues, this cannot be taken for granted. And political attempts to capitalize on the passing of the deadline will only cloud matters further.This will all be happening as the United States begins to relinquish some of its responsibilities and freedom of action.

Trainers, advisers and even some combat forces will remain, and the stipulations of the Status of Forces Agreement likely will be loosely interpreted in favor of maintaining security. Nevertheless, day-to-day operations are shifting into Iraqi hands as the United States transitions from a tactical to a more operational and strategic overwatch.

In addition, the United States will be losing ground in terms of intelligence and situational awareness as it pulls back. Since the surge, U.S. forces have had sustained, day-in, day-out personal contact at the tactical level with the local populace. This contact has given U.S. forces significant intelligence and situational awareness - enough to act as a buffer between different sects. Some erosion of this intelligence capability is almost inevitable, and it may become significant.Overall, the United States wants out of Iraq - and Iraqis want the United States out. Both Baghdad and Washington are invested in making this work. Washington's challenge is that its forces are stretched thin; it is already delaying the Afghan surge in order to keep sufficient troops in Iraq to keep a lid on security should tensions flare up again.

But the United States must move quickly to reduce its commitment in Iraq in order to free itself up not only for the campaign in Afghanistan, but also for dealing with emerging challenges in Iran and across the Russian periphery.The real question underlying this range of issues is whether Iraq can function as a federal entity. It struggled to do so in the years before the surge and descended into chaos. The surge of U.S. forces was decisive in re-establishing security. What matters is not the change that happened June 30; the official withdrawal from Iraq's cities was symbolic. What matters is whether Baghdad's governance and security forces can maintain security and gain the confidence of Iraq's people, across the sectarian spectrum, in ways that truly make the security situation manageable for the long term.

Iraqi Dinar Buying Guide - Iraqi Dinar Increasing However Many Challenges Ahead

My favorite part of this article is the last paragraph, where despite all the cynicism, and all the people that cry that Iraqi Dinar is a scam...

"The current exchange rate is .0009 to one U.S Dollar. In 2003 it was .00027 and in 2006 it was .00068 so there has been continued increase in the Dinar verses the Dollar in the past 6 years and it should continue to gain."

Or in other words there has been a large appreciation of the Iraqi Dinar even in the middle of a war, yeah its a scam, better stay away...

Posted by Casey Stubbs on Friday, June 5, 2009

http://www.winnersedgetrading.com/trade-of-the-day/iraqi-dinar-increasing-however-many-challenges-ahead

In 2003 the Iraq war threw the already troubled nation of Iraq into complete chaos. The government was overthrown and there was a complete shutdown of all economic activity. The nation was divided and there was fighting that began against the U.S. forces and fighting that began against each other as different factions could not agree which path the nation should take. As a result the currency was completely removed and became worthless.

When the rebuilding of Iraq began the first step that was taken was to build the Central Bank of Iraq in 2004. The New Iraqi Dinar Bank Note was also issued. The purpose of this was to give the country support to begin rebuilding and every country needs a currency to do international trading. They also were attempting to control inflation stability and implementing the nations reserves. As well as managing the Iraqi Dinar and regulating the private banks.As time has gone on and the difficult periods of fighting have finally began to subside the nation of Iraq is begining to show signs of life. The security is still uncertain but there is substantial improvement.

The economy is starting to grow in several key areas such as real estate, jobs, oil exports, and agriculture. The Iraqi stock market has gained over 30% in the past year and the future is looking bright. The GDP is expected to grow by 7% in 2009 despite continued security problems. The nation has excellent natural resources which if used properly could stimulate more economic growth. The leading resources are oil, natural gas and agriculture.

Even though there are signs that there is upcoming improvement there is also many large challenges facing the Iraqi Economy. The recent drop in oil prices has hurt the economy, however now that oil prices have recovered that is not as much of a concern as before. Another big challenge is imports from neigboring Iran, Iran is importing products much cheaper than the

Iraqi businesses are able and as a result companies are going out of business and the unemployment rate is rising. Other future challenges are the withdrawal of U.S. Troops and the control handed to the Iraqi Security Forces(ISF). There will be a test of ISF when control is handed over. That test could prove to be the turning point for the Iraqi economy. If the security envoirnment continues to improve look for a large increase in the Iraqi Dinar.

If you are considering in speculating on the Iraqi Dinar in the future it is a high risk investment. However it could pay off big with a small investment. The current exchange rate is .0009 to one U.S Dollar. In 2003 it was .00027 and in 2006 it was .00068 so there has been continued increase in the Dinar verses the Dollar in the past 6 years and it should continue to gain.

Iraq Dinar -- The Value Of Iraq Dinar Will Sky Rocket if this happens

http://www.howtobuydinar.org/Iraqi-Dinar.html

Hey if what this entrepruneur is doing in Kurdistan takes off in the rest of the country, look out, the value of the Iraqi Dinar Exchange Rate will sky rocket to the stratosphere. That is if they can solve the power=corruption problem...

Iraq's Kurds Find Prosperity Breeds Distrust
Tensions Churn Over Who Benefits In Economy Dominated by Parties


By Sudarsan RaghavanWashington Post Foreign Service Saturday, March 21, 2009; Page A08

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/20/AR2009032003432.html?hpid=topnews

AKRA, Iraq -- On a hilltop overlooking this small Kurdish town, a sleek $28 million hospital rises like a cutting-edge sculpture. Inside, builder Sabah Melhem admired a European medical scanner gleaming under white fluorescent light. Virtually every room contains state-of-the-art equipment, unlike anywhere else in Iraq. "I hope in every city I can build a hospital like this," Melhem declared. "This is my dream."

Two floors down, it is apparent who helps to turn such dreams into reality: a larger-than-life photo of Kurdish leader Massoud Barzani looms over the entrance, a reminder of how much patronage still prevails in one of Iraq's most stable and developed regions.

Melhem is part of a generation of entrepreneurs driving the economic transformation of Kurdistan, as northern Iraq's Kurdish autonomous region is known. Many Iraqis say that a strong economy that allows sects and ethnic groups to share in the country's wealth is a vital path to stability. But below the surface of Kurdistan's prosperity, tensions are churning over who is benefiting from economic growth. The two ruling Kurdish political parties, America's staunchest allies in Iraq, dominate virtually every aspect of the regional economy, spawning conflicts of interest and corruption, according to Kurdish and U.S. officials.

"They are interfering," said Noshirwan Mustafa, a senior leader of the Patriotic Union of Kurdistan (PUK), the political party led by Iraqi President Jalal Talabani. Investors, Mustafa said, are expected to provide the parties with stakes in businesses. "If you want to contract with the government or with a ministry, you should give a share to the parties," he said.
Mustafa, who recently had a falling out with Talabani, said the PUK and the rival Kurdish Democratic Party (KDP), led by Barzani, each receive $35 million a month as part of the funds transferred to the Kurdistan Regional Government by the central government in Baghdad. "Nobody knows how they spend the money," Mustafa said

Iraq's minister of planning, Ali Baban, said the central government does not monitor how Kurdish authorities spent the 17 percent share of the national budget that Kurdistan receives each year. When asked about Mustafa's assertion that some of the funds go to political parties, Baban said, "If that is true, it would be a violation and a breach of the regulations governing the spending of public funds, but such breaches do exist in most provinces of the country."

According to the 2009 draft budget, the Kurdistan Regional Government will receive roughly $6.2 billion from the central government. The region has two audit boards, each affiliated with one of the two main parties, but Abdulbasit Turki Saeed, the head of the central government's Board of Supreme Audit, said he was discussing with Kurdish authorities how to monitor the funds this year. "Legally, every dinar that was not spent properly concerns us," Saeed said. "But from what actually happens, nothing surprises me. Since the occupation until now we have seen everything."

Kurdish officials denied that the parties receive monthly allocations of central government funds, but they conceded that corruption is a major concern.

"Corruption in Iraq is an old problem. But in Kurdistan it is much less than in other parts of Iraq," said Mullah Baktiar, a PUK spokesman. Falah Mustafa Bakir, a top KDP official, said the regional government's budget is transparent: "We do not deny that there are things happening that should not happen, but we are determined to correct this."

Critics assert that senior leaders of both parties hide their ownership of large companies by funneling tens of millions of dollars through mid-level party members or reliable entrepreneurs.
"The big problem is Talabani's family and Barzani's family," said Kamal Rahim, the editor of Hawlati, the region's largest independent newspaper. "Both families have small groups that they trust. They are running everything for them and dealing for them. Some of the businessmen, they are not even members of the parties."

Mustafa said the PUK owns Nokan, a conglomerate in Sulaymaniyah, the hub of eastern Kurdistan, with interests in construction, trade and food. "Every political party has the right to invest and work to finance themselves. But they are using the PUK influence," he said, referring to Nokan. Mustafa himself owns a media company.
>

Iraqi Dinar Value - What Does The Future Hold?

http://www.howtobuydinar.org/Iraqi-Dinar-Value.html/

Hat Tip to E-Dinar Financial The Best 5 minute Iraqi Dinar News Source on the Planet

The Iraq Central Bank's sales exceeded 2 billion dollars in February
March 04, 2009

The Iraq Central Bank's adviser Mudhir Mohammed Saleh stated with regard to the high volume of sales during last January as "a result for the new contracts being concluded by traders for the importation of various types of goods in the first month of the year as well as the decline in commodity prices globally which urged importers to buy more."

Regarding the reasons for stabilizing exchange rates throughout the month of February he said "because of world prices declining of imported goods, which would give a value of Iraqi dinar against the dollar, even if we did not raise the value."

The sales were distributed on total cash demand of $ 561 million and 600 thousand dollars at the exchange rate 1176 dinars per dollar, which includes the commission of the Central Bank amounting to six dinars per dollar.

While foreign remittances recorded a size of request amounted to one billion and 801 million and 958 thousand dollars, at an exchange rate of 1173 dinars per dollar, inclusive of the Central Bank's commission amounted to three dinars per dollar.

While the daily demand recorded of 124 million and 397 thousand dollars during the 19 sessions were held during February, lower than last December which recorded 179 million and 698 thousand, during 17 sessions.

None of the February's meetings witnessed any offers for selling dollar by the contributing banks in the auction.

The central bank holds an auction of five sessions weekly from Sunday to Thursday for the sale and purchase of foreign currencies, and receives a commission for the cash sale amounted to six dinars per dollar, and a commission of three dinars per dollar for the remittances outside the country.(Source)AlSabah

Iraqi Dinar Value Rising Gradually

Hat tip to edinarfinancial.net...

The Central Bank of Iraq is raising the value of iraqi dinar gradually

January 07, 2009

The Consultant at the Iraqi central bank, Mudhir Mohamed Saleh, said that the bank's policy in its auction for the sale of foreign currencies, focus on stabilizing the exchange rate and strengthen the Iraqi dinar against the dollar, to face inflationary pressures which in our view that the exchange rate the most important. It is the policy of the central bank to raise the value of dinar gradually.

The average daily demand increased last week at 163.8 million dollars, which is higher than the highest rates achieved in the last period, as the third quarter of this year, the rate of 150 million dollars at each session.

The Central Bank of Iraq reduced the interest rate to 14 percent rather than 15 percent. Source(Azaman)

Iraqi Dinar Goes Up and Brings Inflation With it!

Iraqi prices have risen more than 30% so far this year when compared with 2007, the Central Statistics Bureau said in its latest report.

The report said the price hikes for some goods were much greater.

It said this year’s big increases on most commodities have come at a time the local currency has appreciated substantially.

“The exchange rate for the Iraqi dinar vis-à-vis the dollar has firmed. The dollar’s average value has been 1266 dinars this year compared with 1477 last year,” the report said. The sharp rise in annual inflation rate is due to surges in prices of most commodities the bureau includes in its inflationary index.

Fuel prices, it said, have gone up more than 70% this year in a country holding massive oil reserves.

Iraqi oil production has increased but the country’s refining capacity barely meets half of domestic needs estimated at 700,000 barrels a day.

Rents went up by nearly 30% with sharpest increase reporting in transport where prices rocketed more than 70%, the report said.

Pharmaceuticals rose more than 11%, clothes and shoes 8% and food more than 13%.
Analysts are somewhat bewildered as generally a firmer currency curbs inflationary pressure as almost all commodities covered in the bureau’s index are imports.
Iraq imports most of its food, most of its fuel needs and almost all its medical and pharmaceutical supplies.

The hikes are certain to make it increasingly difficult for Iraqis to make ends meet amid lack of security and rampant unemployment.

The government, embroiled in political and factional squabbling and an all out war to quell a murderous insurgency in certain parts of Iraq has no plans in place to quell fears of further hikes

Dinar rises against dollar for third time in a week - Politics & Economics - ArabianBusiness.com

Dinar rises against dollar for third time in a week - Politics & Economics - ArabianBusiness.com: "The dinar will trade around a mid point of 0.27710 per dollar, compared with 0.27720, the central bank said, allowing an appreciation of 0.04%. Kuwait's currency has risen 0.4% since October 23 and is at its highest since June 1988."

Despite its Shortage, Oil is Still the Most Powerful Weapon [Voltaire]

Despite its Shortage, Oil is Still the Most Powerful Weapon [Voltaire]: "Despite its Shortage, Oil is Still the Most Powerful Weapon The German Energy Monitoring Group said that the world’s oil production has reached climax in 2006, adding that it will decline by more than half by the year 2030. The group pointed out that will result in a shortage of production which will be difficult to address although the increasing demand on organic energy, nuclear power, as well as sources of the alternative energy. These results come at a time oil prices have hit new records due to the shortage of supplies, and the tension in the Middle East, and amid news that Russia has started building the first factory for producing the biological fuel in Tataristan province, which is supposed to transform about one million tons of wheat into fuel for cars annually. In taking this step, Russia is following the example of Europe which is very keen on developing the industry of biological fuel as an alternative of oil, but all of that does not deny the fact that oil is still the most powerful weapon in our modern times, and which was present in Rice’s talks on Russia, not only that, but also pushed it to criticize Moscow yesterday for using oil as a political weapon. Expectations of Growth of the Iraqi Economy by 6% This Year The Iraqi Deputy Prime Minister said that his country’s economy is recovering cautiously, pointing out that the international estimates expects the Iraqi economy to achieve a growth rate of 6%. He further said that the Iraqi government has succeeded in controlling the average of inflation to settle at 33% this year, and 16% last month."