Buying Iraqi Dinar - Beware of ads promising big return on Iraq's currency

I love these Kinds of stories, if you are one of these people who thinks that if you plop down 300 bucks you will have $300,000 next week, get real. In the short time I have had mine it has gone up 40%. The big pay off may come years later after rebuilding. You can still get it relatively cheap, it may not always be so. A coin shop owner is their currency expert? Right...





Go ask a desert storm veteran who heard about buyinf Kuwaiti Dinar and listened to the doom sayers who said it was a scam.

-I've talked to a few, they sound pretty regretful to me...


Beware of ads promising big return on Iraq's currency

Reported by: Joe Ducey

Email: jducey@abc15.com

Produced by: Quita Jackson

Last Update: 8/21 8:06 pm

As Iraq becomes more and more stable, more people are investing in their currency, the Dinar. Some ads claim you may be able to double or triple your money in a just a few weeks if you buy right now. So is it worth considering?

Look online and you'll find dozens of vendors selling the Dinar.

They are so cheap -- more than a thousand to one dollar -- Americans are snatching them up.

"My business partner's friend gave us a tip that the Iraqi money would be converted into American money and when that happened the Iraqi money would soar in value," says Michael Loos.


He says it sounded too good to pass up. So Loos invested a modest $268. But a few weeks later, when he checked the value, it was down to $216.50.

Fred Hammond owns a coin shop. He says he's not surprised.

"I've had a couple of people ask me about that and I don’t give them a very pretty picture," says Hammond. He says its hard to make money trading foreign currency.


While the Iraqi Dinar currently has gone up, vendors can charge up to 50 percent commission. Even banks charge currency transaction fees and without significant appreciation, you will lose money buying and selling back.


If you decide to buy, do it through a legitimate US-based financial institution, never a company based outside the US.

Copyright 2009 The E.W. Scripps Co. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

New Iraqi Dinar - Explosives expert 'blows a fuse' on bomber release

Off topic I know, but just in case you were wondering what a complete travesty looked like...

Explosives expert 'blows a fuse' on bomber release


Charles Compton (2009-08-21)


FRANKFORT, KY (wkms) - Thursday's release of the only person convicted in the bombing of Pan Am flight 103 outrages explosives expert Tom Thurman. In 1988, Thurman was among the Americans in Lockerbie, Scotland to investigate the bombing.


The Kentuckian says freeing Abdel Baset al-Megrahi is "a travesty." Kentucky Public Radio's Charles Compton has more Tom Thurman spent Christmas Eve, 1988 hiking the picturesque hills of Scotland. However, the scene was not reminiscent of a Christmas card. A few days earlier, on December 21st, a Boeing 747 exploded 31-thousand feet above Lockerbie.


Thurman: "That's where the wing had hit the ground, exploded, killing people on the ground, creating a huge firestorm, a lot of houses were burned. Looked like it had been actually a bombing raid, from an airplane, dropping bombs and destroying part of the city." As an FBI explosives expert, Thurman was among the investigators sent to Scotland by the National Transportation Safety Board. He spent two days hiking the crash site because every available aircraft was at work transporting the bodies of 270 people


Thurman: "You may look in a field, and let's say, there's only a row of seats laying in the field. That's it. That's all that you could see in one look until you walk over the next little hill and there's some more debris, and then you walk over the next hill and there's a little bit more debris until you get to a high, a plateau and then you can see a line of debris. Not a lot. Just a piece here, a piece there, a piece there." Investigators were collecting wreckage. Thurman says debris was spread out of 845 square miles. Eventually, they gathered enough to reconstruct the jetliner. The recovered debris proved decisive.


Within a few days, Thurman was presented with a piece of wreckage which showed all the earmarks of a bomb. Thurman: "On the 24th, that was in fact determined, and it was a piece of metal. And, say okay, where did this piece of metal come from? In the beginning of working back. It was determined that piece of metal came from a baggage container a baggage pod that was in the belly of the plane." Through the reconstruction, they pinpointed explosion's source. The bomb was inside luggage which originated on the Mediterranean island of Malta. They even found fragments of pants which investigators traced to a clothing store on Malta. It was a salesman there named Tony who identified the purchaser as Abdel Baset al-Megrahi.


Thurman: "Tony says, and I'll paraphrase, I remember someone coming in here and I'm certain that he bought this type of pants. And it appeared to me that he was just buying clothes to fill a suitcase and that was his exact words."


Megrahi was an intelligence officer working for the Libyan government. In the end, he was the only person convicted in the murders of 270 people. In a diplomatic deal with Libya, he was extradited along with an alleged accomplice who was not convicted.


In Thurman's opinion, it was clearly state-sponsored terrorism and he's frustrated many culprits escaped justice. As for Megrahi, he may be dying of prostate cancer, but, Thurman strongly feels he still belongs in jail. Mostly, though, he sympathizes with the people who lost loved ones in the terror attack . Thurman: "I can't even imagine the anguish that they're going through on this day. And I am sure that they're reliving today, the day that they were told that their loved ones were dead. It's starting all over again." With Megrahi now home in Libya. As for the survivors, Thurman says there is no longer closure there is no moving on.

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 Exchange Rates-Iraq Has Turned A Corner Toward National Revival

It Sounds Like Iraq Is Really Starting to Come Around, Now Maybe Iraqi Dinar Will

Hat Tip To Ken Kuhn and http://www.dealorbuydinar.com

16 April 2009

Iraq has turned a corner toward national revival. A restored and pacified Iraq is determined to regain its proper place in the Middle East and on the international scene. This is the optimistic message which Vice President Adil Abd Al-Mahdi brought this week to France - a country which he sees as a major partner in the reconstruction of Iraq after three decades of devastating wars.Iraq is courting France and is, in turn, being courted by it. Contracts worth many billions of euros are being negotiated, essentially in the fields of oil, security and infrastructure.

President Nicolas Sarkozy is anxious for France to gain a privileged position in Iraq, while Iraq sees its growing links with France as a way to diversify its international relations and lessen its dependence on the United States.Dr Abd Al-Mahdi, a French-trained economist and former Finance Minister, is a weighty figure in Iraqi politics. He is a leading member of the Islamic Supreme Council of Iraq (ISCI), headed by Abd Al-Aziz Al-Hakim.

This Iran-backed Shi'ite party is linked with Prime Minister Nuri Al-Maliki's Islamic Dawa Party in a grouping called the United Iraqi Alliance - in effect Iraq's ruling party. Dr Abd Al-Mahdi and Nuri Al-Maliki are allies (although they are also, it must be said, political rivals.) Nuri Al-Maliki is due in Paris next month to take the partnership with the French a step further.France's Total seems to have gained a head start over other international oil companies in developing Iraq's vast oil and gas reserves. It is negotiating some major concessions.

A French company has signed a contract with the Municipality of Baghdad for a water purification scheme worth nearly a billion dollars. A French consulting firm is designing a system to secure Iraq's borders. Its implementation is said to be worth another billion dollars. Eurocopter is to sell Iraq 24 helicopters for $500m. These are only among the first of many such contracts under negotiation.What picture of present-day Iraq does Dr Abd Al-Mahdi provide? It is of a country firmly on the way to national reconciliation and revival, a country that has, to a large extent, quelled an armed insurgency and greatly reduced the bitter sectarian killings of recent years.

Defeating the insurgency - especially in the key province of Al-Anbar - was accomplished thanks to the 'surge' in American troops, to a strengthened national army, and more particularly to the Sahwa militia or Sons of Iraq, an American-funded volunteer force made up of former Sunni insurgents. It was largely responsible for driving Al-Qaeda out of Al-Anbar. This, Dr Al-Mahdi said in Paris this week, was a decisive turning point in the struggle against terror.But dealing with a disbanded Sahwa - at one time nearly 100,000 strong - has not been easy. Attempts are being made to integrate its former members into the national security forces and other government departments.

A budget of $350m has been earmarked this year to pay their salaries. But some violent groups, operating under the Sahwa banner, have turned to crime. The recent arrest of a former Sahwa leader, Adil Mashhadani, said to be running a protection racket, triggered an outbreak of violence.Although greatly improved, security in Iraq is clearly not yet fully restored. Suicide bombers continue to claim their victims. But the social tissue of the country is being reconstituted. Iraq is being put together on a new basis of national reconciliation, democracy, federalism and fraternity with its neighbours - in particular with Iran, Turkey and Syria.Dr Al-Mahdi went out of his way to praise Turkey's 'very positive role' in Iraq, describing it as a major partner in the reconstruction of the country.

Turkish investments in Iraq total nearly $5bn, he said. Since the news from Iraq has been bad for a very long time, Dr Al-Mahdi's fairly upbeat assessment comes as a relief. A briefing this week by him and his team served to pinpoint a number of national priorities.Iraq is unique in the world in having more than 50 oilfields ready for development. It is urgently looking for foreign investment in its oil and gas industry, but also in every aspect of its smashed infrastructure. Iraq has external debts of $148bn, and is continuing to pay compensation to Kuwait for its 1990 invasion, to the tune of 5 per cent of Iraq's oil income, or $1.5bn a year.

To rebuild an educated elite, devastated by the flight of much of Iraq's middle class, the government is planning to send abroad 10,000 students a year for the next five years. Chosen strictly on merit, they will go to the UK, the U.S., France, Canada and Australia for higher education.Arabised by Saddam Hussein but claimed by the Kurds, the oil-rich region of Kirkuk is a possible future flashpoint. A compromise is being sought with the Kurdistan Regional Government - either in the form of a condominium or some sort of shared authority over Kirkuk. Staffan de Mistura, the energetic special representative in Iraq of the UN Secretary General, is heavily involved in the search for a solution.One surprise announcement is that Iraq and Iran are renegotiating the Algiers accord reached between Saddam Hussein and the Shah of Iran in 1975. The agreement - which Saddam tore up five years later when he launched his attack on Iran -- demarcated the disputed river boundary between the two neighbours according to the thalweg line in the middle of the Shatt Al-Arab waterway.

Iraq now claims that the boundary needs to be redrawn closer to the Iranian shore because of changes in the course of the Shatt. The fact that the Maliki government has chosen to raise this contentious issue with its close ally Iran is itself a signal that Iraqi national interests are being reasserted.One way and another, a revived and ambitious Iraq is putting the horrors of the past 30 years behind. It can be safely predicted that it will, in the not too distant future, be once again a power to be reckoned with.

By Patrick Seale © The Saudi Gazette 2009

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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.
>

Iraqis Are Fixing Their Own Infrastructure Using Iraqi Dinar.

Is it time to get out? And if we do what will it look like?

Hat Tip To Edinar Financial...

1.1 Billion iraqi dinar for repairing the oldest water pipelines in Karbala
February 02, 2009

The governor of Kerbala, Aqil al-Khazali said "a local company began implementing a project to replace damaged parts of the drinking water pipelines between Karbala and Ain al-Tamur district (85 km west of the city of Karbala)," adding that the cost of the project, "amounted to 1.1 billion iraq dinars, and will include the distance of three kilometers in the restricted area between Al-Tar and the village of Al-Zkarit, and it will be implemented within six months."

Al-Khazaali added that the pipeline which is being fixed, "is one of the oldest water systems in the province, it has been implemented in the sixties of last century, and was a subject to damage and perforation due to the punches made by citizens of these areas to get more water," indicating that "the new pipeline, will be the kind of Ductile and 600 mm of diameter."

The city of Karbala, is 110 km to the south-west of the capital Baghdad.

(Source)Aswat Iraq

UAE Daily News - Your No.1 source of United Arab Emirates news - Iraqi Central Bank bans selling dollars in daily auction

Dollar Sales halted in Iraq, Appreciation of Dinar sited as key goal of Iraqi Administration.

UAE Daily News - Your No.1 source of United Arab Emirates news - Iraqi Central Bank bans selling dollars in daily auction: "BAGHDAD -- The Iraqi Central Bank ceased suddenly on Wednesday selling dollars in its daily auction to both public and privately-owned banks.

The ban on selling dollars will be in effect until further notice, said a source at the Central Bank.

Prior to this decision, the central bank had registered low demand for dollars reaching only USD 74 million, compared to USD 121 million the bank sold at an earlier auction recently.

Money changers in Baghdad noted that the dollar exchange rate spiked from 1118 Iraqi dinars to the dollar to 1120 dinars and expected a further rise later, though many of them could not link that to the financial crisis that is gripping the world currently.

The exchange rate is sensitive to external factors that affect prices of commodities which in turn raise the rate of inflation, a situation that can only be corrected by strengthening the value of the Iraqi dinar and that is an aspiration that is very much desirable, said an official at the Central Bank The Central Bank runs five auction sessions a week where foreign currency is bought and sold."

Iraqi officials say thousands of refugees return home - CNN.com

Is the start of a turning point in Iraq? And what are the implication for the Iraqi Dinar?

Iraqi officials say thousands of refugees return home - CNN.com: " BAGHDAD, Iraq (CNN) -- Some 46,000 Iraqi refugees returned to their war-torn country last month, a sign of hope that the massive population flight since the 2003 U.S. invasion could be reversed, an Iraqi commander said Wednesday."

John B. Taylor - The Empty Chair at the Iraq Hearings - washingtonpost.com

John B. Taylor - The Empty Chair at the Iraq Hearings - washingtonpost.com: "We have been working with Iraqi economic officials, including the governor of the Central Bank of Iraq. He has a very tough job conducting monetary policy, perhaps tougher than the chairman of the Federal Reserve Board has here in the United States, even with our current market turmoil. I am happy to report that the central bank has implemented the recommendations of the Baker-Hamilton commission in this area. It has raised the interest rate all the way to 20 percent to control inflation, and through such actions the inflation rate has come down sharply. The new Iraqi dinar, which was introduced in 2003, has proved popular and has appreciated nicely in the past year. The Central Bank of Iraq now has $21 billion in reserves, many times more than it had just after Saddam Hussein stole a billion dollars from its vaults in March 2003. This summer the Baghdad Stock Exchange opened to foreign investors, rose 85 percent in July and held its own in August. As the closely watched Grant's Interest Rate Observer noted Sept. 7, 'Iraq has turned into a capital magnet. . . . Money is sometimes misinformed, but it is never insincere. Something is afoot in Iraq.' So there are measurable signs of economic and financial progress. "

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."

US urges Iran to join Iraq talks

It is about time that these kind of regional talks occur over the situation in Iraq. Well I guess four years late is better than never.

US urges Iran to join Iraq talks

By FT reporters
Published: April 22 2007 22:21 Last updated: April 22 2007 22:21

Condoleezza Rice is urging Iran to join her at a high-level conference on the future of Iraq next week, signalling that Washington is now ready for a serious exchange of views with Tehran after several months of resisting Iran’s advances in the region.

In an interview with the Financial Times, the US secretary of state said it would be a “missed opportunity” if Manouchehr Mottaki, Iran’s foreign minister, did not attend the minister-level meeting to be hosted by Egypt.
Ms Rice denied that the Bush administration’s Iran policy had ever been directed at regime change, insisting that the aim was to “have a change in regime behaviour”.

Washington’s need to secure the right regional environment for its eventual withdrawal from Iraq is growing ever more acute as its “surge” of extra troops is failing to contain the violence.

Last Wednesday alone nearly 200 people died in bombings, and on Sunday 17 Iraqis were killed.
That “hostile forces” would respond to the US security plan was to be expected, Ms Rice said, blaming al Qaeda, not Iran, for the suicide bombings. She said two more US brigades were still to be deployed, adding the US needed “a little time” to judge the “trend lines”.

Ms Rice’s attempts to draw Iran into the conference – which will include Iraq’s neighbours as well as the permanent members of the UN security council and the G8 industrialised nations – contrasted with her previous resistance to such talks.

Since then there had been a “rebalancing”, she said, particularly after President George W. Bush’s speech on January 10 announcing the extra troops and a more aggressive response to Iran’s perceived role in arming and training Iraqi Shia militia.

Analysts said it remained to be seen whether the US had achieved what Robert Gates, the defence secretary, said in January was the “leverage” it needed before engaging Iran.

Iran says it will decide on its attendance at the May 3-4 conference after meeting Hoshyar Zebari, Iraq’s foreign minister, this week. Iran’s foreign ministry spokesman on Sunday noted a “softening” in Ms Rice’s rhetoric. But he added that any “shift” should be put into practice.

Reporting by Guy Dinmore, Lionel Barber and Ed Luce in Washington and Najmeh Bozorgmehr in Tehran
Copyright The Financial Times Limited 2007