The Dinar Daily, Tuesday June 2, 2015
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  1. #1

    The Dinar Daily, Tuesday June 2, 2015


    US dollar USD 1166.000 1164.000

    US dollar USD 1166.000 1164.000
    Euro EUR 1276.070 1275.432
    British pound GBP 1773.020 1772.133
    Canadian dollar CAD 929.084 928.619
    Swiss franc CHF 1233.210 1232.593
    Swedish krona SEK 135.988 135.920
    Norwegian krone NOK 146.565 146.492
    Danish krone DKK 171.083 170.998
    Japanese yen JPY 9.388 9.383
    Drawing Rights
    SDR 1618.828 1618.018

    Indicative rates - (as of) 02.06.2015

    Currency Auctions

    Announcement No. (2962 - most recent listing)

    The opening offers the sale and purchase of foreign currency in the window of the Central Bank of Iraq on 01/06/2015 and the results were as follows:

    Number of banks 20
    Number of remittance companies 4
    Auction price selling dinar / US$ 1166
    Auction price buying dinar / US$ -----
    Amount sold at auction price (US$) 289,350,650
    Amount purchased at Auction price (US$) -----
    Total offers for buying (US$) 289,350,650
    Total offers for selling (US$) -----
    Last edited by pinkadonai1; 06-03-2015 at 10:11 AM.

  2. #2

    Re: The Dinar Daily, Tuesday June 2, 2015

    The Exchange Rate of Foreign Currency in Economic Feasibility Studies

    Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

    Estimate the shadow price of foreign currency:

    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.

    The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

    * What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.In particular the following outputs and inputs of foreign currency were distinguished:

    • Export-outputs.
    • Outputs marketed locally that substitute imports.
    • Imported inputs.
    • Inputs produced locally that usually go to exports.
    • Foreign labor.

    According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.

    In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency …. etc.).

    In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

    2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports… etc.

    The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:

    • The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.
    • The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.
    • The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.
    • The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.
    • This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.

    And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.

    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.

    The Republic of Iraq – Ministry of Planning


    A "flashback recap" of a Live Q and A Call from about a year ago - on THE DAILY DINAR NEWS BLOG...

    In general terms – there were three main focal points of interest I wanted to cover and then allow listeners to ask whatever questions they liked.

    1) the SIGR report…

    2) the Gold Article…

    3) the IIER report…

    I started the conversation out last night by highlighting how crazy this campaign being fielded to contact our lawmakers and bank CEO’s and tell them how unfair it is they are getting to exchange (exchange is the right terminology BTW – NOT “CASH-IN”) at 32.00 per Dinar and we are not – is. It is nuts.

    Firstly, “they” are NOT being allowed to exchange “early” – or at 32.00 per Dinar. It makes you sound “stark raving MAD” to be caught saying such things. You would be better off barking at the moon. It is demeaning to the validity of a true currency play.

    Secondly, this is entirely the wrong way to approach them. I pointed out on the call that Poppy and I fielded a very successful such campaign a couple of years ago. However, we sat down and came up with a much different approach. It was designed to get answers and to approach our lawmakers with respect and as their constituents. Not like a bunch of lunatics. We had extraordinary participation (because it made sense) and we received a good response from lawmakers. It started the conversation in a reasonable manner.

    I asked one caller – “when was the last time you asked a banker for money and told him how unfair it was if he didn’t give it to you”??? Obviously – we chuckled…

    Another caller asked me if (as DC had relayed) – the “zero’s were raised” and the lower denominations were in circulation??

    I said plainly “no”…lower denominations being in circulation would (at the very least) imply there had been a value change. If there were no value change the lower denoms would not only be of little value, they would be such a hinderance – people might even throw them away just to get rid of them. So no – no lower denoms. I told the caller to check the website for “real” info on rate change.

    The “zero’s being raised” or “deleted” – as explained by any reasonable researcher, economist or authority – is simply the process removing the large (3 zero notes) from circulation.

    Referring to an Enorrste post from today on
    THE DINAR OBSERVER DAILY(you may want to put this on your favorites and check in several times a day – we to it often )

    “…I have never found a single article from the CBI or the IMF that equates “delete the zeros” to the idea of “move the decimal point.” Instead, the statements overwhelmingly come out to mean “remove the large notes from circulation.”

    Also – this recent internal memo put out by Wells Fargo is likely “push back” from this recent campaign. I pointed out that Pinnacle Bank published an article by an “affiliate” in their internal publication and then “highlighted it” in a similar internal memo a couple of years ago. It is just a defense mechanism. I’m sure Wells is tired of having their name dragged through the “internet rumor mill”. This is highly likely the reason for their vigorous denials about handling it in the future. They get so many useless calls – it isn’t worth the headache. Can you blame them??

    Further, for any bank, lawmaker, adviser or official to state the “Dinar is a scam” is nearly as foolish as some of the internet “Gurus”. It is the official currency of a COUNTRY. I pointed out (below) the post from yesterday’s
    – highlights page 94 of the quarterly SIGR report to THE US CONGRESS in April of 2012…
    __________________________________________________ _____________


    We are seeing and hearing that the inflation rate is still climbing and they are pushing to get us our money?? This report is from page 84 of the massive SIGR report.

    BGG ~
    This is a screen shot from the “Special Inspector General for Iraq Reconstruction” – Apr 2012, quarterly report to Congress. For members of our Government to say they have no idea what is going on here – means they haven’t read some very basic documents presented them.
    __________________________________________________ ______________

    I pointed out (last night) this is a highly speculative investment. We are, in no way, guaranteed anything. However, this SIGR report gives us some valuable insights…

    1) This is information given to the US CONGRESS on a quarterly basis… I find it hard to believe such an information source would intentionally mislead Congress. They tend to frown on such behavior. Which goes directly to the validity of this adventure – against all advice from Wells Fargo or other such naysayers.

    2) It points out there having been a legitimate “plan” – or time frame in motion…having been projected to be done in 2013. We are obviously in “over time” now.

    3) It gives us an idea as to who is in charge…the CoM – or Council of Ministers. Who do they answer to?? Maliki. Period. When is he likely to push this forward?? Historically – he has been a “weak Dinar” policy advocate. However, rumor from his own inner circle admits he can’t win a third term in office without some currency reform.

    I fully expect him to use every tool in his “wheel house” to win – his recent moves in Anbar and the disputed territories prove as much. Currency reform has to be a “biggie”. Though this WAS their thinking a couple of months ago – there is no promise it is still part of their political calculus. We shall see.

    4) Though no guarantee of the actual future plan they wind up engaging – this report points out an increase in value that would have taken the Dinar from “one-tenth of a cent” to a value “of slightly less than $1″..

    __________________________________________________ ______________


    Coins put on the market !!

    Nora Albjara member of the committee of economy and investment in the House of Representatives revealed that the central bank completed its preparations for the issuance of metal coins of seven small groups, in conjunction with the implementation of the project to delete the three zeroes from the paper currency is currently in circulation.

    She said in her statement Albjara "The project will take between four and five years, and which will be the launch of the categories of small coins gradually."

    He predicted the financial expert Hilal Taan inflation rate declines, with the issuance of metal coins of small denominations in the daily financial transactions, remarkable that 3% of the value of inflation in Iraq due to the presence of large cash block.

    The economic expert on behalf of Jamil Anton, noted that he may not find metal coins accepted by a lot of Iraqis, especially young people, due to the existence of an entire generation of Iraqis had not trading coins due to stop use since the early nineties of the twentieth century


    CBI is preparing to issue a monetary metal parts

    Metal coins from the category of 25 fils were in circulation until the nineties of the last century

    Nora Albjara member of the committee of economy and investment in the House of Representatives revealed that the central bank completed its preparations for the issuance of metal coins of seven small groups, in conjunction with the implementation of the project to delete the three zeroes from the paper currency is currently in circulation.

    She said in her statement Albjara Radio Free Iraq, "said the project will take between four and five years, and which will be the launch of the categories of small coins gradually."

    He predicted the financial expert Hilal Taan inflation rate declines, with the issuance of metal coins of small denominations in the daily financial transactions, remarkable that 3% of the value of inflation in Iraq due to the presence of large cash block.

    The economic expert on behalf of Jamil Anton, noted that he may not find coins accepted by a lot of Iraqis, especially young people, due to the existence of an entire generation of Iraqis had not trading coins due to stop use since the early nineties of the twentieth century.


    Another "FLASHBACK"...

    Economists Divided Over Deletion Of Zeros

    By Amina al-Dahabi for Al-Monitor.

    The Central Bank of Iraq (CBI) has been attempting to delete three zeros from the Iraqi currency since 2003. This project has raised many concerns among the Iraqi public and within the business community, and Iraqi economists are divided…

    …Haider al-Abadi, the head of the Iraqi parliamentary Finance Committee, told Al-Monitor that while deleting zeros from the current currency is possible, this has been postponed until after parliamentary elections. He noted that studies are being carried out to ensure that, following the currency change, counterfeiting is limited and that Iraqis don’t go back to trading in the old currency.

    The step to delete zeros from the currency has been postponed several times, leading the parliamentary Economic Committee to demand that the CBI accelerate this project, as Al-Sharqiya reported. In a news conference held July 6, the Economic Committee confirmed that the deletion of zeros will lead to an increase in the value of the Iraqi dinar and will have positive repercussions, including a reduction in unemployment and poverty rates in the country.


    Crush Expected When Kuwaiti Banks Reopen Today

    March 24, 1991|From Reuters

    KUWAIT CITY, Kuwait — Thousands of Kuwaitis are expected to jam the country's banks today when they open for the first time since the end of the Iraqi occupation.

    Customers will be allowed to withdraw funds and to swap pre-invasion money for a new currency issued to make more than $1 billion in pre-invasion dinars stolen by the Iraqis worthless.

    "We expect a rush of people," said Issam Asousi, an executive with the Bank of Kuwait. He said it could be a chaotic first week because customers have a lot of questions about their accounts.

    Kuwaiti banks continued operating during the seven-month Iraqi occupation under managers brought in from Iraq, but they have been closed since the U.S.-led alliance ousted the Iraqi army from Kuwait a month ago.

    When the banks reopen today, customers will be able to withdraw up to 4,000 Kuwaiti dinars, equivalent to about $14,000 at pre-invasion exchange rates from their accounts, and to exchange a like amount for foreign currency.

    Balances of customers' accounts will go back to what they were on Aug. 1, a day before the invasion.

    Clients will not be able to exchange Iraqi currency issued during the occupation, when Baghdad pegged the rates of the strong Kuwaiti dinar to the far less valuable Iraqi dinar.

    The new Kuwaiti money will be exchanged for old at a one-to-one rate.

    BGG ~ Thanks to wmawhite for some facts on the subject.

    Hi BGG,

    Just thought I would drop you an email. I listened to the call, and was interested in what was said about Kuwait, if I may - I will add my 2 cents worth.

    You were spot on with what you said, I have a close friend who's father made a killing on the KWD. He bought from people who had fled the country and he paid pennies on the dollar (we are in Australia). He took the chance that Iraq would be kicked back out and he was right.

    When the money was reinstated, he exchanged it for AUD at a rate in the mid 3s. The interesting thing about it is, Iraq invaded in November 1990 (I think), they were kicked back out at the end of Feb 1991, the banks reopened with a brand new KWD in late March, that's not a bad time frame to get a currency designed, printed and made ready to use, also the time that the old KWD was valid was initially only for 2 months, then extended to 6, so it was valid until Sept 1991, interesting I think.

    Also the other thing that seems to be a "fact" in Dinar land is Bill Clinton used the Kuwait RV to pay off the debt. However, Clinton was not President in 91, he did not take office until 93, even I know that and I am an Aussie.

    Anyway thanks for the site and enjoy listening to your calls.

    Kind Regards,

  3. #3

    Re: The Dinar Daily, Tuesday June 2, 2015

    Iran issues a clarification on the death of its advisors in ISIS attack in Iraq
    Tuesday, 02 June 2015 13:59

    Shafaq News / Ambassador of Iran to Baghdad, Hassan Danaii Fer denied what some of the Western media said on the death of 15 Iranian military advisers

    during an attack of ISIS terrorists on Monday in Iraq.

    Danaii said according to IRNA official news agency that “ this news is misleading and incorrect to accuse Iran of interfering in Iraq.

    A security source in Salahuddin province has said on Monday, that about 80 people were casualties in the initial toll of the explosion of a tank bomb driven by a suicide bomber on as ammunition hardware in al- Thar Thar area west of Samarra city.

    Some of Arab and Western media, said that among those killed were Iranian advisers helping the Iraqi forces and the Popular Mobilization Units in the war they are waging against ISIS.


  4. #4

    Re: The Dinar Daily, Tuesday June 2, 2015

    Kurdish Islamist party’s headquarters exposed to an armed attack in Tuz Khurmato
    Tuesday, 02 June 2015 13:45

    Shafaq News / The headquarters of the Kurdish Islamist group in Tuz Khurmato district in Salahuddin province

    was exposed on Tuesday, to an armed attack by bombs and automatic weapons.

    A security source told Shafaq News, that the headquarters of the Islamic group was attacked by unidentified gunmen, adding that the attackers threw hand grenades then opened fires shots directed towards the headquarters.

    He added that the building's guards responded to the attackers, noting that the attackers were forced to flee.

    He said that the attack did not result in any loss in lives.

    Tuz Khurmato district is witnessing political conflicts between the forces that represent the three main components in the city ; Kurds, Arabs and Turkmen reflected the security reality on the opinion of political observers, as a result of the exploitation of terrorists for this situation and targeting of public sites , markets security and party headquarters.

    Tuz Khurmato is of the disputed areas between Baghdad and Erbil, and is covered by article 140 of the constitution.’s-headquarters-exposed-to-an-armed-attack-in-tuz-khurmato.html

  5. #5

    Re: The Dinar Daily, Tuesday June 2, 2015

    The international meeting starts in Paris to discuss countering terrorism
    Tuesday, 02 June 2015 13:36

    Shafaq News/ The meeting of Foreign Ministers of the international coalition against the Islamic state has started in Paris.

    US official confirmed that Baghdad plan to retake control of Ramadi city in Anbar province will be the focus of the meeting, while Iraqi Prime Minister , Haider al-Abadi and Parliament Speaker Salim al – Jubouri believes that the raids of the coalition did not achieve its objectives so far.

    It was scheduled for French Foreign Minister , Laurent Fabius and his U.S. counterpart , John Kerry and Al-Abadi to preside the meeting but Kerry injury of a broken hip after falling from a bicycle will prevent him from attending to just follow-up only the course of the meeting.

    The French government spokesman , Stephane Le Foll had said earlier that the international conference will be held today in Paris on the situation in Syria and Iraq due to the deteriorating situation in the two countries. It is due to be attended by 24 ministers and representatives of international organizations.

  6. #6

    Re: The Dinar Daily, Tuesday June 2, 2015

    Kurdistan dissatisfied from not being invited to Paris conference: Baghdad behave individuality
    Tuesday, 02 June 2015 12:46

    Shafaq News / Kurdistan Regional Government (KRG) expressed on Tuesday, its dissatisfaction for not being invited to participate in Paris Conference

    despite being involved in the war against ISIS for about a year.

    A statement from the Department of Foreign Relations of KRG received by Shafaq News, said that KRG and after the previous conferences were expecting from the Federal Government of Iraq and the international community to respect for the victims of Kurdistan people and victories of Peshmarga forces, noting that it was waiting to be considered after harboring more than a million and a half displaced persons and refugees.

    The statement added that the federal government did not invite KRG this time for this conference and participated alone at Paris Conference.

    The statement said that attempts by KRG with the Federal Ministry of Foreign Affairs and the Office of the Federal Prime Minister of Iraq are unresolved matter, pointing out that the effective power facing ISIS terrorists directly are Peshmarga forces.

    The statement stressed that Kurdistan Region is a single region in Federal Iraq and see that it is a normal right for it to have a representative to participate in this conference to express Kurdistan’s positions and policies, pointing out that this is a constitutional right in accordance with Article 105 of the permanent Iraqi constitution for the International participations to be equal.

    The French capital Paris is holding a conference on Tuesday of the international coalition to fight “ISIS “ and it is expected for the coalition to review its strategy in Iraq and Syria after the progress made by the terrorist organization in the past few weeks.

  7. #7

    Re: The Dinar Daily, Tuesday June 2, 2015

    Abadi discusses with Australian Secretary of State Field developments in the war against ISIS
    Tuesday, 02 June 2015 12:36

    Shafaq News / Prime Minister ,Haider al-Abadi discussed on Tuesday, with Australian Australian Secretary of State, Julie Bishop , the field developments

    in the war against ISIS m training and equipping the Iraqi forces.

    According to a statement issued by Abadi’s Office , the latter met Bishop at his residence in the French capital Paris.

    The statement said that during the meeting, they discussed strengthening bilateral relations between the two countries , fight the terrorist gangs and the threat on Iraq , the region and the world as well as the importance of increasing international effort to eliminate it.

    The statement added that he discussed developments on the ground in the war being waged by our heroine forces against ISIS gangs in addition to training and equipping Iraqi security forces.

    Abadi has arrived earlier Tuesday to the French capital Paris to attend the ministers of the international coalition’s meeting led by the United States against ISIS terrorist organization in Iraq and Syria.

  8. #8

    Re: The Dinar Daily, Tuesday June 2, 2015

    "CIA" in Kurdish
    Tuesday, 02 June 2015 12:05

    Shafaq News / The Central Intelligence Agency "CIA" site listed the Kurdish language as one of the approved languages to provide its information.

    CIA adopted previously languages as ​​English, French, Spanish, Russian, Arabic, Turkish, Chinese and Japanese.

    Political science professor , Ahmed Bayezid told Shafaq News, that Kurdistan region and the Kurdish language has a special status, especially for its role in the region and its impact on ISIS war.

    "I am personally not surprised of adding Kurdish language as an CIA official language in its site, although it is a very important subject."

    The CIA is one of the main agencies to collect intelligence in the United States federal government. The agency's headquarters in Langley is located in Fairfax County Virginia along the Potomac River.

    Its Staff work in the embassies of the United States and several other regions around the world works. Being the only independent US intelligence agency that submits its report to the Director of National Intelligence.

    The CIA has three main activities, collecting information about foreign governments, companies and individuals; analysis of that information along with information gathered by other US intelligence agencies and assess information related to national security and present them to senior US policy makers; at the request of the President of the United States , the Agency carried out or supervise secret activities and some tactical operations by its employees, American army, or other partners.

  9. #9

    Re: The Dinar Daily, Tuesday June 2, 2015

    Low water levels after ISIS closed all gates of Ramadi dam
    Tuesday, 02 June 2015 11:55

    Shafaq News / ISIS organization has closed all the gates of Ramadi dam which resulted in the scarcity of water in al- Habbaniyah and al-Khalidiya and low water levels

    , The Head of Anbar provincial council , Sabah Karhot said on Tuesday morning.

    “The organization is trying to kill all aspects of life in the province and everyone must intervene to end it presence and actions, Karhot added.

  10. #10
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    Re: The Dinar Daily, Tuesday June 2, 2015

    Parliamentary Finance outweigh lower demand for the dollar with a new currency issuance

    June 2, 2015

    BAGHDAD / Center Brief for the Iraqi Media Network (IMN) - the parliamentary finance committee suggested reduced demand for the dollar in the Iraqi market with the release of the new category of the local currency, noting that the central bank reduced sales led to increased demand and lifted the dollar exchange rate against the dinar.

    Central Bank of Iraq and the process and intends to issue new paper from the category of 50 thousand dinars and 100 thousand dinars not to grudge measures aimed to revive the local market chain.

    The committee member said Jabbar Abdul-Khaliq's (IMN) "The forecasts indicate lower demand for the dollar in the domestic market with the start of trading the new category of local currency," adding that "the growing demand for the dollar has caused a decline in the dinar exchange rate."

    Abdul-Khaliq said that "the increasing demand for the dollar with reducing the supply of it in accordance with procedures and instructions of the Central Bank of the federal budget caused by increasing dollar exchange rates against the Iraqi dinar."

    He said the Central Bank of Iraq last Saturday, he said that the 18 banks they started the adoption of a fixed selling price per dollar B1193 dinars in order to re-stabilize the exchange rate in the domestic market.

    And I saw the Iraqi dinar exchange rate against the dollar decline after the record per dollar exchange rate 1330 dinars over the past two weeks.

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