Interesting article on the supposed fall of the dollar and the possible replacement by other currencies as the world currency of choice. The Iraqi Dinar could be worth even more than expected.
Globally, the Greenback Remains King
The Wall Street Journal
October 29, 2009
The U.S. dollar, once universally accepted as the world's strongest currency, has been trounced in recent months by everything from the euro to the Brazilian real to the South Korean won. But in the back-alley markets where business is done in many of the world's developing economies, the dollar still reigns.
In jewelry stores in Vietnam, taxicabs in Venezuela and outdoor markets in Nigeria, black-market money-changers say the dollar is still the currency of choice, even though its value has fallen in some cases.
"The U.S. dollar is losing value, but not here in Vietnam," said Vu Manh Quynh, an auto trader who regularly exchanges dong for dollars in the winding streets of Hanoi's Old Quarter. "Vietnamese people still keep U.S. dollars and gold." While the U.S. dollar fetches 17,858 dong on the official rates, the black market rate is closer to 18,600. Hai Duong, a currency trader, said he had 20 or more customers buying U.S. dollars on a recent Wednesday, compared with two customers buying euros.
While their true size is unknown, black markets in currencies are key to greasing the wheels of commerce in countries that have tight currency controls. They provide residents and companies with protection against inflation or a possible devaluation of the local currency, and give companies a source of dollars with which to buy and sell goods abroad. In most countries, the markets are illegal, while in others they are tacitly condoned.
"Typically, dollars are king in the black markets of the world," says Kenneth Rogoff, professor of economics at Harvard University and former chief economist at the International Monetary Fund.
Prof. Rogoff estimates that as much as 75% of U.S. notes in circulation, or more than $600 billion, are held outside the U.S. Most of that is likely in what he calls the underground economy, where transactions are made beyond the oversight of government -- much of which is juiced by the black market.
"This money is not in cash registers, it's not in bank vaults," Prof. Rogoff says.
In the world's official foreign-exchange markets, where turnover totals about $3 trillion each day, according to the Bank for International Settlements, the dollar's luster has diminished. The dollar, for example, has fallen about 6% against the euro this year. The dollar has dropped about 15% against a basket of currencies since early March.
The ballooning U.S. deficit and a move by investors away from the haven of the dollar as world economies recover have sparked worries that the currency may be headed for a years-long swoon. It also has opened the door for renewed questioning of the dollar's future as the world's reserve currency.
For Venezuelans, where the black market plays a crucial role in the financial system, the dollar has retained its status. Residents seeking protection against inflation or a devaluation of the bolivar turn to currency traders. Large companies that need dollars for operations abroad also visit the unregulated market.
View Full Image
Justin Mott for The Wall Street Journal
."Having dollars is like a barricade," says Arnaldo Morales, a cabby who moonlights as a currency trader, buying dollars from travelers as they enter the country, then selling them to Venezuelans.
Mr. Morales says he has been trading dollars since 2003, when President Hugo Chávez imposed a currency peg. Residents can purchase only $2,500 for travel abroad each year at the official rate of 2.15 bolivars.
The economy has become so heavily dependent on the so-called parallel exchange rate for greenbacks that the government was recently forced to intervene after the dollar traded as high as seven bolivars in August. The government is flooding the domestic market with dollars by selling bonds to locals who then trade them abroad for U.S. currency.
"The dollar will always be strong," says Andrea Martinez, a trader who dismissed as temporary the recent decline in the black-market rate. Ms. Martinez operates inside a tiny, nondescript mall where shotgun-carrying private-security guards wearing bulletproof vests watch over rows of pawn shops that serve as a front for dollar traders. On a good day, she says, she still sells as much as $5,000.
In Nigeria, sub-Sahara Africa's second-largest economy, currency traders still deal predominantly in American currency. The black-market traders even have their own trade group, the Association of Bureaux de Change Operators of Nigeria.
"The dollar still has dominance in Nigeria," said Alhaji Farouk Suleman, the president of the group. "The exchange rate might not be good, but you know what you're dealing with and that you can use the dollar anywhere you go. I don't see any real shift towards the pound or euro."
The Nigerian naira, after plummeting late last year and earlier this year, has stabilized against the dollar, thanks to renewed confidence after harsh banking reforms undertaken by a new central bank governor. The dollar was fetching 183 naira in the spring, but now buys about 153 naira.
But the dollar's descent against the world's biggest currencies hasn't gone unnoticed.
On the streets of Mumbai, illegal currency traders that swap wads of cash from bags behind their shops in the bustling back alleys of Colaba, a neighborhood popular with tourists, say business has been slow recently. The dollar's decline has sellers waiting for a rebound and buyers waiting for a better deal.
"Business is way down," says one trader, spitting a stream of red betel-nut juice in the alley behind his shop and wiping his moustache. "People still want to wait." The dollar buys 47 rupees at licensed currency-trading companies and 46.70 rupees on the black market.
And at the Super Rich currency exchange near one of Bangkok's busiest downtown thoroughfares, Thaweesak Kanchanakorn says he and his girlfriend are planning to vacation in the U.S., and that he thought it might be a good idea to invest in dollars now, because they're "cheap." In the long run, "I don't think the U.S. dollar will still be a major currency for reserves anymore," he said. China's yuan "will take its place."
For now, those seeking to exchange bolivars or dong are choosing the U.S. dollar, if only because it remains the most recognizable of the world's currencies.
In Iraq, where legal currency exchanges have become common, the U.S. presence since 2003 has kept up demand for the dollar at the expense of the euro.
Ali Mohammed of the Al Nasir currency-exchange company said that although the world market value of the euro has risen, it is difficult to exchange in Baghdad. And the dollar likely will be Iraq's unofficial second currency for some time to come. The dollar fetched about 1,190 dinars in September, according to central bank figures, little changed from 1,220 dinars at the beginning of 2008.
"It's the only thing used, besides the Iraqi dinar, for commercial business and trade," he said. "As long as it stays pretty stable, we don't mind this."
Carlos Denis, who trades in the Venezuelan mall alongside Ms. Martinez, insists that the dollar is still the only currency that matters. "Take out a dollar bill in the remotest place in world and people will recognize it," he said.
-- Eric Bellman in India, Gina Chon in Iraq and Wilawan Watcharasakwet
in Thailand contributed
to this article.
Showing posts with label iraqi dinar conversion. Show all posts
Showing posts with label iraqi dinar conversion. Show all posts
Sunday, November 22, 2009
Friday, August 21, 2009
Buy Iraqi Dinar - Iraq: Arrests made in ministry truck bombings
Iraq: Arrests made in ministry truck bombings
Story Highlights
Wednesday bombings of Finance, Foreign Affairs ministries killed more than 100
Iraqi official says suspects were arrested two hours after attacks
11 high-ranking security officials from the Iraqi army and police detained,
August 21, 2009 -- Updated 2003 GMT (0403 HKT)
BAGHDAD, Iraq (CNN) -- The Iraqi government said Friday it has arrested members of a cell believed responsible for Wednesday's truck bombings in which more than 100 people were killed.
Workers clear the site outside the ministries of Finance and Foreign Affairs in Baghdad.
Maj. Gen. Qassim Atta, spokesman for Baghdad Operations Command, appeared on Iraqi state television Friday night to announce the arrests, which he said were made within two hours of the bombings in the capital city. Those arrested include people believed to have planned and executed the attacks, Atta said.
It was not immediately clear how many people were arrested.
Initial investigations show a link between the cell and the ousted Baath regime of Saddam Hussein, Atta said. Authorities are also seeking people thought to have provided cell members with logistical support and identification, he said.
Iraq Security Forces recovered a truck Friday with five tons of C-4 explosives in the Abu Ghraib area, on the western outskirts of Baghdad, Atta said Friday night.
More than 500 people were wounded Wednesday in the six explosions in Baghdad.
In one attack, a truck bomb exploded outside the Ministry of Foreign Affairs. The blast blew through the front of the building, sending some vehicles flying and leaving others in mangled twists of metal in the area, which is just outside the restricted International Zone, also known as the Green Zone. Another truck bomb went off outside the Ministry of Finance building.
Authorities said Thursday that 11 high-ranking security officials from the Iraqi army and police were detained for investigation.
The Iraqi government in the past has made claims of arrests that did not hold up. In April, it said it had captured Abu Omar al-Baghdadi, the head of al Qaeda in Iraq's umbrella group, the Islamic State of Iraq. The Islamic State of Iraq denied it, and the capture was never confirmed by the U.S. military.
The explosions made Wednesday the country's deadliest day since the United States pulled its combat troops from Iraqi cities and towns nearly two months ago and left security in the hands of the Iraqis. The U.S. military remains in a training and advisory capacity in those areas and continues to conduct combat operations outside cities and towns.
Iraqi Prime Minister Nuri al-Maliki ordered increased security measures, including more checkpoints and more stringent vehicle searches across the capital, government officials said on Thursday.
The Iraqi government has been trying to restore what it described as normalcy to the streets of the capital in recent weeks. Al-Maliki ordered his government to take down within 40 days the concrete blast walls that line Baghdad's streets and protected neighborhoods at the height of the war. Many Iraqis have criticized the move as premature.
Story Highlights
Wednesday bombings of Finance, Foreign Affairs ministries killed more than 100
Iraqi official says suspects were arrested two hours after attacks
11 high-ranking security officials from the Iraqi army and police detained,
August 21, 2009 -- Updated 2003 GMT (0403 HKT)
BAGHDAD, Iraq (CNN) -- The Iraqi government said Friday it has arrested members of a cell believed responsible for Wednesday's truck bombings in which more than 100 people were killed.
Workers clear the site outside the ministries of Finance and Foreign Affairs in Baghdad.
Maj. Gen. Qassim Atta, spokesman for Baghdad Operations Command, appeared on Iraqi state television Friday night to announce the arrests, which he said were made within two hours of the bombings in the capital city. Those arrested include people believed to have planned and executed the attacks, Atta said.
It was not immediately clear how many people were arrested.
Initial investigations show a link between the cell and the ousted Baath regime of Saddam Hussein, Atta said. Authorities are also seeking people thought to have provided cell members with logistical support and identification, he said.
Iraq Security Forces recovered a truck Friday with five tons of C-4 explosives in the Abu Ghraib area, on the western outskirts of Baghdad, Atta said Friday night.
More than 500 people were wounded Wednesday in the six explosions in Baghdad.
In one attack, a truck bomb exploded outside the Ministry of Foreign Affairs. The blast blew through the front of the building, sending some vehicles flying and leaving others in mangled twists of metal in the area, which is just outside the restricted International Zone, also known as the Green Zone. Another truck bomb went off outside the Ministry of Finance building.
Authorities said Thursday that 11 high-ranking security officials from the Iraqi army and police were detained for investigation.
The Iraqi government in the past has made claims of arrests that did not hold up. In April, it said it had captured Abu Omar al-Baghdadi, the head of al Qaeda in Iraq's umbrella group, the Islamic State of Iraq. The Islamic State of Iraq denied it, and the capture was never confirmed by the U.S. military.
The explosions made Wednesday the country's deadliest day since the United States pulled its combat troops from Iraqi cities and towns nearly two months ago and left security in the hands of the Iraqis. The U.S. military remains in a training and advisory capacity in those areas and continues to conduct combat operations outside cities and towns.
Iraqi Prime Minister Nuri al-Maliki ordered increased security measures, including more checkpoints and more stringent vehicle searches across the capital, government officials said on Thursday.
The Iraqi government has been trying to restore what it described as normalcy to the streets of the capital in recent weeks. Al-Maliki ordered his government to take down within 40 days the concrete blast walls that line Baghdad's streets and protected neighborhoods at the height of the war. Many Iraqis have criticized the move as premature.
Wednesday, July 15, 2009
Iraqi Dinar Exchange Rate - Iraq Getting Back To Normal After US Withdrawl Raises Hopes For Iraqi Dinar Increase
Baghdad getting back to normal after US withdrawal...
From Al Jazeera
It was late Thursday afternoon when my friend Amal called to talk about our weekend plans. For the past several months, we had grown accustomed to 'hanging out' at the bustling shopping centres in my neighbourhood, the Al-Saydiyah district in southwest Baghdad.
But just three years ago, violence and a lack of security in Baghdad and the rest of the country would have made such leisurely activities impossible.
People were unable to leave their homes except to buy food and seek emergency medical attention; the number of government-imposed curfews meant it was unsafe to even cross the street to a pharmacy.
Life was particularly difficult for women who were intimidated by militia groups into wearing long sleeves and head scarves. Men avoided wearing the latest fashions fearing attacks by over-zealous armed groups.
Between 2006 and 2007, Al-Saydiyah turned into a ghost-town as the once-famous shopping district in my neighbourhood shut down.
Despite the kidnappings, executions and bomb attacks it was the summer heat and lack of electricity which proved to be our deadliest enemies.
We were barely able to provide blocks of ice to keep drinking water cold through blazing summer days.
During the night, we escaped the heat by sleeping on the roof of the house but even that came to an abrupt halt when the sound of bullets and shooting would wake us up and we would frantically hurry downstairs carrying our mattress and pillows.
But as security improved in the past year-and-a-half, many residents of Baghdad began to emerge from the darkness, aware that they had survived the violence which nearly tore their capital apart.
My once-volatile neighbourhood is now flourishing slowly day by day with police forces deployed everywhere, inspiring a sense of security and relief.
Illuminating the darkness
The solar-powered street lights in central Baghdad flicker on shortly after sunset, illuminating the darkness that once brought fear to the capital.
These days, sundown is a time to celebrate. Cars jam Karrada Street in central Baghdad as fashionable young Iraqi men and women cruise the streets.
Families burst into clothing shops in the Mansour, Al-Adhamiyah, Baya'a, and Jama'a neighbourhoods, which were once the battlefields between different armed groups.
Tea houses and restaurants now host parties and wedding receptions. Liberal-minded youth seek out a handful of nightclubs and bars scattered around the city.
As security has improved and curfews have eased, Baghdad's once-famous nightlife has slowly re-emerged. It is now a symbol of normal times returning to a city long brutalised by war and still tormented by bombings.
The capital's residents have adopted carpe diem as their daily motto, in contrast to the violence of 2006-2007, when according to one resident "people locked their doors at 4pm and huddled at home".
Abu Nawas Park has been rebuilt and is undergoing renovation and refurbishment. With its flora and colourful benches, it offers Iraqis a pleasant venue to socialise despite the soaring temperatures of summer.
Fast food popularity
Fast food restaurants and snack canteens can now be found throughout Baghdad. One such restaurant is Crispy, which provides western dishes in Al-Wathiq Square. It is usually very crowded throughout the night and has been one of the favourite spots for my friends and I to frequent.
Nightclubs, which were closed in 1994 when Saddam Hussein, the deposed president, tried to woo Islamist support after the first Gulf War, have recently re-opened and are once again holding parties that last well into the pre-dawn hours.
The customers do not seem to care how much money they spend at these establishments, believing the chance to relax and unwind is well worth the cost.
One such place called Bayarat Al-Sham in the Al-Jadriyah district south of Baghdad has been particularly popular in recent months; it was nearly destroyed in the early years of the war but has now been completely remodelled.
Cautious optimism
Many Iraqis celebrated the US withdrawal from their cities. But Iraqis cannot help looking over their shoulders every once in a while. Going out at night carries a sense of optimism as well as apprehension, particularly following the recent upsurge in violence.
A bomb targeting civilians just a few weeks ago killed several people including students who had just finished their final exams and were returning home from Sadr City.
However, the violence has not stalled the constant procession of patrons to restaurants, nightclubs or liquor stores. In the past few decades, through war and strife, Iraqis developed a unique characteristic, learning how to live in heaven and hell simultaneously.
Young Iraqi men and women have also developed new ways to approach the opposite sex. When I was walking home the other day, I saw a young man giving what appeared to be his business card to a young girl.
But it wasn't a business card at all - young Iraqi men have started printing cards with their names and contact details which they then hand over to the young ladies who have caught their fancy.
Suddenly, a gust of air blew the card out of the young man's hand leaving him embarrassed as people stopped and stared. I considered this to be a healthy indication that life was slowly returning to normal in Baghdad.
Surviving the worst
For the most part, many Iraqis believe that Baghdad has survived the worst and are cautiously optimistic about the US withdrawal from the country's urban centres.
Noor Hasan, a 20-year-old medical student, believes that the US military withdrawal is "just a first step toward a better future".
Her father, an engineer in the ministry of industry, urges patience.
"We can't get everything at once. People are belittling this [withdrawal] step on the pretext that Americans are still there in the suburbs, but I believe that they are going to leave the country completely when the right moment comes."
But some believe US forces will always play a central role Iraq.
"They crossed hundreds of thousands of miles, and lost many of their soldiers to occupy Iraq. That withdrawal is only a show, something on paper, and will never materialise into something real," Nadia Abdulraheem, an employee in a health club, told me on June 30 as the US troops began to withdraw from Iraqi cities.
Shopping! I met Amal ten minutes after she called and spent the next three hours going from boutique to boutique trying on the latest imported fashions.
After an exhaustive shopping spree, we decided to take a short break and headed to one of the many cafeterias dotting the Al-Saydiyah district - she had a fruit cocktail and I opted for some ice cream.
By the time I decided to return home, the streets were quickly filling with shoppers and families looking for a cool escape from the summer heat.
Faiza Ali is the pseudonym of a young writer who requested that her real name not be used for fear of repercussions. She is a graduate from the department of linguistics at Baghdad University.
From Al Jazeera
It was late Thursday afternoon when my friend Amal called to talk about our weekend plans. For the past several months, we had grown accustomed to 'hanging out' at the bustling shopping centres in my neighbourhood, the Al-Saydiyah district in southwest Baghdad.
But just three years ago, violence and a lack of security in Baghdad and the rest of the country would have made such leisurely activities impossible.
People were unable to leave their homes except to buy food and seek emergency medical attention; the number of government-imposed curfews meant it was unsafe to even cross the street to a pharmacy.
Life was particularly difficult for women who were intimidated by militia groups into wearing long sleeves and head scarves. Men avoided wearing the latest fashions fearing attacks by over-zealous armed groups.
Between 2006 and 2007, Al-Saydiyah turned into a ghost-town as the once-famous shopping district in my neighbourhood shut down.
Despite the kidnappings, executions and bomb attacks it was the summer heat and lack of electricity which proved to be our deadliest enemies.
We were barely able to provide blocks of ice to keep drinking water cold through blazing summer days.
During the night, we escaped the heat by sleeping on the roof of the house but even that came to an abrupt halt when the sound of bullets and shooting would wake us up and we would frantically hurry downstairs carrying our mattress and pillows.
But as security improved in the past year-and-a-half, many residents of Baghdad began to emerge from the darkness, aware that they had survived the violence which nearly tore their capital apart.
My once-volatile neighbourhood is now flourishing slowly day by day with police forces deployed everywhere, inspiring a sense of security and relief.
Illuminating the darkness
The solar-powered street lights in central Baghdad flicker on shortly after sunset, illuminating the darkness that once brought fear to the capital.
These days, sundown is a time to celebrate. Cars jam Karrada Street in central Baghdad as fashionable young Iraqi men and women cruise the streets.
Families burst into clothing shops in the Mansour, Al-Adhamiyah, Baya'a, and Jama'a neighbourhoods, which were once the battlefields between different armed groups.
Tea houses and restaurants now host parties and wedding receptions. Liberal-minded youth seek out a handful of nightclubs and bars scattered around the city.
As security has improved and curfews have eased, Baghdad's once-famous nightlife has slowly re-emerged. It is now a symbol of normal times returning to a city long brutalised by war and still tormented by bombings.
The capital's residents have adopted carpe diem as their daily motto, in contrast to the violence of 2006-2007, when according to one resident "people locked their doors at 4pm and huddled at home".
Abu Nawas Park has been rebuilt and is undergoing renovation and refurbishment. With its flora and colourful benches, it offers Iraqis a pleasant venue to socialise despite the soaring temperatures of summer.
Fast food popularity
Fast food restaurants and snack canteens can now be found throughout Baghdad. One such restaurant is Crispy, which provides western dishes in Al-Wathiq Square. It is usually very crowded throughout the night and has been one of the favourite spots for my friends and I to frequent.
Nightclubs, which were closed in 1994 when Saddam Hussein, the deposed president, tried to woo Islamist support after the first Gulf War, have recently re-opened and are once again holding parties that last well into the pre-dawn hours.
The customers do not seem to care how much money they spend at these establishments, believing the chance to relax and unwind is well worth the cost.
One such place called Bayarat Al-Sham in the Al-Jadriyah district south of Baghdad has been particularly popular in recent months; it was nearly destroyed in the early years of the war but has now been completely remodelled.
Cautious optimism
Many Iraqis celebrated the US withdrawal from their cities. But Iraqis cannot help looking over their shoulders every once in a while. Going out at night carries a sense of optimism as well as apprehension, particularly following the recent upsurge in violence.
A bomb targeting civilians just a few weeks ago killed several people including students who had just finished their final exams and were returning home from Sadr City.
However, the violence has not stalled the constant procession of patrons to restaurants, nightclubs or liquor stores. In the past few decades, through war and strife, Iraqis developed a unique characteristic, learning how to live in heaven and hell simultaneously.
Young Iraqi men and women have also developed new ways to approach the opposite sex. When I was walking home the other day, I saw a young man giving what appeared to be his business card to a young girl.
But it wasn't a business card at all - young Iraqi men have started printing cards with their names and contact details which they then hand over to the young ladies who have caught their fancy.
Suddenly, a gust of air blew the card out of the young man's hand leaving him embarrassed as people stopped and stared. I considered this to be a healthy indication that life was slowly returning to normal in Baghdad.
Surviving the worst
For the most part, many Iraqis believe that Baghdad has survived the worst and are cautiously optimistic about the US withdrawal from the country's urban centres.
Noor Hasan, a 20-year-old medical student, believes that the US military withdrawal is "just a first step toward a better future".
Her father, an engineer in the ministry of industry, urges patience.
"We can't get everything at once. People are belittling this [withdrawal] step on the pretext that Americans are still there in the suburbs, but I believe that they are going to leave the country completely when the right moment comes."
But some believe US forces will always play a central role Iraq.
"They crossed hundreds of thousands of miles, and lost many of their soldiers to occupy Iraq. That withdrawal is only a show, something on paper, and will never materialise into something real," Nadia Abdulraheem, an employee in a health club, told me on June 30 as the US troops began to withdraw from Iraqi cities.
Shopping! I met Amal ten minutes after she called and spent the next three hours going from boutique to boutique trying on the latest imported fashions.
After an exhaustive shopping spree, we decided to take a short break and headed to one of the many cafeterias dotting the Al-Saydiyah district - she had a fruit cocktail and I opted for some ice cream.
By the time I decided to return home, the streets were quickly filling with shoppers and families looking for a cool escape from the summer heat.
Faiza Ali is the pseudonym of a young writer who requested that her real name not be used for fear of repercussions. She is a graduate from the department of linguistics at Baghdad University.
Monday, April 6, 2009
Iraqi Dinar Value-The Lowest Deaths In The Entire Conflict, Does This Mean The Iraqi Dinar Will Explode In Value?
Does This Mean The Iraqi Dinar Will Explode In Value?
Iraq: U.S. Troop Deaths At Record Low In March
April 1, 2009
Only four U.S. troops were killed by hostile action in Iraq during March - the lowest monthly figure since the invasion in 2003, and down from 11 deaths reported for February, Reuters reported April 1, citing official statistics. The number of Iraqi civilians killed in violence was at 180 for March, a decline from 211 reported in February, according to Iraq's Ministry of Health. The all-time low was recorded in January, with 138 deaths.
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