The Iraqi dinar is the official currency of Iraq. The nation stays largely isolated from global financial markets. The nation has no real sovereign credit, there is small need for its money which stays thinly traded. All Iraqi property, including its money are viewed as currently being a very great financial risk. The Iraqi dinar value, or the Iraqi dinar exchange rate, is effectively determined through the central bank through it's US currency auctions. The Iraq dinar was initially launched in 1932 when Iraq grew to become independent from British rule. The dinar changed the Indian rupee that had been launched by the British following winning control of Iraq from Turkey in WWI. The Iraqi dinar continues to be a managed or controlled currency throughout its existence.
Initially, when it was first placed into circulation, the Iraqi dinar was pegged towards the British pound. By 1959 Iraqi nationwide wealth had proved to be more and more coupled with oil. Oil was priced and traded globally in terms from the US currency, so the Iraqi currency peg was altered within the path of the US dollar and stays so today. After the initial US Gulf Struggle and the imposition of UN financial sanctions, financial conditions inside Iraq worsened sharply. By 1993, inflation had rocketed to an amazing yearly rate of more than 1000 percent, unemployment was at a massive fifty percent and also the Iraqi dinar exchange rate dropped considerably. Throughout 1994, it required about 2,500 dinars to buy one US dollar. To help the dinar, numerous measures had been launched in 1996 such as new regulations allowing Iraqi citizens to own overseas money financial institution accounts.
Following the 2nd Gulf War, new preparations had been created to take effect on 15 October 2003 to issue a new Iraqi dinar and to manage the Iraqi dinar exchange rate. Since those new arrangements have been launched, the Iraqi dinar value has steadily increased. The current exchange rate is 1,170 dinars for 1 US dollar. Figures published through the Central Intelligence Agency (CIA) in its World Fact Book display the number of Iraqi dinars needed to purchase 1 US dollar was at 1,475 dinars in 2005, 1,466 in 2006, 1,255 in 2007, 1,176 in 2008 and 1,170 in 2009. All indicators point to the presently prevailing exchange rate gradually increasing in the not too distant future.
Iraq just lately quantified its confirmed raw oil reserves at 143 billion barrels, in comparison with Saudi Arabia with 265 billion barrels of confirmed reserves. The nice part about these reserves are that they are effortlessly accessible and as a result the oil is cheap to produce. Roughly 95% of all Iraqi export value is derived from crude oil.
In the long run, as political balance returns to Iraq, its financial programs gains efficiencies and its citizens capture the full value of the national crude oil wealth, the Iraqi dinar value might be anticipated to strengthen considerably over its current trading valuations.
There are other sources and articles on the subject of Iraqi dinar value listed below.
Showing posts with label iraqi dinar investment. Show all posts
Showing posts with label iraqi dinar investment. Show all posts
Sunday, December 26, 2010
Monday, September 21, 2009
Iraqi Dinar Value - Biden Pushes Iraqi Leaders On Vote Law, Oil-Bid Perks
Biden Pushes Iraqi Leaders On Vote Law, Oil-Bid Perks
By Scott Wilson
Washington Post Staff Writer
Thursday, September 17, 2009
BAGHDAD, Sept. 16 -- Vice President Biden pressed Iraqi leaders Wednesday to approve as quickly as possible legislation that establishes rules for the planned January general election and to make the next round of bids to develop Iraqi oil concessions more attractive to foreign investors.
In a series of meetings in the Green Zone, Biden listened to the concerns of Iraqi leaders, now in the heat of an election season that Obama administration officials acknowledge will delay until after the vote any progress on such pressing issues as passing a law on the equitable distribution of national oil revenue among Shiites, Sunnis and Kurds.
A senior administration official said Biden also made his interests known on a variety of issues, such as the need for the Iraqi parliament to adopt laws to better protect foreign investment and leaving unchanged the terms of the timetable for the withdrawal of the 130,000 U.S. troops now in the country.
This is Biden's second visit to Iraq in two months, and it comes as the Obama administration is trying to manage a growing Iraqi impatience with the U.S. military presence here. Prime Minister Nouri al-Maliki, whom Biden met with Wednesday evening, has expressed support for a proposed referendum that would hasten by a year the 2011 withdrawal deadline for all U.S. forces in Iraq.
U.S. military and diplomatic officials fear that a rapid departure could undermine the security gains realized over the past year, and in his meetings Biden asked Iraqi officials whether they thought the referendum would proceed. But Biden is reluctant to be seen as meddling in a domestic Iraqi issue, and a senior administration official said the vice president operated largely in "listening mode."
Speaking next to Biden at his official residence, Maliki said U.S. forces had complied with the terms of the agreement outlining the schedule for the troop withdrawal and the training of Iraqi forces with "high credibility."
Biden reiterated the terms of the withdrawal timeline. The senior administration official said the two men's statements mean "that we have a mutual interest in moving forward" under the conditions set out in the agreement.
Biden also appealed to Iraqi leaders to offer more financial incentives for foreign investors to bid on Iraqi oil concessions; only one bid of the eight put out this year was accepted. The administration official estimated that one additional deal would translate into $50 billion to $60 billion in foreign investment in Iraq, generate $600 million in annual revenue and create tens of thousands of jobs in the country.
The official said Biden would deliver the same message to Kurdish leaders in meetings scheduled for Thursday. Kurds' interest in ensuring what they see as a fair share of proceeds from the rich oil fields of Iraq's north has presented an obstacle to a revenue-sharing agreement. Reaching a deal is crucial to Iraq's oil-dependent economy, but the goal has been politically elusive for years.
"In an election season in any country, it's difficult to make definitive progress on any issue, and these are difficult issues," the official said, adding that Biden's hope is for the next Iraqi government to be "in good position" to move on the oil legislation and other matters soon after the election.
In all his meetings, Biden asked Iraqi officials to assess their progress on an election law, concerned that without one in place soon the January vote will not be able to proceed. The official said he particularly pressed Ayad al-Samarraie, speaker of the Iraqi parliament, because the law is a legislative matter.
Biden and Maliki expressed hope that the Iraq Business and Investment Conference scheduled to be held in Washington next month would encourage private U.S. investment in Iraq. But the administration source said Biden told Iraqi leaders that regulatory and other financial protections need to be enacted to make foreign investors more comfortable doing business here.
Some of the proposed protections are before parliament, the official said, and their passage would allow, among other things, for the Overseas Private Investment Corp. to extend loan guarantees to companies wishing to do business in Iraq.
By Scott Wilson
Washington Post Staff Writer
Thursday, September 17, 2009
BAGHDAD, Sept. 16 -- Vice President Biden pressed Iraqi leaders Wednesday to approve as quickly as possible legislation that establishes rules for the planned January general election and to make the next round of bids to develop Iraqi oil concessions more attractive to foreign investors.
In a series of meetings in the Green Zone, Biden listened to the concerns of Iraqi leaders, now in the heat of an election season that Obama administration officials acknowledge will delay until after the vote any progress on such pressing issues as passing a law on the equitable distribution of national oil revenue among Shiites, Sunnis and Kurds.
A senior administration official said Biden also made his interests known on a variety of issues, such as the need for the Iraqi parliament to adopt laws to better protect foreign investment and leaving unchanged the terms of the timetable for the withdrawal of the 130,000 U.S. troops now in the country.
This is Biden's second visit to Iraq in two months, and it comes as the Obama administration is trying to manage a growing Iraqi impatience with the U.S. military presence here. Prime Minister Nouri al-Maliki, whom Biden met with Wednesday evening, has expressed support for a proposed referendum that would hasten by a year the 2011 withdrawal deadline for all U.S. forces in Iraq.
U.S. military and diplomatic officials fear that a rapid departure could undermine the security gains realized over the past year, and in his meetings Biden asked Iraqi officials whether they thought the referendum would proceed. But Biden is reluctant to be seen as meddling in a domestic Iraqi issue, and a senior administration official said the vice president operated largely in "listening mode."
Speaking next to Biden at his official residence, Maliki said U.S. forces had complied with the terms of the agreement outlining the schedule for the troop withdrawal and the training of Iraqi forces with "high credibility."
Biden reiterated the terms of the withdrawal timeline. The senior administration official said the two men's statements mean "that we have a mutual interest in moving forward" under the conditions set out in the agreement.
Biden also appealed to Iraqi leaders to offer more financial incentives for foreign investors to bid on Iraqi oil concessions; only one bid of the eight put out this year was accepted. The administration official estimated that one additional deal would translate into $50 billion to $60 billion in foreign investment in Iraq, generate $600 million in annual revenue and create tens of thousands of jobs in the country.
The official said Biden would deliver the same message to Kurdish leaders in meetings scheduled for Thursday. Kurds' interest in ensuring what they see as a fair share of proceeds from the rich oil fields of Iraq's north has presented an obstacle to a revenue-sharing agreement. Reaching a deal is crucial to Iraq's oil-dependent economy, but the goal has been politically elusive for years.
"In an election season in any country, it's difficult to make definitive progress on any issue, and these are difficult issues," the official said, adding that Biden's hope is for the next Iraqi government to be "in good position" to move on the oil legislation and other matters soon after the election.
In all his meetings, Biden asked Iraqi officials to assess their progress on an election law, concerned that without one in place soon the January vote will not be able to proceed. The official said he particularly pressed Ayad al-Samarraie, speaker of the Iraqi parliament, because the law is a legislative matter.
Biden and Maliki expressed hope that the Iraq Business and Investment Conference scheduled to be held in Washington next month would encourage private U.S. investment in Iraq. But the administration source said Biden told Iraqi leaders that regulatory and other financial protections need to be enacted to make foreign investors more comfortable doing business here.
Some of the proposed protections are before parliament, the official said, and their passage would allow, among other things, for the Overseas Private Investment Corp. to extend loan guarantees to companies wishing to do business in Iraq.
Sunday, June 14, 2009
Iraqi Dinar Value - Protection For Iraq's Funds Extended For One Year
Thanks Ken
http://www.dealorbuydinar.com
Got to keep the CASH flowing and safe to sustain the recovery of Iraqi Dinar...
Protection for Iraq's funds extended for one year
June 4, 2009 - 01:01:46BAGHDAD / Aswat al-Iraq:
A U.S. embassy official said that the U.S. president has agreed to extend protection for money deposited in the Development Fund for Iraq (DFI) for another year, according to the head of Iraq's Board of Supreme Audit."The anti-corruption coordinator at the U.S. embassy in Baghdad, Joseph Stafford, said that the U.S. president has agreed to the extension for one more year," a statement received by Aswat al-Iraq news agency quoted Abdulbasit Turki as saying.
An estimated $20-30 billion U.S. dollars is believed to be deposited in the DFI, according to officials.In May 2003, following the invasion of Iraq in March of that year, the Central Bank of Iraq-Development Fund for Iraq (DFI) account was created at the U.S. Federal Reserve Bank of New York at the request of the Coalition Provisional Authority (CPA) Administrator.
A part of the fund has been transferred to Baghdad and Iraq, and the DFI-Baghdad account was opened at the Central Bank of Iraq "for cash payment requirements". The DFI have been disbursed mainly for "the wheat purchase program, the currency exchange program, the electricity and oil infrastructure programs, equipment for Iraqis security forces, and for Iraqi civil service salaries and ministry budget operations".SS (S)/SRhttp://en.aswataliraq.info/?p=114127
http://www.dealorbuydinar.com
Got to keep the CASH flowing and safe to sustain the recovery of Iraqi Dinar...
Protection for Iraq's funds extended for one year
June 4, 2009 - 01:01:46BAGHDAD / Aswat al-Iraq:
A U.S. embassy official said that the U.S. president has agreed to extend protection for money deposited in the Development Fund for Iraq (DFI) for another year, according to the head of Iraq's Board of Supreme Audit."The anti-corruption coordinator at the U.S. embassy in Baghdad, Joseph Stafford, said that the U.S. president has agreed to the extension for one more year," a statement received by Aswat al-Iraq news agency quoted Abdulbasit Turki as saying.
An estimated $20-30 billion U.S. dollars is believed to be deposited in the DFI, according to officials.In May 2003, following the invasion of Iraq in March of that year, the Central Bank of Iraq-Development Fund for Iraq (DFI) account was created at the U.S. Federal Reserve Bank of New York at the request of the Coalition Provisional Authority (CPA) Administrator.
A part of the fund has been transferred to Baghdad and Iraq, and the DFI-Baghdad account was opened at the Central Bank of Iraq "for cash payment requirements". The DFI have been disbursed mainly for "the wheat purchase program, the currency exchange program, the electricity and oil infrastructure programs, equipment for Iraqis security forces, and for Iraqi civil service salaries and ministry budget operations".SS (S)/SRhttp://en.aswataliraq.info/?p=114127
Thursday, March 5, 2009
Iraqi Dinar
Latest Headlines Regarding Iraqi Dinar - Oil price slump starves Iraq of funds
- Inflation slips to 9.2 percent
- 7.5 pct GDP growth in 2009 optimistic but attainable
- Iraq undecided on new IMF standby arrangement
By Missy Ryan and Wisam Mohammed
BAGHDAD, March 5 (Reuters) - The slump in oil prices will force Iraqi officials to make more sober budget decisions at a time the country is seeking to rebuild from years of war and fuel broad-based growth, the central bank governor said.
Iraq relies on oil for more than 95 percent of revenue and Prime Minister Nuri al-Maliki's government is already grappling with tough decisions as it looks for ways to reconcile today's oil price outlook with spending priorities crafted last year.
"There will be a difficult transitional period, but it should give us an idea of how to take a more realistic attitude toward allocations and demands from the various sectors," Sinan al-Shibibi said in an interview late on Wednesday.
"Of course, this occurs at the wrong moment because of the fact that Iraq actually needs to embark on huge projects and it will affect that. There will have to be reshuffling of the budget, and between investment and consumption."
An original plan to spend $80 billion in 2009 has already been shaved to $62 billion, but further cuts are likely needed.
Lawmakers have been sparring for weeks on ways to cut costs without jeopardizing plans to undertake urgently needed reconstruction projects and provide basic services -- all while avoiding stoking instability by cutting public sector pay.
INFLATION DROPS
As Iraq emerges from the worst of the sectarian and insurgent violence unleashed by the 2003 U.S.-led invasion to oust Saddam Hussein, it is now focusing on creating jobs and plans to rebuild a shattered economy.
Shibibi said core inflation, which shot as high as 35 percent in the chaos after 2003, had dropped to 9.2 percent now.
The bank has pursued a strong dinar policy, Shibibi said, in order to curb core inflation, which excludes fuel and transport. Iraq holds currency auctions through which it sets the exchange rate.
Iraq is also striving to reverse the dollarization of its economy since 2003. Today, the dinar is "very much in demand, and we think this is good for the economy and good for combating inflation," he said.
As inflation subsides, the bank has cut its policy interest rate to 11 percent from 14 percent in January, Shibibi said.
But with retail lending still scarce, the bank's policy rate is seen mainly as a signal to banks in setting their own rates rather than the transactional tool it is elsewhere.
"We want now to encourage investment and lending in general but (the policy rate) will depend - I don't want to give an idea of the direction - on the results of inflation every month."
Shibibi said lending in Iraq's banking sector, still largely isolated from the rest of the world, was picking up, mostly in financing trade and some personal loans excluding mortgages.
Increasing the availability of credit will be one key element for creating growth outside the oil sector, by far the biggest in dollar terms but which generates relatively few jobs.
Shibibi said the International Monetary Fund's December forecast for 2009 gross domestic product growth of around 7.5 percent was "probably optimistic" due to the global oil trend.
"On the other hand, it will be attainable because there will be a big endeavour ... to increase (oil) production," he said.
Iraq has been courting major investment in its oil fields, which contain the world's third largest proven reserves, but short-term help is urgently needed to update aging facilities and boost output that remains below pre-invasion levels.
NO IMF DECISION YET Shibibi said growth outside the oil sector, which the IMF expects will be 6 percent in 2009, "needs a lot of work".
Iraq has been spared much of the impact of the financial crisis due to its relative financial isolation, but it may be hurt by a slowdown in oil demand. Shibibi said that the growth of money supply in Iraq had probably slowed more recently.
Iraq has yet to decide whether it will seek another stand-by arrangement from the IMF, Shibibi said, but said such a decision could come when Iraqi officials meet shortly with the IMF.
Iraq is also due to begin repaying its remaining stock of Paris Club debt in 2011. Shibibi said he didn't expect that new obligation would pose a major problem.
"I really don't think it is very dangerous ... Of course the amount at the beginning will be relatively big, but we will have to manage that unless we restructure again," Shibibi said.
"The Paris Club debt was cancelled 80 percent, so we're talking about 20 percent. A few countries cancelled 100 percent, but the remaining debt from other creditors, we have to deal with that and probably there will be another restructuring." (Editing by Toby Chopra)
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