Old from March 2004

I found this in my old links from March 2004 about the dinar and were back then they thought it would go:

Decline in demand for the purchase of fever, the new Iraqi currency exchange companies amid fears of the Arab political decision to change

Bankers: dealing with the Iraqi dinar's stability depends on the political and security situation and the purchase of assets to ensure the most
RIYADH: More on Oman: Mohamed Da'mp

Tuesday, 11 Muharram 1425 H March 2, 2004 No. 9226

Kuwait: Fadya Zohbi Dubai: «Middle East» Egypt: Mohsen Abdel-Hakim: the world bankers and financial experts who spoke for the Arabs «Middle East» that the exchange rate of the Iraqi dinar is linked to the future political situation in Iraq, economic, noting in this context that the better the political, security, Iraq has seen the calm that run the Iraqi dinar exchange rate of the rise of the new.

On the contrary, saw the situation more volatile political security, the Iraqi dinar is likely to decline in the future. Experts point to a reduction in fever of speculation in the Iraqi currency, due to the deteriorating security situation, and tied the price of the Iraqi currency has improved the positive improvement in the economic and political.


Saudi bankers have questioned the legality of the issuance of the Iraqi dinar, because it has not been issued in accordance with the law of royal or republican, and therefore does not carry any number or the date of this law, which raises many questions about the author of the currency and the law based on it.

This ambiguity called number of dealers in the Saudi market to the issuance of a new name of the dinar, which «Bremer dinars» rather than the Iraqi dinar.

The new Iraqi dinar was issued with a term paper issued by the monetary law of the Central Bank of Iraq, with no law or the date of issuance.

* * Saudi Arabia: Fear of a political decision to change the dinar

* * Referred to the Arab Banking survived to age 3, there are rules for driving the currency market, the first in the economic currency of the exporter, the second economic situation, such as indebtedness and the balance of trade, budget deficit, more debt was non-existent, and the inability of low or no budget, the currency of the country is expected to rise . That every factor that is linked to the third reading of the market situation, the more the market was reading the previous positive factors interacted with them, through the rise in interest rates and the market whenever they read a negative impact negatively on the exchange rate, regardless of the validity of reading the market or not. The Arab Banking expert Omar survived that the new Iraqi dinars to return to its natural gas through a write-off of Iraq's debt by creditor countries.

It was agreed financial expert with the Saudi leader Mutashar survived the age, but added that the pursuit of a falling currency, the purchase of a calculated gamble, however, stressing that the best purchase of assets, adding to the experience of the decline in the Lebanese pound, and citing the fact that those who bought the assets in Lebanon «drug »or« shares »made gains greater than the buyers of the currency at the lowest levels, he said, adding that it was bought when the Lebanese pound has lost 50 per cent of their value are still suffering from the loss.

He added that it could be for those who want to take advantage of the exchange rate for the future purchase of the new Iraqi dinar bills funding to meet the fluctuation of currency, such as bonds give a profit, thereby reducing damage to the fluctuation of the currency the buyer or the purchase of assets, whether real or otherwise.

For his part, Dr. Abdul Wahab Abu Dahesh Saudi banking prerequisites to improve the level of the Iraqi dinar exchange rate of the first not to change the Iraqi dinar and the other a political decision not to take blame.

He pointed out that Omar survived the economic weight of the former Iraqi dinars is in the Jordanian capital of Amman as the economic market, but it moved with the weight of the new Iraqi dinar in Kuwait and northern Saudi Arabia, according to the market speculation is not disciplined.

And a number of bankers questioned the legality of the issuance of the Iraqi dinar, pointing out that the currency issued in accordance with the law is clear, a Republican, a royal number and date of the law or decree which would diminish the Iraqi dinar, which carry the words and the paper issued by the monetary law of the Central Bank of Iraq, without number or date of the law issued. This has raised many questions such as Who is the author of the coin was issued in accordance with any law. He called a number of dealers to issue indefinitely «Bremer dinars» currency instead of the new Iraqi dinar, Iraq indefinitely.

Nevertheless, they pointed out that the Iraqi dinar exchange rate depends on the political decision, and when the decision is an Iraqi one hundred per cent. They cited that the Kuwaiti dinar, which returned to levels cashed out after the Iraqi occupation of Kuwait and the return of the resolution, in addition to link the exchange rate of the Kuwaiti dinar and the dollar with oil. Bankers did not lose sight of the complexities of many of them define the exchange rate of inflation and poor cash management to the improvement of the exchange rate, as happened to the Lebanese pound.

It is noteworthy that the Iraqi dinar exchange rate between the dollar limits for each of ID 1300. Recalled that the Saudi Arabian Monetary Agency «toxic» let the Iraqi dinar in the earlier version of the new limits of ten million Iraqi dinars, equivalent to 28.8 thousand Saudi riyals (7.6 million), with each person, and it has been returned to be transferred through the banking sector . And received the Saudi Arabian Monetary Agency «toxic» questions about the possibility of the banks that the banks had to buy the same amounts of Iraqi currency and more than this amount, whether from clients attending the payments in excess of ten million Iraqi dinars, or through directly.

It was «decorated» at the time that the bank or ATM to take what he sees in the procurement process, and to assume full responsibility for this risk, provided the application of the rule (I know your customer), and in particular with regard to procurement of clients, and the institution does not bear any responsibility to take the bank or ATM whether any decision in the purchase or sale, with the emphasis on vigilance and caution in this matter. The Foundation and the Arab Monetary «toxic» that the delegates at the outlets to facilitate the introduction of the amounts of Iraqi currency, which attended by licensed money changers or banks, without any liability of the institution.

* * Kuwait: a consensus on linking the improvement in the dinar exchange rate of the security situation

* * In Kuwait, dealing with the offices of the Iraqi dinar exchange Ktaamlha with any other currency in terms of purchase and sale, is the Iraqi dinar to Kuwait according to a particular customs official currency.

The unanimous in several exchange companies in Kuwait that the Iraqi dinar exchange rate rose significantly during the capture of Saddam Hussein, as the price per thousand dinars to 350 Kuwaiti fils (about 1,155 dollars). Then it began to decline in the price two months after the birth is 205 Kuwaiti Velsat (about 0.68 dollars) per thousand Iraqi dinars. Said one of the officials at these companies that the demand has dropped considerably on the Iraqi dinar, and there is no perspective on the horizon to indicate the high potential in the short term.

He added that the high price is subject to political and security conditions in Iraq. For example, the volume of sales of his company only the Iraqi dinar per day during Saddam's capture to 300 million Iraqi dinars. Today, the sales do not exceed a few million Iraqi dinars, pointing out that the saturation of the market that the currency. And the quality of the buyers of the Iraqi dinar in Kuwait said they were either buyers sell at high prices in Pakistan and Egypt, or the buyers keep the price high in the hope of the future.

And sources of income for the Iraqi dinar of Kuwait, he said that exchange companies are either bought from traders Kuwaiti inferior products to Iraq, stuck on or through Jordan.

* * UAE: the dissolution of the Iraqi dinar speculation

* * In the United Arab Emirates said in the foreign exchange markets yesterday, the fever of speculation in the Iraqi dinar started to fade gradually after the price of one million dinars to about 3000 dirhams (818 dollars) for 4500 dirhams (1226 dollars) earlier this year. The sources expected the price of the dinar to rise over the long term, especially in light of the direction of the coalition authority to impose a kind of political stability in Iraq and the possible recovery of the Iraqi economy and thus the national currency. The currency exchange markets in the UAE early this year has seen feverish speculation in the dinar to the extent that some speculators were forced to borrow from banks to purchase large quantities of currency and money in improving the storage of the exchange rate of Iraqi currency in the near future and reap the profits by it.

The Almassadron the value of one million Iraqi dinars in Baghdad, was approximately 665 dollars, and upon arrival in the Jordanian market to increase this value up to about 800 1000 dollars, and then up to the Kuwaiti market and the markets of the Gulf sold one million Iraqi dinars, about U.S. $ 1300, while in Egypt, which prevented the entry of the currency value of one million which amounted to about U.S. $ 2500.

The sources said that traders «bag» Iraqis also have been heavily active in the purchase and sale of large quantities of the dinar on the margins of profit for immediate use in the purchase of goods, particularly used cars and electronic equipment, and then exported to their country.

Banking sources had warned of the huge demand to buy the new Iraqi currency by the coalition forces in Iraq, replacing the markets of the old currency in September (September) the past.

* * Jordan: a limited deal, warned

* In Jordan, the price of the Iraqi dinar exchange rate, or as is known in the Jordanian market this week, Bremer dinars compared to the previous week. Has reached the price of one million Iraqi dinars in Amman from the market exchange 495 to 492 Jordanian dinars equivalent to 694 to 698 dollars, compared with 500 to 505 dinars in the previous week.

The head of the Jordanian money changers Matiur Kabariti to deal the new Iraqi dinar in the Jordanian market is not big with the confidence that the Iraqis have started to increase from the last day by explaining that the volume of dealings in Jordan is limited and that all transactions are made through Amman to the Gulf states, especially Kuwait. He told «Middle East» had been during the past two weeks, the shipment of about 25 billion Iraqi dinars edition Bremer from Jordan to the Gulf states, particularly Kuwait, adding that the deal stems from the Iraqi dinar rush adventure and self-traders, money changers, especially as the dinar is not a cover of the Central Bank Iraq. He said that this deal is among the currency dealers in the two countries.

On the Iraqi dinar exchange rates of the Swiss edition Kabariti said that there are still some people dealing in Iraqi dinar, the Swiss edition, where the exchange rate of one million than 10,500 Jordanian dinars to 11 thousand Jordanian dinars equivalent to 15 thousand to $ 15,500. The price of the dinar by decree the price of the horses had a million dinars, of which 12.5 thousand to 13 thousand Jordanian dinars equivalent to 17.6 A 18.3 thousand dollars.

He said there was trading in spite of the ambiguity of the data and reports from Iraq on this subject, noting that the deal started in the Jordanian market five months ago when it issued the new Iraq dinar and gave a deadline until mid-January (January) to switch.

* * Egypt: new dinar bank died DIE

* * In Egypt, ruled out the bankers and the owners of the exchange companies are treated the new Iraqi dinar in the Egyptian market during the current or future, saying that the political, security and economic stability in Iraq has not so far, which makes the Iraqi dinar currency non-convertible and not a universal value.

He pointed out that such a wave of speculation on the Iraqi currency in the Egyptian market in the recent Central Bank of Egypt was forced to intervene and prevent the deal and warned the Iraqi dinar dealers of the losses that may be suffered by the running of the speculative buying it, especially as the central banks were not allowed to Egyptian handling of the Iraqi dinar as its currency despite the value he received from his models of the categories of the Iraqi dinar, Iraq's new specifications.

Currently dominate the market and the informal state of calm in the Iraqi dinar trading after witnessing an unprecedented activity in the recent period of the deal led to a rise in prices has not been dealt with by the bank, but an Egyptian (Egyptian-American) and the Egyptian exchange.

And on the status of the Iraqi dinar in the Egyptian market, "said Mohamed Radwan, Vice-President of the Bank of Alexandria and the Director-General of Egyptian banks that handle the new Iraqi dinar that such transactions need to be political and economic stability and security in Iraq, the Iraqi currency to find a global market, subject to supply and demand and are transferable externally which not yet been achieved.

Radwan and demanded the Egyptian banks and exchange companies to wait some time to stabilize the situation, noting that the central bank is following this issue and put his eyes on the Iraqi market and the new Iraqi dinar, and how to handle it. He added that so far the Iraqi currency in circulation is not universal and non-transferable abroad, and went on to say, the failure of banks and allow the Central Bank of Egypt on a formal trading market, the Iraqi dinar to our Egyptian damage.

And demanded to take Damati Deputy General Manager United Bank of Egypt, an economic studies (BA) sets the price of the Iraqi dinar to be a global deal by the amendment to the Egyptian market and felt that any trading Iraqi dinars in the Egyptian market «banks / bureaux de change» is very difficult, especially with non - clarity or resolution of the political and economic system of the Iraqi state in the Anglo-American forces to stay, and said that he Damati transactions for the Iraqi dinar externally necessary foundations and clear criteria for determining the price based on the mechanism of supply and demand and the strength of the Iraqi economy.

She pointed out that the supply and demand and the purchasing power of the Iraqi dinar in the Egyptian market is not sufficient to formally activated, said that the existence of an independent Iraqi government would determine the price and lay the foundations for the sale and purchase provided that the Iraqi currency is convertible and externally this is not universally accepted, and deal in the current bring the Egyptian market by speculative holders to it.

At the level of exchange companies expect Mohamed Hassan House Chief of the Division Federation of Chambers of Commerce and one of the exchange companies that deal with the new Iraqi dinar, the beginning of the world's central banks coordinate with the Central Bank of Iraq and you know the new currency. This will take a long time, as White says, pointing out that the new Iraqi dinar is not a supply and demand in the Egyptian market is currently no one can estimate the volume of it. He agreed with the opinion of former officials of a money exchange companies and the deal said that the new Iraqi dinars in Egypt «fashion and ended» No one asked by customers and there is no trading for selling and buying.

The Director of the company «Egyptian Exchange» absence of formal banking channels dealing in Iraqi currency to the lack of a advertised price and not demand.

It should be noted that the Saudi Arabian Monetary Agency «toxic» finally allowed to enter the Iraqi currency of issuance of the new limits of 10 million Iraqi dinars (18 dollars), with each person and over, it will be returned in order to be transferred through the banking sector and left the Saudi Arabia Monetary Agency, the freedom to banks EXCHANGERS or companies to take as it deems appropriate in the purchase of Iraqi currency or not, and bear all the responsibility arising from this risk.

In Egypt, the monetary authorities banned the possession of the new Iraqi dinar, or dealing in Egyptian banks and bureaux de change.

10 million Iraqi dinars (18 dollars), WOW!!!