No Plans to Rebase the Dinar - April 2009, next report due 30 July........

No Plans to Rebase the Dinar - April 2009
Page 106 of 224:

Macroeconomic Trends
As of April 2, 2009, the Iraqi dinar (ID) exchange
rate was 1,170 ID to one U.S. dollar (USD)—a
2.7% appreciation from April 2008, when the dinar
was valued at 1,203 ID per USD. In addition,
core inflation has stabilized to near 0%.447 Dinar
appreciation has strengthened purchasing power
in Iraq and contributed to declining inflation,
providing a more stable environment for private sector
growth.448

In the past, Iraq had considered rebasing the
Iraqi dinar to bring its base value closer to that
of one USD. However, recent data indicates that
the venture would prove too costly to make
rebasing worthwhile, and the U.S. Treasury
reports that there are currently no specific plans
to rebase the dinar.449

For Iraqi interest, exchange, and inflation rates
between 2004 and 2009, see Figure 2.39.

http://www.sigir.mil/reports/quarter...april_2009.pdf

The report to Congress prior to this one clearly states that the ultimate goal is to rebase the IQD closer to the value of $1. The reason it's too expensive to do it right now is that the HCL isn't done, and all the big oil companies aren't in with contracts yet.

The next report should be online on the 30th, and I can't wait for it! I've read them for a few years and you can see the recommendations carried out. a good example is the one for the last quarter of 2006 when the IQD began appreciating by between 2 to 10 pips a day for a while, even moved 13 on one day, and it was at the direction of the IMF.
IMO one of the main holdups of any rebase has been their banking system. they had to be trained in modern international banking practices, and not function as someone's personal piggybank. but now, the CBI is linked to every major bank in Iraq, and soon the global banking system. once sanctions are lifted, the free market, simple supply and demand for their currency, will be the main determinate of it's value.
but since demand for their currency will be great, due to the need of international oil companies to make payroll for their Iraqi workforce, the CBI will need to give it a higher value than it has now to kill the inflationary pressure of mass hirings to come.
we have already seen how proud they are, so they aren't about to let foreign oil companies come in and buy up 20 years worth of payroll for virtually nothing. we're going to be OK on this.

Thump do you remember a letter that came out in January as a result of a high level banking review. It contained a list of items that Iraq had to get done. One of the main items was the development of their internal banking systems. Think this is an excellent assessment of factors still in play.

I think the conditions the IMF has laid down for the new loan will also play a key role. Iraq has been providing funds via the smart cards to citizens to underwrite the cost of living. The IMF wants that stopped and before Iraq gets the loan.

yes wind..recall reading something like that but will have to dig to find it....lol.(I'm not nearly as good as CK about keeping records)

The smart card situation is an interesting angle...we seen it sppoled up and stopped numerous times, there must be a good reason for that......

Thumper, this is it. Thankfully I had a chance to grab a copy of my postings at Neno's. CK did not have that chance as Neno deleted all her postings. What an absolute waste and loss of valuable information. I told him that as well, but of course it was not an issue that he cared about.

Experts stress the necessity of activating the recommendations of the (banking system), held last month.

17 /2/2009--Economists stressed the need to activate the recommendations of the banking system held by the Ministry of Finance last month to attend a number of representatives of international banks. Experts said that the findings of the conference is aimed at the development level of banking business and in accordance with the principles of openness to international, Arab and international banks to contribute to the process of reconstruction and investment in Iraq.

The conference was held under the banner of (Iraqi banking system, solid as a means of establishing a prosperous Iraq) on 28 and January 29 last saw the presence of a number of ministers and the Governor of the Central Bank and representatives from the World Bank and the U.S. Treasury Department and a number of Ambassadors and representatives of the private banks, regional and international levels. The conference and the important recommendations of the most prominent of the lifting of the ceiling of the credit banks for the purpose of the civil to the opening credits (4) million, instead of (2) million. The ministries are open to the direct provision of civil banks, and the acceptance of letters of guarantee issued by private banks by the state's departments, and consider the integration of banks, weak or non-actors with each other and strengthen their financial positions, and the request to the Central Bank to reduce the statutory reserve deposits to the government, reducing taxes on the overall bank profits, and to amend the resolution, which prevents foreign investors from participating board, but one member, whatever his contribution, in addition to a law or a special resolution of the foreign banks to open branches in Iraq, and to allow the amendment of the Banking Act to allow for the opening of the window, where Islamic law has not provided for, and demand from the Central Bank to reduce interest rate, which is becoming an obstacle in the process of investment.

This article came out on February 17, 2009 addressing the importance of Iraq completing the recommendations from the January 28 and 29, 2009 meeting. Twice within about two weeks Iraq was being told to get it done. This is not the complete article, just the first part of it.

great digging Wind......hope CK the other part in her files somewhere.

the U.S. Treasury
reports that there are currently no specific plans
to rebase the dinar.

I scanned much of this report, because I missed the page number that is indicated in the original post.

We either have to accept this as "reality," or dismiss it as "misinformation" from the US Treasury.

The US has been intimately involved with rebuilding Iraq after
"shock and awe" disemboweled iraq's infrastructure. Bush indicated the War and Rebuild would "pay for itself." Though the US now has a new administration, undoubtedly there is "continuity in government" when it comes to all things money.

The global economic meltdown may be caused by US problems, but the "fix" must be a coordinated worldwide effort. G7, 620 Summits, the IMF, the World Bank, Gold, Silver, Fiat money....it's all part of the global overview. The US Treasury is intimately involved in all these policies, and is a "driver" of the IMF.

A REBASE makes perfect sense in the world of fiat money to bring world FOREIGN CURRENCY RESERVES to acceptable levels to balance
the debt of many of the world's countries.

Would misinformation not precede such an event?