Please Read!!!! Important!!! World Bank Report Review

by hhammer Sat Sep 24, 2011 3:21 pm

Folks, the entire report is 244 pages. I scanned the document for key words and phrases relted to the revaluation.

On Page 30 it states, "The accumulation of foreign exchange reserves at the CBI allowed Iraq to stabilize the Dinar, reverse the dollarization process, and contain inflation. Since early 2009, the exchange rate has been kept at ID1170 per US dollar. Total external debt has decreased from 137.9 percent of GDP in 2009 to 106.7 percent of GDP in 2010, and is projected to decline further to 37.1 percent and 32.6 percent of GDP in 2011 and 2012, respectively."

On page 195, in the table (bullet point #1), it states a short-term task to, "Maintain current monetary and exchange rate policy stance aimed at keeping inflation at low levels and further reducing dollarization."

I'm not an economist of financial guru, but I could not find any discussion related to the revaluation of the dinar (at least not any time soon). There are varoius other sections referring to valuation of the dinar, but again, nothing that indicates a near-term revaluation. It appears they will be staying where there are with the exchange rate because it has created "stability".

I would really like the opinion of the forum's economists and/or financial experts to review this and to give us the skinny on what this all means, and hopefully, I am misinterpreting the report..

Below is the link to the offical report, and I would believe whatever plans they have are laid out are in this report, and not smoke and mirrors......the report is in black and white.....click on the link and read it.

http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/MENAEXT/0,,contentMDK:23010412~pagePK:146736~piPK:226340~theSitePK:256299,00.html

Thanks.

by openmind Sat Sep 24, 2011 3:28 pm

openmind wrote:"The Iraqi financial system is dominated by the banks. Total assets of the banking
system according to official figures amounted to IQD 329 trillion.

These numbers are inflated by the inclusion of large exchange
rate valuation losses on the banks’ balance sheets and staff estimates indicate
that bank assets only amount to ID 70.1 trillion (73 percent of GDP)"

Okay, how the heck is this going to RV 1 to 1? 329 or 70 TRILLION? Im clearly missing something here?

by **rick152** Sat Sep 24, 2011 3:41 pm

openmind wrote:
openmind wrote:"The Iraqi financial system is dominated by the banks. Total assets of the banking
system according to official figures amounted to IQD 329 trillion.

These numbers are inflated by the inclusion of large exchange
rate valuation losses on the banks’ balance sheets and staff estimates indicate
that bank assets only amount to ID 70.1 trillion (73 percent of GDP)"

Okay, how the heck is this going to RV 1 to 1? 329 or 70 TRILLION? Im clearly missing something here?

I believe what you are missing is the fact that most if not all dinar cashed will not go immediately to there reserve. The vast bulk IMO will be held by foreign banks (foreign not being Iraqi) To be traded as oil credits and what we have heard so far is this does not start until about 6 months after RV so the inpact would be nominal at best....rick152

by moosetracks Sat Sep 24, 2011 4:05 pm

Thank you hhammer and openmind.

We neeed some experts in here

by openmind Sat Sep 24, 2011 4:31 pm

rick152 wrote:
I believe what you are missing is the fact that most if not all dinar cashed will not go immediately to there reserve. The vast bulk IMO will be held by foreign banks (foreign not being Iraqi) To be traded as oil credits and what we have heard so far is this does not start until about 6 months after RV so the inpact would be nominal at best....rick152

What your saying is that the UST and other foreign institutions will use the Dinar for oil credits, a process you say will start only 6 months after RV. Thats all well and good.

But my question isnt about the Dinars held by foreign institutions. ACCORDING TO THE WORLD BANK REPORT, there are 70 trillion dinar held by Iraqi Banks as assets. In the event of an revaluation of even $1, thats $70trillion. Please explain this. Thanks.

by hhammer Sat Sep 24, 2011 4:35 pm

Thanks Moose, but there won't be any.....why you ask???

I have found (on this site) that people jump on topics like sharks with blood in the water, except those that have true, factual basis or incredible significance. This is the second incredibly important post I've made looking for an expert to analyze. Of the 2 posts, the replies could have been counted on one hand. Why???? Beacause it's much more important to post another ridiculous and repetitive article about Ron Paul, Rick Perry, aliens controlling the world, or how Michael Jordan is Satan. It is absolutely unbelievable!!!!!!!!!!! Please people, can you get a life?????

1. I posted the other day regarding how Iraq's 2012 budget plans only include a 1100 exchange rate versus the 1170 we see now....link to article posted....black and white...no one cares...

2. The World Bank report (244 pages) does not state anywhere that a revaluation is planned for the dinar....quite to the contrary.....link to report posted.....black and white.....no one cares...

Let's have another post to tell us how "the rate is locked on the bank screens" or "I have a contact in Iraq, but I'm sworn to secrecy", or better yet "the clerk at the bank at Wal Mart told me "the RV is coming soon and I will be very happy"....

I have zero patience for stupidity, and there's plenty of it around here. If i get banned, who cares????? There's umpteen other sites where I can get all the info I need. Besides, either there will be an RV or there won't, and it will happen when it's time or it won't. Having all this "intel" and "guru" updating is meaningless. It will neither delay nor speed the process.....period. Why then, do I come to this site, you ask? Because I am not an foreign currency economist and am seeking professional interpretation of events surrounding Iraq's economy and obviously the potential revaluation.

It's almost impossible to have intelligent exchanges with people nowadays because they don't recognize the most important tasks at hand, or how to deal with them.

If anyone wishes to challenge me, I welcome it, you're in for a rude awakening.

hhammer, Ph.D.

by Najm93 Sat Sep 24, 2011 4:47 pm

Hammer...Im a student of the whole economic process and I agree with you....People would rather speculate about things they have only opinions about...As far as the budget, the quoted surplus is also missing....I think its less a report of the explicit and more a report of the projected guess work of a fledgling economic system....Meaning that there are still issues that need to be addressed. Iraq has a reported 29 billion IQD surplus that they are asking for OPINIONS from the people about its application.... I don't think we can apply the economic thinking of the US to this issue AT ALL...Thats where most of the confusion comes from.

by ClermontThinker Sat Sep 24, 2011 5:03 pm

Hammer,

Believe me when I tell you that I feel your pain.

The only flaw I see in your post is the hope or expectation of some sort of "expert" analysis by one of the self anointed gurus. You are on the correct track as far as I can tell. Research, investigation, and analysis of available information is truly the best option for any investor.

Yes, it is so very frustrating to provide well researched information with the hope of getting some level of interested, informative discourse... No such luck. So many of the participants of this and other sites are just waiting for someone to tell them when, where and how much the RV will be.

The level of misinformation and manipulation that people seemingly allow themselves to be subjected to on these sites just stuns me.

Keep the faith...

by openmind Sat Sep 24, 2011 5:26 pm

this thread has been a high dosage of veritas!

by openmind Sat Sep 24, 2011 6:19 pm

hhammer wrote:Thanks Moose, but there won't be any.....why you ask???

I have found (on this site) that people jump on topics like sharks with blood in the water, except those that have true, factual basis or incredible significance. This is the second incredibly important post I've made looking for an expert to analyze. Of the 2 posts, the replies could have been counted on one hand. Why???? Beacause it's much more important to post another ridiculous and repetitive article about Ron Paul, Rick Perry, aliens controlling the world, or how Michael Jordan is Satan. It is absolutely unbelievable!!!!!!!!!!! Please people, can you get a life?????

1. I posted the other day regarding how Iraq's 2012 budget plans only include a 1100 exchange rate versus the 1170 we see now....link to article posted....black and white...no one cares...

2. The World Bank report (244 pages) does not state anywhere that a revaluation is planned for the dinar....quite to the contrary.....link to report posted.....black and white.....no one cares...

Let's have another post to tell us how "the rate is locked on the bank screens" or "I have a contact in Iraq, but I'm sworn to secrecy", or better yet "the clerk at the bank at Wal Mart told me "the RV is coming soon and I will be very happy"....

I have zero patience for stupidity, and there's plenty of it around here. If i get banned, who cares????? There's umpteen other sites where I can get all the info I need. Besides, either there will be an RV or there won't, and it will happen when it's time or it won't. Having all this "intel" and "guru" updating is meaningless. It will neither delay nor speed the process.....period. Why then, do I come to this site, you ask? Because I am not an foreign currency economist and am seeking professional interpretation of events surrounding Iraq's economy and obviously the potential revaluation.

It's almost impossible to have intelligent exchanges with people nowadays because they don't recognize the most important tasks at hand, or how to deal with them.

If anyone wishes to challenge me, I welcome it, you're in for a rude awakening.

hhammer, Ph.D.

by dh98940 Sat Sep 24, 2011 9:26 pm

Maybe this will help I just came across this on another site

janicemulvaney] 9-24-2011 Guru Eagle Has Landed Shabibi is NOT GIVING A SPEECH - he is merely making opening remarks at the meeting. The World Bank has assisted Iraq with its finances for some time..this is just a "where do we stand today" meeting and discussion of the prepared report. Shabibi told the UN and others at last night's meeting that they were shackeling Iraq and that he needed the freedom to get his work done

The Word Bank gives S the power to take charge over all the banks to make sure what they are reporting is true and accurate, you will find this in the summary pages of the meeting notes. This meeting was not to anounce a RV but to discuss where do they go from here with the banks.

by tekeylaman Sat Sep 24, 2011 10:03 pm

Hey Guys can one of yall come and debate hammer & openminds comments here !

by openmind Sun Sep 25, 2011 12:03 am

tekeylaman wrote:Hey Guys can one of yall come and debate hammer & openminds comments here !

Hey rick152, can you reply please, what did you mean with your post earlier?

Please Read!!!! Important!!! World Bank Report Review

Please Read!!!! Important!!! World Bank Report Review

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SOS SOS SOS for OKIE ,SCOTTIG,GHOST,BEAR OR BGG

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