Thursday, June 21, 2012

Fact Finder on the Iraq Dinar

Fact Finder has collected the numbers for Iraq and its neighbors and converted them into their own currency terms. .....The numbers are not what the dinar chat community claims. .....The revaluation MUST deal with the numbers contained in the Broad Money Supply, and the CIA numbers indicate that number is 68.2 trillion dinar. .....That means there are approximately 30 trillion printed dinar, and another 38  trillion dinar locked up in the dinar denominated currency systems regulated by the Central Bank of Iraq. .......Not the kind of numbers that indicate they are capable of performing a revaluation until they have 'lifted the zeros' as Dr. Shabibi has indicated.

Here are a few links to the history of the dinar:

http://lowerdenoms.com/about/iraqi-dinar-history/

http://en.wikipedia.org/wiki/Iraqi_dinar

.....As you can see, the new Iraqi dinar is a product of converting the hyper inflated currencies of the country following the war. .....Thus the New Iraq dinar is hyper inflated, as the CIA data suggests. .....Aside from the war relationship with the US and its allies, this currency situation resembles similar problems dealt with in introducing the Mexican Nuevo Peso  in  1993:

http://en.wikipedia.org/wiki/Mexican_peso

No one really knows what is going to happen, but the common response to countries in this situation is re denomination:

http://en.wikipedia.org/wiki/Redenomination

This information is critical to an unbiased analysis of the dinar revaluation, and should be available to the general public. .....There is plenty of evidence that dinar dealers, chat site administrators, and other 'snake oil' salesmen in this venture are purposefully suppressing the real numbers.




To clarify some of the items listed below, here are the CIA definitions:

Stock of narrow money: also known as "M1," comprises the total quantity of currency in circulation (notes and coins) plus demand deposits denominated in the national currency held by non bank financial institutions, state and local governments, non financial public enterprises, and the private sector of the economy, measured at a specific point in time.

Stock of broad money:  This entry covers all of "Narrow money," plus the total quantity of time and savings deposits, credit union deposits, institutional money market funds, short-term repurchase agreements between the central bank and commercial deposit banks, and other large liquid assets held by non bank financial institutions, state and local governments, non financial public enterprises, and the private sector of the economy.

GDP (purchasing power parity): This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year.



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The figures listed below are reliable data compiled by the CIA and available through open sources. .....Conversions to pertinent country currency rates were accomplished with the posted rates on XE on the date of compilation.

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IRAQ STATS:

Narrow Money Supply(M1)  = 58.4 trillion Iraqi dinar(58,448,600,000,000)

Broad Money Supply  =  68.2 trillion Iraqi dinar (68,197,780,000,000)

GDP  = 147.8 trillion Iraqi dinar (147,806,4000,000,000)

Population = 31,129,225

Current exchange rate  = 1162 Iraqi dinar per dollar

Proven Oil Reserves  =  143.5 billion barrels (143,500,000,000)


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KUWAIT STATS:

Narrow Money Supply(M1)   =  6.5 billion Kuwaiti dinar (6,475,912,000)

Broad Money Supply  =  26.4 billion Kuwaiti dinar (26,402,226,000)

GDP  =  42 billion Kuwaiti dinar (41,958,980,000)

Population  =  2,646,314

Current Exchange Rate  =  .2801 Kuwaiti dinar per dollar

Proven Oil Reserves  =  104 billion barrels (104,000,000,000)


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SAUDI ARABIA STATS:

Narrow Money Supply  =  772 billion Saudi Riyal ( 772,125,000,000)

Broad Money Supply  =  1.26 trillion Saudi Riyal ( 1,258,875,000,000)

GDP  =  2.5 trillion Saudi Riyal (2,537,625,000,000)

Population  =  26,534,504

Current Exchange Rate  =  3.75 Saudi Riyal per dollar

Proven Oil Reserves  =  264.6 billion barrels (264,600,000,000)


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VIETNAM STATS:

Narrow Money Supply(M1)  = 689 trillion Vietnamese Dong (688,926,000,000,000)

Broad Money Supply  =  2.7 quadrillion Vietnamese Dong (2,732,670,000,000,000)

GDP  =  6.3 quadrillion Vietnamese Dong (6,265,248,000,000,000)

Population  = 91,519,289

Current Exchange Rate  =  20,940 Vietnamese Dong per dollar

Proven Oil Reserves  =  600 million barrels (600,000,000)


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UNITED STATES OF AMERICA STATS:

Narrow Money Supply  =  1.9 trillion American Dollars (1,943,000,000,000)

Broad Money Supply  =  12.1 trillion American Dollars (12,140,000,000,000)

GDP  =  15.04 trillion American Dollars (15,040,000,000,000)

Population  =  313,847,465

Current Exchange Rate  =  $1=$1

Proven Oil Reserves  =  19.4 Billion Barrels (19,400,000,000)

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Site link to database stats:

https://www.cia.gov/library/publications/the-world-factbook/geos/iz.html

6 comments:

siriusvoid said...

I assume this takes into account the destroyed 'Saddam Notes'...
I thought the 'Swiss Note' currency issue was sequestered in Swiss banks - marked for destruction but not destroyed as of yet... but taken out of circulation...
Was any of this mentioned?
Are they saying The United States intentionally hyperinflated the Iraqi currency?
Something seems very strange here.

Anonymous said...

If you read through the links, the introduction of the New Iraqi dinar included a redemption of the 'Swiss' dinar at a rate of 150 New Iraqi dinar per 'Swiss' dinar, while the Saddam dinar were redeemed at a 1:1 rate. .....The Saddam dinar was hyper inflated by Saddam following the first gulf war, and the history link given above indicated that it had fallen as low as 3000 dinar per dollar in the mid '90's. .....The United States replaced a currency(Saddam dinar) with a currency including bills large enough to keep normal trade in place. ...Before the new currency, there were reports of people hauling sacks of bills for trade. ...The most used note was a 250 dinar note that bought very, very little.

And I agree, that it is very, very strange these things are never spoken of, but considered to be historical fact.

siriusvoid said...

http://goingglobaleastmeetswest.blogspot.com/2000/06/two-currencies-coist-together-financial.html

20/06/2012

- Financial Alnibaah: "Next Year Will See the Circulation of Two Currencies at the Same Time"

- Baghdad, revealed the parliamentary finance committee that Iraq will see the two currencies traded at the same time over the next year 2013 of the new currency in circulation after deletion of zeros with the survival of the current currency trading throughout the year in question.

A member of the Finance Committee Hassan Salman's (Center Brief for the Iraqi Media Network) that "the central bank operates in more than six months from now on the position of the deletion of zeros from the Iraqi currency and the current that will be applied starting from next year."

He pointed out that "the Finance Committee informed and in constant contact with the central bank governor and his aides who constantly learn about the Finance Committee on the details of this issue and the process of replacing the current currency the new currency will continue over the next year."

He said, "will end the current currency, the beginning of 2014 and this process will lead to the strengthening of the Iraqi currency fluctuations, especially after the Iraqi dinar exchange rate against the U.S. dollar in recent times."

And that "currency adjustment will benefit the Iraqi economy and will facilitate the handling of cash in the country by reducing the money supply in circulation now, which Tkdrbhawwala 30 trillion dinars."

- I have no idea what 'Tkdrbhawwala' means... -(C.W.)

He revealed the CBI earlier that the new Iraqi currency will increase by three zeros, indicating that he made an extensive study concluded that the lifting of the zeroes will strengthen the value of the Iraqi currency...

- What I have heard is the lower denoms were printed along with the current dinar issue but not yet released due to the IMF imposed 'Artificial Program Rate'... Some feel the new 2013-2014 currency exchange will be to create new recently approved bills with the Kurdish language on the back... Also there is some question whether the 30T spoken of by the CBI and Parliament Finance Commitee is realy not M-1 but actually M-2, or even M-3 figures... (CW)

siriusvoid said...

One more thing..
(Open source information) - The Iraqi Ministry of Planning has produced documents advising Iraqi state agencies to calculate all current contracts at an exchange rate of IQD-1/$1.17-USD... while reminding them the actual exchange rate for Iraqi Dinar is at least IQD-1/$3.22-USD..
This rate was used as the basis for planning the current budget.
Who can one trust in this kind of situation?
I know the CIA would never lie..
On the other hand can one dare to hope these Iraqis are at least as credible?
I totally agree with you. - The whole sordid history of the currency should be trotted out and aired in public.
I always felt it was criminal of the US govt to stop reporting on our own M-1 money supply.
I wonder what devious plan these people are trying to get away with?

Anonymous said...

Who Knows!?

That two currencies article is eerily similar to this:

In 1993, Presidente Carlos Salinas de Gortari stripped three zeros from the peso, creating a parity of $1 New Peso for $1000 of the old ones.

The transition was done both by having the people trade in their old notes, and by removing the old notes from circulation at the banks, over a period of three years from January 1, 1993 to January 1, 1996. At that time, the word "nuevo" was removed from all new currency being printed and the "nuevo" notes were retired from circulation, thus returning the currency and the notes to be denominated just "peso" again.

Confusion was avoided by making the "nuevo peso" currency almost identical to the old "peso". Both of them circulated at the same time, while all currency that only said "peso" was removed from circulation. The Banco de México (Bank of Mexico) then issued new currency with new graphics, also under the "nuevo peso". These were followed in due course by the current, almost identical, "peso" currency without the word "nuevo".

Anonymous said...

There is some confusion on the exact Iraqi dinar exchange rates during the Saddam years. .....The following historical rate data should provide a clear image of the situation.

These are the historical rates from each of the years of interest. This dinar rate is from June 15 of each year, and can be found through searches at :::

http://www.oanda.com/currency/historical-rates/


1990 - 154.420 dinar per US dollar

1991 - 141.050 dinar per US dollar

1992 - 126.680 dinar per US dollar

1993 - 105.190 dinar per US dollar

1994 - 102.830 dinar per US dollar

1995 - 0.6000 dinar per US dollar

1996 - 109.125 dinar per US dollar

1997 - 1,200 dinar per US dollar

1998 - 1,200 dinar per US dollar

1999 - 1,200 dinar per US dollar

2000 - 1,970 dinar per US dollar

2001 - 3,124 dinar per US dollar

2002 - 2,950.90 dinar per US dollar

2003 - 2,982.70 dinar per US dollar

2004 - 2,984.20 dinar per US dollar

2005 - 1,398.40 dinar per US dollar

2006 - 1,407.26 dinar per US dollar

2007 - 1,235.66 dinar per US dollar

2008 - 1,176.27 dinar per US dollar

2009 - 1,146.00 dinar per US dollar

2010 - 1,155.72 dinar per US dollar

2011 - 1,1153.03 dinar per US dollar

2012 - 1.143.93 dinar per US dollar