Dinar Exchange Rate Linked to Oil Exports, Federal Reserves

By Omar al-Shaher for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

According to an Iraqi financial expert, the value of Iraq’s federal reserves currently amounts to about $80 billion, following the recent increase in the country’s oil exports. Nevertheless, no information was made available by the Central Bank of Iraq (CBI) to this effect.

Speaking to Al-Monitor, Iraqi financial expert Hussein al-Asadi said, “According to my information, the value of Iraq’s federal reserves currently amounts to about $80 billion. This includes funds, precious metals and other items.”

Nevertheless, the spokesman for the CBI, which is charged with managing the federal reserves of Iraq, has yet to issue a statement in this regard. Meanwhile, Al-Monitor’s correspondent in Baghdad failed to obtain comment from the bank’s governor, Abdul Basit Turki, to this effect, or determine the identity of those authorized to speak to the media. The bank has only issued statements to comment on the developments of its work.

The last comment made by the CBI regarding the country’s federal reserves dates back to Jan. 31, 2012, when the bank denied the “decline of gold reserves.” The CBI stated, “They have been stable throughout the past months and amount to 29,730 tons.”

Asadi added, “The US dollar is the main currency in the Iraqi reserves. There are also some reserves in other currencies, in addition to gold. … Due to the troubled military and political conditions of the country, Iraq’s reserves cannot be invested to a large extent, as is the case in China or the United Arab Emirates, for instance.”

“Iraq is distributing its reserves to a number of banks just to protect [these funds], although it does generate some interest on the deposits,” Asadi added.

22 Responses to Dinar Exchange Rate Linked to Oil Exports, Federal Reserves

  1. Safdar August 29, 2013 at 11:55 am #

    This lack of transparency is suspicious from Abdul Basit Turki and his management. Lack of transparency in Iraq usually means corruption.

  2. carolyn saldana August 30, 2013 at 8:51 am #

    Is the IQD about to revalue?

  3. Barry August 31, 2013 at 9:39 pm #

    No Carolyn. The “make $1m from changing $1k into Dinar then back again” ‘99,000% RV’ thing that Western Dinar sellers have been pumping is a scam, and has been all along.

  4. Mr NoMoney September 2, 2013 at 5:45 pm #

    Just want to know..what is the status of IQD internationally..i meant why it is not traded globally like other currencies.

  5. goateeman September 3, 2013 at 1:54 pm #

    Hi Carolyn , Barry is correct and I’ll explain why. Iraq has printed and circulated 79 trillion dinars. Now stay with me here, if Iraq had only printed 1 trillion dinars,and the country has 80 billion dollars in the federal reserves(confirmed by CBI & IMF reports)then Iraq would in no way be able to back an RV at even 1-1, as what has been pushed as the most probable approach to this whole RV thing, a gradual RV. And why wouldn’t they? Its easy, at a 1-1 RV with only 1 trillion dinars printed, Iraq would still be 920 billion dollars short of backing the RV up at 1-1. So in short Carolyn, for Iraq to RV today at 1-1 they would need to have 79 trillion US dollars available to them and they simply don’t have it, nor will they ever! AS I have come to realize since coming across this forum, and yes I to had dinars until I cashed out last week and if you can ,it would be wise for you to do the same thing if you still can. If you want the hard numbers to verify, stay on this site and search ” officials divided over dinar reset” and Barry, John & BOB explain the dinar thing thoroughly, I should know as those 3 handed me my rear end on a silver platter, with their knowledge on this subject. In that forum you will read my responses and theirs, and at the end of it all , they were right and what I believed was wrong,as I admitted to.So Carolyn , From 1 dinar holder to another ,CASH OUT, AND GET OFF THE ROLLER COASTER, sincerely…….Goateeman

  6. runner up September 5, 2013 at 1:26 pm #

    This whole Dinar thing is starting to look like a scam…..they get a couple of people to print the same thing every week to give all the new dinarians hope of an RV….IF you ask me i think we are all gonna be stuck holding a bag with a bunch of worthless paper.

  7. King September 6, 2013 at 4:06 pm #

    Mr NoMoney,

    The IQD was under heavy UN Sanctions up intul this year and prior to that the currency was never traded outsideof the country. Iraq had no ties to the WTO or IMF while under the dictatorship of it’s past rulers. But since the “liberation” that happened back in 1994 and then again in 2001 the US has been working with Iraq and the IMf to bring the country into the global market by driving the value of the IQD down significantly to both honor the sanctions imposed on the country due to its actions in the prior wars and to help give a stable and credible currency that will be compared against and with all the world’s current tradable currencies. As of right now the IQD can only be used outside of the country of Iraq in America. There has been strong and steady increase due to this manipulation, But due to the significant corruption and false information being provided by scammers, many banking insitutions have refused to give out the currency in an exchange because too many people are grabbing the dinars as an investment, something the banks do not condone or suggest.

    Lately self-purported “gurus” have been trying to scam people into believing that Iraq’s currency will suddenly bypass years of development for one all-glorious revaluation that will send the IQD value through the roof straight into Heaven’s gates. This is false.

    I am not going to go into the craziness of that scam but I do hope that Ihave answered your question of why the dinar is not traded outside of Iraq.

  8. 2collectg September 20, 2013 at 2:46 am #

    why do you guy`s ignore BAN KI MOONS preamble prior to him lifting chapter VII? we recognized that iraq is no longer the country it was under SADDAM we also find it necessary to RESTORE IRAQ TO IT`S FORMER INTERNATIONAL STATUS EQUAL TO WHERE THEY WERE PRIOR TO THE SANCTIONS BEING PLACED ON THEM ON AUGUST 6 1990! the next day i went into my personal bank and asked them was does the international banking association consider a countries international status she said they`re currency sir i just smiled!

  9. Barry September 20, 2013 at 8:04 am #

    2collectg – “why do you guy`s ignore BAN KI MOONS preamble prior to him lifting chapter VII?”

    Because his speech was about Iraq restoring it’s *legal status* in the world as not being part of the “axis of evil”, not in pretending Iraq’s money supply hasn’t grown 1,000x since 1990 that’s what caused its value to collapse in the first place. As usual though, the RV-aholics will jump on it and try and “interpret” what he “really” said to be something it wasn’t to whip up fellow “investors” into an emotional frenzy…

    Most people who chant “Chapter 7, Chapter 7, Chapter 7” as a automated slogan in relation to the Dinar’s wealth usually haven’t even read what Chapter 7 actually says beyond blindly & unquestionably regurgitating what their favorite guru “suggests” it means. It has nothing to do with a currency’s value:-
    http://www.un.org/en/documents/charter/chapter7.shtml

    Chapter 7 authorizes the UN to impose sanctions, blockades, diplomatic severance or use military force against a country that steps out of line. That’s it. Removal of chapter 7 allows Iraq to regain the sovereignty to sign treaties, trade agreements, regain autonomous diplomatic relations, etc. Iraq can rebuild its military, be party to political treaties, etc, without having to ask the UN.

    Chapter 7 won’t make Iraq’s GDP magically shoot up 100,000-300,000% (pure delusion as that would equal 4.5x planet Earth sized global economies – see the obvious maths problem with that?) Oil will still be sold in petrodollars and have no more effect on the Dinar than it will the Polish Zloty. The Iraqi Dinar is still not backed by oil because it’s still a fiat currency like everyone else’s – there is nothing whatsoever “special” or “unique” about it beyond the BS pumper mis-selling scam. Iraq’s $95bn oil revenues still can’t even pay for Iraq’s annual $112bn govt budget, Iraq is still running a budget deficit, does not have any “secret wealth” and still owes Kuwait billions in reparations.

    The Oil For Food programme was under Chapter 7 and that ended officially 3 years ago in 2010 (and unofficially in 2003). That’s one example of what Chapter 7 did back in the real world. Most Chapter 7 sanctions stuff like that was already informally inactive anyway years ago, post-Saddam, many for over 10 years now (2003). The UN vote was mostly “dotting the i’s & crossing the t’s”. The only Chapter 7 trade restriction on Iraq now is a ban on selling the stolen Iraqi cultural property (eg, artefacts looted from the Baghdad Museum during the invasion).

    Chapter 7 hasn’t prevented Iraq from exporting oil nor did it prevent Iraq from signing the 2009 oil services contracts with USA, UK, China, Italy, France, Malaysia, Netherlands, Korea, Russia & Turkey. Many trade restrictions were already lifted years earlier. Chapter 7 has not prevented Iraq from revaluing their currency as they already have several times (from 1200:1 to 1164:1) to tackle inflation. That’s what a genuine “RV” looks like in reality. Chapter 7 is not and was not “holding the Dinar back” at all.

    It seems you really don’t understand what “Chapter 7” is, if you think it magically creates some “hidden windfall” several times larger than Earth’s global economy just waiting for you to inherit out of some wildly inflated sense of entitlement. LOL. Chapter 7 is just the international equivalent of a “court order” enabling a series of individual “bad behavior curfews” to be instigated. Lifting “the wrapper” it makes no difference at all to the Dinar’s value (because the curfews within that “wrapper” were already lifted years ago – it’s only the “empty wrapper” that’s been lifted), which is precisely why the Dinar hasn’t changed even 1% in value since it was lifted 3 months ago…

  10. John Richardson September 20, 2013 at 8:21 am #

    Not this stupid pumper cr*p again…

    As Barry said, those who bang on over “Chapter 7″ as some sort of “answer” haven’t a clue what it’s about. Ask them to quote what it is says and you get “Duh, wh-what? I haven’t read it but my guru friend said that it says…”. A bit like “Executive Order 13303” which despite being mindlessly chanted like a mantra by the Dinaraholics, has nothing whatsoever to do with the Dinar or private ownership of anything other than oil assets that are actually inside Iraq’s borders – go read the actual text yourself with your own eyes and stop being so chronically gullible.

    Most Chapter 7 restrictions in reality were lifted years ago. Example from 2010:-

    “The UN Security Council has voted to lift most international sanctions imposed on Iraq during the Saddam Hussein era.” – 15th Dec 2010
    http://www.bbc.co.uk/news/world-middle-east-12004115

    That’s 3 years old. The June UN C7 Vote did nothing at all for the Dinar – just formalizing what was already informally lifted years ago – and the lifting of most oil-related trade sanctions occurred years ago, some in 2003, some in 2007 and some in 2010. LOL. There is nothing external “holding the Dinar back” at all. It’s 1,000x weak because it’s 1,000x overprinted – yes, it really is that simple.

    Some will wake up and deal with the truth, others will spend another 10 years looking for something that doesn’t exist (like an addict in need of a new “secret intel fix”) because a nameless, faceless stranger on the net ‘promised’ to make them a millionaire just from taking $1k, buying $800 worth of Dinar with it (after pumpers take their ripoff 20% cut in exchange spreads), and changing them back in to $760 again (after pumpers take another 5% with “buy-back”). LOL. You just can’t make it up… 🙂

  11. Brian October 2, 2013 at 4:46 pm #

    I think you all need to look at history and follow the money trail. The Iraqi Dinar is about to come back to it’s value before we invaded. If you don’t see that then you are choosing not to…Have you any idea how many instant millionaires were made from Kuwait? The big difference between today and a couple decades ago is that it’s not just governments and companies who run them. Part of the Dinar revalue is a huge scam..but not the part where it will return to it’s former value. You don’t have to be a member of Mensa to figure out how the big picture really works..connect the dots. $ 3 trillion traded daily on forex market. If you aren’t aware that global currencies are getting off the fiat system as we speak then I wouldn’t expect you to see that the undervalued currencies are all about to change. I suppose you’ve never heard of St. Germain or any other prosperity groups? You can choose not to see what you want but that doesn’t mean it isn’t going to happen. Have you ever seen a million dollars cash? Just because you haven’t seen something doesn’t mean it isn’t real. Iraq has resource that rival Kuwait..they share the same fields..you need to wise up and see opportunity and realize that if in fact the US holds a whole bunch of Dinar..why wouldn’t we make the revalue happen and be debt free. There’s a bigger pond than your puddle and you need to see that.

  12. Carolyn October 2, 2013 at 9:00 pm #

    Update an answer to my original question please.. Is the IQD about to revalue?

  13. Barry October 2, 2013 at 10:11 pm #

    Brian – “The Iraqi Dinar is about to come back to it’s value before we invaded.”

    LOL. Yet another false pumper soundbite. The Iraqi Dinar had a value well under 1000:1 back in the mid-90’s almost 8 years BEFORE we invaded. As nice as it is for some to believe the delusion that the invasion caused the Dinar to fall – it didn’t – it was printing too much money. Even the Central Bank of Iraq’s website has that right on their own web-page:-

    Due to excessive government printing of the new notes issue, the dinar devalued quickly, and in late 1995, US$1 was valued at 3,000 dinars.”

    Brian –“Have you any idea how many instant millionaires were made from Kuwait?”

    ROFL!!!! Yes Brian – none whatsoever! There was no “Kuwaiti RV”. At all. That’s openly debunked even on the Central Bank of Kuwait’s own website:-

    Average Exchange Rate of Kuwait Dinar Against U.S. Dollar (Fils):-

    1986 – 290.53

    1990 – 291.24
    1991 – 289.19
    1992 – 293.30
    1993 – 301.32
    1994 – 297.62
    1995 – 298.46

    2013 – 284.69 (Today’s value)

    Timeline:-

    – Iraq invaded Kuwait on Aug 2nd 1990 and tried to replace “Series 3” Kuwaiti Dinar with Iraqi Dinar.
    – Kuwait was liberated by the end of Feb 1991.
    – Kuwait issued new post-war “Series 4” banknotes on March 31st 2001, and completely demonetized “Series 3” banknotes by Sept 30th 1991.
    – Kuwait later replaced post-war “Series 4” banknotes with more modern “Series 5” banknotes on April 3rd 1994 (due to better security features), and demonetized “Series 4” banknotes on Feb 16th 1995. Series 5 notes are still in use today.

    At no-point did any “Kuwaiti RV” take place despite two lots of banknotes changes. The KWD did not fluctuate internationally in value by more than about 4% from Series 3 notes in pre-war 1990 to Series 5 notes in 1995. In fact, today’s 2013 Kuwaiti Dinar vs USD is barely 2.1% higher than 1986’s value!

    The “Kuwait RV’d and made instant millionaires” is a total fantasy fabricated by mentally confused / chronically dishonest & financially illiterate pumpers who’ve been selling you a false “dream”, and telling you a pack of lies all along.

    Brian –“I suppose you’ve never heard of St. Germain or any other prosperity groups?”

    On the contrary Brian, I’ve been hearing that same stupid other scam pumped for over 20 years about NESARA / prosperity funds / “St Germain” (a guy who died on 27th February 1784!) will pop-up as an ethereal ghost with $40,000,000,000,000,000,000,000,000,000,000,000,000,000 zeroes worth of gold bullion (which in reality would be a gold cube the size of the orbit of Saturn, ie, 2/3rds of the solar system from one side of the sun to the other – all supposedly “hidden in an few warehouses on Earth” (think about that for more than 2 seconds, eh?)

    It’s only chronically gullible “newbies” that don’t seem to understand people have been pumping that scam for 20 years (which originated as the “Omega Trust” scam HYIP for which people have been prosecuted):-
    http://www.quatloos.com/NESARA.htm

    All it proves is that if you hang round stupid conspiracy sites long enough, you’ll lose track of reality when you end up trying to justify one well known scam on the back of an even older well known scam which started up when Clinton was still president. (And I’m not even going to get into the “shapeshifting reptilian aliens” stuff found on the same “prosperity packages” hub sites (that then get distributed into “Dinar RV” forums))…

    In fact, it’s just too embarrassing to comment further…

  14. Carolyn October 2, 2013 at 10:22 pm #

    A simple yes oe no please.

  15. John Richardson October 2, 2013 at 10:45 pm #

    LMAO! Oh, God not another one. 🙂

    Come now Barry, everyone knows that the ghost of a guy who died 229 years ago is just *waiting* to give you 50,000,000,000,000x Planet Earth sized economies – EACH – to every person on Earth, and all without any inflation occurring! The fact Earth’s total economy is only $80tn doesn’t matter!

    It’s TRUE – You just have to “believe” and read the “right” Internet sites 🙂 😉

    Take me for example. I get my super-ultra-hyper-mega-secret sources from a space alien named “Ashtar” and a mythological Egyptian Goddess Sekhmet who say Obama is originally from the planet Sirius:-
    http://www.quatloos.com/Q-Forum/viewtopic.php?f=6&t=7905

    There’s kookie, and then there’s total whackadoodle… 😉

    PS: The women who wrote that recent batch of “St. Germain’s prosperity fund” stuff above (Beth Trutwin) later had a nervous breakdown and a court injunction slapped on her for abusing an elderly old man. And yet it’s still spread like wildfire by a “John MacHaffie” who runs a Dinar RV pumper hub site where ANYTHING goes… Seriously.

    Please Brian, stop posting that absurd stuff here. There really isn’t a cube of gold 3.8bn times larger than the sun “hidden on Earth” with your name on it…

  16. Carolyn October 2, 2013 at 11:32 pm #

    I asked a question as an adult unfortunately there isnt an adult oh well. Im leaving this childish and judgemental place. Good luck to all of you.

  17. Bob October 3, 2013 at 8:04 am #

    Brian: “Part of the Dinar revalue is a huge scam..but not the part where it will return to it’s former value”

    No really Brian – that IS the core of the scam! The Dinar will “return” to its former value by redenominating (lopping) 3-zeros off. 1166:1 becomes 1.166:1, and you’ll exchange your banknotes at 1:1000. Everything else IS the absurd “100,000% return investment” mis-selling scam!

    It’s a bit like saying “If you ignore the pyramid scheme in a pyramid scheme, there is no pyramid scheme”! Only those in deep denial do that…

    Telling people to “wise up” when you run around trying to “educate” them on an imaginary non-existent “Kuwaiti RV” that never happened then try and pump the long debunked NESARA scam is embarrassing. The rest of your post if the usual “RV” pumper sales pitch – “Iraq has oil” (so do 100 other countries), “see the big picture man” (I do), “the US holds a whole bunch of Dinar” (no really, they don’t – nor does any other govt – the figures aren’t some “big secret”), “There’s a 301 year old European guy with 875,000x planet Earth’s worth of money just waiting to give me $10bn!” (how can you even say that with a straight face?)

    All you’re doing is blindly regurgitating someone’s else’s long debunked sales pitch out of personal financial desperation. It’s very sad thing to watch that’s been seen thousands of times before. Like those who were told 20 years ago about “prosperity programs” were “imminent” and “not to pay off their mortgages & credit cards because it will soon be cleared for them” that ended up homeless.

  18. Jd October 5, 2013 at 9:05 pm #

    BARRYS COMMENT:

    “Due to excessive government printing of the new notes issue, the dinar devalued quickly, and in late 1995, US$1 was valued at 3,000 dinars.”

    Yes in 1995 it was valued at 3,000 Dinars..So what happened from then to now? Today its valued at 1164. HHMMM, could it be that the value changed ladies and gentlemen. So this is FACT that it does happen. Will its value change to 1 to 1 or higher..who knows..But the fact is that it was 3,000 in 1995 like you said and it is 1164 today.
    There are positive pumpers and negative pumpers..and anyone who says it will RV or wont RV is a pumper..I myself will sit and see who is right.

  19. Barry October 6, 2013 at 9:36 am #

    JD – “So what happened from then to now?”

    Several things including the changeover from the old Saddam Dinars to current NID’s, lifting of sanctions, oil for food, and a natural increase of the CBI’s forex reserves, etc.

    JD – “There are positive pumpers and negative pumpers anyone who says it will RV or wont RV is a pumper.”

    “Negative pumpers”. ROFL. Spoken like a true pumper… 🙂 No, just someone who can do basic junior grade maths… Iraq has a money supply of over 80,000bn Dinar and reserves to back its international value of only $70bn-80bn. That’s why it’s current rate is under 1000:1… (Amazing how many “investors” still can’t even figure that very basic fact out though).

  20. Jd October 6, 2013 at 2:25 pm #

    Hilarious calling me a pumper. Sounds like your mad bro..you mad? Im in the bleachers watching your standup comedy show..Keep going.

  21. kev October 6, 2013 at 8:36 pm #

    jd – “There are positive pumpers and negative pumpers.”

    There’s no such thing as a “negative pumper”. That’s just stupid. A Dinar “pumper” is someone who deliberately and persistently misrepresents Iraq’s planned neutral redenomination as some “get rich quick” “RV”. It doesn’t “invert” because the inverse of that (someone who calls a redenomination – a redenomination) is basically an honest person speaking the truth. No wonder you’re so confused…