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By John Lee.

Iraq has reportedly devalued its currency by about 20 percent against the dollar.

According to Bloomberg and The Arab Weekly, the Central Bank of Iraq (CBI) has reduced the official rate to 1,450 dinar per US dollar.

The previous official rate was 1,182 dinar to the dollar.

Reuters adds that the decision came as a preemptive move to prevent "draining Iraq's foreign reserves" and help government to secure public servants' salaries.

Riot police were reportedly sent to protect the central bank HQ in advance of the annoucement.

More here, here and here.

(Source: Bloomberg, Reuters, The Arab Weekly)

The co-owners and chief operating officer of one of the largest Iraqi dinar exchangers in the United States were convicted last month by a federal jury following a five-week trial.

Tyson Rhame, James Shaw, and Frank Bell were each convicted of mail and wire fraud conspiracy, as well as multiple counts of mail and wire fraud. Rhame and Bell were also convicted of making false statements to federal law enforcement agents.

“These executives engaged in a lengthy campaign to defraud investors by spreading lies about the investment potential of the Iraqi dinar,” said Acting U.S. Attorney Kurt R. Erskine. “These convictions resulted from years of investigation, which included dozens of electronic and physical search warrants, hundreds of witness interviews, and extensive financial analysis.”

“The conviction of these three defendants is the result of an extensive effort by the government to protect investors from those who make unsubstantiated claims about the potential revaluation of a foreign currency,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Their greed led them to steal the hopes of unsuspecting investors and ultimately led them to their demise. The FBI and its partners make it a priority to root out and punish anyone who preys on investors for their own selfish desires.”

“This was a trial about fraudulent inducements, conspiracy, investment fraud and outright greed,” said Thomas J. Holloman, Special Agent in Charge, IRS-Criminal Investigation. “Rhame, Shaw, and Bell saw an opportunity to build their personal net worth and business position in the currency market by seizing on investors’ desire for high returns on their investments. At the end of the trial, the jury agreed with the government and found the Sterling Currency Group co-owners and chief operating officer guilty of the conspiracy and the underlying frauds. Despite the challenges these complex cases present, IRS-CI is committed to working with our partners at the FBI, and the U.S. Attorney’s Office to show white-collar fraud is still an investigative priority.”

According to Acting U.S Attorney Erskine, the charges, and other information presented in court: Rhame and Shaw owned and operated the Sterling Currency Group, which was once one of the country’s largest sellers of the Iraqi dinar. Bell was Sterling’s chief operating officer. Between 2010 and June 2015, Sterling grossed over $600 million in revenue from the sale of the Iraqi dinar and other currencies, while Rhame and Shaw received over $180 million in distributions.

The evidence at trial established that the defendants took steps to make investors believe they would get rich by investing in the Iraqi dinar. At one point, Rhame posted information on Sterling’s website falsely suggesting that the dinar was about to revalue. At other times, Rhame and Bell falsely claimed that Sterling would cash out investors at airports around the country following a dinar “revaluation.” The defendants also paid substantial sums of money to third parties who in turn spread false information about the dinar on conference calls and Internet chat rooms.

Tyson Rhame, 53, and James Shaw, 55, both of Atlanta, Georgia, and Frank Bell, 55, of Decatur, Georgia, were convicted of conspiracy to commit mail and wire fraud and multiple mail and wire fraud counts. Rhame and Bell were also convicted of making false statements to federal agents regarding Sterling’s operations. The jury acquitted the defendants of money laundering charges. A fourth defendant, Terrence Keller, was acquitted of all charges at trial.

(Source: US Dept of Justice)

The great Iraqi dinar scam, in which con artists peddle the false hope of a massive revaluation of the Iraqi dinar, seems to be finally dying out.

That makes the time right for one of the architects of the scheme to make some more money, this time writing a book about her road to riches.

Eve Dakota (not her real name) told Iraq Business News that while the tricks used to gull people out of money are as old as civilization, the Iraqi dinar presented an opportunity probably unique in the history of scams.

"Many of our victims believe there someone or something mysterious is controlling everything that happens, and we were able to tap in to that," she said.

"It appeals to some strands of Christianity, who see some association with the Book of Revelations and a resurgent Babylon; it appeals to the sort of conspiracy theorists who think that the CIA, Goldman Sachs, the Illuminati and the Republican Party have a grand plan for what they call a 'Global Currency Reset (GCR)'; there are even people who think that this is all being controlled by extraterrestrial life forms."

"All these people want to be on the inside, to be part of the chosen few who will profit spectacularly."

"On top of all that, people desperately want to believe, with many even believing that by thinking positively and having 'faith' they can change the course of world events ... these are the people we target."

Eve's new book, "How to Make Millions Selling Iraqi Dinars", will be launched later today.

By John Lee.

A report published on Thursday by the World Bank focuses on the implications of low oil prices for eight developing countries -- Egypt, Tunisia, Lebanon, Jordan, Iran, Iraq, Yemen and Libya -- and the economies of the GCC (Gulf Cooperation Council).

The Plunging Oil Prices report questions the practice of pegging the Iraqi dinar to the US dollar, noting the that value of the dinar has been falling against the dollar in the parallel market:

"Iraq pursues a policy of a de facto peg to the U.S. Dollar, and therefore monetary policy is constrained in tackling the current shock.

"The Central Bank of Iraq (CBI) had kept the Dinar steady through January 2009.

"In 2014, the nominal exchange rate in the official market remained stable against the U.S. Dollar at 1,166 IQD/1 USD, but the rate in the parallel market increased.

"The CBI has recently taken steps to simplify foreign exchange market regulations, but has not eliminated all existing exchange restrictions and the multiple currency practice.

"With the peg, fiscal policy carries the burden of macroeconomic stabilization, but in this case does not have the space to do so."

Read also:

• End of the Road for the Dinar Scam? 
• ISIS and the Dinar Traders
• Iraqi Dinar Investments: Opportunity Or Scam?
• Iraqi Dinar Revaluation Enthusiasts are Unaware of Bernie Madoff’s Fame

By Guest Blogger.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

For several years, con artists have been peddling the Iraqi Dinar scam – the myth of a massive revaluation of the Iraqi dinar, but that may be about to change.

Using a range of convoluted arguments, these people push the idea that the dinar will increase to 1,000 times, or even 3,000 times, its current value; they or their associates then profit by selling the currency at a fat profit to people who desperately want to believe that they have found a pot of gold.

In a particularly cruel twist, they often target people who are in financial difficulty, and string them along with the fear that they wouldn't want to miss out on this once-in-a-history-of-the-world opportunity.

Self-reinforcing online communities have been created, where the unwitting victims can feel that they are finally part of an elite group destined to prosper, just as long as they continue to keep the faith.

Emotional commitment, and a quasi-religious zeal, all play a role: An April Fool article spelling out the utter absurdity of the Iraqi Dinar scam get-rich-quick scheme was met with widespread anger and hostility in dinar chatrooms.

Anecdotal evidence, however, suggests that even the most diehard "dinarians" are finally starting to accept reality, and that by the end of 2015 this scam may have been consigned to history. Sadly, this will be too late for the many who have been cheated of their savings, their time, and their hope.

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(Dinar image via Shutterstock)

Following the insurgency by ISIS/ISIL, and the declaration of a 'caliphate' to be known as the Islamic State (IS), we have seen an increase in enquiries to Iraq Business News regarding the future of the country's currency, the Iraqi dinar (IQD).

These enquiries typically come from people who have been persuaded to speculate on the currency by buying Iraqi banknotes, often in the hope of a stratospheric returns.

Many of these people, who like to think of themselves as ‘investors’ rather than speculators, genuinely expect to make a thousand-fold return on their money, and therefore are not concerned about the very wide spread between the current buy and sell prices, which can make this a very lucrative trade for currency dealers.

For those who promote the idea that the Iraqi dinar will revalue (or 'RV', as they term it) to 1,000 times its current price, the increase in terrorist activity has several implications.

On one hand, it makes it more difficult to argue that Iraq is on the road to recovery, making the 'Big RV' a more difficult sell. But on the other hand, it provides a useful explanation for why a revaluation, which they have been claiming was imminent for several years, will not occur any time soon. As a result, they can save face and extend the life of their business model. Meanwhile, others have argued that revaluing its currency would provide the Iraqi state with the strength it needs to fight the insurgents.  Read more ...

By John Lee.

Ohio based publication The Toledo Blade has reported the beginning of a new trial of three local men accused of intentionally deceiving investors with the now familiar refrain that the Iraqi dinar will dramatically revalue.

The accused ran a firm BH Group along with two hedge funds, with one defendant allegedly lying about fighting in Iraq. The scale of the fraud is reported to be $23 million.

According to the report, the men are accused of promoting the currency,

"as a potentially profitable investment on the theory that at some unknown point in time a “revaluation” would occur. If the Iraqi government would increase the value of its currency from a tenth of a penny to, say, $2, a $25 investment could turn into $50,000."

All of the defendants have been charged with conspiracy to commit wire fraud and wire fraud as well as various other related financial crimes. Read the full story here.

(Source: The Toledo Blade)

By Nora Lenderby.

Iraq Business News is pleased to announce that our intrepid reporter John Lee has been honoured with an award from the Goldman-Rothschild Institute for Monetary Efficiency.

Although no formal announcement has been made, we understand that the award relates to the maintenance of monetary stability in Iraq.

At first Mr Lee was reluctant to discuss the award, which was conferred at a private ceremony at the organisation's underground headquarters deep in the Swiss Alps, but when pressed he said it was given in recognition of his efforts in helping to limit the number of beneficiaries of the recent thousand-fold revaluation of the Iraqi Dinar (IQD).

“What people don't yet know,” he said, “is that the 'Big RV', the Global Currency Reset (GCR), has already happened, and the big players have all cashed out. That door is now closed – job done. We've turned our billions of dollars into trillions of dollars.”

From Jewish News One. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

A wave of car bombings in central and northern Iraq has killed at least 57 people, heightening fears that the country may be returning to sectarian civil war.

No group has claimed responsibility for the series of attacks, but officials blame most of the violence that has killed nearly 2,000 people since April on Sunni Islamist insurgents linked to al Qaeda's local wing, known as the Islamic State of Iraq.

Iraq civil war fears: PM Maliki vows action against extremists as sectarian violence spirals.

Iraqi Prime Minister Nouri al-Maliki has vowed to confront sectarian militants following a recent spate of car bombings in Baghdad that have left over 75 people dead.

Al-Maliki, a Shia Muslim, was flanked by four ministers at the news conference, including two senior Sunni politicians, in an apparent display of unity:

Posted in Security0 Comments

Video: Attacks on Sunni Mosques

Posted on 18 May 2013. Tags: video

From Jewish News One. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

There has been a sharp rise in attacks on Sunni holy sites in Iraq, causing a fear that the country could face more sectarian violence reminiscent of the bloodshed that the country experienced back in 2006 to 2007.

Posted in Security0 Comments

Video: Iraq – ‘Disciplining’ the media

Posted on 06 May 2013. Tags: press freedom, video

From Jewish News One. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

In Iraq, tensions have again flared up in a new wave of deadly attacks against political and sectarian targets. Iraqi media, especially outlets that speak to the Sunni minority, called it a crisis out of the government’s control.

Then, when government forces loyal to Prime Minister Nouri al-Maliki killed 27 Sunni protesters, Iraq’s private media erupted with rage. Anger on the privately-owned airwaves spelled trouble for the government and Maliki’s response was to shut down 10 satellite TV stations — including Al Jazeera’s Arabic language channel — for propagating an “undisciplined media message”.

All but one of the channels are aligned with Sunni financial backers, and the government’s move is being seen as a crackdown on dissent by Maliki’s majority Shia government.

In Iraq’s factionalised media landscape, who you are largely determines who you listen to. So for Maliki, silencing Sunni TV was nothing less than removing a weapon from the hands of his rivals. For the Sunni minority, Maliki’s move was just one more sign that their rights and interests are under attack.

This week’s News Divide looks at both sides of the struggle. Speaking for the government is Ali Al-Shalah, the president of the Iraq Culture and Media Committee; assessing the government’s actions are Dahr Jamail, a producer for Al Jazeera English, Arab media analyst Nehad Ismail and Ammar Shahbander from the Institute of War and Peace Reporting:

(Source: Al Jazeera)

Posted in Communications, Security0 Comments

Video: Media Regulator Muzzles TV Networks

Posted on 01 May 2013. Tags: Communications and Media Commission (CMC), video

From Jewish News One. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

In a blow to freedom of the press in Iraq, the country’s media regulator has announced it has suspended the licences of ten satellite news networks, including Qatar-based Al Jazeera.

The Communication and Media Commission (CMC) regulator took the action after accusing the networks of inciting violence through their coverage of deadly clashes triggered by a security force raid on a Sunni Muslim protest camp last week:

(Source: Jewish News One)

Posted in Communications, Security0 Comments

Video: Maliki Calls for Talks to End Violence

Posted on 30 April 2013. Tags: Maliki, Nouri al-Maliki, video

From Jewish News One. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

Iraqi Prime Minister Nuri al-Maliki has called for talks to end the violence that has entered a third day in the country’s north where Sunni Muslims are angry over a raid on an anti-government protest camp.

Security forces had stormed a protest camp igniting a gun battle between troops and protesters killing some 50 people, the worst clashes in the country since the US pulled out its forces in 2011:

(Source: Jewish News One)

Posted in Security0 Comments

Video: Landmark Iraq Provincial Councils Vote

Posted on 22 April 2013. Tags: elections, video

From Jewish News One. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

Polls have closed in Iraq in the first elections since the US troop withdrawal. Iraqis were voting to elect members of provincial councils in 12 of the country’s 18 provinces:

(Source: Jewish News One)

Posted in Politics0 Comments

Video: Iraq on Terror Alert

Posted on 15 April 2013. Tags: elections, video

From Jewish News One. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

With the Iraqi provincial elections now just days away, members of the police force and army have cast their votes ahead of time, with lines developing outside polling stations across the country, including in Baghdad and Basra:

(Source: Jewish News One)

Posted in Security0 Comments

Video: Jihadis in Iraq and Syria Joining Forces

Posted on 06 April 2013. Tags: al-Nusra Front, al-Qaeda, Syria, video

From Jewish News One. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

Iraqi intelligence officials have said a cross-border alliance is growing between the Islamic extremist groups al-Qaeda in Iraq, and the al-Nusra Front in Syria.

(Source: Jewish News One)

Posted in Security0 Comments

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• Iraqi Dinars “One of the Most Foolhardy Investments you can Make”
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By John Lee.

Reuters reports that "thousands" of people are still speculating on a huge upward revaluation of the Iraqi dinar, which it describes as "one of the chanciest investments in the world".

It quotes a Las Vegas-based speculator, who previously lost most of his retirement fund on the stock market, as saying:

"It's not a question of if, but when Iraq revalues its currency ... The dinar will eventually have substantial value, possibly the highest in the world ... If the dinar rises to just even a penny, you would have realized a profit of 900 percent."

The article goes on to say that some speculators are even betting that the dinar could rise to a value of $1 to $3, which would represent gains of between 116,500 percent and 349,700 percent.

One dinar dealer, which reportedly charges a spread of 30 percent on transactions, told Reuters he sold about $577 million in dinars to U.S. customers in 2011. "His customers are U.S. mom-and-pop investors - teachers, police officers, and construction workers", says the report.

(Source: Reuters)