Monetary policy of the Central Bank of Iraq

By: Bayyna
Date: Monday, 22/07/2013 11:45 am



Mohsen al-Zaidi

After that we have identified the negative effects of the monetary policy of the central bank with regard to dealing with the growing demand for the dollar and the successor of the negative impact on the Iraqi economy, do not miss the negative social effects, which include:

1 – to seek monthly income varies from one family to another and according to the number of passports that they have and without that there will be work product against this income.

2 – creating a situation of great scramble among citizens and a sense of inferiority in front of the doors of banks distributed to the dollar and carrying them is the so-called descriptions and epithets.

3 – the rush of a lot of staff and workers in the public and private sector and artisans to leave their work and stand in long queues to get a monthly share of the dollar.

4 – open a new door for financial corruption through the exploitation of some of the financial authorities to passport holders who can not get a dollar to participate in the meeting or the acquisition price difference it fully.

The price difference in Alkhmshalav dollars amounted to (450) thousand dinars, an amount equal to the monthly income of some workers, leading to the creation of a state of contempt action and transform the citizen, whether working or not to pusher opportunities especially in light of the absence of any controls for the purchase and sale of foreign currency only The buyer must have a passport and do not see there is any justification for this orphan officer only if the central Among the directions that every Iraqi gets a passport, even if he does not want to travel?

The effects of monetary policy on banks

From the effects of central bank policy monetary impact is clear and substantial policy and plans of banks, credit and investment and the consequent growth in different economic sectors and has identified the Iraqi Central Bank controls granting credits various controls domestic and foreign investment is in the mildly controls and mechanisms we can say about it than good but who punished the central bank that it could not implement its monetary policy in this area, for example, has allowed the central bank to banks and the granting of loans in various forms up to eight times the bank’s capital and under the publications urged banks to achieve this rate or any other rate close to them but did not take into mind that the banks when granting credits are calculated several things before raising the proportion of grants, including:

1 – The amount of yield or interest earned for these credits.

2 – The amount of expenses that will be incurred by these banks because of the grants.

3 – guarantees provided to ensure that credits granted.

4 – the risk of non-payment and customizations that employ for these credits.

To other accounts, which vary from one bank to another.

If what has been awarded five thousand dollars as a loan or an advance or other they will achieve an annual return up to (589) thousand dinars If we consider that the interest rate 10% per annum while the same amount if invested in the purchase and sale of U.S. dollar cash it will achieve an annual return limits (2600) only two million six hundred thousand dinars, as if the bank has invested five thousand dollars interest rate up to 45% per annum and that the motivation or incentive to the granting of loans and advances and banking services will become not relegated to the feasibility as what you would pay the bank to bear the expenses of credit and risk non-payment and follow-up and the opening and marketing branches and affordability while he could achieve four to five times the same income earned from loans and advances in addition to the invested capital guaranteed 100% and there is no risk could face the bank If added to him Auction remittances van yield derived from the bank will pay to be in the full richness and the reluctance of full exercise of any credit or investment policy, the central bank calls her.


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[Jester] HI CASTLE MODS, PEEPS, LURKERS, AND CRITTERS!

[alin] Jester, what you think about MtnGoat’s post?

Jester] alin INTERESTING…BUT I DO NOT THINK WE ARE BACKING UP TO THAT POINT AGAIN… I DON’T THINK HE IS HOLDING UP A GLOBAL RESET…

[dwanna] Jester- If Mt.Goat’s post is true? Would you care to speculate as to why M would be putting off the inevitable?

[Jester] dwanna I DON’T THINK THAT IS WHAT HE IS DOING… SO NO SPECULATION ON HIM DOING IT.

[shatterstar] Jester Do you have a prepared post or are we just winging it?

[Jester] shatterstar I AM WINGING IT TONIGHT..

[peacemaan] Jester Any word on Lew today??

[Jester] peacemaan HEARD HE IS NOT WHERE WE THOUGHT HE WAS… SEEMS THE CENTER OF ATTENTION MAY BE GETTING READY TO CHANGE…
….
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wingnaprayer] Jester Where is the focus going to be now the center of attention is changing?

[cookiesdad] Jester …. your answer to peacemann begs the obvious questions of (1) where is he and (2) where is the center changing to (just asked by wingnaprayer)?

Jester] cookiesdad WELL NOT IN RENO… LET’S LEAVE IT AT THAT…

[bigbear] Jester Jester Are you happy with progress of the process and if so how much

[Jester] bigbear I THINK SO… THERE IS A LOT HAPPENING… LOTS OF POLITICS GOING ON TOO… WE SUSPECT THE HOLD UP BEING A COUNTRY WHERE ALL THE CORRUPTION STARTED… TAKING SOME TIME TO GET THAT TAKEN CARE OF…

[kids] Jester Good evening…any news on gold backed currency?

Jester] kids THAT IS ALL LINED UP AND READY TO GO WHEN THEY GET THE WORD TO DO IT…. NO PROBLEMS THERE…

[amg] Jester would that country be in Europe or North America?

[Jester] NOPE… THINK FURTHER BACK… WHO HAS ALL THE BANKING POWER… WHO HAS THE C

[katydid] Jester you mean USA???? lol

[jetdemon] Jester the evil European banking cartel!

[Iank1978] Rothschilds

[alin] Jester, England?

[lightman1] Iank1978 Bingo

[Jester] THERE YA GO… GOOD DEAL…

[mykitty] JESTER SO WHAT HAVE THE ROTHCHILDS DONE NOW?

[Jester] IT IS JUST A MATTER OF THE I’S DOTTED AND THE T’S CROSSED REMEMBER? THEY HAVE TO MAKE SURE IT IS ALL UNDER CONTROL…

[mykitty] I THOUGHT THEY WERE ALL TAKEN CARE OF.

[jetdemon] I heard its goin down tonight! Lol

BocaLinda] Jester pls stop being elusive lol

[Jester] BocaLinda I DID’T THINK I WAS… LOL

[bigbear] Jester Some have suggested that the Un will force the Iraqi to RV by wednesday

[Jester] bigbear I DON’T THINK THEY CAN FORCE ANYTHING… THEY MAY BE ABLE TO MAKE IT UNCONFORTABLE FOR SOME THOUGH… BY ANNOUNCING THE PEOPLE HOLDING THINGS UP…

Slick2859] Jester so you are saying there is a hold up now and not just the process?

[Jester] Slick2859 NOT IN THE SENSE YOU MEAN IT… IT IS ALL PART OF THE PROCESS OF GETTING IT DONE… A LOT OF PAPERWORK TO GET RIGHT AS THEY GO ALONG… AND IT IS TAKING SOME TIME…

[alin] Jester, if the Chinese want an annoncement, I think the UN should give the world one

[Jester] alin THE UN HAS NO CONTROL OF THE US REPUBLIC OR THE INTENTIONS TO GET THAT DONE… THEY WANT TO SEE IT IS STARTED..

Slick2859] Jester as I understand you, it is part of the process which has no real timeline? Just when the process is done, that is the time, correct?

[Jester] Slick2859 THAT IS PRETTY MUCH WHAT I HAVE BEEN SAYING ALL ALONG… THANKS FOR NOTICING…

[asher] The tape on this loop is wearing thin, could we start a new loop, with a new tape?

[Jester] asher JUST BECAUSE YOU DON’T LIKE THE TAPE DOES NOT MEAN IT IS THE RIGHT ONE… JUST BECAUSE YOU ASSUME THERE MUST BE SOMETHING ELSE DOES NOT MAKE IT SO…

[kids] Jester Is it true 2 other countries might announce ce to put pressure on China?

[Jester] kids NOT SURE IF IT WILL HELP OR NOT… THAT REMAINS TO BE SEEN I GUESS… THE THREAT OF IT MAY WORK MORE TO OUR ADVANTAGE…

[sandytob] Jester Is there credibility to one of two US agencies holding this up?

Jester] sandytob I DON’T BELIEVE SO… THEY REPORT READY… I THINK THEY ARE… LEW HAS GOOD CONTROL OF THAT I BELIEVE…

[really?] Jester, any thots on O speech in Illinos on Weds?

Jester] really? I AM NOT SURE THAT IS THE RIGHT FORUM FOR AN ANNOUNCEMENT OF SUCH IMPORT.. BUT THAT REMAINS TO BE SEEN TOO…

[asher] It is as it is and it is also something else, eh? Jester

Jester] asher WHEN YOU SIT AND WATCH PAINT DRY… DOES THAT MAKE IT DRY ANY FASTER? OR CHANGE THE CHEMICAL PROCESS IT IS UNDERGOING TO FINSH THE PROCESS? NO… AND THAT IS WHAT YOU ARE WITNESSING HERE… A PROCESS THAT HAS TO UNDERGO CERTAIN STEPS TO COMPLETE… ALBEIT COMPLICATED… IT IS STILL A SERIES OF STEPS THAT MUST BE WORKED THROUGH…

shatterstar] Jester a lot of this can be done simultaneously…. people in place, etc.. But how can the nations sit around and let this take however long this is going to take? I don’t think a lot of the nations in the world can afford to sit around like this. There has to be some timetable involved…

[Jester] shatterstar YOU ASSUME THERE IS A BETTER CHOICE… DO YOU WANT IT DONE FAST OR DO YOU WANT IT DONE RIGHT? ALL OF THE CORRUPTION MUST BE UNDER CONTROL TO LET IT BE DONE SO IT DOESN’T GO RIGHT BACK THE WAY IT WAS IN SHORT ORDER… THE WORLD MUST WAIT TO BE PROTECTED FROM THAT… THAT IS JUST THE WAY IT IS..

[sandytob] Jester Tony said that Russia and China were pushing in the UN for this to be done. Said that the US was not….that WF blamed these 2 agencies which each were blaming the other. Any comments?

Jester] sandytob WELL… THEY NEED AN EXCUSE… THERE IS NO DOUBT THAT CHINA AND RUSSIA WANT IT DONE… BUT THEY WANT IT DONE RIGHT…

[Jester] sandytob BLAMING IT ON SOMEONE IS JUST BS… EVERYONE ON THIS SIDE IS WORKING TOGETHER… THEY ARE ALL SITTING IN RENO TOGETHER… CHINA, RUSSIA, UST, LEW, ETC. ETC. .. THERYARE WORKIGN ON IT…

[bigbear] Jester You said —-I think—- If we seen asset backed currency the other pieces of the puzzle such as the Republic would be ready to and the process is near the end

Jester] bigbear THAT IS TRUE… YOU CANNOT HAVE ONE WITHOUT THE OTHER… YOU CANNOT HAVE GOLD BACKED MONEY IN THE FED.. YOU MUST CHANGE AND GET THE UST AND REPUBLIC ONLINE TO GET TO THAT POINT…

[shatterstar] Jester I get that. I also want it done right. What I should ask is.. For those countries that can’t afford to wait, the banks that are waiting for these monies to be released, and citizens waiting to be paid etc.,etc. How does this affect the global reset? Some of these countries are bad off…

[Jester] shatterstar THE US HAS BEEN BANKRUPT AND LIVING OF OF DEBT SUPPORTED FINANCE SINCE THE 30’S… YOU DON’T THINK WE ARE IN BAD SHAPE TOO? THE WHOLE WORLD IS IN BAD SHAPE… TALKED TO A GUY THAT DID SOME CHECKING WITH PIMCO TODAY… HE SAYS THE WORLD CANNOT MAKE IT TO THE END OF THE YEAR… EVERYONE NEEDS THIS… BUT I REITERATE… WHAT IS THE POINT IF YOU PUT A BANDAID ON AND LET IT FESTER INTO THE COAGULATED MESS IT IS TODAY AGAIN IN SHORT ORDER?

LINK to Part2
Call Notes Post By BulldogFord65
 
BulldogFord65:   Hello Family: Here are tonight’s CC notes. Have a peaceful night, and a blessed day tomorrow!

“The righteous cry, and the LORD heareth, and delivereth them out of all their troubles. The LORD is nigh unto them that are of a broken heart; and saveth such as be of a contrite spirit. Many are the afflictions of the righteous; but the LORD delivereth him out of them all.” Psalm 34:17-19

Frank26 IQD Conference Call Monday, July 22, 2013

• Frank began the conference call by reminding all that KTFAlways is a Christian-based website, the name is Keep The Faith Always; Frank asked all to keep our faith in God, that the dinar is blessing we can use to do the Lord’s work, but our faith is in God

• Frank began the conference call with prayer, and the reminder that we should not wait for the dinar blessing to occur to serve the Lord, we should be serving Him now, and have proper priorities; Andy lifted the prayer with the shofar horn blast

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• Frank thanked everyone for their prayers in his behalf during his procedure last week

• Frank also asked everyone to please take care of their spiritual health and physical health; will you be around to enjoy the blessing? Will you be spiritual and physically prepared when the blessing occurs? Frank encouraged all to have proper priorities and to strive to be healthy spiritually and physically

• I Team is protecting VIP’s and take them to/from meetings; meetings start at 9 AM to 11 AM, adjourn, then meet again 9 PM – ?? whenever needed; most meetings occur in the Green Zone

• Last week, M offered B a “blank check;” why did he do that? B is not a numbers guy; B also demanded a census; this “blank check” is huge!

• Walkingstick Post 174 7/21 thread: Iraq infrastructure 2013 will happen this year, large projects in housing, construction, education – this is an invasion of international business!

Why would any big conglomerate be busting down the door to Iraq now??? When we see international investment pouring like a waterfall into Iraq, it is a strong signal they are going forward and not backward!

• Sager post: someone asked if we need to see the rate before the HCL? Sager replied that in his opinion, we should see the rate before the HCL; in Frank’s opinion, we will not see the rate first, they are doing this behind closed doors; Frank’s opinion that we’ll see both together (rate and HCL);

Walkingstick also replied that we should see borders and the census as part of the package with the rate and HCL; Frank’s opinion that Walkingstick is likely correct; the theme of tonight’s call is “The Deal”

• Recall about a month to 1 ½ months ago, M and B had a meeting, then met with international bankers and leaders, now another meeting with M and B, B asks for several things, including a new census – M agreed to all B’s requests (“blank check”)

• Frank has many teams around the globe, and he communicates with them in a variety of ways; there are key words that they look for; read post 311 from Sunday’s (7/20) thread; the banking sector shackled – read and understand this article!!

• Banking systems and monetary reform is going well in Frank’s opinion

• World Bank praised Iraq’s banking sector reform – this leads to monetary reform!!

• 7/21 thread Post 108 by Dinartowncrier: interesting how Citibank and Standard Charter banks looking to exploit the potential in Iraq but navigate the pitfalls – what potential??

If currency not increasing, what potential?? Notice that the international companies leading the investment in Iraq are BANKS; do we think banks would be going in if the currency is going to remain worthless?

• “They will never see the keys to their shackles without a rate” – Frank believes at the meetings at the UN there were resolutions made before UNSC vote to raise CH7 – but they will not allow them into CH6 until they raise the rate; CH7 lifted to allow all that’s going on with the banks now to be legal, but will not go into CH6 until they raise the rate; resolutions were made with Iraq and the GOI!!

• Franks and his teams have not seen anything negative since CH7 lifted, only M attempting to get a third term, which was quickly shut down

• Remember when Frank said if this was not done by April, the citizens will tear apart the country? The citizens know what’s being done and are patiently waiting

• There have been more killings and violence since Ramadan started and the GOI does not care; also the POTUS does not care about the American people – look at similarities between the leaders: no budget, against their own people

• UNSC has resolutions that Iraq will do what they need to do and raise the value, coordinate the GOI and the killings will stop

• In franks opinion, the killings kill the census

• CBI doing an excellent job of controlling the value of the dinar to the dollar, showing they have control even with the volatility in the market, the CBI is keeping the rates close

• Citizens in Basra complaining about physical damage to the currency but it is not being replaced because no go for LD’s to be released, and the CBI is still pulling in 3 zero currency, they don’t want to release it again

• Iraqia TV does not lie, it’s one place that truth can be found

• Frank ignores questions on the forum that continue to say/ask that nothing is happening with the dinar; go do our homework!

• HCL was “The Deal” for CH7; CH7 lift allows the international investors to legally come in, but Iraq is still shackled until they raise the rate – cannot go into CH6 until it happens

• The killings need to stop, it is killing the census, and the census is needed for HCL and for B because he demanded it

• Oil and energy parliamentary calls for passing the energy laws

• Frank and team’s opinion that census is about to be done, followed by the HCL/rate together; in Frank’s opinion, may see it all at once; when?? Don’t know, there is no date or rate

• There is a call for calmness in Iraq – advancement of a pattern

• Formation of committees to follow up on HCL; Article: differences in political between Erbil and Baghdad have been lifted – that’s a major change in pattern! Goes on: The absence of oil law leads to procrastination of the operating intercompany in Kurdistan region but if crisis for countries legality – so lifting CH7 solved the legality issues; political tension between Baghdad and Erbil easing

• 7/21 thread Post 138 economist continued low rate against the US$, in the last paragraph – slight decrease in the sale of the US$ to 1120 IQD– keep paying attention to this market trimming, policing – the numbers keep getting smaller! Keep watch! It’s important

• Frank will not speak any more about Dr S after today, Dr S now reports only to the IMF

• Did I Team get into any kind of trouble? NO; I Team report: the heat was NOT the problem causing the day off last week; there are daily meetings from 9 – 11 AM and again from 9 PM to whenever they are done; meetings in Green Zone but some outside of the Green Zone, but there has been a change — I Team no longer inside of the room during meetings

• I Team report: if the GOI keeps dragging their feet, the IMF will raise the rate

• I Team report: the date and rate has been negotiated, there is a date/rate, but will come out from the UN first; it will still post on the CBI website probably between 2 – 4 AM whenever it does happen; Frank asked I Team if this is a rumor? I Team said no, not rumor

• Eagle1 came in at this point and said that the IMF is very “antsy” about the rate being released; Frank said he agrees, the IMF is very agitated and unhappy with the delays coming out from Iraq

• Frank watching for laws to come out, the friction is not as severe as it used to be, then B will come to Baghdad and all will be wrapped up; M will go to Erbil first, then B will go to Baghdad; also see election amendment laws; silence on Dr S until all charges against him and his team are dropped; from now, do not ask anything about Dr S

• Walkingstick post 148 banking sector shackled by outdated legislation (old laws) that do not fit the change (monetary reform); important article and picture – pay attention to it!

• Article: Kurdistan law makers there is a convergence between baghdaad and erbil; delegation ot negotiate at any time

• Walkingstick post 155 deprive Kurds of their land — why did Saddam want to take away land from the Kurds in Kirkuk?? It’s in the heart of the lake of oil!

• House of Representatives will raise next Wednesday more bills, more laws (8), and hopefully finish 4 this week, and publish in the Gazette, they are very important for us — this year, they have been working on laws, and past 2 weeks, working on laws

Eagle1 came on the call at this point

• Frank continues to remind: THERE IS NO DATE OR RATE!

• ISX traded today at 1.3 billion share, with 5.4 billion in revenues – there was no $ or IQD sign, only numbers in the report, so E1 calculated: comes out to 4.22 per share — IQD doesn’t work, so $4.22???

This is a rate we’ve heard about before but E1 has dismissed it, as it didn’t fit with his budget number calculations; does it mean the rate will come out at 4.22? NO ONE KNOWS!

Trident did analysis of ISX from 1930’s up to 1990’s, the rate was 3.22; the behavior was consistent up to the program rate in 1990’s, now that ISX is up and trading post-CH7 sanctions, they are following the same patterns (some of E1’s comments were lost when the phone lost power, try listening to the CC replay); there have been 2 decades of inflation since the 1990’s that make it easy to correlate what the pattern could be – appears trading range is $4.2 to ? (some conversation dropped due to phones)

Memphis came on the call at this point

• E1: Posting on Bloomberg sale of oil

• (Memphis was not clear at all, very hard to hear; please listen to the CC replay)

• Memphis: expect to see mainstream media talk about Iraq and all that they have accomplished, sale of oil – not talking about currency, just about progress in Iraq, this is a change in pattern, he will continue to watch

• E1: Fox Business News especially in the morning programs make off-hand remarks about what’s going on in Iraq (progress)

• Memphis: (comments not clear, could not note take, please listen to CC replay) said something about Basel III

• E1: Saw in USA that banks here were allowed to use IQD for asset value to become Basel III compliant

• Memphis: (comments not clear, could not note take, please listen to CC replay) something about deleting of information

• E1: statement about deletion of information: probably some are talking out of school, and others are denying; E1 believes the IMF is sitting on information they do not want the public to know; E1 believes were are there, he has report that they will try loading up on the ForEx and if all works, will go live with rates on Wednesday

• Frank: change of pattern in all we’re seeing

• Post #289 from Walkingstick and Megawatt (worked together on an article) Iraq officials divided over dinar reset, but division is over what information is coming from the CBI – it’s old stuff, but amazing, reveals change in pattern in monetary policy; change in economic system of Iraq

• Post 291 from Walkingstick: article that the dollar is dying, hope for return of dinar at 3.3 dollars

• For those not understanding the CBI auctions – again, they are using their own currency (IQD not US$)

• Megawatt on page 1 of 7/22 thread: the IMF recommended that the CBI release the rate to the forex market

• Post 437 predictions for fun

• Detroit’s woes send shock wave thru municipal bond market; why important? Sends shock waves thru many cities, destabilizes, spreads

• Dr S is being protected and believe he will be cleared of everything; he still waits for coordination and cooperation of the GOI to introduce data and laws – and we are seeing that happening

• Forex is next

• Frank closed the call with prayer and Andy lifted the prayer with the shofar blast

Baghdad/with: return economy and Investment Committee member of Parliament MP Abdul Salam Al-Maliki law State reluctance to improve the country’s investment to the routine and the unstable security situation.
Al-Maliki said in a press statement that future news agency received a copy of it on Monday “: the investment which contributes to the advancement of infrastructure and economic development is almost idle in Iraq and does not rise to the level of ambition because of the many obstacles to the development of this file”.
Al-Maliki said: “the investment law in Iraq quite hand application, particularly when compared with what exists in neighbouring countries and the region, adding that the real problem lies in the terms of reference and the routine that manages this file. ”
“The country remains classified within hazardous areas according to the reports of international organizations due to the unstable security situation which has led to reluctance of solid companies to come to Iraq and activate their investments when they received not these reports. ”
He noted: “the reports wronged Iraq as mostly inaccurate reports given that the overall security situation in much of Iraq, has seen security violations, praising the efforts of some provinces profile to attract big investment firms to start work in the South and centre of the country. ”
Maliki warned: “the need to categorize investment companies coming to Iraq and know the pedigree of phantom where there are a lot of companies that had stalled in the State large sums charged, noting that promote investment requires activation to avoid fictitious companies and deal with real companies and the work citizens and serve the good of the country. ”(Finished)

 

Baghdad (IraqiNews. com) The parliament session was lifted till next Wednesday.
Parliament source stated to “The parliament lifted its regular session till next Wednesday after reading a number of law drafts and voting on appointing Falah Shanshal as the head of the Justice and Accountability Commission. ”

Honored by the Association of private banks in Iraq, Iraqi Central Bank Governor Dr. Abdul Basit Turki Saeed granting Shield Association during a working breakfast hosted by the Association of Hotel Ishtar.
And banquet was attended by a number of members of the House of Representatives and heads of professional bodies and a number of government officials and the general managers of the banks, government and heads of boards of directors private banks and members of the Central Bank and a number of businessmen. delivered the President of the Association of private banks in Iraq, Adnan al-Chalabi, a welcoming speech to come, pointing out the role of conservative care and assigning the banking system in Iraq.
Chalabi stressed that the goals that seeks Association to achieve does not depart from those adopted by the central bank. In his speech stressed the central bank governor importance of deepening cooperation between the banks and the central bank to achieve the goals that are in the framework of progress and development of the Iraqi economy, and hoped to continue to banks in the correct track towards better performance service of national interests. were private banks have responded to the directions of the Central Bank and his quest rate cut dollar exchange and succeeded in restoring stability.

This is going to be a very interesting week !

Hi Everyone,

Hope everyone had an enjoyable weekend. It was nice taking some time late Saturday and hiking the mountains with the children. Once I returned back home there were many calls waiting for me with news. Back to the Iraq currency drama…..

Got to tell you the news is very interesting. Here is what I am hearing from my sources. The IMF and the USA as well as other countries are ready for the RV and have been for many days now.

It should have happened last week already. I think we can all conclude that too from the past intel we have heard. The only holdup is in Iraq and its political stalling once again. Thought we were over this hump? Guess not.

There are new situations that are rising to another politcal crisis. Its a long story to tell and I will try not to put you to sleep…..lol… So here goes…

Here is the situation in Iraq: It is multiple issues
Nuri Al Maliki has asked for complete protection after his term from the government in Iraq ends as their prime minister in 2014.
….
Read More Link on Right

He negotiated protection from Iraq soon after the April elections and so has been cooperating. Now he has requested internatonal protection from prosecution in the tribunal of the UN and they flat out said no way.

He is using the RV as blackmail. He is holding the world in hostage! They do not want to give it to him and so he is holding it back. Oh but he has a logical explanation to try to justify it, as he always does (read on below). This is one issue.

The other news I am hearing is that Iraq did not in fact pay the 11 billion in war reparations as promised to pay it 10 days after the June 27th annoucements and speeches which made it July 7th. Again they are trying to get an extension but the UN said no way. Use your reserves, said the UN.

Dr Shabs has no problems with that and says we are prepared to do that but Maliki basically is still hijacking the CBI. Maliki says no! This is when he asked for interpol politcal amnesty.

Instead he said Iraq will pay it by revenues from oil and it may take many more months to have the money maybe into 2014. Of course this is just stalling once again. He must think of his next move like a cornered rat. This guy is not dumb. Once this RV is released the dollars stop flowing to Iran  that is his real intentions. 

Now lets us look at what else is in the horizon-
As we know if you can remember that last Friday the big news was that Iraq broadcast in the mosques and in the news media that within 10 days the SMART cards would be activated.

This would of course also mean the RV and removal of the 3 zeros. The IMF again said this is too long and not exceptable. They believe it is nothing more than a stalling tactic to buy yet more time for Mailki to strategize his next political move on the country. (I thought all this bull___t was over? ) Sorry for my outburst… You can bet that the 10 days would come and go multiple times over and there would be no RV.

The country itself is about to explode! There are also many other countries where the Iraq dinar was seeded for reserves and is supposed to assist in the economies but can’t until it RVs to be a substantial part of their reserve value.

Can’t set revaluations without it and Maliki knows it. They are also protesting now in the UN to get it done. it was promised to them and they went along with this elaborate plan over the last 2.5 years. They are protesting. It could break apart the whole structure of the Global Reset.
  
Here is the most dangerous part of all – and we all fret this
Also as you may remember that Sadir last week announced that if the RV does not happen within a few days they will have the largest protest and rioting they ever experienced.

He has come out publically and said he too is tired of the constant excuses, lies and stalling perpetrated by Maliki and his manipulations. The people want and deserve their money on the cards and other benefits as promised. The country deserves to move forward and finally go international and become a global economic power.

Solutions? (for what my sources told me)

1.Don’t be surprised if somehow Maliki disappears if he does not cave in and give the RV. I have no more to say on this topic. I think you all know what I mean…

2. The UN is going to openly and publicly annouce the RV this week and push the RV activation upon Iraq contrary to what they wanted to do in the original plan. They will still give Iraq the opportunity to save face and make their own announcement, but if not its going anyway and its going this week. This is what many sources are saying. My IMF contact was very strong and sure of it.

3. They will not allow a civil war in Iraq ! Period ! They will pay the reparations from their reserves to Kuwait this week. Something to listen for in the news media, if it makes our news,

This poses to be a very interesting week.

I did not do a post earlier today because I feel Tony is bringing the news as we need it. I do not wish to repeat his intel and give mixed messages.

Go RV!   Go Tony !

Peace and Luv to ya all,
mnt goat

 Ps- please stop asking me what the UU means. I am not going to tell you….lol…maybe post RV.

Millionday Roundtable 7/22/13

    [millionday] howdy all — wow the tariff so i am bring it and we are going to talk about that among other things  we are going to read this first    here we go

    [millionday] Abd al-Hussein al-Abtan, of the Economy, Investment and Reconstruction demanded the Government to resume the Five Years Plan which was developed by the Ministry of Planning. Abtan reported in statement, received by local news agency,

”We demand the Government to take serious measures to consider some sectors such as industrial, agricultural and touristic sectors which are suffering neglect in Iraq, ” he added, noting that ”The economic file realy requires an economic vision and some successful economic plans.”

 A five years plan from 2013 to 2017 has been drafted by the ministry in recent times and it is intended to be implemented in coordination with all concerned ministries.

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     [millionday] so the five year plan including this year

    [millionday] this is being implemented so that is with all of the economic reforms

    [millionday] Behalf of the people Presidency of the Republic Based on what passed the House of Representatives and approved by the President of the Republic According to the provisions of item (I) of Article (61) and item (iii) of Article (73) Of the Constitution. Act the following: – No. () for the year 2013 Law Second Amendment to the customs tariff law No. 22 of 2010, as amended

    [millionday] Article – 1 – The text of Article (11) of the customs tariff law No. (22) of 2010, as amended and replaced by the following: Article – 11 –

First – This law shall be in stages, and are selected and the designation of imported goods covered by each phase in coordination between the Authority General for Customs and the Committee on Economic Affairs of the Council of Ministers that does not exceed the time limit for the application of the final stage and access to the full application of the provisions of the law three years from the date of its publication in the Official Gazette.

    [millionday] note — what this means is that the law will change and be more attractive in the beginning and has sections of application as the planning passes

    [millionday] Secondly – the Minister of Finance to instruct the implementation of this law. Third – This law shall be as of 30/6/2012. Article – 2 – The text of Article (9) of the customs tariff law No. (22) of 2010, as amended and replaced with the following text: Article – 9 – First – The Law of the customs tariff number (77) for the year 1955 and is the Coalition Provisional Authority (dissolved) No. (54) for the year 2004 (trade liberalization policy of 2004).

    [millionday] Secondly – Re working on the orders of the Coalition Provisional Authority (dissolved) No. (38) for the year 2003 (tax reconstruction of Iraq, as amended), and until the completion of stages of the application of the customs tariff law No. (22) of 2010, as amended.

 Thirdly – The provisions of CPA Order (dissolved) No. (38) for the year 2003 on imported goods set forth in the schedules of tariff of customs duties and agricultural calendar attached to the customs tariff law No. (22) for the year 2010 and until the average coverage of its provisions, and as the case may be.

Fourth – does not work any law or instructions or regulations inconsistent with the provisions of this law

    [millionday] Article 3 – This law shall be published in the Official Gazette. Reasons In order to allow sufficient time to provide the technical requirements necessary to implement the provisions of the customs tariff law and maintain the level of prices in the Iraqi market at the present time and protect consumers from price increase expected as a result of the implementation of the Act and to provide assurance the overall difficulty of the application of the law

    [millionday] and the law will be printed and implemented

    [Papatom] (can we talk yet?)

    [millionday] yes of course   roundtable is boring if you dont

    [DlD] What time frame are we looking at? Iyo

    [lorijeanmarshall] Papatom So…….. spill it!

    [Papatom] millionday lol 1955???? the law year was 1955??? and we have been discussing for so long…how are they gonna change prices…if the rate changes…and here they write a LAW…that will protect them…

    [Papatom] lol lorijeanmarshall

    [millionday] they are saying it will be printed right away

    [DlD] Sounds good ty

    [Papatom] millionday yeah… and the reason is to protect the consumer from price increases……..

    [Papatom] plus others…..   1955?

    [millionday] the thing with this is that they are using sections from so many of the laws they have used through the years with amendments

    [Papatom] ahhhhh

    [millionday] and to have their customs in place

    [Papatom] ok;……that makes sense….. not completely re inventing the wheel…. just changing the tire…. so to speak

    [jimplants] i love printed right away

    [anonymous1] sound so much better than soon ,…. or in coming days lol

    [Papatom] jimplants me2

    [millionday] right

    [DlD] Don’t they need to increase value for this to work?

    [jimplants] amen to that

    [millionday] i would say so   this is huge news   huge

    Papatom] I don’t think they would have this…if the rate was going to rise slowly….prices wouldn’t need to be protected…..

    [faith1] ” shall be published in the Official Gazette” ,, when, does anything say when? and after it is published is there a set time frame to implement??

    [DlD] Well bring on then

    [millionday] this is an action to move to the globe and open the door

    [Papatom] I think it’s gonna show that a large difference is coming….and they need protection cus of that

    [millionday] remember we did not expect this to pass so fast

    [jimplants] goes right along with the world bank wto and imf

    [Papatom] but we accept that fast pass

    [simbaspen*] Like today!!!!!

    [The s family] But does printing = implement?

    [millionday] once again they are in a rush behind closed doors so it seems that this is very close

    [millionday] The s family yes

    [The s family] Great

    [DlD] Do we need BIS to sign off?

    [millionday] jimplants very well too

    [Papatom] millionday this kind of answers all the questions all the gurus try to posture… for all the price changes in the market place…..right?

    [simbaspen*] And implement mean activate?????

    [millionday] they are above all central banks and planning  simbaspen* yes   let me look some more brb

    [Red Skyy] So what is the Official Gazette anyway, A newspaper??

    [wmawhite] millionday ……and so many said not to expect anything during Ramadan.

    [lorijeanmarshall] Red Skyy It is where they post all of their laws

    [lorijeanmarshall] wmawhite That’s. Didn’t know how else to explain it. LOL

    [Red Skyy] wmawhite lorijeanmarshall Thanks

    [wmawhite] DlD ………the BIS has nothing to do with Iraq’s laws.

    [Fresh] millionday I’m trying to think specifically where I read somewhere that the tariff act was literally a barrier preventing them from raising the value of their currency – maybe the latest long IMF report…

    [bluedog2] I read that too Fresh

    [wmawhite] lorijeanmarshall ….yw

    [DlD] Yes but do they need to sign off on the rv just as the imf has?

    [lorijeanmarshall] Fresh Well lets hope you are remembering correctly

    [millionday] House of Representatives voted at its ninth meeting of the legislative term first legislative year fourth, which was held under the chairmanship of Osama Najafi, head of the House of Representatives and in the presence of 243 deputies on Monday,

eight laws and decisions, including taking Falah Hassan Chanchal prime board accountability, justice and Bakhtiar Omar Mohiuddin his deputy.

A statement by the Information Office of the Council of Representatives received by the agency Buratha copy of it today that “in the beginning of the meeting initiated by any of the above-Hakim announced Nujaifi hold a special session on Thursday to discuss the security situation in Baghdad and Diyala in the presence of senior officials in the two provinces

    [Fresh] because in the last few days I remember thinking to myself – if they could just get that tariff law stuff squared away….

    [millionday] Fresh i believe that it was the un that stated it on the iraqi side

    [DlD] Well looks like they did lol

    [millionday] President of the Council also called on the parliamentary investigative committees formed, especially the Special Committee Karbala coach’s death to expedite the provision of reports to the House of Representatives. Then the Council voted on a draft law amending the Law seizure of contraband and forbidden traded in local markets No. {18} for the year 2008,

submitted by the Committees of financial and legal due to the lack of reward given to informants and people who detects the money smuggled and forbidden traded in local markets, granted in accordance with Article 5 of Adjustment Act contraband and forbidden money circulating in the local markets No. 18 for the year 2008 in order to correct the error contained in item / First of Article 6 of the said Act.

    [wmawhite] DlD …………the BIS….Bank of International Settlements,….is actually a clearing house for the world’s central banks. It doesn’t sign off on anything.

    [millionday] And completed the Council vote on the draft law regulating the rent of agricultural land and ownership of the right to dispose of them for graduates of agricultural and veterinary submitted by the committees of agriculture and legal for the purpose of agricultural development in both its plant and animal and dissemination methods of modern agriculture and the development of the productive capacity of agricultural land and create jobs sophisticated is recruited from graduates of agricultural and veterinary and contribution of the sector on the development of the agricultural sector and employ scientific expertise and practical application on agricultural land in order to achieve the development of agriculture in Iraq

    [millionday] On the other hand the Presidency postponed voting on the official language of the bill submitted by the committees and legal culture, media and finance, education and higher education until the completion of the check.

 It also ended the Council vote on the bill the second amendment to the law of the customs tariff number {22} for the year 2010 submitted by the committees of Finance, Economy and Investment to allow sufficient time to provide the technical requirements necessary to implement the provisions of the law of customs tariff and maintain the level of prices in the Iraqi market at the present time and Consumer Protection of the increase the expected price as a result of the implementation of the Act and to provide conviction overall difficulty of the application of the law.

    [millionday] level the prices — like that  because of the implementation — very nice and telling if you ask me — so it is time to change pricing — hmmm

    [millionday] The Council voted to prevent the MP Mahmoud Hassan from participating in the work of the House of Representatives for violating the rules of procedure for the submission of a written apology. The Presidency also decided to postpone the vote on Trchihoeda the Appeals judges responsible for hearing appeals on the decisions of the accountability and justice and the report of the Legal Committee to a future meeting.

The Council voted to take Falah Hassan Chanchal President of the board of accountability, justice and Bakhtiar Omar Mohiuddin vice president

    [Papatom] millionday i found something that might be having an effect on the current administration’s desire to get this done… so THEY will be getting the credit for it in Iraq….(Iraq admin. that is… Maliki. etc) when it’s time, you tell me and i’ll post a link or something4

    [millionday] ok let me finish with this one then we will see yours k

    [Papatom] k

    [millionday] He completed the first reading of the proposed law to amend election law, the House of Representatives No. {16} for the year 2005 and sponsored by the Legal Committee in order to conduct free and fair elections and conduct high level of transparency for the purpose of representing the will of the voter truly representative and to allow fair competition and away from external influences for the purpose of improving the political process.

Then completed the first reading of the proposed law to reverse the decisions of the Revolutionary Command Council {dissolved} numbered {1021} for the year 1983, {197} for the year 1994, {145} for the year 2001 submitted by the Legal Committee of the fact that decisions are incompatible with the principles of the rights and fundamental freedoms enshrined in the Constitution, which guaranteed Citizens belonging to trade unions as a trade union lawyers, especially judges who have a long service in the judiciary.

    [millionday] this is crazy how much they have done

    [millionday] He ended the second reading of the draft law on the first amendment to the law of the Agricultural Credit Fund for peasants and small farmers {28} for the year 2009 and submitted by the Agriculture and Finance Committees.

 In presentations to Congress MP Hamid Buffy suggested to increase the Fund’s capital to 100 billion dinars to provide assistance to borrowers from the peasants.

The MP pointed Bayazid Hassan to “the need to increase the number of members of the Fund suggesting that the terms of reference of this fund to the Ministry of Agriculture.”

    [millionday] MP Abbas al-Bayati, to “give the bank the key role of agricultural lending to farmers and not to be confused with the powers lending fund.”

The MP Sabah al-Saadi stressed “the importance of the law in reviving the agricultural situation in the country, calling for a capital increase to fund about 500 billion dinars.” While MP Shirwan Waeli to “give farmers more facilities for the advancement of agricultural reality and land reform.” He MP Adel  of that “agricultural land in Iraq, mostly Lands princely and can not achieve development for farmers, but the demise of this category.”

    [millionday] now remember that the largest and oldest bank in iraq is their agriculture bank — they have announced months ago that it is funding

    [millionday] The MP was amazed names Moussawi provide the Minister of Agriculture request to withdraw the powers of his ministry overseeing the fund and give it to the Ministry of Finance.

The MP Fatima Hamidi has proposed the formation of a committee comprising representatives from the Ministry of Agriculture, Finance and peasants.

The MP demanded Najiba Najib as “the inclusion of animal production specialists within the loans provided by the Fund as well as the need to open branches of the Fund in the Kurdistan region.”

    [millionday] this is a lot of work

    [millionday] Rep. considered reproach league to cancel the role of the Ministry of Agriculture in the Fund and transferred to the Ministry of Finance is an important and positive step to cancel the loop routine may impede the operation of the Fund.

MP Abdul felt Hussein Abtan that “increasing the agricultural sector allocations in the budget, contributing to the revitalization of this sector,” suggesting that “The Under-Minister of Agriculture supervision of the Fund.” For its part, the Committee stressed “taking into consideration the views and proposals of ladies and gentlemen of Representatives.”    [millionday] and a lot of completion

    [Papatom] wasnt there a few articles lately that talked about how a lot of the good farm land was being swallowed by oil production????

    [millionday] The Council also ended the second reading of the draft law amending the Penal Code No. {111} for the year 1969 and the report of the Legal Committee.

In interventions MP Haidar al-Mulla on “the importance of working to develop solutions to the issue of undercover informants through severe punishment on them order not Adhararhm the people.”

MP supported Saman Fawzi tighten the confidential informant penalty if their contribution to the reduction of the number of vexatious litigation

    [millionday] The MP Adel al-Maliki stressed “the importance of development of deterrent penalties for those who wrongly applied the law.”

The MP demanded high Nassif to “amend the law on the confidential informant,” pointing to “the existence of several legal materials reduce the value and benefit the detective.” For its part, saw MP Ashwaq dry the “erroneous application of the law caused lot of innocent people, despite our need for the law,” calling for “punish Detective Detector identity.”

    [letsroll] ” so it is time to change pricing ” …. millionday they have to be right on top of changing the entire economic policies ……. smilen

    [millionday] hmmmm   the last part

    [millionday] The MP called Suad Hamid to “determine the severe punishment of the secret informant who did not reveal his identity.” The MP expressed a useful Albulada support for the courts to “Accounting undercover informants who provide information vexatious.”

 The MP noted Abdul Rahman Alloizi to “lack of real activation of the legal texts to punish undercover informants.” For its part, the Commission confirmed that “the amendment carried out by the House of Representatives in 2009, is tougher than the current adjustment.” Then decided to adjourn the meeting to next Wednesday 07/24/2013

PART 2 CONTINUED

AdminBob:  Two new IMF documents are out and published in the Research Library.

20/7/2013   Article IV Consultations July 2013  Selected Issues 2013

Just go to the Research Library tab and scroll down to these documents.

Dr. Nan: Here is the section from the July 2013 Report that deals with monetary policy (pages 17 & 18). It states that the IMF is advising “liberalizing the foreign exchange market”. I dont know that this report tells us anything we didn’t already know; however,  Kap, or someone more familiar with this information, please highlight important information for us.

Read More Link On Right

  “B. Monetary, Exchange Rate, and Financial Policies – With a severely underdeveloped financial system, high bank liquidity, and administered interest rates, the usual channels of transmission of monetary policy are largely ineffective.

Therefore, the principal instrument available to the CBI is foreign exchange intervention, but its effectiveness has been hampered by CBI regulations. Discussions focused on (a) distortions in the foreign exchange market, (b) exchange rate policy, (c) foreign asset management, and (d) banking system restructuring.

14. The de facto fixed exchange rate has served Iraq well. The authorities agreed that a stable nominal exchange rate provides a valuable anchor for inflation expectations in an uncertain environment, and intend to continue implementing this policy for the foreseeable future.

In the medium term, staff encouraged the authorities to consider creating the conditions which would make possible a move to a more flexible exchange rate policy.

Such flexibility could allow a predictable and gradual appreciation of the nominal exchange rate, triggered by strong oil revenues and the Balassa-Samuelson effect, to accommodate a possible real exchange rate appreciation while keeping domestic inflation low.

15. However, the authorities have been limiting foreign exchange supply to address concerns related to money laundering and terrorism financing.

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.

3 The CBI continues to rely on controls to ration the supply of foreign exchange, which have contributed to the increase in the spread between the official auction and parallel market rate.

The authorities aim to liberalize the foreign exchange market over the medium term. However, given the limited capacity of the financial sector to implement Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) preventive measures, they consider restricting the supply of foreign currency necessary to stem illegal outflows triggered by regional developments and increased import demand financed by illegal sources.

16. In contrast, staff recommended liberalizing the foreign exchange market and improving the AML/CFT regime. Staff noted that effectively limiting supply might be inconsistent with a de facto fixed exchange rate regime.

The CBI has ample international reserves to maintain the de facto peg.

Furthermore, AML/CFT standards do not contemplate ex-ante controls on foreign currency transactions, but focus on customer due diligence and reporting suspicious transactions to an operational and fully independent Financial Intelligence Unit.

In staff’s view, accelerating the liberalization of payments for current transactions would therefore be the best approach to eliminating distortions in the foreign exchange market, the exchange rate spread, and the rents it creates.

It would also allow removing the exchange restrictions and 3 See Section IX of Annex I of the Informational Annex for a list of the exchange restrictions and multiple currency practice subject to Fund jurisdiction. the multiple currency practice, with a view to accepting the obligations under Article VIII.

The improvement of the AML/CFT framework, in line with the MENA-Financial Action Task Force (FATF) recommendations, and FATF standards, together with the ongoing efforts in strengthening AML/CFT supervision by the CBI, would help address money laundering and terrorism financing concerns.

 17. The size of Iraq’s foreign assets (both CBI and DFI) is fueling a domestic debate on their most productive use. Staff projections show that, while CBI reserves are broadly appropriate over the forecast period, fiscal buffers will achieve an adequate level only in the medium term.

 Furthermore, the legal framework and governance arguments do not support pooling of CBI and DFI reserves. Moreover, the low execution rates of public investment, owing to limited administrative capacity and domestic absorptive capacity, suggest that there is little scope for accelerating the spending of foreign assets in the domestic economy.

Increasing the returns to sovereign foreign assets might imply adopting some form of sovereign wealth fund (SWF) as exemplified by international experience (see accompanying Selected Issues paper).

On balance, in light of the need to preserve the independence of the CBI and maintain a high level of liquid reserves to address possible pressures on the Iraqi dinar, and given Iraq’s weak capacity and governance, it seems appropriate to maintain the current two-tier architecture composed of CBI reserves (invested following prudent guidelines) and fiscal reserves held in the DFI.

Should the DFI reserves increase beyond the recommended level of fiscal buffers, it should be possible to modify the DFI structure to allow for a more active management of excess fiscal reserves.

 The authorities agreed that the management of Iraq’s sovereign assets should continue to be cautious, and that a separate SWF would not be appropriate at this stage.” (End of section on monetary policy)

DarbSalad:  Dr. Nan,  Makes you wonder if Turki and/or Maliki is defying the IMF.  Turki was begging the U.S. to extend the protection of the DFI funds during his visit to Washington, D.C. a few months ago.  The Iraqi citizenry appears to be in the same boat as the Egyptians. 

They elected politicians into office which are extremely repressive and a central bank that displays those same characteristics.  I believe the government claimed that an array of employees would finally be compensated in the month of July.

 I presume they are still waiting on compensation for their services rendered?  Many have gone over a year without compensation.

 I saw that Hakim stated today for the them to serve the citizens and solve their problems.

Dr. Nan:   It appears that the other paper “Selected Issues 2013” is mostly background for the Report just issued. It deals primarily with Oil Production, the DF! and Fiscal Policy. I didn’t see anything about Monetary Policy, but it is worth looking over for a “big picture” view.

I don’t see anything significant that most of us don’t already know: they need to broaden their economic base so they are not relying almost totally on oil reserves.

Begs the question: how can anyone work and not get paid for a year? How does that continue?

DarbSalad:  Turki stated nearly two weeks ago prepare to be surprised.  I guess we will find out rather shortly if his word has real meaning.

Tobyboy:  DardSalad,  Guess what your surprise is we are not going to RV this year Keep buying those dinars to help support the  Iragi CBI we love you for your American Money

Kaperoni:  These statements are troubling…

“Given that the current legal framework precludes CBI lending to the government, and that Iraq still does not enjoy access to international capital markets, DFI reserves can be seen as an insurance against the impact of oil price shocks or export volume shortfalls.”

“14. The de facto fixed exchange rate has served Iraq well. The authorities agreed that a stable nominal exchange rate provides a valuable anchor for inflation expectations in an uncertain environment, and intend to continue implementing this policy for the foreseeable future.”

In other words, until the CBI accepts IMF Article VIII, its status quo.

Here is a great comment from the IMF…They are telling Iraq to “float” the dinar!   Now if that is not proof, I don’t know what is….

“In the medium term, staff encouraged the authorities to consider creating the conditions which would make possible a move to a more flexible exchange rate policy. Such flexibility could allow a predictable and gradual appreciation of the nominal exchange rate, triggered by strong oil revenues and the Balassa-Samuelson effect, to accommodate a possible real exchange rate appreciation while keeping domestic inflation low.”

Another good one from the IMF…

“In staff’s view, accelerating the liberalization of payment for current transactions would therefore be the best approach to eliminating distortions in the foreign exchange market, the exchange rate spread, and the rents it creates. It would also allow removing the exchange restrictions and the multiple currency practice, with a view to accepting the obligations under Article VIII.”

Terry:    Now, if they would just listen to the IMF!  Wouldn’t it be nice if that was the surprise Turki was talking about

Tony:    Important article about the budget imo

BAGHDAD / JD / .. announced the Finance Committee in the House of Representatives that the budget of 2015 will be increased by 157 trillion and 285 billion dinars,

 said committee member Magda Abdel-Latif al-Tamimi told the reporter / JD / he was forming a committee to prepare a budget strategy for the coming years, including the budget of 2015 will be Total revenues have increased by 157 trillion and 285 billion dinars, while it will be the total expenditure of $ 168 trillion and 837 billion.

 added that budget deficit that year would be increased by 11 trillion and 552 billion, noting that he will be calculated per barrel of oil at $ 90 in quantities oil source is estimated at 3.85 million barrels per day.

 alerted Tamimi that calculated the exchange rate of the dollar will be increased by 1.16 dinars, pointing out that the Commission had not received the report of a central location around the dinar exchange rate against the dollar, prompting the Commission to adopt the exchange rate on previous years and such a thing It is not permitted at all. / End / / 23     http://dananernews.com/News_Details.php?ID=3605

Enorrste:  I tend to agree with KAP that this is a mixed bag (“troubling” was his word).  I’m pleased that the IMF thinks the fixed rate has been a success.  Whoopee.  At the same time, I hate it when they say the status quo should be maintained “for the foreseeable future.”  Let’s hope they cannot see very far!

On the positive side, though, they are clearly calling for Iraq to prepare to float its currency.  It really can’t get much clearer than that.  Furthermore, although KAP did not highlight this part, I found this quite interesting:

“to accommodate a possible real exchange rate appreciation.”

It would appear that the IMF is expecting a gradual rise over time to some level, after which they will do an actual RV to a “real exchange rate.”  How cool would that be?

I just wish we knew what they mean by “middle term.”  Is that a few months, or a few years?  Only time will tell.  Let’s just hope the Turki brings the “surprise” he promised and that it is the beginning of the float process.  Once that starts, anything could happen.

 Heck, we could get to $1 by January and then the CBI could RV to $3.50.  Wouldn’t that be cool?

I don’t suggest cooking the eggs until they’ve left the chicken, however. Enorrste

Tomceejay:   Enorrste, middle term is simply somewhere between here and there.  Or, between the beginning and the end. 

Samuel the Prophet:  “middle term” is simply a hallway…a nowhere between two somewheres! It is that place of metathesis, where everything that can be shaken is indeed shaken; then it can restrain you no longer from proceeding to the future…that hallway is indeed a place of radical disorientation.

Punisher:   I would guess middle-term means middle of the year which we are in…but I could be wrong. Thanks Dr. Nan, Kap, Enorrste and all!

Samuel the Prophet:  Disorientation and Creative Transformation…mid-term is the time period when  we exit one door and it closes behind us and we enter the new opened door~”let it come to us”..

ZenMav:  Enorrste, What if “in the medium term” only meant “mean while”?  The article says medium, not middle.  Medium can be average, a mean.

The theory might apply if the documents required the trusty Arabish google translation.

As far as the “foreseeable future” comment, they had to say something intelligent and ambiguous.  We Don’t Know isn’t really an option.

Bondtl:   re-read the article with this in mind , authority is the cbi and staff is the imf .  clearly it sounds as if the imf agrees that what the cbi has been doing was good but not for much longer and it’s time to get off the dime and move to article 8 with a float and possible rv later.

KellySue:   I’m happy to see the words “accepting the conditions of IMF Article VIII” in print!! This is where everything on this DA site is leading too. Come on Turki, pull Article VIII off the back burner…..get those laws passed!!

Dr. Nan:  I’d like to call everyone’s attention to two items from the cover page of the IMF Report:

“Staff Report for the 2013 Article IV consultation, prepared by a staff team of the IMF, following discussions that ended on March 12, 2013, with the officials of Iraq on economic developments and policies. Based on information available at the time of these discussions, the staff report was completed on April 30, 2013.

The views expressed in the staff report are those of the staff team and do not necessarily reflect the views of the Executive Board of the IMF.”

“Public Information Notice (PIN) summarizing the views of the Executive Board as expressed during its May 13, 2013 discussion of the staff report that concluded the Article IV consultation.”

Notice the dates. This is the IMF staff report following the March 2013 Article IV consultation with input from the Executive Board during its discussion of the staff report at their May 2013 meeting.

The report is dated July 2013 because it is now being published. I am not looking at this in a negative light because this is based on circumstances and information from 4 months ago, before the release of Chapter 7, before Mailki had his obvious epiphany and is playing nicey-nice with Barzani and everyone else, before all the positive steps we have seen.

Is most of the hard data used in this report still current? Yes. However, there are things that have changed, and those changes have been positive, I think. Again, this is a published report of a meeting back in March. There have been some forward steps.

Tlar:   “14. The de facto fixed exchange rate has served Iraq well. The authorities agreed that a stable nominal exchange rate provides a valuable anchor for inflation expectations in an uncertain environment, and intend to continue implementing this policy for the foreseeable future.”

 Again me thinks we worry to much. A fixed rate is what the 2008 study suggested when they recommended a rate and suggested that the CBI hold and defend that rate for up to two years.

It is identical to what the CBI did in January 2009 when in response to the IMF they held 1170 as the fixed rate. A fixed rate does not mean keeping it at 1166. I just says fixed.

If they RV the currency at say 1 to 1, that would be the rate that they need to fix the exchange rate at and then defend, defend, defend.

   Floating Exchange Rate

  The exchange rate in which the value of the currency is determined by the free market.

 That is, a currency has a floating exchange rate when its value changes constantly depending on the supply and demand for that currency, as well as the amount of the currency held in foreign reserves.

 An advantage to a floating exchange rate is that it tends to be more economically efficient. However, floating exchange rates tend to be more volatile depending on the particular currency.

A currency with a floating exchange rate may undergo currency appreciation or currency depreciation, depending on market fluctuations. A floating exchange rate is also called a flexible exchange rate.

See also: Fixed exchange rate, Crawling peg, Managed float.

  Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

 It looks to me like they are speaking of first getting a rate. Next stabilizing it in the interim/medium/short term for an acceptable period of time, then letting the currency value be determined by the market once oil production and free markets are more developed.

ReVbo:  I was thinking the same thing, Zen. They can’t tell us when they’re going to do it, right? So, “foreseeable future” is about as useful a statement as “soon.” It could mean a year, five years, or tomorrow, so I’d say that’s a throwaway part of the article