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Wednesday, September 12, 2012

Iraq halts plans to cut zeros off dinar currency-cabinet, 12 sept


Iraq halts plans to cut zeros off dinar currency-cabinet


BAGHDAD, April 12 (Reuters) – Iraq has decided to hold off on a plan to knock three zeros off the nominal value of bank notes of its currency because it does not believe the economic climate is suitable, the cabinet secretary said on Thursday.
The central bank said last August it planned to re-denominate the Iraqi dinar to simplify financial transactions in an economy that is still heavily centralized and dominated by oil, and where deals are often carried out in cash.
The proposal to restructure the dinar to bring more liquidity into the market has been awaiting parliamentary approval since last year.
On Thursday, a statement on the website of the cabinet secretary said the cabinet had decided to halt all procedures relating to the redenomination of the dinar “until further notice”.
“The economic committee discussed this issue and so did cabinet … There is a possibility that it could cause some problems in the economic situation. Besides that, this operation is so big that cabinet sees circumstances are not right to control this,” cabinet secretary Ali al-Alaq told Reuters.
Iraq is slowly getting back on its feet after years of war and sanctions. Oil accounts for 95 percent of government revenues and the country’s banking system is still highly underdeveloped.
HUGE PROCESS
The central bank has kept the dinar fixed at 1,170 dinars to the dollar in its daily auction but it recently moved to revalue the dinar slightly to 1,166 dinars after demand for the U.S. currency soared.
The central bank said it also had to tighten regulations over who can participate in the auctions as Iraqi traders sought to snap up dollars for resale in neighboring Syria and Iran, both under Western economic sanctions.
Sales of dollars in currency auctions held by Iraq’s central bank rose as high as $400 million on some days in December from a previous average of $150 million, according to central bank data.
“We have more than 30 trillion dinars in circulation. To withdraw this amount from the market and then to examine them and to dispose of them is a huge process. Even the technical and the monetary capabilities to control a process like this, we consider as insufficient and it is not seen as a priority currently,” Alaq said.
The central bank says Iraq’s large foreign reserves, which have risen to a record $60 billion on the back of high oil prices, will shield it from any damage to its financial system on the national level.
http://www.reuters.com/article/2012/04/12/iraq-currency-idUSL3E8FC8G120120412

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JUST HOPIN THOUGHTS:

There is an article originating from Reuters that is making its way around dinar forums and its title is "Iraq halts plans to cut zeros off dinar currency-cabinet". 
It discusses how the finance cabinet remains in debate on the three zeros etc. 

This article is not a current article as it was dated Thursday April 12, 2012. I feel whoever is posting this article should bring it to the attention of the reader this is an old article.

As we have seen in recent days it is apparent the CBI is remaining quiet on any future plans and awaits a collective decision from the members of parliament. If politicians are pro or con on the issue of the three zeros it doesn’t matter, as the CBI is an independent agency among the factions of the government.

The CBI would like the GOI's support on the issue but the CBI can charge forward regardless of the GOI decision. We just have to be patient and see how all of this unfolds.

I just wanted to bring the article to your attention before you had a chance to hear it in a forum or read it yourself and not notice the date of the article.

We have seen some very positive things developing in the past few weeks such as HCL law coming to a vote soon, the chance Iraq could be removed from CH VII soon, and some GOI agreements.

This is very encouraging and hopefully, God willing, this chapter can close successfully for us all.

Kaperoni - Has there been a change in the plan? 9/12/2012

Kaperoni - Has there been a change in the plan? 9/12/2012

Okay, I am going to toss out a theory…You may or many not agree, but based on actions within Iraq and other events, it may be very close to what we will see happen in the near future.

I believe the plan always was to release the dinar at a “staging rate” at or near 1 to $1. There are many documents that reference that, including what Dr. Fadel wrote and the SIGIR report. So we can say with high probability that was or should have been the plan.

The issue is if that was the case, some liability falls on the CBI and Iraq. They must be able to sustain this rate. Remember as much as 10 trillion dinar may have been sold outside the country, and also regarding what Saleh said, “will be held as a foreign reserve currency..for a very long time.” What that means is that the world’s central banks would, in essence, be funding the RV. We have discussed this before. Through "inter-banking," central banks around the world would buy/sell the dinar, creating benefit to each central bank holding it. Where this becomes sticky is the magnitude in which financially the world would become dependent on Iraq to sustain that initial rate. That would include having a GOI stable enough to continue to progress economically and become open to the world investment firms waiting to come into Iraq. One wrong move, possible violence, and the dinar could plummet, leaving these central banks holding the bag on a near worthless currency.

So we see Shabibi has attempted, on at least two occasions, to bring his dinar to the international level (June, 2011 and again in April, 2012) and to launch this initial rate, only to be denied by the GOI and COM. After much thought, I have come to the conclusion that as corrupt as the GOI and COM are, their reasons, I am sure, are selfish in nature (many of them hold a lot of dinar)…knowing under the current conditions that the probability of failure is too great to risk with the currency (currency they hold) to bring the dinar to the international level and then to only have it fail.

Therefore, as time passes, the CBI is caught in a difficult situation. Economically Iraq needs the RV yesterday. We have seen several articles pertaining to the advancement of the economy, the poor living conditions (or lack thereof), investment into agriculture, manufacturing, etc. So the CBI has a real dilemma…

Do they launch the dinar at this rate and take the risk of collapse of the GOI, etc., taking Iraq back into a sectarian war? Which then would create a situation in which the CBI could not sustain the rate, dropping its value and creating a setback of 2-10 more years? Leaving central banks around the world holding a worthless dinar? Or is there another solution?

Shabibi has a decision to make. Due to the current political conditions, economic demand in Iraq for advancement, and global financial conditions, time is not something Shabibi has to just sit and wait this out. His people are starving, investment is waiting, and economic growth is standing at the doorway. Shabibi can put people back to work, rebuild world class structures, and see his country prosper, at least financially from the wealth of the country. But how? 

Answer: The CBI can toss the responsibility back to the international community.

We have talked recently about ECNs or Market Makers. We see from the Iraqi Banking and Investment Conference that banks, hedge funds, and private equity institutions are all going to this event scheduled for Sept 18-19th, 2012. Clearly, these types of companies all have something in common...they are good at making money supporting currency, especially one with great potential such as the Iraqi dinar. We know the CBI wants to develop a world-class financial industry in Iraq, and these players can help Iraq get there.

So my theory is a switch in the plan...from a risky sustainable rate of .86 or 1 to $1 rate to an aggressive possible free float starting at 1166 or so, letting the global market dictate the rate. This lets the world financial markets raise the value of the dinar based on what it “sees” as progress in Iraq. This creates a situation where the CBI is now “off the hook,” to sort of speak, and it does not have to be concerned with failure. And as the GOI resolves its differences and mandated issues become resolved, the world will see…and the dinar will rise. The greater the progress in Iraq, the faster it will rise. The more open Iraq becomes to the international community, the greater the benefit to Iraq. The key here is…the risk of collapse and risk of global loss by central banks is now eliminated...or at least minimized. 

I think it is entirely possible we may see the dinar come out on the world market, rising to .10 almost overnight. It may rise to 1 to $1 within weeks if the GOI can resolve issues. There is no way to tell for sure until it happens…there is no way to know how fast or how high the dinar will go, but this plan takes a load off of Shabibi and rests it on the world financial market's shoulders. 

In a best case scenario, the plan will go forward as documented…with the “staging rate” of 1 to $1 or thereabouts. In a worse case scenario, we must watch the dinar rise gradually as Iraq’s political stability takes hold. The rate you choose to cash out is then something you need to consider.

BTW, I am never one to go political...but in this case I agree with Senator Lindsey Graham. The blame falls solely upon the US on this one. Lack of direction, commitment, and leadership is why we are even still discussing this issue.

Something to think about.

Kap

Iraqi dinar value will increase against US dollar, Iraq economic expert, 12 sept

Iraqi dinar value will increase against US dollar, Iraq economic expert

September 12, 2012

The parliamentary Economic Commission is seeking the ATM project and the Central Bank is thinking about raising the value of iraqi dinar by selling gold coins.

Ahmed al-Alwani, head of the Parliamentary Economic Commission has said that the committee will address the associated authorities for starting the ATM project all over the country.

Alwani has further added on Tuesday that the project which was initially conceived to work for years and help in the reception of the financial dues of the citizens, but the projects was discontinued because of the situation of Iraq.

He has also said that the committee is planning to address the companies and the authorities that have been responsible for the work like building development and banking sector and providing the support experience.

According to Alwani, this experience is worthwhile when compared to the other countries and their developments.

ATM is one of the most basic parts of the modern life and especially in the banking sector and it was scheduled to start form 2008.

Economic expert Akram Abdel Aziz has confirmed that the central bank is banking upon the idea so selling gold coins in the banks for the citizens and they are taking this step to ensure that the value of iraqi dinars will increase in comparison to the US dollar.

Aziz has further stated that this very idea of selling of gold coins to the other banks by the Central Bank is will actually help raising the value of the Iraqi Dinar in comparison with the US dollar. The dinar will be pulled from the citizens who are agreeing to buy gold coins and the lack of Iraqi Dinars in the market will ensure increased demand and tighten the supply.

He has further added that according to the available information, Central Bank has planned to block 30 trillion of dinars to block the cash surplus. This will led to an increased amount of supply and less amount of demand and that increases the value of the Iraqi dinar in comparison to the US dollar. This whole process will also include the supply of index liquidity money in the Iraqi banks. This liquidity has exceeded 51% and hasn’t found their ways to any kind of employment. This whole procedure is going to raise the prices of the various goods and create the state of inflation in the economic market of Iraq.

The sale of these gold coins will ensure that the inflation will be absorbed, the devaluation of the US dollar will happen and the price of the goods will also get reduced in the market of Iraq.

Mahma Khalil, the MP of the Economic Commission and member of the Kurdish block has confirmed that the custom convention with Iraq has concluded and there is nothing more to it, due to the enactment of the tariff in the country and it will indicate the agreements that won’t serve the national economy but actually they are creating propaganda rather than becoming professional solution.

Iraq has finally signed a memorandum of understanding with the customs and its joint venture along with Iran in the conference of Non-Aligned that took place in Tehran. Khelil has said that the Federal government has refused to work with tariff that has been enacted by the house of Representatives in the year 2010, it has also stressed the desire that the Iraqi government is not going to work with the new Law tariff, rather it will work with the old law that has been applicable from the 1955.

It has also been added that the memorandum of understanding the customs agreement along with the Iranian side and it will not serve the national economy unless the new Tariff Act gets implemented. It has also stressed the fact that old laws have been created on a specific time period and that is why they are not applicable at this age. That is why there is a need for an appropriate law.

It has also been pointed out that the national economy of this day is quite different from the economic situation of the past, especially before the initiation of the Tariff Act of 1955. This act was created for trading with Iran, Turkey and Jordan and then the situation changed significantly. That is why the requirement for a new Tariff Act is being felt. Iraq is still the second largest economy that does not have a tariff law.
http://www.edinarfinancial.net/news/?quer=&nm=&ny=&nn=801

MILLIONDAY CHAT, 12 SEPT


Millionday RobinRedHed and Fresh Wednesday Round Table Chat:

** Be sure to join our daily chats at 6:30 PM EST and our Round Table Chats every Monday, Wednesday and Friday at 1PM EST at PeopleInvested.com **

[millionday] Muzher Mohammed Saleh, the deputy governor of the bank has said that the soon an amendment of the rules of the Iraqi bank is done; all the private banks that are somehow related to the special fund will help the construction and housing projects. An economist in the Ministry of Finance, Mr. Hilal Al Ta’aan has asked for the passing of a new law on the domestic banks and modifies the Banking Act to make sure that the private banks will be able to take a more active role in the economic development of the country.

[millionday] He has also added that the Banking Act No. 28 stops all the banks be it private or public to get associated with any other kind of financial activity apart from the banking business and that is why this law requires amendment and make sure that the private banks can also take a real and more helpful role in the development of the economy of the country by practicing financial activities other than banking. He has added further that it is amongst the activities of the banks of buy more money orders from the Ministry of Finance and gain profit from them. This is one of the most important ways of gaining as much profit as possible because the other fake serve departments are not capable of serve the economy of the country.

[millionday] There is a need for the private banks to raise the capital and this way they will be able to provide loans and advances and they can reenter the world of money, because all these banks are now allowed is to issue the decisions and control their personal goal or achieving profit. CBI on the other hand is trying to use the development of the international bank in these banks of Iraq to create as much possible competitive environment and also help with the growth and developments of the banks. This way, Iraqi banks will be able to provide the best of services at the lowest of costs. This is a fact that has been reveled through the statement made by the deputy governor of CBI Muzher Mohammed Saleh.
[millionday] He has also added that Iraq is not all afraid to deal with such banks and get into the arena and provide all its services to the people of Iraq through loans and divers other facilities. Iraq needs to enter into such a development project so that the banking environment which is monopolistic will change a lot. He has also referred to the requirement for the amendment of laws and banking legislation and this way banks which are already backbones of the Iraqi economy will be allowed to play a far more active part in the economic development of the country.

[millionday] Nahida Daini, the former member of the parliamentary committee of investment and economy has asked the CBI to get into the cooperative international development capital to help the people of the country by providing them with loans and advances. She has also added that, such banks will be able to cover the inability of the government to continue funding the housing loans which can benefit a lot of people. Indeed the interest rate will be pretty high but they will be able to substitute the government and the private banks in terms of facilitating and granting loans to the people.

[millionday] She has further added that the end of advance has created a lot of problems for the people at large because it has displaced the workforce that has been working with the construction and construction material along with the movement of the market, whereas the housing loans should be within the purview of the country and should help the reconstruction of the country.

[Angel] Sounds good - progress is being made in the banking industry which will help all the people
[millionday] this is more evidence of the international compliance in banking and that they are moving forward with the economic reform

[millionday] An official from the Central Bank of Iraq (CBI) revealed Tuesday the bank is preparing new strategies to unify the exchange rate of foreign currency in the country, noting that it is seeking to invest the amounts spent to serve the economic stabilization plan. The deputy governor of the CBI Muzher Mohammed Saleh did not comment on the new strategies. Mohammed said the CBI is mainly responsible to maintain the economic stability. He said there are emergencies like regional and internal problems that affect the currency exchange rate.

[millionday] The Council of Representatives decided last month to form an investigation committee, led by the deputy for house speaker Qusay al-Suhail and including the heads of economy and finance committees and chairman of the Supreme Audition Board, in order to inspect the bank transactions on currency auction sale. The main task of the CBI is to keep the price stability, implement the monetary policy, including exchange rate policies, and manage the reserves of foreign currency in addition to regulating the banking sector.

[millionday] wow so they are preparing to change the exchange rate

[millionday] macroeconomic data showed the Iraqi and the existence of a state of increasing the gap and the imbalance between the cash market and the real market (goods and services), and the labor market and the whole cast a shadow on the reality of economic activity Through the sidelines inflation translator higher general level of prices and its impact on the purchasing power of citizens and on the overall course of economic action and the increasing unit imbalance in light of the survival economy unilateral ريعيا, influenced by the size of foreign demand for staple and basic dynamics of the Iraqi economy, which is oil, with the continued survival of the Iraqi economy unbalanced sectoral and limited and weak effectiveness of most sectoral activities and economic development, all of which of course reflects the state of the Iraqi economy overall micro level, and exclusively reality monetary and banking, the statistics showed the CBI if to highlight the topics of liquidity, currency and banking performance,

[millionday] the average liquidity ratio Iraqi banks working 51%, which exceeds the ratio standard of 30%, on the other hand, the data banking activity shows that the volume of deposits with banks weak about the size of currency in circulation, where it is at best that the proportion of depositors and customers with banks 20%, while 80% them prefer cash deal to deal with the banks, reflecting the absence of banking awareness among citizens in the form that compels him to keep cash in order to avoid any occupation or disorder or potential losses. About progress van there, according to statistics the central bank block cash of more than 30 trillion Iraqi dinars, translated a number of traded papers and $ 4 trillion paper cash, and as reflected in the value of the currency to rise from JD 1 to 1000 dinars, and 25 dinars to 25 dinars and so .

[millionday] With a margin of inflation, it was a motivation for the high number of zeros and thus, the comparison here with the dollar shows that currency conversion into U.S. dollars at the dollar makes carrying easier as well as retaining and dealing and trading. Faced with such a situation, there rests with the orientations of the monetary authority to take an active role in influencing trends in money supply by virtue of the existence of a set of facts to support the trend towards the adoption of the strategy to delete the zeros.

[millionday] Them that there is difficulty in conducting accounting transactions in pregnancy and keeping these currencies and circulation and the presence of groups of small cash unacceptable in circulation, as well as to groups other cash greatest need more time and effort to carry out counting to settle daily transactions and the difficulty of conducting transactions and bank accounts of the currencies of zeros many in practice and artistic. I have pointed to an official source at the Central Bank that the deletion of zeros is to enhance the value of the Iraqi currency and reduce the cost of cash trading, and currency as the current where Petrlionat estimates dinars, make the process of cash handling high cost.

[millionday] Hence we believe that this proposal needs to be examined from two angles: first the effect of the deletion of zeros to strengthen the value of the currency, and the second you will contribute to the process in a positive impact on monetary indicators, and whether this approach does not entail any consequences related to track financial and administrative, including operations the inevitable fraud. In our opinion, humble that the adoption of a strategy for managing and structuring currency require briefing all economic indicators, including the effectiveness of the real sectors and services in the economy, and what percentage of its contribution to GDP sectors that are supposed to be income-generating and reflect the ability of the economy and Rsanth beside what is the status of the trade balance and the level of investments and the general budget and trade indicators, financial and monetary.

[millionday] If the aim of lifting the zeros is to enhance the value of the currency we think it will not happen implicitly because appreciation of the dinar and strength come from the diversification of income sources diversified infrastructure sector so that they are able to produce goods and services and especially that the growing dependence on the oil sector as a supplier base and President makes the economy vulnerable external fluctuations on oil in accordance with the request that it be reflected on the stability of revenue from foreign exchange and cash balances enhanced the value of the currency, as well as that this situation would keep the single export content and increasing import content with a wide range of external assumption. Thus, the saying that the procedure would enhance the value of the currency needs to pause and reflection because the currency's strength and durability comes from the strength of the economy and the diversity of its sources.

[millionday] The other side and last If this trend has been adopted by many countries, including Bolivia, Sudan and Brazil and Turkey delete several zeros from the currency of any structural reform, that, according to economic data has not been reflected on reducing the rate of inflation being not cause but the result is similar to the procedure for Iraq will not have a great impact the revaluation or reduce inflation. In that these countries have economic stability and security and has an effective contribution to GDP and institutional frameworks and administrative, regulatory and tax rules are relatively supportive of the approach. Accordingly could be coming in a lot of questions, namely:

[millionday] 1. This issue if not an extensive study and degrades the quality of community, the process of subtraction Iraqi market will be presented to the imbalance and tremors once citizen could have imagined that the deletion of zeros will affect negatively on the real value of the currency. 2. Is the proposed strategy will take the nature of the correlation between the money market and the labor market and whether a comprehensive outlook will be the nature of inflation in terms of it not monetary inflation essentially only but it is a structural and structural inflation reflected in the high cost of production and price rises chain.

[millionday] 3. We believe that the proceeds are of this procedure is that the version the new monetary convincingly mathematically and reflecting improved value of the currency and exchange rate but in fact, the latter needs to be the basis for this image is the strength and diversity of sources of income and wealth and profits resulting from the diversity of Structure of the economy. 4. The economic situation needs to pursue structural paths economy and sectors arthropod that, if promoted, they will reflect the furtherance real value of the currency and not an account that funds will be disbursed to switch currency believe that the necessary calls to be directed towards sectors that serve the need for citizen all service sectors Health - Education - that this process may increase the smuggling of funds abroad and the promotion of the so-called money laundering.

[millionday] to interrupt this article here

[millionday] this is talking about the coming at a low rate and how it will effect the country knowing that trade will increase it very fast

[millionday] so they are weighing the different ideas in what to come in at and how it will effect inflation ect -- shabibi has already addressed this and has decided to use gold to stabalize the exchange rate

[millionday] 5. Is has to take the consequences of this process of smuggling money abroad and the promotion of the so-called phenomenon of money laundering. 6. The process of removing zeros process procedural difficult and complex and need to statistics and accurate figures to the overall activities of the country's economic, the other hand must stand on the impact of the stock market in terms of the deletion of zeros reduces capital for companies, and thus affect the functioning of the market with this cost the government time and effort.

[millionday] talking about how the stock market`s growth will not be reflected at first

[Angel] also seems to be saying that experience from other countries shows deleting zeros in and of itself doesn't change the value of the currency for good or for bad, and doesn't affect the rate of inflation. did I read that right?

[millionday] it is saying that it was successful in some countries and they were able to control it -- right
[millionday] 7. The direct this approach will need to review minutes of the reality of the Iraqi economy and its institutions of public and private and the effectiveness of the orientations credit support for the work of the private sector, leading to the elimination of unemployment, and review of the Iraqi economy, which has no reality and positive, represented the high proportion of real sectors to the GDP to compare experiences successful and real to other countries as the basis of the success of any reform process and administrative needs to be a radical remedy that was gradual and serious fiscal imbalances, monetary and administrative that are an impediment to development perspective in Iraq.

[millionday] 8. Also is questionable about (what is the mechanism and rules and regulations and the schedule is supposed adoption of activating the strategy deletions have been, taking negative dimensions can be expected for this procedure as it might be deleted as reflected negatively on the procedure institutional and domestic market and have been calculated as the consequent of fraud and financial corruption). Thread not only delete the zeros to improve the currency or to reflect a positive image for the Iraqi economy in my account and accounting. The larger issue of reform as a development issue by any standards.

[millionday] the gold coins are for many reasons -- for cbi to control inflation instead of the auctions within the country since it is going to all foriegn currency -- and for citizens to have confidence in their money
[ROBINREDHED] ************************
[ROBINREDHED] JMillerTexan] British Foreign Minister William Hague to Baghdad on Thursday for an official visit to Iraq by the Iraqi Foreign Ministry source. Website transfer of PUK leader Jalal Talabani for the source, who requested anonymity, was quoted as saying that Haig "will arrive in Baghdad on Thursday, where he is scheduled to hold a press conference with his Iraqi counterpart Hoshyar Zebari, in addition to meeting with a number of Iraqi officials. Deputy US Secretary of State William Burns arrived in Baghdad on Wednesday in a surprise visit unannounced arrival, where he met with Prime Minister Nuri al-Maliki and discussed the situation in Iraq and developments in the crisis region in particular. Burns also met with President Jalal Talabani and Parliament Speaker Osama Tehran and leader of the Iraqi list, Iyad Allawi, to discuss the political situation.

[millionday] Prime Parliamentary Foreign Relations Committee Humam Hamoudi with the United Nations Mission of Support the UNAMI Ndubisa constitutional Abiourah all issues of concern to the democratic project in Iraq and reforms paper presented by the National Alliance to resolve the current political crisis. A statement by the committee Wednesday that Hamoudi received on Tuesday the UN official, and explained to him that the reform paper presented by the National Alliance broader and wider than the agreement of Arbil a worksheet for each aspects of the state Almghafool ​​them throughout this period and that the looks of it the people in the period after 2003.

[millionday] He pointed out that the UN official listened to the truth of what is happening from a determined effort in the House of Representatives for the passage of laws that would help to promote economic development in the country

[millionday] Began this afternoon meeting of the Presidency of the Council of Representatives with the committees of the oil and energy and legal Alniabaten presence of the Minister of Oil Abdul Karim and coffee. The Agency (news) on Wednesday said the meeting will discuss the subject of oil and gas law, the presence of the oil minister, and so get out Bhetwavqat about the law.

[millionday] And said general manager TBI Hamdiya dry in a press statement that the bank has within its structure Division for money laundering run cadre has great experience, studying the customers in terms of filing to prevent any attempt to money laundering . Added Dry: that the bank is subject to follow BSA, pointing to the number of current accounts amounted to 5 000 account and savings accounts three thousand account in addition to the existence of accounts fixed. Mentioned that to the bank with 14 branches in the general areas of the country and three overseas branches and provide services at the level international.

[millionday] Ministry of Commerce announced that Iraq will participate in the work of the Arab Economic Forum European organized by the General Union of Chambers of Commerce, Industry and Agriculture in the country Arab cooperation and coordination with the European Investment Bank and the European Commission at the Union of Chambers of Arab city of Beirut, Lebanon, during the period from 12 - 13 September ongoing. A statement from the Ministry received Agency (news) copy of it Aaleom Wednesday: that the Iraqi delegation headed by Deputy Director General of the Department of Foreign Economic Relations Ministry Azad Hussein Rashid representative of the Chief addition to representatives from the Iraqi private sector and Iraqi Federation of Industries and Commercial Attaché Iraqi in Beirut .

[millionday] He added: that the forum will be sponsored by the state of Lebanon and the participation of a large number of businessmen in the Arab countries, European countries and Arab and European experts and representatives of investment funds and funding for the Arab States. He explained: that the forum will discuss over two days across a number of sessions issues of the New Partnership for cooperation and development between the Arab and European countries and the ways and mechanisms of cooperation between the European Investment Bank and financing institutions and development in the Arab countries to open up new economic common interests to build a road map towards a better economy in the sectors of banking, infrastructure and clean energy, communications, information and technology funding, education, health, industry and small and medium enterprises and establishment of investment partnerships future between the Arab states and European countries, as well as holding bilateral meetings directly between businessmen participating in the forum.

[lorijeanmarshall] millionday So this one and then the one on the 18th. Hmmmmmmmmm
[hstrymknwmn] millionday sure wish it had to rv before that meeting
[millionday] thats what i say -- hmmm
[lorijeanmarshall] millionday RV possible before this or the latter?
[millionday] me too hun -- but in order to be able to be respected as an active participant it seems they need to move forward with their reforms
[millionday] it is close to these meetings -- has to be --

[ROBINREDHED] Some Iraqi economists are less than thrilled with the idea of a new currency being introduced during 2013, but if the financial committee in Iraq’s Parliament has its way not only will there be new bank notes, but coins will once more be seen in circulation. The currency reform being planned for next year will include removing three zeros from all existing currency denominations.
[ROBINREDHED] According to Iraq Central Bank Deputy Governor Mazhar Salih, “We are determined to change the Iraqi currency because the biggest bank note in Iraq is 25,000 dinars, which is the equivalent of $21. This has forced Iraqi merchants to resort to U.S. dollars. Besides omitting the zeros from the currency, we will redefine the Iraqi currency and have bank notes larger than 25,000.”
[ROBINREDHED] Najiba Najib is a financial committee member. According to Najib, the new currency would circulate simultaneously with the older bank notes for three years before the notes being replaced would be demonetized. The committee has presented proposed designs for seven bank notes ranging from 5- to 200-dinar denominations as well as coins in 50-fils to 2-dinars denominations to the central bank. Details of the proposed coins were not immediately available, but it was learned through Najib that the waterfall of Geli Eli Beg is among proposed vignettes for the new notes. It appears the proposed vignettes will attempt to appease all major ethnic groups within Iraq since three of the proposed designs have Kurdish themes. It was also learned the notes and presumably the coins will include legends in Arabic, Kurdish and English.
[ROBINREDHED] Kurdistan Economic Forum Vice President Faysal Ali is among those opposed to a currency reform at this time. According to Ali, “The political situation in Iraq is very unstable and it is economically weak.” Ali continued, “Therefore, it is not possible to change the currency now because in order to do so we would need more than a trillion bank notes and coins. Exchanging new bank notes with older ones being used by citizens will greatly harm the economy.”
[ROBINREDHED] this also is an opinion piece

[millionday] High-level delegation from several Ministries and headed by Deputy Prime Minister Financing of Iraq's reconstruction to be discussed with international banks and investors Iraq to welcome foreign investors at major London convention and offer stake in the country's economic and financial future. A major investment conference for Iraq will get underway in London next week from the 17-18 September

[millionday] A high-level delegation, endorsed by Iraq's Prime Minister Nouri al-Maliki and led by the Deputy Prime Minister, Rowsch Shaways, will be welcomed by the UK Minister of State for Trade and Investment, Lord Green, at London's Grange Tower Bridge Hotel. "Iraq is embarking on a major redevelopment programme and all government departments are preparing for huge growth and expansion" said Deputy Prime Minister Shaways. "The aims and objectives of Iraq Finance 2012 complement the urgent needs and reforms required across the country".

[millionday] The delegation will discuss Iraq's investment requirements and key opportunities for regenerating the country's financial sector. Iraqi Ministers and government officials are expected to call upon the support of the international community to help in financing Iraq's reconstruction. It's also a chance for foreign investors to discover the massive financial potential in a stabilised Iraq. The country is already emerging as a major centre for international investment following its long isolation from world markets.

[millionday] Major opportunities exist across several industries if the appropriate financing and domestic banking sector is fully established. Iraq will use the conference to present its ideas for PPP and project financing, as well as a series of reforms and investments for its banking sector, including the restructuring of state banks. The event has already attracted widespread investor attention. Leading investment and private banks are taking part together with IOCs, technology companies, insurance providers, and other financial institutions, all hoping to capitalise on the reconstruction of Iraq's physical and financial infrastructure.

[millionday] Haider al Abadi, Chairman of Iraq's Parliamentary Finance Committee said: "This conference will contribute to the existing work of the committee by exploring mechanisms for regenerating the financial sector through active participation and dialogue with international clients, as well as to address any immediate and long term needs for reform". 

BLAINO CHAT, 12 SEPT


5:29:45 PM] CITIZENS OF PLANETDINAR.COM, APPARENTLY THERE IS A CORRUPTED FILE PROBLEM WITH TODAYS CONFERENCE CALL, WE ARE WORKING TO RESOLVE THIS, IF POSSIBLE THE PIN CODE IS NOT THE PROBLEM THE CALL RECORDING IS DEFECTIVE AND CORRUPTED

target: [6:27:13 PM] Blaino: SEEMS WE NEED SOME CLARIFICATION ON THE CLARIFICATION............

target: [6:27:34 PM] Blaino: I'LL INTERVIEW MYSELF.... SINCE I KNOW ALL THE REALLY "GOOD" QUESTIONS...

 target:  [6:28:17 PM] Blaino: OK... "bLAINO, DID YOU INTEND TO INDICATE THAT THERE WILL BE NO RV ANYTIME SOON?" [6:28:27 PM] Blaino: NO, I WAS COMMENTING ON THE INHERENT TRUTH IN SEN GRAHAMS REMARKS.... WE COULD RV AT ANYTIME...

target: [6:29:00 PM] Blaino: BLAINO, WHAT DID SEN GRAHAM SAY?

target: [6:29:13 PM] Blaino: IN ESSENCE, HE CITED THE FACT THAT IRAQI GROUPS... KURDS, SHEIA AND SUNNI ARE RETREATING TO THEIR CORNERS.... AND THAT THERE IS STILL NO CLOSURE ON THE HCL... OR THE MINISTER.  ALSO, HE VOICED CONCERN AND FRURTRATION OVER THE TOTAL LACK OF LEADERSHIP OF THE BARRY O ADMINISTRATION.... IN ALMOST EVERY WAY
target: [6:31:36 PM] Blaino: "BLAINO, ARE WE STILL AT DINARICON ALERT LEVEL 5+?"

target: [6:32:10 PM] : Blaino: YES, I SEE NO REASON TO RETRACT FROM THAT POSITION

target: [6:33:36 PM] Blaino: I HAVE ADDITIONAL INTEL THAT I CANNOT REVEAL IN IT'S ENTIRETY WITHOUT PLACING A RISK ON TWO FOREIGN NATIONALS LIVES AND THE CAREERS OF SEVERAL AMERICANS HERE AND ABROAD.... BUT UNTIL OR UNLESS THAT CHANGES, WE STAY AT 5+

target: [6:35:56 PM]: Blaino: PERSONALLY, I "HATE" THE IDEA OF "IF ONLY YOU KNEW WHAT I KNOW!".... HATE IT, HATE IT, HATE IT..... BUT GIVEN THE CIRCUMSTANCES.... I FEEL THAT I OWE THE ROOMS THAT MUCH, BUT AGREEMENTS AND HAZARDS TO THESE FOLKS PRECLUDE ANY DISCUSSION Blaino: FOR NOW

target: [6:36:33 PM] Blaino: "BLAINO.... DON'T THEY HAVE TO: BE OUT OF CHAPTER 7, PASS THE HCL, PUBLICIZE THE MINISTERS BEFORE THEY CAN RV?"

target: [6:38:26 PM] Blaino: THESE ARE MARKERS FOR SURE.... HOWEVER, I BELIEVE THEY CAN ADVISE THE BIS AND FROM THERE CIRCULATE A NEW VALUATION FOR THE IQD AT ANY TIME.... BEFORE, AFTER OR DURING THE ABOVE! 

target: [6:40:50 PM] Blaino: WELL.... THE LONDON DEAL IS HUGE... AT LEAST IT THREATENS TO BE A REAL GAME CHANGER!

target: [6:43:15 PM] Blaino: WHY WOULD YOU HAVE SUCH A MEETING IF : YOUR CURRENCY SUCKS CANAL WATER AND HAS NO REAL WORTH IN THE WORLD, YOU HAVE NO INTENT TO CHANGE THAT.... AND YOU "REALLY" HAVE THIS 'PRINTING PROBLEM' WITH THE REPLACEMENT CURRENCY?????

target: [6:44:03 PM] Blaino: SO... IF INDEED THIS IS HALF OF WHAT IT'S CRACKED UP TO BE (LONDON) THEN.... WE (ALL) WILL NEED A WORTHY CURRENCY OR NONE OF THIS WORKS AT ALL

target: [6:45:35 PM] Blaino: FROM MEMORY AND Q N A.... VND QUESTION, NO IDEA, BUT NOT SUPPORTING THE CONCEPT THAT THEY CANNOT RV WHEN THEY WISH....

target: [6:46:18 PM] Blaino: ALSO, HAVING A "CRISES OF FAITH" ON THE WHOLE 'BASKET OF CURRENCIES' TO REVAL..... SURELY MANY

target: [6:48:24 PM] =Blaino: COUNTRIES USE A BASKET OF CURRENCIES TO HOLD VALUE, ETC... NORMAL OPERATING PROCEDURE..... BUT TO REVALUE IN A BASKET OF OTHER CURRENCIES THAT ALL ALSO REVALUE AT THE SAME TIME.... MEBBY A LIL TOO SMOKEY NOW.... FOR ME.... STILL UNDECIDED ON THAT!

target: [6:48:35 PM] Blaino: FROM MEMORY AND Q N A.... VND QUESTION, NO IDEA, BUT NOT SUPPORTING THE CONCEPT THAT THEY CANNOT RV WHEN THEY WISH....

 target: Blaino: FROM MEMORY AND Q N A.... Blaino: "BLAINO,  THANK YOU  FOR THE TIME AND THE ANSWERS....!" [6:49:35 PM] Blaino: NO PROB, THERE WAS MORE.... [6:49:50 PM] Blaino: BRIAN FREEZE JUST NOW.... [6:50:09 PM] Blaino: MORE LATER....

target: [6:50:09 PM]  Blaino: MEBBY Blaino: "THAT'S ALL FOLKS!"


  

DINAR GURUS UPDATE, 12 SEPT

9-12-2012  Intel Guru Hammerman   Exxon Mobile, Phillips, Chevron and some big banking companies that are working under contract in Iraq and have not been paid have put out an ultimatum to get paid by Oct. 3rd. These are serious threats and will shut down Iraq. Also, the CBI site that we can see is set up by the U. S. and is not the real site.  Only Shabibi knows the exact time and date. My personal opinion of what the rate will be is $3.50 - $5.50.

9-12-2012  Newshound Guru Kaperoni    They have been making the announcement to the world for the past two years.  I believe the plan is such that it is good that they keep telling everyone (as more dinar is sold) as that builds there reserves back up (some 76 billion now).  That was the goal of selling dinar.  Now, the question is what is next?  And how can they afford that now that they have sold so much.  That is also accounted for...  Therefore, If this is the event we think it is, and is talked about by various articles, sources as it is, sharing information was part of the plan and was expected.  [post 2 of 2]

9-12-2012  Intel Guru Bluwolf     there is a lot of things occurring in the middle east cause by the powers that BE. But this will not stop what needs to be done and this is the international release of currencies.  Everything is going to happen just like it was stated in the past for nothing has changed...remember there is still something that needs to occur before chapt. 7 is lifted and that is the international release,  for it is the period that seals this issue before the U.N.  THE forces that be have tried everything to stop this but all efforts have been useless...we are about to receive this blessing now for all distractions in the middle east is pushing this issue forward.

9-12-2012  Newshound Guru Adam Montana    we have to let the situation in Libya blow over and then re-evaluate.  I'm positive that even if they had planned on announcing a major revaluation TOMORROW, it would have been put on the shelf for a few days. With any luck, that's exactly what is happening, and we will see a quick turnaround...but I don't have an exact guess...we have to be realistic - Libya is a major part of the Middle East, and a significant RV is going to be a balancing act of EPIC proportions - they need to go into this when the waters are calm, not during a storm.

9-12-2012  Newshound Guru Mike  don't worry about the Central Bank as we have said before they are moving ahead - they have their plan and they know they want to increase the value - they are...doing what they need to do - getting the banking system straightened up - They are on track...they can get the help they need from the IMF - Its all going as planned.

9-12-2012  Newshound Guru Mailman17  TO BE IN LONDON AND THE NEXT IN GERMANY THAT TELLS ME SOMETHING IS AFOOT...THEY MUST BE ABLE TO OFFER SOMETHING OTHER THAN WORDS FOR ONE.  THEY HAVE A PLAN THEY JUST HAVENT TOLD US AGAIN...THATS FINE WE CAN FIGURE IT OUT.  MEETINGS WITH THE WORLD BANK, THE IMF, OBAMA, UN, DEFENSE CONTRACTS THE WRITINGS ON THE WALL JUST GOTTA READ IT AS A WHOLE BIG PICTURE BUT ITS COMING DOWN FAST, DONT BLINK.

9-12-2012  Intel Guru FreewayBill    I have watched what has happened in Libya and throughout the middle east along with the movements of Irael in the past few days and also in the past few months.  Particularly, I want to address the situation in Libya and it's effect on the RV... It has none...We invested in this blessing knowing that there were going to be risks and we have withstood the ups and downs.  This is not even a down!  This will play NO ROLL in when the RV goes. If you want to watch for a date, make it the 20th when the conference begins.  The world will not stop turning because the US has been duped by Israel or whether Libya's issues are good or bad...the blessing is coming and do not let the news get you down. 

9-12-2012  Newshound Guru Adam Montana  The current situation in Libya is going to cause delays. There's no two ways around it. If it weren't for the events over the last 24 hours in Libya, I would probably be holding my breath right now waiting to send out that RV email... but it's just not going to happen until we know how this issue will play out.  I hate to be the bearer of bad news, but as always - I'm not here to bring balloons and cake, I'm here to tell you the facts as we know them.  This is not a dampener, it's not a game changer, it's just a delay...so don't jump out a window or anything.

9-12-2012  Newshound/Intel Guru BGG  The developing narrative we’ve been watching for is Talibani to return and what he’ll be able to do once he gets there.  However, the last couple of days we see a very significant “ramping up” of anti-Maliki sentiment. I am getting word from informed observers that feel as though Maliki may have “over-played” his hand. It has always been my opinion that one way or the other Maliki will be diminished in some fashion. He may still have some choice in the manner which that happens – but not for much longer.

9-12-2012  Newshound Guru Kaperoni  [referencing the upcoming Financial Conference]   Iraq is in dire need for money.  Lots of it.  The world largest investment firms, banks, financial firms, hedge funds, and more are all coming to this event.  Put previous events behind you unless you have the agenda to compare.  This agenda is straight forward, and to the point.  Global investment is a priority which includes the dinar in this agenda.  Also, remember, the ISX is coming on line for international investment through custodial banking January 2013.  Also, Iraq having a currency worth more than the USD would be a significant benefit for them when it comes to paying for imports.  Imports are going to be a substantial part of the reconstruction process.  Therefore, IMO, sooner is better than later.  [post 1 of 2....stay tuned]

9-12-2012  Intel Guru Hammerman    From my airport source in Bagdad, Talabani should be back in Iraq by Sunday.  Maliki will be flying to the U. S. on Monday to meet with Obama and the U. N. to attempt to get all of chapter 7 out of the way.  I am expecting announcements to come out of Iraq sometime after Wednesday night on into next week. I was told from 2 confident sources that on Switzerland forex the IQD was showing up at $7.13 and went up to $9.22, the VND was $.23 and went up to $.32.  I was told they expect the rate to go live between Wednesday night and next Wednesday, just telling you what I was told, but, we have been told this before.  Can I confirm this, No!  High ranking UST people are telling me the live rate will be released between Wednesday morning and this coming Sunday, this is just what I am hearing.   I fully believe it will happen before the 21st, not fact, just my opinion.  We can't ask for much more than where we stand right now.    

9-12-2012  Intel/Newshound Guru Poppy3   The dinar will RV, it is inevitable. Timing is a moving target that has changed 3 very distinct times to date in the last 16 to 18 months. It is closing in again on a definite RV situation and all news is pointing to that again. Every time right at the point of things being completed Maliki for the most part has caused turmoil in some way.  This investment will have the greatest reward of anything in your lifetime so stay strong and stay informed.

9-12-2012  Newshound/Intel Guru BGG   There are several articles saying that the recent bombings were intentional.  They are saying it appears the weapons used were government style weapons, like it's from Maliki, right before the National Conference, doesn't want it to take place. There is no question he is slowing things down.  Since everyone can see where the bombings are coming from, can see who is doing it, I don't think it will stop the National Conference.  The U. S. delegation, McCain, Lindsey Graham, etc. are probably leaning on Talabani to get things done even if it means removing Maliki.  It won't slow things down, it will actually speed things up. 

Currency and restructuring real substance to improve their scientific value, 12 sept

Currency and restructuring real substance to improve their scientific value

Date: Thursday, 09/13/2012 06:33 am




 d. Ikram Abdul Aziz Abdul Wahab 
macroeconomic data showed the Iraqi and the existence of a state of increasing the gap and the imbalance between the cash market and the real market (goods and services), and the labor market and the whole cast a shadow on the reality of economic activity

Through the sidelines inflation translator higher general level of prices and its impact on the purchasing power of citizens and on the overall course of economic action and the increasing unit imbalance in light of the survival economy unilateral ريعيا, influenced by the size of foreign demand for staple and basic dynamics of the Iraqi economy, which is oil, with the continued survival of the Iraqi economy unbalanced sectoral and limited and weak effectiveness of most sectoral activities and economic development, all of which of course reflects the state of the Iraqi economy overall micro level, and exclusively reality monetary and banking, the statistics showed the CBI if to highlight the topics of liquidity, currency and banking performance, the average liquidity ratio Iraqi banks working 51%, which exceeds the ratio standard of 30%, on the other hand, the data banking activity shows that the volume of deposits with banks weak about the size of currency in circulation, where it is at best that the proportion of depositors and customers with banks 20%, while 80% them prefer cash deal to deal with the banks, reflecting the absence of banking awareness among citizens in the form that compels him to keep cash in order to avoid any occupation or disorder or potential losses.

About progress van there, according to statistics the central bank block cash of more than 30 trillion Iraqi dinars, translated a number of traded papers and $ 4 trillion paper cash, and as reflected in the value of the currency to rise from JD 1 to 1000 dinars, and 25 dinars to 25 dinars and so .

With a margin of inflation, it was a motivation for the high number of zeros and thus, the comparison here with the dollar shows that currency conversion into U.S. dollars at the dollar makes carrying easier as well as retaining and dealing and trading.

Faced with such a situation, there rests with the orientations of the monetary authority to take an active role in influencing trends in money supply by virtue of the existence of a set of 


facts to support the trend towards the adoption of the strategy to delete the zeros.

Them that there is difficulty in conducting accounting transactions in pregnancy and keeping these currencies and circulation and the presence of groups of small cash unacceptable in 


circulation, as well as to groups other cash greatest need more time and effort to carry out 

counting to settle daily transactions and the difficulty of conducting transactions and bank 

accounts of the currencies of zeros many in practice and artistic.



I have pointed to an official source at the Central Bank that the deletion of zeros is to 


enhance the value of the Iraqi currency and reduce the cost of cash trading, and currency as 

the current where Petrlionat estimates dinars, make the process of cash handling high cost.



Hence we believe that this proposal needs to be examined from two angles: first the effect of 


the deletion of zeros to strengthen the value of the currency, and the second you will 

contribute to the process in a positive impact on monetary indicators, and whether this 

approach does not entail any consequences related to track financial and administrative, 

including operations the inevitable fraud.

In our opinion, humble that the adoption of a strategy for managing and structuring currency 


require briefing all economic indicators, including the effectiveness of the real sectors and 

services in the economy, and what percentage of its contribution to GDP sectors that are 

supposed to be income-generating and reflect the ability of the economy and Rsanth beside 

what is the status of the trade balance and the level of investments and the general budget and trade indicators, financial and monetary.


If the aim of lifting the zeros is to enhance the value of the currency we think it will not 


happen implicitly because appreciation of the dinar and strength come from the 

diversification of income sources diversified infrastructure sector so that they are able to 

produce goods and services and especially that the growing dependence on the oil sector as a 

supplier base and President makes the economy vulnerable external fluctuations on oil in 

accordance with the request that it be reflected on the stability of revenue from foreign 

exchange and cash balances enhanced the value of the currency, as well as that this situation 

would keep the single export content and increasing import content with a wide range of 

external assumption.


Thus, the saying that the procedure would enhance the value of the currency needs to pause 


and reflection because the currency's strength and durability comes from the strength of the 

economy and the diversity of its sources.


The other side and last 

If this trend has been adopted by many countries, including Bolivia, Sudan and Brazil and 


Turkey delete several zeros from the currency of any structural reform, that, according to 

economic data has not been reflected on reducing the rate of inflation being not cause but the 

result is similar to the procedure for Iraq will not have a great impact the revaluation or 

reduce inflation.


In that these countries have economic stability and security and has an effective contribution 


to GDP and institutional frameworks and administrative, regulatory and tax rules are 

relatively supportive of the approach. Accordingly could be coming in a lot of questions, namely: 


1. This issue if not an extensive study and degrades the quality of community, the process of 


subtraction Iraqi market will be presented to the imbalance and tremors once citizen could 

have imagined that the deletion of zeros will affect negatively on the real value of the currency.


2. Is the proposed strategy will take the nature of the correlation between the money 


market and the labor market and whether a comprehensive outlook will be the nature of 

inflation in terms of it not monetary inflation essentially only but it is a structural and 

structural inflation reflected in the high cost of production and price rises chain.


3. We believe that the proceeds are of this procedure is that the version the new monetary 


convincingly mathematically and reflecting improved value of the currency and exchange 

rate but in fact, the latter needs to be the basis for this image is the strength and diversity of 

sources of income and wealth and profits resulting from the diversity of Structure of the economy.

4. The economic situation needs to pursue structural paths economy and sectors arthropod 


that, if promoted, they will reflect the furtherance real value of the currency and not an 

account that funds will be disbursed to switch currency believe that the necessary calls to be 

directed towards sectors that serve the need for citizen all service sectors Health - Education 

- that this process may increase the smuggling of funds abroad and the promotion of the so-

called money laundering.

5. Is has to take the consequences of this process of smuggling money abroad and the 


promotion of the so-called phenomenon of money laundering.

6. The process of removing zeros process procedural difficult and complex and need to 


statistics and accurate figures to the overall activities of the country's economic, the other 

hand must stand on the impact of the stock market in terms of the deletion of zeros reduces 

capital for companies, and thus affect the functioning of the market with this cost the 

government time and effort.

7. The direct this approach will need to review minutes of the reality of the Iraqi economy 


and its institutions of public and private and the effectiveness of the orientations credit 

support for the work of the private sector, leading to the elimination of unemployment, and 

review of the Iraqi economy, which has no reality and positive, represented the high 

proportion of real sectors to the GDP to compare experiences successful and real to other 

countries as the basis of the success of any reform process and administrative needs to be a 

radical remedy that was gradual and serious fiscal imbalances, monetary and administrative 

that are an impediment to development perspective in Iraq. 

8. Also is questionable about (what is the mechanism and rules and regulations and the 


schedule is supposed adoption of activating the strategy deletions have been, taking negative 

dimensions can be expected for this procedure as it might be deleted as reflected negatively 

on the procedure institutional and domestic market and have been calculated as the 

consequent of fraud and financial corruption).


Thread not only delete the zeros to improve the currency or to reflect a positive image for 


the Iraqi economy in my account and accounting. The larger issue of reform as a 

development issue by any standards.



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