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Wednesday, October 14, 2015

DINAR IRAQ & DONG VIETNAM UPDATE, 14 OCT

The Iraqi Council of Ministers decided on Tuesday to hold an exceptional meeting next week to approve the 2016 federal budget.
Governmental statement received by AIN cited “The CoM reviewed during its session of Tuesday the 2016 federal budget law draft and made the necessary notes over this draft,” noting that “The Council decided to hold an exceptional meeting next week in order to approve the law draft and send it to the Iraqi parliament.” /

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ALWAYS SAID BONDS WHERE NOT GOING TO SELL? NO ONE WILL BUY A INTERNATIONAL BOND THAT CANT BE TRADED EVEN THEY SHOWED THEM WITH A HUGE RATE ON THEM. BOND SALE WERE NEVER A POSITIVE FOR THE NEW RATE OF THE DINAR. THEM NOT SELLING IS IN OUR FAVOR.
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[Do you think with IMF or WB not giving the loan.. Iraq and US will be forced to pull the trigger…?] 

THE WORLD BANK AGREED YESTERDAY TO GIVE IRAQ ASSISTANCE FOR DEVELOPMENT ETC. MANY HAVE HAD A HARD TIME WITH A “NO FOR A LOAN” FROM THE WORLD BANK BUT — THEY AGREED TO ASSIST THEM WITH FUNDING GRANTS — THIS IS BETTER. KNOW THE MANY THINGS THAT THE WORLD BANK WILL ASSIST WITH AS WELL — CBI IS OVER BANKS NOW AND THEY ARE ACTIVELY HEAD OF THE BANKING REFORM…SO HELP FROM THE WORLD BANK IS HUGE.
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Article quote: “Iraq has halted its plan to issue international bonds because the yield it would have to pay on the debt was too high…”
Who the heck would buy International Bonds at 1085…Not going to happen! The World Bank said in July it would provide Iraq with loans totaling $1.7 billion, while the International Monetary Fund agreed this year on an $833 million loan program. I would rather see the WB, IMF and UN GUIDING the Government than giving them money! IMO the loans are history.
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Vietnam doubled the trading band of its currency Wednesday to allow it to weaken following an unexpected devaluation of the Chinese yuan.
The State Bank of Vietnam said in a statement that the dong can now be traded in a band 2 percent above or below the central bank-set reference rate compared with 1 percent before.
The announcement comes after the People's Bank of China devalued the tightly-controlled yuan by 1.9 percent on Tuesday, its biggest one-day fall in a decade, and let it drop another 1.6 percent Wednesday.
China's government said the devaluation was part of reforms meant to make its exchange rate more market-oriented. But the decision accentuated worries over the health of the world's second-largest economy following a slump in exports, pulling shares, Asian currencies and prices of oil and other commodities sharply lower.
Vietnam's central bank said the yuan's devaluation will have a "negative impact on the Vietnamese economy" because of the substantial trade between the two countries that is tilted in favor of China's exports.
Two-way trade was $59 billion last year in which Vietnam recorded a deficit of $29 billion.
The devaluation will "help the dong to be more flexible and be proactive in coping with the negative impacts in international markets and ensure the competitiveness of Vietnamese products," the central bank said.

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