Millionday: NOTE — WE HAVE SOME INTERESTING PUZZLE PIECES WITH CHINA TO LOOK AT TONIGHT
Millionday: The US Congress has taken a step closer to granting long-awaited approval to reforms of the International Monetary Fund that would give China and other emerging economies a greater voice in shaping the institution’s policies.
The text of a US omnibus spending bill, released Wednesday morning as part of a budget deal, includes approval for the Obama administration to finally vote for stalled 2010 quota reforms that have become a source of tension between the US and the IMF.
Millionday: NOTE — THE QUOTA REFORMS ARE FOR BUSINESS IN FRONT OF THE IMF AND THE % CHANGES THAT WERE RELEASED TO THE PUBLIC AS BEING ADDRESSED (AWAITING APPROVAL) –
THE US DOMINATION IS EXPECTED TO BE CHANGED WITH THE CHANGES OCCURRING WITH THE “GREATER VOICE” FROM OTHER ECONOMIES-CHINA ETC POLICIES
Millionday: The 2010 reforms called for a doubling of the IMF’s quotas, or the capital countries contribute, and a reallocation to give countries such as China a greater say at the fund. Under the reforms now expected to go ahead, China’s voting share at the IMF would increase from 3.8 per cent to 6 per cent while the US would see its share shaved from 16.7 per cent to 16.5 per cent and preserve its veto. The big losers would be European economies, which would see their voting rights diminished.
Millionday: NOTE — THAT IS A HUGE LEAP FOR CHINA OF 2.2 GREATER VOICE AND FOR THE UNITED STATES OF AMERICA TO SEE ITS SHARE GO FROM .2 BUT PRESERVE THE VETO —-
EU COUNTRIES WILL SEE VOTING RIGHTS MINIMIZED — VERY INTERESTING TO SEE CHANGES RIGHT NOW — WITH OTHER NEWS WE ARE GOING TO LOOK AT
Millionday: NOTE — REMEMBER THE NEWS ABOUT ASIAN ECONOMIC IMPACT WE HAVE SEEN SO MUCH OF
Millionday: Under the legislation, a US administration would have to inform Congress at least seven days before any IMF board vote on granting what is known as “exceptional access” to fund resources above the normal caps.
The bill also calls for a study into whether the IMF should require collateral for loans made under those terms, raising the possibility of countries such as Greece having to hand over control of large parts of infrastructure such as ports or power plants to the IMF in order to secure rescue funds.
Millionday: SO MAYBE THIS WILL LESSEN THE IMPACT ONE ECONOMY HAS ON THE GLOBE DUE TO LACK OF MONITORING AND NON-BUDGETING ETC —
Millionday: ALOT HAS HAPPENED IN THE RECENT PAST THAT COMES TO MIND AND ALSO THINK OF BRETTON WOODS AND ITS PURPOSE WHILE THINKING ABOUT THE TIMELINE OF THE IMF POLICIES ETC THEY ARE TRYING TO REFORM — ALL IRONIC TO ME
Millionday: GREAT JOB ON THE NEWS RESEARCH TODAY EVERYONE THAT HELPED — AMAZING AMOUNT OF NEWS AVAILABLE ON THE SITE — WHOOOPOW
Millionday: I AM NOT CERTAIN IF I SPENT ENOUGH TIME REPORTING TO YOU THE MAJOR CHANGES THAT OCCURRED WHEN THE NEW MONETARY POLICY WAS RELEASED –
WE ARE AND WILL BE SEEING IT A LOT IN THE NEXT LITTLE BIT AS THESE CHANGES OCCUR SO LETS LOOK AT SOME OF IT
Millionday: I WILL NOT BE BRINGING THE ENTIRE POLICY BUT WE WILL BE LOOKING AT SOME OF THE HUGE CHANGES AND MOST IMPORTANT
Millionday: The changes in the CBI’s regulations and operations are designed to give the Central Bank better control of the money supply while at the same time providing greater certainty to banks with regard to the options and terms for managing their liquidity.
The new government securities market is also expected to play an important positive role in bank liquidity management in conjunction with these new regulations.
Banks will be expected and financially encouraged to manage their short-term liquidity needs with other banks (or the market more generally), turning to the central bank as a last resort. The CBI will hold meetings with banks in the near future to discuss the proposed regulations.
Millionday: NOTE — MANY MEETINGS HAVE BEEN OCCURING LATELY DUE TO THE IMPLEMENTATION OF THE MONETARY POLICY WE HAVE READ RECENTLY
Millionday: OBVIOUSLY CBI HAS BETTER CONTROL OF THE MONEY HOWEVER THEY HAVE ALSO SHOWN CHANGES IN THE BANKS POWER DUE TO THE RELEASED ROLES WE READ ABOUT YESTERDAY
Millionday: MY FAVORITE PART IN THE MONETARY POLICY THAT WE ARE WATCHING UNFOLD IS >>>>>>The new government securities market is also expected to play an important positive role in bank liquidity management in conjunction with these new regulations.
Banks will be expected and financially encouraged to manage their short-term liquidity needs with other banks (or the market more generally)
OBVIOUSLY ANY OPENING GLOBALLY WITH A MARKET ECONOMY AND THE ROLE WE SEE HERE OF ISX IS AT THE VERY LEAST WHOOOPOW EXCITING — SMILE
Millionday: READ EVERY WORD >>>>>>>>>>>>>The Central Bank of Iraq (CBI) has been recasting its operational relationship with banks in order to develop market based instruments of monetary policy and to facilitate the development of the market for the new MOF securities. ‘
Banks will no longer be required to hold MOF securities equal to 10 percent of total deposits (now contained in the reserve requirement regulation). The CBI will no longer buy or sell the existing MOF securities at the initiative of banks.
In addition, the existing overdraft and advance facilities of the CBI have been closed and will be replaced by the new standing lending and deposit facilities just adopted by the CBI Board. The new reserve requirement regulation will go into effect in either October or November.
Millionday: NOTE — THE STOCK SECURITIES FOR MOF (MINISTER OF FINANCE)– MARKET BASED INSTRUMENTS WOULD BE BONDS ACCORDING TO WHAT I (NOT AN EXPERT) UNDERSTAND —
SO THEY WOULD NO LONGER HAVE TO HOLD 10% OF ALL THE SECURITIES OF THE BANKS HOLDING THE DEPOSITS AND CBI DOES NOT HAVE TO BUY OR SELL THE BONDS (MARKET BASED INSTRUMENTS) JUST BECAUSE THE BANK REQUESTS IT FOR ONE REASON OR ANOTHER
Millionday: INTERESTING PART THEY ADDED >>> The CBI may at its discretion buy or sell MOF securities with banks in a competitive auction as required for monetary policy purposes (so called “open market operations”). The details of all of these changes are explained below-
Millionday: NOTE — WOULD ANYONE LIKE TO SEE THE POINTS IN THE OPEN MARKET OPERATION CHANGES ? Millionday: SMILE Millionday: WHOOPOW
Millionday: WOW EVERYONE — I FEEL LIKE I HIT PAY DIRT WITH THIS INFO
Millionday: LETS SPEND SOMETIME LOOKING AT THIS AND YOU WILL SEE WHY I AM SO EXCITED — THIS IS HUGE IN CHANGES AND THE ENTRY TO THE GLOBAL MARKET FINANCIALLY
Millionday: The design of a central bank’s monetary policy instruments should serve both to foster efficient short-term liquidity management by banks and to deliver the central bank’s desired monetary policy (which can be measured by a variety of intermediate variables, including the yield curve, the exchange rate, and the rate of growth of the monetary supply).
Millionday: READ EVERY WORD
Millionday: With regard to liquidity management, the central bank’s policy instruments must work together with money and securities markets and an efficient payment system to provide banks with confidence that they can always meet their payment obligations at a reasonable cost.
Millionday: NOTE — THE NEW POLICY REQUIRES CBI MUST USE THE FOREX SYSTEM OF MONEY SECURITIES — FOREX — IN ORDER TO ALWAYS PROVIDE CONFIDENCE IN THE ABILITY TO MAKE THE PAYMENTS DUE TO MEET THE AGREEMENTS THEY HAVE MADE CONCERNING DEBTS
Millionday: The most certain, but also the most costly, form of liquidity is provided by excess reserves (vault cash and balances with the central bank in excess of required reserves). ]
Intermediation spreads (the difference between interest rates on deposits and on loans) can be narrowed by enabling banks to minimize their holdings of non-interest yielding excess reserves. Bank’s ability to minimize excess reserves depends on the availability of other reliable means of liquidity management.
Millionday: NOTE — EXCESS LIQUIDITY IS COSTLY BECAUSE MONEY IS NOT WORKING FOR ONE THING — MONEY SHOULD ALWAYS BE MAKING MONEY (AMONG OTHER THINGS)
Millionday: THE DIFFERENCE BETWEEN MONEY MADE IN INTEREST YOU HAVE AND YOU ARE CHARGED ON DEBTS YOU HAVE — THIS IS WHY IT IS IMPORTANT TO HAVE HIGH CREDT RATINGS AT ALL TIMES FOR COUNTRIES AND PEOPLE — SMILE
Millionday: NOW WE ARE GOING TO SEE THE COMPARISON TO HOW THE MONETARY POLICY WAS AND THE CHANGES IN THE NEW — COMPARE
Millionday: NOTE — GET YOUR HATS THIS IS SO EXCITING IT PUTS TEARS IN YOUR EYES- HERE WE GO WHOOOPOW
Millionday: NOTE — CURRENT MEANS THIS IS THE OLD ONE WITHOUT ANY CHANGES FROM THE NEW POLICY
Millionday: The CBI currently has the following active and passive instruments that affect market liquidity (base money):
• Foreign exchange auctions, in which the CBI buys or sells dollars to the market in light of its policy objectives;
• A reserve requirement regulation that requires banks to hold in relation to their customers deposits: differentiated levels of deposits with the CBI, vault cash, and MOF securities.
• An Overdraft Facility, for banks with reserve account balances at the CBI that are not sufficient to settle their net end of day payment obligations;
Millionday: NOTE — REMEMBER I JUST SHOWED YOU THAT THE CBI BOARD JUST APPROVED THE OPENING OF THE NEW FACILITY THAT WILL BE USED INSTEAD OF
• An Overdraft Facility, for banks with reserve account balances at the CBI that are not sufficient to settle their net end of day payment obligations;
Millionday: • A Discount Window for bills of exchange and similar bank paper with a maturity of less than 90 days and at least two endorsements (currently charging 11% for good quality paper);
• Lender of Last Resort Facility, which provides individually negotiated loans against collateral, for banks with chronic liquidity problems;
• MOF securities Window, at which banks may buy or sell MOF securities at par (i.e. at issued interest rate).
Millionday: NOTE — THIS IS ALL THE MAJOR POINTS THAT CAN NOT AND DO NOT REMAIN IN THE NEW MONETARY POLICY
Millionday: NOTE — NEXT I AM GOING TO SHOW YOU THE CHANGES IN THE NEW MONETARY POLICY THEY ARE IN THE MIDDLE OF IMPLEMENTING DUE TO ABADI ACTIVATING THE ECONOMIC REFORM –
THE MONETARY POLICY IS PART OF THE ECONOMIC REFORMS AS IS THE BANKING AND ALL FINANCIAL REFORMS OBVIOUSLY
Millionday: HERE WE GO — HOLD YOUR HATS
Millionday: The above instruments are not adequate for the development of an efficient market oriented financial sector. In particular, they are not adequate or appropriate for developing an efficient and liquid market in government securities or for conducting a market based monetary policy.
Millionday: NOTE — AS I WAS SAYING — THOSE THINGS IN THE LIST WILL NOT WORK IN A GLOBAL ECONOMY — INTERNATIONALLY RECOGNIZED CURRENCY AND A MARKET ECONOMY (ISX) ETC
Millionday: While the new FX auctions are well designed and are functioning satisfactorily, the other instruments are being redesigned. The reserve requirement does not provide banks with a useful liquidity management tool and would have complicated the implementation of a monetary target.
Millionday: NOTE — LIQUIDITY RULES ETC ARE NOT USEFUL IN THE NEW POLICY AND THE NEW >>>>>>>>>>>>>>TARGET<<<<<<<<<<<<
Millionday: Articles 28, 29 and 30 of the CBI law establish the CBI’s powers to conduct open market operations, provide standing facilities for banks, establish reserve requirements, and, under exceptional circumstances, provide Lender of Last Resort credits. These articles provide the basis for the modern policy instruments being adopted by the CBI.
Millionday: NOTE — BY CBI LAW >> ARTICLE 28, 29, 30 ALLOW AND ESTABLISH THE POWER FOR CBI TO TAKE THE NATION`S CURRENCY (IRAQI DINAR) TO THE MARKET >>>>>>>>>>
These articles provide the basis for the modern policy instruments being adopted by the CBI.>>>>>>>>>>BEING ADOPTED BY CBI –
THE MODERN POLICY MEANING THE NEW MONETARY POLICY BEING IMPLEMENTED WITH THE ECONOMIC REFORM AND CBI LAW
Millionday: I HOPE YOU DIDNT CHEW YOUR HAT UP YET
Millionday: THE NEW CBI LAW GIVES CBI THE POWER TO DO WHAT THEY ARE IN THE PROCESS OF DOING — TAKE THE DINAR TO THE GLOBAL MARKET ECONOMY
Millionday: I HOPE YOU KNOW THIS IS WHAT WE ARE WAITING FOR
Geofitness: But how do we know the CBI will do what they say since Dr Shabs is not the head anymore. It’s been said he must be reinstated before this RV could happen due to the corruption
Millionday: HOLD YOUR HAT AND READ EVERY WORD — VERY IMPORTANT
Millionday: CBI is introducing a new requirement, better designed for the needs of monetary policy in a market economy. Where they exist, reserve requirements almost universally are seen as a tool of monetary policy rather than banking supervision.
Thus the responsibility for monitoring each bank’s compliance with the revised requirement has been moved from the Credit and Banking Control Department to the Agreements and Loans Department, the department with primary responsibility for monetary policy implementation.
Millionday: NOTE — THIS S VERY IMPORTANT DUE TO ITS COMPLIANCE WITH INTERNATIONAL ACCOUNTING STANDARDS
Millionday: NOTE — I SEE THIS AS AN ISSUE OF POWER TO THE BANKS WITHIN THE ROLES THEY PLAY BY LAW AND ALSO THE BASEL REQUIREMENTS WHICH ESTABLISH THE LIQUIDITY REQUIREMENTS AS WELL (I AM NOT A BANKING EXPERT)
Millionday: NOTICE THAT THIS IS BEING INTRODUCED AND IMPLEMENTED — THIS IS NOT A DREAM OR AN OPINION PIECE — THIS IS OFFICIAL CBI DOCUMENT
Millionday: For monetary policy purposes a uniform requirement (i.e., the same ratio for all reservable deposits) is preferable. The ratio in the new requirement is applied to all deposit liabilities in the definition of money because that makes the money multiplier (the ratio of the quantity of money to base money) more stable and predictable.
Millionday: NOTE — WITHIN BASEL REQUIREMENTS — BANKS VARY IN THE REQUIREMENTS DUE TO THE ROLE THEY PLAY WITHIN EACH NATION FOR THAT NATION — I AM TALKING ABOUT BASEL III REQUIREMENTS COMPARED TO BASEL II REQUIREMENTS ETC —–
THE WAY THAT I UNDERSTAND THE PLAN THEY HAVE IN IRAQ IS TO MEET A HIGHER BASEL REQUIREMENT THAN THEY ARE EXPECTED TO SO THEY MAY MAKE CHANGES IN THE BANKS ABILITIES OR SERVICES WHEN THE MARKET MAY SHOW THE ABILITY FOR THAT BANK TO SUSTAIN AT A HIGHER BANKING ROLE
Millionday: In addition, it has a neutral impact on the public’s choice of deposit maturities, which from a “tax” policy perspective is preferable. Foreign currency deposits are also included in the deposit base for the reserve requirement so as not to favor foreign currency deposits and hence dollarization. The requirement against both dinar and foreign currency deposits must be meet with dinars.
Millionday: NOTE — THIS IS SAYING WITH THE NEW MONETARY POLICY AND HOW IT APPLIES TO BANKING POLICY IS THAT NO MATTER WHAT CURRENCY THEY HOLD THEY MUST HAVE THE REQUIRED % IN DINAR FOR THE AMOUNT THEY ACTUALLY WOULD BE REQUIRED AT THAT VALUE –
THIS WILL Allow the bank the option to RATHER DEAL IN DINAR AND ACTUALLY SEE GROWTH FOR STAKEHOLDERS IN THE SECURITIES (ISX)
Millionday: THEY ARE GOING TO HOLD THE BANK TO THE AMOUNT OF RESERVES THEY WOULD HAVE TO HAVE IN DINAR WITH THE NEW MONETARY POLICY AND BANKING STANDARDS
Millionday: In the new requirement these are combined so that the single, uniform requirement may be satisfied by the sum of each bank’s vault cash and current account deposits with the CBI.
The primary benefit to banks of the new requirement results from allowing the requirement to be met on average rather than on a continuously basis. The requirement will continue to be established for monthly periods but the current frozen deposits will be moved into the single clearing account for each bank.
Millionday: NOTE — THE RESERVE REQUIREMENTS ARE ALONG WITH MODERN BANKING — ( I AM NOT A BANKING EXPERT)
Millionday: WHOOOPOW I AM LOVING SEEING THE NEW POLICY BEING ACTIVATED AND SEEING THE LIGHT IN THE TUNNEL THE GLOBAL MARKET — WHOOPOW
Millionday: NOTE — WHAT KIND OF DINARS DOES THIS SAY? SMILE
Millionday: The assets that must be held on average to satisfy the requirement will be banks’ Iraqi dinar deposits with the central bank (other than in the standing deposit facility) plus their (new) Iraqi dinar cash in their vaults.
Millionday: NOTE — IF I WERE A BETTING WOMAN — I WOULD SAY THE — NEW CBI BUILDING IS GOING INTO USE
Millionday: The CBI Board has set the reserve ratio at 25 percent. Because the new reserve requirement allows banks to use their dinar vault cash to satisfy the requirement, bank’s reserve assets will be greatly increased.
To limit the impact of this change on bank liquidity (without raising the requirement ration even more), the Board also stipulated that 20 percent (of deposits) must be meet by deposits at the CBI and 5 percent (of deposits) by vault cash.
Millionday: NOTE — THE TOTAL PERCENTAGE NEEDED FOR A BANK TO HAVE ON HAND IS 25% —
AS WE HAVE TALKED ABOUT BEFORE — BANKS ARE NOT REQUIRED TO HAVE ALL IN CASH OF THE MONEY DEPOSITED IN THEIR BANKS AT ALL GIVEN TIMES —
THEY HAVE A TOTAL OF 25% AT CBI UNDER THE NEW MONETARY POLICY THEY ARE IMPLEMENTING
Millionday: NOTE — THE NEW CBI LAW
Millionday: The new central bank law provides for the CBI to establish standing lending and deposit facilities. A standing lending facility and a lender of last resort facility will replace the existing over draft and advance facilities now in use. The new law does not permit overdrafts of banks’ balances with the CBI.
The purpose of standing credit and deposit facilities is to provide assurance to banks that they can manage their excess liquidity within a modest range of interest rates that straddle the central bank’s policy objective for short term rates.
Millionday: NOTE — THE NEW LAW ALLOWS BANKS TO LOAN FUNDS AND THE AMOUNT OF 25% IS THE STANDARD THEY WILL USE THAT THEY WILL HAVE ON HAND –
THIS WILL HELP BANKS GAIN CONFIDENCE IN WHAT THEY LEARNED ABOUT BANKING IN THE MODERN MARKET AND ALSO WILL REDUCE CORRUPTION WHILE COMPLYING WITH INTERNATIONAL ACCOUNTING STANDARDS
WHILE AT THE SAME TIME ADDING CONFIDENCE TO BANKING FOR CITIZENS AND ACTUALLY THROUGH THE GOVERNMENT LAWS AND BENEFITS AS WELL —
THIS IS HUGE FOR IRAQ — BIG CHANGE AND MODERNIZATION
Millionday: SO AS WE SEE — CBI IS VERY BUSY PUTTING IN PLACE MANY CHANGES WITHIN THE SYSTEM AS WE KNOW THE BANKING CONFERENCE THAT TOOK PLACE ON THE 12TH AND 13TH WERE TO EDUCATE
AND ANSWER ANY QUESTIONS ON ALL THE NEW POLICIES BECAUSE KNOWLEDGE IS POWER AND THIS WILL ONLY MAKE A DIFFERENCE IN THE COUNTRY IF IT IS IN UNIFORM AND APPLIED AS WRITTEN
Millionday: HUGE FOR IRAQ AND TO ME IS EVRY EXPLANATORY TO WHAT WE HAVE BEEN READING IN MOST ALL REPORTS FOR THE LAST FEW WEEKS
Tiger: what a change of focus recently.
Millionday: I AGREE TIGER IT IS VERY INTERESTING HOW MUCH CHANGE HAS HAPPENED AND IN WHAT WE SEE AS A SHORT PERIOD
efriscone: Did the budget get posted today?
Millionday: I HAVE NOT SEEN INK ON IT BEING PRINTED —
misterq: Any important happenings coming up before the end of the year????
Millionday: IMO THE ANNOUNCEMENT THAT THE TERRORIST GROUP WILL BE REMOVED FROM MOST AREAS EASILY THAT WAS MADE WAS PRETTY BIG
BUT THE HCL IS EXPECTED WITHIN HOURS AND THE TRIP TO CHINA — I HAVE SOME THINGS TO SHOW YOU — I WILL PUT IT THAT WAY LOL
Millionday: IMO THERE COULD BE A VERY IMPORTANT HAPPENING BEFORE THE END OF THE YEAR
Millionday: BUT NEED INK ON EXACT DATE LOL
Millionday: THIS WEEK I AM GOING TO WORK ON A LIST OF THINGS THAT WE NEED TO THINK ABOUT –
NOT MAKING ANY PROMISES BUT IF ANYTHING HAPPENS IN YOUR ECONOMIC SITUATION IT IS NICE TO KNOW WHAT YOU SHOULD DO IN THAT CASE SO WHEN NEWS IS SLOW WE ARE GOING TO SPEND 0NE NIGHT GOING OVER A LIST OF SOME IDEAS I HAVE WORKED ON FOR MY CLOSEST FRIENDS
Millionday: HAVE A GREAT NIGHT AND I HOPE YOU ALL LIKED THE NEWSTIME AND THE EXPLANATION OF SOME VERY EXCITING CHANGES TAKING PLACE
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