So today I am writing a short and to the point news letter. There is not a lot of new current news concerning the currency reform and the needed laws. Until Abadi solidifies his reform coalition these last remaining needed laws will just sit there on the shelf and collect dust.
Today’s News Today is Wednesday December 9th and yes we are now entering the second week of December already and still no RV.
Many events seem to converge on the month of December, and in particular mid December, so let’s pay close attention to what is happening this month. I believe in retrospect we will say this was a very significant month.
Update: Currency Reform
I want to keep all of us focused on currency reform. Right now this is exactly what we should be watching in expectation of the launching of the lower denominations. Many sources have told me the plan of the CBI is to launch the lower denominations sometime before or by the end of the year. Will it occur? We can only wait and watch.
Can I scream it any louder, again and again watch for ….CURRENCY REFORM….. CURRENCY REFORM !
So in my last news letter dated 12/7 (LINK), I had to clarify 4 points once again that many where still VERY confused over. One of these items reviewed the currency auctions and I presented to you an article at that time topic.
Did you read the article? Did you learn anything from it?
So today we get yet another article on the same topic.
As I keep saying – if the government or the CBI has multiple articles on the same topic all in just a matter of days it means they are concerned and thus this is where we should then focus our attention. They are about to do something in this area.
So what are they about to do with the currency auctions?
Months ago the CBI told us the currency auctions would be scaled down and by end of the year 2015 they would end. We are just weeks away.
Now we see a member of the finance ministry, Majida al-Tamimi, being out spoken about the practices in these past auctions and how the selling of the Iraqi currency and its corruption has held back its true value from being realized.
I quote from today’s article below – “pointed out the need to abolish auction currency called to distance his administration from quotas partisan and political”
Tamimi also questions if other neighboring countries have currency auctions. They do not and it is a rhetorical question.
I quote again from the article below – ” stressing the necessity to run the central bank by specialists in the economy and financial sectors and not according to the quotas that have caused the destruction of the Iraq economy”.
So we see Tamami also does not like how the CBI is now being run. She feels the need for much more expertise. She sees corruption in the money auctions. So like I said I do not believe Dr Shabibi is back at the helm. He may poke his head up once in a while, give his opinion but he IS NOT RUNNING THE CBI ! This article alone is very strong evidence of it. I have presented evidence before but many still doubt what I say.
TAMIMI: AUCTION CURRENCY DESTROYED IRAQ’S ECONOMY
BAGHDAD / JD / .. criticized a member of the parliamentary finance committee Majida al-Tamimi current Central Bank, as pointed out the need to abolish auction currency called to distance his administration from quotas partisan and political.
She said Tamimi, a statement posted on its official website and seen by Agency / KD / The quotas political and partisan confound the work of government institutions, particularly the economic ones, “stressing” the necessity to run the central bank by specialists economy and money, not according to the quotas that have caused the destruction of Iraq’s economy.
“She said al-Tamimi said the currency auction in a large increase in spite of our pleas to the many Bank Central need to reduce the sales of hard currency, especially since these sales sometimes be covered by the reserve value negatively affect the quantity, “emphasizing” the importance of maintaining the size of the reserve and in line with international standards.
“The eye that” there is a great imbalance in the auction currency “which showed that the central bank customers from the private sector are buying the dollar at the official rate under the pretext of covering imports State and this move carry an imbalance intentional, the fact that the sale of the dollar at the official rate goes into the pockets of corrupt” .ostgrepett Tamimi of the “insistence of the central bank to hold an auction of currency”, wondering “Is there in the neighboring countries of the coin auction as is the case in Iraq / end / 22
TAMIMI STRESSES THE ABOLITION OF THE CURRENCY AUCTION AND KEEP THE CENTRAL BANK FROM QUOTAS
Baghdad- criticized a member of the parliamentary finance committee Majida al-Tamimi current Central Bank, “stressing” the need to cancel the auction currency and the dimensions of Directors of the Bank for quotas partisan and political. “
Said al-Tamimi said in a statement received by the agency all of Iraq a copy of it, that “political and partisan quotas confused the work of government institutions, particularly the economic ones,” stressing “the necessity to run the central bank by specialists economy and money, not according to the quotas that have caused the destruction of the economy Iraq.
“Tamimi said and explained,” currency auction in a large increase in spite of our pleas many of the Central Bank of the need to reduce the sales of hard currency, especially since these sales sometimes be covered by the reserve value negatively affect the quantity, “stressing the” importance of maintaining the size of the reserve and in line with international standards.
“It pointed out that” there is a great imbalance in the currency auction, “noting that” the central bank customers from the private sector are buying the dollar at the official rate under the pretext of covering imports State and this move carry an imbalance intentional, the fact that the sale of the dollar at the official rate goes into the pockets corrupt.
“and was amazed Tamimi of the” insistence of the central bank to hold an auction of the currency, “she wondered,” Is there in the neighboring countries, an auction of the coin as is the case in Iraq. “and raised suspicions of corruption and operations of laundering money through the central bank auction where announced, specialized issues of integrity and crime a misdemeanor court Economic and money laundering, on 20 August issued sentences of imprisonment and a fine against officials in the Rafidain and North after being convicted on charges of corruption and money laundering, a banner earlier in the presence of 20 defendants in this some issues largely chairman.
“The Federal Court Supreme, announced on the sixth of July, several articles unconstitutional in budget 2015 law, including Article 50, the judge to “compel the Central Bank identifies sales of hard currency [the dollar] in its daily auction ceiling does not exceed $ 75 million a day.”
with the exception of the Governor Central Bank and the Agency on the Keywords, the court’s decision as “came in accordance with the Constitution and the Law on the Central Bank, which is a great importance because of its impact in promoting and supporting the independence of the Bank and remove him from influencing the policies and decisions.”
The relationships declared in 20 of the month of November last that the bank reserves foreign exchange of 60 billion dollars, “adding that” enough for six months, “noting that” the Central Bank is working on the application of parallel policy to maintain the overall stability of prices and curb inflation, ”
AN URGENT NEED FOR ACTION TO RAISE THE VALUE OF THE DINAR IN THE EXCHANGE
Dec 6, 2015
BAGHDAD – Imad emirate There are economic convinced strong that the decline of the Iraqi dinar exchange rate with a surplus in the balance of payments reflects the fact that the national currency undervalued real value, so there is an urgent need for action to raise the value of the dinar in the exchange market through direct and constant intervention of the Central Bank Iraq to reduce the sale price of the dollar against the dinar in the currency auction.
This form-oriented basis points in the direction of strengthening the exchange value of the dinar against the dollar, by taking administrative decisions in a row by the monetary authority, this argument completely intact from the point of this analysis Aloguetsada.dmn oriented academic d said. Awad Fadhil importance of this road in the exchange rate management to be desirable high domestic inflation rate, and raise the value of national currency against the dollar from 2004 until the first quarter of 2010 was in line with the objective to be achieved, a stop the rise in the general level of prices, and strive to reduce the rate of inflation at acceptable levels economically, but who got to the monetary authority continued to approach raising the value of the dinar against the dollar (ie reduce the value of the dollar denominated in dinars) after the decline in the rate of inflation and to control it and install the official exchange rate at a level may not necessarily reflect the level of equilibrium in the market. And when you return to economic indicators easily realize that increasing the degree of intervention in the exchange market and the persistent administrative move towards the low value of the dollar or the selling price was not officially compatible with fundamentals Alkla.ooodh d.Awad when devoting the vast proportion of resources in favor of consumption this with limited capacity in the absorptive INVESTING energy, low competitiveness of industries producing goods traded (except oil), and the tyranny of service activities and the acceleration of price levels and the high level of unemployment and the decline in the relative productivity of industrial and agricultural sector and high production costs All of this leads to the effect brake on Aloguetsad.utaba development:
It is practically impossible that a single monetary tool you can achieve more than one goal has not been used other tools to achieve especially necessary adjustments both financial and structural including help to put the economy on track, the dosing sequence in adjust the exchange rate administratively was in itself incompatible with the economy as a whole as a result of this situation that eventually become the national market value of the national currency is determined in response to market forces, which in turn reflect the economic and political situation in the country is desired.
It is normal in this case to become the nominal exchange local currency denominated higher than its market value any higher than its equilibrium, reflecting the possibility of the dinar exchange in the market price moved to a lower level than the level at which settled upon by government intervention and the imposition of decision Aladarei.okhls to say:
This economic vision strengthened through the big difference between the dollar sale scheduled to price in a market auction Central Bank and its price generated in the free market by supply and demand forces of reaction, since no longer the difference confined to the rank of decimal but exceeded for up to two places decimal places, and so is no longer within the limits or economically acceptable ranges at the international level and Mahla.alomr other is that private demand for the national currency prevailing market price or the current is less than the total special offer, and that the central bank intervenes in the foreign exchange market to buy the difference in order to support the local currency internationally. This shows clearly that the Iraqi Central Bank intervenes to artificially create intentional or on the request of the national currency against the Show more foreign currency, so that the quantity purchased from the local currency, which was higher than can be purchased in normal circumstances to sustain high and stable exchange rate.
Discontinuing the money auctions at the end of December
So now here is the juicy part of today’s news.
More FACTS – The CBI has told us in two articles already, one of which I presented to you in my past news letter, that they will scale down the money auctions to the point of discontinuing them at the end of this year (meaning the end of 2015). Do you really understand what the auctions do for Iraq?
The CBI sells dinar at these auctions for US dollars. This helps increase the CBI reserves. Countries do not keep their own currencies in their reserves. Instead they keep valuable, stable currencies of other countries. Thus Iraq wants to collect US dollars. But the corruption in the auctions is that the currency is being sold at an undervalued rate. This is at the heart of the problem. This is what is driving down the rate.
Let’s now look at a recent article I provided below. It is from a financial expert in Iraq.
The most interesting part of the article below is when the financial expert says and I quote – “calling on the central bank to the need to implement the project to delete the three zeroes instead of resorting to the issuance of new editions (referring to the 50k, 100k and 500 notes) may affect the trade balance in the market”.
So what will happen when the currency auctions do end?
What will happen when 2016 comes rolling around and we have not yet seen any significant increase in the IQD rate? Will they still re-launch the 50k notes and launch the 100k notes as they told us they will do?
So I want everyone reading this news letter to realize that the news about the revaluation of currency focus should be on the actions of the CBI and the statements made by the Finance Ministry.
The value of Yuan in China or the value of the Canadian dollar does not matter to us. No one is exchanging ZIM or any other currency at any significant increase. Jut ask them to tell you the bank so you can go exchange too and see how they fumble for an answer. This is all nonsense and only shows to me these intel providers are shooting at straws to get some news to bring you. They do not have a pulse on what is really happening in this area of currency reform. They are all bent on just giving you this hyped up nonsense news.
All these other issues we seem to be bent on focusing our attention and effort on have ABSOLUTELY nothing to do with revaluing the IQD nor impact its value. Plain and simply put, the increase of the value of the dinar is dependent on four main factors:
1. The ability of the CBI to manage its value – must get the value to a 1:1 in order to see the full RV.
2. The prevention of money laundering and counterfeiting – directly effects it value 3. The security measures being taken in Iraq – need level of stability to allow it, the GOI must sign off 4. The Reconciliation efforts in Iraq – need laws to implement resolutions to agreed promised by GOI to allow it. The GOI must sign off.
I wish I could eliminate any one or more of these items from the list and tell you any of them are “all done”. Any or all of them could still have a major impact at this timing of the RV. But let us focus on today’s news for this is what we do know for sure.
So what happened in mid November? We witnessed an enormous amount of activity towards the movement of the “project to delete the zeros”. Then suddenly is got all quite again on this topic. This is where we are now. So what happened?
We need to address this today since I had a very long talk with my contact in the CBI and what they are attempting to do and were driving towards since November.
When did it get so quite? It got very quite on this topic right after the CBI announced is was going to “postpone” (or “halt” ) the further launching of the 50k notes until 2016. This was is the last week on November. Why did they do this?
All we know about this subject matter is what they tell us in the news. No one can read their minds. So what they told me is the launching of the 50k notes was not as successful as they had hoped. It did not serve its overall purpose and was met with much resistance. The citizens do not want more of the same 3 zero notes.
Now they are telling us the money auctions are driving down the rate of the dinar and is that RESISTANCE FACTOR they must overcome. There is no alternative now but to launch the lower denominations and to drive the rate up somehow for the next step in the process to work. But how do they do this?
If you have been paying attention the only conclusion to this news now is in two different, closely dated articles. They are trying to figure out what is holding back the rate of the dinar. They are indirectly telling us they know they need to raise the rate and we all know darn well this rate must be a 1:1 par with the US dollar since they have told us this over and over again [yet many of you deny it because you are stuck in your heads on the fact this is going to be the RV and I keep telling you do not mix apples with oranges. This is NOT the RV but a measure being taken to combat inflation and kick start the process. The RV comes later once the 1:1 rate is reached]. Please get out of this thinking and do mind shift. It will help you understand this entire process better.
Are you opened minded now to listen?
So by taking all this information I just told you we can see that they want to pop out these lower denominations but can’t until they get the rate under control and are able to raise its value to the required and planned rate, about a 1:1 par value to the US dollar. I say “about” because it does not have to be exact but close enough.
But if there is more demand for the US dollar (thus a higher rate and demand for USD) then how do they overcome this?
I can assure you they are brainstorming now as I write this news letter and are dying to launch the lower denominations any day now. So I am now hearing they may wait until very early in 2016. Why?
They may wait until the money auctions are over and watch the impact the scarcity of the currency has on the rate. Remember I told you that if you create scarcity of almost anything and the demand is still strong you will increase its value. So by getting rid of these money auctions they hope to create a shortage of the dinar.
Remember the dilemma they are in. Let me spell it out for you now. But we have to take a step back in time to understand.
Years ago they already have drawn in nearly 80-90 % of the 3 zero notes from inside Iraq. The CBI told us this so it is FACT. In 2012 they had hoped to RV. They gained the advantage at that time because the demand for the dinar was high since they artificially created the needed scarcity of the currency. The flow of US dollars had not yet filled the gap. Remember? This gap is the VERY IMPORTANT part I need to emphasize today. They need to recreate this gap somehow. This will drive up the rate of the dinar.
But now since they let this opportunity slide by them in 2012 and its almost 3 years later, the US dollar has filled the gap left by the scarcity of the dinars. So on these money auctions they tried to draw in the dollars from the economy and artificially open up this gap once again thus creating a situation to get to a 1:1 value. This has been ongoing over and over again and we have seen them even increase the money auctions in the past without any success in this area. So now the tactics have to change. This tactic did not work for two reasons: 1) corruption in the private banks sold the dinar at undervalued rates at the auctions 2) some of the dinars ended up back into the streets.
So what do they need to do now? They first needed to draw in the dinars back into the CBI from the Iraqi in-country. The 50k notes were part of this solution. This event is not meant to directly increase the value but was hoped to begin the cycle of scarcity. At the same time if they stop the currency auctions this will also cause yet more scarcity of dinars.
So they plan to end the currency auctions by the end of the year.
They also just announced that they need a set of regulations to govern the future actions of the CBI and so we saw this set of regulations going before parliament soon for a vote and implementation. These regulations set strict rules for the money auctions and handling of the sale of currency. This they hope will eliminate corruption that seems to constantly drive down the rate of the dinar.
Folks I do not know how to explain this any better. In order to fully understand what is going now in the CBI you have to remember the past news and put the pieces together with what we are now hearing in the news. It does all make sense and is all very logical.
There are no “secret” sources or bank memos or screens that are going to tell you the timing of the RV. You surely don’t have to pay donations to some site either to tell you this. Instead all the information is out there for you to read for yourselves and learn. But remember it is a culmination of events over time that tells the story of this saga. If you are paying attention you can see the big picture. I am trying to do this for those of you that don’t have this ability and I resent the fact that these other idiots keeps messing with your minds to convince you it depends up some TRNs or what China or any other country is doing. How about watching Iraq? After all it is the Iraqi dinar we are watching to RV….right?
So if you really want to know what is holding up any significant increase in the value of the IQD just follow the money, the money in Iraq. After all it is all about money and the money we are watching is the IQD !
All we can do now is sit back and wait and watch what happens next. Our focus must be on the actions of these two agencies – the CBI and the Finance Ministry.
Update: Maliki Syndrome
I thought all passports were invoked for all high level officials having any dealings with the Mosul and ISIS incident last June. How does Maliki now get to travel around and even worst receive 3 billion dinars from the Iraq people to cover his expenses? Maybe there is much more to this visit than meets the eye? We will just have to wait and see how it all works out. See article below.
PRESIDENCY OF THE REPUBLIC ACCOUNTS: VICE PRESIDENT NURI AL-MALIKI TO IRAN, THE EXPENSES OF THREE BILLION DINARS!
Date: Tuesday 08/12/2015 13:43
A source in the Department of Finance reported to the Presidency of the Republic, the Vice President of the Republic asked the Department of Finance to conduct a three billion Iraqi dinars under the pretext of treatment expenses within the Republic of Iran.
The source, who did not want to disclose his identity in a statement singled out our website on Tuesday: that Maliki although relieved of his post as vice president a sovereign decision, but that he had asked the amount of three billion dinars claims he used to handle himself during his tenure as vice president.
He announced Nuri al-Maliki’s office, the latter went to the Iranian capital Tehran to visit therapeutic, will continue for several days.
“The last visit to Nuri al-Maliki to Iran was in August 2015, where he met with Iranian officials and discussed with them the latest security and political developments in Iraq and the region and as a result returned with many items on a promise list he was hopeful of regaining power and implement.
Update: Fighting ISIS
Iraqi government forces Tuesday evening regained its headquarters operations in Anbar from the grip of Daash. and have now recaptured a key district in the city of Ramadi.
It’s a matter of days to control other districts in the heart of the city of Ramdi. So far they have retaken key districts like Tamim in the west, Albu Farraj and Albu Ziyab in the north, Tash and Anbar University in the south. These are key areas and this effort is looking very good.
There is a lot of recent propaganda being put out about the negativity of Turkey or any US elite ground forces coming into Iraq. I can assure you it is all nonsense since there is a huge coalition of over 100,000 soldiers frm Turkey to sweep into these regions to assist. These are coalition soldiers and not some political maneuver from Trukey to split Iraq.
The resistance (Maliki and his terrorists) of course are afraid of any assistance being given to Iraq of this nature. They will tell you all sorts of patriotic reasons why this should not happen. Oh – but what about their private militias who ran their own security forces to enforce their kind of corrupt law over the last 4 years in Iraq. Where was the patriotism then? You must put this all into perspective and know the propaganda machine is still putting out their version of the news. This is why I talked in one of my articles on how to differentiate between the garbage and reality. I hope you were listening.
Let’s keep the daily prayers coming for the success of the fight against ISIS everywhere in the world. Praying does not mean we are weak. Instead it puts God on our side for the righteous and so how can you go wrong if God is on your side helping to protect the innocent and the helpless. It really comes down to loving all of the human race but we have a right to protect and defend ourselves against evil too.
URGENT .. IRAQI FORCES REGAIN “OPERATIONS ANBAR
Twilight News / security sources reported on Tuesday evening that the Iraqi security forces regained its headquarters operations in Anbar from the grip of Daash.
A security source said the Twilight News that he “was edited Anbar Operations Command headquarters north of Ramadi and in full control of the headquarters and raising the Iraqi flag above it.”
“The co-operation of the regiment commando operations Anbar attribution of tanks and tankers flying and the international coalition and the Iraqi” which was confirmed by other sources.
The military media cell in a statement that the Anbar operations have killed dozens and destroyed the headquarters of a number of terrorist Daash in Albu Faraj Abu Diab area during the progress of the former headquarters of the Anbar operations in coordination with the international airline alliance. ”
IRAQ RETAKES RAMADI DISTRICT FROM ISIS
AFP Iraqi security forces member in the town of Husayba, east of Ramadi (7 December 2015)
Iraqi government forces have recaptured a key district in the city of Ramadi, which is controlled by the jihadist group Islamic State, officials say.
The Counter-Terrorism Service said it had cleared the south-western area of Tamim on Tuesday after a fierce battle.
Soldiers and militiamen have been preparing for months for a final assault on Ramadi, and recently told residents to leave the city centre.
Ramadi was captured by ISIS in May in an embarrassing defeat for the Iraqi army. Last month, government forces completed their encirclement of the city when they retook the Palestine Bridge, which straddles the River Euphrates in the north-west.
AFP Iraqi troops and pro-government militiamen have encircled Ramadi in recent months The move cut off IS militants inside Ramadi, about 90km (55 miles) west of Baghdad, from their strongholds elsewhere in Anbar province and in Syria.
‘Mobile bridges’ Iraqi Counter-Terrorism Service spokesman Sabah al-Numani told the AFP news agency that after troops launched their assault on Tamim, IS militants “had no choice except to surrender or fight and they were completely destroyed”.
Anbar’s police chief, Maj Gen Hadi Irzayij, also confirmed that Tamim, which is separated from the centre of Ramadi by a tributary of the Euphrates, had been retaken. It is the first significant incursion into Ramadi since the army dropped leaflets over the centre last week warning residents to leave.
It’s a matter of days to control other districts in the heart of the city,” an Iraqi army source told the BBC. We have retaken key districts like Tamim in the west, Albu Farraj and Albu Ziyab in the north, Tash and Anbar University in the south.
The source said the key challenge now was how to approach the city centre, where roads and buildings were likely to have been rigged with bombs.
AP A US-led coalition has been carrying out air strikes in support of the offensive “We are using mobile military bridges to cross the Euphrates to the city centre from the north and the west as the main bridges have been destroyed in the intense battles with the terrorists,” the source added.
the US military last month estimated there were between 600 and 1,000 IS militants in Ramadi.
On Monday, the US-led coalition against ISIS said it had carried out six air strikes targeting the group’s units, weaponry and positions in the Ramadi area.
One more item today:
Let’s not forget to keep praying for the success of THESE IRAQI AND COALITION SOLDIERS. I believe their success is in part some of the acceleration of the process we are now witnessing.
“Lord, protect Abadi and all who stand with him in righteousness, the Iraq and Coalition Soldiers who are fighting the good fight against terrorism, that they would be shielded from the enemy and would be Victorious against them! We ask that the Victory comes swiftly and healing of the Iraqi peoples and all whom have been effected by these evil doers can begin! Amen!
Till next time…. Auf Wiedersehen!
Peace and Luv To Ya All.
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