Wednesday, December 7, 2016


December 7, 2016 Mnt Goat News Brief
Hi Everyone,
I bring you the highlights of the latest news today. So here are the major HEADLINES of the period. I am having a hard time keeping up with all the new banking development as of lately. So today is only more of it and some other WOW news to share with you. It is all very exciting.
As always, see my comments in italic RED within the articles below.   
CBI launched the National divider last week. I presented an article and talked about this system to you in my earlier news letters. (LINK to posts)

Now they are telling us that the “divider” allows the holder of a credit card issued by a state bank and has the ability to allow special withdrawals of  money from any automated teller machine (or ATM) and this is now widespread across the country. We knew almost 5 years ago that a contract went out to install ATMs throughout major cities in Iraq. These machines laid dormant and still remain empty as they are not designed for the large 3 zero notes and can not process them for cash withdrawals . Note that the CBI is ONLY telling us the mechanisms are in place ready to use the machines, but not yet. We know the other half of the story is not yet in place….that of the new lower denominations being put into the machines. Remember they do not want to disperse more of the 3 zero notes since they collected nearly 80% of them already out of circulation. This is why they moved to all this new technology and SMART card (debit card) processing. So they will not have to put them back into circulation. Get it?  
So this is very, very good news. Are they getting ready to load these ATMs now with the lower denoms?  Hint..Hint…Hint…!!!!!!!!!!!!!!!
When will you think this will happen? Keep reading this news letter and I will tell you. 
“IMF disburses about US $617.8 million following completion of first review of Iraq’s reform program”.
Okay we know this is their second major review under the reform program so I do not know why the article is telling us differently. Are they still talking about the first review? Also we know that by the end of 2016, Iraq was supposed to receive just over $5+ billion dollars under the SDR program within 2 installments being made by to Iraq by the end of the year. Altogether they qualify to receive just over $600+ billion with installments over a 5 year period. The first installment we know was in September 2016, as I presented their article to the public on this event. So now they received the second installment or did they? Are you confused yet with the article below? It will not be the first time the news media go it wrong or they are just recycling old news again and for some reason did not change the data in it. This has been a continued problem.
Articles Begin
IMF Executive Board Completes First Review (should read “Second Review”) of Iraq’s Stand-By Arrangement
December 5, 2016
IMF disburses about US $617.8 million (should be just under $4 billion) following completion of first (should read second review) review of Iraq’s reform program. The IMF-supported program includes measures to protect the poor, enhance financial sector stability, and curb corruption significantly improving public financial management will be important.
The Executive Board of the International Monetary Fund (IMF) today completed the first review of Iraq’s three-year Stand-By Arrangement (SBA), which is designed to support Iraq’s economic reform program and restore fiscal balance over the medium term. The Board also completed financing assurances review under the SBA. The SDR 3.831 billion arrangement (about US$5.34 billion at the time of approval) was approved in July, 2016 (See Press Release No. 16/321) . The Board’s approval enables the disbursement of SDR 455 million (about US$617.8 million).
As part of the completion of the first review, the Board also approved Iraq’s request for a waiver for the non-observance of the continuous ceiling on new external arrears, and request to modify performance criteria. The Board also approved the request for a waiver of applicability for end of September targets of four performance criteria on the floor on gross international reserves (GIR) of the Central Bank of Iraq (CBI), 1) the ceiling on net domestic assets (NDA) of the CBI, 2) the ceiling on the stock of outstanding arrears to international oil companies and 3) the ceiling on the stock of gross public debt, as well as 4) a request for the re-phrasing of the arrangement.
Iraq’s economic reform program supported by the SBA aims to address the urgent balance of payments need, bring spending in line with lower global oil prices, and ensure debt sustainability. The program also includes measures to protect the poor, strengthen public financial management, enhance financial sector stability, and curb corruption. Iraq will require the support of the international community to implement these policies.
Following the Executive Board’s decision, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair of the Board, issued the following statement:
“The economic policies implemented by the Iraqi authorities to deal with the shocks facing Iraq—the armed conflict with ISIS and the ensuing humanitarian crisis and the collapse in oil prices—are appropriate.
In the fiscal area, the authorities are implementing a sizable fiscal adjustment, mostly through retrenchment of inefficient capital expenditure while protecting social spending. In the external area, the authorities are maintaining the peg of the Iraqi dinar to the U.S. dollar, which provides a key anchor to the economy.Performance under the Stand-By Arrangement has been mixed; however, understandings have been reached on sufficient corrective actions to keep the program on track.
Resolute implementation, together with strong international support, will be key. “The revised fiscal program in 2016 and the draft budget in 2017 are aligned with the SBA. The composition of the fiscal adjustment should be improved over time by increasing non-oil revenue and reducing current expenditure, including the payroll and pension payments, and reforming the electricity sector, subsidies, and state-owned enterprises, in order to make room for larger but more effective and efficient investment expenditure that is conducive to growth.
“Significantly improving public financial management will be important. Arrears need to be assessed and paid following verification, and expenditure commitment and cash management should be strengthened to prevent the accumulation of new arrears.
“Measures to bolster financial sector stability include strengthening the legal framework of the Central Bank of Iraq, restructuring state-owned banks, and eliminating exchange restrictions. 

Measures to prevent money-laundering, counter the financing of terrorism, and strengthen the anti-corruption legislation also need to be implemented.
Implementation of the budget-sharing agreement with the Kurdistan Regional Government would put both the federal government and the Kurdistan Regional Government in a better position to address the shocks to the Iraqi economy.”

Please follow the IMF site link below to keep up with the progress of Iraq. Oh- what do you know!- no more guessing or listening to these so called “intel gurus”. You can now read it for yourselves.

Baghdad Zidane
CBI launched the National divider that allows the holder of a credit card issued by a state bank and a special withdraw money from any automated teller machine ATM is widespread across the country. (but now they have to be careful and get the salary and pension payments to SMART cards for everyone. Also the Point of Sale (POS) with merchants must also be established to allow citizens to use their smart cards for purchases directly so they don’t just run to the ATM and take out all their money. So this proves again to use that this is an effort to force the citizens to use the banks, since through the e-dinar the money is automatically deposited in their account. Now they have to work on SAVINGS and other products to give them an incentive to leave it in the bank. But this “divider” system is a long awaited implementation since they talked about this many years ago)
And allowed the central bank to credit card holders of the Bank of the Iraqi trade as well as four private banks are Baghdad and the Middle East, Assyria and civil withdraw money from any ATM and before the end of this month will be added other banks.
The central bank said in a press statement received "night", the bank put the court to work the National divider system plan as a first stage to run five banks and companies collect POS, while will be starting off with the rest of the other exporting banks for payment cards before the end of this year.
"The National divider system that connects banks communications network will facilitate the one where a lot of banking matters and will eliminate routine followed in reviewing the banks will be completed transactions as soon as possible, through electronic payment instruments represented the credit cards of all kinds."
He criticized the financiers, economists, the central bank for the delay to the launch of the National divider which countries around the world began work done since the start of an ATM machine.
The executive director of the Association of private banks, Tariq Ali, for "night", "The National divider system is a system linking banks and one for conducting money transfer and payment less bulky process used inside Iraq."
"The costs will increase if used outside the country, while possible to deposit funds and receive from any bank linked to the National divider system."
For his part, money expert, Abdul Rahman al-Mashhadani said the "night", "The activation of the National divider step too late and that the countries of the world are working with for a long time."
He stressed that "the National divider would do electronic banking culture and easy drag-and-filing process."
"The problem is related by banks and their ability to assume responsibility, especially that some of the large reputable banks collapsed overnight, such as North and Dar es Salaam."
However, an expert economy Sumaisem peace, she said that "activating the National divider system is a good step, but it's too late and raises the suspicion it's done after all the scandals about the auction currency and smuggling of hard currency." (this article begs me to ask the question – Won’t they need full electricity throughout the country for these machines to work- i.e POS and ATMs?)

Rafidain bank expanding modern banking services to 165 branches and plans to expand the work both locally and internationally
Baghdad … 
Rafidain Bank, announced Tuesday, for the high number of its branches to 165 branches after the opening of a new branch in the province of Maysan, stressing his quest to expand his work locally and internationally( so here we go….Rafidain bank going full scale now on the implementation of the divider system. Basically rolling it out to all branches. This exactly what we expected and need!)

The media office of the bank said in a statement obtained by “Economy News,” a copy of it, it “opened a new branch in the province of Maysan to provide banking services to citizens and employees,” stressing that “the number of branches has risen to 165 branches.”
He added that “the bank develop an action plan to expand his banking and development in the largest geographical area in the country and in other countries in order to deliver services to the citizens.”

A new round of negotiations during the next 48 hours to resolve the contentious points in the general budget
BAGHDAD / Sky Press:
Parliamentary Legal Committee confirmed on Tuesday that there will be a new round of negotiations during the next 48 hours to resolve the contentious points in the general budget to prevent the possibility of challenging the law after approval( so why did they tell us yesterday that the budget was approved? They told us this because they did approve it but excluded certain provisions until a later date. I showed you this article. They will conduct a second vote on these provisions once the points are worked out)

He said the Commission's decision, Hasan Turan, in a statement received "Sky Press," a copy of it, that "the negotiations will take place between the parliamentary blocs on the one hand and between the parliament and the government on the other hand, as quoted by news agency Nina."

He added that "there are points of contention emerged during the vote on the draft budget, (so they did take a vote on the budget and this proves it) the first meeting with the Kurdistan Alliance and relate to specific Peshmerga in the Ministry of Defense."

And that "the proposed Kurdish Peshmerga to be 17%, as is the proportion of the region, was rejected and was voted upon fully what raised the ire of Kurdish blocs, which boycotted the vote," he said. (this tells us that it was this section of the budget law that caused the boycott of the vote further)

Tauran said that "another dispute that has not been decided yet is the ratio of the restored provinces and ask deputies to include 33% of these provinces in the crowd Act, which Marfdah National Alliance, adding that the other point of contention regarding the governorates of oil-producing and to allocate US $ 5 per barrel, according to Law 21, and 5% is not contained in the draft of the government to the draft budget. " 

The House of Representatives decided to postpone Monday's meeting, to Wednesday due to the differences about the additives of the general budget and the District of Kurdish blocks hearing on the allocation of the Peshmerga. (so in summary what is the status of the 2017 budget? They are waiting until Wed 12/07 to complete the voting on the budget to finalize all sections of it. So it is not yet all completed)

More news on the budget just in late yesterday..Tuesday night.
Deputy: the budget approved in full, the parliament added nine paragraphs to finalize the draft budget law
MP for the Bloc citizen Amer Al-Fayez, Tuesday, that the House of Representatives voted on all the paragraphs of the draft in 2017 sent from the government's budget law, pointing out that the Council added nine new paragraphs to the law.
Fayez said in a statement to Agence / information / "The remainder of the draft general budget for the Law of 2017 is the ninth paragraphs were not added at the origin of the budget sent by the government," pointing out that "what has been voted on in the first session yesterday (Monday) is now out of the law." (so for all those that doubted and challenged Mnt Goat in saying that Iraq parliament did in fact vote on some of the provisions on Monday -  all I can say I was correct again and here is prove once again. So the Kurds got the HCl provisions now passed in a legal law (the 2017 budget) so let’s see what this brings….)
(By the way the passing of the budget in NOT tied to getting the RV once approved. There is no trigger to this event with the RV! )
(Why must we go through this every year for every budget? However, they do need the budget to get the $$$ from the SDR loan installment by the end of 2016. They also need the launching of the currency reform going forward into the first quarter of 2017 to get anymore installment $$. This I know as a FACT! You can BANK on it….lol…lol..So let’s see what EARLY 2017 brings us…)
(I also want to emphasize one more time – there is no RV unless the lower denominations are launched first in the “project to delete the zeros”. The CBI has told us multiple time this will not occur until EARLY 2017)
NO! You are not going to just wake up one morning and see $3.71-$4.20 in FOREX and be rich! It is not going to work the way and I have told you many times. So please, please spread the word to everyone you know that the mechanism to eventually get the money we want, in our investment, begins first with the launching of the new currency…get it? This is what we should all mainly be watching and waiting for. Everything else is just in the process of getting there and to allow them to launch this part of the project.)
Central Bank: the introduction of the "electronic system" for the exchange of credit information
(all I can say is this is a WOW article. Are you excited yet?)
BAGHDAD - The Journal News
The central bank, announced Tuesday, to start working with an electronic system for the exchange of credit information, which allows the government and private banks to share credit information with each other on the one hand and between them and the central bank on the other hand, and in a way a quick and reliable.
The bank said in a statement, that the implementation of the new system will contribute to the departure of the old way of relying on paper correspondence dealing with banks.
He said he would help those banks and their customers both in the credit risk assessment and make sound and quick decisions in the granting of loans and evaluate the payment and clearing by knowing the credit history of operations. (all I can say to this article is – “Welcome Iraq to the 21st century…lol…lol…Well we know that if the banks are ever going to market their mortgages and loan programs they will need this, especially for a market economy.. Also what about these private commercial entities coming into Iraq and doing business. Wil they not also need credit verification?

Central Bank Governor: no room to cancel the sale of the dollar in currency auction window, if canceled the exchange rate would rise
Economy News / special

Ghassan judge

He said the governor of the Iraqi Central Bank on the Keywords stop selling the dollar through selling currencies in the bank window will lead to the collapse of the Iraqi dinar financial situation in Iraq in general, stressing that to say that the central bank is obliged to do the job, though declined to perform this role for the collapsed financial situation in Iraq. (saying the CBI declined to manage it correctly with all the corruption)

Keywords and said in an interview conducted by the CFTC and the agency, "Economy News" said on the sidelines of the annual conference of the Union of Arab Banks, which was held in Beirut recently, without the  sale   window could rise to 3, 4000 dinars per dollar, and maybe more without the currency auction.

He said the governor also in the case to Cancel the Currency window will cause to print trillions of annually to cover the local need of the dinar, will lead to Iraq's infrastructure and massive inflation, unknows on how much excessive cash they would put in circulation. (keywords knows what is coming in 2017 with the launching of the lower denoms and does not want to put large sums of the 3 zero notes back into circulation)

And about the prospects float, similar to other countries in the region, Keywords, said this matter is sealed for the moment, we are working to free floating currency and is not, a large difference between the two. (the governor of the CBI just said they are working on moving to a free floating currency. I wonder when….hint…hint…hint?)

Keywords denied the existence of coin auction at the Central Bank, but the sale of foreign currency window, stressing that the central mediator between the Ministry of Finance and the public is not only.

Turning to the experience of Lebanon and Jordan, in the field of maintaining the stability of their currencies, adding that the situation in Iraq is different

He noted that the solution in Iraq lies in reducing the demand for the dollar through the structure of the Iraqi economy correction, rather than through a reluctance to sell the dollar. (keywords is saying Iraq must reduce the demand for the dollar and increase the demand for the dinar but through launching the economy via the private sector. We know that unlike these other countries Iraq is not going to use the dollar and will de-peg from the dollar in EARLY 2017)

The governor stressed the central bank sought to settle the employees' salaries in private banks, confirming the existence of a trend for the resettlement of all Iraqis salaries of employees over the next year in 2017 in the banks. (the plan is to get almost 50% of the now govt employees into the private sector and off the govt payroll. This is so HUGE for the Iraqi economy if they are successful)

And welcomed the Governor of the Central Bank of any request to host the House of Representatives, stressing the importance of the meeting with the Parliament, on the basis of the fact that monetary policy specialty issue can not be dealt with from afar, or through skirmishes and analysis inaccurate. (keywords is inviting a meeting with the parliament to explain his stand on this subject, if needed. He wants to make sure the facts are known. No rumors, No hype, just the FACTS)
(So the entire basis of this article is a continuation about moving away from the present CBI currency auctions establishing a separate bank to exchange dinars for dollars. The currency auctions would go away. We know from a previous article that the CBI does not agree with this approach and keywords tells us in today why and that the CBI is not going to do it)

Articles End
Their words not mine…..No Rumors, No Hype, Just the FACTS!
Auf Wiedersehen
Much love to ya all,

Mnt Goat

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