If you are reading this news letter today for the very first time I welcome you. But I highly recommend you continue to read it ongoing since my news letters connect together many pieces of this continued saga of the Iraqi dinar revaluation story. I bring no hype or rumors. If I am giving you my personal opinion I will tell you so.
My news letters are usually very long, so print it off, grab a cup of hot coffee, get on your reading glasses, and sit down on a cozy chair. Today’s news is very long once again and there is so much of it to review with you.
I personally do not think that ANY event is “holding up” the revaluation process but simply Iraq it not yet ready. When will they be ready? WHEN EVERYTHING IS IN PLACE AND THEY (IRAQ, UN and USA) FEEL COMFORTABLE WITH THEIR SITUATION !
There is no boogieman behind a curtain that belongs to the cabal or secret society holding this RV back, some have told you. This is simply all foolish nonsense and must stop.
I read many forums and listen to many of these intel conference calls. Many of them simply make me laugh and sick to my stomach because these so called intel “gurus” will tell their audiences that they have been at this intel stuff for many years now. Some for five years or more. Really? - yet they have not yet learned how to gather information and verify it prior to disseminating it to thousands of listeners on their calls?
A good example is this constant, almost monthly, watch for the change in the U.N. Operational Rate Updates. Each month the same posts out in all these forums. Month after month. Each time the rates are updated late all the hype about proof of a pending RV. Really?
Enough already! I say to those vigilantly watching these rates - Get a life! You have nothing better to do?
Shame on you intel “gurus” and this privilege should be taken away from you. I have lost respect for most of you already for what you do to these innocent people just trying to learn and get truthful information about their investment.
Today is August 31st and still no RV or any hope of an RV window until at least mid September onward.
WOW ! The news was simply pouring out of Iraq over the weekend and into this new week, the first week of September.
I told you from mid August to mid September would be a very critical time for getting these reforms accomplished. I told you Abadi would make a final push to get them completed and it would be very sudden and unexpected by most.
I told you that “if” this reform process is successful, we would be in a great window to possibly see the currency reform project pick up momentum and maybe see a significant increase the value of the Iraqi dinar and the continuation of the “deletion of the 3 zeros” project.
I need to address something today that really bothers me. Again people reading only one or two of my posts and then in response they feel a need to come and dump on Mnt Goat. They seem content in putting words in my mouth and then arguing over them.
In fact if you were a faithful, long standing reader of mnt goat you would know better than to say that Mnt Goat believes there is a hold up. I only refer to a “hold up” in a very sarcastic manner for I hope to hit a nerve for many of these so called foolish intel “gurus” so they can see just how foolish and ignorant they are of what is really happening in Iraq. These are the same people that believe there is a hold up as each Monday morning comes around and there was no RV once again for the hundredth time. Go talk to them. Go explain the illogical intel they spread. They are the culprits not Mnt Goat !
So I have to say to My Ladies and Nova you guys are great bearers of intel and I have lots of respect for you guys. I have to thank you for all the efforts you make in helping sort out this revaluation saga. I learn something too every time I listen to your calls. I wish you would do more calls and more often.
But I am also disappointed in you because I feel you have been misinformed and lead. There is a total misunderstanding on the perspective of just what the Mnt Goat news letters is. Seems just like many people, you guys too read just a couple (or maybe just one) news letters and responded to a challenge. You do not know the background of the challenge or the precipice behind it.
So here is their 8/25 response to Mnt Goat challenge to explain “what then is the hold up” . (this does not mean Mnt Goat is saying there is a hold up but just asking if there was a hold – then tell me what it is since you keep telling us there is a hold up each Monday morning).
From My Ladies and Nova:
"SO MOUNTAIN GOAT AGAIN TO ANSWER YOUR CHALLENGE WITH OUT BECOMING ARGUMENTATIVE MY RESPONSE TO "WHAT IS THE HOLD UP" IS SIMPLY “WHAT HOLD UP?”
Remember that Mnt Goat, like My Ladies and Nova and others, does not believe there is ANY HOLDUP. So My Ladies your post was a moot point and I wish no hard feelings. NO HOLD UP and yes I totally agree with your analysis.
However this is exactly my point as I have been saying month after month now. Iraq simply is NOT YET READY TO MOVE TO THE BIG LEAGUE AND PLAY WITH THE BIG GUYS. Can someone say that the overall progress of this country in the areas of banking, financial, legal, security, etc could be the hold up? Yes – and it is a matter of semantics and exactly how you define “hold –up”. So let’s not get bogged down with semantics as we have much more to bring to the dinar community.
They desperately need an Investment Law, they need to combat the seriousness of the money laundering, they need a total secure environment where investors can come to Iraq and get legal disputes settled fairly. Did I mention that most insurance companies will not even do business in a terrorist zone (they have clauses in their contracts to void coverage) or without a legal system, and court system (to fairly settle disputes).
Do large corporations not use insurance as a mechanism for spreading their risk (losses)? Nova you should know about this- Yes, No? You are a banker. Would you feel comfortable going into Iraq and setting up a branch of your bank? Wouldn’t you be worried about your investment in land, building and other assets should a bomb explode or terrorists raid the vault? Would you feel comfortable loaning to Iraqi citizens knowing they could be blown up at anytime? How would they repay the loan?
Would you feel comfortable doing just the basic banking knowing there is no big brother watching over you and helping you spread your risks on these loans such as insurance does?
Folks this is all financial and banking stuff too. These issues I talk about, such as in the pending reforms, are the mechanisms to address these issues. Don’t you get it? HOW MANY TIMES AND HOW MANY WAYS MUST I EXPLAIN IT!
What the hell do you think I have been writing about over these last many months? Have you read over 100’s of my news letters?
So My Ladies and Nova (and others like you) may be addressing these reforms from another angle and that is excellent since we all need to know it from the banking and finance side too, but I assure you it’s all the same. I am glad we are now all on the same page and so let’s all relax and settle down (as my Hubby tells me).
Now let’s get back to our business of today and see what the news brings us. The main emphasis of today is on the talk about floating the dinar rate. Folks – this is HUGE news ! This is why I am dedicating almost this entire news letter today on this topic.
The CBI knows it must make some kind of move in the near future to go international. The pressure is enormous to do something. They want to sell international bonds and they need to fully implement these tariffs. They also need to implement an income tax. They need to bring in investments.
So again we are seeing many articles published on debates going on about changing the dinar exchange rate. We may not like what they say (the rate they give) but at least they are talking about it more now, more openly than ever before. Below is a recent set of 3 articles on this topic from this past week alone.
Last week we also read they were debating the pros and cons of FLOATING the dinar rate and the disparity of the Iraqi dinar to other neighboring countries. So what will they actually do? Iraq simply can not continue to do business and move forward without a realistic currency value.
We have to just keep reading the news to find out what they are going to do. No magic pills or “secret sources”. We know if they finally roll out to the international exchanges and then float the currency at a low beginning rate, it will not be long before we see some significant value increase.
We will all then be subject to the international market rate at the banks at this point and so we can then go exchange our dinar anytime we wish and at any rate. No need for conference calls, making bank appointments, long lines, 20 minutes sessions with the bankers, etc. This is all nonsense and hype told to you over and over again that most of you believe it to be true.
Does this sound so contrary to all the BS you have been hearing about FEAR mongering at the banks including banking exchange procedure packages only given to certain people, or how about busses showing up at the bank to exchange, oh and 1 800# to call to make appointments (yes this is a good one…ha ha ha).
This I tell you is all nothing but FEAR mongering and those that have been perpetrating this nonsense on you should be asked to end it by the authorities. These so called intel “gurus” have an agenda and you can see it all playing out now in the long run as so many of you fine and honest dinarians have lost so much money on reserves orders already that will never be filled. I have repeatedly warned you to stay away from them and get off their intel calls.
This is my personal theory on what the CBI is ultimately is going to do – I believe they know they must float the value of the IQD and gradually let it rise. They will NOT ATTEMPT to push out a very high rate right (i.e. $3.91) initially due to the money laundering (the current CBI governor has not controlled) and the terrorists activities. The CBI does talk about starting the project to delete the zeros sometime in very early 2016. What will they ultimately do? Again my personal belief is strong that Abadi is going to clean up the CBI too and Dr Shabibi will be back as the governor of the CBI to continue his original plan as they are almost now back on track.
(please don’t anyone argue with me that Dr Shabibi is back as the seated governor of the CBI. Since I know better so instead of arguing with me for a change just listen to me. Dr Shabibi is simply now on a consultant basis and most of his advice is being ignored by the currency proxy governor. It is very frustrating for him since we watches on the side lines. This is why they are in such a mess). Remember who placed this current proxy governor in the office….enough said…more house cleaning in the CBI is coming…)
The question is - from what rate will be the starting point if they change their mind and decide to do it now?
Do they first make a very significant leap like to maybe 90 cents or $1.14 as some and I too believe they will do OR do they come out very low (1059) and account for inflation and let it slowly break into the market?
Also remember in the recent articles (article below about the bond sale). It is ONLY national (in country) bonds for now so do not expect an RV for these bonds. They are selling at 10.6 dinars per USD penny. WOW! Would you buy them without an international rate to back them up to give you more future earnings? Why would you? They are telling us the are extending the bond drive for another month. Why? Read my lips – BECAUSE ITS ANOTHER FAILURE WITHOUT THE RV FIRST!
I also want to address an article I included about them talking about the 50k and 100k notes once again. You know the ones they are holding off until the RV since they know from economic experts it will cause more hyper-inflation. Dr Shabibi is telling them to hold off until they significantly increase the value and roll out international platforms. Will they listen?
Many economists have stated the pros and cons of this move now and most agreed that they would cause higher inflation rates in Iraq. But the article below states new class of categories (50 and 100) thousand, indicating that these groups are designed to facilitate the process of carrying currency among citizens. It seems the CBI may distribute these now anyhow contrary to advice by economists because they see other advantages. Will the advice of DR Shabibi support this attitude? I do not think he would agree.
Abdul Khaliq stressed that in the article below that to delete the value of the zeros and the replacement of the currency at this time could not successful because the environment is not ripe for it, stressing that this process needs a stable security environment as well as providing sophisticated technology and Komrat and devices to destroy the old currency and devices supervisory good (meaning honest people to do the work).
There you have it once again ! Their words not mine. No Hype, no Rumors, just facts.
So what does this all mean? Why did I bring it to you today?
What I am about to tell you is the most important part of the first 4 pages of this new letter today.
Read it carefully.
We are witnessing bad practices and confusion within the CBI. Plain and simple, We can see it so obviously in these articles. The acting proxy governor, Alaq, is inexperienced and not knowledgeable as to what action to take during this economic crisis. He is not proactive and can not make policies to combat issues prior to them becoming very severe. We will not see any progress in the direction of the currency reform until he is gone and they can get a suitable experienced person replacement to lead the CBI. Will Dr Shabibi be that person. Many believe (including myself) that he will return. Remember Dr Shabibi is still the “official” acting governor of the CBI just not allowed to sit and manage the CBI currently.
IRAQ CONSIDERS THE POSSIBILITIES AND NEGITIVE EFFECT OF RAISING THE EXCHANGE RATE TO 1500 DINAR TO 1 USD.
Ali Mohsen Keywords
Governor of the Central Bank of Iraq
The financial crisis currently faced by Iraq, which can be extended to the next few years will inevitably require a serious and profound measures to spare the country a real risk has ridden the economic, social, security and services by circumstances, if it is not addressed articulated plans and successful solutions. The development of solutions and plans should not stems from one fact or one factor is the low price of oil source, because starting from that alone does not get us to the processors and attractive solutions touches the essence of the problem and the challenges of the immediate or future.
The state budget has been exporting large deficit even with revenue rising significantly (depending on the oil price rise), and spending, who met those revenues did not contribute to the development of the productive base and the infrastructure and services in proportion to the growing resources, but he was spending a reason to commit the state high fixed costs can not dislodge or reduced, especially in the massive recruitment is the product, and in the financing of self-financing bodies and public sector companies.
In the creation of entities and new ministries despite the expansion of the formations provinces based on the principle of administrative decentralization, accompanied by (easy flux of resources) neglect of non-oil revenues from fees and wages tax and other, and the acquisition of corrupt them (for example, pays the merchant importing container (Alkuinter) 4 Thousands of loyal Customs dollars (private sector), pays the Savior equivalent to a thousand dollars in fees for customs authority and the rest (3) thousand dollars obsessed by it and a group of staff in the customs of colluding with them to change, adapt and documentation of goods imported).
Thus, if we want to hold your breath in the hollow in the joints of the State in my income and expenditure, we will find serious and destructive phenomena miss out on the country's chances of development and growth and optimal use of resources.
On the basis of these facts should not be thinking about the easy solutions that have the country and citizens victim imbalances and deficiencies and poor management, use and lack of planning, oversight and accountability, and tinkering with all that or cover it up again By do not address the root of the problem.
You must be launched solutions to diagnose phenomena and glitches in the expenses and revenues of the state, which if not addressed by the real, the oil resources no matter how grown up you will be unable to achieve a balance and achieve economic and development goals of the public budget, and continues the drain of resources trends do not check real accumulation in expansion of economic activity and the reduction of unemployment and social welfare and human development, and continues to expand into new obligations on the State serve as the basis and foundation for real crises when oil revenues decline.
The proposal to reduce the value of the Iraqi dinar against the US dollar, which some posed today as a means to cover the deficit in the state budget (by paying a higher value of the dollar, which buys the Central Bank of the Ministry of Finance and thus sell the dollar at a higher price in the market - the proposed 1500 dinars), this proposal is undoubtedly a proposal followed by some countries for objective goals, in most cases, it is to encourage the country's exports where they become worth less in foreign currency shall be priced at a global competitor.
In the case of Iraq is the proposed solution easy and direct increases the amount of the dinar, which you get the Ministry of Finance against the dollar, but a solution from our point of view holds many cons on the one hand, on the other hand does not help to address the root of the problem chronic, but not suited structural imbalances, and Aicod to re-spending and government revenue structure in the macroeconomic framework, but would be a way to cover the reality with all its anomalies and serious imbalances, so we have exhausted all means of reform first, in order to keep spending paths and revenue on the basis of incorrect, before to resort to other solutions.
In any case, the proposed reduction rate of the dinar against the dollar mired with many of the observations and cons can highlight the most important as follows:
a. The reduction in the exchange rate of local currency, which is taken by States usually associated with the availability of the following (Policy Terms, conditions is available in the case of Iraq):
A-requires a flexibility in demand for imports, which means that the increase in the exchange rate for foreign currency will lead to reduced demand for imports (due to the high price tag), and this flexibility is available to the absence of national production base, leading to a negative result , where higher amounts spent in national currency on imported goods and thus increase the demand for foreign currency, leading to further deterioration in the balance of payments.
(b) that there is a significant volume of national exports, so that the resulting decline in national commodity prices (including the equivalent in foreign currency) intended for export due to the reduction of the national currency exchange rate, an increase in exports, and this is verified in Iraq, where almost the country does not make something, not because of price competition, but because of the lack of diverse production base in key sectors such as agriculture, industry, energy ... etc., where form Industry and Agriculture proportions in low GDP components (agriculture 4.5%, industry 1.83%).
(c) reducing the lead of the national currency exchange rate to reduce production costs, including wages are based, and this is not available or possible in the circumstances of the country political, social and security.
2. Unlike the report by some of the gentlemen of the proposed terms of the amount can be calculated provided the balance of the exchange rate difference, which was appreciated by 15 trillion dinars, the correct account in the light of the actual amount of dollars purchased by the central bank and Ministry of Finance (excluding repayments Financial commitments in dollars, such as oil, electricity, defense, foreign and reimbursements assuming projects that all other ministries and projects for Initiating an obligation to the dollar with that assumption is unrealistic), the correct amount can be made available for this year to exceed 5 trillion dinars and next year will be up to 10 trillion dinars in the best the possibilities, and this is the difference - who will pay the price of Iraqi citizens - can be supplied from other alternatives and those alternatives not only provide large sums of money, but check economic and financial task purposes in the short and long term.
On the other hand, the fulfillment of financial obligations to the oil companies will contribute to the increase in revenues, where the addition of every 100 thousand barrels of oil extracted and the source increases revenue by about $ 2 billion (assuming the price of a barrel to $ 50). There is considerable scope for increasing oil production as well as gas if what has financial obligations file management in favor of the companies producing oil and gas.
3. The proposal put two prices for the disbursement of the dinar, one low and one high allocated to cover essential needs (in order not to influence the citizen's task and sectors), such as food and medicine supplies Industry, agriculture and others, the proposal impractical and creates chaos and exploitation and corruption, where the reality of ports and customs authorities can not be to extend the application of a sound proposal, and we have experiences in this field, in which the instructions and controls turned into a means of blackmail and corruption and pour all in the interest of the corrupt lead to operations manipulation and rigging wide .
4-The lifting of the dollar exchange rate to 1,500 dinars (as proposed) means reduced purchasing power of citizens by 30%, in addition to cases of exploitation and loss of control over the market, which adds another increase, and this increase in prices is too high under the current circumstances where the limited income of the vast proportion of citizens in addition to unemployment and high poverty rates, as well as Cairo conditions experienced by millions of displaced people living humane difficult circumstances and resources barely sufficient to feed life and will be the beneficiary layer of traders and speculators.
5. The damage to raise the exchange rate and thus prices the public pays the price citizens with low-income equally borne by those with high incomes, which increases the phenomenon of large class differences, in the absence of tax policy reduce those differences, and make changes in the price structure and others are in favor of that layer.
The absence of the function of tax policy in the redistribution of income through taxation, according to real incomes to be re-distributed to citizens with limited income and poor through various means of support and services, this absence deepens the risk of lowering the exchange rate of the dinar.
6. The lifting of the exchange rate of the dollar by 30% mean reduction of assets and the value of investments Foreign such proportion that have been paid in dinars purchased in dollars at the time, but even the Iraqi business sector is calculated found and investments denominated in dollars (for psychological reasons, historical and economic), which generates serious repercussions of concern and hedge fears.
extends the impact to the level of citizens who are used to assess their assets and their properties and their property on the basis of the dollar, leading to raise Akiemha the national currency, and holds a clientele for it to rise, such as property buyers for residential or commercial purposes.
7. The lifting of exchange rate policy when they follow to serve as a tax on Local-income as in the proposed increase, must be accompanied by a re-look at the direct and indirect taxes toward mitigate or reduce them, it is not logical to impose taxes along with the increase in the exchange rate as it means a reduction of per capita income or purchasing power from both sides, and it should be noted here that the government decided to apply the law tariff starting from 08/01/2015 in addition to increasing the tax on employees' salaries and imposing a new tax on their allowances, which means carrying the majority of citizens (who are employees) a double financial burden not commensurate with the status of living of the citizens, in addition to government guidelines apply the electricity tariff and the gradual lifting fuel subsidies and other measures.
8. The gradient in the direction of fiscal and monetary decisions is an important and necessary but not to take this into account and take a big surprise decisions at high rates creates a negative impact on economic activity and the business environment.
The devaluation of the exchange rate of the dinar by 30% - as proposed - is a very high percentage confuse all economic conditions in all sectors.
The central bank has increased this year, the dollar exchange rate, which buys of Finance from 1166 to 1180 dinars, and can continue to amendment depending on the circumstances at rates not confuse the situation.
We believe that the possible solutions to address the financial challenges faced by Iraq are in the following frames (without going into the details of each proposal): -
1. Comprehensive reform of the tax authorities, and that can save billions of dollars a year, with the assignment of customs collections in all ports to international companies specialized in investment. Frame
2. Stimulate and activate tools and market domestic debt, through the issuance of bonds and traded in the market, which is a source basis for funding in most countries of the world, given that the central bank proposed to the government and the national bond issue worth 5 trillion dinars and local bonds, dollar futures against the dinar worth $ 5 billion, The government agreed on it has been assigned versions Bank manages on behalf of the government and will soon in the market.
3. A comprehensive survey of real estate State (land and buildings), leased and vacant Akiemha and revenues from rental or leasing or other, to study them and take appropriate action on the lease, sell or invest, to maximize possible resources of exploited economically and efficiently.
4. Ending the financing of the state budget for the bodies self-funded (according to the laws) within a period not exceeding 5 years, any funding or support rate reduced by 20% annually until the departure of its funding or grants her from the general budget, note that the current annual allocations to those bodies and agencies amounting to trillions (JD).
5. Activation of what is stated in the General Budget Law for the year 2015, of allowing the government deferred payment projects worth $ 5 billion, to be strategic projects (limited in number and wide service) and managed a higher committee and a high degree of transparency.
6. The application of tariff electricity consumption, taking into account the gradient in wages to focus on high consumption and to develop suitable for the consumption of the poor and middle-class wages, knowing that all accounts suggest the possibility of achieving an amount of $ 6 billion a year if they were those tariff application.
7. Reconsideration of support policies (such as ration card, fuel ...) so that went to the poor and limited income groups.
8. Activating the strategic promotion of the private sector which was approved by the government and keep track of their content carefully and diligently a task and accurate strategy and placed center after studies and discussions between all the parties of the government and the private sector and specialists.
9. Identify a number of major investment projects per year (for example, 10 projects), presented to the investment with a package of incentives and privileges and a sufficient amount of guarantees, and assume a higher committee formed by the Council of Ministers to identify and promote these projects and supervise the stages of delivery and provide all means of support to them.
10. The resolution of public sector companies file a private money-losing ones, which have undergone studies and proposals and plans of years ago and it has become very necessary to the completion of self-determination, taking into account not damage the rhythm of the workers.
11. Benefit fast loans provided by the CBI industrial, agricultural and real estate sector, which amounts to 5 trillion dinars, where -With Alosv- not fired yet for the government's delay in the necessary instructions to launch determinants mode, note that the central bank also allocated $1 trillion dinars to finance projects Small private banks through lending.
12. The need to resolve lagging government projects that have been paying large sums them without complete file, much of which has been included for years, and we see the need for the Council of Ministers to form a committee to review the situation of these projects and ways to accomplish or re amounts, as we see it is necessary to be not insert delete or replace projects only through submission to the Council of Ministers, and be the first choice for the implementation of investment by the private sector first.
13. Seek to get support and help countries that share Iraq in its attitude towards terrorism by moving them to finance Iraq's reconstruction fund, and is a national team of the three presidencies liaise with these countries and encourage them to contribute to the mitigation of the destruction and devastation caused by terrorism.
14. Development of a medium-term plan, to restructure the government and higher authorities and local administrations, thus alleviating the administrative sag and reduces costs and increases the efficiency and productivity, and poses for the national team purpose of professionals as well as academics and international consulting firms, that studies and proposals are not subject to political considerations or interests contradict and goals of that plan.
15. Reconsider system of supervision and inspection and integrity in the light of the experience of the past years, and to identify strengths and weaknesses in their work and ways to improve their roles, leading to a real and effective and efficient for the phenomena of corruption fight.
Here, we refer to we have given some time ago to the Cabinet a proposal to abolish offices of inspectors general, and replace it with one office be at the national level, and represents the Council of Ministers arm in control and is associated with the Prime Minister, the executive power tool to be in control of themselves, and without subjecting it to the impacts and pressures of the ministries and departments which shall control, as we suggested characterization or tasks for the work of that office selected aspects of mission and essential without immersion in the details or the tasks that are the responsibility of the internal or external control devices.
BONDS TO SALES AT 1095 DINAR TO 1 USD
The central bank announced the extension of the bond sale for the benefit of the Ministry of Finance one month
The central bank announced on Sunday, to extend the period for the bond sale for the benefit of the Ministry of Finance and one month, while explained that it will sell bonds in Iraqi dinars at a price of 1095 dinars per dollar. The bank said in a statement briefed "Iraq law," a copy of it, "will be extended sales in nominal bond futures delivery in the currency of the US dollar on behalf of the Ministry of Finance to be one of the first of next September and up to 30 of the same month," noting that "Asdarih will be four categories ( 2,500 to 10,000 and 50,000 and 100,000) US dollars, and the total amount of two billion dollars. " The bank said it "will sell the bonds at a price of Iraqi dinars 1095 dinars per dollar and payable by the Ministry of Finance on February 28, 2017 to be paid in dollars maturity."
The Central Bank of Iraq became independent under the law issued on the sixth of March 2004, as an independent body, which is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies are being daily for the sale and purchase of foreign currencies sessions except public holidays which stops the Bank for these auctions.
IRAQI DINAR COMPETE ARAB CURRENCIES IN THE EXCHANGE RATE
Basil Abbas Khudair
Tuesday, August 25 0.2015
After the application of monetary policy to maintain the exchange rate of the Iraqi dinar against the US dollar prices, which began since 2004, and so today and led by the Central Bank of Iraq, and defended by experts International Sinan Shabib (article from the post of Governor of the Bank) and the appearance of Mohammed Saleh (Economic Adviser currently the Council of Ministers), and cost Iraq more than $ 300 billion, has become the Iraqi currency (the dinar) Currency compete in many countries, including the Lebanese pound and the Somali shilling and condoms Mauritanian lunar franc (Comoros) and the Yemeni rial, because the exchange rate against the dollar, we have the best of these currencies, the Iraqi Vdinar equivalent to $ 0.0009 while the equivalent lira in Lebanon (for example) .00066, so the US dollar equivalent of 1146 dinars in Iraq (except for commission of the Central Bank) In Lebanon, the US dollar equivalent of 1,500 pounds, and because Lebanon is a country in non-oil is not the right comparison between the two, it is justice that compare the Iraq oil-producing Arab countries regarding exchange rates, In Kuwait, the equivalent of the Kuwaiti dinar to $ 3.42 (Kuwaiti dinar equivalent of nearly 5,000 Iraqi dinars) as equivalent to the Bahraini dinar to $ 2.66 in the Sultanate of Oman equivalent riyal to $ 2.6, while in Jordan, the dinar equivalent of $ 1.41, and in the Libya Vdinar have the equivalent of $ 0.73.
Might ask anybody, how could Kuwait occupied by the former regime and lost everything to restore prestige to the dinar (who was in a competitive race with the Iraqi dinar so that overcomes one over the other little difference to the very beginning of the eighties of the last century), and how Jordan was able to maintain fixed exchange rates Several years ago, a sink indebtedness and the aid-dependent and does not involve the fortunes of the oil it imports crude oil from Iraq, although it adjoins (Israel) have fought many wars and has a constant threat because of unwanted neighbor?
And how withstood the Libyan dinar after the overthrow of the Gaddafi regime and the proliferation of militias and tribal divisions? And although we have the part of the answers to these and other questions, we Snhjb our answers because they may pose views on the subject, it is needed is not a number of opinions, but a detailed and clear facts, facts and numbers and names answers, a subject must Taatkvlh neutral parties and should preferably be international in order to be referred to eliminate Iraqi when you confirm the existence of suspicions of corruption, subject of such importance should be subject to review and investigation and audit and accountability and that does not pass unnoticed, because it relates to the wealth of Iraq during more than 12 years and some are wasted and ran away without the benefit of the country and reflected on sustainable development but poorly too.
It goes from our compatriots to any country in the world impressed due to witnessing the progress and services, while we Nckoa all of the deficiencies and shortcomings in most aspects, despite the annual Mdjulatna of oil revenues alone may draw five times or more of balancing those countries, oddly enough The demonstrations, which the country is currently witnessing sometimes focus on topics very much simpler than the economic problems experienced by Iraq,
The country is on the verge of a real setbacks when the price of a barrel of oil up to $ 30 or less, because the state will be insolvent in its affairs management may be forced to enter the enormous indebtedness guaranteed Oil or national sovereignty, and can pass such topics easily as long as the salaries paid Bmeidha or after a delay for a limited number of days, and still wound is bleeding in the area of selling the dollar in the Iraqi Central Bank auction, Valambiet up to $ 250 million a day and sales of oil does not exceed 4 million barrels per day with an average price of 40 dollars per barrel, which means that daily oil revenues are less than sales, and what baffles if oil revenues up to $ 160 million a day, so how can the auction sells $ 250 million a day and where to go these sales? It's a complicated question is asked constantly convincing answer but did not get it after the citizen.
Despite the tremendous sales of the dollar (former and current), which estimated value of the current chairman of the Finance Committee in the Parliament, Dr. Ahmad Chalabi of more than $ 300 billion, the real exchange rate of the citizen is the price of 1230 dinars per dollar, which means that efforts to stabilize the exchange rate policy in order not to hurt citizen of the volatility of exchange rates is real, Valtzbzb brought the price to 1480 dinars per dollar did not fall into what it is until after the Federal Court approval to repeal the Council of Ministers of the amendments to the House of Representatives on some budget 2015 materials including setting the exchange no more than $ 75 million a day , also suggesting that the absence of any port can citizen on the dollar gets it at the price of the central bank when his desire or having to travel outside of Iraq for the purpose of (the Hajj, Umrah, treatment, tourism, etc.), and are resorting to banking that choose Offices exchange rates outside the mainstream at the central bank prices, it was really strange to think that the Iraqi Central Bank is a tool to manage the money and the economy, even though he was on monetary policy because the economic and financial policies must be developed and managed stakeholders out, as that of unjust watching on bank sales Central without creating a convenient way for the delivery of the dollar to the citizen, because it is the legitimate right and not a share of (thieves).
PARLIAMENT CONFERMS THEY SUPPORT NEW LARGE CURRENCY NOTES AND NOT READY TO DELETE THE ZEROS !!!!
Parliamentary Finance supports the issuance of large cash categories
August 23, 2015
Our economy / Baghdad
The parliamentary finance committee confirmed that it supports the issuance of new categories of cash to facilitate the process of carrying currency among citizens, indicating that the environment is not ready to replace the value of the currency or delete the zeros of them.
Said Finance Committee member Jabbar Abdul Khaliq in an exclusive interview with our economy, that the Finance Committee in the House of Representatives supports the issuance of a new class of categories (50 and 100) thousand, indicating that these groups are designed to facilitate the process of carrying currency among citizens.
Abdul Khaliq stressed that the theme delete the value of the zeros and the replacement of the currency at this time is not successful because the environment is ripe for it, stressing that this process needs a stable security environment as well as providing sophisticated technology and Komrat and devices to destroy the old currency and devices supervisory good.
The Council of Ministers in the previous session postponed the application of the decision to delete the zeros from the current currency, without specifying a time limit before they resume the parliamentary finance committee and the central bank steps discuss implementation of the resolution at the current session on that early next year will be introduced in 2016 in principle.
Update on Reform Laws
So in many of my news letters I keep giving you an update on what we have been told are the critical laws needed for a stable Iraq (not rumor or conjecture). Today I want to update you on the current status of these laws. Please see the articles below.
Urgent Parliament POSTPONES VOTING ON NATIONAL GUARDS LAW till dealing on its articles
Baghdad (AIN) –The parliament postponed voting on the National Guards law draft till reaching an agreement on its articles by the political sides." /End/
PARLIAMENTARY ECONOMY: THE COMPLETION OF THE AMENDMENT OF THE INVESTMENT LAW AND SUBMITTED TO A VOTE NEAREST SESSION
[Baghdad-where] announced to the economic and investment commission in Parliament, for the completion of the amendment of the Investment Law No. 13 of 2006.
The committee member said Osman Doski told all of Iraq [where] that "Alhadjnh finished writing a draft amendment to the law and will be presented in the nearest session of parliament for a vote."
He explained Doski "The main amendments to the Act added paragraphs to facilitate foreign investor in Iraq and give the work of the right to submit a judicial complaint in Iraqi courts and abroad Investment Authority if what happened there is disagreement between them with the provision of facilities in the acquisition of lands for investors.
"The Chairman of the Committee of Economy and Investment parliamentary Jawad al-Bolani said last month," The second draft amendment to the investment law will be presented to the final vote in the coming period, and will be a great achievement of the legislative side of the Iraqi economy.
"He said Bolani" the introduction of a number of radical changes to the law which will form an important factor in the creation of excellent investment environment and meet the aspiration of all parties ".anthy 2
Here Comes Reforms III
PARLIAMENTARY REFORMS UNEXPECTED CUT...NEXT FEW DAYS
08/30/2015 (00:01 pm)
Parliamentary reforms unexpected cut advisers, managers and pressing expenses
BAGHDAD / Mohammad Sabah
House of Representatives is preparing to make the second Hzmth reform, during the next few days.And is expected to include a reduction of advisers speaker of parliament and adviser to the permanent parliamentary committees and some of the directors-general and heads of sub-districts.
And witnessing a secret corridors of the House of Representatives debate on the reform second paper for fear of political pressure to prevent its application.
In this context, the National Alliance believes that the parliamentary and governmental reform packages is not enough to reform the political system.
It seems that the first paper reforms sent by Prime Minister Haider al-Abadi embarrassed parliament and political mass and forced them to legislative reform of their organization in terms of performance and cut costs.
And the voice of the House of Representatives on the parliamentary reforms launched by the President of the Parliament Saleem al-Jubouri in 11 of the Aug. 26, paragraph contained package.
The prime minister Haider al-Abadi, issued on August 9 th, a series of directives, which included a reduction to prepare an immediate protections for all those responsible, and the abolition of the posts of Vice President and the Prime Minister immediately.
MP Salim says Shawki, a member of the Parliamentary Legal Committee (range), "The House of Representatives is preparing to submit his paper Correctional second judge to reduce the number adviser to the Speaker of Parliament and parliamentary committees and sub-permanent circuits and general managers."
Shawki "These reforms include restructuring the legislative institution in line with the reformist government programs advocated by the reference Najaf and called the demonstrators", stressing that "the Presidency of the Council of Representatives is considering new paper for submission in the next few days."
He adds mass citizen member of the "advisers House Speaker numbering to ten advisers at the time allocated for each parliamentary standing committee three advisers only," pointing out that "the number of sub-districts for the House of Representatives more than 10 its managers and employees, as well as about 10 years Managers the structure of the House of Representatives. "
And it refers to a member of the Legal Committee that "these numbers will be reduced in the paper the next parliamentary reform, which is currently being prepared by the Presidency of the Council of Representatives and specialists in the parliament."
And confirmation of detection MP Salim Chawki, approved a parliamentary sources familiar with the existence of a paper reform intends to House Speaker Salim al-submission to the political blocs in order to consult in Tvasilha.oadavc sources, who spoke for (long) condition of anonymity, that "this paper reformist being written confidentially by the Presidium of the House of Representatives away from the pressures of the political blocs that may hinder completion in the event of cancellation of some positions. "
But the Turkmen MP Hassan Turan denies (range) For the Legal Committee, which is one of its members. He called on the President of the House of Representatives to the presentation of these reforms on the heads of political blocs and the competent committees.
For his part, MP Razak Mahabs confirms that "the issue of reform needs to be a long time," adding that "the first reformist paper presented by the House of Representatives is not sufficient to complete the repair process completely."
He Mahabs, in an interview with the (range), that "Everyone is waiting for asking parliamentary papers and other government to complete the reform process and a wide large in order to assess the political system and the elimination of financial and administrative corruption."
And see a member of the Badr parliamentary bloc that "the government and parliamentary reforms require the feminine special grades, which weighed on the federal budget and the state was not intended to enhance the performance of the state as far as being the satisfaction of the political parties."
Stresses Mahabs that "all positions of the Iraqi state and distributed on a sectarian basis, which significantly affected not to provide services for the Iraqi people," pointing out that "Mahassata political system pay the introduction of hundreds of special grades to satisfy blocs and political parties."
Update on Nori Al Maliki
Seems that I am one of the few, if not the only one, who is sticking to my convictions on this topic of Nori al-Maliki and that his influence and that of what he brings is the Iranian influence and it must be dealt with prior to any RV. I have been saying this now for years since the beginning and I will continue to stress this point.
So now that Abadi has momentum and is moving forward quickly with his reforms we see articles now coming out freely denouncing Iranian influence and how it was the major source of corruption and constant violence, fear and discontent in Iraq. Many have bashed me for my investment in Iraq when I tell them I hold the currency and have criticized me for it. They say and I quote - “ Iraq is just a bunch of violent people and will never be peaceful”. I of course say really? I could not disagree more. These kind of statements really bother me and shows lack of COMPASSION and HOPE for the Iraqi people. Do you think the overall general citizens of Iraq enjoy living in fear of their lives everyday with little hope it will ever end? Absolutely not! They will end this violence, they will have electiricty 24 hours a day and they will be able to walk the streets once again in freedom and it is coming soon.
Since with my intelligence experience in the Army, I know better and I knew where the violence and corruption has been coming from. I stated this many times in the past. I stated part of the culprit was the USA in supplying a continued support for Nori al-Maliki when in 2012, on the verge of a no-confidence vote, the leaders of Iraq urged and pleaded with the USA to withdraw any support from the Maliki administration. Instead you see what happened as Maliki progressed further down the road of dictatorship. This was just an example of the horrific leadership by this currency administration when it comes to policies in the middle east.
Yes- I am blaming the USA because I know for a fact that this Iranian influence could all have ended long before DAASH and ISIS were allowed to infiltrate by Maliki in June 2014. So now, like many issues, the mess left behind by the USA must be cleaned up. They are leaving Iraq holding the bag. Don’t you think that the Iraqi politicians know this too and carry resentment towards the USA in what the USA has done to them? If you do not understand this point then you are missing so much in truly understanding what has happened in the last 4 years under Maliki.
You see Nori al-Maliki was the ring leader in Iraq of all the terrorism and constant bombings. The international community was so very naive in not seeing this man for who he really is and responding to him. Maliki had his own private security forces acting on his behalf. Now WE MUST SEE MALIKI AND HIS GOONS GONE AND PROSECUTED BEFORE WE CAN HAVE ANY REAL SENSE OF PEACE IN IRAQ and thus any RV. This peace is coming and this article below I really like since finally it tells the story honestly and truthfully. They are now speaking out and are no longer afraid to do so
JAMAL AL-DIN: THE ELIMINATION OF MILITIA BEGINNING OF THE END OF IRANIAN INFLUENCE IN IRAQ
Sunday, August 30, 2015
Ayad Jamal al-Din says that the movement now in Iraq is not a sectarian It is considered that the Iranian corruption and corruption in the Iraq war disappears under the slogan Daash.
Political and said the Shiite and former deputy in the Iraqi parliament, the cleric Ayad Jamal al-Din, that the elimination of the militias is the beginning of the end of Iranian influence in Iraq and the beginning of the end to corruption and the corrupt.
He stressed that "the movement now in Iraq is not a sectarian," adding that Iran's corruption and corruption in the Iraq war disappears under the slogan Daash.
Said Jamal al-Din in his Tweets on the social networking "Twitter" site, that "the militarization of Shiite militias and making Iranian industry is designed to protect the interests of Tehran," adding that "what matters is the interests of Iran and that demolished homelands Shiites and threatened their stability.
He said Shiite cleric exhibitions of Iranian influence in Iraq, that "the Iranian corruption and corruption in Iraq disappears under the war on Daash slogan," noting that "corruption in Iraq disappears under the protection of" Wali al-Faqih, "a reference Iranian Leader Ali Khamenei.
He Ayad Jamal al-Din, which calls for a civilian government, that corruption in Iraq, a great tree leaves and roots in Baghdad in Tehran, adding that "the uprooting of corruption in Iraq means cursed Iran and symbols in Iraq."
Shiite cleric said that "Iran has established militias in Iraq before entering the organization Daash many years," and urged Iraq's Sunnis and Kurds in the Kurdistan region of uprising against the corrupt and Daash in order to rebuild Iraq after Iran and output Daash.
CITIZEN NURI AL-MALIKI LEAVES GREEN ZONE
Till next time…. Auf Wiedersehen!
Peace and Luv To Ya All,