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New Republic Report: "Released" -- October 20, 2016

---------- ​Republic Update Thursday October 20, 2016  ----------- M1 released GCR/RV on Wednesday 10.19.2016 @ 6pm PST. World Court t...

Wednesday, April 20, 2016

Mountain Goat: UU6928 -- "The Glass is Half Full"

Edition: UU6928

Dated: April 20, 2016
Title: “The Glass is Half Full”

Hello Everyone,

Today’s news letter is one of those extra long news letters. It is long because the news is just pouring out of Iraq on this ongoing sage to fulfill the Abadi reforms, in particular the reforms concerning the cabinet reshuffle.

I also included some recent interesting news about the “project to delete the zeroes”. It is worth the read and gives us hope.

Yesterday George emailed me some questions and hoped that I could address them in my next news letters. This is my next news letter and so I will start today with assisting you to understand come clarity to your concerns.

1. Question- “In the midst of all the Chaos that Maliki and these corrupt politicians are creating over the technocratic government appointments, why aren't the clerics and religious leaders publicly defending Abadi, Jubouri and Masoud against these plots to overthrow them?

Answer- The religious leaders never wanted to get into politics. They were forced to finally speak up publicly and outside of the mosque which up to then has been their allowed venue. So they do not want to take political sides. Instead they are for the righteous thus what they feel is right for Iraqi people. They see the hungry, the refugees, the bombed out buildings still 13 years after war. They are trying to force any party, anyone who will listen to them to act and make the needed changes. It is about the reforms that can implement the changes and not about any one political member. Yes – Sadr has also called for judicial reforms which includes bringing to justice to anyone who has caused this situation to the good people of Iraq. He has singled out some from the others since they were most responsible. But this is not politically motivated. This may include Nori al-Maliki and his goons. God is about love and peace but God is also about justice and those who bring hatred and despair to God’s creation must endure the justice that come along with it. Eventually it all catches up to you.

Remember also the Shiites still maintain the prime minister position under the quota system. (Speaker of the house goes to a Sunni, President to a Kurd, and PM goes to the Shiite) These are the three presidents. Each under the constitution has some sort of check and balance on the other. The PM however has the balance of power. Remember they all agreed to this setup when writing up the constitution to give this to the Shiites. No one forced them. This is a democracy. It is not the Shiites themselves that are seen as so bad but the infiltrated Iranian backed Shiites under Iranian terrorists leadership influence that are the culprits that want to control Iraq. This is what the people don’t want as they have seen the result for too long already. The ring leader is Maliki. This is what has caused the fighting between the Sunni and Shiites. It’s not the religious aspects so much as the terrorism. Get it? Sadr is attempting to bring the changes under the umbrella of not what he wants as a religious leader but from aspects of what is good for the people.

2. Question - Why don't they just arrest Maliki and the higher up goons that work for him????

Answer- To understand why please look at Nori al-Maliki as you would any politician in the USA that has resigned from a political position. Remember even president Nixon, who resigned from office due to corruption, still maintained all honors and respects as a ex-president right up to is death. So too with Maliki since he was the leading figure head for 8 years to Iraq. Personally I do not respect the former president Nixon as I do not also respect Maliki or any politician who uses his office for his own gain for power or greed. Just so you know.

Having said all this I do believe the USA is still backing Maliki to some degree, but not to be in control of the country again. They feel they still need to maintain a balance between Iraq and Iran and Maliki is still that spokesperson.

3. Question - Why would anybody be consulting with Maliki? He is no longer part of the government and he is the reason that ISIS is in Iraq anyway. Go figure.

Answer – Technically you are right in that Maliki is no longer part of the GOI, however he is still in the inner workings of the government and has much influence. He still heads the Dowa party, part of the National Alliance, the largest political movement in Iraq. Remember Ayad Allawi too is a Shiite (a non-Iranian Shiite) and heads the National Alliance. So we got a mix of good guys and bad guys.

They are not really consulting with Maliki as using him as the go between with Iran. Remember as I said in my answer to the previous question that they still need Maliki to maintain a balance between Iraq and Iran. They have many files on the corruption and humanitarian right violations with Maliki. The UN sustainability goals for the middle east will not tolerate men like this and what they do. However for now he is remaining. I said for now unless a radical protestor should happen to place bomb under his car, poison his food, or put a red dot on his forehead. This is not far from the future fate of this man if he continues to be an obstacle to the reforms. Eventually it will catch up to him and we will not have to wait for the judicial reforms. Soon they will no longer need Maliki anymore since relations with Iran and the global community are improving. We are already seeing cartoons of him in jail or being lynched. It is my opinion this is the way he will die and we will soon get rid of Maliki.

Question - So, many obstacles not sure this will be the year we see any major changes. Forgive, my negative attitude....I'm usually much more positive but if it smells like a fish and looks like a fish, then it's a

Answer- I forgive you entirely for your negativity! It is very easy to be negative in the midst of this process.

But remember a couple thoughts – First if you bring the negative attitude to the forums it is disruptive and you are hurtful and vengeful even if that is not your intent. Do you want to hurt anyone? In the midst of chaos let’s instead bring order, peace and love. So instead do some research on your own and if you then truly believe it may take another year to see an RV then state your case with facts. This is all we can ask. This is what the forums should truly be about. I am sure everyone would agree this is more constructive venting and we can all prosper from it rather than despair.

Secondly there is no one playing a game here. This is a huge investment for us all with huge returns and for these returns this the process we must endure. Who said it was going to be a picnic? We don’t like it and we all wish it would go more smoothly but if you thought you were going to buy the Iraqi dinar and get rich overnight you are the crazy one. If this is what you were told then it was your choice to listen to these so called intel “gurus” or research on your own to find the truth. You are a big boy (or girl) and so we must take responsibility for our own thoughts and actions.

Thirdly - The main purpose of my intel has always been to bring some clarity and truth to the insane intel garbage that was and still is being passed around. I am glad you are finally reading my news letters as thousands finally realized they had to get off the daily roller coaster. Someone has to shut it down. I find many of these so called intel ”gurus” have listened and have realized too just how wrong they were in the past. The information has gotten better but it was a hard lesson many still don’t want to admit they were wrong.

After all - isn’t 5 years of bank screens, inner bank memos, large sums of money being transferred, every day/ any day etc. etc enough and still no RV enough? How long must you bang your head against the wall before you realize you are hurting your own head? So much of the confusion and frustration you are now experiencing has come from this past info too from these so called intel “gurus”. I have warned everyone to stay away from it but I can see many still want to listen and believe in it and need the hype. So if you are one of these people then you must suffer your own frustrations. Do it in the privacy of your own little bubble and fantasy at home and please don’t then bring it to the forums!

NO Hype, NO Rumors, just the FACTS.

Today’s News

Today is Wednesday April 20th 2016. YES- and still no RV. Sorry all you Charlies !

In the midst of all the confusion let us look at a ray of sunshine today.

First – remember that Iraq has never gone this deep in demanding the needed reforms by the average Iraqi citizen since the 2013 riots. Look at the change that happened then. Maliki was refused a third term.

So now we see yet more pressure and going even deeper to demand yet more reforms at all levels once Maliki lost most of his power base. Remember his power base went way beyond being prime minister

The good part of the story now in Iraq is the people are awakening from their slumber. They now realize they have the power and tide is changing quickly for those who don’t want to go along with change. This is very important. They now realize they must pick leaders who have the same objectives as themselves, that of prosperity, freedom and abundance. They now realize the great wealth of their nation is being squandered by these greedy politicians. They now realize who is their friend and who is their enemy. More change is coming and this change is all in our favor moving towards the RV but most importantly (beyond our greed) is the betterment of the Iraqi people. Once again I will tell you the RV is the end result not the cure all.

Secondly - I have said this before and I am saying it again. I believe that this current mess with parliament is a last desperate attempt by the Iranian influenced Maliki and his goons to sabotage the reform efforts of Abadi. Maliki is now taking this opportunity to derail the new cabinet members because he knows that, once an honest and capable cabinet replaces the existing corrupt cabinet, he loses the remaining of his influence in the GOI. Of course one must believe that all these reforms would be met with strong resistance and so we are now seeing it. I also believe the end result, once the dust finally settles, is the demise of the State of Law coalition and the Dowa party. This too is all good.

It is unfortunate we must go through this process and we know it delays everything else down the road but I assure you it will all end soon. Remember the glass can be half empty or it can be half full. It all depends on how you look at it.

Update: 45 Day Deadline for Technocratic Gov’t

Once again let me review the ongoing saga of this process.

So what is the current status of the situation?

Let us get a pulse of Iraq by just looking at some of the recent headlines.

-Iraq in political limbo after stalled reform attempts

-Abadi rushing parliamentary session to contain the anger in the streets

-Jubouri: we will not accept the will of parliament by force, kidnapping, noise and shouting

-The middle east confirms Maliki parking behind the recent events in the Iraqi parliament - report

-Parliament sessions suspended ... until further notice

-Urgent presidency poses a roadmap to resolve the crisis , parliament calls for an extraordinary session

Article Begins


BAGHDAD (AP) — Failed attempts to oust the speaker of parliament and a fresh ultimatum from an influential Shiite cleric have left Iraq in a state of political limbo. Backroom negotiations continued late into the night Saturday between Iraq's powerful political blocs after lawmakers attempting to oust speaker Selim al-Jabouri failed to maintain quorum.

A simmering political crisis in Baghdad escalated this week when parliament failed to approve a new Cabinet lineup presented by Prime Minister Haider al-Abadi. The shakeup was just the most recent effort by al-Abadi to salvage promises of reform first made last August in the form of austerity measures that he claimed would also help combat corruption.

Following the Cabinet vote delay, parliamentarians staged a sit-in Wednesday demanding the country's top political leadership step down, including the speaker andprime minister. The protest quickly descended into a brawl with the country's elected leadership throwing punches and water bottles. Eventually the scuffles subsided and no one was seriously hurt.

Hours after the failed vote in parliament Saturday, Shiite cleric Moqtada al-Sadr issued a handwritten statement giving parliament 72 hours to vote in a new Cabinet.

"If these conditions are not met then let it be known that the people will decide," al-Sadr wrote. Al-Sadr credits his ability to mobilize thousands across Baghdad and the country's Shiite south to stage protests and a sit-in in Baghdad with pressuring al-Abadi to move forward with the initial Cabinet reshuffle earlier this month.

However, many Iraqis blame the lawmakers themselves for squandering billions in oil money, leaving the country with crumbling infrastructure and abysmal services more than 10 years after the U.S.-led invasion and the lifting of international sanctions.

Sunni lawmaker Mishan al-Jabouri, who has assumed a lead role in the anti-corruption protest within parliament, was himself convicted of embezzling millions of dollars in 2007. Al-Jabouri evaded his prison sentence of 15 years by fleeing to Syria and was only allowed to return to Iraq in 2012 after being issued an amnesty decree under then-Prime Minister Nouri al-Maliki.

This year Iraq was ranked one of the 10 most corrupt countries in the world, according to Transparency International, an international monitoring group.

"The word reform has just become a sort of instrument for each side of the political class to blame the government and the prime minister," said Maria Fantappie, the International Crisis Group's senior Iraq analyst, explaining that Iraqi leaders are standing under the banner of reform merely as an attempt to hold on to personal and party power.

Al-Abadi was only forced to submit a new Cabinet lineup after his initial nominees were met with instant opposition from Iraq's political blocs, which rely on patronage systems to remain in power. Several of the Cabinet nominees subsequently withdrew from the list claiming they didn't desire the posts.

"Everyone is appealing to reform, but not in a legitimate way," Frantappie said. (as long as it does not impact themselves personally)

The United Nations on Friday called on Iraqi leaders to resolve the political crisis, warning that instability could jeopardize the fight against the Islamic State group, which still controls much of northern and western Iraq.

"The only party that benefits from the political divisions and chaos .... is Daesh," said the UN's acting head of mission to Iraq, Gyorgy Busztin, using the Arabic acronym for IS.

The costs of the war against IS, along with the plunge in the price of oil — which accounts for 95 percent of Iraq's revenues — have caused an economic crisis, adding fresh urgency to calls for reform. Iraqi officials predict a budget deficit of more than $30 billion this year.

Article Ends

I like this next article because it sums up just what the problems are all about in the current crisis with parliament.

I quote from the article below – “The crisis intensified after he sacked a number of deputies Parliament Speaker Salim al-Jubouri, after hearing his comment was in session Tuesday to vote on a government list of 14 candidates presented by Abadi, after negotiation with the heads of political blocs.

The move led to a freeze on the work of the House of Representatives and a sharp division between the political blocs between supporters of the dismissal of her shows.

Abadi said in a statement: “I look forward to the House of Representatives to be able to carry out the legislative and supervisory role to the fullest and to vote on cabinet reshuffle in the coming days and as soon as possible.”

See article below.

Article Begins


BAGHDAD – Iraqi Prime Minister Haider al-Abadi Monday the political blocs in parliament to hold a hearing, hoping to vote on the new cabinet lineup submitted to the House of Representatives in the coming days.

Iraq has been several weeks since the differences are caused by a political crisis on a range Abadi seeks to be independent of technocrats and academics, rather than ministers linked to parties.

The selection excludes new interior and defense portfolios to be around them to be agreed at a later date, according to parliamentary sources.

The crisis intensified after he sacked a number of deputies Parliament Speaker Salim al-Jubouri, after hearing his comment was in session Tuesday to vote on a government list of 14 candidates presented by Abadi, after negotiation with the heads of political blocs.

The move led to a freeze on the work of the House of Representatives and a sharp division between the political blocs between supporters of the dismissal of her shows.

Abadi said in a statement: “I look forward to the House of Representatives to be able to carry out the legislative and supervisory role to the fullest and to vote on cabinet reshuffle in the coming days and as soon as possible.”

Abadi gave a list of the new line-up, but the leaders of political blocs rejected it and made another collaboration with the President of the Parliament of the names of the parties belonging to the dominant power, prompting a wave of anger figures.

The prime minister said “I call on the Council of Representatives to convene immediately to overcome the obstacles and to contribute to developing solutions to the challenges facing the country.”

Abadi faces fierce opposition from major political blocs that adhere to their candidates and some have an armed factions.

It includes Abadi plan announced in February and backed Sadrists reforms through the introduction of academic figures and technocrats to the government.

But the major political blocs that dominate power and share the important positions hinder it.
And he succeeded the leader of Sadr influential cleric Moqtada al-Sadr in moving on the street again after the parliament failed to vote on the new cabinet line-up presented by al-Abadi.

Experiencing the Iraqi capital Baghdad and several provinces protests and rallies demanding the departure of the Government of Abadi and denouncing sectarian quota system and corruption.

She returned the tents of protesters to show up again in many private ones Baghdad in what reflects the pressures faced by Prime Minister Haider al-Abadi, who is now his reforms and political future at stake in the light of the growing influence of political parties and personalities outs to those reforms that are believed to threaten the interests of the Iraqi arenas.

Article Ends

Article Begins


Oan- Baghdad

Parliament Speaker Salim al – Jubouri, said Tuesday, ” We will not accept the will of parliament by force , kidnapping, noise and shouting.”

A statement by the Office of the President of the Parliament received by all of Iraq a copy of it, that “al – Jubouri , visited the Kurdistan Alliance bloc ‘s headquarters in the House of Representatives, explained that today saw the preparation and orientation great to express respect for the will of the Council in going to him and decided, stressing at the same time do not let the abduction of the will of the House of Representatives by a group which wants to impose its will and power of noise and shouting and force away from natural contexts. ”

Jubouri said that ” the conflict in the parliament turned into a struggle to impose the will of a money will not accept it, “pointing out that” this matter cause to disrupt the work of the Council in order to find a consensus and understandings and national out of the crisis. ”

The eighth president of the parliament , ” the positions of some parliamentary blocs in the institutional building of the House of Representatives to support and move within the legal and constitutional parameters “.

Article Ends

Article Begins


Wrote: April 18, 2016

The Middle East has confirmed a newspaper, in a report published by the former prime minister is the one who drives the protestors lines of Representatives House of Representatives of Iraq, in order to hit the Iraqi heads the current Minister Haider al-Abadi in order to return to power again.

Article Ends

Article Begins


Iraq speaker suspends parliament 'until further notice

AFP | Baghdad
April 19, 2016

Embattled Iraqi parliament speaker Salim al-Juburi said today parliament sessions would be suspended "until further notice" after a week of turmoil during which lawmakers brawled and sought to sack him.

Some MPs voted last week to remove Juburi and elected Adnan al-Janabi as his interim replacement, meaning there are now two claimants to the speakership.

Jubouri insists the vote to sack him and his deputies was invalid because the session lacked the necessary quorum, but his opponents are seeking to move ahead with selecting replacements.

"I announce the suspension of sessions... Of the Iraqi parliament until further notice," Juburi said in a statement.

But Janabi has called for a session to be held on Thursday, so MPs may still meet without Juburi's leadership.

Juburi's decision was taken to "preserve the reputation of parliament" and prevent it from being "a place for conflict", he said.

There has been plenty of conflict in parliament over the past week: lawmakers held an overnight sit-in and threw punches in the chamber, as well as seeking to sack Juburi.

The turmoil began with disagreement over two proposed cabinet line-ups presented by Prime Minister Haider al-Abadi, but shifted to calls for Jubouri to go.

Abadi has sought to replace the cabinet of party-affiliated ministers with a government of technocrats, but has faced significant opposition from powerful political parties that rely on control of ministries for patronage and funds.

Both the United States and the United Nations have warned that the political crisis could distract from efforts to combat the Islamic State (IS) jihadist group, which overran large areas of Iraq in 2014.

Article Ends

Article Begins


19.04.2016 10:12
{Baghdad} Euphrates News Presidency issued a roadmap to resolve the Presidency of the Council is composed of seven points of Representatives crisis, including the convening of session of parliament to discuss the crisis.

According to a presidential statement , the agency {Euphrates News} received a copy of it on " The map included" in the first paragraph on the basis of the provisions of Article 58, paragraph I of the Constitution and the provisions of Article 28 of the Rules of Procedure of the House of Representatives calls on President of the Republic {House} to hold a special meeting to sack the President ordered by the House of Representatives.

The comprehensive meeting taking place in the presence of all the blocks in the House of Representatives based on the provisions of paragraph first of Article 11 of the rules of Procedure of presiding over one of the members of the House of Representatives, noting that " pursuant to the provisions of Article 60 of the rules of Procedure of the Council of the members of the Presidium of the House of Representatives among the council members and lends itself to Saleem al - Jubouri deliver a speech to show the face of view what happened and how to overcome the current crisis.

It is ordered the sacking of the board presidency of the Council and those who wish it according to the rules of procedure apply for site according to the law and is displayed to the vote according to the rules of procedure. 

and that in the event of the insistence of the Council on impeachment is elected a new board of the presidency of the Council.

The statement concluded that " the last point of the map stipulates that "in case of non - approval of the impeachment continue the current presidency of the board to exercise of tasks according to the rules of procedure ".

Article Ends

Update: Economy of Iraq

Article Begins


BAGHDAD / JD / .. demanded that Iraq from Switzerland to transfer frozen his assets to the Development Fund for Iraq, while stressing the importance of the signing of memorandums of understanding between the two countries in many areas.

According to a Foreign Ministry statement received / JD / copy of it: Foreign Minister Ibrahim al-Jaafari received the Swiss Secretary of State for Foreign Affairs, Yves Rossier and his accompanying delegation in his office in Baghdad, and discussed with him bilateral relations and open up more prospects of joint cooperation between the two countries, the two sides touched upon talk about the great sacrifices offered by Iraq in the war against terrorist Daash gangs.

Jaafari and eighth positions of Switzerland and its support for Iraq in many areas, pointing out that Iraq is looking to establish better relations with various countries of the world to activate common interests and face common dangers serve all peoples.

He said that Iraq faces Daash terrorists who came from more than 100 countries, and is still in need of humanitarian aid, especially as it passes exceptional circumstances The economic challenge, and lower oil prices, the cost of the war against terrorism.

And he demanded transfer of Iraqi funds frozen in Swiss banks to the Development Fund for Iraq, and continue to support Iraq, and its support in various fields.

Jaafari called for coordination with one of the embassies of Europe in Iraq to facilitate the granting of entry attributes (Visa) for Iraqis wishing to visit Switzerland, stressing the importance of the signing of memorandums of understanding between the two countries in many areas, the most important industry, trade, and transportation, as well as to urge the Swiss companies investment in Iraq.

For his part, Minister of State for Foreign Affairs, the Swiss continued his country's support for Iraq, noting that he will discuss providing more humanitarian assistance to the displaced families with Iraqi officials.

Article Ends

So what do you think the USA will want in return for its guarantee of these loans?

Article Begins


Twilight News / announced that the Iraqi Ministry of Finance on Tuesday that the US has indicated its willingness to contribute to provide guarantees for loans from the World Bank Iraq.

According to a statement issued by the ministry today responded to Twilight News, Finance Minister Hoshyar Zebari met with his entourage with Jacob if the Secretary of the Treasury and a number of experts in the US Treasury Department in Washington, adding that he was at the meeting to emphasize the cooperation between the two countries especially in the field of finance and economy relations.

The statement said US Treasury Secretary affirmed the continued support provided by the United States to Iraq directly in the framework of the international financial institutions, particularly with regard to reaching an agreement between Iraq and the International Monetary Fund on the standby credit arrangements.

The statement continued that the Treasury Secretary also stressed his country’s readiness to contribute to the loan guarantees, and mobilize support for the demands of Iraq during the next meeting of finance ministers from the Group of Seven, as well as at the summit meeting of the group which will be held during the last week of next May.

The statement pointed out that the other side has been to emphasize the need for cooperation between the two sides in the fight against corruption and money laundering, particularly with respect to drain Daash terrorist entity and prevent the arrival of the money to him resources.

The statement continued that the US Treasury Secretary said the support of the Iraqi economy and the fight against terrorism Kirkizin foundations for the stability of the country.

The statement concluded that it was also reviewing the delegation talks with senior International Monetary Fund and World Bank officials.

Article Ends

Update: Currency Reform

I included a recent article talking about the history of the Iraqi currency and the “project to delete the zeros”.

From this article we learn that they plan to delete the zeros by the year 2017. We learn about the obstacles now facing Iraq as to why they have not already completed the project. We also learn that the gap between the official exchange rate (dinars to the dollar) and the price of the parallel market reached 18% and this was unacceptable. The CBI managed in the recent years to reduce this gap to 6% and now they are telling us that possibily an acceptable level is around 7%.

This is interesting because, if you remember, last January I included a MOU between the IMF and Iraq on what they called the “MCP” (multiple currency practices). At this time the IMF wanted a gap no more than 2%. In fact I included an entire news letter mostly to this subject back in January too.

So this recent article is talking too about finally getting the MCP gap down however they now are realizing due to the security, political and economic challenges facing the countrythis 6% may be an acceptable gap and they are maintaining below the new standard of 7%.

At least we are seeing articles on this topic to delete the zeros and they have not given up on it. This is all good for us because this is where our money is going to come from as investors in the currency.

Please read article below. I tried to underscore and highlight the important parts for you.

Article Begins


In the fifteenth of October / October 2003, the Iraqi dinar was born again in the true sense of the word. On that day, banks and banking started distributing the new currency and withdrawing dinars Saddam Hussein from circulation, especially that she was in a sorry state.

Not only it is limited to the replacement of the currency, but also extended to the adoption of a new monetary policy based on the principle of the independence of the central bank as a basis for any sustainable development, a qualitatively new and rare twist on the level of the Arab region , where monetary policy is usually a government.

Despite security and political conditions extremely complex central bank succeeded in subsequent years to achieve great achievements, most notably raising the value of the dinar against the dollar almost doubled and maintain the stability of Sarabv and the accumulation of large reserves of currencies Alognih reached in 2014 about $ 77 billion, up from $ virtually zero . This contributed to restore the confidence of citizens in the national currency.

However , the Iraqi dinar was soon faced economic and political storms it has lost a large part of its luster. Exchange rate between flexibility and consistency of what happened in mid - 2014 , it did not enter the country only in a severe financial crisis, but monetary policy also put in front of a difficult test, the collapse of oil prices mean record deficits large in the state budget, this is in addition to the increasing burden on the balance of trade and balance of payments.

Developments like a depletion of foreign currency, one of the most important pillars of the stability of the national currency reserves. Although Iraq 's success in raising oil production at high rates and reliance government in the hope of price recovery, but the reality is clearly says that the country is facing a structural imbalance will not go away soon.

Even assuming the success of the government - Abadi in the application package declared in the fight against corruption and the rationalization of expenditure, the bypass this imbalance will not be achieved without taking other radical reforms, including a review of where and exchange rate policy and give them greater flexibility. It is true that the diversification of sources of national income and the elimination of the phenomenon of the state sponsor overcome this imbalance, but this is a long - term goal is not incompatible with the use of instruments of monetary policy. The CBI has observed in mid - 2014 , increasing pressure on the dinar by the widening gap between the official exchange rate of the time (1.116 dinars to the dollar) and the price of the parallel market (1.397) to reach 18%, which opens the door to speculation in the currency.

Against the backdrop of these concerns the central bank announced at the end of last year , reducing the value of the dinar against the dollar by about 6% in the first step of its kind since the spring of 2003. Instead of 1.116 dinars Bank has recently started selling the dollar to 1.182 the same time raising the price of buying the dollar to 1.180 Dinara.

The bank hopes behind the reduction of the official exchange rate of the currency (or lift the dollar exchange rate) to reduce the demand for foreign currency on imported goods and the reduction of the decline of the dinar in the parallel market. Indeed ,the gap between the two rates has recently dropped to 7%, the ratio seems acceptable.

Another effect is just as important to reduce the dinar exchange rate and is to get the Ministry of Finance on higher revenues. For every dollar of oil exports sold to the Central Bank will get the most dinars. The important question now is: Will this reduction is sufficient to overcome the suffocating crisis? It is clear that this measure is not enough, given that the structural imbalance requiring the Central Bank to adopt greater flexibility commensurate with the new circumstances surrounding the ethnic economy and to take further steps to reduce the value of national currency. And here it must be taken into consideration that the demand for the dollar witnessed a significant increase, not only for the financing of imported goods and investment projects, but also due to other factors that are considered fairly new, including personal remittances abroad.

Tens of thousands of Iraqis abroad retirees and others livelihoods depend on the funds that prevent them from Iraq. Iraqis also discovered again fun to travel abroad which means extra demand for foreign currency. All of these factors lead inevitably to the withdrawal of foreign reserves and declining balance, and this is what is already happening. Nor can the central bank in such circumstances the adoption of the principle of "Spend what comes to you in the pocket of the unseen!". Betting on the return of oil prices to normal is risky. And it may not be, of course, as some have sometimes suggested, thinking back to the state monopoly of foreign currency because it is the policy of outdated and represents one of the core aspects of the totalitarian state.

Hence can not be the central bank sufficiency administrative procedures to better monitor the currency auction and the fight against money laundering and others, but that the actual developments of the Iraqi economy imposed by taking other steps thought to reduce the dinar exchange rate in order to reduce the demand for hard currency. In addition to the positive effects of such a decision on the balance of payments and the state budget, it can also contribute to improving the competitiveness of local goods versus imported, while acknowledging that this effect will remain limited due to the weakness of the flexibility of domestic production towards the exchange rate policy.

However , the central bank does not still swearing by embarking on a further reduction in the exchange rate because of the political and social fallout expected such a decision. Any reduction in the exchange rate of the local currency would lead automatically to raise the price of imported goods, which covers the bulk of the domestic demand , which could trigger social protests. Of course, there is a populist political forces lie in wait, surely they will exploit any popular resentment potential as acard in its power struggle without any regard for the fate of the Iraqi economy.

Here it must be said that the lack of a unified political will is considered one of the key obstacles to the implementation of the necessary economic reforms.

A fact known to the central bank also during the controversy sparked by his project to delete several zeros from the Iraqi dinar. Struggle for "zeros" when calculating the value of the dinar against the dollar is currently number appears difficult to understand because it includes a number of zeroes after the comma. This decline is due to the extraordinary collapse in the value of national currency in the era of the tyrant Saddam Hussein. It is seen on the Iraqi state budget needs to be high abilities in mathematics and arithmetic in order to understand the millions and billions and trillions astronomical numbers it contains.

Even the authors of the budget in the wrong unit of measurement is sometimes confuse billion and a trillion. This situation is not uncommon , and also affect the cash trading efficiency and increases costs, as is often forced ordinary citizens to carry their money in large bags, let alone traders.

In such circumstances , it is natural (that embarked upon by many countries suffered from hyperinflation) be replaced with new ones currency more valuable. This is what the leadership of the central bank thought the era of former CBI president Shabibi, when preparing for the high professionalism of the project to delete the three zeroes, with an eye to raising the value of the dinar to become nearly one dollar. A move that would facilitate cash trading and financial accounts process and strengthen confidence in the national currency. It is also not a purely technical step loser nor winner and the only beneficiary is the Iraqi economy.

But the project quickly inset in the corridors of political and sectarian conflicts and raised about controversial phenomenon careful interest of the country and inwardly settle personal scores, especially since this period saw the aggravation of the dispute between the central bank and the executive as part of an effort for me arms crowned fabricated the charge of corruption of the leadership of the former Central Bank and the overthrow by way damaged the reputation of Iraq.

Following the appointment of a new leadership of the bank put the current governor and the agency on the Keywords project again pledged to implement it at the beginning of 2017, but there on the ground for what promises this, leadership of the central bank is well know that they are going in a minefield.

After trimming toenails former leadership seems that the bank became finds it difficult to maintain the independence and turned to self - defense and the site is obliged to justify any move offers them. This also reflects the currency during put 50 thousand dinars a class late last year. This step is very normal also raised a "political" debate and "economically" dominated by exaggeration and hype and shuffle the cards. In the midst of this controversy it seems that some people have forgotten that the new paper does not exceed the value of only $ 40, so the contribution to solving the problems of monetary circulation in Iraq remains limited.


But this goal will not be fully achieved without the development of the banking system and reduce the cash payment operations for the benefit of bank transfers and other forms of payment credit. But that requires a first - class citizen persuasion advantages of the banking system, an issue that seems difficult because of the security, political and economic challenges facing the country.

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Update: Fighting ISIS

Article Begins


Balances News
04/17/2016 17:49 pm (Baghdad time)

Security sources reported that the leaders of al-Daash fled the Iraqi city of Mosul into Syria, with large amounts of money and property.

The sources pointed out that "the so-called Sheikh Osama, the chief of operations in the organization Daash near Mosul Dam, has fled to Syria with a large amount of money."

It was also pointed out that "the commercial director of the office of Daash known as Abu Hazim is the other had fled from Mosul with a large amount of cash and others like Abu Omar did and Abu Hajar two Kiedian prominent in the organization also had fled from Mosul and possession of big money."

In a related development, it is early in the month of March, a senior lawmaker Ahmed al-Jubouri revealed station FNA that the terrorists Daash were fleeing from the city of Mosul to the Syrian border, while joint operations to Iraqi forces in the provinces of Anbar, Salahuddin began to prepare to attack Mosul.

(Today, Iraqi aviation dropped thousand of leaflets over Mosul)

Article Ends

Most importantly please, please, please let’s not forget to keep praying for the success of THESE IRAQI AND COALITION SOLDIERS. I believe our prayers are in part some of the acceleration of the process we are now witnessing. Even though we may not hear much news about the fighting, I can assure you it is still ongoing and not yet resolved. Mosul is not yet fully cleared of ISIS.

Remember too to pray to the princess of peace – Our Blessed Virgin Mary. She has the ear of Christ and she can intercede in heaven and bring us the peace we all desire here on earth. We can not do it alone. I believe that if we all make this our daily prayer you will see change. It is already working even in the short time since I have been publishing this prayer section. It does not matter what religion you believe, if you pray then to your oven beliefs entity it is still the same powers and good for all of mankind. Ultimately it is all the same God anyhow.

“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 in the battle for Mosul! 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!

We pray for the swift reconstruction efforts of the bombed out areas once held by the enemy and that peace may prevail in Iraq;

We pray for the speedy process of all reforms against gov’t lead corruption and that all those responsible in the past are brought to justice;

We pray for currency reform, the full implementation of the Iraqi economy to full international status and the bringing of prosperity and wealth to its people“ Amen!

Till next time…. Auf Wiedersehen!

Peace and Luv To Ya All,
Mnt Goat

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