Friday, 26 April, 2013 12:20
[BondLady] I have another blast from the past for both Scooter and Shredd to look at it and comment about how it works in with the current news going on
Our aim is to establish a forward market in Iraqi dinars in the near future,’ say finance officials Iraq plans to establish an interbank foreign exchange market and dinar forward market and to step up its treasury bill activity in 2010 to help plug continuing budget deficits and foster treasury and foreign exchange markets, the Central Bank and Finance Ministry said in a submission to the IMF.
Iraq aims to develop foreign exchange markets outside the framework of dollar auctions currently conducted by the Central Bank, a letter of intent submitted to the IMF for a US$3.6 billion standby arrangement said. Iraq said it would not return to a budget surplus until 2012.
“As our financing needs in 2010 will still be substantial, we will step up our efforts to mobilize domestic financing through the Treasury bill market,” Iraq’s Central Bank head and finance minister wrote.
“To that end, we will conduct regular auctions, and refrain from cancellations, while allowing interest rates to be determined by the market. This will have additional benefits by determining a benchmark interest rate, while the development of a secondary market for treasury bills will allow banks to improve their liquidity management.”
“They are going to shift to building a local market, they have ample cash, loan-deposit ratios are very low and they will benefit from oil,”Turker Hamzaoglu, emerging market economist at BoA-Merrill Lynch, told Reuters
They have to develop a domestic bond market but it’s still baby steps, it’s still too early, it’s not even a frontier market,” he said, adding that Gulf Arab and Lebanese investors could be interested in Iraqi domestic paper.
Central Bank Governor Sinan al-Shibibi and Finance Minister Bayan Jabor said in the letter to the IMF that the country planned to introduce a sales tax, as a precursor to a Value Added Tax, “in the coming years”. Iraq’s gross domestic product expanded by 4% in 2009 compared with almost 10% the year before, their submission reported. GDP growth would rise to almost 7% this year and 7.5%-8% in 2011 and 2012, they said.
That improvement would be rooted in an increase in Iraqi oil output to 3.1 million barrels per day by 2012, from around 2.5 million bpd now, and exports of 2.5 million bpd, compared to just over 2 million bpd now.
That outlook might be conservative following the signing of 10 multibillion-dollar deals with global oil firms to develop Iraq’s vast reserves. If all the deals work out, Iraqi oil capacity could soar to 12 million bpd in six to seven years. “The CBI will continue to be independent in the pursuit of its policy objectives.
The CBI’s monetary and exchange rate policies will continue to be aimed at keeping inflation under control and safeguarding international reserves,” the submission said The banking sector is in urgent need of reform to foster financial intermediation and enable banks to contribute to the development of a strong private sector.
With the help of the World Bank and other international agencies, Iraq has developed a banking sector reform strategy, it added.
[BondLady] Iraq is committed to strengthening the management of international reserves by moving ahead with the implementation of new reserves management guidelines that were adopted in early August 2008. Iraq will follow the guidelines to diversify currency composition and establish appropriate duration and credit risk, build capacity for risk analysis, and work towards establishing a dealing room”.
The IMF submission said Iraq’s Central Bank planned to create a foreign exchange market outside the framework of regular dollar auctions now conducted by the bank. The bank uses the auctions to set the exchange rate, which has been held at 1,170 dinars per dollar for many months.
“To improve the functioning of foreign exchange auctions, we plan to develop organized exchange markets outside the central bank, including an interbank foreign exchange market,” it said. “Our aim is to establish a forward market in Iraqi dinars in the near future.”
BondLady] comments? You both covered a lot of this already as to their progress, I just wanted to show shabbibi said these things we see happening now 2-3 and 5 years ago
[Shredd] controlling inflation/managing exchange purpose of the auctions
[Scoooter] What will be interesting is to see what happens when they hit the OPEC limit of 4 mbpd
[lightingcslt] Scoooter I beleive they there already
[Scoooter] That will be interesting because of Saudi influence and Iran
[BondLady] They are right on the point for that too scooter
[BondLady] 3.9+ yes
[Scoooter] I just say something that said 3.8 hmm sorry
[BondLady] actually OPEC has given them an increase to export
[Shredd] yes they will be close by end of year
[Scoooter] really hmmmm-- that I didn't know -- I wonder where that oil will be refined ?
[BondLady] they are in process of building there own refineries as well, huge ones, also they are piping it to near by countries to refine as well
[BondLady] I'id like to move the topic to the remove the 000 from the dinar please and I have 2 last things per that and then ms timmy will setttle the guru arguement about Presidentual Executive Order 13303
[BondLady] Central Bank plans to raise zeros from the Iraqi currency 2010-02-07 15:06 Economic - of the Iraqi Central Bank plans these days on the implementation of the strategy to delete the zeros of the Iraqi currency and small face value and keep the cash value and purchasing power without causing any economic Atrapat may occur over this strategy.
The Economic Adviser in the Central Bank of the appearance of Mohammed Saleh in a statement that the current year will witness the launch of this strategy, the Bank completed 50% of the preparations that are working on since 2005 .. Saleh pointed out that the strategy based on the principle of gradual substitution of the Iraqi currency with another is lower than in the nominal value, and pointed out that the positives of this strategy is that it will be less expensive and easier to trade.
[BondLady] note the date....2/7/10
[BondLady] They were ready 3 years ago but the people freaked so shabibi said I'll delay it until next year 2011 and again the people freaked ,scared of failure and Iraq has one shot to get this right !
The future of Iraq depends on that so I've noticed with Iraq everything with them takes 2 years! Unless they freak then they delay which is what they have done since close to 2005
Central Bank: It is time to re-evaluate the currency, commensurate with the price changes and the wage in the economy 19 2011 15:58 GMT Tuesday, 19 2011 15:58 GMT ..
May not remain there is a need to act for this counter so quickly if applied to the central bank project by deleting three zeros from the Iraqi currency .. .
Bank, which sets monetary policy for the country confirms that it is time to re-evaluate the currency to suit the changes in the wage-price and economy.
appearance of Mohammed Saleh / adviser to the CBI: Iraq after five years on the verge of producing a large oil 6 million to 12 million barrels of Iraqi oil would be a regional power in the management of energy in the world and will be the proceeds of a large system and the current cash management system currency in this way is a product of phase lag like it or not needed reform the management of currency after five years claimed the block becomes large cash)
Shops, banking companies were not enthusiastic about the project, which says that its application may cause economic problems or technical unnecessary at the present time. Shop owner Banking (Mo is the time because if Mistqr country's economy and stabilize exchange rates, buying and selling of the dollar Menkdr use the lifting of the zeroes)
Shop owner Banking This thing we Menkdr TOGETHER we identify the issue depends on the application may show problems then the possibility of fractures disparity of individual things and things hobby art)
As for the citizens, the deletion of zeros memory bring them back to the days of the power of the Iraqi dinar which is welcomed by some, while others appeared unconvinced by the possibility of its application Citizen (God, Kalash Aoki suggested raising of the Iraqi economy and brings us back the dinar money days before the God who commissions Tasirlh value and purchasing power and the States they are)
Citizen (Is the same thing if the lifting of the zeroes is the dinar Maltna and even abroad Mahd originally received by)
Citizen (For the lifting of the zeroes FD Shi logical because the allowance Maiasir trillion words become even billions of people Fhm)
As for the economists Vitmonon The theme of the deletion of zeros will not make a difference in handling cash or in any way affect the Iraqi economy unless they take into account the changing value of exchange in relation to the dollar Ali gnathion NA / Economist:
( (This is an administrative process involving the central bank itself in the management of currency and the economy will remain only if the change rate of the Iraqi dinar for example, now is a dollar in 1180 JD permissible if Swoh means three whistle 118 or you will be 1.0 that Alukt if it has become one break zero dinar to the dollar means to improve the purchasing power of the dinar)
[BondLady] And show the Iraqi Central Bank reservation of criticism and reactions that have been raised about the project to delete the zeros from the currency, noting that his project is based on a thorough study to serve the Iraqi economy will be the case ended, the Council of Ministers and House of Representatives.
[Scoooter] yea -- that's the hybrid type of model that would work introduce the new while market forces drive the value up because it will take them time to get and retrieve the larger notes they suck in all the big notes use them for interbanking facilities and transactions then send the smaller notes out to the populace
[BondLady] taking note that this article is 2 years old March
[Scoooter] and it will be inevitable the value will be driven forward . yep -- I agree with what their saying there it makes complete sense
[BondLady] they also just today posted a article about destroying the 000 notes as they bring them in as well
[Scoooter] there will be a lot of "soiling of notes" taking place, they will burn a lot of those notes and replace the liability with electronic funds
[BondLady] lastly for me is the DFI fund set to expire from what transpired in 2011 per the DFI and debt owed and creditors and law suits. Here we are again 2 years later and its set to expire again on May 22, 2013
[BondLady] this is a heads up basically, a look through the past to see what to expect here shortly and whats been done to date
Central Bank: Iraq Will Use the IMF to End the File of Commercial Debt 06/04/2011 11:48 Baghdad, April 6 (Rn) – The Central Bank of Iraq adviser said Wednesday that Iraq will use the IMF to end the file of commercial debt after the end of the Trusteeship internationalism on Iraqi funds in June next year.
He said the appearance of Mohammed Saleh told the Kurdish news agency (Kaniwz) that “the Central Bank of Iraq will use the advice and the opinion of the International Monetary Fund and World Bank to end the file of commercial debt which is supposed to be resolved by Iraq through a clear plan.”
He continued that “the Committee set up by Iraq to develop a legal study to prevent any danger to his money, and established a mechanism for coordination between them and the International Monetary Fund to prevent any violation of these funds and in accordance with the Paris Club agreement
[BondLady] The Paris Club is an informal group of financiers from 19 countries of the world’s richest countries, notably the United States, Britain, Australia, Italy, Japan, the Netherlands, Germany, Ireland, provides service to cancel debt for debtor and creditor countries.
The IMF had identified the names of those States, after alternative solutions have failed, with the change of methods of payment of outstanding debt. Mohammed indicated that “Iraq will continue to grant debt to commercial companies and businessmen who claim they are asking Iraq according to international action in the payment.”
On 6 March last, the central bank that Iraq follow the high political level in the debt economy, it did not face legal problems, as announced on 23 February that Iraq paid the debt 3500 credit commercial value of $ 2.7 billion as a means to protect his money, foreign manipulation of the trading companies.
It is hoped that Iraq shall submit to the UN Security Council a detailed report in May next looks for the most important pillars of the protection of Iraqi funds.
[BondLady] Revealed the Iraqi Finance Ministry on the seventh of January last, the work of the Committee to Protect Iraqi funds abroad will be secret, to avoid the fictitious companies which Iraq claims it requests funds.
The Ministry of Finance of Iraq, the first of last January that “the Commission on technical government took over the development of mechanisms to protect Iraqi funds in foreign banks, after the UN Security Council resolution mid-November last, who spent lifting of protection for the money to Iraq the end of June next .
The UN Security Council voted unanimously in mid-January last three resolutions concerning the lifting of the embargo imposed on Iraq on the import of nuclear material for peaceful purposes, and cancel the oil for food program, also extended the immunity of and for the last phase compensation imposed under Chapter VII until the end of June / June.
The former Iraqi president Saddam Hussein ordered the invasion of Kuwait in 1990, and the impact of sanctions imposed on Iraq from the international community and put under Chapter VII, which makes it a country threatening world peace and security.
Included international sanctions prevented the import of chemicals, nuclear technology that could be used in a secret nuclear programs, chemical and biological weapons. Has allowed the United Nations in 1995 for Iraq to sell oil in return for food, called “oil-for lunch.” Allonan of Jafar, the Open: Wafaa Zangana
[BondLady] question.........does it affect us as investors one way or the other whether the DFI funds stay in protection mode with us or some other country or does it affect us if Iraq takes it back ? comments please
[Scoooter] the U.S. courts alone will open up a can of "whoop-axx" in the amount of $100 Billion if they aren't protected, this one is a tough one -- not sure how they are going to handle it
[Shredd] Scoooter what part?
[Scoooter] Well -- first the paris club doesn't include many of the middle eastern countries in fact their debt to their neighboring countries is almost equivalent to the paris club members now they've been paying that down considerably but the amount owed to other countries would be staggering if they don't protect those funds. jmo now I've been out of the loop of information for some time but I can't imagine the rules of engagement have changed that much
[BondLady] they don't want creditors and law suits coming out of the woodwork to slap holds on it for sure
[Scoooter] here's the other item to consider those funds were confiscated in 1990 at what rate were they confiscated at ?
[lightingcslt] 3.22 ?
[Shredd] Scoooter the Paris club in its design was brilliant and imo the consolidated plan for iraq's success contingent on their growth will fulfill its purpose
[Scoooter] some of them may have been
[Scoooter] Yep -- it consist of the credit worthy nations of the world and they forgave 80% of the debt but the neighboring countries pretty much said NO WAY! so they've been working on that debt -- nation by nation
[BondLady] it wasn't for lack of begging on Iraqs part
[Scoooter] and they've done a great job on that
[campdav] Confiscated rate please?
[Scoooter] it varied in price I saw some from england at 2.51, I saw Egypt at 3+ , I saw some derivatives at 3.22 but it's all over the map
[DogzNova] the IMF has the rate in 1990 SDR at April 30, 1990 2.46985
[Scoooter] Saddam really really screwed his people on this
[Scoooter] Thank you Nova! ok -- I need to run unfortunately but I wanted to thank everyone here very much ! I have missed my friends here at BondLady's Corner, it's an outstanding group of people
[DogzNova] Scoooter your welcome and thank you
[lightingcslt] no thank you Scooter
[tlm724] Scooter thank you very much !
[campdav] Scoots thanks Mate
[BondLady] thank you so much Scooter ! We really appreciate you coming by and chatting with us and hope to do it again really soon
[Scoooter] You are welcome
[BondLady] go timmy and thank you
[tlm724] Let me begin with a link to Executive Order 13303 for your viewing pleasure http://www.treasury.gov/ ··· 3303.pdf
As well as the link to President Obama's most current extension dated May 18, 2012 http://www.whitehouse.go/ ··· ion-iraq
[tlm724] I want me clarify one point about Presidential Orders: The president can amend or retract an executive at any time. The president may also issue an executive order superseding an existing one.
New incoming presidents may choose to retain the executive orders issued by their predecessors, replace them with new ones of their own, or revoke the old ones completely. In extreme cases, Congress may pass a law that alters an executive order, and they can be declared unconstitutional and vacated by the Supreme Court.
So let me set the stage here. In May 2003 , the U.N. Security Council unanimously adopted Resolution 1483, which ended sanctions and endorsed the creation of Development Fund for Iraq, to be controlled by Paul Bremer and overseen by a board of accountants, including U.N., World Bank and IMF representatives.
It endorsed the transfer of over $1 billion (of Iraqi oil money) from the Oil-for-Food program into the Development Fund.
[tlm724] EO 13303 was created May 22, 2003 to protect the DFI (Development Fund for Iraq) which consists of seized and "vested" Iraqi bank accounts and funds seized by coalition forces and proceeds from the sale of Iraqi oil and natural gas .
This EO basically protects this fund from any legal attachments and liens and also protects Iraqi oil products and interests . It also protects US corporations / persons from attachments as well. It basically provides an umbrella of protection against litigation and opened the door to investment in the country of Iraq for foreigners with this added assurance of protection and provides absolute legal protection for US interests in Iraqi oil etc..
I'll just use the United states as our example, it allows US companies to establish business's and invest in Iraq safely. Included in that is our right to invest also. That being said our investment took two steps forward without me really realizing it .
In September 2003 CPA (Coalition Provisional Authority) #39 was entered into force thus allowing us to continue to invest in Iraq via our currency purchases. Let me quote just one item from CPA 39:
[tlm724] 4) “Foreign investor” means (a) a business entity constituted or organized under the law of a country other than Iraq; (b) a natural person who is (i) a national of a country other than Iraq, (ii) a stateless person not residing permanently in Iraq, or (iii) a national of Iraq residing permanently outside of Iraq; or (c) a business entity constituted or organized by any of the above under the law of Iraq; that is making or has made an investment in Iraq.
http://www.iraqcoalition/ ··· ent_.pdf
[tlm724] See there, foreign investor and a national of a country other than Iraq, that's us . Then in 2006 Iraq passes the Investment Law Number 13 of 2006 and revokes CPA #39 in Article 34 The (dissolved) CPA Order No. 39 of 2003 shall be revoked. http://www.iraq-lg-law.org/en
[tlm724] IMO we are now covered under the Investment Law for the country of Iraq. And that is a win / win no matter how you look at it. There is no way Iraq will ever stop investment in their country and yes that includes us !
[BondLady] You bet it does
[tlm724] Is it of consequence to us as investors if the EO 13303 is not continued after May 22, 2013 ? IMO No, I do not think it will effect us at all. Does it matter to Iraq ? Well I would think so considering there is over $18 billion US dollars in the fund. Iraq must protect these funds whether its an extension from the US or through negotiations with countries/persons which have legitimate claims against Iraq .
[BondLady] love this part......These new banknotes led to a new industry**** of selling the new Iraqi dinar ******to oversea investors******** who*** hoped to profit**** from Iraq's new currency****** when the economy improved. ***********
The provisional government of Iraq has made this legal,**********(and so did our President Bush, when he signed the presidentual order allowing all american citizens to be able to invest in iraq..
But the banknotes are exchanged at different rates by companies wanting to make profit. This is taken from wikipedia ..history of the iraq dinar
[BondLady] link if anyone would like to read it in our archive http://www.bondladyscorner.com/t35319-historyiraq-dinar
[Shredd] yes, this is so great to discuss and at this time too
These new banknotes led to a new industry of selling the new Iraqi dinar to oversea investors who hoped to profit from Iraq's new currency when the economy improved. The provisional government of Iraq has made this legal
[BondLady] so they passed investment laws just so we could do this currency thing and the Presidentual Executive Order 13303 and the Iraq government through laws passed, made it where we're good to go whether they resind the order or not. It doesn't matter were covered under the investmnet laws. So hopefully that puts all that sillyness to rest, we are grandfathered in !
[tlm724] BondLady exactly !
[BondLady] let me show one last article from today
[BondLady] todays news Deputy: the need to control the formation of committees to destroy the old currency in the implementation of the project to delete the three zeroes 25-04-2013 12:27 PM Baghdad (news) .. Stressed member of the Economic Commission MP / National Alliance / Abdulabas Xiaa,
the importance of the formation of committees control of all state institutions to pursue the process of destroying the old currency in the implementation of the project to delete the three zeroes from the national currency.
said Xiaa (of the Agency news): The project to delete the three zeroes is one of the important projects and sensitive because it is linked to public money, process of implementation should be monitored and accurate to prevent fraud and manipulation and money laundering.
said: that the practical measures to destroy the old currency must be under the control of the House of Representatives and government institutions in the country and with the participation of the media through the formation of committees to monitor , to prevent tampering and theft by some quarters.
said: that the central bank gave a deadline of two years for the process of replacing the old currency currency deleted them zeros, to be handled together, that is the absorption of the old currency from the market so that it did not feel out of the citizen. http://www.ikhnews.com/index.php?page=article&id=82642
[Shredd] they been saying the replacement process is two years
[lightingcslt] Shredd yep there it is, thats how long you got to turn those puppys in. BondLady that art said it all imo
[BondLady] and they been saying they were going to do it for 3 years. It's time and we are seeing all this happen thats why I took you all down memory lane
[gaffi347] BondLady So they are a year late?
[BondLady] thev have talked about it since 2005 gaffi
[Shredd] this article may get overlooked but it is a big piece to the puzzle .Weknow they will destroy as they are brought in AND that it is a TWO YEAR PROCESS. What does that tell us? Well, what it tells us the what WON'T happen
[Shredd] right we won't be left hanging out to dry with worthless dinar, that will be useless
[BondLady] I just wanted you all to see it is time and the time is now and we're seeing it all happen ! Right Shredd and the new money has something like 33 security features.
Why go to those extremes if your going to have toilet paper for money, not happening. No other country on the planet has that much, most powerful currency coming thats why and we're part of it . 1166 with 33 security features ?
Our new $100 doesn't even come close to that much , no ones does
[Shredd] revalue, replace for two years, destroying as they go
[tlm724] BondLady I want to say thank you to the best leader and team ever ! It all comes down to the truth !
[BondLady] thank you hun as a team there's nothing we cannot do or any problem we can't solve
[Shredd] The bottom line, dear members is this…….we are in a “when” situation and not an “if”. The wealth is there, the growth is there and the investment is there. These will all continue to grow. For me, this project of deleting the zeros moving full steam ahead is very exciting.
Soon we will see proof of the lower denominations, soon we will discover more and more of the CBI’s monetary policy changes and soon we will see the dinar’s exchange rate change.
What is interesting to watch for is the upcoming May deadline with the DFI funds protection as well as the growing demand for the dollar and how that may push forward or expedite the emergence of a stronger Dinar.
I know it can get frustrating to wait but if you look at the bigger picture like I hope I’ve shown you, it is impossible to not be optimistic. My wonderful grandmother would tell me, “patience is a virtue” which is so stinkin’ true. Remember, this is not an “if”… this is a “when”.
The Dinar has gained from 4000 to 1 already and the ISX is rapidly growing as well. Look at the big picture and down the road just a little bit and before you know it, the life change we seek will be right at our feet.
I'd like to thank Scooter, Bondlady and Miss Timmy for the teamwork. Also, thank you to all of our visitors tonight!
[lightingcslt] great job thank you all !
[campdav] Greatest chat to date.World record Heavyweight champs
[BondLady] I would like to thank timmy , shredd and scooter as well and all who helped pull this awesome and informitive chat off tonight...applause and thank you all so much for being here. Thank you memebers for your patience and I hope all our new members will come back and not be a stranger ! We have enjoyed having everyone very much and thank you kindly !