The Dinar Daily, Sunday November 16, 2014
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  1. #1

    The Dinar Daily, Sunday November 16, 2014





    The Exchange Rate of Foreign Currency in Economic Feasibility Studies

    Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

    Estimate the shadow price of foreign currency:

    1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

    The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

    * What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.In particular the following outputs and inputs of foreign currency were distinguished:


    • Export-outputs.
    • Outputs marketed locally that substitute imports.
    • Imported inputs.
    • Inputs produced locally that usually go to exports.
    • Foreign labor.


    According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.

    In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency …. etc.).

    In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

    2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports… etc.

    The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:


    • The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.
    • The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.
    • The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.
    • The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.
    • This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.


    And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.

    3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.



    The Republic of Iraq – Ministry of Planning

    and

    A "flashback recap" of a Live Q and A Call from about a year ago - on THE DAILY DINAR NEWS BLOG...

    In general terms – there were three main focal points of interest I wanted to cover and then allow listeners to ask whatever questions they liked.

    1) the SIGR report…


    2) the Gold Article…


    3) the IIER report…


    I started the conversation out last night by highlighting how crazy this campaign being fielded to contact our lawmakers and bank CEO’s and tell them how unfair it is they are getting to exchange (exchange is the right terminology BTW – NOT “CASH-IN”) at 32.00 per Dinar and we are not – is. It is nuts.


    Firstly, “they” are NOT being allowed to exchange “early” – or at 32.00 per Dinar. It makes you sound “stark raving MAD” to be caught saying such things. You would be better off barking at the moon. It is demeaning to the validity of a true currency play.


    Secondly, this is entirely the wrong way to approach them. I pointed out on the call that Poppy and I fielded a very successful such campaign a couple of years ago. However, we sat down and came up with a much different approach. It was designed to get answers and to approach our lawmakers with respect and as their constituents. Not like a bunch of lunatics. We had extraordinary participation (because it made sense) and we received a good response from lawmakers. It started the conversation in a reasonable manner.


    I asked one caller – “when was the last time you asked a banker for money and told him how unfair it was if he didn’t give it to you”??? Obviously – we chuckled…


    Another caller asked me if (as DC had relayed) – the “zero’s were raised” and the lower denominations were in circulation??


    I said plainly “no”…lower denominations being in circulation would (at the very least) imply there had been a value change. If there were no value change the lower denoms would not only be of little value, they would be such a hinderance – people might even throw them away just to get rid of them. So no – no lower denoms. I told the caller to check the
    CBI.iq website for “real” info on rate change.

    The “zero’s being raised” or “deleted” – as explained by any reasonable researcher, economist or authority – is simply the process removing the large (3 zero notes) from circulation.


    Referring to an Enorrste post from today on
    THE DINAR OBSERVER DAILY(you may want to put this on your favorites and check in several times a day – we to it often )

    “…I have never found a single article from the CBI or the IMF that equates “delete the zeros” to the idea of “move the decimal point.” Instead, the statements overwhelmingly come out to mean “remove the large notes from circulation.”


    Also – this recent internal memo put out by Wells Fargo is likely “push back” from this recent campaign. I pointed out that Pinnacle Bank published an article by an “affiliate” in their internal publication and then “highlighted it” in a similar internal memo a couple of years ago. It is just a defense mechanism. I’m sure Wells is tired of having their name dragged through the “internet rumor mill”. This is highly likely the reason for their vigorous denials about handling it in the future. They get so many useless calls – it isn’t worth the headache. Can you blame them??


    Further, for any bank, lawmaker, adviser or official to state the “Dinar is a scam” is nearly as foolish as some of the internet “Gurus”. It is the official currency of a COUNTRY. I pointed out (below) the post from yesterday’s
    DINAR OBSERVER DAILY
    – highlights page 94 of the quarterly SIGR report to THE US CONGRESS in April of 2012…
    __________________________________________________ _____________

    THIS REPORT WAS SENT TO CONGRESS LAST MAY. IT PLAINLY SHOWS IN THIS REPORT THEY EXPECTED THE DINAR TO REVALUE AT AROUND A DOLLAR IN 2013.

    We are seeing and hearing that the inflation rate is still climbing and they are pushing to get us our money?? This report is from page 94 of the massive SIGR report.





    BGG ~
    This is a screen shot from the “Special Inspector General for Iraq Reconstruction” – Apr 2012, quarterly report to Congress. For members of our Government to say they have no idea what is going on here – means they haven’t read some very basic documents presented them.
    __________________________________________________ ______________

    I pointed out (last night) this is a highly speculative investment. We are, in no way, guaranteed anything. However, this SIGR report gives us some valuable insights…

    1) This is information given to the US CONGRESS on a quarterly basis… I find it hard to believe such an information source would intentionally mislead Congress. They tend to frown on such behavior. Which goes directly to the validity of this adventure – against all advice from Wells Fargo or other such naysayers.

    2) It points out there having been a legitimate “plan” – or time frame in motion…having been projected to be done in 2013. We are obviously in “over time” now.

    3) It gives us an idea as to who is in charge…the CoM – or Council of Ministers. Who do they answer to?? Maliki. Period. When is he likely to push this forward?? Historically – he has been a “weak Dinar” policy advocate. However, rumor from his own inner circle admits he can’t win a third term in office without some currency reform.

    I fully expect him to use every tool in his “wheel house” to win – his recent moves in Anbar and the disputed territories prove as much. Currency reform has to be a “biggie”. Though this WAS their thinking a couple of months ago – there is no promise it is still part of their political calculus. We shall see.

    4) Though no guarantee of the actual future plan they wind up engaging – this report points out an increase in value that would have taken the Dinar from “one-tenth of a cent” to a value “of slightly less than $1″..

    __________________________________________________ ______________

    AND

    Coins put on the market !!



    Nora Albjara member of the committee of economy and investment in the House of Representatives revealed that the central bank completed its preparations for the issuance of metal coins of seven small groups, in conjunction with the implementation of the project to delete the three zeroes from the paper currency is currently in circulation.

    She said in her statement Albjara "The project will take between four and five years, and which will be the launch of the categories of small coins gradually."

    He predicted the financial expert Hilal Taan inflation rate declines, with the issuance of metal coins of small denominations in the daily financial transactions, remarkable that 3% of the value of inflation in Iraq due to the presence of large cash block.

    The economic expert on behalf of Jamil Anton, noted that he may not find metal coins accepted by a lot of Iraqis, especially young people, due to the existence of an entire generation of Iraqis had not trading coins due to stop use since the early nineties of the twentieth century

    waradana.com

    And

    CBI is preparing to issue a monetary metal parts



    Metal coins from the category of 25 fils were in circulation until the nineties of the last century

    Nora Albjara member of the committee of economy and investment in the House of Representatives revealed that the central bank completed its preparations for the issuance of metal coins of seven small groups, in conjunction with the implementation of the project to delete the three zeroes from the paper currency is currently in circulation.

    She said in her statement Albjara Radio Free Iraq, "said the project will take between four and five years, and which will be the launch of the categories of small coins gradually."

    He predicted the financial expert Hilal Taan inflation rate declines, with the issuance of metal coins of small denominations in the daily financial transactions, remarkable that 3% of the value of inflation in Iraq due to the presence of large cash block.

    The economic expert on behalf of Jamil Anton, noted that he may not find coins accepted by a lot of Iraqis, especially young people, due to the existence of an entire generation of Iraqis had not trading coins due to stop use since the early nineties of the twentieth century.

    https://www.iraqhurr.org/content/article/26666313.html

    and

    Another "FLASHBACK"...

    Economists Divided Over Deletion Of Zeros

    By Amina al-Dahabi for Al-Monitor.

    The Central Bank of Iraq (CBI) has been attempting to delete three zeros from the Iraqi currency since 2003. This project has raised many concerns among the Iraqi public and within the business community, and Iraqi economists are divided…

    …Haider al-Abadi, the head of the Iraqi parliamentary Finance Committee, told Al-Monitor that while deleting zeros from the current currency is possible, this has been postponed until after parliamentary elections. He noted that studies are being carried out to ensure that, following the currency change, counterfeiting is limited and that Iraqis don’t go back to trading in the old currency.

    The step to delete zeros from the currency has been postponed several times, leading the parliamentary Economic Committee to demand that the CBI accelerate this project, as Al-Sharqiya reported. In a news conference held July 6, the Economic Committee confirmed that the deletion of zeros will lead to an increase in the value of the Iraqi dinar and will have positive repercussions, including a reduction in unemployment and poverty rates in the country.

    ARTICLE LINK



  2. #2

    Re: The Dinar Daily, Sunday November 16, 2014

    Conscious / Ministry of Tourism Opens Registration in Dhi Qar, Tourism and Hospitality Institute



    The Ministry of Tourism and Antiquities decided to open registration in Dhi Qar, Tourism and Hospitality Institute.

    The Director General of the Department of tourist facilities Mohsen Sdjan in a statement issued by the ministry received (and the Iraqi News Agency Information / INA) that "The ministry has completed preparations for the Institute for the academic year 2014-2015," noting that "the ministry has invited students wishing to register for the current academic year Review the headquarters of the Department of Tourism of Dhi Qar, and for the period of (12-22) this month. "

    He pointed out that "the ministry's plan aims to open a confederate of tourism and hospitality in each province in order to prepare and qualify tourist cadres to supplement the tourism and hotel sector."
    The last Institute has opened the ministry was in the province of Muthanna, a few weeks ago after he completed all the rehabilitation and furnishing business, 45 students were accepted to study them in the first stage of his first season school.

    https://translate.googleusercontent.c...3Km-nDa0_lzE5A
    Last edited by AR Transplant; 11-16-2014 at 10:28 PM.

  3. #3

    Re: The Dinar Daily, Sunday November 16, 2014

    Dixon Engineering & Construction is preparing to enter the Iraqi market



    Uprightness newspaper reported that the company Descon Engineering and Construction and construction announced their readiness to enter the Iraqi market, while confirming that Iraq is a unique investment opportunity.

    The newspaper added that the general manager of a company that has a branch in the emirate of Abu Dhabi Mohammed Iqbal Khan said: "The company has been absent from the Iraqi market 25 years ago, but reconsider again because of the distinctive opportunities that exist within Iraq."

    It is noteworthy that the company was founded in 1977 in Pakistan and is engaged in a number of Arab countries such as Qatar and the United Arab Emirates and Saudi Arabia in partnership with Olayan Company, which is one of the largest privately owned companies in Saudi Arabia.

    https://translate.googleusercontent.c...H0HzHQOFSVNgqg
    Last edited by AR Transplant; 11-16-2014 at 10:30 PM.

  4. #4

    Re: The Dinar Daily, Sunday November 16, 2014

    Jubouri: Sistani called to speed up passage of the budget and legislation important laws



    Twilight News / Parliament Speaker Salim al-Iraq, on Sunday, that the religious authority, Ayatollah Ali al-Sistani told him of the need to speed up the approval of Almoisntin for this year, and last year, and work on important legislation of laws that serve the interests and security of the Iraqis directly.

    Jubouri said at a press conference held after a meeting with Sistani in the holy city of Najaf.

    He said al-Sistani urged to follow up on the situation of displaced persons and solve problems they encounter.

    He said al-Jubouri said Sistani also warned of the phenomenon Tfeache financial and administrative corruption in state institutions and departments, and the promise of a threat must be fought and eliminated.

    https://translate.googleusercontent.c...QAeRUfDyWEpBug
    Last edited by AR Transplant; 11-16-2014 at 10:31 PM.

  5. #5

    Re: The Dinar Daily, Sunday November 16, 2014

    Currency Auctions

    Announcement No. (2817)

    The latest daily currency auction was held in the Central Bank of Iraq on the 15-11-2014 The Port on16-11-2014 results were as follows:

    DETAILS NOTES
    Number of banks 9
    Auction price selling dinar / US$ 1166
    Auction price buying dinar / US$ -----
    Amount sold at auction price (US$) 97,899,000
    Amount purchased at Auction price (US$) -----
    Total offers for buying (US$) 97,899,000
    Total offers for selling (US$) -----



    Announcement No. (2818)

    The latest daily currency auction was held in the Central Bank of Iraq on the 16-11-2014 results were as follows:

    DETAILS NOTES
    Number of banks 16
    Auction price selling dinar / US$ 1166
    Auction price buying dinar / US$ -----
    Amount sold at auction price (US$) 186,320,000
    Amount purchased at Auction price (US$) -----
    Total offers for buying (US$) 186,320,000
    Total offers for selling (US$) -----

    Market Rate. 1202
    Last edited by AR Transplant; 11-16-2014 at 10:32 PM.

  6. #6

    Re: The Dinar Daily, Sunday November 16, 2014

    TBI opens a branch in a beautiful area and confirms: the goal of the commercial bank operations coordination in the region



    Announced the Trade Bank of Iraq TBI, on Sunday, the opening of a branch eighth of the bank in a nice commercial area east of the capital Baghdad, because they contain a lot of companies, commercial and industrial agencies, while stressing that the section contains "a sophisticated banking system" and will reduce the momentum in the rest of the branches, confirmed The other branches will be opened in Baghdad and other provinces early next year.

    The Associate Director-General of the Bank Fouad agent in an interview with the (long-Presse), "The opening of this branch, which is is the eighth in Baghdad and 21 in Iraq in a nice commercial area in eastern Baghdad, which represents a vital commercial area in the capital, is an important step for the coordination of the business process where, as containing a lot of commercial and industrial companies as well as Arab and international commercial agencies. "

    The agent said, "This will facilitate the bank a lot of routine operations and complications, as well as reduce the momentum in the rest of the branches," stressing that "the new branch has a sophisticated banking system and specialized cadres shall be capable of completing the various banking operations."

    He said the agent "we opened a branch in Kazimiyah in the last period and there will be other branches in Baghdad and several provinces during the beginning of next year."

    Founded TBI wholly-owned by the Iraqi government, in July of 2003, to facilitate Iraq's international trade and the reconstruction of the country after the work of the United Nations Programme of the oil-for-food ends.

    https://www.almadapress.com/ar/news/3...A%D9%84%D8%A9-
    Last edited by AR Transplant; 11-16-2014 at 10:34 PM.

  7. #7

    Re: The Dinar Daily, Sunday November 16, 2014

    Karbala with Korea looking to build oil refinery and the training of cadres and recent denies prevent companies from entering Iraq



    Announced the province of Karbala management, Sunday, Search build refinery in Karbala oil with the Korean Ambassador in Iraq, and as pointed to the agreement principled with the Korean side for the training and development of its cadres in the field of oil and energy, has denied the Korean Embassy in Iraq, and a decision prevents employment and Korean companies to come and work in Iraq, stressing that the number of Korean companies would like access, work and invest in Karbala.

    This came during a press conference after a meeting with the governor of Karbala, Akil Turaihi, and Korean Ambassador to Iraq, Joe Jean Wong, in the governorate building, and attended the (long-Presse).

    The governor of Karbala, Akil Turaihi, during the conference, "We have received today in Karbala, South Korea's ambassador to Iraq with a delegation from the embassy and talked about a number of reconstruction and construction and investment preservation issues," noting that "the Korean Ambassador briefed on the Government of Karbala plans in those areas." .

    He Turaihi "there was talk about building a refinery in Karbala oil process, which was referred to the implementation of the group of companies led by the Korean company Hyundai," explaining that "it was agreed in principle with the Korean Embassy on joint cooperation for the training and development of personnel Alkrplaúah in the sectors of oil, energy and other fields."

    For his part, the Korean ambassador to Iraq, Joe Jean Wong, during the conference, said that "our visit to Karbala came with the aim to meet with local government and talk about the various projects of interest to the province, particularly the refinery in Karbala oil, which we believe he will bring the achievements of Karbala, Iraq, in general, the project".

    Wong added that "is to prevent employment and Korean companies to come and work in Iraq, by the government is untrue, pointing out that" we have informed the Government of Karbala that there are Korean companies wish to enter, work and invest in Karbala. "

    He stressed Korean ambassador that "the Government of Karbala assured about the security situation and confirmed that there are job opportunities will be available for Korean companies during the coming period, adding that" the Government of Korea entered within the international coalition to fight (Daash) and will stand by Iraq in the war against terrorism, and Iraq is able to bypass this war. "

    The head of the Iraqi government, the former, Nouri al-Maliki, has said on the sidelines of the foundation stone was laid and the signing of the contract for the construction refinery in Karbala oil with a coalition of four Korean companies, in (the 22 of February 2014), that the government is long overdue in the construction of oil refineries, and attributed the reason to the problems political and security taking place in the country, as he emphasized that Iraq seeks to "reach the first rank among exporting and oil-producing countries," and gave thanks to the "Korean companies to enter the various projects in Iraq and its contribution to the construction process, despite the circumstances of the security, political,"

    The Iraqi Oil Ministry has signed, in (the 22 of February 2014), a contract to establish a refinery in Karbala oil with a coalition of four Korean companies worth a total of more than six billion dollars, while attended the signing of the contract of former Prime Minister Nuri al-Maliki and Vice President for Energy Hussain al-Shahristani ceremony and the Ministers of Oil Abdul Karim and coffee and Higher Education Ali al-Adeeb Korean ambassador in Baghdad.

    He announced a coalition of four Korean companies, in (February 19, 2014), winning a contract to build an oil refinery in Karbala, a value of 6.04 billion dollars, as he emphasized that the refinery capacity for refining 140 000 barrels per day, and the duration of the establishment will take 54 months.

    It is noteworthy that the two Hoendaa harmonious possess 37.5% of the shares in the project with the company's claim of possessing GS for the same shares with SK Construction Company for 25% of the stock.

    https://www.almadapress.com/ar/news/3...7%D8%A7-%D8%A7
    Last edited by AR Transplant; 11-16-2014 at 10:35 PM.

  8. #8

    Re: The Dinar Daily, Sunday November 16, 2014

    Anbar Provincial Council declares bankruptcy



    Anbar provincial council declared bankruptcy due to lack of preservation and access of the province's share of the budget.

    He was surprised at the statement of what he called the government's actions toward the conservative, non-share exchange of the budget, despite the financial crisis, which suffers maintain them.

    The Council called on the government to send allocated to the province in addition to border crossings revenues totaling more than 500 billion dinars budget.

    As a student financial allocation for the displaced and displaced from Anbar province.

    https://www.almustaqbalnews.net/174834
    Last edited by AR Transplant; 11-16-2014 at 10:37 PM.

  9. #9

    Re: The Dinar Daily, Sunday November 16, 2014

    Group of Twenty support the growth of the global economy



    BAGHDAD / obelisk: the leaders of the Group of Twenty nations agreed on Sunday to give a boost flagging global growth and to address climate change and the fight against tax evasion .

    Group of Twenty leaders agreed on measures to promote global economic growth set by additional 2.1 percent during the five years .

    According to a statement issued at the end of the summit "will add more than two trillion dollars of the global economy and provide millions of jobs" as participating combating tax evasion which deprives governments of revenues up to billions of dollars committed to states .

    Tony Abbott Prime Minister of Australia, the host country, said that the group will launch a global infrastructure initiative and the International Monetary Fund and the Organization for Security and Cooperation in Europe Sitaavan progress towards achieving the growth target .

    Abbott added that the group energy ministers will meet next year for the first time .

    The United States and other countries and attempts to beat Australia dimensions of climate change on the formal agenda. Australia and one of the largest countries in terms of carbon emissions per capita .

    The final statement called for a strong and effective movement to address climate change in order to reach a protocol has legal force in the United Nations climate conference in Paris in 2015 .

    Obama has put climate change on the agenda of the Group of Twenty agenda during his speech on Saturday, calling for countries to move and make commitments worth three billion dollars to fund the preservation of the environment (Green Claimit). And Japan pledged $ 1.5 billion to the Fund on Sunday.

    https://almasalah.com/ar/news/41477/%...F-%D8%A7%D9%84
    Last edited by AR Transplant; 11-16-2014 at 10:39 PM.

  10. #10

    Re: The Dinar Daily, Sunday November 16, 2014

    Basra government plans to increase its oil production to fill the shortfall in production



    The local government of the province of Basra revealed its intention to increase its oil production to fill the shortfall in production due to stop a group of oil pipelines, refineries, due to terrorist acts.

    The governor of Basra Majed Nasraoui told all of Iraq [where] that "the government has a special program to increase the oil production of the country by the province of Basra, and a host of other outlets."

    Nasraoui added that "the federal government continues with the Kurdistan Regional Government promotes work to resolve the outstanding problems in the field of energy in addition to its contribution to the opening of new outlets for Tsdra oil."

    Referred to the Government of Basra demanded earlier Petrdolar activating 5-law to take its share of oil imports, to improve the overall situation of the province.

    Chart and the province of Basra and the oil-producing provinces in the workshop, which was hosted by the Oil Ministry headquarters in the capital, Baghdad .

    https://www.kululiraq.com/?p=109090
    Last edited by AR Transplant; 11-16-2014 at 10:41 PM.

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