The Dinar Daily, Tuesday November 18, 2014
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  1. #1

    The Dinar Daily, Tuesday November 18, 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.

    http://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, Tuesday November 18, 2014

    Najafi calls on government ministers from coalition forces to Iraqi ministries and activation programs



    Alsumaria News / Baghdad Called Vice President Osama Najafi, on Tuesday, and government ministers from coalition forces to the Iraqi activation programs and plans of the ministries which they occupy, noting that he discussed with them the law of the National Guard and activation efforts for preparation and presentation to the House of Representatives.

    Nujaifi said in a statement issued on the sidelines of a meeting with a number of government ministers from the alliance of the Iraqi forces, and received "Alsumaria News", a copy of which, "The meeting dealt with the call to activate the programs and plans of the ministries operated by the Alliance of Iraqi forces and activate its role trends reflect positively on the advancement of the country and the service its citizens and to discuss the political situation and the developments of the security file and the confrontation with the terrorist organization Daash. "

    He Najafi "The meeting also discussed the vocabulary of the political agreement and paragraphs and the need to be activated in the House of Representatives to ensure the application of paragraphs and by the time limit set her," noting that "the meeting also discussed the National Guard Law and activation efforts for preparation and presentation to the House of Representatives and discuss and debate the displaced file and follow-up actions that have been taken or those that require it be taken in the Council of Ministers and the House of Representatives. "

    He said Najafi "The meeting discussed the revitalization of the agencies responsible for the displaced in order to provide services actually rise to the alleviation of suffering and the way to achieve the final solution is to return to their towns and villages and homes in grace and dignity after the removal of all the reasons that forced them to flee with their compensation so that they can exercise their lives in a way dignified. "

    It is said that Vice President Osama Najafi, said Friday (October 10, 2014) support for the government of Prime Minister Haider al-Abadi , during a visit he made ​​to the Fiqh Council of Scholars, which represents the "Reference Forensic Sunnis," while he was willing to help the government in the implementation of agreements on the government program.

    http://translate.googleusercontent.com/translate_c?depth=1&hl=en&rurl=translate.google.com&sandbox=0&sl=ar&tl=en&u=http://www.faceiraq.com/inews.php%3Fid%3D3243727&usg=ALkJrhgMfxSYQXiCkGjo24FJqPR_eOtWmQ

  3. #3

    Re: The Dinar Daily, Tuesday November 18, 2014

    Conscious / Nasraoui: we have seen from the Prime Minister and clear support to activate the law of the provinces



    Conscious / Basra / A.h The governor of Basra Majed Nasraoui a clear support by the Prime Minister Haider al-Abadi to activate irregular province provincial law 21 for the year 2008. Said Nasraoui to move correspondent statement (and the Iraqi News Agency Information / INA) today, "We have seen from the Prime Minister Haider al-Abadi during our meeting in the last week, in support of a clear activation code 21 provinces and expand the powers, so as to faith decentralization as well as the House of Representatives," noting that he "extreme Unfortunately there are some ministers did not withdraw the appeal and works toward the central, pointing, that" there will be a meeting between the head of the House of Representatives Saleem al-Jubouri and heads of provincial councils soon to discuss this matter. "

    He continued, "We as governors will hold a conference to demand decentralization and powers of law enforcement on the grounds that the law is still in force, despite the appeal of Asher, from the Council of Ministers."

    Includes irregular provincial law province 21 for the year 2008 that the provincial council is the legislative and oversight in the province authority has the right to issue local legislation to allow it to manage its affairs in accordance with the principle of administrative decentralization not inconsistent with the Constitution and federal laws that fall within the exclusive powers of the authorities of the Federal.

    http://translate.googleusercontent.com/translate_c?depth=1&hl=en&rurl=translate.google.com&sandbox=0&sl=ar&tl=en&u=http://www.faceiraq.com/inews.php%3Fid%3D3243757&usg=ALkJrhiguhrZipue0TKei-lnBQoHKLrD0g

  4. #4

    Re: The Dinar Daily, Tuesday November 18, 2014

    Alsumaria News / Baghdad



    Iraqi Central Bank announced on Tuesday, was headed for the province FATF in Bahrain to discuss the anti-money laundering issues, indicating that the session will come to adopt the recommendations of the accepted international standards in this regard.

    The bank said in a statement: "Alsumaria News", a copy of the "received the Governor of the Central Bank of Iraq on the Keywords presided over the work of the twentieth session of the Financial Action Task Force (MENAFATF) held in Bahrain to discuss the fight against money laundering and terrorism financing issues," adding that "the session will last from 16 and up 21 of this November. "

    He added that the bank "will emerge session to adopt the recommendations of the accepted international standards in this regard, as well as any other criteria adopted by the Arab countries to strengthen the fight against money laundering and financing of terrorism and the proliferation of arms in the region."

    A report of the Institute of Government in Basel , Switzerland, in September 2014 that Iraq was ranked sixth globally in terms of highest risk in the fight against money laundering n "Iraq occupied the sixth largest in the world in the highest risk in the fight against money laundering as the highest risk countries.

    The governments of 14 Arab countries had been held in November 30, 2004, a ministerial meeting in Manama , Kingdom of Bahrain , on the establishment of the Financial Action Group for the Middle East and North Africa in order to combat money laundering and the financing of terrorism (MENAFATF) works along the lines of FATF (FATF) , it was agreed to be the host country is the Kingdom of Bahrain.

    http://translate.googleusercontent.com/translate_c?depth=1&hl=en&rurl=translate.google.com&sandbox=0&sl=ar&tl=en&u=http://www.faceiraq.com/inews.php%3Fid%3D3243829&usg=ALkJrhhwzAoOxnl8AI7smxRGrz51wB6kgA

  5. #5

    Re: The Dinar Daily, Tuesday November 18, 2014

    Currency Auctions
    Announcement No. (2820)


    The latest daily currency auction was held in the Central Bank of Iraq on the 18-11-2014 results were as follows:





    DETAILS NOTES
    Number of banks 17
    Auction price selling dinar / US$ 1166
    Auction price buying dinar / US$ -----
    Amount sold at auction price (US$) 192,979,000
    Amount purchased at Auction price (US$) -----
    Total offers for buying (US$) 192,979,000
    Total offers for selling (US$) -----



    Market Rate 1201

  6. #6

    Re: The Dinar Daily, Tuesday November 18, 2014

    Conscious / work Announces paydays for smart card holders for the months of September and October



    Conscious / Baghdad The Ministry of Labor and Social Affairs announced on workers' salaries exchange for secured smart card holders for the months of September and October in Baghdad and the provinces from 11/19/2014 .

    Media adviser to the Ministry of Labour and Amar Menem said in a statement received (and the Iraqi News Agency Information / INA) announced today that the department has completed all the procedures for the distribution of salaries in coordination with Baghdad and the provinces a center.
    He said the pensioner, who has secured service ( 30 Years) and more will receive a pension ( 400000 ) Four hundred thousand dinars for two months.

    He noted that the content of which has retired less than (service 30 years) ( 340 ) Three hundred and forty thousand dinars for two months and receive a deceased retired family, which has more than three beneficiaries ( 300 ) Three hundred thousand dinars for two months. Retired and receive the deceased's family, consisting of two beneficiaries ( 280 ) Two hundred and eighty thousand dinars for two months. And the family of the deceased will receive retired consisting of one receivable amount ( 260 ) Two hundred and sixty thousand Ddinrlchehrin.

    T / l. AH

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  7. #7

    Re: The Dinar Daily, Tuesday November 18, 2014

    Trade calls for the United States to get its commercial agencies, including exclusive
    Economy and business



    Alsumaria News / Baghdad Called on the Ministry of Commerce, on Tuesday, the United States to get its exclusive agencies which, while America has shown its desire to raise the volume of trade exchange between the two countries.

    The Minister of Trade Mlas Mohammed Abdul Karim said in a statement, "Alsumaria News", a copy of the "received Iraq wants to sign memorandums of understanding with the US government and companies to frame the work and ensure that the ministry companies on commercial agencies in the field of construction industries, grain and other goods and materials that deal from companies by the ministry.

    For his part, US Ambassador Stuart Jones, "the desire of US companies on the ministry's processing of rice, wheat and through participation in tenders announced by the ministry," expressing his country's desire to "raise the volume of trade exchange between the two countries and the form in which it serves the interests of both sides."

    And declared the former foreign minister , Hoshyar Zebari, in November 2013 that the exchange between Iraq and America the size of this year amounted to $ 21.3 billion and amounted to Iraqi exports of oil to the United States $ 19.3 billion.

    http://translate.googleusercontent.com/translate_c?depth=1&hl=en&rurl=translate.google.com&sandbox=0&sl=ar&tl=en&u=http://www.faceiraq.com/inews.php%3Fid%3D3244084&usg=ALkJrhjLpzyDDQShtwO1iKVagtZ2oqvFtQ

  8. #8

    Re: The Dinar Daily, Tuesday November 18, 2014

    Dubai Chamber of Commerce held its first lecture in Erbil.



    Erbil November / - Dubai Chamber of Commerce known representatives of friendly countries of the region of Kurdistan in Irbil level of commercial activities in the province of Kurdistan.

    Abdul Wahid Ahmed, director of the media in the room Erbil that Commerce announced the development of trade relations and providing more job opportunities and Kiffa economic forces remain in the region in the province of Kurdistan have need of such lectures, seminars, and we are in the province of Kurdistan, based on the theme of continuity in the development and construction of Kurdistan, we are developing proper ground for such activities.

    He also said that this project has a significance in how the development of Kurdistan and the Kurdistan method of survival in the economic equation.

    http://translate.googleusercontent.com/translate_c?depth=1&hl=en&rurl=translate.google.com&sandbox=0&sl=ar&tl=en&u=http://www.faceiraq.com/inews.php%3Fid%3D3244595&usg=ALkJrhjd4O4B3bnPGYKX5ILqNRvuf414Vg

  9. #9

    Re: The Dinar Daily, Tuesday November 18, 2014

    Basra ports receive nine commercial vessels - Iraqi ports in its Almiadenei



    Tomorrow Press / Baghdad: received the ports of Basra, on Tuesday, nine ships of different nationalities, carrying food, equipment and miscellaneous products.
    The Transport Ministry said in a statement received "tomorrow Press", "The commercial stronghold of the southern port of Basra, received today, all six trading ships laden with cement Iranian nationality."

    The statement added that "the port of Umm Qasr, south of Basra, received three commercial ships as well, which is the vessel Jebel Ali / 5 variety of cargo tonnage Bervict.aucharj two ships and containers."

    It is noteworthy that Iraq has five ports on the Arabian Gulf, a stronghold of the port and the port of Faw port of Umm Qasr and Khor Al-Zubair port and the port of Abu Flus, in addition to the two ports and two oilfields port of Basra and Khor al-Amaya.

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  10. #10

    Re: The Dinar Daily, Tuesday November 18, 2014

    Financial Babylon: government departments in the province would stop work in the absence of a rapid adoption of the budget



    Babylon - Finance Committee in the House of Babel confirmed on Tuesday that most of the government departments in Babylon will stop working because of the delay in approving the federal budget, calling on the Iraqi parliament to speed up in it.

    The head of the Finance Committee of the Council of Babylon Asad Abdul bayonets told all of Iraq [where] that "the delay budget impact negatively on service departments where the irrigation department Babil province stopped working, especially in the purge Alambazl and open the fact that the process that the ministry demanded [austerity] in expenses and this is what will be implemented by all the other departments. "

    He added that "the delay in the budget is considered as a stop for the movement of the reconstruction of the province, and will result in a significant negative impact on services across districts and areas," and urged parliament to "accelerate the adoption of the budget for the year 2014 to avoid unexpected crises within the central and southern provinces,".

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