The Dinar Daily, Wednesday November 19, 2014
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  1. #1

    The Dinar Daily, Wednesday November 19, 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, Wednesday November 19, 2014

    Labour set a date for the disbursement of the salaries of workers who do not have secured smart cards



    The Ministry of Labor and Social Affairs, on Wednesday, the 20th of the current month as the date for the disbursement of the salaries of workers covered by social security and do not have smart cards.

    The ministry said in a statement: "Alsumaria News" received a copy of it, "the 20th day of the month this November, the date for the disbursement of the salaries of workers covered by social security and do not have smart cards."

    It is noteworthy that the Ministry of Labour are from time to time by setting dates for the distribution of secured employees' salaries according to lists prepared in advance, as part of the rights provided by the Social Security Act.

    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%3D3247329&usg=ALkJrhhf9RE-rbp96FTxmixvaWgc_lD4og

  3. #3

    Re: The Dinar Daily, Wednesday November 19, 2014

    Securities Commission to accept the inclusion of a number of money transfer in the Iraq Stock Exchange companies

    Share on facebookShare on twitterShare on google_plusone_shareShare on linkedinShare on emailShare on printMore Sharing Services I got the approval of the Securities Commission's decision to the Board of Governors requested the conversion of shares of financial companies included below in the Iraq Stock Exchange, to provide drawers conditions required by the Securities Commission. Spectrum Financial convertible.

    Mutah Financial convertible. Sama Baghdad Financial convertible. Arab Company for the fiscal conversion. Islamic National Bank Corporation. Iraqi Company for the fiscal conversion. Silk Company financial convertible. Tender for the fiscal third parties conversion company. Almahj Financial convertible. Iraq through the Bank for Investment. For further details please refer to the attached files.

    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%3D3247342&usg=ALkJrhhynHB30SOoR2C4gOcJmfN7aIG5Tg

  4. #4

    Re: The Dinar Daily, Wednesday November 19, 2014

    Conscious / Ministry of Labor and determine the timing of the pay of workers who do not have the secured smart cards

    And sector / Baghdad / The Ministry of Labor and Social Affairs, on Wednesday, the 20th of the current month as the date for the disbursement of the salaries of workers covered by social security and do not have smart cards.

    The ministry said in a statement received (and the Iraqi News Agency Information / INA), a copy of it, "The day of the 20th month of this November, the date for the disbursement of the salaries of workers covered by social security and do not have smart cards."

    It is noteworthy that the Ministry of Labour are from time to time by setting dates for the distribution of secured employees' salaries according to lists prepared in advance, as part of the rights provided by the Social Security Act.

    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%3D3247387&usg=ALkJrhgV3dBscrvJQK0YhFY6BqXbwW_vOQ

  5. #5

    Re: The Dinar Daily, Wednesday November 19, 2014

    Before the arrival of Barzani to Baghdad ... the federal government launches $ 500 million for the benefit of the Kurdistan region



    BAGHDAD / Baghdadi News / .. source said early on Wednesday, the federal government launched a $ 500 million for the benefit of the region.
    The source said in an interview / Baghdadi News / "The prime minister ahead of a visit to Baghdad region, the federal government launched a $ 500 million for the benefit of the region."

    The source added that "it is anticipated that the day the President of the Government of the Territory Nechirvan Barzani, the head of a high-level delegation visit to Baghdad, and the visit aims comprehensive, just and constitutional treatment of a beautiful relationship between the two problems."

    The regional government has issued a statement earlier confirmed that "the joint meeting held between Iraqi Oil Minister Adel Abdul-Mahdi and the president of the Kurdistan Regional Government Nechirvan Barzani and his deputy, Qubad Talabani, was agreed to reach a comprehensive and just solution to all the problems between the federal government and the Kurdistan Regional Government," and the statement that "the federal government decided to grant a sum of $ 500 million for the Kurdistan Regional Government as an initial step, in contrast, will be subject to Government of the Territory of 150 thousand barrels of crude per day Nfezha at the disposal of the federal government" .anthy / l

    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%3D3247395&usg=ALkJrhjbRZzLudnOn7629GOTDneSMg2LdA

  6. #6

    Re: The Dinar Daily, Wednesday November 19, 2014

    Legal representative: the atmosphere suited to the formation of a committee to Article 140 in Parliament





    Khandan -ali Naji - Parliamentary Legal Committee confirmed, that the atmosphere inside the House was willing to form a committee to follow up the adoption of legislative decisions and laws to Article 140 of the Iraqi Constitution.

    A member of the Committee MP for mass citizen Salim Shawki told (Khandan) that "Article 140 was supposed to be applied in the first round or the second to the House of Representatives, but political differences between the political blocs, select the application," explaining that "the current atmosphere suited between presidencies three (of the Republic, the Ministers, the House of Representatives) and the House of Representatives to form a parliamentary committee to follow up the decisions and laws to rule. "

    Shawki said that "in the interest of the country Halhh all disputes relating to Article 140 and completed according to the Iraqi constitution, agrees," noting that "the constitutional article does not include Kirkuk only, but other provinces, including the Euphrates in the East and South of Iraq."

    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%3D3247421&usg=ALkJrhiO4HxChozYBGkvLft9vZb2cdiH7Q

  7. #7

    Re: The Dinar Daily, Wednesday November 19, 2014






    Currency Auctions Announcement No. (2821)

    The latest daily currency auction was held in the Central Bank of Iraq on the 11-19-2014 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$) 238,219,000
    Amount purchased at Auction price (US$) -----
    Total offers for buying (US$) 238,219,000
    Total offers for selling (US$) -----


    Market Rate 1201....

  8. #8

    Re: The Dinar Daily, Wednesday November 19, 2014

    The economy is affected by the policy of some countries to flood the market with oil



    Baghdad Constitution warned Economic Information Center, the building on the 2015 budget price of $ 80 a barrel oil, calling for the adoption of a conjectural price within acceptable limits for the expectations of a barrel of oil, including dysfunctional for the future to get the deficit Almoisna.waodh Dargham Muhammad Ali, chairman of the center that the price which is supposed adopted must be between 60 to 65 dollars, and that any number more than that may constitute a record optimistic does not serve the budget in light of the continuing decline of global oil prices, which constitute see more pessimistic scenario calculated Alaaúdat.wachar to, to build a suitable price protects the budget for a deficit extra hard to compensate, while taking scenario minimum price speculative allows it, get abundance in the event of high oil prices allow to find a supplemental budget address the lack of development, while the adoption of a high price will lead to chaos in the plans and put pressure on borrowing Aovernmah.okan Oil Minister ceilings Adel Abdul Mahdi is expected that the price of oil accounted for in the construction budget for 2015 will appreciate to $ 80 per barrel.

    To the head of the Virtue Ammar Tohme said that some States policy of flooding the market additional quantities of oil caused severe problems for the economy Alaraca.oadav be affected by the oil revenues that make up the proportion greatest in the general budget of internal and external factors require a comprehensive processors Reduced total oil product and drop the source of it resources because of the political dispute between the province and the center has caused a loss of balance nearly a million barrels of oil Yumia.wachar that this requires speeding by fair based on the Constitution and believes in a fair distribution of imports according to population ratio in order to achieve the concept of ownership of the Iraqi people for oil and Alghaz.ofatt Tohme out that the story calls for a stand.

    The diplomatic activity unite with other affected oil-producing countries, which has also been affected by flooding the market and take steps in a coordinated process to force states that cause damage our national economy back down from its policy Alkhatih.mn another side policy, MP for independent bloc Mohammed al-Shammari said host oil minister Adel Abdul Mahdi Parliament has not provided sufficient answers to lingering in the oil file between Baghdad and Erbil issues, and wondered about the oil revenue, which is exported province Cardstan.oukal Shammari said the province issued now 350 000 barrels per day, and there are questions about the fate of the 200 000 Other barrels, which is supposed to intervene within the national system, pointing out that the minister of oil between during the meeting that the agreement did not address the radical solutions, but there are seeking comprehensive solutions to the most Alqh.oadav issues that Abdul-Mahdi gave a brief, non-detailed some of the issues, but gave an overall picture of the reality of oil prices at this stage and abuse The ministry with the subject to its importance in building the budget for 2015, adding that the minister answered a number of questions some deputies from the ministry's policy of rebuilding the oil industry and the activation of relations with the Organization of Aopk.obin Shammari he does not need to be that there will be a political and diplomatic effort in the field of preservation the stability of oil prices and pressure on countries that export large amounts of oil and contribute to the low level of prices and work to address the problems that contribute to reducing the level of prices.

    http://www.daraddustour.com/index.php/local/27803-2014-11-19-04-22-56

  9. #9

    Re: The Dinar Daily, Wednesday November 19, 2014

    Legal representative: the atmosphere suited to the formation of a committee to Article 140 in Parliament

    Khandan -ali Naji confirmed the parliamentary legal committee, that the atmosphere inside the House was willing to form a committee to follow up the adoption of legislative decisions and laws to Article 140 of the Iraqi Constitution. A member of the Committee MP for the mass of the citizen properly Shawki told (Khandan) that "Article 140 was supposed to apply in the first round or the second to the House of Representatives, but political differences between the political blocs, select the application, "explaining that" the current atmosphere suited among the three presidencies (the Republic, Ministers, MPs) and the House of Representatives to form a parliamentary committee to follow up the decisions and laws to rule. "

    He said Shawki that "the interest of the country Halhh all disputes relating to Article 140 and completed according to the Iraqi constitution, agrees," noting that "the constitutional article does not include Kirkuk only, but other provinces, including the Euphrates in the East and South of Iraq."

    http://www.xendan.org/arabic/drejaA.aspx?=hewal&jmara=6432&Jor=2

  10. #10

    Re: The Dinar Daily, Wednesday November 19, 2014

    Zebari announce $ 500 million in exchange for the Kurdistan region

    Khandan
    - detect and Finance Minister Hoshyar Zebari, the payment of $ 500 million for the Kurdistan region, under the agreement reached recently between Arbil and Baghdad. Zebari said at a news conference on Wednesday that Baghdad had not acted Kurdistan region salary dues since March last month, but today the deposit $ 500 million in the account of the Kurdistan region and added Zebari said: We will try to resolve differences between Baghdad and Erbil are final and secure Peshmerga salaries.

    http://www.xendan.org/arabic/drejaA.aspx?=hewal&jmara=6433&Jor=1

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