The Dinar Daily, Monday December 1, 2014
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  1. #1

    The Dinar Daily, Monday December 1, 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
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  2. #2

    Re: The Dinar Daily, Monday December 1, 2014

    Currency Auctions

    Announcement No. (2815)

    The latest daily currency auction was held in the Central Bank of Iraq on the 10-12-2014 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$) 127,123,000
    Amount purchased at Auction price (US$) -----
    Total offers for buying (US$) 127,123,000
    Total offers for selling (US$) -----

    Market Rate 1197 !!

  3. #3

    Re: The Dinar Daily, Monday December 1, 2014

    Legal Committee denies the assignment Medhat al-Mahmoud on retirement



    Alsumaria News / Baghdad Parliamentary Legal Committee denied on Monday reports that referral of the Chief Justice Medhat al-Mahmoud on retirement, and showed that this is not a matter of competence.

    Committee Chairman MP Mahmoud al-Hassan said in an interview for "Alsumaria News", "what some of the media on the assignment of the Chief Justice Medhat al-Mahmoud judge to retire News is inaccurate and baseless."

    Hassan added that "This is not the prerogative of the Parliamentary Legal Committee," calling on the media to "be accurate and professional in the transfer of news and events."

    Some of the local media picked up the news concerning the referral of the President of the Supreme Judicial Council Judge Medhat al-Mahmoud retirement.

    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%3D3285655&usg=ALkJrhh8RS9KPXsVFEdy5PJDkUwwzGmctg
    Last edited by sczin11; 12-01-2014 at 10:42 AM.

  4. #4

    Re: The Dinar Daily, Monday December 1, 2014

    A second meeting today to governments in Baghdad and Erbil to resolve the budget dispute and oil



    Baghdad- Kurdistan Alliance MP Arafat Karam, that "revealed delegation center and the region entering Monday afternoon, in a new meeting to discuss the details of the agreement in Erbil, and put up points on the characters."

    He said Karam told all of Iraq [where] that "discussions are ongoing about the general budget and the share of the region and the mechanism of export oil law through Sumo national production line," pointing out that "Baghdad has demanded the province to increase the volume of exports agreed, amounting to 150 barrels per day."

    He added: "There are serious by the parties in resolving the outstanding issues, and to reach a satisfactory solution for both parties."

    It is said that the Kurdistan region delegation led by Barzani, who arrived on Sunday, to the capital of Baghdad, held a meeting this morning with the federal government, headed by Prime Minister Haider al-Abadi to reach radical solutions to the points of disagreement between the two.

    According to information, the parties of their conditions for another, and the terms of Erbil is that in the case of agreement on any issue, for the Iraqi delegation to sign it, as there are three other conditions, but these conditions are not known until now.

    The Terms of Baghdad, they exported 450 barrels of oil per day, distributed among 150 thousand from the refineries of the Kurdistan region and 300 thousand of Kirkuk, and in return send 17% of the province's budget Cardstan.anthy 2

    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%3D3285679&usg=ALkJrhiNwd89s1VJiE8LQxYdBpllKHTHdw

  5. #5

    Re: The Dinar Daily, Monday December 1, 2014

    Parliamentary Finance: Budget focused on security and displaced people and the opportunity to invest



    Alsumaria News / Baghdad Confirmed the parliamentary finance committee member Majda al-Tamimi, on Monday, that the 2015 budget year, focusing on security and defense and the displaced, and the opportunity for investment projects in the country, there are, in the Council of Ministers called on to determine the price of a barrel of oil in the budget of $ 60.

    She said al-Tamimi said in an interview for "Alsumaria News", "the general budget for 2015 focuses on security and defense and displaced just not where any opportunity for investment projects in the country there," pointing out that "there are four hot provinces of the country, and does not need any investment projects." .

    Tamimi called on the government to "the need to relieve the budget of Ivadat officials abroad and the cost of buying cars, they constitute a burden on state funds," stressing "the need to preserve Iraqi funds and reduce the proportion of the budget deficit."

    And demanded Tamimi cabinet to "determine the price of a barrel of crude oil in the budget of $ 60 to avoid the disadvantages of lower oil prices and the global markets."

    He stressed the Prime Minister Haider al-Abadi , on Sunday (November 30, 2014), that the budget will be completed after 10 days, indicating that the decline in oil prices was the reason for the delay.

    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%3D3285369&usg=ALkJrhgoLGvwmRpSSMLpTSySxpBqLm73Tg

  6. #6

    Re: The Dinar Daily, Monday December 1, 2014

    Trading in shares of Baghdad, Iraq, Real Estate Investment Company launch (before the increase) as of Wednesday, 3/12/2014 session

    Baghdad, Iraq, public transport and investment ...
    Related companies
    Wilds 2.5%
    Badia 5.0%
    Will be trading the launch of the listed shares of the company Prasmalha by the increase of 500 million shares as of the session Wednesday, 12.3.2014 and price will be indicative of the company (23) dinars, and by high and low (50%) for this session only then calculated the average price for the subsequent hearing to be percentage change them (10%). For further details please refer to the attached file.
    Source: Iraq Stock Exc

    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%3D3285388&usg=ALkJrhir6ZqSf-M22Xof24nTm7V5LCvSVg

  7. #7

    Re: The Dinar Daily, Monday December 1, 2014

    Iraq and Iran are discussing the possibility of establishing a joint bank



    Information / Baghdad . Search and Commerce Minister Mlas Mohammed Abdul Karim, with the Minister of Economy and Finance of Iran on the sidelines of their participation in the meetings of the COMCEC in Istanbul, the possibility of establishing a joint bank between the two parties.

    He Mlas in a press statement Agency / information / received a copy of it, he studied "the proposal made by the Minister of Industry and Trade of Iran, regarding the possibility of establishing a joint bank (Iraqi - Iranian) away from the barriers and obstacles that prevent activation of increasing trade between the two countries."

    For his part, the Iranian minister welcomed the proposal, stressing that it "will continue to subject the establishment of the bank, as suggested by the signing of the financial transfer agreement and the opening of a branch of the Iranian bank, is outlawed internationally and the completion of the negotiation on the protection and promotion of investments agreement, as well as the prevention of double taxation" ./ ended 25 R. agreement

    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%3D3285495&usg=ALkJrhjijPIOEmGXjAFaRJ9093X113OK4g

  8. #8

    Re: The Dinar Daily, Monday December 1, 2014

    ​sczin11- Very interesting article! We see in ink, specific mention of the Monetary Reform, relating directly to the Banking Laws... This is huge, folks! They are showing the world they are in final stages and it is to be completed..... SOON!!!

    Keywords: We are working to modify the central bank laws, money laundering and call for the expansion of its board of directors



    Detection Governor of the Central Bank of Iraq and the Agency, on Monday, that the amendments to the central bank and banking laws, money laundering and reached the final stages,

    among the several meetings with Parliament Speaker Salim al-Jubouri for ratification soon, the bank's board described as "an internal committee need to expansion. "

    Keywords and said in an interview with the (long-Presse), "The central bank strives to accelerate the amendment of laws that are Bmsas with the banking sector as a law of the Central Bank and the Banking Law and the Law on Money Laundering."

    The relationship, "that a number of meetings were held with the head of the House of Representatives, Salim al in order to give priority to these laws during the next stage, because of the economic system sensitivity and need them, in order to pay to the government for approval," referring to the bank and throughout the years that preceded the fall of the regime Former Keep monetary policy, as well as the large role in the stages of development of the economy. "

    He said the central bank governor, to "amend these laws is in its final stages, and that the coming months will be enough to Pthariaha to give new financial dye in the financial and banking sector alike," pointing out that "found that the administration of the Iraqi Central Bank Council, which represents the highest authority in the The Bank does not represent only an internal committee of the central bank does not represent other parties. "

    Keywords and called for "the need to involve other parties in the Board of Directors of both the public or the private banking sector in order for there to be a clear vision for the work of the Central Bank."

    Held Association of private banks, the first of Saturday (November 29, 2014), a conference attended by Prime Minister Haider al-Abadi and a large number of banking and financial figures in order to stand on the main impediments to the banking sector and ways to address them and develop them.

    The banking system consists in Iraq from 43 banks, as well as the Central Bank, and distributed according to government ownership between 7 and 30 waged, including 7-Islamic, as well as 6 foreign banks which are distributed by Branch 600 in the whole 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%3D3285498&usg=ALkJrhhPG_bgt-8yVFkKdrTyYInQ0anaGg
    Last edited by sczin11; 12-01-2014 at 11:05 AM.

  9. #9

    Re: The Dinar Daily, Monday December 1, 2014

    Opening Project (taxi - Wei) in Najaf International Airport at a cost of US $ 7 million



    The President of the Council of the airport administration Faid al-Shammari said the draft aircraft "taxi - Wei," which was carried out by an Iraqi construction companies in Najaf passage will contribute to the smooth flow of air traffic dramatically in the starting square and easy landing and takeoff of aircraft.

    Shammari pointed to the existence of a project to restore the basic design of the airport will be forwarded to a Lebanese specialized companies and in coordination with the Council of Najaf province, said airport managing director Murtada al-Moussawi said the opening of inflection new aircraft is of great significance to accommodate larger numbers of aircraft, where the old area of ​​the taxi area - Wei accommodate between 60-70 aircraft Lama opened a new area for Taxi Wei Faisal absorption to more than 120 aircraft the effect of adding an area of ​​120 000 square meters of areas to stop. / ended 19 e

    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%3D3285749&usg=ALkJrhjkYcedkeUYY8ZwyL41BrgcZQH-SA

  10. #10

    Re: The Dinar Daily, Monday December 1, 2014

    Jaafari and parliamentary relations hold a meeting to draw Iraq policy with the countries of the world



    Held the parliamentary Committee on Foreign Relations, on Monday, meeting with Foreign Minister Ibrahim al-Jaafari, to draw Iraq policy with the countries of the world, calling for frequent meetings to provide the best proposals.

    Said committee member Mithal al-Alusi told / information /, "The meeting was held at the headquarters of the Foreign Ministry between Minister Ibrahim al-Jaafari, a delegation of the Foreign Relations Committee in the House of Representatives to discuss all actions taken by the ministry in the previous period since the formation of the government headed by Haider al-Abadi that."

    He added that "the meeting included discussion of a lot of things foreign policy form public and private, and we especially on the doors of a new budget must be in place mechanisms to monitor, according to this aspect of the government."

    Alusi said "the presence of compatibility and integration between the Commission and the Ministry of Foreign Relations," noting that "assured the Committee that the foreign policy of Iraq are going to high-literal approach and national."

    He pointed out that "the ministry is one of the sets foreign visits and not parliamentary committee," calling on the ministry to "repeat the meetings in order to provide the best proposals that contribute to solving the outstanding problems."

    Alusi said that "the Commission does not have a flag in Jaafari's visit to Bahrain, Sudan, to the fact that the law makes it imperative for the ministry to act on foreign visits" .anthy / 25 define d

    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%3D3285835&usg=ALkJrhgq4HYOJ51BFZYWAIm5uTkxcQrtzQ
    Last edited by sczin11; 12-01-2014 at 11:20 AM.

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