The Dinar Daily, Thursday December 11, 2014
Page 1 of 4 123 ... LastLast
Results 1 to 10 of 33

Thread: The Dinar Daily, Thursday December 11, 2014

  1. #1

    The Dinar Daily, Thursday December 11, 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


    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 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
    – highlights page 94 of the quarterly SIGR report to THE US CONGRESS in April of 2012…
    __________________________________________________ _____________


    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 84 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″..

    __________________________________________________ ______________


    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


    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.


    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.


  2. #2

    Re: The Dinar Daily, Thursday December 11, 2014

    Currency Auctions
    Announcement No. (2840)

    The latest daily currency auction was held in the Central Bank of Iraq on the 11-12-2014 results were as follows:

    Number of banks 16
    Auction price selling dinar / US$ 1166
    Auction price buying dinar / US$ -----
    Amount sold at auction price (US$) 142,472,000
    Amount purchased at Auction price (US$) -----
    Total offers for buying (US$) 142,472,000
    Total offers for selling (US$) -----

    Market Rate 1197

  3. #3

    Re: The Dinar Daily, Thursday December 11, 2014

    11-12-2014 12:18 PM Saudi delegation in Baghdad soon to choose the site of his country's embassy in the Green Zone

    Fallujah News / Baghdad ... The president of information management at the Ministry of Foreign Saudi Ambassador Osama transferred to a delegation from the Saudi Foreign Ministry will visit Baghdad in the next few weeks to choose a new embassy site, which will be inside the Green Zone. '
    He transferred in a press statement that 'the ministry in coordination with the Iraqi government will send a technical delegation to choose a suitable site for his country's embassy to Iraq in the next few weeks', adding that 'the date of the opening of the embassy will depend on the selection of location and outfitted'.

  4. #4

    Re: The Dinar Daily, Thursday December 11, 2014

    Maliki's coalition government says Abadi future changes "extensive" investment law
    THU, DECEMBER 11 1 / DECEMBER 2014 10:18 J P
    User Rating: / 0
    Weak Good
    Twilight News / announced member of a coalition of state law, the Attorney Rubaie, the determination of the current Iraqi government headed by Haider Abadi, a large-scale changes in investment and structuring investment Institutions Act, to encourage foreign investors to invest in the country.

    Rubaie said in a statement, reported for "Twilight News", and he made ​​after the end of the meeting, "foreign investors in Iraq, which was held in the Emirate of Dubai, yesterday Wednesday, that "Iraq is a fertile ground for investment, and foreign investors can grow their investments for the privileged."

    He pointed out that "the new government, which was formed recently, trying to find a political, security and economic reforms, as well as the fight against corruption through practical mechanisms, including subsidized could be adopted in the amendment of the Investment Act and encourage investors."

    He called at the same time investors, to "not to believe some foreign media and Arabic, which is trying to undermine Iraq through the distortion of the image transparent," adding that he "submitted a request to the investors, inviting them to visit Iraq, and see the true reality of the size of the possibility of investing in Iraq ".

    For their part, according to the statement "Investors are promised to consider this request seriously."

    The General Secretariat of the Council of Ministers has urged the middle of last month, the Iraqi parliament on legislation, a number of laws, including the exemption of Iraqi and foreign companies implementing investment projects from taxes and fees, and embedding.


  5. #5

    Re: The Dinar Daily, Thursday December 11, 2014

    A member of the Parliamentary Finance: pay the dues of petrodollars after approving the budget
    Thu, December 11 1 / December 2014 09:43


    Said in a parliamentary finance committee member, said that "the rest of the oil-producing provinces dues amounts of petro-dollar exchange rate will be after the approval of the federal budget for 2015".

    The Council of Ministers approved in its meeting on the first Tuesday, "the Ministry of Finance release of the remaining half of the petro-dollar allocations approved by the Council of Ministers in the previous session in Basra province."

    He said Jabbar al-Abadi MP for the province of Basra told all of Iraq [where] that "part of the service and investment projects awaiting government Basra fulfill its financial obligations, and the disbursement of these receivables from petrodollars will move the wheel of development in the province."

    He pointed out that "the amount of petro-dollar exchange rate will be after approving the budget."

    The previous government of Prime Minister Nuri al-Maliki has been awarded last year, the amount of petrodollars and of five dollars for each barrel extracted from the oil-producing provinces after being withheld, including four dollars one dollar awarded, sparking anger and protest of local governments in those provinces, which called on the government to refrain from The decision to include the financial budget for 2014, the full amount of $ 5 petro project, but the decision did not apply to a failure to approve this Almoisna.anthy 2.

  6. #6

    Re: The Dinar Daily, Thursday December 11, 2014

    Allawi calls for the government to issue decisions and laws that serve the national reconciliation
    2014/12/11 06:20:03 AM
    BAGHDAD / Wi-News

    Deputy President of the Republic, Iyad Allawi, on the need to make decisions and clear laws that serve national reconciliation to rebuild the bridges of trust between citizens away from the sectarian impasse to achieve the principle of citizenship properly and effectively.

    This came during a meeting with a delegation of tribal leaders south of Baghdad, and a delegation of the security and defense committee of the British House of Commons and a group of members of the Iraqi Council of Representatives.

    The two sides discussed the latest situation through which Iraq and ways of joint cooperation between Iraq and the United Kingdom and cooperation with the tribes to fight Daash.

    For his part, tribal delegation to Allawi, said, "The State has an obligation backed by the clan and work to arming right and thoughtful manner to counter the threat Daash, and the tribes south of Baghdad was ready to cooperate with the current government, but it has to listen to the families of the proposals carefully in order to reach common solutions with the current government, the delegation also stressed the need to get a joint coordination between the army and people of the tribes. "

    She expressed optimism about the tribes to assume Allawi national reconciliation file to reunite the Iraqi people and it provides support for him in the national reconciliation. "

    For his part, the British House of Commons, the delegation said, "Our responsibility is to recognize the Iraqi situation of these areas accurately and to provide assistance to the Iraqi government and the Iraqi people in every way possible."


  7. #7

    Re: The Dinar Daily, Thursday December 11, 2014

    BackNewsIraq News
    US report talks about the restoration of Mosul and urges Iraq to enact a law before it
    THU, DECEMBER 11 1 / DECEMBER 2014 08:09 J P
    User Rating: / 1
    Weak Good
    Twilight News / brought to the newspaper "New York Times" American light on the US-Iraq dispute over the winter to launch an attack on the organization Daash in the city of Mosul, which suffer isolation by US raids and besieged Iraqi forces, despite US warnings months before the scheduled date for that attack.

    The newspaper quoted US officials as saying that a ground raid to restore the city of Mosul, Iraq's second largest city still has many weeks, according to schedule, and that the timing of the raid is subject to rapidly train additional Iraqi ground forces to restore the city, and also strength training remain in the city after the control, and also depends on the solution to the growing conflict between Baghdad and Washington on the readiness of the Iraqi army to carry out such a complex battle.

    The newspaper pointed out that the United States and its allies have carried out more than 660 strikes in Iraq, which is difficult for the "Daash" assembling a large number of fighters in one place or traveling in convoys, and that the air and ground strikes more made ​​it difficult for the organization re-furnish him with supplies and enhance the strength of armed men in Mosul, which was dominated by last June when he moved from Syria, making it one of its headquarters.

    But according to US officials quoted by the newspaper, there is not any evidence that the terrorists Daash lost their fighting spirit, as there are still thousands of them, despite the air strikes and ground raids carried out by the Iraqi army and Kurdish Peshmerga forces.


    Last edited by sczin11; 12-11-2014 at 09:33 AM.

  8. #8

    Re: The Dinar Daily, Thursday December 11, 2014

    Economic expert warns the government of manipulating stocks, Central Bank
    Date: 11/12/2014 12:46

    Information / special / .. warned an economic expert safety Smesim, on Thursday, the Iraqi government to withdraw any money from the central bank stocks, saying it would lead to the collapse of a large currency Mahlah.oukalt Sumaisem told / information / that "Iraq is going through a financial crisis significant result of the decline in world oil prices, which came in a game of America and some of the Gulf states, and this is what it may spur the government to try to withdraw money from the central bank to meet the shortfall, ".utalapt" The government and the concerned authorities not to harm the financial Balkhozan the central bank because it will lead to economic and financial problems of a large and a significant reduction the value of the local currency and the collapse ".odat Sumaisem government" to calculate the budget less than $ 60 per barrel in order to avoid the drop in oil prices during the current period, "indicating that" the government activate the taxes, fees and bond offering in the market to get better public inputs of the country ".ccant many political sources announced a large deficit in the 2015 budget due to lower world oil prices and access to the roof of $ 60 during the 25 days Almadian.anthy R.


  9. #9

    Re: The Dinar Daily, Thursday December 11, 2014

    Iraq and Kuwait will discuss economic issues

    BAGHDAD / obelisk: The face of Kuwait's ambassador in Iraq Ghassan Al-Zawawi, on Thursday, a call for example, has typically Deputy Prime Minister Nuri Shaways to visit Kuwait and discuss common economic issues, while Shaways praised the positive role of the Government and the people of Kuwait and its support to political changes and democracy in Iraq.

    Shaways said office said, "Deputy Prime Minister example, has typically Nuri Shaways met, in Baghdad, Kuwait's Ambassador Ghassan Al-Zawawi," noting that "During the meeting, they reviewed bilateral relations between Iraq and Kuwait, and discuss the best ways for enhancing them for the interest of both countries."

    The bureau said that "the two sides also discussed during the meeting to work Kuwaiti companies to invest and discuss their problems areas", adding that "the ambassador invited to Shaways to visit Kuwait and discuss common economic issues."

    The ambassador of Kuwait Ghassan Al-Zawawi, according to the statement, that "Kuwait supports the political process efforts and the fight against terrorism in Iraq because the unity, security and stability in Iraq is important for Kuwait as a neighbor and her sister," praising "the recent agreement between Baghdad and the region being considered a good start lay the foundation for the work productively in the future ".

    For his part, praised Shaways as "positive role of the Government and the people of Kuwait and its support to political changes and democracy in Iraq after the change in 2003," adding that "Iraq is always looking forward to the development of relations with Kuwait."

    The prime minister Haider al-Abadi said in (25 September 2014), that Iraq is linked to fraternity and an excellent relationship with Kuwait, referring to Iraq's desire to build positive relations with all countries of the world.

    It is noteworthy that the Kuwaiti Prime Minister Jaber Mubarak Al-Hamad Al-Sabah said in last September, Kuwait's keenness on the security and stability of the situation in Iraq, while Foreign Minister Sabah said he found an overwhelming response and sincere desire of the prime minister Haider al-Abadi to complete the files between the two countries.


  10. #10

    Re: The Dinar Daily, Thursday December 11, 2014

    Cabinet Secretariat directed the transfer of ownership of the "plane-Maliki" to Airlines
    2014/12/11 01:30:15 PM
    BAGHDAD / Wi-News

    General Secretariat of the Council of Ministers decided to transfer own former Prime Minister Nuri al-Maliki, the presidential plane ownership to Iraqi Airways.

    And got "Wi-News" on the document issued by the Cabinet Secretariat directed the Transport Ministry to take legal action for registration on behalf of Iraqi Airways, and the formation of a committee of experienced and competent to hold detected on the aircraft and install the unchanged reality, and show how to dispose of them.

    In the meantime, said a source familiar with the Ministry of Transport, in his speech to "Wi-News", "The ministry was addressed by Vice President Nuri al-Maliki's office to deliver the aircraft to the Ministry of Transport, but Maliki's office refused to do so, as the plane was registered in the name Nuri al-Maliki ".

    The source pointed out that the plane-Maliki received when he was prime minister of Iran, a subsidiary of the state of Iraq originally, and one of the planes that landed in Iranian territory during the 1991 Gulf War aircraft.

    The source continued, that the ministry was forced to address the Secretariat of the Council of Ministers to bring the plane to the ownership of Iraqi Airways, which need to dozens of aircraft to accommodate the growing demand for travel to and from Baghdad.


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts