The Dinar Daily, Wednesday December 17, 2014
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  1. #1

    The Dinar Daily, Wednesday December 17, 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 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″..

    __________________________________________________ ______________

    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 December 17, 2014

    Currency Auctions
    Announcement No. (2845)


    The latest daily currency auction was held in the Central Bank of Iraq on the 17-12-2014 results were as follows:








    DETAILS NOTES
    Number of banks 14
    Auction price selling dinar / US$ 1166
    Auction price buying dinar / US$ -----
    Amount sold at auction price (US$) 153,425,000
    Amount purchased at Auction price (US$) -----
    Total offers for buying (US$) 153,425,000
    Total offers for selling (US$) -----




    Market rate 1197

  3. #3

    Re: The Dinar Daily, Wednesday December 17, 2014

    Parliamentary Legal: Peshmerga will be covered by the National Guard Law


    MP Ibtisam Hashim


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    Author: Editor: br reporter: na Number of Views: 88
    12/17/2014 13:22
    Tomorrow Press / Baghdad confirmed member of the Legal Committee in the House of Representatives MP Ibtisam al-Hilali, Wednesday, that the National Guard will soon be law to the House of Representatives of the government, indicating that the Peshmerga forces would be covered Guard law and subject to all laws.
    She Hilali for "tomorrow Press", "The National Guard Act will reach the parliament after the legislative recess and he does not devote any sectarian and protects all of Iraq's provinces," indicating that "the purpose the foundation of the National Guard is to fight Daash not stay Sunni province."
    "The National Alliance in particular would not agree to guard the law provided that they are his leadership, however, the center government, as well as to guard the law will also include the Peshmerga forces."
    Hilali and showed that "if we found that the mechanisms of the law does not give the power to the Center of the National Guard Administration, it would be our position on the law."
    It is noteworthy that the theme of the National Guard and find the intricacies of the law by some of the House of Representatives since put Prime Minister Haider al-Abadi with assuming his official duties.

    http://translate.googleusercontent.c...BvR7wp3gAgzPJA

  4. #4

    Re: The Dinar Daily, Wednesday December 17, 2014

    Abadi's office confirms the convening of a special session of the Council of Ministers tomorrow to vote on the budget


    A spokesman for the office of Prime Minister Saad al-Hadithi ..


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    Author: Editor: br reporter: na Number of Views: 102
    12/17/2014 13:23


    Tomorrow Press / Baghdad: spokesman of Prime Minister Saad al-Hadithi office, Wednesday, that the Council of Ministers will be held on Thursday a special meeting to vote on the budget and send it to the House of Representatives, while pointed out that the Prime Minister will visit next week, the State of Kuwait to support Iraq in its war against Daash.
    A newborn for "tomorrow Press", "The Council of Ministers will be held on Thursday, an extraordinary session of the General Budget Law in order to create a final version to be passed and then sent to the House of Representatives for a vote."
    Sabri pointed out that "Abadi will visit Kuwait, next week, a visit Abadi second Bay aims to enhance cooperation and strengthen relations and coordination, as well as research support that can be provided by Kuwait to Iraq to face Daash."
    He added that "Iraq will also coordinate with Kuwait to dry up the sources of financial and intellectual terrorism, in addition to discussing the economic crisis experienced by the soothsayer due to the drop in oil prices," noting that "the Gulf countries could play a role in supporting Iraq at this particular time military support weapons and equipment, also can discuss this matter with Kuwait during the visit of Prime Minister Haider al-Abadi. "
    He pointed out that the newborn "There is an important topic he will present Abadi on Kuwait, which Iraq postpone the payment of reparations to Kuwait because of what is going through an economic crisis and there is a preliminary approval by Kuwait to defer compensation amounting to $ 4.6 billion."
    It is noteworthy that the heads of the three presidencies Fuad Masum, and Haider al-Abadi and Salim al-Jubouri, who had pledged during the election for the office, according to their programs to fight corruption and punish corrupt and clean government departments and institutions of them, as they pledged to open a new page in relations with neighboring countries and regional countries and the rest of the world in accordance with the requirements of the interests of Iraq According to the directives of the Supreme religious authority in Iraq.

    http://translate.google.com/translat...DCQmSGoAoPWe0Q
    Last edited by sczin11; 12-17-2014 at 12:16 PM.

  5. #5

    Re: The Dinar Daily, Wednesday December 17, 2014

    Parliamentary Legal reveal (7) of the Federal Court Act differences crashes

    Confirmed by the Parliamentary Legal Committee Ibtisam al-Hilali's offer of the Federal Court Act for the second reading is still delayed because of differences of political blocs.


    Hilali said in a statement reported for ((eighth day)) that "the Legal Committee received a number of proposals to amend the Federal Court Act, hoping to be included in the second reading later."


    She Hilali that "the legal age for judges and benefits they receive and the number of advisers and members of the Quorum of the Federal Court and the compatibility of Islamic law scholars and legal experts are among the dispute over the Federal Court Act hubs".


    They pointed out that "there is controversy parliamentary sharply on the power of the veto power / power / between law scholars and judges, as well as the proposed quorum of the members of the Federal Court between being nine judges or 11," indicating that "the government will be the mechanism for appointment of judges of the Federal Court, according to the law by the nomination of the greatest judges We are not scholars of law. "


    The Cabinet yesterday approved a project of the Federal High Court Act and the amendment of Article / 12 / of the project to be a two-thirds quorum in the presence of members of the Court. (AA)


    http://translate.google.com/translat...3Fid%3D3336335

  6. #6

    Re: The Dinar Daily, Wednesday December 17, 2014

    Minister of Sciences and Technology: Iraq plans to launch a satellite for economic purposes



    Minister of Sciences and Technology in the Iraqi government Knight Yusuf, said on Wednesday, that his ministry began applying to launch a satellite project for economic purposes under a plan aimed at providing information to the rules of the ministries (agricultural, water resources, the environment).


    Yusuf said that "the step adopted by the ministry down to the launch of the satellite, which includes two tracks, the first preparation of human capacity that will work on the satellite, the second track is to move the implementation of measures that precede Overture countries manufacturer of satellite operation."


    The minister pointed out that "Satellite II will be more responsive to economic requirements, and will be able to answer all questions and agricultural ministries of environment and water resources, we will aim of satellite identification of land desertified areas, and control of air pollution, and conduct surveys ongoing agricultural land, these measures can not be carried out through the human potential, it needs to Kqmr industrial technology to accomplish. "


    And Joseph, "we will ask the relevant ministries to provide us with the required information obtained from the satellite, and we will work to include those demands specifications of the satellite before approaching the industrialized countries of satellites," adding that "the cost of the satellite will be determined after you provide ministries Bahtiajtha for databases that will be provided Satellite ".


    http://translate.google.com/translat...EpGy7nGX8hBknA

  7. #7

    Re: The Dinar Daily, Wednesday December 17, 2014

    Abadi's office confirms that the budget will be approved as soon as possible


    Abadi's office confirms that the budget will be approved as soon as possible


    17-12-2014 12:58 PM
    Free -
    The spokesman for the Prime Minister's Office tributary Jabouri, Wednesday, that the 2015 budget will be approved as soon as indicating that the ministerial committee set up by the Council of Ministers is working to squeeze costs and increase non-oil resources.


    Jabouri said in a televised statement that 'as soon as the budget will be approved and that the Council of Ministers held an extraordinary two sessions regarding the budget and there was an intention to approve before the end of the legislative term of the parliament.'




    He said in a statement through a program aired by Alsumaria that 'the process of agreeing on the price of oil placed on Kan budget is not easy', noting that 'the ministerial committee set up by the Council of Ministers is working to squeeze costs and increase resources is dependent on oil. "


    The Prime Minister's Office said Haider al-Abadi, on Tuesday (December 16, 2014), the Council of Ministers to discuss the ongoing state budget project.


    It is noteworthy that Abadi office said, in (November 29, 2014), the Council of Ministers formed a ministerial committee to determine cut expenses all ministries in order to reduce the budget deficit in 2015, and that the Committee will submit its recommendations within a week to address and reduce the projected deficit.


    http://translate.google.com/translat...3Fid%3D3336346

  8. #8

    Re: The Dinar Daily, Wednesday December 17, 2014

    60 local companies compete to get a job with Luke Weil oil company
    Wednesday 17 December 2014 - 14:30 Write a comment




    For partnership and development work in the oil field made more than sixty local company and the various disciplines registered in the Federation of Iraqi Industrialists in Basra province to register on the website of the company Lukoil oil.


    The head of the Chamber of the Union of Industrialists in Basra province, Majid Rchk during a joint workshop with Lukoil was held this morning in MM Pasha Hotel and was attended by a reporter Radio tow that "the purpose of the joint seminar with Lukoil is to involve discreet and qualified in the industrial field with international companies companies operating in the province. "


    Rchk pointed out that "eligible to compete and work with global companies mentioned through communication with those companies through seminars, workshops, and then engage in a competitive process and service and development of the province of Basra 60 companies."


    For his part, the Managing Director of the Press Bourne Abdul-Mahdi al-Amiri reporter Radio tow that "required of international companies operating in the province of Basra is that thinking in the development of the industrial sector and local companies in Basra, where she Enlargement in the work of the problems that might hinder their work as it provides work for hands Iraqi labor. "

    He demanded that the Ameri central government supports the Iraqi trader to enter a foreign competitor for by raising taxes and fees that accompany the entry of raw materials so that the Iraqi trader of foreign competition, according to his speech.


    To that noted director of regional relations for the company Lukoil Vitaly Nerjolov that "the main objective of the joint workshop with the Iraqi industrial side is to provide local and relevant goods of high quality for his company the fact that the last trust the ability of the local Iraqi side in meeting the needs of business requirements that you need his company."

    http://translate.google.com/translat...WoD4fBsSWvo4ZQ
    Last edited by sczin11; 12-17-2014 at 12:40 PM.

  9. #9

    Re: The Dinar Daily, Wednesday December 17, 2014

    The announcement of a special meeting tomorrow to the Council of Ministers to discuss budget


    The announcement of a special meeting tomorrow to the Council of Ministers to discuss budget


    17-12-2014 02:40 PM
    Free -
    An informed source, on Wednesday, revealed that the Council of Ministers will be held on Thursday an extraordinary session to discuss the 2015 budget.


    The source said in a press statement that 'the Council of Ministers will be held on the evening of Thursday, an extraordinary session to discuss the draft budget for 2015'.


    The source, who asked not to be named, told Alsumaria News that 'this session comes to complement the discussions on the budget.'


    The spokesman for the Prime Minister's Office tributary Jabouri said, on Wednesday morning (December 17, 2014), the 2015 budget will be approved as soon as indicating that the ministerial committee set up by the Council of Ministers is working to squeeze costs and increase non-oil resources.


    The Prime Minister's Office said Haider al-Abadi, on Tuesday (December 16, 2014), the Council of Ministers to discuss the ongoing state budget project.


    It is noteworthy that Abadi office said, in (November 29, 2014), the Council of Ministers formed a ministerial committee to determine cut expenses all ministries in order to reduce the budget deficit in 2015, and that the Committee will submit its recommendations within a week to address and reduce the projected deficit.


    http://translate.googleusercontent.c...A_bhkhHk1H1gWA

  10. #10

    Re: The Dinar Daily, Wednesday December 17, 2014

    Shares of the company increase the Bank of Babylon and the inclusion of its launch in the trading session as of Thursday, 18/12/2014
    December 17, 2014 11:08Source: Iraq Stock Exchange


    The capitalization of shares amounting to include (28859273334) shares will be launched in the trading session as of Thursday, 12/18/2014 implement the decision of the general body meeting held on 02.15.2014 the capital increase of 150 billion dinars to (178 859 273 334) billion dinars in accordance with Article ( 55 / I and II) of the Companies Act.
    Source: Iraq Stock Exchange

    http://translate.googleusercontent.c...lJs3p0Rvrno5yg

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