The Dinar Daily, Thursday December 25, 2014
Page 1 of 6 123 ... LastLast
Results 1 to 10 of 59

Thread: The Dinar Daily, Thursday December 25, 2014


    
  1. #1

    The Dinar Daily, Thursday December 25, 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, Thursday December 25, 2014

    Currency Auctions

    Announcement No. (2852)

    The latest daily currency auction was held in the Central Bank of Iraq on the 25-12-2014 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$) 175,320,000
    Amount purchased at Auction price (US$) -----
    Total offers for buying (US$) 175,320,000
    Total offers for selling (US$) -----
    Market Rate 1220
    Last edited by sczin11; 12-25-2014 at 10:02 AM.

  3. #3

    Re: The Dinar Daily, Thursday December 25, 2014

    Sheikh Mohammed al-Abadi signed the budget and stressed the need for a vote in Parliament


    Khandan - The Vice President of the House of Representatives Aram Sheikh Mohammed, the prime minister Haider al-Abadi took place this morning on the draft federal financial budget bill and sent it to the House of Representatives, noting that al-Abadi told him during a telephone conversation the need for a vote in the House of Representatives after a consensus among the parliamentary blocs get.

    He said Sheikh Mohammed, in a statement, "Khandan" received a copy of it, that al-Abadi, "said in a telephone interview that he had signed the morning of the draft Aloizna law, and the project is now on the way to the House of Representatives," noting that "al-Abadi stressed by contacting the need to expedite the vote After it for compatibility between the parliamentary blocs. "

    He said the "Abadi urged the House of Representatives to continue to cooperate with the Council of Ministers in order to move towards reforms and financial austerities for the benefit of the Iraqi people."

    http://translate.googleusercontent.c...mYUglZ2eVTdl0Q

  4. #4

    Re: The Dinar Daily, Thursday December 25, 2014

    Urgent .. Vice: The government will withdraw the appeal from the provincial law



    [Baghdad-where]
    National Alliance MP Ali Keywords said on Thursday that the government intends to withdraw her appeal submitted to the Federal Court on the provincial Law No. 21 as amended in 2008.itba

    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%3D3361458&usg=ALkJrhg5e2qi5qJMoZTTFa-78hgbbkqLAA

  5. #5

    Re: The Dinar Daily, Thursday December 25, 2014

    Investment Authority offered a proposal to activate the private sector







    BAGHDAD - ((eighth day))
    The government plans to issue a package of economic laws that would facilitate investment operations, and activate the private sector.

    The deputy secretary general of the Council of Ministers of Economic and Financial Affairs Obaid replace the "Investment Authority made several proposals and draft laws to the Council of Ministers would activate the private sector and encourage investment," noting that these proposals relate to "measures of tax and customs and granting investment licenses and allocation of land and reduce bureaucracy to shorten the time." .

    He replaced that "stimulate the private sector and activating the role of investment in the country need a series of decisions and steps, including legal and procedural."


    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%3D3361260&usg=ALkJrhgaBpfX75jhkg6KOtg5igiFhj4aKw

  6. #6

    Re: The Dinar Daily, Thursday December 25, 2014

    Urgent: the start of the special session of the House of Representatives to discuss and approve the General Budget Law 2015 Acts -

    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%3D3361326&usg=ALkJrhiq0o76HZ9_3PxZOgQzBcw2-091dg

    AND

    The start of the emergency meeting of the House of Representatives on the budget



    The start of the emergency meeting of the House of Representatives on the budget

    To be continued ....

    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%3D3361387&usg=ALkJrhi2yUWFDNwF_PDzli8IXQ-tI6jJKA


  7. #7

    Re: The Dinar Daily, Thursday December 25, 2014

    Parliament resumes held its extraordinary presence of 208 deputies



    Parliament resumes held its extraordinary presence of 208 deputies


    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%3D3361498&usg=ALkJrhgRv-QmRseMuhNFnZGfFW6kTQP28Q

  8. #8

    Re: The Dinar Daily, Thursday December 25, 2014

    Deputy for the National announces the submission of a request for the presidency of parliament to activate the law of the provinces



    [Baghdad-where]
    MP announced the Iraqi National Alliance Juma Bahadli, that a group of members of the House of Representatives have made a request to the Presidency of the parliament to activate the provincial Law No. [21] for the year 2009 average.

    He Bahadli told all of Iraq [where] that "the new Iraqi government is serious in building Iraq, change and Submit the services to citizens, and that the House is serious advancement reality service legislation and laws and monitor all violations."

    The House of Representatives passed in its former provincial Law No. [21] for the year 2008 the rate at which provides for the expansion of the powers of local governments and that governments be responsible for all the requirements of the administrative unit management in accordance with the principle of administrative decentralization and the exercise of local government powers prescribed in the Constitution and federal laws in matters local, except for the exclusive powers of the federal authorities, for their part the previous government proceeded to challenge the law in Federal Court.

    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%3D3361556&usg=ALkJrhi62OlAYIR3sQ1XfocRusnLVFRPng

  9. #9

    Re: The Dinar Daily, Thursday December 25, 2014

    Infallible hope that the new year will be full of victory and capping of achieving national reconciliation



    Infallible hope that the new year will be full of victory and capping of achieving national reconciliation


    Free - Across Iraqi President Fuad Masum, expressed hope that the new year in Iraq-year track record victory over the terrorist challenge and capping of achieving national reconciliation and the completion of the process of purification of the atmosphere with the neighboring countries and the region on the basis of common interests and years for the completion of corruption in the state apparatus and to continue to build and deliver the services that the long-awaited .. He pointed out that Iraq is about to turn the painful year And harsh.

    President Masum said in a speech addressed to the Iraqis' As we welcome a new year with confidence and hope for the future, we turn the year was painful in the back of the cruel suffering of millions of Iraqis who have lost loved ones martyrs at the hands of Daash criminal gangs and let go of the pain of those who have been displaced from their homes and their towns and are still live in the hope of meeting their loved ones abducted by criminals and Gebouhm '.

    He pointed out that what the fates of many of them remain unknown with regret '.. explaining it the suffering of all Iraqis of different constituents and towns which suffering was in one of their faces has united the Iraqis, both in sentiment or in the position of terrorism or in joint action in order to achieve national unity and work on the liberalization of our cities and purge the country of the Aziz Conception terrorism and the effects of his crimes.

    He infallible that the center of this charged challenging environment 'forces people succeeded in achieving a good deal of national understanding administrator and managed through the formation of a government with national consensus and ensures for the implementation of an agreed program would achieve national reconciliation and root secure building materials and achieve security and the fight against corruption and face Finance and Economy in exceptional circumstances difficult problems'.

    He said 'We have also managed to keep the world in front of a picture the terrorist challenge, which exceeded the danger limits threat Iraq alone to put Pat constitutes the real source of threat to the region and the world and this provided an atmosphere appropriate for understanding and achieving remarkable affinity with many of the neighboring countries also achieved many responses from The international community has contributed to strengthening the military and national security effort in the war on terrorism and has helped so much and that alleviate the suffering of the victims of terrorism through logistical support we have received from our friends in the international community in solidarity with us. '

    President infallible and added, 'We look forward to the new year to be a busy one victory unfinished on the terrorist challenge, a triumph began Talaúah looming in recent weeks at the hands of our fighters heroes in their liberation of a number of towns and villages of the dominance of terrorism ..

    We look forward to be this year has been crowned the achievement of national reconciliation on the basis of national understanding and deep administrator .. and years to complete the process of purification of the atmosphere with the neighboring countries and the region on the basis of common interests and to serve and enhance the stability of our region, progress and keeps them from the evils of terrorism and crimes .. and years for the completion of corruption in the state apparatus and to continue to build and deliver the services that the long-awaited.
    Look great responsibility for such tasks and look forward with hope and confidence in order to achieve them.Let's together, the people and the authorities and political forces to life worthy of Iraq and Iraqis. "

    President infallible and congratulated the Christians in Iraq and the world on the advent of the Christmas and New Year .. He said 'receives world early new year and reliving the birth of Jesus Christ and are Manasptan tasks in life and humanitarian travel pleased with them to extend our congratulations and wishes of our people and for humanity as a whole new year Amer goodness, love and peace .. Let God with us and Iraq. '

    Iraq has witnessed during the current year difficult security situation in terms of security and military operations are continuing to expel the organization 'Daash' areas that spreads the provinces of Nineveh, Salahuddin and Diyala, Kirkuk, while operations continue in Anbar to meet the organization as the international coalition performs air strikes targeting the organization sites in different areas of those provinces .. which also displaced more than two million Iraqis from their areas to escape the ongoing where the insurgency between Iraqi security forces and militants Daash Amnesty International said yesterday that these people lack access to the basic components required for survival .. She pointed out that a delegation of its delegates just returned from a visit to the 'Kurdistan region' after he found that many of the displaced people lack access to basic ingredients needed for life, such as winter blankets, warm clothes and heating Thousands living in poorly equipped or in informal settlements in extremely harsh conditions of the camps.


    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%3D3361557&usg=ALkJrhh1wNVJc59bFkOuj1UHY0kzm2hy9g

  10. #10

    Re: The Dinar Daily, Thursday December 25, 2014

    MP: approving the budget will be during the first half of next month





    BAGHDAD - ((eighth day))
    Through the MP for mass citizen Hassan Khalati the hope that the special meeting of the parliament held for the day and that is to vote on the budget in terms of Alambda.mhiro that approval will be on the most during the first half of next month.

    A parliamentary told Lord's ((eighth day)) that "the constitutional and legal corridor for approving the budget in the event of arrival of the special hearing begins first reading by financial and legal committees without debate and without making any amendments to the first reading with the vote in principle to accept it without going into the details. "

    He Khalati "The second phase is given a period of time at least 4 days another session exceptional in order to provide the wants of comments to the competent committees and which offers these suggestions and the rest to the relevant committees and then submitted to the Finance and Legal Committee report regarding the draft budget law."

    He explained, "then read a second reading and discussions with the report, and then that will be different views on transfers in the doors and then they can be for another session for a vote paragraph by paragraph.".

    On the date of the final vote Khalati stressed that "with the atmosphere of political harmony do not think it will be delayed approval and disagreement about the technical aspects and approval will be the most in the first half of next month.". (AA)

    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%3D3361561&usg=ALkJrhhizgxHm47DIlwQgJlRR6fVyZhP6A

Posting Permissions

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