The Dinar Daily, Friday December 26, 2014
Page 1 of 10 123 ... LastLast
Results 1 to 10 of 91

Thread: The Dinar Daily, Friday December 26, 2014


    
  1. #1

    The Dinar Daily, Friday December 26, 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, Friday December 26, 2014

    Private / Government committed to fiscal and public debt management law at the adoption of the budget


    BAGHDAD - Iraq Press - December 26 / December: stressed economic advisor to the Council of Ministers, the appearance of Mohammed Saleh, said the government committed itself to the law of financial management and public debt in the preparation of the budget.
    Saleh said L / Iraq Press / "This commitment law makes it compulsory to deal with budget expectations wise and determine reasonable and moderate oil prices, which requires a minimum of oil prices adoption commensurate with the fluctuations that may appear in the global market in the next year," he said, adding that "enables Iraq from exporting 3.4 million barrels as planned in the previous year would pay a large part of the economic damage caused by the decline in world prices Maimthel the best solution to the current crisis. "
    He continued economic adviser that "Iraq depends on oil by up to 95% in conjunction with the quest for greater reliance on other resources and reduce unnecessary expenditures in state institutions and it is up to the parliament to vote on the budget and has the powers of all in terms of transfers between the divisions and the reduction of some of the doors except for the addition increase on the budget being exclusively the prerogative of the government. "

    http://translate.googleusercontent.c...cTiP3b3ixQ4PbQ



  3. #3

    Re: The Dinar Daily, Friday December 26, 2014

    Sarees: 5 petro dollars and constitutional entitlement to the oil-producing provinces of the text and the government abide by the



    History of edits:: 2014/12/26 10:39 •



    {Baghdad: Euphrates News} A member of the parliamentary finance committee Faleh sarees that "petro-dollars and five constitutional entitlement to the oil-producing provinces and the text of the government's commitment to him."
    He said in effect told {Euphrates News} Thursday that "petro-dollars 5 entitlement to the provinces producing oil but the country conditions experienced by because of lower oil prices the government has made that Atjolh in the budget," noting that "Basra is in dire need of {5} dollars what ails pollution, unemployment and others. "
    He added that "for that day has been allocated $ 2 per oil-producing provinces, and this generates an additional obligation on the state."
    And that "in the case of improved oil price must be for the provinces and the maturity of these provinces are given maturity of petro dollars 5".
    The "committee formed to rework some of the paragraphs of the general budget for 2015, decided to grant {2} petro dollars of dues to oil-producing provinces."
    It is said that the law's 21 governorates to ensure the allocation of five dollars to the provinces producing oil for every barrel of the product.
    And the voice of the Council of Ministers on 12 November last grant of $ Basra {one}, {is} the other four dollars for every barrel of debt owed by the federal government and .anthy h


    http://translate.googleusercontent.c...DAxtKL8HQFoXwg

  4. #4

    Re: The Dinar Daily, Friday December 26, 2014

    Iraq and Turkey sign a memorandum of understanding to launch a fair and equal amounts of water



    Editor Ali Jasim - Friday, 26 December 2014 11:43








    Alsumaria News / Baghdad
    The Ministry of Water Resources, said Friday that Iraq and Turkey signed a memorandum of understanding in the field of water resources management, and showed that it will launch under which Turkey fair and equal amounts of water to the rivers Tigris and Euphrates.

    The ministry said in a press statement, "Alsumaria News" received a copy of it, "Water Resources Minister Mohsen al-Shammari signed with his Turkish counterpart, a memorandum of understanding in the field of water resources management."

    The ministry added that "under a memorandum of Alinvahm requires Turkey to launch a fair and equal amounts of water to the Tigris and the Euphrates."



    The Iraqi Ministry of the Environment has warned, in (December 12, 2014), it is for an "environmental disaster" in the event of political continuation of Turkey and Syria for control in the waters of the Euphrates river through dams on the river, calling on the governments of Ankara and Damascus increase Iraq's share of the Euphrates River.

    It is noteworthy that Turkey has built 14 dams on the Euphrates River and its tributaries within its territory and eight dams on the Tigris River and its tributaries, Turkey and need several years to fill artificial lakes behind these dams, while established Syria five dams, three of which are large built in the mid-sixties, the Syrian government intends to create a dam Last north of Deir al-Zour, and this book dams billions of cubic meters of water.




    http://translate.googleusercontent.c...gDZy9nH_OJ-N7w


  5. #5

    Re: The Dinar Daily, Friday December 26, 2014

    Ebadi calls for Turkish companies to contribute strongly in the Iraqi market
    7:02: 12/26/2014


    Khandan - said Iraqi Prime Minister Haider al-Abadi, said that Turkish companies have been proactive in working in Iraq, calling on Turkish businessmen to participate strongly in the Iraqi market, noting that in Iraq about fourteen province, which is not a war and its doors are open for investment.

    H during a speech yesterday evening in the Iraqi-Turkish Business Council, which was held in Ankara in the presence of the Turkish prime minister and the participation of a large number of businessmen and investors, according to a statement issued by the Information Office of the devotional meeting.

    He spoke Abadi for investment opportunities in Iraq and legislative environment available and the law of the evolving and procedures encouraging to work investors investment, calling for banking cooperation between the two countries and the establishment of joint banks, Abadi promised to harass or assault on companies including Turkish companies operating in Iraq as an attack on the Iraqi people.

    The conference was opened by Iraq signed a memorandum of understanding in the field of water and signed by the Minister of Water Resources and his Turkish counterpart, also signed by the two foreign ministers Academy Aldblomasbh agreement between the Iraqi and Turkish.


    http://translate.googleusercontent.c...lF2Pz2DA7mPgLA

  6. #6

    Re: The Dinar Daily, Friday December 26, 2014

    Acceptance of the Securities Commission to include a number of money transfer in Iraq Stock Exchange companies


    December 23, 2014 9:32Source: Iraq Stock Exchange


    I got the approval of the Securities Commission on the Board of Governors decision to request the number of shares of remittance companies included below in the Iraq Stock Exchange, to provide a listing conditions required by the Securities Commission.

    http://translate.googleusercontent.c...EgdHe-B3WRmw7A



  7. #7

    Re: The Dinar Daily, Friday December 26, 2014

    Baghdad will send trillion and 200 billion dinars a month to the Kurdistan Region


    [9:26] 14 / Dec / 26






    Erbil كانون الاول / ديسمبر 26 (PNA) - Vice Erbil branch of the Central Bank of Kurdistan, that Baghdad will start from next month until the ratification of the Iraqi general budget said, sending a trillion and two hundred billion Iraqi dinars to Kurdistan.

    He said the cabinet secretary of the Kurdistan Region, Amanj Rahim monthly quota to the Kurdistan Region will continue until the ratification of the budget and then the region will receive a full share of the budget and regularly.

    He explained Deputy Director of Erbil branch of the Central Bank of Kurdistan Ahmed Khadr official website of the Democratic Party of Kurdistan, from next month, Baghdad will send a monthly budget to the Kurdistan region of a trillion and two hundred billion dinars until the ratification of the general budget of the quota.

    He said Khadr "the arrival of the amount mentioned facilitates the distribution of salaries and organizing process, and as president of the province, said the government is likely to end the problem of late payment of salaries over the next two months." He said in his Iamang on social networking, Facebook, supposed to be sent to Baghdad 1 12 of the region's share from 1 \ 1 \ 2015.


    And on the region's share of the budget says the secretary of the Council of Ministers of the region, according to the budget bill will be for the region dues of $ 16 trillion and 532 billion Iraqi dinars.


    http://translate.googleusercontent.c...Ej8Qzv6EwAqNtw

  8. #8

    Re: The Dinar Daily, Friday December 26, 2014

    Iraq and Turkey sign military and economic agreements

    By Raafat Alzerara Hours ago



    .

    Roudao - Erbil
    Signed Iraqi and Turkish governments, economic and military and security agreements during Iraqi Prime Minister Haider al-Abadi's visit to Ankara on the head of a large ministerial delegation.

    With regard to the economic aspect, Abadi said at a joint conference with Turkish Prime Minister Davutoglu, that "Iraq will begin to export five hundred thousand barrels of oil per day via the Turkish territory and the agreement to increase the quantity gradually."

    While Ihsanoglu, announced unlimited support and willingness to cooperate fully and security coordination and intelligence with the Iraqi side to chase elements of the "Islamic State" Daash, in their movement across the two countries and neighboring countries.

    The two sides agreed on military cooperation, particularly in relation to the training of Iraqi security forces in Turkey and equipped with weapons, as provided lists in this regard from the Iraqi side.

    And resulted in high-level strategic cooperation between the two countries Council meeting on understandings for cooperation and investment in water and energy and the various areas of development.

    He promised the Iraqi side of the Turkish counterpart remove a lot of what he described as bureaucratic obstacles in front of the Turkish companies working or wishing to work and invest in Iraq, the obstacles that have been developed under the previous government of al-Maliki.

    It is noteworthy that the two sides are seeking to develop their relations as it was before the government of former Iraqi Prime Minister Nuri al-Maliki, when he was trade between the two countries amounted to $ 12 billion.

    http://translate.googleusercontent.c...g7DbonE0iI1SXQ



  9. #9

    Re: The Dinar Daily, Friday December 26, 2014

    238 billion for next year's budget Communications

    Baghdad \ Center Brief for the Iraqi Media Network (IMN) - told the Minister of Communications, Center Brief that his ministry's budget for next year amounted to 238 billion dinars, of which 20 billion investment.
    The House of Representatives to hold a special session yesterday to read the budget bill, which is received from the prime minister, then for its own budget to the special day 7 next January after the completion of the army holiday celebrations.
    Hassan said Kazem's (IMN) "The Ministry's budget for next year amounted to 238 billion dinars, of which 20 billion investment, indicated that" the ministry is working to provide better service to the citizen through future projects. "
    The Ministry of Communications is working to extend the fiber optic network to more than one million landline phone line to provide technical services to the citizens (online - video calls and games).
    It is noteworthy that the Ministry of Communications signed a pre-contract service operation of third-generation (3G) with mobile phone operators (Zain - Asia torrent and Cork) last month, which will increase the effectiveness of telecommunications and Internet services in the phone.
    From: Ammar Ali

    http://translate.googleusercontent.c...A1VKPKHrHRTwuQ

  10. #10

    Re: The Dinar Daily, Friday December 26, 2014

    Zubaidi opens access for the transfer of next year, passenger baggage building measures











    Author: ka Editor: br Reporter:

    12/26/2014 11:11


    Tomorrow Press / Baghdad: Transport Minister Baqer al-Zubaidi opened access to transport passengers' luggage directly to Baghdad International Airport building measures, while stressing activating a number of projects in the coming period, such as Taxi Baghdad and river taxi to transport people and goods.
    He said Transport Minister Baqer al-Zubaidi in a press conference held in check in the object building near confident Square in Baghdad, attended by "tomorrow Press", "The opening of a sophisticated building a building entry procedures G2 which facilitates entry passenger baggage without the trouble is one of the offices and advanced buildings that operate served the for the traveler, "pointing out that" passengers will not Ieno with a service so if they wanted to go to this office and send their bags before or two days of travel to the desired state. "
    He said the "Ministry is going ahead to activate a number of service projects to citizens in Baghdad, activate Taxi Baghdad Project, which works on passenger transport from his home to Baghdad International Airport non-stop in addition to activating the taxi river project, which will provide many of the facilities the transfer of people and goods from several areas in Baghdad This is one of the important projects of this system are working with all the countries where the world collapsed there. "
    Zubaidi said that "The ministry will work on the opening of Abbas Ibn Firnas Square soon will experience all the developments that got to this place."
    For his part, Managing Director of the company GFC "This project was carried out by GFC company in Iraq, he said, one of the companies sober and Sechts this project to transfer bags before traveling trip by 24 hours and in this way facilitate the mechanism of travelers entering the airport without holding them the trouble of inspection is this building is the first in Rusafa and there will be a similar buildings in the Karkh district and also in the Green Zone. "
    "The amounts Satkadaha against the transfer of the bags will be $ 25 for a single traveler, and I think it is very suitable for all travelers."
    It is noteworthy that the transport sector in Iraq has suffered a lot of problems over the years, what is needed from the Ministry of Transport great efforts to improve the rate of this important sector vital.

    http://translate.googleusercontent.c...5ee2SgXl5tnflQ


Posting Permissions

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