The Dinar Daily, Tuesday December 30, 2014
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  1. #1

    The Dinar Daily, Tuesday December 30, 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, Tuesday December 30, 2014

    Currency Auctions

    Announcement No. (2856)

    The latest daily currency auction was held in the Central Bank of Iraq on the 30-12-2014 results were as follows:


    DETAILS NOTES
    Number of banks 18
    Auction price selling dinar / US$ 1166
    Auction price buying dinar / US$ -----
    Amount sold at auction price (US$) 202,672,000
    Amount purchased at Auction price (US$) -----
    Total offers for buying (US$) 202,672,000
    Total offers for selling (US$) -----

    ​Market Rate 1217

  3. #3

    Re: The Dinar Daily, Tuesday December 30, 2014

    Jubouri: Most of the laws initiated by the House of Representatives have not been implemented, including the Law 21




    [Baghdad - where] MP from the Union of Iraqi forces Ahmed al-Jubouri said on Monday, that most of the laws initiated by the House of Representatives have not been implemented, including the provincial Law No. 21.

    He said al-Jubouri told all of Iraq [where] that "It is not a lesson in the legislation of laws, but a lesson in the implementation of the content of the laws, including the Law of 21 for provincial councils," pointing to the importance of "centralization in some areas, including defense, oil and education security issues."

    He Jubouri that "expand the powers of the provincial councils will help local governments to speed up the completion of many projects," adding that "the issue of investment specific issue in most of the provinces, as a result of the absence of the broad powers it", calling for "Law 21 applied correctly without infringing on Rights Centre or provinces. "

    The prime minister Haider al-Abadi, had pledged on Monday, local governments of ten provinces at a meeting Fayalbesrh withdraw the appeal law provinces No. 21 for the year 2008 the rate that gives those governments broad powers and who was stabbed by the former Prime Minister Nuri al-Maliki before the Federal Court. It's over

    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%3D3374256&usg=ALkJrhiUGaBXj7TaN8U3lPkmTEOmJ0NzmA

  4. #4

    Re: The Dinar Daily, Tuesday December 30, 2014

    Barzani: Chinese companies to insure access to investment opportunities in Kurdistan



    Twilight News / praised the Prime Minister of the Kurdistan Region Naچarڤan Barzani China's decision to inaugurated General Consulate in Erbil, declaring the readiness of the region to receive Capital and Chinese companies, and assured them access to opportunities Work and investment in Kurdistan.

    A statement for the presidency of the provincial government responded with "Twilight News", that Barzani received, evening (yesterday) Monday in the capital, Erbil, Vice Minister of Foreign Affairs of the PRC Jank Mink and his accompanying delegation, which included the Chinese ambassador to Baghdad and a number of Diplomats and advisers.

    The statement said that the Chinese delegation said this is the first visit Delegation Chinese government at such a high level Visit the Kurdistan Region, pointing out it is the first time for the opening of the Chinese Consulate in another place outside of Iraq The Chinese Embassy in Baghdad.

    He added that the delegation noted that the city of Erbil joyful hand reconstruction deem advanced, expressing thanks to Barzani, for his willingness to attend the opening of the Consulate General of the People's Republic of China ceremony in Erbil.

    He also noted that the Chinese delegation explained that this year was for the region as a difficult year in which faced terrorist attacks, but he also said the people of Kurdistan was steadfast and counter terrorism.

    He also expressed The delegation, according to the statement of sympathy for the government and the Chinese people and their willingness to provide political and humanitarian support to the Kurdistan Region, pointing out that during the attack on the region, told the Chinese nationals and companies of the need not to leave Kurdistan.

    The delegation stressed that the Kurdistan Region is a rich country, pointing out that they are encouraging Chinese companies to invest in the areas of Infrastructure and superstructure in the Kurdistan region, according to the statement.

    The delegation also expressed his hope to be a consulate in Erbil impetus for the exchange of official visits between the two sides, and expressed China's readiness for cooperation and coordination in all fields, according to the statement itself.

    Barzani praised his part, China's decision to inaugurated Consulate General in Erbil, thanking the support and assistance from the people and the Chinese government to the people and the Kurdistan Regional Government, and in particular with regard to the issue of addressing Of terrorism which has become a serious threat to all humanity.

    Barzani also reiterated that the elimination of the "Daash" terrorist in Iraq and the end it can not be done by military means only, stressing to take effective steps away from the political side as well.

    He also explained that Alپeshmrگh managed to defeat the "Daash," adding that it needs to International support and support better and at the same frame Kurdistan is looking to benefit from the Chinese experience In this area.

    In terms of employment, investment, Barzani stressed that the Kurdistan Region ready Territory To receive Capital and Chinese companies, reassuring investors and Chinese companies access to opportunities Work and investment in the Kurdistan Region.

    He also hoped not to limit the relations between the Kurdistan region and the Republic of China on the People Political and economic level only, but includes all cultural and social fields as well.

    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%3D3374351&usg=ALkJrhhpz0RgZQe4F7HK7w0kpIhVvsyDgg

  5. #5

    Re: The Dinar Daily, Tuesday December 30, 2014

    Statement (the conclusion of trading in 2014 in the Iraq Stock Exchange)

    Announces the Iraq Stock Exchange administration conclusion trading sessions for the 2014 end of the last acts of the trading session on 12/29/2014.
    For further details please refer to Appendix

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  6. #6

    Re: The Dinar Daily, Tuesday December 30, 2014

    Parliament: the budget will be approved by easy and smooth manner and without the debates in the House of Representatives



    BAGHDAD - ((eighth day)) Revealed by the House of Representatives Secretary Baker expectations authenticates the House of Representatives on the federal budget for fiscal year 2015 smoothly without debates about the discussion in the Council.

    Bakr said that "the consensus within the House of Representatives and between the Council and the government, it is likely that you not debates about the budget, especially since the government and the House of Representatives realize well the importance passed as soon as possible to avoid any damages that may be located on the Iraqi people by the ratification delay."

    Baker added that "the House of Representatives may show technical observations on the budget in terms of the proportion of costs, resources, or the proportion of the deficit that may give rise to criticism by some MPs, but the final say is what the relevant parliamentary committees would be provided within the report."

    It is said that the House of Representatives held its extraordinary about the budget and has read the first reading and raise its board until the seventh of January 2015.


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  7. #7

    Re: The Dinar Daily, Tuesday December 30, 2014

    Erdogan in Baghdad early next month



    BAGHDAD - Iraq Press - December 30 / December:
    the determination of the Turkish government announced its chairman, Recep Tayyip Erdogan, to visit Iraq during the month of January next, noting that "the recent visit by Iraqi Prime Minister, Haider al-Abadi, to Turkey, saw the first contract Meeting of the Council of the high-level strategic cooperation between the two countries. "

    The deputy prime minister, Bulent Arinc, Turkish, said that "Erdogan is planning to visit Iraq early next January," Msttrda saying, "We are happy to development of relations with Iraq, we are his partners in the region, which is our neighbor and it is useful for both of us to be Relations State existing between us strong and solid. " Admiral ended


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  8. #8

    Re: The Dinar Daily, Tuesday December 30, 2014

    Zain Iraq : the launch of the third generation of a quantum leap in Iraq and will be early next year



    Alsumaria News / Baghdad - Confirmed Zain Iraq , on Tuesday, that the launch of the third generation will be a quantum leap in communications in Iraq in terms of workers in the field of high-speed Internet and communication, noting that it will be launched early next year in 2015.

    The company said in a statement, "Alsumaria News", a copy of the "received the launch of the third generation, which will hopefully be launched at the beginning of next year 2015 services will be a quantum leap in communications in Iraq," noting that "the company will begin a new way to go from super services that will be launched through the latest technology used by the company for this purpose in order that the fastest of the fast service for each of its subscribers in all parts of Iraq provide. "


    The company added that a "third-generation service is a qualitative leap in the world of services and, in particular high-speed factor in the Internet and communication field," indicating that it "will allow the joint continuous service without interruption and with high accuracy kept pace with the growing needs of the times for a large number of facilities that will make our world smaller and the most beautiful."

    The company followed the "signature Zain Iraq as a supplement to the Convention on the 3G with the media and communications as an important shift in the quality of services provided, which will benefit participants individuals or companies and what may result from the significant economic returns are beneficial to the country's economy," explaining that "this service launched by Zain Iraq at the start of the year 2015 will serve subscribers faster through sophisticated technology in order to have all its customers the possibility to use different applications without any obstacles. "

    The company confirmed that "Zain Iraq is keen to support the national economy and to remain a vital artery exudes opportunities for investment and work came the 3G service to support this trend."

    The Ministry of Communications signed in (November 20, 2014) signed a contract with Zain mobile phone to run third-generation, while believing that Iraq is very late in the subject of the generations that represent the modern techniques.


    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%3D3375073&usg=ALkJrhilsMgfFlvrax1ZZD8TaC2uLcCsOw

  9. #9

    Re: The Dinar Daily, Tuesday December 30, 2014

    Hamoudi, calling on the government to activate the fines and taxes to be distributed to displaced people


    Khandan - Description of the Presidency of the Council of Representatives member Hamoudi, the United Nations efforts to help the displaced people as "encouraging," noting that most of the international organizations to have another operation in efforts to provide assistance for the displaced operational problems.

    He called Hamoudi, in a statement, "Khandan" received a copy of it, the central government to the need to activate the theme of "fines and taxes for distribution to displaced people," stressing the need to invest energies displaced in order to alleviate their suffering and their livelihoods.

    He stressed member of the Presidency of the Parliament on "the need to take care of the displaced by specialists and clergy of all denominations in order to bring hope and vitality in the hearts of displaced people and encourage them to determine their own future."

    And appropriate solutions to address the IDP crisis, Hamoudi said, "The decline in oil prices hampered the efforts of some Gulf states that it intends to provide financial assistance for displaced people in Iraq," adding that "the solution can not only come from the Iraqi government in which they live is the financial crisis."

    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%3D3375165&usg=ALkJrhjnPnfJIrA8k3dLicneiqcS0yr3Dg

  10. #10

    Re: The Dinar Daily, Tuesday December 30, 2014

    The views in the activation of the Iraqi Strategic Cooperation Council of Turkish



    Description of the Foreign Relations Committee, House of Representatives member of the activation of the Iraqi Strategic Cooperation Council in Turkey's recent visit of Prime Minister to Ankara positive step after the cessation of his work since 2009.

    The MP said Rinas Gano in an interview with Radio Free Iraq that the activation of this council represents the first step to move the 48-frozen between the two countries concerning the security and economic situation.

    He said the security and defense committee in the House of Representatives member Majid Ghraoui that the reactivation of the strategic cooperation between Ankara and Baghdad Council will need to be the Turkish side to cut off its supply to the armed groups.

    And linking professor of international relations at the Faculty of Political Science, University of Baghdad, Anwar al-Haidari, the success of the activation of this Council seriously the two joint diplomatic work, calling on Iraq to take the United States as a guarantor of Turkish seriousness to succeed in the process of activating the Strategic Council.

    And saw a political analyst Mahmoud Hashemi said the president, who pay Baghdad and Ankara to activate this Council reason is international pressure on both countries to develop their relations because of the security situation in the region.


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