The Dinar Daily, Wednesday December 31, 2014
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  1. #1

    The Dinar Daily, Wednesday December 31, 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 31, 2014

    The latest daily currency auction was held in the Central Bank of Iraq on the 31-12-2014 results were as follows:

    DETAILS NOTES
    Number of banks 19
    Auction price selling dinar / US$ 1166
    Auction price buying dinar / US$ -----
    Amount sold at auction price (US$) 190,311,000
    Amount purchased at Auction price (US$) -----
    Total offers for buying (US$) 190,311,000
    Total offers for selling (US$) -----

    MARKET RATE 1217

    Last edited by sczin11; 12-31-2014 at 01:59 PM.

  3. #3

    Re: The Dinar Daily, Wednesday December 31, 2014

    Collect taxes from citizens after the adoption of the budget in the House of Representatives

    Download tax












    31/12/2014 12:51




    Tomorrow Press / Baghdad: Parliamentary Finance Committee revealed Wednesday that the imposition of taxes on certain goods begins after the approval of the draft budget in the House bill, saying it would host next Saturday Finance Minister Hoshyar Zebari, in order to explain things in detail.

    The committee member said Jabbar Abdul Khaliq for "tomorrow Press", "The tax would be imposed include the balance of communications companies (20%) on the purchase of cars by 15%," explaining that "the tax to be imposed after the adoption of the budget law will be on the tickets but did not specify After the increase. "
    He explained that "the budget bill gives the right to the Minister of Finance to issue instructions to determine the percentage of taxes on airline tickets, which invited the Committee to host next Saturday to explain these instructions."
    The Iraqi government approved in December 23, the current first draft budget law for 2015 and identified a $ 123 trillion Iraqi dinars at a rate of deficit 23 trillion dinars, and the price of $ 60 per barrel of crude oil.


    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%3D3378063&usg=ALkJrhjtETXPZAu3lJIJ7QjL4aXHU9K5Yw


  4. #4

    Re: The Dinar Daily, Wednesday December 31, 2014

    Asiacell launches tomorrow, the third-generation service and announce that it has spent billion dollars to update the system



    Wednesday 31 December 2014 11:33











    Alsumaria News / Baghdad
    Asia torrent announced Wednesday the company, it will launch the third generation service on Thursday, as indicated it has spent more than a billion dollars to update the system, confirmed that the service will offer speeds of up to 21 MB / second.

    The head of the Council of the Department of Asian torrent Faruk Mustafa Rasool said in a statement received "Alsumaria News", "The company will launch on Thursday, and in conjunction with the New Year, the third-generation service," noting that it "has spent more than a billion US dollars to modernize its licenses for Services The third generation of additional spectrum. "


    He Messenger "This is a major indicator of the company's investment of large sums in order to keep up with the best market competitive telecommunications in Iraq ", adding that" at Asiacell ability to reach speeds of 4G / LTE soon as the infrastructure of telecommunications in Iraq is improving continuously ".

    He Messenger "The third generation will provide speeds of up to 21 MB / second, which will enable subscribers browse the Internet easily by downloading applications and modern games, watch TV channels and enter your e-mail accounts theirs on their smart phones more quickly than they used to do ever."

    Confirmed Zain Iraq, on Tuesday (December 30, 2014), that the launch of the third generation will be a quantum leap in communications in Iraq in terms of high-speed factor in the field of Internet and communication, noting that it will be launched early next year in 2015.




    http://translate.googleusercontent.c...1kICUwzcbUnyew


  5. #5

    Re: The Dinar Daily, Wednesday December 31, 2014

    2015 budget closest financial and economic case for Iraq


    December 31, 2014 11:52Last Updated: December 31, 2014 11:52



    Contract Finance Minister Hoshyar Zebari yesterday evening at the ministry's headquarters press conference on the draft budget, financial and economic situation in the country law.
    According to the ministry's website minister stressed that the government and the ministry has fulfilled its obligations and commitments to the Council of Representatives and citizens to submit a draft budget to parliament before the end of 2014, and said that this budget is realistic budget which is closest to the reality of the financial and economic situation in the country.
    The Council of Ministers held the ministerial committee several amendments thereto, as Parliament appealed committees allocative adoption of the budget law after studying at the beginning of next year, so that the government and the ministry to control the revenues and expenses and to begin work on the provision of the proposed revenues to bridge the fiscal deficit and provide basic services to citizens.
    Mr. Minister of Finance and appealed to all ministries and agencies in collaboration with the financial instructions contained in the publication Accounting Department to stop the end of the fiscal year exchange 31/12/2104, according to the law of financial management and public debt.
    The Minister explained the challenges faced by the Iraqi economy in 2014, the lack of liquidity as a result of terrorism organization Daash and expenses of defense and fronting the vitality and the drop in oil prices in world markets.
    The proposed government measures also explained to finance the deficit and financial gap of national savings and assets retained and SDRs and the issuance of foreign bonds and public debt through the legal reserve banks and treasury transfers from the Trade Bank of Iraq and issuing money orders treasury government banks.
    He said the Minister that the Government will provide a budget for 2014, and will serve as a financial statement on the actual income and expenses and aspects of exchange in the first half of next year, and the student concerned ministries of electricity, municipalities, and the secretariat of Baghdad, the importance of revenue collection and organization.


    http://translate.googleusercontent.c...-1OavHs1fc3vSg





  6. #6

    Re: The Dinar Daily, Wednesday December 31, 2014

    Parliamentary ages: the application of provincial law will give unlimited powers to local governments



    History of edits:: 2014/12/31 11:01
    25 visits readable


    {Baghdad: Euphrates News} According to a member of the Commission services and ages parliamentary application provincial law will give unlimited powers to local governments.
    Said committee member Mohammed Darraji told {Euphrates News} on Wednesday that "the law of 21 rate needs to be reviewed because of the existence of financial obligations between the central and local government," adding that "if the application of this law on the ground will give the powers of local governments more powers in the United States, British and Swiss. "
    The cabinet decided during its regular Tuesday to abolish the Council of Ministers Resolution No. 1 of 2014 and the General Secretariat of the Council of Ministers / legal department to take the necessary procedures to withdraw the appeal Amendment Act governorates not organized Act province No. 21 for the year 2008 before the Federal Supreme Court, and the Supreme Coordinating Committee for Refugees the provinces to re-examine the Amendment Act above within thirty days and propose the necessary adjustments to achieve harmony and smooth flow of work between the central government and local authorities in accordance with the principles of the Constitution .anthy m

    http://translate.googleusercontent.c...pCecmc_awDz5LA

  7. #7

    Re: The Dinar Daily, Wednesday December 31, 2014

    Iraqi parliament discusses the 2015 budget next Wednesday...





    Click for full view:













    31-12-2014 10:05 AM

    Parliamentary Finance Committee unveiled a proposed budget to meet the 2015 which will be discussed in the House of Representatives on Wednesday deficit governmental mechanisms.
    The committee member said Hossam punitive that the total of 25 Trliuna deficit and 401 billion dinars will be handled by national savings amounts to employees, and assets retained and Special Drawing Rights.
    He said he will Eurobond issuance of public debt and the issuance of bonds, loans and remittances treasury of government banks, indicating that the taxes on Kartat mobile and online buying cars and tickets also will fill part of the deficit.

    http://translate.googleusercontent.c...xNYVe5zqgzbyMA




    f

  8. #8

    Re: The Dinar Daily, Wednesday December 31, 2014

    Book Iraq Stock Exchange (Acknowledgement) to the Department of Electronic Systems


    December 28, 2014 6:40Source: Iraq Stock Exchange
    More Sharing Services






    Based on our No. 2274 12/28/2014 in advance of the Iraqi market for securities administration Bashla and appreciation to the electronic systems of the efforts of the department before you do wrong in the development of electronic trading and working with Project X-stream system and the implementation of the tasks entrusted to you the commitment of high-director.
    More details are provided in the attached file


    http://translate.googleusercontent.c...R_T-MrhzoojRRA



  9. #9

    Re: The Dinar Daily, Wednesday December 31, 2014

    sczin11- IS IT TOMORROW, DEC 31 OR NEXT WEDNESDAY, JANUARY 7?

    Parliamentary Finance reveal governmental mechanisms to address the budget deficit

    • Agency eighth day
    • December 31, 2014, 13:15




    BAGHDAD - ((eighth day))

    Parliamentary Finance Committee unveiled a proposed governmental mechanisms to bridge the budget in 2015, which will be discussed in the House of Representatives on Wednesday deficit.

    The committee member said Hossam punitive "The total of 25 Trliuna deficit and 401 billion dinars will be handled by national savings amounts to employees, assets and retained, and the rights of private clouds."

    "It will also be Eurobond issuance of public debt and the issuance of bonds, loans and remittances treasury of government banks," noting that taxes on Kartat mobile and online buying cars and tickets also will fill part of the deficit. "


    http://translate.googleusercontent.c...8XSstOX8_Ts3DA

  10. #10

    Re: The Dinar Daily, Wednesday December 31, 2014

    sczin11- Are these changes something done today, yesterday, or for Saturdays announced meeting? Talk about confusing..

    Clarification of the official spokesman for the Presidency of the Republic



    12/31/2014 13:49:00



    Presidency

    A joint meeting of advisers of the President of the Republic and the Office of the President and the Finance Committee in the House of Representatives represented with Dr. Magda Tamimi, a member of the Committee, where he discussed the implications of the proposals for balancing the presidency and has been removed some circumstances and dilemmas in the budgets of the Vice-President of the Republic and reported by the media, where the amendments to budgets and submit them to the House of Representatives for the purpose of adoption.
    And characterized the discussions at this meeting are friendly, and we did all due respect to Dr. al-Tamimi.

    Khalid Huani
    Spokesman for the presidency

    http://translate.googleusercontent.c...RwAEvQPfhBT6LQ



    AND


    Presidency announces the removal of "some of the problems" in the budgets of the Vice President



    Editor Alaa Hassan - Wednesday, 31 December 2014 13:38










    Alsumaria News / Baghdad
    Has announced the presidency, Wednesday, for the removal of some of the circumstances and dilemmas in the budgets of the Vice-President of the Republic, referring to amendments to budgets and submit them to the parliament for adoption.

    The official spokesman for the Presidency of the Republic Khalid Huani in a statement seen by "Alsumaria News", "it was a joint meeting of Adviser to the President and the Presidential Office and the Finance Committee in the House of Representatives shall be represented by the Commission Majida al-Tamimi, where he discussed the implications of the proposals for balancing the presidency."






    He Huani "has been removed some circumstances and dilemmas in the budgets of the Vice President and I talked about the media," he said, adding, "it was to introduce amendments to the budget and submit it to the parliament for adoption."

    The parliamentary Finance Committee revealed on Monday (December 22, 2014), about the value of wages Furnishing office as Vice-President of the Republic, amounting to about 23 billion dinars.

    Fayette Presidency of the Republic, on Thursday (December 25, 2014), MP Magda Tamimi's remarks on the desk of Vice President of the Republic furnishing, demanding them to exercise accuracy in the information before authorizing it.


    http://translate.googleusercontent.c...44vidRiffI-Qwg






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