" The Dinar Daily ", Wednesday, 11 March 2015
Page 1 of 8 123 ... LastLast
Results 1 to 10 of 72

Thread: " The Dinar Daily ", Wednesday, 11 March 2015


    
  1. #1

    " The Dinar Daily ", Wednesday, 11 March 2015





    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

    Crush Expected When Kuwaiti Banks Reopen Today

    March 24, 1991|From Reuters



    KUWAIT CITY, Kuwait — Thousands of Kuwaitis are expected to jam the country's banks today when they open for the first time since the end of the Iraqi occupation.

    Customers will be allowed to withdraw funds and to swap pre-invasion money for a new currency issued to make more than $1 billion in pre-invasion dinars stolen by the Iraqis worthless.

    "We expect a rush of people," said Issam Asousi, an executive with the Bank of Kuwait. He said it could be a chaotic first week because customers have a lot of questions about their accounts.

    Kuwaiti banks continued operating during the seven-month Iraqi occupation under managers brought in from Iraq, but they have been closed since the U.S.-led alliance ousted the Iraqi army from Kuwait a month ago.

    When the banks reopen today, customers will be able to withdraw up to 4,000 Kuwaiti dinars, equivalent to about $14,000 at pre-invasion exchange rates from their accounts, and to exchange a like amount for foreign currency.

    Balances of customers' accounts will go back to what they were on Aug. 1, a day before the invasion.

    Clients will not be able to exchange Iraqi currency issued during the occupation, when Baghdad pegged the rates of the strong Kuwaiti dinar to the far less valuable Iraqi dinar.

    The new Kuwaiti money will be exchanged for old at a one-to-one rate.

    http://articles.latimes.com/1991-03-..._kuwaiti-banks


    BGG ~ Thanks to wmawhite for some facts on the subject.

    Hi BGG,

    Just thought I would drop you an email. I listened to the call, and was interested in what was said about Kuwait, if I may - I will add my 2 cents worth.

    You were spot on with what you said, I have a close friend who's father made a killing on the KWD. He bought from people who had fled the country and he paid pennies on the dollar (we are in Australia). He took the chance that Iraq would be kicked back out and he was right.

    When the money was reinstated, he exchanged it for AUD at a rate in the mid 3s. The interesting thing about it is, Iraq invaded in November 1990 (I think), they were kicked back out at the end of Feb 1991, the banks reopened with a brand new KWD in late March, that's not a bad time frame to get a currency designed, printed and made ready to use, also the time that the old KWD was valid was initially only for 2 months, then extended to 6, so it was valid until Sept 1991, interesting I think.

    Also the other thing that seems to be a "fact" in Dinar land is Bill Clinton used the Kuwait RV to pay off the debt. However, Clinton was not President in 91, he did not take office until 93, even I know that and I am an Aussie.

    Anyway thanks for the site and enjoy listening to your calls.

    Kind Regards,
    Kevin



  2. #2

    Re: " The Dinar Daily ", Wednesday, 11 March 2015

    CURRENCY CODE SELL BUY

    US dollar USD 1166.000 1164.000


    CURRENCY CODE SELL BUY
    US dollar USD 1166.000 1164.000
    Euro EUR 1252.051 1251.425
    British pound GBP 1754.014 1753.137
    Canadian dollar CAD 922.979 922.518
    Swiss franc CHF 1172.566 1171.980
    Swedish krona SEK 136.959 136.890
    Norwegian krone NOK 144.922 144.850
    Danish krone DKK 168.024 167.940
    Japanese yen JPY 9.600 9.595
    Special
    Drawing Rights
    SDR 1609.791 1608.986

    Indicative rates - 11.03.2015

    http://www.cbi.iq/

  3. #3

    Re: " The Dinar Daily ", Wednesday, 11 March 2015

    Governor of the Central Bank of Iraq: There are operations of foreign currency smuggling abroad
    Adding, Iraq does not suffer from any problem, and has good revenue
    0
    Basenyoz views
    11/03/2015 11:24



    Approved the Governor of the Central Bank of Iraq, the existence of smuggling hard currency out of the country, and did not hide his doubts in the involvement of civil banks already submitted forged documents to buy dollars from the central bank auction.


    He said the relationship at a press conference yesterday, I followed (Basenyoz) to "proceed with the adoption of new mechanisms different from what had been followed by previous administrations, notably to reduce dependence on the auction currency window, introduced in 2004, aims to maintain the stability of exchange rates, and enhance value of the dinar, and secure hard currency to the Iraqi market. '


    He pointed out that 'the auction window is no longer a daily basis, and will depend auditing mechanisms different from that previously followed, especially that of the functions of the central bank to provide foreign currency for trade. "


    Keywords and pointed out that 'the bank in March the sale of foreign currency through the auction for more than ten years of operation, and this procedure is not true, because many of the countries of the world to adopt this method in exceptional circumstances to create balance and stability of the currency', stressing that 'dollar selling operations shifted from the way Foreign Trade to speculate in the markets and reap the profits and keep the banks from the real activity '.


    He accused 'some non-banking companies and even commercial and business, the shift of activity to speculative currency, taking advantage of the ease of procedures and guaranteed profit and fast, as well as the nature of the work of these parties has become a cover to facilitate many of the processes related to the smuggling of money'.


    Keywords promised to 'cash sales to the dollar, is the most dangerous in the sales processes followed in the auction, which reached record amounts in the last two years, recorded $ 15 billion a year, pointing out that «these amounts are very large compared to the imports of the dollar, and to the need Country of cash to cover traveling expenses and treatment and others'.


    Central Bank Governor stressed that 'open to the possibility of supporting the Iraqi economy, likely to control the sale of dollar traded through the application of new procedures process., Pointing out that' the officials pointed to a decline in reserves of hard currency at the central bank, stressing that Iraq does not suffer from any problem and has a good income and a domain that has any concerns.


    Keywords and pointed out that 'the size of the reserve, which is owned by the Central Bank of the money supply exceeds one and a half times, allowing control of the currency, and there are no fears of the process of selling the dollar against the dinar'.

    http://translate.googleusercontent.c...64bOYxQqrhT80g
    Last edited by sczin11; 03-11-2015 at 10:16 AM.

  4. #4

    Re: " The Dinar Daily ", Wednesday, 11 March 2015

    Acting head of Integrity Committee request to resign

    Wednesday, 11 March 2015 13:46

    Baghdad (AIN) –The Acting head of the Integrity Committee, Alaa al-Saa'di submitted a resignation request to the Prime Minister, Haider al-Abadi.

    http://www.alliraqnews.com/en/index....to-resign.html

  5. #5

    Re: " The Dinar Daily ", Wednesday, 11 March 2015

    CURRENCY CODE SELL BUY

    US dollar USD 1166.000 1164.000


    CURRENCY CODE SELL BUY
    US dollar USD 1166.000 1164.000
    Euro EUR 1252.051 1251.425
    British pound GBP 1754.014 1753.137
    Canadian dollar CAD 922.979 922.518
    Swiss franc CHF 1172.566 1171.980
    Swedish krona SEK 136.959 136.890
    Norwegian krone NOK 144.922 144.850
    Danish krone DKK 168.024 167.940
    Japanese yen JPY 9.600 9.595
    Special
    Drawing Rights
    SDR 1609.791 1608.986

    Indicative rates - 11.03.2015

    http://www.cbi.iq/

  6. #6

    Re: " The Dinar Daily ", Wednesday, 11 March 2015

    Abadi instructs military command to ensure return of normal life to liberated areas

    Wednesday, 11 March 2015 13:19

    Baghdad (AIN) –The Prime Minister, Haider al-Abadi, instructed the supreme military command to ensure the return of the normal life to the recently liberated areas by coordinating with the service ministries.

    http://www.alliraqnews.com/en/index....ted-areas.html

  7. #7

    Re: " The Dinar Daily ", Wednesday, 11 March 2015

    Abadi instructs MoWR to maintain dams, distribute water allocations fairly

    Wednesday, 11 March 2015 12:12

    Baghdad (AIN) –The Prime Minister, Haider al-Abadi, instructed the Ministry of Water Resources to keep maintaining the dams and distribute the water allocations fairly among the provinces.

    http://www.alliraqnews.com/en/index....ns-fairly.html

  8. #8

    Re: " The Dinar Daily ", Wednesday, 11 March 2015

    PM requests MoE to lift mines, explosive materials from liberated cities

    Wednesday, 11 March 2015 12:44

    Baghdad (AIN) –The Prime Minister, Haider al-Abadi, instructed the Ministry of Environment to start lifting the mines and the explosive materials from the recently liberated cities to help in the return of the families.

    http://www.alliraqnews.com/en/index....ed-cities.html

  9. #9

    Re: " The Dinar Daily ", Wednesday, 11 March 2015

    Iraqi Minister: ISIS mines hampering Tikrit advance
    By RUDAW

    TIKRIT, Iraq – Thousands of mines planted by Islamic State (ISIS) militants in and around occupied Tikrit is hindering an advance by joint forces of the Iraqi Army and paramilitary forces, an Iraqi minister said Wednesday.



    “ISIS militants have planted an estimated 6,000 mines inside Tikrit, slowing down the joint operation to enter and retake the city,” said Ahmed Abdulla al-Jubouri, Iraq’s provincial affairs minister.



    Iraqi forces backed by allied Shiite militiamen are in the 10th day of a major offensive to retake the city of Tikrit, birthplace of ousted dictator Saddam Hussein, with military officials claiming to make advances against the militants.



    “Tikrit is all but empty of civilians. The city has been surrounded by the Iraqi Army and Shiite forces, forcing ISIS fighters to escape from the city to Huwaija,” al-Jubouri said.



    A statement from the predominantly Shiite paramilitary Hashd Al-Shaab militia that is part of the Tikrit offensive claimed Tuesday that the forces have started "the decisive operation" to liberate the city.



    Iraqi military officials say they have been advancing on the city from several directions.



    Troops from neighboring Shiite Iran are reportedly part of the 30,000-men force fighting for Tikrit.

    http://rudaw.net/english/middleeast/iraq/11032015

  10. #10

    Re: " The Dinar Daily ", Wednesday, 11 March 2015

    Kurdistan forum dives into complex regional issues
    By RUDAW


    The Third Annual Sulaimani Forum.




    SULAIMANI, Kurdistan Region — A region in turmoil, the advent of new realities and oil were the day’s hot topics at a prestigious two-day forum that kicked off Wednesday in the Kurdistan Region’s cultural hub.




    The third annual forum, the signature event of the American University of Iraq – Sulaimani, was opened by Barham Salih, former prime minister of the Kurdistan Regional Government (KRG).




    In his keynote address, the Iraqi foreign minister Ibrahim al-Jaafari pointed out that the region -- including Iraq and other countries -- was for centuries known for ethnic and religious diversity.




    The day’s schedule of timely panel discussions began with “New Realities in Iraq,” featuring Iraqi Parliament Speaker Salim al Jibbouri and his KRG counterpart Yousif Muhammed Sadiq.




    Another member of the panel, Hussein al-Shahrastani, Iraq’s minister of higher education and the former oil minister, pointed to the threat of Islamic State, or ISIS.




    “ISIS has launched a brutal attack on Iraq. It attacks our history and civilization. It threatens our values and the security of the whole world,” Shahrastani said.




    “We need political trust to complete the political process,” he added, referring to the problems plaguing Iraq.




    The day’s second panel aims to provide regional and international perspectives on the current state of the “Fertile Crescent,” a term for ancient Mesopotamia and referring to the broader Middle East.




    The final discussion was set to focus on oil, energy policy and the potential for a financial crisis. The panel was scheduled to include Iraqi Oil Minister Adil Abdul Mahdi, the country’s finance minister and US Ambassador to Iraq Stuart Jones




    In his opening remarks, Salih noted that today, March 11, marked the 45th anniversary of the autonomy agreement brokered by the Kurdish provinces and the Baghdad government of Saddam Hussein -- a pact broken a year later by the former Iraqi dictator.


    Salih also warned that if the battle against ISIS was not dealt with “seriously” the problem would only fester and continue to haunt the Middle East and the world.

    http://rudaw.net/english/kurdistan/11032015

Posting Permissions

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