The Dinar Daily, Thursday May 28, 2015
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  1. #1

    The Dinar Daily, Thursday May 28, 2015


    US dollar USD 1166.000 1164.000

    US dollar USD 1166.000 1164.000
    Euro EUR 1266.626 1265.992
    British pound GBP 1793.891 1792.994
    Canadian dollar CAD 933.921 933.454
    Swiss franc CHF 1227.110 1226.497
    Swedish krona SEK 137.879 137.810
    Norwegian krone NOK 150.333 150.258
    Danish krone DKK 169.869 169.784
    Japanese yen JPY 9.480 9.476
    Drawing Rights
    SDR 1619.562 1618.753

    Indicative rates - (as of) 28.5.2015

    Currency Auctions

    Announcement No. (2959 - most recent listing)

    The opening offers the sale and purchase of foreign currency in the window of the Central Bank of Iraq on 27/05/2015 and the results were as follows:

    Number of banks 20
    Number of remittance companies 3
    Auction price selling dinar / US$ 1166
    Auction price buying dinar / US$ -----
    Amount sold at auction price (US$) 158,987,043
    Amount purchased at Auction price (US$) -----
    Total offers for buying (US$) 158,987,043
    Total offers for selling (US$) -----
    Last edited by pinkadonai1; 05-29-2015 at 10:12 AM.

  2. #2

    Re: The Dinar Daily, Thursday May 28, 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


    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 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
    – highlights page 94 of the quarterly SIGR report to THE US CONGRESS in April of 2012…
    __________________________________________________ _____________


    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″..

    __________________________________________________ ______________


    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


    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.


    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.


    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.

    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,

  3. #3

    Re: The Dinar Daily, Thursday May 28, 2015

    Joint Special Operations Command announces liberating Sayed Ghraib city south of Tikrit
    Thursday, 28 May 2015 13:24

    Shafaq News / Joint Operations Command announced in a statement on Thursday, the liberation of Sayed Ghraib area south of Tikrit city,

    the center of Salahuddin province from the control of ISIS organization.

    The security forces and the Popular Mobilization Units had announced Monday the start of "extensive" military operations in Salahuddin and Anbar provinces.

  4. #4

    Re: The Dinar Daily, Thursday May 28, 2015

    Judiciary invalidate the election commission's decision to cancel membership of MP Mishan al-Jubouri
    Thursday, 28 May 2015 13:10

    Shafaq News / The Electoral Judicial authority on Federal Court of Cassation decided to overturn the decision of the Board of Commissioners of the High Independent Electoral

    Commission (IHEC) regarding the cancellation of membership of MP Mishan al-Jubouri.

    The judge , Abdul Sattar Bayrakdar , spokesman of the judiciary said that "the Electoral Judicial authority in the Court of Cassation considered the Board of Commissioners’ decision of the IHEC regarding the exclusion of MP Mishan al-Jubouri as incorrect."

    Bayraktar said that "the MP presented official documents confirming the validity of his school certificate ," pointing out that "these documents were issued by the Syrian Ministries of Education and Foreign Affairs as well as the Iraqi embassy in Damascus and the Lebanese cultural attache at the Iraqi embassy in Beirut."

    He noted that " he decided to raise the contradictions in the letters in which some refers to the lack of authenticity of the document tuition and subsequent letters that confirms its validity."

  5. #5

    Re: The Dinar Daily, Thursday May 28, 2015

    Parliament held its meeting under the chairmanship of the 42-Jubouri and the presence of 236 deputies

    Long-Presse / Baghdad The Council of Representatives, on Thursday, its the 42 of the second legislative term legislative year, the first under the chairmanship of its President Saleem al-Jubouri and the presence of 236 deputies, while the meeting will see the constitutional oath to the ministers of industry and minerals and water resources and the continuation of the vote on the network of social protection law and vote on four bills, reading the first and second of the four bills.

    A parliamentary source said in an interview to the (long-Presse), he said that "the Iraqi Council of Representatives held at noon today, its the 42 of the second legislative term of the first legislative year, headed by Salim al-Jubouri, and the presence of 236 deputies," noting that "the agenda of the meeting includes the swearing of the masters Ministers of Industry and Minerals and Water Resources, and the continuation of the vote on the draft law of the Iraqi Media Network. "

    The source, who asked not to be named, said that "the meeting will vote in principle on a proposed second amendment to the law replace members of the House of Representatives No. 6 of 2006, and vote on the draft law on passports, and the vote on the draft accession of the Republic of Iraq to the Convention on the promotion and protection and to ensure that investments between the members of the Organization of Islamic Cooperation countries, and vote on the draft property installed in farmland and orchards excluded from the settlement works of the law. "

    The source continued that "the meeting include the reading of the Committee of Religious Endowments and Religious Affairs report on the work of the Committee, the first reading of the draft law on ratification agreement trade cooperation between the Government of the Republic of Iraq and the Government of the State of Kuwait law, and the first reading of the draft ratification of the partnership agreement law for cultural, scientific and technical cooperation and for the development of The Government of the Republic of Iraq and the Government of the French Republic. "

    The source pointed out that "the meeting will see the second reading of the draft accession of the Republic of Iraq to the International Organization for Migration Constitution Act, and the second reading of the draft treaties contract law.

  6. #6

    Re: The Dinar Daily, Thursday May 28, 2015

    U.S. to deliver 2,000 anti-tank weapons to Iraq, Pentagon says
    Thursday, 28 May 2015 12:53

    Shafaq News / The Pentagon said on Thursday the United States would deliver 2,000 AT-4 anti-tank rockets to Iraq as early as next week, 1,000 more than announced on Wednesday

    , to help Baghdad combat ISIS.

    Commander , Elissa Smith, director of public affairs for the Minister of Defense for the Middle East, said that contacts are continuing between the Pentagon and the Iraqi government to accelerate the delivery of two thousand anti-tank aircraft missiles (AT4) which is expected to reach Iraq early June (next June).

    Commander Smith told al-Sharq al-Awsat that "We are working to expedite the processing and delivery other military equipment to provide anti-tank weapons , a lot of support and ammunition (used to detect explosives) to counter IEDs of ISIS and support the Iraqi forces."

    About the US military's efforts to train Iraqi forces, she said that "we are working constantly to improve the ability of Iraqi forces in the battlefield and to improve their capacity to communicate with the headquarters in Baghdad or Erbil in the north”.,000-anti-tank-weapons-to-iraq,-pentagon-says.html

  7. #7

    Re: The Dinar Daily, Thursday May 28, 2015

    Security operations start in Diyala to track ISIS elements
    Thursday, 28 May 2015 12:35

    Shafaq News / A security source in Diyala, revealed launching security operations in the outskirts of al-Mansuriya and north of al-Muqdadiyah to track ISIS terrorists in the liberated areas.

    “The formations of the security forces and Popular Mobilization Units (PMU) have launched tracking and preventive operations in search for wanted and disguised ISIS elements in Sherwin areas east of al- Mansuriya and north of Muqdadiyah areas and the northern outskirts of Hamrin, The head of the security committee in Diyala , Sadiq al-Husseini said in an interview for Shafaq News.

    He said that the goal of enhancing security is to control the liberated areas and prevent the return of terrorists to the liberated areas taking advantage of the preoccupation of the security forces in several battles in Salahuddin and the outskirts of Kirkuk.

    He revealed also the arrest of a number of wanted men and that the operations are ongoing in search of wanted men and infiltrators to hot spots in the province, adding that security forces imposed its control over all areas of Diyala and there is no return of ISIS terrorists due to court security procedures.

    Local sources warned earlier from the return of terrorist activities in the northern areas of Diyala and called to strengthen the security presence in the liberated areas .

  8. #8

    Re: The Dinar Daily, Thursday May 28, 2015

    Federal police and PMU kill 13 ISIS elements and liberate 12 km from Jazerra Samarra toward Anbar
    Thursday, 28 May 2015 11:41

    Shafaq News / An official security source said on Thursday, that the security forces backed by fighters from the Popular Mobilization Units (PMU) made progress on ISIS terrorist

    organization in Jazerra Samarra area toward Anbar province.

    The source told Shafaq News, that The Federal police forces and PMU had advanced from Al-Khozemi Street area and al-Taawon street close to the highway in Jazerra Samarra.

    The source added that those forces were able to clear about 12 km from the territory controlled by ISIS organization with continued clashes with the participation of military aviation.

    The source pointed to the deaths of 13 ISIS elements and injury of several others within Salahuddin operations responsibility area , killed 10 and wounded 20 of PMU and federal police.

    While the military media of "al-Salam Brigades", noted "to the collective escape of ISIS elements since the early hours with the launch of military operations by al-Salam Brigades in al-Farehat , Layen, al-Isehaki areas extended toward al-Thar –Thar regulator."

  9. #9

    Re: The Dinar Daily, Thursday May 28, 2015

    Central bank: dollar exchange rate is stable and we expect to sell control of the

    Author: ASJ, HA, HH
    Editor: HA, HH

    28/5/2015 eleven forty-seven a.m.

    Long-Presse / Baghdad: Denied the Iraqi Central Bank, on Thursday, there is fluctuation in the price of dollar remittances, and pointed out that there is a lack of stability in the cash dollar exchange rate, and with reason attributed to the increased demand for it, anticipate the success of its procedures in order to control the sale.

    He said the central bank's management board member Majid picture in an interview with the (long-Presse), said that "the existing volatility in the cash price of the dollar due to the reason demand for the dollar either from the public or traders," stressing "the absence of any fluctuation in the price of remittances."
    Suri said that "the Bank and for the control of cash sales, has taken a number of decisions, including increased sales of US dollars in cash to cover the demand for the dollar and for the alleviation of oscillations in the present time," expected "the success of these measures during the next term."
    Suri and pointed out that "by securing demand any When you are equality between supply and demand, prices will stabilize and practically cover the demand," but he also said, "but we do not hide that there might be other factors play a role in the instability of the cash dollar exchange global Kalzerov price political and security conditions. "
    The Central Bank of Iraq, on Tuesday (19 May 2015), the launch of a trillion dinars for private banks to finance small and medium enterprises loans, and increase the share of dollar sales for banking companies and foreign transfers, and the development of measures to to address the lack of liquidity in some banks.

    The Central Bank of Iraq, revealed in (the 19th of March 2015), the presence of a number of private banks lagging in its work during the last term, while attributing it to non-payment of dues of contractors and clients as a result of "lack of liquidity", vowed to dealers funds with banks Civil lagging through the legal reserve.

  10. #10

    Re: The Dinar Daily, Thursday May 28, 2015

    Qatari Foreign Minister Arrives Baghdad
    Thursday, 28 May 2015 10:58

    Shafaq News / Qatari Foreign Minister , Khalid bin Mohammed Al-Attiyah has arrived on Thursday, to the capital Baghdad on an official visit.

    A diplomatic source in the Ministry of Foreign Affairs told Shafaq News, that al-Attiyah and his accompanying delegation arrived in Baghdad airport this morning and was greeted by his counterpart in Iraq, Ibrahim al-Jaafari.”

    The source added that” Al-Attiyah will meet a number of officials, and will discuss with them ways to enhance cooperation between the two countries and fight terrorism.

    Al-Jaafari had called last month the State of Qatar to open its embassy in Baghdad and resume relations between the two countries, pointing to the desire of the Iraqi government for the Qatari foreign minister to visit Baghdad.

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