The CBI responds to the damage of the seven billion (Dinar)

{Baghdad: Al Furat News} The Central Bank of Iraq, the subject of sinking the amount of 7 billion dinars.

“The incident occurred in Rafidain Bank in 2013 at the time of Abdul Basit Turki as governor of the Central Bank in addition to being the head of the Financial Control Bureau at the time and took what to take in accordance with the law and instructions of the Central Bank And state regulators. ”

He added that “the functions of the Central Bank in accordance with the law is the replacement of damaged and invalid papers and this is done continuously to maintain the sustainability of dealing in local currency and stability.”

The statement pointed out that “the cost of replacing the banknotes is the cost of printing, which is different from the value of the currency much, not loss of 7 billion dinars, and some argue that the currency that was sinking would have been replaced even if it did not sink because the life is over.

He pointed out that “the Central Bank expresses its deep surprise to raise this issue after five years and at this particular time, noting that the subject is settled procedural and legal in its history.”

He called on the Central Bank of Iraq “all the media to be careful and careful in the transfer of data and deal with it because of the impact on the state of financial stability and price achieved by the Central Bank of great efforts and recognition of international organizations during the past years.”

Article Credit: http://alforatnews.com/

Parliament discusses monetary policy and amend the bill of the budget of 2019

​(Baghdad: Al Furat News) The House of Representatives discussed in its 13th session held under the chairmanship of Mr. Mohamed Halboussi, Speaker of the House of Representatives on Monday, in the presence of 234 deputies, monetary policy in the presence of the Governor of the Central Bank and the amendment of the federal budget for 2019 with the participation of the Minister of Finance and Deputy Prime Minister for Economic Affairs .

A statement by the Information Department of the House of Representatives, received the agency {Euphrates News} copy of it, at the outset of the session Jassim Mohan al-Bekhati was sworn in as a member of the House of Representatives after the vote to add this paragraph to the agenda.

President Halabousi discussed the topics of improving the ration card items and the decisions of the previous government during the period of the conduct of business and related to Najaf airport in the next session.

The Council voted on the formation of a fact-finding committee on the security events in Ninewa province, which includes deputies of the province and those who wish to ladies and gentlemen MPs.

The Board discussed the presence of Ali Mohsen Al-Alaq, Governor of the Central Bank and members of the Board of Directors and Mr. Faisal Al-Hims, Director of the Iraqi Bank for Trade, Monetary Policy.

At the beginning of the hosting, the President of the Council welcomed the attendees to discuss the financial and monetary situation and the work of the Central Bank, praising the success of the Central Bank in addressing the economic challenges and face the financial crisis, pointing out the existence of problems in need of quick fixes.

In his speech during the meeting, Mohsen Al-Alaq, Governor of the Central Bank, stressed that the bank was able to urge the pace and efforts to confront financial crises with minimal damage and better than expectations. And initiatives in the first strategy full of visions and objectives to address the vacuum and backwardness of the tremendous developments experienced by the bank and the banking sector for periods of time.

He explained that the approved plan was real and measured by a careful follow-up by a specialized department in the Central Bank to follow up all the developments that took place and included the introduction of jobs and tasks that developed within the body of the Central Bank after the introduction of several departments in it, noting the launch of a lending initiative of 6 trillion dinars for the industrial sector, And the real estate, which amounted to about 2 trillion and 500 billion dinars for the last two sectors as well as to achieve financial stability in light of the current challenges, which was reflected in the provision of salaries to employees and corporate dues during the past years, noting that inflation did not exceed 2% in a thousand Rh recent Iraq has become part of the international standards followed in this regard.

As for the building of the Central Bank of Iraq has been between the relations that the project seemed before assuming office, specifically in 2010 through the contract with the Office of Architecture Zaha Hadid directly, the new building has special specifications and advanced electronically.

In turn, Walid Aydi Abdul Nabi, a consultant at the Central Bank, pointed out that the bank studied the tenders submitted by 4 foreign companies and after a series of meetings by consultants in the bank was referred to an Azerbaijani company, pointing out that the Economic Affairs Committee decided to exclude the building of the Central Bank of the provisions of government contracts And to recommend to the General Secretariat of the Council of Ministers for the purpose of presenting the vote in the Council of Ministers being outside the competence of the Economic Committee, noting that the estimated cost of the project amounted to about 823 million dollars, while the negotiated cost was reduced to 772 million dollars, The company has a long history in executing projects in a number of countries in the world.

Al-Alak said in response to a question about the causes of corruption of 12 billion dinars, that the damage was before the ascension of the position when the coffers of the Rafidain Bank to sink because of heavy rains in 2012 and caused damage to the banknotes after the arrival of water to the stores, explaining that the Central Bank to exchange currencies at And the imposition of a certain fine on the management of Rafidain Bank has been reduced after considering what was spent and fate, especially that these securities outside the age of time, noting that the Central Bank lost the cost of printing banknotes and it represents nothing much, although the amount was up to 7 billion dinars With a much lower value than that, as well as an international certificate of cash management.

He pointed out that the reserves of the Central Bank of Iraq is different from the government reserves, noting that the government reserves result from the surplus achieved by the Ministry of Finance, which happened in the years before 2012, where the reserve reached in 2012 to about $ 20 billion decreased after the deficit to small amounts.

The Governor of the Central Bank that the reserves of the bank currently higher than the previous, which reached in 2014 about 66 billion dollars, while the reserve currently about 61 billion dollars, as well as the existence of $ 15 billion debt to the Central Bank of the government to finance the budget deficit, To buy Treasury remittances and financial bonds from the market, especially that the oil revenues did not exceed the net about $ 2.5 billion per month while salaries 4 billion per month, which could lead to the collapse of the economic situation, which imposed the intervention of the Central Bank, noting that the adequacy of the reserve in Iraq according to international standards Currently 169% of the Expected to arrive after two months to about 180% and the size of the Iraqi currency traded in the market amounted to 43 trillion dinars.

The interventions and inquiries of the ladies and gentlemen during the discussion focused on the importance of good management of financial reserves and clarification of how to act in foreign currency from the oil resource and the amount of remittances abroad and the expected savings from foreign currency at the end of the year in addition to knowing the disbursement of $ 21 billion of the financial reserve, which was $ 81 billion And to go to 60 billion dollars later as well as the reasons for resorting to the purchase of commercial papers with the feasibility statement of opening foreign banks without providing any economic benefits.

In his reply, the central bank governor pointed out that the relationship between deficit and monetary policy will be present in the debate of the House of Representatives on the budget, calling for the participation of the Central Bank in the meetings of the House of Representatives on the federal budget.

Then the Presidency of the Council decided to postpone the completion of the discussion of the subject of the Central Bank until after the hosting of the State Budget Committee.
The Council hosted the Governmental Committee on the Draft Federal Budget Law of the Republic of Iraq for the fiscal year 2019, headed by Finance Minister Fuad Hussein, Deputy Prime Minister for Economic Affairs and his accompanying delegation.

The First Deputy Speaker of the House of Representatives Hassan Karim al-Kaabi, during his presiding over part of the session, welcomed the government delegation to discuss the budget.

In his speech during the hosting, the Minister of Finance stressed that the budget was prepared by the previous government in accordance with different visions of the current government views on construction and investment, noting the importance of time by the government and the House of Representatives to resolve the budget, adding that the government is about to introduce a new philosophy of the economic situation is Private sector investment and investment.

The Minister of Finance and Deputy Prime Minister for Financial and Economic Affairs to the readiness of the Committee to deal positively with the proposals of the deputies for the purpose of maturing the budget, and expressed his willingness to cooperate with the House of Representatives and the Finance Committee in the Council through holding joint meetings to gather ideas to benefit from them after being put to the Council of Ministers and discuss the possibility The amendment of the budget, noting the existence of a proposal to assign a staff member the task of coordinating between the ministry and the House of Representatives.

Finance Minister Fuad Hussein said that the draft budget is still a project that requires continuous discussion by ministers, which requires its end within two weeks, pointing out that the government is prepared not to change the budget within the available means and in harmony with the vision of the House of Representatives.

For his part, Maher Hammad, Undersecretary of the Ministry of Finance to the adoption of the price of oil $ 56 and exports of 3 million and 880 thousand barrels, as well as the presence of 7 trillion dinars, current expenditures increased from last year in addition to increasing investment expenditures and allocate 4 trillion dinars in the area of ​​support in various areas such as ration card and farmers And an increase in regional development allocations and petrodollar projects.

The interventions of Ladies and Gentlemen focused on the affirmation that the budget prepared the mind of the previous government and adopted on the austerity and demands of the Council represents the needs of the Iraqi street, asking about the objectives of the budget prepared and mechanisms to adopt the price of a barrel of oil $ 56 despite the increase in oil prices and rebuilding the budget again Consistent with the vision of construction.

The interventions included knowledge of the reasons for the recalculation of the Kurdistan region’s proportion of approximately 12%, while the existence of estimates from the Ministry of Planning indicate that the proportion of the region up to about 14%, pointing out that the budget of 2019 does not build the economy of the country and differ from the curriculum of the government, put forward by Mr. Prime Minister, demanding By allowing the private sector to manage the state and manage the economy.

The interventions dealt with the reasons for not allocating a logical budget to the affected governorates and not taking into account the suffering of the people of those provinces with the need to treat Halabja governorate as an independent province, encouraging investment and private sector, providing loans and developing non-oil revenues, and increasing regional development projects as the best solution to eliminate unemployment, Of the value of barrels of oil to support the ration card, and the quest to install all contracts and wages daily, especially in the Ministry of Electricity and work to grant the Kurdistan region share according to the benefits and pay the dues of farmers.

Article Credit: http://alforatnews.com/

BGG ~ We have Dinar available. If you would like to buy Dinar – Please call me directly, leave me a message on voicemail, send a text (615-509-6256), an e-mail or FaceBook message me. These all work.

Our Current Sale Price is $995 per million.

www.TheDinarExchange.com

International inflation is expected to reach inflation in Iraq to 2% during 2018 and 2019

The International Monetary Fund (IMF) forecast Tuesday that annual inflation in Iraq in 2018 and 2019 will reach 2 percent, while gross real GDP growth for the year 2019 will reach 6.5 percent.

“Annual consumer price inflation in Iraq during 2018 and 2019 is expected to be 2 percent, up from 0.1 percent in 2017, and 14 percent between 2000 and 2014,” the IMF said in a report.
“Total gross annual real GDP growth in 2019 is about 6.5 percent, while in 2018 it will be around 1.0 percent, while growth in 2016 was about 13.1 percent,” the IMF said.

“The total balance of the government’s total gross domestic product (GDP) in 2019 is expected to reach 3.8 percent, while in 2018 it will reach 5.6 percent, after falling to 14.3 percent in 2016,” the IMF said.

The International Monetary Fund (IMF) is a specialized agency of the United Nations Bretton Woods system, established under an international treaty in 1944 to promote the integrity of the world economy. The Fund is headquartered in Washington, DC, and is administered by its members, covering almost all the world’s 189 countries.

Article Credit: http://non14.net/

The American Peace Institute calls on Saleh to talk about his vision for the future of Iraq

(Baghdad: Al Furat News) called the American Institute of Peace President Barham Saleh to visit and talk about his vision for the future of Iraq.

“Saleh received a congratulatory message from the president of the American Peace Institute, Nancy Lindborg, on the occasion of his assumption of the post of president of the republic,” a presidential statement said.

“On behalf of the American Peace Institute, we congratulate you on your recent assumption of the post of President of Iraq,” said Lindborg, “while Iraq has made significant strides towards easing the conflict and defeating extremism, I am sure that the Iraqi people are still facing many challenges. You have a difficult task in the coming years.”

The Institute for American Peace is an independent, non-party institution created by Congress. The mission of the Institute is to prevent, mitigate and resolve violent conflicts around the world through direct engagement in conflict areas, providing the necessary analysis, education and resources for those who work. For peace”.

Since 2003, the Institute for Peace has been providing training and support to civil society organizations and public institutions in Iraq, and has been working continuously since 2003 to promote peace and stability by building Iraqi capacity and supporting peacebuilding initiatives. To enable them to promote partnership between components and reconciliation. ”

“Given the technical expertise and experience of the Institute in Iraq, I hope you will see us as a resource to help the Iraqi people and government to meet the challenges facing Iraq and its efforts towards reconciliation,” she said. “We have a great team in Iraq and Washington DC. Iraq through the transition period. “

“I take this opportunity to invite you to speak at the American Institute of Peace when you visit Washington next time, and I believe that the American Peace Institute, decision makers, experts and the American public will greatly benefit from the opportunity to learn more about your vision for the future of Iraq. And I am ready to discuss ways of providing assistance and cooperation with you and with the Government of Iraq in the future. “

Article Credit: http://alforatnews.com/

UNAMI welcomes Iraq’s return of Kuwaiti property

The United Nations Assistance Mission for Iraq (UNAMI) has welcomed the return of a shipment of Kuwaiti property found to the Kuwaiti authorities in a handover in Kuwait City today, which was attended by the United Nations as an observer.

“This is a positive and encouraging step taken by the Iraqi authorities in compliance with UN Security Council Resolution 2107 (2013),” said Deputy Special Representative of the Secretary-General for Iraq Alice Wallisboul, who demonstrates the determination of the two countries to further promote bilateral relations and the legacy of the bitter legacy of the invasion and violence behind them. Best neighborly relations “.

Preparations for the transfer of Kuwaiti books and other materials took more than a year. His Excellency the Foreign Minister of Iraq, Mr. Mohammed Al-Hakim, has made extraordinary efforts to ensure that this important and complex file of outstanding issues with Kuwait has been expedited since he took office a few weeks ago.

The United Nations Assistance Mission for Iraq (UNAMI) has actively participated with Iraq and Kuwait as an observer to facilitate efforts to resolve outstanding issues. While UNAMI applauds Iraq’s move on the lost property portfolio and its commitment to resolve all outstanding outstanding issues with Kuwait, the Mission acknowledges that the search for the priceless Kuwaiti national archives should continue.

The Deputy Special Representative said that, despite Kuwait’s strong support and Iraq’s commitment to international and humanitarian obligations, the full normalization of relations would only be achieved once all outstanding issues had been resolved.

Article Credit: http://aynaliraqnews.com/

Governor of the Central Bank of Parliament: Despite all the circumstances and pressures, we kept the exchange rate

​Baghdad / News – The governor of the Central Bank of Iraq Ali al-Alak, on Monday, that all the public balances of Iraq has not supported the Iraqi industries, while pointed out that the bank and despite all the circumstances maintained the exchange rate.

Al-Alak said during his meeting in the House of Representatives in its 13th session held today in the presence of 234 deputies that ‘the central bank balanced between the financial options and managed despite the pressure and impossible goals to maintain the exchange rate of the dinar against other currencies, including the dollar’.
He added that ‘ all the public balances of Iraq has been free of support for Iraqi industries’.

The most important points for discussion with the Governor of the Central Bank is the building of the Central Bank and put the name of the governor on the Iraqi currency and its causes and repercussions and currency and what is raised around it.

Article Credit: http://ikhnews.com

Erbil, Baghdad Close to Reach Deal on Kirkuk Oil Exports

ERBIL — The governments of Kurdistan Region and Iraq are reportedly about to reach an agreement to resume the oil exports from the oilfields of Kirkuk.

According to multiple sources cited by Financial Times, Erbil and Baghdad are expected to finalize a deal by the end of November and resume pumping 400,000 to 700,000 barrels of oil per day from the oilfields of Kirkuk to the Turkish port of Ceyhan.

According to the report, the crude would be exported through the Kurdistan Regional Government (KRG) oil pipeline which has recently been upgraded to pump 1 million barrels per day.

It comes as the US, despite granting Baghdad an exception to its sanctions, is pressuring the Iraqi government to limit and gradually end its oil trade with neighboring Iran.

The US is said to be encouraging its allies, including Iraq, to increase their oil production so as to fill in the gap created by sanctions against Iran’s oil exports on the international market.

Oil exports were halted from Kirkuk fields since last year in October when the Iraqi army and Shi’ite militias of Hashd al-Shaabi overran the Kurdish province and pushed the Kurdish rule out of the area.

Source: Basnews.com

BGG ~ For any bank, banker, lawmaker, adviser or official (of any kind) to make the statement “the Dinar is a scam” is JUST as foolish as ANY of the internet BLOWHARD “Gurus”.

The Iraqi Dinar is the official currency of a COUNTRY. Numerous times I have pointed to SIGIR Report as guidance – see highlights on page 84 (page 94 in the PDF document format, it’s actually page 84 of the hard-copy) of the quarterly SIGIR report to THE US CONGRESS dated April of 2012…

THIS REPORT WAS SENT TO CONGRESS IN MAY of 2012. IT PLAINLY SHOWS IN THIS REPORT THEY EXPECTED THE DINAR TO BE VALUED AT AROUND A DOLLAR IN 2013.

BGG ~ This is a screen shot from the “Special Inspector General for Iraq Reconstruction” – Apr 2012, quarterly report to Congress. For ANY member of our Government to say they have no idea what is going on here – means they simply haven’t read some very basic documents presented them.

__________________________________________________

I have often pointed out this is a highly speculative investment. We are, in no way, guaranteed anything. However, this SIGIR report gives us some VERY valuable insights…

1) This was 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. This goes directly to the validity of this venture – against all advice from Wells Fargo or other such naysayers.

2) It points out there had been a legitimate “plan” – or time frame in motion… having been projected to be done in 2013. What the current time frame is now, or what the current plan is – hard to say.

3) It gives us an idea as to who is was charge…the CoM – or Council of Ministers. Who do they answer to?? Maliki, at that point. Period. Historically – he had been a “weak Dinar” policy advocate. Are they likely to now push this forward?

Make note, Mahdi is an actual economist and was one of the Vice Presidents of Iraq from 2005 to 2011. He formerly served as the Finance Minister in the Interim government and Oil Minister from 2014 to 2016 (Wikipedia sourced).

There has been a flurry of references to this same aforementioned “project” recently in various news articles.

4) Though no guarantee of a future plan they wind up engaging – this report pointed 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″…

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