Central Bank: We have succeeded in ending the exchange rate gap
Economy News Baghdad: The head of the central bank’s financial operations, Mahmoud Dagher, said Saturday that the central bank’s three-pronged strategy has contributed to the reform and development of the banking sector.
Dagher said during a seminar held on the ground of the Baghdad International Fair entitled “Challenges of the banking sector and the reform strategy” and attended by “Economy News”, “The reform carried out by the Central Bank, based on three axes, the first close the exchange rate gap, Carrying out financial inclusion and settling salaries and the third related to the process of technical development within the banking system.
He stressed that “these axes constitute the basis of the strategy of the Central Bank to develop the banking system.”
During the seminar, the Director of Financial Statistics at the Central Bank talked about identifying the challenges coming from the external environment, which included public banks and the science of low capital, as well as the absence of law in the process of achieving the shortcomings of the customers towards banks.
The director of risk management at the Bank of Baghdad, Nabil Abdel-Hur Toman, talked about the political risks and their relationship to foreign investment.
“Any country with high political risk will prevent the foreign investor from coming to it,” Toman said. “We need to develop a methodology and strategy for the coming years related to planning, measuring and analyzing risks to minimize their impact.”
And that the reduction of risk requires the participation of the government and the central bank and investment bodies as well as the banking sector.
He pointed out that “Tuman should provide a saving investment environment to the successful investor has a sophisticated banking system and fixed laws and investment facilities for taxation,” adding that “Iraq during 2014-2015 was ranked sixth in the world on the level of political risk, according to international reports” .
In turn, the financial adviser to the Association of Iraqi Private Banks, Samir Nusairi, explained during a speech at the symposium that “the challenges facing the banking sector is not the last responsible, but the structural imbalance in the economy in general.”
He stressed the need for a clear methodology to overcome this structural imbalance, which is reflected in the inability of non-oil revenue and the deficit of the general budgets of the state as well as the balance of payments deficit and other aspects related to infrastructure.
He pointed out that the banking sector, under the leadership of the Central Bank of Iraq and according to the strategy of the last years 2016 2020, has been able to achieve good results in the development of the banking sector, including financial inclusion and the settlement of salaries.
Article Credit: economy-news.net (Special Thanks to Vernell)
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Is it time to delete three zeros from the currency?!
Economy News Baghdad: The central bank submitted a project to delete three zeros of the currency, in order to confront inflation and stimulate the economy, but was forced to stop because of the deteriorating security and political situation in the country.
The governor of the Central Bank, Ali al-Alaq, in a discussion session with the editors of a number of Iraqi media, including “Economy News”, “The subject of deleting zeros from the currency is ready, but it needs an environment suitable to apply,” noting that ” To prevent manipulation and fraud by the owners of weak souls. ”
The central government stands with the central bank’s draft to delete three zeros of the currency, because it sees it “hurt the efficiency of the system of cash payments,” according to the financial adviser to the prime minister.
He added, the appearance of Mohammed Saleh, in an interview, “the economy News,” that “the current environment suitable for this project because there is financial and political stability witnessed by the country, especially after the salvation of the organization (da’ash).”
He stressed the need not to rely on the project to support the Iraqi dinar, but “focus on the creation of all conditions that would support the Iraqi dinar and represented by political and economic stability,” pointing out that “the central bank has accumulated experience in dealing with the subject.”
The economist said, in the name of Jamil Anton, for “Economy News”, “The current environment is not suitable for the project to delete the zeros at the moment, because the security situation has not settled so far in the ideal form.”
He pointed out that “the project needs educational campaigns to be accepted by citizens and does not affect the movement of the market,” noting that “the project has the benefits of reducing the amount of money used in deposits, which helps accountants not to fall in error in dealing with zeros in large amounts, As well as reduce the number of trustees funds and protect money from theft. ”
Antoine predicted that the project would be implemented after the legislative elections scheduled for next May.
Article Credit: economy-news.net (Special Thanks to Tim Tarkington)
BGG ~ This was dated today. This is current news!! It appears both Saleh and Alak believe the current climate is right, however, one economist mentioned does not. We’ll soon see (as in – between now and a month or two after the elections – according to them).
P.S. In response to some boo hooing going on… I don’t see how anyone can read this and not be VERY excited?? Seriously?!? Because it alludes to some point in the near future instead of tomorrow or the next day? Sheesh!!
Read it again. Only one economist is offering his opinion that the time may not be right. Everyone else (that actually matters) are ready to go.
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Enorrste (Dinar Guru) – Mike’s question is well put:
What, exactly are the conditions to begin removing the zeros?
The answer to that question, not surprisingly, is really quite simple. The one condition that is needed is the assurance that the value of the dinar will rise when they move to the international currency market and Article VIII. The problem with discussing “remove the three zeros” is that it is seen as an event…when in fact it is a process, as will be the case in Iraq.
The ONLY way that the three zeros will be eliminated in Iraq is through a gradual rise in the value of the currency… It has been shown conclusively that the RV concept is not tenable because there is too much currency in circulation to effect an RV. The ONLY way to get to our goal is to see the currency move to a float and then see a gradual removal of the large notes as the value of the currency rises. Therefore, “remove the three zeros” can only occur over time with the gradual rise in the value of the currency.
The fact that the most recent articles are stating that the only thing holding the implementation of the project is a “suitable environment” brings us closer to Mike’s question.
What is the “suitable environment?”
This phrase is a little more specific than Mike’s question concerning a “condition” needed. A suitable environment could involve any of a number of factors. We know one of them: security. For well over a year this was what was holding up the implementation of the project. More recently, however, it seems that the security issue is now either solved or secondary. A second issue might be the coming election. After all, if Abadi doesn’t win re-election then the suitable environment will clearly not exist, right? I personally don’t see any other significant factor that would constitute a need for the creation of a suitable environment. A recent article stated that education efforts are once again being implemented to inform the people of what to expect. This has occurred before, as we know, and seems somewhat minor to be a significant factor. There has been ample education and discussion on this matter.
Where economists used to argue entirely against the project, now the arguments are “how” to implement rather that “if” they should implement.
So, in that sense, the environment educationally is already suitable. Therefore I am left with the conclusion that the election is the key. It is a significant factor and could throw a real wrench into the gears if it doesn’t go down with Abadi on top. On the other hand, with a victory, and especially a significant victory, the environment would be suitable for implementation of the plan. Consider it sort of like the Trump election: a lot of promises were made, but only implemented once the election was in his hands. With that accomplished, he ran like a race horse and has, in a little over a year, accomplished 64% of his promises, the best record in history. Is Abadi looking at Trump as a “guru” to help him jump start his second term? Perhaps he is. What better kick off to a new term than to implement “THE PROJECT”?
Read more: http://www.dinarupdates.com/observer/
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Central Bank of Iraq Auctions $167,024,550 on April 3rd 2018
Baghdad (IraqiNews.com) The Central Bank of Iraq (CBI) currency auction on April 3 registered $167,024,550 in sales, a -10.15% volume decline from the US $185,900,715 sold by Iraqi Dinar, credit and transfer at the previous auction held on April 2.
The latest auction was attended by 45 banks and 9 remittance companies. The same institutions attended the auction held on April 3 compared to the previous auction.
Data for the April 3 auction was made public by CBI Announcement Number 3669.
Dollar sales in the in the period January 1, 2018 to April 3, 2018 saw an increase of -1% compared to the sales of US $9.35 billion in the same period in 2017. The total amount of US currency sold by CBI in the calendar year 2017 was US $15.7 billion.
An analysis of the monthly dollar sales by CBI since January 2016 reveals highly fluctuating volumes. During the period from January 2016 to February 2018, sales of US dollars averaged US $1.89 billion per month. Peak volumes were reached in May this year when sales touched US $2.3 billion.
Article Credit: http://www.dinarupdates.com/forumdisplay.php?5-Current-Iraq-NEWS
BGG ~ We will continue to highlight the regular auctions.
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Mishan al-Jubouri: The sale of the currency will not stop because politicians are the owners of fake banks
Said a member of the Parliamentary Integrity Committee MP Mishan al – Jubouri said on Saturday that “no one” can prevent the auction of the currency, while stressing that politicians are “owners” phantom banks.
“No one can prevent the auction of selling the currency,” Jubouri said in an interview with the program “Political Kitchen”, which is broadcast by Sumerian satellite channel, pointing to the reason that “politicians are the owners of fictitious banks.”
Al-Jubouri added that “each large party has 3 or 4 banks registered in the name of a brother, uncle or others,” pointing out that “the currency auction is an outlet for the benefit of these parties.”
A member of the Parliamentary Integrity Committee said that “one bank manager was locked up and the counterterrorism service intervened. He decided to arrest the director, one of the major currency dealers, responsible for the theft of 450 million dollars.” He said that he was ” Integrity or any other judicial authority. ”
“He said Jubouri, that” after that, turned the country, and imposed the political blocs on the judiciary to come out (bank manager) bail of $ 15 million, “asserting that” now in London. ”
The parliamentary economic committee warned on Wednesday (June 1, 2017), the central bank to continue its policy of classification of banks to varying degrees to participate in the window of the auction currency, calling him to commit to neutrality and non-discrimination between banks.
The Central Bank of Iraq sells the dollar to private banks and financial transfer companies through the auction, which is conducted daily and the amount of 150 million dollars, which increase these numbers or fall on demand by these banks, which affects one way or another on the reserve of the Central Bank of Iraq, which affected significantly in recent times As a result of the lack of adaptation between the dollar and between the sale through the auction.
Article Link: www.alsumaria.tv (Special thanks to Tim Tarkington)
BGG ~ Well, well, well… it’s finally getting out in the open. This is why (the long delays). The good news is – on other fronts, this is being dealt with, not hidden from the people and they are working to gain (or regain) the trust of the international community.
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Kaperoni (Dinar Guru) – Another low auction day around 1205 to $1 US dollar. My calculations put this at about two and a half weeks now of auctions that are within compliance. If the 90-day rule is true, I would expect the CBI to request article VIII in early June. Could or would the CBI wait before moving to Article VIII? It seems unlikely they would since continuing the auctions at these levels reduces the reserves. And initiating foreign investment is a top priority. One wild card in all of this is the timing of the upcoming new elections that coincidentally are occurring at the same time monetary policy needs to engage with the world financial system.
Read more: http://www.dinarupdates.com/observer/
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tlm724 (Dinar Guru) – Article: “Urgent: The value of the dinar rose to 1197 per dollar” It is great news…! Appears to me that the time is perfect to hold it under the 2%, they got this and we wait about 80 days, give or take, to see if they can maintain this ( I think they can & will). [Whats your thoughts do you think we may see so real action this year like starting the movement soon.] We are seeing action right now, so yes to answer your question, this year looks fabulous to me!
Read more: http://www.dinarupdates.com/observer/
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The Iraqi Stock Exchange is classified as one of the top 10 global markets
The Iraq stock market index has risen about 10 percent since the beginning of 2018, ahead of other similar markets, making it among the top 10 markets in the world, according to the Morgan Stanley Index.
According to the Wall Street Journal, Iraq’s financial market, in the upscale Mansour district of Baghdad, has defied the violent volatility that hit global markets this year.
Shares in listed companies are among the best performing companies in the world in the first quarter of this year, the paper said.
Investors are betting on the country’s economic recovery after defeating ISIS in a three-year war that destroyed large parts of the infrastructure, causing damage to those companies over the past period.
“Iraq is like other early markets, such as post-Soviet Russia and others, which have done well for investors,” said Grant Philgenhauer, director of the Furat Consulting Foundation, which runs the Iraq-Euphrates Fund.
“The fund has invested $ 130 million in the Iraqi securities market and has risen more than 31 percent in the first quarter of 2018,” he said.
The Iraqi stock market has a market value of about $ 10 billion, relatively small compared to other similar markets such as Argentina and Vietnam, and even regional markets in Saudi Arabia and Kuwait.
Article Credit: http://en.economiciraq.com/ Special Thanks to Charles Bright!!
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Kaperoni (Dinar Guru) – There is enough evidence from various news articles over the last month to imply the CBI is now in compliance with the IMF. The clock is now ticking. And to boltster my view, the CBI is selling $180+ million at auction per day. It is my view that the CBI will write a letter to the IMF asking for acceptance into Article VIII sometime around June 2018. This also coincides with an article that they want to end the auctions. I could be wrong and they could wait longer but that makes little sense with the continuing auction amount exceeding $180 million each day. 3 reasons, they said they want to end the auctions, the IMF made it clear Article VIII sends a positive messege to investors, and selling $180 million + will drain reserves.
Read more: http://www.dinarupdates.com/observer/
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G-Lin Article: “Urgent: The value of the dinar rose to 1197 per dollar” [If it goes much lower, it will not be very profitable and then why the auctions.] Yep the auctions need to stop. I think when they talk about preventing manipulation and fraud as far as deleting the 0’s, they are referring to the auctions. JMO.
Read more: http://www.dinarupdates.com/observer/
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“Abadi” and “Maliki” and “Allawi” will not get the post of prime minister and favorite Hadi al-Amiri
Baghdad News – Predicted the intellectual and political Hassan al-Alawi, not to get Abadi, Maliki and Allawi to the post of prime minister next, stressing that the next government is destined to remain weak.
Al-Alawi said in a press statement that “the next government is no different from its predecessors and estimated according to international plans to remain weak for the next four years.”
He added that “the reading of the political map confirms that the head of a coalition of state law Nuri al-Maliki and current Prime Minister Haider al-Abadi and the head of the National Coalition Iyad Allawi will not have any of them the next prime minister and won one of the three personalities,” expected that “the prime minister to the head of the coalition Al-Fath Hadi Al-Amri. ”
On the repeated warnings of rigging the elections, Alawi said: “Do not warn him of the fake.”
Prime Minister Haider al-Abadi warned Sunday against buying and selling election cards, which are punishable by 15 years in jail
Article Credit: baghdadnews.info
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Some interesting headlines…
Iraqi newspaper publishes the Financial Budget Act of 2018
MPs demand an emergency session to pass important laws
Predictions: Abadi when winning a second term .. will do 5 things
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International arrest warrants for hundreds of “corrupt” Iraqis, including a former prime minister!!
Twilight News – A new government source revealed on Sunday the completion of arrest warrants against those accused of corruption and waste of Iraqi funds.
“Some 1,000 arrest warrants have been completed against those accused of corruption, including political leaders and a former prime minister,” the source told twilight news. “The memoranda were completed under the supervision of an international investigation team.”
“The current prime minister has not yet decided on whether to accept the implementation of this matter before or after the elections,” the source said, speaking on condition of anonymity.
He said that “there is an international procedure in this regard, especially as investigations in this regard proved the contribution of stolen Iraqi funds to terrorist operations and armed organizations,” according to the source.
The Iraqi Prime Minister Haider Abadi, announced earlier, after the end of the war against Daqash, he will launch a major campaign against corruption, after the activation of the work of international investigators began their duties to this end in the capital Baghdad.
Iraq signed two years ago a memorandum of understanding with the United Nations to involve international investigators in the files of major corruption of priority.
Article Credit: Shafaaq.com (Special Thanks to Tim Tarkington and Charles Bright)
BGG ~ For those concerned this won’t include Maliki… this may not be the case. The language – “a former Prime Minister” was included in the news release.
This could mean Maliki, or it could mean Allawi or “what’s his face…” – Jaafari, I think, who was in the Oil Ministry. He was interim PM for like a year back in the early 2000’s…
It also points out Abadi is considering whether to allow the UN to proceed before the elections or after. I have a suspicion there is pressure being put on him over this. It may well be out of his hands soon.
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Click this link to join the DU “private” FaceBook Group…
https://www.facebook.com/groups/571383766355188/
(go here and ask to join… then add some Dinar Friends!!)
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Post RV Checklist (it’s getting to be that time!! Listen up!!)
Dos and Don’ts of Windfall Wealth:
Treat it like a PowerBall win
– Tell no one, not even family. If you must talk, do so with one who is already in the know.
– Don’t run out & buy new “stuff”. People notice.
– Get an unpublished number and give it out very sparingly.
– Get a tax accountant you can trust to make sure the IRS is satisfied (Certified Opinion is something to look into) and pursue asset protection…
Read Complete List: http://www.dinarupdates.com/showthread.php?18519-The-Post-RV-Checklist-and-Flashback-documents&p=128477#post128477
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The Presidency of the Republic announces the sending of the budget to the Ministry of Justice for official publication
Abadi vows to chase the big thieves and recover the money they have seized
Baghdad / … Al-Rasheed Bank announced Friday the launch of the first installment of salaries through the MasterCard card, one of the electronic payment tools, pointing out that the card is drawn from inside and outside Iraq .