Currency Chatter (Forum Chat)

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hi-five:   Sabri: The government is trying to develop a new vision of the Iraqi economy
Under section: economicDated: October 12, 2015
2014-Nov-10-54605bff54e001  Baghdad / Iraq News Network spokesman said the prime minister Haider al-Abadi said Iraq office take years to turn it into a producer country “.ozkr Saad al-Hadithi in a press statement today:”

The government is working hard to cope with the unprecedented financial pressures experienced by the country in With the war on terrorism requirements and provide the needs of the citizens and the salaries of employees, retirees and file displaced and file reconstruction of liberated areas and this many files, pressing heavily on the government.

“He pointed out that” everyone knows that there is a decline it is unprecedented in oil prices and the government is working hard to diversify sources of income and find a role an active private sector in the support and state support in the creation of employment opportunities and transform Iraq from a functional state to state productivity and this vision strategy in restructuring the economy are working on their application and the announcement of several steps in this process, including the launch of loans to six trillion dinars and stimulate the private sector and stimulate the Iraqi market and promotion of lines productivity “,

stressing newborn” vision of the Iraqi government that is no way of reliance and dependence on a rentier economy that oil depends only source of income and this McCann prevailed in the previous period which is not true and the proof today are facing a major crisis.

“and that he” can not bind the future of Iraq’s oil market being the market oscillatory have caused a major crisis, as happened in the past year and this year, so the government is trying to develop a new vision of the Iraqi economy by restoring productivity state capacity and transform the Iraqi economy to a productive economy rather than as a consumer for many years and this needs to be efforts and time.

“He added that the “ongoing work on the application of this strategic vision but certainly can not get this thing in weeks or months, but needs the years with respect to this side because he has to be stimulating investment in Iraq and persuade local or foreign investor to finding investment ‘

and strengthen the private sector as an essential partner and an important occasion environment with the public sector in the production process. “facing Iraq pressure in the provision of financial resources, especially after the drop in oil prices in July 2014, which depends on imports of crude increased by 90% in the construction of its budget with the need to cover the war on terrorism and the provision of services and the salaries of employees and retirees expenses.  LINK

High-five:  The best way to develop the private sector and encourage foreign investment is to turn their money on and make it internationally easy to deal in Iraq.   They need to get the investment law passed and get this done.

Schízz:  Minister of Finance looks at the Peruvian capital of Iraq’s relations with the International Monetary Fund

10/12/2015 10:35  BAGHDAD / National Iraqi News Agency / nina / Search Finance Minister Hoshyar Zebari in the capital of Peru with the Deputy Director General of the International Monetary Fund Foro Sawa and Masood Ahmed Middle East official and North Africa in the Fund separately Iraq’s relations with the International Monetary Fund.

A statement from the Ministry of Finance had been discussed during the meeting take advantage Iraq of urgent financial assistance loan to a fund to support the budget RFI. ‘

He said he was also consider holding a session of bilateral and technical consultations in early November 2015, to discuss the access of Iraq to strengthen financial and economic management STAFF program MONITERING PROGRAME (SMP ) in the identification of achieving the required economic reforms and ways to fund the efforts of the government aimed to conduct a series of reforms to rationalize spending and the elimination of waste and waste of state funds and encourage private sector and foreign investment and internal support ./anthy8

Schízz:  What is a staff monitoring program?……here’s one related to afghan…
.
The SMP is designed to support the authorities’ reform agenda with a framework to address economic vulnerabilities and facilitate engagement with the international community to sustain donor support. address immediate fiscal and banking vulnerabilities, and help manage risks.

The SMP will also preserve buffers (low debt and a comfortable international reserves position), maintain low inflation and competitiveness, and lay the basis for high and inclusive growth. The budget and external deficits are projected to be financed by donor grants.

Under the SMP, fiscal policy will focus on mobilizing domestic budget revenue to finance projected expenditure and rebuild the treasury’s cash balance. Monetary policy will aim to preserve low inflation, and exchange rate policy will protect international reserves and competiveness.

Structural reforms will focus on: (i) budget revenue mobilization, expenditure control and repayment of arrears; (ii) financial sector reform to promulgate and implement the new banking law, amend the central bank law, strengthen banking supervision to deal with weak banks; and (iii) better economic governance by strengthening anti-corruption, anti-money laundering and countering the financing of terrorism regimes.

An SMP is an informal agreement between country authorities and Fund staff to monitor the implementation of the authorities’ economic program. SMPs do not entail financial assistance or endorsement by the IMF Executive Board.
.
Schizz:  Wow this seems to me like it will be Iraq handing over the reigns to a management company to do all the hard work for them (not surprising)….ie economic reform!
Is this iraq handing over the reigns to the IMF? if they decide to go ahead with this in November….sure looks like it to me!   Opinions please, this could be massive news

Phillyman:   Tuesday 13 January 2015 | 10:38 am   Industry discussed the implementation of the industrial strategy for converting a number of industries to the private sector

Baghdad/… The Ministry of industry and minerals discussed steps to begin implementing industrial strategy in Iraq until 2030, which aims to transform a number of industries to the private sector.

The Ministry said in a statement received “Iraq News”, copy “discussed steps to begin implementing industrial strategy in Iraq until 2030 prepared a specialized team from the Ministry and the private sector with the support of advisers, in addition to the technical reference of experts United Nations Industrial Development Organization (UNIDO) and the us Agency for international development and was approved in June of last year.”

He noted that “this strategy written by EYAD Iraqi realistic view is part of a wider process of reform in Iraq and means to regulate the performance of industrial system in all its aspects, to include the industrial sector and the business environment and governance focuses on the development of the Iraqi economy on a path of development till 2030”.

He said the strategy “consists of seven chapters and three stages the first short stretch for the period from 2014 until 2017 and the medium-term from 2017 until 2022 and long-term for the period from 2022 to 2030”.

“Each of these stages include a series of paragraphs, and the actions that the Department adopted and implemented by the industrial sector with a view to enhancing Iraqi industry all the public and private sectors, and through the use of the international experiences, especially the Government sectorJ owns approximately 73 industrial corporation with mixed sector consists of 23 industrial companies, as well as thousands of factories and small and medium-sized enterprises owned by the private sector. ”

The State seeks to focus under this strategy to keep some basic industries such as petrochemical, auto and iron and steel, aluminum, other industries management will shift to the private sector such as pharmaceutical and food industries, textile, electrical and other “finished 1

http://aynaliraqnews.com/index.php?aa=news&id22=46505

Phillyman:   My lack of tech skills could not bring the video over the link is there if you care to watch.

Video: Iraq Agriculture on Verge of Collapse   October 13, 2015 in Agriculture, Security

From Al Jazeera. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

Farmers in Iraq say their industry is on the verge of collapse.

They blame years of conflict, government neglect and the rise of ISIL for nearly destroying the agricultural sector.   Al Jazeera’s Imtiaz Tyab reports from Najaf:

http://www.iraq-businessnews.com/2015/10/13/video-iraq-agriculture-on-verge-of-collapse/

Phillyman:   FlyBaghdad has eyes on Dubai, then Europe

October 13, 2015 in Iraq Transportation News  – Iraq’s youngest airline, FlyBaghdad, is in talks to start flying to Dubai and plans to launch European routes in early 2016, according to a report from Gulf News.

The airline’s Regional Commercial Manager, Mohammad Abdali, told the news agency that the Iraqi-owned airline started domestic flights to Erbil, Sulaymaniyah, Najaf and Basra from its hub at Baghdad International Airport in July, and also flies to Istanbul in Turkey, Tbilisi in Georgia, Kuwait and Bahrain.

The company will start flights to the Iranian cities of Tehran, Isfahan and Mashhad on October 16, and is also planning on flying to Jeddah in Saudi Arabia, Abdali said.

London, Stockholm and Dusseldorf are potential future destinations.

It expects to break even in its first year of operation.

(Source: GulfNews.com)

http://www.iraq-businessnews.com/2015/10/13/flybaghdad-has-eyes-on-dubai-then-europe/

Brule:   schizz, there have been several articles stating the Iraqis were meeting with outside financial advisors regarding fiscal management.

Rocko:   Schizz, It seems the world bank declined to loan Iraq money, then the bond deal fell through because the interest rate was too high, so now it looks like they may be turning to the IMF to move forward. Who really knows. It sounds positive but the first two things have fallen through.

I’m no economist, but maybe the money they’re seeking is seed money to jump start the economy and the private sector after RV. Even if they raise the value, does that mean instant money. I don’t know.

Phillyman:   FlyBaghdad has eyes on Dubai, then Europe

October 13, 2015 in Iraq Transportation News – Iraq’s youngest airline, FlyBaghdad, is in talks to start flying to Dubai and plans to launch European routes in early 2016, according to a report from Gulf News.

The airline’s Regional Commercial Manager, Mohammad Abdali, told the news agency that the Iraqi-owned airline started domestic flights to Erbil, Sulaymaniyah, Najaf and Basra from its hub at Baghdad International Airport in July, and also flies to Istanbul in Turkey, Tbilisi in Georgia, Kuwait and Bahrain.

The company will start flights to the Iranian cities of Tehran, Isfahan and Mashhad on October 16, and is also planning on flying to Jeddah in Saudi Arabia, Abdali said.

London, Stockholm and Dusseldorf are potential future destinations.

It expects to break even in its first year of operation.

(Source: GulfNews.com)
http://www.iraq-businessnews.com/2015/10/13/flybaghdad-has-eyes-on-dubai-then-europe/

Brule:    Monitor: legislation economic laws support reforms

10/14/2015 0:00  BAGHDAD joy   pumice, despite the financial challenges faced by the country, but the government successes recorded at the level of economic reforms that need to be legislation laws and modify other supported and allow its application on the ground properly and as planned, according to what he sees as observers »Sabah».

The Council of Ministers endorsed the reforms presented by Prime Minister Dr. pack. Haider al-Abadi, backed by vote of the House of Representatives unanimously, as it included a feminine number of ministries and the integration of some of them and the abolition of positions, some officials and resolve some of the bodies and formations and open corruption and to bring the corrupt files into the judiciary.

In this regard, he saw the researcher and observer of economic policy Rahim al-Shammari said government reforms, especially in the side Economic must be associated steps research strategy, taking into consideration the laws and regulations, decisions and regulations in force in Iraq and the legislator and outgoing since years ago to organize the Iraqi economy.

Shammari said in his statement »Sabah», that these reforms need to sustainability and monitor the implementation is done through paragraphs of the legislation in Budget open the door to economic progress and expansion of investment, which has recently declined due to security conditions experienced by the country.

He also stressed the actual need for the facilities and controls and proper planning in the management of public funds, especially as the country in urgent need for projects that help absorb unemployment, extending citizens important services such as electricity, roads and bridges, sanitation and others, in addition to the advanced projects and modern services in the transport, logistics, marketing, noting that

The crystallization reforms paths laws of modern legislation and strategies in line with the new phase experienced by Iraq, to fit with the demands of citizens set up projects and to simplify procedures and provide a safe work environment and activate the control, and the elimination of financial and administrative corruption.

And inter-Shammari said the financial crisis added burden another package of reform, but the government teams (representatives from government departments, and private sector) operating in coordination with the advisers have found visions of alternative ways to support service sectors and a shift toward a market economy through the work package supports the private sector and partnership with the public sector, backed by the constitutional and legal frameworks, noting at the same time that these reforms need to be real time and the will to implement them.

He expressed the hope in the optimal implementation of the package of reforms made ​​by the government, the serious and the will of the government departments concerned before the reforms, similar to European countries that have achieved successes in economic transformation.

And finds Observers in the financial and economic affairs, told »Sabah» that government reforms issued by the Council of Ministers package would fill a large part of the federal budget for the next year they include reducing its number of ministries and the abolition of some of the bodies and reduce the large number of protections officials, Marjaheen that these reforms,’

if implemented in a practical and effective will provide about 30 percent of imports in 2016 budget, reason to bypass the big concerns on the Iraqi economy in the event of continuing decline in world oil prices. According to a member of the Finance Committee MP Faleh applicable in a press statement that the reforms passed by the House of Representatives package will provide about more than $ 10 billion.

http://www.alsabaah.iq/ArticleShow.aspx?ID=102249

schízz:   Yep they clearly don’t have the skills to jumpstart the economy…or the will to do the hard work to get it done so looks to me like come November they are going to managed, in an official way by the IMF. Well we know what the IMF have been telling them to do…open up and depeg from the dollar.

Not surprised by this really, just surprised it was not taken up as an option years ago!

Aloha Alex:  May I assume that is good news Schizz? I’ve been barking since back year 2010 that Iraq cannot go forward without intervention. Perhaps understandable – they have never done this kind of thing before. “Nation Building” sounds good, but what a risk!

Brule:   This article is from 10/09/15

Iraq express his desire to develop its relations with the International Monetary Fund to help him confront the financial crisis

10/9/2015   Expressed Finance Minister Hoshyar Zebari, during a meeting with the CEO of the Arab Group at the International Monetary Fund [IMF], Iraq’s desire to develop its relations with the IMF, within the mechanisms to provide support, and thus contributing to help it cope with the financial crisis.

According to a ministry statement, received by the agency all of Iraq [where], a copy of it that Zebari “met, Thursday, Hazem Albiloa Executive Director of the Arab Group at the International Monetary Fund, and during the meeting to review the relationship between Iraq and the International Monetary Fund,

as the minister expressed appreciation for the speed Bank In response to the request of Iraq in obtaining a loan from the Fund in the context of rapid funding mechanism, and Iraq’s desire to develop its relations with the Fund within the mechanisms to provide support and assistance to help to help Iraq confront the financial crisis afflicting.

“He added,” on the other side of the meeting and in the presence of representatives of the Iraqi Central Bank, it was also discussed Iraq’s relations with the Fund and the proposed consultations between the two sides in early November next “.anthy

Schizz:  Hey Alex, it sure sounds like good news to me. They will do everything, including deciding exchange rate policy. Manage the reserves. Open the economy, build the private sector. Control inflation. Basically just get the country up and running again while teaching them morons how to do it themselves.

Looks like they are finally realizing they don’t have the skills to do it themselves, not when they can’t even path essentials laws because of squabbling because of greed.

I think this is being considered now because nothing is getting done without it, this is an intervention where iraq basically let the imf do whats needed for them.

Aloha Alex:   Sounds good to me mate. I just hope I don’t have a nightmare tonight of Sistani declaring a Fatwa on the IMF! 😆

Cheeres to you, Brule, G-Lin, Philly, and the other 2 or 3 that I know I forgot, for articles and input! (heck, I can’t even remember what I had for breakfast)

KJWayne:  Iraq has always had a dictator type person ,to tell them what to do and when to do it . Everybody else ran scared to do any thing but what they were told. Now , when they can pick and choose, no one wants to step up and say ,” lets do it this way or that way “. Iraq is still not understanding that EVERYONE does not have to agree to go forward. Majority rules and that is that !

Thats right on KJ, democracy doesn’t work in the middle east, only an iron fist…they have been trying to install democracy in Iraq since the early 1900’s maybe late 1800’s….us brits tried it, even installed our very own monarchy system for them. It has never worked, ever.

These people do need to be told what to do, it’s all they have ever been used to throughout history, do this, do that. Everytime it has been decided they need to modernise it fails. Only an iron fist ruling system works in this region of the world.

Here’s hoping they do hand over to IMF in November, we may just see their economy open up as well as their banking structure….along with international status

Aloha Alex:    Can things finally be lining up? Between what you said and now US and Russia in competition to eliminate terrorists, we might be witnessing the first chapter of real progress.

Brule:  Russia might be ahead with bombs dropped, but when you don’t care who you hit on the ground the moves are not strategic.  It looks like the Russians are playing Whack-a-Mole, but the moles are human beings in this case.

danny griffin:   it sounds kind of funny to hear it said russia whacking terrorists, when often russia appear to be terrorists themselves.

PreacherMan:  I think your right, AA, its not only Russia, read this today.

Iran sends fighters to Syria, escalating its involvement
Associated Press By ZEINA KARAM and SARAH EL DEEB  4 hours ago


FILE – In this file photo made from the footage taken from Russian Defense Ministry official website on Friday, Oct. 9, 2015, a bomb is released from Russian Su-34 strike fighter in Syria. Hundreds of Iranian troops are being deployed in northern and central Syria, dramatically escalating Tehran’s involvement in the civil war as they join allied Hezbollah fighters in an ambitious offensive to wrest key areas from rebels amid Russian airstrikes. (Russian Defense Ministry Press Service via AP, File)

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BEIRUT (AP) — Hundreds of Iranian troops are being deployed in northern and central Syria, dramatically escalating Tehran’s involvement in the civil war as they join allied Hezbollah fighters in an ambitious offensive to wrest key areas from rebels amid Russian airstrikes.
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Their arrival, a regional official and Syrian activists said Wednesday, highlights the far-reaching goals of Russia’s military involvement in Syria. It suggests that, for now, taking on Islamic State extremists in eastern Syria seems a secondary priority to propping up President Bashar Assad.

The development is almost certain to increase pressure on Western-backed rebels, who are battling multiple foes, and push more civilians out of the areas of fighting, potentially creating a fresh wave of refugees.

Russia began its air campaign Sept. 30, and Syrian troops and allied militiamen launched a ground offensive against rebels in central Syria a week later. Russia says its airstrikes are meant to weaken the Islamic State group and other “terrorists” in Syria, but Western officials and Syrian rebels say most of the strikes have focused on central and northern Syria, where the extremist group does not have a strong presence.

The official, who has deep knowledge of operational details in Syria, said the Iranian Revolutionary Guards — currently numbering around 1,500 — began arriving about two weeks ago, after the Russian airstrikes began, and have accelerated recently. The Iranian-backed group Hezbollah has also sent a fresh wave of fighters to Syria, he told The Associated Press.

Iranian and Syrian officials have long acknowledged Iran has advisers and military experts in Syria, but denied there were any ground troops. Wednesday’s statements were the first confirmation of Iranian fighters taking part in combat operations in Syria.

The main goal is to secure the strategic Hama-Aleppo highway and seize the key rebel-held town of Jisr al-Shughour in Idlib province, which Assad’s forces lost in April to insurgents that included al-Qaida’s Nusra Front.

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FILE – In this November 24, 2011 file photo, pro-Syrian …
FILE – In this November 24, 2011 file photo, pro-Syrian government protesters shout slogans and wave …

The loss of Jisr al-Shughour, followed by the fall of the entire province, was a resounding defeat for Assad, opening the way for rebels to threaten his Alawite heartland in the coastal province of Latakia. The official suggested the Syrian army’s alarmingly tenacious position around that time is what persuaded the Russians to join the fray and begin airstrikes two weeks ago.

The Syrian government and Iran had been asking Russia to intervene for a year, the official said, speaking on condition of anonymity because he was not authorized to discuss military affairs. He said the Russian “tsunami wave” has given allies such as Iran the cover to operate more freely in Syria.

His account of Iranian troops arriving ties in with reports from Syrian opposition activists, who reported a troop buildup in the northern provinces of Idlib and Aleppo. The Syrian Observatory for Human Rights also reported Wednesday that Iranian troops were arriving and being transported to a military base in the coastal town of Latakia, in the town of Jableh outside the provincial capital.

At least two senior Iranian commanders were killed in Syria in recent days, including Gen. Hossein Hamedani, a senior Revolutionary Guard commander, who died Oct. 8 near Aleppo.

“Syria will witness big victories in coming days,” said Gen. Mohammad Ali Jafari, chief of Iran’s Revolutionary Guard, speaking Monday at Hamedani’s funeral.

“Sending more troops from Hezbollah and Iran only increases the shelf life of the Syrian regime, which is destined to end,” Maj. Jamil Saleh, the leader of Tajammu Alezzah, a CIA-backed Free Syrian Army faction, told the AP. “It will only add more destruction and displacement.”
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FILE – In this May 9, 2015 file photo, a Hezbollah …
FILE – In this May 9, 2015 file photo, a Hezbollah fighter looks toward Syria while standing in the …

He said their presence in Syria is not new but had been kept quiet.

“Now they are taking cover behind Russia since it is a super power and strengthens their position,” Alezzah said.

The Syrian army began its offensive a week ago against rebels on three major fronts in areas between Idlib and Hama. To the north, the Islamic State group capitalized on the strikes against rebels in northwestern and central Syria to capture a string of villages and a main military base from insurgents that brought them closer to Aleppo, Syria’s largest city.

“They took advantage of the vacuum,” said Lt. Colonel Ahmed Saoud, commander of 13th Division, a rebel group that is part of the Free Syrian Army. The group is a staunch IS opponent and operates in Aleppo.

J.M. Berger, a nonresident fellow at the Brookings Project on U.S. Relations with the Islamic World, said the moderate rebels “are in a pretty bad spot, unless the West is prepared to sponsor them over the long term in a full-on proxy war against the Russians.”

Such support would be “a complicated proposition,” he added, given that a lot of the materiel the U.S. has sent to moderate rebels has ended up in the hands of jihadists.
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FILE – In this May 24, 2015 file photo, Hezbollah fighters …

FILE – In this May 24, 2015 file photo, Hezbollah fighters stand guard during a rally commemorating …

Mathew Henman, head of IHS Jane’s Terrorism and Insurgency Centre, said the Russian airstrikes against more moderate, nationalist elements of the opposition has facilitated IS territorial gains in these areas, ultimately “leaving the government and its allies principally in a conflict with hard-line, fundamentalist actors.”

The official who spoke to AP all but confirmed that the Islamic State is not the priority for the Syrian troops and their allies, saying most areas held by the group in eastern Syria are desert regions considered to be on the periphery.

A week into the multipronged offensive, insurgents say they are overstretched, exhausted and their ammunition is depleted. There have been hundreds of sorties in an area that stretches for about 60 kilometers (about 35 miles), and a significant mobilization of ground troops.

And yet, rebel commanders say the offensive has failed to dislodge the various insurgent groups from territory they control that leads to the heartland of Assad’s power. The rebels are backed by the U.S., Saudi Arabia, Turkey and Qatar, including some ultraconservative groups and al-Qaida affiliates.

Instead, the rebel groups are still pushing back. Some are using U.S.-delivered TOW anti-tank missiles, while others are resorting to tactics such as booby-trapped cars.

Charles Lister, a Syria expert at the Brookings Doha Center, said much will depend on how quickly and efficiently the rebels’ weaponry can be replenished by the states supporting them.

The CIA-backed rebels shrugged off criticism of cooperating with al-Qaida.

Saoud, the 13th Division commander whose fighters received TOW missiles, said he worked in the same trench with a faction from the Army of Conquest. That umbrella group includes militants from the Nusra Front.

There is now something bigger than our differences and disagreements. It is the Russian invasion,” he said. “It is an emergency situation. Everyone would understand that.”

Saoud said only one of his bases was hit by the Russians, with few casualties. The rebels have kept a lid on their casualty figures, just like the Syrian government.

“With all that firepower, with new launchers and a hail of airstrikes … they were not able to advance,” Saoud said of the government troops. “In my mind, that is a victory.

Schízz:   Just had a thought this morning…..could this thing in November be Iraq handing over to the IMF or whoever, who is then supervised by the IMF to RV this damn thing? it is clear if they do hand over everything is done for them concerning economic growth, fiscal policy, exchange rate policy, everything that we want done. Just a thought…

Schízz:   This has been put to Abadi…

.Majida al-Tamimi submit a proposal to reform the financial system and trapping the doors of corruption and to prevent wastage of public money

10/14/2015 10:37  BAGHDAD / National Iraqi News Agency / nina / member of the parliamentary finance committee Majida al-Tamimi said, “it submitted a proposal for reform of the system of financial and trapping the doors of corruption and to prevent wastage of public money.

She said Tamimi, according to a statement of the political body of the Sadrist movement,” The currency auction that takes place in the Central Bank of Iraq is aspect of corruption adult corrupt, “indicating” that the state should take proven steps in developed countries to reform the financial reality of the country.

“explained that” when he wants the merchant to import goods from outside the country, it opens the adoption (LC) in the bank, and then it is converting the amount of money, and after the receipt of the goods after several formal procedures at the border, to prove that the trader has actually import the goods, and is there anything official transfer of funds through the bank,

“pointing out that” the trader now takes money and Aisturd only 5 or 10% of its value , and imported goods of poor quality, as well as to the names in the lists of import are the names of the fake does not exist for it.

“She noted member of the Finance Committee that it” made ​​a proposal to Dr. Haidar al-Abbadi Prime Minister to reform the system of Finance of the country, “asserting that” when the correction of that system, it It will besiege the doors of corruption and to prevent wastage of public money “./anthy9

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Schizz:  Sounds to me like she’s saying rv the damn currency 😛
Roll on November, if they hand over we will be waiting on people who know what they are doing and not a bunch of lazy ***

Brule:   It seems to me that if the tariffs were implemented at the borders, and controlled with an electronic system, where the information would go directly to the CBI, then it would have proof that the goods had actually entered into Iraq and the invoice would need to match the shipments bill of lading,

and the monies could be cleared once verification was certified, and information sent to the private banks. End of corruption, for the most part, and money laundering IMO.

Better yet, Iraq needs more industry which would end most of the imports, and end the corruption and money laundering.

Schízz:   Thing is though Brule is that imo there is corruption in the cbi too, i’ve been pretty sure about that since they slipped up and posted auction results ahead of time. I think there is corruption in everything.

Hoping we get a new cbi guy soon, that would be a great start 🙂

Massive positive thoughts going out to iraq to hand over come November, i’m pretty sure we will watch iraqs economy explode in pretty quick time…maybe just in time for a rate change come jan 1…..i’m kinda thinking they may let the rate loose right off the bat….as i said, positive thoughts for that!

Rockstar:   Just about the best we can hope for Schizz thanks for your thoughts!

Brule:   I agree completely, schizz.  Corruption is rampant everywhere, and does need to be removed, if possible.  But there are steps that could at least document activity and remove some of it.

G-Lin:   Here is an art. on the “Banking Act.” I think this is a big part of the restructuring. They are working on the bill. It also addresses deposit guarantees. 😉

Parliament is considering a proposal to unify the banks vulnerable to bankruptcy for “protection”

The state’s Rafidain Bank

Parliamentary Finance Committee announced Thursday, the existence of a new formula to unify the banks and private banks vulnerable to bankruptcy through the integration of all banks or three in one new bank, as pointed out that it needs to be a new law for banks to do so, indicating it was working with the parliamentary committees in House of Representatives for the purpose of coordination with the General Secretariat of the Council of Ministers to send the Banking Act

He said committee member Abdul Qader Mohammed’s (tomorrow’s Press), on Thursday, “There is a new version of the unification of the banks and the integration of all banks or three Bank One to avoid the problem of bankruptcy,” noting that “this formula strengthens the work of banks, rather than be declared bankrupt.”

Mohammed said that “the formula that considers a proposal to rescue the banks,” pointing out that “if it is necessary to enact a law in the House of Representatives and legislation and to address some of the banks in bankruptcy.”

And that “the Commission is working the work of parliamentary committees in the House of Representatives for the purpose of coordination with the General Secretariat of the Council of Ministers to send the Banking Act and amended and passed in the House of Representatives.”

He was an economic advisor to the Prime Minister, the appearance of Mohammed Saleh, has explained in a press statement earlier that “government deal was limited only with government banks and neglected private banks, this gives inferiority look for private banks approved, referring to” provide options for government institutions deposit in private banks in accordance with the guarantees Lima legal guarantees the protection of public money. ”

Saleh said “the Ministry of Finance was committed government departments not to deal with private banks due to the exploitation of a banks and government funds in financial speculation, pointing out that he can not punish private banks because of my family and one bank error”.

The Iraqi banking system consists of 54 banks, including seven state banks, one of them an Islamic newly established, and 23 private commercial bank and an Islamic 9 and 15 branches of foreign banks to banks. As well as a representative office of a foreign bank one.

There are many institutions that do some banking, including 34 money transfer company, and about 2,000 affiliated banks exchange company, with Loan Guarantee Company, to finance small and medium-sized enterprises, with the two companies for services of electronic banking and smart card, in addition to about 800 branch belonging to the banks and spread over all of Iraq’s provinces.

https://translate.go…t-text=&act=url  Broken link – sorry

Aloha Alex:   Hey Schizz, I was asleep at the wheele on this one, please help. I had no idea that an outside financial institution, like the IMF, can actually step in whether the Iraqi government likes it or not, and take over. What is the protocol for that?! Does the IMF need to get officially invited by the CBI?

And if the GOI or the head Ayatollah don’t agree, then too bad? Maybe this is why the currency never went international because the corruption was so pervasive that the corrupt thought may as well keep it corrupt til the IMF takes over. GO IMF!

Schízz:   Hey Alex, they are meeting in November to dicuss what is called a staff monitoring program..I looked it up and its basically assistance in everything economic, it will be like the IMF and other orgs telling them what to do and when to do it and iraq will do it when told.

Here’s the description i found about it…..im not sure if the imf or whoever actually take over or its as i said before. At the moment the IMF and world bank are just advising, this new thing will be more than that, they will impliment economic reform their way.
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The SMP is designed to support the authorities’ reform agenda with a framework to address economic vulnerabilities and facilitate engagement with the international community to sustain donor support. address immediate fiscal and banking vulnerabilities, and help manage risks.

The SMP will also preserve buffers (low debt and a comfortable international reserves position), maintain low inflation and competitiveness, and lay the basis for high and inclusive growth. The budget and external deficits are projected to be financed by donor grants.

Under the SMP, fiscal policy will focus on mobilizing domestic budget revenue to finance projected expenditure and rebuild the treasury’s cash balance. Monetary policy will aim to preserve low inflation, and exchange rate policy will protect international reserves and competiveness.

Structural reforms will focus on: (i) budget revenue mobilization, expenditure control and repayment of arrears; (ii) financial sector reform to promulgate and implement the new banking law, amend the central bank law, strengthen banking supervision to deal with weak banks; and (iii) better economic governance by strengthening anti-corruption, anti-money laundering and countering the financing of terrorism regimes.
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An SMP is an informal agreement between country authorities and Fund staff to monitor the implementation of the authorities’ economic program. SMPs do not entail financial assistance or endorsement by the IMF Executive Board.

Aloha Alex:   Cheers mate. Maybe time is up and the big boys with dem banking connections want a year end bonus.

G-Lin:   IMF’s Middle East Regional Technical Assistance Center Concludes Regional Workshop on Budget Preparation

Press Release No. 15/472  October 15, 2015   The International Monetary Fund (IMF)’s Middle East Regional Technical Assistance Center (METAC) held a Regional Workshop on budget preparation at the Dead Sea, Jordan from October 12–15, 2015.

It was attended by senior representatives of Finance and Planning Ministries from the Middle East and North Africa (MENA) region. In total, 23 delegates from Afghanistan, Egypt, Iraq, Jordan, Kuwait, Lebanon, Oman, Sudan, Tunisia and the West Bank and Gaza attended the workshop.

The workshop focused on the techniques and processes required for successful preparation of annual and medium-term budgets in the context of governments’ fiscal policies and financial constraints. It also served as a platform for sharing the participating countries’ experience of improving public sector efficiency and effectiveness, and for discussion of potential alternatives to overcome fiscal pressures.

A highly participative approach was adopted, based on breakout group discussions and presentations in plenary sessions. Participants were encouraged to share their experiences and ideas, with a view to establishing a basis for continued knowledge sharing throughout the region.

During the workshop, participants discussed the challenges their countries face in preparing medium-term macroeconomic and fiscal forecasts, formulating credible budgets, and improving the efficiency and effectiveness of public spending. Critical issues and risks—technical, institutional and political—that still need to be addressed were also discussed.

Quick links:

Press Release No. 04/224: Inauguration of the Middle East Regional Technical Assistance Center (METAC)
Factsheet: IMF Technical Assistance
Factsheet: IMF Regional Technical Assistance Centers

http://www.imf.org/external/np/sec/pr/2015/pr15472.htm
Rockstar:  Excellent post Schizz everything highlighted in red is amazing. It sure will be interesting come November. Also G-Lin the banking act article sure has some teeth in that as well. I can’t wait for this coming Monday to see if they actually vote in the investment law like they have said they will.

Mike:   Thanks, Schiz, good stuff.  It’s clear that Iraq is in a jam right now, the sovereign bond program has been scrapped, the domestic bond program is floundering from lack of interest and there’s just not enough money to borrow to make up for the budget deficit.

Iraq needs to implement change now, there is no time to wait.  I think there are many in Iraq who are very powerful and completely ignorant about how monetary and economic policy work and have resisted change for years.  Now that Iraq is on the ropes, maybe now the IMF, and those who understand how deep a hole Iraq is in, will have a chance to implement the much needed changes.

I’m concerned about how the IMF is going to protect the reserves, in the 2015 Article IV consultations the IMF encouraged Iraq to remain pegged to the dollar, which goes against how Iraq can and will protect the reserves.  From what I can tell, the IMF’s main concerns are eliminating corruption and getting the banks back online with enough in reserve to give depositors back their money.

Here’s hoping they’re going to focus on more than just putting out the fires, Iraq needs to start moving forward at some point.

Schízz:   Cheers Mike, i’m just waiting now for more information to come out about this so we can understand it a bit better but it sounds like good news, well for iraq cos they clearly can’t do it alone….

just need to see how its going to work, if it’s going to be the imf (which im not certain) or some other org that will impliment economic reform. I have a feeling the IMF will be overlooking not implimenting, just not sure. Hope some more info comes out soon which helps clear it up a little

schízz:   Here is another example of a staff monitoring program…

IMF Managing Director Approves a Staff-Monitored Program for Zimbabwe

Press Release No. 13/174  June 13, 2013  The Managing Director of the International Monetary Fund has approved a Staff-Monitored Program (SMP) for Zimbabwe, covering the period April-December 2013. An SMP is an informal agreement between country authorities and Fund staff to monitor the implementation of the authorities’ economic program.

The SMP supports the Zimbabwean authorities’ comprehensive adjustment and reform program and has been endorsed by Zimbabwe’s Cabinet, a strong signal of their commitment. A successful implementation of the SMP would be an important stepping stone toward helping Zimbabwe re-engage with the international community.

The SMP focuses on putting public finances on a sustainable course, while protecting infrastructure investment and priority social spending, strengthening public financial management, increasing diamond revenue transparency, reducing financial sector vulnerabilities, and restructuring the central bank.

Schízz:   All the different examples I have read seem to be about getting the country who is seeking help to open up and go international. That seems to be the main goal here.

I truly think if we see this passed in November we are going to be closer than ever to this thing going live. Iraq can’t engage with the international community without a live rate.

Of course each agreement is different from the other but all have the goal of going live……we need the iraqi gov to stop being dicks and accept this…..which is prolly not gunna be an easy thing to be passed with so much corruption going on.   If they accept it I reckon its time to get damn excited

Schízz:   Not sure I can pump any more how excited we should be about this 😛

Really surprised guru land is not all over this, just shows how far ahead of the game we are here on CC

http://www.currencychatter.com/apps/forums/topics/show/13260402-new-iraqi-economy-vision?page=1

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