Chat Room – News Excerpts & Highlights
forestnr4 says(): 05/14/2017 (21:01 pm) – Number of readings: 231 – number (3923)
Hard currency and solutions “Easy!”
Hard currency and solutions “Easy!”
• d. Obeidi successful
Even ordinary citizens in recent years, officials and experts got used by economists to drive a alarm to warn of Iraq’s reserves of hard currency decline.
Another statement in this regard was the Governor of the Central Bank of Iraq and the Agency on the Keywords, who confirmed three months that the balance of foreign reserves of $ 49 billion before.
This is the foreign currency balance has dropped by more than a third compared to the highest level reached in mid-2014 when a record record of $ 77 billion.
This clearly indicates the existence of a serious structural imbalance in the balance of payments can not be resolved by administrative decisions easy, especially as indicators suggest continued depletion of foreign exchange reserves in Iraq in the short and medium levels.
All this threatens to increase the pressure on the national currency and shed more doubts about the country’s ability to finance imports and investments required.
Everyone agrees on the reasons for the sharp decline in foreign reserves , consisting primarily of American and European treasury bonds, in addition to cash balances in currencies the dollar and the euro and the pound sterling gold and alloy, with two no different that the decisive factor behind this crisis is the collapse of oil prices since June 2014.
It is true that prices recovered relatively late in the year 2016 after the OPEC and Russia ‘s decision to reduce production rates, but the return of black gold prices to previous levels remains a distant dream in the light of the continuing surplus in supply in the foreseeable future. From here it may not count on a substantial rise in imminent price.
But there is another reason for the problem lies in the low interest rates on a global level, which also means the Central Bank of Iraq for less on the US and European bonds and on foreign currency balances in foreign banks, which make up the lion ‘s share of foreign Iraq reserves financial return.
Versus quasi – consensus on the causes, there are significant differences in the proposed solutions to the crisis of the collapse of the foreign exchange reserves.
Most of the members of the Economic Committee in the Iraqi Council of Representatives and a lot of people interested in economic affairs focus on the fight against money laundering and what they call the “smuggling” hard currency and the black market and criticism of the auction currency of the central bank and even claim to stop it under the pretext of the existence of suspicion of corruption in the sale of dollars to private banks and corporate banking.
Some also suggested charging for hard currency transfer abroad. Some even go to the call for an end to the monopoly of foreign currency by the state and the prohibition of dealing citizens and their own companies.
Certainly the anti – money laundering and smuggling and corruption potential remains an important and pressing issue , regardless of the size of a reserve currency.
In this regard , there must be laws on the central bank and other organs of the state strictly applied. But the legitimacy of these measures do not justify the call for the imposition of arbitrary administrative restrictions on dealing in hard currency and look to the dollar and the euro as if it may not be safeguarded Haraz touched.
The claim for a state monopoly on foreign currencies to say the least for which it is an essential feature of the totalitarian systems. Hitler and Stalin has entered the history of the economy as the first dish of this monopoly as a principle in a permanent economic policy.
After turning this principle into mainstream policy in the socialist countries and in developing countries that have followed the strategy of the dominance of the public sector.
As usual , “excelled” tyrant Saddam Hussein to tighten control over foreign currency in the country until it became already monopolized by him and members of his family and those close to him. Not limited to the results of these sterile on the black market recovery only and the collapse of the Iraqi dinar and the deepening of imbalances in the distribution of income policy, but also produced manifestations of social behaviors and harmful.
There is no doubt that many of the Iraqis remember how it was some foreign and Iraqi expatriates are acting during the period of the siege as if they were “kings” just because they have a few hundred dollars.
jforestnr4 says():In short , it can be said that recourse to administrative procedures to impose arbitrary restrictions on dealing in hard currency and on the operations of conversion and other measures “easy” will not solve the problem of the depletion of foreign exchange reserves,
but will lead to the opposite effect of declining confidence in the national currency and fueling speculation and black market direct and harming the interests of citizens and restrictions on their freedom to travel, treatment and study abroad , and others.
The solution to the problem of the serious decline in hard currency reserves requires primarily economic rather than administrative procedures, particularly the implementation of difficult reforms in the area of the exchange rate and the activation of the customs tax.
It is quite clear that the value of the Iraqi dinar against the dollar after 2014 became exaggerated under the new circumstances resulting from the continued decline in oil prices. However , the central bank did not move and settled only by reducing the value of the Iraqi dinar in late 2015 by a small percentage did not exceed 2%.
A slight reduction of not commensurate with the financial and economic variables of the country. It is clear that the central bank adheres to a policy of fixed exchange rate peg to the dollar.
If this policy is necessary and justified after 2003 , and succeeded in establishing the necessary monetary stability to the process of development, cling to at the end of the Iraqi economy does not help in the long term.
It seems that the central bank ‘s reluctance to adopt flexibility in the exchange rate reflects the fear of potential political and social costs of the devaluation of the dinar against other currencies and the expected rise in the prices of imported goods.
On the other hand , this frequency confirms fears of circumventing the central bank ‘s independence is constitutionally installed and the increasing dependence of the government, especially after the overthrow of the former leadership of the bank , headed by Sinan Shabibi based on trumped -up charges of corruption and malicious.
But this situation will not serve to maintain monetary stability , which currently requires taking decisive and bold action, first and foremost a clear reduction in the dinar exchange rate. Can such a move that “phishing” more than a bird with one stone:
First , reduce the demand for hard currency and on imported goods , and secondly to improve the competitiveness of domestic production and thirdly to raise the state budget revenues and thus reduce the fiscal deficit.
This is confirmed by the experiences of several countries, including Russia and Egypt. In 2014 Russia entered into a very critical situation as a result of the collapse of oil prices and the West to impose economic sanctions right.
However , the expectations of the collapse of the Russian economy did not materialize. Thanks primarily to find a certain correlation between the Russian ruble exchange rates and global oil price.
It is true that this has led to the loss of the ruble for more than half of its value against the dollar in 2015, but at the same time gave a semblance of stability on the price of oil in rubles and thus prevented the erosion of state revenue.
This was not possible without the feet of the Central Bank of the Russian ruble to float in November 2014. Similar positive experience provided by Egypt , which has taken the other in late 2016 to float the pound.
Despite the controversy over the impact on the lives of the Egyptian citizen, this was a difficult decision behind the registration of successive rises in Egypt ‘s foreign exchange reserves.
Will be said , of course , Russia and Egypt , the circumstances are different from Iraq, and this is the word of self – evident does not offer nor delay because each country ‘s circumstances are different from another country, but that does not prevent the benefit from the experiences of other countries, especially since Russia , like Iraq , is primarily dependent on the sources of exports energy.
The conditions experienced by the Iraqi economy imposed on the central bank to move and pursue a flexible policy on the exchange rate as a prelude to float the dinar against other currencies in the medium term. Here it can resort to what it claims directed Managed Floating float which allows the central bank to intervene to prevent a sharp and dangerous fluctuations in the dinar exchange rate.
As an attempt to solve the problem of Iraq ‘s reserves decline of foreign exchange by instant decisions “easy”, it will only mean adventure and perpetuate the generation of other crises.
http://www.almadapaper.net/ar/news/5…87%D9%84%D8%A9
clay says to forestnr4():thanks buddy GM 🙂
forestnr4 says():AB Newsflash brought this article in last night, but all of it did not fully copy. The last half is a very very very important portion to the entire article!!!!
clay says to forestnr4():whats it saying
clay says to forestnr4():the last part
clay says to forestnr4():anything positive
forestnr4 says to clay():You have to read the entire article a few times to really get the context. In essence it is comparing Iraq to several countries like Eygpt, and Russia on currency reform. Each country has it’s own different circumstances to the need of currency reform and other issues that arise from currency reform.
forestnr4 says to clay():The solution to the problem of the serious decline in hard currency reserves requires primarily economic rather than administrative procedures, particularly the implementation of difficult reforms in the area of the exchange rate and the activation of the customs tax.
forestnr4 says to clay():The solution to the problem of the serious decline in hard currency reserves requires primarily economic rather than administrative procedures, particularly the implementation of difficult reforms in the area of the exchange rate and the activation of the customs tax.
forestnr4 says to clay():The solution to the problem of the serious decline in hard currency reserves requires primarily economic rather than administrative procedures, particularly the implementation of difficult reforms in the area of the exchange rate and the activation of the customs tax.
forestnr4 says():The conditions experienced by the Iraqi economy imposed on the central bank to move and pursue a flexible policy on the exchange rate as a prelude to float the dinar against other currencies in the medium term.
Here it can resort to what it claims directed Managed Floating float which allows the central bank to intervene to prevent a sharp and dangerous fluctuations in the dinar exchange rate.
forestnr4 says():The conditions experienced by the Iraqi economy imposed on the central bank to move and pursue a flexible policy on the exchange rate as a prelude to float the dinar against other currencies in the medium term.
Here it can resort to what it claims directed Managed Floating float which allows the central bank to intervene to prevent a sharp and dangerous fluctuations in the dinar exchange rate.
forestnr4 says():The conditions experienced by the Iraqi economy imposed on the central bank to move and pursue a flexible policy on the exchange rate as a prelude to float the dinar against other currencies in the medium term.
Here it can resort to what it claims directed Managed Floating float which allows the central bank to intervene to prevent a sharp and dangerous fluctuations in the dinar exchange rate.
forestnr4 says():Will be said , of course , Russia and Egypt , the circumstances are different from Iraq, and this is the word of self – evident does not offer nor delay because each country ‘s circumstances are different from another country, but that does not prevent the benefit from the experiences of other countries, especially since Russia , like Iraq , is primarily dependent on the sources of exports energy.
willie60 says to forestnr4():That’s an awesome article. Thank you. It gets right to the point.
Dkwsly says():That’s a good article
forestnr4 says():AB Newsflash brought it in late last night, but it did not copy in it’s entirety. There are slight variations to it using different translating tools, but the basic meaning is pretty much the same.
Dkwsly says():I have a question. I seen on recaps the chat from yesterday morning where BGG brought an article about Hawaji being held by Isis.
Dkwsly says():Did the IMF say Iraq needed to be free of Isis prior to the currency reform or is thisore speculation on the net
Dkwsly says):Or is this more speculation
Dkwsly says():Everyone seems to saying that Mosul is the key, but I would think if ISIS truly holds Hawji captive, it will need to be liberated first and they are saying that operation won’t start until July. Just wondering what’s everyone’s opinion is of this?
forestnr4 says):to what level the degree that security of the country needs to be shored up is anyone’s guess. To your question, it is simply an unknown answer. But everyday that goes by, we are that much closer!!!
clay says to Dkwsly():remember Mosul 2nd largest city and financial hub
clay says to Dkwsly():thats a huge deal
clay says to Dkwsly():not some small towns
clay says to Dkwsly():never heard of it
tman23 says():Hawiji… The Head of the Snake !! ………. Mostly ALL SUNNI !! ……..
clay says to tman23():thanks
clay says to tman23():never heard of it
clay says to tman23():is it small
clay says to tman23():got it around 100,000
tman23 says to clay():It is where the uprising started……When Maliki was in power and demonstrations began……It is where Shaharistani went to meet with them…….. So assume it is where the “Heads” of tribes sit…….
clay says to tman23():got ya ty very much 🙂
clay says to tman23():so still much tension there?
jtank says():tman thx – greatinfo
tman23 says to clay():Figure……You don’t want Peshmerga attacking the Sunni…….. and you dont want the popular crowd attacking…….and you dont want a full Shia” military attack on Sunni heads………
So they have it set for liberating it in July…….Which seems they are looking for Nujafi and company with the new political party to make new agreements which will help defuse the area on its own………
clay says():lets hope
clay says():makes sense
jeffusa says():ISIL’s Last Stand Begins as Iraqi Forces Attack Last Positions in Mosul
clay says to jeffusa():hey bro!
clay says to jeffusa():saw that
clay says to jeffusa():just hoping this has something to do with the RV
clay says to jeffusa():beginning to doubt it
clay says to jeffusa):maybe just my negativity today
clay says to jeffusa():snap out of it Clay s39
marylee says():Have you all seen this article http://middle-east-online.com/english/?id=83106
clay says to marylee():yes ty
clay says to marylee():on skype
jeffusa says():TEHRAN (FNA)- Reports said the ISIL terror group is in serious trouble inside their de-facto Iraqi capital, as the government forces close-in on the terrorist group’s last positions in Mosul City.
The Iraqi Armed Forces managed to capture the Rifa’i and Aribi districts on Sunday after a short battle with the depleted ISIL militants inside Western Mosul, Iraqi News reported.
With the Rifa’i and Aribi districts captured, the Iraqi Armed Forces are now in control of more than 90 percent of Western Mosul, leaving the ISIL on their last legs inside the provincial capital.
In the coming days, the Iraqi Armed Forces are expected to capture the remaining districts under the ISIL’s control and put an end to the terrorist group’s presence inside the city
clay says to marylee():this one is
jeffusa says(): http://en.farsnews.com/newstext.aspx?nn=13960225000545
marylee says():I hang out here a lot
clay says to marylee()::)
marylee says():Also on the facebook page
clay says to jeffusa():in coming days
clay says to marylee():good info there
jeffusa says():Mosul- ISIS has lost the 17th of July neighborhood, an important bastion in West Mosul, after Iraqi forces launched a new push from several directions to drive the militants from the city’s last pocket controlled by jihadists.
Now, the area controlled by the terrorist organization is no more than 7 percent of west Mosul, which is bisected by the River Tigris.
Jihadists are now retreating to the alleyways of Old Mosul to barricade in them.
Sources said that only “a limited number of gunmen” remain in the 17th of July neighborhood where heavy clashes are taking place between them and government forces.
Chief Lieutenant General Raed Shaker Jawdat, the commander of Iraqi Federal Police Forces, told Asharq Al-Awsat newspaper that his forces have “broken through the enemy fortifications” in the 17th of July neighborhood with mortar shells and machineguns.
Drones were also able to make target hits in enemy ranks, he said, although jihadist snipers tried to slow down the advance of the government forces
jeffusa says():In a statement Sunday, senior military commander Lt. Gen. Abdul-Amir Rasheed Yar Allah said Iraqi special forces are moving to the al-Eraibi and al-Rifaie neighborhoods, while militarized federal police and regular army forces are fighting ISIS in nearby al-Ektisadieen and 17th of July neighborhoods.
Yar Allah also said the forces “have broken through the enemy fortifications” without giving more details.
The operation to retake Mosul was launched in October and the city’s east was declared liberated in January. Iraqi forces launched the operation to retake the west the following month.
In recent weeks, US-backed Iraqi troops have slowly closed in on a small cluster of neighborhoods in the city’s west.
Patriotic Union of Kurdistan media official in Mosul Ghayyath Sorji told Asharq Al-Awsat that territory under the control of ISIS jihadists is gradually declining.
“The territory controlled by the organization is only 7 percent of West Mosul, meaning around six neighborhoods in Old Mosul, he said
http://english.aawsat.com/d-abdullah/news-middle-east/isis-loses-major-mosul-bastion
tman23 says to clay():Iraqi forces invaded the northern section of 17 Tamuz, the first district Islamic State captured in the city in 2014. He added that only a few number of militants are remaining in the city, suffering scarcity of food and combat supplies…….
THE LINK ALSO HAS A MAP WHICH SHOW THE 17 DISTRICT…….. IT ALSO SHOWS NOT MUCH LEFT BETWEEN THE DISTRICTS AND THE RIVER……
http://www.iraqinews.com/iraq-war/iraqi-forces-take-western-mosuls-uraybi-district-one-last-havens/
clay says to tman23():thanks
tman23 says():Hawija (IraqiNews.com) Politicians and locals’ pressures have mounted on the Iraqi government to carry out a security campaign to drive out Islamic State militants from the town of Hawija, southwest of Kirkuk.
Aljournal News website quoted Ahmed Khourshid, a member of Hawija’s mayoral council saying that some tribal representatives had given the Iraqi government a week before they launch an attack on the town.
He said the representatives were planning a conference on Tuesday discussing the delayed liberation and means to press the government on speeding up action in that respect.
“If the heinous torture of our people by Daesh (Islamic State) terrorists in Hawija continues without attention from the concerned (officials), attendants will give the government a week before they begin liberation operations,” Khourshid stated.
Meanwhile, Mohamed Tamim, an Iraqi parliament member, said in a statement that people in Hawija were experiencing “a genocide”, adding that the town has not seen “any action by security forces”. He urged Prime Minister Haider al-Abadi to hasten with the liberation of the town…….
clay says to tman23():wow poor people
clay says to tman23():sounds like now not July
Dkwsly says():Is the IMF requiring all of Iraq to be liberated or just Mosul prior to the currency reform?
tman23 says():https://twitter.com/hashtag/hawija?lang=en
kwsly says():It appears they only care about defeating Isis to gain the money from an RV and could care less about the people in Hawaji. Very sad.
tman23 says to clay():Read some here… https://twitter.com/hashtag/hawija?lang=en
Dkwsly says():It appears they only care about defeating Isis to gain the money from an RV and could care less about the people in Hawaji. Very sad.
tman23 says to clay():Read some here….. https://twitter.com/hashtag/hawija?lang=en
Dkwsly says):Wow it appears they are about to wipe em out in Hawaji too. Abadi has gotten very serious according to what they are showing on twitter.
tman23 says to clay():Enlarge the map…….. https://twitter.com/hashtag/hawija?lang=en
Dkwsly says):Tman23 – have they given an estimate of how long it will take to liberate Hawji? Is it very big or what?
tman23 says to clay():Hawiji…… Today, locals must choose between two equally unpalatable groups. Kurdish forces have been accused of cleansing Arab regions they enter; the PMU have engaged in similar, documented activity across reconquered Sunni areas with Shia populations.
Without government or international oversight, any liberation could precipitate serious violence – either in the form of reprisals against Sunni inhabitants thought to sympathize with ISIS, or between Kurdish and PMU factions.
clay says to tman23():(y)
clay says to tman23():sad either way
Dkwsly says():This is dated April 20. It says Abadi gave the green light to take Hawiji back but due to it being predominantly Sunni, they have postponed it to keep from causing more sectarian tensions.
Man this isn’t even part of the deal with the IMF. They said that even after liberation of Isis the insurgency will still continue for a long time. They said its been the center if insurgency for a long time.
So basically when they remove one terrorist group, another he takes their place. It’s a constant place of trouble.
Dkwsly says(): http://www.rudaw.net/mobile/english/kurdistan/20042017
clay says():been like that for 1000s of years
Dkwsly says):I don’t see how the IMF would ever demand hawiji being liberated as part of the deal. The reason for Mosul, was because of the hold ISIS had on the oil and Mosul has the 2nd largest CBI branch. It all comes down to the money..
clay says():it sure does
Dkwsly says():Yes Clay you are so right. They won’t stop fighting until they are all dead and that’s not gonna happen. We want an RV through and maybe we will see Mosul announced soon
clay says():not soon enough
clay says():if GOI can work with Sunni leaders that would be a great plus which I believe Abadi can do
clay says():he wants all sects to be included
tman23 says to Dkwsly():As I have said in the past……..and it just ruffles the skirts of many……..Iraq is a cesspool !!
clay says():and influenced now by Iran
Dkwsly says():Tman23 you are right! They are wealthy and insane at the same time. Definitely brings a new light to the saying “more money than sense”
clay says():lol
Dkwsly says():I believe Abadi is trying his hardest to do what is right but it’s just not in their blood to do what’s right
Dkwsly says():Clay are we get only 2 left in here
tman23 says():hold a second …..
clay says():no lol
clay says():lurkers >>>
tman23 says():So a few weeks ago I come across a 30 minute local fox news breaking news segment in Arizona…..Dec 15 2016……. Obama Birth certificate proven a forgery…..9 points of a forged document……. 30 minutes of airtime of investigators describing the forgery……. You can watch it on youtube……you won’t see it in our national media…… I KNOW…..NO POLITICS……BUT IT IS ALL RELATIVE……
tman23 says():SO last week we have Comey mis-speaking in Congress……..afterwards Hillary comes out and announces she is back and part of the resistance………. RESIST WHAT EXACTLY ??
The FBI retracts Comey statements and corrects them……….. She is BACK…….Trump fires Comey !! ……..NOTHING TO DO WITH RUSSIA !! IMO
tman23 says():Al Gore the player of climate change and Obama who has been appointed to the board of “carbon Credit Exchange” set up in Chicago…………. Gore requests…..15 TRILLION DOLLARS TO FIGHT CLIMATE CHANGE…….. Seriously one must ask …….where is that coming from ??
clay says():someone is getting paid off lol
clay says():$$$
Maureen1 says():Where is Loop ,has he left
Maureen1 says():Sure miss his morning posts
clay says():you are right not sure
tman23 says():So follow the isdd org……. Post 2015 summit they all agreed to invest multi billions in global infrastructure…….. SO BE IT !! BIG DEAL !!
But during that summit they spoke of 2012 when Shabibi came to visit them “the board” in Japan……..
And being in the news that year was Abadi announcing in late Sept the lifting the 3 zeros at the start of the year, another announcement followed Oct 7……..
Shabibi went to Japan for a “convention”…….Maliki arranged an issued warrant for his arrest. ………… Recall……Trump tweeted…… 16 trillion US Debt…..Iraq just valued at 16 trillion…INTERSTING !! …….
clay says to tman23():confused now
clay says to tman23():whats that have to do with our debt
SammmySossa says to tman23():So what are saying this will not happen soon or ever ?
magnetlady says():I have that happen once in a while too Zig. Eventually it goes away
magnetlady says():As more things are posted
Zig says():Okay…Thanks
SammmySossa says to tman23():hello
tman23 says to clay():Trump was insinuating that it was ‘interesting”…… the US debt was 16 trillion and Iraq was just valued then at 16 trillion…….. the insinuation being it may be tied together
tman23 says to SammmySossa():No…..I am not saying it won’t happen ever…… Quite frankly I look forward to see May 29th…- June 1st…….
magnetlady says():Hey tman – when is Ramadan again?
tman23 says to SammmySossa():May 29th
magnetlady says():I had in my mind end of May
magnetlady says():Thanks
tman23 says to magnetlady():Kuwait introduced and released their 6th series new edition on the first day of Ramadan back in 2014….. So the point I made to the past that nothing happens through Ramadan is completely false
magnetlady says():Oh yes I remember them working straight through Ramadan in the last few years.
tman23 says to magnetlady():And the second point I made for everyone was…….on 4/19/2015……Kuwait Central Bank passed a resolution that the 5th series that was in circulation would Now/Then have to be exchanged directly at the Central Bank ……and would be good for exchange for a period of 10 years………
tman23 says(): This is Iraq banking……….it has been in effect for better than 18 months,,,, The yahoooo articles about laundering are just that……. this is the real deal !! Also we have a new prepared project to provide the swift code for the other branches and each one is different from the other.
Anyone who does the banking transfer has to tell us this information:
Beneficiary Account Number.
Beneficiary’s name.
Beneficiary bank name.
The bank’s swift code.
And after the completion of privet financial transaction by swift system. Which’s doing by the beneficiary bank or the bank that does the process of transferring and this bank also transfer it to the beneficiary bank all by the same system which is swift system.
There must be these conditions and provisions to prevent money laundering operation, because the process of transferring is under the monitoring of the central bank of Iraq.
At the same time the swift system in our bank is connected to the world money laundering system and there is a list with the five prohibited names which are connected to the office of foreign assets control.
United nations
England Bank.
Central bank of Iraq.
European Union
This list is always updating and they connected to the swift system.
tman23 says():ATM card, you can bank 24/7. Enjoy a host of banking services including cash withdrawals, balance enquiries, mini statement & PIN change facility and more. You may withdraw from ATMs Iraqi Dinar (IQD), and in the future the service will provide the withdrawal of (USD).
reynoldse2 says():Tman, are you quoting an article?
reynoldse2 says():fellow Dinarians, we are looking HOT right now
http://www.dinarupdates.com/showthread.php?49118-Monday-May-15-2017
