Dinar Updates

BGG News, Highlights & Comments

Iraq prime minister promises corruption crackdown, says laws will protect nervous foreign investors

More than six months after Iraq’s leadership proclaimed the defeat of ISIS on Iraqi territory, the country is on a path to rebuild and has seen promising signs of international investment for its reconstruction.

“We are laying down all the legal framework … I think the worry is corruption, number one, which is hiding behind red tape and bureaucracy. We have established a higher committee which is headed by the prime minister and it has a follow up team to make sure to remove blocks as they are there because of the bureaucracy,” Al-Abadi said.

Al-Abadi appeared confident, despite the significant challenges ahead.

“I think now that the process of engaging investors in Iraq, I am sure in the next few months will be the foundation of this. We’ve already appointed a committee. Next month is going to be a meeting with major investors to follow up … And I hope that after the election they’ll immediately start.”

Article Credit: CNBC.com (Special Thanks to Vernell Washington)

Read Full Article Here:
https://www.cnbc.com/2018/02/18/munich-security-conference-iraq-prime-minister-hails-encouraging-progress.html

BGG ~ In all fairness, I should note a word of caution, though this is reasonably “mainstream”, it feels like an “overly rosy” report. Best case, this is not as I have reported these events. Sounds a lot like “pre-election” rhetoric to me.
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Central Bank of Iraq Auctions $190,127,818 on 19 February 2018

Baghdad (IraqiNews.com) The Central Bank of Iraq (CBI) currency auction on February 19 registered $190,127,818 in sales, a -2.46% volume decline from the US $194,932,241 sold by Iraqi Dinar, credit and transfer at the previous auction held on February 18.

The latest auction was attended by 45 banks and 9 remittance companies. The same institutions attended the auction held on February 19 compared to the previous auction.

Data for the February 19 auction was made public by CBI Announcement Number 3638.

Read More: http://www.dinarupdates.com/showthread.php?56268-Central-Bank-of-Iraq-Auctions-182-320-645-on-14-February-2018&p=181224#post181224

BGG ~ I will continue to highlight the regular auctions. After recently asking around about the reasons for the “tightening” of the supply of Dinar in the U.S… one of the main reasons I got was the fewer and fewer auctions. Wait – what?!? They are still having fairly robust auctions.

So, obviously, that’s not true… so what is it?

Another possibility is this MASSIVE financial embargo on Kurdistan, provided this was where currency was coming from.

I have also heard of a couple of major players talking about having money in – or being able to get money out of Kurdistan… all baloney. Kurdistan has been under very tight controls since snubbing the world diplomats with this sham vote pushed by Barzani.

Why was it a sham vote? Simple fact: you can’t just take what isn’t yours to take just because you vote on it.

Back to my previous rebuttal – anyone who actually had money in Kurdistan would have either gotten it out or is REALLY “up a creek”… likely just more B.S.

So…

1) Fewer auctions?

2) Tightening borders (fewer exports)?

3) More demand? I sincerely doubt it.

4) IMHO and most likely, the supply here in the U.S. from disgruntled sellers, which is likely where the bulk of the U.S. supply really comes from, and current interested buyers has finally reached a point of parity where the “supply – demand” scales are more evenly balanced.

Hence, the price goes up.
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COMMITTEE OF ACCOUNTABILITY: ANNOUNCE THE NAMES OF 5,000 PEOPLE INCLUDED IN THE SEIZURE OF FUNDS THIS WEEK

The Commission on Reconciliation, Accountability and Justice in the House of Representatives, that next week will see the announcement of the names of about 5,000 people included in the seizure of funds.

The head of the committee Hisham al-Suhail told the news agency, “The Supreme Commission for Accountability and Justice ended the names of all those involved in the seizure of funds,” noting that there is some delay from the Secretariat General of the Council of Ministers not to form a special committee, calling for the urgency of issuing instructions and the formation of the Committee through an approach The competent ministries shall designate the general directors who shall form the committee.

Read More: http://www.dinarupdates.com/showthread.php?56297-Announce-the-names-of-5-000-people-included-in-the-seizure-of-funds-this-week&p=181258#post181258

(Special thanks to Vernell)

BGG ~ Funny how that works… about one day after they realize the world isn’t going to “give them” anymore money, they go back and think about getting it back from the crooked politicians who’ve been stealing from the GOI and the people of Iraq.

According to recent estimates, they could collect as much as 500 BILLION (USD) back to the state treasury by enacting and enforcing simple legislation they’ve had in the works for some time now.

P.S. as reported in major OP ED’s in Baghdad recently, Maliki and his henchmen had better wind up on this list…   It is critical to Iraq’s long term success to get a handle on the endemic corruption.
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Iraq receives nearly $ 11 billion from Arab and foreign countries for reconstruction

Baghdad Mawazine News – Iraq received nearly 11 billion dollars from Arab and foreign countries during the Kuwait International Conference for the Reconstruction of Iraq.

Saudi Arabia’s foreign minister, Adel al-Jubeir, said that “the kingdom has allocated $ 1.5 billion for reconstruction projects in Iraq and the financing of Saudi exports to it.”

The Amir of Kuwait, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, announced at the Kuwait International Conference for the Reconstruction of Iraq, on Wednesday, that his country will allocate $ 2 billion in accordance with the mechanism of Kuwait Fund for the reconstruction of Iraq and encourage investment in it.

Read More: http://www.dinarupdates.com/showthread.php?56263-Iraq-receives-nearly-11-billion-from-Arab-and-foreign-countries-for-reconstruction

BGG ~ I keep hearing the complaints about Iraq getting all kinds of “welfare” as though they are living on these “pending grants” and IMF loans (instead of revaluing their currency).

I would be careful in assuming this is the situation or that any of this is any kind of “hold-up” to economic and monetary reform. I doubt so very much.

​Everyone (as in – the investors and countries) wants to get close, be in on the beginning, but not so much so that they are just giving “hand-outs” with nothing in return. Iraq has to do their part. I get a little bit of the sense Iraq is kind of getting the cart before the horse with this latest conference.

It has long been speculated (and openly reported by Iraqi economists) Iraq would be hit with a “wall” of investment capitol when they truly started economic, monetary and governance reforms. However, it does not appear to me we are quite to this point yet. Everyone wants in – Iraq just don’t have the temperature quite right yet.

Keep in mind… these are “allocations”, “pledges” and “financing” and “projected exports” for projects. Basically these are all “feel good, sweet nothings” at a conference.

Next Monday we’ll see what’s what. Thus far they are well short of the 100 billion in give-aways (and grants) they were asking for.

On the other hand – why should they be given anything (for free)? If they would just pass corruption law(s) currently caught up in their Parliament’s legislative log-jam and then enforce them, their state treasury will swell by an estimated 500 billion (as they have plainly reported).

No need for anything from anyone.

Further, it is my opinion, Iraq should be held to account for (that means – PAY FOR) the military and humanitarian aid tab they’ve run up over the last few years.