Parliamentary Finance reveal the central bank to develop a plan to move the currency and circulation
[tlm724] “The plan by the Central Bank in order to attract these funds for the purpose of investment and moving the wheel of the Iraqi economy step earnest to convert rentier economy to a market economy in order to stimulate the banking sector there and to be a trading of funds between banks and traders instead of being money chunky in homes process
[tlm724] to convert rentier economy to a market economy in order to stimulate the banking sector
tlm724] DEFINITION of ‘Market Economy’
An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country’s citizens and businesses and there is little government intervention or central planning.
[tlm724] in other words an economy in which most goods and services are produced and distributed through free markets and we know the GOI wants a big piece of that pie ! How do they accomplish that ?? By imposing the tariffs across the board and through economic diversification ! A solid economic foundation through taxation to strengthen its power !!
[tlm724] we have watched throughout the years how oil revenues quickly crowded out any other economic activity, there was never new infrastructure built , no factories were refurbished etc…
[tlm724] a market economy must be driven by the private sector and we see the loans going out finally for private industry, from mom and pop all the way to big industrial loans !
They must diversify their economy away from the near-complete dependence on income from oil and gas ! We just saw a projection that oil may drop to $30.00 per barrel so time is of the essence.
[tlm724] along with taxes and the private sector comes an opportunity for Iraq to make some money another way and that is through an Infrastructure Bank (kinda like a sovereign wealth fund). Here is article BondLady posted about that : Infrastructure Bank .. strategic option for the development of Iraq
[tlm724] quote from the above “To support the strategy of decentralization in the governorates should be distributed liquidity available to the Bank annually to the provinces according to population density for each province , according to the economic feasibility of each project, and requires all bank transactions can enjoy the transparency, efficiency and compliance with the law and take responsibility.. 5.
What is the demand for his work? In the case of government approval for the proposal to establish the bank van to be done immediately: –
A – consultation with the international and Bank IFC to develop the details related to the project.
B – work to get Cabinet approval for the establishment of the bank.
(C) obtain approval the House of Representatives.
(d) demand from the Ministry of Finance activate the work on the project.”
[tlm724] this proposed policy is simple: by investing oil revenues into a more stable financial stream of wealth
[tlm724] as you can see transforming to a market economy is no easy task and if we look back we can see that baby steps have been taken on the road ie: AML , Investment Law etc….
The important thing to remember is that with taxation and international trade the WTO is hanging out with Iraq ready to help make their dreams come true ! I believe as we and the CBI move forward there must be an adjustment made to the dinar IMO. Will they come out with 50 k note ?? We don’t know that .
Will they increase the value of the dinar ?? We don’t know that either. But what we do know is this, there is a huge amount of pressure for Iraq to move forward , in banking, in trade, in industry away from oil and gas and in taxation.
Not to mention that the Prime Minister will slap the cuffs on anyone who interferes with the banking plan ! We know the IMF has the con to an extent ! All these things are good news for our investment.
The dinar exchange rate has moved, although in the wrong direction it still moved !! These are exciting times for sure ! When Iraq is ready we will see the dinar recognized throughout the world so that Iraq can pay for imports with the IQD thus eliminating the greenback Wink
Development of border points to ensure that customs tariffs are met
BAGHDAD / Obelisk: The Cabinet decided on Sunday, the introduction of points in the approved border crossing points shall check and make sure customs tariff are met, and the introduction of standardization of quality control points.
Information Office of the Council of Ministers said in a statement, “The Council of Ministers decided in its normal 46 held on (8 December 2015) the Federal / Public Authority Finance Ministry for Customs introduction Kmarkip points holds the audit and make sure that they satisfy the customs tariff law in righteous border crossing points.”
He added that “those points to take the necessary fulfillment of a full tariff when it is not paid in those ports or the remaining portion of which meet action when they meet in the complete lack of those approved border crossing points.
The statement continued, “The Council also decided that the Ministry of Federal Planning and by the Central Organization for Standardization and Quality Control introduction of standardization points quality control shall ensure the conformity of the goods involved in the border force approved the approved standards wherever required in the various governorates of Iraq.” LINK
Here is the confirmation from Abadi’s COM !