Aggiedad77: Ok, this was posted by WS...and highlighted by DB...(See article below) ..thanks to both of you.....this article IMO is HUGE.....HUGE.....it's telling us that not only has Iraq passed the financial crisis.....HUGE......but they have done so in a SUCCESSFUL way.....again HUGE......plus they are SCREAMING at us about the world's growing CONFIDENCE in Iraq......once more....HUGE.....
This has the ring of financial reform to it from top to bottom.....Rasheed and Rafadain Banks stepping up to offer loans......loans that will bring providing a productive economy through the transformative process that will allow for multi-resource production programs.....
It is this kind of kick start to the economic reforms that will help Iraq get a running start at other revenue sources besides oil.....HUGE....HUGE....
Its one of those TA-DA moments that Frank smiles about......it's being orchestrated right before our eyes......oh so.....oh so what.....you got it.....HUGE......IMO of course.
Walkingstick: Iraq surpassed the most dangerous phase of the financial crisis
BAGHDAD - The joy of pumice
at a time when the Committee of Economy confirmed Alastosmaralgnapeh and theMinistry of Planning skip Iraq stage the most dangerous of the financial crisis experienced by because of the low sale of crude oil prices in world markets, thegovernment announced the adoption plan faces all the possibilities and economic fluctuations. Successful measures , said the financial adviser to the President Minister Dr. appearance of Mohammed «morning»:
The »government adopted a program and aplan and measures to court and successfully to face all possibilities». promised arrangements conducted by Iraq with the international Monetary Fund recently on lending «positive» and embody the international community 's support for the country 's economy ». faced Iraq 's financial crisis since Asaralinvt decline in July 2014, which makes up most of its imports, and conducted on the impact of government 's deliberate policy to reduce costs and provide the necessary resources and taking international loans to secure the war –
kits to gangs «Daash» terrorist and provide salaries and other needs. a better position , in turn, said a member of the economic Committee Najiba Najib: that « the government has managed to overcome the stifling crisis that existed at the beginning of this year and the situation is now better than before the crisis.» But he said that so far no «Ntakt financial crisis in general Vairadatna still less than our expenses, and that will remain deficit in a big budget»
She explained that « the war against« Daash «is exacerbated by the financial crisis , coinciding with the decline in oil prices , which are still rely on him in the construction of the budget », adding that« the current government has taken some steps towards building a strong economy ».
She drew Najib that« the2004 budget adopted by 95 percent or more only on oil revenues », noting that« What we're saying in the budgets for 2015 and 2016 dropped this percentage is slightly to about 90 percent based on oil only and this shows that there is a change , but not therequired level ». She stressed that« the government is taking steps to serve economic interests of the Iraqi economy ». The Planning Minister Salman Jumaili said last July:
The «Iraq surpassed the most dangerous phase of the economic crisis , after passing thefirst half of 2016, and that the world is growing confidence of the Iraqi economy.» He Jumaili hope that «be the second half of 2016 the best, as it will see Iraq at the end« Daash «and the return of displaced persons, Vdilaan a positive indication of rising oil prices. In the global market,
in addition to the results of economic policies and treatments taken by the government during the last stage» . in the meantime, go back to the economic and investment commission member of the parliamentary Harith al -Harthy, the benefits of agricultural, industrial and commercial loans and even residential imposed on citizens as «simple». He said in a press statement: that »all industrial, agricultural, commercial and residential loans were very simple on the citizens of thebenefits of a longer liquidity for banks».
He said his committee «confirmed during the last meeting with the industrial, agricultural and commercial banks managers in addition to the bank Rafidain and Rasheed, to be fees very simple to the requirements of the needs of these banks and the wages and salaries of its employees . therefore, these simple benefits do not affect the loan nor the citizens ».
It is said that the Cabinet approved during its meeting on the 31 of last May, to launch a Government loan to the sectors ofhousing, industry and agriculture form the amount of $ 6.5 trillion dinars in the framework of the axis of economic reform and diversify and move from an economy Rei into aproductive economy and the transformation of the economic system of the State of thesystem a consumer to multi - resource production system.
RVDoc: With regard to German banks charging to hold depositor money with negative interest rates. I would love to see their customers take all their deposits out, run the banks, start using cash for every day living, and go to open bank accounts in countries next door.
As for using their credit cards, they can either not use them, or make other payments for things with money orders, etc. And with their paychecks, they can go to the bank the employer has written the checks off and ask for cash.
Businesses can assign their merchant accounts to new bank accounts else where as well. Unless all banks do it at once, any bank that does it on their own is not going to survive. If the Central Banks make all banks do it, then we have a real problem.
Does any one think this is how they will then take things to a cashless society and this is how it starts?
Lets see if it happens and if people are that crazy or ignorant. No, on second thought, I almost don't want to know!
Samson: German bank starts charging customers to hold their cash in negative interest rate world
This week, a German cooperative savings bank in the Bavarian village of Gmund am Tegernsee — population 5,767 — said itAugust 12, 2016
When the European Central Bank introduced a negative interest rate on lenders’ deposits two years ago, few thought things would ever go this far.
This week, a German cooperative savings bank in the Bavarian village of Gmund am Tegernsee — population 5,767 — said it’ll start charging retail customers to hold their cash. From September, for savings in excess of 100,000 euros (US$111,710), the community’s Raiffeisen bank will take back 0.4 per cent. That’s a direct pass through of the current level of the ECB’s negative deposit rate.
“With our business clients there’s been a negative rate for quite some time, so why should it be any different for private individuals with big balances?,” Josef Paul, a board member of the bank, said by phone on Thursday. “As it looks today, charges on deposits won’t be extended to customers with lower amounts” than 100,000 euros, he said.
Raiffeisen Gmund am Tegernsee may be a tiny bank that’s only introducing penalties to well-off customers — it says fewer than 140 will be affected — but in principle the ECB’s negative deposit rate was meant to encourage spending and investment in the euro area’s sluggish economy, not to tax thrifty Bavarians. A spokesman for the Frankfurt-based central bank declined to comment
Indeed, introducing the sub-zero policy in June 2014 with a cut to the deposit rate to minus 0.1 per cent, ECB President Mario Draghi said the move was “for the banks, not for the people.” Should banks decide to transmit the reduction to savers then that’s their decision. “It’s not us,” he said.
Since then, the ECB has chopped its deposit rate — what banks pay to park excess funds overnight — three more times. So far, policy makers have said there haven’t been any serious negative side-effects, such as customers withdrawing their cash and stashing it elsewhere. In that time, amid a moderate recovery, bank lending has returned to growth.
The risk for ECB policy makers now is that negative rates begin filtering through to the real economy while growth and investment is still sluggish, bringing the downsides of the policy without the upsides. Euro-area growth slowed in the second quarter, data released Friday show, leaving it vulnerable to any fallout from the U.K.’s vote to leave the European Union.
In that environment, lenders in Europe regularly complain — and the ECB has acknowledged — that negative rates depress their profitability. Some are already charging corporate clients with large deposits. The Bundesbank estimated last year that the low-rate environment would cut the pretax profit of German banks by 25 per cent by 2019.
But only two weeks ago, ECB board member Benoit Coeure said retail customers were staying with their banks because of signs they wouldn’t be charged for their savings any time soon.
“Deposits of both households and non-financial corporations have been growing over the past two years, at a similar pace to the period before we entered negative interest-rate territory,” he said in a speech on July 28. “Rates on retail deposits seem to have a zero lower bound.”
Whether Coeure is essentially right — that Gmund am Tegernsee’s Raiffeisen is a rare case and on a broader scale the rates for ordinary depositors won’t go below zero — may depend on how lenders in Germany and elsewhere respond to the taboo on charging retail clients.
Michael Kemmer, head of the Association of German Banks, said in a statement on Thursday that he doesn’t expect others to follow suit.
“It’s up to each bank whether and how to charge for deposits,” he said. “The competition between banks and saving banks in Germany is much too strong.”
Magicfin11: NY Times article from 1991 reporting the revaluation of the Kuwaiti dinar
Jul 19, 2013
When Iraq invaded Kuwait in August of 1990, the value of the Kuwaiti dinar dropped to about 5 cents. In other words, it took 20 Kuwaiti dinars to buy one dollar.
In February of 1991 Iraq was expelled from Kuwait, and a month later, the banks revalued their currency to $3.47, the highest valued currency in the world. When this occurred, the New York Times reported the event on March 25, 1991.
It still has no water and little electricity or food, but Kuwait revived its banking system today, introducing a new currency.
Banks reopened for the first time since Iraqi occupation forces shut them down in December. Thousands of people lined up to exchange their old Kuwaiti dinars for crisp new ones and to withdraw a limited amount of money....
All other old dinars can be exchanged for new ones on a one-to-one rate until May 7, when the old dinars become invalid. The new official exchange rate is 3.47 American dollars for one new Kuwaiti dinar.
At the same time, the UN put Iraq under trade sanctions, crashing the value of the Iraqi dinar (IQD) from $3.22 to about 4000 to the dollar. Their currency could only be spent in Iraq itself, and people had to carry around wads of 25,000 dinar notes to buy groceries.
Then in 2003 coalition forces invaded Iraq and overthrew Saddam Hussein. By 2004 we gave them a new currency without Saddam's picture on it. The value soon doubled and went up to 2000 to the dollar. A few years ago the Central Bank of Iraq managed to stabilize the value at 1166 per dollar.
On June 27, 2013 the UN removed Iraq from Chapter VII sanctions, allowing Iraq to regain control of close to $80 Billion in frozen funds that had been sitting in western banks since 1990. This also allowed Iraq to be reinstated on the world's banking network, as soon as they are ready. At the same time many expect to see the IQD revalued at or near its former position.