SlappySquirrel: Avg. Minister in the GOI makes 15 million dinar per month, which is equivalent to 15 thousand US cash. 40 (25K) notes = 1 million dinar 15 x 40 = 600 (25K) notes.
Are we trying to raise the value while reducing the Higher denomination note count in Iraq? If they are going digital with their currency, does it matter anyways?
DELTA: YES......EVEN IF THEY GO DIGITAL THERE IS A LOT OF CASH WITH CITIZEN. THEY NEED ALL OF IT BACK.
Pappa-J: YES DELTA THE CBI MIGHT WANT IT ALL BACK BUT THERE IS ABOUT A SLIM TO NONE CHANCE THAT WILL HAPPEN IF THERE IS NOT ENOUGH PURCHASING POWER ON THE DINAR GIVEN TO THE CITIZENS TO FORCE/ENCOURAGE THEM TO TURN IN THEIR DOLLARS FIRST FOR LD'S IN TURN GETTING THE 25K NOTES BACK ON LARGE PURCHASE ITEMS! BUT WHAT DO I KNOW?
Bonservant888: They will work on a dual system cash and digital, but as Delta says, there is A LOT OF CASH out there. They don't have to bring it all in, but some of it to get things going, to promote use of the banks, etc. And then over time, they will continue to collect the large bills. IMO
A new rate will help motivate them. Oh, just saying that, makes me so happy!
Quietstorm: IMO this speaks volumes about Irans desire to play ball and be noticed and recognized INTERNATIONALLY!
Don961: Iran’s banking system is preparing to adopt Basel II and III rules.
Sunday, August 28, 2016
CBI Moving to Adopt Basel III
Governor of the Central Bank of Iran Valiollah Seif said initiatives are underway to prepare Iran's banking system for adopting Basel II and III standards.
In his speech to the annual South East Asia, New Zealand and Australia (SEANZA) regional group meeting in Nepal, Seif said the Iranian banking system has already adopted the risk-based Basel I capital adequacy accord and is making the move to adopt more advanced and up-to-date banking rules.
"Iran intends to design a framework for comprehensive financial sector reforms, including changing laws and regulations of the banking sector and the central bank," Seif was quoted as saying by CBI's website on Saturday.
"We have taken on broad stress testing and asset reclassification. Provisioning requirement scenarios have been tightened to bring these in line with best practice standards."
Seif noted that transparency and disclosure requirements in the banking system have been made more demanding by requiring banks and credit institutions to prepare their financial statements, according to International Financial Reporting Standards.
Iran on Friday was selected as the rotating president of SEANZA with the CBI slated to host the 31st Governors’ Symposium in Tehran in 2017.
The establishment of SEANZA grew out of a 1956 meeting of central bank governors from the Asia-Oceanic region. One of the oldest and largest regional central bank groups, membership in it grew from the original five to 20. SEANZA was formed to promote cooperation among central banks by providing intensive and systematic training courses for central bank staffs. Training courses are held biennially with a rotating system of host members. It also provides an avenue for information exchange on issues and problems of common interest among member economies.
Quick changes of global and regional markets, especially after the financial crisis, highlight the necessity, relevance and value of this forum. Enhanced regional and global cooperation is necessary to counter banking and financial crises in the face of the interconnected financial markets. It is also imperative to increase interactions and cooperation to ensure smooth handling of the regulations and supervision of the financial markets and institutions, and prevent regulatory arbitrage in this fast and open global economy.
Seif noted in his speech that CBI had restructured the supervision section and added some new departments with clear tasks and responsibilities.
CBI has also placed emphasis on further strengthening supervision of individual institutions through periodic and occasional inspections.
Seif took note of the recent developments in Iran's economy and said over the past three years, the economy has managed to achieve many important goals.
"Inflation rate has been lowered to around 9% from above 40% in mid-2013. Foreign exchange market has been very calm and stable," he said.
"Oil-exporting countries faced a significant drop of oil prices in early 2013. However, Iran managed to safeguard its national currency and preserve its foreign exchange reserves."
Seif added that by successfully curbing inflation expectations, CBI managed to complete the process of painless disinflation toward a single-digit rate while securing a positive economic growth rate.
The CBI chief anticipated a GDP growth of 5% for the current Iranian year (March 2016-17), saying exchange rate unification is another priority for this year.
"A calm and stable foreign exchange market, together with better international banking correspondence after JCPOA, has provided favorable conditions for the successful implementation of exchange rate unification," he said.
"After the implementation of the Joint Comprehensive Plan of Action between Iran and P5+1 in January 2016 and termination of all nuclear related sanctions, Iran is fully open for business, including in banking, finance and foreign investment."
Short URL : http://goo.gl/iPrC6w
MBAGrad: Khalidiya Island has been fully liberated !
They are liberating cities at express speed right now... this week will be interesting to see if they will give up Mosul
I have a news article that says that the Iraqi Army had fully liberated Khalidiya Island on August 20, 2016. The video that was put out tonight by Press TV is telling us of something happened over a week ago, but at least we know that it's been "Fully Liberated".
As for Mosul ...... I know that Frank is looking for Mosul on or around the September 9th window. I've seen others say "October" and some other videos saying "By the end of the year" even though we all know, as confirmed by the former Iraqi defense minister, that Mosul has already been liberated.
In my opinion, someone is playing politics with the announcement on Mosul.
To be honest with you, I'll be happy if al-Abadi can complete his government by getting that useless organization, known as the Iraqi Parliament, to vote the remaining technocrat ministers through. I also want to see some more laws get voted on. The Accountability and Justice Law for one as well as the Federal Court Law. This will help stabilize Iraq and put an end to the monkey business that's been going on in the Iraqi judiciary, in my opinion.
It's coming ...... just like watching Ketchup pour out of a bottle ...... slowly but steadily.
The folks from the UN should be arriving shortly to start prosecuting some of these bad apples that are still hanging around; one of which goes by the name of al-Maliki. How I wish I could give this cat to Lynndie Englande and let her take that dog for a long walk somewhere. He needs to be neutered once and for all !
Anyway .... it's bedtime for Bonzo !
All of the above, in my opinion. Goodnight all !
Nadita: MBA Thanks for your opinion. Iraq is rolling the item one at a time and hopefully towards the end.. they will all come out at once and suddenly...
Mosul is liberated piece by piece and how big is Mosul and how many pieces they cut Mosul and give to us..???
On961: Global central bankers, stuck at zero, unite in plea for help from governments
Officials from the Federal Reserve, BoJ and ECB said their efforts to bolster the economy through monetary policy may falter unless leaders stepped forward with bold measures
Sun, Aug 28 2016
Jackson Hole, Wyoming: Central bankers in charge of the vast bulk of the world’s economy delved deep into the weeds of money markets and interest rates over a three-day conference, and emerged with a common plea to their colleagues in the rest of government: please help.
Mired in a world of low growth, low inflation and low interest rates, officials from the Federal Reserve, Bank of Japan and the European Central Bank (ECB) said their efforts to bolster the economy through monetary policy may falter unless elected leaders stepped forward with bold measures. These would range from immigration reform in Japan to structural changes to boost productivity and growth in the US and Europe.
Without that, they said, it would be hard to convince markets and households that things will get better, and encourage the shift in mood many economists feel are needed to improve economic performance worldwide.
During a Saturday session at the symposium, such a slump in expectations about inflation and about other aspects of the economy was cited as a central problem complicating central banks’ efforts to reach inflation targets and dimming prospects in Japan and Europe.
ECB executive board member Benoit Coeure said the bank was working hard to prevent public expectations about inflation from becoming entrenched “on either side”—neither too high nor too low. But the slow pace of economic reform among European governments, he said, was damaging the effort.
“What we have seen since 2007 is half-baked and half-hearted structural reforms. That does not help supporting inflation expectations. That has helped entertain disinflationary expectations,” Coeure said.
Bank of Japan governor Haruhiko Kuroda said he is in regular talks with Japanese prime minister Shinzo Abe about opening Japan to more immigration and other politically sensitive changes needed to improve potential growth, currently estimated at only around 1% annually.
Fed Chair Janet Yellen devoted the final page of her keynote talk on possible monetary policy reforms to a list of fiscal and structural policies she feels would help the economy.
Fiscal policy was not on the formal agenda for the conference, but it was a steady part of the dialogue as policymakers thought through policies for a post-crisis world. One of the central worries is that households and businesses have become so cautious and set in their outlooks—expecting little growth and little inflation—that they do not respond in expected ways to the efforts central banks have made.
That has included flooding the financial system with cash, and voicing a steady commitment to their inflation targets in an effort to make people believe they will be met.
Kuroda acknowledged that household expectations have not moved, and said the BOJ was prepared to continue its battle to figure out how to shift them. In modern monetary theory, households and business expectations are felt to play a defining role in spending and investment decisions, and thus in shaping inflation and growth.
“Japanese inflation dynamics remain vulnerable,” Kuroda said. “It could be that long-term inflation expectations are yet to be anchored in Japan” at the bank’s 2% target.
The concern about expectations is a paradox. The Fed for example fought a difficult battle with inflation in the 1970s, hiking interest rates to recession-provoking levels and eventually winning a war of credibility over its ability to rein in price increases.
Some central bankers remain fearful of clipping that cord.
But they also are hunting for ways to jolt the economy out of its doldrums, and a fiscal push is a possible tool.
In a lunch address by Princeton University economist Christopher Sims, policymakers were told that it may take a massive program, large enough even to shock taxpayers into a different, inflationary view of the future.
“Fiscal expansion can replace ineffective monetary policy at the zero lower bound,” Sims said. “It requires deficits aimed at, and conditioned on, generating inflation. The deficits must be seen as financed by future inflation, not future taxes or spending cuts.”
It was not clear whether such ideas will catch on. But there was a broad sense here that the other side of government may need to up its game.