DINAR UPDATES 4-3-16
Post From Dinar Updates
Chat Room Excerpts & Highlights
Dinar Updates Sunday PM Chat 4-3-16 Part 2 of 3
rcookie says to Pablo():what issues would they be......
Dr Dave says():they seemed to have gained some traction
puffdragon says to wmawhite():I do remember that, just a matter of time . thanks for the reminder Mr white !:)
Pablo says to rcookie(2):Well, like ending the auctions altogther.
snowhite says to puffdragon():(y)
Pablo says to rcookie():They've cut things back a lot, but they are still running.
wmawhite says to Pablo():eitherway,.........I feel great about what is happening........I expect over the next couple to few weeks more huge news about the CBI........the monetary reforms,.......the IQD. Will it be exactly what so many are looking for.......don't know, but IMO what we want is coming our way.
Pablo says to wmawhite():I read last week that all the proxi positions will be eliminated within a month, are they still working towards that end?
wmawhite says to Pablo():PM Abadi seems to always have four or five balls in the air as he jungles another three or four items.........the proxy positions being one of them.
Dr Dave says():Defense and Interior ministeries to be filled after Mosul is liberated is what I have read
rcookie says to Pablo(2):what...
Pablo says to rcookie():What, what?
Dr Dave says():cant wrapped my head around the resignation of the new Kurdish oil minister.....because Barzani et -al did not endorse this technocrat.....something smells?
wmawhite says to Dr Dave():wmawhite says to David212(11:20 AM): The short of this is that the Kurds wanted 20% of the new cabinet (GOI) positions. PM Abadi's list had the Kurds filling 2 positions..........
and has it has been forever, whether it is the budget or ordering dinner, or who sits up front in the convoy, the Kurds ALWAYS never agree to anything until after the deadline has passed.
wmawhite says to Dr Dave():wmawhite says to David212(11:23 AM):P.S.........20% of 16 ministers is 3.2........IMO, Abadi knew this was coming and it will be a process that he (Abadi) is extremely good at doing.
jtank says():used to be the kurds were at 17% when could you do the news
rcookie says():some data on ieaq from 2014 imf areaer report (annual report on exchange arrangements and exchange restrictions)
Table 2. De Facto Classification of Exchange Rate Arrangements and Monetary Policy Frameworks, April 30, 2014
The classification system is based on the members’ actual, de facto arrangements as identified by IMF staff, which may differ from their officially announced, de jure arrangements. The system classifies exchange rate arrangements primarily on the basis of the degree to which the exchange rate is determined by the market rather than by official action, with market-determined rates being on the whole more flexible.
The system distinguishes between four major categories: hard pegs (such as exchange arrangements with no separate legal tender and currency board arrangements); soft pegs (including conventional pegged arrangements, pegged exchange rates within horizontal bands, crawling pegs, stabilized arrangements, and crawl-like arrangements); floating regimes (such as floating and free floating); and a residual category, other managed.
This table presents members’ exchange rate arrangements against alternative monetary policy frameworks to highlight the role of the exchange rate in broad economic policy and illustrate that different exchange rate regimes can be consistent with similar monetary frameworks. The monetary policy frameworks are as follows:
cookie says():iraq maintains a stabilized arrangement.....
this was the chanje as of july 2014 to exchange rate restrictions.....
Effective April 15, 2013, the Central Bank of Iraq sells foreign exchange to banks for import letters of credit by adding ID 9 per U.S. dollar to the auction exchange rate. For other import transactions, the Central Bank of Iraq adds ID 13 per U.S. dollar.
rcookie says():Effective December 1, 2013, the Central Bank of Iraq set the cash exchange rate at ID 1,177 per U.S. dollar, the letter of credit exchange rate at ID 1,172 per U.S. dollar, and the transfer transaction rate at ID 1,179 per U.S. dollar.
rcookie says():Effective February 16, 2014, the commissions added to the currency selling window exchange rate of ID 1,166 per U.S. dollar to determine the selling rate of the Central Bank of Iraq were increased to ID 18 per U.S. dollar from ID 9 for import payments through letters of credit; ID 21 per U.S. dollar for drafts; and ID 24 per U.S. dollar from ID 13 for cash sales.
rcookie says():Effective February 16, 2014, the Central Bank of Iraq set the cash exchange rate at ID 1,190 per U.S. dollar, letter of credit exchange rate at ID 1,184 per U.S. dollar, and transfer transaction rate at ID 1,187 per U.S. dollar.
rcookie says():Effective February 16, 2014, the Central Bank of Iraq uses the official selling rate (previously buying rate) of the day minus 0.001% (previously 1%) to purchase the government’s foreign exchange receipts.
rcookie says():Table 8.a. Changes in Foreign Exchange Markets, January 1, 2013–July 31, 2014
cjquade54 says to rcookie():solid and to the point - just the way we like it
cjquade54 says to rcookie():(handshake)
rcookie says():Effective April 15, 2013, banks may buy foreign exchange up to US$500,000 for import payments provided the bank submits to the Central Bank of Iraq a statement of the amounts to be transferred together with the documents that prove the entry of the goods in Iraq. The exchange rate for such payments may not exceed ID 1,179 per U.S. dollar.
soonrv says to rcookie():solid, to the point, no hupla
soonrv says to rcookie():(y)
Knucklehead says():And no excuses!
rcookie says():Effective February 17, 2013, authorized banks’ spreads were capped at ID 10 per U.S. dollar over the exchange rate at which banks may buy foreign exchange at the Central Bank of Iraq currency selling window.
rcookie says():both of those were listed as tightening...
jimplants says():rcookie i keep looking for effective april 2016
sassy says():rcookie and I remember getting excited lol
rcookie says():Effective April 15, 2013, the weekly limits for money transfer companies and money exchange companies were increased to US$450,000 from US$75,000 and to US$300,000 from US$75,000, respectively. These limits may be increased or decreased according to market conditions and the companies’ commitment to sell U.S. dollars to citizens.
rcookie says():Effective February 16, 2014, the total amount sold monthly to a bank (for their direct sales window and sales to financial transfer and intermediary companies for buying and selling foreign exchange) may not exceed 25% of its capital, calculated in U.S. dollars, for banks with capital less than ID 250 billion.
Demand from banks with capital greater than ID 250 billion is met. U.S. dollars sold for documentary credits are transferred according to payment conditions after the bank confirms the receipt of the required documents.
rcookie says():those last 2 were listed as easing.....
rcookie says():Although the majority of members refrain from restricting exchange rate spreads and commissions in the interbank market, several countries imposed new or additional restrictions in this area. Pakistan limited exchange companies’ (both categories A and B) spreads between the buying and selling rates of foreign cur- rencies to 25 paisas. Iraq capped authorized banks’ spreads at ID 10 per U.S. dollar over the exchange rate at which they may buy foreign exchange at the Central Bank of Iraq currency selling window.
rcookie says to jimplants():its a comin....
jimplants says():yes sir i know that
rcookie says to jimplants():Iraq capped authorized banks’ spreads at ID 10 per U.S. dollar over the exchange rate at which they may buy foreign exchange at the Central Bank of Iraq currency selling window.
Baxter says():I am wondering if that holds true of Iraq Banks in the U S of A...
jimplants says():there is way too mucu energy from other countries for this not to happen not to mention they ammounts of money and MOUS flowing into Iraq
soonrv says to Baxter():how many iraq banks are here
Baxter says():at least one big one that I know of... in St Clair Shores Michigan...
Baxter says():Republic bank of Iraq
soonrv says to Baxter():ooh
Baxter says():just outside of Detroit
soonrv says to Baxter():any others
Baxter says():tons of muslims there...
soonrv says to Baxter():aaah
Baxter says():I havent really checked.. I know where this one is..
Baxter says():been past it before
rcookie says():In the other countries previously identified as having restrictions, some measures continue to give rise to exchange restrictions or MCPs subject to IMF jurisdiction, and addi- tional measures were introduced (for example, in Iraq and Sudan) or partially eliminated (for example, in
Baxter says():it may be a great place to exchange if the spread isnt too high....
rcookie says():15 The member countries that avail themselves of the transitional arrangements under Article XIV are Afghanistan, Albania, Angola, Bhutan, Bosnia and Herzegovina, Burundi, Eritrea, Ethiopia, Iraq, Kosovo, Liberia, Maldives, Myanmar, Nigeria, São Tomé and Príncipe, Somalia, South Sudan, Syria, Turkmenistan, and Tuvalu.
soonrv says to Baxter():wont federal reserve banks here also be a good place?
Baxter says():dont know.... I dont think anyone does..
Baxter says():they dont have to exchange....
soonrv says to Baxter():then i'm calling Trump to fire everyone
Knucklehead says():Im exchanging at Circle K
rcookie says():Exchange measures maintained for security reasonsSome member countries impose measures solely for national or international security reasons, which can give rise to exchange restrictions under IMF jurisdiction.
These restrictions, like others, require prior IMF approval under Article VIII, Section 2(a). However, because the IMF does not provide a suitable forum for discussion of the political and military considerations leading to measures of this kind, it established a special procedure for such measures to be notified and approved.16 In total, 12 members notified the IMF of measures introduced solely for security reasons during 2013, while 9 members did so during January–May 2014. For the most part, notification was from advanced economies.
In general, the restrictions involved take the form of financial sanctions to combat financial terrorism or financial sanctions against certain governments, entities, and individuals in accordance with UN Security Council resolutions or EU regulations.
rcookie says():that may be something iraq chooses to invoke if so desired..again opening door to accepting article viii obligations....
rcookie says():Table 10. Exchange Restrictions and/or Multiple Currency Practices by Country, as of December 31, 2013
rcookie says():The IMF staff report for the 2013 Article IV consultation with Iraq states that, as of April 30, 2013, Iraq maintained eight exchange restrictions and one multiple currency practice (MCP) subject to IMF jurisdiction and approval.
The exchange restrictions are (1) the limitation that corporates can purchase foreign exchangein the auction for import transactions only;
(2) limitation on the availability of foreign exchange cash for individuals (i.e., one request a month, this measure gives rise to an exchange restriction because the limitation of one request a month constitutes a governmental limitation on the availability of foreign exchange for payments and transfers by individuals for current international transactions, e.g., basic allocations for tourist or business travel abroad, family living expenses, etc.
Furthermore, because of the limitation on the availability of foreign exchange in the non-cash auction to corporates and only for trade transactions, individuals who need to make payments and transfers for current international transactions beyond the maximum limit have no alternative means or channels to get access to foreign exchange, except for resorting to informal sources.);
(3) maximum limits on the availability of foreign exchange cash in the auction for banks (This measure gives rise to an exchange restriction because the maximum cap constitutes a governmental limitation on the availability of foreign exchange for certain payments and transfers, e.g., repatriation of certain investment incomeby nonresidents, including remittances of profits, dividends or interest.
rcookie says():Because of the limitation on the availability of foreign exchange in the non-cash auction by corporates to only trade transactions, they would have no other means or channels to get access to such foreign exchange beyond the maximum limits, except for resorting to informal sources.);
(4) maximum limits on the availability of foreign exchange cash in the auction for money transfer companies and money exchange bureaus;
(5) the requirement to pay all obligations and debts to the government before proceeds of investments of investors and salaries and other compensation of non-Iraqi employees may be transferred out of Iraq;
(6) the requirement to submit a tax certificate and a letter of no objection stating that the companies do not owe any taxes to the government before non-Iraqi companies may transfer proceeds of current international transactions out of the country;
(7) the requirement that before non-Iraqis may transfer proceeds in excess of ID 15 million out of Iraq, the banks are requiredto give due consideration to legal obligations of these persons with respect to official entities, which must be settled before allowing any transfer; and
(8) an Iraqi balance owed to Jordan under an inoperative bilateral payments agreement. The MCP arises from the absence of a mechanism to ensure that the official exchange rate and the market exchange rate do not deviate by more than 2 %. (Country Report No. 13/217)
rcookie says():there are verbatim iraqs exchange restrictions and mcp's....that according to 2016 loi fall under imf juurisdiction.....
cjquade54 says to rcookie():can we assume the exchange restrictions are the same thing as exchange distortions?
cjquade54 says to rcookie():clearing the way for foreign companies to get their money out of Iraq
cjquade54 says to rcookie():getting regulations in place
Dr Dave says():that would also indicate a managed float?
BGG says to Dr Dave():Probably more of a "managed regime" of some kind.
BGG says to Dr Dave():as it has been since the change in currencies... (except with a different rate)...
Dr Dave says():I want the global rate...hehe
jtank says():starting low wont help