Post From Dinar Updates
Chat Room Excerpts & Highlights
Dinar Updates Tuesday Chat 7-26-16 Part 3 of 3
diagyAAAE says to MrsBGG():Banks, Rafidain and Rasheed sign a contract the overall banking system
26/07/2016 12:54 Banks Rafidain and Rasheed sign a contract the overall banking system[Where – Baghdad]
signed a bank Rafidain and Rasheed, a contract with an international company for the acquisition of the banking system overall.
A statement by the Office of the Inspector General of the Ministry of Finance, the Agency has received all of Iraq [where] a copy of it, the day “for the purpose to keep pace with global technological developments in the Iraqi banking business, and its contribution to the work to overcome the financial crisis and the development sectors of the country’s economic,
to help to cope with financial volatility by Post investment activities and financing of industrial and agricultural sectors, long-term within the automation of the banking business concepts, signed a bank Rafidain and Rasheed contract consultant with the firm Ernst & Young] world for the acquisition of the overall banking system, which will be applied in the two banks mentioned, to achieve the objectives referred to above, and during the period of 125 working days actual completion date of the direct action. ” alliraqnews.com END
diagyAAAE says to MrsBGG():A slight decline in the US dollar in Iraq
26/07/2016 9:57 A slight decline in the US dollar in Iraq[Oan- Baghdad] recorded the local currency markets in Iraq, on Tuesday morning, a slight decrease of the price of the dollar against the Iraqi dinar.
And record market price in exchange struggle in Baghdad at half past nine in the morning in 1277 dinars to the dollar, down from its price yesterday , who scored 1279 dinars to the dollar.
The buying and selling prices of the dollar in the banking companies were:
The sale price of the dollar to 1282.5 dinars, 128 thousand and 250 dinars to one hundred dollars.
The purchase price of the dollar to 1272.5 dinars, 127 thousand and 250 dinars, for a hundred dollars.
euros world price: 1 euro = 1.1011 dollars
pound world price: 1 pound = 1.3095 USD
Turkish Lira global Price: $ 100 = 302.75 TL
US $ 100 = 133.16 AUD $
100 US dollars = 131.95 C $
100 USD = 104.28 yen
kalis says():as i said before I really do not understand how they keep doing business with a low rate ???
MasbBrown says():Does anyone know when the recorded call after the chat will be posted?
wisconsindinar says():Kalis...the same way other countries do it with lower value to the USD than iraq
wisconsindinar says():Dong near 20,000 to one dollar, internationally traded , expanding economy no problem. This is what concerns me with iraq
rcookie says():ALRIGHT DU......HAVE A DOOZY...THAT TIES IN SOME NEWS FROM LAST NIGHT.....
AUCTION SALES...OIL SALES...THEIR INTERPLAY AND SYNERGY WITH DEMAND FOR CONSUMER GOODS......AND COMMENYS FROM SALEH.....ANTOINE...AND REHN EXPLAINING IMPACT OF DECLINING AUCTION SALES AND DEMAND FOR FOREIGN CURRENCY WE BROUGHT TO YOU LAST NIGHT IN NEWSTIME.....
kalis says():i am new and still do not understand . so i just read and hope for the best .. I understand some have been hoping got over 5 years so whom am I ?
rcookie says():Specialists: Natural dollar sales decline and will serve the domestic monetary policy
Author: HH, ZJ Editor: BK, HH 26/07/2016 16:55 Number of Views: 222
Long-Presse / Baghdad He attributed the financial advisor to the Prime Minister Haider al-Abadi, Tuesday, lower central bank sales of foreign currency to the decline in demand for consumer goods by about commensurate with the current economic circumstance, and with several economic experts "useful for monetary policy and in line with oil revenues decline and pressure government spending," confirmed oil Marketing company (SOMO), exporting around two billion and 508 million dollars of crude during the month of June.
He was placed source confirmed on Monday (25 July 2015), the central bank sales of the dollar stood at $ 17 billion, since the beginning of the current 2016 and so far, indicating that it recorded a decrease of three billion dollars over the same duration of 2015 past.
Saleh: low central bank sales caused by a drop in demand for consumer goods
He says the appearance of Mohammed Saleh said in an interview to the (long-Presse), "The decline in central bank sales of foreign currency caused by a decline in aggregate demand for consumer goods, especially durable ones, and thus reduce the import of" denying "the relationship of that decline the actions taken by the central bank recently started" .
He adds the benefit, that "the import of energy today is lower than in the year 2013, and that the central bank sells foreign currency, according to the monetary policy that achieve exchange rate stability," he returned that "the demand for commodities is suffering from a contraction phase in turn led to a decline in demand for foreign currency."
And confirms the financial advisor to the Prime Minister, that "the decline in central bank sales of natural dollar as a result of the economic conditions of the country and has no negative repercussions as sharp as some believe," returned her "natural phenomenon commensurate with the economic situation of the country, especially the stocks of durable goods sufficient Iraq for up to three years. "
rcookie says():Expert: depreciation of the currency auction sales benefit the monetary policy
He says economic expert on behalf of Antoine, in an interview to the (long-Presse), said that "the central bank reserves of foreign currency depends on oil sales, which declined during the past two years," noting that "the central bank has become in recent months, does not meet all the requests that come to him from currency auction, according to the monetary policy, as a result of the continued firming dollar sales claims. "
Antoine believes, that "the central bank sales decline of foreign currency affect the imports, and these are interrelated problem," calling to "encourage productivity imports that serve industrial companies and encourage employment and promote national resources, rather than goods and consumer goods."
Attention economist to, that "the depreciation of the currency auction is useful for monetary policy in Iraq sales and not have negative repercussions, as some believe, being kept in dollars for the purposes of development for the development of various labor and industrial and agricultural production and operation of the hands of the working sectors to reduce unemployment."
The falling dollar sales in line with the decline in oil revenues and government spending
He says economist Ahmed Rehn, said in an interview to the (long-Presse), "The decline in central bank sales of foreign currency three billion dollars is not large compared to a decrease of the general budget and imports of Iraq's revenues from foreign currency as well as lower government spending."
Rehn adds, that "the decline was consistent with the rest of the economic activity of the country," pointing out that "the recent actions taken by the Central Bank of Iraq, which is unrelated to the amount of what sells it from the dollar."
Explains economist, that "foreign currency can be up to the private sector than ten windows or even twenty and quantity of the same," he said. "when punish banking company or a financial transfer or a bank, depending on the deal with the central bank window for foreign currency, this does not mean reduce foreign currency sales because the same quantity sold to banks or other companies. "
Sumo: exported oil worth 2.5 billion dollars last June
For his part, reveals a source in the National Oil Marketing Company (SOMO), for "the export of Iraq's 95 million and 200 thousand barrels of oil during June 2016 from the southern ports."
According to the source, who asked not to be named, said in an interview to the (long-Presse), "The cash revenue realized from the sale of oil to last June, amounted to two billion and 508 million dollars," returned as "good if what has been calculated over the year, according to specialists."
The central bank sold dollars to banks at the moment of the amounts transferred to accounts in banks abroad at a price (1190) dinars per dollar, and the cash sales price was 1190 dinars per dollar.
rcookie says to wisconsindinar():CONCERNS ABOUT WHAT...
rcookie says to wisconsindinar():HELOOOOOO...
david334 says to rcookie():rcookie sometimes iam a bit thick but I now get thanks to you. I never realized that global central banks where involved with the auctions. Thanks for everything.
david334 says to rcookie():The trend in lower dollar sales is right under my nose!
rcookie says to david334():I HAVE SOMETHING FOR YOU....
rcookie says to david334():MENTIONED LAST NIGHT......
rcookie says to david334():HANG TIGHT..
diagyAAAE says():Iraqi government: al-Sadr represents himself no more
Published on: 7-26-2016, 12:38 Iraqi government - al-Sadr represents himself no moreFollow-up / Sky Press
A spokesman for the Iraqi prime minister, “Saad al-Hadithi,” against the background of the launch of the cleric Moqtada al-Sadr, threats against coalition forces stationed in Iraq, that the latter does not represent only himself.
The statement came newborn during the interview in touch with him and the agency “Almonetr,” and I followed, “Sky Press” to indicate the official position of the Iraqi government from these threats, where he stressed that Iraq is linked to the Convention on the strategic framework with the United States, where Iraq see it as an important ally to counter the terrorist organizations that threaten Iraq .
Sabri also also praised the US role has done since 2014, of providing support for Iraq in its war against al Daash.
It should be noted that Almonetr, has pointed to the fact that al-Sadr is a real verbal threats, aiming to embarrass the Iraqi government with its allies for more, especially with the fact that US troops are currently stationed not actually targeted by any party so far.skypressiq.net END
david334 says to rcookie():Thats appreciate it as usual. in hindsight it wasn't the greatest question in my career. Thanks for the piece.
rcookie says to david334():THIS EXPLAINS THE AUCTION PROCESS AWAY FROM IRAQ OIL SALES...
rcookie says to david334():READY...
rcookie says to david334():Dollar Flows in IraqThe flow of dinars and dollars within Iraq is critical to dealing with the ongoing crisis and yet little understood even within the country. The figure below illustrates the pattern of these flows.
As is well known, the primary source of government revenues – over 95% – is from oil exports. For over a decade, the dollars earned from these exports have been paid into the Development Fund for Iraq (DFI), which is held by the Federal Reserve Bank of New York.
The primary reason for having oil export payments paid to the DFI rather than directly to Iraq’s Ministry of Finance (MoF) is to avoid confiscation of these funds by foreign courts in settlement of Saddam-era lawsuits.Upon request, dollars from Iraq’s oil exports are transferred from the DFI to the MoF. At this point, a divergence occurs.
Over half – about 60% in 2013 – of the dollars flow out again to the rest of the world as payments for government imports, debt service, and miscellaneous transactions.
The remaining dollars are sold to the Central Bank of Iraq (CBI) for dinars at a rate of 1166 Iraqi Dinars per US Dollar. The MoF then uses these dinars to pay for the Government of Iraq (GoI) expenditures in the Iraq economy such as salaries, pensions, social safety net, security, etc.
The dollars accumulated by the CBI through these dinar sales are, of course, the nation’s international reserves.
rcookie says to david334():However, many of these dollars immediately flow out again.
The CBI holds daily auctions to provide dollars to the Iraq economy. Financial institutions buy dollars from the CBI in order to provide them to individuals and organizations that want dollars as a more secure savings asset, to facilitate domestic transactions, to purchase legal and illegal imports, and for capital flight. This demand for dollars is quite large.
For example, during the first 14 auction days of December 2014, CBI dollar sales totaled $2.25 billion. Those Iraq individuals or organizations that are forbidden by the CBI to directly access the currency auction must purchase dollars at a premium in the parallel currency market.
On December 18, 2014, the exchange rate in the parallel market was 1199 Iraqi Dinars per US Dollar – about 3% higher than at the CBI auction.
rcookie says to david334():In every year but one over the last decade, the inflow of dollars to the CBI from the MoF exceeded the outflow of dollars through currency auctions resulting in an increase in the country’s international reserves.
For example, in 2013 the MoF sold about $55 billion to the CBI while about $53 billion flowed out again through the currency auctions resulting in about a $2 billion increase in international reserves.
The large increase in international reserves since 2004 has been the major support for the country’s enviable exchange rate stability. However, the results for 2014 were grim.
david334 says to rcookie():Some times i forget the nature of politics. The formation of the popilar front into a seperate security force is really smart. Abadi is very shrewed.
rcookie says to david334():Because of political disputes, Iraq never passed a 2014 budget. Instead, government expenditures in 2014 were based on an arguably unconstitutional extrapolation of the 2013 budget. And the Government of Iraq (GoI) has continuously delayed even a partial accounting of 2014 revenues and expenditures.
However, recent data from the International Monetary Fund support the view that Iraq’s fiscal and monetary situation is deteriorating. At the same time that oil export earnings are
declining, GoI security-related dollar imports have increased dramatically.
One effect has been on fiscal reserves held at the DFI, which have fallen from almost $18 billion at the end of 2012, and $6.5 billion at the end of 2013, to about $4 billion at the end of November 2014 (IMF Press Release 14/560, 9 December 2014). Equally worrisome is the drop in the country’s international reserves.
rcookie says to david334():WILEY COYOTE....SUPER GENIUS.....
rcookie says to david334():From $77 billion at the end of 2013, the international reserves held by the CBI fell to about $67 billion at the end of November 2014. This is only the second year-over-year fall in international reserves in the last decade. In the absence of reliable data from the GoI, there are two possibilities.
Either there has been a decrease in MoF sales of dollars to the CBI and/or a substantial increase in dollar auction sales to financial institutions. However, through November 2014, auction sales of dollars by the CBI have totaled about $47.4 billion, which is roughly in line with 2013 dollar sales.
Therefore, the cause of the drop in Iraq’s international reserves is more likely a result of the collapse in oil export revenues combined with increasing security-related dollar expenditures by the Iraqi government and, possibly, accelerating capital flight.
Thus in 2015, Iraq not only faces a fiscal crisis from falling oil export revenues but also a monetary crisis because of the loss of international reserves. The fiscal crisis might be best understood by distinguishing between the “break even” price of oil and the “crisis” price of oil.￼
rcookie says to david334():AND DAVID....THIS IS FROM A LOCAL ECONOMICS PROFESSOR AND AUTHOR TO US AT LEHIGH....
rcookie says to david334():Frank R. Gunter is a Professor of Economics at Lehigh University and a Senior Fellow at the Foreign Policy Research Institute. This study is based on discussions at the November 2014 Iraq Economics, Development, and Policy program at the American University of Sharjah in the United Arab Emirates.
However, the opinions expressed are entirely those of the author. The Arabic version of the author’s book The Political Economy of Iraq: Restoring Balance in a Post-Conflict Society (Edward Elgar Publishing, 2013), based on his two years in Iraq as an economic advisor, will be published in early 2015
rcookie says to david334():HERE IS THE LINK TO THE ENTIRE RDPORT......
david334 says to rcookie():Really! that is amazing. Lehigh a great school. I should monitor or take his class. It is all crystal clear. Thanks for everything I can't wait to meet you when this is all over
rcookie says to david334():YVW...
david334 says to rcookie():What you do is amazing you are really talented and intellectually top seeded. I am interviewing at this firm Strategas Research Partners you would be perfect there. Check it out.
david334 says to rcookie():He wrote the book !!!! As they say
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