Upstart: Thanks frank, I've had another look and here are some further thoughts.....
Yesterday, I produced a hurried message that arrived at a possible exchange rate of $5.30, based on the cost of the coins equating to the cost of gold.
The mathematical sums were based around the following values:
Street exchange rate in Iraq of 1200 IQD per $1.00
Gold price (at time of my first report) $35.30 per gram http://www.goldprice.org/
720,000 IQD per 15g / 100 IQD coin ( 720,000 / 1200 = $600 )
In our KTFA discussions about this news, I have noticed a distinct variation in peoples predictions of the possible rate. Some have come up with similar rates to me, in the £5.00 - $6.00 range, which was based on the quoted price for the 15g / 100 IQD coin. Others came up with $3.00 + How could we have such a variation ?
As I had been pressed for time yesterday, I based all my calculations around the 720,000 / $35.30 / 100 IQD equation. However, that does not directly transfer to the 250 IQD coins.
It seems the $3.00 rate is a result of applying the gold price to the 22g coins, rather than using the 15g coin calculations as the start point. There's no reason to argue with the logic of that reckoning, which is equally valid to my calculations. It is essentially the same formula.
If you multiply 15g by 1.47 you get your 22g. So, if 100 IQD equates to 15g of gold, then that sum gives a price of 147 IQD for the 22g coin. By using the same mathematical formula as with the 15g coin, we get a different rate for the 22g coin. This means that the pricing of the two coins is not based on the same values. So, here are the two calculations, using gold gold values as the logical benchmark:
100 IQD COIN: 15g @ $35.30 = $529.5 / 100 = 5.29 IQD per $1.00
250 IQD COIN: 22g @ $35.30 = $776.6 / 250 = 3.10 IQD per $1.00
So we have a range of possible rates from $3.00 - $6.00 and we do not yet have a selling price for the 22g coins. It is a puzzle, but one to savor.
This all still comes back to the face value of the coins and what that is telling us. These are a very limited number of coins that have been produced for one purpose, to bring in the 'three zero' notes. They will have collectors value as time goes on and will be an investment, rather than street currency.
The face value will likely become irrelevant in due course, but its significance lies in it being a start point. If these coins were not produced for the purpose of bringing in the '000' notes, they'd only be intended as valuable investment trinkets and would have no need for a monetary face value.
They would simply have a market value, related to the price of gold and perhaps rarity. Which brings me back to my original question, why give them a face value that is so out of kilter with their value as gold pieces ? We know the answer really, don't we ;)
The fact these coins have been given face values remains a BIG clue and the TIMING of their release is surely significant
Frank26: Last night on TEAM CHAT ............ 3 reasons were understood by these COINS ........... NOT 1 of them was about .......... A Rate.
Until our MONDAY CC ........... The net will continue to try and use these COINS to do the NEW MATH.
They are missing the true ................. COLOR.
Love You KTFA FAMILY .......... Aloha ;) \m/
KTFA Frank...... Also talked of ETA for COINS.
PS ...... You need to consider the amount they sell and time frame of it.
Aggiedad77: When Dr. Saleh speaks it is like the old E. F. Hutton commercials....everyone listens.....(see article below)
So what is he telling us today....surprisingly his opening statement is not what I would have expected....that the government can indeed borrow from the CBI....but only by way of "tabular law".....not being an attorney I'm not sure yet what that might mean.....
I do believe that Article 26 is that wall between the CBI and the government that "routinely" keeps the meddling hands, or Maliki's former thieving hands out of the coffers or reserves of the CBI....checks and balances if you will.
Now Saleh appears to be saying there is a way for the GOI to borrow, but it can't be from the current year's budget....but instead from some previous year....not sure how that might work.....sounds like they may cap how much they can borrow and also stipulate that it must be paid back in the same year.....something to keep track of if they go down this rabbit hole.
Saleh also is saying that if the borrowing happens in this fashion, it does not destroy the independence that the CBI enjoys being apart from the government.
From what I'm gathering this kind of borrowing would also not affect the reserves of the bank....which to me is a good thing.
I think too this is an indicator of a positive note that says the CBI.....in addition to their reserves.....also has other funds that can be made available to the government....maybe not as much as when oil prices were at their highest.
I must admit to not understanding the last paragraph where they talk of reserves....but they mention 2015 while they at the same time appear to be talking in "current time frames".....not sure what to make of that.
If I'm off base with any of this, I'm sure we will hear about it.....hope not though.....interesting twist on things for today though. Aloha Randy
Walkingstick: Abadi economic adviser: the government is able to borrow from the central bank law clause tab
Author: AR, ASJ, HH
Editor: AR, HH 2016/01/09 16:49
Long-Presse / Baghdad
He said Minister for Economic Affairs Adviser to the appearance of Mohammed Saleh, said on Saturday that the government can borrow part of the money the central bank to help in the financial crisis, with the condition that borrowing is a tabular law.
He said the appearance of Mohammed Saleh in an interview with the (long-Presse), said that "Article 26 in the central bank law stipulates prevent the central bank from lending to the government a harsh material terms of developing in response to the former regime's policies, but in light of what, in Iraq today and the need possible financial liquidity adjusted to allow the lending of money is part of the government treasury. "
Saleh added that "there are a lot of countries worked on this thing and there are about 50 similar material to the material (26) in the central bank law to the state to help in the financial tragic situations," adding that "lending is not at any time, but when the state is in dire need to financial liquidity. "
Economic adviser said that "lending must be not from the current year's budget, but from a previous year's budget and possible borrowing is 10% of the fiscal deficit in the general budget of the country, or 15%, according to the agreement with the government or be a lending rate of 10% of the total Government spending over a year and must be paid during the year can also be foreign currency lending if the Iraqi government external obligations. "
Saleh stressed that "this step does not prevent the independence of the central bank because it will be in a limited way and the content of the law and this is possible to make the central bank relative independence of the law," pointing out that "the Central Bank reserves come from the government, it is not unreasonable when you need government and the central bank abandoned, especially and that Iraq is going through difficult circumstances. "
It is said that a number of legal and House of Representatives demanded that the Iraqi Central Bank Amendment Act in order to assist the Iraqi state in its current financial crisis Adin, he can amend the law because of the paragraphs not classified in the Iraqi constitution.
The Central Bank of Iraq revealed, on Saturday (16 May 2015), the bank reserve "has not and will not affect", in any form, indicating that the reserves this month, higher than its predecessor, while pointing out that Iraq if they remained dependent on oil resources basis will remain as a source of "adversely affected and positively" with the rise and fall of oil prices.
It is noteworthy that the central bank confirmed, during the month of January 2015, that the reserves will exceed the $ 80 billion during the first half of the same year, but will not reach $ 100 billion due to weak retail Iraqi oil revenues and through which access to the dollar to strengthen reserves.
http://www.almadapress.com/ar/news/6267 ... 9%82%D8%A7
Aggiedad77: IMO.....there was an article out a day or two ago....I forget....but it happened to mention a "devaluation"....remember Frank had a CC dedicated to that article......these articles today –s(see article below) are....IMO....pointing to that article and letting the rest of Iraq know.....the CBI is the one who has control over what the rate will be for the IQD....they are the authority here.....any change must and will come through them....
They are letting the citizens know they are well aware that any reduction in the IQD value would mean a disaster for the citizens....they even point towards manipulation and conspiracy and say they have no such fear at this point in time.....again...IMO....these are all good points the CBI is making at this time.
Walkingstick: Central: Bank management the only authority determining the dinar exchange rate
Economy and Tenders Since 01/09/2016 18:21 pm (Baghdad time)
BAGHDAD - scales News
The Central Bank of Iraq, on Saturday, to address the financial situation in the country would only be done through the promotion of sectors "real", as he emphasized that the bank's board is the only body authorized according to the law determining the dinar exchange rate.
The bank said in a statement received / scales News / copy of it, "address the financial situation must be conducted through the promotion of real sectors," noting that "the Bank initiative to provide loans for the promotion of these sectors was a signal and an incentive for the promotion of these sectors."
The statement said that "the bank's board is the only body authorized according to the law determining the dinar exchange and every statement in this regard does not make him the price is confusion and confusion of the market" .anthy 29/33 h
http://www.mawazin.net/%D8%A7%D9%84%D9% ... 8%A7%D8%B1
Walkingsstick: Parliamentary calls "a major economic revolution" in Iraq
BAGHDAD / Obelisk: he called the Parliamentary Finance Committee member Hossam punitive, Saturday, to start a major economic B'thorh 'to face the current financial crisis experienced by the country, while stressing the need to launch a' major campaign 'to support the national industry.
He said punitive in a statement published by the local media and I followed 'Obelisk', that 'the current financial crisis we are experiencing requires a concerted and cooperation of all the faithful in order to overcome them and move forward in the country to the ranks of developed countries, there are several proposals that would add considerable financial resources into the treasury of the State of Iraq' , pointing out that 'among those proposals is to launch a major campaign to support the national industry and stop the import of products that have local alternatives'.
Punitive and urged the importance of 'Activating tariff in all border crossing points, including the Kurdistan region, and stimulate the private sector by starting to contract with major international companies to implement a number of residential, service and health projects and even security in a way payment on credit, which will provide many job opportunities and reduce the pressure on the rate Government to create jobs and reduce unemployment. "
Punitive and called for the 'need for the Government with the help of experts of finance and economy and to begin a major economic revolution to save the country from a bad financial situation and meet the aspiration and hopes of the citizens', demanding B'alasraa to resolve this serious file and not to cause obtaining a severe crisis that could lead us into the abyss'.
The punitive 'the importance of reviewing auction currency at the central bank and find other means to keep the Iraqi dinar exchange rate, and the launch of an internal bonds for citizens and an interest rate of not less than 7% instead of the foreign loans of up Voidha to more than 10%'.
The House of Representatives voted in (December 16, 2015) by a vote of those present on the draft budget law for fiscal 2016 valued at more than 105 trillion dinars, and a deficit of more than 24 trillion dinars, considered on the basis of the price of a barrel of oil to 45 dollars.
http://www.almesalah.com/index.php?page ... e&id=67415
Walkingstick: Restore $ 4 million of Iraq's debt to Jordan
BAGHDAD / JD / .. source in the Rafidain Bank revealed restore $ 4 million the first batch of Iraqi bad debt at one Jordanian banks.
The source said in a statement to Agence / JD /: that the bank management and in cooperation with the Office of the Inspector General of the Ministry of Finance to re-negotiate the Iraqi bad debts at one Jordanian banks, amounting to $ 8 million. Adding that he has been re-$ 4 million to the treasury of the bank will be the first batch retrieval of the remaining amount in the next month of May. / End / 22 /
Dnari131: Reidar Visser @reidarvisser 13h13 hours ago
Shia clergy criticism of stalling #Iraq reforms directed at "all 3 branches of govt", but implies more criticism of PM Abadi than before.
Reference looming giving the government "last chance" to implement reforms
January 8, 2016
Our economy / holy city of Karbala
It criticized the supreme religious authority, delayed the application of political, administrative and economic reforms in the field of packages and the fight against corruption and other announced by the government since last August, "salinity to" a final opportunity to achieve these reforms. "
The representative of reference in Karbala, Ahmed Safi, in the Friday sermon delivered from the saucer-Husseini al-Sharif and attended by Agency correspondent our economy news "in the past year and over the past several months, we called in Friday sermons three authorities and all responsible parties that take serious steps in the process of real reform and justice social and anti-corruption and prosecute senior corrupt and corrupt but elapsed year and nothing has clearly achieved on the ground and this is a matter of great regret and Anzid to this talk at the present time.
"And the memory of the military establishment on the sixth of January Park net the way and called on the government to continue building a professional army .
He said: passed two days Ninety-fifth anniversary of the founding of the valiant Iraqi army before it is locked in these days the fiercest fighting and the most difficult in the face of terrorists in defense of the land of Iraq and its people and their sanctities.
"He added net" As we congratulate this Aazatna anniversary of the armed forces in all Snovhm this occasion and Ntrahm on martyrs righteous and call for the wounded a speedy recovery emphasize the Iraqi government and all concerned parties Bdharoh support and assign the Iraqi army and continue to build on the foundations of a national professional to be a strong army able to protect Iraq and Iraqis, with no difference between the spectrum and their constituents.
"On the other hand, the representative of the upper reference stressed the need to protect Tigris and Euphrates rivers from environmental pollution and to develop appropriate plans to achieve the optimal investment of the two rivers.
He explained, "There is no doubt that environmental conservation and improvement is one of the vital importance and interest to officials and citizens because of its direct relationship to various aspects of life and mental health in particular was from God Almighty for Iraq Bnhreinn great Hnma the Tigris and Euphrates, which as been tapped to correctly was a singer of the country for many of the other resources.
"However, Safi said," but we find, especially in recent years that there is more than serious on these rivers where a shift in addition to Fraehma to landfill and the mouth of sewage a dangerous to both the lives of citizens or the agricultural and animal of the country's wealth We therefore call on the government to take necessary measures to prevent such abuses and call upon the citizens to make reservations on this task wealth and stay away from Almmarat that lead to pollution of the environment and Almrdoat negative effects on society.
http://www.iqtesaduna.com/2016/01/08/%D ... A9-%D8%A7/