Economic Commission: out of Chapter VII would give greater freedom to the Iraqi banks
Tgirl: Post 26 June / June 2013
BAGHDAD / Center Brief for the Iraqi Media Network (IMN) - According to the parliamentary economic committee, on Wednesday, to remove Iraq from Chapter VII and entry in Chapter VI will create greater freedom for the Iraqi banking sector to deal with international companies and banks.
A member of the Committee, Abdul Abbas Xiaa the (IMN) that "Iraq out of Chapter VII, will give him greater freedom for the Iraqi banks to open accounts and global banking transactions more spacious."
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And added Xiaa, "The international banks will have an extensive presence within the Iraqi banking sector through a partnership with Iraqi banks."
He explained that "the banking deal will be much easier after the withdrawal of Iraq from Chapter VII."
And looking forward to the Member States in the Security Council on Thursday to listen to the report of UN Secretary-General Ban Ki-moon and vote on Iraq out of Chapter VII, which lasted more than 23 years, have limited its role regionally and globally.
From: Ammar Ali n: m h
I report...you decide.
Tammy44: Thank you, Tgirl :) "It's nice to be nice, to the nice" ~ Frank Burns
Punisher: "freedom to the Iraqi banks" :)
Kaperoni: No doubt in my mind Iraq will enter IMF Article VIII soon. The question 'remains at what rate?
Sherry: I'm Ready! :)
ReVbo: Hey Kap, I did some research on non-convertible currencies yesterday, and although my research is far from exhaustive, I noticed a pattern. There are something like 20 "non-convertible" currencies in the world.
Every one of them, with the exception of one, is non-convertible because its government says it is. Guess which one is the exception.
That said, of course my hour or so of research doesn't prove that Chapter 7 is the key to freeing the dinar internationally, but as far as I can tell, the Iraqi government doesn't have a problem with the dinar being convertible, as they allow billions of them to be converted to dollars six days a week, so what else is there that could be keeping it in its internal scrip status other than international sanctions?
Punisher: It might not be written on any paper, but rest assured Ch7 plays a big part in the dinar not going global...this has always been my opinion and since it cannot be proven per say then hey.
But I really believe that once Ch7 is gone the dinar is free per say to go international. Not saying it will happen days after...heck I think it might take until right before or after Ramadan which is fine by me. Waited this long.
2COLLECTG: that moon that is rising tomorrow told the world and the iraqi`s if my recommendations are accepted by the council we will return iraq to their former international status prior to 1990! i know the iraqi`s have been losing sleep over that statement like i have! what about you dinarians?
i bought this stuff for a penny i just want to sell mine back for a dime!
Corvetteman: when this is all done,I'm going to go get hair transplant,I'm almost out of hair :lol:
Punisher: 2Collect, you always brighten my day with your excitement. Yes, for sure I am as excited as you are over Moon's statement.
2COLLECTG: should have seen the look on the face of the iraqi guy`s i know here in st.louis when i read moons statement to them! :lol: i bought this stuff for a penny i just want to sell mine back for a dime!
Tlar: No doubt in my mind Iraq will enter IMF Article VIII soon. The question 'remains at what rate?
The news on Iraq's exit from VII is great news. I never thought that the international community would release them until they RV'd the currency. Kind of a hold card on Iraq. It looks now that I was wrong and it may have just been the opposite of what I have believed for the last 5 years.
The hold up on the currency, if you discount accumulations from Syria and Iran, might have been Chapter VII all along. There is too much activity and preparations that seem to be being made in the banking arena to connect Iraqi banks to the global economy.
I agree with you Kap. I think the currency will move from Article XIV to an Article VIII currency in short order maybe as early as July.
If Shabibi felt currency was ready to go last year at 1 to 1, then they must be more than ready this year having retired trillions more of the dinar and having almost totally dollarized Iraq.
Articles stating that they might go to 1000 to 1 then drop the zeros, or free float from 1166 or more, are all an exercise in mental gymnastics because the truth is Iraq does not need to go through steps to get there.
They could just remove 1165 pips and be at 1 to 1 overnight. With the amount of dollarization that we have seen since last year and the amount of Iraqi's using the dollar, this would not be to much of a leap of faith to tell the Iraqi's that the dinar and the dollar are interchangeable.
The average Iraqi is conditioned to use the dollar and understands its value totally. This in fact might be the easiest thing for Iraq to do than some complicated series of calculations and steps..
July, the Finance Committee last year said that July of this year 2013 they would support the dropping of the zeros. July is a new fiscal quarter.
July is the first month to follow the release from Chapter VII if Iraq is released and truly becomes sovereign.
If the CBI accepts sales of the independent banks at 1183 to the US dollar as the street rate, July will show the rates back in equilibrium. July is shaping up to be a very interesting month. I said last year that we may see this in July. I stand by that.
Kaperoni: I agree that Iraq will accept Article VIII of the IMF Charter soon. It makes sense to do so for investment/trading purposes. What the rate will be is anyone's guess. Many countries have weak currencies in Article VIII. Knowing Maliki's desire to keep it weak, I expect it to remain low.
Punisher: Also, now that the average citizen is excited about Ch7 release, now is the perfect time to give the dinar more value and ride the excitement wave. It would be easier for them to accept getting off the dollar. Food for thought ...
mr. g: True...but based on the recent elections lessening Maliki's true power I doubt he will be re elected next year. Just looking at how the Provinces are establishing their own regional power (like our State rights) this all looks good towards Maliki's exit from power. We are looking at less than a year for this to happen when he is gone...then watch the economy grow faster along with the Dinars value.
2COLLECTG: we all have opinons on this investment but moons statement is food for thought!
i bought this stuff for a penny i just want to sell mine back for a dime!
Terry: But Kap, if it is a float. How is he gonna keep it low?
Corvetteman: just saying.I think Maliki can not do a damm thing anymore.THE BIG BOYS WANT THERE MONEY!!!!!
PGLD: Could be a managed float....2% every 90 days. If that happens, it would take a lifetime to appreciate to a big number...approximately only 8 cents per year increase starting at 1 USD.
Let's hope it comes out at a decent value to start, and they don't implement a managed float.
Punisher: PGLD, I really don't think they will want to take years to get up to what Kuwait has their currency valued at. It might not be overnight, but it won't be that 2% every 90 days scenario.
Sherry: This big girl wants her money, NOW LOL
Tripphood: Wow Kap, I have to say your a little bit of a downer on the rate.
Tripphood: On this one Kap, I hope you are way wrong......with respect of course, LOL.
ZenMav: Kap makes a good point, and one that few wish to consider, and one that I have made in the past on these threads. Saudi Arabia is number 1 in oil production, has a population close to 30 million, and has a weak currency policy. The Saudi Riyal is currently worth 27 cents.
Terry: I would take .27 cents and whistle all the way to the bank.
Punisher: Zen, some of us can cash some out even at .50 which I doubt that it will ever be that low out of the gate (just imho).
Bigbadassdog: You are correct Punisher. Do people actually think this will be a float where it takes them forever to get up to an acceptable rate? Sitting on almost $100 Billion in reserves and none of it for the running of government.
The problem is people reading to many articles of what they want you to know instead of having any knowledge in actual banking experience.
If I'm an Iraqi why would I switch from the dollar to the dinar at what rate? I'm suppose to be a donor country by when?
shaund207308: good point big pit bull, they will not use the dinar and the lower denoms will not be put out if its not over a dollar are on par... I take kaps opinion as his and state while he has good opinions on alot of things these past years regarding this investment, my opinion is he will be wrong on this..
and Im sure he doesnt mine being wrong just merely trying to stay grounded and not be disappointed if so the fiat currency will fall as asset back currency will take its place
Timsters: after all iraq has pulled over the years DO YOU GUYS REALLY THINK there will be a revalue or FF today????? and why would they revalue if they could keep the currency at a low low rate JUST LIKE CHINA ... currency manipulation is not a new idea if they can screw us they WILL ..
just doent get your hopes to high i dont feel its gonna happen like every body is saying . maliki or some other yahoo is gonna pull some B/S before the end of the day ... putting us off for 6 months to a year . and no my name is not joag :/ tim
WEDREAM: Kaps opinion is based on researched/published facts/documents not just speculation & you can find all in the research library & Kaperoni & friends sections of our forums
Punisher: Everyone knows I respect Kap and thinks he is a great guy and thank him for what he does. But my opinion is still a 1 to 1. Will I be wrong, probably...but we shall find out and hoepfully in the coming days/weeks/months.
Framer: Tim whos saying their going to revalue today. Their coming out of ch 7 today which is huge and a big giant step for this investment. This investment is all speculation nobody is right or wrong until it happens