AdminBob: Because of the instructions of the Central Bank .. Iraqi passports for rent!
Created on Wednesday, 05 June / June 2013 09:25. | | Baghdad / Orr News
Said banking sources and citizens about the arrival of rental price passport Iraqi one to 25 thousand dinars, after he launched the CBI instructed to a number of government and private banks to sell the U.S. dollar for the citizens directly as the right of the citizen
and, according to bank instructions to buy $ 5,000 to bring him his passport stamped by the bank and arrested the amount in dollars compared to 119.000 thousand dinars per $ 100.
Read More Link On Right
The equation is simple citizen buys $ 5,000 from the bank Iraqi allowance of $ 5,950,000 five million, nine hundred and fifty thousand dinars and sell it outside the bank 6,450,000 six million, four hundred and fifty thousand, a net profit of $ (half a million Iraqi dinars).
Sources say that the managers and staff of the banks and in collaboration with brokers outside the bank collecting passports of citizens and buy the currency and stamp the passport and returned to its owner for an amount of 25 thousand dinars for each passport,
and so the profit (half a million dinars for the passport per share) multiplied by the number of passports distributed on the broker and the employee and Director .
According to one of the workers in this field, the (profit is better than God). He adds: The Director's share up to 9 million dinars per day. In spite of this public corruption remains CBI trying to reduce the fluctuation of currency and maintain the dinar value against the dollar .. LINK
Tlar: Another plan shot to s***. The CBI cannot continue to put band aids on this problem. Human nature is where there is a will, there will be a way. Iran will always be able to acquire USD until its too expensive and they can't counterfeit it. AKA the smalls.
DarbSalad: Do Turki and the CBI really want to solve this problem?
Lewis: We don't know. That's the $64k ?. Let's wait until July to make a better judgment of the man.
Kaperoni: I stated in another post that is a tough call. Turki has to concern himself with all the banks in Iraq. And most participate in the daily currency auctions, not because they want to, because they have to, to survive.
Without a convertible currency and the CBI still under IMF article 14, the banking system is, in essence, closed to the world.
Therefore, these banks cannot survive without a source of income (no investment capital, no loans, no personal banking). So they survive on the profits from the dollar auctions (some also have side business - one sells cars..lol).
And they have no issues will selling as much as they can because the more they sell, the more profit. This is a catch 22 IMO. The CBI needs to change to Article 8 of the IMF, which will open the world to Iraqi banking and stimulate the economy.
Once that occurs, these banks can service the country as they were designed to do and generate income. And the dollar auctions can end.
DarbSalad: I agree with your comments Kap. I presume there is basically limited investment banking in the country for trading purposes. Curious regarding the recent company planning an IPO on the ISX.
There is a limited number of individuals with the financial means to participate in the trading of company shares on the ISX. Who will purchase and sell these securities in the marketplace?
Hopefully, the CBI will open up the financial system where investment banking and investors have the ability to possibly prosper in this new stock exchange.
Tlar: Iran's appetite for USD is destined to increase as it supports it's war effort in Syria. The leaks in this boat are going to get bigger. No amount of legislation or regulation or new measures will stop this. By now the bank should start to understand this.
It is now been six weeks that the bank has been implementing measures, regulations and new ideas to bring these rates back together to no avail. The latest announcement yesterday requiring LOC's won't work.
The bank has as foreign currency reserves at least 2 - 4 times the total amount of the value of all the dinars out including what's being held in Iraq and by speculators and central banks around the world, and still they have been unable to bring the rates together.
IMO if they are serious with their quest to bring the rates together, they will soon realize that they are going to have to think out of the box. Turki, blow that box up.
Pepperrub: Tuki is not allowed to play with explosives. China has also been asked to stop accommodating Iran with dollars for oil, so that will put more pressure on Maliki (through Iran of course).
Punisher: Tlar, I get the feeling from all things thus far Turki is not even considering your nuclear option.
Tlar: I can't agree with you punisher. If we go through the July 1st with the rates still apart then you are probably right. That will not bode well for our investment IMO in terms of this being over in the short run. Its a volatile situation and anything is possible. We will just have to wait and see.
Punisher: Tlar, if this goes past July 1st then we might have to wait until next April when Maliki is possibly not PM anymore. I really hope Turki knows what he is doing.