kaperoni: Tonight’s chat is all about recent factual articles and documents…
kaperoni: I am going to take a position tonight on this RV. Many may or may not agree…but IMO the World Bank is orchestrating this event. I am also going to show you this is not a singular event, but several events that all contribute to the RV.
kaperoni: Why do I think this? Simple, the World Bank is financing the Banking Sector Reform Project in Iraq.
kaperoni: Now, just a few weeks ago, they were in Washington along with Shabibi to discuss the project and the process.
kaperoni: This article came out just a few days ago…
kaperoni: Deleting zeros from the currency ...A deceptive firm distortions
11/10/02 at 12: 59 Gmt
kaperoni: Here is a quote…
kaperoni: “initiated by the Central Bank of Iraq take the necessary steps to implement its controversial to delete three zeros from the currency as a measure to address the many problems of cash (if not most) of the Iraqi economy after an aggressive campaign led by the World Bank adviser”
Read More Link on Right
kaperoni: Now what is that campaign? Well it is what we have been reading for the past several months…it is the awareness campaign that is being done in Iraq in papers, forums, TV, etc. It is the 100+ “delete 3 zeros articles” we have been reading.
kaperoni: Continuing on in this article is this quote…which is describing the 3 steps to the event….
kaperoni: “the first was to delete three zeros from the Iraqi dinar, and Ii raise nominal and purely price improvement versus Usd as (one dinar = 1 dollar) instead of (1180 Jd = one dollars)“
kaperoni: Here is have more factual proof of a Rv…”raise the nominal” (which is the current exchange rate) and “purely price improvement versus Usd” again proving this is a Rv and not anything else.
kaperoni: The next article….
kaperoni: Towards a stable dinar .. Easy handling and storage and arithmetic adel Abdul Mahdi - 18/10/2011 - 20:11
kaperoni: This quote…
kaperoni: “Be withdrawn with zeros up gradually as the banks, you will not get a stampede”
kaperoni: This quote…
kaperoni: “And control of inflation exceeding three figures before 2003 .. And was 75% per year four years ago .. Up today to 5.2% per year .. And to maintain currency stability and strength .. Born tranquility, which markets and transactions.. “
kaperoni: This quote…
kaperoni: “will not change the zeros of the value of the currency,”
kaperoni: So we gather again more confirmation of this process.
kaperoni: Next article…
kaperoni: Planning: can not eliminate unemployment only by investment Thursday, November 20 1 / Okrudolf 2011 11:48
kaperoni: And a quote...
kaperoni: “announced that the Ministry of Planning and Development Cooperation, earlier, that the Council of Ministers decided that the Ministry of Planning is responsible for implementation of investment projects in the budget in 2012.“
kaperoni: This is key….this is part of the plan…another aspect, but key…to get the investment projects moving forward once the RV takes place.
kaperoni: Next article…
kaperoni: Economists: restructuring of State banks did not succeed 20/10/2011 20:01
kaperoni: And a quote...
kaperoni: “And the World Bank announced in July it completed 80% of the restructuring of the financial aspects of the good Bank and Rafidain on the payments system.
The Iraqi Government is still limited in financial dealings at State banks adopted by 85%.”
kaperoni: What does this tell us…that that aspect of this event is not done. That they have accomplished 80% of the restructuring of the two state banks.
kaperoni: This is where it gets interesting,….
kaperoni: You all remember the scheduled protests back in Aug? And Sadr met with Maliki and decided to postpone these? Well there were demands from Sadr…
kaperoni: From this article....
kaperoni: Sadr reiterated that the Ministry of Finance referred to Sadr's demands by experts and advisers to be activated 17/10/2011 14:17
kaperoni: “The cleric Moqtada al-sadr, select the fifth of September 2011, three conditions for the postponement of the demonstration, millions demand for better services, stressing that those conditions would include giving a share of Iraqi oil for every citizen and operation of not less than fifty thousand unemployed in all the provinces and the distribution of fuel on generators in all the provinces for free before they are improving the situation of electricity in those areas.”
kaperoni: The three conditions…
kaperoni: Better services – including Oil and Gas Law
kaperoni: No more than 50,000 unemployed in every province
kaperoni: Free fuel for the generators until they improve electricity
kaperoni: Another quote…
kaperoni: “The cleric Muqtada al-sadr called for, in the 26 of August 2011, to demonstrations Magdy Rady in all provinces and cities of Iraq after the Eid holiday,to demand better services, to the expiration of the six months granted by the power of the government, reminding the government, the fate of the Arab rulers who rose up to them their own people and fall, in Tunisia, Egypt and Libya”
kaperoni: Now we see him, in essence, threaten Maliki to accomplish what he promised…
kaperoni: reminding the government, the fate of the Arab rulers who rose up to them their own people
kaperoni: Ok, we talked about the World Bank, we mentioned last week the Wb mentions additional “securities laws” that need to be revised. And we were looking specifically to the Isx for that. When we may have been looking in the wrong place…
kaperoni: This article…
kaperoni: Foreigners invest in Iraq's bourse, expect boom Thu, Oct 20 11:07 Am Edt
kaperoni: This quote references the Isx….
kaperoni: “investors said the implementation of some regulations such as custodian bank services and a share trading settlement could further open the market for more foreign capital.”
kaperoni: And this one…
kaperoni: “The head of the Iraqi Securities Commission (isc), Abdulrazaq al-saadi, said custodian regulation would be issued in November.”
kaperoni: And …
kaperoni: “collison said he expected the Isx to grow quickly once an international bank takes on the custodian role but said the market would need to be closely monitored.”
kaperoni: So what is custodian banking? I will take this direct from Wikipedia…
kaperoni: A Custodian bank, or simply custodian, is a specialized financial institution responsible for safeguarding a firm's or individual's financial assets and is not likely to engage in "traditional" commercial or consumer/retail banking such as mortgage or personal lending, branch banking, personal accounts, Atms and so forth. The role of a custodian in such a case would be to:
hold in safekeeping assets/securities such as stocks, bonds, commodities such as precious metals and currency (cash), domestic and foreign•kaperoni:
arrange settlement of any purchases and sales and deliveries in/out of such securities and currency•
collect information on and income from such assets (dividends in the case of stocks/equities and coupons (interest payments) in the case of bonds) and administer related tax withholding documents and foreign tax reclamation•
administer voluntary and involuntary corporate actions on securities held such as stock dividends, splits, business combinations (mergers), tender offers, bond calls, etc.•
provide information on the securities and their issuers such as annual general meetings and related proxies•
maintain currency/cash bank accounts, effect deposits and withdrawals and manage other cash transactions•
perform foreign exchange transactions•
often perform additional services for particular clients such as mutual funds; examples include fund accounting, administration, legal, compliance and tax support services•
provide regular and special reporting on any or all their activities to their clients or authorized third parties such as Maic Trust Account services for mergers• & acquisitions payments.
kaperoni: Custodian banks are often referred to as global custodians if they safekeep assets for their clients in multiple jurisdictions around the world, using theirown local branches or other local custodian banks with which they contract to be in their "global network" in each market to hold accounts for their respective clients. Assets held in such a manner are typically owned by larger institutional firms with a considerable amount of investments such as Maic Trust services & (QI) Qualified Intermediary services banks, insurance companies, mutual funds, hedge funds and pension funds.
kaperoni: And a quote from another article....
kaperoni: Adoption of a mechanism «account mother» in the Iraq Stock Exchange Sunday, October 16, 2011
kaperoni: “adopted a branch of the company «forex» mechanism in Iraq «account mother» in the stock market, for deposits to investors, since the probability of loss is very low, and profit rates guaranteed. And apply this mechanism for the first time at the level of buying and selling currencies, in order to encourage the Iraqi investors access to the world of currency speculation.”
kaperoni: “during the past months, in order to overcome this obstacle, «we have dedicated a large part of the funding to start awareness campaigns and large-scale and organized dozens of training programs were satisfactory results, with growth in the volume of investment gradually to include dozens of the governor, where he began trading actually realized profit rates are encouraging», according to Zebari. “
kaperoni: So how does this play in the RV?
kaperoni: This is clearly a part of the entire puzzle. Putting everything in place for the ISX and Iraqs Forex Office seems key to open up international investment, international banking.
kaperoni: To close this…let’s look at the World Bank Document - Republic of Iraq - Financial Sector Review...this was assembled 9/6/2011
kaperoni: Page 75 Annex
kaperoni: Key timeframe
kaperoni: Within 60 days - CBI, and CBI coordinating with MOT (company Registrar)
kaperoni: 4. Submission to the Council of Ministers for submission to Parliament, appropriate amendments to the CBI Law (#56 of 2004), the Banking Law (including Article 59, Law #94 of 2004), the Company Law (#21 of 1997), and to the Law of Public Companies (#22 of 1997), to allow for:
kaperoni: a) the CBI, in exceptional circumstances and for systemic safety and soundness reasons, to restructure banks as an intermediate remedial action;
kaperoni: the use of Treasury bonds in lieu of cash to recapitalize the Bank; and,
kaperoni: c) Strengthened Corporate Governance for all financial institutions under the authority of the CBI by requiring them to adhere to Oecd/world Bank Corporate Governance Guidelines which, among others, allow for 4 above, accounting and auditing standards, and for independent external experts to serve as Directors on the Boards of bank and non-bank financial institutions. (subject to verification with Iraqi counsel, this may also be achieved in whole or in part through the issuance by the CBI of modified, new regulations related to the application of the existing Banking Law.) [mou, para. 42].
kaperoni: I don’t know if this has been done yet, but I assure you we will not see an RV till it has been.