Millionday RobinRedHed and Fresh Wednesday Round Table Chat:
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[millionday] Muzher Mohammed Saleh, the deputy governor of the bank has said that the soon an amendment of the rules of the Iraqi bank is done; all the private banks that are somehow related to the special fund will help the construction and housing projects. An economist in the Ministry of Finance, Mr. Hilal Al Ta’aan has asked for the passing of a new law on the domestic banks and modifies the Banking Act to make sure that the private banks will be able to take a more active role in the economic development of the country.
[millionday] He has also added that the Banking Act No. 28 stops all the banks be it private or public to get associated with any other kind of financial activity apart from the banking business and that is why this law requires amendment and make sure that the private banks can also take a real and more helpful role in the development of the economy of the country by practicing financial activities other than banking. He has added further that it is amongst the activities of the banks of buy more money orders from the Ministry of Finance and gain profit from them. This is one of the most important ways of gaining as much profit as possible because the other fake serve departments are not capable of serve the economy of the country.
[millionday] There is a need for the private banks to raise the capital and this way they will be able to provide loans and advances and they can reenter the world of money, because all these banks are now allowed is to issue the decisions and control their personal goal or achieving profit. CBI on the other hand is trying to use the development of the international bank in these banks of Iraq to create as much possible competitive environment and also help with the growth and developments of the banks. This way, Iraqi banks will be able to provide the best of services at the lowest of costs. This is a fact that has been reveled through the statement made by the deputy governor of CBI Muzher Mohammed Saleh.
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[millionday] He has also added that Iraq is not all afraid to deal with such banks and get into the arena and provide all its services to the people of Iraq through loans and divers other facilities. Iraq needs to enter into such a development project so that the banking environment which is monopolistic will change a lot. He has also referred to the requirement for the amendment of laws and banking legislation and this way banks which are already backbones of the Iraqi economy will be allowed to play a far more active part in the economic development of the country.
[millionday] Nahida Daini, the former member of the parliamentary committee of investment and economy has asked the CBI to get into the cooperative international development capital to help the people of the country by providing them with loans and advances. She has also added that, such banks will be able to cover the inability of the government to continue funding the housing loans which can benefit a lot of people. Indeed the interest rate will be pretty high but they will be able to substitute the government and the private banks in terms of facilitating and granting loans to the people.
[millionday] She has further added that the end of advance has created a lot of problems for the people at large because it has displaced the workforce that has been working with the construction and construction material along with the movement of the market, whereas the housing loans should be within the purview of the country and should help the reconstruction of the country.
[Angel] Sounds good - progress is being made in the banking industry which will help all the people
[millionday] this is more evidence of the international compliance in banking and that they are moving forward with the economic reform
[millionday] An official from the Central Bank of Iraq (CBI) revealed Tuesday the bank is preparing new strategies to unify the exchange rate of foreign currency in the country, noting that it is seeking to invest the amounts spent to serve the economic stabilization plan. The deputy governor of the CBI Muzher Mohammed Saleh did not comment on the new strategies. Mohammed said the CBI is mainly responsible to maintain the economic stability. He said there are emergencies like regional and internal problems that affect the currency exchange rate.
[millionday] The Council of Representatives decided last month to form an investigation committee, led by the deputy for house speaker Qusay al-Suhail and including the heads of economy and finance committees and chairman of the Supreme Audition Board, in order to inspect the bank transactions on currency auction sale. The main task of the CBI is to keep the price stability, implement the monetary policy, including exchange rate policies, and manage the reserves of foreign currency in addition to regulating the banking sector.
[millionday] wow so they are preparing to change the exchange rate
[millionday] macroeconomic data showed the Iraqi and the existence of a state of increasing the gap and the imbalance between the cash market and the real market (goods and services), and the labor market and the whole cast a shadow on the reality of economic activity Through the sidelines inflation translator higher general level of prices and its impact on the purchasing power of citizens and on the overall course of economic action and the increasing unit imbalance in light of the survival economy unilateral ريعيا, influenced by the size of foreign demand for staple and basic dynamics of the Iraqi economy, which is oil, with the continued survival of the Iraqi economy unbalanced sectoral and limited and weak effectiveness of most sectoral activities and economic development, all of which of course reflects the state of the Iraqi economy overall micro level, and exclusively reality monetary and banking, the statistics showed the CBI if to highlight the topics of liquidity, currency and banking performance,
[millionday] the average liquidity ratio Iraqi banks working 51%, which exceeds the ratio standard of 30%, on the other hand, the data banking activity shows that the volume of deposits with banks weak about the size of currency in circulation, where it is at best that the proportion of depositors and customers with banks 20%, while 80% them prefer cash deal to deal with the banks, reflecting the absence of banking awareness among citizens in the form that compels him to keep cash in order to avoid any occupation or disorder or potential losses. About progress van there, according to statistics the central bank block cash of more than 30 trillion Iraqi dinars, translated a number of traded papers and $ 4 trillion paper cash, and as reflected in the value of the currency to rise from JD 1 to 1000 dinars, and 25 dinars to 25 dinars and so .
[millionday] With a margin of inflation, it was a motivation for the high number of zeros and thus, the comparison here with the dollar shows that currency conversion into U.S. dollars at the dollar makes carrying easier as well as retaining and dealing and trading. Faced with such a situation, there rests with the orientations of the monetary authority to take an active role in influencing trends in money supply by virtue of the existence of a set of facts to support the trend towards the adoption of the strategy to delete the zeros.
[millionday] Them that there is difficulty in conducting accounting transactions in pregnancy and keeping these currencies and circulation and the presence of groups of small cash unacceptable in circulation, as well as to groups other cash greatest need more time and effort to carry out counting to settle daily transactions and the difficulty of conducting transactions and bank accounts of the currencies of zeros many in practice and artistic. I have pointed to an official source at the Central Bank that the deletion of zeros is to enhance the value of the Iraqi currency and reduce the cost of cash trading, and currency as the current where Petrlionat estimates dinars, make the process of cash handling high cost.
[millionday] Hence we believe that this proposal needs to be examined from two angles: first the effect of the deletion of zeros to strengthen the value of the currency, and the second you will contribute to the process in a positive impact on monetary indicators, and whether this approach does not entail any consequences related to track financial and administrative, including operations the inevitable fraud. In our opinion, humble that the adoption of a strategy for managing and structuring currency require briefing all economic indicators, including the effectiveness of the real sectors and services in the economy, and what percentage of its contribution to GDP sectors that are supposed to be income-generating and reflect the ability of the economy and Rsanth beside what is the status of the trade balance and the level of investments and the general budget and trade indicators, financial and monetary.
[millionday] If the aim of lifting the zeros is to enhance the value of the currency we think it will not happen implicitly because appreciation of the dinar and strength come from the diversification of income sources diversified infrastructure sector so that they are able to produce goods and services and especially that the growing dependence on the oil sector as a supplier base and President makes the economy vulnerable external fluctuations on oil in accordance with the request that it be reflected on the stability of revenue from foreign exchange and cash balances enhanced the value of the currency, as well as that this situation would keep the single export content and increasing import content with a wide range of external assumption. Thus, the saying that the procedure would enhance the value of the currency needs to pause and reflection because the currency's strength and durability comes from the strength of the economy and the diversity of its sources.
[millionday] The other side and last If this trend has been adopted by many countries, including Bolivia, Sudan and Brazil and Turkey delete several zeros from the currency of any structural reform, that, according to economic data has not been reflected on reducing the rate of inflation being not cause but the result is similar to the procedure for Iraq will not have a great impact the revaluation or reduce inflation. In that these countries have economic stability and security and has an effective contribution to GDP and institutional frameworks and administrative, regulatory and tax rules are relatively supportive of the approach. Accordingly could be coming in a lot of questions, namely:
[millionday] 1. This issue if not an extensive study and degrades the quality of community, the process of subtraction Iraqi market will be presented to the imbalance and tremors once citizen could have imagined that the deletion of zeros will affect negatively on the real value of the currency. 2. Is the proposed strategy will take the nature of the correlation between the money market and the labor market and whether a comprehensive outlook will be the nature of inflation in terms of it not monetary inflation essentially only but it is a structural and structural inflation reflected in the high cost of production and price rises chain.
[millionday] 3. We believe that the proceeds are of this procedure is that the version the new monetary convincingly mathematically and reflecting improved value of the currency and exchange rate but in fact, the latter needs to be the basis for this image is the strength and diversity of sources of income and wealth and profits resulting from the diversity of Structure of the economy. 4. The economic situation needs to pursue structural paths economy and sectors arthropod that, if promoted, they will reflect the furtherance real value of the currency and not an account that funds will be disbursed to switch currency believe that the necessary calls to be directed towards sectors that serve the need for citizen all service sectors Health - Education - that this process may increase the smuggling of funds abroad and the promotion of the so-called money laundering.
[millionday] to interrupt this article here
[millionday] this is talking about the coming at a low rate and how it will effect the country knowing that trade will increase it very fast
[millionday] so they are weighing the different ideas in what to come in at and how it will effect inflation ect -- shabibi has already addressed this and has decided to use gold to stabalize the exchange rate
[millionday] 5. Is has to take the consequences of this process of smuggling money abroad and the promotion of the so-called phenomenon of money laundering. 6. The process of removing zeros process procedural difficult and complex and need to statistics and accurate figures to the overall activities of the country's economic, the other hand must stand on the impact of the stock market in terms of the deletion of zeros reduces capital for companies, and thus affect the functioning of the market with this cost the government time and effort.
[millionday] talking about how the stock market`s growth will not be reflected at first
[Angel] also seems to be saying that experience from other countries shows deleting zeros in and of itself doesn't change the value of the currency for good or for bad, and doesn't affect the rate of inflation. did I read that right?
[millionday] it is saying that it was successful in some countries and they were able to control it -- right
[millionday] 7. The direct this approach will need to review minutes of the reality of the Iraqi economy and its institutions of public and private and the effectiveness of the orientations credit support for the work of the private sector, leading to the elimination of unemployment, and review of the Iraqi economy, which has no reality and positive, represented the high proportion of real sectors to the GDP to compare experiences successful and real to other countries as the basis of the success of any reform process and administrative needs to be a radical remedy that was gradual and serious fiscal imbalances, monetary and administrative that are an impediment to development perspective in Iraq.
[millionday] 8. Also is questionable about (what is the mechanism and rules and regulations and the schedule is supposed adoption of activating the strategy deletions have been, taking negative dimensions can be expected for this procedure as it might be deleted as reflected negatively on the procedure institutional and domestic market and have been calculated as the consequent of fraud and financial corruption). Thread not only delete the zeros to improve the currency or to reflect a positive image for the Iraqi economy in my account and accounting. The larger issue of reform as a development issue by any standards.
[millionday] the gold coins are for many reasons -- for cbi to control inflation instead of the auctions within the country since it is going to all foriegn currency -- and for citizens to have confidence in their money
[ROBINREDHED] JMillerTexan] British Foreign Minister William Hague to Baghdad on Thursday for an official visit to Iraq by the Iraqi Foreign Ministry source. Website transfer of PUK leader Jalal Talabani for the source, who requested anonymity, was quoted as saying that Haig "will arrive in Baghdad on Thursday, where he is scheduled to hold a press conference with his Iraqi counterpart Hoshyar Zebari, in addition to meeting with a number of Iraqi officials. Deputy US Secretary of State William Burns arrived in Baghdad on Wednesday in a surprise visit unannounced arrival, where he met with Prime Minister Nuri al-Maliki and discussed the situation in Iraq and developments in the crisis region in particular. Burns also met with President Jalal Talabani and Parliament Speaker Osama Tehran and leader of the Iraqi list, Iyad Allawi, to discuss the political situation.
[millionday] Prime Parliamentary Foreign Relations Committee Humam Hamoudi with the United Nations Mission of Support the UNAMI Ndubisa constitutional Abiourah all issues of concern to the democratic project in Iraq and reforms paper presented by the National Alliance to resolve the current political crisis. A statement by the committee Wednesday that Hamoudi received on Tuesday the UN official, and explained to him that the reform paper presented by the National Alliance broader and wider than the agreement of Arbil a worksheet for each aspects of the state Almghafool them throughout this period and that the looks of it the people in the period after 2003.
[millionday] He pointed out that the UN official listened to the truth of what is happening from a determined effort in the House of Representatives for the passage of laws that would help to promote economic development in the country
[millionday] Began this afternoon meeting of the Presidency of the Council of Representatives with the committees of the oil and energy and legal Alniabaten presence of the Minister of Oil Abdul Karim and coffee. The Agency (news) on Wednesday said the meeting will discuss the subject of oil and gas law, the presence of the oil minister, and so get out Bhetwavqat about the law.
[millionday] And said general manager TBI Hamdiya dry in a press statement that the bank has within its structure Division for money laundering run cadre has great experience, studying the customers in terms of filing to prevent any attempt to money laundering . Added Dry: that the bank is subject to follow BSA, pointing to the number of current accounts amounted to 5 000 account and savings accounts three thousand account in addition to the existence of accounts fixed. Mentioned that to the bank with 14 branches in the general areas of the country and three overseas branches and provide services at the level international.
[millionday] Ministry of Commerce announced that Iraq will participate in the work of the Arab Economic Forum European organized by the General Union of Chambers of Commerce, Industry and Agriculture in the country Arab cooperation and coordination with the European Investment Bank and the European Commission at the Union of Chambers of Arab city of Beirut, Lebanon, during the period from 12 - 13 September ongoing. A statement from the Ministry received Agency (news) copy of it Aaleom Wednesday: that the Iraqi delegation headed by Deputy Director General of the Department of Foreign Economic Relations Ministry Azad Hussein Rashid representative of the Chief addition to representatives from the Iraqi private sector and Iraqi Federation of Industries and Commercial Attaché Iraqi in Beirut .
[millionday] He added: that the forum will be sponsored by the state of Lebanon and the participation of a large number of businessmen in the Arab countries, European countries and Arab and European experts and representatives of investment funds and funding for the Arab States. He explained: that the forum will discuss over two days across a number of sessions issues of the New Partnership for cooperation and development between the Arab and European countries and the ways and mechanisms of cooperation between the European Investment Bank and financing institutions and development in the Arab countries to open up new economic common interests to build a road map towards a better economy in the sectors of banking, infrastructure and clean energy, communications, information and technology funding, education, health, industry and small and medium enterprises and establishment of investment partnerships future between the Arab states and European countries, as well as holding bilateral meetings directly between businessmen participating in the forum.
[lorijeanmarshall] millionday So this one and then the one on the 18th. Hmmmmmmmmm
[hstrymknwmn] millionday sure wish it had to rv before that meeting
[millionday] thats what i say -- hmmm
[lorijeanmarshall] millionday RV possible before this or the latter?
[millionday] me too hun -- but in order to be able to be respected as an active participant it seems they need to move forward with their reforms
[millionday] it is close to these meetings -- has to be --
[ROBINREDHED] Some Iraqi economists are less than thrilled with the idea of a new currency being introduced during 2013, but if the financial committee in Iraq’s Parliament has its way not only will there be new bank notes, but coins will once more be seen in circulation. The currency reform being planned for next year will include removing three zeros from all existing currency denominations.
[ROBINREDHED] According to Iraq Central Bank Deputy Governor Mazhar Salih, “We are determined to change the Iraqi currency because the biggest bank note in Iraq is 25,000 dinars, which is the equivalent of $21. This has forced Iraqi merchants to resort to U.S. dollars. Besides omitting the zeros from the currency, we will redefine the Iraqi currency and have bank notes larger than 25,000.”
[ROBINREDHED] Najiba Najib is a financial committee member. According to Najib, the new currency would circulate simultaneously with the older bank notes for three years before the notes being replaced would be demonetized. The committee has presented proposed designs for seven bank notes ranging from 5- to 200-dinar denominations as well as coins in 50-fils to 2-dinars denominations to the central bank. Details of the proposed coins were not immediately available, but it was learned through Najib that the waterfall of Geli Eli Beg is among proposed vignettes for the new notes. It appears the proposed vignettes will attempt to appease all major ethnic groups within Iraq since three of the proposed designs have Kurdish themes. It was also learned the notes and presumably the coins will include legends in Arabic, Kurdish and English.
[ROBINREDHED] Kurdistan Economic Forum Vice President Faysal Ali is among those opposed to a currency reform at this time. According to Ali, “The political situation in Iraq is very unstable and it is economically weak.” Ali continued, “Therefore, it is not possible to change the currency now because in order to do so we would need more than a trillion bank notes and coins. Exchanging new bank notes with older ones being used by citizens will greatly harm the economy.”
[ROBINREDHED] this also is an opinion piece
[millionday] High-level delegation from several Ministries and headed by Deputy Prime Minister Financing of Iraq's reconstruction to be discussed with international banks and investors Iraq to welcome foreign investors at major London convention and offer stake in the country's economic and financial future. A major investment conference for Iraq will get underway in London next week from the 17-18 September
[millionday] A high-level delegation, endorsed by Iraq's Prime Minister Nouri al-Maliki and led by the Deputy Prime Minister, Rowsch Shaways, will be welcomed by the UK Minister of State for Trade and Investment, Lord Green, at London's Grange Tower Bridge Hotel. "Iraq is embarking on a major redevelopment programme and all government departments are preparing for huge growth and expansion" said Deputy Prime Minister Shaways. "The aims and objectives of Iraq Finance 2012 complement the urgent needs and reforms required across the country".
[millionday] The delegation will discuss Iraq's investment requirements and key opportunities for regenerating the country's financial sector. Iraqi Ministers and government officials are expected to call upon the support of the international community to help in financing Iraq's reconstruction. It's also a chance for foreign investors to discover the massive financial potential in a stabilised Iraq. The country is already emerging as a major centre for international investment following its long isolation from world markets.
[millionday] Major opportunities exist across several industries if the appropriate financing and domestic banking sector is fully established. Iraq will use the conference to present its ideas for PPP and project financing, as well as a series of reforms and investments for its banking sector, including the restructuring of state banks. The event has already attracted widespread investor attention. Leading investment and private banks are taking part together with IOCs, technology companies, insurance providers, and other financial institutions, all hoping to capitalise on the reconstruction of Iraq's physical and financial infrastructure.
[millionday] Haider al Abadi, Chairman of Iraq's Parliamentary Finance Committee said: "This conference will contribute to the existing work of the committee by exploring mechanisms for regenerating the financial sector through active participation and dialogue with international clients, as well as to address any immediate and long term needs for reform".