If you have been paying attention you have witnessed many of these steps already taken to prepare for the new “permanent” currency and to get Iraq out of the post war provisional currency (the 3 zero notes). Here is some of what has already been done:
2012 minted the new coins and print the lower denomination notes. These notes and coins are not yet distributed to all the provinces. The project was halted due to ISIS infiltration in Iraq. They will have to restart this project just prior to launching them. We will hear about this in the news. This is something they can’t hide from us.
2015 told us about the plan to use the new 50k and 100k notes. Said they would launch the 50k notes before the end of 2015. The 100k notes will follow in early 2016. These notes are not part of the provisional post war notes but will coincide with the new permanent money of minted coins and lower denominations.
We must watch and wait for them to launch these 50k notes as a sign the RV is close at hand.
2011 -2012 huge effort to try to suck in as much of the 3 zero notes from inside Iraq as they can. It is uncertain just how many the collected already but some say as much as 80-90%. So Iraqi citizens are using mainly the US dollar and their SMART Cards for daily purchases of goods and service (more use of SMART cards than anything).
We read articles that the purpose of loading these cards so early was for this very reason. It also is part of the currency reform project to limit the money laundering and counterfeiting. Don’t believe me that the SMART Cards are an important part of the strategy? – here is an article to prove it. There words not mine.
The CBI on Saturday called a specialist in economic affairs for Iraq to implement the Ki Cards (SMART cards) and the MasterCard technology in all shops and sensitize the citizens to the use of the these cards for daily purchases. Why do they want to do this?
We read articles last week about printing more of the 3 zeros notes as an alternative to getting more currency in the hands of the citizens. Instead we also know the larger plan is to delete the 3 zero notes from the economy and so without infusing more of the 3 zero notes, how can you facilitate the flow of money in Iraqi’s economy (which is one of the issues crippling their economy right now). The economists say to use these debit cards instead and there is no need for more hard currency.
What is interesting too is we know that Iraq has very large stashed of the newer lower denominations but they will not distribute them now. Why? Cause these notes are associated with a significant increase in the value of their currency. This alone tells us they must come out with a value much higher than the US dollar many are now using on the streets or what is the incentive to turn them in for the lower denominations later?
How many times have you see someone try to counterfeit coins? By the time you are done the expense of counterfeiting is almost the same value as the coin itself. So it’s not worth it. We must watch and wait for them to complete the launching of these lower denomination bills and coins as a sign the RV is close at hand.
The finance committee told us earlier this spring they were halting the “project to delete the zeroes” until sometime early 2016. We must watch and wait for them to re-launch this project as a sign the RV is close at hand.
The GOI passed the Ant-Money Laundering bill as they were kindly asked to have it completed by Oct 1st and were early in doing so. We now read many articles about the ongoing investigations and exposure to the corruption in this area of concern. They must figure out a way to put in place proper safeguards to prevent corruption with these weekly money auctions.
We can definitely see how this could hold back the RV. We look for more articles on this topic in the near future as this is now a HOT topic. We watch for them telling us they have the solution(s). It is HOT because we all should use out common sense. They will not go forward with the RV and lose billions each week in these auctions.
Why would they since isn’t Abadi now instituting reforms to find ways to save billions in salary cuts and cutting govt programs? So why would they neglect this area where they also can save billions and even more so if the currency RV’d.
Okay today is Sunday and out pops this article telling us how they are resolving this corruption. See article below. Amazing isn’ it. Its all just a continuing saga…lol….
But this is very good since they caught the bad guys,. We know this issue would definitely hold back any RV. Hopefully they will come up with a permanent solution soon.
CENTRAL BANK: WE HAVE TAKEN ALL LEGAL ACTION AGAINST OFFENDING BANKS TO SELL THE CURRENCY
Information / BAGHDAD / ..
The Central Bank of Iraq, Sunday, to take all legal action against offending banks to auction foreign currency, stressing that the bank's audit teams continuing its work in this area in coordination with the judicial authorities.
The bank said in a statement received by the agency / information /, a copy of it, that "in light of the recounted by some of the media and social networking sites of news and information and presentation of documents pertaining to violations of some banks and companies in the sale and purchase of foreign currency window emphasize that we had previously taken all legal action against those banks and their clients in conflict with the instructions for an auction of foreign currency for the years 2012, 2013 and 2014 ".
The statement said that" Among those actions prosecution by Iraqi courts in addition to his imposing heavy fines and being Asthsalha now, "noting that" the bank's audit teams continuing to work in this field with the coordination and inform the competent judicial authorities offenses or values the amounts obtained for this purpose.
"It is noteworthy that the Iraqi Central Bank decided, in (June 9, 2015), depriving the 14 banks from entering the window buying and selling foreign currency, as he emphasized that depriving these banks will continue until the payment of the amounts discharged. It ended
The following I took from an article and I did not want to just dump the article here but instead took it and trying to point out significant pieces to you on the direction Iraq must take to diversify. It also is telling us the obstacles to undertaking this effort seriously.
This philosophy in the Iraqi constitution, in Article 25, which states and I quote- “The State shall ensure the reform of the Iraqi economy on a modern basis and to ensure full investment of its resources, diversifying its sources and encouraging the private sector and development”. This is based on narrowing the field to the economic activity of the state, as a prelude to join the system of the world economy imposed by international institutions (the International Monetary Fund, World Bank and WTO) and guidance.
Economists say Iraq currently faces conditions that do not allow him to work on this approach only after it is economic and social reform process and even political, and then the appropriate approach to join the international economic system, noting that as a result we note that there is a significant distortion in the government budgets for Iraq, because despite what was approved by the Constitution and announced by the government following the philosophy of free market economy and the adoption of market mechanism economist as a method, but that is what we observe in the budget otherwise completely.
They pointed out that the budget reflects the extent of government intervention in the economy, particularly as indicated by the operational expenditure figures and specifically paragraph salaries and wages, and thus there are great challenges of economic, social and political general budget and make this the image that we see control.
He said al-Ani, saying: What Iraq still suffers from the lack of reasons for security and stability are allowed to develop realistic and ambitious development and reconstruction programs, in the circumstances of the lack of strategic development and clear The glitch security significantly, where the focus is on the security aspects, in particular social aspects, including the guarantee entry to citizens, pointing out that this situation has seen high unemployment rates accompanied by economic and social effects makes it imperative for the government addressed through fiscal policy.
[UN Millennium goals for the Middle East]
I encourage each of you readers to read up in the overall UN future plan for the middle east. I have included a link below to find information on this topic. It is very interesting and so you can see the proposed future of the region. It is just a matter of time. In the short term they can not accomplish these goals without a real currency for Iraq.
In 2015, more than 190 world leaders committed to 17 Sustainable Development Goals (SDGs) to help us all end extreme poverty, fight inequality & injustice, and fix climate change. We each have a role to play if we’re going to achieve these goals of a more prosperous, equitable, and sustainable world.
[Cleaning up the Corruption]
The current head of government, Haidar al-Abadi, launched a reform campaign in August to tackle graft and incompetence following mass protests against corruption, poor services, and reckless government spending
So many of you heard about the death of Ahmad Chalibi? Like the killing of Talibani this too is being kept secret as to the cause until they are ready to tell it. They do not want to stir up any more tribal tensions.
In this regard an amazing article came out this past week telling us that Chalabi covered all his bases. Do you know what this means? Chalabi must of suspected someone would plot to kill him so he protected the sensitive file he possessed on high level corruption by giving a copy to his second wife.
Chalabi told her earlier that if any harm happened to him, the documents and CD tapes in her possession with should be handed over to Massoud Barzani, President of Kurdistan. So the authorities do now have all the files on corruption Chalibi needed to hand over to them.
I have asked everyone to watch for an upcoming spilt in the Dowa party. So last week we witnessed Abadi is reeling politically after signs of a split in the coalition of state law, led by Nuri al-Maliki.
There are now movements within the "State of Law" bloc heavyweights in the Parliament and the National Alliance suggest signs of "split" within the coalition in the wake of the wing Prime Minister Haider al-Abadi with the Supreme Council and the Sadrists coordination with sticks toward Nuri al-Maliki bloc Badr. This is in the aftermath of the death of Chalibi. Do not take his death lightly it is going to make waves to Maliki’s final demise.
Former Iraqi Prime Minister Nuri al-Maliki, on Thursday, in a television interview that "Washington sensitive to the evolution of the Iraqi-Russian relations." Maliki said in the meeting, which was broadcast by "Russia Today" later that Washington is not serious in eradicating Daash, adding: "I have called on the government to invite Russia for strikes to Daash, there are those who oppose."
He said that Russia has a genuine desire to eradicate terrorism in Syria and Iraq, stressing that Russia and Iran are two of the feet support for Iraq after the fall of Mosul, and that "Washington took the role of spectator after the invasion of Daash of Iraq, and was aware of the movements of terrorists."
He pointed out that there are major countries seeking to divide Iraq, and this project still exist, and added that the fall of Mosul was a plot hatched by international and regional parties. Maliki confirmed the need for the return of Kirkuk under Iraqi central government authority.
And cross-Maliki expressed support for the move to withdraw the mandate of Parliament Abadi accordance with the principle of separation of powers.
An Iraqi court on Thursday sentenced a former environment minister to two years in prison over charges of corruption, the judicial authority said in a statement. He was sentenced to two years’ imprisonment and also fined by the court to pay 338 million Iraqi Dinar (about 285,000 U.S. dollars).
But here is the really good news…..
Funny how this news comes now at the aftermath on the evidence presented in the corruption files turned over to the authorities from Chalibi’s second wife?
Announced the judiciary, Monday, all issued several arrest warrants against senior officials in the state, but the security forces have not carried out, considering it a violation of justice and the rule of law. He said the judiciary spokesman Abdul SattarBayrakdar, in an interview with Alsumaria News, "The judge issued the decisions of arrest and conviction, but the executive bodies are responsible for the implementation of these decisions."
Okay so these senior officials must be very high ranking if they are hesitating in arresting them. Could this be Maliki and his goons? Notice too how they did not give us any names.
The federal judiciary announced, earlier, about to take new measures that will develop the judicial work and its interaction with the citizens about the earliest, and the period between the issuance of arrest warrants against other officials in the state they memorandums of suspicions of corruption and involved in terrorist or criminal.
Could this get any better?
[Update: On Abadi’s Reforms]
We are now hearing that parliament plans to host the Accountability and Justice law this week. We know they already have had a first and second reading. As I have said previously this is a very involved law and they want to get it right.
In the same light we are now hearing the Amnesty law may also be hosted in parliament this week. We always thought these two laws would be addressed and passed in or around the same parliament session. There is some interconnection.
Till next time…. Auf Wiedersehen!
Peace and Luv To Ya All,