Emailed to Recaps:
sczin11 MULTIPLE VERSIONS OF THE REASONS FOR THE DECLINE IN THE VALUE OF THE IRAQI DINAR, ALL OVER THE MEDIA...
JUST KNOW, THIS IS THE RHETORIC OF THE WEEK...MAKE THE WORLD KNOW, THERE IS LIQUIDITY PROBLEMS IN IRAQ...
THERE IS FIGHTING BETWEEN GOI AND CBI...THERE ARE MAJOR ACCUSATIONS AND THEORIES AS TO WHAT CAUSED THE DECREASE IN THE VALUE OF THE DINAR AGAINST THE US DOLLAR...
THERE IS FINGER POINTING, THERE ARE MORE MEETINGS BEING CALLED FOR TO DISCUSS THIS ISSUE...
THE CABINET WILL MEET THURSDAY...THE FINANCE COMMITTEE WILL MEET SUNDAY...THE CBI WILL BE CALLED ON...
MY OPINION, AS HISTORY HAS SHOWN...WITH ALL THIS TALK... SOMETHING IS BOUND TO OCCUR... SOMETHING IS GOING ON BEHIND THE SCENES!
[LAS] Bruce on The Big Call: best place we have ever been; possibly before the weekend; be prepared we are so close; upon us; meeting in Russia with the Brics; they don't want Abadi to come if it hasn't RV'ed; Saudia stock exchange opened up a couple days ago; bonds that needed to be settled are settled; funds are moving and in place; lots of things coming together.
[xyz] Abadi: Iraqi currency backed strongly there is no fear on the dinar exchange rate against the dollar http://translate.google.com/translate?sl=ar&tl=en&u=http://www.alsumaria.tv/news/137429/-
Freedom: Greek Debt Committee Just Declared All Debt To The Troika "Illegal, Illegitimate, And Odious"
Submitted by Tyler Durden on 06/17/2015 12:24 -0400
It was in April when we got a stark reminder of a post we first penned in April of 2011,describing Odious Debt, and why we thought sooner or later this legal term would become applicable for Greece, because two months ago Greek Zoi Konstantopoulou, speaker of the Greek parliament and a SYRIZA member, said she had established a new "Truth Committee on Public Debt" whose purposes was to "investigate how much of the debt is “illegal” with a view to writing it off."
Moments ago, this committee released its preliminary findings, and here is the conclusion from the full report presented below:
All the evidence we present in this report shows that Greece not only does not have the ability to pay this debt, but also should not pay this debt first and foremost because the debt emerging from the Troika's arrangements is a direct infringement on the fundamental human rights of the residents of Greece. Hence, we came to the conclusion that Greece should not pay this debt because it is illegal, illegitimate, and odious.
As we predicted over four years ago, Greece has effectively just declared that it will no longer have to default on its IMF (or any other debt - note that the dreaded "Troika" word finally makes an appearance after it was officially banned) simply because that debt was not legal to begin with, i.e. it was "odious."
(Reposted) Q: Delta [Do you believe that the amnesty law has been passed?]
Delta: I do believe we are watching that and the investment law (IMO). We may see some type of emergency meeting during Ramadan. Without the investment law...Article 8 isn’t going to make any sense at all.
IMO...no more laws are needed because if they went to Turkey and talked to them about bonds for 2 days...what are the requirements for them to sell bonds? An international rate!
walkongstick:The issuance of sovereign bonds to reduce inflation and speculation .. taxation on the sale of the dollar and the rise in oil prices
June 16, 2015
Iraqi observer / Mushtaq Hasnawi
The effects of high price of the dollar in the domestic market questions do not end, Marine experts economy return largely to speculative currency, while the Committee on the economy parliamentary confirmed that the reason is the central bank's policy because they are "lagging behind" in control of the continuous rise of the dollar exchange rate, indicating that the central bank is unable to put to the dominance of mafias currency solutions, and it is known that the increase in foreign currency rates will impact on the Iraqi market through higher goods and commodities borne by the citizen rates, while the Ministry of Finance held meetings with international banks, representatives of the companies and international rating to determine the credit rating of Iraq for the sovereign government bond issuance to reduce inflation and to obtain hard currency to reduce the budget deficit.
Dr. Jawad al-Bakri said in a conversation with (Iraqi Controller) emphasized previously importance of issuing treasury central bank bonds which experience has exercised Iraq previously, it is important that the world is determined by the financial rating of Iraq in order to support these bonds, which are divided into two parts, the first internally as exposure These bonds for purchase by citizens, companies and traders, that after a year or more, according to the agreement simple and profits be returned, and thus will contribute to reduce inflation suffered by Iraq by withdrawing liquidity (dinar) from the market and this money will go to the government to finance its projects, he added There are bonds sold externally and is bought by international companies and some countries this process and will provide hard currency for the government and will determine the period of time to restore the money with a simple benefits and contribute to reducing the budget deficit for the current year ones and this global practice system and turn him America to finance its projects. He continued: With regard to the rising dollar prices it is because of the financial crisis in which we live by the drop in global oil prices and speculation and tax of 8% imposed on the sale of the dollar, Iraq depends 96% in its budget on oil imports and thus lower those imports, especially as the central bank auction was selling (200 -300) million dollars
Today, due to lower imports of dollar it sells 75 million per auction, which was reflected on the amount of the offer, which fell rose demand for it, which leads to increased inflation and rising prices, we are embarking on the holy month of Ramadan, where demand for goods rises annually, but this year is different because demand Few Big Show.
For his part, MP Jabbar Abdul Khaliq member of the Parliamentary Finance Committee said in a conversation with (Iraqi Controller) that speculation behind the rise in dollar prices in Iraq to 140 thousand dinars per $ 100, noting that the price of the dollar fluctuation unwarranted but greed and speculation.
He added: "Banking deployed in country offices are the main reason behind the volatility in dollar terms, a subsidiary of a large mafias have direct links to politicians," explaining: "The volatility and inequality at the price of the dollar against the Iraqi dinar is not justified only by greed and speculation and exploitation."
He pointed Abdul Khaliq, that "mere addition of 8 percent on the cash price of the dollar is an economic crime and not the right of banking offices Add this ratio." So counting member of the Committee of Economy and Investment parliamentary deputy Abdul Salam al-Maliki said in a statement, the Iraqi Central Bank management as "lagging behind" in control of the continuous rise of the dollar exchange rate, indicating that the central bank stands helpless in front of the dominance of mafias currency, as he emphasized that prices rose eerily in particular with the market near the holy month of Ramadan. Maliki said: "The central bank reluctant to management control of the continuous rise of the dollar exchange rate."
Bluedog June 17th, 2015, 4:56 am
This is what shows currently at the landing page at the Iraq MOP site.
New info MAY preempt the heading of the link below as it changes daily....
THE REPUBLIC OF IRAQ MINISTRY OF PLANNING
The Exchange Rate of Foreign Currency in Economic Feasibility Studies
Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.
Estimate the shadow price of foreign currency:
1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.
The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.
* What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.
In particular the following outputs and inputs of foreign currency were distinguished:
· Outputs marketed locally that substitute imports.
· Imported inputs.
· Inputs produced locally that usually go to exports.
· Foreign labor.
According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.
In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency .... etc.).
In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.
2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports... etc.
The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:
· The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.
· The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.
· The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.
· The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.
· This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.
And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.
3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.
IMO, TO ME WHEN OR WHAT EVER THE DATE OF THIS WAS (IT LOOKS LIKE JUNE) THIS IS GOOD OFFICIAL INFORMATION.... THEY HAVE TALKED ABOUT THESE STUDIES BEFORE..... AND NOW THEY TALK OF IT AGAIN .....................Bluedog
jdtolle: » June 17th, 2015, Following your advice
If you knew someone in your own situation, what advice would you give that person? What course of action, what priorities, what strategies would you suggest?
Think about that, and then think about this. Are you, right now, following your own advice?
It’s easy to know what to do when you’re not the person who has to do it. When you actually have to implement the advice, things get complicated and uncomfortable.
Yet good advice is good advice. And you are well positioned to give yourself good advice.
Yes, it will involve some real work to do what you know must be done. Fortunately, as difficult as it may be, you can absolutely do that work and follow the advice you yourself would offer.
So go ahead, be brutally honest and give yourself the advice you need to hear. Then take it to heart, put it into action, and make the progress you know you can make.
Ralph Marston Wishing All a safe and blessed day JDT
P.S. To carry a grudge is like being stung to death by one bee. -- William Walton