[BondLady] Welcome back Scooter and thank you so much for dropping by !
Well in the news lately Iraq is doing what you said they always would and would have to restructure the Rafidain and Rasheed Banks... removing the 000 currency is right at the door too. We just appreciate any time that you have made for us and ty so much scooter
[Scoooter] I see that but I saw an interesting statement by the IMF, just a second and I'll get it
[BondLady] there's so much going on now in the news
[Scoooter] During 2012, the authorities succeeded in maintaining macroeconomic stability, but progress on the program slowed down.
The combined third and fourth reviews were not completed owing to limited progress in restructuring the state-owned banks and the emergence of distortions in the foreign currency markets that led to the widening of the spread between the official and market exchange rates. IMF staff will continue to support Iraq through surveillance and technical assistance. LINK
Read More Link On Right
[Scoooter] There's a couple of sentences that stand out but could be interpreted a couple of ways.
First, this is from the IMF site. Limited progress restructuring the the state owned banks distortions in foreign currency markets that led to widening of the spread .now that could be interpreted either way , got to give it to those writers they can make you stand on edge ....
[Scoooter] There's another item that I didn't particularly care for either
[BondLady] Yasiri: restructure the Rafidain and Rasheed includes four axes .. And will support the banking sector 20-04-2013 01:14 PM Baghdad (news) ..
According to a member of the Finance Committee MP / National Alliance / Abdul Hussain al-Yasiri, that the plan to restructure the Rafidain and Rasheed by the International Monetary Fund includes four paragraphs of major help to support and develop the banking sector in the country.
Yasiri said (of the Agency news ): The plan to restructure banks government Rafidain and Rasheed developed since (2007) and formed through a committee headed by the central bank governor and finance minister and head of the BSA, in cooperation with the International Monetary Fund.
added: that the committee began its work, but did not achieve positive results and important in then, but later formed a committee composed of general managers in banks and representatives of the Central Bank and the International Monetary Fund and began their movement in earnest for the support and development of the banking sector in the country.
explained: that the plan includes four axes including restructuring operating banks and strategic restructuring and re-evaluation of assets from cash to banks , as well as re-accounts banks and audited by the external auditor. ,
and pointed out that the government banks lack the modern technology in spite of the introduction of some technological Kalptaqh Smart and others, but it needs to techniques more to keep pace with the evolution in global banks. / End / 8.'s. m / LINK
[Scoooter] That's the part right there that I didn't like ... re-evaluation of assets from cash to banks . The IMFsite said it a bit differently which led me to believe they are still arguing over the value of those assets . If you remember those two banks would have to take a huge de-evaluation
[BondLady] right I remember when you told us all that
[Scoooter] in their portfolios before they got recapitalized the parliament has passed the recap funding but they are still squabbling over the value -- my gut tells me there's some dirty funds and transactions from some high level folks over there that's holding that up...just my gut but heck it could be anything .overall though -- it's nice to see them gettting detailed statements
[BondLady] in this part of that article it said they tried it before with poor results so they began it again this time in earnest.....that the committee began its work, but did not achieve positive results and important in then,
but later formed a committee composed of general managers in banks and representatives of the Central Bank and the International Monetary Fund and began their movement in earnest for the support and development of the banking sector in the country.
explained: that the plan includes four axes including restructuring operating banks and strategic restructuring and re-evaluation of assets from cash to banks , as well as re-accounts banks and audited by the external auditor.
[Scoooter] regarding the restructuring ooooo -- there's more. Yep that was 2011 - 2012 PWC or Ernst and Young were doing the Audits for the BSA and made some strong recommendations but it never was followed through. my hope is that they get it done because that's the root area that needs to occur before any acceleration to the value can occur IMO
[BondLady] I agree with you
[Scoooter] once they establish that with full transparency to the rest of the world -- the value will strengthen itself just from pure natural growth. However, IMO, sorry to be negative here but they need to develop the non-oil economy
[Scoooter] But the economy is rolling at 9% that's phenomenal for those folks but it could evaporate in a second largely because oil prices could tank and they would have anything to support that budget what's happening with the residual funds ? anybody know
[BondLady] shredd does and he will be present for the Thursday chat
[Scoooter] and then mentioned this years excesses hmmmm -- I'll find that out before our next chat also
Economic center: the success of the project to delete the three zeroes depends on the stability of the exchange rate of the dinar against the dollar 21-04-2013 11:36 AM Baghdad (news) ..
Said Prime Media Center Economic Dergham Mohammed Ali, that the success of the implementation of the project to delete the three zeroes from the national currency depends on the stability of the exchange rate of the dinar against the dollar and educate citizens and give them enough time to replace the currency.
said Mohammed Ali (of the Agency news): The economic reality of the past year and the previous was fit better to receive the decision to delete the zeros of the capacity market to absorb its effects because of the high stability, which was dominated by the exchange rate of the dinar against the dollar at the time.
continued: While the market has become more sensitive and broader change than it was a Mitrah question the reasons for the postponement of this decision, but The implementation is still possible in the event of education in a positive way and give long enough to bring a replacement span for two years as planned during which the currency traded zero and currency deleted zeros.
said: that the central bank demands to confirm the unit value between the two currencies and start substitution out for the new currency and within the trade and the rule of replacement controls strict and controlled high in order to prevent money laundering, and control strictly operations splurge of the coin ancient This allows the switch smoothly and safe.
stressed: the need to focus the central bank on his tools to re-exchange rate of the dinar to the target levels, the successful implementation of the project.
[BondLady] there you go scooter man . Do you have shredds comments per that timmy please
[Scoooter] Whoa that's an interesting tidbit
[BondLady] we have tons of those articles like that scooter
[tlm724] Shredds comment - "stressed: the need to focus the central bank on his tools to re-exchange rate of the dinar to the target levels, the successful implementation of the project."
I like this part.....the success of implementing this project depends on "re-exchange rate of the dinar" to TARGET LEVELS. This is what we have been saying..........an incentive via an exchange rate to make this project a success.
[Scoooter] that the central bank demands to confirm the unit value between the two currencies and start substitution out for the new currency and within the trade and the rule of replacement controls strict and controlled high in order to prevent money laundering, and control strictly operations splurge of
[Scoooter] confirm the unit value between the two currencies ,that's a very interesting statement . I'm not sure what to think about that one because they intend to have two separate values during this transition for the IQD. I can't imagine trading that on the FOREX Exotic exchanges
[BondLady] there in the news headlines everyday for at least a month now also all the banking laws,WTO, HCL, article 140. Everything is news per these things daily
[Scoooter] really -- it has my attention -- it states they'll have two years in this scenario as well
[BondLady] to remove the 000 notes yes
[Scoooter] I'll tell you what -- I need to research that one a bit further -- that just sounds well -- interesting .
I mean -- I've always contended they would have a unique hybrid approach but to outwardly state that could be interpreted in several ways holding two values in an electronic exchange environment ,that's a tough one to fathom.
Imagine being the central bank and you have thousands of transactions through your hubs daily how can you identify which value of currency you're trading for what country
[Scoooter] sorry, I need a bit more time to make a comment on that maybe that's the plan --- heck when Russia did their redenomination that was a beast for everyone worldwide. Nevertheless, let me research that one and come back later this week like Thursday
[Scoooter] I would like to look at that budget as well.
[BondLady] Parliamentary agreement - a government to increase coordination between the government and private banks Created on Saturday, April 20 / April 2013 08:06. | |
Parliamentary Finance Committee agreed with the Ministry of Finance and the Central Bank to increase the size of the coordination between the government and private banks in order to develop the country's banking system and lift bureaucratic obstacles in banking transactions.
Committee member said Abdul-Hussein al-Yasiri "The Finance Committee agreed with the Ministry of Finance and the Central Bank of the need to lift the administrative and technical coordination and technical cooperation between government and private banks."
He explained that the "deepening of the relationship between the government and private banks will strengthen the banking situation in Iraq and his dealings with different countries of the world," noting that "the Commission has informed the ministry of the need to strengthen the integration of private banks with weak heads the money."
The CBI earlier, he plans to convert the banks to large financial institutions after obtaining the approval of the Government to amend the Law No. 94 of 2004 on the integration of small banks to large banks.
The parliamentary Finance Committee said it has developed a plan with the Ministry of Finance to promote electronic communication between the government and global banks during the next phase.
The Central Bank has identified 250 billion Iraqi dinars as a minimum for the establishment of private banks in the country as seen Economists believe that private banks do not have the tools necessary to promote monetary and economic reality in the country.
[Scoooter] that one just further supports what I was saying earlier how they need to simplify the workings with banks worldwide electronically IMO just My opinion. it's going to be difficult to have two separate electronic rates and call that simplifying the system but I will check that out -- I might be wrong
[Scoooter] unfortunately, I have to go -- family is calling me and walking through the door. I really enjoyed talking with you folks tongiht and bondlady why don't we plan on something Thursday
[BondLady] your great scooter thank you so much !
[tlm724] Scooter tyvm
[DogzNova] ty scooter
[Scoooter] YW -- Thank you for listening
[BondLady] okay scooter and shredd and the rest of our team will hold a chat Thursday in here at 6 pm cst. Thank you all !