Thanks My Lades for Sending this to us today:
MY LADIES: GOOD MONDAY MORNING EVERYONE. WE HAD AN INTERESTING WEEKEND AND HERE WE STILL ARE.
PERSONALLY I AM NOT SURPRISED I THINK I MADE MY POSITION CLEAR ABOUT WHERE I THINK WE ARE. WHILE I AGREE THIS CAN HAPPEN AT ANY MIN I, THAT’S ME PERSONALLY HAVE NO EXPECTATIONS UNTIL SOMEWHERE AFTER JULY.
NOW CAN THAT CHANGE?
YES OF COURSE IT CAN, BUT FROM WHAT I’M SEEING AND LOOKING OUTSIDE IRAQ AND AROUND THE GLOBE I THINK AS I EXPLAINED ON THE CALL FRIDAY WE NEED TO WAIT FOR THE SNOWBALL TO COME DOWN THE MOUNTAIN OUTSIDE OF IRAQ.
IN THE MEAN TIME LET’S HAVE A QUICK LOOK AROUND FOR THOSE THAT ENJOY THE DAY TO DAY IRAQ. I READ MY SAME PAPERS EACH DAY AND LIKE I’VE SAID OVER AND OVER I HAVE LITTLE TO NO INTEREST IN WHAT THE GOVERNMENT OF IRAQ IS DOING.
MY INTEREST IS WITH THE CENTRAL BANK AND CENTRAL BANKS OUTSIDE OF IRAQ AS WELL.
I WAS VERY PLEASED TO SEE SO MANY ARTICLES CALLING FOR THE SEPARATION OF THE CENTRAL BANK FROM GOVERNMENT. SO HERE PLEASE READ FOR YOURSELF AND THEN APPLY COMMON SENSE AND DO NOT BE CONFUSED WITH THINKING THE CBI AND THE GOI ARE ONE. THEY ARE NOT.
HERE READ FOR YOURSELVES http://www.almadapaper.net/ar/news/486678/
AND HERE http://www.dijlah.tv/index.php?page=article&id=182931#sthash.ugRMUZlh.dpuf
AND HERE IS ONE MORE, THAT’S 3 JUST FROM YESTERDAY ALONE http://www.almadapaper.net/ar/news/486667/
OK SO NOW MOVING ON, WE LOOKED AT AN ARTICLE FROM THE PARLIAMENTARY FINANCE YESTERDAY ABOUT THE INTRODUCTION OF NEW NOTES. THEY ARE TALKING ABOUT INTRODUCING THE 50K AND THE 100K NOTE.
Sarhan said Ahmed, member of the Finance Committee in the Iraqi parliament, the reporter "Basenyoz," The CBI will continue to work for the issuance of two new categories of currency fifty-two thousand, one hundred thousand dinars, "noting that" the central bank has taken the necessary preparations for that. "
He added that "the central bank looked at it and made the decision about it leaving only the allocation of funds for the printing of two new categories," pointing out that "Under the law will be charged the two new categories of currency writings in Kurdish language."
He said the Iraqi parliament to issue two new categories of the Iraqi currency in the preparations for a future plan that includes deleted several zeros from the currency. https://translate.google.com/translate?hl=en&sl=ar&tl=en&u=%20http%3A%2F%2Fwww.kululiraq.com%2F%3Fp%3D260684
HUMMM THIS IS INTERESTING THE LAST LINE “FOR A FUTURE PLAN THAT INCLUDES DELETED SEVERAL ZEROS FROM THE CURRENCY.”
WELL THE WORDS DELETE FROM THE CURRENCY IS PRETTY EXPLICIT. HOW MANY ZEROS WILL BE DELETED?
THIS PARTICULAR PIECE DOESN’T SAY. DOES THIS PIECE SPEAKS TO A LOP? WELL WE HAVE BEEN BACK AND FORTH ON THIS YESTERDAY AND NOVA IS ADAMANT THAT A LOP IS NOT POSSIBLE.
THAT SOUNDS GOOD TO ME TOO BUT WHO KNOWS FOR SURE.
SO FAR IRAQ HAS NOT BROKEN ANY ABSOLUTES AND AT THIS STAGE TO REMOVE ZEROS FROM THE CURRENCY SEEMS ILLOGICAL. BUT THEN WHY CREATE 2 LARGER CATEGORY NOTES? AGAIN FOR ME PERSONALLY I AM GOING TO WAIT AND SEE WHAT THEY DO WITH THE 250 NOTE.
IF THAT NOTE IS NEXT ON THE RECALL LIST AFTER THE 50 WE WILL HAVE TO ADDRESS IT AT THAT TIME. FOR NOW WE JUST WAIT.
LATER IN THE DAY WE SAW ANOTHER INTERESTING ARTICLE HERE IT IS http://www.almadapaper.net/ar/news/486667/
NOW THIS PIECE IS NOT ONLY TALKING ABOUT THE SEPARATION OF CBI AND GOI IT ALSO HAS AN INTERESTING PART ABOUT THESE 2 NEW NOTES. HERE READ THIS.
She said Najib saying that "the central bank was going to take some decisions that will bring the dollar to its former price outdated," unexpected "increase the width of the dollar, and reduce imports of foreign countries that require payment of the dollar from the Iraqi side."
SO THE FORMER PRICE OF THE DOLLAR ACCORDING TO THIS ARTICLE IS 130 THOUSAND DINARS FOR $100.00
She pointed out that "the lack of oil revenues in the current time also contributed to aggravate the financial crisis, especially that Iraq was receiving oil imports in dollars," asserting that "the citizen is affected by the first rise of the dollar to the relationship of this matter important joints of his life."
CURRENTLY IRAQ IS NOT RECEIVING OIL REVENUES THERE BY CAUSING MORE OF A SHORTAGE OF THE DOLLAR WHICH AFFECTS THE PRICE AS WELL.
AND THEN SHE SAYS THIS; pointing out that "the issue Banknotes category of 50 thousand dinars and 100 thousand dinars will contribute to reducing the the effects of the crisis, especially since these currencies will make the most of the groups acquired a large currency away from the dollar, and this may be part of the steps that may be followed by the central bank. "
SO FROM HERE SHE IS SAYING THAT THE USE OF LARGER NOTES WILL REDUCE THE EFFECTS OF THE CRISIS THINKING THAT LARGER NOTES WILL BE EASIER TO USE TO BE AWAY FROM THE DOLLAR. (REMEMBER A CUP OF COFFEE IS ROUGHLY 1000 DINAR) THIS IS WHY THE CITIZENS CONTINUE TO USE THE DOLLAR. (I JUST PICKED OUT A FW PARAGRAPHS I SUGGEST YOU ALL READ THE ENTIRE ARTICLE.)
NOW IN TOSSING THIS BACK AND FORTH IF YOU RECALL A CALL NOVA AND I DID WHEN THIS TALK OF LARGER NOTES FIRST CAME OUT THAT WAS THE LINE OF THINKING WE HAD BASED ON WHAT WE READ.
SEE IF YOU LOOK AT THE COST OF THINGS IN IRAQ NOW IT IS NOT CONVENIENT FOR THEM TO USE THE DINAR IN EVERY DAY TRANSACTIONS. THEY NEED TO CARRY TOO MANY OF THEM. ALSO IF YOU READ THE ARTICLE FROM THE PARLIAMENTARY COMMISSION THE LAST LINE SAYS “He said the Iraqi parliament to issue two new categories of the Iraqi currency in the preparations for a future plan that includes deleted several zeros from the currency.”
SO INTRODUCE THE LARGE NOTES AND THEN IN THE FUTURE REMOVE THE ZEROS. I THINK WE MIGHT JUST SEE THIS IN THE REAR VIEW MIRROR. THEY HAVE BEEN TELLING US THAT THEY WILL NEED 2-5 YEARS TO FINISH THEIR CURRENCY REFORM BUT THIS SHOULD HAVE NO EFFECT ON US.
TO QUOTE NOVA “WE NEED AN INTERNATIONAL CURRENCY AND A VALUE, AFTER THAT THEY CAN PUT MICKEY MOUSE ON THE CURRENCY AND IT WOULDN’T MATTER TO US.”
SO WHILE I WILL CONTINUE TO WATCH THIS I DON’T THINK I BELIEVE THAT THE 50K AND THE 100K WILL END UP BECOMING 50 OR 100 DINAR DURING OUR TIME. I DON’T THINK WE WILL SEE A LOP BUT I WILL CONTINUE TO WATCH.
NOW LET’S RECAP SOVEREIGN WEALTH FUNDS. WE SAW THIS ARTICLE ON SATURDAY
Create a sovereign wealth fund to attract investment
By Emad Mohammed 25.04.2015 1:25 a.m.
Create a sovereign wealth fund to attract investment
Brother - Baghdad
Commission revealed the economy and investment parliamentary Saturday, its intention to submit a proposal law establishing a sovereign wealth fund to attract investment in Iraq, while showed that this fund will be linked to the International Monetary Fund to give guarantees to investors.
THE FACT IS THIS WAS SUGGESTED SOME YEARS AGO LIKE 2008 AROUND THE SAME TIME AS THE DFI AND THE REASONING IS TWO FOLD.
YOU SEE IRAQ HAS A LAW IN PLACE THAT ENSURES SEPARATION OF THE GOI AND CENTRAL BANK. THE LAW SAYS THAT THE GOVERNMENT CAN NOT BORROW FROM THE CENTRAL ANY FUNDS.
THEY NEED TO GENERATE THEIR OWN AND THEY HAVE THE MEANS TO DO IT. NOW WITH WANTING TO BRING IN FOREIGN INVESTMENT THERE ARE NO SURPLUS FUNDS THAT THE GOVERNMENT HAS TO GUARANTEE DEPOSITS IN THE STATE BANKS. COMBINE THAT WITH THE COUNTRY BEING EXTREMELY UNSTABLE AND IRAQ IS NOT A PLACE MANY WANT TO INVEST IN AT THIS TIME.
SO THEY ARE LOOKING INTO TAKING THE SUGGESTION OF 2008 AND AGAIN STRONGLY RECOMMENDED BY THE IMF IN 2013 AND ARE GOING TO SET UP A SOVEREIGN FUND. HERE IS SOME INFO ON IT http://www.imf.org/external/pubs/ft/scr/2013/cr13218.pdf
AND THERE IS MORE YOU SHOULD KNOW, THE FUND IS DISCUSSED ON PAGE 22 BUT THE ENTIRE THING IS A GOOD READ.
HERE IS SOMETHING ELSE OF INTEREST IF IRAQ IS TAKING SUGGESTIONS, http://www.imf.org/external/np/seminars/eng/2014/lic/pdf/wills-ploeg.pdf
Why Do So Many Oil Exporters Peg Their Currency? Foreign Reserves As A De-facto Sovereign Wealth Fund
I’M NOT SAYING THEY WILL DO THIS, IT WAS JUST ANOTHER SUGGESTION. IN ALL THESE SCENARIOS THEY NEED AT THE VERY LEAST AN INTERNATIONAL CURRENCY TO ESTABLISH THIS FUND. IT SEEMS THE IMF IS HELPING THEM GET ALL THINGS LINED UP AS WELL AND THERE SEEMS TO BE URGENCY FOR THIS FUND.
NOW TODAY WHAT ARE WE SEEING YOU GUYS ARE BRINGING IN THINGS ON THE TARIFFS. I ASSURE YOU THESE HAVE NOTHING TO DO WITH THE RE PRICING OF THE DINAR.
TOMORROW A DELEGATION FROM THE FINANCE DEPARTMENT WILL TRAVEL TO KURDISTAN FOR IMPLEMENTING THE TARIFFS. I ASSURE YOU THIS EVENT WILL NOT BRING FORTH THE RE PRICE.
FOR SOME UNKNOWN REASON MANY OF YOU ARE HOLDING ON TO THE ACTUAL APPLICATION OF TARIFFS AS A SIGN OF AN “RV” PLEASE STOP DOING THAT.
WHAT WE WANT TO SEE IS AN ELECTRONIC MECHANISM THAT CAN CONVERT ANY CURRENCY INTO THE DINAR VALUE.
THAT IS THE SIGN OF INTERNATIONAL CURRENCY.
THE APPLICATION OF OR INCREASE IN SOME TARIFFS HAS LITTLE TO NO MEANING FOR THIS PURPOSE. HERE IS THE OLD SCHEDULE OF TARIFFS FROM SEVERAL YEARS AGO, IRAQ HAS TARIFFS IN PLACE SINCE THE DAWN OF TIME. http://www.iraq-businessnews.com/wp-content/uploads/2011/02/Iraqi-DRAFT-Tariff-Schedule.pdf?d9c344
HERE IS ANOTHER GOOD READ ABOUT INVESTING IN IRAQ THESE TALKS ABOUT THE BANKS, AND THE CURRENCY AND THE MUCH DEBATED INVESTMENT LAW.
IT IS NOT VERY LONG AND WILL ARM YOU WITH SO MANY FACTS THAT WILL SHOOT DOWN ANY HOPIUM OR NONSENSE YOU MAY HEAR OR SEE DURING YOUR TIME WAITING. http://www.mofa.gov.iq/documentfiles/InvestorGuide.pdf
THIS HAS BEEN PRINTED IN 2009 BUT MOST OF IT HAS BEEN IN EFFECT SINCE 2004 AND STILL GOING STRONG.
HERE SOME OTHER FUN FACTS FOR YOU FROM THE US DEPARTMENT OF STATE REGARDING INVESTMENT IN IRAQ, FREE TRADE ZONES, CURRENCY, AND OPENING BANK ACCOUNTS AS A FOREIGN ENTITY,
AGAIN NOT VERY LONG BUT A GOOD READ AND EVERYONE SHOULD HAVE THE BASIC FACTS OF THIS INVESTMENT TO HELP YOU DISCERN WHAT YOU HEAR OUT IN DINAR LAND AS FACT OR FICTION.
THIS DEPARTMENT OF STATE IS FROM 2013 BUT IS STILL EFFECT TODAY. HERE IS A GOOD READ http://www.state.gov/e/eb/rls/othr/ics/2013/204661.htm
ALRIGHT SO NOW MOVING ALONG WE COVERED THE LARGE NOTES, THE SOVEREIGN WEALTH FUND, THE TARIFFS, AND THE SEPARATION OF THE CBI FROM THE GOI.
WELL WHAT DO WE HAVE LEFT?
OH SECURITY- OK WELL REAL QUICK ON THAT I SAY THEY ARE MUCH FURTHER AHEAD THAN THEY ARE LETTING ON.
I SAY THIS SIMPLY BECAUSE THERE IS SOME NEWS COMING OUT FROM THE REGION NOT IRAQ ABOUT THE HAPPENINGS IN MOSUL, AND THE HEZBOLLAH BRIGADES AND THE TURKISH TROOPS ALL IN MOSUL FOR WEEKS UPON WEEKS NOW DOING A GOOD ISIS CLEAN UP.
IN ANBAR THEY HAVE TAKEN BACK THE PROVINCE AND SOME DISPLACED ARE RETURNING HOME. THE FOCUS NOW IS ON NINEVEH PROVINCE AND THE PROGRESS IS FORWARD MOVING.
OH AND TODAY IS A VERY IMPORTANT DAY REGARDING THE TRANSFER OF POWER TO THE PROVINCES. WE REMEMBER THEY HAVE AN AUGUST DEADLINE TO TRANSFER ALL POWERS OF THE MINISTRIES ACCORDING TO THE GOVERNMENT PLAN. THIS STEP IS ALSO NECESSARY TO MOVE TO A MARKET ECONOMY. HERE IS WE HAVE TAKING PLACE THIS MEETING IS VERY BIG.
Abadi chairs the sixth meeting of the second session of the Supreme Commission for coordination between the governorates not organized province
Prime Minister Haider al-Abadi terrace in Karbala on Monday, the sixth meeting of the second session of the Supreme Commission for coordination between the governorates not organized province in the presence of Minister of State for Cun provincial governors and heads of provincial councils, agents and ministries of agriculture, youth and municipalities, health, education, planning and finance, construction, housing, labor and social affairs.
SO ABADI IS CALLING ONCE AGAIN TO SPEED UP THE PROCESS OF TRANSFERRING POWERS, A VERY IMPORTANT STEP TO PROGRESS WITH THE ECONOMIC REFORM.
HERE THIS IS A BIT LONG BUT WORTH THE READ. http://www.imn.iq/news/view.65545/
SO AGAIN WHERE IN ALL OF THIS ARE WE?
I THINK WE ARE RIGHT ON TRACK, I THINK IRAQ IS HANDLING THEIR BUSINESS IN A TIMELY WAY AND I THINK THE REST OF THE PROCESS HAS TO UNFOLD.
THERE ARE MANY MOVING PIECES TO BRING FORTH WHAT WE WANT TO SEE AND THEY DO NOT ALL RELY ON IRAQ’S HEADLINES AS I’M SURE YOU HAVE FIGURED OUT BY NOW. IRAQ IS GOING TO BE BUILDING AND GROWING AND CHANGING FOREVER ESPECIALLY AFTER THEIR CURRENCY HAS A VALUE.
MY SUGGESTION TO KEEP YOUR SANITY IS SIMPLE, STOP LOOKING FOR THAT TIMELINE. PLEASE, STOP LOOKING AND COUNTING ON ANY ONE PARTICULAR EVENT.
STOP SCANNING FOR THAT ONE BREAK THROUGH HEADLINE, BECAUSE IT WILL NEVER COME. THE ENTIRE BANKING SYSTEM AND STRUCTURE IS CHANGING GLOBALLY.
MARKETS AND CURRENCIES ARE CORRECTING ALREADY. THE SDR SYSTEM IS SETTING UP AND YOU KNOW WE FEEL THE IQD WILL BE A SUPPORT CURRENCY IN THAT SDR BASKET.
WHEN THE SYSTEM GETS TO THE PART WHERE IT IS IRAQ’S TURN TO CORRECT THAT IS WHEN WE WILL GET WHAT WE WANT AND NOT BEFORE.
IN THE MEANTIME IT IS PAINFULLY OBVIOUS THAT IRAQ IS GOING ON WITH THEIR BUSINESS UNTIL THEY ARE TOLD IT’S THEIR TURN. IRAQ WILL CONTINUE TO GO ON WITH THEIR BUSINESS AFTER THIS HAPPENS.
REMEMBER IN IRAQ A DINAR IS A DINAR AND AFTER THIS CHANGES THINGS IN IRAQ WILL NOT BE MUCH DIFFERENT.
WE ARE LOOKING FOR AN INTERNATIONAL EXCHANGE RATE OF THE DINAR TO WHICH EVER CURRENCY WE USE.
IRAQ WILL NOT BENEFIT FROM THIS IN ANY WAY OTHER THAN PURCHASING POWER. WHEN THE DOLLAR INDEX GOES DOWN TO $0.76 OR UP TO $1.01 DOES THE DOLLAR BILL IN OUR WALLET CHANGE? NO IT DOES NOT!
DOES THE BALANCE ON OUR DEBIT CARD CHANGE?
NO IT DOES NOT, SO WHEN THIS CURRENCY CHANGES PRICE FOR IRAQ THEIR BANK BALANCES WILL NOT CHANGE AND THE DINAR IN THEIR WALLET WILL NOT CHANGE, BUT THAT CUP OF COFFEE WE TALKED ABOUT EARLIER AS AN EXAMPLE WILL GO FROM 1000 DINAR TO 1 DINAR.
FOR THOSE OF YOU THAT ENJOY THE DAY TO DAY IRAQ NEWS, FOLLOW THE CBI AND THE MONEY, FORGET ABOUT THE GOI THEY WILL BE WRITING AND FIXING LAWS FOREVER. FOLLOW THE MONEY.
I HOPE THIS HELPS SOME OF YOU.
LOVE TO ALL MY LADIES, NOVA, AND NEWS HOUNDS.