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CHAT ON RESERVES, DEPOSITORS INSURANCE, ISLAMIC BANKING AND THOSE DARNED AUCTIONS
Wealthwatch OOTW News & Comments 1-24-16 Part 1 of 2
Tootsie: Good Sunday a.m. to all ~ Today is big Playoff day to see whom will be in the Super Bowl ~ 6 hrs of football + the discussions. Have a good day ~ and to those who don't follow football, Enjoy your day also!!! To those in the storm path, I truly hope you are all safe. Tootsie: Toodles !
OOTW: Rafidain Bank Rafidain Bank has the "largest" financial stocks in the region with assets of $ 210 billion
OOTW: Detection Union of Arab Banks, on Sunday, the possession of Rafidain Bank "largest" stocks Mali in the region and the Arab world with total assets of $ 210 billion, and stressed that Iraq does not need the money in order to stimulate economic and banking sector, while pointing out the need to develop human resources, banking in Iraq.
OOTW: The Secretary-General of the Union of Arab Banks and Sam Fattouh, during a press conference held by the Association of Iraqi banks with the Union of Arab Banks for the signing of a joint cooperation agreement in the Babylon Hotel in central Baghdad and attended (range Press), said that "Iraq does not need the money in order to stimulate economic and banking sector."
Fattouh said, that "Rafidain Bank owns the largest financial inventories in the region and the Arab world, with total assets amounting to $ 210 billion," noting that "Qatar National Bank ranked second with total assets of $ 145 billion."
OOTW: The Secretary-General of the Union of Arab Banks, that "Iraq needs to develop its human resources and banking business in order to finance the local economy," pointing out that "the Union is working on it after the signing of a joint cooperation with the Association of Iraqi banks agreement."
OOTW: The Association of Iraqi banks announced on Sunday, signing a cooperation agreement with the Union of Arab Banks for the development of human resources, and called for the legislative and executive authorities to capitalize on this collaboration for the development of the banking sector, and with Union revealed the existence of preparations for the convening of an economic forum in Iraq to attract investors, expressed its readiness to provide assistance for the establishment of the Iraqi Association of banks.
Winnerdinar: ‹@OOTW› Winnerdinar: good chat
OOTW: not really a chat but thanks
OOTW: there's so much conflicting news out re the auctions - converting iqd to dollars, how the citizens are being ripped off, but they will not put their money in the banks until the deposit insurance is in force
OOTW: they also have to get corruption in line OOTW: its the same old thing
OOTW: also there are many areas where people cannot buy dollars except via the street vendors
OOTW: who charge hugs spreads
OOTW: then when they go into a cbi branch to deposit, the bank is telling them that their deposits are going to be held in dinar
OOTW: (also, sidenote - over a year ago, or two, the CoM came out and made an announcement that all transactions were going to be in IQD)
OOTW: so think about this
OOTW: youre a citizen, you go to the local currency vendor, street vendor..you pay say, 1240 dinars for one dollar
OOTW: then *IF you go to your local cbi branch to deposit to your account
OOTW: you're taking a reduction essentially, you paid 1240 on the street and then the bank is telling you your dollar youre depositing is worth 1182
OOTW: so you paid your spread then you get penalized for it
OOTW: a huge hit OOTW: not just the spread OOTW: *huge
OOTW: if banking was electronic - and that method could be trusted then it would be okay - also we still need to see state banks privatized and also more locations for people to deposit
OOTW: electronic methods re currency transactions , should, in effect, maintain integrity
OOTW: ie buying dollars (or even eliminating dollar sales) or dinars at their "true" worth going right into your account
OOTW: but....why is this not happening...???? OOTW: no friggin deposit insurance
OOTW: now read this article
OOTW: Citizens: banks forcing us to recognize our trusts «dollar» dinar Baghdad: Sara Kingsley Refrain from civil Baghdad banks disburse remittances and dollar deposits of citizens in the same currency to persons detained or sent to them, but are launched in Iraqi dinars, and the price at which it sells by the Central Bank.
Moon Eclipse noticed some abstentions complained banks cashing dollar deposits in dollars and forced to convert to the Iraqi dinar and the official rate for the dollar at the Central Bank and not at the market price, with regard to financial experts confirms that those recognizable methods and prepare to exploit the current economic circumstance.
He says a number of citizens, and their customers and the customers of those banks in their "world", "some banks in Baghdad to refrain from disbursing the dollar" doaeana "to the dollar, forcing us to received the Iraqi dinar and the official price for your dollar in the Central Bank and not at the market price, regardless of height occurring now in the exchange rate of the dollar against the Iraqi dinar", noting that "those banks cited the lack of financial liquidity.
Referred to as the Central Bank sold the dollar to banks and foreign exchange companies in the currency auction and 166, in its price in the domestic market between 1200 to 1260 Iraqi dinar. For his part, said Economist Dave winfred in connection with "the world" that "those banks take the currency difference without returned to citizens", pointing out that "such practices are contrary to the applicable laws."
So, the former Deputy Governor of the Central Bank and financial expert Ahmed ibraihi in connection with the "world", "such practices are the use of the current economic situation and need of citizens for foreign currency," he said, adding that "instructions to the Central Bank does not allow this."
OOTW: so this article is stating the plight of the average citizen
OOTW: and saying that the cbi shouldn't be doing this
OOTW: but....butifldrm and i spent all day analyzing cbi law as well as the islamic banking act today
OOTW: and the cbi has issued regulations saying that they can charge what needs to be charged according to their needs they estimate, so they have enough to purchase dollars
OOTW: we need to see a break from the dollar..but the IMF report indicated that for now they're staying pegged
OOTW: i spent hours today going through the MOJ site - one ip address digit at a time to find all gazette publications
OOTW: the Islamic Banking Act that was passed early october 2015 - has not been published at the MOJ site
OOTW: so, until this is published in a gazette, it's not law
OOTW: even the law itself and all iraqi laws state this at their closing
OOTW: cbi law has to be amended but they could get the capital they need with the enactment of the deposit insurance law
OOTW: they need to stop the auctions and they can't limit the corruption until this law gets passed
OOTW: i'm talking about street vendor transactions
OOTW: someone informed me today that there's going to be an enactment of capital requirements for banks by june 2016
OOTW: for iraqi banks
OOTW: some banks may not have the capital needed
Butifldrm: To stop the auctions the CBI will have to remove themselves from article xiv and move the dinar to an internationally traded currency, in other words accept all obligations under article VIII
Butifldrm: I would think they would unpeg from the dollar and float the currency, let the market decide the value
Butifldrm: If and when that happens the citizens will no longer have to exchange the Dinar for the Dollar
Butifldrm: and they will no longer spend Dinar to exchange to an internationally traded currency
Butifldrm: We know the auctions are a point of contention because they are the breeding ground for corruption Butifldrm: and apparently the corruption still exists
Butifldrm: The problem is the also partially attributed to the legislation side, the laws not passed, the sectarian disputes, it's pretty much a conviluted mess.
ladyfox: Hi ALL Imo Feb will bring out some good things [:ninja:]
OOTW: then we have this
OOTW: Mesopotamia owns the biggest financial stocks «»» in the region Baghdad: the world Arabic, banks revealed on Sunday that Rafidain Bank "biggest" financial stocks in the region and the Arab world with total assets amounting to 210 billion dollars, stressed that Iraq does not need funds to stimulate economic and banking sector, with the need to develop human resources and banking on Iraq.
The Arabic Bank Union Medal Fattouh during a press conference held today in Baghdad that "Iraq does not need funds to stimulate economic and banking sector." Fatouh said that "Rafidain Bank owns the largest Treasury financial region and the Arab world, with total assets amounting to 210 billion dollars", stating that "Qatar National Bank ranked second with total assets amounting to 145 billion dollars.
The Secretary-General of the Union of banks "Arabic Iraq needs to develop its human resources and banking to fund the domestic economy", noting that "the Union work after signing a cooperation agreement with the Association of banks.
OOTW: SO IF THE RAFIDAIN HAS 210B USD IN RESERVES...THIS MEANS, BY PROXY, SO DOES THE CBI
OOTW: THIS IS COMING FROM THE SCTY GENERAL OF THE ARAB BANK (FOR THE REGION OF ARAB COUNTRIES)
Butifldrm: Well, this is quite intriguing because the Rafadain bank is a state owned bank, but evidently it's reserves cannot be tied to the CBI reserves
Butifldrm: But, 250B in reserves is quite a lot of money and I'm not sure but maybe the reserves of this bank are untouchable because of the CBI's commitment to privatize both the Rafidain and Rasheed banks
Butifldrm: Now we see the importance of the IMF's request for the privitization of these banks
OOTW: TY BUTI YOU BRING, AS ALWAYS, AN EXPANDED UNDERSTANDING TO US
Butifldrm: site: "Iraq does not need funds to stimulate economic and banking sector." Fatouh said that "Rafidain Bank owns the largest Treasury financial region and the Arab world, with total assets amounting to 210 billion dollars",
OOTW: ADMITTEDLY, I AM NO ECONOMIST
OOTW: WELL THE NEWS IS CERTAINLY FULL OF CONTRADICTIONS
OOTW: (NOT UNUSUAL LOL)
Butifldrm: So now the I do believe it takes us back to legislation before these reserves can be capitalized on
Comments may be made at the end of Part 2 Thank You