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Wealthwatch OOTW Sunday News & Comments 2-28-16 Part 2 of 3
OOTW: EXPERTS CONSULTED (OR WITHIN THE CBI) DIFFER ON HOW TO APPROACH THIS ISSUE
OOTW: to that , the Central Bank Governor , Dr. Ali Keywords to sell the currency operation need a deep understanding in light of the large charges , which the Bank is exposed without evidence to prove the existence of suspicions of corruption or money laundering operation or smuggling of currency .. surprising of IPO , which says a n currency sale or waste of public money , this characterization of the IMT for scientific or economic relevance , and there are a lot of countries practicing this process is one of the main functions of central banks in the world
OOTW: "WITHOUT EVIDENCE" ???? NO THEY HAVE EVIDENCE
OOTW: AS WE'VE SEEN IN NEWS ARTICLES, MANY BANKS OVER THE GLOBE ARE ATTEMPTING TO ADDRESS CORRUPTION
OOTW: *MANY CENTRAL BANKS
OOTW: , adding Keywords through its participation in the seminar held by the «Institute for the progress of the policies of development» and display which the central bank 's strategy for the years next five ..
that these accusations against the bank without the evidence has caused major problems for the sector of the Iraqi banking on the national and international levels has resulted in a state of distrust and hedging by Mtota international banks from the impressions created by skeptical comments
OOTW: THE INTEGRITY COMMISSION HAS ISSUED STATEMENTS THAT THERE HAS BEEN CORRUPTION VIA THE CBI - SO MOHSEN IS OBVIOUSLY TRYING TO DIVERT ATTENTION TO THIS
OOTW: (YOU ONLY NEED TO PERUSE OUR WEEKLY GOVT THREADS FOR EVIDENCE OF THIS)
OOTW: , adding Keywords through its participation in the seminar held by the «Institute for the progress of the policies of development» and display which the central bank 's strategy for the years next five .. that these accusations against the bank without the evidence has caused major problems for the sector of the Iraqi banking on the national and international levels has resulted in a state of distrust and hedging by Mtota international banks from the impressions created by skeptical comments
OOTW: BLAH BLAH BLAH
OOTW: and pointed Keywords The problem we face is that the cash flows come from the outside only through the sale of oil and these flows go to the Finance Ministry exclusively and this ministry is not needed to the dollar but it is the need of the dinar to finance government spending ,
so they are resorting to selling the dollar the central bank in exchange for the dinar and in turn the bank dollar selling in the market to create a balance and work to cover imports ..
explaining in if thebank resorted to the imposition of restrictions on the auction currency will rise the exchange rate and open the doors for speculators to blackmail others
OOTW: SO HE'S SAYING THAT AT PRESENT, THE CBI NEEDS TO STAY PEGGED TO THE DOLLAR , IF NOT, THEN THE VALUE OF THE DINAR WILL RISE, MEANING IT WILL DECREASE
OOTW: .. so for the central bank maintains the stability of exchange rates , one of his duties and basic curb inflation within the target border so it is not possible to put restrictions and can not close the window that there was no we have other options .. stressing that the Ministry of Finance is Guidara to do the job because it is not ready for it and talked Keywords for cash reserves of the Central Bank
OOTW: THEY'RE EXAMINING THE CASH RESERVES OF THE CBI, IN ORDER TO RE-EXAMINE OTHER APPROACHES TO ADDRESSING THE ISSUE OF MCP - MULTIPLE CURRENCY PRACTICES RE SELLING THE DOLLAR
OOTW: HOWEVER THE MINISTRY OF FINANCE IS STATING THAT BASED ON TALKS WITH THE CBI - THERE'S HESITANCY, BECAUSE OF THE RESERVES..IS THERE ENOUGH, CAN WE DO THIS?
OOTW: .. indicating that this reserve is unrelated to the reserve that exists among the government and public treasury at the Ministry of Finance, the real surplus is the money that accumulated by the government and that increases the need for spending and this is what happened in previous years ,
when revenues increased over the expenditure ceiling , which led to the accumulation of sums up .. indicating that the bank reserve decreases when retreating Revenue ..
adding that the devaluation of the dinar would result in raising rates inflation to more than 30 per cent against the few benefits , which obliges us to Anfakkak huge amounts of money in later years to correct the situation and to control inflation ..
stressing that the solution is to increase the government 's reserve lies in the activation of other tools such as taxes without affecting the purchasing power of the citizen normal through control targets tax
OOTW: FIRST, THEY'RE STATING THAT THE RESERVES BEING CONSIDERED ARE SEPARATE FROM THE RESERVES HELD FOR THE GOVT
OOTW: THEY NEED THE GOVT RESERVES FOR GOVT SPENDING
OOTW: AND THERE'S CONCERN BECAUSE GOVT SPENDING WILL OVERSHADOW THEIR RESERVE LIMIT AND MAY NEED HELP TO MEET DEFICITS FROM THE CBI
OOTW: AND THIS DECREASES THE RESERVES OF THE CBI, ESP IN RELATIONSHIP TO THE CONSIDERATION OF THE VALUE OF THE DINAR - VS INFLATION
OOTW: BIG QUOTE HERE
OOTW: " .. adding that the devaluation of the dinar would result in raising rates inflation to more than 30 per cent against the few benefits , which obliges us to Anfakkak huge amounts of money in later years to correct the situation and to control inflation ..
stressing that the solution is to increase the government 's reserve lies in the activation of other tools such as taxes without affecting the purchasing power of the citizen normal through control targets tax"
OOTW: THEY DO NOT WANT TO STIMULATE POTENTIAL INFLATION BY ADJUSTING THE RATE OF THE DINAR, AND THEY'R PROPOSAL FOR RAISING MONEY (ESSENTIALLY) IS TO IMPOSE TAXES AND OTHER TOOLS, WITHOUT TRYING TO BREAK THE EVERY DAY IRAQI'S ECONOMIC BACKS
OOTW: .. stressing that the devaluation of the dinar option is the last option that we think it can not resort to it only when the lack of solutions to a disabled option. and the central bank governor said the strength of the dinar and stability is strongly linked to the,economy,
not the process of buying and selling, not the reserve is the determining factor in this context , there are a few superpowers in its reserves, but has a strong economy .. and even Iraq was rated countries that exaggerate the reserve
OOTW: DEVALUING THE DINAR IS A LAST RESORT
OOTW: IF WE CANNOT FIND OTHER SOLUTIONS, THEN THIS IS WHAT WE'LL DO
OOTW: REMEMBER THAT WHEN A COUNTRY WANTS TO BOOST ITS ROLE AS AN EXPORTER NATION, THE TYPICAL NEED/SOLUTION FOR THIS IS TO LOWER THE VALUE OF THE CURRENCY - JUST A SIDE NOTE..NOT TO PANIC PLEASE
OOTW: THEY WANT TO AVOID DOING THIS
OOTW: THIS IS WHAT THEY STATE AS THERE SUPPORT AND REASON AS TO WHY , AT PRESENT, THEY DO NOT FEEL THEY NEED TO LOWER THE VALUE OF THE CURRENCY
OOTW: the central bank governor said the strength of the dinar and stability is strongly linked to the economy, not the process of buying and selling, not the reserve is the determining factor in this context , there are a few superpowers in its reserves, but has a strong economy .. and even Iraq was rated countries that exaggerate the reserve
Doug_W: Oh WOW the sky is falling the sky is falling the sky is falling
Doug_W: lol OMG
OOTW: .. explaining that the large reserve is not indicative of the strength of the economy but on the contrary is sometimes a burden on theeconomy , so a lot of states when the reserve then increases more than the local currency tocover it turned surplus to the Treasury.
He acknowledged Keywords existence of problems in the banks , which need major repairs and control .. stressing that the Superintendency of banks need to build the Central Bank is working on it
OOTW: HE'S STATING THAT SOMETIMES WHEN RESERVES INCREASE TO COVER EXPENSES, IT ADDS A SURPLUS TO THE GOVT TREASURY –
BUT THE EXISTING CONTROL/LAWS IN IRAQ RE BANKING POLICY ARE NOT SUPPORTIVE OF INCREASING THE BANKS HOLDINGS
OOTW: (FOR ONE, WE NEED DEPOSITOR'S INSURANCE)
OOTW: (BTW- THIS REPORT IS ON THE FLY, I HAVE NOT PREPARED THIS - TAKING IT ONE PARA AT A TIME :)
OOTW: .. He explained that there are significant challenges facing banks , working with government and the private sector, even with the citizen, and there is a problem is the difficulty of recovery of non -performing loans and other problems realistic ones deposits of private banks in the Kurdistan region ,
which amounted to 7 trillion dinars used in the province Mazbb to cause a big jolt in thework of these banks, as well as the government 's inability to pay contractors benefits and there is a significant deficiency in the departments of these banks
OOTW: SO HE'S STATING THAT THE DEPOSITS HELD IN BANKS (BASED ON PARA ABOVE - IS EITHER TOO MUCH OR TOO LITTLE? HMM) HAS CAUSED A BIG JOLT TO PRIVATE BANKS
OOTW: *SIGNIFICANT DEFICIENCY
OOTW: .. calling for the need to resort to thebanking integration in order to strengthen the banking sector , we are not in need of 50 banks to possess the ability to contribute to the development. Keywords revealed not to allow Islamic banks that recently have been approved to enter to auction currency only after making sure practice of Islamic banking activity about true ..
OOTW: HE IS STATING THAT WE CAN CONDENSE/MERGE THE AMOUNT OF PRIVATE BANKS, THAT THERE IS NO NEED FOR THE AMOUNT OF PRIVATE BANKS CURRENTLY ENSTATED
OOTW: WHAT I FIND VERY INTERESTING, IS THAT WE HAVE SEEN LAW IN THE GAZETTE REGULATING THE PRIVATIZATION OF THE RAFIDAIN AND RASHEED BANKS
OOTW: WE HAVE ALSO SEEN MINISTRY OF TRADE ANNOUNCEMENT STATING THIS AS WELL
OOTW: BUT MOST IMPORTANT IS THE PASSING OF THE ISLAMIC BANKING ACT WHICH WILL SURE UP INVESTMENT REGS ACCDNG TO ISLAMIC ACCOUNTING AND BANKING PRACTICES - TO DRAW IN INVESTMENT
OOTW: HE'S STATING HERE (ABOVE) THAT SOME OF THESE BANKS WILL NEED TO ADHERE TO ISLAMIC BANKING REGARDING THEIR CURRENCY PRACTICES - I WOULD EXPECT INCLUDING AUCTIONS
OOTW: SELL OF THE DINAR FOR DOLLAR
OOTW: HOW MUCH CAN THEY PROFIT FROM THIS?
OOTW: ISLAMIC BANKING PRACTICE CONTENDS THAT THEY MAY ONLY PROFIT ENOUGH TO USE THE PROFIT TO PURCHASE MORE FOREIGN CURRENCY
OOTW: on the other hand accept the central bank governor , Dr. Ali Keywords strategic plan of the bank for the heavens 2016-2020 .. He explained that the plan was drawn objectives of public policy of the state in the construction of a free market - based economy on market factors, competition and enable the private sector play a role based on the economic development plan also built in the light of the central bank targets contained in the law No. 56 of 2004
and of achieving stability in domestic prices and maintain a stable financial system , as well as to promote sustainable development and achieve prosperity in Iraq .. he pointed out that the plan consists of five main objectives for these other targets and sub-initiatives
OOTW: THEY HAVE A FIVE POINT PLAN TO ADDRESS THESE ISSUES
OOTW: and added that the strategic objective of the first seeking to build a comprehensive frameworks to achieve financial stability and the development of mathematical models for the stability and development of indicators for asset prices.
the second objective is to strengthen the overall control systems based on risks through thedevelopment of a supervisory framework based accordance with the requirements (Basel) Basel.With the application of standardized evaluation criteria banks
OOTW: 1) first seeking to build a comprehensive frameworks to achieve financial stability and the development of mathematical models for the stability and development of indicators for asset prices.
OOTW: REMEMBER THAT IRAQ PARTICIPATED WITH THE UN TO DETERMINE PRICING INDEXES FOR GOODS - RELATED TO TRADE EVERYONE
OOTW: THIS IS JUST ONE ASPECT TO WHICH THE ARTICLE IS SPEAKING
OOTW: 2) the second objective is to strengthen the overall control systems based on risks through thedevelopment of a supervisory framework based accordance with the requirements (Basel) Basel.With the application of standardized evaluation criteria banks
OOTW: THEY'RE GOING TO IMPLEMENT BASEL BANKING REQUIREMENTS...THIS IS AN INTERNATIONAL SYSTEM
OOTW: 3) .. As the plan seeks in the third goal to protect the financial system , developing a national strategy to combat money laundering and terrorism financing. And to take measures and provide the required requirements to join the organization (Egmont)
OOTW: BUT WAIT, HE SAID THAT THE CBI DOES NOT SUFFER FROM THE BANKING MALADY LOL
OOTW: 4) .. fourth goal of the plan aimed at strengthening consumer protection byadopting a comprehensive framework of policies and procedures to be applied to financial consumer protection.
OOTW: UHHHHH FOR ONE...GET THE DEPOSITORS INSURANCE LAW PASSED
OOTW: In goal the fifth plan seeks to work on exchange rate stability through diversification of investment tools and the introduction of new currencies convertible and activate the structure of interest rates and the withdrawal of surplus cash ,
OOTW: ONE INVESTMENT TOOL WOULD BE INVESTMENT CONTRACTS, TAXES DERIVED FROM TARIFFS, SELLING BONDS AND MORE
OOTW: "INTRODUCTION OF NEW CURRENCIES CONVERTIBLE"
OOTW: CHARGING INTEREST FOR DEPOSITS
OOTW: "INTRODUCTION OF NEW CURRENCIES CONVERTIBLE"
winnerdinar: i wonder if they are talking about the depends from dollar to a basket of currencies?
OOTW: THIS IS NOT A CLEAR ENOUGH STATEMENT
OOTW: AH PERHAPS
OOTW: YES GOOD POINT, BECAUSE ABOVE THEY STATE THAT RIGHT NOW THEY CANNOT DEPEG
OOTW: SO THIS IS THEIR AIM IT SEEMS
OOTW: TY WINNERDINAR
winnerdinar: TY OOTW excellent chat
OOTW: participants at the seminar voiced a lot of opinions and observations on the performance of thecentral bank and the new plan , praising, about the contents of the plan from the task of axes I wish them success ..
thankful Institute of progress to hold such important seminars to discuss and address various issues talk show style civilized Vice President of the board of Directors in the Ashur international Bank Ali al - Husseini made anumber of observations on the bank 's strategy, calling it too Btmouhh
OOTW: .. believing that the bank carry the same responsibility bigger than its size as a result of not carrying this responsibility by the other parties ..modha that there are key partners of the Central Bank and other subcontractors ,
such as financial, tax and Office of financial supervision and the stock market and the insurance sector .. a task price fixing body .. pointing out that some of the concepts contained General strategic concepts, including the concept of risk performance
OOTW: THIS SECTION IS STATING THAT THERE ARE SEVERAL LEVELS OF SUPPORT WHICH CONTRIBUTE TO THE BANKING SECTOR
OOTW: .. calling for the development of rapid response and control channels including channels .. president of the Federation of Iraqi businessmen willing Reza Blibl said in his intervention that what matters the private sector interacting with the Central Bank 's policy faces challenges .. calling on the bank to support the this sector
OOTW: CALLING ON THE CBI TO SUPPORT PRIVATE SECTOR GROWTH
OOTW: .. believing that the solutions developed by the bank faced a lot of challenges, especially initiatives launched by the Bank, including six trillion initiative to the presence of actors seeking to thwart this initiative through the wrong mechanisms which serves as a mine to blow up this initiative ..
mbana that mentality of those in charge of industrial Bank is commercial mindset and therefore, the procedures established by this bank is tied procedures do not allow for any industry to benefit from the initiative as the attitude of the bank is about new projects and these projects will not move the economy and provide jobs and contribute to the gross domestic product
OOTW: THERE WERE THOSE IN IRAQ AND WITHIN THE BANKING SYSTEM WHO HAVE NOT SUPPORTED THE CBI'S EFFORTS TO STIMULATE THE ECONOMY
OOTW: ANY INITIATIVES NEED TO SUPPORT THE ECONOMY, JOB PROJECTS AND EMPLOYMENT DERIVED FROM THESE
OOTW: BUT THE SUPPORT HAS NOT BEEN THERE FROM MANY BIG BANKS
OOTW: .. stressing the need to form a committee to put controls and thedimensions of parasites. banking expert Muwaffaq Hasan Mahmud said the 75 per cent of currency in circulation is outside banks
OOTW: WHOA "75% OF CURRENCY IS OUTSIDE BANKS"
OOTW: WELL THEY KNOW WHAT TO DO...DEVELOP SOME TRUST FOR THE CITIZENS
OOTW: .. and that the banking sector problem is the weakness of deposits and guide the inability of the sector to invest in the country to support or implement a single residential project in Iraq .. indicating the confidence of the people day after day pales how can restore this confidence at atime when banks are unable to perform instruments
OOTW: .. expressing regret over the absence of controls on banks and penetrate such control .. adding that the Iraqi economy is a cash economy ,and all the people they deal with cash has reached the number of banks , 54 banks after converting remittance companies to banks
OOTW: . Do we need so many banks? . Is there a bank staffs are able to manage .. adding that there are major international banks are no longer dealing with the Iraqi central banks because of the remittances that we do not know them already and movement are the obstacle to international banks in dealing with the Iraqi banks. MP Dr. Gamal Muhammadawi
OOTW: OH BOY...YOU KNOW THAT INVISIBLE BANKING VIA REMITTANCES, IS ONE OF THE PRIMARY REASONS IRAQ WAS SHIFTED FROM ARTICLE 8 TO 14
OOTW: .. raised a number of questions including is that the strategy is thefirst plan launched by the Central Bank .. He pointed out that many of the ideas put forward as a key functions of the bank .. pointing out that in 2015 the House of Representatives an initiative which identified an auction currency b (75) million dollars per day to prevent the laundering money and support for terrorism
OOTW: YES, AND WE REMEMBER THE 75M CAP WAS OVERTURNED BY MOHSEN WHO WENT TO THE SJC TO GET THIS STIPULATION IN THE 2015 BUDGET, OVERTURNED
OOTW: .. but - as seen Mahmdaoa- it turns out that the initiative is not , however , the central bank but the bank did not , however , speculators could control them. financial Advisor to the Prime Minister , Dr. appearance of Mohammed Saleh .. He explained that Iraq opened up to import about large. Calling to encourage the export of certain goods and products and the lifting of restrictions on that banking expert Samir Alnasiri
OOTW: SEE, THEY NEED TO START INCREASING EXPORTS SO THEY CAN SUPPORT THE ECONOMY
OOTW: .. expressed fears of the non - application of the central bank 's plan , as with the rest of the plans be more than (16) strategy was doomed high shelves .. This plan came too late ..
He called for setting the timing for implementation of the plan axes to save thebanking sector from collapse , there are 10 banks in danger of bankruptcy and the 16 banks may not payment of dues customers ..ually central bank reveals the priorities of his plan to the year 2016 in order to restore confidence in the banking sector
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