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Wealthwatch Wednesday Chat 1-13-16 Part 2 of 2
chattels: " The political and security situation taking place in the country to create turmoil in buying and selling operations. "The government is planning, according to a memorandum of the International Monetary Fund, to finance the deficit in the balance of payments of withdrawal from Iraq's reserves of foreign held by the central bank, including make it go down to $ 43 billion in 2016 from 59 billion at the end of October Almadi."
loveit2: ‹@chattels› GM ....seems we got some good news last night ?
chattels: The government resorted to foreign reserves to cover the deficit in the budget
chattels: in a memorandum to the International Monetary Fund, the government said on Tuesday it plans to finance the deficit in the balance of payments of withdrawal from Iraq, including foreign reserves will make it go down to $ 43 billion in 2016 from 59 billion last October end.
She said the government, under a program approved by the IMF as a precondition for the loan, it is expected that the balance of payments deficit of $ 14 billion in 2015, before shrinking to $ 11 billion in 2016. He estimated Iraq's GDP will grow by 1.5 percent in 2015 and 10.6 percent in 2016 to increase its production of oil. While falling oil prices will lead to a budget deficit of 15 percent of GDP in 2015 and a deficit of 10 percent in 2016.
chattels: wealthwatch.world/showthr... Post # 10
chattels: ‹@loveit2› What news is that ?
loveit2: news from ootw
loveit2: i got more confused as I read it..its still a "blurr" to me :(
chattels: ‹@loveit2› Frankly, I do not follow it.
loveit2: ‹@chattels› OK ..THANK YOU FOR WHAT YA BRING :)
chattels: head of the Islamic Supreme Council of Iraq Ammar al-Hakim said he supports Prime Minister Haider al-Abadi "strongly" but stressed the need to speed up the implementation of reforms. wealthwatch.world/showthr...
lonegunman: GOOD MORNING !
Tootsie: With respect to the above article re: cbi reserves, ~~~ Central Bank refuses directed the government to withdraw from its reserves and prepared "an encroachment on the law." 01/13/2016 17:46 (5:46 p.m.) Long-Presse / Baghdad Central Bank of Iraq's refusal, on Wednesday, the government went to draw from the financial reserves, and stressed that the law does not allow the government to draw from the hard currency reserves, while calling on the government to issue bonds and sell them to banks.
The general director of issuance and cabinets in the Iraqi Central Bank Ahsan Shomran in an interview to the (long-Presse), "The law does not allow the government to draw from the bank's reserves of hard currency to cover the deficit in its budget for the payments."
Shomran added that "the government is not in need to commit such offense", stressing that "this is unacceptable and is a violation by the government." Shomran and called on the government to "go for the issuance of bonds to be purchased by banks then deducted when the central bank last fact does not have the liquidity."
The Reuters news agency revealed on Wednesday (January 13, 2016), that "the International Monetary Fund agreed to the Iraqi government programs funded by the federal budget from its reserves of hard currency deficit as a precondition for granting a loan,"
noting that it "will lead to a reduction of those reserves of 59 the end of October last billion dollars in 2015, to 43 billion during the current year 2016 ".
The Finance Minister, Hoshyar Zebari, revealed in (the 25th of November 2015), for borrowing Iraq billion and $ 200 million from the International Monetary Fund, stressing that the Fund "has no" conditions in this regard.
The Iraqi Council of Representatives, approved by majority, in (the 16th of December 2015), the draft budget law for fiscal year 2016 the current value in excess of 105 trillion dinars, and the inability of more than 24 trillion dinars. http://wealthwatch.world/showthread.php?tid=3734&pid=9140#
Tootsie: Central Bank of Iraq's refusal, on Wednesday, the government went to draw from the financial reserves, and stressed that the law does not allow the government to draw from the hard currency reserves, while calling on the government to issue bonds and sell them to banks.
peepingtom: what does all of this means
Doug_W: it means we are waiting
OOTW: HERE IS A POST FROM BUTIFLDRM IN RESPONSE TO THE LETTER OF INTENTION/MEMORANDUM OF UNDERSTANDING RELEASED FROM THE IMF RE IRAQ, YESTERDAY
OOTW: Good Morning Wealth Watch friends, one thing I would like to add to the discussion in this Multi Currency Practices thread is a bit of intel that comes from this New LOI.
It appears Iraq has until the end of February to enact the Investment Law. I had no idea that the second amendment to the investment law will have an affect on Multi-currency practices for Iraq. We know that Parliament passed the Second Amendment to the Investment Law 2006 October 27th, so we should just be waiting for Masum to sign and the law to be posted in the Gazette. www.parliament.iq/details
. We should see the market rate decline when this law is enacted and hopefully the CBI can get their part of the exchange rate restrictions under control in the near future. C. Foreign Exchange Policy 18.
The government will maintain the peg with the U.S. dollar. The peg provides a key nominal anchor in a highly uncertain environment with policy capacity weakened by the conflict with ISIS. 19.
The government will gradually remove remaining exchange restrictions and multiple currency practice (MCP) with a view to eliminating exchange rate distortions. Such a move towards acceptance of the obligations under Article VIII of the IMF’s Articles of Agreement will send a positive signal to the investment community that Iraq is committed to maintain an 1 See Country Report No. 15/235. Iraq: 2015 Article IV Consultation and Request for Purchase under the Rapid Financing Instrument.
IRAQ 6 INTERNATIONAL MONETARY FUND exchange system that is free of restrictions and MCPs for current international transactions and thus facilitate creation of a favorable business climate. As a first step, the government will, by end-February 2016, amend the Investment Law, or issue clarifying implementing regulations, to remove the limitation on transfer of investment proceeds that gives rise to an exchange restriction, as recommended by a recent technical assistance mission of the IMF. pg 5-6
OOTW: SO WE AWAIT THE PUBLICATION OF THE INVESTMENT LAW AMENDMENT AT THE MINISTRY OF JUSTICE SITE
OOTW: HERE IS ANOTHER INTERESTING SECTION TO SUPPORT BUTI'S POST
OOTW: THIS IS ALSO FROM THE LOI
OOTW: B. Definitions 3. An exchange rate set at ID 1,180 per U.S. dollar will be used for monitoring purposes. This exchange rate will be used to convert into Iraqi dinars the U.S. dollar value of all CBI foreign assets and liabilities denominated in U.S. dollars, as required.
For CBI assets and liabilities denominated in SDRs and in foreign currencies other than the U.S. dollar, they will be converted in U.S. dollars at their respective SDR-exchange rates prevailing as of November 10, 2015, as published on the IMF’s website. The same rules will be used to convert external debt related parameters.
OOTW: PERHAPS WHEN THEY AGAIN ADOPT ARTICLE VIII THEY WILL DEPEG FROM THE DOLLAR...WE'VE BEEN AWAITING THIS, AS THIS POSSIBILITY HAS BEEN DISCUSSED MANY TIMES BY IRAQI ECONOMISTS
OOTW: YOU MAY READ MORE ON THIS AT THIS LINK wealthwatch.world/showthr...
OOTW: THE NEXT ISSUE OF THE GAZETTE SHOULD BE PUBLISHED AT THE MOJ SITE IN BETWEEN 3-4 WEEKS, HOPEFULLY THE INVESTMENT LAW WILL BE WITHIN THIS POSTING
loveit2: ‹@OOTW› ? please
Donnie: Elite U.S. targeting force has arrived in Iraq to fight the Islamic State
Donnie: FORT CAMPBELL, Ky. – An elite U.S. Special Operations targeting force has arrived in Iraq and will carry out operations against the Islamic State, part of a broader effort in 2016 to strike at the militants and that also includes U.S. Special Operations troops in Syria, Defense Secretary Ashton B. Carter said Wednesday.
Donnie: Dow Down 1.90% Nasdaq Down 2.81%
Donnie: as of 3:25
OOTW: hi sorry i'm watching my grandkids all bets are off when i'm watching them lol
OOTW: what was loveits question?
Donnie: Isis reportedly burns Daesh fighters alive in Mosul for losing battle for Ramadi
Donnie: that's not going to help ISIS recruitment
Donnie: errr.... Daesh
OOTW: does anyone have a link to any information confirming this rumor going around that the rv is off for two years?
OOTW: I think they're claiming that it was stated in the imf report? lol
OOTW: i don't see it in there
OOTW: the only aspect re 2017 which seems confirmed in the report is that Kuwait has postponed payment of debt to 2017
Doug_W: ‹@OOTW› she didn't say
BOBBY: OOTW.... hello.... who is claiming the 2 year intel?
Tootsie: 03:29:58 PM] OOTW: does anyone have a link to any information confirming this rumor going around that the rv is off for two years? SAY WHAT? whoa there, are they stating they saw such in the recent IMF report ~ IMF Managing Director Approves a Staff-Monitored Program for Iraq ~~~~` or ?? sheesh, I say pay no mind to such drivel until PROVEN ~~
Tootsie: I read it and see nada that remotely states such.
Tootsie: I did not see anything in the detailed IMF report either,
OOTW: AGREED TOOTSIE
OOTW: SORRY BOBBY LET ME SEE
THIS IS FROM INFORMATION SENT TO ME VIA EMAIL BUT MY SOURCE REFUSES TO DIGNIFY THE RUMOUR WITH THE PERSON'S NAME
OOTW: IT'S OF NO MATTER
OOTW: THERE'S NOTHING IN THESE DOCUMENTS SUPPORTING THIS ...SO, IT IS, IN FACT, RUMOUR
BOBBY: OOTW...... thanks for the update