Do you now know why the RV is being held up? Did I bring you enough FACTS to prove my points. Please go back and re-read to reference may last 20 news letters (LINK) and see if all this information today does not match almost word for word what I have been telling you as to why the RV is being held up.
Can Iraq overcome these concerns?
Certainly and we have seen them addressing already many of the concerns in the NEW LAWS such as the anti-laundering law, anti-terrorists law, newer, stiffer penalties for counterfeiting. Now see a major campaign of INFORMATION DISSEMINATION to the people about the project to delete the zero process.
Many of these concerns are hard to address since, when they decide to do the switch, there will be very long lines at the banks and there will be some speculation. These concerns will happen and are hard to prevent other than thru prior education and hoping for the best outcome later.
Oh- did I say prior education? Prior to what? Prior to the RV? Is this not what we witnessed in late October and early November 2015 and are still getting doses of it now? Could this all be signs they are getting ready to do something?
Oh- but today instead I could have talked about the rates on the bank screens or messages in the mosques or maybe the ticker messages running across Iraqi TV screens and tell you it was going to RV today and this is my proof. Really?
But I didn’t because - first of all I am not that stupid to believe this is intel, secondly these are NOT FACTS and RUMORS. Get it?
This does not even warrant my time to talk about them in my news letters. Over the past 4 years how many times must we listen to these things before it finally sinks into our heads that they mean ABSOLUTELY NOTHING if we are trying to pinpoint an RV timeframe. I hope you all get my point by now.
NO Hype, NO Rumors, just FACTS.
We need FACTS to base our information on that we bring to you. As providers of information we have an obligation, a responsibility to bring you the FACTS. YES- we can also add our own personal interject and opinion, as we put together past events and help you to connect the dots. After all is this now what we are supposed to be here to do…to help you? But this is all still done by using FACTS not some baloney conjecture and mis information.
RAED AL-HASHEMI: DELETE THE ZEROS WILL LEAD TO QUEUES IN BANKS TO REPLACE BANKNOTES
Date: January 9, 2016 Stressed economist Raed al-Hashemi, the deletion of zeros from the local currency needs to be political, security and economic stability, noting that the feminine currency will lead to the feminine economy and facilitate the process of the payments system and raises the value of the currency.
Hashemi said in a dialogue with the (Journal), that "the economic environment you need to create a thoughtful to apply the deletion process through procedures and financial and banking decisions made by the financial authority in the country ".
* raise zeros from the Iraqi currency has a benefit of the Iraqi economy?
- The process of deletion of zeros is a necessary and important step comes as part of the need for the process of administrative reform of the coin contribute -lo been correctly applied with a choice of Almnasp- time in reducing transaction costs and cash transactions in the economic process, and reduce the money supply in the country's size and to facilitate the calculations and reduce the inflating figures not to mention that the issuance of small groups will facilitate policy accounts price.
* What is the correct mechanisms that must be followed until the process of lifting the zeros?
-There are several mechanisms including the selection of the appropriate timing at which the Iraqi economy (one-sided) in a state of stability and economic environment and to create a thoughtful to apply the deletion process and this needs to be procedures for financial and banking and the decisions taken by the Authority Finance in the country, and the need to create a media and psychological community to accept such a decision by the intensive media campaigns before proceeding with implementation, and the implementation of the resolution on the stages of time and leeway enough fear of the events of confusion in the Iraqi market.
* What are the concerns of the adoption of the process of lifting the zeros?
- to a lot economists that the process of deleting three zeros will lead to chaos and confusion in the domestic market and the spread of the phenomenon of "monetary illusion" because there are "two currencies" old and new and Sastglha traders to raise the goods and prices of goods.
There is also the fear of occurrence of chaos in the Iraqi street and stand in a new queues at the gates banks to replace the current Iraqi banknotes with those of the new banknotes. Which will contribute to the emergence of speculators on the black market, taking advantage of the chaos that will arise from the process of the currency switch.
As well as there are fears of counterfeiters and (mafias) money laundering and smugglers currency who will take advantage of the new situation in the "wash" the old Iraqi dinars counterfeit and replaced by new or smuggling of genuine Iraqi dinars out of the country for the purposes of terrorism and organized crime, which will lead to lethality economic security of Iraq .
* Do you think that the lifting of the zeroes will affect the economy and social stability?
- Yes affect by reducing its currency and thus will lead to the feminine Iraqi economy and facilitate the Iraqi payments system process and raise the value of the currency at least partially slow, and will affect the process in the creation of a worker and myself technician can play a positive role in strengthening the Iraqi dinar, provided that combined with a package of measures to take coordinated and good policies between monetary and fiscal authorities and other episodes concerned the economy.
Next I present an article by yet another economist that is also, I feel is warranted to review with you today. It is also in the same basis for wanting to hold back on the RV. This article explains much better the “timing” aspects of the RV, as economist Raed al-Hashemi stressed in the prior article above. I believe all of this goes hand in hand with DIVERSIFICATION of their economy and how the are desperately trying to launch this effort and create momentum. They must get Iraqi citizens to buy Iraqi products. Today nearly 90% of all goods are imported. So how do they reverse this trend? If they are to become an exporter of products other than oil they will also need to address diversification and kick start their internal industries somehow.
I quote from the article below – “exchange rate affects imports and exports, it can raise or reduce the relative prices of imports (exports) to support international competitiveness or weaken it.”
I quote from the article below – “the currency of any country depends on the performance of its economy, value, and there are several factors in this performance impact in determining this value”
Next I quote again and as they tell us these factors –
“1) the interest rate where height will attract foreign capital to the inside,
2)and the other factor balance the country's trade. Increasing demand for a particular commodity will increase demand also on its currency.
3)In addition to the political situation factor for the country, too,
4)the inflation rate reflects the purchasing value of the currency
5)or the amount of goods and services that can be purchased.
6) exchange rate affects imports and exports, it can raise or reduce the relative prices of imports (exports) to support international competitiveness or weaken it.
So is there a plan to delete the zeros (thus change the exchange rate) ?
I quote from the article below – “In Iraq, the parliamentary Finance Committee announced it was looking for a project to reconsider the dinar exchange rate against the dollar with the government and central bank. He explained the Commission's decision MP Ahmad Haji: that there was a PROJECT TAUGHT BY THE CENTRAL BANK AND THE COUNCIL OF MINISTERS, AND THE FINANCE COMMITTEE, to reconsider the dollar's exchange rate against the dinar.”
EXPERT: CURRENCY EXCHANGE RATE AFFECTS THE IMPORT AND EXPORT VALUE
Baghdad Joseph Zayer
It is known that the currency of any country depends on the performance of its economy, value, and there are several factors in this performance impact in determining this value, including the interest rate where height will attract foreign capital to the inside, and the other factor balance the country's trade. Increasing demand for a particular commodity will increase demand also on its currency. In addition to the political situation factor for the country, too, the inflation rate reflects the purchasing value of the currency or the amount of goods and services that can be purchased.
It measures adopted by the economic policies of the countries is the currency market management and price exchange in front of the other currencies, and in this regard stresses economist Ahmed Abrihi Ali said exchange rate affects imports and exports, it can raise or reduce the relative prices of imports (exports) to support international competitiveness or weaken it.
He adds Abrihi: That's why the pressure on China to revalue its currency to become cheap imports and exports expensive exerting downward pressure on their international competitiveness and shrinking trade surplus. The best example to control the value of any currency is the measures taken by China's second-largest economy in the world to maintain a low rate of the Chinese yuan to serve their purposes in export and even dumping their products which, The United States accuses China of fabricating reduce the price of its currency to stimulate trade-offs commercial.
In Iraq, the parliamentary Finance Committee announced it was looking for a project to reconsider the dinar exchange rate against the dollar with the government and central bank. He explained the Commission's decision MP Ahmad Haji: that there was a project taught by the Central Bank and the Council of Ministers, and the Finance Committee, to reconsider the dollar's exchange rate against the dinar.
He pointed Haji in comments to local media that it is still a project under study and no decision, where the study Is Iraq could reconsider the exchange rate? Is it the government is in the interest of the citizen or hurt? Noting that a review of the exchange rate will be one of the government's interest, but harmful to the citizen, where would increase the exchange rate to runaway inflation, and an increase in commodity prices, and student Haji need to take it into consideration and study of the project from all aspects, before taking any decision, noting that the re Consideration will be an increase of the dollar exchange rate, a low rate of the dinar against the dollar, because the government can not raise the price of the dinar against the dollar, at a time that the revenues and expenditures in dinars to the dollar, pointing out that the increase in price of the dollar is what is the benefit to the government. Iraq is facing a financial crisis due to the sharp decline of oil, in terms of financial budget for this year with a total expenditure of more than 501 trillion deficit rate of 8.22 percent.
The Finance Minister Hoshyar Zebari said earlier last week in a newspaper interview that: There are several alternatives to oil, such as borrowing from international institutions, low-interest, and we did it. For example we have received help from the International Monetary Fund, and a few days ago we received billion and 002 million dollars from the World Bank, we have introduced a monitoring program on how we manage the financial and economic policy, and if we could get help more of them, as we intend to sell sovereign bonds, because the situation in Iraq this year better than last year in this regard.
He said Zebari said the other option is how to raise the Iraqi dinar exchange rate, although it has the option of risk has repercussions.
In the next article it tells us some of the MPs still think the solution to the economic crisis is simply to print more money. Parliamentary Finance Committee member Ahmed Sarhan thinks differently and explains his concerns over this process of printing more money.
By the way if they did decide to print and circulate more of the 3 zero notes we may as well put our stashed of our 3 zero notes in a shoe box and hide them for a very long time cause this is how long we would be waiting for any substantial RV. But this is not going to be the case and so this article today is very good news for us. Let’s hope the keep thinking in these terms.
MEMBER FINANCE PROSECUTORS RULE OUT RESORTING TO CURRENCY PRINTED INTERNALLY AND PREPARED BY THE "COLLAPSE OF THE ECONOMY”.
Information / special /
Ruled out the parliamentary Finance Committee member Ahmed Sarhan, Sunday, resorting to monetary currency printed inside Iraq, returned it if happened, "a collapse of the Iraqi economy."
Ahmed said in a statement to Agence / information / "The reports that indicated a desire to print internally currency is just rumors," adding, "I do not expect to resort to this process."
Ahmed said, "We have foreign currency reserves," explaining that "resorting to this thing is a complete collapse of the Iraqi economy."
He pointed to "the existence of loans and other methods of alternative agricultural and industrial such as investing, that would generate money for the country," stressing that "Print Banknotes on the way the blockade does not serve the Iraqi economy, never."
Update: Needed Laws
Parliament has been on recess since Dec 16th. This week they told us that parliament will discuss and vote on many important laws in the coming session after the legislation recess ends on Jan 19th, including the General Amnesty law, the law on the Prohibition of the Baath Party and the Federal Court Act.
I decided to present this section on economic reforms to you today since this all ties nicely with the effort to diversify and launch the economic sector. It is all about launching this sector and they admit they need a major “economic revolution" to get over this crisis. So let’s watch and see what they do in this regard.
PARLIAMENTARY CALLS "A MAJOR ECONOMIC REVOLUTION" IN IRAQ
BAGHDAD / Obelisk:
He called the Parliamentary Finance Committee member Hossam punitive, Saturday, to start a major economic B'thorh 'to face the current financial crisis experienced by the country, while stressing the need to launch a' major campaign 'to support the national industry.
He said punitive in a statement published by the local media and I followed 'Obelisk', that 'the current financial crisis we are experiencing requires a concerted and cooperation of all the faithful in order to overcome them and move forward in the country to the ranks of developed countries, there are several proposals that would add considerable financial resources into the treasury of the State of Iraq' , pointing out that 'among those proposals is to launch a major campaign to support the national industry and stop the import of products that have local alternatives'.
Punitive and urged the importance of 'Activating tariff in all border crossing points, including the Kurdistan region, and stimulate the private sector by starting to contract with major international companies to implement a number of residential, service and health projects and even security in a way payment on credit, which will provide many job opportunities and reduce the pressure on the rate Government to create jobs and reduce entymunemplo ent. "
Punitive and called for the 'need for the Government with the help of experts of finance and economy and to begin a major economic revolution to save the country from a bad financial situation and meet the aspiration and hopes of the citizens', demanding B'alasraa to resolve this serious file and not to cause obtaining a severe .crisis that could lead us into the abyss'.
The punitive 'the importance of reviewing auction currency at the central bank and find other means to keep tTe Iraqi dinar exchange rate, and the launch of an internal bonds for citizens and an interest rate of not less than 7% instead of the foreign loans of up Voidha to more than 10%'.The House of Representatives voted in (December 16, 2015) by a vote of those present on the draft budget law for fiscal 2016 valued at more than 105 trillion dinars, and a deficit of more than 24 trillion dinars, considered on the basis of the price of a barrel of oil to 45 dollars.
PARLIAMENTARY CALLS FOR ACTIVATING THE AGRICULTURAL LAWS
BAGHDAD - Shaima Rashid
Confirmed to the Committee on Agriculture in Parliament that the agricultural sector is suffering a lot of difficulties and obstacles that prevent the advancement of its most prominent imported from all the neighboring countries products, which weighed on the Iraqi economy, as well as lack of support for farmers, as well as the non-application of agricultural laws.
The Chairman of the Committee Parliamentary Agriculture Furat al-Tamimi told the "morning": that the agricultural sector is suffering a lot of problems and obstacles that prevent developed to be a tributary of the federal budget, notably the dumping policy of the Iraqi market at the moment.
"The most agricultural products imported from neighboring countries and thus This matter caused a lack of local product's ability to compete with imported especially as the high domestic production costs the fact that the farmer Iraqi is not supported by the government is competing with what is imported from abroad, "stressing that the agricultural sector can play a major role in supplying the general budget after it is the provision of support you need local agriculture.
I must first address the agricultural sector's problems and support the farmer financially and morally and apply tariffs and elimination of smuggling, gangs of corruption that are looking for a profit of neighboring countries in order to promote this sector law ", adding that" the agricultural sector got a great support from the government represented by amounts estimated agricultural initiative B2 billion since its inception to 2013 and support the loan 2 trillion submitted by the banking Bank for the agricultural sector but what is unfortunate is the lack of implementation of the projects where some of them had imagined and others used the money obtained within agricultural initiative without the agricultural sector.
"He called on Chairman of the Committee to" the agricultural sector support, especially that its own legislation, but the same problem in their application, including the Customs Tariff Act, calling for import covers the need of the market and supports the local product.
"For his part, said the Agriculture Committee member Abdul Hadi return to the agricultural sector suffers from many difficulties, notably the import and the lack of support for farmers.
He said the return of the "morning": "It is unfortunate that many of the governments that came to power since the fall of the former regime, and to this day not interested in the agricultural sector which could be an important source of maximizing the resources of the state.
"He added that" the suffering of the agricultural sector was a big throughout the past period, and when we got to the stage of the collapse of oil prices appeals launched by all sides to the development of this sector.
"He continued," We need a real and realistic look at this sector of the in order to raise the value of its imports and add them to imports of the budget by employing the capabilities and potential of the state to serve the farmers and their support financially and morally.
"He pointed to" the lack of a real tendency to service this sector over the past years, expressing the hope that there is in this sector interest and reliance on Iraqi minds in the success of the process of the advancement of this sector ", criticizing the" non-application of the laws that initiated the agricultural sector.
HAMOUDI: IT IS NECESSARY TO REHABILITATE THE STALLED FACTORIES AND CONTRIBUTE TO MOVING THE MARKET AND STIMULATING THE ECONOMY
BAGHDAD - Scales News
Deputy speaker of parliament Humam Hamoudi, Sunday, on the need to rehabilitate the stalled factories and contribute to moving the market and stimulate the economy.
Said Hamoudi in a statement issued today, on the sidelines of his visit to the Company for Textile Industries and skin in Baghdad and received / scales News /, copy it, that "Parliament will be held accountable government institutions that do not support the national product through the passage of a law to that," he said, adding that "the bodies regulatory, especially integrity and parliamentary committees of the economy, integrity and financial, tighten procedures on that and follow up on all of the causes of wasting public money has not kept it. "
He stressed Hamoudi "the importance of requiring all ministries, institutions and government agencies and departments the adoption of the national product and adhere to the guidance of reference governance and public pressure in this regard," stressing "the need to the attention of the Ministry of Industry marketing and the trend towards media and activation of the system of incentives as well as encouraging agents by giving a share of production." .
He called Hamoudi to "rehabilitate local factories have been stalled for time and seek because fully functional again and to contribute to moving the Iraqi market and the operation of labor and stimulate the economy back, noting that the local media as the official or citizen have the duty and responsibility towards their country which is going through a difficult financial conditions put in front of Find the non-oil supplier economic and investment alternatives, including the trend towards a strong local industry ".
Update: Fighting ISIS
One more item today:
Let’s not forget to keep praying for the success of THESE IRAQI AND COALITION SOLDIERS. I believe their success is in part some of the acceleration of the process we are now witnessing.
“Lord, protect Abadi and all who stand with him in righteousness, the Iraq and Coalition Soldiers who are fighting the good fight against terrorism, that they would be shielded from the enemy and would be Victorious against them! We ask that the Victory comes swiftly and healing of the Iraqi peoples and all whom have been effected by these evil doers can begin!
We pray for the process of the currency reform, the full implementation of the Iraqi economy to full international status and the bringing of prosperity and wealth to its people“ Amen!
Till next time…. Auf Wiedersehen!
Peace and Luv To Ya All,