Update: Currency Reform
I am presenting an article to you today, another one of those GOLDEN NUGGETS and I have to say this article if packed with just want we need to hear from the economic commission of parliament.
So what does this article tell us?
I quote from the article – “the issuance of the big currencies, whether of class 50 100 000 dinars, or is PART OF A LARGE PROJECT TO RESTRUCTURE THE IRAQI CURRENCY”.
Now not only is the CBI saying it but now we see that parliament also on board with the currency restructuring project (project to delete the zeros). We already have confirmation that the CBI and the Ministry of Finance is onboard. So not all sectors of the government have spoken out.
So now we have it. We confirmed once again that any holdup in the past or now going forward in the “project to delete the zeros” is in FACT linked to these events/situations.
FACT #1 - the security situation in the country with DAASH as being able to distribute the new currency to the banks and worry that it might be taken by DAASH. Also DAASH is interrupting the process of collecting the 3 zero notes, destroying them and replacing them with the lower denominations (afraid to launch the lower denoms since them too might get in the hands of DAASH).
I quote from the article –“ that it" has been postponed because of the situation security is stable "in what it said that" the application of the project to delete the zeros needs to assign by the government and parliament to make it a success after the stabilization of the situation in the country”
I quote again from the article – “the subject of deletion of zeros is linked to the security situation closely because it will include all operating in the country banks to receive the old currency and replaced by the new and the old collection and destruction of pointing out the difficulty of the success of that process in the provinces experiencing control Daash parts of them.
FACT #2 - the raid on the CBI by Maliki in 2013 when he accused Dr Shabibi of corruption. I quote from the article - – “stressing that "the change the Central Bank of Iraq administration caused the postponement of this project,”
FACT #3 - we confirm once again the project to delete the zeros was given the “go ahead” or green light last March 2015. They also are telling us it may take 2 years to complete once started. What does this exactly mean? We don’t know for sure. It could mean they are planning to allow 2 years or until March 2017 for the collection of the 3 zero notes before they are no longer legal tender. They just have not told us this yet in this article but they will and soon. Be watchful for this information.
I quote from the article – “governor of the bank on the Keywords in the (3 March 2015) that the project to delete the zeros existing project has been put into practice and that gave light Green to start with, "he said." The project needs a period of time may extend to two years or more.”
I presented to you the FACTS in today’s article and what they are telling us. NO Hype, NO Rumors, just the FACTS.
I warn everyone to take this article on its merits and do not read into it. Remember it is Arabic to English and much gets lost in the translation. So what I mean is this. Are they talking all about the past only, as most articles from the gov’t of Iraq tend to first give us a brief summary of history then the facts going forward.
So are all these hold up a thing of the PAST or PRESENT situation? My opinion, from what we have see the CBI doing in the last couple weeks, is it is all PAST obstacles they are explaining so the citizens know why the project was held up and it is not now all moving forward.
So relax we all should expect this project “to delete the zeros” to move quickly now.
We have see the improvement with the physical security situation with DAASH ( I presented you with many articles on the progress in this area) we have see the clean up of the CBI and we were told all the lower denominations are now delivered to the banks. We were told the 50k notes are now launched. So this is no longer stalled.
PARLIAMENTARY ECONOMY: DELETE THE ZEROS NEED A SAFE ENVIRONMENT AND NEXT YEAR WILL SEE THE ISSUANCE OF A CLASS OF 100K CASH CURRENCY
A commission parliamentary economy, on Saturday, for the issuance of class 100 000 dinars cash currency early next year in order to market need to handle them, pointing out that legal action properly and in conformity with the laws of the central bank, while stressing specialists in economic affairs that the issuance of the big currencies, whether of class 50 100 000 dinars, or is part of a large project to restructure the Iraqi currency.
Said committee member economy parliamentary Najiba Najib said in an interview to the "long" that there is a tendency to issue small groups also categories of 50 and 100 dinars.
And for the project to delete the zeros confirmed Najib said "the Iraqi Central Bank completed the previously all preparations for the project, indicating that it" has been postponed because of the situation security is stable "in what it said that" the application of the project to delete the zeros needs to assign by the government and parliament to make it a success after the stabilization of the situation in the country because the ground current is suitable for the implementation of such a project.
"said Najib that" the subject of deletion of zeros is linked to the security situation closely because it will include all operating in the country banks to receive the old currency and replaced by the new and the old collection and destruction of pointing out the difficulty of the success of that process in the provinces experiencing control Daash parts of them.
"The central bank announced in the (November 11, 2015) for issuing new cash paper category 50 thousand dinars, attributing this to the completion of the Iraqi Securities monetary structure and the development of high-class value in circulation.
For his part, counting the economic expert on behalf of Anton in an interview with the "long" that the decision to delete the zeros of the Iraqi currency requires a political and security are conditions stable, stressing that "the change the Central Bank of Iraq administration caused the postponement of this project, "said Anton that" the issuance of large denominations will reduce trading in foreign currency and facilitate the transfer of large sums of money from one place to another process.
"He explained that" the current currency consumed much of it because of dealing directly without relying Visa card, as in most countries and that a large currency will facilitate banks and companies work and reduces the number of Trustees of the Fund in.
"He called Antoine" the central bank to explain the cause of the issuance of the large cash currency through educational seminars to prevent cases of concern in the Iraqi market and the fear of issuance Because of the weakness of the culture of this topic ", stressing that" the currency and medium of exchange nor a target and weaknesses and strength are linked to the country's economy.
"said the governor of the bank on the Keywords in the (3 March 2015) that the project to delete the zeros existing project has been put into practice and that gave light Green to start with, "he said." The project needs a period of time may extend to two years or more.
Next I present an article by one of the economic experts in Iraq. He is talking about the currency restructuring project. He is telling why they issued the 50k notes (so we know they are issued as a FACT).
He is also telling us that the former Saddam Hussien regime was printing fiat currency banknotes without any confirmed US dollars, gold or cash reserves to back them up. Also a lack of contact to other countries (meaning global trade and currency) was an issue. This new restructuring of the currency is not the same as the old regime and they items he listed he is telling us will change and not repeat themselves in this new currency.
I quote from the article – “Ulkipaia explained that the lack of possibility of currency issuance in the countries responsible unless offset by stocks of the dollar, gold or cash reserve pointing out that at the time of the former regime was printed banknotes without that there will be a stock of hard currency from the fact that the country was trapped and has no contact with other countries
He is also telling us the goal of the issuing the new 50k notes was to decrease the money supply in Iraq by collecting the 10k and 50k notes along with some other 3 zero notes. So this goal is confirmed once again if you didn’t believe me.
I quote from the article – “that the aim of the new edition (meaning the 50k notes) is to reduce the quantitative content (numerical)”.
He is also telling us it is crucial to get the old 10k and 25k notes off the streets and replace them now with 50k notes since the 50k has more security features and is less likely to get counterfeited. Butwe can see this is only true if someday VERY SOON they make the 10k and 25k illegal tender… right? Otherwise what good would be this strategy of these new 50k notes?
So any 10k and 25k that are counterfeited after a deadline will be bogus illegal tender anyhow. Get my point? These 50k notes will remain in circulation afterwards as part of the new currency (but for inter-banking transactions, high sales mostly). The 50k notes are a tool being used in the currency reform process.
I quote from the article – “The issuance of cash and paper of class 50 000 dinars using super quality of the quality of the printing paper with a number of signs of security, technical and compositions to prevent counterfeiting”.
So we must now sit back and let the current process of collecting the 10k and 25k notes take its time.
Then they will move on to the next step meaning to launch the lower denoms and increase the value (not an RV) to give incentive to turn in (to exchange the 50k, the rest of the 3 zero notes and US dollars) for the higher valued lower denoms. Right now they are attempting to “sucker” citizens into getting rid of the 3 zero notes without any change in the value. But eventually we know they will launch the next step as to pop out a higher rate as they must convert over to the “permanent currency” and they can not launch the lower denoms without a higher rate otherwise it would literally take suitcases of currency to go shopping.
ULKIPAIA: CAN NOT ISSUE CURRENCY WITHOUT A COVER OF GOLD OR THE DOLLAR
BAGHDAD Shokran Fatlawi
counting researcher d. Hamid Ulkipaia modern edition of the class »50« thousand dinars normal procedure intended to restructure the national currency, and to facilitate the shopping process currencies and traded in the local market, pointing out that this is not about politics cash.
He Ulkipaia that this measure will facilitate the calculations in a country like Iraq disappear in it credit card and Visa card prevailing in other countries, where forced people to carry cash and attendant risks.
He pointed out that this measure is part of a project to restructure the currency, pointing out that it is long overdue fact that the need has become urgent for the issuance of the biggest and high Akiem categories such as 100 and 200 thousand dinars, similar to neighboring countries and the world and put them circulation has been suspended as a result of rising incomes Mayshl banks and people work to end either.
In a question »Sabah» whether there are stocks of the dollar offset the new currency Ulkipaia explained that the lack of possibility of currency issuance in the countries responsible unless offset by stocks of the dollar, gold or cash reserve pointing out that at the time of the former regime was printed banknotes without that there will be a stock of hard currency from the fact that the country was trapped and has no contact with other countries.
The academic pointed d. Falah Thuwaini that the aim of the new edition is to reduce the quantitative content (numerical), saying not all modern edition is a new cash issue increases the amount of money supply, explaining that if it were printed will alone billion dinars from the category of 6000 dinars, or 10 000 dinars, or even 25 000 dinars possible that this billion itself is to be 50 000 class or 100 000 dinars, adding the possibility that there is a Ward acceptable to lead such a move to inflationary expectations in the case of a new version for multiple purposes to Aadamh up or cover concern appropriately.
The central bank, It said in a statement, Al-Sabah received a copy of it, that «for the purpose of completing the Iraqi banknotes structure and the development of high-class value in trading.
The issuance of cash and paper of class 50 000 dinars using super quality of the quality of the printing paper with a number of signs of security, technical and compositions to prevent counterfeiting .
also revealed to the parliamentary Committee of Economy, yesterday, for the issuance of class 100 000 dinars cash currency early next year in order to market need to handle them, pointing out that legal action properly and in conformity with the laws of the central bank.
UN READY TO HELP IRAQ RECOVER HIS MONEY SMUGGLED
BAGHDAD - Al-Sabah
said the Special Representative of the Secretary-General in Iraq and the President of the United Nations Assistance Mission to Iraq, Jan Kubis, during a meeting with the Parliamentary Integrity Committee, prepared the international organization to help Iraq recover his money smuggled abroad and the fight against money laundering and the arrest of wanted men who are abroad and extradited to eliminate Iraqi cooperation with Interpol.
(note there is more to the article but you get the point)
The UN is now fully engaged with Iraq and this is all very good news for us!
[Update: Much Needed Reforms]
Many of you readers asked if the Reconciliation effort still matters. I am telling you now it matters very much and just because I do not talk about it in every news letter does not make it still important. How long do you want my news letter? Do you want a book each time? It is too long already and I keep trying to find ways to shorten it but there is so much important news to bring.
As I said in previous news letters there are strong coalitions being formed and deals are being negotiated to complete the necessary laws. This will give the support needed in parliament to finalize a “basket” of laws.
I listed the list of the needed laws in many of my past news letters. They include: the National Guard law (although already activated and staffed it is still not officially passed as a law), the Amnesty (must be passed or no RV), the Federation Council law (must be official and passed to be fully implemented is a strong part of the reconciliation), the Accountability and Justice law. All of these laws are part of either the constitutional requirement for Decentralization (need a fully implemented constitution to get fully out of sanctions Chapter VII) or they are related to the Reconciliation efforts (need a full Reconciliation between the Kurds, Sunnis and Sheites). Did I miss any laws? Please see my past news letters for more details.
So what is the current update on these laws?
First let me say months ago they told us they want to hold the “National Reconciliation Conference” in mid December. Then now we hear they want to implement the new taxes in mid December and also revive the Customs and Tariffs in mid December (both of which I find it hard to be successful with a real currency). Then just this week they tell us they are going to vote on the 2016 budget in the parliament session beginning on Dec 8th. Did I mention that over the last 2 weeks we are hearing dozens of articles about the project “to delete the zeros” and the launching of this project in force once again in early December (but we already know for a FACT they did launch the 50k notes already). We are hearing nothing but very good news in the fight against ISIS. Could they now have the security level they needed for currency reform?
Seems lots of events converging on mid December. Do you THINK maybe, just maybe they are targeting mid December for a major breakthrough of some kind? Doesn’t it seem that way?
What does this all tell us folks?
To me it all says that they are converging on a common date of mid December as a target. It is my strong opinion they are moving towards beginning the new year (2016) with a fresh start with their economy.
Moving fast forward into 2016:
So we see in this article below the kind of reforms Abadi plans to implement next. It appears they are all focused around tax revenue and creating a tax structure to generate this revenue.
Do we need this new tax structure for the RV? NO- absolutely no impact. As Abadi has told us that reforms will be ongoing for years to come. I just wanted to inform you that it is the IMF pushing so hard for them to implement taxes as a found source of revenue in the diversification efforts. If you haven’t noticed they are plunging into all forms of unfound, unrealized revenue sources. Why?
This is all coming about at the STRONG advice and consultation of the IMF. So the reforms are not all completed but the reforms we needed to see for the RV, such reforms on corruption, banking, investment, etc (as agreed would be completed by mid Sept) are all now completed.
The other needed laws to fully implement the constitution and for full national reconciliation, as I described above, are to be implemented very soon. As I told you they must work in tandem (multi- task) on currency reform with these other laws as the currency reform is a multi-step process and so it will take some time. They are now collecting the 10k and 25k notes. So they began yet another step in this project now too and are moving forward.
ADVISER TO THE PRIME MINISTER: WE ARE PREPARING TO LAUNCH A GENUINE REFORM PACKAGE
Detection Office of the Prime Minister Haider al-Abadi, on Monday, the existence of other "real" package of reforms, calling on Iraqis to put their differences "small" aside and benefit from international support.
While the President of the Parliamentary Finance Committee said that tax evasion and fraud on earnings and the lack of responsibility towards the nation of the most important challenges facing the tax sector in Iraq.
This came during a workshop on the reform of the tax system in Iraq, held in the Council of Ministers, and attended (range Press).
He said Nofal Abu Barns, Associate Director of the Office of the Prime Minister, in a speech during the workshop, "The reforms begun and will not end and we are on the cusp of another real ones package", noting that "part of the reforms linked to the social structure and the political system or the financial or economic."
and saw Abu Barns "Such reforms can not be carried out by one government or party or person, but continue for successive governments, "and urged" the necessity of a real participation of the components of society, whether political, religious or social, as well as activists and businessmen legislative and executive bodies to put the details of the reforms. " The official close to the Prime Minister that "there Amehdoda support for the success of the reforms of the East and West," calling on "all Iraqis to develop a small aside their differences and take advantage of international support".
For his part said Faleh sarees, Chairman of the Finance Committee parliamentary in his speech during the workshop, said that " tax evasion and fraud on earnings and the lack of responsibility towards the nation, of the most important challenges facing the tax sector in Iraq, "noting that" the Finance Committee is working on a reform of the tax system through the amendment of some laws. " Sarees and said that "in the current 2015 fiscal witnessed find new vessels," and expressed hope that "specialists contribute new proposals to find other tax vessels."
He called on the President of the Parliamentary Finance Committee, to the need to "improve tax collection and raise awareness of the importance of that so that every citizen expensive" In turn Kazim Ali, head of the Tax Authority, said during the workshop, "The Tax Authority laws still are old and need to change because some of them do not meet the requirements the current economic situation ", calling for" the tax administration reform. "He explained that" tax revenue accounting for 1.5 percent of gross domestic product, "pointing out that there is" a lot of tax breaks such as those involving the agricultural sector "is noteworthy that since the first piece of legislation Law taxed in Iraq in 1927, and until the completion of Law No. (113) in 1982, there has been no development or change in the tax legislation, as a result of preoccupation with the former regime of war more than economic orientation, and after the change in 2003, the CPA issued Order No. (49) that the tax cut that was between 40 to 60 percent in the case of companies, to between 3-15 percent, but it seems that it "did not achieve justice," social tax system, as it did not add only one percent of the value of GDP
PARLIAMENT DETERMINES ITS NEXT MEETING DATE FOR A CRUCIAL VOTE ON THE DRAFT BUDGET
November 23, 2015
Our economy / Baghdad
The parliamentary finance committee confirmed that the next parliament session scheduled for next month will be critical to the adoption of the budget next year.
Rapporteur of the Committee, said Ahmed al-Haj said in a statement seen by the news agency of our economy today, "The Finance Committee received all the reviews of Representatives, and the competent committees, and is competent on the General Budget Law, and will discuss it."
He said the "next parliamentary session scheduled to be held on the eighth of next month will be critical to the adoption of the general budget for next year."
He pointed out that the general budget encountered some obstacles such as a change of the paragraphs of the law by the government, and private income and expenditure.
He pointed to the formation of three committees to follow up the 13 ministries, and the board of independent scrutiny with ministries on expenses.
The House of Representatives ended its session by the usual Sunday was held to discuss the draft federal budget for fiscal year 2016 Act.
[Update: Fighting ISIS]
AL-ZUBAIDI: IRAQ WILL WITNESS THE LAST BREATH OF DAASH DURING THE NEXT SIX MONTHS
Alsumaria News / Baghdad
The leader of the Supreme Islamic Council and Transport Minister Baqir al-Zubaidi, Tuesday, that Iraq will witness the last breath to regulate "Daash" over the next six months.
Zabdi said in a statement Alsumaria News received a copy of it, that "the Middle East region, particularly Syria, Iraq and envelope on a Hot Tin".
He added that "Daash in continuous collapse of the international coalition succeeded fragmentation of this terrorist organization economically and militarily after the entry of the French and the Russians strongly is clear and progress achieved by Iraqi security forces and the popular crowd," adding that "Iraq will witness the last breath of Daash in Anbar and Mosul during the next six months." .
It raises attempts to "Daash" to impose its control over Syria and Iraq concern to the international community, as expressed several countries, including Arab and foreign "concerned" about the attempts to organize this, before THE INTERNATIONAL COALITION LED BY WASHINGTON with air strikes to sites organized in different parts of the two countries
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.
“May there be a hedge of protection surrounding them and let the Victory be theirs against these evil doers who have no regard for humanity! We will pray until we see Victory! Amen “
All these prayers seem to be working.
Till next time…. Auf Wiedersehen!
Peace and Luv To Ya All,