Schiz Dunno if this has been posted but couldn't allow you all to miss this beauty....
Central Bank take the necessary measures to boost liquidity in the banking system
01/25/2015 22:23 BAGHDAD / Nina / decided CBI, take the necessary measures to boost liquidity measures in the banking system and the simplification of foreign currency sale in order to facilitate the stability of the market and exchange rate measures.
The central bank said in a press statement today that "the Council of the Iraqi Central Bank management, discussed the extraordinary Directors held, Today, the financial situation in Iraq and the wider deficit in the general budget. "
The Council decided, according to the statement "take the necessary measures to boost liquidity measures in the banking system to allow it to perform its functions normal, and at the same time, the acquisition of government debt instruments so as to enhance sustainable development and job creation and prosperity ".
It also decided to simplify the procedures for the sale of foreign currency (bank and cash) in order to facilitate the stability of the market and the exchange rate. / finished 7
Schiz: It's game on now folks, it's arts like this from the cbi and especially on the iraqi side of nina where they rarely post about this kind of thing that get me muy muy emocionado!!!
KJWayne: Thanks! CBI watching as we speak.
Schiz I really think once isis are controlled and booted from Mosul this thing could end rapidly for us. Heck by the sounds of it they are making moves now.
Mike Yep, it was posted. It's still a pretty awesome article though! :) I read it and there's one thing I can't figure out. Here's what's confusing me:
"the acquisition of government debt instruments so as to enhance sustainable development and job creation and prosperity ".
The bonds I understand, it's a debt instrument the bank can use to help boost liquidity but what can that do for sustainable development, employment and prosperity for the people? Bonds can't do that.
And then my mind wanders to what the main function of the CBI is; monetary policy. I badger the guru's who read too much into articles so I'm hesitant to speculate further on what they meant, but I will ask what everyone else thinks it means, what say you?
Are they telling us they're forcasting a move to Article VIII? If not, how can the CBI create development, employment and prosperity? " We are all born ignorant, but one must work hard to remain stupid " Benjamin Franklin
Schiz Sounds like bonds to me Mike
Mally Mike, Do they lend or give money from the sale of bonds to the gov to fund projects in the budget? I thought I had read it was one of the ways they would cancel out the deficit.
If creating more money with a bond then allows the gov to fund some constuction project that puts people to work and creates infastructure for business then that would make sense.
There was a picture of a town earlier today in an article about fighting isis and the whole town looked like a heap of bullet hole ridden cinder blocks.
Mike So, the bonds create jobs and development?
Schiz I just done a quick google for you Mike just to see what came up and this is from investopedia....
DEFINITION OF 'DEBT INSTRUMENT'
A paper or electronic obligation that enables the issuing party to raise funds by promising to repay a lender in accordance with terms of a contract. Types of debt instruments include notes, bonds, certificates, mortgages, leases or other agreements between a lender and a borrower.
INVESTOPEDIA EXPLAINS 'DEBT INSTRUMENT'
Debt instruments are a way for markets and participants to easily transfer the ownership of debt obligations from one party to another. Debt obligation transferability increases liquidity and gives creditors a means of trading debt obligations on the market.
Without debt instruments acting as a means to facilitate trading, debt is an obligation from one party to another. When a debt instrument is used as a medium to facilitate debt trading, debt obligations can be moved from one party to another quickly and efficiently.
rissas dad Beyond my minuscule financial skills mike, but sounds pretty damn good to me. Thank you Mr schiz.
Schiz I think this is a big thing and massively connected to currency reform, but thats jmo
Iraq just can't wait to get in debt again and I believe they need to be a world player to really get in debt good style.
Unfortunately that's what this world is all about....but heck, even though the system we live in sucks I kinda want to be rich just for a while to feel what it's like.
Even though I believe on the horizon, don't know when, money will become invalid. prob not in my lifetime.
But I believe during my life we will be in for some big shocks that change our whole way of thinking about things. Won't get into that one here, wrong forum lol
JaxJags The Kurds are now in control of Mosul.....Ooops.......it is Kobani that has been retaken by the Kurds. Sorry
Schiz lol can't you tell I havent been keeping up, that's what making music does to you!
So the whole of mosul has been retaken?????
sweed61 The CBI will buy GOI bonds. The proceeds will be used by the GOI to fund infrastructure projects.
Schiz Dude!!! you got me all excited!!!! LOL :lol:
Mike Thanks, Sweed61. Bonds do create sustained development, employment and prosperity. I did some research and this is part of monetary policy the CBI has the ability to use.
Aaanth Yes! and, odf course, the GOI wil pay the CBI INTEREST on those bonds so debt (bonds) equals money (interest) and that folks is what this is all about.
just like the Fed. they print money, "sell' it to our GOV. with interest and create PROFIT. every one knows our system is near 'critical mass' even as we speak but, the release of trillions of IQD/USD into the world market might forestall the inevitable long enough for us to get ours. let's hope so.
i know that sounds selfish and all but wouldn't you rather have something of worth (like gold you would buy) if the whole international currency scheme goes to hell in a hand bag?
G-Lin Sounds good to me. Thanks for opinions. This is how we learn. TY Schiz for the art.
Skylimit Basically by buying bonds or other debt instruments the CBI is adding liquidity to the banking system to be lent out on a fractional reserve basis, I believe 10 to 1. I don't think they'll do this at 1166. In spite of a million delays they do manage to keep things interesting.
Tlar The CBI just paved the way for the government to implement all their new programs by this move.
Between the 2 nillion loan from the IMF and the CBI backing the government by finanacing the debt, the government is now free to move. The CBI announced that they have 1.5 times in reserves for all the dinar out covering every dinar 1.5 times.
That is much more than they need to back their currency especially circulating currency. It's obvious ro me Keywords is on onboard and trying to help the government achieve a successful transition to a market economy or why do this?
You only have to ask yourself this question. Would the bank under Shabibi, or Turki loan money or back governnment instruments prior to this government? The answer has to be a firm no.
Both stated they would not loan money to the government. Now with the CBI's backing and support, the Abadi government should have no problem raising the funds necessary to proceed.
IMO keywords is showing he is on board with this move and ready to go to the wall for the Abadi government.
Another good sign IMO we are very close. One more thought.
Kuwait postponed their payments in 2015 and Egypt just relaxed their debt for oil shares.
Abadi is truly clearing the way for Iraq to come out of fog in 2015 and quickly participate in a successful 2016.
The pass he just made, visiting all the countries he just visited, IMO he was selling oil attempting to gain new markets and increase existing markets, and making sure that those countries were on board to shortly accept the dinar in trade.
It is of benifit to all their trading partners to now accept the dinar, and shortly they will. Abadi is a very smart guy. Hard to believe he came from the DAWA party, the hotbed of crooks.. tlar.
Oldwazhisname Great summary, Tlar. Thanks for your perspective.
Rockstar Wow this is a really good thread all thank you so much. Just more positive signs of them moving forward to me!
rDiddy This information, combined with Saleh's statement about economic reform in spite of the current situation in Iraq, seem to indicate that big changes could be just around the corner. I try not to look at articles with dinar goggles, but the positive indicators are hard to ignore! Thanks for posting!