Post From Wealthwatch.world Chat Room 7-17-15 Part 2 of 3
Evening Discussion With Sczin11 – Butifldrm & OOTW
Butifldrm: If Iraq had an internationally traded currency, they could make a ton of money off their own banks by doing their own international transactions
OOTW: LET'S HOPE THEY GET THIS XBRL SYSTEM UP AND RUNNING SOON
OOTW: SO THEY CAN PRACTICE TRANSPARENCY IN THEIR BANKING PRACTICES
OOTW: AS WE DISCUSSED TODAY, THIS IS ONE OF THE PRIMARY REASONS THEY WERE MOVED FROM ART 8 TO ARTICLE 14 IN 2005
Butifldrm: yes that is vital, because as we can see, transparency is everything toward an internationally traded currency
Butifldrm: and Melli bank has not been the most transparent
OOTW: LOL, NO
Butifldrm: the ruling party is Shia and we know their predisposition to Iran
Butifldrm: the ruling party in Iraq that is
OOTW: MAYBE I MISSED THIS, BUT WHY DO YOU THINK SALEH STATED FAIRLY RECENTLY THAT IRAQ IS IN COMPLIANCE, OR SOMETHING TO THAT EFFECT?
Butifldrm: I would dare say, the Shia in Iraq have allowed their own country to fall over Iranian sanctions
OOTW: GOOD POINT AS WELL
Butifldrm: ‹@OOTW› that was quite something wasn't it?
Butifldrm: these articles!
OOTW: YES, DO YOU THINK IT POTENTIALLY HAS ANYTHING TO DO WITH THIS QUOTE FROM THE IMF DOCUMENT?...BRB
OOTW: The IMF staff classifies the de facto exchange rate arrangements according to the categories below. The name and the definition of the categories describing the de facto exchange rate arrangements have been modified in accordance with the revised classification methodology, as of February 1, 2009.
Wherever the description of the de jure arrangement can be empirically confirmed by the staff over at least the previous six months, the exchange rate arrangement is classified in the same way on a de facto basis.
Because the de facto methodology for classification of exchange rate regimes is based on a backward-looking approach that relies on past exchange rate movement and historical data, some countries have been reclassified retroactively to the date the behavior of the exchange rate changed and matched the criteria for reclassification to the appropriate category.
For these countries, if the retroactive date of reclassification precedes the period covered in this report, the effective date of change to be entered in the country chapter and the changes section is deemed to be the first day of the year in which the decision of reclassification took place.
Butifldrm: It appears Selah is now the spokesperson for the government and not the CBI
OOTW: wealthwatch.world/showthr... http://wealthwatch.world/showthread.php?tid=1020
OOTW: WELL I SURE HOPE THAT'S TRUE
OOTW: ALTHOUGH HE DOES SEEM TO WAFFLE ON HIS STATEMENTS FROM TIME TO TIME
Butifldrm: aorry had to reboot
OOTW: NO WORRIES
Butifldrm: Iraq under article XIV have a defacto peg to the dollar
Butifldrm: when Iraq chooses to accept IMF article VIII they will have to make some decisions to liberalize their exchange rate
Butifldrm: I don't need to go into that, but whether they float or go innto a controlled float they must accept and abide by the article VIII obligations
Butifldrm: If they do not the IMF could place sanction on Iraq under article XXVI
OOTW: YES , IT SEEMS IT'S A COMBINATION OF THEM CHOOSING TO ENTER ARTICLE 8, MONITORING THEIR OWN ACTIONS AS WELL AS ADHERING TO THE IMF GUIDELINES
Butifldrm: www.imf.org/external/pubs... https://www.imf.org/external/pubs/ft/aa/
Butifldrm: yes, but You and I both know, Iraq having more than a @% spread between the CBI rate and the Market rate was a huge deal in every Article IV consultation after Shabibi left until 2014
OOTW: THEY MAINTAINED THAT COMPLIANCE FOR SEVERAL MONTHS UNTIL FEB OF THIS YEAR, CORRECTG?
Butifldrm: That Consultation was dumbfounded me
OOTW: HOW SO?
Butifldrm: I believe because what country could maintain compliance under their circumstances with ISIS.
OOTW: VERY TRUE AS WELL AS THE GOVT MP'S LEVELS OF CORRUPTION - WHICH WE'VE ALSO SEEN PLAYED OUT IN THE IRAQI BANKING SYSTEM
OOTW: I'M GLAD THEY'RE STEPPING THEIR GAME UP RE ADDRESSING CORRUPTION AND WE SHOULD SOON SEE OFFICIAL CHARGES IN THE COURTS, JMHO
OOTW: IF THEY DON'T BRING FORMAL CHARGES THEN I WILL BE CURIOUS TO SEE HOW THEY DEAL WITH THIS, BEING THEY'VE MADE SWEEPING STATEMENTS IN THE PRESS ABOUT CORRUPTION AND THAT THEY'LL BE ADDRESSING THIS ON A WIDESPREAD BASIS
Butifldrm: Well truly their has to be Legislation to address the majority of problems.
Butifldrm: I believe their also has to be accountability
Butifldrm: or there will never be Justice
Butifldrm: Iraq has been void of all
OOTW: YES AND ALSO A VOTE ON LIFTING IMMUNITY IF ANY OF THESE MP'S STILL FALL UNDER GOVT AUSPICES
OOTW: VERY TRUE
Butifldrm: Someone has to be held accountable for the Rule Of law ( I'm not talking Maliki's Party that's a joke) to prevail
Butifldrm: let's get back to monetary reform
Butifldrm: We know the Banking law in Iraq has to be ammended
Butifldrm: the present law does not allow banks to invest for a profit
Butifldrm: under the present law the private banks of Iraq can only sell foreign currency for a profit
Butifldrm: yet the CBI mandated they bring their reserve up to 250M
OOTW: THERE IS LEGISLATION WHICH HAS COME BEFORE THE PARLIAMENT ADDRESSING THIS FOR PRIVATE BANKING AND GOVERNMENT BANKING/FUNDING NEEDS
OOTW: EXAMPLE, THE ISLAMIC BANKING ACT ONLY REQUIRES ONE MORE READING
Butifldrm: When that did not happen, the CBI suggested partnering
OOTW: THE PARLIAMENT HAS READ THE ISLAMIC BANKING LAWS FOR GOVERNMENT LOANS
Butifldrm: yet, the government has passed no legislation protecting deposits, which is another way the private banks can build reserves
OOTW: BECAUSE WE SEE CONSISTENTLY CHANGING INFORMATION ON THE AMOUNT OF THEIR RESERVES, I DO HAVE TO WONDER IF WHAT WE'RE BEING TOLD IS CORRECT
Butifldrm: Are you talking CBI reserves or private banking reserves?
OOTW: YES AND IF THEY HAVE NOT DONE SO, THEN WHY ARE THEY NOW STATING THAT THEY'RE GOING TO INTRODUCE LEGISLATION FOR FACTA IN THE NEAR FUTURE, ZEBARI SAID THIS NEEDED TO BE PASSED PRIOR TO SEPT 15 2015
OOTW: I HAVE NO IDEA WHAT THE PRIVATE BANKING RESERVES ARE
OOTW: THE TOTAL
Butifldrm: Not that I'm a fan of FACTA lol , but if Iraq is going to play the IMF game it must be done
Butifldrm: ‹@OOTW› the private banks reserves had to be increased to 250M
OOTW: DO THEY KNOW WHAT THEY ARE NOW?
OOTW: NOT TO PUT YOU ON THE SPOT OR ANYTHING..SORRY
Butifldrm: I'm pretty sure to do business in Iraq a designated bank must have that much in reserve
sczin11: ‹@OOTW› IF I MAY, THEY MUST BE AT THE $250 MILLION LEVEL
Butifldrm: there has been alot of discussion about this and a lot of it had to do with Bael III standards
OOTW: AH RIGHT OK ...BASEL III YAY LOL
Butifldrm: So, think about how hard it would be to raise such capital reserves by selling the dollar
sczin11: SEVERAL OF THE BANKS, EARLIER IN THE YEAR WENT ON ISX TO HELP RAISE THE CAPITAL THEY WERE SHORT
Butifldrm: ‹@sczin11› right
Butifldrm: also some have tried to partner with international banks
Butifldrm: still it's such a hendrince
Butifldrm: when they can only sell currency
OOTW: WASN'T THERE AN ARTICLE RECENTLY STATING HOW MUCH MONEY THEY RAISED LAST YEAR SELLING CURRENCY?
OOTW: WAS THAT A DROP IN THE BUCKET COMPARED TO WHAT THEY NEED?
Butifldrm: Hum the CBI?
Butifldrm: The CBI has made all their reserves from selling currency
sczin11: ‹@OOTW› BUTI IS TALKING ABOUT THE IND PVT BANKS I THINK
Butifldrm: Yet we have seen the reserves fall since Turki left
Butifldrm: Yes Scizn
Butifldrm: Islamic banking law does not allow for interest
Butifldrm: We have seen State banks be able to provide soft loans
sczin11: ‹@OOTW› THE PRVT BANKS NEED TO BE ABLE TO PERFORM ALL BANKING FUNCTIONS TO GENERATE MORE REVENUE FROM INTEREST , FEES, COMMISSIONS ETC...
Butifldrm: When the IMF talks about liberalization of the economy that includes the banks
OOTW: good reminder thank you
Butifldrm: Not just the currency
OOTW: i appreciate that
OOTW: WELL THIS WAS A GREAT TALK, WE
OOTW: HAVE TO DO THIS MORE OFTEN ...NUDGE NUDGE
Butifldrm: Oh I'd like to bring up the subject of neighboring countries and trade
Donnie: There’ve Been Some Big Moves in Currencies This Week. The kiwi, loonie, and more by Rachel EvansJulie Verhage - July 16, 2015 — 1:55 PM EDT - www.bloomberg.com/news/ar...
OOTW: PLEASE DO
sczin11: ‹@Butifldrm› ‹@OOTW› IT IS TRULY AN HONOR AND PRIVALEDGE TO LISTEN/READ THE CONV BETWEEN THE TWO OF YOU...THANK YOU BOTH
OOTW: THANKS DONNIE
Butifldrm: Thanks Donnie
OOTW: THANKS SCZIN11 :grin:
Donnie: did want to interrupt ur conversation so i only posted the title and link
OOTW: DONNIE :kissing:
Butifldrm: I also think that an Iran released from sanctions will put a fire under Iraq
OOTW: YES, SEEMS VERY PLAUSIBLE
Butifldrm: Iran will now be a competitor
sczin11: ‹@Butifldrm› IS THERE A LINK FOR THAT THOUGHT, :)
Butifldrm: Only not from Iraq or the Shia
OOTW: THIS ONE?
Butifldrm: Just the worlds view of oil pricing
sczin11: ‹@OOTW› AFTER U ADD THIS CHAT, YES
Comments May be made at the end of Part 3 Thank You