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About blueskyline

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  1. Thank Yota . Fantastic if it really is True .
  2. Cuba prepares to end dual currency system Friday, February 16, 2018 HAVANA, Cuba -- A Cuban worker holds up 20 CUP (Cuban pesos - front) and 20 CUC (Cuban convertible pesos - back) in Havana on February 8. (Photo: AFP) HAVANA, Cuba (AFP) — For more than two decades, Cubans have used a unique dual currency system to protect a fragile economy, but with just weeks of his mandate remaining, President Raul Castro has signalled that much-delayed change is finally coming. Plans to scrap the divisive system were first mooted in 2003 as part of a series of market-oriented reforms introduced by Castro, who is due to step down in April. Now, after years of delays, authorities on the Caribbean island are finally expected to bite the bullet and begin consolidating the two currencies, despite fears of a shock to the economy. “This issue has taken us too long and it cannot be delayed any longer,” Castro said in a speech in December. The government has resisted any commitment to a timetable, but many observers believe that a meeting of the Central Committee of the Cuban Communist Party (PCC) next month will finally set the process in motion. The country has had two currencies since 1994 when it introduced the Cuban Convertible Peso, or CUC – alongside the Cuban Peso, the CUP – as part of measures to protect the economy in the wake of the collapse of its biggest sponsor, the Soviet Union. Sponsored Links Jimmy Cliff's daughter stars in Black Panther Three constables charged for breaches of the CPA The CUC, originally used exclusively for foreign trade and in the tourism industry before gradually seeping into the normal economy, is worth about 25 times the CUP and pegged to the dollar. The dual currencies created a two-tier class system in Cuba, which favoured those with access to the lucrative tourist sector through hotels, restaurants and foreign trade. TWO CURRENCIES, TWO LABELS Prices are labelled in both currencies: a small can of cola costs 1 CUC or 25 CUP. Whether you pay with one or the other “it's the same thing, a bottle of oil costs the same either way,” said 68-year-old retiree Marlen Leyva. With the CUC, the state allows its companies to import at a preferential exchange rate – a US dollar for a Cuban peso. The distortion allows state entities to ensure their margins while offering the public affordable prices in a country where the average monthly salary is around US$30. But the current system masks inefficiencies in the state sector, economists say. “The monetary duality is causing difficulties to evaluate the economy and competitiveness,” said economist Omar Everleny Perez, citing a complicated relationship with international markets, already hampered by a US trade embargo in place since 1962. Cuba has said that the original national peso would remain and the CUC would be consigned to history. The head of Cuba's reform commission, Marino Murillo, said in December a group of 200 specialists were working on the issue and the that “the convertible peso would be phased out,” without giving further details. The European Union, which oversaw the conversion of a number of European currencies to the euro, has offered to assist the Havana government with the delicate move. In preparation for the change, 200, 500 and 1000 CUP bills were issued in 2015 to facilitate less cumbersome payments. Even so, a refrigerator which costs anything from 700 CUC in Cuba officially has to be paid in local currency, or 17,500 CUP. Consolidation will complicate life for state firms, which account for 85 per cent of the economy. Economists predict that importers will see their costs rise and transfer them to the final consumer, generating a hike in inflation. It will benefit state exporters, who will see a surge in their earnings. GRADUAL REFORM Theoretically, state-owned enterprises will have to import at a “normal” exchange rate, but many economists believe that Havana will not have enough foreign reserves to sustain it. On the other hand, in the new system the few Cuban businesses exporting abroad would receive more Cuban pesos, and could partly offset the impact on the economy. “The sectors that benefit could be in a position to pay better wages, but companies that are penalised should close or merge,” said leading economist Pavel Vidal. And the fear of higher prices could cause excess demand, which would be difficult to accommodate on an island that imports 80 per cent of what it consumes, said Perez, who anticipates imbalances in the short term. For Perez and other economists, that is a worrying prospect when the “libreta” – the ration book – no longer covers a family's monthly needs. Perez said it is essential for the government to support the reform by increasing openness to foreign investment and the public sector, in order to stimulate foreign exchange inflows and increase purchasing power. Foreign companies had already positioned themselves to take advantage of the shift, “because they do not really care about the American embargo,” he said.
  3. Somalia Months Away From Having New Currency October 06, 2017 10:55 AM Harun Maruf FILE - A money changer counts local currency notes at a local bureau where $100 US dollar exchanges for 750,000 Somaliland shillings in Hargeysa. Share See comments Print WASHINGTON — The Somali Minister of Finance says the International Monetary Fund (IMF) is taking the lead in helping Somalia with a grant to print new currency before the end of this year. Abdirahman Duale Beileh says the IMF will work with the Somali government. “IMF is ready, from wherever they going to get that money, to help us,” he said. “There are other sources, but we are going to go through IMF.” In an exclusive interview with VOA Somali, Beileh said the Somali government needs $100 million, half of which will go directly toward printing the new money, and the other half to keep the value of the currency when it circulates. “The cost of printing the money is about $50 million, and I think there is also about same amount, same quantity will be necessary to deposit and keep it as a reserve to monitor the movements of supply and demand to keep the value,” he said. He said the cost was the only outstanding issue before printing the money. Strengthening governance issues, accountability issues, skills available in the central bank, the rules and regulations, the monetary systems, the policies, all of these prerequisites have been concluded, Beileh said. “We are now discussing the timing,” he said. The Somali central bank has not properly functioned since 1991. The country’s old currency has almost disappeared or is worn out and was replaced by U.S. dollars, or privately printed notes, most of which are worthless fakes. FILE - A money changer waits for customers at a local bureau where $100 U.S. dollars exchange for 750,000 Somaliland shillings in Hargeysa. Coins, paper money The government plans to issue both coins and paper money. The only banknote that is still used is the 1,000 Somali Shilling, which buys a cup of tea or a packet of chewing gum. Beileh said this will be the starting number for the new money. The “1,000 Somali shilling will be the smallest denomination of coin. The biggest bank note of the new currency will be either 10,000 shilling or 20,000 shilling … there is still discussion on this and is yet to be finalized,” he said. Reliable sources tell VOA Somali that the government plans to print several billion shillings, but Beileh refused to specify the amount. “I’m not privy to the numbers but it will be adequate for the economy of Somalia,” he said. Beileh said the target has always been to print the money toward the end of the year. The money will be released to the market during the second quarter of next year, he said. Big challenges One of the biggest challenges will be implementing the mechanism for replacing the old currency and more importantly what to do with the counterfeit money that has been in the markets for many years. “That really will be the test,” Beileh said. “The counterfeit will be difficult to give good money against bad. It came by exchange of their own funds or their own goods and services but on the other side we need to control that counterfeit money, there will be some decisions that needs to be made as to how much of this bad money should get good money, a lot of talk has to go into that.” He said the positive thing is that the amount of counterfeit money circulating may not be a lot. “It’s not a lot when you look at the whole economy, I think it’s around may be 10 percent or 20 percent of the total money circulating.” FILE - An internally displaced woman from drought hit area reacts after she complains about the lack of food at makeshift settlement area in Dollow, Somalia. Poverty profile Meanwhile the World Bank has released a new report about poverty in Somalia. The survey finds poverty in Somalia is widespread, with every second Somali living in poverty. The survey was conducted last year and is representative of 4.9 million Somali. Somalis are estimated to be 12 million. The areas it does not cover are nomadic people and inaccessible zones because of the conflict. Utz Pape is a poverty economist for the World Bank. He told VOA Somali that the survey was the first comprehensive snapshot of the welfare conditions of the Somali population. “What reports finds and states very clearly is that every second Somali lives in poverty, and by poverty we mean living below $1.90 per day, that is the 2011 power purchasing parity estimate,” Pape said. “This means large part of the population is poor, but we also see there are very large disparity between different groups and geographical areas. Household that were displaced tend to be much poorer than everybody else. But also we see a divide between rural household, which tend to be poorer than urban household.” The report says poverty is high among the internally displaced people with 7 out of 10 poor. It says more than 1.1 million Somalis, or roughly 9 percent of the population, are considered to be internally displaced. Pape says there are other non-monetary poverty indicators in Somalia, such as lack of access to infrastructure, clean water, poor sanitation facilities, lack of electricity and limited access to roads. Limited access to education and health and the other indicators is also highlighted in the report. The World Bank says only 58 percent of Somalis have access to an improved source of water and 10 percent to an improved sanitation, compared with an average of 69 percent and 25 percent in low-income sub-Saharan countries. Asked about what could be done in Somalia to reduce poverty, Pape said “resilience.” “Resilience is important to avoid deepening poverty and to avoid additional household falling into poverty,” he said. Remittances and entry points for different policies and programs, such as social safety net programs or other programs that build up resilience in poor households, access to education and access to health care can improve the conditions, Pape said.
  4. Iran has their own problems right now . They need to sweep around their own porch before their people tear it down or bankrupt them .....?
  5. From the Media Office of Abadi

    Supposedly from another site.....The original translation was further translated and defined in arabic to give the meaning of past tense...."After three or four years,"
  6. Cabinet session headed by Abadi

    Could it be they don't really need them. Thinking out of the norm. That DFI fund was quite old and perhaps ? Hard to calculate once upon a time .....?
  7. Ballasam Samualson Effect ? is not entirely a slow process . (Countries with fast GDP tend to have fast exchange rate ) . Let's see if the near future brings us a RI/RV though.
  8. Iran protests, new campaign aims at bankrupting Iranian banks....... After Iran protests, new campaign aims at bankrupting Iranian banks After weeks of continuous protests across Iran, Iranian civilians launched a new kind of protests against Mullahs' regime that is targeting the regime's economy that is mainly used to pay the forces who kill, torture and detain innocent civilians as well as infiltrating in other countries' affairs. Sources and eyewitnesses said that a lot of Iranians had withdrawn their money from the Iranian banks in order to cause their bankruptcy and then the collapse of the Iranian regime. This comes within a wide-scale campaign to withdrew money from the Iranian banks in which they added that such measures are very effective against Mullah's regime and will prevent the regime from paying money to their forces and coincides with protests in the country. "I work at Bank Mellat. I took out all my money and exchanged it in dollars. Chaos at the banks is escalating. They will be bankrupt soon. I urge you to take out all your money." #IranProtests are taking their toll on the regime," writer and activist Heshmat Alavi quoted an Iranian citizen as saying. #Iran One persons says, "I work at Bank Mellat. I took out all my money & exchanged it in dollars. Chaos at the banks is escalating. They will be bankrupt soon. I urge you to take out all your money."#IranProtests are taking their toll on the regime. Twitter Ads info and privacy The campaign was launched a few days earlier but it is causing the Mullah's regime to live in fear of the results of such campaign, experts said, adding that Iranian civilians are showing a new kind of struggle against heinous regimes like the one ruling Iran now. The eyewitnesses added that many Iranian people have withdrew their money from Iranian Bank Melli, adding that the bank's headquarters are filled with people. They noted that the banks' staff are hindering this process via several bureaucratic measures. The Iranian citizens are feeling proud of their new method of rebellion against the unjust regime in which they posted photos and videos showing how they participated in this campaign within their efforts to encourage others to follow their track and withdrew their money. Although, the majority of Iranian people are poor but they are trying their best to participate in this campaign. "I was able to take out around $6,750 from the bank," an Iranian citizen said. "I don't have much, but proud to take part in this campaign against the regime," an Iranian college student said showing how the campaign is gaining more participants everyday who want to oust the Iranian regime.
  9. They once spoke of the Exchange Rate Of the dollar declining “ Gracefully “ looks like that is what may be happening after several straight days of decline.
  10. Good Day to you Chuck !..........................................................

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