Iraq announces the withdrawal of 70 percent of the excess liquidity

[k98nights]

العراق : الرافدين يعلن سحب 70 في المئة من السيولة الفائضة Iraq : Iraq announces the withdrawal of 70 percent of the excess liquidity

أكد استمراره بدعم المشاريع السكنية والصناعية والخدمية Emphasized the continuing support of housing projects, industrial and service

بغداد ـ طه حسين Baghdad, Taha Hussein

استطاع مصرف الرافدين سحب نسبة عالية من السيولة الفائضة عن حاجة السوق المحلية الى جانب استمراره بدعم المشاريع الصناعية والخدمية والاسكانية. Bank of Iraq could pull a high proportion of surplus liquidity need for the local market as well as continuing to support projects of industrial, service and housing.

وقال مدير عام المصرف عبد الحسين الياسري في مؤتمر صحفي حضرته “الصباح” ان المصرف حقق عملا مهما يتمحور في جانبين هما سحب السيولة الفائضة من التداول وطرحها الى السوق ثانية اذ تمكن من سحب 24 تريليونا و 800 مليار دينار تمثل 70 بالمئة من السيولة، مشيرا الى ان الجانب الثاني من توجهات المصرف يتمثل بدعم مشاريع الصيرفة الشاملة والقطاعات الصناعية والخدمية ومشاريع البناء والتشييد وتخصيص قسم من القروض للمزارعين وتمويل المشاريع الاسكانية لاسيما ان البلد بحاجة الى بناء اكثر من ثلاثة ملايين وحدة سكنية، منوها بأن المصرف خصص 6 تريليونات دينار لاغراض السكن والتجارة والصناعة الى جانب منحه قروضا للقطاع العام مثل وزارة الكهرباء التي منحها قرضا لتطوير الكهرباء وشراء سندات وحوالات منها على شكل دفعتين تجاوزت اقيامها اربعة تريليونات و800 مليار دينار، فضلا عن منح شركات وزارة الصناعة اكثر من تريليون و115 مليار دينار مساهمة منه في تنفيذ مشاريع اعادة تاهيل وتطوير هذه الشركات، اضافة الى القروض المختلفة التي منحها المصرف للموظفين والعاملين في دوائر الدولة المختلفة.وفي معرض حديثه عن القروض الاسكانية التي يمنحها الرافدين للمواطنين بين ان المصرف استعان بالعقاري باعتباره صاحب تجربة في منح القروض الاسكانية للمواطنين فاقرض الاخير مبلغا تجاوز 300 مليار دينار، اضافة الى اعداده دراسة في كيفية منح القروض الاسكانية من قبله مباشرة وذلك لان المصرف اراد تجنب الوقوع في الاخطاء التي وقع فيها العديد من المصارف العالمية من خلال المعادلة الموجودة بين الودائع ونوعها وبين القروض والسلف مبينا وجود ودائع قصيرة الأجل وطويلة الأجل وتوجد هناك قروض وتسهيلات قصيرة ومتوسطة وطويلة الأجل فالمصرف الذي يمتلك الرؤية الصحيحة للمستقبل يجب ان يضع هذه الموازنة ويقرض على اساسها، على حد تعبيره. The general director of the bank Abdul Hussein al-Yassiri told a news conference attended by the "morning" that the bank has achieved an important work focuses on two aspects, namely the withdrawal of excess liquidity from circulation, and then put into the market again, and managed to withdraw 24 trillion and 800 billion dinars, representing 70 percent of the liquidity, referring to the The second aspect of the directions of the Bank is supporting projects its banking and industrial sectors, service and construction projects and the allocation of part of loans to farmers and the financing of housing projects, especially that the country needs to build more than three million housing units, noting that the bank allocated 6 trillion dinars for the purposes of housing, commerce and industry to by granting loans to the public sector as the Ministry of Electricity had granted a loan for the development of electricity and purchases of bonds and remittances in the form of two waves exceeded purchases totaling four trillion and 800 billion dinars, as well as giving companies and the Ministry of Industry more than a trillion and 115 billion dinars, a contribution to the implementation of rehabilitation projects and the development of these companies , in addition to various loans granted by the Bank staff and employees in different state. Speaking of housing loans granted by Iraq to the citizens of that the bank used Balakari as an owner of an experiment in granting housing loans to citizens Vakarz final amount exceeded 300 billion dinars, in addition to the prepared study how to grant housing loans by him directly, because the bank wanted to avoid the mistakes of the many international banks through the equation between the deposits and the type and between loans and advances, indicating the presence of short-term deposits and long-term and there are loans and short-, medium-and long-term bank, which has the right vision for the future must be prepared to this budget and gnawing on that basis, he put it. المدير العام نبه الى ان المصرف مازال مستمرا في منح المواطنين القروض الاسكانية البالغة 30 مليون دينار مبينا ان المصرف اشترط امتلاك المواطن الراغب في الحصول على هذا القرض لقطعة الارض باعتباره مهيئا لبناء الوحدة السكنية اكثر من غيره، فضلا عن استمراره في منح القروض التجارية والصناعية.واوضح ان الرافدين كان قد وضع سقفا للسلف لايتجاوز ترليون دينار وهو حاليا يدرس امكانية وضع سقف جديد او رفع السقف الذي وصل اليه المصرف في المرحلة الماضية. Director-General warned that the bank is still going to give people housing loans of 30 million dinars, indicating that the bank is required possession of the citizen who wants to get this loan to the land as a place for building the housing units more than others, as well as continue to grant loans that commercial and industrial. Said that Iraq had put a ceiling for advances to exceed one trillion dinars and is currently studying the possibility of developing a new roof or the lifting of the ceiling he reached the bank in the previous stage.

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[GrahamB]

Thanks for that post. It certainly sounds like they are getting on top of things, and that has to be to our advantage. IMHO

[lechesuerte]

Now this is exciting stuff!!! Thanks for the post and all of your hard work!!!

[carlablum]

Awesome read!!!

Thank you!

[Chief V]

This goes along exactly with the post I just put on here, what they call liquidity is the large denominaiton bills....

Manager of biggest Iraqi bank Abdul Hussein Alyasiry said that Iraq is the only country in the world where financial liquids being exchanged by bags pointing that there is governmental will to eliminate zeros from the currency to overcome the huge liquids

Translated by IRAQdirectory.com - [5/25/2010]

What this sounds like is they are getting ready to do this, taking out the large bills and putting the smaller denominations out by exchanging in country....IMO, this is what it sounds like...could be something!!

[luckylucy]

I understand they are using sale of bonds ... here's email from him .. he just got back from Iraq/kuwait/turkey area. he's consultant for MorganStanly regarding investments and purchases and they have been handling acquisitions, I think, in middle east and asia... I'm trying to get him to come back to DV to post .. but he was banned once for sharing this info so is reluctant. He has "Nick's" permission to share this. this email came to me from former DV member "botat".

maybe I'm confused about sale of bonds reducing outstanding currency ... but if bonds go out and money comes back in ... what does that do. I sent message to botat asking what he meant. Here's his original email to me.

luckylucy

On Wed, May 26, 2010 at 11:36 PM, XXXXXXXXXXXXXXXXXXXXyahoo.com> wrote:

How's life been in DV world. I trust you saw the announcement by the CBI about the bond sale. That was exactly what Nick had referred to on the news that was coming from them. Morgan Stanley had a small part to play in that. I know you saw that stuff about the 70% withdraw of circulated currency. As I said before in all my chats on DV they would not RV till the currency had been decreased. I personally don't think we will see a In-Country RV, as it just doesn't mesh with all that is going on. In-Country RV's are pretty much a thing of the past. There is no need for them to do it if they have the currency supply down that much. So as I said before it will end up being end of June to early July once all the year end audits are done and they have accounted for all the currency they can look at the RV and not till then.

[GrahamB]

On Wed, May 26, 2010 at 11:36 PM, XXXXXXXXXXXXXXXXXXXXyahoo.com> wrote:

How's life been in DV world. I trust you saw the announcement by the CBI about the bond sale. That was exactly what Nick had referred to on the news that was coming from them. Morgan Stanley had a small part to play in that. I know you saw that stuff about the 70% withdraw of circulated currency. As I said before in all my chats on DV they would not RV till the currency had been decreased. I personally don't think we will see a In-Country RV, as it just doesn't mesh with all that is going on. In-Country RV's are pretty much a thing of the past. There is no need for them to do it if they have the currency supply down that much. So as I said before it will end up being end of June to early July once all the year end audits are done and they have accounted for all the currency they can look at the RV and not till then.

That all sounds very encouraging. It fits in with the Sticky on Economists view, and it all makes sense to me. However I strongly believe that an In-Country 'adjustment' will occur in conjunction with an In-country LOP, and I consider a valuation of Dollar for Dinar being an likely minimum outcome. That way there is a bonus in the LOP for people In-country, and I beleive that to be a political necessity.

Then assuming the external currency is treated as suggested in that Sticky referred to above, then we are looking at a very significant capital gain!

And the timing of June/July seems to fit in with the political developments, and the up-coming Ramadan 'holiday'.

Edited May 27, 2010 by GrahamB