Iraqi bonds to be issued in U.S. DOLLARS, NOT Dinars!!

[Candy01]

Hello Adam, Yota and Other Newshounds!

 

I just learned today that the new bonds will NOT be issued in DINARS but in U.S. DOLLARS!!

 

WHY is this, and isn't this really BAD news for us?

 

Thanks Much!!

 

[Adam Montana]

Absolutely not!

In fact, the opposite - if they were in dinars, then a revalue would have a huge impact on those bonds. By setting them in USD, they are keeping the dinar free of complications.

[Cynthia AH]

Yep!

[DWitte]

Absolutely not!

In fact, the opposite - if they were in dinars, then a revalue would have a huge impact on those bonds. By setting them in USD, they are keeping the dinar free of complications.

But don't they get enough USD from oil sales?  Don't they need this money for the shortfall of their budget and if so won't they have to pay salaries and such in dinars?  I'm guessing a conversion is not a problem.  I'm having a difficult time putting my thoughts in writing right now so if I need to clarify let me know.

[Zebra0101]

Where did you "learn" that from Candy?

[sandfly]

THANKS ADAM

[Adam Montana]

But don't they get enough USD from oil sales?  

 

I don't think that's what drives this machine, and here is why: The price per barrel is generally listed in USD, they sell X amount of barrels, they get X USD, because the entities buying the oil are mostly using USD.

[Adam Montana]

My point is that the price in USD is mostly irrelevant. When the CBI decides to change the exchange value of the IQD, they aren't doing it in "buckets of oil". They are doing it as an arbitrary change in what they will pay for the Dinar, and they don't necessarily need to have "cash on hand" to do that.

 

Fractional banking, Fiat Currency, and Greed is all that Iraq needs to make an RV possible.

 

A full HCL is all Iraq needs to make an RV a reality.

 

We have the first 3. We're waiting on the last one.

 

[sandfly]

THANKS FOR THAT INFO ADAM UR THE BOSS

[DWitte]

Adam, so you really believe that shortly after an HCL we will have an RV?  And Daesh or any of the other "fluff and stuff" is pretty much irrelevant in regards to an RV?

 

I don't give much credibility to anything until it starts to hang around for awhile.  Although this is somewhat new (at least to me), what do you think about Iraq dividing into three different States?  Since they can't seem to agree on much, or worse yet even get along for any length of time.

 

Thanks for the info on the previous post.  You explained it in a way I could understand it.  

 

It seems you are smarter than a fifth grader.  Since I barlee gradiated junor hi skole.  Me Mooooommeeeeeeeee told meeeee in last nites praeer too say Thank U.

[Texstorm]

Thanks so much Adam ! There is no way for Iraq to pull away from the USD giving all of the reasons that you cited. Yet no one outside of Iraq wants The IQD except for a few speculators. There also seems to be an unlimited supply of USD in Iraq and the CBI is making a killing on the exchange rate because of this. For now the only one in control of Iraq is the CBI and the oil companies which are pegged to the USD. If I was a foreign business in Iraq with some other product that I was selling, I would take USD for payments. This is what I don't understand, how exactly if you are Iraq are you going to get me to take your currency for payment. An RV might be a simple solution but I have no need as a business to take payments in IQD from a country that is so unstable. As long as there is USD my money is safe from an American standpoint. The only way I can ever see their money being worth something out of Iraq is to put "backed by The United States of America " on the top of their bills or to have our government openly accept the IQD here in the U.S.. That is all that maters in my small world ! If any of the mods could repost this in Adams questions and answers I would greatly appreciate it. I am too challenged to rewrite this again.....I would probably lose my train of thought. LOL

[Markinsa]

Thanks so much Adam ! There is no way for Iraq to pull away from the USD giving all of the reasons that you cited. Yet no one outside of Iraq wants The IQD except for a few speculators. There also seems to be an unlimited supply of USD in Iraq and the CBI is making a killing on the exchange rate because of this. For now the only one in control of Iraq is the CBI and the oil companies which are pegged to the USD. If I was a foreign business in Iraq with some other product that I was selling, I would take USD for payments. This is what I don't understand, how exactly if you are Iraq are you going to get me to take your currency for payment. An RV might be a simple solution but I have no need as a business to take payments in IQD from a country that is so unstable. As long as there is USD my money is safe from an American standpoint. The only way I can ever see their money being worth something out of Iraq is to put "backed by The United States of America " on the top of their bills or to have our government openly accept the IQD here in the U.S.. That is all that maters in my small world ! If any of the mods could repost this in Adams questions and answers I would greatly appreciate it. I am too challenged to rewrite this again.....I would probably lose my train of thought. LOL

 

 

If you take your US Dollars to an Iraqi Bank for Deposit, it automatically gets converted to Dinar.  I would think it would be almost impossible to do business in Iraq without dealing with Dinar, unless you have your own vault, don't accept credit cards or do wire transfers.

 

.

[Candy01]

Thanks SO much for your input, Adam, and everyone!!!

 

:bravo:

Zebra0101,

 

I saw an article on a Dinar forum that said this!  But the article said the bonds would be WORTH 50 billion USD!

 

Hope this helps!

 

[olivesman]

Thanks SO much for your input, Adam, and everyone!!!

 

:bravo:

Zebra0101,

 

I saw an article on a Dinar forum that said this!  But the article said the bonds would be WORTH 50 billion USD!

 

Hope this helps!

 

Given this answer, it just sounds like a RUMOR. We would be more interested in a NEWS LINK.

[Adam Montana]

Given this answer, it just sounds like a RUMOR. We would be more interested in a NEWS LINK.

 

I agree, the content of that post is lacking a solid foundation, and therefore can't be considered anything more than a rumor.

 

Candy, do you have a real news link that supports your post?

[DinarThug]

Candy, do you have a real news link that supports your post?

 

CNN Has Uncovered 'The Missing Link' And Where Maliki Came From !

 

 

             

[DinarThug]

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.

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CNN Also Uncovered This Article Posted Yesterday By Our Super NewsHound Master Yota !

 

     

.

 

 

Government is the rise in the dollar to stimulate national production positive indicator

Central Bank: Financial will issue bonds worth $ 5 billion sold to the public

 

Author: HH 
Editor: HH 06.20.2015 11:53 Number of Views: 452 

 

Long-Presse / Baghdad 

Detection Governor of the Central Bank of Iraq on the Keywords, on Saturday, for the approval of a cell of the crisis on financial bond issue worth five billion dollars sold to the public, and pointed out that the Bank assigned the management of the bonds as a financial agent of the government and will begin immediately issued, and as he emphasized that Iraq is bankrupt and did not exhausted resources to solve the liquidity crisis, ruled that it affects the employees' salaries.

 

To be continued ...

 

 

.

the complete article 

 

Long-Presse / Baghdad 

Detection Governor of the Central Bank of Iraq on the Keywords, on Saturday, for the approval of a cell of the crisis on financial bond issue worth five billion dollars sold to the public, and pointed out that the Bank assigned the management of the bonds as a financial agent of the government and will begin immediately issued, and as he emphasized that Iraq is bankrupt and did not exhausted resources to solve the liquidity crisis, ruled that affect the employees' salaries.

He said Ali Keywords during a joint press conference with the President of the Association of private banks in Iraq and Wadih Handal held in Baghdad and attended (range Press), that "the Bank will begin issuing financial bonds worth five billion dollars sold to the public after the approval of the crisis cell on the issuance of the Ministry of Finance bonds futures in dollars." noting that "this will achieve a good source."

Keywords and added that "the dollar will be the official price minus a certain percentage of the public buy it and pay him a year later at the official dollar approaching minus a certain percentage of the interest rate."

Keywords and pointed out that "the dollar will be the official price Matrouh a certain percentage of it bought by the public and pay him after one year at the price of the dollar rate it Matrouh interest rate convergence", noting that "the Bank as a financial agent of the government commissioned the issuance of those bonds." 

Keywords and stressed that " Iraq is bankrupt and did not exhaust its resources to resolve the liquidity crisis, "ruling out" the impact on the employees' salaries. "

The Prime Minister Haider al-Abadi stressed, on Thursday (the eighteenth of June 2015) on the need to follow up and address any problematic novel about the dinar exchange rate against the dollar in the local markets, as approved crisis cell on the proposal of the Central Bank delete the amounts added on remittances, stressed the need commitment to the oil agreement with Erbil.

The Iraqi Central Bank announced, in (the eighteenth of June 2015), sold for $ 203 million to applicants in the currency auction, as he emphasized the need to cover the market.

Economists attributed, in the (16 June 2015), the high dollar exchange rate against the dinar to the floundering economic policy, and the neglect of the productive sector, while the Parliamentary Finance Committee confirmed that the concerned state has taken action to support the value of the dinar, which increase the width of the dollar in the market Package and acceptance of all purchase orders submitted by traders and banking companies and banks, and the abolition of tax deposit and customs that were collected in advance by eight percent.

Finance Committee in the Iraqi Council of Representatives promised, on Monday (the fifteenth of June 2015), that many of the question marks are raised on the outcome of the Iraqi Central Bank action to stop the deterioration of the value of the dinar against the dollar, while the economic and investment commission parliamentary felt that many of the economic crisis solution is to amend the law so as to ensure the bank's independence from the government, and carry Bankers "abuse" the central bank responsibility for a stronger dollar, despite the latter denied this and accused them of responsibility and speculators, and vowing action "deterrent"

The Central Bank of Iraq, decided Tuesday (June 16, 2015), considered Saturday formally durable, banks to meet the need of the currency, noting that it reduced the duration of the special deposit amounts from ten to five days.

And it saw the dollar exchange rate steady rise in the local markets, from about 1200 dinars to the dollar, the beginning of the current 2015 to 1400 dinars currently.   

 

[pocono]

Can't post a link from this phone for some reason,however if you look for a post by Thug from 5/31 in the news section it will clearly state the bonds will be denominated in USD.

This is not related to the above CBI story but rather the Bond issue/credit rating story.

[DinarThug]

Thx Pocono - Here U Gocono ...

CNN. Broadcasting While Iraq Ditches The Burqa And Seductively Strolls Down Wall St In A Low Cut Dress And Stiletto Heels Trying To Entice Morgan Stanley And Merrill Lynch !

(by walkingstick)

Iraq looking to get credit rating

5/31/2015 0:00

In order to issue denominated foreign bonds in dollars

BAGHDAD - Mostafa Hashemi

said Iraq's intention to issue IOUs sovereign, internal and external, for the purpose of finding funding to cover the budget, which is estimated at about a quarter of the amount of the budget for the current year's 119 trillion and 585 billion and 322 million and 783 000 dinars deficit.

According to Article ( 2 / II / a) of the budget law, the amount of the deficit is covered from internal and external borrowing, and because Iraq lacks the credit rating of the three global agencies, it speed up access to this category for the purpose of issuing foreign bonds fact that the tenure for ratingsupports its strength in international markets.

In This connection between economic academic d. Essam Mohamed importance of obtaining the credit rating of sovereign bonds (external) by saying that the degree classification give investors a clear view of a road map of their investments in the country, especially on the subject of the bond because it determines that a range of circulation in the global bond markets after identifying risks.

He said Mohammed in an interview for the "morning" : that Iraq is capable of issuing such bonds because it possesses previous experience when called Paris Club bonds years ago and is due for repayment in 2028 year.

The Finance Minister Hoshyar Zebari said that Iraq is considering denominated international bond issue in dollars for five years worth of five billion dollars to help him Plug in the budget.

Wade Mohammed is the view of experts and specialists that Iraq enjoys a good reputation in terms of its financial obligations and possesses resources that qualify it paid off its foreign debt at maturity.

He was economic adviser to Prime Minister Dr. The appearance of Mohammed Saleh said the "morning" earlier: that Iraq lacks the sovereign credit rating but bonds issued by to extinguish the Paris Club debt rated close to those countries that have such a rating awarded Iraq.

He explained that the interest rate and the discount rate on the Iraqi offered bonds in Earlier it is approaching the price of some countries that have rated sovereign, pointing out that theclassification of Iraq's credit, although he did not officially yet determined, Vhually probably at a temperature -B returned him well and cause an indication of optimism, saying: that this place is an official but set the intensity of turnout on the purchase of Iraqi bonds raised by accordance with the Paris Club and sold in global markets, amounting to $ 2.7 billion annual steady at 5.8 percent interest rate.

so it looked Committee on Economic Affairs with the competent authorities to issue external loan bonds and influence positive to get a credit rating from international rating agencies.

came that by hosting the Committee for each of the Chairman of the Finance Committee Dr. Ahmed Chalabi and head of the economic and investment commission Jawad al-Bolani, the Parliamentary, in the presence of financial banks representatives (Cleary Office Gottlieb Steen & Hamilton LLP, Citibank and Deutsche bank and Jp Morgan), to discuss the article (2 / Second / a) of the Federal General Budget about the version of the external loan bonds law and what the expected results of the issuance of those bonds.

As discussed the positive impact resulting from obtaining a credit from international rating agencies rating to support the economy and the construction and reconstruction in Iraq by increasing the financial resources of the state derived from These bonds.

The Committee on Economic Affairs was formed under the chairmanship of Deputy Prime Minister D.roژ Nuri Shaways and membership of ministers (finance, planning, commerce, agriculture) and Chairman of the National Authority for Investment and Advisor to the Prime Minister for Economic Affairs and Deputy Secretary General of the Council of Ministers of Finance and Administrative Affairs and the Director of the Legal Department of the Office Prime Minister.

http://www.alsabaah.iq/ArticleShow.aspx?ID=93814

[Candy01]

I tried to copy the link but for some reason now I CANNOT copy and paste ANYTHING on this site!

 

[Adam Montana]

Candy, others have had that problem - it's something to do with your browser.

 

Check or post in the Tech support section for help on that.

 

[RodandStaff]

CNN Has Uncovered 'The Missing Link' And Where Maliki Came From !

 

 

             

Ummm...that splains a lot Thug's...but in the process don't that make

you go crazy or something and wanna jump off the deep end???   

Edited June 23, 2015 by RodandStaff

[NoviceInvestor]

My point is that the price in USD is mostly irrelevant. When the CBI decides to change the exchange value of the IQD, they aren't doing it in "buckets of oil". They are doing it as an arbitrary change in what they will pay for the Dinar, and they don't necessarily need to have "cash on hand" to do that.

Good afternoon Adam .. May I ask you a direct question as I miss your chats and weekly news events etc..

My question is .. Are we light years away from this ever revaluing? .. And if not how much longer are they going to stall .. My thoughts would have been with all the financial chaos in China and Europe now or near now would have been an opportune time to RV .. Thanks

Fractional banking, Fiat Currency, and Greed is all that Iraq needs to make an RV possible.

A full HCL is all Iraq needs to make an RV a reality.

We have the first 3. We're waiting on the last one.