Bond Lady Chat 4/30/2011

[DRV1804]

* BondLady Chat: BondLady’s Corner 4/30/11

April 30th, 2011 02:47 pm · Posted in CHATS & POSTS (Iraqi Dinar Info)

[bondLady] Central Bank urges the government to reform the tax and the removal of the conditional method http://****************.w ··· =5210810

[bondLady] it takes time plus u cant read those like u would american .

[bondLady] english

[bondLady] u have to break it down line for line

[bondLady] any ways let me show u this

Baghdad / term follow-up economic / agencies While acknowledging the Iraqi Central Bank foreign currency sales down in daily auction because of the emphasis the government publicly disclose the tax demanded the government to conduct sweeping reforms in the tax system and improve the performance of the Department of Taxation in the country. The central bank adviser said the appearance of Mohammed Saleh The Kurdistan News Agency (Rn): The tax system in Iraq, not backward rise of the responsibilities granted by the Ministry of Finance, which cause great economic problems. ” He added: “Reform of the tax system in Iraq is aimed at creating an atmosphere of citizenship and the removal of the conditional method, which is characterized by the device is evident in his handling of the tax with the citizens.” And: “The decline in hard currency to buy and sell customers come because of fear of government and private banks to deal with a state tax because of its inflexible.” He revealed the CBI yesterday Thursday, the decline in the sales of hard currency from $ 150 million to $ 50 million a day because of the problems faced by clients in the private and state banks to disclose relating to taxation. Saleh pointed to the existence of several problems facing the advancement of the tax in Iraq, most notably the tax system in Iraq does not take into account the economic changes taking place in the country, which increases the momentum of economic problems. http://****************.w ··· =5210810

[bondLady] 1st this is talking about taxes

[bondLady] tarriff taxes on imports and taxing goods

[bondLady] then it talks about

[bondLady] how low the auctions was and have been

[bondLady] causeing a strain on the currancy

[bondLady] let me get some more of the article

[bondLady] He revealed the CBI alleged that the value of tax to balance in 2011 amounted to 2.7 trillion Iraqi dinars. The sector has witnessed in Iraq, taxes nearly ceased in recent years because of turmoil in Iraq, the economic situation and the tense security situation which has led to limit the tax system on the sector staff, merchants and traders only. And select the CBI 250 billion dinars as a minimum for the establishment of private banks in the country. The House of Representatives its first session legislation to the Banking Act in 2007 to organize the work of private and state banks. And the central bank of Iraq last February that he would give the number of licenses to establish private banks confirmed that the increase in banks will enhance the economic role of the country. He denied the central bank in June 24 that the development of Iraqi private banks according to risk is confirmed by the Ministry of Finance down.

[bondLady] its talkin bout taxes bein almost nil

[bondLady] since 8 yrs of war

[bondLady] and they needed to fix it and start the tarriffs or enforce all tarriff taxes to boost the economy

[bondLady] and help the state provide services like our states taxes an stuff

[bondLady] talks about the banking sectors

[bondLady] how the cbi has granted licensees to help with loans an low interest ratees to help boost the private sector

[bondLady] And the central bank of Iraq last February that he would give the number of licenses to establish private banks confirmed that the increase in banks will enhance the economic role of the country. He denied the central bank in June 24 that the development of Iraqi private banks according to risk is confirmed by the Ministry of Finance down. The total capital of Iraqi private banks billion and 600 million dollars now, other than bank branches owned by Arab and foreign companies operating in the country.

[bondLady] In the meantime, revealed adviser to the CBI from lower sales of hard currency of $ 150 million to $ 50 million a day because of the problems faced by clients in the private and state banks to disclose relating to taxation. He said the appearance of Mohammed Saleh told the Kurdish news agency (Rn): The sharp decline in the proportion of buy hard currency at the Central Bank reached $ 150 million to 50 million dollars, “attributing the cause to the strictures government to disclose the tax is an obstacle facing clients in the private and state banks” .

[bondLady] this is about the low currancy auctions i talked about how its put a strain on the economy

[bondLady] and the drying up of the 000 notes

[bondLady] and electricity prices had went up

[bondLady] importing electricity

[bondLady] strained the budget

[bondLady] and caused inflation to rise

[bondLady] also all the oil and gas flowing was way over budget as far as returns on profits

[bondLady] this also causeing a increase in inflation

[bondLady] and my fav part of this

[bondLady] article

[bondLady] Saleh added: “The central bank seeks to coordinate monetary policy and fiscal policy through the provision of tax disclosure requirements of the Chambers of government tax,” noting that “most of the proceedings conducted by the international banks for the balance of economic value and the achievement of the factors of development banking.” He continued: “This sudden decline will certainly affect the purchasing power of Iraq to foreign currency, but will not last long because of the policy pursued by the Central Bank in the promotion of the foreign currency market and raise about the Iraqi dinar exchange rate.”

[bondLady] coordinate the monetary policy with

[bondLady] the fisical policy

[bondLady] thru the provision of taxes

[bondLady] balance of economic value

[bondLady] and achievments this is achieving the 000 removal to this next step

[bondLady] the sudden decline of forien currency

[bondLady] the dedollarisation

[bondLady] he says

[bondLady] but this will not last long

[bondLady] hes talkin about the inflation also every thing i just talked about

[bondLady] then he says

[bondLady] this wont last long dont worry

[bondLady] because im going to raise the value of the iraqi dinar

[bondLady] Central Bank in the promotion of the foreign currency market and raise about the Iraqi dinar exchange rate.”

[bondLady] remember when i said

[bondLady] about the 1,2,3 to rv

[bondLady] how the cbi had to write up the law about the 000 and submit that with a rate and how much money was in exterior and outside

[bondLady] the cbi had to write this up

[bondLady] take it to the ministers of the goi

[bondLady] they in turn would pass it to the house of representives to pass it and make it law

[bondLady] to approve the lower denomoinations and rv

[bondLady] i just told u about the 1,2,3 to rv right

[bondLady] ok this articlke

[bondLady] remember this

[bondLady] 1 the cbi writes the law

[bondLady] 2 the cbi takes the law to the goi

[bondLady] 3 the goi gives it to the house of rep’s

[bondLady] Central Bank of the process of finalizing the draft raise three zeroes from the Iraqi dinar Palm – The Central Bank of Iraq, on Tuesday, he is about to finish the project raise three zeroes from the currency, noting that the project is considered strategic, and submitted to the Council of Ministers and legislators if completed. http://****************.w ··· =5210751 [bondLady] my fav part here

[bondLady] The central bank adviser said the appearance of Mohammed Saleh during permit media raising project three zeros from the dinar is a strategic project and the Central Bank is in the process of finalizing the project, the idea of ​​theory into practice, and is nearing completion, and submitted to the Council of Ministers and Deputies.

[bondLady] what does it say

[bondLady] process of finalizing the project, the idea of ​​theory into practice, and is nearing completion, and submitted to the Council of Ministers and Deputies.

[bondLady] submitted to the council of ministers

[bondLady] SUBMITTED

[bondLady] The benefit that this project will reduce the cost of transactions and reduces the carry cash, he said, adding that Iraq is on the verge of producing 6 to 12 million barrels of oil and this will impact on the development and raise the value of the Iraqi dinar.

[bondLady] reduces the carry cash

[bondLady] thats the lower denoms

[bondLady] on the verge of becomeing a oil giant

[bondLady] this will impact

[bondLady] and raise the value

[bondLady] of the iraqi dinar

[bondLady] The adviser to the Iraqi Central Bank said the bank has achieved three things during the last stage, as the first building reserves from zero to $ 50 billion, within the past five years, reduce the price of the basic inflation from 34% to 4 or 3%, and achieved stability in the Iraqi dinar exchange. He was adviser to the CBI the appearance of Mohammed Saleh, said in an interview earlier the bank’s readiness to delete the zeros of the Iraqi currency, pointing out that those zeros that are added to the Iraqi currency during the last period formed a cluster of large cash amounted to 27 trillion Iraqi dinars. On the other hand, revealed adviser to the CBI, said Iraq enter for the first time a system of payments between banks has been the transition to electronic clearing away from the hand and entered into by the six banks and the exchange of instruments between banks electronically and will link the smart card and credit system with the Central Bank. Continued by saying that the central bank would be three years after the so-called Council of the payments, which sets protocols and is the infrastructure of Iraq.

[bondLady] enter into for the 1st time

[bondLady] electronic transactions

[bondLady] thru the banking sector

[bondLady] Previously, specialists Iraqis in the field of economics that played down the impact of the central bank to delete zeros from the currency the purchasing power of the Iraqi dinar, also hopes the government from behind the move, as the view of researchers that the cost of lifting of the zeroes will be the biggest of its usefulness, given that the currency’s strength is measured by the stability of disbursement which is based on the strength of the productive sector can provide goods and services.

[bondLady] and raises the purchaseing power for the iraqi citizens

[bondLady] so the cbi did write up and submit it to the ministgers

[bondLady] ministers

[bondLady] so now if i can find it

[bondLady] i posted another 1 today

[bondLady] that said shabibi met and talked with the house of represenitives and the deputies

[bondLady] so they are in step 3

[bondLady] now the house of reps need to vote on it 2 times and both approve it

[bondLady] and then gazette it into law

[bondLady] and then just get r done

[bondLady] thats the trigger

[bondLady] now another article

[bondLady] i covered in the 1st article

[bondLady] but let me go get it

[bondLady] when it becomes law

http://****************.w ··· =5210908 Amer Al-Fayez: The amount of compensation the ration card will raise the market prices 04/30/2011 – 12:00 PM Forecast for the economy and investment parliamentary high market prices due to exchange amounts of compensation Altamoinp card, are required to secure allowance of food basket items Check any money. It is noteworthy that the government has taken steps to avert the anger of the street, where the Council of Ministers decided to give each citizen $ 15 thousand dinars in compensation for the shortfall in the ration card items.

[bondLady] the ration items

[bondLady] for over 7 millon people

[bondLady] like the electricity being so high

[bondLady] so is all these ration items when u have to have them for 1/3 of the population of iraq

[bondLady] around 10 to 15 millon people

[bondLady] this like electricity is causeing inflation too

[bondLady] inflation was shabibis biggest concern here

[bondLady] to fight inflation and keep it low

[bondLady] well its sky rocketing up

[bondLady] was 2.3 in jan almost 6% now if not already higher

[bondLady] they said 5.7%

[bondLady] but for shabs to go all in like he has with the 000 and ld’s an new rates

[bondLady] its gotta be right at 7 to 9 % imo

[bondLady] A member of the Committee on Energy and investment and parliamentary deputy / National Alliance / Amer al-Fayez told the correspondent Agency (news) on Saturday: that the compensation amounts for the ration card Aisaf citizen as far as insurance and the delivery of materials and full of good quality. Al-Fayez added: that the amounts of compensatory rise in the market and prices that may harm the citizen, required to provide the food basket items

[bondLady] that was all that article short and to the point

[bondLady] it might take me a min to find this last 1

[bondLady] where it does say shabs met the house of rep’s and the deputies

[bondLady] so ill brb

[bondLady] im gonna find it

[bondLady] Iraqi Dinar ~ The deletion of zeros from the Iraqi currency would overcome all the difficulties of economic Saturday, April 30, 2011 Iraq: the deletion of zeros from the Iraqi currency would overcome all the difficulties of economic http://****************.w ··· =5210742

[bondLady] Palm – saw an MP for the Iraqi List, reproach the league that the process of deletion of zeros from the Iraqi currency to work through all the economic difficulties, especially after the case of hyper-inflation experienced by the country.

[bondLady] says

[bondLady] this will fix all the economic problems

[bondLady] inflation

[bondLady] the drying up of the 000

[bondLady] HYPER INFLATION

[bondLady] THE WORST

[bondLady] like a f5 tornado so to speak

[bondLady] if they dont control it fast

[bondLady] itll spiral out of control

[bondLady] and it took shabs 6 yrs to bring it down from in the 30′s%

[bondLady] to the suposed 5.7% it is today

[bondLady] but like i said i feel those figures are low

[bondLady] The league said in a press statement today: The announcement of the Iraqi Central Bank Governor for putting the final touches to the process of lifting the zeros from the currency is one of the things in support of the Iraqi economy and reduce inflation, currently exist.

[bondLady] putting the final touches on the process

[bondLady] of LIFTING THE ZEROS

[bondLady] NO LOP

[bondLady] LIFT AND RAISE NO LOP

[bondLady] and reduce inflation

[bondLady] that currently exists

[bondLady] my fav part of this article

[bondLady] is my step 3 to rv

[bondLady] take it before the house of rep’s after shabs gave it to the ministers

[bondLady] AFTER

[bondLady] The governor of the Central Bank came to the House of Representatives earlier and discussed with the deputies, the subject of the Iraqi economy and the deletion of zeros from the dinar.

[bondLady] he governor of the Central Bank came to the House of Representatives earlier

[bondLady] the*

[bondLady] nd discussed with the deputies, the subject of the Iraqi economy

[bondLady] and*

[bondLady] and the deletion of zeros from the dinar.

[bondLady] hope that has helped u all

[bondLady] hands the mic to peak and walks off

[bondLady] mic*

[Danielsan]

Thanks for the post. Looking real GOOD!! GO RV!!!!!

[zaborniake]

She makes a good point about the inflation. I have a feeling that it is creeping higher than the CBI is letting on. I can't imagine that Shabbs would let it get back out of control, as the CBI has worked so hard to drive it down and stabilize the currency. It would seem that the RV has to take place soon, or all that work will come undone. IMO. Go RV!

[ThePeoplesChamp]

I really love how Bond Lady breaks it down.

THANK YOU FOR THE POST!!!

[Butifldrm]

Thanks for the post. Analysis lookin good.! Gooo RV

[DRV1804]

She makes a good point about the inflation. I have a feeling that it is creeping higher than the CBI is letting on. I can't imagine that Shabbs would let it get back out of control, as the CBI has worked so hard to drive it down and stabilize the currency. It would seem that the RV has to take place soon, or all that work will come undone. IMO. Go RV!

Totally agree!!

[dhill45888]

Boy I sure love she Plagurized a artical that was in the news Clearly Bondlady has no actual intel to Share

April 27, 2011

Too many zeroes: iraq plans to change currency

The Iraqi government plans to chop three zeroes off the national currency. It should make transactions easier and enhance the exchange rate. But local economists are not sure the country is ready.

Recently the Iraqi government announced that they were close to completing plans for re-denomination. Three zeroes will be removed from Iraq’s currency, the Iraqi dinar or IQD, and old banknotes will gradually be phased out. For example, this would make an IQD 1,000 note into an IQD 1 note. Currently IQD 1,000 is worth around €0.60 and US$0.85.

Logically speaking, re-denomination does not change the value of a currency nor should it cause inflation. It should make currency easier to use and increase its credibility. Re-denomination may also be a matter of political expedience.

For example, when Turkey announced a re-denomination in 2005, the country’s central bank explained that extra zeroes on their banknotes meant “problems in accounting and statistical records, data processing software and payment systems”, adding that the move to cut them was “psychologically and technically essential”.

Re-denomination can usually only be undertaken once inflation is under control and over the last few years, inflation in Iraq has dropped from over 30 percent to single digits. Nonetheless Iraqi opinions about the planned change remain divided.

Qasim Jabbar, an economic researcher, is concerned about the psychological impact the removal of three zeroes will have on locals. Additionally Jabbar does not think the time is right. “We must create a stable environment in political, economic and legal terms, in order to control the conditions during the transition period to a new currency,” he explained. “This is necessary in order to ensure that the transition is not manipulated by government departments and in society in general, where there is rampant corruption.”

Jabbar was also worried about the absence of a central authority that was truly capable of controlling the Iraqi currency market. He believed that the psychological problem will be people “focusing on the change in numbers, rather than in real value”. By rights, re-denomination should not impact the actual value of a currency; it should still buy the same goods as it did before for the same prices. “But a person with IQD 10 million will feel they have lost a fortune when the zeros are removed,” he noted.

Re-denomination is nothing new. “Many countries, such as Turkey and Germany, have also taken this step,” another Iraqi economist Kareem al-Halfi said. “But this doesn’t mean that the Iraqi experience will be like that, of those nations. Iraq has serious structural problems and high rates of unemployment. These problems cannot be solved in the short term and we need to create the economic conditions necessary to allow re-denomination.”

According to Mothahhar Mohammed Saleh, an advisor to the Central Bank of Iraq, which was established in 2004 to administer monetary policy in Iraq, the impact of re-denomination could have both positive and negative effects.

Firstly, a reduction in the large amount of currency in circulation – there is an estimated IQD 27 trillion in circulation – could have a negative impact on everyday transactions, he said. For example, one previously recorded impact in other countries has included the rounding up (or down) of prices due to re-denomination.

On the other hand, the currency will become far easier to use. “In the wholesale sector, goods are being traded using US dollars.” This process is known as “dollarization” and occurs when a country uses a foreign currency, in parallel to or instead of, its own currency because it is seen as more stable and subject to fiscal disciplined.

Anyway, according to Saleh, “this change will not be introduced hastily. It will only be introduced when inflation is under control - and after parliament and the Iraqi cabinet has gone through legislation thoroughly. They will then decide how the [re-denomination] law will be implemented.”

As Saleh said, “the Central Bank is proceeding cautiously in this matter because it realizes re-denomination could cause economic problems if implemented in haste.”

The IQD was first introduced in the early 1930s and was pegged first to the British pound, then the US dollar. After Iraq’s invasion of Kuwait, under the leadership of Saddam Hussein, strict economic sanctions saw the value of the IQD drop. By the mid-1990s, IQD 3,000 was worth around one US dollar.

In order to make purchases in Iraq, huge amounts of cash were needed. An IQD 25 note was the highest denomination available so to make life easier, the government introduced an IQD 250 note. After the American-led invasion in 2003, the Iraqi government issued even more notes with higher values. IQD 25,000 notes were now the highest value.

The average person on the Iraqi street said they would be happy to see the IQD stabilize further. But they are also afraid that the lopping off of zeroes will have a negative impact.

Baghdad merchant Abdul Amir trades in food products and when he deals with wholesalers he prefers to use US dollars because then he doesn’t have to carry as much paper around. “Large transactions require millions of Iraqi dinar. If I use foreign currency, I don’t need as much,” he explained. “But when it comes to daily transactions, I don’t mind using the dinar.”

As to his thoughts on the planned re-denomination, Amir had only questions: “Would there be a loss expected? Would the market be controlled to guarantee its stability?” he asked.

Government employee Sabah Daoud raised further questions: “Would the Iraqi dinar rise against the dollar? Would my salary be worth the same, with and without the zeroes?” He wanted to see more research on the impact of such a step on the average Iraqi citizen.

Currently the Iraqi government seems set on losing the extra zeroes, those digits that have become such a burden on the dinar. But the road toward this goal is a difficult one. And it is just one stop along an even longer road, the one leading toward prosperity and steady, stable economic growth for Iraq

[kinglizzy99]

dhill,

From what I have learned, BondLady usually deconstructs and explains the article...it's all good...

[cgbrown]

She makes a good point about the inflation. I have a feeling that it is creeping higher than the CBI is letting on. I can't imagine that Shabbs would let it get back out of control, as the CBI has worked so hard to drive it down and stabilize the currency. It would seem that the RV has to take place soon, or all that work will come undone. IMO. Go RV!

Why on God's green earth , would you think a government agency would keep things from it's people.

[tnl5338]

You cant argue bondlady she ties news links to everything Go Bondlady

[Zemaduvant]

She even said in the post she was breaking it down line by line..