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CNN. Broadcasting While Rolling Up To A Biker Bar On A Scooter With Training Wheels ! [bondLady] Welcome everyone! I would like to let all our new members know we now feature a 24 hour news forum. We have special threads set up with our special administrators player46 and oogie and bubbies with the afternoon and evening news thread as most know I bring the morning news in any where from 2 am on thru the late morning along with all our other posters and ms timmys coffee shop opens as she runs the news every morning at 6:30 cst am here in our chat room . Wake up and have coffee and news with us [bondLady] I'd like to welcome all our first timers here to BLC , we hope it won't be your last unless it rv's then see ya lol ,just kidding of course. We have put together an exciting chat for everyone. Shredd and Scooter, two very brilliant men will share their knowledge with us first. Welcome Scooter and thank you for being here at BondLady's Corner [scoooter] thank you BondLady ! [scoooter] so I reviewed some of the IMF data and it mostly sounds like it's aligned with how it's supposed to be . One of the big concerns as well as one or two more relate to the oil sector of their economy and the underutilization of the existing workforce. See Iiraq's workforce has a tremendous demographic for example when comparing to China , China's populace is retiring and that means their consumption power is going downward not upward. India and Iraq on the other hand have upward moving populaces whereby the majority of their populace are in the prime working age. ... [scoooter]Now why is that so important ? Because we want the middle class to develop and grow and grow and grow. That's why it's discerning to find that 90% of their revenues is coming from oil, remember, this is a country where agriculture used to be the largest part of their GDP. With that said -- when you see they haven't diversified as quickly as they should have it's concerning particulalry when we know that the oil business is being worked from the foreign companies . [shredd] Agriculture is 8.7% now [scoooter] Their revenues continue to climb and that's good their investment budget continues to roll between 40% 45% which is stout and hefty but I'm wondering why we haven't seen the impact of that investment. Now with that said -- their monetary base continues to expand . Their Net foreign assets of the CBI is between 65 - 70 Trillion IQD and that doesn't include the numbers sitting in the NY FED there's several accounts that haven't been disclosed which should, in theory, drop right into their reserves we hope so --- I look at the economic conditions and the word sustainablity and capacity those words become even more important and the reason that is well, because even if they were to RV anything they have to ask several questions will it or can it be sustained and do we have the capacity to support that value. now in terms of the federal banks those banks should have been DEVALUED 5 years ago [bondLady] AMEN [scoooter] the assets on those books are way overvalued . Why is this important well -- you're not going to see anything happen to the DINAR until those banks have complete transparency and their balance sheets accurate, there won't be trust from the international investor otherwise... just my two cents so -- that brings us to now ---- and the talk of recalibrating those two banks , it's a good thing I'm just stunned the international community hasn't demanded it sooner so , they appear to be at the same spot as before but the statements from the CBI are getting stronger for this move. [bondLady] Yasiri: restructure the Rafidain and Rasheed includes four axes .. And will support the banking sector 20-04-2013 01:14 PM Baghdad (news) .. According to a member of the Finance Committee MP / National Alliance / Abdul Hussain al-Yasiri, that the plan to restructure the Rafidain and Rasheed by the International Monetary Fund includes four paragraphs of major help to support and develop the banking sector in the country. Yasiri said (of the Agency news ): The plan to restructure banks government Rafidain and Rasheed developed since (2007) and formed through a committee headed by the central bank governor and finance minister and head of the BSA, in cooperation with the International Monetary Fund. added: that the committee began its work, but did not achieve positive results and important in then, but later formed a committee composed of general managers in banks and representatives of the Central Bank and the International Monetary Fund and began their movement in earnest for the support and development of the banking sector in the country. explained: that the plan includes four axes including restructuring operating banks and strategic restructuring and re-evaluation of assets from cash to banks , as well as re-accounts banks and audited by the external auditor. , and pointed out that the government banks lack the modern technology in spite of the introduction of some technological Kalptaqh Smart and others, but it needs to techniques more to keep pace with the evolution in global banks. / End / 8.'s. http://www.ikhnews.com/index.php?page=article&id=82008 [shredd] Scoooter can I throw a question at you? [scoooter] Yes [scoooter] the external auditor will be key [shredd] regarding the above article that you are speaking about, this re-evaluation of assets [scoooter] because it won't be accepted until PWC is satisfied the IMF won't be satisfied unless that report is positive and they have accuracy [scoooter] Yes that revaluation or devaluation it will be devalued ,it has to [shredd] right, I get that part....so the revaluation of assets.....refers to capital backing of these banks, right? [scoooter] the assets are overvalued significantly [scoooter] Yes the assets backing the banks , correct [shredd] ok, and this work seems to be nearing completion [scoooter] that's my understanding at least. yes, but it's been there since 2007 -- and they have those little itty bitty items to complete it's the details that keeeeeel ya [shredd] right, so with the economic picture in iraq, how do you see this coming to close since they are gov't banks? re: timing [scoooter] what will happen is a complete reboot of their banks those two banks do approx. 80% of the banking in that country and the reality is they don't have enough banks to sustain the populace right now nor do they have the capacity so the thought was to bring the international community and their banks in that's a great idea and I think that would be good but where do they find the qualified workers to work the banks ? So imagine you're in a economy which is about to explode, the pressure is building and building and then booooooom the "then what" question pops ! what do I do now -- if they don't have enough banks to support the populace --- how can they get the massive transactional type system to stir the economy ? See, what Iraq has the ability to do is stir several volcanic economic eruptions. oh yes volcanoes [shredd] good ones [scoooter] now, the previous plan was too have several economic eruptions in several key vertical markets one being Agriculture, public sector construction, etc...they have plans already to build those million homes and with the construction multiplier you'll get three times the play on the Dinar thus calling them economic eruptions. I really need to coin that phrase lol. Shredd -- there's a brain dump my friend [shredd] Scooter, you are right, the economic stimulus ripples will roll fast [scoooter] they will --- indeed. it's like demolition putting the right explosives int he right spot to demolish the building in this case. It's building and nurturing long term sustainable growth [shredd] exactly. I hear your point on the banking structure but I believe it is there, plus, banking capabilities outside of the state and govt banks will support the secondary market for example [scoooter] So they need to diversify that economy and this will draw more to the capital markets I mean rightj now Iraq's capital markets are running at 5% of their GDP while Jordan on the other hand it's close to 200% of their GDP [shredd] agreed . yes and we've already seen that starting....a new large fund just went to market [scoooter] and that's sustanable .Shredd exactly but what's even more important is the establishment of the bond market that bond market will help the government be liquid [shredd] oh yes it will [scoooter] and that's kinda sorta important [shredd] indeed... ie sovereign bonds [scoooter] Yes --- the primary bond market will be consumed by the internal companies like insurance companies and utility companies and they'll probably be offered at a nice fat rate too I mean % . yes [shredd] yes and secondary will be financial products [scoooter] and again, they'll realize the multiplier and it's effects will be felt throughout their economy [shredd] Hello everyone and thank you very much for joining us. I want to thank Bondlady, Miss Timmy and Scooter for their valuable input. [shredd] I wanted to touch on a few things with the hope that it will be to the benefit of our valuable members. First of all, in my “report card” post from yesterday, I quoted the below line from an article ****removed link to other site***** and in it was this quote: [shredd] The Iraqi economy saw one of the fastest growth rates globally in 2012. It grew by 10.5% to just over USD 100 billion and is set to grow by more than 11% in 2013. Beyond that, Iraq is expected to continue to record growth averaging 9% in the years to 2017. The Government’s fiscal surplus will likely average some 4% of GDP, in spite of heavy spending in public capital projects and the oil and gas infrastructure. [shredd] What I really like about this is the projection that Iraq is expected to boast a fiscal surplus averaging 4% of their GDP. What many people overlook is the spending that Iraq is doing. Yes, they are growing reserves and yes, they are pumping more and more oil out and yes, investment is growing, but guess what………it takes money to fully overhaul a country and the bills are stacked high. [scoooter] yes That's exceptional growth and on top of that they've curbed inflation at a controllable rate [shredd] yes [scoooter] and they did this -- from a lot of learning but they did this with using the auctions as a primary tool to control inflation i think that's pretty cool actually [shredd] yes and I will bring that up in just a bit.... [scoooter] what's also important to note is the residual funds -- the 4% remember [shredd] yup. takin the words right out of my mouth [scoooter] Iraq's budgets for the past 4 - 5 years have had two sets of books they've had a proposed and then another one called approved the delta in those two allowed for the parliament to have two sets of working books one allocated at one rate and the other still using the nominal rate of exchange. now the question comes to mind What and where and how are they going to use those excess funds the residuals ? Because think about it if the budget called for oil at 65 but the true actual price was 85 per barrel that's a whole lot of excess funds. Where did they go and how were they spent ? so it will be interesting to see the next PWC Audit or the BSA audit for the prior years [shredd] This is a real promising projection and with all of the growth taking place in Iraq, it makes sense. This stability from the financial perspective is key in the investment of capital-raising sovereign debt opportunities. We saw in the report card that Iraq’s non-oil sector is 36.2% which is not too shabby in my opinion. [scoooter] WOW thats stellar compared to where they were [shredd] I knew you'd like that. that's as of Feb this year [scoooter] I do indeed SWEEET that's killer, now their in striking distance of the diversification they need [shredd] So where the heck is the RV? We’ve heard from some that say until stability in the government is achieved or until the conflict between the CBI and the government is resolved, we won’t see an increase in the Dinar’s exchange rate. Well, let’s define the issue shall we? Three factors really are at play regarding the conflict between the government and the CBI during the last three years: 1. Independence of the CBI per the Constitution (and Central Bank Law) 2. The position of both Shabbs and Turki to not lend to the government 3. Growing size of international reserves [bondLady] unfrozen funds from all over the world [shredd] yes [scoooter] correct [shredd] Others have been focusing on the auctions as an indicator for where the elusive RV is. To clarify, the purpose of the auctions is to manage the exchange rate by controlling the supply. [shredd] Scooter, I'd like your thoughts on this part: [shredd] Some of you may not know this but when the auctions take place, two types of transactions take place; International transfers and cash payments. International transfers, which make the majority of transactions, are intended mainly to finance imports by the private sector. Cash sales serve to meet other financial needs such as payments for travel, medical expenses, etc. That all said, fluctuations in the sales on the auction floor are simply targeted transactions to manage the exchange rate differences between the street and the official rate. Don’t believe the hype that the auction results can tell us the RV is close. The only exception is once the Dinar is on a market-driven free float, the auctions will cease but by then, we will all know already that the Dinar revalued! [shredd] thoughts on that part Scooter? [scoooter] ok just absorbing a little bit. First the transactional based system in play. The iraqi's and the central bank have completely revamped those systems they are state of the art and will allow for full mobile technology to be deployed there's a reason for this but will hold off for right now. now these systems were there for several reasons but the population itself --- there were huge trends occuring and occuring quickly , one the Smart Card type of scenario it was modified to support those types of electronic transactions before the Iraqi's were primarilly a hard currency economy. So the new system was built for the Smart Card. The company that developed this stuff is out of South Africa and have a dynamite product . not only for the smart card -- supports medical, insurance, banking etc....but also handle the mobile technology what occurred with Iraq became liberated is the young population adopted cellular technology like crazy!!! With the adoption that occurred -- the banking systems needed to adapt to this now, with that said back to your question [bondLady] (all info related to smart cards>>> ****removed link to other site***** [scoooter] the auctions results and the free float and the value when more transactions take place whether they stem from mobile, or a smart card, or cash the adoption of those will stir usage by the populace to actually set up bank accounts. why is that important ? think about a young couple trying to purchase thier first house they start establishing credit and they do this more efficiently with smart cards and mobile techinology the more transactions they make the better and money just mulitplys throughout the economy. What was the question again? hmmmmmm but remember this is a cash society right now and they need to get people educated and they need to get the swirl of economic explosions occuring and they help facilitate this by providing tools to accomplish this goal [DogzNova] will the auctions show the RV [bondLady] the auctions don't show the true worth of the dinar so I doubt it [scoooter] No they help in Supply and faciltate control over inflation [shredd] right [shredd] I'd like to move into the free market economy topic [shredd] Lastly, I wanted to remind everyone about the goal in front of Iraq of ascending to the WTO. Like I had stated in an earlier chat that I refreshed today ****removed link to other site*****, Iraq must get to what is called a “free market economy”. A free market economy is a local economy where supply and demand calls the shots. The greater reality is the intervention by the government is rare. In a free market economy, exchange rates are not pegged (or managed) by the government but rather fluctuate based on the demand of the currency and especially in Iraq's case, the supply of the currency. [shredd] Scoooter thoughts? [scoooter] correct --- ummmm --- they desparately need to get the government out of the way and let natural forces come into play however, here's another reason for diversification. The government is spending and receiving 90% of its money from oil now -- how does that impact the local economy when all the oil jobs are farmed out to foreign workers. Tthe money isn't staying in the local economy and so what happens to supply and demand ? if the demand isn't there, supply will follow . So to relate this to the IQD you can follow the money trail and determine yourself my hope is that this will change and change quickly . ok -- does that make sense regarding supply and demand on the currency ? [campdav] How could Kuwait have the most expensive currency in the world and what is their economy outside of Oil? [scoooter] KU has several items that don't get discussed often enough, one is that KU population , it's small and they are educated and the money gets multiplied within thier country [campdav] 3 Million. yep 1/10 Iraq [scoooter] the other item they use a different equation to value their currency [campdav] Each KU $80,000 per year citizen [scoooter] the other GCC countries are looking to adopt this equation they moved from the peg to the dollor moved away to a more free market approach there's several other reasons for KU's delta but we'll get to that over time [bondLady] I have a couple of things to add per what shredd and scooter were talking about too. This was something I pulled from our archives here at BLC. Just to make you aware, sometimes to see the future or present situation you must look back in history or the past. The Iraqi dinar has all reasons to grow stronger,' says Prime Minister Source: BI-ME with Aswat al-Iraq , Author: Posted by BI-ME staff Posted: Fri March 5, 2010 7:01 pm IRAQ. Iraqi Prime Minister Nouri al-Maliki said earlier this week that the process to re-evaluate the Iraqi dinar has to do with economic conditions which have to be strengthened, reported news agency Aswat al-Iraq. "The Iraqi dinar has all the reasons to grow stronger thanks to an increase in revenues and development of the economy," Maliki said in response to some questions through the National Information Center. "The government would not rush matters but would rather work on finding all the guarantees to render this measure a success. The Central Bank of Iraq (CBI) is currently entrusted with drawing up a study on the whole issue and would give its decision soon," said the Iraqi premier. [bondLady] The Iraqi dinar's exchange rate is suffering from low value against foreign currencies as a result of decades of wars and economic embargo that brought the local currency's exchange rate to the rock bottom from three dinars per dollar in the late 1970s and 1980s to 3,000 dinars per dollar after the 1990 invasion of Kuwait, followed by a 13-year crippling sanctions regime. [bondLady] please take note of the date 3/5/10 [bondLady] The exchange rate fell even more after 2003 to reach 1170 dinars per dollar due to the CBICBI's policy of daily auction, in effect for more than five years now. The policy was lambasted by several economists on the grounds that these auctions do not give the real value of the country's local currency. [bondLady] The policy was lambasted by several economists on the grounds that these auctions do not give the real value of the country's local currency. http://www.bi-me.com/main.php?id=44880&t=1&c=17&cg=3&mset=1031 ****removed link to other site***** [bondLady] Like I said I brought these out of the archive crypts to show you the future plan here [tlm724] outstanding ! [campdav] BondLady Great points!!!!!!!!!!!! [scoooter] Exceptional points! [bondLady] and we're seeing so many things from 2 to 5 years ago finally coming to pass. I have a few more things to offer as well... shredd you or scooter have any coments per that article before i proceed ? [scoooter] Nope -- I think Maliki's comments are dead on [bondLady] Let me grab the next thing. Speaking of Maliki these words are his as well... PM: Iraqi dinar re-evaluation has to do with economic conditions Text size 28 February 2010 Iraqi Prime Minister Nouri al-Maliki said on Sunday that the process to re-evaluate the Iraqi dinar has to do with economic conditions that have to be strengthened. "The Iraqi dinar has all the reasons to grow stronger thanks to an increase in revenues and development of the economy," Maliki said in response to some questions through the National Information Center. "The government would not rush matters but would rather work on finding all the guarantees to render this measure a success. The Central Bank of Iraq (CBI)Central Bank of Iraq (CBI) is currently entrusted with drawing up a study on the whole issue and would give its decision soon," said the Iraqi premier. The IQD is in the forex market (un- marketable) It obviously will not... by Mark Duncan More Comments by the Community The Iraqi dinar's exchange rate is suffering from low value against foreign currencies as a result of decades of wars and economic embargo that brought the local currency's exchange rate to the rock bottom from three dinars per dollar in the late 1970s and 1980s to 3,000 dinars per dollar after the 1990 invasion of Kuwait, followed by a 13-year crippling sanctions regime. The exchange rate fell even more after 2003 to reach 1170 dinars per dollar due to the CBICBI's policy of daily auction, in effect for more than five years now. The policy was lambasted by several economists on the grounds that these auctions do not give the real value of the country's local currency http://www.zawya.com/story/ZAWYA20100301063801/ [bondLady] thats from 2/28/10 [scoooter] yep -- their whole middle class that was formed from the 50's to the 70's was completely demolished -- there was no consumption occurring in their economy -- hence the reason he's referring to economic conditions have to be strengthened [shredd] Scoooter yes but a hard number to define (strengthened economic conditions) [bondLady] I have another blast from the past for both Scooter and Shredd to look at it and comment about how it works in with the current news going on Our aim is to establish a forward market in Iraqi dinars in the near future,’ say finance officials Iraq plans to establish an interbank foreign exchange market and dinar forward market and to step up its treasury bill activity in 2010 to help plug continuing budget deficits and foster treasury and foreign exchange markets, the Central Bank and Finance Ministry said in a submission to the IMF. Iraq aims to develop foreign exchange markets outside the framework of dollar auctions currently conducted by the Central Bank, a letter of intent submitted to the IMF for a US$3.6 billion standby arrangement said. Iraq said it would not return to a budget surplus until 2012. ... Read More Link On Right “As our financing needs in 2010 will still be substantial, we will step up our efforts to mobilize domestic financing through the Treasury bill market,” Iraq’s Central Bank head and finance minister wrote. “To that end, we will conduct regular auctions, and refrain from cancellations, while allowing interest rates to be determined by the market. This will have additional benefits by determining a benchmark interest rate, while the development of a secondary market for treasury bills will allow banks to improve their liquidity management.” “They are going to shift to building a local market, they have ample cash, loan-deposit ratios are very low and they will benefit from oil,”Turker Hamzaoglu, emerging market economist at BoA-Merrill Lynch, told Reuters They have to develop a domestic bond market but it’s still baby steps, it’s still too early, it’s not even a frontier market,” he said, adding that Gulf Arab and Lebanese investors could be interested in Iraqi domestic paper. Central Bank Governor Sinan al-Shibibi and Finance Minister Bayan Jabor said in the letter to the IMF that the country planned to introduce a sales tax, as a precursor to a Value Added Tax, “in the coming years”. Iraq’s gross domestic product expanded by 4% in 2009 compared with almost 10% the year before, their submission reported. GDP growth would rise to almost 7% this year and 7.5%-8% in 2011 and 2012, they said. That improvement would be rooted in an increase in Iraqi oil output to 3.1 million barrels per day by 2012, from around 2.5 million bpd now, and exports of 2.5 million bpd, compared to just over 2 million bpd now. That outlook might be conservative following the signing of 10 multibillion-dollar deals with global oil firms to develop Iraq’s vast reserves. If all the deals work out, Iraqi oil capacity could soar to 12 million bpd in six to seven years. “The CBI will continue to be independent in the pursuit of its policy objectives. The CBI’s monetary and exchange rate policies will continue to be aimed at keeping inflation under control and safeguarding international reserves,” the submission said The banking sector is in urgent need of reform to foster financial intermediation and enable banks to contribute to the development of a strong private sector. With the help of the World Bank and other international agencies, Iraq has developed a banking sector reform strategy, it added. [bondLady] Iraq is committed to strengthening the management of international reserves by moving ahead with the implementation of new reserves management guidelines that were adopted in early August 2008. Iraq will follow the guidelines to diversify currency composition and establish appropriate duration and credit risk, build capacity for risk analysis, and work towards establishing a dealing room”. The IMF submission said Iraq’s Central Bank planned to create a foreign exchange market outside the framework of regular dollar auctions now conducted by the bank. The bank uses the auctions to set the exchange rate, which has been held at 1,170 dinars per dollar for many months. “To improve the functioning of foreign exchange auctions, we plan to develop organized exchange markets outside the central bank, including an interbank foreign exchange market,” it said. “Our aim is to establish a forward market in Iraqi dinars in the near future.” http://www.bi-me.com/main.php?id=45051&t=1&c=17&cg=4&mset=1011 ****removed link to other site***** BondLady] comments? You both covered a lot of this already as to their progress, I just wanted to show shabbibi said these things we see happening now 2-3 and 5 years ago [shredd] controlling inflation/managing exchange purpose of the auctions [scoooter] What will be interesting is to see what happens when they hit the OPEC limit of 4 mbpd [lightingcslt] Scoooter I beleive they there already [scoooter] That will be interesting because of Saudi influence and Iran [bondLady] They are right on the point for that too scooter [scoooter] Really [bondLady] 3.9+ yes [scoooter] I just say something that said 3.8 hmm sorry [bondLady] actually OPEC has given them an increase to export [shredd] yes they will be close by end of year [scoooter] really hmmmm-- that I didn't know -- I wonder where that oil will be refined ? [bondLady] they are in process of building there own refineries as well, huge ones, also they are piping it to near by countries to refine as well [bondLady] I'id like to move the topic to the remove the 000 from the dinar please and I have 2 last things per that and then ms timmy will setttle the guru arguement about Presidentual Executive Order 13303 [bondLady] Central Bank plans to raise zeros from the Iraqi currency 2010-02-07 15:06 Economic - of the Iraqi Central Bank plans these days on the implementation of the strategy to delete the zeros of the Iraqi currency and small face value and keep the cash value and purchasing power without causing any economic Atrapat may occur over this strategy. The Economic Adviser in the Central Bank of the appearance of Mohammed Saleh in a statement that the current year will witness the launch of this strategy, the Bank completed 50% of the preparations that are working on since 2005 .. Saleh pointed out that the strategy based on the principle of gradual substitution of the Iraqi currency with another is lower than in the nominal value, and pointed out that the positives of this strategy is that it will be less expensive and easier to trade. http://www.aljewar.org/news-21704.aspx http://****************.forumchitchat.com/post/Central-Bank-plans-to-raise-zeros-from-the-Iraqi-currency-5159515 [bondLady] note the date....2/7/10 [bondLady] They were ready 3 years ago but the people freaked so shabibi said I'll delay it until next year 2011 and again the people freaked ,scared of failure and Iraq has one shot to get this right ! The future of Iraq depends on that so I've noticed with Iraq everything with them takes 2 years! Unless they freak then they delay which is what they have done since close to 2005 Central Bank: It is time to re-evaluate the currency, commensurate with the price changes and the wage in the economy 19 2011 15:58 GMT Tuesday, 19 2011 15:58 GMT .. May not remain there is a need to act for this counter so quickly if applied to the central bank project by deleting three zeros from the Iraqi currency .. . Bank, which sets monetary policy for the country confirms that it is time to re-evaluate the currency to suit the changes in the wage-price and economy. appearance of Mohammed Saleh / adviser to the CBI: Iraq after five years on the verge of producing a large oil 6 million to 12 million barrels of Iraqi oil would be a regional power in the management of energy in the world and will be the proceeds of a large system and the current cash management system currency in this way is a product of phase lag like it or not needed reform the management of currency after five years claimed the block becomes large cash) Shops, banking companies were not enthusiastic about the project, which says that its application may cause economic problems or technical unnecessary at the present time. Shop owner Banking (Mo is the time because if Mistqr country's economy and stabilize exchange rates, buying and selling of the dollar Menkdr use the lifting of the zeroes) Shop owner Banking This thing we Menkdr TOGETHER we identify the issue depends on the application may show problems then the possibility of fractures disparity of individual things and things hobby art) As for the citizens, the deletion of zeros memory bring them back to the days of the power of the Iraqi dinar which is welcomed by some, while others appeared unconvinced by the possibility of its application Citizen (God, Kalash Aoki suggested raising of the Iraqi economy and brings us back the dinar money days before the God who commissions Tasirlh value and purchasing power and the States they are) Citizen (Is the same thing if the lifting of the zeroes is the dinar Maltna and even abroad Mahd originally received by) Citizen (For the lifting of the zeroes FD Shi logical because the allowance Maiasir trillion words become even billions of people Fhm) As for the economists Vitmonon The theme of the deletion of zeros will not make a difference in handling cash or in any way affect the Iraqi economy unless they take into account the changing value of exchange in relation to the dollar Ali gnathion NA / Economist: ( (This is an administrative process involving the central bank itself in the management of currency and the economy will remain only if the change rate of the Iraqi dinar for example, now is a dollar in 1180 JD permissible if Swoh means three whistle 118 or you will be 1.0 that Alukt if it has become one break zero dinar to the dollar means to improve the purchasing power of the dinar) [bondLady] And show the Iraqi Central Bank reservation of criticism and reactions that have been raised about the project to delete the zeros from the currency, noting that his project is based on a thorough study to serve the Iraqi economy will be the case ended, the Council of Ministers and House of Representatives. LINK [bondLady] comments? [scoooter] yea -- that's the hybrid type of model that would work introduce the new while market forces drive the value up because it will take them time to get and retrieve the larger notes they suck in all the big notes use them for interbanking facilities and transactions then send the smaller notes out to the populace [bondLady] taking note that this article is 2 years old March [scoooter] and it will be inevitable the value will be driven forward . yep -- I agree with what their saying there it makes complete sense [bondLady] they also just today posted a article about destroying the 000 notes as they bring them in as well [scoooter] there will be a lot of "soiling of notes" taking place, they will burn a lot of those notes and replace the liability with electronic funds [bondLady] lastly for me is the DFI fund set to expire from what transpired in 2011 per the DFI and debt owed and creditors and law suits. Here we are again 2 years later and its set to expire again on May 22, 2013 [bondLady] this is a heads up basically, a look through the past to see what to expect here shortly and whats been done to date Central Bank: Iraq Will Use the IMF to End the File of Commercial Debt 06/04/2011 11:48 Baghdad, April 6 (Rn) – The Central Bank of Iraq adviser said Wednesday that Iraq will use the IMF to end the file of commercial debt after the end of the Trusteeship internationalism on Iraqi funds in June next year. He said the appearance of Mohammed Saleh told the Kurdish news agency (Kaniwz) that “the Central Bank of Iraq will use the advice and the opinion of the International Monetary Fund and World Bank to end the file of commercial debt which is supposed to be resolved by Iraq through a clear plan.” He continued that “the Committee set up by Iraq to develop a legal study to prevent any danger to his money, and established a mechanism for coordination between them and the International Monetary Fund to prevent any violation of these funds and in accordance with the Paris Club agreement [bondLady] The Paris Club is an informal group of financiers from 19 countries of the world’s richest countries, notably the United States, Britain, Australia, Italy, Japan, the Netherlands, Germany, Ireland, provides service to cancel debt for debtor and creditor countries. The IMF had identified the names of those States, after alternative solutions have failed, with the change of methods of payment of outstanding debt. Mohammed indicated that “Iraq will continue to grant debt to commercial companies and businessmen who claim they are asking Iraq according to international action in the payment.” On 6 March last, the central bank that Iraq follow the high political level in the debt economy, it did not face legal problems, as announced on 23 February that Iraq paid the debt 3500 credit commercial value of $ 2.7 billion as a means to protect his money, foreign manipulation of the trading companies. It is hoped that Iraq shall submit to the UN Security Council a detailed report in May next looks for the most important pillars of the protection of Iraqi funds. [bondLady] Revealed the Iraqi Finance Ministry on the seventh of January last, the work of the Committee to Protect Iraqi funds abroad will be secret, to avoid the fictitious companies which Iraq claims it requests funds. The Ministry of Finance of Iraq, the first of last January that “the Commission on technical government took over the development of mechanisms to protect Iraqi funds in foreign banks, after the UN Security Council resolution mid-November last, who spent lifting of protection for the money to Iraq the end of June next . The UN Security Council voted unanimously in mid-January last three resolutions concerning the lifting of the embargo imposed on Iraq on the import of nuclear material for peaceful purposes, and cancel the oil for food program, also extended the immunity of and for the last phase compensation imposed under Chapter VII until the end of June / June. The former Iraqi president Saddam Hussein ordered the invasion of Kuwait in 1990, and the impact of sanctions imposed on Iraq from the international community and put under Chapter VII, which makes it a country threatening world peace and security. Included international sanctions prevented the import of chemicals, nuclear technology that could be used in a secret nuclear programs, chemical and biological weapons. Has allowed the United Nations in 1995 for Iraq to sell oil in return for food, called “oil-for lunch.” Allonan of Jafar, the Open: Wafaa Zangana http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http://www.aknews.com/ar/aknews/2/215456/&rurl=translate.google.com&twu=1 ****removed link to other site***** [bondLady] question.........does it affect us as investors one way or the other whether the DFI funds stay in protection mode with us or some other country or does it affect us if Iraq takes it back ? comments please [scoooter] the U.S. courts alone will open up a can of "whoop-axx" in the amount of $100 Billion if they aren't protected, this one is a tough one -- not sure how they are going to handle it [shredd] Scoooter what part? [scoooter] Well -- first the paris club doesn't include many of the middle eastern countries in fact their debt to their neighboring countries is almost equivalent to the paris club members now they've been paying that down considerably but the amount owed to other countries would be staggering if they don't protect those funds. jmo now I've been out of the loop of information for some time but I can't imagine the rules of engagement have changed that much [bondLady] they don't want creditors and law suits coming out of the woodwork to slap holds on it for sure [scoooter] here's the other item to consider those funds were confiscated in 1990 at what rate were they confiscated at ? [lightingcslt] 3.22 ? [scoooter] nope [shredd] Scoooter the Paris club in its design was brilliant and imo the consolidated plan for iraq's success contingent on their growth will fulfill its purpose [scoooter] some of them may have been [lightingcslt] true [scoooter] Yep -- it consist of the credit worthy nations of the world and they forgave 80% of the debt but the neighboring countries pretty much said NO WAY! so they've been working on that debt -- nation by nation [bondLady] it wasn't for lack of begging on Iraqs part [scoooter] and they've done a great job on that [campdav] Confiscated rate please? [scoooter] it varied in price I saw some from england at 2.51, I saw Egypt at 3+ , I saw some derivatives at 3.22 but it's all over the map [DogzNova] the IMF has the rate in 1990 SDR at April 30, 1990 2.46985 [scoooter] Saddam really really screwed his people on this [scoooter] Thank you Nova! ok -- I need to run unfortunately but I wanted to thank everyone here very much ! I have missed my friends here at BondLady's Corner, it's an outstanding group of people [DogzNova] Scoooter your welcome and thank you [lightingcslt] no thank you Scooter [tlm724] Scooter thank you very much ! [campdav] Scoots thanks Mate [bondLady] thank you so much Scooter ! We really appreciate you coming by and chatting with us and hope to do it again really soon [scoooter] You are welcome [bondLady] go timmy and thank you [tlm724] Let me begin with a link to Executive Order 13303 for your viewing pleasure http://www.treasury.gov/ ··· 3303.pdf As well as the link to President Obama's most current extension dated May 18, 2012 http://www.whitehouse.go/ ··· ion-iraq [tlm724] I want me clarify one point about Presidential Orders: The president can amend or retract an executive at any time. The president may also issue an executive order superseding an existing one. New incoming presidents may choose to retain the executive orders issued by their predecessors, replace them with new ones of their own, or revoke the old ones completely. In extreme cases, Congress may pass a law that alters an executive order, and they can be declared unconstitutional and vacated by the Supreme Court. So let me set the stage here. In May 2003 , the U.N. Security Council unanimously adopted Resolution 1483, which ended sanctions and endorsed the creation of Development Fund for Iraq, to be controlled by Paul Bremer and overseen by a board of accountants, including U.N., World Bank and IMF representatives. It endorsed the transfer of over $1 billion (of Iraqi oil money) from the Oil-for-Food program into the Development Fund. [tlm724] EO 13303 was created May 22, 2003 to protect the DFI (Development Fund for Iraq) which consists of seized and "vested" Iraqi bank accounts and funds seized by coalition forces and proceeds from the sale of Iraqi oil and natural gas . This EO basically protects this fund from any legal attachments and liens and also protects Iraqi oil products and interests . It also protects US corporations / persons from attachments as well. It basically provides an umbrella of protection against litigation and opened the door to investment in the country of Iraq for foreigners with this added assurance of protection and provides absolute legal protection for US interests in Iraqi oil etc.. I'll just use the United states as our example, it allows US companies to establish business's and invest in Iraq safely. Included in that is our right to invest also. That being said our investment took two steps forward without me really realizing it . In September 2003 CPA (Coalition Provisional Authority) #39 was entered into force thus allowing us to continue to invest in Iraq via our currency purchases. Let me quote just one item from CPA 39: [tlm724] 4) “Foreign investor” means (a) a business entity constituted or organized under the law of a country other than Iraq; ( a natural person who is (i) a national of a country other than Iraq, (ii) a stateless person not residing permanently in Iraq, or (iii) a national of Iraq residing permanently outside of Iraq; or © a business entity constituted or organized by any of the above under the law of Iraq; that is making or has made an investment in Iraq. http://www.iraqcoalition/ ··· ent_.pdf [tlm724] See there, foreign investor and a national of a country other than Iraq, that's us . Then in 2006 Iraq passes the Investment Law Number 13 of 2006 and revokes CPA #39 in Article 34 The (dissolved) CPA Order No. 39 of 2003 shall be revoked. http://www.iraq-lg-law.org/en [tlm724] IMO we are now covered under the Investment Law for the country of Iraq. And that is a win / win no matter how you look at it. There is no way Iraq will ever stop investment in their country and yes that includes us ! [bondLady] You bet it does [tlm724] Is it of consequence to us as investors if the EO 13303 is not continued after May 22, 2013 ? IMO No, I do not think it will effect us at all. Does it matter to Iraq ? Well I would think so considering there is over $18 billion US dollars in the fund. Iraq must protect these funds whether its an extension from the US or through negotiations with countries/persons which have legitimate claims against Iraq . [bondLady] love this part......These new banknotes led to a new industry**** of selling the new Iraqi dinar ******to oversea investors******** who*** hoped to profit**** from Iraq's new currency****** when the economy improved. *********** The provisional government of Iraq has made this legal,**********(and so did our President Bush, when he signed the presidentual order allowing all american citizens to be able to invest in iraq.. But the banknotes are exchanged at different rates by companies wanting to make profit. This is taken from wikipedia ..history of the iraq dinar [bondLady] link if anyone would like to read it in our archive http://www.****************.com/t35319-historyiraq-dinar [shredd] yes, this is so great to discuss and at this time too These new banknotes led to a new industry of selling the new Iraqi dinar to oversea investors who hoped to profit from Iraq's new currency when the economy improved. The provisional government of Iraq has made this legal [bondLady] so they passed investment laws just so we could do this currency thing and the Presidentual Executive Order 13303 and the Iraq government through laws passed, made it where we're good to go whether they resind the order or not. It doesn't matter were covered under the investmnet laws. So hopefully that puts all that sillyness to rest, we are grandfathered in ! [tlm724] BondLady exactly ! [bondLady] let me show one last article from today [bondLady] todays news Deputy: the need to control the formation of committees to destroy the old currency in the implementation of the project to delete the three zeroes 25-04-2013 12:27 PM Baghdad (news) .. Stressed member of the Economic Commission MP / National Alliance / Abdulabas Xiaa, the importance of the formation of committees control of all state institutions to pursue the process of destroying the old currency in the implementation of the project to delete the three zeroes from the national currency. said Xiaa (of the Agency news): The project to delete the three zeroes is one of the important projects and sensitive because it is linked to public money, process of implementation should be monitored and accurate to prevent fraud and manipulation and money laundering. said: that the practical measures to destroy the old currency must be under the control of the House of Representatives and government institutions in the country and with the participation of the media through the formation of committees to monitor , to prevent tampering and theft by some quarters. said: that the central bank gave a deadline of two years for the process of replacing the old currency currency deleted them zeros, to be handled together, that is the absorption of the old currency from the market so that it did not feel out of the citizen. http://www.ikhnews.com/index.php?page=article&id=82642 [shredd] they been saying the replacement process is two years [lightingcslt] Shredd yep there it is, thats how long you got to turn those puppys in. BondLady that art said it all imo [bondLady] and they been saying they were going to do it for 3 years. It's time and we are seeing all this happen thats why I took you all down memory lane [gaffi347] BondLady So they are a year late? [bondLady] thev have talked about it since 2005 gaffi [shredd] this article may get overlooked but it is a big piece to the puzzle .Weknow they will destroy as they are brought in AND that it is a TWO YEAR PROCESS. What does that tell us? Well, what it tells us the what WON'T happen [bondLady] lop [shredd] right we won't be left hanging out to dry with worthless dinar, that will be useless [bondLady] I just wanted you all to see it is time and the time is now and we're seeing it all happen ! Right Shredd and the new money has something like 33 security features. Why go to those extremes if your going to have toilet paper for money, not happening. No other country on the planet has that much, most powerful currency coming thats why and we're part of it . 1166 with 33 security features ? Our new $100 doesn't even come close to that much , no ones does [shredd] revalue, replace for two years, destroying as they go [tlm724] BondLady I want to say thank you to the best leader and team ever ! It all comes down to the truth ! [bondLady] thank you hun as a team there's nothing we cannot do or any problem we can't solve [shredd] The bottom line, dear members is this…….we are in a “when” situation and not an “if”. The wealth is there, the growth is there and the investment is there. These will all continue to grow. For me, this project of deleting the zeros moving full steam ahead is very exciting. Soon we will see proof of the lower denominations, soon we will discover more and more of the CBI’s monetary policy changes and soon we will see the dinar’s exchange rate change. What is interesting to watch for is the upcoming May deadline with the DFI funds protection as well as the growing demand for the dollar and how that may push forward or expedite the emergence of a stronger Dinar. I know it can get frustrating to wait but if you look at the bigger picture like I hope I’ve shown you, it is impossible to not be optimistic. My wonderful grandmother would tell me, “patience is a virtue” which is so stinkin’ true. Remember, this is not an “if”… this is a “when”. The Dinar has gained from 4000 to 1 already and the ISX is rapidly growing as well. Look at the big picture and down the road just a little bit and before you know it, the life change we seek will be right at our feet. I'd like to thank Scooter, Bondlady and Miss Timmy for the teamwork. Also, thank you to all of our visitors tonight! [lightingcslt] great job thank you all ! [campdav] Greatest chat to date.World record Heavyweight champs [bondLady] I would like to thank timmy , shredd and scooter as well and all who helped pull this awesome and informitive chat off tonight...applause and thank you all so much for being here. Thank you memebers for your patience and I hope all our new members will come back and not be a stranger ! We have enjoyed having everyone very much and thank you kindly !