Kaperoni Chat 2/4/2012 -4pm cst

[katie45]

Kaperoni: Ok, So lets do a chat today about a few things.

Kaperoni: Last night on the conference call we discussed in legnth the currency auctions. If you have not listened to it, I think it was a real good call. It’s posted in the Announcement Tab.

Kaperoni: Few points to be made. Per the article, the CBI is making all banks conform to Basil Compliance. That means many of the people acquiring dollars through the auctions will stop. Basil requires documentation through a bank, these people don’t want to do that. They are money launders, some even Iraqi officials who have been stuffing there pockets. That will all stop now. Here is the article and quote…

Kaperoni: Central Bank required banks to disclose their customers to get the foreign currency - 02-02-2012

Kaperoni: "part of the duties of the central bank regulatory and supervisory and in accordance with the principles of the Basel Convention International that Iraq is a member is to know the customer who buys currency from the bank through banks to prevent any breaches that may affect the security of the state. "

Kaperoni: So unless you can prove where the dollars are going, your not getting them through the auctions anymore. That is a good news for above reasons. Now, the benefits.

Kaperoni: The CBI does not have to worry about there reserves being tapped into. Second, they are getting ready for international transactions.

Kaperoni: The bad news is the dollar is drying up. And a dollar black market is starting. We read in the article that some are paying 1230 dinars per 1 usd. The exchange rate as you know is 1166. So there is now a black market for dollars with a 65 dinar premium. Here is the article…

Kaperoni: Decline Altoman Iranian and Syrian pound raises the price of the dollar in Iraq - 03/02/2012

Kaperoni: Two quote…

Kaperoni: "rose to hit (on Thursday) to 1227 dinars per dollar, after the price of 1200 dinars per dollar," noting that the reason for the rise lies in the "pull foreign currency to Syria and Iran, by the imposition of international sanctions against them. "

Kaperoni: “Director of Banking expressed his fear of "the continuing high prices of exchange, and its negative impact on the economic situation in Iraq", adding that the new instructions of the Central Bank "will impact on the availability of foreign currency in the local market."

Kaperoni: Now, here is where it gets interesting. We know they have collected most of the larger 3 zero notes. And much of what is on the streets… 500, 250, 50s, are worn and burned, taped, etc. So this move forces Iraqis to banks accounts and debit or credit cards. It is IMO part of the process. More importantaly, towards electronic transactions and a paper trail…Here is an article…

Kaperoni: Iraq is progressing slowly towards electronic financial transactions - 01/02/2012

Kaperoni: Two quotes…

Kaperoni: “Director of electronic systems in the Ministry of finance Najwa happy news agency of Kurdistan (aknews) that "2011 not seen clear progress in financial transactions and electronic", stating that "the proportion of electronic financial transaction amounting to 65% which is good."

Kaperoni: “She said that "the work of electronic systems consistently provide but they require additional efforts in the period ahead to develop a culture of financial dealings and e-mail in governmental institutions of State services".

Kaperoni: Remember just a few weeks ago we saw the articles about the Iraqi credit card?

Kaperoni: Trade Bank of Iraq reduces the amount of insurance for the credit card and announces the imminent issuance of Gold Card - Monday, 23 January

Kaperoni: Quote…

Kaperoni: "the Bank issued for the first time in Iraq, the credit card {Anvent} with benefits and discounts global excellence, and will be in the near future issuance of Gold Card {Visa} for all citizens, but in dollars, in addition to issuing cards {MasterCard! Dedicated to university students, and uses of the Internet. "

Kaperoni: And this quote…

Kaperoni: The bank said in its statement that it "will be deployed ATMs in most halls Baghdad International Airport to withdraw cash from Visa Card, Master Card, world wars and in the currency of the dinar and the dollar."

Kaperoni: So it’s pretty clear, with the new regulations, they are forcing electronic transactions which means bank accounts, ATM cards, credit cards. Progress.

Kaperoni: Now, here is a great article today. For those who question if we know what we are doing, this article is reassuring. We stated for months that the CBI has laws that need to be passed. I think since Oct 2011. And everyone was looking for them at Parliament. Well today, low and behold one of them showed up…

Kaperoni: Parliament ends the first and second reading for (11) bills - Ali Abdullah - 04/02/2012

Kaperoni: Here is the quote….

Kaperoni: “He said: that the most important laws that have been a first reading at today's meeting is the official language of the draft law will be the introduction of the Kurdish language in addition to the Arabic language to accompany the currency in which the deletion of zeros in the time of the later date.”

Kaperoni: So were making progress. Just the first reading, but hopefully in days to come this will pass. We are still looking for a few more laws including the one that adjusts all the accounting records for loans, mortgages, etc. as well. So no RV tonight, or tomorrow, but starting to see light at the end of the tunnel.

Kaperoni: Stick to the facts.

Kaperoni: Done.

[Shick]

There will be an RV and the tunnel will illumine like the stars in heaven. Peace! GO RV GO!

[frankc]

Very informative. Katie, thx for posting this chat.

[dinartab]

Thanks

[powerpager]

Don't go to the light at the end of the tunnel !!!

STAY OUT OF THE LIGHT !!!

[Butifldrm]

Wish I could plus you katie 45, but system malfunction! I have always respected kaperoni. He is the first, to come up with the idea, that deletion of the zeros was actually pullin the three zero denomination off the streets. None of us know for sure, but I'm banking on his theory. Now as far as the laws are concerned,or should I say the news of the laws concerned.. I really don't believe we are privy to how many times a law is read, or the actual true history of the readings. I know for a fact, Iraqi news, released that, the budget has undergone the second reading twice, at least twice over the past three weeks. The GOI and the CBI know, we are watching the news like hawks. The internet is a great obstacle for them. If I were in their shoes with a main objective to disway speculation, I would think it was ok not to tell the whole truth and leave the rest up to the speculators imagination. Now, as we have seen over the past 3 years many of us have given up. Sold our stash of Dinar and got on with our lives,but I believe we are at the point the rubber is fixin to meet the pavement, and this thing could go down at anytime. Whether good or bad. Im holdin strong. I just hope I get to meet all my rich friends someday. JMO

[Gooserider67]

which one to get out of this dream????

[JUNKANOO]

Thanks

[Carrello]

Wish I could plus you katie 45, but system malfunction! I have always respected kaperoni. He is the first, to come up with the idea, that deletion of the zeros was actually pullin the three zero denomination off the streets. None of us know for sure, but I'm banking on his theory. Now as far as the laws are concerned,or should I say the news of the laws concerned.. I really don't believe we are privy to how many times a law is read, or the actual true history of the readings. I know for a fact, Iraqi news, released that, the budget has undergone the second reading twice, at least twice over the past three weeks. The GOI and the CBI know, we are watching the news like hawks. The internet is a great obstacle for them. If I were in their shoes with a main objective to disway speculation, I would think it was ok not to tell the whole truth and leave the rest up to the speculators imagination. Now, as we have seen over the past 3 years many of us have given up. Sold our stash of Dinar and got on with our lives,but I believe we are at the point the rubber is fixin to meet the pavement, and this thing could go down at anytime. Whether good or bad. Im holdin strong. I just hope I get to meet all my rich friends someday. JMO

Someday soon, ButifIdrm. See you then.

Thank you for the post, Katie!

Edited February 5, 2012 by Carrello

[Abarvets]

Katie thank you very much! + 1 to you!

[RodandStaff]

Katie... for a newbie I would say your a pretty heavy hitter! Good article of Kap's and good job bringing it!

Sorry, but my plus thingy is not working, so here is my invisible +'s for ya Katie..... +1,+1, +1, +1,+1,+1,+1, +1, +1,+1,+1,+1, +1, +1,+1,+1,+1, +1, +1,+1+1,+1, +1, +1,+1,+1,+1, +1, +1,+1,+1,+1, +1, +1,+1,+1,+1!!!

I think this really does explain a lot... they have to get Iraq up to speed with the rest of the modern world by going electronic... not that I like Big Brother creating a paper trail or anything like that, but it's a reality we have to learn to live with.

It does seem that things are coming to a head, somewhat quietly though... but all the same... "it is happening"... so yes... that light at the end of the tunnel is looking pretty good after being in the dark for so long. Come on boyz... git-r-dun!!!

GO RV Already Baby!!!

Edited February 5, 2012 by RodandStaff

[catone]

Thanks, Katie --

there are 2 more articles I read this morning on Going Global that make me feel that we're getting REALLY close (I don't know how to get them over here, or I would). One is about Allawi agreeing thru Talibani to cooperate and stay in the House of Representatives, so they have the necessary quorum.............LOVE Talibani! And the other deals with their necessity to get this done SOON, because of Syria and Iran trying to smuggle the dinar and/or dollars out of Iraq Both of these were legit reports from news agencies.............

If anyone can tell me how to get stuff from other sites to this one, please let me know????

Everyone have a wonderful Super Bowl day!!!!!

[Rome M]

The price rose from 1200 to 1230 dinar per dollar.......

In our eyes that's a fall, because more dinar per dollar means lower value of each dinar.

Now on the Iraqi hand, though, it is the other way around. If there is a black market for dollars and they used to get one dollar with 1200 dinar but now it cost them 1230 dinar to get a dollar, their cost has gone up.

It would seem the bigger the black market for dollars, the more they will pay for it. I hope this does not change the value outside of the black market.

Maybe an RV would end the black market because the dollar wouldn't be so wanted anymore as the dinar would be useable.

I'm not sure how this is going to play into our investment, guess we wait and see.

[katie45]

Looks like Kap and his crew was right.

Central Bank: the black market to dominate the Iraqi economy

Sunday, February 5, 2012 08:16

BAGHDAD / Baghdadiya News / .. The Central Bank of Iraq to the black market is the dominant economic transactions taking place in the country, in reference to find the application of the bank's decision to disclose

For trading in hard currency. Deputy Central Bank Governor Dr Mazhar Mohammad Saleh in a special statement / Baghdadiya News / he "has become clear that the black market is dominant on the Iraqi economy by virtue of economic transactions large witnessed by the market," noting that "when we asked the banks to bring instruments to find out who buys dollar has not come to us from sales of $ 300 million only three million dollars. "

However, Saleh said that "some dealings on the black market is contrary to the laws, but traders insist on hiding from formal institutions because of low culture, economic and tax evasion," adding that "it is regrettable to note that everyone prefers to work in the dark and away from light, and in Iraq there are dealers selling and buying millions of dollars but avoid opening a bank account of the definition of themselves. "

The Deputy Governor of the Central Bank that "a lot of traders entering the windows of the central bank through banks the names of others or using aliases or through a fictitious company, although some of them practiced business operations are correct, but there is a fear of openness with the official institutions, in addition to those who violate laws and engaged in illegal activities. "

The central bank took the decision to compel banks to disclose their customers who buy foreign currency, after what was known of the smuggling of foreign currency extensive to Syria and Iran after the economic sanctions the World, which increased demand for the dollar in these countries. / Finished / 26 / a. P

http://translate.google.com/translate?hl=en&langpair=ar|en&u=http://www.albaghdadianews.com/economy/item/3023-lDN%25D8%25A9-IkLn%25D8%25A9-blAjyo-bDAInAb-PeAk%25D8%25A9-AkAZHJAE-NAlIKAYOmA-IkO-AkAjbZHAD-AkIEAjn.html