Popular Post Laid Back Posted February 13, 2019 Popular Post Report Share Posted February 13, 2019 Auction currency sale in iraq, the destruction of the economy of Iraq and the revival of the economy of Iran Bremer plans and Iran benefits and Iraq loses Researcher Shatha Khalil Auction foreign currency sale – the dollar was a law legislated and ordered by civil administrator Paul Bremer in 2004 and is the only auction in the Middle East, It has been one of the biggest challenges facing the Iraqi state, distorting public policy and destroying the economy. The auction has continued so far and has been exploited by influential officials and senior officials in the political process linked with Iran to smuggle and launder money from Iraq for the benefit of Iranian economy to finance the terrorism and facing American sanctions and for their own interests. Currency Auction is a complex, thorny and multifaceted topic, and many economists have differed about identifying the problem as a major ones and it is a new form of economic corruption associated with money laundering in Iraq, which has become a means of smuggling money from Iraq. In the Rawabet center where it has noted in the text “According to the investigation committees of the Iraqi Council of Representatives and international reports that $312 billion dollars have been wasted and looted over the past years, the proceeds of oil pumped by the Central Bank of Iraq to the markets, and most of them were transferred abroad. This is a very large number in a country suffering a suffocating economic crisis, the situation in the state of “wealth” has reached to borrow from the IMF to cover its expenses! Dr. Nabih Nadeem Al-Obaidi summarized in the working paper presented at the first conference of the Iraqi-American National Friendship Association on 5 January 2019, the seriousness of the currency auction in the destruction of the Iraqi economy and the extent of Iran’s benefit from it : As he said the currency auction in the process of money laundering and recycling in favor of Iran, and listed some of the analytical financial indicators that clarify the role of organized sabotage of this auction: • The Central Bank of the US dollar sales for the period (1/10/20041/10/2016) amounted to (408.875) billion dollars to cover the requirements of imports, while the real value of imports for the same period (61.3) billion dollars, while the value of the remaining difference of the amount (347.5) billion dollars is missing until the moment .. The question arises where it has gone? • In 2010, the Central Bank’s auction sales amounted to $ 36.2 billion. The report of Federal Board of Supreme Audit submitted to the Secretariat of the Council of Ministers indicated that the number of meetings held by the Central Bank for Auction recorded in the Central Report (242) while it was discovered after checking the statements of sales of the auction for this period of (212) meeting only, proving that there are (30) meeting for the sales of the dollar are missing with its statements and amounts and the parties to which the dollar was sold to .. What does that mean? Where did the money of these meetings go? • A “model” for measuring the auction on 6/11/2018 with a total value of sales (125,725,602) dollars for a total of (30) banks and financial institutions, and by adopting this figure as a default rate for 2017 to reach (45.252) billion dollars per year, while Trade exchange with Iran amounted (6.7) billion dollars, and the remaining (39.4) billion dollars are missing … Where it has gone? • Actual export capacity of Iraqi oil from the ports of Basra increased from 2.9 million barrels per day for the first quarter of the year to (3.560) million barrels, and then to (4,600) million barrels per day in the last months of the year (2018) (according to the announcement of the Minister of Oil) with a rate of 4 million barrels a day , and concerning the export prices , the export price rate for the period ( 5/1/ 2018 to 30/10/2018) reached about (70.713) dollars per barrel. Therefore, the value of resources for the year will reach about (101.826) billion dollars. • The rate of the sale of foreign currency (dollar) per day “amounted to (125 – 182) million dollars during the year (2018) and the minimum value of sales will total for the year (45.252) billion dollars, and thus will constitute the dollar sales of the Central Bank (44.44%) of the oil resources, which also constitute a rate of (261%) of the allocation of the Kurdistan region budget (7.1%) of oil resources, is this reasonable? •Is not this a drain on resources and smuggling of funds outside of Iraq and sabotage of the Iraqi economic system. • The documents issued by the Federal Board of Supreme Audit revealed – the Department of Finance and Distribution activity sent to the Secretariat of the Council of Ministers, that there are limited individuals and banks through which the process of selling and buying and smuggling of currency was carried out outside Iraq, including: 1. Al-Huda Bank 2. Al Tayeb Finance Company 3. Iraqna Finance Company 4. Al-Mithaj Finance Company 5. There are fictitious financial and commercial companies that do not have a headquarters in Iraq that carry out money laundering crimes by enabling them to open accounts in several banks. The question … For the benefit of whom, this destructive activity continues, which is subject to the influence of senior officials in the political process linked to Iran? Iran has banking and financial institutions and covers of individuals and institutions supporting and loyal in the financing of the economy and the expansionist extension and Iranian terrorism. The role of Iran’s sabotage and economic player in Iraq has become very clear, after the package of the US blockade of Iran, which is supposed to start the blockade of its mechanisms and procedures from Iraq to impose the encircle . Attempts by some “loyal” politicians to stop the currency auction implemented by the Central Bank of Iraq after it has become 180 million dollars a day failed, but their attempts were unsuccessful due to their boycott of organized corruption backed by militias and armed parties linked to smuggling networks inside and outside the country. The central bank said that the checking and to verify invoices are not within the jurisdiction of the Bank, but rather within the jurisdiction of the Department of Economic Crime of the Ministry of the Interior. In the light of this corruption and the looting of public money, Iraq has been classified for – two consecutive years – as the most corrupt countries and its bad effects have emerged on the already weak Iraqi entity. These are some of the negative repercussions that have emerged in political, economic, social and cultural life. • Destruction of the Iraqi economy. • Drain the central bank’s reserve of hard currency and gold bullion, which in turn affects local currency exchange. • The growing phenomenon of money laundering. • The instability of the economic situation, which directly affects the political situation. • Exchange rate fluctuation. • The Iraqi economy is subject to the fluctuations of the local market. • The Central Bank reserve in 2009 declined to 35%. • Loss of independence of the Central Bank of Iraq. • The gap between the official exchange rate and the market price widens. • Unemployment reached 39% and poverty reached 40%. • Balance of payments deficit and low production capacity. • The growth and spread of corruption and theft of public funds and weak social ties. Economists, including Nabih al-Obeidi, stress the need to stop the currency auction, which weakened and destroyed the Iraqi economy, and limit the investment and smuggling of sales of the dollar auction from the Central Bank of Iraq to Iran to support its economy in the face of US sanctions imposed on it. Based on the above, the economic expert Nabih al-Obeidi suggested the following treatments: – Cancellation of the decision of the sale of foreign currency and the instructions issued later on, and the appointment of the Office of Financial Supervision as a liquidator to review and check the contents of the auction and settle their accounts by the Office of Financial Supervision in accordance with the applicable general and legal rules in the liquidation of accounts for companies. -The Central Bank issued a resolution obliging banks and private financial institutions to adopt self-financing in dollars to cover their needs in banking transactions, and to cover bank accounts for documentary credits, remittances, deposits with foreign banks, withdrawals and remittances to the companies and individuals and within the limits permitted by the Central Bank. – Strengthen the control of the Central Bank on private banks and sections of foreign transfers and documentary credits to verify the issuers as accredited companies in the Chambers of Commerce and Industry of their countries, letters of guarantee and exporters banks and certificates of origin and examination of the third party inspection to verify the authenticity of imports. – Subjecting the accounts of private banks to the audit and examination of records and documents and financial lists similar to the government sector and ratification of it and submit the report to the Central Bank of Iraq with an exception from the law of private companies for their connections and financial transactions with banks and foreign financial institutions in order to tighten control on them and reduce the smuggling of funds to Iran and abroad. – The central bank should provide private loans to banks in dollars through the bank deposit reserve in dollars, by linking the borrower’s bank with the reserve of the other bank (bank loan to a bank) and by informing the lending bank and settling for its account in the reserve, all these credit transactions are in dollars only. – Taking all the observations and reservations received from the Office of Financial Supervision on the Central Bank and respond to them and discuss and take action on them by the Council of Ministers and the legislative authority. Reasons for Iran’s fear of stopping the auction of currency in Iraq: -The continuation of the auction contributes to revive the economic situation of Iran at the expense of Iraq by easing the economic embargo imposed by America on Iran and undermine it through banks and companies employed for Iran, whether real or fake. -The issuance of the new currency by the Central Bank is done under the supervision of the World Bank and against the cash reserve of hard currency – dollar – a basket of currencies, gold cover for the value of the national currency issued and with statements and documents documented equal to the size of the currency and its categories and numbers after examination and receipt by a committee in the Central Bank, The currency is not usually numbered by the printing press, but it is done in the central bank and if it is done in the printing press, it will be made in the presence of representatives of the Central Bank and documentation. -The reserve allocated to the national currency is subject to an assessment of the World Bank’s control and inspection. Thus, what is rumored about the smuggling of part of the new currency into Iran is incorrect; it represents a threat to Iraq by forging the new currency by Iran and pumping it into the Iraqi market through its agents of Islamic political party leaders and their militias who, through their real and imaginary companies, will buy the dollar from the dollar sale auction of the CBI. -The second threat If the auction is stopped, Iran and its influential agents in the political process and the government will flood the Iraqi market with the new counterfeit currency in order to reduce the exchange rate of the Iraqi currency against the dollar as a result of the increased demand for the dollar against the decline in supply on one hand, and the increase the supply for the national currency and the reduction of the demand on it on the other hand , this is promoted by Iran inflated it for the purpose of preventing the issuance of a decision to stop the auction, and dependence on collusive banks , which will stop financing imports on the pretext of insufficient funding to create economic chaos on the one hand, and pressure on those who are in the government and loyal to Iran not to respond to the US embargo on Iran, on the other hand. Sources: 1. Reports of the Central Audit Bureau on the Central Bank and observations and reservations about the currency auction for the years 2010-2018, Registrar of companies from the sites. 2. Ministry of oil, Sumo Foundation, quarterly and annual reports of production and export and contractual prices. 3. News agencies Translated by : mudhaffar al-kusairi 1 5 13 Quote Link to comment Share on other sites More sharing options...
jg1 Posted February 13, 2019 Report Share Posted February 13, 2019 12 minutes ago, Laid Back said: Based on the above, the economic expert Nabih al-Obeidi suggested the following treatments: – Cancellation of the decision of the sale of foreign currency and the instructions issued later on Yes, stop the auctions. 4 8 Quote Link to comment Share on other sites More sharing options...
jake21 Posted February 13, 2019 Report Share Posted February 13, 2019 Well, DUH!!! Quote Link to comment Share on other sites More sharing options...
jake21 Posted February 13, 2019 Report Share Posted February 13, 2019 Not messing on you jg1 1 Quote Link to comment Share on other sites More sharing options...
Donziman Posted February 13, 2019 Report Share Posted February 13, 2019 The stopping of the auction would imply they are a seperate entity and makes their on policy. {they claim this,but not true} Do we remember when an arrest warrant was issued for Dr Shabibi ? He said they were independent and Maliki sent him out of the country never to return. The auction will not stop. It is to easy for the men of power to steal from. IMHO 1 2 Quote Link to comment Share on other sites More sharing options...
10 YEARS LATER Posted February 13, 2019 Report Share Posted February 13, 2019 Something this important requires that a committee be formed to discuss at great lengths the ramifications of such a bold statement possibly causing a Crisis in the confidence of the financial leaders. A sense of urgency is called for and we should witness in the coming days a resolution. More news will will be available as this Crisis unfolds. 4 Quote Link to comment Share on other sites More sharing options...
madisonjar Posted February 13, 2019 Report Share Posted February 13, 2019 Can we second that motion? I mean we are shareholders in iraqs economy correct? if we all vote together does it count? just wondering. lol 3 Quote Link to comment Share on other sites More sharing options...
GreedyDinar07 Posted February 13, 2019 Report Share Posted February 13, 2019 I will be glad when this is all over..they dont want US bases..well good..they need to rv and take care of themselves...but this is Iraq and I just dont have a good feeling about this at all..all they do is talk ....hell, do something!! 1 3 Quote Link to comment Share on other sites More sharing options...
danielchu Posted February 13, 2019 Report Share Posted February 13, 2019 1 hour ago, Donziman said: The stopping of the auction would imply they are a seperate entity and makes their on policy. {they claim this,but not true} Do we remember when an arrest warrant was issued for Dr Shabibi ? He said they were independent and Maliki sent him out of the country never to return. The auction will not stop. It is to easy for the men of power to steal from. IMHO Then we will NEVER have a RV! 1 Quote Link to comment Share on other sites More sharing options...
jg1 Posted February 13, 2019 Report Share Posted February 13, 2019 1 hour ago, jake21 said: Not messing on you jg1 Ahhh, I know. Your All good. Understand the frustration too. Plan for the worst, expect the best! Say, $3.00🤡😝 2 Quote Link to comment Share on other sites More sharing options...
jake21 Posted February 13, 2019 Report Share Posted February 13, 2019 I'll take it Quote Link to comment Share on other sites More sharing options...
danielchu Posted February 13, 2019 Report Share Posted February 13, 2019 IMF Executive Board Concludes 2017 Article IV Consultation with Iraq August 9, 2017 On August 1, 2017, the Executive Board of the International Monetary Fund (IMF) concluded the 2017 Article IV consultation with Iraq.1 Iraq is facing a double shock arising from the conflict with ISIS and the plunge in oil prices. In 2016, real GDP increased by 11 percent owing to a 25 percent increase in oil production, which was little affected by the conflict with ISIS. This year, economic activity is expected to remain muted due to a 1.5 percent contraction in oil production owing to the OPEC + agreement to reduce oil production and only a modest recovery of the non-oil sector. The decline in oil prices has driven the decline of Iraq’s international reserves from $54 billion at end-2015 to $45 billion at end-2016. Fiscal pressures are ongoing, with the government deficit increasing from 12 percent of GDP in 2015 to 14 percent in 2016 despite the ongoing fiscal consolidation, due to weaker oil prices and rising humanitarian and security spending. The authorities have appropriately maintained the exchange rate peg. The simplification of documentation requirements implemented by the Central Bank of Iraq led to a decline in the parallel market spread to 6 percent in June 2017. Medium-term growth prospects are positive. Growth will be driven by the projected moderate increase in oil production and the rebound in non-oil growth supported by the expected improvement in security and implementation of structural reform. Risks remain very high, however, arising primarily from volatile security, political tensions, and poor policy implementation. The Fund is supporting Iraq through a three-year Stand-By Arrangement in the amount of SDR 3.831 million ($5.380 billion), equivalent to 230 percent of quota.2 Executive Board Assessment 3 Executive Directors agreed with the thrust of the staff appraisal. They welcomed the policies put in place by the authorities to deal with the shocks of the armed conflict with ISIS and the ensuing humanitarian crisis and the plunge in oil prices. While mediummdash;term growth prospects are positive, the mediummdash;term outlook remains exposed to significant risks, arising primarily from oil price volatility, unstable security, political tensions, and weak administrative capacity. Although performance under the Standmdash;By Arrangement has been weak in some key areas, understandings on sufficient corrective actions have been reached to keep the program on track. Against this background, Directors encouraged resolute implementation of the authorities’ program including continued efforts toward fiscal consolidation, strengthening the financial sector, and implementing structural reforms to promote private sector activity and improve the business environment. Directors noted the fiscal adjustment achieved in 2016, albeit at a slower pace than programmed because of weak control of investment expenditure and spending pressures stemming from the military campaign against ISIS and assistance to internally displaced people and refugees. They welcomed that this adjustment was achieved mostly through retrenchment of inefficient capital expenditure while protecting social spending. Directors welcomed passage of a 2017 supplementary budget and the authorities’ commitment to implement further consolidation measures in 2017mdash;18 to keep the program on track and ensure external and debt sustainability. They stressed that fiscal space needs to be found to enhance human capital and rebuild the physical capital of the country. Tackling the low level of non—oil tax revenue and very high level of public consumption would help create the fiscal room to finance growthmdash;enhancing investment. To strengthen financial sector stability, Directors encouraged the authorities to take measures to bolster supervision, and move forward with plans to restructure the statemdash;owned banks that dominate the banking system. They also encouraged strengthening the legal framework of the Central Bank, eliminating a remaining exchange restriction and a multiple currency practice, and accelerating implementation of AML/CFT and antimdash;corruption measures. Directors considered that the peg to the U.S. dollar, which provides a key anchor to the economy, remains appropriate. Directors stressed the importance of implementing structural reforms to improve the investment climate, diversify the economy, and achieve sustainable growth. They urged the authorities to overhaul public financial management, including by completing a regular inventory and paying down any arrears, and strengthening expenditure commitment and cash management to prevent the accumulation of new arrears. Directors also emphasized the importance of addressing weaknesses in administrative capacity and data provision. In addition, the implementation of the budgetmdash;sharing agreement between the Federal and Kurdistan Regional governments would put both governments in a better position to address shocks. It is expected that the next Article IV Consultation with Iraq will be held in accordance with the Executive Board decision on consultation cycle for members with Fund arrangements. https://www.imf.org/en/News/Articles/2017/08/09/pr17323-iraq-imf-executive-board-concludes-2017-article-iv-consultation 3 3 Quote Link to comment Share on other sites More sharing options...
GreedyDinar07 Posted February 13, 2019 Report Share Posted February 13, 2019 Elminate the currency practices already geesshh...Haven't these corrupt minister stolen enough...Politicians are the worst..!! 4 Quote Link to comment Share on other sites More sharing options...
10 YEARS LATER Posted February 13, 2019 Report Share Posted February 13, 2019 This has been in our face for years .... and yet .... better talk about it some more ???? This is a level of do nothing I’ve not ever been witness to .....EVER !!!! 3 Quote Link to comment Share on other sites More sharing options...
dinarbeleiver Posted February 13, 2019 Report Share Posted February 13, 2019 (edited) 2 hours ago, GreedyDinar07 said: I will be glad when this is all over..they dont want US bases..well good..they need to rv and take care of themselves...but this is Iraq and I just dont have a good feeling about this at all..all they do is talk ....hell, do something!! When the RV happens I was originally told there would be all sorts of bad news. Hang in there and dont cave till your bank account is showing millions Edited February 13, 2019 by dinarbeleiver 2 2 3 Quote Link to comment Share on other sites More sharing options...
GreedyDinar07 Posted February 13, 2019 Report Share Posted February 13, 2019 I hope so dinarbeliver... Quote Link to comment Share on other sites More sharing options...
Donziman Posted February 14, 2019 Report Share Posted February 14, 2019 Hopes.Dreams forgiveness.and no amount of American money will change the culture of the Iraq power structure. imho Quote Link to comment Share on other sites More sharing options...
dinarbeleiver Posted February 14, 2019 Report Share Posted February 14, 2019 1 hour ago, Donziman said: Hopes.Dreams forgiveness.and no amount of American money will change the culture of the Iraq power structure. imho I seriously believe what we see in Iraq is for the most part scripted, I think we will see the changes when the powers that be decide its time. What we see in their news and what actually happens behind the scenes are very different. I do 100% that when this event happens (RV) everything will come together 1 2 Quote Link to comment Share on other sites More sharing options...
Laid Back Posted February 14, 2019 Author Report Share Posted February 14, 2019 (edited) On 2/13/2019 at 6:46 AM, jg1 said: Yes, stop the auctions. Totally agree jg1👍🏼😊 The CBI with the help of IMF and World bank are working to remove IQD exchange control to move to an open market economy The issuance of the new currency by the Central Bank is done under the supervision of the World Bank and against the cash reserve of hard currency – dollar – a basket of currencies, gold cover for the value of the national currency issued and with statements and documents documented equal to the size of the currency and its categories and numbers after examination and receipt by a committee in the Central Bank, The currency is not usually numbered by the printing press, but it is done in the central bank and if it is done in the printing press, it will be made in the presence of representatives of the Central Bank and documentation. -The reserve allocated to the national currency is subject to an assessment of the World Bank’s control and inspection. Thus, what is rumored about the smuggling of part of the new currency into Iran is incorrect; it represents a threat to Iraq by forging the new currency by Iran and pumping it into the Iraqi market through its agents of Islamic political party leaders and their militias who, through their real and imaginary companies, will buy the dollar from the dollar sale auction of the CBI. Go CBI Go end of the auction Go international Go real market value Go purchasing power Edited February 14, 2019 by Laid Back 1 3 9 Quote Link to comment Share on other sites More sharing options...
jg1 Posted February 15, 2019 Report Share Posted February 15, 2019 4 hours ago, Laid Back said: Totally agree jg1👍🏼😊 The CBI with the help of IMF and World bank are working to remove IQD exchange control to move to an open market economy The issuance of the new currency by the Central Bank is done under the supervision of the World Bank and against the cash reserve of hard currency – dollar – a basket of currencies, gold cover for the value of the national currency issued and with statements and documents documented equal to the size of the currency and its categories and numbers after examination and receipt by a committee in the Central Bank, The currency is not usually numbered by the printing press, but it is done in the central bank and if it is done in the printing press, it will be made in the presence of representatives of the Central Bank and documentation. -The reserve allocated to the national currency is subject to an assessment of the World Bank’s control and inspection. Thus, what is rumored about the smuggling of part of the new currency into Iran is incorrect; it represents a threat to Iraq by forging the new currency by Iran and pumping it into the Iraqi market through its agents of Islamic political party leaders and their militias who, through their real and imaginary companies, will buy the dollar from the dollar sale auction of the CBI. Go CBI Go end of the auction Go international Go real market value Go purchasing power Thanks Laid back! 1 Quote Link to comment Share on other sites More sharing options...
Laid Back Posted February 15, 2019 Author Report Share Posted February 15, 2019 16 minutes ago, jg1 said: Thanks Laid back! Thank you my friend.👍🏼😊 1 Quote Link to comment Share on other sites More sharing options...
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