External Borrowing .. Reducing The Value Of The Dinar .. Printing The Currency .. Reducing Salaries .. That Is, Ways To Overcome The Financial Crisis !

[KDuesing]

8 minutes ago, horsesoldier said:

I think if there were any common sense to any of this, it’s definitely lost in the translation. Otherwise, all these people are blithering idiots . . . Which upfront explains quite allot.

What do you expect them to say? 

Something like we will revalue the currency next week?

[Laid Back]

7 hours ago, screwball said:

Possible..

Agreed 👍🏼

 

5 hours ago, screwball said:

Interesting timing 

 

Very interesting timing.

 

We wait and see.!

[wciappetta]

17 hours ago, GregHi said:

I expected to see articles saying they want to reduce the rate. Now everyone will be turning in their dinar for USD.. Then bam, the opposite will happen!

 

With the "Chunky" money issue, I think you might be on to something.

[64jaguar]

14 minutes ago, KDuesing said:

What do you expect them to say? 

Something like we will revalue the currency next week?

 

I tend to think it would only have an impact on the in Country Dinar anyways. All the Dinar that is out of the country is owned by someone. If they sell it, (the out of country dinar),  someone else is going to own it, so what's the difference? If Iraq is trying to persuade  the  citizens to convert it to dollars right now before any alleged decrease in value it may be beneficial to the CBI but from what I understand, there is not a whole lot of in country Dinar. This is why I think Iraq is giving us a line of crap. Reducing the Value doesn't help anything! If you read the articles that promote a decrease in value they never explain how it would help, imo  

[dinarham]

I went down an IMF rabbit hole where it talked about the latest IMF loan . It appears to me that this is a "bridge loan" . The IMF  is confident  that this bridge loan will be paid back, and shows that the IMF has great confidence in Iraq .

[ChuckFinley]

Thanks dinarham.  

[MyLadiesDaddy]

2 hours ago, horsesoldier said:

Otherwise, all these people are blithering idiots

Give a Blithering Idiot a 6 shooter with only one bullet in a chamber and SUDDENLY he will blow his brains out 

[DinarThug]

Osama Chalabi, former deputy governor of the Central Bank of (time) borrowing from the World Bank has negative effects on the economy of Iraq

 

May 3, 2020

 

The interview was conducted by: Saad Al-Sayegh Chalabi said Osama - Deputy Governor of the Central Bank of Iraq until 2003 that monetary prejudice Balaanaat   It represents the last gasp of the Iraqi financial situation , and that this should never happen.

And he added, in a short interview with Time in its international edition,   that borrowing from the World Bank has conditions Humiliating and future effects, and pointed out that the currency auction has special conditions that have been discussed with The World Bank delegation. 

In the text of the interview follows : ‭ ‬ ‭ 

‬Iraq is suffering from severe financial crisis due decline global oil prices and inability to secure salaries for employees and retirees Is Central Bank maintains Bkhozan reserves of hard currency ( dollar and gold ) to secure salaries?

The current monetary crisis was expected even before the emergence of the Krone Virus crisis and what we are in now, and in fact it is The Central Bank of Iraq still maintains a deposit of cash reserves in US dollars, as is well known to me Competent circles and it ranges from sixty to sixty two billion US dollars. A large proportion of this figure is a legacy prior to the occupation. The monetary reserve of states has special sanctity with the nations and a guarantee of the economic and monetary situation of the country and the prestige of the state. Precaution is difficult and not desirable and it represents the last breath.
As for gold, the central banks usually reserve a percentage of their cash capabilities with gold and deposit it with Swiss banks Deposit interest but low rates. Before the occupation, the Central Bank of Iraq had types of gold balances that were kept in its fortified safes Al-Majdat, who sold the siege period, bought from the world market, and another went special. I do not have accurate figures on the amount of its current balances, as it is one of the central bank’s characteristics.

Returning to the monetary situation, there are alternative methods other than compromising the cash reserve, which is borrowing from the World Bank This option is one of the traditional methods, but it is the largest in terms of negotiating difficulty and its conditions will be insulting in the future Until the price of oil returns to nearly its price before the current crisis. However, the crisis is inevitably coming, according to the schedule of oil revenues for the coming months, according to what Mr. Issam presented Chalabi in his important tweets a few days ago, as the nation will face a difficult time. 

Another important issue is happening now, where a new government will be formed and headed by a capable prime minister who knows how to recover Even if a percentage of the money stolen to pay for breath, the nation is now in danger and the danger includes everyone and will record history Here guys did. 

The continuation of the currency auction in the central bank, despite the stoppage of oil revenues and the accompanying smuggling of currency It has a significant impact on the rise in the price of the dollar against the value of the Iraqi dinar.

Currency auction The International Monetary Fund previously dispatched a representative three or four years ago to discuss an issue with me Currency auction. I remember that these meetings took place in the halls of the Intercontinental Hotel in Amman, where I briefed them on a formula The work of the auction, which raised the excitement of everyone about the bad process, because the subject of the auction must be dealt with wisely and in style sober. 

Recently been put for printing Iraq meet staff and salaries retired currency Is this true procedure So what has been done?

The idea of printing a currency is, I think, far and difficult because it will get a wave of higher prices for goods and services, as happened previously in the internal circulation and it is difficult to combine the two currencies , and we will go back to before twenty years " original Swiss " .  
And that this proposal is not useful under the current circumstances and has major economic repercussions that Iraq suffered from in A lot of the time, and this happened during a period when the necessities for the action were necessary, as the country was saved from dire results. It also does not give any support to external trading.

As a result of the end, the Central Bank of Iraq and since the year two thousand and three bear full responsibility for the outcome of monetary policy . The talk is many and many, but the result is what we are today and God is kind to worshipers. Thank you.

link

[DinarThug]

Member of Parliamentary Finance reveals the reason for the continued lending of employees despite the suffocating financial crisis

 

 

Economie 05/18/2020 20:53 84    

Baghdad today - Baghdad

 

Member of the Finance Committee in the House of Representatives, Ahmed Al-Saffar, revealed on Monday (May 18, 2020), the reason for the continued lending of employees by banks despite the stifling financial crisis the country is going through.

Al-Saffar said (Baghdad today), "The granting of advances to employees by banks, whether governmental or private, continues, because they relate to monetary policy determined by the Central Bank of Iraq," noting that "banks have capital and the granting of advances accompanied by financial benefits are being obtained."

He added, "He submitted a formal request more than once in order to reduce the interest of the advances, to pay greater slices of borrowing and contribute to moving the market in its various directions."

And Rafidain Bank announced Friday (01 May 2020) that the application for the advance of the 25 million dinars for employees of the endemic state departments whose salaries on the bank will be through the electronic platform.

The media office of the bank said in a statement, which it received (Baghdad today), that "the electronic platform has been launched for employees wishing to grant an advance of 25 million dinars, where the employee can apply through the mobile phone and through the following link   https://qi.iq/loans ". 

He pointed out that "the bank used advanced modern technology for this platform and employees should take advantage of this electronic technology to obtain the advance."

link

[DinarThug]

LINK

Minister of Communications: We are working on implementing a project to automate border crossings


 

18th May, 2020

 

On Monday, Minister of Communications Arkan Shihab Ahmed confirmed that the ministry will implement the border crossing automation project, which in turn will provide the state treasury with a lot of financial revenue

A statement of the ministry seen by "Al-Iqtisad News" stated that "this came during a meeting with the delegation of the Parliamentary Services Committee headed by MP Walid Al-Sahlani," noting that "the Minister of Communications gave a full explanation of the future plans of the ministry and the most important projects that are working to implement them during the coming period, which Among the most important of these is the International Gate Project, which will mainly work to eliminate Internet smuggling operations, maintain the security of the country, and preserve the financial resources of the Ministry of Communications

He stressed that "the Ministry of Communications will have an important and significant role in preserving the security of the country and the security of communications, eliminating electronic blackmail, preserving the social fabric and eliminating the electronic delusion that works to harm the reputation of our beloved country

And the Minister of Communications stated that "the ministry started to open the doors of joint cooperation with the Media and Communications Authority and that the ministry will implement the project of automating border outlets, which in turn will provide the state treasury with a lot of financial revenues and eliminate fraud, forgery and administrative routine

He added, "He has granted all the powers granted to public companies in accordance with Law 22 of 1997 in order to accelerate and start the process of construction and reconstruction in order to provide the best services to our esteemed citizens

[Laid Back]

“The idea of printing a currency is, I think, far and difficult because it will get a wave of higher prices for goods and services, as happened previously in the internal circulation and it is difficult to combine the two currencies , and we will go back to before twenty years " original Swiss " .  
And that this proposal is not useful under the current circumstances and has major economic repercussions that Iraq suffered from in A lot of the time, and this happened during a period when the necessities for the action were necessary, as the country was saved from dire results. It also does not give any supportto external trading.”

 

Very Interesting.!!!

 

Thanks DT

 

[DinarThug]

LINK

"Finance" counts Iraqi losses for every dollar low of oil prices

 

18th May, 2020

Parliamentary Finance Committee revealed, on Monday, that Iraq lost one billion and 350 million dollars for every dollar of low oil prices, while stressing its need for external loans to fill the reservation in the public budget.

Committee member Jamal Kuger told Shafaq News that "oil prices in the general budget of the Iraqi state were calculated at "$ 56", but that some of the price drop might be calculated as "$ 30" per barrel in the 2020 budget."

He added that "Iraq loses one billion and 315 million dollars annually for every dollar that comes down from the price of a barrel of oil," noting that "Iraq lost 26 dollars per barrel according to the previous estimate of the general budget."

Cougar pointed out that "the fiscal deficit in the public budget was about 36 trillion dinars before the oil prices fell, but now it has become more than this number," stressing that "Iraq does not currently have a solution other than resorting to internal and external loans to bridge the deficit in the public budget."

[DinarThug]

LINK

Iraq 2020: A Country at the Crossroads

 

18th May, 2020


Members of the IBBC Advisory Council have published a paper entitled 'Iraq 2020: A country at the crossroads.'

The purpose of this extensive paper is to provide insight and advice to the new Iraqi Government. It particularly focuses on the political and economic backdrop to the country, with analysis and solutions from a private sector perspective.

The papers authors are Professor Frank Gunter (lead author), Prof, Mohammed Al Uzri, Dr Renad Mansour, Mr Hani Akkawi, Mr Hussein Al Uzri, Mr Shwan Aziz Ahmed, and Mr Christophe Michels for the IBBC's management.

The paper provides a broad view on how to support Iraq's transition, with a call to action ranging from the requirement to engage the Iraqi people, to solutions for the banking and investment sector, defeating ISIS and responding to COVID and healthcare specific solutions, and how to develop the private sector with a regulatory regime for successful business.

The paper has been sent to the Prime Minister, to the President, the President of Parliament, a number of Ministers and officials.

Christophe Michels, IBBC MD, says:

"Iraq is facing a deepening multifaceted crisis without precedent in recent times. This article has been published in support of the Iraqi Government which has the opportunity to use this crisis to change Iraq and prepare it for a better and more prosperous future".  

13 page report -  Iraq 2020: a country at the crossroads - English

[DinarThug]

A Tip Of The Cap To Shabbi !  

 

     

 

 

Financial and Banking Adviser Professor Abdel-Nafea Al-Zirri for Time: The crisis will last, Iraq’s options are difficult, and the solution will be in an authorized economic council. On a round table

 

 

The interview was conducted by: Saad Al-Sayegh

April 26, 2020

 

The financial and banking expert, Professor Nafie Al-Zirri, revealed huge economic failures that cannot be covered using   economic patterns And the current management of the current, and that the country needs urgent remedies, including the establishment of a higher economic council on A round table with effective powers and decisions in force, and Al-Zuhri is a banking and financial consultant and an Iraqi professor In banking and finance.  
He served in Iraqi universities and research centers for three decades  and now works at a Jordanian university until he returns Oil prices will do great harm to economic and financial frameworks in the country with a clear unilateralism in the economy. He added, in an interview with Al-Zaman newspaper in its international edition, that it is The depletion of financial resources will continue in the future, and the economic situation in Iraq will remain unstable, if management changes remain Political, economic and financial The country's cash operates in the same current fashion. 
He called for reducing salaries, especially special grades and excess spending, in the context of measures to be taken to reduce harm On the country. 
Al-Zirri suggested that the next government would resort to borrowing from the World Bank or the Central Bank in the current period Because there are no options before it, as the current economic and financial policies will put the next government in place In front of this option, which will increase the proportion of the net debt burden on the government, which will bear the results of the citizen in the future . 
The consultant Al-Zirri stressed the necessity of activating and implementing the anti-corruption system and recovering the stolen or possessed funds Certain. In the text of the interview follows : ‭ ‬ 

... Iraq is one of the countries that was greatly affected by the drop in world oil prices due to the Corona pandemic It will stop the commercial, financial and economic movement in Iraq. What is your assessment of that? ...

Iraq received significant revenue from the sale of oil, estimated at more than one trillion dollars, which was not invested in any way A sound economist is accompanied by a decline in the performance of the economy. Rather, financial and administrative corruption and mismanagement have played a role Great in deepening this great burden. The unemployment rate has risen to more than 30% ( and this ratio varies between provinces )On the one hand, and the existence of inflationary pressures, on the other, the most profound economic and social problems, which constitute a challenge Great for comprehensive economic and social development. The Iraqi economy has become among the tough options in fighting unemployment, inflation, administrative and financial corruption. Sagging successive governments and mismanagement at the center and provincial levels, not to mention the failure of industrial production systems Including agricultural and waste in human, natural and financial resources. Therefore, the containment of these repercussions became not an easy or easy matter in the light of quotas and corruption; this requires A true political administration for Iraq is based on wisdom, efficiency, and logic to emerge from this long-running crisis.  Events came recent decline in oil prices due to international political and economic conflicts , including Fsad oil supply;   then followed by the occurrence of the global epidemic ( Corona ) ; led to a decline in global demand for oil On the one hand, with the increase in the conflict, which resulted in an increase in the oil supply, as we indicated, it led to a significant decline Surprisingly, oil prices have resulted in a significant drop in oil revenues Iraq     ( which accounts for about 90 % of its revenues )It has contributed to the deepening of the crisis. This all led to an increase in the public budget deficit, which is estimated at more than sixty billion dollars within the budget 2020 . In addition, there are very modest alternative resources in the contribution of non-oil sectors to GDP And the achievement of financial resources; this puts us at a critical juncture, which will have economic, political and social consequences Do not thank her in Iraq. 

We have become the employees ' salaries close to 4 billion dollars a month; this means that the oil revenues , according to The current prices will cover approximately one third for a period of only three months. Not to mention the dumping of the Iraqi market with goods from various countries of the world, especially the neighboring countries; Almost completely local industrial production with the deterioration of the conditions of the agricultural sector despite the availability of water and fertile land. All of this creates pressure and drain on the hard currency reserve.

The bottom line . Iraq will suffer from a host of problems and challenges, and it will swirl in a whirlpool, which is held hostage by chaos, corruption and misfortune Financial, economic, and even political management, under successive flaccid and weak government administration.

... Designated Prime Minister Mustafa Al-Kazemi faces a major economic crisis that will limit his ability to implement his government program for a while He assumed the premiership. What is the way to face this crisis? ...

He will face the next prime minister - designate ( Mustafa Kazmi ) several crises , real deep; deepened Its roots during the past few years, including a major economic and financial crisis in addition to the unemployment and inflation crisis Recession, where unemployment will remain an imbalance in the human security system in Iraq in light of the increasing population Poor economic and financial planning and rentier economy remained the only provider Not more than 1% of available employment.   Since the Iraqi economy is the yield economy , which depends on oil revenues, making fiscal ( especially spending power )Highly affected by the decline in current oil prices, which will affect spending on development projects. This oil shock will affect the structure of public expenditures, and above all, investment expenditures in a way Deep and clear, which will deepen the economic recession and unemployment and constitute an economic and social instability in addition to the existence Political chaos originally. It will also adversely affect current expenditures, but its relative importance will remain very high by comparison With investment expenditures; for this reason, the depletion of financial resources will continue in the future and the economic situation in Iraq will remain unclear Stable, if the   state's political, economic, financial and monetary management variables remain operating in the same current pattern.

... In the budget 2020 prepared by the government of Abdul - Mahdi article before falling oil prices and the fiscal deficit is estimated at 40 billion. What will be the next mechanism that will be followed by the Al-Kazemi government? ...

Iraq has many economic non - oil resources ( natural, human and financial ) if It exploited efficiently ( as the efficiency of government management of the economy   appear under the scarcity of resources )  Where the government can work to activate and develop non-oil income sources and find hedging means from This would make public revenues safer, more stable and more independent than unilateral domination of state treasury resources. Activating the development of the agricultural sector, both plant and animal, with interest and focus on manufacturing industries in small industries Medium and even large and the adoption of a policy of import substitution in the current and upcoming period; would stimulate development and creates significant financial resources to the state treasury ( that successive governments have neglected the supply side , a production and investment )As well as interest in the tourism sector. The next government should set a future hedging policy that will address future imbalances in the nation's public resources. It also requires the rehabilitation of projects and companies that existed and neglected ( due to war conditions ) Which depends on the available local raw materials, which must be supported in order to enhance local production to meet the demand The market while reducing the dependence on the importer; rather, developing a strategy for future export purposes for these commodities Where its raw materials are available in Iraq.   It also requires reduction of current expenditures ( special grades and salaries Rafha salaries )As well as travel and Alaivadat administrative expenses and expenses ( rationalization of public expenditures ) down to the optimal use Available financial resources.   It also requires activating the general economic policies in order not to leave the burden of confrontation only on fiscal policy. Here, the private sector must be supported and investment opportunities stimulated to become an active participant in building development projects Economic support and providing all means of support for it; this should be in line with the restructuring of the body’s work National investment and its mechanisms of work, with its leadership assuming skilled economists who are competent and experienced in investment management.

... Will the next government resort to borrowing from the World Bank to meet its need for salary insurance and card voucher insurance? Supply and general services. What is the alternative to borrowing from the World Bank? ...

Yes, the next government will resort to borrowing from the World Bank or the Central Bank in the current period, because it is There are no options before it, as the current economic and financial policies will put Al-Kazemi’s government in front of this option Which will increase the proportion of the net debt burden on the government, which will bear the results of the citizen in the future. Here, I stress the necessity of activating and implementing the anti-corruption system and recovering the stolen or possessed property of certain entities . ‭ ‬ 

... The Central Bank of Iraq is managed by more than one political party, and the bank is subject to partisan quotas and imposition of ill-considered mechanisms In buying and selling hard currency, and this led to the bank not keeping a balance allocated to meet the emergency conditions ? ...

I have raised many issues about the independence of the Central Bank of Iraq and the role and function of the reserve on the one hand and financing the budget deficit The public on the other hand. This issue is one of the most contentious issues in the sense of removing influences or interventions from monetary policy decisions And fiduciary. It is necessary to make monetary policy and central bank measures even independent of fiscal policy.

... How is it going? ...

To be under the influence of the pressure of the blocs and parties that are in fact the executive branch, especially when the government is Weak; therefore, the factors affecting the independence of the central bank, which is the backbone of the system, must be identified Iraqi banker. The existing problem is the immaturity of relations between legislative and economic indicators on the one hand and the independence of the Central Bank of On the other hand, and therefore the need to address it. The appointment and dismissal of the governor and members of the council is by a decision of the government that implements its policies according to the pressure of the blocs and parties Influential.  The independence of the central bank is the independence of the administration and its ability to set monetary policy goals away from political pressure Partisan and sectarian interests and their external links. The problems of the Central Bank of Iraq began with the government when the government requested funds from the bank's reserves; the former governor of the Central Bank   ( Shabib ) , who resigned this was rejected as rejected style Auctions on the dollar and the influence of floating commercial banks from well-known political parties,which has led to pressures on it To his resignation. 

One of the documented studies on the independence of the Central Bank of Iraq shows that there is a weakness in the degree of independence, especially Appointing and dismissing the governor and the council. This indicates the presence of negative effects in the index of appointing and dismissing the governor and members of the council, as well as what is related to drawing And formulating monetary and credit policies, especially the policy related to currency auctions, and as a result of the current circumstances and restricting hard currency due to The decline in oil revenues from the dollar; the sale of the currency must be limited to both Rafidain Bank And the rational; and that commercial banks can take their share of these Banks in proportion to the volume of trade transactions.   
The fixed exchange rate system ( approved realistically by the Central Bank )It was in the interests of the heavily influential private commercial banks and helped to foreign exchange the hard currency and in favor of certain parties ( the activities of the hidden economy and state deep ) . The monetary policy adopted by the Central Bank of Iraq by selling the dollar in daily auctions on the pretext of valuable support The Iraqi dinar is an old traditional policy that is not fooled by professionals. 
The dinar values of support and stability of its value is achieved through the creation of a local commodity and service expenses to the market ( ie activation and support for the industrial sector and agricultural production ). 

... Where is the central role through its policies to support these sectors to create stability in the value of the Iraqi dinar? ...

The dollar amount sold has remarkably increased by more than 400% .   And documented studies have also proven that the continuing differences between the parties and the political blocs influencing their interests and implementation Certain agendas negatively reflected on this phenomenon. Therefore, I think it is necessary to stop dollar sales through the auction due to the decline in oil revenues from the dollar It is not logical to increase oil sales, decrease the proceeds of the dollar sale on the one hand, and keep the auction on Currency in this way that leads to depleting reserves of hard currencies. 

... Iraq lacks an integrated economic and financial council of expertise, competence, and integrity to develop economic policies to counter crises Future and avoid fiscal deficit. What is your assessment; and what are your proposals to get out of the crisis, in the absence of specialized economic and financial personalities? To develop an integrated economic and financial strategy? ... 

Certainly, the presence of an integrated economic and financial council of specialists with competence and experience is important for formulating strategies and setting The procedures to achieve this goal, provided that this council is in accordance with the round table until it is Each member has an active role in discussions and expressing opinions in order to diagnose problems and obstacles with full transparency Place and place the procedures subject to implementation and follow up and monitor their implementation

link

[DinarThug]

Overcoming the economic crisis

Monday 18 May 2020

Sabah Mohsen Kazem

 

Perhaps the far and near knows the Iraqi economic potential .. The multiplicity of wealth, the possibilities of the availability of the national technical workforce, and the personal preparations for development, this is what the Iraqi has known, topping all engineering, medical and intellectual fields in all the countries that remain 

In which.. 

Today, Iraq faces economic challenges that it can overcome, and here it is necessary to control spending, reduce waste of government money, and overcome the plight of low oil prices.

The current period requires redress by reducing the budget according to requirements and priorities, controlling border entry points, organizing customs tariffs and transit traffic in all land, sea and air fields, as well as revitalizing national industries whose primary materials are available in Iraq, supporting the Iraqi private sector by purchasing the product and marketing it to the neighborhood, and reviewing agreements Economic relations with the neighborhood, as well as regulating economic relations with the region with the oil law 

والغاز. 

Of course, the economic cycles that pass by the world every 10 years between decline, rise, inflation and economic depression require Iraq, and dozens of experts in the economy, to develop alternative plans, meaning emergency plans and emergency budget that follow international and local conditions, because we live in a region where all crises erupt 

when.. 

The occurrence of this significant drop in prices in conjunction with the serious illness Corona, and pushing Saudi Arabia in large quantities, and its oil supply in the world, here OPEC must balance between supply and demand in order to avoid deterioration in prices, if we know that the aggrieved party is Iraq and the group of exporting countries considering our economy is mono

the side.

She appealed to previous articles in (Economic Morning) to develop agricultural investment - religious tourism - and archeology - and the development of marshes, to find alternatives to total dependence and Oil market fluctuations . 

There are many experiences in the world in which economies have developed without the presence of oil, such as Singapore, in which the citizen is considered a global haven with more than 9 thousand dollars belonging to the citizen. It relied on developing the capabilities of its people ... and Iraq is more qualified with the topographical diversity of the North and its agricultural diversity among all our Iraqi cities...

Iraq has gone through an intertwined crisis, ISIS entry and the drop in oil prices in 2014 and bypassing that ordeal, yes there was borrowing from the World Bank to pay salaries, and of course these treatments and others are enough to overcome Iraq to the economic crisis .. and establish a new economic reality.

LINK

[Rochester]

 America prints money all the time, to get out of a financial hole. So why can't Iraq do the same?...just like the U.S.?

 

Because:

-America has the world's largest economy

-America has the world's best military

-America is the world's global police

-without America policing the world, international trade could not happen

-oil is a vital commodity, the world's economy would die without oil movement, America protects oil movement on the high seas

-the world has confidence in the American dollar

-much of the world uses the American dollar as their reserve currency

-because the world uses the US dollar as reserve, this drives demand for American dollars, makes them valuable

 

All these factors give America the ability to print far more American dollars, than common sense would say is possible or warranted. Iraq can't do that.

 

Most countries could not do what America does, printing it's way out of financial trouble. American money is off the gold standard, so it's worth is what people say it is, what they are willing to trade, for U.S. dollars. Because of these factors, there is a great deal of global confidence in the American dollar. And that's not going away, any time soon. Really, you know who supports the American dollar? This guy: 

 

This guy is the core of America. 

 

To "this guy" I say: 

 

Now think about Iraq. It has none of the advantages that America does. That's why Iraq must stick to economic principles that are much more conservative than America follows. No one around the world has confidence in the Dinar. Just printing more Iraqi Dinar would be the stupidest thing possible. The currency is not traded now. No one around the world has confidence in the Iraqi currency. Why would anyone want it, if the Iraqi government printed more currency that no one in the world wants? Printing more Iraqi currency at it's current value would destroy the Iraqi economy. 

 

How to back the Iraqi currency, so the world has confidence in it? Back it with gold, back it with oil, trade it internationally. I'm sure that as soon as Iraq complies with the "To Do" list that the world financial community has given the Iraqi government, they can trade their currency again internationally. Then large amounts of foreign investment can flow into Iraq, building up their economy. 

 

If Iraq prints more of it's currency, at it's present value, then it's done as a country...imo... That won't work, so I can't see that happening. I am not an economist, but have a bit of common sense. That's my two cents worth! 

[Floridian]

4 hours ago, wciappetta said:

 

With the "Chunky" money issue, I think you might be on to something.

 

Good thinking, WCiappetta.  

 

I didn't think about the "chunky money".

[DinarThug]

LINK

An Expert Is Surprised By The Low Profits Of Ashur Bank From The Currency Auction During 2018. Document

 

18th May, 2020

A banking expert expressed his surprise at the data shown by a document showing the apparent imbalance in the final accounts of one of the private banks, wondering, whether the banking system in Iraq works according to mechanisms that allow it to be a contributor to the construction and investment process, or is it only a means of achieving profits Bank owners with operations with many question marks.

The expert, who requested not to be named, told (Independent) that the documents he obtained confirms that the final account of the Assyrian Investment Bank for the year 2018 makes us wonder about the reality of the numbers provided by private banks to the supervisory institutions, and whether the banking system supervised by the central bank operates according to banking standards It is true that it accompanies banking work in the world, or is it only financial interfaces whose purpose is to inflate the capital of some families and influential parties.

He pointed out that during his review of the bank’s final accounts below, one of the data showed that the profits achieved by the bank as a result of his participation in the auction of currency sales during the year 2018 had reached (1.928.035) billion dinars, which is a small amount if compared to the nature of the auction of selling the currency, And the size of the amounts bought by the bank from the central bank, confirming that the amount of profits disclosed by the bank is considered small and deserves to be paused if we know that the difference in the bank’s sale of hard currency compared to the purchase price, it could provide it with no less than 10 billion Iraqi dinars per year.

The expert asked about the role of financial and tax control institutions on the banking sector’s work, both in private and governmental sectors, and whether the data provided by the departments of those banks is sacred and not negotiable, or is there a space for review and verification.

Compulsory reserve

On the other hand, the expert stressed, that there is a clear discrepancy between the obligatory reserve amounts imposed by the instructions of the Central Bank of Iraq and what is shown in the final accounts of the said bank.

And he stated that the central bank requires every domestic bank to put at least 15% as a mandatory reserve of all its deposits as cash in a separate current account, although it is in force in many countries that deposits are at 75% in order to preserve the rights of depositors, but the central bank The Iraqi decided to reduce the percentage to support the work of private banks, provided that 10% be deposited in the treasury of the Central Bank and 5% in the treasures of the National Bank, according to the circular issued by the Central Bank on August 23 2010.

He added, but what the data shows is that the deposits made by the aforementioned bank, which is one of the well-known banks in Iraq, do not exceed 3% of all government and private deposits, which makes us wonder whether the central bank has changed its policy in this direction or is it favoring the owners of private banks despite the experiences it has gone through. A number of these banks, which made them unable to pay the deposits of their customers, who incurred huge losses as a result of placing these banks under the trusteeship.

The role of private banks in development

The other side that the expert touched on relates to the extent of the participation of private banks in supporting investment and construction projects in the country, where the data shows that the credit facilities provided by the bank are less than six billion Iraqi dinars to finance investment projects, and this amount is small if we compare it with the facilities provided in the banks of neighboring countries for projects Investment, which is twice that amount, in order to move the wheel of investment and growth in those countries.

The expert continued by saying here we have the right to ask about the nature of the real work of private banks in Iraq, and whether they depend only on what you earn from profits through the currency auction and what you achieve from the interest rate on what you deposit with the central bank to achieve its profits or is it really contribute to building the economy of the country according to What are its goals.

And that this is the tip of the iceberg and as much as the document that was obtained made available. As for what was hidden about banking in Iraq, there is much to say.

 

                    

Edited May 18, 2020 by DinarThug

[NWGUY]

If they do reduce the value of the dinar, maybe a great time to buy more for a lot less!  

 

Buy low, and sell higher....everything is good in the world!!!

[ChuckFinley]

I will be BTTU - Backing The Truck Up, because a wheel borrow will be to small.