The Central Bank of Iraq launches a package of measures to improve the performance of transactions related to the dollar

[Theseus]

16 hours ago, Dinarrock said:

No his or hers analysis is not completely correct, JUST BECAUSE SOMEONE SOUNDS EDUCATED ON A FORUM DOES NOT MEAN THEY KNOW WHAT THEY ARE TALKING ABOUT!!!

 

This person Theseus seems to be knowledgeable and puts together his or her thoughts extremely well HOWEVER Theseus DOES NOT even know what they are referring to regarding the practice of MCP which they have stated Iraq must stop using! In a nut shell it is trading with different countries USING DIFFERENT EXCHANGE RATES that exceed more then 2% and spreads WHICH IS A NO NO!!

 

That is what they want Iraq to stop doing it has ZERO really to do with them using the dinar and dollar inside the country!!  The only thing Theseus is correct about is Iraq is required to stop using MCP but again people do some research even Adam stating that the HCL must be done and then we will see the RV is his own opinion and a guess..however he has been right so far..lol. Here you go a quick read direct from the IMF website on what MCP is!! I have been in this investment since 2005 and have stuff on a couple of laptops saved that I cannot access because they are so old..lol 

 

Iraq is NOT going to ever come on how and state when they are going to add significant value to their currency ever!! All we can do is watch what they are actually doing not so much what their bs media says but you get the jist you kind of have to figure out which articles are bs and what’s not and typically you don’t know that until after the fact when they actually implement something they said they were going to do! 

 

https://www.imf.org/en/News/Articles/2019/06/07/pr19203-imf-executive-board-reviews-multiple-currency-practices-policy-and-considers-reforms

From your quoted link (a link i have pointed to in the past to show the IMF was reviewing the 2% policy). Define an exchange transaction. The exchange of one currency for another. Which is what I said previously. Ironic how the IMF backs me up in their own words. 

 

Quote

MCPs can arise from exchange transactions. An MCP occurs if action by a member’s authorities results in an exchange transaction on the member’s territory taking place at an exchange rate spread that does not reflect normal commercial realities. For spot transactions, the current policy establishes a uniform permissible spread of up to 2 percent for all countries; for non-spot transactions, the permissible spread is not quantified but it should not exceed the normal commercial costs and risks of the transaction vis-à-vis spot transactions. Over time, the purview of the policy has broadened to capture not only actions that give rise to actual exchange rate spreads in access of the permissible thresholds, but also those that have the potential to do so. 

 

[Theseus]

On 12/26/2022 at 6:18 PM, screwball said:

So since you so much wisdom explain how your theory of. 20,000 note works with coins that have already been minted in the 50,100 etc. you know the new Iraqi dinar coin minted and then taken out of circulation that was going to be released back in 2013

What happens when the zeros are removed? Here let me show you:

 

1,000 IQD note divide by 1000 becomes 1 IQD note comparable to 1 USD note

5,000 IQD note divide by 1000 becomes 5 IQD note comparable to 5 USD note

10,000 IQD note divide by 1000 becomes 10 IQD note comparable to 10 USD note

20,000 IQD note divide by 1000 becomes 20 IQD note comparable to 20 USD note

25,000 IQD note divide by 1000 becomes 25 IQD note no comparable USD note

50,000 IQD note divide by 1000 becomes 50 IQD note comparable to the 50 USD note

No comparable 100,000 IQD note as Iraq has said they would not print 100K IQD notes

 

See the picture now? And yes the US dollar bills are actually considered "notes" as is printed on the currency.

[Dretown39]

1 hour ago, Theseus said:

Dinar-Dollar exchange rate to be fixed for five years: parliamentary finance committee

15-08-2021

Dilan Sirwan@DeelanSirwan

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IRAQ

File photo: Bilind T. Abdullah/Rudaw

Also in Iraq

Iraq’s deputy parliamentary speaker calls for reassessed fiscal policy

Water levels rise again in Iraq’s second-largest lake

Iraqi President Rashid visits Nineveh province

Exhibition draws various Syrian domestic products to Baghdad

A+A-

ERBIL, Kurdistan Region — The dinar-dollar exchange rate will be fixed for the next five years, a member of the Iraqi parliament’s finance committee told state media on Sunday.

“The exchange rate will remain at this rate for the next five years,” Naji al-Saidi told state media.

According to Saidi, the government had three main reasons to devalue the dinar: to reduce deficit in the budget, to increase reserves, and to make domestic goods more competitive in markets.

In the 2021 budget law, the Iraqi parliament voted on setting the price of dinar at 1,450 dinars per dollar.

Iraqi state media announced on December 19 that the Central Bank would set the dollar at 1,470 IQD for the public.

The devaluation of the Iraqi dinar is a step towards reform and creating a “financial balance” that will revive the economy, Iraq’s Minister of Finance said at the time.

A member of the finance committee said in January that the devaluation will save the country around 12 trillion dinars in 2021.

The devaluation of the dinar struck the public hard as government employees get paid in dinar, and they would be able to afford less with their salaries given that many imported goods are paid for in dollars.

The spokesperson for Iraq’s Ministry of Planning told state media in April that the devaluation had caused inflation to increase by around 5 percent and that primary poverty indicators rose between 26 and 27 percent.

Iraq has been gripped by an economic crisis, exacerbated by a drop in oil prices and the global coronavirus pandemic, which has left many unemployed. The devaluation of the dinar only added to the financial burden on people.

The country has almost exclusively relied on oil revenues since the US invasion in 2003. In June last year, Iraqi Prime Minister Mustafa al-Kadhimi stated that the country currently gets 94.7 percent of its income from oil sales, a business that is also carried out in dollars.

Iraq’s poverty rate stood at about 20 percent before the coronavirus pandemic – but in November, the World Bank Group estimated the poverty rate in Iraq will increase by seven to 14 percent, calling on Baghdad to introduce urgent economic reforms.

At the time the devaluation was decided, influential Shiite cleric Muqtada al-Sadr voiced his skepticism of the measure’s ability to alleviate public suffering.

“The Central Bank and all other banks are prisoners of corruption and corrupters. The government and parliament must seek specialized methods to end this and liberalize it immediately. It is not,” Sadr tweeted on December 19.

Iraqi demonstrators took to Baghdad’s protest epicentre Tahrir Square on December 21 to air their discontent after the government decision to devalue the country's currency.

I'm confused. If the exchange is fixed why has there been a further devaluation of the dinar against the dollar? Why are the CBI discussing measures to maneuver the exchange rate of the dollar-dinar?

[Theseus]

27 minutes ago, Dretown39 said:

I'm confused. If the exchange is fixed why has there been a further devaluation of the dinar against the dollar? Why are the CBI discussing measures to maneuver the exchange rate of the dollar-dinar?

Because nothing is ever set in stone.

 

[WheresmyRV?]

28 minutes ago, Theseus said:

Because nothing is ever set in stone.

 

Very true with Iraq.

[screwball]

3 hours ago, Theseus said:

What happens when the zeros are removed? Here let me show you:

 

1,000 IQD note divide by 1000 becomes 1 IQD note comparable to 1 USD note

5,000 IQD note divide by 1000 becomes 5 IQD note comparable to 5 USD note

10,000 IQD note divide by 1000 becomes 10 IQD note comparable to 10 USD note

20,000 IQD note divide by 1000 becomes 20 IQD note comparable to 20 USD note

25,000 IQD note divide by 1000 becomes 25 IQD note no comparable USD note

50,000 IQD note divide by 1000 becomes 50 IQD note comparable to the 50 USD note

No comparable 100,000 IQD note as Iraq has said they would not print 100K IQD notes

 

See the picture now? And yes the US dollar bills are actually considered "notes" as is printed on the 

 

 

why do they need a 20,000 note when they have coins already minted in lower denominations? 

[Dretown39]

1 hour ago, Theseus said:

Because nothing is ever set in stone.

 

Which means that the White Papers is not critical or important. So then this stuff can be disregarded and the RV can happen at anytime and not 2-4 years away! Got it!

[screwball]

8 hours ago, Artitech said:

r! I like to think it will be!! Like I say, we will know by the middle of March 2023 if we are in for another dead year or not! Which

 

3 hours ago, Theseus said:

Cabinet approves the White Paper for economic reforms

 

 14 Oct 2020 - 12:30 pm

 

The Cabinet held its weekly meeting on Tuesday under the chairmanship of Prime Minister Mustafa Al-Kadhimi.

At the start of the meeting, the Minister of Health presented a detailed report on the latest health developments in Iraq and the government efforts to contain the spread of Covid-19 and reduce infection-rates throughout the country. He also  outlined the ongoing national health awareness campaign advising citizens to continue to remain vigilant and follow official health guidance.

The White Paper

The Deputy Prime Minister and Minister of Finance presented the final report from the Emergency Cell for Financial Reform in Iraq which outlined a number of key measures to tackle the immediate financial crisis facing Iraq.

The Deputy Prime Minister and Minister of Finance then briefed the Cabinet on key elements of the White Paper for economic and financial reforms which aim to tackle the dangerous and serious problems facing the Iraqi economy which have accumulated over many years.

Following extensive discussions, the Cabinet voted to approve the White Paper.

Other decisions

The Cabinet discussed other items on its agenda, and decided to:

• Authorise the Ministry of Transport to enter into negotiations with the Alstom-Hyundai consortium of companies regarding the Baghdad suspension railway project
• Direct all ministries and government agencies to suspend the collection of principle debts owed by farmers, and to cancel all late payment fees, with the repayment of debts becoming due again once farmers have received their payment from the government
• Request farmers who have sold strategic crops (wheat, barley, rice and corn) to government agencies to open accounts at the Agricultural Bank
• Direct the Ministries of Trade and Agriculture to release the money owed to farmers to their accounts at the Agricultural Bank

So did they factor in a global currency reset into his program….what about Saudi Arabia and Iran joining BRICS and moving to gold backed currencies, I think this white paper is Shite paper…

[screwball]

8 hours ago, Artitech said:

, we will know by the middle of March 2023 if we are in for another dead year or not! W

 

8 hours ago, Artitech said:

There is a lot of great information and moves being made in Iraq! Iraq has made all the necessary moves for the IQD to RV! This is a known fact. Now we are in the phase of when are they (CBI) going to make a rate change!!! PERIOD! We will see!

100% 

[screwball]

2 hours ago, Theseus said:

Because nothing is ever set in stone.

 

This comment alone has just defeated your own argument? What about global currency resets where over 70 countries have agreed to move to BRICS? Oil will no longer be sold in USD, it will be sold in their own currency! 

[screwball]

Does this mean white papers are not set in stone? Hmmmm

[screwball]

13 minutes ago, Dretown39 said:

Which means that the White Papers is not critical or important. So then this stuff can be disregarded and the RV can happen at anytime and not 2-4 years away! Got it!

Boom!

[keylime]

10 hours ago, Dinarrock said:

That’s the problem we ARE NOT VOTING IN THE RATS!! They keep stealing it over and over America has become an absolute joke!! So Keylime is correct all the corrupt will continue to do whatever they want whenever they want. No I don’t believe the US dollar is going anywhere either this finds all the corruption! Only GOD can intervene and change what he wants it’s far too late for us to change anything the corrupt are the only ones that have this thing down to a science!

Amen! ONLY GOD!!!!!

[Theseus]

3 hours ago, screwball said:

 

So did they factor in a global currency reset into his program….what about Saudi Arabia and Iran joining BRICS and moving to gold backed currencies, I think this white paper is Shite paper…

KSA has not even applied to be a member of BRICS. KSA is not even a member of BRICS. Although they have expressed interest. Expressing interest does not mean they are member. Once again you go throwing out things off the top of your head. You do no research. The onus is on you to show this forum KSA is a member of BRICS. Once again you have no credibility. 

 

Iran only applied in June 2022. Two years and a half years after the implementation of the White Papers. Iran is not a member.

 

 From an article on November 9, 2022

 

The Russian Foreign Minister, Sergey Lavrov has stated that ‘over a dozen’ countries have formally applied to join the BRICS grouping following the groups decision to allow new members earlier this year. The BRICS currently includes Brazil, Russia, India, China and South Africa.

 

It is not a free trade bloc, but members do coordinate on trade matters and have established a policy bank, the New Development Bank, (NDB) to coordinate infrastructure loans. That was set up in 2014 in order to provide alternative loan mechanisms from the IMF and World Bank structures, which the members had felt had become too US-centric. The Asian Infrastructure Investment Bank (AIIB) was set up by China at about the same time for largely the same reasons and to offer alternative financing than that provided by the IMF and World Banks, which were felt to impose political reform policies designed to assist the United States in return for providing loans. Both the NDB and AIIB banks are Triple A rated and capitalised at US$100 billion. The NDB bank shares are held equally by each of the five members. In total, the BRICS grouping as it currently stands accounts for over 40% of the global population and nearly a quarter of the world’s GDP. The GDP figure is expected to double to 50% of global GDP by 2030. Expanding BRICS will immediately accelerate that process.

Concerning a BRICS expansion, Lavrov stated that Algeria, Argentina, and Iran had all applied, while it is already known that Saudi Arabia, Türkiye, Egypt and Afghanistan are interested, along with Indonesia, which is expected to make a formal application to join at the upcoming G20 summit in Bali.

Other likely contenders for membership include Kazakhstan, Nicaragua, Nigeria, Senegal, Thailand and the United Arab Emirates. All had their Finance Ministers present at the BRICS Expansion dialogue meeting held in May.

Edited December 29, 2022 by Theseus

[keylime]

6 hours ago, Dretown39 said:

I'm confused. If the exchange is fixed why has there been a further devaluation of the dinar against the dollar? Why are the CBI discussing measures to maneuver the exchange rate of the dollar-dinar?

It is fixed. And they decide when to fix it again whether lower or higher. They determine the value. The value is fixed. However, on the black market they change the rate how it suits them or a reaction to what the CBI is doing. So now because of that discrepancy the CBI is coming up with ways to get that under control while deciding if they are going to change the fixed rate again.

[Dretown39]

2 minutes ago, keylime said:

It is fixed. And they decide when to fix it again whether lower or higher. They determine the value. The value is fixed. However, on the black market they change the rate how it suits them or a reaction to what the CBI is doing. So now because of that discrepancy the CBI is coming up with ways to get that under control while deciding if they are going to change the fixed rate again.

Thank you. This is a much better explanation!

[Theseus]

Even if Iraq goes through with 1% increase per month, from the current rate, it would not be until Aug 2024 before it got back to the rate of 2020.

[Theseus]

4 hours ago, Dretown39 said:

Which means that the White Papers is not critical or important. So then this stuff can be disregarded and the RV can happen at anytime and not 2-4 years away! Got it!

Wrong. If you read the articles being presented and what is stated in the White Papers, you will see that they, the GOI, are following the White Papers as a road map. IMF has also made inputs and suggested corrections to their course. 

 

Like I said, there will be no RV in 2023 due to Iraq releasing the 20K notes at the end of 2023, among other things I have listed previously.

[Theseus]

On 12/25/2022 at 3:17 AM, screwball said:

It seams like the five year plan is a rolling plan….with no definitive dates 

You might want to go back and do your research. Iraq fudged their numbers to the IMF and got caught. There was an investigation and although the IMF found Ira at fault, they decided to not punish Iraq. They also did not put Iraq in Art 8. Btw that was the 2016 SBA. Had Iraq been honest, they would have been much farther along than they are now towards Art. 8. It wasn't long after the IMF decided this that Iraq decided to devalue their currency to the rate it is now.

[Dinarrock]

8 hours ago, Theseus said:

From your quoted link (a link i have pointed to in the past to show the IMF was reviewing the 2% policy). Define an exchange transaction. The exchange of one currency for another. Which is what I said previously. Ironic how the IMF backs me up in their own words. 

 

 

You still do not what the term MCP means and NO it has not backed up your argument you specifically said Iraq’s MCP is because they are using BOTH the US Dollar and Dinar that is not a multiple currency practice. it has to do with what the IMF is stating above…guess it’s way above your pay grade!! I tried to explain it to you as simply as I could and even gave you documented facts from the IMF but you still missed what MCP entails. But whatever makes you feel better or bigger about yourself..lol

Edited December 29, 2022 by Dinarrock

[Theseus]

8 hours ago, Theseus said:

MCPs can arise from exchange transactions. An MCP occurs if action by a member’s authorities results in an exchange transaction on the member’s territory taking place at an exchange rate spread that does not reflect normal commercial realities. For spot transactions, the current policy establishes a uniform permissible spread of up to 2 percent for all countries; for non-spot transactions, the permissible spread is not quantified but it should not exceed the normal commercial costs and risks of the transaction vis-à-vis spot transactions. Over time, the purview of the policy has broadened to capture not only actions that give rise to actual exchange rate spreads in access of the permissible thresholds, but also those that have the potential to do so. 

 

 

Again Straight from the IMF. This argument can become very complex. I choose a simple explanation to explain it. Now if you want to go into the complexity of MCP we can do that on a different thread. And yes it has everything to do with currency pairs in an exchange transaction. The MCP occurs at the exchange of currency which I said, the Iraq citizen, in Iraq, exchanges IQD for USD. I didn't go into intricate details on purpose and left it alone at that for a simple explanation. 

 

I will give you a more complex preview:

 

These [MCP] practices may be quite simple; for example, in the Philippines until recently there was one exchange rate for major exports and a single free market rate for all other transactions. Or they may be very complex, as in Colombia, where the exchange rates range from about 9 pesos = US$1 to about 18 pesos = US$1. Simple or complex, multiple currency practices are widespread. Their traditional locus is Latin America, but they frequently occur in Asia and the Middle East and occasionally elsewhere as well.

[Dretown39]

51 minutes ago, Theseus said:

Wrong. If you read the articles being presented and what is stated in the White Papers, you will see that they, the GOI, are following the White Papers as a road map. IMF has also made inputs and suggested corrections to their course. 

 

Like I said, there will be no RV in 2023 due to Iraq releasing the 20K notes at the end of 2023, among other things I have listed previously.

Wrong?? I'm simply drawing a conclusion to

your response to my question. I asked you

the other day on Dec. 24th why would they

wait 2-4 years away? You never answered

it. The 1st response you gave me on

Monday Dec. 26th didn't answer the

question. I clearly stated I was curious and

I'm grasping for more knowledge and

understanding. Today I said to you I was

confused and asked you another question

in regards to the exchange rate. When you

answered it you said because "nothing is

ever set in stone." That can logically make

one think that they could deviate from

these White Papers. I never said it will

happen in 2023. I just said it could happen

anytime. I went over some of the White

Papers and remember when this came out. But again as I stated I'm not fully clear on some things...smh

[screwball]

Anyone explain to me why Iraq would fixed their exchange rate to the USD when it will collapse….

[screwball]

6 hours ago, Theseus said:

You might want to go back and do your research. Iraq fudged their numbers to the IMF and got caught. There was an investigation and although the IMF found Ira at fault, they decided to not punish Iraq. They also did not put Iraq in Art 8. Btw that was the 2016 SBA. Had Iraq been honest, they would have been much farther along than they are now towards Art. 8. It wasn't long after the IMF decided this that Iraq decided to devalue their currency to the rate it is now.if

This proves nothing and you didn’t respond to the question about the rolling 5 year plan that’s been in play since 2013

[screwball]

6 hours ago, Theseus said:

Even if Iraq goes through with 1% increase per month, from the current rate, it would not be until Aug 2024 before it got back to the rate of 2020.

And that’s the number reason why they will not wait that long….