American Contractor - 28 January 2011

Bumper64 · January 29, 2011

In recent developments, the Central Bank of Iraq (CBI) has called

for clarification regarding the Iraq Federal Supreme Court ruling.

The courts ruling was to place the CBI under the control of the

Council of Ministries and under the direct control of Prime

Minister Maliki. This all began when Maliki asked the courts for

guidance in November 2010, just before he was appointed the new

Prime Minister. Now, the CBI is asking for clarification of the

ruling and it is unknown whether the Iraq Federal Supreme Court

will issue one or not.

The Development Fund of Iraq (DFI) is located in the Federal

Reserve of New York (FRNY) which holds an estimated 50 billion

dollars in the Iraq account. The CBI has stated and seems to

believe that the DFI funds will be in danger when the CBI is placed

under the control of the Council Ministries. This is not completely

the case nor is it completely accurate.

The Iraq's funds are now protected by the United Nations as per

Chapter VII of the U.N.Charter. However, Iraq has emerged with

limits from Chapter VII and this protection will only hold for six

months. The creditors, whether they be private or government will

eventually ask Iraq to pay back its debts. This will no doubt

create a problem for the Iraqi government to service its debts. The

debt servicing cost would ring up approximately 1.3 billion per

month and could jump up to 5 billion in the future. Iraq may

eventually find itself in a position where they are obligated to

repay the countries debts resulting in a negative impact on the

local economy. The result being a depletion of foreign currency

reserves and oil revenues. The Iraqi government will continue with

the DFI fund in New York. However, it will be under a different

name thus allowing the Iraqi government to protect its growing 50

billion dollars.

The International Monetary Fund (IMF) recently asked the Ministry

of Finance (MoF) to start privatizing state owned banks so that

Iraq will be able to obtain IMF loans. The Iraqi government has

responded saying it is still several years away. The IMF is

reminding Iraq about the pledge Iraq made in 2007 in regards to

removing subsidies given to industrial sectors.

The 2011 Iraq Federal Budget is approximately 78 trillion dinars.

There is no set dinar exchange rate associated with the federal

budget. The budget is calculated at the Oil price of $73 per

barrel. The 2011 Budget will have some changes coming as the Kurds

are upset about only getting 11% instead of the usual 17% due to

calculations of the last years old prices. Expect more Budget

delays in Parliament as there is backing to close the accounts of

2010. Meaning that, the state general budgets for the last 4 years

were endorsed without having the closing of accounts of the

previous years submitted to Parliament. Previously reported, the

CBI was asked by the Ministry of Finance to remove all liquidity

from all Ministry budgets monies that have not been spent in the

fiscal year. Also, in December Prime Minister Maliki instructed the

Ministry of Finance to submit a detailed report on the 2010 budget

funds posted to ledger books. The report should highlight the names

of the ministries that have not used up their funds.

During a recent private meeting, in which I attended, the Iraqi

currency was addressed. The Dinar currency will be going through

restructuring in terms of specifications and shapes. When this

transpires, both the existing currency and the new currency will be

in circulation at the same time. That's right. One will not be

taken out beforehand. Also discussed was the previously mentioned

topic of the 100,000 dinar bank note. It appears that talks are

still on the table in regards to this topic. The idea has not been

flushed out.

In other news, The Iraq Central Bank has announced that seven

foreign and regional banks are now operating in Iraq in compliance

with the CBI's financial controls. The CBI is also working very

hard to activate banking licenses for the following banks; The

British-Iraqi Bank, the Ceyhan Bank, a Turkish Bank, the Joint

Bahrain Bank, the Iranian Qom Bank, the National Bank of Kuwait,

and the Bank of China.

I have also just learned that the World Bank will be giving the

Iraqi government a loan of an additional 250 million dollars. That

announcement will be made very shortly. The last loan they were

given was back in April 2010 and that was for 250 million.

Also, the Iraqi government is currently handing out 150 liters of

heating oil for every citizen for the months of January, February,

and March. The weather here has been unusually colder than normal

as it also seems to be in many other parts of the world. In regards

to the official inflation rate, it has risen to 3%.

chuckray · January 29, 2011

" In other news, The Iraq Central Bank has announced that seven

foreign and regional banks are now operating in Iraq in compliance

with the CBI's financial controls. The CBI is also working very

hard to activate banking licenses for the following banks; The

British-Iraqi Bank, the Ceyhan Bank, a Turkish Bank, the Joint

Bahrain Bank, the Iranian Qom Bank, the National Bank of Kuwait,

and the Bank of China "

this seems to mean more stability--imho

Soldier · January 29, 2011

Very informed post that he wrote. Sounds like he doesn't need a source, or a brother uncle's aunt sister. He's getting straight from the ground. I like it.

unclegeek · January 29, 2011

this might just be the first time I believe something ac says. On purpose.

Brisco · January 29, 2011

Nice post Bumper

I think there is alot going on in regards to the Federal ruling.

These 2 just came out today.

Parliament will tighten control over the bodies associated with the Council of Ministers

Posted: January 28, 2011 by THE CURRENCY NEWSHOUND – Just Hopin in Iraqi Dinar/Politics

MP said the Iraqi List, Muhammad Salman al-Tai said the Iraqi parliament will tighten control over independent bodies in the event associated with the prime minister.

Salman said Friday: After the addition of independent bodies under the chairmanship of Minister and add them to the executive branch, there will be strict control exercised by the House on these bodies.

He pointed out that the Iraqi List, the Federal Court decision is a political decision, not constitutional and will cause confusion to the work the executive branch, because the Federal Court did not distinguish between the parliamentary system, presidential system, saying that the court took this decision away from the concept of parliamentary system in force internationally.

The Federal Supreme Court issued a decision to link with independent bodies referred to in the Constitution under the chairmanship of Prime Minister directly, not under the chairmanship of the House of Representatives. As having executive powers “

She explained the Federal Supreme Court in an official letter issued in response to the request to the Office of the Prime Minister on the determination of the body that are connected by some independent bodies, which did not specify the constitution of reference with either the House or the Council of Ministers, the court found “that the association of some independent bodies Council House of Representatives, does not preclude the auspices of the Council of Ministers on its activities pursuant to the provisions of Article 80 of the Constitution first.

* Parliament will hold a special meeting to discuss the consequences of the decision to link the independent government bodies

January 28th, 2011 09:05 am · Posted in NEWS (Iraq & World Currency)

Parliament will hold a special meeting to discuss the consequences of the decision to link the independent government bodies

Posted: January 28, 2011 by THE CURRENCY NEWSHOUND – Just Hopin in Iraqi Dinar/Politics

A member of the Electoral Commission for elections, Saad al-Rawi that the Iraqi Council of Representatives will be held on Tuesday, a special session in the presence of independent bodies to discuss the consequences of the Federal Court decision which caused to the Council of Ministers.

Rawi said in a press statement by reporter that “the President of the House of Representatives informed the Electoral Commission to attend next Tuesday in a special session of the Council of Representatives to discuss the implications of the Federal Court decision that bind independent bodies of the Cabinet.”

The narrator explained that “the President of the House of Representatives Osama Nujaifi called on all independent bodies to attend the meeting to discuss the effects of the Federal Court decision on the work of independent bodies

Go RV / RI

zantac · January 29, 2011

Not a lot of you like the AC but pound for pound he/she makes absolute sense every time.

You should all go back about 9 months to see even then AC told use all no RV in 2010 & stuck with it even though we bashed every post to death

There are many out there that will tell you it will RV tomorrow, Monday as the Norm, Tuesday if it is delayed then on Friday tell you they got the wrong Monday

All I ask it just take a little bit of a time out during play to listen to the coach giving you the next big play to score that touch down you all dream of

You may not like that time out but without the coach giving you the next play how will you win the super ball.

“Water is the softest element on the planet but even this can overcome the rock”

VIZIOIRAQI · January 29, 2011

Hey Bumper I know you like this guy, and he is good on evalue , but let's sit and see I see rv fed march how about you?

On_Reserve · January 29, 2011

Zantac is right. AC took a lot of heat from the wishers and dreamers late last year.

This post by AC -- thru bump -- has a real ring of insight to it, smacks of someone who really does have a connection.

Thank you.

TS

I believe in the RV; I don't believe in the cult.

kooshqueen · January 29, 2011

I remember when everyone was bashing the crap out of this guy for saying no RV in 2010. Who's retarded now?

CaptainJack · January 29, 2011

Since AC is too professional to say it, I'll say it for him .... "I told you so"!

Unlike the pumpers, errr I mean gurus .... AC has been RIGHT more than he has been wrong. His site (which according to rules, shall remain nameless) isn't for the "I need this RV so I can have all my dreams come true" crowd.

thanks bumper for supplying this post!

MovieMaker · January 29, 2011

thanks for sharing

Captainron601 · January 29, 2011

Great post and very informative Bumper :twothumbs:

S2_D2 · January 29, 2011

Thank you for the post

Ha Ha Ha · January 29, 2011

I second this! Straight Shooter!

Not a lot of you like the AC but pound for pound he/she makes absolute sense every time.

You should all go back about 9 months to see even then AC told use all no RV in 2010 & stuck with it even though we bashed every post to death

There are many out there that will tell you it will RV tomorrow, Monday as the Norm, Tuesday if it is delayed then on Friday tell you they got the wrong Monday

All I ask it just take a little bit of a time out during play to listen to the coach giving you the next big play to score that touch down you all dream of

You may not like that time out but without the coach giving you the next play how will you win the super ball.

“Water is the softest element on the planet but even this can overcome the rock”

SMathews · January 29, 2011

Obviously the ones who were bashing him.

The guy stood his ground even against all the opposers.

I remember when everyone was bashing the crap out of this guy for saying no RV in 2010. Who's retarded now?

Rayzur · January 29, 2011

Thanks Bumper !!!!

Don't know about ya'll but the sentence " During a recent private meeting, in which I attended,( the Iraqi currency was addressed)" says to me that whoever this is, its pretty clear he/she is in a position to actually know of what they speak.... and remains fairly objective and matter of fact in reporting it.... Thanks to whomever this is, for sticking your neck out to share what you can in helping us to make sense of yet more pieces in this convoluted and multivariate national puzzle....

ha ha · January 29, 2011

Not a lot of you like the AC but pound for pound he/she makes absolute sense every time.

You should all go back about 9 months to see even then AC told use all no RV in 2010 & stuck with it even though we bashed every post to death

There are many out there that will tell you it will RV tomorrow, Monday as the Norm, Tuesday if it is delayed then on Friday tell you they got the wrong Monday

All I ask it just take a little bit of a time out during play to listen to the coach giving you the next big play to score that touch down you all dream of

You may not like that time out but without the coach giving you the next play how will you win the super ball.

“Water is the softest element on the planet but even this can overcome the rock”

Yes !!! Agreed. You said we will never see RV in 2010. This is what happened. We are in pain.

Pegleg · January 29, 2011

Thank you for the post Bumper

Edited January 29, 2011 by Pegleg

JLT · January 29, 2011