Tenmillion Chat: ~ Exchange Rate Restrictions 9/20/11

[trooper]

Tenmillion Chat: ~ Exchange Rate Restrictions 9/20/11

September 20th, 2011 07:38 pm

[*Tenmillion] hello everyone

[*Tenmillion] first…I don’t know if you saw this article about Talabani’s personal invite for American investors….

[*Tenmillion] Talabani demands more U.S. investment in Iraq

[*Tenmillion] LINK

[*Tenmillion] but…..

[*Tenmillion] I think he forgot to mention a few minor safety issues for Americans….

[*Tenmillion] this is from the U.S. State Dept. ~ travel.state.gov

[*Tenmillion] THREATS SAFETY AND SECURITY: The Department of State warns U.S. citizens of the dangers inherent in travel to Iraq and recommends against all but essential travel to the country given the dangerous security situation.

[*Tenmillion] Although Iraqi Security Forces (ISF)-led operations against these groups continue, attacks against the ISF and U.S. forces persist in many areas of the country. U.S. citizens in Iraq remain at a high risk for kidnapping. Kidnappings still occur; the most recent confirmed kidnapping of a U.S. citizen reported to the U.S. Embassy occurred in January 2010 in Baghdad.

[*Tenmillion] okay…so you might want to think about before you go over there

[*Tenmillion] ehehehe

[*Tenmillion] ok…next

[*Tenmillion] the IMF exchange rate arrangements

[*Tenmillion] i talked about this before

[*Tenmillion] but there is a couple of parts that I wanted to get more information

[*Tenmillion] Exchange Rate Arrangement

[*Tenmillion] Iraq continues to avail itself of the transitional arrangements under Article XIV. Iraq has a generally unrestricted current account regime and a significantly liberalized capital account.

[*Tenmillion] this part….

[*Tenmillion] However, four measures (plus one exchange restriction maintained for national or international security) have been identified to give rise to exchange restrictions subject to IMF approval, namely,

[*Tenmillion] (plus one exchange restriction maintained for national or international security)

[*Tenmillion] and so I found this in the same state department document that I was referring to about the traveler’s warning…

[*Tenmillion] SPECIAL CIRCUMSTANCES: Iraqi law prohibits adult Iraqis and foreigners from holding and transporting more than 10,000 USD in cash out of Iraq. However, adult Iraqi and resident foreigners may hold and transport no more than 200,000 Iraqi dinars to cover travel expenses. Iraqi law also prohibits taking more than 100 grams of gold out of the country. Iraqi customs personnel are taking action to enforce these laws and may pose related questions to travelers during immigration and customs exit procedures. (Civil customs personnel also will verify passport annotations related to any items such as foreign currency, gold jewelry, or merchandise that were declared by passengers upon entry into Iraq on Form-8.)

[*Tenmillion] All U.S. citizens are reminded that it is their duty to respect Iraqi laws, including legal restrictions on the transfer of currency outside Iraq. If you are detained at the airport or at any other point of exit regarding your attempt to transfer currency out of Iraq, you should contact, or ask that Iraqi authorities immediately contact, the U.S. Embassy.

[*Tenmillion] and here is the part I wanted you to read closely….

[*Tenmillion] “Transporting large amounts of currency is not advisable. Almost all of the international companies working in Iraq have the capability to make payments to their employees and at least four Iraqi banks are also able to convert cash into an international wire transfer directed to a bank account outside Iraq. Branches of the Credit Bank of Iraq on Al-Sa’adoon Street, Baghdad, Dar Es Salaam Bank, Iraqi Middle East Investment Bank, and Al-Warqaa Investment Bank all have this capability. Please be aware that large wire transfers may require Central Bank of Iraq approval due to measures in place to combat money laundering. Such approvals can be obtained by the sending bank if a customer provides information on the origin of the funds and the reason for their transfer. Additional information on banking in Iraq is available at the Central Bank of Iraq website. “

[*Tenmillion] Please be aware that large wire transfers may require Central Bank of Iraq approval due to measures in place to combat money laundering

[*Tenmillion] so that is talking about the restrictions and why they are in transitional Article XIV

[*Tenmillion] and working on moving into Article VIII

[*Tenmillion] also….there is mention of Jordan in the IMF Exchange Arrangements document

[*Tenmillion] (iv) an Iraqi balance owed to Jordan under an inoperative bilateral payments agreement. In addition, one exchange restriction maintained for security reasons should be notified to the IMF under the framework of Decision 144-(52/51).

[*Tenmillion] LINK

[*Tenmillion] I found an old article that mentions how much they owe

[*Tenmillion] LINK

[*Tenmillion]“The pre-2003 economic balance sheet is also a source of discord. Jordan claims it is owed close to $1 billion in Iraqi commercial debt. The kingdom has worked tirelessly to ensure that its debt is not lumped into the larger multilateral debt process—Jordanian officials call the debt “exceptional” and say it should be handled on a separate ledger.”

[*Tenmillion] “They also complain that the U.S. is not fully supporting Amman in securing these funds. The kingdom has also lobbied creditor nations to reduce Iraqi debt by offering more reconstruction contracts to neighbors like Jordan.”56

[*Tenmillion] “But the debt issue is complex. For example, without the Saddam-era concessions the balance sheet might look very different. If Jordan is intent on pressing the issue, the U.S. and other debtor nations should press Jordan to be more forthcoming in opening up the kingdom’s Saddam-era ledgers.”57

[*Tenmillion] *56. See “Jordan Calls for Reconstruction Contracts to Lessen Iraq Debt,” Agence France-Presse, September 13, 2004.

[*Tenmillion] *57. The debt issue was reportedly raised during Prime Minister Bakhit’s August 2006 visit to Baghdad. A Jordanian official suggested to the author that one way to resolve the issue would be to “swap” the Iraqi commercial debt with the frozen assets of Iraq’s al-Rafidayn Bank held by Jordan, which, like the debt, totals approximately $1 billion.

[*Tenmillion] so I think that until that exchange restriction is removed, the dinar is not going to be an internationally traded currency

[*Tenmillion] just a few pieces of interesting info….something to think about

[*Tenmillion] Thanks you!

[JayP] good stuff ten!

[libertybell] ty Ten nice

[kwekubruni] ty ten

[captkm] Good job ~

[*Tenmillion] Go Rv!

TensDinarDen~

[Russell M]

thanks trooper!

[SurfingTheDinarWave]

Talabani meets with the IMF Thursday, so I'm sure we will see this happen, they are about to lift the rest of UN CH VII next week only issue that remains is the neighboring country issue with Kuwait. So we shouldsee the RV anytime between now and Sept. 29th to be live by Oct. 1st

[goldengoose]

Talabani meets with the IMF Thursday, so I'm sure we will see this happen, they are about to lift the rest of UN CH VII next week only issue that remains is the neighboring country issue with Kuwait. So we shouldsee the RV anytime between now and Sept. 29th to be live by Oct. 1st

'SurfingTheDinarWave',

Good evening!

Those sure are some very confident words you are bloviating..............and I for one, sure hope your words come to fruition!

Thank you,

GG

[jas428]

Talabani meets with the IMF Thursday, so I'm sure we will see this happen, they are about to lift the rest of UN CH VII next week only issue that remains is the neighboring country issue with Kuwait. So we shouldsee the RV anytime between now and Sept. 29th to be live by Oct. 1st

Just a friendly reminder that OCT 1st holds no significance. The Iraqi fiscal year is the same as the calendar year so it ends Dec 31st.

[429]

Thanks for bringing the chat over, Trooper.

I like Tenmillion's chats. She does a lot of research and stays away from all the hyperbole and rumors.

[design interrupted]

'SurfingTheDinarWave',

Good evening!

Those sure are some very confident words you are bloviating..............and I for one, sure hope your words come to fruition!

Thank you,

GG

Golden Goose,

Are you Bill O'Reilley in disguise? He loves to use the word bloviating!

Design Interrupted

[Carrello]

Golden Goose,

Are you Bill O'Reilley in disguise? He loves to use the word bloviating!

Design Interrupted

Golden Goose is smart, polite, doesn't need to hear himself talk, and he is a gentleman. It is impossible for him to be Bill O'Reilly.

[design interrupted]

Golden Goose is smart, polite, doesn't need to hear himself talk, and he is a gentleman. It is impossible for him to be Bill O'Reilly.

I was just joking Carello

[Carrello]

I was just joking Carello

OMG Design. I just saw this - two weeks later. I was kidding too.