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Monday, May 25, 2015

Mtn Goat Monday Update - "More Misinformation"  Part 2 of 2

[Update on Project to Delete the Zeros]

There seems on the surface to be all good news this last period but this topic too was also very confusing. We are seeing what seems to be once again more pressure from parliament on the CBI to complete the project to delete the zeros. We have seen this before yet nothing seems to happen resulting from it.

I present an article to you below as a member of the committee MP Abdul Qader Mohammed Omar gave a news conference in this matter of the new 50K and 100K notes.

We are seeing the debate continue on the necessity to print and distribute these new 50k and 100k notes. I talked about these notes in prior news letters and how the CBI and the GOI thought this could solve their banking liquidity problem (payments of large sums of cash to the provinces each month for the social programs).
It is apparent that some members of parliament are still confused over why they are doing this effort and thus relate it to distributing yet more very large 3 zero notes in circulation rather then deleting the zeros by completing the “project to delete the zeros” (thus the currency restructuring). These efforts are unrelated yet one will lead to the completion of the other. I am hearing once the 50k and 100k notes (now hearing 100k is not needed immediately) this will also allow inter banking transactions of large sums of cash on the international level too. Remember the CBI did say the 3 zero notes would coincide along with the issued newer, lower denominations for a period of time (up to 3 years).

The last statement of the article also says the central bank is likely in the earlier application project to delete the three zeroes from the Iraqi currency early 2015 to reduce inflation. Well it already mid year 2015 and so where is the project? Do they intend to complete it soon?

Earlier in the article (paragraphs 4 and 5) the commission said that the Governor of the Central Bank Commission assured that the project to delete the zeros is still under study, and work directly with will be the beginning of the year 2016 in conjunction with the replacement and change currency. Sounds like to me the CBI wants to wait until early 2016 to continue the “project to delete the zeros”.

This is not Mnt Goat saying this or making up news for sensationalizing but the CBI themselves. So I notice how everyone is ignoring once again this news and is simply filtering it out.

Please, please take off your RV hat and listen to what they are telling us. Just because you don’t like the news about 2016 does not make it reality. I am not making this up. It is coming directly from the CBI and probably Dr Shabibi.

Can they change their stand on waiting till 2016 for the RV? Maybe but lets wait until we see evidence of it first before we get too optimistic.

Article follows:

Parliamentary Finance demanding «Central» delete the zeros      

http://ift.tt/1BlJ0EY

Baghdad's new morning parliamentary finance committee the central bank called for the implementation of the project to delete the three zeroes from the currency, rather than issuing new editions of major categories.

A member of the committee MP Abdul Qader Mohammed Omar, said that the central bank plans to issue new editions of great classes for 50 000 dinars and 100 000 dinars, while the project to delete the three zeroes from the deferred currency implemented until further notice.

He added that the project to delete the zeros is the best of the issuance of new editions under the current circumstances, calling for the implementation of deleting three zeros to restructure the local currency and to reduce the money supply in circulation in Country.

The central bank told the House of Representatives to work on the application of draft deletion of zeros and change the currency together beginning of the year 2016.   

The commission said that the Governor of the Central Bank Commission assured that the project to delete the zeros is still under study, and work directly with will be the beginning of the year 2016 in conjunction with the replacement and change currency.

She stressed that the current reserves at the Central Bank of about $ 76 billion in DFI fund our $ 24 billion. She noted that «traded in the local market currency volume of 40 trillion dinars out of 47 trillion dinars.

She added that the current security situation in the country is not ready to move the application of the project to delete the zeros and replace currency.

It showed that Parliament face to tighten controls on these financial projects and follow-up of corruption and fraud indicators.

It was agreed to pursue serious oversight to file money laundering and maintaining the financial policy of the country », warning that« entry coins forged in conjunction with the application of my project to delete the zeros and replace, change currency.

The Committee on the economy and investment parliamentary hosted last week the central bank governor on the Keywords to discuss the issue of the deletion of zeros and anti-money laundering crimes and develop the work of private banks.

The central bank is likely in the earlier application project to delete the three zeroes from the Iraqi currency early 2015 to reduce inflation

[Mastercard News]
I am not presenting this news about the Mastercard to you because I want to spoil your hype about an immediate impending RV. I only want to tell the truth as I know it.

So now we see the resurfacing of the Mastercard contract with Iraq. I want to tell you this does not put any more pressure on Iraq to RV but is a good sign since it a progression in the plan to see the RV shortly. How shortly is it?  Lets worry about debunking this intel first and then we can read on and I will explain in more detail in other sections of this news letter what I know about other factors effecting the international rollout.

Going back about 18 months they knew the Mastercard had to make some software changes to accommodate Iraq’s special request to use their services for citizens using the cards for payments of these social programs when out of country.

So they began the work. They had to HARD CODE specific rates for these cards when used out of country. Why did they have to do this? Because for these special welfare like programs Iraq will only be paying out certain amounts to the people not the international market rates. They know darn well the RV will have much higher market rates using the market rates once international however they agreed to program rates.

So they must stick to the program rates and won’t increase them until parliament approves a higher rate in the future, if and when they approve it. In short these special welfare like programs will not ever be using the market rate or the currency exchanges in these transactions.

Now do you have a debit account at a bank? If you do, take out the debit card from your wallet and look to see what service is sponsoring the debit card. Chances are its MASTERCARD. They are one of the few services that sponsor international debit cards and provide custom services for their clients, one of which the Iraq government is.
So now they have the rates for these programs hard coded into their system (.86, 1.14, 1.16 etc,). If you are out of the country you get these rates and nothing more. It is NOT tied to the currency exchanges.

This means that when an Iraqi citizen uses the card the Mastercard service will go out to a file, (an Iraqi controlled government file) on the Mastercard system it will first determine what program you are eligible for, then get your rate and then convert the payment for you to the currency to which you reside. This WILL NOT use the international currency exchanges to get the rate but it will use the hard coded rates in a file.

Remember we are talking dinar to USD (or other currencies depending on where they live and use the card). If they try to use the card  to do a cash advance (prior to the RV) it will not work since Mastercard can not now go out to the international exchanges and convert to the USD (or other country’s currency) until the RV happens. . It will decline the transaction since the dinar is not yet international. This cash advance can only take place when the final rollout to international status is done.

Do you see now how Iraq can begin using these cards to payout on these special welfare like programs TOTALLY UNAFFECTED BY THE RV? 

THEY DO NOT NEED A revaluation TO BEGIN THESE PAYOUTS!

So please can we stop all this hype and none sense about an RV prior to using these cards for this purpose

If you don’t believe me just wait till early June when they fully intend to use these cards for HCL money payments and yet still no RV has occurred. 

Remember this news letter and don’t be so surprised later because I am telling you now.

Peace and Luv To Ya All, 
Mnt Goat


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