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Tuesday, June 23, 2015

Millionday 6-22-15 News Part 1 of 2

Millionday News 6/22/15  Part 1 of 2

Welcome to dinarupdates.com for News Time with Millionday!!

Millionday: The Exchange Rate of Foreign Currency in Economic Feasibility Studies 

Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, 

and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

Estimate the shadow price of foreign currency:

Millionday: NOTE -- I WANTED TO LOOK AT WHAT IS BEING USED TO DO THE CALCULATION
~~~
Millionday: 1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

Millionday: * What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.In particular the following outputs and inputs of foreign currency were distinguished:

Export-outputs.

Outputs marketed locally that substitute imports.

Imported inputs.

Inputs produced locally that usually go to exports.

Foreign labor.

Millionday: According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.

In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency …. etc.).

In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

Millionday: NOTE -- UNDERSTAND I AM SHOWING YOU WHAT IS BEING DISCUSSED BUT NOT IS ONLY DISCUSSED--BUT -- --PLANS STATED --- AND THIS DISCUSSED IS ACTUALLY -- THE REALITY OF IT ALL

Millionday: 2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning.

It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports… etc

Millionday: WHOOPOW

Millionday: The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:

The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports,

as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities.

This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.

Millionday: The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.

The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.

The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices

and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.

This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and

Millionday: compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.

And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.

3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.

Millionday: note -- we have never seen any kind of calculation at any time

Millionday: smile

jarhead: so r they sayin 3.208 or 1.13

Millionday: THEY ARE LISTING JUSTIFICATIONS -- NOT ACTUAL -- JUST WHAT COULD BE AND WHY ETC -- NO GUARANTEES

billionaire Millionday: MD do you remember the article that came out about the 50k notes? Remember the rate I discussed with you? The calculations where 50 dinars would = $43? Got pretty close to that $1.13

Millionday: SMILE -- WHEN I READ THIS REPORT I THOUGHT OF YOU BILL -- LOL

Calidreamers: Is it true that Maliki is going to be in a International Court to be held accountable for his crimes ?

Millionday: YES IT IS -- OUTSIDE OF IRAQ

Calidreamers: That can only help things inside Iraq, right?

Millionday: NO THAT CAN HELP THINGS INSIDE AND OUTSIDE IRAQ --- NO CORRUPTION CAN ONLY IMPACT ONE -- IT IS ALWAYS IMPACTFUL TO HAVE ANY KIND OF CORRUPTION IN ANY COUNTRY OF ANY KIND

Millionday: Iraqi businessmen Union to facilitate the procedures and get away from the bureaucracy and the provision of land required for the implementation of investment projects through the equitable distribution of the work of the private sector in line with the government program.

The most comprehensive development goals of the strategic development of the private sector launched by the government in February past, strengthening the private sector and diversify non-oil national economy and re-activate it by providing a way for the government map for leading the development of this sector,

which will contribute, during the period 2014- 2030, a significant contribution to economic growth and improve the business environment in Iraq.

Millionday: NOTE - THE GOVERNMENT PROGRAM IS LAW

Millionday: NOTE -- THE ENTIRE GOAL IS WITH IRAQ AND ALL COUNTRIES -- ECONOMIC DEVELOPMENT --(COMPETITIVENESS) AND ALSO THE DEVELOPMENT OF ANY COUNTRY AND ALL THAT CAN BE ACHIEVED -- IN THIS CASE -- HUGE AMOUNTS TO ACHEIVE AND POSSIBLE
Millionday: In this regard, says the president of Men Union Business Reza Ragheb Blibl "morning": that "business owners are suffering from a series of procedures and red tape and bureaucracy in place, what are facing difficulties in establishing their business in all the provinces and cities of Iraq represented the most prominent of land ownership." 

refers Blibl to the high expectations that lie in Iraq and its national resources, especially its resources human and natural, and territorial fertile and possession of archaeological and historical sites and purposes of religious visits, as well as provide marketing opportunities enormous due to the great demand for products and services and the abundance of financial resources,

Millionday: NOTE -- WE ARE TALKING ABOUT THE UNION AND ALL THE BENEFITS THAT COME FROM THE ORGANIZATION

Millionday: stressing the need to manage the sector properly on according to the government program and Mans by the Constitution in the transition towards an economy Market Ahar.kma stressed speed up the application of e-governance-one window to ensure appropriate business active work of the private sector and ensure equitable distribution in all provinces environment, 

leading to the advancement of their betterment and operation of the largest number of manpower in order to eliminate unemployment, thus reducing the burden on the State in providing government jobs.

Millionday: NOTE -- IRAQ IS MOVING TO THE GOV PROGRAM DESIGNED TO TAKE THE ECONOMY AND ITS BENEFITS TO THE HIGHEST CAPABILITIES -- ALSO-- THE HUGE TRANSITION TO A MARKET ECONOMY --- OUTSIDE IRAQ -- GLOBAL TRADE BY SUPPLY AND DEMAND

Millionday: In the opinion specialists that re-distribution of roles in economic activity for the benefit of the private sector over the life of the plan requires Dolly measures including action to facilitate the smooth flow and streamline government measures at the level of business in Iraq group, 

and reforms on the business and organizational level, accompanied by the development of an institutional framework legal and transparent and simplified to encourage the work of the private sector, 

as well as lay the foundations for the rehabilitation of state-owned enterprises are characterized by cohesion and clarity, transparency and inclusiveness and encouraging privatized and transferred to the private sector.

Comments may be made at the end of Part 2  Thank You


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