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Friday, June 19, 2015

WealthWatch's OOTW CC Notes Part 2 of 2

PARLIAMENT IS STILL TRYING TO CONTROL THE MONETARY POLICIES AND THIS SECTION IS STATING PLAINLY THAT CONTROLS OVER MONETARY POLICY SHOULD REMAIN IN THE HANDS OF THE CBI NOT THE GOI

THE MAIN PROBLEM WE HAVE HERE IS THAT WHILE, AS I STATED ABOVE, THE CONSTITUTION ALLOWS CONTROLS OF THE MONETARY OVERSIGHTS TO THE GOI, THE CBI, WITHIN THE CONSTITUTION IS STILL LISTED AS AN INDEPENDENT AGENCY.

WE HAVE READ THAT KEYWORDS HAS SUPPOSEDLY FILED CHARGES WITH THE JUDICIARY TO OVERTURN THE 75M AUCTION CAP, WHICH BTW, IS A LAW, BECAUSE IT WAS WRITTEN INTO THE BUDGET LAW OF 2015 – 

SO NOW THE CBI HAS TO OBTAIN AN OFFICIAL RULING FROM THE SJC IN ORDER TO GET THIS BUDGET STIPULATION OVERTURNED. 

 WE KNOW THE CBI'S BEEN DOING WHAT IT DEEMS BEST FOR THE MARKET, BUT OBVIOUSLY THAT POLICY IS LETTING THE PEOPLE DOWN.
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Thus, the Central Bank has lost its independence and became a bow to the decisions of the Government and Parliament. The correct method is to put forward ideas as proposals in the House and then vote on them.

The policies of the Government and Parliament and, in particular, determine sale, led to the duplication of the exchange rate, the black market has got them some and others used in funding terrorism may be one of them.

WE ALSO STILL HAVE AN ISSUE, OBVIOUSLY WITH MONIES FUNDING TERRORISM IN THE COUNTRY, BLACK MARKETEERS ARE FUNNELING MONIES TO DA'ASH AND OTHER TERRORIST ORGS.

Loss of autonomy has several caveats that the Central Bank will be subject to the instructions of the Government, which will be reflected in World Bank policies so the Central Bank will not be able to adopt the target of reducing inflation. To make matters worse, government spending is inherently inflationary result of foot-dragging in implementing the projects.

 
And loss of autonomy would lead to creditors to consider the Central Bank's funds as Government funds, become a target for creditors, and this is an important issue that must be discussed with creditors and advocate for Iraq.

TODAY THE FINANCE COMMITTEE MET WITH DEUTCHE BANK, AND CHASE TO HELP ASSIST THE IRAQ IN OFFERING A BOND SALE,

WHICH IS THE SAME SALE ZEBARI ANNOUNCED THAT THE MOF WOULD BE PLACING ON OFFER, IN ORDER TO GAIN CAPITAL FOR THE COUNTRY, IN ORDER TO, IN PART, FUND PROJECTS –

IN THIS SAME MEETING THEY DISCUSSED IRAQ'S CREDIT RATING...ALL GOOD ON THIS FRONT.

The loss of autonomy means that Central Bank monetary policies in line with government policy, but government policies may not match the Central Bank law. In other words, does it focus on fighting inflation and not give the necessary importance to the objective of economic stability.

IF THE CBI CONTINUES TO TRY TO APPEASE THE GOVERNMENT'S MONETARY POLICIES THERE WILL BE A CONTRADICTION BETWEEN FIGHTING INFLATION VERSES KEEPING THE ECONOMY GOING –

BECAUSE IF THEY CANNOT GET IN LINE WITH ONE ANOTHER RE MONETARY POLICIES IT'S GOING TO ADVERSELY EFFECT THEIR MARKETS,

THEIR PURCHASING POWER AND THE CITIZENS HAVE CERTAINLY HAD ENOUGH ISSUES –

WE DO NOT WANT INFLATION OR THE MARKETPLACE TO LOSE INFLUX OF CAPITAL BECAUSE THE CBI AND GOI CANNOT GET ON THE SAME PAGE..THEY HAVE TO GET THIS WORKED OUT.

The imposition of a financial nature policy the Central Bank must be the subject of coordination and study of the governmental and parliamentary authorities. The Central Bank has weakened from the Government, often Governments have tried to impose their policies on the Central Bank,

including the former Prime Minister tried to borrow money from the Central Bank which Bank rejected because the law prevents it, and ended up with an attack on the Central Bank and arrest of many of its best staff.

Override of independence is on the overrun on Central Bank reserves. Some echoed that might be justified because currency trading exceeds the reserve on banks and a half times.

These justifications for the Government to gradually dominate the resources of the Central Bank.

The economy-such as the Iraqi economy-open significantly abroad requires considerable resources to compensate for the consequences of any crisis, and if borrowing from the Central Bank when the funds will be included? What is Bank owned by the Government to recover the money?.

That bubble and a strong dollar is the result of Government policy and the House must be to remove these constraints on the foreign exchange market where must give more importance to financial policy, monetary policy determines the exchange rate and help manage money and its functions.

HE IS SAYING THAT THE GOVT'S MONETARY POLICIES - WITH ONE BEING THE 75M AUCTION CAP –

IS PREVENTING THE CBI FROM DOING THEIR JOB THIS CONTRADICTION IN MONETARY POLICY IS CAUSING THE CONTINUED FREE FALL OF THE VALUE OF THE IQD AND THE HIGH COST TO BUY DOLLARS. THE PEOPLE NEED REAL BUYING POWER.

Central Bank lends the Government but help the whole economy through price stability and credit regulation and supervision of the banking and financial sector and regulation of payments and maintain the country's reserves.

Either speak much repeated by the Government and the Finance Committee in the Chamber of Deputies on "foreign currency auction, this auction is monetary policy under which pulls the TD from the market and purchase foreign currency and here ends the topic for the Central Bank,

before we process cash discharge directly. And if there is import of "auction" parliamentarians asking for reasons that in the customs or the Department of Commerce, the import process does not fall within the process.

The Central Bank must offset each dollar demand and this is the basic price stability so that the request had not been full by the Bank will go and create another market and other prices, contrary to Central Bank law and creates economic instability.

BOTTOM LINE - IF THE CBI, GOI DO NOT GET ON THE SAME PAGE WITH THE MONETARY POLICY - WHAT THE COST OF A DOLLAR IS, PEOPLE WILL NOT BE ABLE TO AFFORD THE FEES FOR TARIFFS –

 AND IMPLEMENTING THE TARIFFS WILL NOT BE SUPPORTED BY THE CURRENT VALUE OF THE IQD BECAUSE THE COST FOR THE DOLLAR WILL BE TOO GREAT AND NO ONE WILL HAVE ENOUGH PURCHASING POWER TO PAY THE TARIFFS.

The Finance Committee has chosen an end up for sale foreign currency ($ 75 million), contributing to instability and create multiple exchange rates given that real demand was higher.

In any case, this request does not ask about Central Bank but you ask for all sectors of the economy, why not go the Finance Committee in Parliament and which exercise legislative and oversight question to sectors of the economy are controlled by the private sector,

especially since she is supposed to meet every corner of the economy. No doubt that there are irregularities, which requires follow-up with commercial banks, but we stress that the Central Bank is to drain cash, either by imports, is outside the scope of the work of the Central Bank.

On the other hand that money go abroad that the State did not provide opportunities at home to invest. Also, a section of which is a kind of external saving (the concept within the national accounts of a country) will return to Iraq in appropriate circumstances which must be provided by the State. As regards extrabudgetary funds be sure sources and legitimacy of banks and laundering services which must be strengthened, it may be the majority of sources derived from money laundering or that the subject is simply a large operations to exit capital.

We must not forget that Iraq is within range States in transition from totalitarian regimes to democratically open systems believes in a free economy. This group of States is undergoing many changes which open economy (such as the former Soviet Union), but many of them marked with movement of capital abroad. In the case of Iraq encourage this transition also because conditions of violence and instability in the country. This may explain the large amounts being transferred overseas. they go to spare in abroad, we hinder the flight of capital, not smuggling. The situation in Iraq at present encourages capital flight, and if we allow capital to move the dollar exchange rate in the market will increase significantly hampering economic decision-making.

Iraq so far has not become a safer place brings currency and we need significant national efforts to ensure stability and attract currency.

* Former Central Bank Governor

Local markets are experiencing a steady increase in daily exchange rate of the dollar to dinar, an effect on movement and reflected negatively on citizens, particularly low-income.

RESTATING WHAT WE KNOW - THE CBI CANNOT BRING IN LINE THE COST TO BUY THE IQD; 1) VS THE STREET SELL RATE AND 2) MAKING IT AFFORDABLE FOR IRAQI'S.

Finance Committee: question marks on Central Bank actions to halt the deterioration of the dinar

It says Finance Committee member, majda Al-Tamimi, told the (term), "high dollar exchange rate dinar, due to reduced sales of the Central Bank, as well as the increasing demand by citizens and the latest procedures for customs and tax deductions of the traders, loaded with" Central Bank of Iraq first and last responsibility to preserve the value of the dinar against the dollar not degradation ".

TAMIMI IS QUOTED AND THE GIST IS THAT SHE'S COMPLAINING THAT THE CBI HAS THE RESPONSIBILITY TO BRING IN LINE THE COST OF BUYING DOLLARS WITH IQD

AND IS ELUDING THAT THE CBI HAS FAILED AT DOING THIS; AND THAT IN ADDITION, THEY'RE ALSO NOW CHARGING A TAX ON TRANSACTIONS TO HANDLE THIS - SO WHAT DO WE HAVE

WE HAVE THE COST TO BUY DOLLARS WITH IQD, TOO EXPENSIVE FOR THE PEOPLE AND THEY'RE CHARGING A TAX TO HANDLE THIS TRANSACTION

[b]Tamimi, adds that "the CBI has taken, inter alia, to address the declining value of the dinar, but results did not appear on the surface to date indicates many question marks", stating that "the issuance of Central Bank paper currencies of major categories as a percent or 1,000 dinars, could lead to a lower dollar exchange rate dinar, due to portability, storage and circulation, in the framework of actions for the recovery of the domestic market."[/b]

[b]Commission on the economy: the dollar crisis would not be resolved only by amending the law on the Central Bank[/b]

[b]Says Committee member Nora parliamentary economy and currency albegari, told the (range), that "the dollar crisis would not be resolved until after the CBI Amendment Act No. 94 of 2004 with the current" phase, usually that is a big part of the market crisis, especially with the rise of the dollar to dinar, as well as the size of liquidity ".[/b]

[b]Albegari explains that "the Commission on economy and currency support in cooperation with the Finance Committee, to amend the Central Bank law", noting that "the draft new law on the Central Bank currently in the State Council, for examination by the consent of the Government and Parliament."[/b]

[b]Albegari, asserts that "the adoption of the amendment to the Central Bank would act independently of the Government", saying that "the problems began piling up as a result of a law contrary to many economic and financial phenomena created in Iraq."[/b]

THE ABOVE THREE PARAGRAPHS ARE SAYING THAT THE GOI IS GOING TO WRITE CBI BANKING LAW FOR THEM....

REMEMBER THAT THE CBI HAS THEIR OWN BANKING LAW AND THE GOI HAS THEIR BANKING LAW..THEY'RE GOING TO TAKE OVER THE ENTIRETY OF THIS LEGISLATION

[b]Central Bank: foreign exchange companies and speculators were responsible for the high dollar exchange rate[/b]

[b]The Central Bank attributed the rise in the dollar exchange rate dinar, the speculators in the market, denying that the reason behind the lack of Exchange companies shares and financial and banking transfer of hard currency.[/b]

[b]Says a source at the Central Bank, told the (extent), the World Bank increased its outlets to sell the dollar and reducing red tape for the purchase by the banking and money transfer companies and banks, the currency "auctions, blaming" Exchange companies and speculators responsible for higher dollar exchange rate. " [/b]

[b]He denied the source, who asked not to be named, said that "the procedures adopted by the Bank, to subtract eight percent as tax insurance and customs are the main reason behind the rise of the dollar," the Central Bank form the operations room to take deterrent measures right exchange companies contrary to instructions, as well as collaboration with stakeholders to fend off speculators from manipulating the dinar exchange rate.[/b]

[b]Bankers: abuse of Central Bank because of the high dollar[/b]

[b]On a related level download bankers arbitrary actions of Central Bank responsible for the rise of the dollar.[/b]

[b]And the Exchange Company in Shorja commercial district, central Baghdad, Abu Nizar, a (range), that "the arbitrary actions of the Central Bank caused the dollar's exchange rate dinar", stating that "the Central Bank reduced dollar quotas Exchange companies and banks, the imposition of fees as taxes and customs on goods entering, as insurance for the dollar amid escalating demand.[/b]

[b]Indrajit indicates that "Iraq from the country's biggest importers of goods to require merchants to the dollar to cover their goods" returned to "current procedures do not allow merchants to easily get a dollar, what compelled to buy it on the black market at any price and thus lead to rise."[/b]

[b]Mentioned that the dollar has seen a steady rise in domestic markets from about 1,200 dinars per dollar in early 2015 to 1,400 dinars now.[/b]

REMEMBER YESTERDAY THE BUY RATE FOR THE DOLLAR WAS 1335 IQD FOR 1 USD AND NOW OBVIOUSLY ITS AT 1400

THEY'RE SAYING BASICALLY THAT IRAQI'S ARE FORCED TO USE THE DOLLAR FOR TRANSACTIONS AND TO PAY A TAX IN THE BANKS TO BUY DOLLARS W IQD –

AND SO BECAUSE THEY NEED THE DOLLAR SO BADLY - THEY'RE FORCED TO PAY A HIGHER SPREAD BUT WILL CHOOSE TO GO TO A STREET SELLER TO GET DOLLARS –

THEY DON'T WANT TO BE FORCED TO GO TO THE BANK TO PAY AN AMOUNT TO BUY DOLLARS AND TAXES, WHEN THE STREET VENDORS ARE NOT FAR OUT OF LINE WITH WHAT THE CBI IS SELLING DOLLARS FOR (ALMOST ON PAR) –

WHY SHOULD THEY GO TO THE BANK WHEN IT'S MORE CONVENIENT AND WITHIN LINE VS THE CBI SELL RATE TO BUY DOLLARS?

THEY'RE ALSO SAYING WHEN THE TARIFFS GO INTO EFFECT HOW ARE THE EVERY DAY IRAQI'S GOING TO BE ABLE TO BUY GOODS, PAY TAXES ON THE GOODS AND PAY TAXES ON TRANSACTIONS, IN THE BANKS, TO BUY DOLLARS?

TON OF PRESSURE FOR MONETARY REFORM AND THEY'RE ALSO CALLING OUT (AGAIN) THE CBI PROCEDURES -

THIS COMING ON THE HEELS OF THE HEAD OF THE FINANCE COMMITTEE, CHALABI, STATING, EFFECTIVELY THAT HE THINKS KEYWORDS IS NOT UP TO THE TASK.

THE GOVERNMENT PUT OUT A PRESS RELEASE TODAY - TO SAY THAT THEY'RE GOING TO LEGISLATE LAWS FOR BANKING AND FOR THE CBI....THIS IS A VERY BOLD STATEMENT –

THEY MEAN BUSINESS - THEY WANT CONTROL OVER THE CBI - THIS IS A CLEAR WARNING TO THE CBI TO GET THEIR ACT TOGETHER.

WE ALSO HAVE THE INVESTIGATIONS INTO THE FALL OF MOSUL HAPPENING - AS WELL AS ARRESTS PERTAINING TO SPYKER. IT SEEMS THEY'RE PREPARING A REPORT (SUPPOSEDLY, ACCDNG TO ARTICLES) TO OFFICIALLY CHARGE MALIKI RE THE FALL OF MOSUL.

A SIDE NOTE HERE - THE PARLIAMENT APPROVED A  LAW IN COORDINATION WITH THE UN TO CONFISCATION PROPERTY, ILLEGALLY OBTAINED AND HELD BY MEMBERS OF GOVERNMENT...

ALSO SALEH COMING OUT AND SAYING THAT THE 50/100 K NOTES ARE GOING TO HAVE 2/10 OF A CENT VALUE ASCRIBED TO THEM VS MOHSEN SAY LATE LAST YEAR THAT THE AMOUNT OF CBI RESERVES CAN SUPPORT THE CURRENCY 1.5 TIMES...

ONE SAYS AMOUNT SUPPORTED CAN BE DOUBLED, BUT THIS CONTRADICTS WHAT KEYWORDS/MOHSEN IS SAYING...THEN KEYWORDS COMES OUT THIS PAST WEEK AND STATES THAT THE RESERVES ARE 65 BILLION VERY FISHY IMO.

ALSO - THE IRAQ COMMERCE COMMITTEE MET WITH A TRADE DELEGATION FROM THE ARAB TRADE COMMISSION - TO DISCUSS ACTIVATING TRADE REGULATIONS FOR IRAQ TO TRADE WITHIN THE MIDDLE EAST..
THIS IS HUGS NEWS..BECAUSE WE ALSO KNOW THAT THE UN HAS BEEN WORKING WITH THE "SIGOB" DIVISION OF THE UN TO IMPLEMENT DIGITAL COMMUNICATIONS FOR THE GOVERNMENT, AND THEIR RESPECTIVE DEPT.'S AS WELL AS FOR FINANCIAL TRANSACTIONS.

AND..SHABS (SUPPOSEDLY HAVING RELEASED HIS THOUGHTS AND AIMS RE CBI POLICY - VIA THE PRESS) - NOW COMING OUT?...IT SEEMS THAT HE MAY HAVE WELL BEEN OVER SEEING CBI POLICY FOR A WHILE NOW...BIG NEWS.

MANY OF THE LAWS THEY'VE PASSED IN PARLIAMENT ARE FOR WTO REQUIREMENTS - ESP THE OVER TURNING OF COALITION PROVISIONAL AUTHORITY LAWS AND THE BREMER EDICTS, 

SO THEY CAN TAKE CONTROL OF THEIR ECONOMY -WE'RE SEEING SO MUCH FORWARD MOVEMENT FOR THE FIRST TIME IN REGARDS TO A POTENTIAL CHANGE IN THE VALUE OF THE IQD – 

SO WE HAVE MANY SITUATIONS FUNNELING TOGETHER TO CREATE ONE HUGE DYNAMIC - IRAQ IS TRYING TO LAUNCH THE PUBLIC SECTOR - IRAQ IS TRYING TO GET IT TOGETHER! 

PLEASE CLICK HERE TO SEE THE SALEH "2/10 OF A CENT" REFERENCE I REFERRED TO LAST NIGHT. I WAS ALSO BASING MY STATEMENT ON THE TITLE OF THE VIDEO - INTERESTING THREAD.

Keywords: central bank reserves of the best reserves in the world and covers the currency and a half times

Agency eighth day

January 18, 2015, 15:56

[Image: %D8%B9%D9%84%D9%8A-%D8%A7%D9%84%D8%B9%D9...h=290&zc=1] 

BAGHDAD - ((eighth day))

The Central Bank of Iraq, Sunday, that the bank reserves is one of the best reserves in the world, and while he noted covers currency and a half times, said the financial crisis that has plagued Iraq is resolved in the structuring of the economy and diversify sources.

The governor of the bank on the Keywords in an interview for a number of media, including "," The Bank retains the highest rates of good reserves of hard currency in the world compared to the money supply. "

He pointed out that "these reserves are still the currency bloc cover and a half times."

He added that the relationship "reserves are changing on a daily basis depending on oil exports as the dollar comes from these exports, in addition to the coverage of imports which are variable elements."

Noting that "what Iraq faces today from a financial crisis resolved through utensils solutions for internal and external such as loans, 

while the long-term solutions through a review of the restructuring of the economy through the budget preparation and rationalize spending and diversification of income sources and attract foreign capital."

"The financial institutions that can support can not plug in the budget that are at high levels." [b][b][b][b]http://ift.tt/1euJqUI]

http://ift.tt/1SvYGzf MORE GOVERNMENT ACTIVITIES

http://ift.tt/1euJqEe  PROTECTING INVESTMENTS

http://ift.tt/1SvYHDp TARIFF INFO

http://ift.tt/1euJqEg EXIT FOREIGN CURRENCY OPERATIONS

http://ift.tt/1SvYHTK ARAB TRADE INFO

http://ift.tt/1euJqEn GREAT GOVT NEWS AND WTO INFO

http://ift.tt/1SvYHTP WELCOME IRAQ TO THE DIGITAL AGE

http://ift.tt/1euJqUN KEYWORDS CALLED TO MANAGE EFFICIENTLY 

Content originally from http://ift.tt/1SvYJuY 


via Dinar Recaps - Our Blog http://ift.tt/1SvYJLf

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