Millionday Saturday Night News 12-19-15 Part 1 of 2

Millionday News 12/19/15  Part 1 of 2
​
Welcome to dinarupdates.com for News Time with Millionday!!
 
Millionday: NOTE -- WE HAVE SOME INTERESTING PUZZLE PIECES WITH CHINA TO LOOK AT TONIGHT
 
Millionday: The US Congress has taken a step closer to granting long-awaited approval to reforms of the International Monetary Fund that would give China and other emerging economies a greater voice in shaping the institution's policies.
 
The text of a US omnibus spending bill, released Wednesday morning as part of a budget deal, includes approval for the Obama administration to finally vote for stalled 2010 quota reforms that have become a source of tension between the US and the IMF.
 
Millionday: NOTE -- THE QUOTA REFORMS ARE FOR BUSINESS IN FRONT OF THE IMF AND THE % CHANGES THAT WERE RELEASED TO THE PUBLIC AS BEING ADDRESSED (AWAITING APPROVAL) –
 ~~~

THE US DOMINATION IS EXPECTED TO BE CHANGED WITH THE CHANGES OCCURRING WITH THE "GREATER VOICE" FROM OTHER ECONOMIES-CHINA ETC POLICIES
 
Millionday: The 2010 reforms called for a doubling of the IMF's quotas, or the capital countries contribute, and a reallocation to give countries such as China a greater say at the fund. Under the reforms now expected to go ahead, China's voting share at the IMF would increase from 3.8 per cent to 6 per cent while the US would see its share shaved from 16.7 per cent to 16.5 per cent and preserve its veto. The big losers would be European economies, which would see their voting rights diminished.
 
Millionday: NOTE -- THAT IS A HUGE LEAP FOR CHINA OF 2.2 GREATER VOICE AND FOR THE UNITED STATES OF AMERICA TO SEE ITS SHARE GO FROM .2 BUT PRESERVE THE VETO ----
 
EU COUNTRIES WILL SEE VOTING RIGHTS MINIMIZED -- VERY INTERESTING TO SEE CHANGES RIGHT NOW -- WITH OTHER NEWS WE ARE GOING TO LOOK AT
 
Millionday: NOTE -- REMEMBER THE NEWS ABOUT ASIAN ECONOMIC IMPACT WE HAVE SEEN SO MUCH OF
 
Millionday: Under the legislation, a US administration would have to inform Congress at least seven days before any IMF board vote on granting what is known as "exceptional access" to fund resources above the normal caps.
 
The bill also calls for a study into whether the IMF should require collateral for loans made under those terms, raising the possibility of countries such as Greece having to hand over control of large parts of infrastructure such as ports or power plants to the IMF in order to secure rescue funds.
 
Millionday: SO MAYBE THIS WILL LESSEN THE IMPACT ONE ECONOMY HAS ON THE GLOBE DUE TO LACK OF MONITORING AND NON-BUDGETING ETC --
 
Millionday: ALOT HAS HAPPENED IN THE RECENT PAST THAT COMES TO MIND AND ALSO THINK OF BRETTON WOODS AND ITS PURPOSE WHILE THINKING ABOUT THE TIMELINE OF THE IMF POLICIES ETC THEY ARE TRYING TO REFORM -- ALL IRONIC TO ME
 
Millionday: GREAT JOB ON THE NEWS RESEARCH TODAY EVERYONE THAT HELPED -- AMAZING AMOUNT OF NEWS AVAILABLE ON THE SITE -- WHOOOPOW
 
Millionday: I AM NOT CERTAIN IF I SPENT ENOUGH TIME REPORTING TO YOU THE MAJOR CHANGES THAT OCCURRED WHEN THE NEW MONETARY POLICY WAS RELEASED –
 
WE ARE AND WILL BE SEEING IT A LOT IN THE NEXT LITTLE BIT AS THESE CHANGES OCCUR SO LETS LOOK AT SOME OF IT
 
Millionday: I WILL NOT BE BRINGING THE ENTIRE POLICY BUT WE WILL BE LOOKING AT SOME OF THE HUGE CHANGES AND MOST IMPORTANT
 
Millionday: The changes in the CBI’s regulations and operations are designed to give the Central Bank better control of the money supply while at the same time providing greater certainty to banks with regard to the options and terms for managing their liquidity.
 
The new government securities market is also expected to play an important positive role in bank liquidity management in conjunction with these new regulations.
 
Banks will be expected and financially encouraged to manage their short-term liquidity needs with other banks (or the market more generally), turning to the central bank as a last resort.
The CBI will hold meetings with banks in the near future to discuss the proposed regulations.
 
Millionday: NOTE -- MANY MEETINGS HAVE BEEN OCCURING LATELY DUE TO THE IMPLEMENTATION OF THE MONETARY POLICY WE HAVE READ RECENTLY
 
Millionday: OBVIOUSLY CBI HAS BETTER CONTROL OF THE MONEY HOWEVER THEY HAVE ALSO SHOWN CHANGES IN THE BANKS POWER DUE TO THE RELEASED ROLES WE READ ABOUT YESTERDAY
 
Millionday: MY FAVORITE PART IN THE MONETARY POLICY THAT WE ARE WATCHING UNFOLD IS >>>>>>The new government securities market is also expected to play an important positive role in bank liquidity management in conjunction with these new regulations.
 
Banks will be expected and financially encouraged to manage their short-term liquidity needs with other banks (or the market more generally)
 
OBVIOUSLY ANY OPENING GLOBALLY WITH A MARKET ECONOMY AND THE ROLE WE SEE HERE OF ISX IS AT THE VERY LEAST WHOOOPOW EXCITING -- SMILE
 
Millionday: READ EVERY WORD >>>>>>>>>>>>>The Central Bank of Iraq (CBI) has been recasting its operational relationship with banks in order to develop market based instruments of monetary policy and to facilitate the development of the market for the new MOF securities. '

Banks will no longer be required to hold MOF securities equal to 10 percent of total deposits (now contained in the reserve requirement regulation). The CBI will no longer buy or sell the existing MOF securities at the initiative of banks.
 
In addition, the existing overdraft and advance facilities of the CBI have been closed and will be replaced by the new standing lending and deposit facilities just adopted by the CBI Board. The new reserve requirement regulation will go into effect in either October or November.
 
Millionday: NOTE -- THE STOCK SECURITIES FOR MOF (MINISTER OF FINANCE)-- MARKET BASED INSTRUMENTS WOULD BE BONDS ACCORDING TO WHAT I (NOT AN EXPERT) UNDERSTAND ---
 
SO THEY WOULD NO LONGER HAVE TO HOLD 10% OF ALL THE SECURITIES OF THE BANKS HOLDING THE DEPOSITS AND CBI DOES NOT HAVE TO BUY OR SELL THE BONDS (MARKET BASED INSTRUMENTS) JUST BECAUSE THE BANK REQUESTS IT FOR ONE REASON OR ANOTHER
 
Millionday: INTERESTING PART THEY ADDED >>> The CBI may at its discretion buy or sell MOF securities with banks in a competitive auction as required for monetary policy purposes (so called “open market operations”). The details of all of these changes are explained below-
 
Millionday: NOTE -- WOULD ANYONE LIKE TO SEE THE POINTS IN THE OPEN MARKET OPERATION CHANGES ?    Millionday: SMILE     Millionday: WHOOPOW
 
Millionday: WOW EVERYONE -- I FEEL LIKE I HIT PAY DIRT WITH THIS INFO
 
Millionday: LETS SPEND SOMETIME LOOKING AT THIS AND YOU WILL SEE WHY I AM SO EXCITED -- THIS IS HUGE IN CHANGES AND THE ENTRY TO THE GLOBAL MARKET FINANCIALLY
 
Millionday: WHOOOPOWS
 
Millionday: The design of a central bank’s monetary policy instruments should serve both to foster efficient short-term liquidity management by banks and to deliver the central bank’s desired monetary policy (which can be measured by a variety of intermediate variables, including the yield curve, the exchange rate, and the rate of growth of the monetary supply).
 
Millionday: READ EVERY WORD
 
Millionday: With regard to liquidity management, the central bank’s policy instruments must work together with money and securities markets and an efficient payment system to provide banks with confidence that they can always meet their payment obligations at a reasonable cost.
 
Millionday: NOTE -- THE NEW POLICY REQUIRES CBI MUST USE THE FOREX SYSTEM OF MONEY SECURITIES -- FOREX -- IN ORDER TO ALWAYS PROVIDE CONFIDENCE IN THE ABILITY TO MAKE THE PAYMENTS DUE TO MEET THE AGREEMENTS THEY HAVE MADE CONCERNING DEBTS
 
Millionday: WHOOPOW
 
Millionday: The most certain, but also the most costly, form of liquidity is provided by excess reserves (vault cash and balances with the central bank in excess of required reserves). ]
 
Intermediation spreads (the difference between interest rates on deposits and on loans) can be narrowed by enabling banks to minimize their holdings of non-interest yielding excess reserves. Bank’s ability to minimize excess reserves depends on the availability of other reliable means of liquidity management.
 
Millionday: NOTE -- EXCESS LIQUIDITY IS COSTLY BECAUSE MONEY IS NOT WORKING FOR ONE THING -- MONEY SHOULD ALWAYS BE MAKING MONEY (AMONG OTHER THINGS)
 
Millionday: THE DIFFERENCE BETWEEN MONEY MADE IN INTEREST YOU HAVE AND YOU ARE CHARGED ON DEBTS YOU HAVE -- THIS IS WHY IT IS IMPORTANT TO HAVE HIGH CREDT RATINGS AT ALL TIMES FOR COUNTRIES AND PEOPLE -- SMILE
 
Millionday: NOW WE ARE GOING TO SEE THE COMPARISON TO HOW THE MONETARY POLICY WAS AND THE CHANGES IN THE NEW -- COMPARE
 
Millionday: NOTE -- GET YOUR HATS THIS IS SO EXCITING IT PUTS TEARS IN YOUR EYES-       HERE WE GO     WHOOOPOW
 
Millionday: NOTE -- CURRENT MEANS THIS IS THE OLD ONE WITHOUT ANY CHANGES FROM THE NEW POLICY

Millionday: The CBI currently has the following active and passive instruments that affect market liquidity (base money):

• Foreign exchange auctions, in which the CBI buys or sells dollars to the market in light of its policy objectives;

• A reserve requirement regulation that requires banks to hold in relation to their customers deposits: differentiated levels of deposits with the CBI, vault cash, and MOF securities.

• An Overdraft Facility, for banks with reserve account balances at the CBI that are not sufficient to settle their net end of day payment obligations;
 
Millionday: NOTE -- REMEMBER I JUST SHOWED YOU THAT THE CBI BOARD JUST APPROVED THE OPENING OF THE NEW FACILITY THAT WILL BE USED INSTEAD OF 

• An Overdraft Facility, for banks with reserve account balances at the CBI that are not sufficient to settle their net end of day payment obligations;
 
Millionday: • A Discount Window for bills of exchange and similar bank paper with a maturity of less than 90 days and at least two endorsements (currently charging 11% for good quality paper);

• Lender of Last Resort Facility, which provides individually negotiated loans against collateral, for banks with chronic liquidity problems;

• MOF securities Window, at which banks may buy or sell MOF securities at par (i.e. at issued interest rate).
 
Millionday: NOTE -- THIS IS ALL THE MAJOR POINTS THAT CAN NOT AND DO NOT REMAIN IN THE NEW MONETARY POLICY


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

via Dinar Recaps - Our Blog http://ift.tt/1S2gDXt