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

Millionday News 12/19/15  Part 2 of 2

Welcome to dinarupdates.com for News Time with Millionday!!
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Millionday: NOTE -- NEXT I AM GOING TO SHOW YOU THE CHANGES IN THE NEW MONETARY POLICY THEY ARE IN THE MIDDLE OF IMPLEMENTING DUE TO ABADI ACTIVATING THE ECONOMIC REFORM –
 
THE MONETARY POLICY IS PART OF THE ECONOMIC REFORMS AS IS THE BANKING AND ALL FINANCIAL REFORMS OBVIOUSLY
 
Millionday: HERE WE GO -- HOLD YOUR HATS
 
Millionday: The above instruments are not adequate for the development of an efficient market oriented financial sector. In particular, they are not adequate or appropriate for developing an efficient and liquid market in government securities or for conducting a market based monetary policy.
 ~~~

Millionday: NOTE -- AS I WAS SAYING -- THOSE THINGS IN THE LIST WILL NOT WORK IN A GLOBAL ECONOMY -- INTERNATIONALLY RECOGNIZED CURRENCY AND A MARKET ECONOMY (ISX) ETC
 
Millionday: While the new FX auctions are well designed and are functioning satisfactorily, the other instruments are being redesigned. The reserve requirement does not provide banks with a useful liquidity management tool and would have complicated the implementation of a monetary target.
 
Millionday: NOTE -- LIQUIDITY RULES ETC ARE NOT USEFUL IN THE NEW POLICY AND THE NEW >>>>>>>>>>>>>>TARGET<<<<<<<<<<<<
 
Millionday: Articles 28, 29 and 30 of the CBI law establish the CBI’s powers to conduct open market operations, provide standing facilities for banks, establish reserve requirements, and, under exceptional circumstances, provide Lender of Last Resort credits. These articles provide the basis for the modern policy instruments being adopted by the CBI.
 
Millionday: NOTE --- BY CBI LAW >> ARTICLE 28, 29, 30 ALLOW AND ESTABLISH THE POWER FOR CBI TO TAKE THE NATION`S CURRENCY (IRAQI DINAR) TO THE MARKET >>>>>>>>>>

These articles provide the basis for the modern policy instruments being adopted by the CBI.>>>>>>>>>>BEING ADOPTED BY CBI –

THE MODERN POLICY MEANING THE NEW MONETARY POLICY BEING IMPLEMENTED WITH THE ECONOMIC REFORM AND CBI LAW
 
Millionday: I HOPE YOU DIDNT CHEW YOUR HAT UP YET
 
Millionday: THE NEW CBI LAW GIVES CBI THE POWER TO DO WHAT THEY ARE IN THE PROCESS OF DOING --- TAKE THE DINAR TO THE GLOBAL MARKET ECONOMY
 
Millionday: WHOOPOW
 
Millionday: I HOPE YOU KNOW THIS IS WHAT WE ARE WAITING FOR
 
Geofitness: But how do we know the CBI will do what they say since Dr Shabs is not the head anymore. It's been said he must be reinstated before this RV could happen due to the corruption
 
Millionday: HOLD YOUR HAT AND READ EVERY WORD -- VERY IMPORTANT
 
Millionday: CBI is introducing a new requirement, better designed for the needs of monetary policy in a market economy. Where they exist, reserve requirements almost universally are seen as a tool of monetary policy rather than banking supervision.
 
Thus the responsibility for monitoring each bank’s compliance with the revised requirement has been moved from the Credit and Banking Control Department to the Agreements and Loans Department, the department with primary responsibility for monetary policy implementation.
 
Millionday: NOTE -- THIS S VERY IMPORTANT DUE TO ITS COMPLIANCE WITH INTERNATIONAL ACCOUNTING STANDARDS
 
Millionday: NOTE -- I SEE THIS AS AN ISSUE OF POWER TO THE BANKS WITHIN THE ROLES THEY PLAY BY LAW AND ALSO THE BASEL REQUIREMENTS WHICH ESTABLISH THE LIQUIDITY REQUIREMENTS AS WELL (I AM NOT A BANKING EXPERT)
 
Millionday: NOTICE THAT THIS IS BEING INTRODUCED AND IMPLEMENTED -- THIS IS NOT A DREAM OR AN OPINION PIECE -- THIS IS OFFICIAL CBI DOCUMENT
 
Millionday: For monetary policy purposes a uniform requirement (i.e., the same ratio for all reservable deposits) is preferable. The ratio in the new requirement is applied to all deposit liabilities in the definition of money because that makes the money multiplier (the ratio of the quantity of money to base money) more stable and predictable.
 
Millionday: NOTE -- WITHIN BASEL REQUIREMENTS -- BANKS VARY IN THE REQUIREMENTS DUE TO THE ROLE THEY PLAY WITHIN EACH NATION FOR THAT NATION -- I AM TALKING ABOUT BASEL III REQUIREMENTS COMPARED TO BASEL II REQUIREMENTS ETC -----
 
THE WAY THAT I UNDERSTAND THE PLAN THEY HAVE IN IRAQ IS TO MEET A HIGHER BASEL REQUIREMENT THAN THEY ARE EXPECTED TO SO THEY MAY MAKE CHANGES IN THE BANKS ABILITIES OR SERVICES WHEN THE MARKET MAY SHOW THE ABILITY FOR THAT BANK TO SUSTAIN AT A HIGHER BANKING ROLE
 
Millionday: In addition, it has a neutral impact on the public’s choice of deposit maturities, which from a “tax” policy perspective is preferable. Foreign currency deposits are also included in the deposit base for the reserve requirement so as not to favor foreign currency deposits and hence dollarization. The requirement against both dinar and foreign currency deposits must be meet with dinars.
 
Millionday: NOTE -- THIS IS SAYING WITH THE NEW MONETARY POLICY AND HOW IT APPLIES TO BANKING POLICY IS THAT NO MATTER WHAT CURRENCY THEY HOLD THEY MUST HAVE THE REQUIRED % IN DINAR FOR THE AMOUNT THEY ACTUALLY WOULD BE REQUIRED AT THAT VALUE –
 
 THIS WILL Allow the bank the option to RATHER DEAL IN DINAR AND ACTUALLY SEE GROWTH FOR STAKEHOLDERS IN THE SECURITIES (ISX)
 
Millionday: THEY ARE GOING TO HOLD THE BANK TO THE AMOUNT OF RESERVES THEY WOULD HAVE TO HAVE IN DINAR WITH THE NEW MONETARY POLICY AND BANKING STANDARDS
 
Millionday: In the new requirement these are combined so that the single, uniform requirement may be satisfied by the sum of each bank’s vault cash and current account deposits with the CBI.
 
The primary benefit to banks of the new requirement results from allowing the requirement to be met on average rather than on a continuously basis. The requirement will continue to be established for monthly periods but the current frozen deposits will be moved into the single clearing account for each bank.
 
Millionday: NOTE -- THE RESERVE REQUIREMENTS ARE ALONG WITH MODERN BANKING -- ( I AM NOT A BANKING EXPERT)
 
Millionday: WHOOOPOW I AM LOVING SEEING THE NEW POLICY BEING ACTIVATED AND SEEING THE LIGHT IN THE TUNNEL THE GLOBAL MARKET -- WHOOPOW
 
Millionday: NOTE -- WHAT KIND OF DINARS DOES THIS SAY? SMILE
 
Millionday: The assets that must be held on average to satisfy the requirement will be banks’ Iraqi dinar deposits with the central bank (other than in the standing deposit facility) plus their (new) Iraqi dinar cash in their vaults.
 
Millionday: WHOOOPOW
 
Millionday: NOTE -- IF I WERE A BETTING WOMAN --- I WOULD SAY THE -- NEW CBI BUILDING IS GOING INTO USE
 
Millionday: The CBI Board has set the reserve ratio at 25 percent. Because the new reserve requirement allows banks to use their dinar vault cash to satisfy the requirement, bank’s reserve assets will be greatly increased.
 
To limit the impact of this change on bank liquidity (without raising the requirement ration even more), the Board also stipulated that 20 percent (of deposits) must be meet by deposits at the CBI and 5 percent (of deposits) by vault cash.
 
Millionday: NOTE -- THE TOTAL PERCENTAGE NEEDED FOR A BANK TO HAVE ON HAND IS 25% --
 
AS WE HAVE TALKED ABOUT BEFORE -- BANKS ARE NOT REQUIRED TO HAVE ALL IN CASH OF THE MONEY DEPOSITED IN THEIR BANKS AT ALL GIVEN TIMES ---
 
THEY HAVE A TOTAL OF 25% AT CBI UNDER THE NEW MONETARY POLICY THEY ARE IMPLEMENTING
 
Millionday: NOTE -- THE NEW CBI LAW
 
Millionday: The new central bank law provides for the CBI to establish standing lending and deposit facilities. A standing lending facility and a lender of last resort facility will replace the existing over draft and advance facilities now in use. The new law does not permit overdrafts of banks’ balances with the CBI.
 
The purpose of standing credit and deposit facilities is to provide assurance to banks that they can manage their excess liquidity within a modest range of interest rates that straddle the central bank’s policy objective for short term rates.
 
Millionday: NOTE -- THE NEW LAW ALLOWS BANKS TO LOAN FUNDS AND THE AMOUNT OF 25% IS THE STANDARD THEY WILL USE THAT THEY WILL HAVE ON HAND –
 
THIS WILL HELP BANKS GAIN CONFIDENCE IN WHAT THEY LEARNED ABOUT BANKING IN THE MODERN MARKET AND ALSO WILL REDUCE CORRUPTION WHILE COMPLYING WITH INTERNATIONAL ACCOUNTING STANDARDS
 
WHILE AT THE SAME TIME ADDING CONFIDENCE TO BANKING FOR CITIZENS AND ACTUALLY THROUGH THE GOVERNMENT LAWS AND BENEFITS AS WELL ---

THIS IS HUGE FOR IRAQ -- BIG CHANGE AND MODERNIZATION
 
Millionday: SO AS WE SEE -- CBI IS VERY BUSY PUTTING IN PLACE MANY CHANGES WITHIN THE SYSTEM AS WE KNOW THE BANKING CONFERENCE THAT TOOK PLACE ON THE 12TH AND 13TH WERE TO EDUCATE
 
AND ANSWER ANY QUESTIONS ON ALL THE NEW POLICIES BECAUSE KNOWLEDGE IS POWER AND THIS WILL ONLY MAKE A DIFFERENCE IN THE COUNTRY IF IT IS IN UNIFORM AND APPLIED AS WRITTEN
 
Millionday: HUGE FOR IRAQ AND TO ME IS EVRY EXPLANATORY TO WHAT WE HAVE BEEN READING IN MOST ALL REPORTS FOR THE LAST FEW WEEKS
 
Millionday: WHOOPOW
 
Tiger: what a change of focus recently.
 
Millionday: I AGREE TIGER IT IS VERY INTERESTING HOW MUCH CHANGE HAS HAPPENED AND IN WHAT WE SEE AS A SHORT PERIOD
 
efriscone: Did the budget get posted today?
 
Millionday: I HAVE NOT SEEN INK ON IT BEING PRINTED ---
 
misterq: Any important happenings coming up before the end of the year???? 

Millionday: IMO THE ANNOUNCEMENT THAT THE TERRORIST GROUP WILL BE REMOVED FROM MOST AREAS EASILY THAT WAS MADE WAS PRETTY BIG
 
BUT THE HCL IS EXPECTED WITHIN HOURS AND THE TRIP TO CHINA --- I HAVE SOME THINGS TO SHOW YOU -- I WILL PUT IT THAT WAY LOL
 
Millionday: IMO THERE COULD BE A VERY IMPORTANT HAPPENING BEFORE THE END OF THE YEAR
 
Millionday: BUT NEED INK ON EXACT DATE LOL
 
Millionday: THIS WEEK I AM GOING TO WORK ON A LIST OF THINGS THAT WE NEED TO THINK ABOUT –
 
NOT MAKING ANY PROMISES BUT IF ANYTHING HAPPENS IN YOUR ECONOMIC SITUATION IT IS NICE TO KNOW WHAT YOU SHOULD DO IN THAT CASE SO WHEN NEWS IS SLOW WE ARE GOING TO SPEND 0NE NIGHT GOING OVER A LIST OF SOME IDEAS I HAVE WORKED ON FOR MY CLOSEST FRIENDS
 
Millionday: HAVE A GREAT NIGHT AND I HOPE YOU ALL LIKED THE NEWSTIME AND THE EXPLANATION OF SOME VERY EXCITING CHANGES TAKING PLACE
 
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