Wealthwatch Wednesday Evening News & Comments 1-27-16

WEALTHWATCH  1-27-16
Post From Wealthwatch.world  Chat Room
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Wealthwatch  News & Comments   1-27-16 
 
Butifldrm: Good Evening
 
Butifldrm: Donnie great article! If Iran is moving toward a float, that could greatly influence the CBI
 
Butifldrm: Saturday, January 23, 2016 - 02:00 CBI Says Let the Market Decide Currency Rates Donnie: The post-sanctions economy offers the promise of revitalizing the economy, said Valiollah Seif, governor of the Central Bank of Iran.
 

Tapping into bank loans and the foreign exchange market are at the forefront of measures to lift the economy in the new era, he added, ILNA reported. “We should let the market decide the real rates and avoid interfering with market mechanisms or rate setting in the forex market,” he said calling for “genuine” foreign exchange rates.
 
Butifldrm: Tonight I found and article, that described the government economists in Iraq are taking on the same thinking
 
 Butifldrm: It's a long article, but I will post the possibility here in chat
 
Butifldrm: spin in the corridors of government joints talk of asylum authorities to " float the dollar, "and gradually move away from the" currency auction "to overcome the financial crisis in the country, and feeds those conversations sudden rise witnessed in the dollar exchange rate, which stood at 1 260 Iraqi dinars price, after it was during the past few days ranges between 1200 - 1230."
 
This process could only happen if the CBI removed the Dinar's article XIV protection and moved fully into article VIII giving the Dinar an internationally traded value. In this event, the Dinar would have to unpeg from the Dollar. Evidently the economists in the government understand that the Dinar would loose value if this process were to happen.
 
 The market would then eventually decide the true rate. Since, the CBI/Mohsen are in full control of this process, there is supposedly a study going on to evaluate the true value of the Dinar and since recently, the IMF has come out said that the Dinars Peg to the dollar suits Iraq's situation well due to the fall in oil prices and the security situation with ISIS, http://ift.tt/1OirvxC...
http://ift.tt/1UtpMr6
 
I believe the value will remain status quo until the CBI can no longer support the Dinar's Peg to the dollar.
 
Butifldrm: wealthwatch.world/showthr...
http://ift.tt/1UtpMr8
 
rocknrollbus: The Iraqi's are headed back home from http://Germany.............www.reuters.com/article/u...
http://ift.tt/1nzowII
 
 
Butifldrm: I know there are many of you that believe the IQD is going to miraculously go from 1182 to 3.86. I too, at one time thought the same in my life just a few years ago. I just want you to know that markets decide THE VALUE OF INTERNATIONALLY TRADED CURRENCIES, such as the forex. Iraq has chosen to stay under the protection of article XIV, protected from litigation of previous debt.
 
Butifldrm: ‹@rocknrollbus› I read where they had a huge conference on the loss of their intellectuals, I hope some of the returning are those
 
Butifldrm: Iraq, would definitely have to move from article XIV protection to article VIII to make any significant move in the value of their currency
 
Butifldrm: In previous years prior to ISIS AND DURING THE MALIKI ADMINISTRATION, the IMF had given much guidance on that move and because of corruption, Iraq did not listen
 
Butifldrm: now, the IMF agrees Iraq should stay pegged to the dollar
 
Butifldrm: IMO, Iraq will run out of reserves within less than a year, if they maintain this peg.
Butifldrm: Oil would have to go over $45 dollars a barrel just to barely meet the budget
 
Donnie: ‹@Butifldrm› TY. very informative posts tonight.
 
Donnie: Decline in revenues in the border ports of Basra to zero after the application of the tariff law
 
Donnie: Committee announced the border crossing points in the Basra Governorate Council, on Wednesday, falling land and sea ports revenues in the province to zero due to suspension of the introduction of imported goods as a result of the application of the tariff law operations, while the General Company for Ports confirmed that the commercial ports has been paralyzed due to the application of the law.
 
Donnie: read more here: http://ift.tt/208zx4Y; http://ift.tt/208zx50
 
 
Donnie: The Chairman of the Committee of border crossings Morteza cream lipodeca "The tariff law went into effect three days ago at all land and sea border crossing points located in the province, has led to the decline of financial revenue to the zero level,
 
and become almost non-functional as a result of the reluctance of traders to import goods of which, "noting that" a lot of traders and importers of the people of the southern provinces went to the Kurdistan region to introduce their goods through border outlets because the tariff for Aitbak the law. "
 
Donnie: "The tariff law went into effect three days ago at all land and sea border crossing points located in the province"
 
Butifldrm: speculators, are suggesting that oil will take until 2020 to reach previouos prices
 
Butifldrm: ‹@Donnie› Hi honey
 
Donnie: hmmmm... seems the tariffs didn't work out too well in Basra so far.
 
Butifldrm: ‹@Donnie› yes that happened the last time the Tariffs were introduced
 
Butifldrm: all the importers would take their goods through Kurdistan into Iraq to keep from paying the Tax  lol
 
Donnie: yup!!
 
Butifldrm: because Kurdistan did not comply with the governments demands
 
Butifldrm: I read earlier in chat that Barzani has now declared Kurdistan as Bankrupt!
 
Butifldrm: this is saddening
 
Butifldrm: I'm sure the lack of liquidity is the reason why the articles are coming out about Kurdistan printin their own currency

Butifldrm: The President of the Kurdistan Regional Government Nechirvan Barzani, on Wednesday, for the bankruptcy of Kurdistan region of Iraq, stressing that there was no money in the region.
 
Barzani said in remarks reported by "Rouado" and seen by / information /, that "in fact, there are no funds with the Kurdistan Regional Government, is there worse than to have the government money and distribute it?".
 
Barzani said that "the biggest challenge to the Kurdistan region now is the financial issue." Barzani pointed out that "all our attempts aimed to secure salaries, our priority is the fight against Daash and secure the salaries of the Peshmerga, then ministries and other institutions and the salaries of insurance." Finished / 25

Donnie: http://ift.tt/206kXe7....
http://ift.tt/206kXe7..

Donnie:   http://ift.tt/1UtpNeK    

PIC  / GRAPH REMOVED
 
Donnie: click on chart image. S&P 500 is down 4% since last Oct and Crude Oil is down 35% for the same period.  FILE  REMOVED
 
OOTW: I JUST WANTED TO POINT YOU ALL TOWARDS A GREAT ARTICLE POSTED BY DONNIE LAST NIGHT IN CHAT
 
OOTW: wealthwatch.world/showthr...
http://ift.tt/208zxle

OOTW: CBI Says Let the Market Decide Currency Rates (CENTRAL BANK OF IRAN)
 
OOTW: BUTIFLDRM MADE SOME GREAT COMMENTS ON THIS ARTICLE THAT LED TO A DISCUSSION ON THE POTENTIALLY SIMILAR ACTIONS BY THE CENTRAL BANK OF IRAQ
 
OOTW: I HAVE POSTED HER COMMENTS AND ADDED ONE OF MY OWN IN THE THREAD...VERY MUCH WORTH READING, VERY ENCOURAING
~~~~~~~~

Post By OOTW:
Markets | Fri Jan 22, 2016 12:00pm EST
 
Exclusive: Iran to be hooked up to global banks in weeks - Middle East Bank
 
LONDON | BY JONATHAN SAUL  An Iranian flag flutters in front of the United Nations headquarters in Vienna June 17, 2014.  REUTERS/Heinz-Peter Bader
 
An Iranian flag flutters in front of the United Nations headquarters in Vienna June 17, 2014.
 
REUTERS/HEINZ-PETER BADER
 
International banks are preparing to re-establish links with their Iranian counterparts using the SWIFT transactions system, the head of Iran's Middle East Bank told Reuters on Friday.
 
But it is likely to take at least two weeks before the connections will be set up, which will allow Iranian lenders to engage with the global banking world for the first time since international financial restrictions were imposed in 2012.
 
A nuclear deal between world powers and Iran led to the removal of the curbs on Tehran's banking, insurance and shipping sectors at the weekend, as well as restrictions on oil exports.
 
The SWIFT system, or Society for the Worldwide Interbank Financial Telecommunications, is used to transmit letters of credit and payments.
 
"We have sent almost 40 SWIFTS to different banks around the world and we have requested that now that the sanctions are lifted, we would like to exchange documents and whether they will consider a correspondent banking relationship," said Parviz Aghili, chief executive and managing director of Tehran-based Middle East Bank. "Some of them have come back and have asked for various questions, for documents they need."
 
"My feeling is it is going to take a couple of weeks or so before we start to see proper re-engagement. It will be slowly, slowly," he said in an interview.
 
 Aghili said other Iranian banks were in the same situation regarding SWIFT as his company, which is privately owned by investors that include small and medium-sized Iranian firms.
 
SWIFT did not respond to a request for comment on the status of communication between Iranian and international banks on its system.
 
Aghili also said he anticipated Iran's central bank would at some point force lenders to adhere to international capital standards, known as Basel III - a move that would press them to bolster their balance sheets.
 
A senior official with Iran's central bank declined to comment when asked on Friday about possible measures.
 
(Additional reporting by Philip Blenkinsop in Brussels; Editing by Rachel Armstrong and Pravin Char)
 
http://ift.tt/1ZSnNmS

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