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Friday, July 22, 2016

BLC Admin & Member News & Comments 7-22-16 Part 2 of 2

Post From BondLadys Corner

BondLady & Tlm724 News & Comments 7-21-16 Part 2 of 2

Bondlady    thank you to  all that replied with there opinons, and comments ...I was hopeing for more as blc has almost 11,000 active members..incert blank stare here lol....
 
any whos congrats to the ones who replied, I agree with all u have said, but there is a difference to now compared to past articles about changing the rates and a few times in the past theve did this before,
 
but then...they were really scared to do it not only it will give the people real money to buy things and work for real wages and actually move up in there world economically...
 
ive noticed in my studies of the majority of the middle east the rich are very very rich and the poor are very very poor, this is the reason the people are very poor, because the rich keep takeing any kind of monetary gains for them selves while the poor struggle and just get by or they die. 
 
a article the other day said they had like approx. 30 trillon out in circulation and not in banks...the cbi is telling these different banks to make loans, the banks don't wanna loose there liquidity , don't u think they might just see a rate change coming soon?
and not want to make these loans at the present the cbi wants more of the dinar bk into banks so they will eventually end up at the cbi to be destroyed or replaced...
 
the banks need to get the people to trust them to keep there money safe...Iraq wants to become a paperless society, using there smart cards as debit cards and deposit protection laws just passed an should be active...
 
the banks have to promote and prove there banking services to the people and for a rate change and its been my opinon they have to do something effective to get the people to  not only use the dinars there hording and stay away from the dollar...which they may hate us but they love our dollar....
 
only way imo they could do that is to make it significant enough to make the people notice and regain pride if they ever had any in there own currency.   if they use the dinar its value raises if they don't it drops....
 
if they raise it inflation also sets in until it can get rounded out imo, which id like shred to weigh in on this too, if u don't mind please....so imo 5 or 6 yrs ago imo the dinar could have supported a 1 to 1 with the dollar and they had more usd in reserve then than they did now but they had less gold too Wink
 
so they could do it but they need people to use what they have on a daily basis so the dinar can find its way bk to the cbi, making less in circulation,  if they don't with all the crisis going on in there country they may be forced..(cause the people just don't trust the banks or the gov with there money so they horde it))...
 
to raise its value while theres still this much in circulation to make the people come off it...
 
the fact that this article even exists means they are working on this right now, they are discussing all the pros an cons of it as theve done the last few times theve been ready to move the dinar rates or do something with the currency....
 
that's the important thing here, and they have the imf an world bank making them do what they should have done ...and we all knew it then an we know it now....
 
back when oil was over a 100$ barrel an they had so much more money to steal...now they don't ...too many eyes are watching there every move...things are changing an we all know its long over due....
 
its time for Iraq to grow up ....there never gonna get more security in there country than they have right now..the world is there and now with the international world protecting the marshes even that had restrictions Iraq MUST abide by just like the security, and the economic...world bank imf etc....
 
they have to comply with all these orginizationss to get the money and there getting money and services from all these countries and they have to comply with all the terms or Iraq is over as they know it..imo.....
 
a day a week a few months from now I don't know but this is definantly different than the last 10 plus years...I really do expect things to change in a big way with the new agreements made with talibani 
 
 the kurd and bagdad were gonna see major laws p[assed that have to be or Iraq cant move forward mentally or physically..or economically...
 
the things all the countries are supplying them with , money, security, weapons, all of it they all have to do it to make it work out or its over for them, they know it that's why were gonna see change,
 
not because they want to change but because finally they don't have a choice any more....every thing is tied into there mindsets,   things have to come to a end and things have to be settled withing the tribes ..
 
art 140...hcl...several more huge things and I believe we will see those come to light very soon...hang in there every one ...its lookin very good for us all imo...BL
 
RCS1947      Thanks Bondlady!  I think we all are encouraged to see articles such as this discussing a rate change and the pros and cons of any movement.
 
The recent actions by donor countries helping Iraq, the World agencies making loans, neighboring countries such as Kuwait making loans and postponing payments are all indicators that the world at large will push Iraq into making these decisions to move them forward.
 
I am excited to see the progress they have made just this year (although painfully slow) with laws and banking. All these actions will push the CBI into a tipping point of a rate change soon, imo.
 
Herb62    https://www.youtube.com/watch?v=9xJkUyotSc4
 
tlm724   Thank you very much BondLady and for everyone who gave their opinions, it is much appreciated ! I spent some time this morning researching some numbers. I did a comparison of Iraq and Kuwait since I like Kuwait's exchange rate : 1 Kuwaiti Dinar equals 3.31 US Dollar.
 
I agree with most of what was said. The improving security environment and foreign investment are helping to spur economic activity, much more attention needs to paid to the private sector and that is on the table.
 
The overall standard of living still depends on the central government passing major policy reforms and laws as BondLady pointed out and that too is being addressed, it is just a matter of time.
 
As I said I did some research so I could answer that old question : Can Iraq support a one to one exchange rate? Well the answer is a resounding hail Yes and then some! Here are the statistics I want to share with you all:
 
CIA The World Factbook
 
COUNTRY COMPARISON :: RESERVES OF FOREIGN EXCHANGE AND GOLD
Reserves of foreign exchange and gold compares the dollar value for the stock of all financial assets that are available to the central monetary authority for use in meeting a country's balance of payments needs as of the end-date of the period specified.

RANK    RESERVES OF FOREIGN EXCHANGE AND GOLD   
 
37    IRAQ    $57,070,000,000    31 DECEMBER 2015 EST
 
49    KUWAIT    $31,430,000,000    31 DECEMBER 2015 EST
 
http://ift.tt/1cQaKIv
 
Isn't that pretty ? Iraq has quite a bit more gold and reserves Wink Now of course there are vast differences between the countries but that is a different discussion. Here is a oil reserve chart since that's both their game :Iraq is in Blue

http://ift.tt/2a1zrqy
 
  
Therealbubbie    here's my comment ... Iraq= https://www.youtube.com/watch?v=kCFQbA7mc7k  bounce bounce bounce bounce bounce bounce
 
Bondlady     IMF says no reason to devalue Iraqi Dinar
 
(IraqiNews.com) BAGHDAD – International Monetary Fund (IMF) has approved a three-year $5.34 billion loan for Iraq. The loan is focussed on implementing economic and financial policies to help Iraq cope with lower oil prices and ensure debt sustainability.

In a statement issued by the IMF it was mentioned that the loan would be provided under the ‘Stand-By Agreement’ facility and it includes measures to protect vulnerable populations.
 
In an interview with IMF news, the transcription of which was also obtained by Iraqi News, IMF mission chief for Iraq Christian Josz said, “The program is designed with a focus to- reduce budget spending and stabilize debt; protect spending on the social front to ease the lives of the poorest, IDPs and refugees; improve the quality of public spending and begin the process of restructuring state-owned banks.”
 
Iraq has maintained a peg to the US dollar for years and it has served the Iraqi economy well. The peg helps provide stability amidst a highly uncertain environment, especially with policy capacity weakened by the fight against ISIS,”Josz said, adding, “Iraq is predominantly an oil exporter and devaluing the Dinar would have minimal bearing on the economy’s overall trade competitiveness.”

“The authorities can also spur private sector-led growth by restructuring state-owned enterprises and prioritizing investment projects, which will help improve infrastructure development,” Josz further said, before concluding, “The authorities are committed to maintaining the Iraqi Dinar’s peg to the US dollar under these circumstances, and we support this view. There is no reason to devalue the Iraqi dinar.”
 
 July 21, 2016 at 4:43 pm | Categories: Reports & News | URL: http://ift.tt/2a0B6cv;
      
http://ift.tt/2a1zy5n [/ltr]
 
tlm724    Thanks for posting this one BondLady "IMF says no reason to devalue Iraqi Dinar". I found the direct quote by the IMF mission chief for Iraq Christian Josz on July 14, 2016 on the IMF site :
 
IMF News: Can you explain the significance of maintaining the Iraqi Dinar’s peg to the U.S. dollar?
 
Josz: Iraq has maintained a peg to the U.S. dollar for years, and it has served the Iraqi economy well. The peg helps provide stability amidst a highly uncertain environment, especially with policy capacity weakened by the fight against ISIS. Under current circumstances and given the nature of the shocks, moving towards more exchange rate flexibility would not be warranted for two key reasons.
 
First, Iraq is predominantly an oil exporter, and devaluing the Dinar would have minimal bearing on the economy’s overall trade competitiveness.

Second, there is a notable degree of import dependence—almost half of Iraq’s consumption needs are imported—and devaluation would immediately trigger a spike in inflation for most food and other consumer goods, which would exacerbate already difficult social tensions. The authorities are committed to maintaining the Iraqi Dinar’s peg to the U.S. dollar under these circumstances, and we support this view.
 
http://ift.tt/29Hp3nF
 
Reflection    Iraqi government =  RUN-DMC - You Talk Too Much
https://www.youtube.com/watch?v=EheLN-MDzrA
 
 
Reflection     As long as they wait until November 9th or later to raise the exchange rate, I'm good.
 
 
Shredd      This article captures most of the upside of having the dinar on par with the dollar. I'll list em for ya!
 
1. Having a sovereign, representative currency that is consistent with the cash reserve ratios
 
2. Having a strong dinar rate that contributes to the national currency trading in foreign markets (huge btw)
 
3. Fully implement the project to delete the zeros which provides an exit from the country's economic crisis
 
4. Restoring the money supply structure in line with the market data
 
5. Allow for transparent, compliant trading currency between banks and other institutions operations
 
6. Have a currency rate that responds to market fluctuations in a consistent manner
 
7. The national currency trading outside the country would have a positive impact to buy more goods and services for the benefit of the country
 
8. Grow GDP with a diversified balanced economy via a balanced increase of costs of goods and services while also increasing wages.
 
9. Finally have transparent financial openness, which contributes significantly to investment because of a healthy banking system which in turn stimulates the global banking industry
 
10. Move to a single currency regime and move out of currency auctions 
Shredd     Let me also add that the IMF's continued support and re-clarification that the peg to the dollar is in place is a good thing.

It is just a matter of time that the dinar will gain value as Iraq diversifies in it's outputs and regrows its reserves from oil revenues.

 
We are not invested in some penny stock that we're hoping to get rich on like the inbred, get-rich-quick dummies do.

​We are invested in a sovereign currency for a wealthy country that is a new democracy and who has immense global support for economic dependence and participation in global economic growth.

 
http://ift.tt/29O05AU


via Dinar Recaps - Our Blog http://ift.tt/2a1zS4e

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