Thread: Iraq/Dinar News. 09/05 to 01/14/07

It seems to me we are beginning to come full circle and the reval is the last link....!

Originally Posted by DayDream

Susie? Wasn't that you or was it someone else who mentioned something about Warka/debit card awhile back? If it wasn't you, do you remember it being discussed?

Cheers!
DayDream

yes i posted either an email or a story about it. it was a card attached to your account, a visa like they do over here to bank accounts. umm, bank card.

Originally Posted by CharmedPiper

Here is another coincidence....the last few links I posted pertain to the system used by Jordan......wasn't it documented by an Iraqi official that Iraq should come in somewhere comparable to Jordan as far as economic jumpstart???? I have a headache now but am I still going down the right road here???

yes i noticed the jordan link. coinkidink??

I went to the IMF website and keyed in Iraq for anything new and the only thing posted was a document posted NEW November 15, 2006 Titled: Transcript of an IMF Center Book Forum Handbook on Fiscal Federalization. I don't know if this is directly relevent to Iraq but this is what came up under keyword Iraq.


Iraq and the IMF -- All pages

Originally Posted by shotgunsusie

their original plan was to give the money in tandem with the ration cards but decided that handing out cheques would be more secure but they were going to have the ration card department hand them out at the same time as the cards. then they decided they would not have the ration card people hand them out because of their safety and they would distribute them at the banks. i have heard one report of some kurds getting their cheques but it has not been confirmed with the other 2 or 3 kurd sources we have so i cant put much weight in it yet.

Well that can't be good..can it? Unless the r/v is right around the corner or the cheques are post-dated.

Cheers!
DayDream

Originally Posted by CharmedPiper

Here is another puzzle piece....IMF and World Bank utilized ESAL.

To critics, the IMF (with the strong backing of the United States) encouraged ... for an Emergency Structural Adjustment Loan (ESAL) [is] appreciated. ...

I think this is a different "eSAL" than used by Warka. Same acronym different meaning.

Seems the eSAL @ Warka is some sort of online payment while the IMF/World Bank one is an "Emergency Structural Adjustment Loan". Regarding the Jordan pdf document you posted, it's an "Energy Sector Adjustment Loan". However i can't find the correct info about the eSAL at Warka...

Please excuse if already posted. thank you.
Baghdad Karim Hashim Aboudi
.The level of savings in Iraq deteriorated markedly, especially with the burden of living which has borne the Iraqi citizen in the light of the current phenomenon of inflation, The volatile situation of the various consumer goods and service sectors. فأThis is called the Iraqi Central Bank to a recent amendment to the approved interest rate has become 12% after it was 10%.

Bid for interest rates play a role in raising levels of saving and maintaining the level of deposits with banks.
As the Minister of Planning to Ghalib Baban told (morning) that the Central Bank's decision, which came after extensive study by the stakeholders was also aims to encourage holders of capital in addition to citizens in general on saving.
Here, the question arises in light of the reality of living is : the feasibility of raising the level of interest about the high price of the resources that can not be won with limited incomes to cover daily requirements. اIs that the process of raising the interest that brings the owners of capital at the time they face their capital abroad?.
According to the Director of Research at the Central Bank of Iraq, Dr Mohamed Saleh appearance :
- The Iraqi Central Bank the authority responsible by virtue of its No. 56 of 2004, to cope with inflation and reduced levels as a goal the basis of this principle adopted by the monetary policy in the performance of their duties, On this basis it was imperative for the Central Bank to establish policies and priorities mean here monetary policy to combat inflationary activities using the tools available.
Located in front of monetary policy variables and intermediate or intermediate objectives reflect on the relationship between the impact of these variables to reduce the general level of prices and contain inflation. Among these variables of interest rates stabilizing (long-term) and stabilizing the exchange rate, or the real, and the levels prevailing exchange, Noting that these variables can not control directly has not been targeted by similar variables. These variables or operational objectives are references or means Acharateh or information be used to influence stability in the cash market.
These signals known as interest rate, the Central Bank of Iraq, a price indication It is a navigational compass to influence the behavior of interest rates as determined why would the Central Bank lends to banks? What banks deposited in the Central Bank? under the control of the levels of cash, as it is believed that whatever the confiscation of inflation, in the end, the phenomenon of cash and Accordingly, the priorities are stability to the crisis logical to build and stimulate the economy and on this basis the inflation mainly to increase the speed of money circulation and abandoned, leading to weak demand cash and the growing demand for goods and services as counterproductive, In order to maintain the cohesion of demand and maximize cash levels in order not to turn into strong spending on goods and services to the Central Bank, the use of tools in raising the interest rate has to stimulate the interest rate structure and maintaining the coherence of savings and maximize their purchasing power helps monetary policy to address the levels of flooding e high, contained within the cash market (banking) without becoming bloc cash adrift direction of goods and services.
With retains Abdel Hassan Mohyi Shamari, the leader of the Iraqi industrial point of view, especially on the subject say :
- You know that the banks in the pursuit of balanced profitability include cover expenses with a profit margin to increase the capital annually. Through savings for citizens of certain interest rate and the lending interest rate to achieve a higher profit by the difference between them.
The decision of raising the interest rate does not achieve what we hope for increasing savings banks If we assume that the savings had increased but there is a modern and sophisticated lending and should be borrowing at an interest rate higher than the interest savings. So in the case of raising interest rate to 12% should be lending more than 18% of these high interest, We therefore believe since 1991 and so far the lending rate is very low as well as a capital in the banks and large frozen without moving.
* : What do you propose?
- I need to find laws and regulations, including sophisticated new mechanism of action for lending, It also shows the infrastructure of the country and to contribute through lending in building housing projects and support of the national industry, the agricultural lending, also lending citizens amounts not exceeding three million bail official of the State or of other citizens or grant amount for the purchase of cars and specialized production for the benefit of a simple, and she would lend the state development projects and production lines imported 70% of its value and low-interest also.
These proposals, if implemented, will create strong economic activity and which do a market economy and has many positive returns them, the production of consumer goods, durables and the elimination of unemployment, The reconstruction and rehabilitation and finally achieved if these things will be now that security is through labor.
Samir Nima Fakhri-an economist - says :
- Central Bank of Iraq to take this decision came as enough to reduce inflationary phenomenon suffered by the Iraqi economy after it peaked at the end of the month Maes of this year compared with last year Maes, since recording a boat 53% and decreased slightly to reach 52.5% in the month of June last year.
* What sectors was an indication of the phenomenon of inflation?
- That this resolution stimulates interest rates to perform their role in increasing levels of saving and maintaining the level of revenue deposits at banks as well as their impact on the rates of bank liquidity surplus in order to serve the objectives of monetary policy and priorities and economic stability in general. But raising the rate of bank interest rates to 12% will withdraw by raising the interest rate on the first investment in the Central Bank from 7% to higher rates, and thus will decrease the incentive for commercial banks to buy Treasury transfers only at high interest rates exceed (10%), this constitutes a burden on the budget. we therefore propose a bond denominated in foreign currency, especially in light of the magnitude of domestic debt. in this regard the government, As for the burdens that would have been the private sector, it will reduce the borrowing of various investments due to the increase in interest rates; and thus weaken the incentive to invest in spite of weakness already.
Economic expert Mahmoud Alvkiki talking in this regard :
- That raising interest rates would make matters worse, It will increase the cost of investment and production and reduces the efficiency of capital and of the internal rate of return for investment.
We should know that in the forefront of the major dilemmas faced by the Iraqi economy now, weak price competitiveness of its products and the high costs and declining investment and domestic production. The high rate of unemployment resulting from, The deterioration of the investment climate and environment, therefore, we do not know any increase cash liquidity frequented by the Central Bank statement?.
A study conducted by the World Food Program of the United Nations in cooperation with the Ministry of Planning and Central Agency for Statistics in Baghdad that more than half of the Iraqi people, or 15.7 million people, live on one dollar per day per capita, Of this number, more than four million people, live on less than half a dollar per person per day and they are living extreme poverty despite the receipt of the ration card, About 20 million people or more than two thirds of Iraq's people eat meat once a week. Among this number (5.2) million people also live without eggs and milk and milk as well as meat, Some of them may not obtain any of those materials even once a week, about 60% of primary school pupils were anemic, about four fifths of women of reproductive age in southern Iraq suffer from the disease itself, Any cash liquidity by the Central Bank speak? Any savings from these poor people to be even in the case of doubling profits!
: What do you propose to reduce the repercussions of this resolution?
- Prefer to give economic policy in Iraq and more attention to search more supply-side and the high cost, The factors that are behind it, including administrative corruption rampant in the districts of the state, and bureaucracy rooted deeply abhorrent delaying the supply response and stifled opportunities for progress. Although the Central Bank's decision to lift interest rates from 10 to 12% came in an attempt to curb inflation, I think that this increase is unable to make any positive impact, They are unprofitable, Valtakl impact of inflation in the capital. more interest rate, Therefore, this policy is not sufficient to maintain the purchasing power of the Iraqi currency.
:And Dr. Hisham Mohammed Amr, an economist at the Center for Research on the Arab homeland in the Mustansiriya University and point of view that says :
- Whatever our convictions and our individuals and communities of interest and the interest rate, the interest rate in this day one of the most important tools of monetary policy, They, in turn, an important branch of the macro-economic policy that can be applied by any country and is a benchmark for the performance of the economy at the macro level.
* What are the expected repercussions of this decision?
-- That the process of raising interest rates mean a contractionary monetary policy to reduce inflation rates prevailing in the national economy, especially if we know that the inflation rate in the Iraqi economy reached unprecedented figures, as is currently estimated at 70%, therefore, the process of raising interest rates mean raising the cost of lending to individuals and institutions, including reducing the Ko hill cash in circulation or exchange offer also known as encourage savers to increase their CPF and accepting huge amount of money (12%) instead of operating money, which in turn also reduces the supply of money in the short to medium term at least.
In a country economically stable, the increase of interest rates lead to increased flows of foreign capital of this country, but with the presence of high rates of inflation lead to reduced employment opportunities and slow growth of the GNP, weakening the contribution of the private sector and increasing the domestic public debt burdens of the government

Originally Posted by mustang sally

Please excuse if already posted. thank you.
Baghdad Karim Hashim Aboudi
.The level of savings in Iraq deteriorated markedly, especially with the burden of living which has borne the Iraqi citizen in the light of the current phenomenon of inflation, The volatile situation of the various consumer goods and service sectors. فأThis is called the Iraqi Central Bank to a recent amendment to the approved interest rate has become 12% after it was 10%.

Bid for interest rates play a role in raising levels of saving and maintaining the level of deposits with banks.
As the Minister of Planning to Ghalib Baban told (morning) that the Central Bank's decision, which came after extensive study by the stakeholders was also aims to encourage holders of capital in addition to citizens in general on saving.
Here, the question arises in light of the reality of living is : the feasibility of raising the level of interest about the high price of the resources that can not be won with limited incomes to cover daily requirements. اIs that the process of raising the interest that brings the owners of capital at the time they face their capital abroad?.
According to the Director of Research at the Central Bank of Iraq, Dr Mohamed Saleh appearance :
- The Iraqi Central Bank the authority responsible by virtue of its No. 56 of 2004, to cope with inflation and reduced levels as a goal the basis of this principle adopted by the monetary policy in the performance of their duties, On this basis it was imperative for the Central Bank to establish policies and priorities mean here monetary policy to combat inflationary activities using the tools available.
Located in front of monetary policy variables and intermediate or intermediate objectives reflect on the relationship between the impact of these variables to reduce the general level of prices and contain inflation. Among these variables of interest rates stabilizing (long-term) and stabilizing the exchange rate, or the real, and the levels prevailing exchange, Noting that these variables can not control directly has not been targeted by similar variables. These variables or operational objectives are references or means Acharateh or information be used to influence stability in the cash market.
These signals known as interest rate, the Central Bank of Iraq, a price indication It is a navigational compass to influence the behavior of interest rates as determined why would the Central Bank lends to banks? What banks deposited in the Central Bank? under the control of the levels of cash, as it is believed that whatever the confiscation of inflation, in the end, the phenomenon of cash and Accordingly, the priorities are stability to the crisis logical to build and stimulate the economy and on this basis the inflation mainly to increase the speed of money circulation and abandoned, leading to weak demand cash and the growing demand for goods and services as counterproductive, In order to maintain the cohesion of demand and maximize cash levels in order not to turn into strong spending on goods and services to the Central Bank, the use of tools in raising the interest rate has to stimulate the interest rate structure and maintaining the coherence of savings and maximize their purchasing power helps monetary policy to address the levels of flooding e high, contained within the cash market (banking) without becoming bloc cash adrift direction of goods and services.
With retains Abdel Hassan Mohyi Shamari, the leader of the Iraqi industrial point of view, especially on the subject say :
- You know that the banks in the pursuit of balanced profitability include cover expenses with a profit margin to increase the capital annually. Through savings for citizens of certain interest rate and the lending interest rate to achieve a higher profit by the difference between them.
The decision of raising the interest rate does not achieve what we hope for increasing savings banks If we assume that the savings had increased but there is a modern and sophisticated lending and should be borrowing at an interest rate higher than the interest savings. So in the case of raising interest rate to 12% should be lending more than 18% of these high interest, We therefore believe since 1991 and so far the lending rate is very low as well as a capital in the banks and large frozen without moving.
* : What do you propose?
- I need to find laws and regulations, including sophisticated new mechanism of action for lending, It also shows the infrastructure of the country and to contribute through lending in building housing projects and support of the national industry, the agricultural lending, also lending citizens amounts not exceeding three million bail official of the State or of other citizens or grant amount for the purchase of cars and specialized production for the benefit of a simple, and she would lend the state development projects and production lines imported 70% of its value and low-interest also.
These proposals, if implemented, will create strong economic activity and which do a market economy and has many positive returns them, the production of consumer goods, durables and the elimination of unemployment, The reconstruction and rehabilitation and finally achieved if these things will be now that security is through labor.
Samir Nima Fakhri-an economist - says :
- Central Bank of Iraq to take this decision came as enough to reduce inflationary phenomenon suffered by the Iraqi economy after it peaked at the end of the month Maes of this year compared with last year Maes, since recording a boat 53% and decreased slightly to reach 52.5% in the month of June last year.
* What sectors was an indication of the phenomenon of inflation?
- That this resolution stimulates interest rates to perform their role in increasing levels of saving and maintaining the level of revenue deposits at banks as well as their impact on the rates of bank liquidity surplus in order to serve the objectives of monetary policy and priorities and economic stability in general. But raising the rate of bank interest rates to 12% will withdraw by raising the interest rate on the first investment in the Central Bank from 7% to higher rates, and thus will decrease the incentive for commercial banks to buy Treasury transfers only at high interest rates exceed (10%), this constitutes a burden on the budget. we therefore propose a bond denominated in foreign currency, especially in light of the magnitude of domestic debt. in this regard the government, As for the burdens that would have been the private sector, it will reduce the borrowing of various investments due to the increase in interest rates; and thus weaken the incentive to invest in spite of weakness already.
Economic expert Mahmoud Alvkiki talking in this regard :
- That raising interest rates would make matters worse, It will increase the cost of investment and production and reduces the efficiency of capital and of the internal rate of return for investment.
We should know that in the forefront of the major dilemmas faced by the Iraqi economy now, weak price competitiveness of its products and the high costs and declining investment and domestic production. The high rate of unemployment resulting from, The deterioration of the investment climate and environment, therefore, we do not know any increase cash liquidity frequented by the Central Bank statement?.
A study conducted by the World Food Program of the United Nations in cooperation with the Ministry of Planning and Central Agency for Statistics in Baghdad that more than half of the Iraqi people, or 15.7 million people, live on one dollar per day per capita, Of this number, more than four million people, live on less than half a dollar per person per day and they are living extreme poverty despite the receipt of the ration card, About 20 million people or more than two thirds of Iraq's people eat meat once a week. Among this number (5.2) million people also live without eggs and milk and milk as well as meat, Some of them may not obtain any of those materials even once a week, about 60% of primary school pupils were anemic, about four fifths of women of reproductive age in southern Iraq suffer from the disease itself, Any cash liquidity by the Central Bank speak? Any savings from these poor people to be even in the case of doubling profits!
: What do you propose to reduce the repercussions of this resolution?
- Prefer to give economic policy in Iraq and more attention to search more supply-side and the high cost, The factors that are behind it, including administrative corruption rampant in the districts of the state, and bureaucracy rooted deeply abhorrent delaying the supply response and stifled opportunities for progress. Although the Central Bank's decision to lift interest rates from 10 to 12% came in an attempt to curb inflation, I think that this increase is unable to make any positive impact, They are unprofitable, Valtakl impact of inflation in the capital. more interest rate, Therefore, this policy is not sufficient to maintain the purchasing power of the Iraqi currency.
:And Dr. Hisham Mohammed Amr, an economist at the Center for Research on the Arab homeland in the Mustansiriya University and point of view that says :
- Whatever our convictions and our individuals and communities of interest and the interest rate, the interest rate in this day one of the most important tools of monetary policy, They, in turn, an important branch of the macro-economic policy that can be applied by any country and is a benchmark for the performance of the economy at the macro level.
* What are the expected repercussions of this decision?
-- That the process of raising interest rates mean a contractionary monetary policy to reduce inflation rates prevailing in the national economy, especially if we know that the inflation rate in the Iraqi economy reached unprecedented figures, as is currently estimated at 70%, therefore, the process of raising interest rates mean raising the cost of lending to individuals and institutions, including reducing the Ko hill cash in circulation or exchange offer also known as encourage savers to increase their CPF and accepting huge amount of money (12%) instead of operating money, which in turn also reduces the supply of money in the short to medium term at least.
In a country economically stable, the increase of interest rates lead to increased flows of foreign capital of this country, but with the presence of high rates of inflation lead to reduced employment opportunities and slow growth of the GNP, weakening the contribution of the private sector and increasing the domestic public debt burdens of the government

They have done this before, increasing the interest rates. No effect.

Only effect that can help now is increasing exchange rate = RV.

I am patience and wait for the day that come!!

Massoud Barzani : the Constitution preserves the rights of citizens in Kirkuk
25/11/2006

Long read that is why I only post the link!

Sotaliraq.com

Originally Posted by CharmedPiper

I am still holding strong for a November reval anybody else......come on SGS.....are you still saying December?????

Yes I am too, I cant wait until tomorrow to see how the auction is gonna go. It is difficult to know at the moment whether the exchange rate will be dropped by a few digits a day or whether they will just go for it at 1 : 1. I keep thinking about that report that said.. what was it.. 1350 by the end of the year, but if that was the case, IMO I dont think it will achieve what is needed. Its almost like they are delaying pressing the reval button.