Thread: My Turn With My Source. {Friend}

NENO,

SENT YOU A PM.

Mtgrown

The only thing that has me confused is why is JP Chase selling dinar for pennies if they know the dinar will increase to $1.02? Big banks aren't in business to give away their money and right now JP is only making $5 per transaction. Any thoughts?

you have to turn them around at one percent turn in fee say at one dollar you do the math!!!!

Originally Posted by Inscrutable

The only thing that has me confused is why is JP Chase selling dinar for pennies if they know the dinar will increase to $1.02? Big banks aren't in business to give away their money and right now JP is only making $5 per transaction. Any thoughts?

Because if chase gets your dinars out of iraq from the cbi they get it at that rate we still pay an upsell charge from what the cbi rate is. There making more than $5 per transaction. Im sure chase has a massive supply there not selling and also being a chase customer after a reval they will have tons of major account holders with lots of money and will make money on exchanging them back in. They will aslo be interested in managing your money which in turn makes them money. Its a win-win situation. Chase will have me as a customer for life as many others. This is my thoughts on this

Originally Posted by Inscrutable

The only thing that has me confused is why is JP Chase selling dinar for pennies if they know the dinar will increase to $1.02? Big banks aren't in business to give away their money and right now JP is only making $5 per transaction. Any thoughts?

It clearly states in the CBI banking laws. That it is illegal for banks to speculate on the IQD. Also this is what banks do, and how they make bank! Front and on the back end!

Originally Posted by goldraker

It clearly states in the CBI banking laws. That it is illegal for banks to speculate on the IQD. Also this is what banks do, and how they make bank! Front and on the back end!

I believe that CBI Regs probably only apply to CBI Member Banks!

Trade Bank of Iraq: Opportunity Amid Challenges

From Trade & Forfaiting Review magazine

Iraq, one of the world’s most interesting new trade-finance markets, offers untold opportunities and challenges for cross-border trade, and an effective structure for doing business in the country is rapidly being developed. Bruce Proctor, senior vice president and global trade-services head at JPMorgan, discusses the Trade Bank of Iraq’s role and explains how companies can take advantage of its services.

Many foreign companies are interested in transacting business in Iraq, but aren’t quite certain how to go about it. They regard the country as a potentially attractive market with tremendous infrastructure needs, but are concerned about the challenges that stand in the way. Exporters either have limited information on how to conduct business in Iraq or believe that the opportunities are limited to a select few companies with access to large contracts. Recent developments, however, have changed the landscape. In May 2003, after the U.N. Security Council and the United States lifted most economic sanctions, Iraq became officially open for business. With the new Trade Bank of Iraq (TBI) now operational, there are numerous opportunities for companies to participate in commercial trade flows or perform as subcontractors. In its first two months of operation, the TBI and its international banking partners issued approximately 100 import letters of credit (LCs) supporting over $200 million in humanitarian and reconstruction-related imports.

The first LCs under the TBI structure were issued in early December to support payment for medicines and medical equipment. There continues to be a high percentage of medical supplies imported under the structure. As recently noted in the international business press, most companies taking advantage of credits issued under this structure to date are European, with some being from North America, Japan and several Gulf states.

Although the Central Bank of Iraq authorised the country’s private banks to handle international payments and foreign currency LCs in late 2003, local banks lack an effective cross-border payment capability. Furthermore, most of these institutions are relatively small and can only support limited amounts of commercial trade business. The Coalition Provisional Authority (CPA) has just announced the granting of three licences for foreign banks to operate in Iraq, with three additional licences to be given out shortly. It is hoped that these new entrants will help to spur the expansion of the local financial system by bringing investment capital and operational expertise to Iraq.

Given that the country’s banking sector is not yet fully recovered, TBI is playing a vital role in facilitating imports into the country. Established by the CPA last July, the Baghdad-based bank provides a critical payment mechanism for Iraq’s procurement needs. A banking consortium led by JPMorgan Chase has assisted in the development and operation of the trade bank by providing banking knowledge, systems capabilities and operational support to the Iraqi-staffed institution.

Since U.N.-imposed economic sanctions against Iraq began in 1990 under Resolution 661, Iraq had only limited participation in the international trade arena. For the past several years, the U.N.’s Oil-for-Food Programme served as Iraq’s only mechanism for imports. Accordingly, one of the banking consortium’s critical roles is to provide training for the trade bank’s staff in international practices and standards. Iraq has adopted the Uniform Customs and Practices 500, and the trade bank is applying these guidelines to all commercial transactions.

Although the trade bank’s initial focus is on the public sector’s critical infrastructure needs, it is equally capable of handling private-sector transactions. Exporters can be assured of payment for purchases by the Iraqi ministries and state-owned enterprises because members of the international banking consortium serve as the issuing or confirming banks for the trade bank’s import LCs. The primary operating institutions in this group include JPMorgan Chase Bank, Australia & New Zealand Banking Group, Bank Millennium of Poland, National Bank of Kuwait and Standard Chartered Bank.

The consortium also includes eight other participating banks, which serve as advising and paying banks for LCs in their local markets, and work with their ECAs to support trade with Iraq. These consortium members include Akbank, Bank of Tokyo-Mitsubishi, Credit Lyonnais, Caja de Ahorros y Pensiones de Barcelona, Millenium BCP, the Royal Bank of Canada, SanPaolo IMI and Standard Bank Group.

To date, ECAs in 16 countries have agreed to provide support for Iraqi trade transactions, including Austria, Australia, Belgium, the Czech Republic, Denmark, Germany, Italy, Japan, Luxembourg, the Netherlands, Poland, Spain, Sweden, Switzerland, the United Kingdom and the United States. These agencies have all entered into framework agreements with TBI, which stipulate the nature and extent of the credit facilities they are prepared to offer to qualified exporters. The U.S. Ex-Im Bank is providing 100% coverage under its insurance policies for political and commercial risk on sight and term LCs, while the other ECAs are generally providing between 90% and 95% coverage. These programmes supplement the trade bank’s capabilities by providing longer-term (and attractively priced) financing for Iraqi imports.

The Immediate Opportunity

While it is difficult to quantify total market size in Iraq, the Oil-for-Food Programme (funded exclusively from Iraqi oil-export proceeds) serves as a point of reference. According to the Web site for the Office of the Iraq Oil-for-Food Programme, Iraq was initially permitted to sell $2 billion worth of oil every six months under the programme, two-thirds of which was earmarked for Iraq’s humanitarian needs. In 1998, the ceiling on oil exports was raised to $5.26 billion every six months, and in late 1999 the Security Council removed the limit on oil exports under the programme. During its years of operation, the programme accounted for approximately $46 billion in procurement spending, of which two-thirds was designated for humanitarian needs.

Beyond humanitarian assistance, however, Iraq requires massive infrastructure reconstruction and development in many sectors. Reconstruction work is underway on airports, bridges and roads, as well as in the agricultural sector. The CPA and other government information sources cite the need for material and equipment to aid the expansion of essential services, including electricity, water and sanitation, healthcare, education and telecommunications. While the U.S. Agency for International Development and the U.S. Army Corps of Engineers have so far issued many of the large reconstruction contracts on behalf of the U.S. government, there are numerous subcontracting opportunities. Prime contractors must select their own subcontractors. A listing of U.S. government contracts and prime contractors is available online at the U.S. Department of Commerce’s Iraq Reconstruction Task Force Web site. Documents available at the Commerce Department’s Web site outline how businesses can learn about specific contract opportunities, including new contracts issued by the CPA’s Programme Management Office and by the relevant Iraqi ministries.

There are still some restrictions on U.S. exports to Iraq. For example, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) must provide authorisation for the export or re-export of certain goods and technology, which require a licence under the U.S. Department of Commerce’s Export Administration Regulations. The Web sites for the Commerce Department’s Bureau of Industry and Security and for OFAC provide guidance as to these restrictions.

The internet is clearly a key information resource for companies that wish to participate in trade opportunities with Iraq given some of the challenges faced by international companies. Commercial travel to Iraq is still limited, and traditional telecommunications channels are not always available. In its work with TBI, JPMorgan has been able to utilise Internet-based client-access tools that allow the TBI staff to initiate and complete cross-border trade transactions electronically.

Since TBI’s largest clients are in the public sector, most eligible transactions go through a formal tender process. The current process is based on the U.S. government’s procurement procedures. Exporters interested in selling to Iraq can submit their bids via the CPA’s Web site. Companies then negotiate their contracts directly with the appropriate Iraqi ministry (or other local governmental entity), including the necessary LC payment terms.

The buyer then applies for an LC via the trade bank. The Ministry of Finance must approve the application, which then is routed through JPMorgan for distribution to one of the five operating consortium banks. Issuance, amendment and payment of the LCs are handled by those institutions under their normal operational procedures.

Iraq offers an interesting range of business opportunities to those firms that are patient but flexible in their approach to this market. TBI provides a familiar structure for companies that want to do business in Iraq today. Corporations should feel comfortable and confident using the trade bank, as it operates under very high standards and adheres to internationally recognised trade protocols.

As additional commercial opportunities arise, TBI will expand its range of products and services to meet the needs of both Iraqi importers and exporters. It will continue to serve as a key channel for financial transactions and will play a leading role in the re-integration of the country into the global economy.

ATTENTION ALL,
MRS. CK BRAIN IS ON A ROLL WATCH OUT HERE IT COME

Originally Posted by neno

I went back to my frind and told the same to him. As we talking, I shared all the news and excitment of resent.

Got to telling him of r/v rumers from peoples contacts, articles and what ever. Also mention one MrsCK's contacts about Contracts with a rv mentioned awhile back and that had to be redone, cause of changes to the exchange rate.

He brought back up what I had tolf him about Wackovia Security's Purchasing Dinars. He told me that One of his Business Partners, that works for the same as Wachovia Security's, but with JPMogan of ManHatton has gotten their contract too. And gave me their rate of $1.02 I told him that we have heard more. He only said that that is what they have in their contract of resent.

So Bottomline it might have changed too. He has no ideal of a time line of when it will go live. But that was when he told me that the 52 billion Dollars was paid TODAY to the World Bank. Which should mean that Iraq just paid IMF to Pay off their Debt to the World Bank.

Guys this is all I have. Just wanted to share with you all while I could. Hopefully Rolclub doesn't shut down from the News. The World Bank info is very Big News. As well as Wachovia being the Second Bank to get envolved. Maybe third in the US if you count BofA.

AWESOME STUFF AND THANK YOU THANK YOU FOR PUTTING ANOTHER PIECE OF THE PUZZLE TOGETHER!!!!!!!!!!!!!!!

EVERYBODY LETS JUST APPLY SOME OF THE "NEWS ARTICULES" INTO THIS.
1. BUDGET MEETING FOR SATURDAY WAS DELAYED TO SUNDAY. NOW MY BRAIN HAS BEEN CHEWING ON THIS SINCE I READ THE DELAY TO SUNDAY. WHY DELAY????
2. NEWS ARTICULE A COUPLE OF TIME THE LAST 2 WEEKS ASKING KUWAIT TO FORGIVE THE DEBT. IRAQ HAS BEEN PAYING 5% OFF THE OIL TO KUWAIT TO PAY THEY OFF.
3. WHY ANOTHER DELAY IN CBI TO THE LAST WORKING HOUR ON SUNDAY???

SO JUST THOSE THREE NEWS ARTICULES ALONE DIDN'T MAKE ANY SINCE TO ME AT ALLLLLLLLLLL FOR DAYS. NOW I KNOW WHY THE LAST PUSH ON KUWAIT TO LOWER THE DEBT OR DO AWAY WITH IT SO IRAQ WOULDN'T HAVE SO MUCH TO MAKE IN THIS FINALLY PAYMENT.

AND THE DELAY OF BUDGET ON SATURDAY TO SUNDAY - GAVE SHABIBI TIME TO GET TO THE WORLD BANK AND PAY OF THIS DEBT!!

DELAYING CBI TO SUNDAY ALSO GAVE SHABIB AND THE GOVERMENT MORE TIME TO PAY THIS DEBT OFFFFFFFF!!

WHAT DOES THIS MEAN NOW - IRAQ IS A DEBT FREE COUNTRY!!!!!

SO GET UP AND DO A FARM JIGGGGGGGGGGG BECAUSE IF YOU THOUGHT THIS RIDE WAS GOOD BEFORE - JUST HOLD YOUR SEAT IT IS FIX'N TO GET BETTER!!!!!!
CHRIS

I have a question - When the RV hits, where is the first public place it will post that we can see it? I usually check it either at the Central Bank of Iraq site or ICCFX.com Will Dinar trade have it? I am new at this type of thing.

Thanks
JD