"Just More Clarification" - Dinar Alert News Discussion 1/6/18

Kaperoni: Central Bank: float the dinar is difficult to apply in Iraq

Central Bank Governor Ali Keywords "Economy News" Economy News Baghdad: The Governor of the Central Bank, on the Keywords, to float the dinar is difficult to apply in Iraq because the government has a monopoly on the dollar, noting that Iraq's reserves of US $ 48 billion.

Keywords and said in an interview with the Arab-African newspaper, and seen by the "Economy News", "usually oil-producing countries rely on a fixed exchange rate, or fixed with flexibility, and do not resort to the flotation method, only if they adjust their reserves to a level without sufficiently, which is not gets, whether in Iraq or other oil-producing countries, "noting that" flotation is difficult to apply in Iraq, as the government has a monopoly, de facto, the dollar and foreign currencies. "

He added that "Iraq's dollar reserves of US $ 48 billion."

He pointed out that "there is an understanding and coordination between the central bank and the government through the Ministry of Finance, and in this regard, a higher committee of coordination between the Ministry and the Central Bank was formed; therefore we work together in the run-credit program with the International Monetary Fund, as this program includes reforms and procedures related to primarily economic, financial and monetary structure. "

"At this stage, the Central Bank of Iraq focuses on achieving the concept of" financial inclusion "and its applications, where previous years, conditions were not help because of the lack of security and financial stability, the Bank has developed a short-term plan and other long-term to expand the application of this concept," noting "the short-term plan aims to deal with the government to deposit the salaries of all state employees in banks, which will add about more than 3 million people to deal with the banks, and then resettlement in the long term."

http://economy-news.net/content.php?id=10284

Kaperoni: It continues to amaze me when someone posts "no float". Do you really think the CBI could RV the currency with 34+ trillion sitting in Iraqi homes? It is simply not possible.

As stated in the IMF Article IV from 2012, I believe once the dinar is stable (within 2% spread) the IMF will give the green light to move to Article VIII and let the CBI move to a more flexible exchange rate (float). We need to wait this out, which could be several months. The good news is that until currency reform begins, there is no private investment. Sorry for the rant. lol

Justwaiting: Rant all you want to ! grin ~~ to me just more clarification (and grounding) , and maybe also for others. Tell it like it is -thanks!!!!

tfrizzel: Thanks Kap and all, this is good news.

Punisher: justwaiting, For crying out loud here is what the governor of the CBI had to say, listen to him!!!

Kaperoni: Businessmen, money, traders, industrialists and bankers calling for new criteria for the classification of banks in Iraq

1/4/2018 4:27:34 AM Baghdad / Al-Masala: The "obelisk" published proposals by a number of businessmen, finance, traders, industrialists and Iraqi bankers, to the Iraqi Central Bank for the purpose of promoting the banking business in Iraq, and contribute seriously in the reconstruction process, and make Arab banks and foreign and Iraqi, .

The Central Bank of Iraq earlier approved the opening of branches of Arab and foreign banks in Iraq, in order to diversify banking services and quality, in the hope that these banks added value to the Iraqi banking sector and contribute to the development of various economic, and this is also hoped we As businessmen, especially industrialists, where we had good news from the entry of these banks to Iraq, and we hope that these banks to finance development projects or at least provide facilities for Iraqi businessmen, and financing their businesses and projects, especially industrial ones, but none of them did not happen and did not A work that would lead to a real addition to the Iraqi economy, except their entry into the currency auction and a high rating.
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We have made sure that the branches of Arab and foreign banks do not provide services on the basis of which these branches have been opened. Therefore, we have made the following recommendations to the Central Bank officials, in order to develop the banking sector and facilitate banking services. These points are:

- The criterion of evaluation of Arab and foreign banks should be the size of the facilities provided to Iraqi businessmen and Iraqi companies owned exclusively by Iraqis, in order to prevent the entry of the currency auction.

- The criteria of evaluation should be the commitment to implement and complete what was mentioned in the feasibility studies provided by the Arab and foreign banks when opening their branches in Iraq, in which they mentioned the contribution to the development of the banking sector and the contribution to development and reconstruction. Otherwise, Before the bank, it is prohibited to enter the currency auction.

- The Central Bank shall monitor the quality of services provided by branches of Arab and foreign banks, in comparison to their quality in their countries of origin, and in the case of deterioration of these banks in providing good technical service prevents the entry of currency auction.

- Give greater role to Iraqi employees and their senior positions in the bank and training and cooperation to prevent local banks in the field of training and otherwise reduces the classification lowest degree in the auction currency.

- The classification of the branch of the Arab and foreign banks shall be according to the criteria according to which the Iraqi Bank shall be classified regardless of the classification of the banks in their countries of origin.

- The Central Bank to reconsider the entry of branches of Arab and foreign banks in the project to settle government salaries because it is sovereign and where the amount of salary amounts to a degree of confidentiality, it is not correct to inform non-Iraqis and inventory in Iraqi banks.

- There should be a study to assess the comprehensive and all aspects of the work of Arab and foreign banks in Iraq to show the extent of added value in the banking sector, especially the economic in general, and in the case of non-performance role in the added value referred to prevent banks from the auction currency.

- To confirm the completion of the amount of insurance put by Arab and foreign banks to 50 million dollars and otherwise prevents the entry of currency auction.

- The bank carries out the banking business for all customers of different segments of society and otherwise prevents it from entering the currency auction.

- Ensure that the highest assessment of the entry of the auction currency does not exceed the classification of "c" for Arab and foreign banks after the commitment to all the commitments made in the economic feasibility study, because the capital of banks $ 50 million, while the capital of Iraqi banks 250 billion dinars, equivalent to four times Capital of Arab and foreign banks.

- Emphasize the opening of branches of these banks in Baghdad or in the provinces and the evaluation shall be on the number of branches and the number of employees, otherwise the evaluation of the auction of the currency on the size of the bank and includes:

a. Preparation of branches.

B. Number of Employees.

C. Number of customers.

If the Arab and foreign banks do not have branches and the number of customers is very few does not exceed "100" customer and the number of employees does not exceed "25" employees and there are no banking activities for customers, businessmen and traders, surely their records are clean and there are no errors and is consistent with standards, There is work for him.
Iraqi banks and criteria of currency auction classification

- Calculating the bank's founding foot and adding a point for each year.

- Calculate the number of branches in Baghdad and the governorates, and add a point for each branch.

- The calculation of the number of Iraqi employees, adding three points for every 100 employees, which encourages the recruitment of the largest number of graduates.

- These standards encourage Iraqi banks to rise to the level of developed international banks.

- Confirmation of completion of the capital to 250 billion dinars, otherwise reduce the number of points according to the capital of the bank.

- Compliance with Central Bank standards "Compliance, Money Laundering, Risk".

​As well as Iraqi banks that have no branches and do not deal with banking operations and there are no customers have, and certainly will be their records clean.

A group of businessmen, finance, traders, industrialists and Iraqi bankers

Punisher: Lots of good in this article!

monty.monks.007: How about , you can be a proper bank if you can guarantee your depositors money ! Easy.

Kaperoni: Deposit insurance and currency reform are a must. Nobody is coming to invest until the CBI does these.
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Clarification for what? Kap, you need to stop this crap- You're getting nowhere, and will succumb to the wrath of law enforcement shortly-You are being watched-