Partial Post From Intel4U By bailey2 - Remainder Emailed To Recaps
Tlar: This article {at the end of post} looks like a throw back to articles engineered by Maliki just before he removed Shabibi last year.
The author or authors seem to have a scare tactic agenda. It is accusatory of both the CBI's monetary policy and of American and other International companies operating in Iraq.
The auctions have been a necessary part of monetary policy for Iraq as proven by the fact that they have continued on through Turki after Shabibi was removed for selling USD.
Turki found out almost immediately that the auctions were his only tool available to control inflation and to support the dinar and he had to come to the conclusion that these kinds of arguments were either inspired by politics or people who had no understanding of economics or monetary function.
The auctions have been very necessary all the way along and especially of late in order to clean up the currency markets in the ME.
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Read More Link On Right
Tlar: This article {at the end of post} looks like a throw back to articles engineered by Maliki just before he removed Shabibi last year.
The author or authors seem to have a scare tactic agenda. It is accusatory of both the CBI's monetary policy and of American and other International companies operating in Iraq.
The auctions have been a necessary part of monetary policy for Iraq as proven by the fact that they have continued on through Turki after Shabibi was removed for selling USD.
Turki found out almost immediately that the auctions were his only tool available to control inflation and to support the dinar and he had to come to the conclusion that these kinds of arguments were either inspired by politics or people who had no understanding of economics or monetary function.
The auctions have been very necessary all the way along and especially of late in order to clean up the currency markets in the ME.
...
Read More Link On Right
In the early days the CBI sold trillions of dinar to anyone who would buy it in order to raise hard currency. In the last two years the CBI has mainly just been buying those same dinars back as part of their desire to strengthen the value of the dinar.
At the same time they have been buying the dinar we have seen their cash reserves go up approximately 50% having gone from 60 billion in 2012 to just shy of 90 billion a month ago.
This policy of selling dollars has reduced the number of dinars in the market to where everyone agrees the dinar is now under valued.
I think the auctions have been lately a dress rehearsal for the coming raise in value. The auctions will eventually have to be discontinued because they will have run their course and usefulness.
That is the target both by the CBI and the IMF, but Iraq cannot replace the auctions until they have other tools in place to support their currency and control inflation.
The tariffs, the coming bond sales, liberalizing the exchange rate, these tools and more will be needed to allow the CBI to control both inflation and to support the currency. They are on the verge of getting all these new tools. Until then the auctions are it.
Tlar: 'm not so sure that it is international companies are in bed with and paying off Maliki to maintain cheap labor Enorrste. First off I think they are under contract on a per barrel basis.
Somewhere I remember them negotiating a $2 dollar to $2.50 per barrel contracts or there about. The oil industry in Iraq is nationalised and internationals don't own the well head but rather cooperate under an operator agreement for a set period of years.
They are required to hire a certain percentage of Iraqi's as part of the contract. We know that China early on, was black balled from bidding because on their very first contract they brought their own labor force from China in violation of the contract.
China threatened to dump dinar and walk away so Iraq relented and reinstated them to bidder status where they have been ever since. Also if I remember correctly, every bidder who wins a contract has to pay large sums of money up front.
This money is a grey area as to where it goes IMO and I believe that Sharistani and Maliki use most if not all of it as their personal slush fund. The oil Ministry foots most of the costs for the well and continued operating expenses with the winning company using its expertise to drill and produce.
We know this because we have been told early on it was some kind of a cost sharing basis, and we have seen the lack of payments for expenses was a sticking point for Kurdistan when Bagdad just quit paying them to companies working in Kurdistan.
The point is this.
The internationals pay a "bribe" up front and only receive $2.00 for each barrel coming out of the ground to cover what ever their share of the costs are. That leaves little profit to share with any one but it is enough to give the companies reason to work in Iraq.
I think, and I may be wrong, but what this article is saying is that the internationals won't accept the dinar in payment but rather they want hard currency at the expense of the Iraqi economy.
They get paid in USD and take the majority of it out of the country and that is hurting the economy of Iraq. The first paragraph is very telling and it is a direct indictment of the CBI monetary policy for not having made the dinar international.
"Warned parliamentary sources familiar with the collapse of the Iraqi monetary policy in light of the continued dollar selling in the auction of the Central Bank, and revealed a blueprint for the continuation of the process of money laundering agreement with American officials through non-recognition of the Iraqi dinar in international transactions."
and here again, ""the failure to adopt the Iraqi dinar in business dealings and international economic serves as the execution of the Iraqi economy, arbitrary and intentional,"
pointing out that "this phenomenon, according to foreign experts within the biggest corruption in the history, the agreement between senior American and international companies leading the laundering operations and money laundering. "
All he is saying is that with the bank is dumping dollars for dinar at the auctions and that the internationals taking hard currency out of the country as we pay them and the Iraqi economy is suffering because of this.
Again he is blaming the bank for this perceived entire mess of the economy because of their not making the dinar international. You know what, this guy is right IMO.
Make the dinar international at a buck and watch these problems disapear. It is amazing.
I morphed from thinking this article was an uncalled for indictment of the bank to being on this guys side in one post. Lol
ARTICLE & LINK:
Auction Central Bank monetary policy threatens to collapse
Baghdad / Orr News
Warned parliamentary sources familiar with the collapse of the Iraqi monetary policy in light of the continued dollar selling in the auction of the Central Bank, and revealed a blueprint for the continuation of the process of money laundering agreement with American officials through non-recognition of the Iraqi dinar in international transactions.
The sources said that "the financial policy of Iraq at a critical juncture in the light of the growing phenomenon of selling the dollar at the central bank auction to sell the currency,"
indicating that "the government is not aware of this risk and is oblivious also on the level of collapse concealer suffered monetary policy in light of the marginalization of the presence of the Iraqi dinar,
which What still is not recognized in international business dealings despite the passage of 11 years since the change of the former regime and the lifting of international sanctions on Iraq. "
The sources pointed out that "the failure to adopt the Iraqi dinar in business dealings and international economic serves as the execution of the Iraqi economy, arbitrary and intentional,"
pointing out that "this phenomenon, according to foreign experts within the biggest corruption in the history, the agreement between senior American and international companies leading the laundering operations and money laundering. "
Previously, specialists in economic affairs that strongly criticized the policy of the central bank in control of the Iraqi dinar exchange rate and demanded reconsideration of the auction sale of the dollar,
but the latter insisted on continuing to sell foreign currency and Usaha to include all government and private banks.
The bank said in a statement issued in the month of April, "The process of cash sales for the dollar continues through the central bank auction conducted by the sale of foreign currency," adding that "sales operations include all government and private banks, according to quotas and timings of time so special" . LINK
At the same time they have been buying the dinar we have seen their cash reserves go up approximately 50% having gone from 60 billion in 2012 to just shy of 90 billion a month ago.
This policy of selling dollars has reduced the number of dinars in the market to where everyone agrees the dinar is now under valued.
I think the auctions have been lately a dress rehearsal for the coming raise in value. The auctions will eventually have to be discontinued because they will have run their course and usefulness.
That is the target both by the CBI and the IMF, but Iraq cannot replace the auctions until they have other tools in place to support their currency and control inflation.
The tariffs, the coming bond sales, liberalizing the exchange rate, these tools and more will be needed to allow the CBI to control both inflation and to support the currency. They are on the verge of getting all these new tools. Until then the auctions are it.
Tlar: 'm not so sure that it is international companies are in bed with and paying off Maliki to maintain cheap labor Enorrste. First off I think they are under contract on a per barrel basis.
Somewhere I remember them negotiating a $2 dollar to $2.50 per barrel contracts or there about. The oil industry in Iraq is nationalised and internationals don't own the well head but rather cooperate under an operator agreement for a set period of years.
They are required to hire a certain percentage of Iraqi's as part of the contract. We know that China early on, was black balled from bidding because on their very first contract they brought their own labor force from China in violation of the contract.
China threatened to dump dinar and walk away so Iraq relented and reinstated them to bidder status where they have been ever since. Also if I remember correctly, every bidder who wins a contract has to pay large sums of money up front.
This money is a grey area as to where it goes IMO and I believe that Sharistani and Maliki use most if not all of it as their personal slush fund. The oil Ministry foots most of the costs for the well and continued operating expenses with the winning company using its expertise to drill and produce.
We know this because we have been told early on it was some kind of a cost sharing basis, and we have seen the lack of payments for expenses was a sticking point for Kurdistan when Bagdad just quit paying them to companies working in Kurdistan.
The point is this.
The internationals pay a "bribe" up front and only receive $2.00 for each barrel coming out of the ground to cover what ever their share of the costs are. That leaves little profit to share with any one but it is enough to give the companies reason to work in Iraq.
I think, and I may be wrong, but what this article is saying is that the internationals won't accept the dinar in payment but rather they want hard currency at the expense of the Iraqi economy.
They get paid in USD and take the majority of it out of the country and that is hurting the economy of Iraq. The first paragraph is very telling and it is a direct indictment of the CBI monetary policy for not having made the dinar international.
"Warned parliamentary sources familiar with the collapse of the Iraqi monetary policy in light of the continued dollar selling in the auction of the Central Bank, and revealed a blueprint for the continuation of the process of money laundering agreement with American officials through non-recognition of the Iraqi dinar in international transactions."
and here again, ""the failure to adopt the Iraqi dinar in business dealings and international economic serves as the execution of the Iraqi economy, arbitrary and intentional,"
pointing out that "this phenomenon, according to foreign experts within the biggest corruption in the history, the agreement between senior American and international companies leading the laundering operations and money laundering. "
All he is saying is that with the bank is dumping dollars for dinar at the auctions and that the internationals taking hard currency out of the country as we pay them and the Iraqi economy is suffering because of this.
Again he is blaming the bank for this perceived entire mess of the economy because of their not making the dinar international. You know what, this guy is right IMO.
Make the dinar international at a buck and watch these problems disapear. It is amazing.
I morphed from thinking this article was an uncalled for indictment of the bank to being on this guys side in one post. Lol
ARTICLE & LINK:
Auction Central Bank monetary policy threatens to collapse
Baghdad / Orr News
Warned parliamentary sources familiar with the collapse of the Iraqi monetary policy in light of the continued dollar selling in the auction of the Central Bank, and revealed a blueprint for the continuation of the process of money laundering agreement with American officials through non-recognition of the Iraqi dinar in international transactions.
The sources said that "the financial policy of Iraq at a critical juncture in the light of the growing phenomenon of selling the dollar at the central bank auction to sell the currency,"
indicating that "the government is not aware of this risk and is oblivious also on the level of collapse concealer suffered monetary policy in light of the marginalization of the presence of the Iraqi dinar,
which What still is not recognized in international business dealings despite the passage of 11 years since the change of the former regime and the lifting of international sanctions on Iraq. "
The sources pointed out that "the failure to adopt the Iraqi dinar in business dealings and international economic serves as the execution of the Iraqi economy, arbitrary and intentional,"
pointing out that "this phenomenon, according to foreign experts within the biggest corruption in the history, the agreement between senior American and international companies leading the laundering operations and money laundering. "
Previously, specialists in economic affairs that strongly criticized the policy of the central bank in control of the Iraqi dinar exchange rate and demanded reconsideration of the auction sale of the dollar,
but the latter insisted on continuing to sell foreign currency and Usaha to include all government and private banks.
The bank said in a statement issued in the month of April, "The process of cash sales for the dollar continues through the central bank auction conducted by the sale of foreign currency," adding that "sales operations include all government and private banks, according to quotas and timings of time so special" . LINK
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