Stevel: Greetings and hope your holiday has been safe. I am sorry it took so long but I do not just throw these together for the fun of it, but rather put a lot of thought and make sure it is factual so you can have a better understanding of this complex revaluation.
Just as I was about to post this, here is a bit of information from October 2003 that Ocrush just shared. His comment to me was “Holy Cow”. Those who have been around from day one on this investment will certainly understand this one.
Here is what Ocrush just said:
LOOK AT THIS!!! Right under our eyes. Remember when John spoke to me on the actuarialist’s. Well look at the past interview with General Tant (page 11). They did the same thing back in Oct 2003…trying to figure the exchange rate for its currency with this geniuses:)) I can’t believe I missed this!! Tunnel vision on my part LooooooL!!
TANT: One to one.
Q: One to one?
TANT: One to one. I have to tell you, I had two dynamic guys, one from the UK Treasury named Jacob Nell and one from the Bank of England named Simon Gray.
These guys are absolute geniuses in banking and treasury operations, and they worked closely with the Central Bank of Iraq on a regular basis, with all of the negotiations. We would have request meetings. I’d go to the big meetings over there with all the heads of the Rafidain, Rashid, and the Central Bank of Iraq. We would talk about deliveries, requirements, and incentive pay. We would talk about all of these different issues to…
For those who would like to read it, here is the link:
It is only 20 pages but very good. And for those that require more proof, here is another one Ocrush gave to me:
Now, moving on, after the past few posts and the one I did called “Follow the Money”, Ocrush sent me some information and also a few comments from another post that a member posted.
Highlighted are some very important comments from an article recently posted.
I highlighted the important stuff:) With the new system being implemented and the internal communication (PBX) being in place the banks can transfer in real time. This is what the international banks are looking for:)
… said that the structural weaknesses in the banking system lies in the credit away from the router where a non-directed lending practices to a marked deterioration in the quality of the loan portfolios of banks, which subsequently exacerbated by general economic conditions unfavorable, has resulted in the accumulation of non-performing loans to limit the ability of banks to perform the functions of mediation through reduce the liquidity available to it and increase the cost of its operations, this case has appeared prominently in civil commercial banks, as well as double the efficiency of payment systems because the applicable clearing system in Iraq is a record system for clearing and is based on the actual transfer of debt instruments and credit and a new method to examine these tools and make sure of them, depending on payments systems that are now applied unevenly between the bank and the last, which led to the slow process of settlement of payments between the banking system as a whole and therefore weak in terms of disclosure and oversight bank statements vary in comprehensiveness and accuracy from one bank to another, which makes it difficult to make a comparison between him and international banks despite the CBI seeking to develop Payments Systems currently has applied and has now chunked project is the development of new National Payments Systems will be implemented soon.
Ocrush sent me some very interesting facts that will help connect the dots.
“All I can say is, the small sub committees are in place to monitor the changes and have transparency. The CBI will introduce a new mechanism early to mid June bank policy. It’s an internal system (PBX) that connects ALL banks to communicate in real time and secure.
Everything is being put in place and new legislation has been written by the sub committees and approved by the cabinet (7 points).
When the parliament takes it’s session again they will have a completed legislation to vote on. There is also GREAT progress with the ministry of trade. Trade law policies have been set to trade internationally.
They have been working with an international trade group out of Switzerland consisting of 150+ countries.
This falls under (for Iraq) the UN (one of its extended arms, I think unctid?).
They have accomplished all they needed to start trading (training, policies, set tariffs…so on) and all they need is to finish the technology part at there HQ) (work in progress:)
This accomplishment is a prelude to enter the WTO (Iraq might work under this group for a few months before entering the WTO which is okay:) I have a PDF file on this. It was written back in 2012 to what Iraq needs to do before the ascend to the WTO. ”
Here is a very important document that will tie this together for you all.
Strengthening the Trade Policy and WTO Negotiations Capabilities of Iraq
In a joint effort to support the Government of the Republic of Iraq in enhancing its trade prospects, UNCTAD is collaborating with UNIDO in implementing the trade component of a wider project, financially supported by the Swedish International Development Agency (SIDA), entitled “strengthening national quality and trade infrastructure in Iraq”.
The UNIDO-UNCTAD collaboration was conceived under the UN Trade and Productive Capacity Cluster framework. The trade component of the project last from January 2013 to December 2015.
The main beneficiary and partner in the project will be the Ministry of Trade. A series of training events, study tours, and capacity building assistance is foreseen under the project to assist Iraq in its negotiation for accession to the WTO and in reviewing and modernizing its trade policy framework.
UNCTAD will carry out technical assistance activities and capacity building, including intensive training courses and workshops in the area of WTO accession, trade policy and trade negotiations for Iraqi senior officials and members of the WTO accession inter-ministerial task force set by the Government of Iraq.
The project will involve as an important part, activities aiming at supporting the Iraqi private sector to enhance its institutional and human
capacity for active involvement in the WTO accession and trade policy formulation process.
Iraq application to join the WTO under Article XII of the Marrakesh Agreement establishing the WTO, was introduced on September 2004, and was followed by the establishment of the Working Party on the accession of Iraq in December of the same year.
After the submission by Iraq of its Memorandum on the Foreign Trade Regime (MFTR) in September 2005, the Working Party held two successive meetings in 2007 and 2008.
It is expected that at the end of the implementing phase of this of the project, the key outcomes will include the following:
· Improved overall understanding of the complex rules and disciplines associated with WTO membership by Government trade officials and negotiators, in particular,
the representatives of business and private sector and other relevant stakeholders from the civil society including, parliamentarians, media, consumer organizations, etc.
· Government officials involved in the accession process trained and technically prepared to deal with WTO accession and trade-related policy issues and challenges
Trade policy studies, reviews, and impact assessments completed; upgraded capacity to formulate and implement trade and trade-related policies;
· Replies to the questions from WTO Members timely prepared and submitted;
· Market access offers on goods and services completed; improved capacity of government officials to negotiate using up to date negotiating techniques.
· Trade policies and support institutions are reformed and strengthened to deal with a more competitive trading environment
A meeting today (through video conference) between UNCTAD, UNIDO and the Ministry of Trade of Iraq discussed the launching of the project and the next steps to be taken.
End of Article
Recap of the 7 points
This is the latest. Back in April 29th 2013, Prime Minister Maliki and Prime Minister Barzani both signed the 7 point agreement. On May 2nd the CoM tweeked these points and approved them.
These 7 points were the base line to write new legislation (incorporate the old with new) (example oil and gas). We all know that parliament took there vacation which started May 13th 2013.
You see parliament had nothing to pass with the 7 points, it needs to be written (legislation) and brought forward to a vote by parliament. The cabinet needs to write this legislation of the 7 points and produce them to parliament to pass.
Once that is done then will you see the basket of laws pass in parliament (banking, investment and so on laws:)
There are also significant moves with our Fed. An individual named Mike O’Rourke, Managing Director of Jones Trading has brought forth a comment. “We’re now seeing the ‘Iraq’ of Monetary Policy”. LINK
Change is about to happen but they too are confused on how the Fed will accomplish this (we know better LOOOL:) He states we are in (Feds) an extra ordinary situation. Monetary Policies in Iraq are about to change and they want to know what the Feds plan is.
You see, even the professionals have little knowledge how this will be expedited. In other words laws need to pass within Iraq to have a successful Monetary change in Iraq. LINK
So going back to the 7 points (base line for the new legislation to be written) is the stepping stone to a successful monetary change. This is why back in May 7th a parliamentary Finance member stated “it is better to take a vacation, it will be for the Iraqi people.
The Cabinet, MoC and UN are establishing the 7 points that will be brought forward to parliament in mid-june. They needed this time (CoM) to establish and write the old/new legislation. When this is done the basket of laws will pass.
Just a few days ago the committee approved the 5 year plan, they are getting there ducks in order:) There is also the Tariff act that is waiting to be implemented but this will be done gradually to keep inflation low and have a successful monetary change with positive results.
Another big step they have taken with security within Iraq is the emergence of General Austin who had a meeting with Maliki (PM). This was for the security part of the SFA.
They already received the c130j’s (hercules aircraft) and they will soon receive the f16’s Iraq ordered. SFA agreement in full thrusters:) This is by far the best roller coaster ride I have ever been and it’s outcome will be exhilarating:)
End of Article
Looking back and finding all of these very complex tasks, one would have never guessed that all of this was needed. There are so many great articles that are addressing the fact that the value of their currency is declining and they need to take immediate actions to resolve those issues.
Matter of fact, on May 12th this one comes to my mind: Finance for parliamentary “My Day”: Do not fear the decline of the dinar and rising dollar will address next week
I believe that when the parliament resumes their duties in June, shortly thereafter you will see this accomplished.
Could it happen and revalue prior to that, sure and anything can happen. Why? Because it is Iraq. Have you seen anything normal come out of there yet?
As you can see, this investment is a huge opportunity for those that will stick it out. I think the budget not being opened is also very positive. They are ready to burst open if it does not. Patches and fixes with some money here and there can only last so long and go so far.
I do think June will be a very telling month in which you will see some major changes coming in the way of monetary policies which will effect the value in a huge way.
So, please sit back and enjoy the ride for a bit longer. I really do feel that June is our month. Time will tell, but we all need to let Iraq accomplish the final tasks.
As promised, we will bring you updates as we find them. The news so far coming out of Iraq is very positive and for sure is pointing in the right direction as to where the Iraqi Citizens would like it to go.
By the way, as of the other day, all of the ISX businesses are still devalued by 80 to 90 percent. This folks is huge.
Have a safe week and thank you for your time.
God Bless each and every one of you, and more important, thank you all for those that have served for this great country of ours and we continue to remember those who are no longer with us.
Please keep your prayers for their loved ones.
Blessings, Steve And all of us here at Peoples Dinar!