IQD CALLS Chat Wednesday Night 2-12-20

IQD CALLS Chat Wednesday Night 2-12-20

chattels    In Baghdad, security forces use live fire & teargas in attempt to storm Khalani Square. https://twitter.com/Newsofiraq/status/1227696485757833218

chattels   Courtesy David M Witty https://twitter.com/DavidMWitty1?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

chattels   Iraqi Armed Forces: we are taking immediate steps to stop the closure of roads, bridges & schools.

chattels   In Iraq, 12 police injured in confrontation with protesters in Dhi Qar Province.

chattels   LINK

chattels   In Iraq, commander of Babil Province Police: protesters have assaulted a police brigadier general in Hilla City when they approached the governor’s house to demand he resign. http://mobp.as/Tjuwq

chattels   The assault against basic press freedoms continues in Iraq, as an impotent government looks on. https://twitter.com/FIstrabadi/status/1227283394838573056

chattels   Iraqi TV CEO shot dead in Baghdad https://www.rudaw.net/english/middleeast/iraq/110220201

chattels   Parliamentary law reveals to Nina a constitutional violation of the electoral law and proposes a re-vote on it again

Wed 12, February 2020 https://ninanews.com/Website/News/Details?key=812204

chattels   Baghdad ( NINA ) - The Parliamentary Legal Committee revealed a constitutional violation of the Parliament’s Elections Law, and suggested that the law be re-voted again after correcting these mistakes.

chattels   The House of Representatives voted in the end of last December, on the draft law on elections for the Iraqi Parliament.

chattels   Al-Araji: Abdul-Mahdi informed the political blocs of leaving his post after 30 days, and Saleh will replace him

[Baghdad-Ain]  Former Deputy Prime Minister Bahaa Al-Araji revealed on Wednesday that resigned Prime Minister Adel Abdul Mahdi informed the political blocs of not staying in the position "one minute" after 30 days, noting that the President of the Republic Barham Saleh He will replace him according to the constitution.

Al-Araji said in a tweet on his Twitter site, "After meeting yesterday with the Prime Minister-designate of the resigned, the second informed the political blocs that he will not continue in office for even a minute after the lapse of 30 days from the date of the assignment."

chattels   The date of assignment is, I believe, February 2.

chattels   The 30th day is then March 3.

LeLe   Wilder definitely if you get worse or start to feel different. Please get checked out.

chattels   Alliance of Forces: Allawi is not the choice of the people and deputies [condemn] attend the sessions

[Baghdad-Ain]  A member of the National Forces Alliance, Abdullah Kharbit, believed that assigning Muhammad Tawfiq Allawi to the prime minister was "not the choice of the Iraqi people."

Al-Kharbait said in a press statement that "the Prime Minister-designate can understand about forming his government with whomever he wants from alliances," noting that "the Alliance of National Forces represents more than 85% of the Sunni component." http://www.alliraqnews.com/modules/news/article.php?storyid=86718

LeLe   Dave thanks for the info for Wilder.

chattels   Both Sunni and Kurds are very uncertain of Allawi and may be hedging their bets.

chattels   [Follow-up-Where]

A press report broadcast by the Associated Press today, Wednesday, suggested that Iraq will continue to import Iranian natural gas in light of the renewal of US exemptions.

Iraqi officials have indicated that the United States is likely to renew the exemption from Iranian sanctions that would allow Baghdad to continue importing Iranian natural gas to supply its electricity needs, the Associated Press reported today.

 The waiver is due to expire for three months on Thursday. http://www.alliraqnews.com/modules/news/article.php?storyid=86712

Kaperoni   good evening    Hi Baxter   hi Matt

Sandyf   @Dave i have NO opinion other than what CBI HAS DIRECTLY STATED

So you have no problem with the CBI stating that the currency issued is 51.8 trillion dinar.

https://cbi.iq/static/uploads/up/file-158150283232451.pdf

sandyf  @Zig sandyf : "If there is to be any return on this venture it will not be the result of anything done by Iraq.".............Then by whom?....if not the CBI.....

There is a basic accounting principle that dinarland prefers to ignore, the liabilities must be less than the assets or the entity is technically bankrupt.

Currency issued is a liability on the CBI and the CBI has no control over the value of it's assets, the bulk of the assets are foreign currency denominated and effectively fixed in value. There is limited equity in the accounts so no scope to increase the value of the dinar by any significant amount.

Any change to how the value of the assets could be calculated would have to be by international agreement and nothing to do with the CBI.

Kaperoni   Right Sandy

Matt   Sent Today's Market Summary to www.iqdcalls.com/Markets.html so people can maybe compare day to day better?

Matt   I heard futures are down?

Dave   sandyf on your next drive by could you please explain the prior month of your spread sheet. 46 Trillion. May and June would be over 100 Trillion???

KRnMS   So you are either IN or OUT , and I apologize for my hasty math earlier, and stand corrected

KRnMS    actually any currency is a commodity, and an asset

Dave   KRnMS thought so

Dave   CBI could be sitting on tons of too....just waiting to burn

Zig   Dave : True

Dave   Currency ISSUED couLd also be electronic?

Zig   Lots of "could be" this and "could be" that.....lol

Dave   Q cards....to pay staff????

Dave   Zig EGGACTLY

Dave   4-5 Trillion a month from auctions taken in??????

Dave   last 2 yrs ish?

Zig   Dave : Yeah I was thinking about that as you have said that many times....just what are they doing with all that?

Dave   According to Kap stuffing envelopes to pay everyone

Zig   LOL....I have no clue....we shall see....eventually....

Dave   Q cards fictitious then?

Dave   All workers tend to work for GOVT........say 10 million of them.....without the math i would say they get paid rather WELL

Kaperoni   And dave, if you spent an hour learning how currency auctions work you would learn they cannot substancial reduce the money supply.

Dave   Kaperoni YOU TOLD ME THAT!

Kaperoni   Currency auctions are based on a "balance" of dinar to dollars. In fact, the recent weeks have seen a significant increase in dollar sales, therefore the CBI has to inject dinar to balance it

Dave   AUCTIONS DINAR FOR USD

Kaperoni   That is why you also see an increase in recent weeks in the money supply of dinar

Kaperoni   Dave Yes, but its the balance of the two that maintains the exchange rate

Kaperoni   and the stability of the spread is a IMF requirement

Dave   Kaperoni CBI makes on the spread

Dave   2 perceny 90 days yes

Kaperoni   if you took in dinar and gave out dollars only the scale of sorts would change and the spread would change

Kaperoni   Yes, they are in compliance, but that is because they are maintaining a balance of dinar to dollar.

Kaperoni   so there is no way to significantly reduce the money supply (either dinar or dollars) under the current system

Dave   Kaperoni NO RV yet I am aware of that

Kaperoni   If they reduced the dollars, they could in theory also reduce the dinar

Kaperoni   but it must be a balance or the exchange rate and spread would change

Dave   IF not this it would be free float

Kaperoni   and if you reduced the dollars it would create issues since they need dollars for foreign exchange

Kaperoni   It is complicated and their are many aspects you need to consider. it is not a simple, reduce the money and RV. that is why this is all guru nonsense

Dave   KaperoniStop the MCP to eliminate that?

Dave   IMF DUAL PRACTICE?

Kaperoni   MCP? Do you know what that really means? It does not mean two currencies. it is referring to pricing

Kaperoni   Almost everyone thinks MCP means multiple currency practice..which is the term. But it does not mean two currencies

Dave   YEAH most developed countries do this....lpl

Kaperoni   it is referring to dual pricing

Kaperoni   and Iraq will always have dinar and dollars

Dave   Kaperoni thought we discussed this previously

Kaperoni   just like mexico has Pasos and dollars

Kaperoni   the dollar is going nowhere

Dave   Kaperoni LiKE CANADA USASadi et 'al

Kaperoni   Iraq gets paid in dollars for oil so they always will have dollars

Kaperoni   They though will try to use only dinar as the value increases for citizens

Dave   Kaperoni Want to get paid in Dinar SOON!

Kaperoni   lol

Kaperoni   good luck

Kaperoni   any increase is a ways away

Dave   THATS FER Sore.pl

Dave   Sure

Kaperoni   unfortuately

Kaperoni   Things could get worse before better

Dave  Kaperoni agree

Dave   What country runs 2 currencies

Dave   Mexico

Kaperoni   So in order for the auctions to end, there needs to be a mechanism in place to replace the auctions

Dave   BANKING

Kaperoni  What is you definition of run 2 currencies?

Dave   Mortages

Kaperoni   Iraq pays every citizen in dinar

Kaperoni   transactions on the street and stores are in both dinar and dollars

Dave   Stuffed in enveopes you told me that

Kaperoni   i doubt I said that because I dont even know what that means

Dave   ZIGGY WILL FIND IT

Kaperoni   Iraq is a mess and a long ways from transitioning to Article VIII IMO

Kaperoni   to many corrupt  to much counterfeit

Dave   UP tp CBI when to go global

Kaperoni   To many tribes interferring

Kaperoni   Tell that to Shabibi

Dave   Kaperoni counterfeit USD

Kaperoni   Dave your very naive. It is up to the IMF

Dave   Observer status now

Dave   Kaperoni Iraq just to to be compliant with IMF

Kaperoni   Observer of what?  lol   They are in Article XIV   under the IMF charter

Dave   can join up when they figure

Kaperoni   They cannot just move to Article VIII

Dave   OBSERVER STATUS

Dave   NOW!

Kaperoni   they have to meet Article VIII compliance and they request the IMF accept them into Article VIII

Kaperoni   and more importantly, the IMF has to accept them

Dave   Maintainig compliance now

Dave   OBSERVER STATUS

Kaperoni   There is no such thing as observer

Kaperoni   under the IMF and article XIV, this is called transitional

Kaperoni   https://www.imf.org/external/SelectedDecisions/Description.aspx?decision=1034-(60/27)

Kaperoni   https://www.imf.org/external/pubs/ft/aa/index.htm

Kaperoni   They have met some conditions yes   last I read, still one condition was outstanding

Kaperoni   but in any event, it does not mean they will move to Article VIII once in compliance because the IMF needs to agree

Kaperoni   And I do not see that happening until Iraq gets back on track

Kaperoni   new gov   cabinet  pass laws    stable   investors  lots to do

Kaperoni   They need to create the conditions

Kaperoni   and right now, they are far from the right conditions

Dave   https://www.imf.org/external/np/loi/2004/irq/01/index.htm

Dave   observer status

Kaperoni   show me what you are talking about

Dave   WTO UN all work together

Kaperoni   lol

Kaperoni   Observer status is with the WTO   whole different game. not related to IMF Charter

Kaperoni   did just see this on your link

Kaperoni   A. Main Challenges

24. The overarching goals of the Iraqi economic and financial policies are to improve the welfare of the Iraqi people, enhance political and social stability, and achieve a sustainable external debt position. Notable economic and structural reforms have been accomplished in a short period of time under extremely difficult circumstances.

Nevertheless, in the immediate future, Iraq faces daunting challenges, including restoring security, preparing the new elections, strengthening administrative capacity, broadening the revenue base, stepping up reconstruction, developing an effective social safety net, and promoting the development of the private sector.

Kaperoni   Nevertheless, in the immediate future, Iraq faces daunting challenges, including restoring security, preparing the new elections, strengthening administrative capacity, broadening the revenue base, stepping up reconstruction, developing an effective social safety net, and promoting the development of the private sector.

Kaperoni   this is what I mean when Iraq has lots of work to do

Dave   Agree

Kaperoni   Until they get there act together and launch the private sector, there is no increase in the dinar

Kaperoni   which could be months or years   up to them  I am hopeful though

Dave   IRAQ just needs to sign up to Global////WHY would they work on this compliance stuff when after all they are compliant

Kaperoni   lots of issues. not simple

Dave   Kaperoni Bingo!

Kaperoni   and I do not think they are 100% compliant

Dave   2 PER CENT NOTmuch change

Dave   Kaperoni Issues still with UN WTO

Kaperoni   This was one of the more recent Article IV Consultations with Iraq...

Kaperoni    "18. Simplify procedures to allocate foreign exchange. While, over the past years, authorities have introduced more documentation requirements for access to the CBI foreign exchange window mentioning concerns about anti-money laundering and countering the financing of terrorism (AML/CFT), these measures have generated sizable parallel market premium that has fueled speculative activity among banks and money exchange operators (¶9).

Simplifying these procedures, while properly implementing the AML/CFT standards, and gradually eliminating the remaining exchange restriction to move towards acceptance of the obligations under Article VIII of the IMF’s Articles of Agreement would help reduce the spread between the official and parallel market exchange rates."

Dave   Issues within issues

Kaperoni    This is important...    Simplifying these procedures, while properly implementing the AML/CFT standards, and gradually eliminating the remaining exchange restriction to move towards acceptance of the obligations under Article VIII of the IMF’s Articles of Agreement would help reduce the spread between the official and parallel market exchange rates."

Dave   They passed the AMLs

Kaperoni   while properly implementing the AML/CFT standards

Dave   IMF accepted that

Kaperoni   gradually eliminating the remaining exchange restriction

Kaperoni   to move towards acceptance of the obligations under Article VIII of the IMF’s Articles of Agreement

Kaperoni   So yes that is the plan..but still work to do

Dave   Did that alreadt

Kaperoni   Well if they did, they would be in it

Dave   AML passed and accepted by IMFwas a pre req

Dave   did it right before the deadline

Dave   like everything else

Kaperoni   Here is another recent comment from the Article IV Consultation

Kaperoni   "25. The government will gradually remove remaining exchange restrictions and a multiple currency practice (MCP) with a view to eliminating exchange rate distortions. Such a move towards acceptance of the obligations under Article VIII of the IMF’s Articles of Agreement will send a positive signal to the investor community that Iraq is committed to maintain an exchange system that is free of MCPs and restrictions for current international transactions and thus facilitate creation of a favorable business climate.

Dave   Kaperoni CBI AINT READT TO GO GLOBAL AINT THAT DUMB

Kaperoni   I agree they need to move to Article VIII, but these imply Iraq has work to do yet

Dave   BECAUSE CBI AINT READY

Kaperoni   "45. The government will implement reforms to strengthen the anti-money laundering and combating the financing of terrorism (AML/CFT) framework. This will contribute to improve the integration of the domestic financial system into the global economy, lower transaction costs, improve governance, reduce the size of the informal sector, and disrupt terrorist funding, thereby reducing the threat of terrorism."

Kaperoni   Until March 2016, the CBI published the daily volume of the auction allocation on its website. Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no longer maintains any exchange restrictions or multiple currency practices subject to Article XIV, Section 2, and currently maintains one exchange restriction and one multiple currency practice (MCP) subject to Fund approval under Article VIII, Sections 2(a) and 3."

Kaperoni   important...

Kaperoni   currently maintains one exchange restriction and one multiple currency practice (MCP) subject to Fund approval under Article VIII

Kaperoni    So no article VIII until that is met

Dave   Kaperoni NO DUAL

Kaperoni   You wonder what that 1 issue is?

Kaperoni   "The exchange restriction arises from an Iraqi balance owed to Jordan under an inoperative bilateral payments agreement. The MCP arises from the official action to limit the purchase of foreign exchange, with no mechanism to ensure that exchange rates in the official and parallel markets do not deviate from IRAQ each other by more than 2 percent.

Kaperoni   Iraqi balance owed to Jordan

Kaperoni   The MCP arises from the official action to limit the purchase of foreign exchange, with no mechanism to ensure that exchange rates in the official and parallel markets do not deviate from IRAQ each other by more than 2 percent.

Dave   Rules no DUALCurrencies

Kaperoni   IMO that 2% may be settled --   although they have fallen out of compliance a few times over the last few months for a day or two  --  again MCP has nothing to do with dual currencies   has to do with pricing   has to do with price of goods

Dave   exchange from what i read   exchange of what"   ?

Kaperoni   https://www.imf.org/external/SelectedDecisions/Description.aspx?decision=6790-(81/43)

Kaperoni   https://www.elibrary.imf.org/view/IMF022/12413-9781616352820/12413-9781616352820/12413-9781616352820_A005.xml?language=en&redirect=true

Kaperoni   MCP is the variation or price of goods from one currency to another

Kaperoni   has nothing to do with dual currencies in a country   That will always exist   in  Iraq

Kaperoni   Maybe that material will help. I have to go for tonighttak   e care

Dave   https://www.imf.org/external/SelectedDecisions/Description.aspx?decision=8648-(87/104)

Dave   MULTIPLE CURRENCY PRACTICES APPLICABLE SOLELY TO CAPITAL TRANSACTIONS

The phrase “multiple currency practices” in decisions of the Fund relating to the use of the Fund’s resources does not, except as otherwise provided, include multiple currency practices applying solely to capital transactions. 

Decision No. 8648-(87/104), July 17, 1987     Countries can play with 2 currencies....tank one build on the other?

Dave   @chattels HELP! hate double negatives...What does it Mean.....I got a headache

Dave   removing comas I read a NO?

chattels   Unnamed Iraqi official says Iraq has been given a 45 day exemption from US to be allowed to continue to import Iranian energy. http://mobp.as/5axwq

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