Zig’s Place Chat Room Discussion and News Thursday PM 11-26-20

Zig’s Place Chat Room Discussion and News Thursday PM 11-26-20

Zig:  Welcome to zig's place, a chat room for dinar speculators and others....discuss any topic that you wish here.

Xyz   The Central Bank holds a meeting with the Bank for International Settlements (BIS)

November 24, 2020   The Central Bank of Iraq held a remote meeting with the Bank for International Settlements (BIS) to discuss prospects for joint cooperation and investment mechanisms between the two parties.

The two parties agreed on the contribution of the Bank for International Settlements to enhance the capabilities of the Central Bank of Iraq and increase investment opportunities in foreign reserves.

The Bank for International Settlements is an international institution that provides services to central banks that seek to enhance global monetary and financial stability, And that through its activities in achieving a balance of the priorities of strategic importance for central banks in managing reserves,

And ensuring a good understanding of cash flow management, and diversification in order to obtain good returns to meet their needs,

As well as providing credit brokerage services, gold, foreign exchange and asset management, including an integrated management function    For financial and operational risks and properly control them.

Xyz    The Central Bank of Iraq information Office https://cbi.iq/news/view/1607

Positive Ties Between Erbil and Baghdad Key to Stability Across Iraq: UN ERBIL - All sides agree that a constructive and positive relationship between the Kurdistan Regional Government (KRG) and the federal government is key to the stability across Iraq, Special Representative of the UN Secretary-General for Iraq, Jeanine Hennis-Plasschaert, stated.

Hennis-Plasschaert made the remarks while briefing the UN Security Council via a video-teleconference from Baghdad on Tuesday, in which she shed light on various topics.

"With regards to Baghdad-Erbil relations: all of us will agree that a positive and constructive relationship between federal Iraq and the Kurdistan Region is key to the stability of the whole country," the UN envoy said.

She further noted that the KRG and the federal government recently signed an agreement on the normalization of situation in Sinjar, which was considered to be "an important agreement, as it could pave the way for a new chapter for Sinjar, for all Sinjaris."

As Baghdad is yet to send Erbil's share from the federal budget, Hennis-Plasschaert reminded that "it should be clear, however, that a Kurdish Region public servant is not only a Kurdish Region public servant: she or he is also an Iraqi citizen."

"The payment of public civil servants should be shielded from political disputes, they cannot and should not be collectively victimized. A solution is urgent, and political will to find a way out will - once more - prove essential." https://www.basnews.com/en/babat/650760

Xyz     Iraq To Approve 2021 Budget Next Week

Earlier, Iraq’s Oil Minister Ihsan Abdul Jabbar said oil prices are expected to reach around $45 in the first quarter of 2021

Iraq has also based a draft 2021 federal budget on a projected oil price of $42 per barrel; the oil minister added. https://shafaq.com/en/Iraq-News/Iraq-to-approve-2021-budget-next-week

Parliamentary Finance Reveals A Paper To Reform The Economy And Does Not Depend On Borrowing    LINK

Xyz    Al-Darraji Demands The Central Bank To Adopt A Real Rate Of The Iraqi Dinar

24-11-2020  Al-Mustaqilla .. MP Muhammad Sahib Al-Darraji called on the Central Bank to adopt the real price of the Iraqi dinar, away from the prices offered in the currency auction.

Al-Darraji said in a tweet on his Twitter page, Tuesday, "The central bank must adopt a real price for the dinar, away from breaches of the window of selling the notorious currency."

He also called for "disclosing bills and documentary credits provided by banks in exchange for transferring hard currency abroad and checking its credibility."

Al-Darraji stressed that the bank’s failure to do so is that it “is considered an accomplice in the crime and we will have to resort to legal methods to remedy this defect.”

The window of selling the currency in the central bank faces many criticisms, while leaks stated that a number of banks acquire the amounts that are being traded in the currency auction for the purpose of increasing their profits.  LINK

The post Al-Darraji demands the central bank to adopt a real rate for the Iraqi dinar appeared first on the independent press agency. LINK

xyz    Al-Ansari to "Al-Eqtisadiah News": The Economic Contact Group will accelerate the implementation of economic reforms https://economy-news.net/content.php?id=22885

The economic expert, Aqeel Al-Ansari, said that the formation of the Economic Contact Group for Iraq will contribute to the implementation of economic reforms in Iraq.

He added in a statement to "Al-Iqtisad News" that "the group's role lies in helping the Iraqi government to draw a roadmap to get out of the economic predicament that it is experiencing, as a result of the outbreak of the Corona virus and the low oil prices."

He added, "The importance of the group also relates to that it is a contact group and not a financial or economic alliance, meaning that they will not provide loans like the Kuwait Donors Conference."

"It is hoped that the group will monitor the progress of reforms, provide advice and expertise that is lacking in Iraq, and mobilize the international community to help it and bring it closer to international or legal accounting firms," Al-Ansari said.

He pointed out that "the periodic meeting of the group, every three months, will push all the parties to implement what they have agreed upon and to progress according to the drawn road map."

He added that "the international community is represented in this group by the World Bank and the Monetary Fund, as well as the Group of Seven, which gives an indication that the international community is morally committed to helping Iraq out of this ordeal and build a better future."

 Xyz   Finance Minister: The Iraqi economy is going through unprecedented corruption https://economy-news.net/content.php?id=22884

The Minister of Finance, Ali Allawi, confirmed, on Wednesday, that the Iraqi economy is going through unprecedented corruption, to the point that the employee’s seat at the border outlets is being sold between 50 and 100,000 US dollars.

Allawi said in statements to the British Guardian newspaper that the crises in Iraq will remain for a long time, and will continue until the price of a barrel of oil reaches $ 70, indicating that the price of oil will not rise, and solutions must be found, otherwise Iraq will be the fate of Venezuela.

Allawi added, that the problems of Iraq are interrelated, to the point that when a solution to one of the problems is sought, an influential and beneficial personality emerges and impedes its achievement.

Pointing out that only 10 percent of the border crossings' revenues, which amount to eight billion, enter the Iraqi treasury, due to corruption and influence.

xyz   Financial Committee: The budget will arrive in Parliament within two weeks, and approval will be delayed for the next year https://economy-news.net/content.php?id=22882

The Finance Committee revealed that the 2021 budget will soon reach the House of Representatives for approval, blaming the Finance Ministry for delaying its arrival to the House.

A member of the committee, Ahmed Hama Rashid, said, in an interview with "Al-Eqtisad News" that "the budget is still in the inclusion of the Ministry of Finance and will reach Parliament within the next two weeks."

He added that "the committee has not yet reviewed the budget provisions and their details," noting that "the committee needs 45 days to complete the vote on it."

Rashid ruled out approving the budget during the current year, attributing that to the "delay of the Finance Ministry in sending the budget to the House of Representatives, in contradiction to the Financial Management Law, which requires sending it in the middle of the tenth month."

And on the salaries of the first month of next year, a member of the Finance Committee said, "The government can provide salaries for employees from oil sales, but it deliberately delays it."

And he indicated that "when the parliament approved the second borrowing law, the Iraqi government had 3.6 trillion dinars in its balance."

Professor Dinard   Sometimes I believe iraq was better off under dictator rule

Xyz   Parliament prepares a package of reforms that includes a "new salary scale" https://aynaliraqnews.com/index.php?aa=news&id22=141218

A statement by the Media Department of the House of Representatives stated that "the Financial Committee headed by Haitham Al-Jubouri, Chairman of the Committee, and the attendance of the members held a meeting in which it discussed the economic and financial reforms paper prepared by it, and hosted the General Manager of the Iraqi Company for Bank Services ."

The reforms also included preparing a new salary scale, reviewing all the allocations previously granted, taking into account the economic situation, achieving social justice and encouraging employees to work in the private sector, as well as revitalizing the industrial and agricultural sectors, protecting investors and building major strategic projects that achieve huge revenues for the state treasury .

xyz   Iraq, Saudi Arabia reopen Arar border crossing after 30 years

Arar crossing opens for transportation of goods and people for the first time since 1990, official statement says. https://www.aljazeera.com/news/2020/11/18/iraq-saudi-reopen-arar-border-crossing-after-30-years

xyz   How an AI Tool Distinguishes Between a Conspiracy Theory and a True Conspiracy https://www.nextgov.com/emerging-tech/2020/11/how-ai-tool-distinguishes-between-conspiracy-theory-and-true-conspiracy/170309/

xyz  Israeli military prepares for possibility Trump will strike Iran https://www.axios.com/israeli-military-prepares-trump-iran-0d0a5725-c410-4f5c-a0ea-9c6f9add4966.html

xyz  Ga. Sen. Perdue boosts wealth with well-timed stock trades https://apnews.com/article/senator-david-perdue-georgia-stocks-198e39c67f90e25bb6b2398bd32c1363

Dave   Zig enjoy the chatter of Iraq wishing to increase the purchasing power of the IQD?

Professor Dinard   There are other policy issues that might lead a country to change its fixed exchange rate. For example, rather than implementing unpopular fiscal spending policies, a government might try to use devaluation to boost aggregate demand in the economy in an effort to fight unemployment. Revaluation, which makes a currency more expensive, might be undertaken in an effort to reduce a current account surplus, where exports exceed imports, or to attempt to contain inflationary pressures. https://www.newyorkfed.org/aboutthefed/fedpoint/fed38.html

Professor Dinard  That's a good read

Zig  Professor Dinard : You're a wealth of information today

Professor Dinard   It also states that IMF can also change the sdr rate between them and country so technically speaking kap is wrong to say it's impossible to RV

Professor Dinard   The role of the SDR

The SDR was created as a supplementary international reserve asset in the context of the Bretton Woods fixed exchange rate system. The collapse of Bretton Woods system in 1973 and the shift of major currencies to floating exchange rate regimes lessened the reliance on the SDR as a global reserve asset. Nonetheless, SDR allocations can play a role in providing liquidity and supplementing member countries’ official reserves, as was the case amid the global financial crisis.

The SDR serves as the unit of account of the IMF and some other international organizations.

The SDR is neither a currency nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. SDRs can be exchanged for these currencies.

Professor Dinard  https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/14/51/Special-Drawing-Right-SDR

Dave   member countries.......

Professor Dinard  Dave Under the Articles of Agreement, when certain conditions are met, the IMF may allocate SDRs to members participating in the SDR Department in proportion to their quotas (known as a general allocation). A special one-time allocation in 2009 enabled countries that joined the IMF after 1981 (i.e., after previous allocations) to participate in the SDR system on an equitable basis. Participating members can buy and sell SDRs in the voluntary market. If required, the IMF can also designate members to buy SDRs. The SDR mechanism is self-financing and levies charges on allocations which are then used to pay interest on SDR holdings.

Dave   members....

Professor Dinard  Dave At a Glance

2020 Projected Real GDP (% Change) : -12.1

2020 Projected Consumer Prices (% Change): 0.8

Country Population: 40.132 million

Date of Membership: December 27, 1945

Article IV/Country Report: July 26, 2019

Outstanding Purchases and Loans (SDR): 1096.08 million (September 30, 2020)

Special Drawing Rights (SDR): 1.61 million

Quota (SDR): 1663.8 million

Number of Arrangements since membership: 4

Professor Dinard   https://www.imf.org/en/Countries/IRQ

Professor Dinard  

https://www.imf.org/en/Publications/CR/Issues/2019/07/25/Iraq-2019-Article-IV-Consultation-and-Proposal-for-Post-Program-Monitoring-Press-Release-48527

Dave   wonder why one cant trade or purchase globally......

Dave   IQD

Zig   Dave : That Forex comment was not meant for me, right?

Dave   oops

Professor Dinard   Dave why not?

Dave   your the professor.....

Dave   can get iqd on ebay.....

Professor Dinard   Dave I'm more worried about what IMF says its value is rather than forex market

Dave   still ch7 sanctions.......

Dave   xyz rather than dismiss the professor arbitrarily... i did not know then iqd was now globally traded.....WHIPPY......Sorry Dr

Professor Dinard   This perilous pandemic is spreading through Arab countries at a time when some of them are already battered by conflict. Let us make this year, 2020, a year for peace in our region. All regional stakeholders and the global community must declare an immediate humanitarian truce and renew efforts to build lasting peace. The blockade of the Gaza Strip must be lifted, as well as sanctions imposed on some Arab countries, with no restrictions on the material necessary to fight the pandemic and protect livelihoods https://www.unescwa.org/oes-speeches/regional-emergency-response-mitigate-impact-covid-19

Professor Dinard   Dave it's all good I didnt know either I just assumed it was lol

Dave   Professor Dinard ebay does ship iqd globally

Dave   so its global......

Xyz   Dave what r u referencing?

Dave   xyz IQD being a recognized gobally traded currency

Professor Dinard   Dang shoulda bet million dinars lol

Dave   Professor Dinard want to bet?

Dave   give you a hint.......take your dinar and ask to exchange for USD

Dave   dinar to an airport

Dave   or any forex kiosk.....

Professor Dinard   I'll take the bet if you look at this chart https://ourworldindata.org/grapher/covid-tests-cases-deaths-per-million?tab=chart&stackMode=absolute&time=2020-03-14..latest&country=~CAN&region=World

Dave   heard Canada's Covid Dr Speak today...had my dose already

Professor Dinard   Suit yourself

Dave   gotta go to work actuall;y....

Professor Dinard   They're the canada dr's numbers

Dave   said will approach 10k/day by weekend

Dave   BC went from half a dozen in the late summer up to 1k/day

Xyz   NORV when is float starting?

NORV   Long time because Iraq does nothing to create a suitable investment climate.

NORV   There will never be a significant RV of the Iraqi Dinar despite the daily guru BS saying there is. Not possible and not happening. To much dinar in circulation. Not how monetary policy works. Only with the success of Iraq's private sector and growth from investment can the dinar appreciate. Read Iraq's consultations with the IMF to learn the facts.

xyz   NORV why are you so sure? Some gurus called for Trump win and failed. You are a guru too.

xyz   NORV calling float is a bet.

Clydesdale   11-25-2020 Intel Guru Frank26 ...a couple weeks ago the upper echelon management of the banks in Iraq were invited to the CBI. It is my opinion the CBI talked to them about a date and rate. And also when they will be showing the citizens the new small category notes and rate...the last week or two weeks of this month it will go from the senior management level to the floor managers and then to the tellers... So doesn't Walking Stick fall in a high category according to frank's opinion?

xyz   Experts discuss fate of the Iraqi Dinar

At a webinar hosted by the Iraq Britain Business Council (IBBC) yesterday, a team of experts presented and discussed their insights on the Iraqi government's recent White Paper, and on the challenges and opportunities facing the country.

On the subject of the Iraqi currency, Frank Gunter, Professor of Economics at Lehigh University, commented:

"As the international reserves of Iraq decrease ... this is going to put pressure for a depreciation or loss of value of the dinar ... and that might be a good thing.

"The dinar was deliberately appreciated, increased in value, by almost 20 percent. It has made exports from Iraq uncompetitive; it has led to a huge amount of imports into Iraq because the foreign products are so cheap.

"Maybe a possible reaction to the fiscal constraint is to devalue the dinar, so that every dollar of oil sales will buy more dinar, which will allow payment of the salaries and pensions and the infrastructure."

While agreeing that the dinar was overvalued, Hadi Al Damirji, of MIT's Sloan School of Management, urged some caution, in case a devaluation would lead to a further run on the dinar:

"I totally agree with the philosophy of keeping the dinar lower, but when is the right time to move it?"

Suggesting a conrolled devaluation, in combination with incentives to reduce public sector salary commitments, Shwan Aziz, former Chief of staff to the Iraqi Deputy Prime Minister, said:

"[We must] protect those groups that have dinars in the banks, or those contractors who have not been paid for so many years ... [but] controlled devaluation, it seems, is unavoidable." https://www.iraq-businessnews.com/2020/11/26/experts-discuss-fate-of-the-iraqi-dinar/

Video: https://www.youtube.com/watch?v=eVdUNk3wvY0

Zig:  Refferals Will now be the only way we acquire new members...Only registered members who have been "activated" will have access and be able to post...If you would like to refer someone simply ask him/her to register, and make sure you know the username being registered...then simply address me in chat, writing that you have a referral, but please don't post the username...Once I see that someone new has registered I will ask you if that is your referral, then will activate them, etc....If you know someone here and wish to be an active member, I suggest that you contact him/her and ask to be referred...... :coffee: ......All Referrals are thoroughly vetted

Zig   The Chat Room will remain this way....I will no longer unlock it from time to time so anyone may post as a guest, etc....This way works best for me for various reasons...I do hope our current members refer others....if you would like to be a member here and recognize someone here, just contact them for a referral...

Zig   If you access this chat via https://my.cbox.ws/ZIGPLACE   You can make the box much bigger by clicking this link  ZIGPLACE - Cbox

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