http://dinaresgurus.blogspot.ca/
SUNDAY, DECEMBER 20, 2015
MILLIONDAY CHAT UPDATE, 20 DEC
Millionday: NOTE — WE HAVE SOME INTERESTING PUZZLE PIECES WITH CHINA TO LOOK AT TONIGHT
Millionday: The US Congress has taken a step closer to granting long-awaited approval to reforms of the International Monetary Fund that would give China and other emerging economies a greater voice in shaping the institution’s policies.
The text of a US omnibus spending bill, released Wednesday morning as part of a budget deal, includes approval for the Obama administration to finally vote for stalled 2010 quota reforms that have become a source of tension between the US and the IMF.
Millionday: NOTE — THE QUOTA REFORMS ARE FOR BUSINESS IN FRONT OF THE IMF AND THE % CHANGES THAT WERE RELEASED TO THE PUBLIC AS BEING ADDRESSED (AWAITING APPROVAL) –
THE US DOMINATION IS EXPECTED TO BE CHANGED WITH THE CHANGES OCCURRING WITH THE “GREATER VOICE” FROM OTHER ECONOMIES-CHINA ETC POLICIES
Millionday: The 2010 reforms called for a doubling of the IMF’s quotas, or the capital countries contribute, and a reallocation to give countries such as China a greater say at the fund. Under the reforms now expected to go ahead, China’s voting share at the IMF would increase from 3.8 per cent to 6 per cent while the US would see its share shaved from 16.7 per cent to 16.5 per cent and preserve its veto. The big losers would be European economies, which would see their voting rights diminished.
Millionday: NOTE — THAT IS A HUGE LEAP FOR CHINA OF 2.2 GREATER VOICE AND FOR THE UNITED STATES OF AMERICA TO SEE ITS SHARE GO FROM .2 BUT PRESERVE THE VETO —-
EU COUNTRIES WILL SEE VOTING RIGHTS MINIMIZED — VERY INTERESTING TO SEE CHANGES RIGHT NOW — WITH OTHER NEWS WE ARE GOING TO LOOK AT
Millionday: NOTE — REMEMBER THE NEWS ABOUT ASIAN ECONOMIC IMPACT WE HAVE SEEN SO MUCH OF
Millionday: Under the legislation, a US administration would have to inform Congress at least seven days before any IMF board vote on granting what is known as “exceptional access” to fund resources above the normal caps.
The bill also calls for a study into whether the IMF should require collateral for loans made under those terms, raising the possibility of countries such as Greece having to hand over control of large parts of infrastructure such as ports or power plants to the IMF in order to secure rescue funds.
Millionday: SO MAYBE THIS WILL LESSEN THE IMPACT ONE ECONOMY HAS ON THE GLOBE DUE TO LACK OF MONITORING AND NON-BUDGETING ETC —
Millionday: ALOT HAS HAPPENED IN THE RECENT PAST THAT COMES TO MIND AND ALSO THINK OF BRETTON WOODS AND ITS PURPOSE WHILE THINKING ABOUT THE TIMELINE OF THE IMF POLICIES ETC THEY ARE TRYING TO REFORM — ALL IRONIC TO ME
Millionday: GREAT JOB ON THE NEWS RESEARCH TODAY EVERYONE THAT HELPED — AMAZING AMOUNT OF NEWS AVAILABLE ON THE SITE — WHOOOPOW
Millionday: I AM NOT CERTAIN IF I SPENT ENOUGH TIME REPORTING TO YOU THE MAJOR CHANGES THAT OCCURRED WHEN THE NEW MONETARY POLICY WAS RELEASED –
WE ARE AND WILL BE SEEING IT A LOT IN THE NEXT LITTLE BIT AS THESE CHANGES OCCUR SO LETS LOOK AT SOME OF IT
Millionday: I WILL NOT BE BRINGING THE ENTIRE POLICY BUT WE WILL BE LOOKING AT SOME OF THE HUGE CHANGES AND MOST IMPORTANT
Millionday: The changes in the CBI’s regulations and operations are designed to give the Central Bank better control of the money supply while at the same time providing greater certainty to banks with regard to the options and terms for managing their liquidity.
The new government securities market is also expected to play an important positive role in bank liquidity management in conjunction with these new regulations.
Banks will be expected and financially encouraged to manage their short-term liquidity needs with other banks (or the market more generally), turning to the central bank as a last resort.
The CBI will hold meetings with banks in the near future to discuss the proposed regulations.
The CBI will hold meetings with banks in the near future to discuss the proposed regulations.
Millionday: NOTE — MANY MEETINGS HAVE BEEN OCCURING LATELY DUE TO THE IMPLEMENTATION OF THE MONETARY POLICY WE HAVE READ RECENTLY
Millionday: OBVIOUSLY CBI HAS BETTER CONTROL OF THE MONEY HOWEVER THEY HAVE ALSO SHOWN CHANGES IN THE BANKS POWER DUE TO THE RELEASED ROLES WE READ ABOUT YESTERDAY
Millionday: MY FAVORITE PART IN THE MONETARY POLICY THAT WE ARE WATCHING UNFOLD IS >>>>>>The new government securities market is also expected to play an important positive role in bank liquidity management in conjunction with these new regulations.
Banks will be expected and financially encouraged to manage their short-term liquidity needs with other banks (or the market more generally)
OBVIOUSLY ANY OPENING GLOBALLY WITH A MARKET ECONOMY AND THE ROLE WE SEE HERE OF ISX IS AT THE VERY LEAST WHOOOPOW EXCITING — SMILE
Millionday: READ EVERY WORD >>>>>>>>>>>>>The Central Bank of Iraq (CBI) has been recasting its operational relationship with banks in order to develop market based instruments of monetary policy and to facilitate the development of the market for the new MOF securities. ‘
Banks will no longer be required to hold MOF securities equal to 10 percent of total deposits (now contained in the reserve requirement regulation). The CBI will no longer buy or sell the existing MOF securities at the initiative of banks.
In addition, the existing overdraft and advance facilities of the CBI have been closed and will be replaced by the new standing lending and deposit facilities just adopted by the CBI Board. The new reserve requirement regulation will go into effect in either October or November.
Millionday: NOTE — THE STOCK SECURITIES FOR MOF (MINISTER OF FINANCE)– MARKET BASED INSTRUMENTS WOULD BE BONDS ACCORDING TO WHAT I (NOT AN EXPERT) UNDERSTAND —
SO THEY WOULD NO LONGER HAVE TO HOLD 10% OF ALL THE SECURITIES OF THE BANKS HOLDING THE DEPOSITS AND CBI DOES NOT HAVE TO BUY OR SELL THE BONDS (MARKET BASED INSTRUMENTS) JUST BECAUSE THE BANK REQUESTS IT FOR ONE REASON OR ANOTHER
Millionday: INTERESTING PART THEY ADDED >>> The CBI may at its discretion buy or sell MOF securities with banks in a competitive auction as required for monetary policy purposes (so called “open market operations”). The details of all of these changes are explained below-
Millionday: NOTE — WOULD ANYONE LIKE TO SEE THE POINTS IN THE OPEN MARKET OPERATION CHANGES ? Millionday: SMILE Millionday: WHOOPOW
Millionday: WOW EVERYONE — I FEEL LIKE I HIT PAY DIRT WITH THIS INFO
Millionday: LETS SPEND SOMETIME LOOKING AT THIS AND YOU WILL SEE WHY I AM SO EXCITED — THIS IS HUGE IN CHANGES AND THE ENTRY TO THE GLOBAL MARKET FINANCIALLY
Millionday: WHOOOPOWS
Millionday: The design of a central bank’s monetary policy instruments should serve both to foster efficient short-term liquidity management by banks and to deliver the central bank’s desired monetary policy (which can be measured by a variety of intermediate variables, including the yield curve, the exchange rate, and the rate of growth of the monetary supply).
Millionday: READ EVERY WORD
Millionday: With regard to liquidity management, the central bank’s policy instruments must work together with money and securities markets and an efficient payment system to provide banks with confidence that they can always meet their payment obligations at a reasonable cost.
Millionday: NOTE — THE NEW POLICY REQUIRES CBI MUST USE THE FOREX SYSTEM OF MONEY SECURITIES — FOREX — IN ORDER TO ALWAYS PROVIDE CONFIDENCE IN THE ABILITY TO MAKE THE PAYMENTS DUE TO MEET THE AGREEMENTS THEY HAVE MADE CONCERNING DEBTS
Millionday: WHOOPOW
Millionday: The most certain, but also the most costly, form of liquidity is provided by excess reserves (vault cash and balances with the central bank in excess of required reserves). ]
Intermediation spreads (the difference between interest rates on deposits and on loans) can be narrowed by enabling banks to minimize their holdings of non-interest yielding excess reserves. Bank’s ability to minimize excess reserves depends on the availability of other reliable means of liquidity management.
Millionday: NOTE — EXCESS LIQUIDITY IS COSTLY BECAUSE MONEY IS NOT WORKING FOR ONE THING — MONEY SHOULD ALWAYS BE MAKING MONEY (AMONG OTHER THINGS)
Millionday: THE DIFFERENCE BETWEEN MONEY MADE IN INTEREST YOU HAVE AND YOU ARE CHARGED ON DEBTS YOU HAVE — THIS IS WHY IT IS IMPORTANT TO HAVE HIGH CREDT RATINGS AT ALL TIMES FOR COUNTRIES AND PEOPLE — SMILE
Millionday: NOW WE ARE GOING TO SEE THE COMPARISON TO HOW THE MONETARY POLICY WAS AND THE CHANGES IN THE NEW — COMPARE
Millionday: NOTE — GET YOUR HATS THIS IS SO EXCITING IT PUTS TEARS IN YOUR EYES- HERE WE GO WHOOOPOW
Millionday: NOTE — CURRENT MEANS THIS IS THE OLD ONE WITHOUT ANY CHANGES FROM THE NEW POLICY
Millionday: The CBI currently has the following active and passive instruments that affect market liquidity (base money):
• Foreign exchange auctions, in which the CBI buys or sells dollars to the market in light of its policy objectives;
• A reserve requirement regulation that requires banks to hold in relation to their customers deposits: differentiated levels of deposits with the CBI, vault cash, and MOF securities.
• An Overdraft Facility, for banks with reserve account balances at the CBI that are not sufficient to settle their net end of day payment obligations;
Millionday: NOTE — REMEMBER I JUST SHOWED YOU THAT THE CBI BOARD JUST APPROVED THE OPENING OF THE NEW FACILITY THAT WILL BE USED INSTEAD OF
• An Overdraft Facility, for banks with reserve account balances at the CBI that are not sufficient to settle their net end of day payment obligations;
Millionday: • A Discount Window for bills of exchange and similar bank paper with a maturity of less than 90 days and at least two endorsements (currently charging 11% for good quality paper);
• Lender of Last Resort Facility, which provides individually negotiated loans against collateral, for banks with chronic liquidity problems;
• MOF securities Window, at which banks may buy or sell MOF securities at par (i.e. at issued interest rate).
Millionday: NOTE — THIS IS ALL THE MAJOR POINTS THAT CAN NOT AND DO NOT REMAIN IN THE NEW MONETARY POLICY
Millionday: NOTE — NEXT I AM GOING TO SHOW YOU THE CHANGES IN THE NEW MONETARY POLICY THEY ARE IN THE MIDDLE OF IMPLEMENTING DUE TO ABADI ACTIVATING THE ECONOMIC REFORM –
THE MONETARY POLICY IS PART OF THE ECONOMIC REFORMS AS IS THE BANKING AND ALL FINANCIAL REFORMS OBVIOUSLY
Millionday: HERE WE GO — HOLD YOUR HATS
Millionday: The above instruments are not adequate for the development of an efficient market oriented financial sector. In particular, they are not adequate or appropriate for developing an efficient and liquid market in government securities or for conducting a market based monetary policy.
Millionday: NOTE — AS I WAS SAYING — THOSE THINGS IN THE LIST WILL NOT WORK IN A GLOBAL ECONOMY — INTERNATIONALLY RECOGNIZED CURRENCY AND A MARKET ECONOMY (ISX) ETC
Millionday: While the new FX auctions are well designed and are functioning satisfactorily, the other instruments are being redesigned. The reserve requirement does not provide banks with a useful liquidity management tool and would have complicated the implementation of a monetary target.
Millionday: NOTE — LIQUIDITY RULES ETC ARE NOT USEFUL IN THE NEW POLICY AND THE NEW >>>>>>>>>>>>>>TARGET<<<<<<<<<<<<
Millionday: Articles 28, 29 and 30 of the CBI law establish the CBI’s powers to conduct open market operations, provide standing facilities for banks, establish reserve requirements, and, under exceptional circumstances, provide Lender of Last Resort credits. These articles provide the basis for the modern policy instruments being adopted by the CBI.
Millionday: NOTE — BY CBI LAW >> ARTICLE 28, 29, 30 ALLOW AND ESTABLISH THE POWER FOR CBI TO TAKE THE NATION`S CURRENCY (IRAQI DINAR) TO THE MARKET >>>>>>>>>>
These articles provide the basis for the modern policy instruments being adopted by the CBI.>>>>>>>>>>BEING ADOPTED BY CBI –
THE MODERN POLICY MEANING THE NEW MONETARY POLICY BEING IMPLEMENTED WITH THE ECONOMIC REFORM AND CBI LAW
Millionday: I HOPE YOU DIDNT CHEW YOUR HAT UP YET
Millionday: THE NEW CBI LAW GIVES CBI THE POWER TO DO WHAT THEY ARE IN THE PROCESS OF DOING — TAKE THE DINAR TO THE GLOBAL MARKET ECONOMY
Millionday: WHOOPOW
Millionday: I HOPE YOU KNOW THIS IS WHAT WE ARE WAITING FOR
Geofitness: But how do we know the CBI will do what they say since Dr Shabs is not the head anymore. It’s been said he must be reinstated before this RV could happen due to the corruption
Millionday: HOLD YOUR HAT AND READ EVERY WORD — VERY IMPORTANT
Millionday: CBI is introducing a new requirement, better designed for the needs of monetary policy in a market economy. Where they exist, reserve requirements almost universally are seen as a tool of monetary policy rather than banking supervision.
Thus the responsibility for monitoring each bank’s compliance with the revised requirement has been moved from the Credit and Banking Control Department to the Agreements and Loans Department, the department with primary responsibility for monetary policy implementation.
Millionday: NOTE — THIS S VERY IMPORTANT DUE TO ITS COMPLIANCE WITH INTERNATIONAL ACCOUNTING STANDARDS
Millionday: NOTE — I SEE THIS AS AN ISSUE OF POWER TO THE BANKS WITHIN THE ROLES THEY PLAY BY LAW AND ALSO THE BASEL REQUIREMENTS WHICH ESTABLISH THE LIQUIDITY REQUIREMENTS AS WELL (I AM NOT A BANKING EXPERT)
Millionday: NOTICE THAT THIS IS BEING INTRODUCED AND IMPLEMENTED — THIS IS NOT A DREAM OR AN OPINION PIECE — THIS IS OFFICIAL CBI DOCUMENT
Millionday: For monetary policy purposes a uniform requirement (i.e., the same ratio for all reservable deposits) is preferable. The ratio in the new requirement is applied to all deposit liabilities in the definition of money because that makes the money multiplier (the ratio of the quantity of money to base money) more stable and predictable.
Millionday: NOTE — WITHIN BASEL REQUIREMENTS — BANKS VARY IN THE REQUIREMENTS DUE TO THE ROLE THEY PLAY WITHIN EACH NATION FOR THAT NATION — I AM TALKING ABOUT BASEL III REQUIREMENTS COMPARED TO BASEL II REQUIREMENTS ETC —–
THE WAY THAT I UNDERSTAND THE PLAN THEY HAVE IN IRAQ IS TO MEET A HIGHER BASEL REQUIREMENT THAN THEY ARE EXPECTED TO SO THEY MAY MAKE CHANGES IN THE BANKS ABILITIES OR SERVICES WHEN THE MARKET MAY SHOW THE ABILITY FOR THAT BANK TO SUSTAIN AT A HIGHER BANKING ROLE
Millionday: In addition, it has a neutral impact on the public’s choice of deposit maturities, which from a “tax” policy perspective is preferable. Foreign currency deposits are also included in the deposit base for the reserve requirement so as not to favor foreign currency deposits and hence dollarization. The requirement against both dinar and foreign currency deposits must be meet with dinars.
Millionday: NOTE — THIS IS SAYING WITH THE NEW MONETARY POLICY AND HOW IT APPLIES TO BANKING POLICY IS THAT NO MATTER WHAT CURRENCY THEY HOLD THEY MUST HAVE THE REQUIRED % IN DINAR FOR THE AMOUNT THEY ACTUALLY WOULD BE REQUIRED AT THAT VALUE –
THIS WILL Allow the bank the option to RATHER DEAL IN DINAR AND ACTUALLY SEE GROWTH FOR STAKEHOLDERS IN THE SECURITIES (ISX)
Millionday: THEY ARE GOING TO HOLD THE BANK TO THE AMOUNT OF RESERVES THEY WOULD HAVE TO HAVE IN DINAR WITH THE NEW MONETARY POLICY AND BANKING STANDARDS
Millionday: In the new requirement these are combined so that the single, uniform requirement may be satisfied by the sum of each bank’s vault cash and current account deposits with the CBI.
The primary benefit to banks of the new requirement results from allowing the requirement to be met on average rather than on a continuously basis. The requirement will continue to be established for monthly periods but the current frozen deposits will be moved into the single clearing account for each bank.
Millionday: NOTE — THE RESERVE REQUIREMENTS ARE ALONG WITH MODERN BANKING — ( I AM NOT A BANKING EXPERT)
Millionday: WHOOOPOW I AM LOVING SEEING THE NEW POLICY BEING ACTIVATED AND SEEING THE LIGHT IN THE TUNNEL THE GLOBAL MARKET — WHOOPOW
Millionday: NOTE — WHAT KIND OF DINARS DOES THIS SAY? SMILE
Millionday: The assets that must be held on average to satisfy the requirement will be banks’ Iraqi dinar deposits with the central bank (other than in the standing deposit facility) plus their (new) Iraqi dinar cash in their vaults.
Millionday: WHOOOPOW
Millionday: NOTE — IF I WERE A BETTING WOMAN — I WOULD SAY THE — NEW CBI BUILDING IS GOING INTO USE
Millionday: The CBI Board has set the reserve ratio at 25 percent. Because the new reserve requirement allows banks to use their dinar vault cash to satisfy the requirement, bank’s reserve assets will be greatly increased.
To limit the impact of this change on bank liquidity (without raising the requirement ration even more), the Board also stipulated that 20 percent (of deposits) must be meet by deposits at the CBI and 5 percent (of deposits) by vault cash.
Millionday: NOTE — THE TOTAL PERCENTAGE NEEDED FOR A BANK TO HAVE ON HAND IS 25% —
AS WE HAVE TALKED ABOUT BEFORE — BANKS ARE NOT REQUIRED TO HAVE ALL IN CASH OF THE MONEY DEPOSITED IN THEIR BANKS AT ALL GIVEN TIMES —
THEY HAVE A TOTAL OF 25% AT CBI UNDER THE NEW MONETARY POLICY THEY ARE IMPLEMENTING
Millionday: NOTE — THE NEW CBI LAW
Millionday: The new central bank law provides for the CBI to establish standing lending and deposit facilities. A standing lending facility and a lender of last resort facility will replace the existing over draft and advance facilities now in use. The new law does not permit overdrafts of banks’ balances with the CBI.
The purpose of standing credit and deposit facilities is to provide assurance to banks that they can manage their excess liquidity within a modest range of interest rates that straddle the central bank’s policy objective for short term rates.
Millionday: NOTE — THE NEW LAW ALLOWS BANKS TO LOAN FUNDS AND THE AMOUNT OF 25% IS THE STANDARD THEY WILL USE THAT THEY WILL HAVE ON HAND –
THIS WILL HELP BANKS GAIN CONFIDENCE IN WHAT THEY LEARNED ABOUT BANKING IN THE MODERN MARKET AND ALSO WILL REDUCE CORRUPTION WHILE COMPLYING WITH INTERNATIONAL ACCOUNTING STANDARDS
WHILE AT THE SAME TIME ADDING CONFIDENCE TO BANKING FOR CITIZENS AND ACTUALLY THROUGH THE GOVERNMENT LAWS AND BENEFITS AS WELL —
THIS IS HUGE FOR IRAQ — BIG CHANGE AND MODERNIZATION
Millionday: SO AS WE SEE — CBI IS VERY BUSY PUTTING IN PLACE MANY CHANGES WITHIN THE SYSTEM AS WE KNOW THE BANKING CONFERENCE THAT TOOK PLACE ON THE 12TH AND 13TH WERE TO EDUCATE
AND ANSWER ANY QUESTIONS ON ALL THE NEW POLICIES BECAUSE KNOWLEDGE IS POWER AND THIS WILL ONLY MAKE A DIFFERENCE IN THE COUNTRY IF IT IS IN UNIFORM AND APPLIED AS WRITTEN
Millionday: HUGE FOR IRAQ AND TO ME IS EVRY EXPLANATORY TO WHAT WE HAVE BEEN READING IN MOST ALL REPORTS FOR THE LAST FEW WEEKS
Millionday: WHOOPOW
Tiger: what a change of focus recently.
Millionday: I AGREE TIGER IT IS VERY INTERESTING HOW MUCH CHANGE HAS HAPPENED AND IN WHAT WE SEE AS A SHORT PERIOD
efriscone: Did the budget get posted today?
Millionday: I HAVE NOT SEEN INK ON IT BEING PRINTED —
misterq: Any important happenings coming up before the end of the year????
Millionday: IMO THE ANNOUNCEMENT THAT THE TERRORIST GROUP WILL BE REMOVED FROM MOST AREAS EASILY THAT WAS MADE WAS PRETTY BIG
BUT THE HCL IS EXPECTED WITHIN HOURS AND THE TRIP TO CHINA — I HAVE SOME THINGS TO SHOW YOU — I WILL PUT IT THAT WAY LOL
Millionday: IMO THERE COULD BE A VERY IMPORTANT HAPPENING BEFORE THE END OF THE YEAR
Millionday: BUT NEED INK ON EXACT DATE LOL
Millionday: THIS WEEK I AM GOING TO WORK ON A LIST OF THINGS THAT WE NEED TO THINK ABOUT –
NOT MAKING ANY PROMISES BUT IF ANYTHING HAPPENS IN YOUR ECONOMIC SITUATION IT IS NICE TO KNOW WHAT YOU SHOULD DO IN THAT CASE SO WHEN NEWS IS SLOW WE ARE GOING TO SPEND 0NE NIGHT GOING OVER A LIST OF SOME IDEAS I HAVE WORKED ON FOR MY CLOSEST FRIENDS
Millionday: HAVE A GREAT NIGHT AND I HOPE YOU ALL LIKED THE NEWSTIME AND THE EXPLANATION OF SOME VERY EXCITING CHANGES TAKING PLACE
KTFA CHAT UPDATE, 20 DEC
Happy Birthday Frank26!! Dinar Recaps team would also like to thank you for all your many years as a tireless, consistant Intel Provider. May all your dreams come true today
Cleitus: Uhuuum “…,unify the rial’s exchange rate with the dollar after the nuclear accord signed with the world powers is implemented….” Sounds like a 1:1 to me…., maybe. But.., when exactly will this happen? Got to go back to my notes. But, I recall somewhere around the middle of 2016…, perhaps!
Frank26: Hmmm…………… Fascinating ………… Indeed.Friend and Good Student of KTFA CC’s ………. Your NOTES should read as followed from 3 weeks ago:
IMO ………. The Iran currency is far better set to raise it’s rate by mid 2016 than the time it took for the IQD to do ……….. The same.
What do I ………….. Bring You ………… For 3 years now? The opportunity.
Wise is one to comprehend the list I bring.
Have said and have done things with You not on purpose But with a ……….. Purpose.
Aloha Dreams with God ………. In the Still of the Nights. �� \m/ KTFA Frank
Iran to unify exchange rate after nuke deal implemented, 20 DEC
Iran plans to unify the rial’s exchange rates with the dollar after the nuclear accord signed with world powers is implemented, according to the country’s central bank Governor Valiollah Seif.
“We have a very stable currency market, but to proceed toward a unified exchange rate requires accelerating the country’s access to foreign currency,” Seif said in an interview in Frankfurt last month. “It can happen once the nuclear deal is implemented, maximum six months after that.”
“We have a very stable currency market, but to proceed toward a unified exchange rate requires accelerating the country’s access to foreign currency,” Seif said in an interview in Frankfurt last month. “It can happen once the nuclear deal is implemented, maximum six months after that.”
The agreed lifting or suspension of sanctions on Iran is expected to begin in the first quarter of next year following verification that the Islamic Republic has met its commitments on dismantling its nuclear program. The unfreezing of assets worth at least $30bn and access to international finance and foreign direct investment may follow.
Under the terms of the deal, most of Iran’s banks will be reconnected to Swift, the global financial messaging system that facilitates bank transfers.
Iran has both an official exchange rate to the dollar and another rate that is used in unregulated markets.
The rial lost about 80% of its value in the year to late 2012 as a result of sanctions. Since President Hassan Rouhani took office in August 2013, the central bank has tightened credit and stabilized the currency.
The central bank’s role is to “smoothen fluctuations of exchange rates,” Seif said. But “if we allow the rate to be defined by the economic realities and decided by the market the bank’s only role will be to prevent shocks,” he said.
Iran’s economy will expand less than 3% this year, with growth rising to 5% in the Iranian year starting March 2016 boosted by oil sales, industrial output and tourism, he said. Inflation will fall to “single-digits” next year, from 13%, he said.
Rouhani has said Iran needs $150bn in investment to achieve the 8% economic expansion that can lower the country’s chronic youth unemployment. Iran has “€100bn worth of projects, which investors can review and choose from either by partnering, or financing them, or through direct investment,” Seif said. “Given the country’s geographic location, its mines reserves and the vast market around, Iran is in a position to create a good market for Europe’s developed industries so that in partnership, they can produce goods in Iran and sell in the region.”
LINK
BACKDOC UPDATE, 20 DEC
GOOD EVENING ALL! THE FOLLOWING IS IN NO WAY TO BE TAKEN AS FINANCIAL ADVICE ONLY AN OPINION OF DING DONG DOC! Hee Hee
TURN YOUR ZEROS INTO HEROS
WHAT COMES TO MY MIND TONIGHT IS PRIMARILY STUDIES BEYOND THIS REFORM. THERE WILL BE MANY OPPORTUNITIES VERY SOON. WHY?
WELL I TOLD YOU THIS WOULD BE A DECEMBER TO REMEMBER DID I NOT? RIGHT!
AND NOW WE BEGIN A NEW REALITY WHICH WAS BIRTHED ON NOVEMBER 30th AND WILL FIND ITS WAY TO FUNCTION ON THE NEW YEAR!
AS MANY COUNTRIES FIND THEIR WAY TO AN ASSET BACK STATUS LOANS WILL FIND THEIR WAY THROUGH THE IMF WORLD BANK AIIB AND THE BRICS BANKING SYSTEMS.
SOON MARKETS WILL BEGIN TO UNDERSTAND THAT THEY MUST BE VALUED IN THE NEW ASSET BACKED SYSTEM WHILE INTEREST RATES WILL FIND A NEW GLOBAL REALITY VALUE AS I HAVE TAUGHT YOU!
WHEN FINANCIAL INSTRUMENTS REALIZE ALL THIS THEY WILL BE REPRICED FAR LOWER SINCE ASSET BACKED CURRENCY HAS A GREATER VALUE!
JUST THE OPPOSITE OF THE QE THAT WE HAVE SEEN IN PAST MONTHS. THE CURRENCY WARS IN THIS MANNER ARE GOING TO FADE AWAY WITH THE OLD SYSTEM!
KEEP YOUR EYES ON THE U.S. CONGRESS TO COMPLETE THE VOTING ON THE TPP. ONCE THAT IS COMPLETE LOOK FOR TPP TRADE CONTRACTS TO TAKE OVER FOR THE PETRO DOLLAR.
ONLY A FEW KNOW FOR SURE BUT AS WE SEE OIL HEAD TOWARD A MUCH LOWER LEVEL WE COULD SEE THE DOLLAR DEPEG FROM OIL. IF SO THERE WILL BE SIGNIFICANT CONSEQUENCES AND MANY OPPORTUNITIES AS A RESULT.
I KNOW MANY DIDNT WANT TO BELIEVE ME ON OIL GOING LOWER BUT NOW THE MESSAGE IS CLEAR AND CONCISE.
WITHIN HRS TO A FEW DAYS WE WILL ALL HAVE NEW CHALLENGES TO FACE UPON COMPLETION OF THIS LONG AND LABORIOUS TRADE!
IT’S BEEN A PLEASURE TO SHARE MY THOUGHTS AND PRAYERS WITH YOU ALL AND LOOK FORWARD TO HELPING MANY IN THE NEAR FUTURE WITH ANTI-AGING LIFE CHANGING PRODUCTS WHICH I HOPE TO PATENT SOME IN THE VERY NEAR FUTURE.
IM NOT GOING ANYWHERE BUT I BELIEVE THIS PROJECT HAS ABOUT RUN ITS COURSE.
AS THE BIBLE TALKS ABOUT IN THE PARABLES WE ARE TO BE RESPONSIBLE WITH OUR MASTERS ASSETS THAT HE HAS ENTRUSTED US WITH. I PRAY YOU WILL DO YOUR BEST TO PUT YOUR BLESSINGS TO WORK IN A RESPONSIBLE MANNER.
MY ADVICE TO LEAVE YOU WITH TONIGHT IS TO NEVER EVER AGAIN HAVE DEBT SINCE IT IS A CURSE. ONLY SPEND PROFITS NOT PRINCIPLE.
THEREFORE VERY SIMPLY: TURN YOUR ZEROS INTO HEROS.
8@8, DOC IMO
MARTHA UPDATE, 20 DEC
I see that my time line seems to be holding for 21/22nd.
I have seen this pattern the entire year but hopefully this finally breaks the mold. I think on Monday to Tuesday the numbers are just going to show.
China initially wanted a slow roll out but every month there was some sort of “impediment ”
(I like this new word!), whether Iraq needed to fix something, or something wasn’t signed or there was an entity that blocked it.
(I like this new word!), whether Iraq needed to fix something, or something wasn’t signed or there was an entity that blocked it.
Elmer, Iko and the TNT gang have been working on researching and understanding this for months. We have watched the markets; watched the news and read the books. I would say we became “educated “as well so that we could attempt to keep everyone informed as this worldly event took shape.
What should have been a simple investment became part of a life altering event that effects everyone.
I, for one, can’t wait for this to be over but I also wanted to see this thru to the end. I am sure that everyone will agree to that.
We are still hearing that China is in the driver’s seat and they are calling the shots. and that no one is stopping this, and that there are no further road blocks.
I see it as a time issue. I see it this way, if the public is going with us then, I believe the forex has to show the change.
Iraq needs to officially show the rate change and we know there is no value yet on new denoms.
I say that we may see it east to west when markets open up.
This was the longest process to RV that there ever was but it did need to be done perfectly
In the end it has become a slingshot approach according to sources.
But we cannot forget how strong the “numbers” play into Chinese customs and even the IMF has referred to specific numbers especially the number 7.
We have followed calendars, the moons, the stars, the seasons and the astrology and now it’s time to release it and take a rest. IMO
The only other points of info is that 12-25-2015, which has multiple 7’s also has a 100% full moon and 1-1-2016 are crazy eights again.
I am retiring for the night and hopeful for tomorrow, the 20th of December.
saintandrewstwinflame 