March 2012Monthly Archives
Iraq currently is still a cash based society. The Iraqi’s have very little trust or faith in the banking system. The article states that, 80 percent of the Iraqi’s do not have bank accounts.
If the Iraqi government plans to create jobs and increase projects for the reconstruction development a sound and strong banking system is needed.
There is always speculation that a big western bank will be coming to Iraq to assist in the reconstruction projects. This still remains to be talk and speculation.
The article mentions how the Prime Minister, Nuri al-Maliki is controlling the banking system. An example of this is what occurred with the Trade Bank of Iraq last year.
Meanwhile, the Iranian oil that was bound for India has now been canceled. Iran is unable to sell any oil to India because of the sanctions.
The Central Bank of Iraq (CBI) governor, Dr. Sinan al-Shabibi has conducted an interview. Dr. al-Shabibi stated in his interview that project to delete the three zero’s (which is all code for the new Iraq currency) will be introduced to absorb inflation and focus on reducing the money supply.
I would like to mention an important fact that has never been mentioned. The fact is that when you delete the three zero’s (introduce new currency) you will be increasing the money supply not reducing it. The CBI is desperate attempting to keep a lid on this fact. The CBI will eventually reduce the money supply after all denominations are introduced in the future. This timeline has not been revealed by the CBI or the government of Iraq. Dr. al-Shabibi stated that a total of six or seven new denominations of the Iraq currency would be available. Dr. al-Shabibi reconfirmed earlier statements that the Iraq government still needs to get approval for the project of the new Iraq currency through legislation. There has been no impact on the Iraq economy from the series of media reports of the counterfeit Iraq currency. Time will tell what effects the counterfeit currency will have especially with the current sanctions on Iran. Iran may find themselves possibly cut off from the SWIFT banking transactions.
The Iraqiya coalition political party is looking forward to PM Nuri al-Maliki‘s visit to Kuwait on 14 March. The Iraqiya coalition hopes that Iraq can exit the sanctions of Chapter VII. This action in itself would be best for Iraq however, I would think that the Kuwait’s would want more guarantees on several fronts. One would be the horizontal drilling into Iraq.
An American teacher, Jeremiah Small was shot dead by one of his Iraqi students. The shooter attempted to kill himself after the incident.
It is my hopes that the US State Department have already notified the family before making the teacher’s name public in this news report.