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The Prime Minister of Iraq recently returned from Iran. You have to ask what will the next several months be for the Iraqi people.

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What are your comments about the Central Bank of Iraq losing 10 billion dollars!!

Iraq Dinar Currency

There are several articles published recently that are mentioning the Central Bank of Iraq (CBI). Who by the way, are scrambling to control the outflow of U.S. Dollars in the market.  The CBI has put in place the restrictions for the banks and the money exchange centers however, this has not solved any of the problems. Unfortunately, criminal gangs and other entrepreneurs are continuing to gain more U.S. dollars to send to both countries of Iran and Syria.  Both countries are under sanctions and their currencies are depreciating rapidly.  The U.S. dollars are also in the streets of Iraq as the confidence in the Iraq dinar is not as high as it has been in previous years.

In January 2012 the CBI announced that everything was fine with the Iraq dinar and now in April, you have the dinar depreciating against the dollar.  The Governor, Shabibi will have a lot of explaining to do when he meets with the Council of Ministries.

When the Iraqi government gives the go ahead or authorization to the print the new currency the two (old & new) will co-exist with the current 2003 Iraq Dinars. Note that this will increase the money supply.  I have previously mentioned this (see posting from 1 March) and now it has been confirmed by the Iraq news media.  Also, contrary to what some may be thinking, the new currency will carry the same exchange rate.

The project to print the new Iraq currency has been placed on hold. Prime Minister Malki has signed resolution stating the project will be suspended if not canceled.  The Iraq government is very concerned about the elements inside Iraq who are undermining the economy of Iraq.  The department of Cabinet Affairs in the General Secretariat of the Council passed a resolution to stop all procedures on the changing of the new currency until further notice.

Here is something to think about, if the CBI had all the authority why did the Cabinet Affairs have to pass a resolution to stop the process?

On another note, all of the council ministers are in support of Nuri al-Maliki, the current Prime Minister of Iraq.  These Minister’s are loyal to Maliki and will continue to support him.

Prime Minister Nuri al-Maliki has the unwavering support of Iran and the USA as the leader of Iraq and will seek a third term in 2014.

Iraq Dinar Currency

A very interesting article about the continuing counterfeit of the Iraqi dinar in Iraq.  The counterfeit currency has now reached the Kurdistan Region.  The article mentions a few cases of the US dollar being counterfeited.

Yesterday, the Iraq Central Bank published a press release in regards to the counterfeiting.

The Prime Minister Nuri Maliki said on Saturday, 24 December that if the Sunni’s created an autonomous region it would lead to “rivers of blood.”

“Despite the killings recently the political crisis the country is still unified according to PM Maliki.” — From Article.

***They make so much money each quarter not worried about a fifty-million dollar payment from the Iraqi Government….this is Iraq we work for free. 

Vice-President Tareq al-Hashemi said he hasn’t committed any sins now claims he’s  Patriotic…

Accused of running a hit squad in Iraq says the Iraq Higher Judicial Council on Christmas Day.  I think if they wait any longer to make the arrest it will be too late he will be having dinner in Turkey.

The US Government does not have the influence it once did when you have 170k troops in Iraq.  Now it is a policy. 

“There is a strong sense that we need to let events in Iraq play out,” a senior administration official said. “There is not a great deal of appetite for re-engagement. We are not going to reinvade Iraq.”  –From Article.

 

This article by Roy Gutman a McClatchy Newspaper news reporter did a great job in writing this piece about the shambles of the Iraqi banking system. Something I have been saying for the last 5 years.  Good Job Roy. You must all read this article slowly and read it again.

Highlights of the article:

• No electronic funds transfers for Payroll or bills
• No checking accounts
• No Credit cards
• ATMs few working
• Banks are only a safe deposit box for your money

Quotes:

“Iraq is a completely destroyed country. Nothing is working. All the sectors are obsolete, and we have to start from minus, not zero.”  – Iraq Government Spokesperson Ali al-Dabbagh

“The government cannot employ everyone. The private Sector has to play its role.” – Iraq Government Spokesperson Ali al-Dabbagh

They must have took lessons from the KRG. – AC

Reuters is reporting Prime Minister has banned his own Vice-President Tareq al-Hashemi from leaving the country.  The reporting so far is stating the recent arrests of the body guards are linking the Vice-President to terrorism.  We are going to have to wait and see as this plays out.  Everyone in Iraq is very concerned about the situation.  Vice-President Tareq al-Hashemi remains in al-Suleimaniya visiting with the Iraq President.  Look for the Vice-President to give his resignation to the Prime Minister Maliki.