There has been some notable progress in Iraq this week. The single and only state run media, the Al-Iraqiya News channel, has been broadcasting highlights of the meetings of the Iraqi Government. In particular, the meetings of the Council of Ministries. In attendance and in charge is Prime Minister, Nuri Maliki and the rest of his inner council who listened to speeches and reports from various members of the Iraqi Government. Each member who attended the meeting gave his ministry or department a report that is then forwarded to the Ministry Council.
The meetings agenda was to report to PM Maliki what they were going to accomplish for the Iraqi people. One individual who was summoned by the Council of Ministry to give a detailed report was Dr. Sinan Al-Shabibi, the Governor of the Central Bank. There was no advance notification for the Governor of the Central bank to report to the Council of Ministry. Dr. Shabibi learned of his requested presence from a sealed envelope delivered by an Iraqi Army Officer of the Elite Peshmerga. Dr. Shabibi received the envelope and was surprised of its contents summoning him to the Council of Ministries. The letter did not give a reason as to why he was being summoned only that his presence was required at 3:15 PM. Naturally, Dr Shabibi grabbed several various reports on different topics and also included the Re-denomination Revaluation Report of 2011. After being searched by PM Maliki body guards (the Peshmerga Soldiers) he entered the side entrance of the Council chambers. As the meeting began he was asked specifically by PM Maliki what his Central Bank was doing for the Iraqi people in the coming months. His actual time inside the Ministry meeting was very brief as Dr. Shabibi read from a prepared document that his research and economist section had written just for meetings like these. He steered away from mentioning anything about the Re-denomination and Revaluation report that he carried inside his leather brief case. Dr. Shabibi did not mention any rates of the currency or any of the remaining year currency projections. He kept it brief and did not reveal anything to anyone on that topic. The Council of Ministry members did not ask about that topic either as the agenda of the meeting was to only find out what the intentions were in terms of progress for the Iraqi people. Actually, those type of questions were more for the ministries and not for the Governor of the Central Bank. My only guess is that the only reason he was even summoned to the meeting was in regards to control.
Starting next month both Iraq State Banks will be giving out 5 million dinar loans or approximately $4,200 loans to government employees who are fortunate enough to give their land as collateral. No one in Iraq gets a loan with out some sort of collateral such as property or possessions that are of value. Iraqi banks have still not entered into the 21st century and there are still no credit checks in this emerging market. No property no loan.
Close associates of mine have stated that Chapter Seven will continue on through till the end of the year. The end of the year is not conclusive however, it will be decided in December 2011 if Chapter Seven will continue into 2012.
The Development Fund for Iraq or better known as the DFI as I’ve mentioned in my last post will continue another year. All the funds the Central Bank has will remain in the New York Federal Reserve. Nothing changes but the executive signature. Control of the account remains with the Central Bank as it always since 2004.
Getting and reading emails containing lots of hype in regards to the Iraq dinar currency for the end of June, which would be nice if it were true. The Trade Bank incident has got everyone scared and with good reason. The Central Bank is no longer in control of the Trade Bank.