The UN Secretary General has recently released another news article discussing the relationship between the Iraqi and Kuwaiti governments. The UN Secretary would like the Iraqi government to pay the 600 k in USD to help with the cost of locating the Kuwaiti property, the archives, the Iraq-Kuwait Boundary maintenance Project. The Iraqi government is not in a hurry to facilitate the Kuwaiti government in helping them with these issues. The biggest problem is the Port of Mubarak that is currently being built by the Kuwaiti government. Iraq remains in Chapter Seven Sanctions.
Ban urges Iraq to show “tangible” progress to obligations towards Kuwait
Anyone touring Baghdad would immediately notice many unfinished construction projects. With each story being the same. The construction companies involved in building these projects continue building up until the operating capital has depleted. They then stop paying the workers and flee the country. You can read about these types of scenario’s in the link below.
Iraq to fly home despairing Sri Lankan workers
New Iraqi Currency
In a recent meeting I attended I learned that the updated design of the new Iraqi currency has been completed. It has yet to be issued as the approval from Prime Minister Nuri Maliki has not been authorized. However, even after permission is given to release it further steps have to take place as it has to go through the Iraqi Parliament for a vote. As far as I can see, the schedule does not allow for a vote on the new Iraqi currency before the start of Ramadan. I have plans to send out a copy of the new notes to all my subscribers just as soon as they are released. I’m sure you’re all very anxious to take a look at them. As I’ve said in the past, the new notes will co-exist with the current Iraqi currency and the value will stay the same for now.
I’ve been getting a few emails mentioning a certain forum which I choose to call “The Call Fire-Team” (many will know who this is if you follow this forum). Well, this particular forum has mentioned that in order to re-denominate you have to have 1000 percent or more inflation. This folks is simply NOT true. FYI: Iran is going to be changing out their currency and dropping not three but four zeros from the currency and Iran’s inflation is 14%. Double that of Iraq according to the Central Bank which stands at 7%. Indicators point to Iraq’s inflation rising in the month of July due to higher prices of imported goods. Iraq imports everything and barely exports goods to any country with the exception of oil.
Iran Cabinet Approves Plan to Re-Denominate Currency
Current MYTHS circulating in regards to Iraq:
1. Iraq is out of Chapter Seven Sanctions. I am quite sure I have documented in my last two posts and pointed out that Iraq is still under the UN Chapter Seven Sanctions and will be at least until the end of the year and be evaluated again. I provided links from reputable sources.
2. The Hydrocarbon Law has been passed. Or better known in Iraq as the Oil & Gas Law. The truth of the matter is that this is still in the draft form and still being reviewed by the Oil and Gas committee of the Iraqi Government. The Iraqi government has suspended all Oil contract agreements that were ongoing at this time.
3. You can not wire more than 50K from Iraq. If that were the case, that you couldn’t wire anything over 50k usd out of Iraq then Iraq would shut down in a new york minute. Here are the facts according to the Central Bank of Iraq , anything under 50k usd is non-taxable and anything over is taxable. For example, the Iraqi Government employs Sri Lankans or workers from India. Hundreds of them. How would they be expected every month to pay these employees from all these various countries if you couldn’t wire money out of Iraq for more than the amount they needed. Many times they pay 500 salaries all at once. What I think some might be seeing is many wire transfers under 50k, that is to avoid the tax.
4. Erbil agreement is completed. Truth of the matter is, there is no Erbil agreement . In just two weeks you will see that was nothing more than stall tactics. PM Maliki will not share power with Dr. Alawi. Plus he did just say that it is unconstitutional.
5. All the Ministries have been seated. Not so. PM Maliki is going to hold on to the Ministry of Defense and the Ministry of Interior and will be eliminating the National Security position. He may even combine that one with another ministry like the Interior.
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