Central Bank of Iraq
The Iraqi courts have already ruled that the Central Bank of Iraq is under the jurisdiction of the Iraq government specifically the Prime Minister’s Cabinet. Prime Minister Maliki is attempting to reshape the Central Bank of Iraq starting with upper management. The hard currency in Iraq which is the U.S. dollar is appreciating against the local currency as merchants are continuing to buy and sell in U.S. dollars.
Governor Shabibi is negotiating his departure from the Central Bank of Iraq along with other senior members of the CBI. We will see departures in the management of the CBI by the end of the year. It is rumored that they will be leaving the country.
The Iraqi dinar is being seriously undermined by Iran and Syria who are in need of U.S. Dollars to skirt the international sanctions. You will see a continued weaken Iraq dinar in the months ahead.
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Your article reference does not support the takeover of the Central Bank by the government (PM – Maliki). In fact it supports just the opposite!
It has been an on going process it started when the CBI governor Shabibi challenged the Iraq government through the Iraq court system and lost. The court ruled that the CBI falls under the government the Cabinet. If the CBI was truly independent it would have more power than the Prime Minister’s office and we all know that is not going happen. PM Maliki took control of the Trade Bank of Iraq last year and replaced the TBI management it will be the same for the CBI very shortly.
What’s your source for the claim that Shabibi and other CBI officials are on their way out?
I’ve seen the articles about Maliki wanting to replace him… but nothing beyond that.
You have to look at what PM Maliki has done in the past.
it would be nice to know where a c get his info because he is the only one making this claim,my guess is his source would have to be either shabibi himself or one of these senior members said to be leaving because something this big would be kept pretty quite until it happens and i find it hard to believe some guy from tennessee is going to be privy to this info
you need to read bondlady news your way off base.
I have been more on track than most…
You are so full of it.
AC says “You have to look at what PM Maliki has does in the past.”
Ok… so his intent is to replace Shabibi. We already knew that from the articles out the past week or so. But it’s quit a leap to go from that to
“Governor Shabibi is negotiating his departure from the Central Bank of Iraq along with other senior members of the CBI.”
aint no way thats gonna happen parliament just the other day told the goi to leave the cbi alone!!!
Hey “A.C.”, apparently these doubters haven’t looked in the right places. There have been articles published in Aswat al Iraq during the last week confirming exactly what you have stated
The answers are already published in plain sight. I am the only one that mentions the hard and difficult play by play of the inner workings of Iraq. Thank you for your comments very much appreciated. Please stop by again.
Thanks AC, you always seem to have the most current and accurate news. Thanks for keeping it ‘real’ and not being misleading, too many others doing that!! Keep it coming!!!
Thank you for your comment. I will continue to post commentary and do the best job I can.
Hey AC, who’s paying you to spread lies and discourage? Hope the $ is worth your soul and rep. Why don’t you read articles that tell what’s really going on.
Steve, you must have me confused with some one else.
You failed to mention all the profanity in your initial post.
I post everyone’s comments that are of different viewpoints and opinions. I even published the one by Steve Olsen saying “You are so full of it.” Steve has his opinion of my post and he stated it with out any profanity.
Huh, feel free to post on the blog just stay within the rules of decency and respect.
No. You just need to reread stuff and try to see when your being fed smoke just like in china years back.
Really guys?? If you don’t like the news he shares, don’t read it, or disregard it. Dealing with reality is so much easier than hanging on to false hope! Bottom line is this: this is a long-term speculative investment, not an overnight, get rich quick scheme.
Huh, I told you last year that Maliki will run a third term. Maliki will be in power in Iraq for a very very long time. Maliki has the backing of two very important countries to make sure he stays in power. USA and Iran.
ALSO HOW CAN IRAN AND SYRIA UNDERMINE A CURRENCY LIKE THE DINAR WHEN ITS WORTH LESS THEN A TENTH OF A PENNY HOW MUCH LOWER CAN IT GO ALSO USA WILLTAKE CARE OF IRANAND SYRIA WE DID LEAVE IRAQ AND ARE SITTING ON THE BOARD OF KUWAIT TO THE TUNE OF ABOUT 40 THOUSAND TROOPS NOW WHATS GOING TO HAPPEN NOTHING.
Haven’t you been paying attention to what is happening with the U.S. Dollars in Iraq…the criminals and entrepreneurs can’t get them fast enough. Those same dollars are in the CBI foreign reserves and they are depleting very fast and this is what has the CBI in panic mode. Look at the value of the currencies of Iraq’s neighbors they are falling like a rock. They too like U.S. Dollars. Get the picture.
Hey Ryan, being in this for almost 9 years isn’t considered a get rich quick scheme. Think before posting please. Everyone needs hope to cling to. Just sayin some of us have been in this game longer than you think. By no means do some think of it like you.
American Contractor is correct. The court ruling placed the CBI under the guidance of the council of ministers not parliament. Maliki does in fact have the authority to fire Shabibi if he desires. And there were articles this week that senior members of the CBI would resign if Shabibi left the CBI.
The sanctions placed on Iran and Syria are creating havoc for Iraq and that is what is affecting the auctions as Iraq tries to battle the departure of the dollar from their economy.
Just because the guy is not saying what you want to hear does not make him wrong. Just relax and see what happens. It is out of our control.
Highlander
does anybody really know because i saw several article today from parliamentry sources saying the com does not have the power to put the deletion of zeros on hold.
do you base your opinion on articles or sources because nobody and i mean nobody can say for 100% certainty what is going to happen
I read something to the same, Also I read this, W/Link at the bottom, from Alsumaria….
Sumerian News / Baghdad Council of Ministers decided, on Thursday, to wait in the application of the deletion of zeros from the national currency. The director of the Media Unit of the Secretariat of the Council of Minister Abdel Talaqani in an interview for “Alsumaria News”, “Affairs of the Secretariat and sent, today, issued a decision to wait in the application to delete the zeros from the national currency. ” The Iraqi Council of Ministers face, on Wednesday (April 11, 2012), to form a committee to study the fluctuation of the exchange rate of Iraqi dinar, as he emphasized that the Commission will provide appropriate solutions to prevent harm to the national economy. and was Chairman of the Board Iraqi parliament Osama Najafi said, in (April 10, 2012), that the Council will host bank governor Sinan Shabibi at a hearing to show the issue of the exchange rate of the dollar against the Iraqi dinar, as attributed Shabibi causes of rising to the weakness of domestic production and the weakness of the government’s actions. witnessing the Iraqi market is currently rising for the disbursement of the U.S. dollar against the Iraqi dinar, as sales rose the Iraqi Central Bank foreign currency, while the bank attributed the central reason as well as to finance trade in the neighboring countries by the Iraqi traders. and Deputy Governor of the Central Bank of the appearance of Mohammed Saleh in January 19, 2012, to raise Iraqi dinar against the dollar during its sessions for buying and selling foreign currencies at the rate of four dinars, pointing out that the price of the dinar nominal is not commensurate with the purchasing power to him or the real price of the exchange rate of the dinar against the dollar. The Central Bank of Iraq was in January 15 buying and selling of the dollar and the price of (1166) during the auction, which is evaluated daily and with the participation of 23 banks, after it was the buying and selling of the dollar price of 1170 dinars to the dollar…. Here’s the link,,,,
http://www.alsumaria.tv/news
B. Monetary and Exchange Rate Policy
14. The authorities remain committed to ensuring the independence of the CBI. A
ruling by Iraq’s Federal Supreme Court also noted that while the CBI is part of the country’s
executive apparatus, it is by law independent in its decisions and operations.
http://www.imf.org/external/pubs/ft/scr/2011/cr1175.pdf
Article 110:
The federal government shall have exclusive authorities in the following matters:
First: Formulating foreign policy and diplomatic representation; negotiating,
signing, and ratifying international treaties and agreements; negotiating, signing,
and ratifying debt policies and formulating foreign sovereign economic and trade
policy.
Second: Formulating and executing national security policy, including
establishing and managing armed forces to secure the protection and guarantee
the security of Iraq’s borders and to defend Iraq.
Third: Formulating fiscal and customs policy; issuing currency; regulating
commercial policy across regional and governorate boundaries in Iraq; drawing
up the national budget of the State; formulating monetary policy; and establishing
and administering a central bank.
http://www.uniraq.org/documents/iraqi_constitution.pdf
and if those links are not enough then you can look at who actually is responsible for publication in the gazette of all laws which is what makes them legal and take affect and you will find that it is the Minister of Justice from the council of ministers. If there is no publication of the law there is no law.
I will also try and dig out of my archives the wikileaks report out of our US Embassy in Iraq that stated in it that Shabibi isn’t oposed to lending money to Maliki and the GOI if they would rescind their right to fire him. That report was forwarded to Washington.
Monetary Policy falls under the council of ministers and so does the CBI per the Iraqi constitution. So yes if the council of ministers does not agree with the policy being presented to them they have the right to not approve it.
Ya know AC why r u in this investment? You’ve since got off the lop wagon now that the Cbi and goi have refuted that.. I laugh when last March 2011 u said that they would be releasing the LD’s however maintaining the 1170 rate.. Well that tells me that logic and simple math are not your strong suits… It’s very easy to tell us constantly was is not going to happen in this investment.. We all could do that… Guess what AC, it’s not going to rv tomorrow… Wow I’m right.. I must be an expert like you…. Pathetic.. Oh, considering you like to pooh pooh this investment and considering the news coming out of Iraq about our investment today, your predictable negative commentary is par for the course for you today…. You’re truly a class act… Oh and your craigslist link out of DC, wow considering you’ve got sow of the most intelligent INTERNATIONAL minds working on the new LD’s, you honestly think your readers will believe Iraq would advertise on Craigslist for crying out loud…!!! You’re gonna have to start looking at what your shoveling to your readers!!!… Give me a break—too funny.. Thx for the laughs……..
One thing is for sure. It is better to see what happens, than to get too overly excited, pumped, hyped or jacked up about news or commentary.
I can’t say I agree on every point with AC…. but then again, I no longer agree with some things I have said over the past 8 years, as well. So what?
IMO…. has anyone here considered the possibility, that the Central Bankers are not the ones here, who would likely allow us all to profit from the dinar?
Has anyone considered, that it is in fact, the Central Bankers, proposing the Lop….. err….. Re-denomination (Same difference)?
Has it occurred to anyone else, that if it is CBI, proposing a Re-denomination….. that maybe the Counsel could be saving all of our respective axses, from a total revenue neutral event?
I am not saying that is the case…. but don’t ya’ll think it is something to at least consider before ripping on each other?
Maybe this could turn out to be a good thing. Does anyone else here, believe in the concept, of ‘A Blessing In Disguise’?
Confucius say: “Loads of cherries and peaches green, feed only pigs and goats. Wait till ripe, then eat sweet fruit in season; good harvest next year.”
Just sayin’.
If Shabs is forced out, won’t this drag out the RV and be bad for our investment? Also, you have not mentioned Maliki and all of the articles pointing to his demise. Do you believe Maliki will be able to remain in power long enough to accomplish this?
PM Maliki will remain in power for years to come.
a c
i think anyone could predict he would go for a 3rd term thats just like predicting obama is going to run for a second term. i for one would like to see some i for one have asked in the past just provide us with proof of what you say either with articles or let us know you have some people on the inside giving you this info.
Not everyone is predicting a third term. Most have PM Maliki out shortly following a no confidence vote in Parliament soon. This action is highly unlikely. PM Maliki politics is very strong and after Allawi and his political party boycotted PM Maliki in Dec and Jan and Allawi came back to the Iraq government PM Maliki became even stronger. Don’t count Maliki out he is in it for the long haul.
Personally, I kinda like the idea, that the Ministry can in fact stop the CBI dead in it’s tracks on a re-denomination. It is not good for the economy… it does absolutely nothing as to increasing wealth to the country, and it certainly will not create a profit for IQD holders, if a new ISO is issued and an exchange is made at 1 new 25 Dinar note at $.86, for 1 old 25k note, at $.00086 x 1000.
$21.50 worth, 25,000 Dinar today, would still be $21.50, if one 25K note is exchanged for one 25 note.
The only way that works, to increase revenue, is to increase the exchange rate,from $.86, which would be marginal, at best, or to offer a revenue positive exchange ration of old dinar to new dinar, of better than the 1000 to 1 ratio, such as was partially the case in 1948 Germany, with it’s re-denomination, that reduced 1 zero.
What many of us seem to be missing, is that there would be 2 separate ISO codes, in the event of a re-denomination…. unlike the Coalition Authority and Central Bank exchange of the Saddam, valued at about 3000, 1 to 1 with the New IQD, which immediately increased to about 1490, then later to 1170. In 2003 and 2004, there was never a separate ISO code issued, because the Saddam Dinar was the lawful national currency and there was no re-denomination, nor devaluation. In fact it was a revaluation, after the exchange process was completed, about Jan. 15, 2004.
http://en.wikipedia.org/wiki/Iraqi_Swiss_dinar
http://web.archive.org/web/20071027054638/http://www.cpa-iraq.org/budget/IraqCurrencyExchange.html
As far as I can tell…. the 3166-1 alfa-2 code, was never changed in 2003.
http://en.wikipedia.org/wiki/ISO_4217
The point here is simple. It is in our favor, that the Counsel stops the RD plan. It could be very limited, what we might be allowed to actually cash in for, in the event of a re-denomination.
If we want an RV….. then we do not want an RD.
This is simple with some deductive logic and reasoning and forget all the inductive reasoning, only looking at what we want to see, rather than gather all the facts and being open and honest to evaluate everything, regardless of whether we happen to like it or not.
Only then will we ever get close to a true and honest evaluation of our investment.
Regards,
Enoch8
Thanks for your post….your right it is not all bad.