Urgent meetings to curb the deterioration of the value of Iraqi dinar

Urgent meetings to curb the deterioration of the value of Iraqi dinar

04/10/2012 | (Voice of Iraq)

BAGHDAD / Lao Tamimi, revealed the Finance Committee in the Iraqi parliament for a meeting between the Commission and the CBI and Director General of the State banks to curb the deterioration of the value of Iraqi dinar against foreign currency as well as the development of solutions urgent as what she described as "attack" on the Iraqi economy. was dinar Iraq has declined yesterday to record low against the U.S. dollar when the price of the Iraqi dinar exchange 1290 to the dollar. and expect bankers to see the next few days up at the exchange rate of the Iraqi dinar against the dollar because of the actions taken by the Central Bank.

said committee member Najiba Najib told (UR) The "a meeting held yesterday between the Finance Committee and the Central Bank and general manager of the government banks to discuss the repercussions of the financial crisis and the depreciation of the dinar exchange Iraqi and a study at the Central Bank on how to control the issue of exchange." explained Najib that "there is a strong demand for purchase of foreign currency traders and companies and this is due to that seen in the region, especially Syria and Iran financial sanctions. "

Najib added that "the Iraqi situation, the unstable political and economic situation of one-sided, which depends on oil and all problems can be overcome by the parameters set by the Central Bank of Iraq." It showed a member of the Finance Committee that "the controls may not prevent the smuggling of currency and there may be an attack or the intention of improperly towards the financial reserve of Iraq." and revealed the answer to "take the central bank controls is to define the amount of funds that are sold or transferred, but there circumvent the issue, Everyone has the transfer of more than 50 thousand dollars must be accompanied by a certificate from the Tax Department and management companies. "

and carries many of the owners of banking companies in Baghdad, the Iraqi Central Bank responsible for the low exchange rate of the Iraqi dinar. The pro-Ihsan Sahab company banking dignity district of Karrada in Baghdad's (Orr) that "the Central Bank of Iraq is responsible for the high exchange rate of the dollar against Iraqi dinar through the measures taken and that have limited or even got to stop the selling of the dollar." He explained that "the majority of companies banking can not buy hard currency from the Central Bank of Iraq because of the complicated procedures developed by the Central Bank and even the measures developed by the contributed to the complexity of the economic situation rather than finding solutions. "

and "We know that there was smuggling of hard currency to Iran, Syria, and the central bank seizure on those who are in the process, not everyone carries responsibility. " reflected the depreciation of the Iraqi dinar negatively on the market in general, as the markets expected to see a clear increase commodity prices. The director of sales markets of Baghdad commercial center of the capital Ahsan Jamil's (UR) that "the prices of goods on the rise daily and therefore, are the aspect ratio on the responsibility of the citizen." He explained that "get the dollar has become difficult and complicated in Iraq and thus increased its value against the Iraqi dinar and this is something negative the reality of the economy. "

and that "all goods increased during the past few days and we expect to see a rise over the coming days that did not find the government immediate solutions for the Mhmlh provide hard currency in the markets." and commensurate amount offered hard currency inversely with the local currency in the markets, the hard currency available was the Iraqi dinar exchange rate is high. The roots of the crisis the Central Bank of Iraq and control the cash flow of hard currency to the measures taken by the bank last month to curb the smuggling of hard currency to neighboring countries. and the international community imposed economic sanctions on Syria and Iran banned under which these two countries of Nafthma export to the West. Orr News

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and expect bankers to see the next few days up at the exchange rate of the Iraqi dinar against the dollar because of the actions taken by the Central Bank.

Sure hope so!!!!!!!

excellent news hounding find shredders tyv this could be it we hope *********** Urgent meetings to curb the deterioration of the value of Iraqi dinar 04/10/2012 | (Voice of Iraq) BAGHDAD / Lao Tamimi, revealed the Finance Committee in the Iraqi parliament for a meeting between the Commission and the CBI and Director General of the State banks to curb the deterioration of the value of Iraqi dinar against foreign currency as well as the development of solutions urgent as what she described as "attack" on the Iraqi economy. was dinar Iraq has declined yesterday to record low against the U.S. dollar when the price of the Iraqi dinar exchange 1290 to the dollar. and expect bankers to see the next few days up at the exchange rate of the Iraqi dinar against the dollar because of the actions taken by the Central Bank. tyvm shredddddddddd!!!!!!!!!!

I know what I am about to say will sound neg but it is not intended to be neg.
AS for the art about the exchange rate we shall see, & we have heard this before.

Sure sounds good...keeping the faith Thanks team.

Fast Eddie wrote:I know what I am about to say will sound neg but it is not intended to be neg.
AS for the art about the exchange rate we shall see, & we have heard this before.

..........ty neg nellie deb downer lol we can hope and pray its what it looks like it means thats all we can do jeese an do our research...how about a ty shred for the find would be great...ty shredders

Great news!! Thank you Bondlady, Shredd for the article and all the badges at this site!!

You the man Shredd!!You posted several articles the past 48 hours or so and BAM! Thanks for your hard work.

Thank you shredd for the article, definitely got my attention. I'm hopin and praying harder than ever, but tryin to stay grounded. Let's hope this is the spark we've been waiting on.

Thanks for the post., this makes me go hmmmm i only hope and pray.

Just got home and what an excellent article.. wow.. very exciting.. TY Shredd for a good find..

Bondlady wrote:

Fast Eddie wrote:I know what I am about to say will sound neg but it is not intended to be neg.
AS for the art about the exchange rate we shall see, & we have heard this before.

..........ty neg nellie deb downer lol we can hope and pray its what it looks like it means thats all we can do jeese an do our research...how about a ty shred for the find would be great...ty shredders

Yea I hope this time it means what it says, But I am not getting my hopes up & wanted everyone to know we have seen them say this before so they can make their own choose weather they start jumping or just sit back & let the roller coaster ride go on.
& I did say it was going to sound neg, But didn't mean for it too.

Fast Eddie wrote:

Bondlady wrote:

Fast Eddie wrote:I know what I am about to say will sound neg but it is not intended to be neg.
AS for the art about the exchange rate we shall see, & we have heard this before.

..........ty neg nellie deb downer lol we can hope and pray its what it looks like it means thats all we can do jeese an do our research...how about a ty shred for the find would be great...ty shredders

Yea I hope this time it means what it says, But I am not getting my hopes up & wanted everyone to know we have seen them say this before so they can make their own choose weather they start jumping or just sit back & let the roller coaster ride go on.
& I did say it was going to sound neg, But didn't mean for it too.

....most of us here dont flip out over anything we are a grounded site, but if u have been watching ALL the news then this is huge and could POSSIBLY be something big...all i know is something has to be done there exchange rate has dropped to almost what it was in 2006 thats why they are all freakin out over the cbi and demanding the goi intervene.....BL

Bondlady wrote:

Fast Eddie wrote:

Bondlady wrote:

Fast Eddie wrote:I know what I am about to say will sound neg but it is not intended to be neg.
AS for the art about the exchange rate we shall see, & we have heard this before.

..........ty neg nellie deb downer lol we can hope and pray its what it looks like it means thats all we can do jeese an do our research...how about a ty shred for the find would be great...ty shredders

Yea I hope this time it means what it says, But I am not getting my hopes up & wanted everyone to know we have seen them say this before so they can make their own choose weather they start jumping or just sit back & let the roller coaster ride go on.
& I did say it was going to sound neg, But didn't mean for it too.

....most of us here dont flip out over anything we are a grounded site, but if u have been watching ALL the news then this is huge and could POSSIBLY be something big...all i know is something has to be done there exchange rate has dropped to almost what it was in 2006 thats why they are all freakin out over the cbi and demanding the goi intervene.....BL

I get what you mean & I was not trying to be neg just pointing out we have heard them say this before with nothing happening is all.
We might only get something like we did back in Jan which was only a 4 dinar change & than might get something just a little bigger like 66 dinar change, But no one knows.
All I can say is that we know it will happen with out them saying anything it will just pop. So when I see these saying we need to do something now arts it makes me think, yea right quit saying & just do it.

Thank you , Shredd.
Great article Fingers and toes crossed,things will keep moving forward. Thanks to Bondlady and all the Mods,for all your hard work.

could still be a slight increase like before to curb inflation, but lets hope that's not the case!

thanks shredd

Great find !! Thank you shredd

Does this mean anything?

Everyone has the transfer of more than 50 thousand dollars must be accompanied by a certificate from the Tax Department and management companies. "

I know terriff taxes aren't in place now. Do they have any kind of tax going right now? Just curious.

Thanks

Bondlady wrote:

Fast Eddie wrote:I know what I am about to say will sound neg but it is not intended to be neg.
AS for the art about the exchange rate we shall see, & we have heard this before.

..........ty neg nellie deb downer lol we can hope and pray its what it looks like it means thats all we can do jeese an do our research...how about a ty shred for the find would be great...ty shredders

Thanks Shredd! Thanks Eddie and Bond Lady...I needed a godd belly laugh!

bump

Reflection wrote:Does this mean anything?

Everyone has the transfer of more than 50 thousand dollars must be accompanied by a certificate from the Tax Department and management companies. "

I know terriff taxes aren't in place now. Do they have any kind of tax going right now? Just curious.

Thanks

Do you mean like sales tax?

Yeah.... Do they have sales tax like we do?

Sorry for the n00b questions. Just seen that part of the article and wondered if the tax deal would make any difference.

Thanks.

Reflection wrote:Yeah.... Do they have sales tax like we do?

Sorry for the n00b questions. Just seen that part of the article and wondered if the tax deal would make any difference.

Thanks.

Under the old regime, Iraq taxed up to 60 percent of individual and corporate incomes under its Tax Law No. 113 of 1982, with exemptions for foreign-company development projects. In practice, however, many ordinary Iraqis did not pay any tax on their small incomes. After the U.S. invasion and the collapse of the old regime, Iraq became in effect tax-free. This brief period of tax freedom has come to an end.

On Sept. 15, 2003, the U.S. military administration of Iraq imposed an income tax of 15 percent on Iraq, starting in January 2004. While a flat 15-percent rate may seem low relative to taxation in the rest of the world, the tax adds an unnecessary hardship on the struggling economy of Iraq. Many of the countries along the Persian Gulf have no income taxes, so this tax, in addition to the danger of violence, creates a major comparative disadvantage for Iraq.

L. Paul Bremer, the administrator in Baghdad, stated in Coalition Provisional Authority Order Number 37, "Tax Strategy for 2003," that "The highest individual and corporate income tax rates for 2004 and subsequent years shall not exceed 15 percent." Bremer exempted the coalition authority, the armed forces, their contractors and humanitarian organizations from taxes.

Some U.S. conservatives are rejoicing. "It's extremely good news," said Grover Norquist, head of Americans for Tax Reform. "It might be a hint to the rest of us." Proponents of a flat-rate income tax have for many years been advocating changing the U.S. tax system from rates which rise with higher income to one flat rate for all or most income. They point to several countries, including Russia, which have implemented a flat tax.

A flat-rate income tax is indeed less of an economic burden than the current U.S. system, but any general income tax still imposes an excess burden on the economy, reducing production and investment. The burden is unnecessary because the use of land rent for public revenue has no excess burden. An opportunity to truly liberate Iraq's fiscal policy has been squandered. Oil revenues could finance the national government of Iraq, and the tapping of land value or land rent could finance local government, with no need to tax income or sales.

Supply-side economics is the policy of reducing taxes and regulations to stimulate a greater supply of production and investment. A complete supply-side policy is a marginal tax rate of zero, i.e. no tax on any income from productive activity. The tapping of land rent acts like a fixed annual cost, with no tax penalty on wages, profits, and investment returns. Those who call themselves "supply-siders," but who reject taxing land value in favor of instead taxing income, are either woefully ignorant or else they are, well, disingenuous.

This tax decree is opposed by most of the members of the U.S.-appointed Iraqi Governing Council. This tax will not endear the military occupation to workers and entrepreneurs in Iraq. The tax will have to be enforced, and a flat income tax can be evaded just a graduated one can. There will have to be files on all taxpayers, creating a massive bureaucracy. There will have to be intrusive tax audits, snooping, confiscation of assets, and imprisonment of Iraqi non-taxpayers and tax resisters. The tax will create even more enemies against the U.S., especially since the U.S. military occupiers and contractors are exempt!

Imagine a tenant farmer in Iraq who has to struggle with contaminated water, insects, and theft of his equipment. On the way to market he has to pass through U.S. checkpoints, where he is delayed, quizzed and groped for guns. After paying for rent and supplies, he manages to make a profit just enough to feed his family and buy seeds and gasoline, but now, down comes the U.S. tax collector to take way some of his gains. The tax is 15 percent of his income, but what is the profit? He has to prove how much his crop revenue is, and what his expenses are. Does he have receipts? Are they genuine? Is he selling crops for cash? What about food the family grows for itself? Is he sophisticated enough to include depreciation as an expense?

The Iraqi tax collector working for the military occupation has to guess at what the right income is and whether the farmer is telling the truth. Maybe if the farmer gives him a dinner and some cash and a chicken as gifts, the tax collector will be amenable to a lower tax estimate. Or maybe this farmer is unpopular, and tax evasion would be a good excuse to lock him up in prison.

Can you see the implications? Do we really want to sow more corruption and oppression? Just because a flat tax works OK in Estonia does not imply it will go smoothly in Iraq. This tax will be a nightmare and another excuse for U.S.-hating terrorists to do violence. This is just one more example of the incredibly inept and incomprehensively foolish U.S. policy in Iraq. [You must be registered and logged in to see this link.]

Wow. Somehow this one slipped by me. I never saw it till now.
I'm just 24 hours late....

Thank you Shredd for bringing this to all of us.

Bye the sea ;

Great post - thanks for your work!

The Iraqis are sure hard to listen to sometimes. But it is a money play and being too open would be as bad as waiting too long. IMO

I do respect them for trying to form a government having been so repressed for such a long time. I still have vivid memories of Sadam marching government officials out and having them shot because they disagreed with him. And I was very glad I didn't have to live there.

Go Iraq! and Go RV!