This article makes it seem that Iraq must be removed from ALL CH7 sanctions to RV and conduct international banking

NO, THIS HAS NOTHING TO DO WITH OKIE, JUST AN IRAQI TRANSLATION

Adoption of the loans to pay bills Okiem technology faces the determinants of international
September 24th, 2011 04:47 pm

Director General of Industrial Bank’s (morning):

Asks a number of local industrialists about the possibility of a cooperation mechanism with the concerned governmental authorities for the establishment of industrial projects, large, especially after it showed government bodies a great desire direction towards activating the industrial enterprises of different specialties, as is the guidance provided significant support to the local economy, by relying on the product which preserves the local funds within the country, adding that he is one of the most prominent solutions to economic problems experienced by large domestic economy.


Director General of Industrial Bank Mohamed Abdel Wahab said in an interview (morning): that the bank is able to provide better services to the Iraqi industrial, and has a great ambition to adopt the methods of work developed, pointing out that the bank has a cadre of specialized systems and modern electronic can facilitate a lot of banking transactions of interest to industry.


“We can deal with global banks, and adopt a mechanism to pay bills laboratories and production lines imported from origins world,” but that the problem here is selections seventh item that limit banks’ government internationally, where the confiscated funds that are traded internationally, especially as the local banks have the possibility of opening credits and deal with global banks.


He pointed out that the country’s emergence from Chapter VII facilitates many of the procedures, as well as reduce the costs to all manufacturers, rather than the use of intermediaries and the accompanying disorder in some cases, as that dealing with global banks directly will be more credible, pointing to the possibility of the adoption of all international regulations General banking in our banks.

Indicating that the idea of lending to industrial sums of money large is important, especially as the idea of paying import bills of factories of Finance through the Industrial Bank is important, so as to ensure the passage of money to its rightful place, which lent to him, but must be preceded by a bypass determinants of international influence much on the fact the local economy.

He emphasized that the steps to activate the industrial reality with a significant positive impact on the local economy, because it would keep money within the country.


He continued by saying that the bank is working to build bridges of cooperation with the Federation of Iraqi Industries and Alathadt interested in this matter, for the purpose of examining the reality of the effects and stand at the lending mechanisms and stand at the lending mechanisms and facilitate the process, by raising some of the steps is important and that do not do any good, in order to obtain loan that does the industrial project, stressing that the projects are monitored continuously and to achieve economic feasibility of the establishment.


He concluded by saying that the process of repayment of loans going the required level and this helps to a great extent in the lending largest number of projects during the capital, and we are facing significant development in the industrial sector will show its results in the coming period.

No, I don't think the highlighted statement is regarding the RV. I believe he is addressing the difficulties of business development due to the fact that the dinar is not internationally recognized. Additionally because they are still under Chapter VII it is costing more to do business because there are middle men involved that will go away once Chapter VII goes away. At least that is my take on the statements.

I know there is a train of thought that believes the RV is dependent on the dinar going international. I have never bought into that theory. Iraq can change the value of the dinar at anytime. If you look at the exchange rate history on the CBI website, in 2004 it started trading at 1680 with a very erratic but slow decrease until it stopped at 1170 on Jan 18, 2009. So for five years there was a change in the rates. It may have been only a pip or two at a time but the rate was being changed. To me that negates all the discussion that the dinar has to go international before the rate can be changed. I believe that there are other factors that have influenced the delay in the RV but the requirement to have international currency is not one of them.

Consider this: there are 260 business days in a year. Lets take off 30 days for holidays etc and use 230 as the number of days per year for bank business. If the rate had dropped just one pip per banking day or 230 pips per year, in 7.3 years the rate would have been 1 dinar to 1 dollar in Mar/2011.

windreader1 wrote:No, I don't think the highlighted statement is regarding the RV. I believe he is addressing the difficulties of business development due to the fact that the dinar is not internationally recognized. Additionally because they are still under Chapter VII it is costing more to do business because there are middle men involved that will go away once Chapter VII goes away. At least that is my take on the statements.

I know there is a train of thought that believes the RV is dependent on the dinar going international. I have never bought into that theory. Iraq can change the value of the dinar at anytime. If you look at the exchange rate history on the CBI website, in 2004 it started trading at 1680 with a very erratic but slow decrease until it stopped at 1170 on Jan 18, 2009. So for five years there was a change in the rates. It may have been only a pip or two at a time but the rate was being changed. To me that negates all the discussion that the dinar has to go international before the rate can be changed. I believe that there are other factors that have influenced the delay in the RV but the requirement to have international currency is not one of them.

Consider this: there are 260 business days in a year. Lets take off 30 days for holidays etc and use 230 as the number of days per year for bank business. If the rate had dropped just one pip per banking day or 230 pips per year, in 7.3 years the rate would have been 1 dinar to 1 dollar in Mar/2011.

Ya know Wind, that has been my exact line of thinking, but this article seemed to contradict that thought. I realize the Dinar has moved over the years, so I didn't think CH7 would really be pertinent to the Dinar changing in value, but this article made it seem as CH7 was holding them back...thx for the thought-