Update on Oil Law
A sunni cleric is giving this warning to whom ever votes on the Oil Law.
"Whoever does so will be exposed to God's wrath and will have committed the crime of collaboration with the enemy,"
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A sunni cleric is giving this warning to whom ever votes on the Oil Law.
"Whoever does so will be exposed to God's wrath and will have committed the crime of collaboration with the enemy,"
Iraq's parliament is likely to delay the start of its debate on a newly revised oil revenue-sharing law after both Kurds and Sunnis complained they have not reviewed it.
The Iraqi Cabinet approved the measure unanimously on Tuesday, and the government had said parliament would begin debate on the law Wednesday.
This is an old article and fortunately for all of you the url is still good. It is a Newsweek article quoting the Deputy Governor of Iraq's Central Bank stating it's illegal to export the dinar.
According to Ahmed Muhammad, a deputy governor of Iraq's central bank, roughly half the 4.5 trillion new dinars have been removed from domestic circulation, either stashed away at home or smuggled out for sale abroad. Iraqi officials say it's illegal to export the dinar, but it's quoted on exchanges as far afield as Pakistan.
On July 1st I had posted an articled called The Iraqi currency RV is it for Real?
At times after posting thought provoking and enlightening articles I do get occasional comments from people who are connected some how in this Iraq dinar, ISX arena. All comments are welcomed as I do not censor anyone's comments except for the removal of obscenities.
It is the reason I went to an approval based program. Your comments will not be posted immediately only after been approved.
A commenter by the name of Bob had a great comment and I thought I would post it here for all you Warka fans. Below is Bob's comments followed by my comments with help from I must admit from the legal team at the Baby Biltmore.
Bob's comments:
Interesting that the ISX and ISC have known for a year of Warkas proxy program- yet Warka is allowed to keep trading No articles mention their violations or penalties June Reed has been personally notified of Warkas proxy a month ago and Warka continues to trade
Seems to be hairsplitting that foreign company's ISX shares held in company name (by proxy) -not in individual name- is any different than the proxy company Warka uses With foreigners being allowed to hold shares in their name Aug 2, one would expect this issue to be resolved prior to that date or not?
American Contractor's response:
Bob - Where other companies are actively trading in the market Al-Warka is a bank first and as such reports to the Central Bank of Iraq (CBI) for regulatory control first. Al-Warka's brokerage company is a department of the bank therefore its losses in the market is the banks losses.
Those losses put Al-Warka banks balance sheet below the authorized base value set by the CBI. The proxy company is a corporation which is owned by Al-Warka bank, therefore when the value of the stock purchased by the proxy company dropped by half, that line item of Al-Warka banks budget had a negative impact on the banks liquidity.
Why do you think the CEO of Al-Warka Bank Saad Al-Bunnia, withheld the documents requested by the CBI for their yearly banks audit. That failure to comply caused the CBI to levy a fine against Al-Warka Bank of one million dinar a day for each day not in compliance. That adversarial situation existed for the better part of 16 months.
Please notice was it not a fact that Al-Warka bank did not post its much needed splits until late this year. Of course Al-Warka bank, failed to advise their clients that either of these issues existed. What most people seem to have difficulty grasping is that the Iraqi's are not the only people who have access to members of the CBI.
Please keep in mind I'm not here to bash Al-Warka Bank, I have better things to do with my time, however, I do owe my own countrymen and woman the benefit of the access I have to the relevant ministries, agencies and departments.
Most people might not be pleased with what I have to say but remember an informed investor is a successful investor.
Prime Minister Nouri al-Maliki's Cabinet has approved a draft of a key oil law, and the Iraqi parliament was expected to begin debate on the measure Wednesday, an official said.
Government spokesman Ali al-Dabbagh said the parliament would open debate on the law, which the U.S. is pressing Iraq to pass to boost reconciliation between the country's Sunnis and Shiites.
Still up in the air who will control Iraq's existing oil fields.
"We hope that very soon, definitely within coming months, one or two months from now,"
Iraq has increased official petrol prices by around 15 per cent, an Iraqi official said yesterday, delivering the second hike this year to keep promises made to the International Monetary Fund.
After reading the usual web sites that are of interest each morning I came across a posting by one of those heavy hitters on a dinar forum. I use the words “Heavy Hitter” lightly as it means copying and pasting news articles to keep people from leaving the dinar forum and coming back for more. Even if it means removing content from the American Contractor’s Blog and also calling it there own.
Apparently my commentary on July 1st is becoming a reality for some folks in this dinar world. A certain member on a dinar forum has fallen on hard times and unwilling to sell the dinar in their possession, now all of sudden a fund raising campaign is born.
It is amazing to me that members are contributing funds to help this particular member out which is remarkable and says a lot about the members of the forum. My hat goes off to you all that have contributed funds to help out this particular member.
I can’t help but think if you all could organize for a cause like this and raise over $1000.00 for someone most if not all of you have never met or personally know, just think what you all could have done concerning this investment.
Just think what could have happened if someone organized a very large group and collected funds to invest in Iraq the correct and legal way then having to associate with a bank that does not have your best interests in mind. Or worse buy Iraqi dinars and hope for that RV that is never going to happen.
It is simply amazing!!
As everyone is watching Iraq, another country has placed restrictions on foreign currencies. The Iraqi dinar has less restriction it can be converted to any currency meaning fully convertible however, with one caveat it can only be done inside Iraq.
Sudan has a problem with capital flight with the people creating other avenues to remove the foreign currency away from the visibility of the banking sector. The Central Bank of Sudan is cracking down. I am sure Dr. Shabibi of the CBI is taking note.
The Iraq 2007 Banking, Finance and Development Conference was just recently held in London and apparently State Owned enterprises are ramping up to be sold to private enterprises who wish to develop these business in Iraq.
The Iraqi Ministries came to London with a plan and will be appointing advisors to sell off different sectors and industry of the State Owned Business (SOE’s) interesting sectors such as Construction companies, hotels and airlines.
The hydrocarbon law might have had a break through and possibly be sent to Parliament for approval with in the next two weeks.
With the upcoming direct foreign investment we all are hoping and that Iraq so desperately needs along with the passing of the hydrocarbon law would jump start the economy and the reconstruction phase for Iraq.
Let’s all hope they get the memo written and the selling of the SOE’s completed before the September 15th report to the U.S. Congress by the General and allow Iraqi’s to stop leaving Iraq.
I can’t help to think about all the Iraqi dinar cash speculators that are out there in the world. There must be thousands of people speculating on Iraq’s currency all expecting a return of thousands percent on a revalue that may in fact never occur.
They have bought into something that is perpetuated by an aggressive army of Iraqi dinar dealers and dinar forum owners working together to manipulate and deceive unsuspecting persons who otherwise really don’t know any better.
People who live paycheck to paycheck and who at the moment of weakness fall prey to a savvy and populated dinar forum and directed to a street smart dinar dealer. A dinar dealer that knows the talk however, really doesn’t know the law.
After spending 30 days on a dinar forum you too after awhile eventually become an expert. Expert at things like buying stocks through an illegal proxy company owned by a private bank in Iraq. Expert at sending hard currency using American delivery companies back to Iraq. Expert at convincing others that this investment is a sure thing and bash anyone else that doesn’t have your same point of view. Even if the proof is right there in front of them.
You have to defend your position on this investment because you just enabled your mother, fathers, aunts and uncles and maybe your friends and associates on this investment. They all spent hundreds and thousands of dollars on Iraqi dinars and at times maybe in the back of your mind there is some doubt that maybe this is not going to go as according to plan. They bought the dinar because of you. Because you heard it on the news or you read it on a dinar forum that you could become a millionaire and profit very handsomely.
Just as soon as it rv’s!!
You searched on the Internet and found hundreds of dinar dealers selling the Iraqi dinar and your thinking to yourself surely this can’t be illegal because they wouldn’t be selling it. You read on the dinar dealers web sites that they’re registered with the U.S. Treasury office. And your thinking to yourself again this surely is got to be legal. The U.S. Treasury knows about this particular dinar dealer as you read the certificate on the web site and you not knowing that the U.S. Treasury office has no oversight or investigators to ensure currency dealers are abiding by the host countries banking and currency laws.
The U.S. Treasury office is leaving the enforcement up to the individual states as you seen in last week with the Attorney General of Illinois filing lawsuits against several dinar dealers. This is just the start of it and I am sure more suits will follow as state regulators and Attorney Generals educate themselves on the Iraqi dinar currency laws.
There are several reasons to believe the Iraqi dinar is not supposed to leave the countries borders of Iraq. In Feb 2007, a Wardens Message was sent from the American Embassy to all U.S. Citizens. The Wardens message advised all Americans to not remove Iraqi dinar currency from the country of Iraq.
A Wardens message is designed to warn Americans of potential security risks who are living and working inside Iraq. Not for warning Americans about currency speculation. The Government of Iraq realizes they have a problem with currency speculation and advised the American Embassy to issue a Wardens message to all Americans. In doing this Iraqi government officials expected to slow or stop the speculation on their currency.
The Baghdad International Airport (BIAP) has several large billboards that warn about the removal of Iraqi dinar currency from Iraq and doing so will result in being placed on the black list and possible banned from the country.
Another example is the CPA Laws and the Central bank laws that specifically state no Iraqi dinar currency will leave Iraq and then later amended to only Iraqi citizens can remove 200,000ID for business incidentals.
If all these measures and notices are in place in Iraq, what makes you think the dinar you currently bought from a dinar dealer is legal to have in your possession outside the borders of Iraq?
They haven’t done anything yet with the currency because they have other more important things to worry about. Such as, staying alive. The passage of certain bills that is due in front of the Iraqi Cabinet and the Parliament. Militias that are roaming and creating havoc against the Iraqi people. And many other matters the GoI and the Central bank of Iraq are dealing with at this moment.
Later this summer the Baghdad Stock Exchange is scheduled to open market trading for the first time to foreigners. Many are expecting an RV so that they can cash in their Iraqi dinar they have bought and held on to for a little over three years or less. An rv is not expected to happen even with foreigners trading in the Baghdad Stock Exchange for the remainder of the year.
Again is the RV for real?
Your comments welcomed.