Pimpy [Response to Guru Jeff's budget/ exchange rate posts 3-19-2024 below]
They are going to amend the budget with or without a rate change....Does it make sense for you to release the budget before they increase the exchange rate because then you have to turn around and redo the budget and make all the changes to the budget using the new exchange rate.
So no, it doesn't make sense to release the budget before you change the exchange rate. You would change the exchange rate then go through and amend all of your budget because the money you've allocated obviously has changed...
The suspension of the funds has to do with corruption. The reforms can be activated without changing the rate. They're going to reallocate revenue from oil to help fund all these reforms...
The Iraqi Fund for Foreign Development at the Ministry of Finance announced, on Wednesday, that the Republic of Iraq joined the membership of the European Bank for Reconstruction and Development (EBRD) after the approval of the accession law by the House of Representatives.
Finance said in a statement, received by Mawazine News, that this comes within the ministry’s vision to strengthen cooperation and communication frameworks between Iraq and international financial institutions, and after the continuous coordination of the Fund with the management of the European Bank and the completion of the Iraq contribution process and the completion of all documents related to accession.
The Fund stressed, according to the Finance Statement, that accession will enable the European Bank to finance projects within the country, promote development for different sectors, support the entrepreneurship initiative and support the private sector through investments, participate in policy dialogue and technical assistance. The European Bank for Reconstruction and Development (EBRD) is a London-based multilateral development bank, focusing on investment as a tool to rebuild market economies in beneficiary countries, with a focus on supporting the private sector and its investments in advisory and political activities, the statement noted. According to the Iraqi Finance, this bank is helping countries develop their policies to promote energy self-sufficiency or renewable energy markets.
Iraq technically does not need to amend the budget if they're not changing their rate. The budget already covers their operating expenses. But they would need surplus funds to cover the reforms. The reforms are contingent upon the rate changing.
They can't bring these reform package forward if the rate does not change. The only reason they're amending the budget is because the rate is changing...The step of amending the budget can happen either before or after the rate changes ...
They will probably announce Thursday or Friday as to when they plan to amend the budget, which they'll probably do around this weekend...
One of the major things Iraq has to do before they can revalue the currency is they have to pause all of their money. They have to suspend it. Freeze it. As of Friday both the central bank and the government of Iraq paused and froze all their monies. What does that mean to us?...By them suspending all of their monies between the central bank and the government that makes this [past] weekend...the first eligible weekend for Iraq to be able to revalue the currency...
Bank appointment for Currency EXCHANGE Instructions/Checklist
Bank Name_________________________________________
Bank 800#__________________________________________
“I am calling to schedule a foreign currency exchange”
My name is___________________________________________
My zipcode is__________________
My e-mail address is (If they ask for it)________________________________
For your own information or at your exchange appointment : No one is supposed to ask how much currency you have until you are at the exchange appointment.
I have________________________ IQN (Iraqi) currency
I have________________________VNN (Vietnamese) currency
I have________________________ IDN (Indonesian) currency
I have_________100Trillion,________50Trillion,_______20Trillionand_______10Trillion
2008AA notes of ZWN (Zimbabwe) currency
FILL IN THE BLANKS for EXCHANGE appointment information that you get from the call
center representative:
Your appointment Information:
Date_________________________
TIME_________________________
The Location____________________
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The Day of Your Appointment- Things To Do
1. Make sure you know where you are going. Arrive early so you can “get yourself together, take a deep breath”.
Do not loiter. If you are too early, stay SECURELY in the general area but not in the bank parking lot!
2. Remember to get in and get the EXCHANGE done, there a lot of other people behind you in line so be thoughtful of their time as well.
You will have time for questions at your second appointment with your new Private Banker/Wealth Manager.
3. Be discrete, be professional, and be alert and aware of your surroundings. BREATHE! Seriously consider hiring security to accompany you to your appointment or bring a trusted friend.
4. Collect business cards from everyone or take their name and phone numbers as well as the location of their regular branch office.
5. Read and Sign the NDA. If it is simple and states you cannot tell anyone except your spouse, lawyer, or CPA (These are the people that need to know how you came about your money for tax purposes) how you came about all of your new found wealth, sign it and move forward with your exchange.
Be prepared to uphold it!
If you break the terms, you could lose your newfound wealth.
If the NDA is more complex and you are not comfortable with it, simply let them know you would like to explore your options with another banking institution. They may or may not waive the NDA.
REMEMBER TO GET A COPY OF THE NDA IF YOU SIGNED IT.
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The Day of Your Appointment Things NOT To Do
Do not demand anything while at the bank or act like a lunatic, you will be escorted out.
Remember the Golden Rule “Treat others the way you wish to be Treated”!!!
Items to Bring to the EXCHANGE Appointment
(Check off the list as you put all items needed together to make sure you remember everything)
“Driver’s License
“Second form of ID (accredit card or passport)
“Your most recent utility bill (Water, power, etc.) to confirm residency in case you have never held an account with the bank you will be exchanging with or for another form of ID
“Power of Attorney Paperwork (If you are exchanging for someone else)
“A pad, pen to take notes, calculator
“Receipts for all currency purchased or gifting letter if they were a gift in case they are needed (Do not offer them, only do so if they are requested)
“IQD / VNN / IDN / ZWN currency
“Have your TOD designees (Transferable on Death) full legal names, phone numbers, addresses and Social Security Numbers written down that you want listed on your accounts.
You can have multiple TOD designations per account (Wife/Husband, Children, Grandchildren, Nieces/Nephews, etc.)
“Have a list of Cashier’s Checks you will need, if any, along with the exact amounts and who they need to be Payable to
“Decide in advance if you will be requesting cash for “Pocket Money” beforehand and how much……if allowed
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New Account Numbers for each Currency EXCHANGED (If You decide to have separate accounts) For your own records. At one time it was suggested to use separate accounts for each currency in case of different tax liabilities……That may no longer be the case
Name of Bank Exchanger____________________________________________
IQD Savings Account Number (Deposit 50% of your Exchange for Taxes just in case and do not touch until Tax Time)_________________________________________
Add TOD (Transferable on Death) Names to Accounts (Checking and Savings)
“Make sure you receive copies of the deposit slips and all account information
“Get Clean and Clear Certificates – at least 10 or more (Documentation that your money is not tied to anything illegal)
“Get starter checks if needed until your checks arrive
“Get ATM card if you want one
“Set up Online Banking if wanted
“Inquire about Extra Insurance for your funds __________
(Use the same format for VND, Rupiah, Zim and Rial or other currencies if they are also exchangeable at this time)
DID YOU GET A COPY OF YOUR SIGNED NDA?
Set second appointment with a Private Banker or Wealth Manager (The bank will guide as to who you need to speak with based on your EXCHANGE/deposit amount
This appointment will be the one in which you discuss all of your options for investment and
your “perks”. Also Trusts and all other questions you may have.
Oil is anywhere from $88 to $85 right now. Add in the tax revenues and customs duties and fees at the borders, the tourism you got to see the exchange rate of the Iraqi dinar is not going to be at $0.76. They're going to have to add that real effective exchange rate to it and that's probably...exactly why they haven't exposed it just yet. It's a sensitive issue. They need to keep it close to the chest...
They can't go out and tell everyone on the street, 'Hey you know next week your exchange rate is going to be X.' It doesn't work that way...Eventually they will expose it...
If Al-Sudani says, the dinar hold on to it, it's going too be stronger than the dollar...$0.76 is not stronger than the dollar. Add the real effective exchange rate and you can easily get over a dollar...