It's BoB ...:)
May 30, 2011
Bank of Baghdad forms strategic partnership with Citibank Iraq:
Bank of Baghdad (BoB) announced that it has signed a strategic partnership with Citibank (Citi) to manage the bank's global client cash management requirements in Iraq. The new partnership allows Citi's global clients' with business interest in Iraq to directly leverage from Bank of Baghdad's world class cash management platform and extensive branch network.
BoB will offer Citi's clients a number of comprehensive products and service portfolios that include account services, domestic and international payments and collection, liquidity management and electronic banking solutions. The partnership in turn allows BoB in leveraging Citi's global network across 100 countries for cash management solutions and other banking services.
This Strategic alliance marks another major milestone in Burgan Bank Group's expansion plans. The partnership comes at a very important time for the Burgan Bank Group, as we are committed to offering our clients world class services.
Burgan Bank Chief Executive Officer Eduardo Eguren said, "This winning partnership will bring together our regional expertise and Citi's global experience under one platform. The strategic alliance will indeed add value to both Bank of Baghdad and Citi clients' as well as to Burgan Bank group clients."
"Bank of Baghdad is a fast growing member of Burgan Bank group and has successfully placed itself as one of the major players in Iraq," Added Mr. Eguren
Bank of Baghdad was the first licensed bank in Iraq established in 1992. The bank offers retail and corporate banking services through a 36 branch and over 30 ATMs network. Bank of Baghdad is listed on the Iraqi Stock Exchange. Burgan Bank Group includes key subsidiaries that are Jordan Kuwait Bank, Gulf Bank Algeria, Bank of Baghdad and Tunis International Bank.
source
Tuesday, May 31, 2011
Monday, May 30, 2011
Gold and silver legal tender in Utah
May 30, 2012
Gold and silver coins are now legal tender in Utah—and worth their weight in gold. This signal is as much financial as political.
The Legal Tender Act of 2011 allows any merchant to accept gold or silver coin as payment of any debt. That change by itself wouldn’t mean much. Any United States coin is already legal tender—at its face value. But the new Utah law allows a merchant to credit the one offering the coin for the market value of the metal, not the face value.
This will stop people from melting down coins to sell the metal for more than their face value. But this new law threatens to blow down the world financial system like a house of cards.
What is legal tender?
Legal tender is anything that anyone owing money to another, can offer and know that the other person must accept it. Most civilizations throughout history have accepted gold and silver as legal tender. Even coins from different civilizations were acceptable. Currency exchange was as simple as weighing different coins of the same metal. The only arbitrary rate was the gold-to-silver ratio. Typically this was twenty to one. Thus the first United States silver dollars weighed one ounce. A gold ounce was worth exactly twenty dollars.
The Sixth Amendment to the Constitution recalls this original value of gold. It provided for jury trials in any civil cases in which twenty dollars or more was at stake.
Why has gold and silver increased in value?
That’s the wrong question. Gold is the standard of value. But none of the major currencies have any fixed rate of gold exchange. In 1971, the United States stopped exchanging gold for dollars. The United States went into technical default on that day. The only thing that has stopped the dollar from becoming worthless is the petrodollar system.
Until recently, the Federal Reserve System, the central bank of the United States, behaved with enough restraint to stop inflation. Today the Fed is buying Treasury paper—monetizing the debt. It shows no sign that it will stop doing that, and every sign that it will keep doing that.
What can the States do about it?
They’re doing it now. Utah was first State to let people buy things with gold or silver. It won’t be the last. Five other States have considered similar laws. They haven’t passed them yet, but they will.
What will this do to the dollar, and to gold and silver prices?
It will push gold and silver prices higher almost at once. Now, in at least one State, gold and silver are media of exchange, as well as stores of value. When people realize that, they’ll start buying these coins as fast as they can get them. And they will want physical gold and silver, and to have it in their hands.
source
Thursday, May 26, 2011
Don't rule out early use of emerging FX as reserve currencies ...
May 26, 2011
Don't rule out early use of emerging FX in reserves
China's yuan and its emerging economy peers could become reserve currencies sooner than many investors think, as some experts reckon the hurdles of convertibility and policymaker inertia are easily negotiated.
China and other countries from the BRICS nations -- Brazil, Russia, India and South Africa -- would like their currencies to make up part of the International Monetary Fund's special drawing right (SDR), which is used as a reserve asset.
Chinese officials have asserted that widening the SDR basket would heighten the yuan's profile as a potential reserve currency, with some experts seeing the SDR growing into a partial substitute for the dollar.
The SDR, now composed of just U.S. dollars, euros, British pounds and Japanese yen, broadly reflects the composition of the $9 trillion held in global central bank reserves.
The SDR makes up 4 percent of those reserves due to allocations by the IMF, the most recent being in 2009.
To the extent that the SDR reflects these holdings, any change to its make-up could help significantly rebalance those reserve savings.
The issue of entry into the SDR has been debated at recent BRICS and G20 meetings, as part of discussions on reform of the international monetary system.
Dampening hopes for an early widening of reserve currencies, the IMF refrained from adding any currencies to the SDR in a review at the end of last year, and another formal review of the SDR basket is not due until 2015.
Developed world policymakers, meantime, have said that a currency should be freely floating before it can be included in the SDR. That would seem to exclude many pegged or highly managed emerging market currencies for the foreseeable future.
But there could be loopholes on both of these issues.
For one, although the SDR is currently only used between members of the IMF to support international reserves, the IMF has proposed the idea of tradeable SDR bonds or other SDR-backed assets. This could allow for limited convertibility.
"Whether currencies are fully convertible does not really matter if they are used in an internal SDR," said Ousmene Mandeng, head of public sector investment advisory at fund manager Ashmore Investment Management.
There could also be ways to allow central banks to buy currencies, which may normally be subject to stricter controls.
This has a precedent, of sorts, with the Deutsche mark.
Although the Deutsche mark became fully convertible in 1958, non-residents paid higher tax on government bonds until 1984.
"The general assumption and anecdotal evidence is that when central banks wanted to go into German government bonds, they were exempted from paying these taxes," said Mandeng.
In addition, the IMF does not have to wait until 2015 if it wants to review the constituents of the SDR, IMF watchers say, but could choose to do so at any time.
While SDRs only make up about 4 percent of total global reserves of $9.3 trillion, reserve allocations reflect the composition of the SDR. Currently only 4 percent of total identifiable $5.1 trillion reserves are "other" -- likely to be mainly Swiss francs, Canadian and Australian dollars -- with the SDR composition currencies making up the rest.
While most market participants assume that convertibility of China's yuan is some years off, that time-frame has been shortening. The yuan has gradually grown more accessible and there have been signs of Asian central banks showing an interest in buying yuan-denominated bonds.
"The yuan is becoming a more international currency. It's being used more frequently for trade and investment purposes. It's getting easier to access it and invest in it," said Brian Jackson, senior emerging markets strategist at RBC in Hong Kong.
"People might be prepared to hold it in the hope of it being officially classed as an SDR currency."
The yuan has gained 5 percent since it was depegged from the dollar in June 2010. Analysts see further strengthening in the next six months.
There have also been some positive noises within the IMF.
The IMF has made several allocations of SDRs into international reserves, most recently in 2009 to help shore up the global financial system.
In a policy paper published this year on the role of the SDR, the Fund said expanding the SDR basket to include major emerging market currencies could cut the costs of international reserve accumulation and reduce exchange rate volatility.
"The basket could smoothly accommodate a greater role for emerging market currencies...notably the renminbi," the paper said.
"Adding a large number of emerging market currencies...seems undesirable, but there may be a case for the ones with the largest weights in global trade and economic growth."
The paper also added that it was unclear that currencies "should await full convertibility to be allowed into the basket."
But lack of depth in capital markets may not follow convertibility quickly enough to make emerging market currencies attractive as reserve assets.
"People may be surprised. Yuan convertibility could happen in the next two years, instead of 20 years -- although it may not be two months," said Stephen Jen, managing partner of hedge fund SLJ Macro Partners.
"But you will also have to establish a yield curve. That requires an independent central bank. This will not happen in two years."
read more @ http://www.reuters.com/article/2011/05/26/businesspro-us-reserves-sdr-idUSTRE74P4EU20110526
Don't rule out early use of emerging FX in reserves
China's yuan and its emerging economy peers could become reserve currencies sooner than many investors think, as some experts reckon the hurdles of convertibility and policymaker inertia are easily negotiated.
China and other countries from the BRICS nations -- Brazil, Russia, India and South Africa -- would like their currencies to make up part of the International Monetary Fund's special drawing right (SDR), which is used as a reserve asset.
Chinese officials have asserted that widening the SDR basket would heighten the yuan's profile as a potential reserve currency, with some experts seeing the SDR growing into a partial substitute for the dollar.
The SDR, now composed of just U.S. dollars, euros, British pounds and Japanese yen, broadly reflects the composition of the $9 trillion held in global central bank reserves.
The SDR makes up 4 percent of those reserves due to allocations by the IMF, the most recent being in 2009.
To the extent that the SDR reflects these holdings, any change to its make-up could help significantly rebalance those reserve savings.
The issue of entry into the SDR has been debated at recent BRICS and G20 meetings, as part of discussions on reform of the international monetary system.
Dampening hopes for an early widening of reserve currencies, the IMF refrained from adding any currencies to the SDR in a review at the end of last year, and another formal review of the SDR basket is not due until 2015.
Developed world policymakers, meantime, have said that a currency should be freely floating before it can be included in the SDR. That would seem to exclude many pegged or highly managed emerging market currencies for the foreseeable future.
But there could be loopholes on both of these issues.
For one, although the SDR is currently only used between members of the IMF to support international reserves, the IMF has proposed the idea of tradeable SDR bonds or other SDR-backed assets. This could allow for limited convertibility.
"Whether currencies are fully convertible does not really matter if they are used in an internal SDR," said Ousmene Mandeng, head of public sector investment advisory at fund manager Ashmore Investment Management.
There could also be ways to allow central banks to buy currencies, which may normally be subject to stricter controls.
This has a precedent, of sorts, with the Deutsche mark.
Although the Deutsche mark became fully convertible in 1958, non-residents paid higher tax on government bonds until 1984.
"The general assumption and anecdotal evidence is that when central banks wanted to go into German government bonds, they were exempted from paying these taxes," said Mandeng.
In addition, the IMF does not have to wait until 2015 if it wants to review the constituents of the SDR, IMF watchers say, but could choose to do so at any time.
While SDRs only make up about 4 percent of total global reserves of $9.3 trillion, reserve allocations reflect the composition of the SDR. Currently only 4 percent of total identifiable $5.1 trillion reserves are "other" -- likely to be mainly Swiss francs, Canadian and Australian dollars -- with the SDR composition currencies making up the rest.
While most market participants assume that convertibility of China's yuan is some years off, that time-frame has been shortening. The yuan has gradually grown more accessible and there have been signs of Asian central banks showing an interest in buying yuan-denominated bonds.
"The yuan is becoming a more international currency. It's being used more frequently for trade and investment purposes. It's getting easier to access it and invest in it," said Brian Jackson, senior emerging markets strategist at RBC in Hong Kong.
"People might be prepared to hold it in the hope of it being officially classed as an SDR currency."
The yuan has gained 5 percent since it was depegged from the dollar in June 2010. Analysts see further strengthening in the next six months.
There have also been some positive noises within the IMF.
The IMF has made several allocations of SDRs into international reserves, most recently in 2009 to help shore up the global financial system.
In a policy paper published this year on the role of the SDR, the Fund said expanding the SDR basket to include major emerging market currencies could cut the costs of international reserve accumulation and reduce exchange rate volatility.
"The basket could smoothly accommodate a greater role for emerging market currencies...notably the renminbi," the paper said.
"Adding a large number of emerging market currencies...seems undesirable, but there may be a case for the ones with the largest weights in global trade and economic growth."
The paper also added that it was unclear that currencies "should await full convertibility to be allowed into the basket."
But lack of depth in capital markets may not follow convertibility quickly enough to make emerging market currencies attractive as reserve assets.
"People may be surprised. Yuan convertibility could happen in the next two years, instead of 20 years -- although it may not be two months," said Stephen Jen, managing partner of hedge fund SLJ Macro Partners.
"But you will also have to establish a yield curve. That requires an independent central bank. This will not happen in two years."
read more @ http://www.reuters.com/article/2011/05/26/businesspro-us-reserves-sdr-idUSTRE74P4EU20110526
Wednesday, May 18, 2011
Obama extends national emergency order on Iraq ...
May 18, 2011
Obama extends national emergency order on Iraq
US President Barack Obama late Tuesday offered a one-year extension on the national emergency with respect to the stabilization of Iraq, according to a White House statement.
Obama extended Executive Order 13303, declaring a national emergency protecting the Development of Iraq initially established in 2003 by President George W. Bush.
"Because the obstacles to the orderly reconstruction of Iraq, the restoration and maintenance of peace and security in the country, and the development of political, administrative, and economic institutions in Iraq continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States".
Continues ...read more ..
Obama extends national emergency order on Iraq
US President Barack Obama late Tuesday offered a one-year extension on the national emergency with respect to the stabilization of Iraq, according to a White House statement.
Obama extended Executive Order 13303, declaring a national emergency protecting the Development of Iraq initially established in 2003 by President George W. Bush.
"Because the obstacles to the orderly reconstruction of Iraq, the restoration and maintenance of peace and security in the country, and the development of political, administrative, and economic institutions in Iraq continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States".
Continues ...read more ..
Sunday, May 8, 2011
Planning Department completed a draft electronic
08/05/2011
Planning Department completed a draft electronic
BAGHDAD - morning
Ministry of Planning announced the completion of the draft e-ministry, which will begin its work this month. He said Planning Minister Ali Shukri through a press statement: that the Ministry of Planning completed a draft ministry electronic through energy functional process, stressing that the process of activating the circulation of administrative mail would be to get rid of the episodes of excess speed in completing projects of the ministry planning.
"He added that" the proposed ministry electronic is the beginning of launch of e-government project in which they operate by the government and which is expected to be completed after the end of each ministry of electronic connectivity. "and said the Iraqi Planning Ministry on 15 March it had formed a committee to complete the circle of electronic information associated with circles ministry among them as well as to monitor the work planning and address the imbalance.
And that "the Ministry of Planning will deal with the Chambers e-government system, which is an important step in the progress of management style in the ministry and getting rid of bureaucracy and administrative delays in the completion of transactions and projects."
http://www.alsabaah.com/ArticleShow.aspx?ID=7143
Planning Department completed a draft electronic
BAGHDAD - morning
Ministry of Planning announced the completion of the draft e-ministry, which will begin its work this month. He said Planning Minister Ali Shukri through a press statement: that the Ministry of Planning completed a draft ministry electronic through energy functional process, stressing that the process of activating the circulation of administrative mail would be to get rid of the episodes of excess speed in completing projects of the ministry planning.
"He added that" the proposed ministry electronic is the beginning of launch of e-government project in which they operate by the government and which is expected to be completed after the end of each ministry of electronic connectivity. "and said the Iraqi Planning Ministry on 15 March it had formed a committee to complete the circle of electronic information associated with circles ministry among them as well as to monitor the work planning and address the imbalance.
And that "the Ministry of Planning will deal with the Chambers e-government system, which is an important step in the progress of management style in the ministry and getting rid of bureaucracy and administrative delays in the completion of transactions and projects."
http://www.alsabaah.com/ArticleShow.aspx?ID=7143
Thursday, May 5, 2011
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