.KTFA Members "News and Views" Sunday Morning 6-17-18

6/17/2018
 
KTFA:

RockCharlie229:  currency conversion I watch it daily.  As the rate is adjusted you can see what it is going to cost, this is a fantastic tool Bravo!! Watch for the encore:-)

https://www.mastercard.us/content/mccom/en-us/consumers/get-support/convert-currency.html/MC

Alison:  I really appreciate Rockcharlie’s post of Mastercard’s currency converter calculator.

One can look at that link as a useful tool to watch for a rate change but based on other internationally recognized currencies currently reflected on that link why does Iraq’s current rate ever have to change???

I am asking this question not to be troublesome but as a student asking what seems to me to be a perfectly legitimate question.
.....



As of Saturday 6/16/18 the South Korean Won (according to the above Mastercard currency exchange rate link) has an int’l exchange rate of 2000 Won (KRW) = $1.84.  That means 1 KRW = 0.000919. As a country South Korea currently seems to be at no  great disadvantage to any other country when it comes to international commerce and trade.

As of today Mastercard’s currently posted international rate for 2000 Dinar (IQD)  is = $1.68. That means that as of today 1 IQD = 0.000841.  The above Mastercard link is telling us the current rate of South Korea’s Won (KRW) is basically on par and has about the same value internationally to the USD as Iraq’s dinar (IQD).

In fact the above Mastercard link confirms that  2,000 IQD =   1,983.44 KRW. So theoretically a South Korean shopping today in Iraq would find their two currencies approximately comparable.

Can someone explain to me why Iraq could not engage in international commerce and trade and rebuild their country to its former glory at the current “Program Rate” if that rate is either accepted internationally now or is soon to be accepted internationally at the rate reflected on that Mastercard link?  South Korea seems to have done and is doing quite well at it's current international rate reflected by Mastercard. Why not Iraq???

Jay:  The answer to your ? is IN YOUR ?. Iraq's currency value is a PROGRAM RATE, meaning a rate that was SLAPPED on them by the UST/FR/UNSC/IMF/WB/BIS <--- I don't recall WHO or WHAT entity ACTUALLY imposed the P.R. on Iraq. IT IS NOT a rate based on that countries natural resources, population/work force, etc. It is a rate that is punishment for Iraq's monetary practices and security situation at the time it was imposed. 

This is why the RI has to happen BEFORE an RV. "REINSTATE = RESTORE" to their true rate. Which is what we are waiting for. The countries you listed that have a crappy rate have their own issues as to why their currency was valued as such. Could be credit rating,GDP, type of government that they live under. IE, Communist, Socialist etc. Look at Vietnam. They are international and their rate is 22,800-ish to 1, last I checked.  You can not be international with a PR.

So with what you are asking, you are just forgetting the most important thing. That Iraq is in a PROBATIONARY PROGRAM RATE, if you will. They have to have some kind of rate so they can survive in this probation period while they reform their monetary system to meet international laws and standards. Albeit for the past 15 yrs.

LOLOL That's the best I can do while only having one cup of coffee and keeping it simple and to the point without a barrage of big words. I am only 12 after all.   Lol      ALL IMO ^^^

**************

Samson:   How much does Iran get from oil fields shared with Iraq ?

 17th June, 2018

The Oil Ministry of Iran announced that its revenues from the oil fields shared with Iraq west of the Karon River, amounted to 5 billion dollars annually over the past two years.

It reported that production from the joint fields with Iraq west of the Karun River reached 300,000 barrels per day.

Iranian media reported that Iran produces about 68 thousand barrels of crude oil per day from 4 fields shared with Iraq, namely Dahlran and Shahr oil and Bider West and Aban.

"Drilling is currently underway in eight sites in a number of fields between Iran and Iraq, and the results are satisfactory," quoted Mehdi Fakur, executive director of Iran's central oil company, as saying.

It is expected that the next few days will witness the signing of a final agreement between Iran and Iraq for the joint investment of oil fields on the borders of the two countries, according to the statement of the Iraqi Oil Ministry.

The initial agreement was signed in August 2017 between Iraqi Oil Minister Jabbar al-Luaibi and his Iranian counterpart Begin Zanganeh in Tehran.

The initial agreement includes the joint investment of two oil fields in Diyala province and Sinbad in the southern province of Basra.

Iraq has 24 oilfields shared with Iran, Kuwait and Syria, including 15 fields productive and the other untapped, and most prominent fields of Safwan, Rumaila and Zubayr with Kuwait, and Majnoun, Abu Gharb, Bazarkan, Al-Fakha and Khana oil with Iran.

The issue of oil wells shared between Iraq and Kuwait and Iran after 2003, until the Ministry of Oil began to form joint technical committees in 2008 in hopes of resolving this file, but did not submit any final report to date, raising doubts about its work.   LINK

*************

Samson:  Of Iraqi-Iranian negotiations on a border post

 17th June, 2018
A delegation from the Interior Ministry will head to Iraq soon to discuss the finalization of the opening of the border port of Gailat, the deputy of Dahlan in the Islamic Shura Council, Shadmahr Kazemzadeh, said Sunday.

He pointed to the meeting of Interior Minister Abdul Ridha Rahmani Fadhli and the topics discussed, pointing out that many topics were addressed, including the opening of the border port of Gelat before the visit of the next four days of Imam Hussein, where the minister promised to follow up the matter.

He added that he had made a request during the recent visit by the Iraqi Interior Minister to Tehran to open the border port of Gelat, where a general agreement had been reached on the issue.

In order to finalize the issue, a delegation from the Interior Ministry will go to Iraq soon, he said.  LINK


Samson:  Will the global remittance system become a victim of sanctions on Iran ?

 17th June, 2018

The Interbank Global Financial Communications Association (SWIFT) faces options once again because  of US sanctions against Iran, although it is an independent company outside the United States.

It has to choose between losing its reputation as a neutral institution with more than 2,400 commercial banks and foundations Finance around the world or face US sanctions. 

She said  the US administration during the June 6th, that the Swift stop all financial dealings with Iran or face US sanctions, including the freezing of its assets in America. 

Nicholas Fion, a fellow at the Peterson Institute for Economic Studies in Washington, believes that if Swift agrees to US decisions, she will lose her neutral reputation. So Swift hopes the European Union's efforts will help free it from US sanctions against Iran.

Although SWIFT is based in Brussels, a neutral institution that says it does not allow a third party to access its financial data, and therefore does not fall under US jurisdiction or control, its problem is simply that America gets its financial data through Back door.  

It is the door to search engines, operating systems and financial platforms that exist in America. Through these programs and technology, America gets the financial data that allows it to make sure Swift is dealing with Iran or not. 

According to a New Yorker report, the US National Security Agency has created a back window in Swift systems that allows it to obtain financial data for dealing with banks and remittances in Europe.

It also obtains banking data in the Arab region through a back window created in Dubai. 

So far, there is no rival for Sovereign in financial transactions, although a similar company called RBL in California is doing limited operations, but America could make it a "new SWIFT" if the trade and financial conflict with EU countries that refuse US sanctions continues. Iran. 

Global banks and institutions prefer SWIFT because they provide a high quality service at a cost that is cheap and safe compared to any other means. 

Since its inception in the early 1970s, specifically in 1973.  Swift has contributed mainly to global trade settlements. The number of countries participating in more than 209 countries, including most Arab countries, and the number of joint financial institutions to 9000 institutions. 

According to the organization's regulations, the state must be involved before allowing its institutions to participate. Egypt participated in 1994, and the number of participants in Egypt is more than 55 financial institutions.

The world's exchanges and exchange markets rely mainly on linking and exchanging messages and information between all the international financial markets through the banks responsible for implementing this in various countries, thus enabling them to meet the needs of customers from banks and financial institutions. 

It also provides safety and low cost to banks compared to other transfer methods involved.   LINK