What is behind the ISIS decision to reopen banks in Mosul? ~ Wow That Was Fast! Libyan Rebels Have Already Established A New Central Bank Of Libya
Recently, the reinforced doors of the banks in Mosul were reopened. They had been closed since June 10, when the radical jihadi group the Islamic State (IS) took over the city and put public institutions, particularly banks, under heavy guard.
Mosul – IS is behaving as though it is a state, or perhaps it fancies itself as one. Al-Bayan radio, an IS mouthpiece, announced the reopening of the banks in the city, “in order to allow current account holders to withdraw their deposits.”
Mosul, which has a population of 1.7 million, has considerable economic weight. The city has 12 branches belonging to government banks, most notably the Iraqi Central Bank, as well as private investment banks. Funds deposited in these banks are estimated to be worth $500 million, making IS one of the richest terrorist organizations in the world, according to international media.
Many people followed the news with great interest, including Youssuf Mahjoub, a contractor, who was greatly relieved at first; his family had been suffering from financial hardship for nearly two months. The following day, Mahjoub got up early and headed to downtown Mosul to the 112th branch of al-Rasheed Bank, hoping to cash tens of millions of dinars from his account to settle debts due on his contracting business.
Funds deposited in these banks are estimated to be worth $500 million, making IS one of the richest terrorist organizations in the world, according to international media.
But when Mahjoub arrived at the bank, he found huge, disorganized queues at the door, where three militants stood “organizing” the waiting lines. After some trouble, the contractor reached the customer service officer. However, he found out that the latter’s role was now limited to reading the instructions of the commission put in charge of teller operations, which consists of prominent members of IS.
The officer told Mahjoub, “Cash disbursal is limited to current accounts, and does not include the accounts of government departments and public institutions, and the private accounts of persons (natural or legal persons) who are Christian, Yezidi, Shia, or Sunni ‘apostates’,” according to the IS commission’s classifications.
Mahjoub’s hopes soon faded. He had lost all his possessions, including his family’s home, because of the failure of his business: before he could cash a bond he had long waited for, worth $250,000, Mosul fell to IS.
The man had no choice but to abide by the instructions. He went to another officer at the bank, and requested an account statement, before he went to the IS commission, which proceeded to scrutinize his account details before approving or rejecting his request to cash deposits.
In the meantime, hundreds of people were waiting outside the bank hoping to withdraw their deposits. None of them dared to protest against people jumping the queues, after one of them declared he was fighting on the front lines of the battlefields.
Not far from the 112th branch, a man stood watching what was happening outside the bank. He was one of those who felt it was best to wait until IS’ intentions became clear.
Mahjoub emerged from the bank carrying 10 million dinars ($8,000). The man outside approached him and asked him about what happened with him. Mahjoub said, “After the members of the commission interviewed me, they told me I was allowed to withdraw only 10 percent of my balance, provided that it would be no more than 10 million dinars.” He added, “When I tried to persuade them that my balance was worth 300 million dinars, one of them said firmly: You are not the only one, these instructions apply to everyone.”
Mosul residents who are still hesitant and apprehensive believe that the goal behind reopening the banks is to access details about the deposit accounts, especially since IS has shown great interest in their finances. For this reason, IS might proceed after this step to seize accounts belonging to government institutions and departments, as well as the accounts of “fugitives,” Christians, and others.
For other residents, the move is just a PR stunt by IS, with the growing resentment among the public against the radical group because of the economic downturn the city is now experiencing.
IS already levies a fee on the funds withdrawn from banks, to the tune of 10 percent of their value. But Mohammed al-Fathi, a farmer, has paid this fee twice so far: the first when he sold his wheat crops to the General Company for Grain – as farmers were told they had to pay zakat money to the Islamic State being the party in charge of providing for the ‘subjects’ and collecting and distributing zakat – and the second when he withdrew money from the bank.
Fathi had 20 million dinars. After complicated procedures that took 3 days, he returned home with only 2 million, following the same 10 percent withdrawal rule.
In the context of explaining IS’ recent procedures, we find that the US Foreign Policy Research Institute had said in its latest report that the funds seized by the organization, estimated at $500 million, would not last for a long time, because of the high cost of the conflict IS is fighting on several fronts. Furthermore, an unknown proportion of these funds is being paid to cover the salaries and pensions of government employees. Otherwise, in the event of failing to pay these wages, IS would risk antagonizing the public.
The report also stated that part of these funds could disappear into the personal accounts of some IS leaders.
Wow That Was Fast! Libyan Rebels Have Already Established A New Central Bank Of Libya
The rebels in Libya are in the middle of a life or death civil war and Moammar Gadhafi is still in power and yet somehow the Libyan rebels have had enough time to establish a new Central Bank of Libya and form a new national oil company. Perhaps when this conflict is over those rebels can become time management consultants. They sure do get a lot done. What a skilled bunch of rebels – they can fight a war during the day and draw up a new central bank and a new national oil company at night without any outside help whatsoever. If only the rest of us were so versatile! But isn’t forming a central bank something that could be done after the civil war is over? According to Bloomberg, the Transitional National Council has “designated the Central Bank of Benghazi as a monetary authority competent in monetary policies in Libya and the appointment of a governor to the Central Bank of Libya, with a temporary headquarters in Benghazi.” Apparently someone felt that it was very important to get pesky matters such as control of the banks and control of the money supply out of the way even before a new government is formed.
Of course it is probably safe to assume that the new Central Bank of Libya will be 100% owned and 100% controlled by the newly liberated people of Libya, isn’t it?
Most people don’t realize that the previous Central Bank of Libya was 100% state owned. The following is an excerpt from Wikipedia’s article on the former Central Bank of Libya….
The Central Bank of Libya (CBL) is 100% state owned and represents the monetary authority in The Great Socialist People’s Libyan Arab Jamahiriya and enjoys the status of autonomous corporate body. The law establishing the CBL stipulates that the objectives of the central bank shall be to maintain monetary stability in Libya , and to promote the sustained growth of the economy in accordance with the general economic policy of the state.
Since the old Central Bank of Libya was state owned, it was essentially under the control of Moammar Gadhafi.
But now that Libya is going to be “free”, the new Central Bank of Libya will be run by Libyans and solely for the benefit of Libyans, right?
Of course it is probably safe to assume that will be the case with the new national oil company as well, isn’t it?
Over the past couple of years, Moammar Gadhafi had threatened to nationalize the oil industry in Libya and kick western oil companies out of the country, but now that Libya will be “free” the people of Libya will be able to work hand in hand with “big oil” and this will create a better Libya for everyone.
Of course oil had absolutely nothing to do with why the U.S. “inva—” (scratch that) “initiated a kinetic humanitarian liberty action” in Libya.
When Barack Obama looked straight into the camera and told the American people that the war in Libya is in the “strategic interest” of the United States, surely he was not referring to oil.
After all, war for oil was a “Bush thing”, right? The Democrats voted for Obama to end wars like this, right? Surely no prominent Democrats will publicly support this war in Libya, right?
Surely Barack Obama will end the bombing of Libya if the international community begins to object, right?
Obama won a Nobel Peace Prize. He wouldn’t deeply upset the other major powers on the globe and bring us closer to World War III, would he?
Russian Foreign Minister Sergei Lavrov has loudly denounced “coalition strikes on columns of Gaddafi’s forces” and he believes that the U.S. has badly violated the terms of the UN Security Council resolution….
“We consider that intervention by the coalition in what is essentially an internal civil war is not sanctioned by the U.N. Security Council resolution.”
So to cool off rising tensions with the rest of the world, Obama is going to call off the air strikes, right?
Well, considering the fact that Obama has such vast foreign policy experience we should all be able to rest easy knowing that Obama will understand exactly what to do.
Meanwhile, the rebels seem to be getting the hang of international trade already.
They have even signed an oil deal with Qatar!
Rebel “spokesman” Ali Tarhouni has announced that oil exports to Qatar will begin in “less than a week“.
Who knew that the rag tag group of rebels in Libya were also masters of banking and international trade?
We sure do live in a strange world.
Tonight, Barack Obama told the American people the following….
“Some nations may be able to turn a blind eye to atrocities in other countries. The United States of America is different.”
So now we are going to police all of the atrocities in all of the other countries around the globe?
The last time I checked, the government was gunning down protesters in Syria.
Is it time to start warming up the Tomahawks?
Or do we reserve “humanitarian interventions” only for those nations that have a lot of oil?
In fact, atrocities are currently being committed all over Africa and in about a dozen different nations in the Middle East.
Should we institute a draft so that we will have enough young men and women to police the world with?
We all have to be ready to serve our country, right?
The world is becoming a smaller place every day, and you never know where U.S. “strategic interests” are going to be threatened next.
The rest of the world understands that we know best, right?
Of course the rest of the world can surely see our good intentions in Libya, can’t they?
Tensions with Russia, China and the rest of the Arab world are certainly going to subside after they all see how selfless our “humanitarian intervention” has been in Libya, don’t you think?
In all seriousness, we now live in a world where nothing is stable anymore. Wars and revolutions are breaking out all over the globe, unprecedented natural disasters are happening with alarming frequency and the global economy is on the verge of total collapse.
By interfering in Libya, we are just making things worse. Gadhafi is certainly a horrible dictator, but this was a fight for the Libyan people to sort out.
We promised the rest of the world that we were only going to be setting up a “no fly zone”. By violating the terms of the UN Security Council resolution, we have shown other nations that we cannot be trusted and by our actions we have increased tensions all over the globe.
So what do all of you think about what is going on in Libya? Please feel free to leave a comment with your opinion below….
So, let’s add it up:
1. This guy is an exile, who lived in Virginia (Note: The CIA’s headquarters is there. Anyone with half a brain can connect the dots on that one).
2. He goes ‘home’ around the time the ‘protests’ start.
3. He quickly becomes the ‘leader’ of the ‘revolution’ (the ‘protests’ magically morphing into a ‘people’s revolutionary army’ of sorts).
4. He meets with Hillary Clinton two weeks before the bombing campaign is announced.
The CIA and the Administration has simply found someone less-crazy and more-pliable than Khaddafi. He’ll be the CIA’s Libyan puppet.