Expert: Dollarization Is A Big Mistake That Can Not Be Prevented Soon !

[DinarThug]

CNN. Broadcasting While Chanting Ditch The Dollar - To Make Iraqis Holler !

 

 

 

(by walkingstick)

Expert: Dollarization is a big mistake that can not be prevented soon
Date: 22/01/2015 20:26



regarded economist, on Thursday, to be treated domestic economic currency dollar of the biggest mistakes in monetary policy in the country. 

The expert said Essam Mahouelle told / information /, that "excessive dealing currency dollar by failing financial policies (dollarization) , of the biggest mistakes in monetary policy in the state, "noting that he"must be the Iraqi currency to adopt in the future, especially in the insider and that was difficult. " 

He added that "can not be applied to reduce dependence on foreign currencies, especially the dollar on the ground, because most of Merchandising imported from abroad, in addition to the economic situation in Iraq's fragile something to fear merchants in reliable, "explaining that" the decline in oil prices led to inflict great damage to the Iraqi dinar. " 

He added that "the weakness of the government and the authority of the state leads to not to impose its control in the country's economic policies draw," adding " The United States prohibits dealing in other currencies and does not deal only in dollars. " 

The country suffers from a major financial crisis as a result of falling world oil prices, which constitutes 90% of fiscal revenue involved in building the country's budget. Ended 25 K.

http://www.almaalomah.com/news/9269/%D8%AE%D8%A8%D9%8A%D8%B1-:-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D8%B1%D8%A9-%D8%AE%D8%B7%D8%A3-%D9%83%D8%A8%D9%8A%D8%B1-%D9%84%D8%A7%D9%8A%D9%85%D9%83%D9%86-

[Palmtree1970]

Raise the rate of the dinar and I promise I will only use us and can dollar

[SocalDinar]

Thanks Thug.

 

Yes just an opinion piece but we all know that they need to dedollarize at some point.

[Danan]

I just want them to get it done.

["Fred"]

I just want them to get it done.

TGIF, I can't take to many more Mondays waking for work so i'm with ya,get ur done...Hoping to be on the first charter flights to Belize,i'll ride in the cargo area if i have to...

[Laid Back]

Increase the exchange rate higher than the dollar and problem solve.!

Go dinar

Go strong $1.13:1

[Officiallytook]

LoL at this piece, specially the part about oil prices being a negative impact while the currency exchange rate has actually been the opposite...

"decline in oil prices led to inflict great damage to the Iraqi dinar."

But I do like this part... A lot because it shows the CBI has to do something to compensate...

"can not be applied to reduce dependence on foreign currencies, especially the dollar on the ground, because most of Merchandising imported from abroad"

All in all though great piece I love this site the news the people who bring it to us and the community...

Edited January 23, 2015 by Officiallytook

[usndiver]

I have been known to support dollarization. Usually there was a brass pole involved though.

[skrappyone]

In my opinion, they need more USD on the street to take more of the IQD off the street.  If they have USD instead of Dinar then it wouldn't hurt them to come out at any rate they wanted to because the USD would only be worth $1.00.  If they all had Dinar then if they revalued at say 1.17 like everyone is looking for, they would lose .17 on every Dinar compared to if they had the USD.   I want them to staurate the streets of Iraq with the USD so maybe we could get a better rate.  Just my opinion.

[Officiallytook]

But how would the people of Iraq feel holding all those fresh dollars when dinars worth more in the morning?

[skrappyone]

But how would the people of Iraq feel holding all those fresh dollars when dinars worth more in the morning?

 

What I was saying was that it would be a smart move for the CBI to do this to cut down on the Dinar on the streets inside Iraq.  Yes the citizens might be mad, but it would only make sense that they would want to do this.  In the long run, it would help their citizens and move the economy forward.  And like I said.....just my opinion

[SocalDinar]

Last article I saw regarding this said aprox 30% of the currency being used was the USD.  A stable dinar would lower this number. Then the Dinar would become more relevant. Afterall, the people of Iraq must have faith in their currency before the world will.

 

This is not  what the Fed wants for sure but ultimately this needs to happen before any significant change in the rate.

 

If they were to increase the auction amounts and trade more dollars, the money laundering would only increase. Laws and rules would need to be changed regarding those business's and banks purchasing dollars. It's not as simple as just buying back dinar and then destroying them. They must maintain a balance or put their reserves at risk.

 

And of course the disclaimer. Just my opinion LOL.

 

Whats your take on this Thug

Edited January 23, 2015 by SocalDinar

[DinarThug]

Whats your take on this Thug

I Remember Tons Of Articles Last Year About The Banks Running Short Of Dinar

And Citizens Complaining About The Poor Quality Of Old Worn Out Notes !

I Remember The Articles Because I Posted A Lot Of Them !

There Have Also Been Articles By Economists Stating That The IQD Value Is Too Low !

As Dinar Holders The Hope Is That They've Removed Some Of The Currency

And Will Increase The Value Upon The Release Of New Notes

Hopefully With The Addition Of New Lower Denomination Notes As Well !

[Boozer]

SOON

[DinarThug]

(by walkingstick)

Iraq's economy will not collapse and will exceed the financial crisis both locally and internationally


Ruled an economist, influenced by the Iraqi economy and the financial crisis that hit the country as a result of falling oil prices, and among that Iraq suffers from a lack of financial liquidity for a specified time and not in economic resources, he pointed to the lack of specialized minds in the economic file management.

The expert said Majid picture in a statement seen by (Mesopotamia)

"Iraq is suffering from financial liquidity and for a time as a result of certain emergency conditions, not a lack of economic resources," noting that "this financial crisis will not cause the collapse of the Iraqi economy or affect it in the long run."

He added that "Iraq's large and many economic fundamentals and can not to this crisis to undermine him," adding that "the period of the siege, which passed out of the country and traversed good factual evidence that the Iraqi economy has many ingredients."

He said that "if there were minds specializing in economic file management what we got to this case," adding that "the country has many resources, but the problem in the proper management of these resources."

The expert noted that "the current budget, and despite the shrinking size but not small compared to the reality of the region, especially if it was stopped growling with an austerity and control the excess expenditure."

It is said that the country is suffering from a severe financial crisis as a result of falling oil prices and access to low levels were not in the government's accounts Madea government to take a series of measures on top of austerity and retrenchment is necessary in addition to head to the investment and to encourage industry and agriculture.

Warnings of the danger of collapse
He warned the religious authority, Ali al-Sistani, the collapse of the Iraqi economy if quick solutions to economic problems plaguing the country has not developed, calling on all officials and specialists to develop solutions commensurate with the size of those problems.

He stressed Sistani's representative in Karbala, Ahmad al-Safi, the need for openness of the Iraqi government on economic efficiencies at home and abroad to take advantage of their expertise.

The economy Iraqi experts have warned, finally, the collapse is unprecedented in the Iraqi economy because of the fall in oil prices in global markets.

He was adviser to Prime Minister for Economic Affairs, the appearance of Mohammed Saleh, confirmed the existence of attempts to export additional quantities of oil above the rate at which they put in the budget to avoid a deficit.

And announced that the Iraqi Oil Marketing Company (SOMO), its intention to increase Iraq's production to 3.3 million barrels per day of crude oil from the ports of Basra during the month of February next.

Cut growth forecasts
And globally International Monetary Fund cut its forecast for global economic growth for 2015, and called on governments and central banks to pursue policies to facilitate monetary and structural reforms to support growth.

The IMF said in its latest World Economic Outlook that global growth is expected to reach 3.5 percent in 2015 and 3.7 percent in 2016, down 0.3 percentage point from the previous two years, both of which forecast issued in October.

Fund advised the advanced economies to maintain accommodative monetary policies in order to avoid increases in real interest rates because of falling oil prices increases the risk of deflation of prices.

Fund if he could not be more cuts in interest rates, it is advisable to pursue accommodative policy "through other means and said."

The United States was the only bright point in the dark about the major economies Fund report expected to grow with the largest economy in the world by 3.6 percent in 2015, up from 3.1 percent in the previous forecast.

But the IMF predicted further weakness in the euro zone, where Spain were the only countries in the region between the Fund raised its forecast for growth.
The Fund also cut its forecast for emerging economies in general and the oil exporters, Russia, Nigeria and Saudi Arabia in particular.
It also cut its forecast for growth in Brazil and India.

The IMF report said that falling oil prices will give the central banks in emerging economies leeway to delay raising interest rates despite the standard "The scope of macroeconomic policy to support growth remains limited."

He added that cheap oil prices would also provide an opportunity for States to support the reform of taxes and energy programs.

The report came largely in line with comments made by Christine Lagarde, head of the IMF last week in which he said that the fall in oil prices and strong growth in the United States is unlikely to fund Adjala more optimistic.

She added that the euro area and Japan may have witnessed a long period of weak growth with low inflation seriously.

She pointed to Argard Fund and report to the flow returning to the United States for money with a tightening of monetary policy may contribute to disturbances in financial markets in emerging economies.

It is expected by many analysts that the board of the US Federal Reserve starts raising interest rates sometime this year.

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