The Iraqi Central Bank And The Iraqi Dinar !

[DinarThug]

CNN. Broadcasting From The Barn While Trying To Get The IQD Back In The 'Stable' !

 

 

 

Monday, 20 April 2015, 04:27 GMT
The Iraqi Central Bank and the Iraqi Dinar

What are the dangers facing the Iraqi dinar? What has the Iraqi Central Bank (ICB) been doing to stabilize the value of the unstable Iraqi dinar? What has Kurdistan got to do with all of this? 

It seems to be an economic peril that the value of the Iraqi Dinar has fallen considerably compared with the US dollar. What are the reasons behind this? 

The huge drop in the price of crude oil to around $55 for light crude oil, and the recent gains in the US dollar currency, coupled with the recent political situation in the fight against the Islamic State are some of the main factors that have led to the fall in the value of the Iraqi Dinar. 

It is estimated that the ICB has reserves in excess of $60 billion dollars. 

In order to maintain the stability of the Iraqi dinar currency, the ICB has been putting large sums of US dollars into the Iraqi market so that by increasing the supply of the dollar its value would become lower; inversely the value of the Iraqi Dinar would go up. 

A simple supply and demand law! 

The stability of an economy depends on the stability of its currency. That's what seems to justify the ICB continuing to hold big reserves of US dollar currency at a time of economic woes.

Until this moment, the Kurdistan Region is using the Iraqi Dinar as its currency in addition to the US dollar as a secondary currency. 

Therefore, the stability of the Kurdistan economy depends on the stability of the Iraqi Dinar. 

One remembers with some worry the collapse of the German economy shortly after the First World War when the German currency fell drastically in value. 

The Weimar Republic government printed paper money in big amounts and as a result inflation rates in Germany catapulted, ultimately leading to the collapse of the German economy and hyper inflation which paved the way for the Nazi Government to take over and enforce a command economy. 

Such an example shows what happens to an economy if preventative measures are not enforced during a time of crisis especially the one that is facing Iraq and the Middle East at the moment. 

http://www.kurdishglobe.net/article/B487981142EB0C54AACEA562570C22E7/The-Iraqi-Central-Bank-and-the-Iraqi-Dinar.html

[TrinityeXchange]

One remembers with some worry the collapse of the German economy shortly after the First World War when the German currency fell drastically in value. 

The Weimar Republic government printed paper money in big amounts and as a result inflation rates in Germany catapulted, ultimately leading to the collapse of the German economy and hyper inflation which paved the way for the Nazi Government to take over and enforce a command economy. 

Such an example shows what happens to an economy if preventative measures are not enforced during a time of crisis especially the one that is facing Iraq and the Middle East at the moment. 

http://www.kurdishglobe.net/article/B487981142EB0C54AACEA562570C22E7/The-Iraqi-Central-Bank-and-the-Iraqi-Dinar.html

these folk kill me with their analogies.  i don't have time to blast this properly but will write this.  the deutsche mark was purposely devalued in response to a losing a position.  iraq is no where near in the same position!  their reserves alone can bolster their currency's value for quite some time, first of all.  second of all they do not have a desire to devalue their dinar.  their mid-term playbook says to strengthen the currency and increase purchasing power.  

[eburt]

Thanks Thug - I wish they stop complaining and to fix this problem the ICB needs to RV their currency and stop borrowing and complaining.  They have plenty of reserves to backup the Dinar.  Maybe Abadi needs to get a new leader of the ICB that will pull the triiger to RV currency.  It's just that simple.  I know many would say that security and many laws needs to be passed and security needs to be stable but this is Iraq.  If they are waiting for ALL the laws to password then there WILL NEVER BE RV and this country will revert back to crises of no return....Just my  

[wciappetta]

these folk kill me with their analogies.  i don't have time to blast this properly but will write this.  the deutsche mark was purposely devalued in response to a losing a position.  iraq is no where near in the same position!  their reserves alone can bolster their currency's value for quite some time, first of all.  second of all they do not have a desire to devalue their dinar.  their mid-term playbook says to strengthen the currency and increase purchasing power.  

 

 

 

 

You got that right. If anything the CBI is restricting dollars,  artificially creating this drama in the effort to force the citizens into using their own currency and get them in the banking system IMO. The other instrument is being employed in conjunction is bank cards. Direct deposit of salaries for government workers [largest employer] and public assistance recipients getting benefits on bank cards along with this orchestrated imbalance in the exchange rate are hemming the citizens into the system . Managing a revaluation is easier electronically if only to drastically reduce notes in circulation locally at its fastest pace. It's just part of the process and moving along quite nicely.

Edited April 20, 2015 by wciappetta

[davis411]

Thanks Thug - I wish they stop complaining and to fix this problem the ICB needs to RV their currency and stop borrowing and complaining.  They have plenty of reserves to backup the Dinar.  Maybe Abadi needs to get a new leader of the ICB that will pull the triiger to RV currency.  It's just that simple.  I know many would say that security and many laws needs to be passed and security needs to be stable but this is Iraq.  If they are waiting for ALL the laws to password then there WILL NEVER BE RV and this country will revert back to crises of no return....Just my  

ok i will send in my resume my friends, i can lead and will pull the trigger for this in my first hour on the job, 

i will then resign on my 2nd hour of the job,

just need Abadis contact details and i will go to work for two hours.

i had him on face book but i stopped being friends a while ago   

[DinarThug]

ok i will send in my resume my friends, i can lead and will pull the trigger for this in my first hour on the job, 

 

I Already Nominated SandFly For The Position ...

 

 

 

 

 

He Even 'Thanked' Me For It ...

 

       

[Laid Back]

The CBI have enough reserves to cover all dinar 1-1/2 times.

Just increase the exchange rate.

Do it.!!

[Wiljor]

I hear ya LB, Ramadan is fast approaching, then a month of nothing. I'm sure this is a carefully orchestrated event and they must get it right, especially with the powers that be. No intel, no pre news broadcast, no guru cr@p, we will awake one day or be woken up by AM's text, when we least expect it.

[Freedomwish]

I hear ya LB, Ramadan is fast approaching, then a month of nothing. I'm sure this is a carefully orchestrated event and they must get it right, especially with the powers that be. No intel, no pre news broadcast, no guru cr@p, we will awake one day or be woken up by AM's text, when we least expect it.

 

If nothing major happens before and/or after Ramadan, I believe it's a wrap for 2015.  At this point, I'm looking forward to Adam's incoming reports he mentioned from last week's chat log that he's gonna' put out, hopefully for a little more understanding and clarification on how things are currently from his perspective.  

 

Then afterwards, I'll have more whiskey shots to take in things off from his perspective.  Yep.   

Edited April 20, 2015 by Freedomwish

[10 YEARS LATER]

These guys sit around a dimly round table smoking Camel cigs and drinking Scotish Highland Malt Whiskey thinking of crazy crap like this just to make people NUTS.

 

You can hear it . . . ."Hey, Habib . . .I tell you this. Whadduya say we do [ bla bla bla bla bla bla bla bla ] " !

 

Then they all roar with Laughter . . . . " Oh Ali-Boobi. . . . that's a knee slapper ! You such funny Guy ! We do what You say day after tomorrow about 9am - they never see this coming . . . come on baby light my Camel !"

[mr.unlikely]

It's my fault. I was joking around with Ali mosen and told him if he pulled my finger I would RV the currency. Well... He did and you can imagine what happened next. Now he's not going anywhere near that trigger. I can't believe he fell for that one. I don't know why but that never gets old.

[psdon]

Bad boy no camel cigs for you  

[sandfly]

I'LL DO IT CLOWN THE FIRST DAY IT WILL GO UP

[DinarThug]

JUST ASK UMBERTINO IF U NEED TO BORROW A BLUE PILL !

[SocalDinar]

At the end of February they announced the limiting of the auctions with article 50 of the budget law. Many here were saying this was a good thing. I wonder if they still do

Thanks Thug

[tommyboy]

Could be just "removing the zeroes" from the street. Can you say "step 1" ?