jjcostanzi

CBI adviser: Dinar will rise against the dollar in the coming periodPosted: December 5, 2010 by Justhopin in Iraqi Dinar/Politics Tags: Central Bank of Iraq, Currency, exchange rate, Finance, Iraq, Iraqi dinar, Mali, middle east 0Said: “The budget deficit usually begins and ends with a surplus An official source in the Iraqi Central Bank to witness a remarkable rise of the dinar against other currencies especially the dollar .. Be denied that the budget deficit next fiscal something negative, saying at the same time that most of the public budgets deficit begins and ends with a surplus of Mali is Mdaorth .. The Chancellor and the economic expert for the appearance of Mohammed’s (morning): The budget deficit is similar to the deficit in the economic structure in general, what calls for attention to processes such as how things can reflect negatively on the economic process in Iraq completely, The Cabinet has recently approved the general budget for Iraq for next year 2011, amounting to $ 83 billion, depending on the value of export of oil amounting to 2.25 million barrels per day and at a price of $ 73 per barrel, but the experts and specialists in the economic forecast to suffer the next budget a deficit of $ 18 billion, which commented upon in favor by saying: not a question of negative to suffer the budget financial deficit, but to see the budget at the end of each year a financial surplus due to non-completion of many plans and projects, and also said: Every time you start the budget deficit , and ending with a surplus … In return, expect the benefit to see the Iraqi dinar remarkable rise against other currencies especially the dollar, explaining that the size of financial returns to the oil, which rose dramatically during the past period compared to past years, as well as the situation called for Palmtdeda [compared] to the dollar in world markets, which can be to contribute according to the Chancellor to raise the value of the Iraqi dinar against the dollar .. The central bank’s long been the deletion of three zeros from Iraqi dinar, in a move designed, according to those concerned to reduce the value of inflation in Iraq, to equality dinar to the dollar, as well as reducing the cluster enormous cash from the Iraqi currency to its lowest limit, however, observers have criticized the move by Galo it is not effective at this time, indicating that the deletion of three zeros from Iraqi dinar will not work to reduce prices or improve quality of life, but it is a switch of the currency only, can not see prices drop because of it as far as saying .. Saleh said the CBI has a lot of policies drawn through auctions currency held by the continuously at the moment, adding that the auction and a means of indirect monetary policy and seeks to achieve three important objectives is to control the levels of liquidity to the Iraqi dinar and also is a means to control the dinar exchange rate against the dollar, as well as being an incubator is important for the financing of private traders who rely on the support of their projects financially through these auctions .. and Abizaid valid reference to that post the most prominent of the currency auction is to achieve economic stability, particularly the reduction of inflation rates, indicating that in addition to for exchange rate stability achieved by the exchange auctions, it is an important means able to achieve substantial financial reserves of Iraq amounted to $ 50 billion. http://bit.ly/fW71KV

not 10 minutes after I posted this article this morning did a contradicting article surface...amazing

Strategy of the monetary policy in Iraq / Part IPosted: October 29, 2010 by Justhopin in Iraqi Dinar/Politics Tags: Iraq, Dinar, Currency, Revaluation, IQD, revalue, redenominate, exchange rate, Central bank, Iraqi dinar, Central Bank of Iraq, International Monetary Fund, Monetary policy, Foreign exchange market, redenomination, Iraq GDP 0I’ve put the monetary policy of the Iraqi Central Bank, the specific Bakannouna No. (56) for the year 2004 issue of inflation targeting and to address the rates rising and work to reduce the priority of goals to get to the situation lasting stability in the general level of prices, so by influencing the levels of general liquidity and control of the trends and work At the same time to strengthen the financial sector and balance and stability and encouraging to respond to market signals fired by the Central Bank through its monetary policy. So he held the Iraqi Central Bank an amendment to the interest rate adopted has the rate (policy), which became 20% since the beginning of the year 2007 before declining to 15% in 2008 to stimulate interest rates overall in the economy in order to achieve the levels of savings and high desirable commensurate with the level of revenue that stimulate the public and businesses to increase their deposits with banks as well as to address the high levels of liquidity through the role played by the reference interest rate to strengthen the mechanical moving cash to curb rising inflation. Also increased at the same time the exchange rate of Iraqi dinar against the U.S. dollar (by buying and selling auction of foreign currency since the fall of 2003) at a rate of 34% in part to curb inflationary expectations until the month of November 2008 and the balance in the money market between the desire to retain cash balances JD and the real supply of these assets by making the Iraqi dinar more attractive and more likely in the face of the phenomenon – Dollarization – and its implications for the deepening problems of replacement and hit the cash element of stability in the demand for money, which deepens the disruption of the money market. In order to view the realities of the current monetary policy and results in lower inflation and stabilization, this paper comes to the expression of some aspects of central bank policy in accordance with the President and the monetary framework adopted at the present time. Stating the following: - B – Trends and the monetary policy signals during the era of inflation - Reflect the inflation phenomenon of the continuing escalation in the level of prices of goods and services, which exceeded the annual rates 76%, especially in the month of August 2006, regardless of supply bottlenecks macro and its contribution to the phenomenon of inflationary monetary policy on addressing the phenomenon and reduce the levels, especially the inflationary pressures generated by the aggregate demand or total spending in the economy. - If we exclude the two paragraphs of fuel and lighting, transport and communications of the index of consumer prices, an indicator of inflation, you can access to the so-called core inflation inflation foundation Which reflects the pressure of aggregate demand, which stood at the end of 2006, including more than 32% per year (less than half the annual inflation rate referred to in the above) came after a decline of about 13.6% annually in the month of October 2008. - The state of deep-rooted in the phenomenon of inflationary and that Eshrha base and inflation resulting from the pressures of aggregate demand have led to the disruption of Amehal to the money market in terms of the public’s desire to retain cash balances over the supply of such stocks. Reflecting an increase in the speed of money circulation and an increase in inflationary expectations at the same time, as it became the last main source of inflationary persistence of the phenomenon. - As money has become a non-confounded, without a doubt a good value in light of real interest rates (negative) made the people inclined to hold foreign currency as a store of value over alternative spread of the phenomenon of replacement cash (Dollarization Dollarization ) Any use of foreign currency in domestic transactions over the narrow and weak capital market operations and limited their tools earlier in the stabilization (due to the unstable nature in the cash demand, which came under the influence of the continuous rise in inflationary expectations, which is pushing for a negative in the real interest rate). - In spite of the great capacity revealed by the monetary policy to control the stability of the foreign exchange market and the stability of the exchange rate of Iraqi dinar against the U.S. dollar throughout the years 2005 – 2006 and as Achertha exchange rates in an auction the Central Bank of foreign currency (as a market exchange central is their prices are the prices directed or leader in the exchange market), but its effects touched limited in addressing deep-rooted phenomenon in general and inflation inflationary basis, in particular due to the following reasons: - - Decline in the dinar exchange rate real nominal level without the intervention of the central bank to defend the stability through the auction of foreign currency over the years mentioned above. Note that this discrepancy between the nominal exchange rate and real was the result of improvement in Iraq’s oil revenues over the past two years and until the present time plus the expenses of the multinational forces and other high foreign currency in Iraq, which contributed to the deepening of the phenomenon of dollarization and find a gap or difference between the price of the dinar’s exchange real ( high) and the nominal exchange rate of the dinar (low in spite of its stability), which was then in the depth of the phenomenon of inflation. - If the oil sector is responsible for generating 55-65% of GDP in Iraq, that has been reflected strongly on the size and installation expenses of the state budget, which has strengthened the depth of the basic inflation, after becoming the paragraph salaries, wages and flows downstream are alone for example 60% of the gross domestic product, a non-oil part of the national income ratio is responsible for generating 30-40% of the GDP total. And this proportion of GDP is made up mostly of non-oil (ie, including more than 60%) of service activities is weak link in the productive sector commodity. - As the country’s monetary policy aims to reduce the levels of inflation, the package adopted by the Central Bank of Iraq in the face of inflationary conditions is appropriate begun steps in the face of inflation, mainly through the creation of influence on the desire to trends in demand for real money balances that are less than stockpiling Available those assets to achieve a balance between supply and demand of them and lead to stability and balance of the money market as we have indicated in advance. As well as reducing the status of cash substitution and addressing the problems of dollarization (ie, raise the level of desire to keep assets in cash and up to the level of inventories by the supply of such assets). And at the forefront of that, comes the importance of providing a climate of disproportionate between the two activities of the Economic and price so that the ratio of money to income (ie, the cash demand) grows in a stable and consistent financial growth targets and macroeconomic stability. - On top of that package, work on strengthening the Iraqi dinar exchange rate which represents the external value of the Iraqi dinar as well as addressing the phenomenon of replacement cash and the requirements of the availability of a tight monetary policy tighten policy Two-way, or by powerful signals are the reference exchange rate and the signal of interest, which enhances the transition from mechanical cash to influence the balance of the money market and then the stability of real activity and as follows: - I – Raising the external value of the Iraqi dinar (ie, the nominal exchange rate) in a manner commensurate with the real exchange rate to contain inflationary expectations, taking into account the trends of the phenomenon of inflationary and the level of acceptance and availability of reserves, inflation and the level of acceptance and availability of international reserves at the Central Bank of Iraq and in a manner inhibits the inflationary expectations referred to above and to reduce the speed of money circulation. II – Modify the interest rates of the Iraqi Central Bank policy rate In a given financial market strong signals to changes in proportionate and desirable with the evolution of the time structure of interest rates, which helps to ensure positive returns for the majority of savers with the banking system and reduce the status of the spacing between savings and investment by borrowing is equal between the supply of money intended for lending and demand. Pointing in this regard that the benefit is not a monetary phenomenon, but is a real phenomenon is also related to the decisions of investors and investment returns, so the spacing mentioned the savings desired investment is desirable due to real interest rates negative in the years 2005 – 2006 (before becoming a positive since the beginning of the year 2008) which came under the influence of inflationary expectations high compared to low interest rates cash in banks and public financial market. Also, the elimination of the gap between savings and investment is through access to the interest rates are subject to equilibratory steadily and contained inflationary expectations which adopted the central bank to adopt the installed nominal Nominal Anchor Exchange rate to stabilize inflationary expectations of the public and at the same time for the benefit of the Iraqi dinar through monetary framework adopted flexible exchange policy, but under the influence of central bank intervention in order to raise the nominal exchange rate to the level of the real. The phenomenon of the spacing between saving and investment means, in essence, the spacing between the productivity of investment and real return it on one hand, compared to the return on savings, particularly when the investor gets a real return on a regular plus a margin of inflation for prices of goods and services generated by the investment usually outputs, which in any case all over interest and takes its toll on the revenue savings through interest rates, banking low from the perspective of exchange market is organized, and we mean the market is not legal (of usury), which reflects the reality of the actual transactions and the real value (for the price of money) no interest away from the regulatory framework of the approved legal with the banking system Thdidalvaidp in cash. Fri. Oct 29, 2010

Previous article states Maliki is President

Al-Maliki confirmed that his Office had been resolvedPosted: October 29, 2010 by Justhopin in Iraqi Dinar/Politics Tags: Iraq, Maliki, Ayad Allawi, Iyad Allawi, Nouri al-Maliki, State of Law Coalition, National Alliance, Nuri al-Maliki 0Baghdad (Sumerian News): outgoing Prime Minister Nuri al-Maliki’s Iraqi list that Iyad Allawi is called now, as Prime Minister but demanding in a limited number of reforms in State institutions, the issue of Iraqi Cabinet de became ended for the national coalition, warned a political majority if not resolving Iraq position to participate in future Government. Maliki said in an interview for “Sumerian space”, “discussions raised now of some menus on some jargon and reforms related to accountability and justice and the anti-terrorism Act, these much needed reforms must take action now”. Maliki said that “these reforms, institutions and formulations should not depart from the Constitution because it sirbek political situation, Kurdistan Alliance is consistent with this idea as well as the Iraqi list still discussed in that”. And between Al-Maliki said the Iraqi list so far discussed in questions of these reforms have not heard discussions in Cabinet or constitutional right, “discuss in reforms and issues related to terrorism and accountability and justice and the distribution of competences and other”. Coalition leader Maliki law State that the “House of the meeting will end of the period set by the Federal Court” should not “resolving some menus position of participation in Government or lack thereof in advance”. Maliki said that “stop waiting controversy between menus or within a single list means bypassing the legal term,” serious consequences that would amount to claim projection elections “. The Bundesgerichtshof in Iraq, Sunday, issued a decision to revoke the provisional House resolution Fouad masoum to make open Council meeting and bound by Council hearings over the next two weeks. The candidate of the National Alliance for the next Government coalition leader Maliki law State in an interviewearlier called for “Sumerian news, concluding his visit to Turkey in the second month being political blocs to hurry to go to Parliament to choose its President and the election of the President, who will in turn greater parliamentary candidate, candidate, National Alliance to form a Government. He was a member of the coalition of Kurdistan Mohama Khalil, blocks stated in an interview for “Sumerian news, Wednesday, that political blocs and deducted by distributing box left is sovereign positions focused on the Government programme and how the partnership in political decision-making, with existing Member, Iraqi Zuhair Al-araji told earlier for” Sumerian news, yesterday, that Prime unresolved for outgoing Prime Minister Nuri al-Maliki this topic discussed, expected resolution next week. The Federal Court’s decision to cancel the open meeting and requiring interim President of Parliament, Parliament hearings confirms weeks by observers of political blocs reached agreement on the form and choose the three presidencies with end own Kurdish delegation with all political blocs and confirmed that the National Alliance is closest to him, as the decision was made after a political agreement on a number of blocks to convene Parliament Speaker selection and two Vice-Presidents, the President, who in turn would cost the largest bloc candidate in Parliament to form a Government. http://bit.ly/9as3Rb

This is it...Maliki is President...Allawi is Prime Minister

I dont get how we can see an earlier today post saying that Washington changed their supprt to Mahdi...now this post states USA supports Maliki still...weird.

This is still just one mans opinion....if Chpt 7 sanctions are lifted today it is possible to RV tomorrow.....or not.

I am surprised there aren't more responses to this post, unless this is a repeat.....next month.....next year...

Good news is that it appears that 'the powers to be' are really pushing to have the Chapter 7 sanctions lifted in the very near future...IMO, Chapter 7 lifted = RV!!

eagleone has not landed

I think its about 2 am on Saturday there.....RIGHT or NO??

Complete rumor...supposedly the rumor said that people in Iraq were already cashing in at 4.20...there is no way we can believe this......YET.

Are you serious? That is the funniest thing I have ever heard....

Great, Saudi wont need our protection from the US after we sell them all these weapons, then they wont keep their agreement to sell all their oil using US currency which in turn will devastate the US economy.....the value of the dollar would be devastated....IMO