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Lifting the Iraqi dinar exchange against the dollar

carlablum

By carlablum,
in Iraq & Dinar Related News

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carlablum Newbie

carlablum

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Lifting the Iraqi dinar exchange against the dollar

EE3B08F3-6F51-4A9F-ABC0-1D2BF7170B1D_w268_r1.jpg

Mohammad Karim22.01.2012

Central Bank of Iraq finally lifting the dinar exchange rate against the U.S. dollar in the auction by (0.34)% to the equivalent of 1166 dinars to the dollar after that remained stable for a long time in the level of 1170 dinars.

In an interview with Radio Free Iraq, Deputy Governor of the Central appearance of Mohammed Saleh said that this action "is part of the implementation of Bank policies Judge to maintain the general level of prices in the domestic market and the purchasing power of the Iraqi currency as well as to the real exchange rate, ie the purchasing power of the dinar is the highest of nominal price. " He explained that this is the result of the surplus in the balance of payments of Iraq and the large reserves of the Central Bank of hard currency, which exceeded 60 billion U.S. dollars "in the face of a state of growth, the importer of the rate of inflation requires, of course, the equation of the real exchange rate counterpart, the nominal protection of the national currency."

He also stressed the benefit in this context that raise the value of Iraqi dinar by 3.4%, "which may seem at first glance a low rate, although it is in fact a monetary value large part of the financial settlement large inter-bank" that this lifting "sends a strong message confirms the strength and stability of the currency national and the promising future of the Iraqi economy "and dispel all fears of the possibility of a deterioration of the latter, as he put it.

Iraqi economists saw their part, that "the issue of maintaining the stability of the general level of prices and the value of local currency" are not the real reason behind the central bank raised the value of the dinar against the dollar, which lies in the Bank's attempt "to curb the apparently high rate of demand on the U.S. dollar in the auction Central since the beginning of December the first of December of last year 2011 to the present day. "

In this regard, the professor of financial and economic policies at the University of Mustansiriya Maytham Laibi that "the high rate of demand on the dollar from 150 million a session in the auction the bank to exceed the threshold of $ 300 million to finance the needed external market for both Syria and Iran are subject to economic sanctions is What to pay for taking the CBE board to raise the exchange rate of the dinar. "

He assured the coffee, "It was also this positive ramifications on the economy and the economy of the Iraqi citizen, it has a negative impact Badtarar interview is the central bank to continue to pump more hard currency in the domestic market means to drain reserves from the national final."

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yota691 Grand Master

yota691

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Posted Yesterday, 06:55 AM

Central Bank of Iraq raises the value of Iraqi Dinar

Saturday, January 21, 2012 13:44 GMT

Central Bank of Iraq announced, on Thursday, that it revaluated Iraqi Dinar 3.4% in exchange with Dollar. This decision will affect the exchange rate of Iraqi Dinar against US dollar in Iraqi markets, Central Bank stressed.

“During his daily auction of foreign currencies’ exchange, Central Bank raised the value of Iraqi dinar against the dollar with a percentage of 3.4% which counts 4 Dinars,” deputy governor of Iraqi Central Bank Mazhar Mohammad Saleh told Alsumarianews noting that after the current change each 1166 Iraqi Dinars equal 1 Dollar. “Nominal rate of Dinar doesn’t coincide with its purchasing power or with its real exchange rate against the Dollar,” Saleh revealed.

“The current account of Iraq payments has a surplus of 5 to 8% in comparison with the GDP,” Saleh advanced stressing that this surplus is a strength indicator and points that Central Bank has major reserves.

“Central Bank of Iraq’s decision will affect Dollar exchange rates which slightly increased lately in Iraqi markets,” Saleh declared adding that Iraqi Dinar will become a riveter in Iraqi markets.

Central Bank of Iraq had announced, on Thursday, exchanging Dollar categories for 1166 Dinars per Dollar after it used to sell 1170 Dinars per Dollar. Auctions of the Central Bank are taking place, daily, with the participation of 23 different banks.

At the end of this week’s sessions, Central Bank of Iraq scored a slight decrease of about 1 million Dollars reaching therefore more than 199 million Dollars in comparison with the 200 million Dollars scored on Wednesday.

Deputy Governor of Iraqi Central Bank Mazhar Mohammad Saleh revealed, on December 14, that Central Bank is willing to create 3 money categories following the deletion of 3 zeros from Iraqi Dinar. The currency exchange requires about two years, Saleh pointed out.

Reserves of foreign currencies in Central Bank of Iraq increased, for the first time in Iraqi history, to 60 billion Dollars, Saleh announced on December 6 explaining that Central Bank can curb inflation if it reached two decimal ranks. Current levels don’t raise concern though, he assured.

http://www.alsumaria...raqi-Dinar.html

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keepmwlknfny Newbie

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Iraqi economists saw their part, that "the issue of maintaining the stability of the general level of prices and the value of local currency" are not the real reason behind the central bank raised the value of the dinar against the dollar, which lies in the Bank's attempt "to curb the apparently high rate of demand on the U.S. dollar in the auction Central since the beginning of December the first of December of last year 2011 to the present day. "

<br style="font-family: tahoma, arial, verdana, sans-serif; font-size: 13px; text-align: left; ">

Guess the rate change really was because of the increase in demand for USD at the auctions.....

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zigmeister Newbie

zigmeister

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Iraqi economists saw their part, that "the issue of maintaining the stability of the general level of prices and the value of local currency" are not the real reason behind the central bank raised the value of the dinar against the dollar, which lies in the Bank's attempt "to curb the apparently high rate of demand on the U.S. dollar in the auction Central since the beginning of December the first of December of last year 2011 to the present day. "

<br style="font-family: tahoma, arial, verdana, sans-serif; font-size: 13px; text-align: left; ">

Guess the rate change really was because of the increase in demand for USD at the auctions.....

That's what they say, but they have said many things, doesn't mean it's their MO.

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20MillionDinar Newbie

20MillionDinar

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Iraqi economists saw their part, that "the issue of maintaining the stability of the general level of prices and the value of local currency" are not the real reason behind the central bank raised the value of the dinar against the dollar, which lies in the Bank's attempt "to curb the apparently high rate of demand on the U.S. dollar in the auction Central since the beginning of December the first of December of last year 2011 to the present day. "

<br style="font-family: tahoma, arial, verdana, sans-serif; font-size: 13px; text-align: left; ">

Guess the rate change really was because of the increase in demand for USD at the auctions.....

That is kind of hard to believe due to the fact that it was only a .3% increase, what does that really accomplish?

I could see if they increased to maybe even 1100:1 or more, but .3% increase? Doesn't do much at all...

Dinar is exchanged on the streets at 1200:1 so now it is what 1196:1 on the streets? LOL

Edited by 20MillionDinar
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MovieMaker Newbie

MovieMaker

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Their math is pretty funky............3.4%? Oh thats right, they use the abacus not the calculator! If they are so confused over this little change in the rate how can they ever figure out how to get to 1: 1 ???

After waiting 8 years. . . I personally believe they USE THERE TOES TO COUNT laugh.gif Slow Pokes!

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tigerstripes Newbie

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That is kind of hard to believe due to the fact that it was only a .3% increase, what does that really accomplish?

I could see if they increased to maybe even 1100:1 or more, but .3% increase? Doesn't do much at all...

Dinar is exchanged on the streets at 1200:1 so now it is what 1196:1 on the streets? LOL

1209 last I looked. Looks like the plan didn't quite work.

But they have had a few articles come out in the last couple days saying 3.4% increase, so maybe they plan on a total move of 3.4%. Or maybe their calculators are broken.............

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20MillionDinar Newbie

20MillionDinar

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1209 last I looked. Looks like the plan didn't quite work.

But they have had a few articles come out in the last couple days saying 3.4% increase, so maybe they plan on a total move of 3.4%. Or maybe their calculators are broken.............

It is more than likely a result of bad translation.

I believe we will see more small increases in the value of the IQD throughout the next few months like we did before 2009!

Edited by 20MillionDinar
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keepmwlknfny Newbie

keepmwlknfny

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That is kind of hard to believe due to the fact that it was only a .3% increase, what does that really accomplish?

I could see if they increased to maybe even 1100:1 or more, but .3% increase? Doesn't do much at all...

Dinar is exchanged on the streets at 1200:1 so now it is what 1196:1 on the streets? LOL

Well I dont think the official exchange rate increase was the main objective in this plan....it was more of a secondary affect......the more USD they have in possession, the more the dinar will be worth since its pegged to the USD.....

So while they might not have gone crazy buying up USD, seems they did get enough to handle (at least for now) the rise in demand for USD in their auctions so that it wont affect the CBIs reserves as they were afraid of....

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20MillionDinar Newbie

20MillionDinar

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Well I dont think the official exchange rate increase was the main objective in this plan....it was more of a secondary affect......the more USD they have in possession, the more the dinar will be worth since its pegged to the USD.....

So while they might not have gone crazy buying up USD, seems they did get enough to handle (at least for now) the rise in demand for USD in their auctions so that it wont affect the CBIs reserves as they were afraid of....

I see what you are saying. I thought you were referring to the demand for USD in the streets of Iraq...

Makes sense.

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keepmwlknfny Newbie

keepmwlknfny

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I see what you are saying. I thought you were referring to the demand for USD in the streets of Iraq...

Makes sense.

I was really hoping for something bigger here!! I mean we still should keep an eye on the CBI site rate (since thats the one thats most important, and the one that hasent moved) but right before this happened they mentioned the higher demand at the auctions and how if it continued they were worried about the reserves being affected, then right after they are now saying they have control on the market again through mechanisms put in place with the auctions....

Seems thats all it was..... dry.gif

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zigmeister Newbie

zigmeister

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I have my allocation penciled into the budget after this pops, and it's more than one line item..

You so make me laugh like crazy....well I don't set the neighborhood on fire when I read your posts.....but they do inspire me. In a good way. Well that is what DV is about, one stumbles, we pick them up and you say, "You like walking on your knees, try your feet." You're something special Ms. C.

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Carrello Rising Star

Carrello

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You so make me laugh like crazy....well I don't set the neighborhood on fire when I read your posts.....but they do inspire me. In a good way. Well that is what DV is about, one stumbles, we pick them up and you say, "You like walking on your knees, try your feet." You're something special Ms. C.

TY and a big Ditto! B)

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