Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
Sign in to follow this  
trooper

Central Bank to take a new policy to avoid the dinar exchange rate affected by the neighboring countries

Recommended Posts

Central Bank to take a new policy to avoid the dinar exchange rate affected by the neighboring countries

02 February, 2012 12:16:00

Central bank also unveiled a new policy to avoid the risk of the impact of currencies of neighboring countries on the Iraqi dinar exchange rate, because it has a cash reserve large hard currency.

and Deputy Governor of the Central Bank of the appearance of Mohammed Saleh said that the Central Bank has the largest financial reserve of hard currency in the history of Iraq and $ 60 billion dollars, to face the difficult circumstances that may pass in the country. He noted that the Central Bank of Iraq in control of the local market by injecting liquidity or withdrawn and has a policy on the near and medium term to avoid the risk of impact Tdhoramlat neighboring countries to the Iraqi currency.

http://www.alfayhaa.tv/news/economy/75149.html

  • Upvote 3

Share this post


Link to post
Share on other sites

Central bank also unveiled a new policy to avoid the risk of the impact of currencies of neighboring countries on the Iraqi dinar exchange rate, because it has a cash reserve large hard currency.

Ok.... uhhhh.... so what's your "new policy"?????? hahahahah

Share this post


Link to post
Share on other sites

Our new policy you ask? To RV our currency. We would like you to kindly exchange your dinar for large sums of money, then We will send you lots of oil.

  • Upvote 2

Share this post


Link to post
Share on other sites

Our new policy you ask? To RV our currency. We would like you to kindly exchange your dinar for large sums of money, then We will send you lots of oil.

YES!!!

Share this post


Link to post
Share on other sites

Central bank also unveiled a new policy to avoid the risk of the impact of currencies of neighboring countries on the Iraqi dinar exchange rate, because it has a cash reserve large hard currency.

Ok.... uhhhh.... so what's your "new policy"?????? hahahahah

Yes, please do tell....how many more hours or days?

Share this post


Link to post
Share on other sites

Yes, please do tell....how many more hours or days?

It says they have a new policy but they don't say what it is!!!! Hahahaah... it's like the kid on the playground that is bragging about his new bike!!!!!!

Share this post


Link to post
Share on other sites

.....and our new policy is, because of the situation at hand, we can no longer redenominate to control inflation. We are going to have to drop the program rate and increase the value of the Iraqi Dinar. :D

  • Upvote 3

Share this post


Link to post
Share on other sites

Bring the new POLICY and RV......ohhh how sweet that sounds...."RV" or .86 to whatever

  • Upvote 1

Share this post


Link to post
Share on other sites

Could he be talking about something else besides an RV? Like maybe how they will only deal with exchanges through a "window"?

Which obviously leads to an RV, of course!

  • Upvote 1

Share this post


Link to post
Share on other sites

If they are expecting to rv, why would they talk about it like this? I thought they would try to keep this hush hush. My curiosity is in overdrive. What I would give to know what Shabs is thinking right about now. :)

Share this post


Link to post
Share on other sites

I'm kinda proud of all of the dinarians and how quick some of you are to see through the B/S press releases.your asking the real question that matters. "Whats the new policy? " too quick and i'm still LOL :lol: Thanks Alex!!!

Share this post


Link to post
Share on other sites

Could be with the auctions only had 3 Banks with total of 3 Million in auction today. This way forcing banks not to exchange a lot of USD to citizens .THis could be new trend get the sale & buys low . Be interesting see what kind of auction happens tonigh at CBI.

  • Upvote 1

Share this post


Link to post
Share on other sites

It says they have a new policy but they don't say what it is!!!! Hahahaah... it's like the kid on the playground that is bragging about his new bike!!!!!!

Teasers - Not fair.

Share this post


Link to post
Share on other sites

Looks more encouraging than the usual drop the zeros articles. No way they're ever gonna let us know what's going on until its a done deal.

Share this post


Link to post
Share on other sites

Could he be talking about something else besides an RV? Like maybe how they will only deal with exchanges through a "window"?

Yes he could. If you read one of the articles( I will post it here in a minute and highlight the part) the banks who participated in the auctions were getting their money via wire transfers to purchase dollars. Well where were these wire transfers coming from? Syria and Iran. So to cut down on the hard currency leaving the country they cut off the auction.

Now I do not know how they were paying for the dollars was it solely in dinars or in other foreign currency? If it was in other currency then the CBI could be stuck with a lot of useless Syrian and Iranian hard currency. How will that help the CBI assets? It won't. Now by cutting off the auction they protect their hard currency reserves.

I believe that banks will still be able to purchase dollars but now it will be controlled even tighter. The first tightening was raising the rate, the second was the setting of auction limit, now this is the third. They are showing their neighbors that they are in charge.

Let me get that article, it is long but in English. Found it in the Chicago Tribune of all places.

Share this post


Link to post
Share on other sites

Yes he could. If you read one of the articles( I will post it here in a minute and highlight the part) the banks who participated in the auctions were getting their money via wire transfers to purchase dollars. Well where were these wire transfers coming from? Syria and Iran. So to cut down on the hard currency leaving the country they cut off the auction.

Now I do not know how they were paying for the dollars was it solely in dinars or in other foreign currency? If it was in other currency then the CBI could be stuck with a lot of useless Syrian and Iranian hard currency. How will that help the CBI assets? It won't. Now by cutting off the auction they protect their hard currency reserves.

I believe that banks will still be able to purchase dollars but now it will be controlled even tighter. The first tightening was raising the rate, the second was the setting of auction limit, now this is the third. They are showing their neighbors that they are in charge.

Let me get that article, it is long but in English. Found it in the Chicago Tribune of all places.

Thanks Abarvets, I would appreciate it.

Share this post


Link to post
Share on other sites

http://www.chicagotribune.com/news/sns-rt-us-iraq-sanctionstre810188-20120201,0,6798400.story

Iraq becomes dollar source for sanctions-hit Iran, Syria

BAGHDAD (Reuters) - In the money changing shops dotted around Baghdad's Karrada district, Iraqi merchants dabble in many currencies, but these days some joke that banknotes from neighboring Iran and Syria are only worth plastering on windows as decorations.

Discounted Iranian rials and Syrian pounds are pouring into the shops as Western economic sanctions against those two countries make it harder for them to conduct trade with much of the rest of the world, arrange international bank transactions and obtain hard currency.

Iraq, which shares porous borders and political ties with both countries, is emerging as an important source of dollars for them.

Sales of dollars in currency auctions held by Iraq's central rose as high as $400 million on some days in December from a previous average of $150 million, according to central bank data. Many of those dollars were bought by Iraqi traders for resale in Iran and Syria.

"The main reason for this is the sanctions imposed on Iran and Syria, and the fact that their bank transactions are having trouble. Iraqi businessmen play the role of middlemen," deputy central bank governor Mudher Kasim said in January.

Kadhim Sabri, who works at a Karrada currency exchange shop, said some of the dollars purchased in the central bank auctions went straight to Iran or Syria via a loosely monitored network of wire transfer agencies. "It is more profitable to sell them in Iran or Syria."

DEVALUATIONS

Sharp falls in the currencies of the sanctions-hit countries over the last several weeks indicate how desperate importers and travelers there have become to obtain hard currency. Last week Iran's central bank announced an 8 percent devaluation of the rial in an effort to stamp out trade in the black market, where the dollar has soared in value since U.S. and European sanctions in response to Tehran's controversial nuclear program were tightened late last year.The Syrian pound, which traded at 47 to the dollar before that country's crisis, has slipped to an official rate of nearly 58 and has been changing hands at over 70 on the black market.

Iraq is a convenient place for both countries to obtain dollars because business ties have been growing rapidly. Since the fall of Iraq's Sunni dictator Saddam Hussein, its Shi'ite-led government has brought the country closer to Shi'ite power Iran and to the regime of Syria's Bashar al-Assad, a member of the Alawite minority, an offshoot of Shi'ite Islam.

Iran, a major investor in Iraq since the 2003 U.S. invasion, said last July that it aimed to boost bilateral trade to $10 billion in 2011 from $6 billion in 2010.

Baghdad has rejected Arab League calls to impose economic sanctions on Damascus over its bloody crackdown on dissent, citing Iraq's own painful experience with sanctions during the Saddam era.

Although Iraqi money changers are making profits from supplying dollars to Iran and Syria, the trade carries risks -- they could get saddled with large amounts of rials and pounds just before fresh devaluations. This prospect is now deterring some of the Karrada merchants.

"If someone offers me Iranian currency, I won't buy it any more," said Alaa al-Shimary at his exchange shop in the district. "I just do not know the next morning what will happen to its value...it's a big risk."

In the southern Iraqi city of Najaf, some merchants now refuse to accept Iranian currency from travelers, preferring the safety of demanding dollars, which are still widely used in Iraq.

The central bank says Iraq's large foreign reserves, which have risen to a record $60 billion on the back of high oil prices, will shield it from any damage to its financial system on the national level.

Dollar sales in any case fell off somewhat in January as the central bank tightened enforcement of regulations used to fight money-laundering; sales on Tuesday were $201 million compared with $252 million at the start of the month.

Any reduction in dollar supplies would be a blow to the thousands of Iranian pilgrims coming daily through the border with Iran in Iraq's Wassit province, on their way to Shi'ite shrines in the southern Iraqi holy city of Kerbala. The pilgrims are greeted by informal money changers in a dusty border park.

"The sharp decline of the Iranian currency price has forced us to double the travel costs between Kerbala and the border, and this created many problems for us and the pilgrims," said Iraqi driver Zaid Raheem. "Because of that we decided not to receive the Iranian currency any more."

(Additional reporting by Suadad al-Salhy; Editing by Andrew Torchia)

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.



×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.