Finance committee warns of “deterioration” of Iraqi economy

[NB2D]

10/04/2012 13:01 BAGHDAD, April 10 (AKnews) – The finance committee in the Iraqi Council of Representatives today warned about the deterioration of the Iraqi economy due to the low exchange rate of the dinar to the US dollar, assuring that proposals are underway to get the country back on its feet.

Committee member Shawrash Mustafa said the committee began to study the deterioration of the Iraqi dinar exchange rate and put in place several methods to halt the crisis. The proposals will be delivered to the Ministry of Finance and Iraqi Central Bank (ICB).

Mustafa did not disclose details of the proposals, saying only that they are “enough to end the fiscal deterioration”.

“Many issues may affect the dinar exchange rate and declining economy, the most prominent is the political side and the effects of what’s happening in the region,” said Mustafa.

The Iraqi dinar yesterday registered the lowest exchange rate in three years against the US dollar at a selling rate of 1290 dinars per dollar.

The decline in the dinar began early last month after it was stable at a rate of 1190 per dollar.

The ICB issued strict procedures on selling hard currency to Iran and Syria due to the international sanctions imposed on the two countries. The ICB last month denied media reports that it stopped selling foreign currency as a measure to protect the Iraqi economy due to the political crisis in the country.

The ICB is responsible for maintaining price stability, implementing monetary policy and regulating the banking sector.

By Raman Brosk

RN/DM/AKnews

http://aknews.com/en/aknews/2/300771/

[crusher]

They just need to RV the currency to a new high to sort themselves out...and us as well.........

[Mommyof3boys]

I know that WE know this but it is nice to hear them say it

Finance committee warns of "deterioration" of Iraqi economy

10/04/2012 13:01

BAGHDAD, April 10 (AKnews) - The finance committee in the Iraqi Council of Representatives today warned about the deterioration of the Iraqi economy due to the low exchange rate of the dinar to the US dollar, assuring that proposals are underway to get the country back on its feet.

Iraqi dinar, Iraq moneyCommittee member Shawrash Mustafa said the committee began to study the deterioration of the Iraqi dinar exchange rate and put in place several methods to halt the crisis. The proposals will be delivered to the Ministry of Finance and Iraqi Central Bank (ICB).

Mustafa did not disclose details of the proposals, saying only that they are "enough to end the fiscal deterioration".

"Many issues may affect the dinar exchange rate and declining economy, the most prominent is the political side and the effects of what's happening in the region," said Mustafa.

The Iraqi dinar yesterday registered the lowest exchange rate in three years against the US dollar at a selling rate of 1290 dinars per dollar.

The decline in the dinar began early last month after it was stable at a rate of 1190 per dollar.

The ICB issued strict procedures on selling hard currency to Iran and Syria due to the international sanctions imposed on the two countries. The ICB last month denied media reports that it stopped selling foreign currency as a measure to protect the Iraqi economy due to the political crisis in the country.

The ICB is responsible for maintaining price stability, implementing monetary policy and regulating the banking sector.

By Raman Brosk

RN/DM/AKnews

http://www.aknews.com/en/aknews/2/300771/

[MANNY99]

UrUrgent meetings to curb the deterioration of the value of Iraqi dinar

Revealed the Finance Committee in the Iraqi parliament for a meeting between the Commission and the CBI and Director General of the State banks to curb the deterioration of the value of Iraqi dinar against foreign currency as well as the development of solutions urgent as what she described as "attack" on the Iraqi economy. The Iraqi dinar has fallen to record low yesterday against the U.S. dollar when the price of the Iraqi dinar exchange 1290 to the dollar.

And bankers expect to see the coming days, a rise of the Iraqi dinar exchange rate against the dollar because of the actions taken by the Central Bank.Said committee member Najiba Najib told (UR) that "a meeting held yesterday between the Finance Committee and the Central Bank and general manager of the government banks to discuss the repercussions of the financial crisis and the depreciation of the dinar exchange Iraqi and a study at the Central Bank on how to control the issue of exchange."

Najib explained that "there is a strong demand for purchase of foreign currency traders and companies, and this goes back to that seen in the region, especially Syria and Iran financial sanctions."

Najib added that "the Iraqi situation, the unstable political and economic situation of one-sided, which depends on oil and all problems can be overcome by the parameters set by the Central Bank of Iraq." And Member of Finance Committee indicated that "the controls may not prevent the smuggling of currency and there may be offensive or improper intention towards the financial reserve of Iraq."

And revealed the answer to "take the central bank controls is to define the amount of funds that are sold or transferred, but there circumvent the issue, and every person has the transfer of more than 50 thousand dollars must be accompanied by a certificate from the Tax Department and management companies."

He holds many of the owners of banking companies in Baghdad, the Iraqi Central Bank responsible for the low exchange rate of the Iraqi dinar. The pro-Ihsan Al Sahab banking district of Karrada in Baghdad grouper's (Orr) that "the Central Bank of Iraq is responsible for the high exchange rate of the dollar against Iraqi dinar through the measures taken and that have limited or even got to stop the selling of the dollar."

He explained that "the majority of banking companies can not buy hard currency from the Central Bank of Iraq because of the complicated procedures developed by the Central Bank and even the measures developed by the complexity contributed to the economic situation rather than finding solutions."

And "We know that there was smuggling of hard currency to Iran, Syria, and the central bank lay hands on those who are in the process, not everyone carries responsibility."

The low price reflected negatively on the Iraqi dinar market in general, as markets are expected to clear up commodity prices. The director of sales markets, commercial center of the capital Baghdad, Ehsan Jamil's (UR) that "the prices of goods on the rise and thus located on the aspect ratio on the responsibility of the citizen."

He explained that "the dollar is getting difficult and complicated in Iraq and thus increased its value against the Iraqi dinar and this is something negative on the reality of the economy."

And that "all goods increased during the past few days and we expect to see a rise over the coming days that the government did not find immediate solutions for the Mhmlh provide hard currency in the markets."

The proportional amount of foreign currency offered inversely with the local currency in the currency markets, the available hard Iraqi dinar exchange rate is high.

The crisis has its roots in the Iraqi Central Bank and control over the financial liquidity of foreign currency to the measures taken by the bank last month to curb the smuggling of hard currency to neighboring countries.

The international community imposed economic sanctions on Syria and Iran, which prevented these countries from exporting Nafthma to the west.

http://www.uragency.net/2012-03-11-16-31-52/2012-03-11-16-33-57/655-2012-04-10-17-51-58.html

Edited April 10, 2012 by MANNY99

[TheArtistFormallyKnownAs]

8 )

[MANNY99]

They have to do something ASAP

[Butifldrm]

I've heard in the coming days for months now, but for some reason I feel this time, Najib, might be telling the truth! I missed the UN meeting. But, from what I have read, the UN's determination of the situation in Iraq, has either been sugar coated or the majority of news coming from Iraq appears to be smoke. Honestly, Iraq's time UN sanctions, may be up. Anyway, GO RV.

[bamagirl]

Thanks for posting Manny.....things are looking good....go RV!!!!

[wealthhound]

This one seems pretty straightforward, thanks Manny

[FarmersDaughter]

So they are saying the value in country is 1290 dinars to the dollar and if you exchange more than $50,000, you have to report it and get a tax certificate? $50,000 divided by 1290 is $38.76. Really.....if you exchange less than $40 you are required to report it. Must be a rate change coming because that doesn't make any sense.

Very interesting! Thanks so much for the post.

Edited April 11, 2012 by FarmersDaughter

[Biker]

Has any of there talk and B/S made any since for the last couple of yrs thow.Who no what they will do now.

We mite be in luck i just looked i have 883 post, Thats a good Harley Motor lol, could be a good sign.

[Halo9678]

Oh Heaven's no... The Dinar is under attack!!!! Must be all of those American Dollars making the dinar effectively worthless. Something, oh something, must be done about this or all is lost. I know... Revalue the dinar ABOVE the rate of the dollar! And do it quick because a new financial quarter is going to begin soon and the GoI/CBI has just got to be on the same sheet of music on this one. ASAP... Don't wait for ASAP, do it YESTERDAY!!!!

(SN: There is a good deal of sarcasm in my post. I appologize IF I may have offended anyone. Thanks)

[Mommyof3boys]

Urgent meetings to curb the deterioration of the value of Iraqi dinar Revealed the Finance Committee in the Iraqi parliament for a meeting between the Commission and the CBI and Director General of the State banks to curb the deterioration of the value of Iraqi dinar against foreign currency .....

And bankers expect to see the coming days, a rise of the Iraqi dinar exchange rate against the dollar because of the actions taken by the Central Bank.Said committee member Najiba Najib told (UR) that "a meeting held yesterday between the Finance Committee and the Central Bank and general manager of the government banks to discuss the repercussions of the financial crisis and the depreciation of the dinar exchange Iraqi and a study at the Central Bank on how to control the issue of exchange."

http://www.uragency.net/2012-03-11-16-31-52/2012-03-11-16-33-57/655-2012-04-10-17-51-58.html

Sounds great to me! Wait.... how long do you think is "the coming days"? I think its gotta be soon, but for sure hoping for this year!!