An Iraqi scientist: huge amounts of Iraqi currency held by traders in Iran and Syria and Turkey

[alan_coaks_3]

2 - 21 - 2012

Baghdad: Iraqi dinars and the expert revealed researcher in the area of financial sector to Mahmoud alfkiki that large amounts of cash/Iraqi dinar bloc, Turkish dealers located in possession and the Iranians and Syrians because trade, noting that the consequences of the fall in the value of the dinar in the interests of third parties. He alfkiki in the study got (JD) "Iraqi dinar has witnessed over the past few weeks a decrease in value it purely price dropped from $ (0.0008333)/dinars in early December 2011 (0.00077) $/dinars in early April 2012. Meaning the number of dinars per dollar of (1200) JD/$ in free market (1300) JD/dollars during the period. The exchange rate was $ 3.20 years 1970/BD any more than the current price of more than four thousand times (almost "). (3.2 ÷ 0.00077 = 4185 times). Reasons for the decline in the new dinar: Iraq still to Cross Border trade across the border by his Trade with neighboring countries such as Iran, Syria and Turkey. The local currency continues BD Toman and lire cover "whatever" part of that trade along with the dollar. And what is happening now is an active cross-border trading (spend Claire (f) Haj Omran) in Kurdistan is a vivid example of this trade. This resulted in the accumulation of reserves great Iraqi cash exchangers and merchants Iranians, Jordanians, Syrians and Turks and others. These have enhanced the acceptance of Iraqi dinar by confidence over the past five years, never before over a quarter of a century ago. And increased cross-border flow of Iraqi dinar the Central Bank a few months ago (a step not calculated results) that allowed itself to be a tool and a policeman "but the tax body to make enforcement of credit and remittances importers responsible Iraqis" to obtain prior approval of the General Commission for taxes. It caused an increasing flow of Iraqi currency vis-à-vis neighbouring countries and increased in availability outside the border. The cross-border trade in local currencies is booming between the countries of the world, and like what was adopted by the Convention between the Governments of Turkey and Iran from trading in local currency for the two countries, as well as in Malaysia and its neighbours PIM using local currency. Then the imposition of the economic embargo on Iran and Syria may reduce dollar reserves for those two countries turn traders to obtain Iraqi market dollar Iraqi dinar users available in abundance. Bringing the display stream what Sadr Concord dinar ydakhh c.b.i. dollars through his auctions. It wire dinar in that fluid in the ductile behaviour, declined in pots inside Iraq to equal its price at the border. And with all the high and low of the dollar to dinar when Exchange rate levels respond border inside the border exchange rate fell from normal levels of 1,200 dinars/low exchange rate to the dollar after the flow of large amounts of the dinar, which had two neighbors toward dollar-buying. It should be noted that this phenomenon (the phenomenon of the current decline of the dinar) is a natural phenomenon arising from market price adjustment mechanism in accordance with the "forces of supply and demand and are not pathological. However, the magnitude of the phenomenon is that people here in Iraq still memories of what happened to their dinar in the 1990s stuck in their minds. People still feel the pain of what happened in the 1990s. They do their minds that this may be their concern as those so overwhelmed. Many of them began to shift from the dollar to dinar or documenting his rights. What bone of this phenomenon is that concerns airspace scowling face between America and Iran and what repercussions might lug in the Strait of Hormuz where it passes through the largest portion of our oil exports and revenues in dollar terms. This phenomenon is bone "that all this popularity was at a time when the Central Bank-led campaign for abolition of the zeros of the Iraqi dinar (increased panic and uncertainty of the future) at the time encouraged the Bank to repay amounts of remittances (reaching Iraqis abroad) instead of dinar" for the dollar, this increased the fears of people but that the decision of the last bank to address it grants ($ 10,000) for the traveler to rate (1148) has increased the disruption instead "to placate him, the Bank in disordered like carrying a ladder" then but The offer. As far as prices of imported goods, when the low exchange rate of the local currency of the country, the price of goods imported into the country devaluated its currency rise by contrast, since the buyer will need to pay local cash units than was required before falling for the same amount of purchases. The depreciation of the currency of the country with lower exchange rate against foreign currencies may be deliberate policy or destination country's monetary policy to a number of things including promotion of the country's exports. An example of what the Government of South Korea in 2011 reduced to devalue the (Wen Won) it benefited the Korean export industries such as automobile and shipbuilding and electronics, it is "important" to enable Hyundai Korean (for example ") to sell million cars in the u.s. market in that year. It is unprecedented that achieved in the market before, have place Nissan and Hyundai Japanese (in high exchange rate) and removed from the count, which was the first, fifth and sixth respectively in that market. But on the other hand, the Korean Government was surprised (as a result of this policy) unless expected, protests to consumers occasionally in the streets of the capital Seoul says that their sign on the right side of the picture below (the Government is sacrificing the interests of 99% of the people in favour of one percent). In the following graphs shows figures rising consumer price index (figure on the left) versus falling real wage index of purchasing power of Korea during 2011 working period of Korean currency exchange rate decrease (figure on the right). May take the form of devaluation of the currency of the country, "another is to compel the State wishing to devaluation of one or more other States to raise the value of the currency of that country. It is what the dispute period American commercial (Trade Friction) with Japan and Germany (Deutsche days) the dollar fell between 1985 and now a third former eight-fold exchange rate "of 220 Yen to the dollar to 80 Yen to the dollar, the yen and the dollar fell. The value of the dollar against the yen today in 2012 is one third of its value was in 1985 in the sense that it has two-thirds of its value against the yen. Today China American pressure to raise the value of its currency and thus increasing American exports to China and China's exports decline of America. America pursues this course as a protective wire products and adjust tilt trade balance with two offset by fees and restrictions against exports from Japan kmerkih protectionist and China, in contrast to encourage exports to those countries. The same objective to be achieved if America had a "direct" to dollar currency (like Korea) but don't want to ignite war reduction of currencies. They do not do so for a number of considerations which are carrying the banner of liberalization and reduce restrictions alkmerket. They do not want to complete other policy then comes is like. Then apply the poet: no Tinh create comes like shame on you if you did great. Iraq paradox: while the depreciation of the dinar burden adds "kelvoia" to consumer prices, the House wants to approve tariff law "as a alkmerket to add burdens to other people and voih breeds (" pressure pressure) or in other words (Vuk itch bench)) affected by the beneficiaries of the low exchange rate of the Iraqi dinar current decline of the dinar against the dollar have access to categories of people and the loss of other categories in Iraq as follows: Affected: owners: dinar banknotes savings after increased confidence of savers in dinars (during the years aalakhirh) paid that confidence numbers "significant shift in savings that retain much of their savings in dinars. These merchants and factory and others. When will need to convert their savings into dollars will get less dollars than if they could save their money in dollars. Contractors contractors prices its dinars: these receive dinars. But most or much of their expenses and their purchases of domestic or imported are normally dollar. Including amounts of purchases of foreign origin imported material, as is the case of builders and construction and construction materials buying and constructive imported. When presenting their bids had put their agreements, exchange rate costs before depreciation of the dinar, and now they must pay the new rate of Exchange at this loss. When receive their contracts after the handover remains benefits work will assume office JD rewarding dollar less than that which prevailed when getting started with work. C. the lessors property contracts and leases its dinars: while their purchases everyday "prices are high his dinars. D-tenants real estate rental dollar but they have his dinars: DMI Ahmed now that yshtro us at a higher price than before. E-producers: they will sell their products at prices its dinars while buying inputs their dollar prices. but they have to raise prices of option products which makes them susceptible to low volume sales and retired. H-poor covered by social welfare programmes: tongue would be unchanged (فوگ ِDARD God hit me with mignh) as dub poet popular Mullah Aboud Al-karaji. I. lenders: dinar loans with dinar banknotes they will recoup their payments dollar less than dollar amounts that prevailed on lending. K – dollar borrowers where they will pay their debts: at maturity of dollar purchasing power his dinars less than strength in the history of lending, dollar payment than $ lending. L-staff and workers wages his dinars and earners: these are less dollar purchases basket size than achieve the same amount of salary or wages when converted to dollar (for the purpose of Exchange in local markets). It is well known that about 90% of the value of our people in Iraq purchases are for imported products. And you would not have intervened grocery store or Mall and find at least 90% on its shelves of goods which are imported goods. These higher prices when Iraqi monetary depreciation and high price paid towards the dollar. This damage often magnified "with ongoing gradual withdrawal of the State from the ration card system. Beneficiaries: a. bankers and banking offices and remittance companies: these Central Bank dollar buying is right confined them at a price that dinars to the dollar 1148 and they are selling the dollar b 1200, 1300 now sell b, low price Iraqi dinar here had increased profit margins of these groups, note that the Central Bank exchange offices are allocated an amount of 250,000 dollars a week at the rate of Exchange and is 1148, And the Central Bank selling inventory to these categories represents an alliance between citizens without money and politics in Iraq (Business-Politics Alliance) where able men categories listed with their sites and centres for decision makers on this feature is restricted sales of Central Bank without the rest of the people. B-dollar savings holders: buy JD would be more "than they were offered the same amounts of savings. Officials and Iraqi dollar action: they will assume office the same pay but with greater local purchasing power and a greater number of dinars will vs. dinars where quantity of dollars. D-dinar and their borrowers and savings in dollar: being and benefits they will pay their debts amounts cheaper dinars ". E-exporters: Iraq export industries and activities other than oil (oil not included in our present lack of relationship), including dates and their derivatives, wool, leather and the intestines and rural industries and home products from carpet and restoration of agricultural and industrial products and other export services and activities ... These industries and economic background activities links is thousands involved in processing the input. Although the amount of such annual exports is within 1% of the total exports from Iraq but also important. " That price "export" ($ 2,200) dollars per tonne from wool washed before deteriorating Iraqi dinar Iraqi source download (2.64) million dinars. But the deterioration of the exchange rate ($ 1,300 dinars) has been downloaded (2.88) million dinars, an increase of 1,000 dinars (240) per ton on price of diamonds before deterioration. Dates and derivatives industry will benefit from the same phenomenon (rising price of Iraqi exports of diamonds). As well as other export products. Wim does mghzwa these industries and activities to raise the prices of their services or their workers ' wages. So that wage levels are usually slower in vulnerability factors of demand and supply prices there is an interval or the so-called English Time lag between variables. Workers in these industries and processors with inputs became firmly between hammer and terrible wage inflation caused by the depreciation of the dinar. On the other hand that the purchases of raw materials and export industries to highlight dates and wool are laundered and seasonal purchases one season and once per year. Rough so the fleeces in the spring (March/April) and is (season cut wool). Raw and the dates in autumn (September-October) season harvest dates. Which means that these industries were purchased material on their inputs have been dollar $ 1,200 dinars. They now benefit after falling dinar. According to the information available that the bulk of cash reserves for these industries, as for other export industries and non-export in dollar savings reserves, Iraq is. In Iraqi Tiger industries (largest surges in Iraq (mixed, special governmental)) is the amount of cash reserves in dollar about two-thirds of the market value of the shares. It is striking that the Ministry of Commerce owns (40%) Of the capital of this company. The Ministry of trade, this company will benefit from the new exchange rate. As mentioned the importance of any damage or economic benefit in these industries export evident given the economic background and links the number of employees and local costs. Overall, the decline in the value of the dinar is a comprehensive public harm in Iraq to bump up the cost of imported goods worth which constitute 90% of purchases of people referred to above also placed ". Notes that the low price in the case of Iraq Dinar be beneficial people "and hurt others. The continuing escalation in the terrible prices in the 1980s and 1990s in Iraq not because of the increase in the quantity of money supply. But the fact that those increases were without real balance or offset by the strength of a national economy and domestic product or national income supports, as well as "what was an external trade restrictions and transfer was the conduct of the State in the issuance of currency such as the behavior of the merchant issued instruments" without balance meets at face value, this reminds us of the day asked the military industrialization Minister (a Sunni in the mid-1990s) on the amount of the cost of creating a bridge in Baghdad and floors is the biggest and greatest bridge was established, said (it's expensive car payload Pick-up truck of paper with ink) – Hey barrels BLACHE!!!. And not the amount of cash in circulation in a country like Japan is more than the amount of Iraqi currency (as an absolute number) in circulation. In the post-war period, the balance meets but source prices of imported goods is the depreciation of the Iraqi dinar for the reasons mentioned previously, "in addition to the high costs. However go back and say that the phenomenon of current ethnic devaluation was a natural phenomenon and not satisfactory and to restore balance.

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[zigmeister]

Thanks for the article, I agree, restore the balance.

[Wassaap]

I suddenly have a headache...I call them "text headaches".

[TheArtistFormallyKnownAs]

I suddenly have a headache...I call them "text headaches".

When there is alot to take in like that I just paste it in to Google Translate and press Speak.

[Frogee]

When there is alot to take in like that I just paste it in to Google Translate and press Speak.

Now you tell me......thanks that is a great tip

[Wassaap]

When there is alot to take in like that I just paste it in to Google Translate and press Speak.

Oooo...I'm gonna try that right now. Don't know if this cantankerous old machine will do it... (It's not the operator, I know) But that's my next project. Thanks TAFKA!!

[bostonangler]

"huge amounts of Iraqi currency held by traders in Iran and Syria and Turkey"

This cannot be good.... These sanctioned nations excluding Turkey would be able to cash in and enjoy great wealth.... This would seem to be a problem for the rest of the world.... And for us... JMHO

B/A

[easyrider]

"huge amounts of Iraqi currency held by traders in Iran and Syria and Turkey"

This cannot be good.... These sanctioned nations excluding Turkey would be able to cash in and enjoy great wealth.... This would seem to be a problem for the rest of the world.... And for us... JMHO

B/A

did you think they didnt have a lot of dinar? this is expected come on they are neighboring countries and can assure you also Kuwait has lots of dinar as well. Iraq has to do something.

Edited April 21, 2012 by easyrider

[bostonangler]

did you think they didnt have a lot of dinar? this is expected come on they are neighboring countries and can assure you also Kuwait has lots of dinar as well. Iraq has to do something.

This post has been edited by easyrider: Today, 04:27 PM

Perhaps allowing wealth to pour into these countries is part of the plan and will help to unseat the current regimes.... Let's hope it is something positive.... I do believe the fall of dictators and kingdoms is well underway... I guess as much as I try to read the positives in all the news, I can't help seeing some of the negatives as well...

B/A

[easyrider]

did you think they didnt have a lot of dinar? this is expected come on they are neighboring countries and can assure you also Kuwait has lots of dinar as well. Iraq has to do something.

This post has been edited by easyrider: Today, 04:27 PM

Perhaps allowing wealth to pour into these countries is part of the plan and will help to unseat the current regimes.... Let's hope it is something positive.... I do believe the fall of dictators and kingdoms is well underway... I guess as much as I try to read the positives in all the news, I can't help seeing some of the negatives as well...

B/A

Yea, i understand but you have to look at it this way, theres really no way they can stop that i mean im sure the CBI expected this to happen anyhow because they are there neighbors.

[Halo9678]

I agree with Easy on this one. Neighboring countries should be expected to have each others currency. It makes it easier to do cross border trading. The sanctions against Iran and Syria are definitely contributing to the absorption of dinar AND dollars with the CBI being the primary broker. As long as Syria and Iraq remain under sanction, the dinar will continue to be exported. It's a simple business tactic, plain and simple. What this article is doing, IMHO, is explaining the side effects of the current situation. A bit long winded but point taken. This is almost as indepth as the Iraqi explanation of where the dinar was, where it is, and the plans for it in the future. (The article actually cited the Marshal Plan). I figure this is also a part of the 'educating the people' that the CBI began months ago. Considering that the education is all but complete and becoming redundant, I figure it's about time to move to the next phase. June is supposed to be a pretty big month for the GoI/CBI so just hang on a little while longer...

[TheArtistFormallyKnownAs]

Now you tell me......thanks that is a great tip

No prob, just paste it in to 4 or 5 groups, it will get stuck sometimes.

[Double R]

Well beings that Iran recently had their swift codes disabled-not sure how anyone in that country would benefit from an RV.

[FOUNDIT]

During the RV the borders will be closed at which time many smugglers will be caught and IQD confiscated.Iran cannot participate in the RV as their swift code's were suspended. So bordering countries will benefit but there will be many red flags with cash in. Over their you will be subjected to a intense screening process and watched very closely for quite some time. Many will be caught and jailed that have links to terrorist or smugglers. They better start building some more prisons.....

Edited April 21, 2012 by FOUNDIT