Central Bank of Iraq to set new strategies to unify exchange rate

[yota691]

Central Bank of Iraq to set new strategies to unify exchange rate

11/09/2012 13:12

BAGHDAD, Sept. 11 (AKnews) - An official from the Central Bank of Iraq (CBI) revealed Tuesday the bank is preparing new strategies to unify the exchange rate of foreign currency in the country, noting that it is seeking to invest the amounts spent to serve the economic stabilization plan.

The deputy governor of the CBI Muzher Mohammed Saleh did not comment on the new strategies.

Mohammed said the CBI is mainly responsible to maintain the economic stability.

He said there are emergencies like regional and internal problems that affect the currency exchange rate.

The Council of Representatives decided last month to form an investigation committee, led by the deputy for house speaker Qusay al-Suhail and including the heads of economy and finance committees and chairman of the Supreme Audition Board, in order to inspect the bank transactions on currency auction sale.

The main task of the CBI is to keep the price stability, implement the monetary policy, including exchange rate policies, and manage the reserves of foreign currency in addition to regulating the banking sector.

By Raman Brusk

RN/LL/AKnews http://www.aknews.com/en/aknews/2/325789/

[hammer911]

Nice article Yota!!!! This sounds very promising... GO RV!!!~~~

[yota691]

This Line doesn't add up to a LOP: noting that it is seeking to invest the amounts spent to serve the economic stabilization plan.

[Butifldrm]

This Line doesn't add up to a LOP: noting that it is seeking to invest the amounts spent to serve the economic stabilization plan.

I agree yota. inflation 7% higher than it was a year ago, true inflation must be approaching double digits. They were suppost to release the gold coins this month and as far as I can tell have not. So what else can they do, but raise interest rate, or increase the rate of their currency.

[RVPleaseToday]

It sounds to me like they are saying that in light of the problems in Iran and the internal political problems within Iraq, they are studying ways to keep the exchange rate stable. Good luck with that, as the political situation within Iraq seems to be growing worse, not getting better.

[Carrello]

This Line doesn't add up to a LOP: noting that it is seeking to invest the amounts spent to serve the economic stabilization plan.

My two fils on it: the cost of printing and coining the new currency will pay for itself and advance the economic stabilization.

[Elixirbaby]

Central Bank of Iraq to set new strategies to unify exchange rate

11/09/2012 13:12

The deputy governor of the CBI Muzher Mohammed Saleh did not comment on the new strategies.

hmmmmmmm

[sandstorm]

This Line doesn't add up to a LOP: noting that it is seeking to invest the amounts spent to serve the economic stabilization plan.

This line doesnt add up to any massive rv. the central banks primary function is to maintain price stability. Theres nothing stable in a move from 1166 to .86 cents. it depends on how you look at it

Edited September 11, 2012 by sandstorm

[yota691]

This line doesnt add up to any massive rv. the central banks primary function is to maintain price stability. Theres nothing stable in a move from 1166 to .86 cents. it depends on how you look at it

I just know from experience, when I invest into something. I do it for $$$, Profit. But that word here in the USA, is Like you didn't Build That!! RJMO

[AkinNAUY]

This Line doesn't add up to a LOP: noting that it is seeking to invest the amounts spent to serve the economic stabilization plan.

I like that yota... That statement stood out to meh! Nice Nice Nice...

[SWFloridaGuy]

Thanks Yota.

[jpdinar]

Thank you Yota for all your postings!

[Dalite]

I agree yota. inflation 7% higher than it was a year ago, true inflation must be approaching double digits. They were suppost to release the gold coins this month and as far as I can tell have not. So what else can they do, but raise interest rate, or increase the rate of their currency.

They can

raise interest rates (slows the economy)

Contract the money supply (adds value to remaining currency)

Raise the exchange rate (enough to offset inflation) and continue to increase the Foreign Reserves to back the increase.

When there is more money than products available to purchase, the items cost more. (inflation )

Until Iraq can start to produce (agriculture, textiles, industry, tourism), they will be locked into imports.

Along with this, they are limited to oil exports to pay for everything, and the price is too volitile to make accurate economic predicitons.

This makes balancing inflation against production, money supply, imports and reserves very difficult.

A guess would be that they will make small increases in the exchange rate, like they did to increase the rate from 4000:1 to the current level of around 1166:1 ; accompanied with Currency Auctions to increase the Foreign Reserves.

They can move toward 1000:1 as a combo of control of inflation and preparing for parity with the dollar.

[unirod]

Last week I got a phone call from GID Associates. (I have purchased Dinar from them in the past) They were offering a 5% discount on any new orders. I thanked them but I was not interested because if I invest more, it will always be electronic Dinar.

My point is that I believe specials are going to be more frequent and deeper in discounts because the orders are drying up. Potential investors are sick of all the B/S, not only by the CBI, but the Finance Commitee, The GOI and Iraq in general. Iraq at this point has to give the Global Investment crowd a serious reason to invest!...IMO

THX Yota!

[sandstorm]

I just know from experience, when I invest into something. I do it for $$$, Profit. But that word here in the USA, is Like you didn't Build That!! RJMO

Well lets hope obama doesnt find out. cuz...you know...you didnt earn that rv. Obama would love to take all our money to fund more and more redistributive programs.

[Reelemfast]

Now this is interesting, i wonder if that is all of it??????

Looks like it's cut short, let me add some more to that message.

Someone call 911..........lol

[atlg]

I like that yota... That statement stood out to meh! Nice Nice Nice... Whats up "Scotty" where are you at now.

[TrinityeXchange]

i thought it apropo to post information covered in the 2011 budget thread concerning the exchange regime. i think it is essential for us as investors, along with a certain amount of emotional energy, to also understand the motivating factors behind why it is that the goi and cbi are OBLIGATED to perform. the news that we see in this thread must find its way back to some type of pact, agreement, policy, arrangement or the like. the more we are aware of those motivating factors, the more clarity it brings to our investment.

So's as long as Iraq is making progress toward monetary reform at the pace the IMF is happy with, they will continue receiving monetary support. As a matter of fact just yesterday we saw an article to this fact where IMF approved a “Seven-Month Extension of Stand-By Arrangement for Iraq”!

[The SBA had been scheduled to expire on July 23, 2012. The extension, which had been requested by the Iraqi authorities, will provide them with time to implement the policy measures needed to complete the combined third and fourth reviews under the SBA. The extension will, in particular, provide time for discussions on fiscal policies for the remainder of 2012 and on measures to improve the functioning of the exchange regime. ]

Please don't overlook that underlined portion from the article. What is an EXCHANGE REGIME? Got you covered my friends: An exchange-rate regime is the way an authority manages its currency in relation to other currencies and the foreign exchange market. It is closely related to monetary policy and the two are generally dependent on many of the same factors. - wikipedia

what we see here is really good information helping us to understand WHY the CBI must improve the functioning of the exchange regime. it is because they took loans from the IMF and the IMF has a strong interest in the CBI performing particular monetary management. kind of removes the guess work out of the equation doesn't it.

[zigmeister]

Wow Trinity great posts! Thank you for all of your research. A+ for you!

[Bongalow]

Last week I got a phone call from GID Associates. (I have purchased Dinar from them in the past) They were offering a 5% discount on any new orders. I thanked them but I was not interested because if I invest more, it will always be electronic Dinar.

My point is that I believe specials are going to be more frequent and deeper in discounts because the orders are drying up. Potential investors are sick of all the B/S, not only by the CBI, but the Finance Commitee, The GOI and Iraq in general. Iraq at this point has to give the Global Investment crowd a serious reason to invest!...IMO

THX Yota!

Funny you say that. I bought my first million (like a blind man pickin cottton)from GID in 05, and had to have been one of thier first customers..... I got no dang call... How ever in regards to your post..... If you are trying to be electronic, the only smart way to do so is with Warka, or the ISX... Pick your Poison... Could be FRUITFUL, could be FATAL...... Unfortunately, I have lost SNOW WHITE'S number....... Had it when I was a youngster....If it is disposable I tell you go for it.... They have paid me lots of interest, and with the telecom companies coming online... I say GO!!

Best Wishes to you and all of us!!

[SocalDinar]

Hello Yota Thanks

I Always like this type of article.

Leaves you hanging but in a good way!!

Go Shabs!!

[TLHUBER]

Last week I got a phone call from GID Associates. (I have purchased Dinar from them in the past) They were offering a 5% discount on any new orders. I thanked them but I was not interested because if I invest more, it will always be electronic Dinar.

My point is that I believe specials are going to be more frequent and deeper in discounts because the orders are drying up. Potential investors are sick of all the B/S, not only by the CBI, but the Finance Commitee, The GOI and Iraq in general. Iraq at this point has to give the Global Investment crowd a serious reason to invest!...IMO

THX Yota!

I feel that the less Dinar people buy the better chance that this investment will flourish. Supply and demand. Hell if I was Iraq and people where buying up my currency I wouldn't do anything either.

[DetroitDinar]

This line doesnt add up to any massive rv. the central banks primary function is to maintain price stability. Theres nothing stable in a move from 1166 to .86 cents. it depends on how you look at it

Well remember this is an artificial rate. The true rate was 3 and change. I'm not sayin it's going to be 3 I'm jut sayin this is not the true rate