Central Bank decides to diversify fiscal policy in 2013

[yota691]

Central Bank decides to diversify fiscal policy in 2013

Monday, September 17 / September 2012 09:03

[baghdad - where]

Iraqi central bank decided to diversify its financial policies in 2013 through the sale of gold and government bonds and foreign citizens.

The deputy governor of the Central Bank of the appearance of Mohammed Saleh told all of Iraq [where], "The Central Bank has decided to not only his financial selling foreign currency from the dollar to the banks, but will have a monetary policy variety in 2013, through the sale of gold and government bonds and foreign directly to the citizen. "

He added that "the sale of bonds and gold to home will not be a substitute for foreign currency, but falls within the new monetary policy, which could be sold by the citizen or the bank to liquidate financial value and benefit."

He explained that "the Central Bank is granting called / leave, investment funds /, a company issued its instructions, and function to promote financial transactions of gold bullion and bonds to the citizen, and this company is non-banking financial institution."

The Finance Committee in the Iraqi Council of Representatives, called for the central bank to cut the foreign currency exchange rate, to reduce the high prices of goods in the Iraqi market. Ended 55

http://www.alliraqnews.com/index.php?option=com_content&view=article&id=52140:-2013&catid=37:2011-04-08-17-25-57&Itemid=56

[hammer911]

Great post Yota..... A lot of great news this last week.. Im thinking everything is falling into place!!!!!!

[John in Kuwait]

"Iraqi central bank decided to diversify its financial policies in 2013 through the sale of gold and government bonds and foreign citizens."

How many Dinars to buy a foreign citizen?

[winterset]

Thanks yota. Bonds and gold will not raise in value like the dinar, just another way to pull in those large notes.

[4aprofit]

Why would they even consider fooling with Gold if they have a currency that would never be of any value?...Any country that has ever had much dabbling in Gold generally has a lot of wealth!...Something to surely think about?

[SocalDinar]

GM Yota, Thanks

So now they want to sell foreign Gov Bonds?? The ponzi scheme continues. The Fed needs new investors to feed the top of the pyramid.

Bernanke knows that the USD is in demand in Iraq so what better place to find investors of these junk Bonds?

Gold is money, and Bonds are just paper.

And of course this is just my opinion.

[Dalite]

Thanks yota. Bonds and gold will not raise in value like the dinar, just another way to pull in those large notes.

As long as the dinar is pegged to the dollar, it is not economically probable for it to out-perform gold.

The price of gold represents the buying power of the currency that it is measured against.

The only way for the currency to gain against gold is for it to become stronger, more limited in circulation, or a higher value.

A higher value destroys the country's export capabilities - in Iraq's case, oil is purchased in dollars. If the Dinar goes up, the amount of dollars it is equal to goes up, and it takes more dollars to purchase oil.

When the dollar has less purchasing power, the countries that are pegged to it lose value relative to the price of gold, as it takes more of their currency to purchase an ounce.

But they have the advantage of lower export prices, which makes their goods more desirable.

If your Bling cost a dollar, and my Bling cost two dollars, and they both came from the same source, who do you think will become the King of Bling first?

While not impossible, it is extremely unlikely that the IQD will ever out perform Gold; especially when 95% of Iraq's existence depends on Oil exports.

If Iraq sells bonds that are tied to the Dinar, they will increase in value if the Dinar increases in value. When you add in interest; it will always place them at a higher value. Otherwise, there is no incentive to purchase them.

It is interesting to see how this all works together. I believe this is why economics is sometimes referred to as " The Dismal Science" - too many effects from too little cause.

If the Dinar unpegs from the dollar and hitches up to another currency, your argument may have merit.

But that currency cannot be linked to the dollar.

At this stage of the game, that tends to limit the chances.

Again, not impossible, but highly improbable.

Also, any attempt to pull on large (or small) dinar notes just puts more USD on the street, which the CBI has made very public is against their plan to lower dependence on the USD.

They are currently discussing the sale of Gold Bullion to contract the money supply, but the CBI seems to be targeting USD; not Dinar.

Their financials, available on the CBI website show that the amount of dinar in circulation ( large bills and small bills) is increasing; not decreasing.

The Pumpers and Gurus can attempt to create an alternate reality to keep sales up, but they aren't too Sucessful in changing the laws of Mathematics.

All they are able to do is try to profit from selling Dinar, and put their followers crossways with reality when the follower repeats what the Pumpers and Gurus have taught them.

Never Say Never.

[CrappieShark]

My very small input into this is that Iran and Syria also Lybia now are hurting for dollars. TYhe dinar becoming equal to the dollar or even more so will drive up the desirablity of the dinar to these countries being sanctioned by the US. So it is a win/win situation for Iraq right now to RV. Not RD or Lop. The dinar will become the desired currency of the region instead of dollar. Makes perfect sense to me and describes the situation in ME to a tee. But I am only stating my opinion not saying I know this is what is going on. I feel like this is a huge factor right now. They (Iraq) keep saying they want the dinar to become desirable. This would do it and boost there economy. It has to have the blessing of the IMF and WTO though and that is the bump in the road. It looks like this is being handled though so I am excited for the first time in a long time.

[Carrello]

Here's your bonds, Zig.

CBI decides to diversify fiscal policy in 2013

Monday, 17 September 2012

Baghdad (AIN) -The Central Bank of Iraq decided to diversify "The financial policies in 2013 through selling gold bullions and governmental and foreign bonds to the citizens."

The Deputy Head of the CBI, Mudhir Mohamed Salih, stated to AIN "The Central Bank of Iraq decided not to depend only on selling the foreign currency of US Dollar for the banks but also to adopt varied fiscal policies in 2013 through selling the gold and governmental bonds directly to the citizens."

Salih pointed out that "The CBI is preparing to grant licenses for a company named Investment Funds Licenses to promote the financial transactions of the gold bullions and bonds to the citizens."

Earlier, the Parliamentary Financial Committee has called upon the CBI to decrease the exchange prices of the foreign currency to reduce the prices of the goods in the Iraqi markets. /End/

http://alliraqnews.com/en/index.php?option=com_content&view=article&id=18709:cbi-decides-diversifying-fiscal-policy-in-2013&catid=37:economy&Itemid=41

[zigmeister]

I have been waiting for them for a year.....now it seems they have arrived! Publicly anyway. Another way to bring people in the bank which the banks need big time. Amazing! I think this is very good news.

[TonyDownTheShore]

I'm ready to trade in my Dinars for bonds or gold, thanks for the post.

[zigmeister]

I hate to see this article go down, I think it is important because it reveals more of their strategy.

[Laid Back]

Looks like the CBI plan is: Managed float

[zul]

Here's your bonds, Zig.

CBI decides to diversify fiscal policy in 2013

Monday, 17 September 2012

Baghdad (AIN) -The Central Bank of Iraq decided to diversify "The financial policies in 2013 through selling gold bullions and governmental and foreign bonds to the citizens."

The Deputy Head of the CBI, Mudhir Mohamed Salih, stated to AIN "The Central Bank of Iraq decided not to depend only on selling the foreign currency of US Dollar for the banks but also to adopt varied fiscal policies in 2013 through selling the gold and governmental bonds directly to the citizens."

Salih pointed out that "The CBI is preparing to grant licenses for a company named Investment Funds Licenses to promote the financial transactions of the gold bullions and bonds to the citizens."

Earlier, the Parliamentary Financial Committee has called upon the CBI to decrease the exchange prices of the foreign currency to reduce the prices of the goods in the Iraqi markets. /End/

http://alliraqnews.com/en/index.php?option=com_content&view=article&id=18709:cbi-decides-diversifying-fiscal-policy-in-2013&catid=37:economy&Itemid=41

Come 2013 they are going international. Buying foreign bonds....

[Butifldrm]

Come 2013 they are going international. Buying foreign bonds....

GM, zul. I read a chat yesterday, which stated the Iraq would have to have an internationally traded currency to be able to buy foreign bonds. Could it be possible for Iraq to use USD, to buy these bonds and still not have an internationally traded currency? I'm not familiar with bond markets. I need to study more.