Economist: Value of IQD in decline since Shabibi’s ouster; Expect USD supplies to increase if GOI keeps policy

[JayLee202]

Economist: Value of IQD in decline since Shabibi’s ouster; Expect USD supplies to increase if GOI keeps policy

Posted: January 31, 2013 in Iraqi Dinar/Politics

Tags: Central bank, Central Bank of Iraq, Currency, Economy of Iraq, exchange rate, Iraq, iraqi, Iraqi dinar

On: Wednesday 01/30/2013 07:46 pm

Iraqi economic expert said, “The current monetary policy pursued by the Central Bank of Iraq has led to a reduction in the value of the Iraqi dinar against the dollar, compared to what it was before the issuance of an arrest warrant former central bank governor Sinan al-Shabibi.

And between economic expert, who declined to be named “The Iraqi dinar exchange rate before Fabricating a crisis the Central Bank arrived in price below its current price, stressing” that the bank could not maintain the value of its price old despite raising dollar sales even arrived last Sunday to about $ 220 million, compared with sales ranging between 175 – 200 million dollars before the decision to change Shabibi.

And linking Iraqi expert among central bank sales and the amount of funds needed by the State to cover its operating budget from the salaries and financial obligations, and said that Iraq was able raise the value of the Iraqi dinar exchange rate 1187 dinars to the dollar if they are not to interfere in the management of the value of the Iraqi currency , but the government policy blundering and is an expert approved by the Iraqi market mainly on imports from abroad prevented raise the value of the Iraqi currency, especially if the dinar remained stalled at the rate of 1230 dinars to the dollar, he said, adding that this increase cost the Iraqi economy huge losses worth hundreds of millions of dollars a year.

He asked an economist why Fabricating crisis Shabibi, who was accused of corruption, while continue the central bank to follow the policies in the sale of foreign currency?

Expected to have the central bank to raise the value of the supply of the dollar against the continuing decline in the value of the Iraqi dinar in the case of the government’s refusal to obey to the wise management dinar exchange rate in the near term and medium term.

http://bit.ly/WAJ2Ht

[smee2]

Great News! Just what I needed and wanted to hear first thing in the morning ... well in my morning this is first thing.

If the Iraqi Dinar is worth less (not to be confused with worthless) will the cost of purchasing it in the rest of the world (i.e. US & Canada) also go down? I rather doubt it but if anyone has an experience relating to that I would love to hear (read) it.

Going out to the garden now to eat worms ... oops ... ground frozen ... have to go do something else disgusting to balance this bit of news.

smee2

[TheArtistFormallyKnownAs]

And they now have changed the Governor on the CBI's website .

http://www.cbi.iq/index.php?pid=TheCbi

[staunch]

Ok, this confused the crap outta me. Sounds like they are saying the value of the dinar declined because of the fact they tried to arrest shabibi.

What did I miss here?

[dontlop]

as long as the cbi keeps selling dinars every day at 1166 the exchange rate will not change

Announcement No. (2305)

The latest daily currency auction was held in the Central Bank of Iraq on the 31-Jan-2013. The results were as follows:

Details

Notes

Number of banks

27

Auction price selling dinar / US$

1166

Auction price buying dinar / US$

-----

Amount sold at auction price (US$)

187,299,000

Amount purchased at Auction price (US$)

-----

Total offers for buying (US$)

187,299,000

Total offers for selling (US$)

-----

Edited January 31, 2013 by dontlop

[SocalDinar]

Well in July, August and most of September the market price was hovering at 1250. SHABS currency auctions were commonly 250 k or larger.

Only till SHABS last month did Iraq see an increase to 1198

Today's market price is 1225 so I'm not sure what this economist is talking about

Thanks Jaylee202