Strengthen the balance local curreny in international banks

[jupitergirl]

Finance Bader: Golden increase balance dinar to strengthen its position against global currencies

BAGHDAD / Mohammed Kazem

02/15/2013

World Gold Council revealed in its report issued by the global demand for gold for that Iraq had bought 24.1 tonnes of gold during 2012. The report noted that the world's central banks raised their purchases of gold over the past year 2012 record levels and the highest level since 48-year-old in 1964. Noting that Iraq, which raise oil production over the past year benefited from oil مداخيله in increasing its gold reserves, where he bought a CBI 24.1 tonnes of gold during 2012. A member of the parliamentary Finance Committee Abdul Hussein al-Yasiri: reserve there in the Central Bank Law old number (64) of 1976 and indicates that the government when issued Iraqi dinar must be covered up 70%, while foreign currency or gold, this law and end it that measured in gold as the precious metals accepted in all countries of the world. The Yasiri told (Badr): the government's drive towards enhancing its gold reserves, strengthen the balance local currency in international banks, the fact that the currency exposed to low from time to time, in order to raise its value against foreign currencies, which collapsed to the lowest levels because of politics clumsy followed by the dictatorial regime in currency printing in large quantities, which caused significant inflation in the Iraqi dinar discredit the international transactions. Yasiri: The reasons that prompted the central bank to talk about the process of strengthening the balance golden dinars aims to raise its position against foreign currencies directly, now the money supply around (34) trillion Iraqi dinars sum, and number limits (3) trillion, according to census coins to the Central Bank and who wishes downward to about a third in the case of high purchasing power and rates of foreign currencies the dollar and the euro and the pound sterling. The annual report for 2012 that «the value of global purchases of gold reached record levels in terms of financial value, reaching 236.5 billion U.S. dollars last year, and the size of 4405.5 tonnes of gold. The report said that consumer purchases of gold declined in the past year, but purchases of central banks and funds offset this decline, where they purchased these banks 534.6 tons of gold in the year as a whole, while the purchases in the fourth quarter of last year alone to 75.6 tons ». Noted analysts gold markets that the main reasons behind the record rise in purchases of central banks back to disorder exchange rate major currencies that make up foreign reserves to the world and fears of a «currency war» this year amid policies key countries in the Group of Seven to reduce the price of currencies to increase the competitiveness of its exports in the international markets. Another reason is due to these purchases analysts standard quantitative stimulus policies implemented by several global central banks led by the U.S. Federal Reserve Bank and the Bank of Japan (BOJ) and the Bank of England. It is known that the quantitative stimulus policies that lead to the deterioration of the exchange rate because it increases the money supply in the market. In this sense, a lot of countries around the world proceeded over the past year gold to hedge against this risk. According to the report of the World Gold Council, the five Arab central banks topped the list of the 40 central banks largest in terms of gold reserves is Saudi Arabia, which reached its gold reserves at the end of last year, 322.9 tons and represents 3.0% of total reserves. Lebanon reserves of 286.8 tons and represents 16% of total reserves, Algeria reserves of 173.6 tons and represents 5% of the total reserves, Kuwait reserves golden of 79 tons and representing 13% of total reserves, and Egypt reserves of 75.6 tons and represents 25% of the total Reserve. The report noted that the People's Bank of China (China's central bank) was one of the most active central banks buying gold as well as the Russian Central Bank. And reached the Russian central bank purchases over the past year about 75 tons, to bring the possession of gold to 1,000 tonnes, which represents 10% of the total reserves.

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[SocalDinar]

Thanks Jupitergirl,

First time I've heard this line. "according to census coins to the Central Bank and who wishes downward to about a third in the case of high purchasing power and rates of foreign currencies the dollar and the euro and the pound sterling."

[TrinityeXchange]

really good article with telling information. thanks for sharing. i want to highlight a few components important to me:

• The report noted that the world's central banks raised their purchases of gold over the past year 2012 record levels and the highest level since 48-year-old in 1964.
• the government's drive towards enhancing its gold reserves, strengthen the balance local currency in international banks, the fact that the currency exposed to low from time to time, in order to raise its value against foreign currencies, which collapsed to the lowest levels because of politics clumsy followed by the dictatorial regime in currency printing in large quantities, which caused significant inflation in the Iraqi dinar discredit the international transactions.
• Yasiri: The reasons that prompted the central bank to talk about the process of strengthening the balance golden dinars aims to raise its position against foreign currencies directly, now the money supply around (34) trillion Iraqi dinars sum,
• Noted analysts gold markets that the main reasons behind the record rise in purchases of central banks back to disorder exchange rate major currencies that make up foreign reserves to the world and fears of a «currency war» this year amid policies key countries in the Group of Seven to reduce the price of currencies to increase the competitiveness of its exports in the international markets.
• It is known that the quantitative stimulus policies that lead to the deterioration of the exchange rate because it increases the money supply in the market. In this sense, a lot of countries around the world proceeded over the past year gold to hedge against this risk. According to the report of the World Gold Council, the five Arab central banks topped the list of the 40 central banks largest in terms of gold reserves

1. It is very insightful to see that the central bankers on a global scale are hedging against a possible future event. Perhaps this is something we should all take note of and quit supporting the "cash for gold" campaigns we see launched by corporations all over everywhere
2. They tell us here that the money supply quantity is what inhibits the increased value of the iraqi dinar. Anyone following this investment for any length of time however knows that Shabibi was on an aggressive campaign to reduce the money supply. This in and of itself says that the value of the dinar is on the upward swing.
3. They say the money supply is around 34 trillion. This is the crux of all of the debate around the IQD's value. Are these figures (34 T) put out by financial experts of a mendacious nature? Many of us investors in IQD believe it to be the case and have hedged our bets against their reports by buying the dinar. Quite simply, we are saying, "we don't believe your numbers and if the case is that you are obfuscating the real numbers, we stand to make significant profits."
4. This bullet point is a study in and of itself that many are not educated on: "Currency Wars". There is a war being fought all over the world not with military might but economics and monetary policy. I encourage you to read Currency Wars: The Making of the Next Global Crisis. The implications are huge. Here is an excerpt: "Currency wars are one of the most destructive and feared outcomes in international economics. At best, they offer the sorry spectacle of countries' stealing growth from their trading partners. At worst, they degenerate into sequential bouts of inflation, recession, retaliation, and sometimes actual violence. Left unchecked, the next currency war could lead to a crisis worse than the panic of 2008."
5. Here we see that the Gulf states top the list of gold purchasers to protect their exchange rates. Question why would Iraq be aggressively doing the same if their currency is worthless? If you are going to just LOP and start over, why protect the existing monetary policy by hedging with gold? ..... I don't know a lot so I ask a lot of questions