Warned of the continued decline .. Congress: the low exchange rate of the dinar impact on the purchasing power of citizens (20%)

[yota691]

Baghdad (news) / report / Hussein Faleh / ..Warned a number of MPs and specialists in the financial area of the continuation of the low exchange rate of the Iraqi dinar against the U.S. dollar, because it will create economic and financial crises large in the country, in terms of high inflation and increased prices in the domestic market, in addition to its direct impact on the amount of cash reserves of hard currency . and they confirmed their talk (of the Agency news): that the decline in the price of the dinar reduced the purchasing power of the citizen by (20%), giving a negative indicator for economic growth and development in the country. witnessing the Iraqi dinar is a deterioration in value against the U.S. dollar, which raised concern among finance and economics in particular, where the dinar exchange rate is 1300 per dollar after it was in 1270 at the beginning of April. member of the Finance Committee MP / coalition in Iraq / Hassan Auzmn Bayati, load management Central Bank current cause of low exchange rate of the Iraqi dinar against the U.S. dollar, warning of the continuing decline because it will lead to economic problems and financial assistance in the country, in terms of increasing poverty and high rates of inflation.said al-Bayati (of the Agency news): The low exchange rate of the dinar impact on the purchasing power of the citizen and fell between (15 % - 20%), because most of the goods are in the market are imported and are imported in U.S. dollars. stressed: the need to take the necessary measures for the purpose of the return of the dinar to the price of natural and maintain stability in front of hard currency to avoid the country from economic crises, potential and occur as a result. As a member of Finance Committee MP / National Alliance / Abdul Hussain al-Yasiri, ruled out the existence of smuggling foreign currency, which would have led to the high exchange rate of the U.S. dollar, indicating that the government give a dollar to the Central Bank and the Bank gives the dinar to the Ministry of Finance for operational purposes in the country, but there are processes monopoly conducted in the sale of hard currency. Yasiri said (of the Agency news): The policy of the central bank include selling the dollar against the dinar in order to create a balance in the balance of supply and demand of foreign currency in the domestic market, but this did not happen, because of the 'fierce attack' by citizens Some financial firms to retain dollars without knowing the reasons. added: that the central bank demands to change its monetary policy the current format makes the dollar up to those who deserve and not for people who are no have a need for the dollar, stressing that the continuation of the low exchange rate of the dinar will lead to a major financial crisis in the country. For his part, accused MP / coalition of Kurdish blocs / Hamid Buffy, the federal government caused the instability of exchange rate of the Iraqi dinar against foreign currency because they are trying to control the work of the central bank, although he an independent institution are not subject directly to the executive, but linked to the House of Representatives, according to the Iraqi constitution. said Buffy ( of the Agency news): The government interference in the work of the central bank and led through to the resignation of Governor of the Bank and his advisers and managers is a dangerous precedent threatening the monetary policy in the country, and this is what happened now consistently low exchange rate of the dinar. called Buffy the House of Representatives to intervene rapidly to prevent control authority Executive on the work of the central bank to keep the public money and financial stability in the country. experiencing doors of private banks in Baghdad, since the early hours of the morning every day, gatherings of crowds of people hoping to get an early opportunity to buy the dollar from those banks, to be then sell the dollar and get profit margin of the price difference in the market, not abandoned scenes citizens of those disputes and complexity due to overcrowding at that opportunity. saw the exchange rate of the Iraqi dinar against the U.S. dollar fluctuated unprecedented since the beginning of the month of May and so far, prompting the Central Bank of Iraq to take action to reduce from slumping, which impact directly on the Iraqi economy. noteworthy that the Iraqi Central Bank held sessions a day for the sale and purchase of foreign currencies with the participation of Iraqi banks, excluding public holidays on which depends the World Bank for these auctions, and the sales either in cash or in the form of remittances Sold abroad for a certain commission. / End / 8.'s. m /

[sandfly]

RV

[uncirculd]

You know they are putting a lot of articles out about this and it appears by the verbiage that they need to move soon.  They have already the demonstrations.  This is fuel for the fire.  Now with the history of the king of baghdad, he will allow the procrastination and create another crisis to where they are busy with numerous crisis bringing more havoc.  Then the bombings are stepped up.  The GOI and military are so busy putting out fires that no one has the time to see what the king is up to. 

 

It appears this is very serious.  I just wonder how they will handle it.  We know what we would like them to do, but I bet they will look for other mechanisms to curb this inflation.  It's not that great as all would think.   Anything could happen.  Right now their position is good for an RV in the financial and banking sector but the security and the political situation is not ripe.

 

They should just do it, and then figure out how to get rid of the king.

[dinarbeleiver]

I it looks like Washington is getting involved in the security situation I think this will provide the security needed for the RV

[waterman13]

20% loss of purchasing power? Image if you went to the store and your money was only buying 80% of what you thought it should. I am sure the Iraqi citizen are upset. Oh, wait, that's already happened here too over the last decade!

WM13

[a-j516]

just rv your money and problem solved...sure couldnt hurt much of anything considering the path their on...just do it,,,

[dontlop]

20% loss of purchasing power? Image if you went to the store and your money was only buying 80% of what you thought it should. I am sure the Iraqi citizen are upset. Oh, wait, that's already happened here too over the last decade!

WM13

reminds me of the us dollar ..your raised up on a certain dollar value .. by the time you die its not the same ..

 

in 1960 a million dollars  was worth 7.8 times as much as it is now ,, $7,855,777.03     <

 

 

>>> equals 

[dontlop]

You know they are putting a lot of articles out about this and it appears by the verbiage that they need to move soon.  They have already the demonstrations.  This is fuel for the fire.  Now with the history of the king of baghdad, he will allow the procrastination and create another crisis to where they are busy with numerous crisis bringing more havoc.  Then the bombings are stepped up.  The GOI and military are so busy putting out fires that no one has the time to see what the king is up to. 

 

It appears this is very serious.  I just wonder how they will handle it.  We know what we would like them to do, but I bet they will look for other mechanisms to curb this inflation.  It's not that great as all would think.   Anything could happen.  Right now their position is good for an RV in the financial and banking sector but the security and the political situation is not ripe.

 

They should just do it, and then figure out how to get rid of the king.

 well they had another sunday auction ..  they can add an extra auction each week till its market value is  back  to what they want  ..thats how they maintain the dinars value .. auctions .. either flood the streets with dollars by buying dinars  .. or flood the streets with dinars .. when dinars are in demand ..  the price goes up ..

the problem is paying  everone in dinars floods the streets with dinars ...  i think the only thing leftv to do is raise the value of the dinar .... but this could be a political ploy to get people to dump their dinars .. if they keep advertising the dinars value is dropping ..they will dump them for the dollar.

 

the cbi  will have a much easier time   adding value to the dinar with a couple trillion dinar in the cbi and off the streets .. as long as the cbi removes as many dinar from circulation to meet the new value if they raise the value by 10 % they got to remove 10% of the dinar off the streets .

 

iraq used to have 25 billion dinar worth 3.20  for one dinar .. or around 80 billion dollars worth of dinars ,,but they only had 35 billion dollars in their reserves .... then their rserves fell to 2 billion dollars in 1985 .. and they still had 25 billion dinars  worth  80 billion dollars .. then they had 100 billion dinars worth 3.20 each .. with 2 billion reserves .... that lasted for years  like that

 

 hundres of billions of dollars worth of dinar with very little reserves .. id like to see them do that again ..long enough for me to cash in  any way ..

[SocalDinar]

Market rate is up today 1250 is the CBI just cheating on the numbers.  Highest its been since March 2013  following last weeks 5 year low of 1292.

Crazy stuff!

 

Thanks Yota

[millionaire in training]

This does sound serious. And it also sounds like they're not doing much about it.

How is it that the RV is so difficult for them to do. I mean they are there witnessing

whats going on in there country. Dosent someone have the vision for a better future.

[zigmeister]

Market rate is up today 1250 is the CBI just cheating on the numbers.  Highest its been since March 2013  following last weeks 5 year low of 1292.

Crazy stuff!

 

Thanks Yota

It is not beyond Iraq to fudge the numbers.