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yota691

Central bank: a plan to raise the exchange rate of the Iraqi dinar

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What I don't get is how do you raise the market rate? Isn't the market rate based on what people are willing to pay for it? So how do you get people to WANT to carry the dinar without raising the official value of it?

Sorry if that's a dumb question, but I don't get it.

i really believe its all in the legal tender laws and regulations they impliment .. every country has and uses them .. this is why the local currencys are used in all the different countrys .. otherwise  everyone would just  use  the strongest currencys .. // and every market would  be using every currency .. this is why they have exchanges set up ..  .. its complicated ,, but a search on dedollarization . and legal tender laws that  are applied ..

 

dollarization doesnt just mean dollars .. it covers all currencys   ,, if iraq was  covered in mexican pesos .. its dollarized by pesos ..

 

 

the de-dollarization process eliminates this .. makes people use  their local currency .. and pay a spread to use  foriegn currencys .. which is a loss in every exchange in value

demand for local currency .. makes the value go up

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What I don't get is how do you raise the market rate? Isn't the market rate based on what people are willing to pay for it? So how do you get people to WANT to carry the dinar without raising the official value of it?

Sorry if that's a dumb question, but I don't get it.

It is a very smart question staunch, because the people do not want the dinar nor have for years, they just had to deal with it.  In countries where the dollar vs their own currency this is common place.  Many countries struggle to get their people to use their countries currencies.  Some countries give up even after redominating several times.  In the past weeks I have come to the conclusion, Iraqi's are not concerned about what the dinar rate is internationally, they are concerned about the market rate.  The dollar is the money of choice.  So they may not want to carry it but they may be forced to via a fine tagged on to the dollar.  Just a thought.

He added that "the central bank works to reduce the number of companies that deal with it

Read more: http://dinarvets.com/forums/index.php?/topic/149671-central-bank-a-plan-to-raise-the-exchange-rate-of-the-iraqi-dinar/#ixzz2UJYJRa00

  sounds like some kinds of regulations coming  ..maybe only importers can use  dollars .. or maybe  everyone will be forced to use the dinar in the local markets ... and businesses that do import will be the only ones allowed to  buy dollars .. i hope they finally take control of their local currency and markets ..not that it would change anything . but it would keep the dinar from falling  like it has .. it would only get stronger with more demand ..

Wouldn't it make the dollar more valuable to them?  Less of dollars more valuable on the streets?

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Ok so it's more or less forced through laws and regulations?

Edit: didn't see second half of your post.........I got it now. Thanks dontlop.

Edited by staunch

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theres not many  other currencys on our streets .. they arnt more valuable to us ..

 

if i buy vietnam dong here in the us .. im paying more than its actual value ..its a loss everytime i buy any .. but if the price goes up while im holding them .. its a gain .. if it goes up more than that spread i paid

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Great article Yota ..... Thank you...!  Let's hope we see real movement very soon. Be Blessed - RON  :tiphat: 

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Ok so it's more or less forced through laws and regulations?

Edit: didn't see second half of your post.........I got it now. Thanks dontlop.

legal tender laws are implimented .. not forced ..  but  if you buy foriegn currency with your local currency its set up in a way  that you lose money in the transaction

ex forex .. go there and buy currency with dollars .. you will lose  value ..its just the way  things aet set up and regulated to keep your local currency in your local markets

iraq has a multi currency market .. and its got to be cut out .. they need to use the dinar ..

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right now its backwards in iraq ... which , makes me think they have no education at all ...or they are intentionally ..or have been intentionally dollarizing the streets of iraq  to   get the dinars off the streets .... they can simply regulate , but they dont .. . this article indicates they may be going to start implimenting more currency controls

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right now its backwards in iraq ... which , makes me think they have no education at all ...or they are intentionally ..or have been intentionally dollarizing the streets of iraq  to   get the dinars off the streets .... they can simply regulate , but they dont .. . this article indicates they may be going to start implimenting more currency controls

The CBI is not stupid, so this leads me to believe because they opened the auctions to ordinary people and speculators they knew what would happen.  They had to have known the end result.  Yet the auctions continue 6 days a week and sometimes on a Saturday.  To me this either an action of desperation or a deliberate action to get to a certain point in an calculation to begin the currency controls or something.

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right now its backwards in iraq ... which , makes me think they have no education at all ...or they are intentionally ..or have been intentionally dollarizing the streets of iraq  to   get the dinars off the streets .... they can simply regulate , but they dont .. . this article indicates they may be going to start implimenting more currency controls

I've always been of the opinion that the reason the dollar is so rampant and abundant is that it makes it harder to keep track of where it's all going. I think there are massive amounts of USD being funneled into Iran. Kind of like a smoke screen.

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It says EXCHANGE..... :blink:... But its getting interesting..

Its has been a weird week again, Then again we are getting close to June. Does this feel like a trend from previous years?

What is everyone's take on the amount on "news" coming out?

 

The Dude Abides...

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Its has been a weird week again, Then again we are getting close to June. Does this feel like a trend from previous years?

What is everyone's take on the amount on "news" coming out?

 

The Dude Abides...

Its always weird in Iraq.  Comparing articles from the past at this time of year some events have changed from then to now.  They actually seem to be doing something to get Iraq on track.  Cutting red tape for visa's, working with the WTO, checking off their list of things to do to get out of Chapter 7, better dialogue with Kurdinstan on Erbil,  QI cards, many positives these past weeks.  Still politically its a hot bed waiting to blow up.  It seems to me there has been a lot of news, how much is true is another question.

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Central bank: a plan to raise the exchange rate of the Iraqi dinar

Created on Saturday, 25 May 2013 11:59 | printButton.png|emailButton.png

 

 

 

126.jpg

Baghdad / Orr News

A member of the parliamentary Finance Committee that the central bank told us that he will implement a new plan to raise the value of the Iraqi dinar exchange either the U.S. dollar.

A member of the Committee Faleh Djiashi, that "the central bank told the parliamentary Finance Committee that an action plan will begin to apply early next June, would be enough to raise the exchange rate of the Iraqi dinar against the U.S. dollar."

He added that "the central bank works to reduce the number of companies that deal with it and put the money in the auction which will lead to a reduction in the value of the dollar and reliance on monetary policy open without complicated procedures and controls and a wide open field in front of the government banks."

The Finance Committee has announced the formation of a small committee composed of three deputies to monitor Srvaldanar of Iraq against the dollar, stressing that the practical measures undertaken by the central bank last week led to address the problem gradually. The parliament may ضيفت week current governor of the Central Bank and the Agency Abdul Basit Turki and discussed with him the reasons for the high price of the dollar against the dinar.

 

Here's the translation of that document.. Thanks Yota!

 

:

 

(In the name of God the merciful)Media and deliberated some agenciesNews Exclusives occur MP haidralmla2013 on February 2, on Thursday, 21The loss of the $ 509 billion Iraqi dinars throughAuction currency in addition to changes in the priceExchange and sale of foreign currency on a numberLimited non-Iraqi and non-banksAny auction to sell wellSpecial notes do not fall within the sphere of activity of the Bank.In order to clarify the facts before our people and our audienceKarim, a statement like the following:1 include the five largest banks belowPurchase foreign currency on the basis ofMonthly during the year 2012 and buy allFrom the total sale (amounts in thousands of dollars):

The name

Bank Cash money order total percentage CashThe proportion of HawalaThe proportion of Kidney Bank East

 

 

Middle

% 8% 8% 1 3761095 3721020 40,075

Bank

North

% 7% 8% 1 3560435 3511040 49395

Bank

Erbil

% 6% 7% 2 3138787 3064052 74735

Bank

SDL

% 6% 7% 3 3107717 3008502 99215

Bank

Al Ahli

% 6% 6% 1 2726042 2688477 37565

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Central Bank implemented a plan in next June to raise the exchange rate of the Iraqi dinar 25/05/2013 A member of the parliamentary Finance Committee that the central bank told us that he will implement a new plan to raise the value of the Iraqi dinar based on monetary policy open.

A member of the Committee Faleh Djiashi, that "the central bank told the parliamentary Finance Committee that an action plan will begin to apply early next June, would be enough to raise the exchange rate of the Iraqi dinar against the U.S. dollar." He added that "the central bank will reduce to reduce the number of companies that deal with it and put the money in the auction, which will lead to a devaluation of the dollar and the reliance on monetary policy open without complicated procedures and controls and a wide open field in front of the government banks." The Finance Committee announced the formation of a small committee consisting of three deputies to monitor the exchange rate of the Iraqi dinar against the dollar, stressing that the practical measures undertaken by the central bank last week led to address the problem gradually. The parliament may daift week current governor of the Central Bank and the Agency Abdul Basit Turki and discussed with him the reasons for the high price of the dollar against the dinar.

http://translate.google.com/translate?langpair=ar|en&u=http%3A%2F%2Fwww.imn.iq%2Fnews%2Fview.5514%2F

 Central Bank implemented a plan in next June to raise the exchange rate of the Iraqi dinar

 
    25 May 2013 BAGHDAD / Center Brief for the Iraqi Media Network (IMN ) A member of the parliamentary Finance Committee that the central bank told us that he will implement a new plan to raise the value of the Iraqi dinar exchange either the U.S. dollar. A member of the Committee Faleh Djiashi,'s (IMN ) That "the Central Bank told the parliamentary Finance Committee that an action plan will apply early next June, would be enough to raise the exchange rate of the Iraqi dinar against the U.S. dollar." He added that "the central bank works to reduce the number of companies that deal with it and put the money in the auction which will lead to a reduction in the value of the dollar and reliance on monetary policy open without complicated procedures and controls and a wide open field in front of the government banks." The Finance Committee has announced the formation of a small committee composed of three deputies to monitor Srvaldanar of Iraq against the dollar, stressing that the practical measures undertaken by the central bank last week led to address the problem gradually. The parliament may daift week current governor of the Central Bank and the Agency Abdul Basit Turki and discussed with him the reasons for the high price of the dollar against the dinar.  

http://translate.googleusercontent.com/translate_c?depth=1&hl=en&rurl=translate.google.com&sl=auto&tl=en&u=http://center-imn.com/index.php%3Foption%3Dcom_content%26view%3Darticle%26id%3D4412:2013-05-25-09-23-31%26catid%3D94%26Itemid%3D602&usg=ALkJrhhYZVtMnau9-TWZLd8HvkTCpCQQEA

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It's interesting enough...... but I feel we've been down this road before. But hey, ya never know! Thanks for the article!

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Actually they did reduce the agencies/banks with credentials that could participate in the auction last summer, because of the smuggling and counterfeit stuff.   Then they opened it up to I guess ordinary people and speculators(?).  Things went awry, or they accomplished what they wanted and now we are back to where they were, a select agencies and banks.  That is how I read it anyway.  So yeah we have been down this road before.

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Unfortunately they are talking about their problem with the dinar vs the dollar within the confines of their country, not the 1166 rate.  The 1166 is what we want to see rise.

Yep

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The "problem" they are trying to address is the price of the IQD in the market (i.e. on the street via banks downstream from the CBI or dealers further downstream) is a bit lower (about 6%) compared to the official CBI rate.  So they are trying to take steps to reduce that spread.

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The "problem" they are trying to address is the price of the IQD in the market (i.e. on the street via banks downstream from the CBI or dealers further downstream) is a bit lower (about 6%) compared to the official CBI rate.  So they are trying to take steps to reduce that spread.

 

 

The "problem" they are trying to address is the price of the IQD in the market (i.e. on the street via banks downstream from the CBI or dealers further downstream) is a bit lower (about 6%) compared to the official CBI rate.  So they are trying to take steps to reduce that spread.

I don't know I am beginning to think they did it on purpose.

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I don't know I am beginning to think they did it on purpose.

You mean the CBI intentionally set things up so the rate Iraqi businesses see (who are the ones dealing in dollars for imports I'd guess) is lower?   What would be the point of that do you think?

Edited by skeptic1138

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