Exiting from chapter VII makes Iraqi dinar stronger 09 Jul 2013

[IQD1217]

After the exit of Chapter VII sanctions on Iraq, international banking organizations are looking to invest in Iraq. The Iraqi central bank has recently declared that presently Iraq possesses high volume of foreign reserves, which is around 76 billion dollars and in addition to that bank owes 30tons gold bullon.

Treasury Adviser Helal Al Ta’an, stated that this reserve will help raise the value of the Iraqi currency, compared with foreign exchange and thus contribute to the reduction of prices of goods and commodities.

The currency reserves of the Central Bank is supporting the Iraqi currency in and out of Iraq, and increased oil imports might contribute directly to increasing the reserve and give more support to the Iraqi currency.

Economist Majid Al Souri remarked, “The investment of surplus reserve is a deliberate economic policy of the country.” the parliamentary Financial Committee member Ahmed Al Masari criticized laws and banking regulations followed in Iraq, confirmed that the Parliament is determined to enact laws regulating banking in the future.

The central bank declared that earlier the foreign reserves and gold were used to be managed in global banks. But after the exit of Chapter VII, the bank got more freedom and thus liberal decisions of the bank will bring future economic successes.

http://www.iraqdirectory.com/en/2013/07/09/24463/exiting-from-chapter-vii-makes-iraqi-dinar-stronger.aspx

[jbird129]

Now that they have the freedom to control their currency...only time will tell...how wisely they minipulate it.

[stealthwarrior]

Blah blah blah all talk no action

[Alex38]

they have to reduce their dang money supply!!! when will they do that??? do we know if they did? I don't think they did...

[calkid11]

Still all we see is talk from them...

[caz1104]

After Chapt VII I felt stronger too,then I took my shirt off and reality hit ughhhh....................not yet grasshopper not yet-peace

[gainesm]

Treasury Adviser Helal Al Ta’an, stated that this reserve will help raise the value of the Iraqi currency, compared with foreign exchange and thus contribute to the reduction of prices of goods and commodities.

 

 

Sort of...right now Iraq still imports most of what they need, and those imports are wicked expensive due to the low value of the IQD.  Letting the exchange rate rise will make it a bit cheaper to import, but it will also make exporting less lucrative.  As their wealth is nearly entirely dependent upon exporting oil, this means they will be hurt by the rising IQD more than they will benefit from it.

 

Short-term spikes in the exchange rate will be very beneficial for them - and may help them in building out a stable private sector...something sorely needed if they are ever going to be able to have a strong international currency.  I just do not believe any long-term rise in the exchange rate is going to be beneficial - unless the price of oil skyrockets simultaneously for the long-haul.

[IQD1217]

No one said that the release of chapter 7 that iraq was going to RV !! It just speeds things up now!! They still have to reduce the money supply and make the US Dollar less dependant !! Which they have been doing but need to do it further then we will get a RV!!

[TrinityeXchange]

they have to reduce their dang money supply!!! when will they do that??? do we know if they did? I don't think they did...

 

 

No one said that the release of chapter 7 that iraq was going to RV !! It just speeds things up now!! They still have to reduce the money supply and make the US Dollar less dependant !! Which they have been doing but need to do it further then we will get a RV!!

 

In complete agreement my friends.  Until they reduce the money supply, we will not see an RV.  What is unknown to any of us is the actual amount in circulation and we are not fools to believe what is being posted on the CBI's website either. 

[IQD1217]

In complete agreement my friends. Until they reduce the money supply, we will not see an RV. What is unknown to any of us is the actual amount in circulation and we are not fools to believe what is being posted on the CBI's website either.

[Alex38]

agreed.

[IQD1217]

What's funny is we know the rate of 1166 isn't the true rate with increase in all the bank reserves , gold , DFI fund which they are suppose to get control of next week!! It's awesome how they been able to keep the rate down when they are one of and soon to be the richest counties in the world with the highest GDP!! And major companies getting into Iraq daily .. $$$

[TQueezy]

Widespread panic, head for the hills.

[IQD1217]

Look at the chart .. So to all those people who say you can't make money on the currency lol