Iraq’s currency reserves and what it means for the life of the citizen; Stability and an increase in exchange rate

[rvhope]

Iraq’s currency reserves and what it means for the life of the citizen; Stability and an increase in exchange ratePosted: September 29, 2013 in Iraqi Dinar/Politics
Tags: Abdel Basset Turki, Central bank, Central Bank Iraq, Commercial bank, Iraq, iraqi, Iraqi dinar, Radio Free Iraq

28/09/2013

The Central Bank of Iraq, as in other countries of the world, the management of the national currency and maintain the value and size of rolling them.

The central bank also oversees the commercial banking system. Unlike the Commercial Bank, the central bank has a monopoly to increase the money supply in the country or be reduced, which is that prints paper currency and metal coin.

The central bank controls the quantity of money supply through mechanisms such as setting interest rates and be the last resort to support the banking sector in troubled times and financial crises.

Among the most important functions of the central bank to maintain the value of the national currency and protect it from fluctuations.

And kept the central bank to provide cover for the national currency to build up the country’s foreign exchange and gold, for example. indicated that the Iraqi Central Bank as an institution has succeeded generally in this task until he level of efficiency is almost to be an island in a sea of inefficiency compared with other institutions, service was or productivity.

The central bank kept at this level, although he suffered tremors before the period and attempts to undermine its independence.

The bank announced recently that the reserves of Iraq’s foreign exchange and gold amounted to about $ 80 billion, compared with approximately $ 74 billion in June.

said the central bank governor Agency Abdul Basit Turki in an interview that this increase is due to the high price of oil on world markets expected to increase the reserve in the the coming months as well.

Radio Free Iraq met a former adviser to the Central Bank of Iraq the appearance of Mohammed Saleh, what this means the size of the cash reserve explained that sovereign wealth offer strong protection for the Iraqi dinar as well as securing months import of approximately 12 months, compared with 6 months in the past, but this extreme importance if we know that Iraq imports almost everything. predicted a former adviser to the central bank that reflected such a cover strong that provided by foreign exchange reserves of the national currency in the high purchasing power of the Iraqi dinar.

member of the Economic Commission parliamentary Mahma Khalil noted that the increase in the reserve by the Iraqi build basket foreign currency and gold as well as an investment portfolio of Iraqi assets in the financial centers task such as London, Paris and New York means the success of the monetary policy pursued by the central bank.

predicted MP Mahmh Khalil to go up the value of the national currency accumulated balance of the sovereign so that the Iraqi dinar equivalent to the U.S. dollar within the next four years (where Iraq plans to increase its oil production to 8 million barrels per day by the year 1917, also said a member of the Economic Committee of Parliament.

stressed Mahmh Khalil on the importance of retaining the CBI باستقلاليته in order to continue its monetary policy sound calling on the government to stop its attempts to interfere in Bank’s policy, especially as the Constitution itself guarantee him this independence.

Financial expert Majid picture cautioned that the presence of large reserves of foreign exchange alone is not enough to maintain the value of the national currency affected by external factors such as the volatility of oil prices, which sells for Iraq and the prices of goods imported by, and another Interior in the forefront of the security situation and consumerism with the government and the private together at the expense synergies product.

Regarding the living conditions of the citizens, the reserve big foreign exchange means what it’s supposed stability of consumer prices, but parasites exploit usually the deteriorating security situation and political instability and ignorance dealers dinar and the dollar to increase prices various pretexts), as noted financial expert Majid picture.

expected and the U.S. Agency for International Development late last year that leads the Iraqi economy, the economies of other Arab countries in the next five years.

http://bit.ly/1hcSIyA

Equivalent to USD in the next 4 years ....  wtf ... I guess I can wait that long I mean its not like we have a choice if it comes to that but ....
WTF

[Boozer]

By the year 1917 ? Don't think that will take place, just more talk, lots of smoke, I don't see the IQD staying as it is for 4 more years.

[Shelley]

2017 is the correct year

[unirod]

While you wait accumulate; more ISX stocks, more IQD all at a discount

[Raleighwood]

While you wait accumulate; more ISX stocks, more IQD all at a discount

[gregp]

This was definitely not written in iraq.

[new york kevin]

I know this is a Sept 2013 article, and that it has a typo in it regarding the CBI's plans to make the IQD equivilent to the US by 2017 (1917 in the article on The Iraqi Journal website) (arrgh: to long for me), but with all the crud articles/games that have come out recently that IQD will never RV; debates over weather or not a RV has ever occured due to ones definition on what a RV is; I thought that this would be a good article to remind everyone about the CBI's plans. Call it an RV, call it a market rise in value on Iraq's soverign currency, we will see a increase in value on the IQD we hold. Sooner would be better.

Now let the nay sayers sling their cud. Go increase in value.

[doctor robbins]

They didn't say that the IQD would equal the dollar in four years.  They said the Iraqi dinar would.  They've been saying for years that they would re-denominate and bring the dinar's value to about the value of the dollar, but that doesn't mean an increase in the value of the IQD.

[dontlop]

They didn't say that the IQD would equal the dollar in four years.  They said the Iraqi dinar would.  They've been saying for years that they would re-denominate and bring the dinar's value to about the value of the dollar, but that doesn't mean an increase in the value of the IQD.

Ok get back in the lopster bin

[jeepguy]

they had a meeting with another advisor of central bank , { I wonder if they meant -  they met with turki  another time ,  or they  met with dr. shabibi ? }  any who ----> they are looking at the import ,  and  the  export,  lengths to go from 6 months,  into  1  full year ,   they have that part of the taxation of imports that far ahead in the planning, so  I  am  thinking the contracts are in place ,  and with our other article we are seeing a lot of now , the bond markets are moving into view,  the bonds are part of the structure to keep a lot of projects a float ... sort of more  foundation building , as  in  the older articles we had seen  around 1 year ago ,    if they are saying 4 more years { if that is what they mean }  it will start low and climb up to 1 too 1  ,   <------ and a rush to buy Iraq will be on  {  just my opinion }  

[sandfly]

BUT 2014 IS SET AT 1.13

[new york kevin]

Doc, this is me trying to be nice, though I often feel misunderstood, oh well. IQD is an abbreviation for Iraqi Dinar, at least thats how I understand it. Check this sites rules or abbreviation article thing that may still be up, i have not read it in years. So long as our Iraqi Dinar (IQD) increases in value, hopefully sooner than 2017 IMHprayer, while important economically or procedure wise, I would not really care how it gets there and by what name they call it. RV, RD, market float or any combination there of. Straight up lop, I don't believe that will ever happen. I just want it to increase in value, period!!! Then my stage two plans will be implemented.

dontlop i feel ya, gave you a positive.

jeepguy, I have been seeing aticles like the ones you mentioned in my limited searches on the web and this site. I can agree with your opinion no problem.

sandfly, way cool. don't be a magnet out there in afghanistan. hoo rah. I apreciate your input, a $1.13 is a great number. I remember the article and link I put up on this site about $1.13 to $3.00 and some kinda change. My first and possibly last due to the name calling and crud that followed. Thanks to the positive comments I got energy to brawl if necessary. I am not trying to source/link you, but if you got one and its other than the article I mentioned, I would like to read it for details. Its your 2014 set at $1.13 that is intriguing and making me think your referencing another different article. Trying to get a short cut here cuz I try to fit my researching in nowadays. living and breathing off of other things than dinar news.Thanks and stay safe.

God Bless everyone.

[SocalDinar]

Doc, this is me trying to be nice, though I often feel misunderstood, oh well. IQD is an abbreviation for Iraqi Dinar, at least thats how I understand it. Check this sites rules or abbreviation article thing that may still be up, i have not read it in years. So long as our Iraqi Dinar (IQD) increases in value, hopefully sooner than 2017 IMHprayer, while important economically or procedure wise, I would not really care how it gets there and by what name they call it. RV, RD, market float or any combination there of. Straight up lop, I don't believe that will ever happen. I just want it to increase in value, period!!! Then my stage two plans will be implemented.

 

Doc is suggesting a new ISO code for the Dinar which would not be IQD

[keepmwlknfny]

Doc, this is me trying to be nice, though I often feel misunderstood, oh well. IQD is an abbreviation for Iraqi Dinar, at least thats how I understand it. Check this sites rules or abbreviation article thing that may still be up, i have not read it in years. So long as our Iraqi Dinar (IQD) increases in value, hopefully sooner than 2017 IMHprayer, while important economically or procedure wise, I would not really care how it gets there and by what name they call it. RV, RD, market float or any combination there of. Straight up lop, I don't believe that will ever happen. I just want it to increase in value, period!!! Then my stage two plans will be implemented.dontlop i feel ya, gave you a positive.jeepguy, I have been seeing aticles like the ones you mentioned in my limited searches on the web and this site. I can agree with your opinion no problem.sandfly, way cool. don't be a magnet out there in afghanistan. hoo rah. I apreciate your input, a $1.13 is a great number. I remember the article and link I put up on this site about $1.13 to $3.00 and some kinda change. My first and possibly last due to the name calling and crud that followed. Thanks to the positive comments I got energy to brawl if necessary. I am not trying to source/link you, but if you got one and its other than the article I mentioned, I would like to read it for details. Its your 2014 set at $1.13 that is intriguing and making me think your referencing another different article. Trying to get a short cut here cuz I try to fit my researching in nowadays. living and breathing off of other things than dinar news.Thanks and stay safe.God Bless everyone.

Tried explaining to you that the info you posted regarding the 1.13 etc were rates of exchange in 84 and 1990 I think it was and those were used in those yearsto generate the budget Iin those years. Its not relevant to Iraq today. Im sorry if you took it too personal to actually understand what I had presented to you, but if you get the time, go back and take another look at what I had said to you. I wish it wasnt true, but unfortunately that document has been misunderstood for years.

[MrOptimistic]

Bad posting. Nothing solid or worth sharing that we don't already know... Just tossed in some propaganda and a few facts trying to stir the board members who are less informed IMO.

[keepmwlknfny]

Bad posting. Nothing solid or worth sharing that we don't already know... Just tossed in some propaganda and a few facts trying to stir the board members who are less informed IMO.

So you can speak for every single member on DV that there is nothing to be learned here? Thats quite an ignorant statement to be made. There are new members and new people to this speculation everyday.....I strongly disagree with your assumptions. ...

[new york kevin]

Keep, I am touched and blest. Yes we see things differently thats all, and I do recognize some incite with what you share.

 

I see many of the details in that 1990-ish article as valid and in place as we speak, and this is how. There was a person that coined it something like this: Assume that article was a motorcycle manuel on how to build a motorcycle from the 1990s. Then after the war in Iraq someone (whose name was say CBI) came along picked up that manuel and built a motorcycle in 2009, using a few more modern mechanical techniques that were not available in 1990 Iraq. Then said motorcycle went on to achieve many goals and win many awards and races. That would be a great 2009 motorcycle and not a old useless 1990 model. I see it as the current CBI and Iraqi Ministry of Finance et al taking a old Saddam era report, tweeking it with the assistance of the IMF, WTO, and a mirad of iraqi and internationally renown economists; coming up with a detailed game plan on how to return to the world stage and letting it be printed in a article in 2010. I see a lot of details working out along the lines mentioned in the article (International trade agreements in IQD, Ministry of Finance and CBI plans to get the IQD (Iraqi Dinar) on par with its neighbors (27 cents to $3 range) and the USD, getting the vast majority of its debt forgiven so Iraq is close to being debt free. Plans, my friend. Flooding the market with cheap currency to rebuild infrastructure on the cheap, so that everyone including India and China are using IQD in trade agreements. I see many other details not working out also at this time, which is frustrating as heck and reminicent of the gridlock in our own country.

 

If it RV's, RD's, gets pegged at 1 penney then manage floated up from there, or pegged at a dime and allowed to market float up from there within a 3 month or three year window, I won't care. As long as it increases in value, and stage two of my plans can get started with. This is all I am hoping for. Cuz from where I am at right now, I don't like it, and I can only go up from here. Hope springs eternal if you keep your eyes/mind open, and free from the weeds of semantics.

 

Take Care. Have a great Thanksgiving and a even better Christmas.

 

NYK
 

[keepmwlknfny]

Keep, I am touched and blest. Yes we see things differently thats all, and I do recognize some incite with what you share.

 

I see many of the details in that 1990-ish article as valid and in place as we speak, and this is how. There was a person that coined it something like this: Assume that article was a motorcycle manuel on how to build a motorcycle from the 1990s. Then after the war in Iraq someone (whose name was say CBI) came along picked up that manuel and built a motorcycle in 2009, using a few more modern mechanical techniques that were not available in 1990 Iraq. Then said motorcycle went on to achieve many goals and win many awards and races. That would be a great 2009 motorcycle and not a old useless 1990 model. I see it as the current CBI and Iraqi Ministry of Finance et al taking a old Saddam era report, tweeking it with the assistance of the IMF, WTO, and a mirad of iraqi and internationally renown economists; coming up with a detailed game plan on how to return to the world stage and letting it be printed in a article in 2010. I see a lot of details working out along the lines mentioned in the article (International trade agreements in IQD, Ministry of Finance and CBI plans to get the IQD (Iraqi Dinar) on par with its neighbors (27 cents to $3 range) and the USD, getting the vast majority of its debt forgiven so Iraq is close to being debt free. Plans, my friend. Flooding the market with cheap currency to rebuild infrastructure on the cheap, so that everyone including India and China are using IQD in trade agreements. I see many other details not working out also at this time, which is frustrating as heck and reminicent of the gridlock in our own country.

 

If it RV's, RD's, gets pegged at 1 penney then manage floated up from there, or pegged at a dime and allowed to market float up from there within a 3 month or three year window, I won't care. As long as it increases in value, and stage two of my plans can get started with. This is all I am hoping for. Cuz from where I am at right now, I don't like it, and I can only go up from here. Hope springs eternal if you keep your eyes/mind open, and free from the weeds of semantics.

 

Take Care. Have a great Thanksgiving and a even better Christmas.

 

NYK

The only relation it has to today though is that the CBI still uses its current rate to formulate the budget. Economically speaking there is no comparison and really doesnt apply to todays situation. Only the fact of using the CURRENT rate to formulate a budget. The comparison stops after that. Hope your holidays are a blessing to you and yours....

[new york kevin]

You gonna make me cry being so mushy and all like that Keep.

 

I hear you loud and clear on that.

 

I just pulled this article off a somewhat older thread on DV. I thought it may let you and others see somethng through my glasses. Maybe i am more like a Inspector Clueseau instead of the Lt Columbo type of dinar detective that I hoped i was becoming. I just read what I can find, try and understand it, and try to grow in my understanding from there.

 

Later

 

 

Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

 

Estimate the shadow price of foreign currency:

 

1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary  requirements to implement  the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

 

 

 

 

* What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.

In particular the following outputs and inputs of foreign currency were distinguished:

 

• Export-outputs.
• Outputs marketed locally that substitute imports.
• Imported inputs.
• Inputs produced locally that usually go to exports.
• Foreign labor.

According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.

In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency .... etc.).

In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

 

 

1. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the  economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports... etc.

 

The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:

 

• The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.

 

• The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.

 

• The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.

 

• The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.

 

• This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.

 

And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.

 

 

1. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.

 

 

 

[keepmwlknfny]

 

 

You have to go back a page from where that info is in order to understand where/what its talking about or referencing.....

 

Planning Budget 

 

Capital Budgeting in Republic of Iraq is evolving into a more structured process with the introduction of a defined policy and procedures that will culminate in a prioritized list of projects for the Capital Budget.

 

In turn, The Guidance For Technical And Economic Feasibility Studies And Post-Project Assessment Of Development Project (Regulations No. 1 for the Year of 1984 and it’s amendment for the year of 1990) has specifies a series of steps to be undertaken, which lead to the completion of a Capital Budget.

 

For more Information on budget preparing, requesting procedures and reporting requirements can be downloaded from the Rule of Law Section / THE GUIDELINES FOR TECHNICAL AND ECONOMIC FEASIBILITY STUDIES AND POST-PROJECT ASSESSMENT OF DEVELOPMENT PROJECTS.

 

 

[justchecking123]

So you can speak for every single member on DV that there is nothing to be learned here? Thats quite an ignorant statement to be made. There are new members and new people to this speculation everyday.....I strongly disagree with your assumptions. ...

 

He's got some purty white teeth, a trophy girlfriend and strongly resents your reality checks, Keep.

[imgesing]

The one thing which impresses me is that when people refer back to old articles of monetary value in iraqi currency we should get a bit excited IMHO. Why? Well they have to be viable to their GNP, resources and trade value. Will they be at Kuwait's currency value? I just do not believe they will be far behind if not greater. Though we don't know what to firmly believe they have said they will be among the strongest in the ME. I myself believe this is xtreemly possible and if you read to build up in Iraq, apparently believing in the boos economically is not an opinion held by just me. Now, to say they will RD that stupid LOP word, or RI etc... Not one person can tell you wih any confidence of truth but only what to think,will be true. Use logic in the face of lies... This is a high risk yield investment.

When some come here and act or post with confident and self proclaimed guru or schooled, I'd say that this is a uniqu situation.

The hands of foreign interest is in many countries. The oil trade isn't going away any time soon.

The political turmoil has settled down a lot in the last year and things are moving quite well. It's too and I don't have time to show the news and what has been said versus what has been done. Those who sell dinar (many of whom are gurus) will use anything to say an RV is happening in the next week. It is to fuel sales. It can happen as much in the next 24 hours as it did last year or the year prior.

The difference is this is day to day closer to a change.

So keep fighting over details unfounded or unknown. Hopefully the wise will see a truth beyond this muck...

Peace and maybe praying helps...

(c :

Edited November 15, 2013 by imgesing

[Maggie123]

The political turmoil has settled down a lot in the last year and things are moving quite well.

 

Peace and maybe praying helps...

(c :

 

Great

[MrOptimistic]

So you can speak for every single member on DV that there is nothing to be learned here? Thats quite an ignorant statement to be made. There are new members and new people to this speculation everyday.....I strongly disagree with your assumptions. ...

You think this jumbled piece of unorganized information is going to be useful to the noobs? I hope it makes them question and seek the real facts. In that regard I can appreciate this piece.

[keepmwlknfny]

You think this jumbled piece of unorganized information is going to be useful to the noobs? I hope it makes them question and seek the real facts. In that regard I can appreciate this piece.

Thats the whole point! For people to question what is real and what things are really talking about. Cause for so long this document was posted as a reason why the dinar should at least be at 1.13. Because everyone thought the document meant that they were using a 1.13 rate for these economic studies in todays Iraq which is false. It has nothing to do with Iraq today. This document is referencing a budget made almost 30 years ago!!!  

 

Many people dont know that, and which is why this post is relevant. For you to say that this is a bad post is not your call to make because you dont know who doesnt know this information.....