Dinar Exchange Rate Linked to Oil Exports, Federal Reserves

[BradyBear]

Greetings,

 

Dinar Exchange Rate Linked to Oil Exports, Federal Reserves

According to an Iraqi financial expert, the value of Iraq’s federal reserves currently amounts to about $80 billion, following the recent increase in the country’s oil exports

On how the reserves are formed, Asadi said, “Iraq’s annual budget is in Iraqi dinars, which the CBI owns. The state’s revenues are from oil exports, and they are mostly in US dollars. The government buys dinars from the bank, which results in profits for the bank. … The total CBI profits from selling dinars to the state constitute the country’s federal reserve, whose growth is associated with state spending. State spending increases in proportion with its oil exports

With the expected increase in Iraq’s oil exports in the near future, the country’s reserves are likely to grow to a large extent in the coming years.

Iraqi MP Abdul Hussein Abtan, who is a member of the parliamentary economic committee, said to Al-Monitor, “The total value of funds and precious metals that make up Iraq’s federal reserves amounts to about $76 billion.” He added, “This reserve was only invested in projects to support the stability of the Iraqi dinar’s exchange rate.”

Abtan also talked about the currency auction, where the bank is putting up amounts of US dollars in cash for auction three times per week, to provide hard currency for traders and suppliers.

 

Sincerely,

BradyBear

 

[Shabibilicious]

Also linked to a high rate of lunacy      Thanks for the info BBear......Good stuff.    

 

GO RV, then BV

[keepmwlknfny]

Greetings,

 

Dinar Exchange Rate Linked to Oil Exports, Federal Reserves

According to an Iraqi financial expert, the value of Iraq’s federal reserves currently amounts to about $80 billion, following the recent increase in the country’s oil exports

On how the reserves are formed, Asadi said, “Iraq’s annual budget is in Iraqi dinars, which the CBI owns. The state’s revenues are from oil exports, and they are mostly in US dollars. The government buys dinars from the bank, which results in profits for the bank. … The total CBI profits from selling dinars to the state constitute the country’s federal reserve, whose growth is associated with state spending. State spending increases in proportion with its oil exports

With the expected increase in Iraq’s oil exports in the near future, the country’s reserves are likely to grow to a large extent in the coming years.

Iraqi MP Abdul Hussein Abtan, who is a member of the parliamentary economic committee, said to Al-Monitor, “The total value of funds and precious metals that make up Iraq’s federal reserves amounts to about $76 billion.” He added, “This reserve was only invested in projects to support the stability of the Iraqi dinar’s exchange rate.”

Abtan also talked about the currency auction, where the bank is putting up amounts of US dollars in cash for auction three times per week, to provide hard currency for traders and suppliers.

 

Sincerely,

BradyBear

Thank you for posting this Brady,

 

  Just wanted to point out to folks that they are referring to the auction process in this article. I know some are under the impression from the gurus that the auctions are in place to remove dinar from circulaiton, which is not correct. 

 

As it says in the article......

 

he state’s revenues are from oil exports, and they are mostly in US dollars. The government buys dinars from the bank, which results in profits for the bank. … The total CBI profits from selling dinars to the state constitute the country’s federal reserve, whose growth is associated with state spending. 

 

 

They then turn around and sell dollars at the auction. So yes the oil does help back the value, but not because of how much they have, just simply because the more they sell, the more they have to exchange dollar for dinar from CBI, the more money the CBI makes and puts in reserves. 

[sandfly]

THANKS

[calkid11]

_{THANKS FOR THE POST.....}