Central: Iraqi dinar hard currency

[yota691]

Central: Iraqi dinar hard currency          

9/2/2015 0:00 

Despite the slight rise in the dollar exchange rate 

 BAGHDAD Mostafa Hashemi 

caused Article 50 of the Budget Law for 2015, confusion evident in the dollar's exchange rate against the dinar, while the Governor of the Central Bank economist counting this article to intervene in the work of an independent institution. 

He said the central bank governor Acting Dr. Ali Keywords that this article surprised us and we will seek to cancel the legal process. 

He said in a statement the "morning" that there are efforts to create monetary stability would return check for investment and increased purchasing power, stressing the central measures will keep the Iraqi currency is difficult in every sense currency. 

He noted that the identification of the Central Bank and shall be obligated to sell $ 75 million a day in the auction is not possible, stressing the quest for the issuance of treasury bonds in dollars and for a definite period, as it will contribute to the achievement of stability. 

He pointed relationship to the Central take new procedures through the opening between him and the concerned banks and at all levels to get to some of the methods that aim to create instability. 

For his part, economist Dr. Hilal Taan: Article 50 of the Budget Law contributed to the rise in the dollar exchange rate in the home to more than 125 thousand after it was 122 000 dinars per hundred dollars. 

The in Article 50 of the Budget Law for 2015, "the central bank is committed to identifying sales of foreign currency (dollar) in daily auction ceiling does not exceed $ 75 million a day with the exercise of justice in the sales process." 

He added, Taan told the "morning" that this material can be necessarily be considered as interference in the work of the Central Bank, which is an independent institution under the Bank 56 Act of 2004, where he was the central selling daily amount between 250 to 300 million dollars to keep pace with the open market policy, which represents one of the instruments of monetary policy. 

He said that after that ensures the budget law materials; fifty-bind the central bank sold $ 75 million just in the day led to a lack of supply with an increase in demand which led to a rise in the dollar price. 

On the possibility of appeal in this article explained Taan it after it became effective the law has no right except for the presidency challenged Almaldh 50 of the Budget Law because the sale of $ 75 million in a market that accommodates 300 to $ 400 million would definitely lack in the supply and increase the growing demand for bringing the dollar exchange rate, describing it as a procedure is not true. 

He pointed out that forcing the bank to sell a fixed amount per day without taking into account the demand in the the domestic market, leading to exchange rate fluctuations. 

He explained that the sales problem is not foreign remittances, but at home, where the local currency bloc too big of 35 trillion dinars in circulation, a haunt of $ 75 million, and for us to imagine the rise in the dollar's exchange rate. 

saw Taan that The only action is to increase the amount of supply to 150 million, as well as to tighten control over smuggling ports that may be through government banks or civil control over foreign exchange and not reduce the quantities sold to the interior. 

The central bank's shares to reduce the dollar exchange rate to acceptable rates ranged between 115 and 120 000 dinars after the dollar corresponds to about 4000 dinars before 2003.

[Tirebiter]

Thanks yota for all the work and articles. I find it interesting that there seem to be so many more articles lately directly discussing the exchange rate, whether they be speculative or just in relation to monetary policy. I wonder how much correlation there might be between the strengthening value of the USD and lower oil prices against the Iraqi dinar. I don't know what will ultimately trigger an RV but find it interesting they seem to be apparently trying to get to less USD reliance other than in relation to oil. Thanks again.

Edited February 8, 2015 by Tirebiter

[dontlop]

Ya they really got it together

They are supposed to know monetary policy

The only thing that could happen if they cut the amount of dollars they put into the economy

They would be harder to get therefore they woukd get more expensive

It makes no sense to do otherwise unless they attached legal tender laws to it

And as they collected dollars they woukd have to increase the official exchange rate or print up more dinar

They shoukdnt be running a country , they aren't intelligent enough in my opinion

They just started this last week

It didn't take long for then to see the dinar value drop compared to the dollar

It's banking 101 supply and demand and they had no clue

They must just be a bunch of followers

Someone says something and the cheerleaders follow along

The dinar is pegged to the dollar

There is no strengthening of the dinar with oil prices

They just get less dollars for the oil

It's sickening watching these Iraqis pretend they know what is going on

Edited February 9, 2015 by dontlop

[DinarThug]

Thx For The Post Brother Yota !

 

       

 

 

 

For Some Additional Perspective - Here's (Ktfa Newshound) Randy's Take On It ...

 

 

Here are some thoughts and opinions that got provoked with the reading of this article

The governor of the CBI did not like what came out in Article 50 of the budget....it more than ties their hands if it is implemented

He convinces the Economic Committee to raise issue with Article 50 and it eventually is thrown to the Federal Court this past week

Meanwhile President Masum temporarily loses his esteemed pen reserved for the signing of such monumental documents....seems he wants this remedied before he puts his pen to this historic document recognizing the full ramifications it will have for all of Iraq and he world

If Masum has signed this then the other details have been worked out....worked out to the satisfaction of the CBI.....don't go messing where the 12 do not want your interference to start with....thus the independence set up for all central banks

Can't blame the Finance Committee for trying though, they didn't know any better

So much for thoughts and opinions


Aloha

Randy