Economists: Dollar bubble caused by pessimistic expectations and preference for foreign exchange expanded ..tgarir

[yota691]

Economists: Dollar bubble caused by pessimistic expectations and preference for foreign exchange expanded ..tgarir

06/05/2015 01:26 | Number of Views: 174

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/ Source News / Elmejrr Alaguetsada..aza specialists in economic affairs, the continued high price of the dollar against the Iraqi dinar for the continuation of the government's decision and determine validity of Parliament to sell it. Economists said the rise in the dollar the country has experienced in recent times just a bubble caused by the return of speculation, Marjaheen to recover dinar recovered in the near-term rise in global oil prices.

Has stressed the economic Maitham Laibi that "the dollar price rises due to the continuing resolution the government and parliament determine validity sell it, despite the fact that the central bank exceeded this decision, but he does not sell openly as before."

 "The pessimistic expectations are another important reason to speculate it, because there is a cash preference dollarised instead of continuing to accept the dinar as a store of value, which led to the continuation of its high price."

 He noted that "Other decisions, such as the imposition of a tax on every dollar is being converted to the outside, through the banking system also contributed to the price hikes and the continued rise in the dollar exchange rate."

 Experiencing banking offices and its rise is a precondition price of the dollar against the dinar despite recent central bank action now to continue to rise is still valid

Scored dollar against the Iraqi dinar sudden rise is the highest of its kind in two years than a thousand and two hundred dinars to about three hundred thousand dinars, the exchange rate to cast a negative shadow on the new Iraqi market transactions.

He was behind the rise for many reasons, including the current year budget, which reduced the dollar selling by the Central Bank of Iraq Law, the last and the development of new mechanisms for sale through the auction, and also for asylum speculators in the Iraqi currency market to raise prices as well as the security and political unrest in the country.

And the Iraqi currency market volatile benchmark return of high value to the US dollar, with the central bank policies aimed to reduce the sale of the dollar in the auction public, and speculation in the dinar witnessed recently.

And it saw the dollar against the Iraqi dinar sudden rise is the highest of its kind in two years than a thousand and two hundred dinars to about three hundred thousand dinars, the cast of the new exchange rate negative shadow over the Iraqi market trading.

He was behind the rise for many reasons, including the current year budget, which reduced the dollar selling by the Central Bank of Iraq Law, the last and the development of new mechanisms for sale through the auction, and also for asylum speculators in the Iraqi currency market to raise prices as well as the security and political unrest in the country.

For his part in the parliamentary finance committee member, that the issue of Iraqi currency more than the limit will lead to the low level of the Iraqi dinar against the dollar and currencies Alokhry.oukal Committee member MP Ahmed Sarhan Sarhan said that "the issuance of Iraqi currency more than the limit will lead to the low level of the Iraqi dinar against the dollar and other currencies as well as increased financial and economic inflation in Iraq, which is already suffering a financial and economic crisis stifling. "

Ahmed added that "the Finance Committee met a few days ago with officials in the Iraqi Central Bank did not raise the question of pumping currency of 50 thousand dinars category and was the subject put on the market right it will affect a significant impact on the Iraqi economy because the Iraqi currency adequate and plentiful more scheduled to lead to inflation. "Noting that the variation in world oil prices in the last period of the impact without doubt in the financial and economic situation of Iraq.

The Central Bank of Iraq announced the final touches to put currency 50 000 dinars category in the markets.

So she said to a member of the parliamentary Economic Committee Najiba Najib said the "agreement on the issuance of new currencies of the 50 and 100 000 dinars category has been, in addition to issuing the CBI 25 thousand dinars category of the new model."

She said Najib saying that "the project to delete the zeros of the currency will not be implemented because of the lack of success of the project appropriate economic environment, despite being one of the objectives of the Central Bank," adding, "was equipped for the issuance of coins of the type 50 100 thousand dinars by the central bank, it has been designed the form of those currencies. "

She noted a member of the parliamentary Economic Committee, "not to the Iraqi currency harmony with trading volumes and revenue", noting that "the issuance of large coins will help in carrying large amounts of money simple and sizes without the need for bags to carry cash."

For his part, member of the Finance Committee Masood Haider "The draft put forward two currencies cash prizes of category 50 000 dinars and 100 000 dinars have been by the Central Bank noting that" the project has been discussed with the Finance Committee in the House of Representatives is not in good standing. "

However, Haider saying that "the current financial situation may prevent speeding up the process thrown into the market during the current period," pointing out that "the Central Bank has provided an outline of those currencies by identifying colors and logos and symbols to be used in the new banknotes." He said, "in If the lifting of the zeroes of the Iraqi currency, this in turn will include two new categories. "

For its part, the Finance Committee in the House of Representatives denied the government's inability to pay salaries next month after June, while confirming that the Iraqi financial reserve exceeds 60 billion dollars, revealed the crystallization mechanism to fight money laundering.

The committee member said Masood Haider during a television interview, said that «talk about the inability of the Iraqi government to pay the employees' salaries after next June, is part of the propaganda against the government and try to make it fail», indicating that «the state revenues four billion dollars of oil only, while the salaries of employees of three billion and $ 400 million, in addition to the existence of other sources of revenue ».

He said Haider, that «Iraq has substantial financial reserves exceed $ 60 billion, and 80 tonnes of gold as a support for the currency», stressing that «Iraq is not bankrupt countries, but passes a financial crisis as a result of irrational policies during the last period».

He revealed Haidar «Finance Committee will elaborate the project and the mechanism to fight money laundering and to develop a mechanism to fight, and will be the Central Bank of Iraq as part of that», stressing the need to «improve the banking sector to be supportive of the economy, as well as diversify its sources of state revenues and go to the tax and customs solution Annie crisis current ».

On the other hand, stressed the economic and investment commission parliamentary member of the Charter of Hamdi, on Monday, the central bank can not delete the zeros due to the unstable economic situation, as pointed out that the bank regarding the treatment of these things will be printed new financial category worth fifty thousand dinars.

Hamidi said in the statement it issued, that «the economic and investment commission parliamentary hosted Sunday, the CBI director on the Keywords, and they discussed issues concerning the provision of liquidity and increase demand for the dollar as well as the disparity in the exchange rate».

She said that Hamdi «Keywords stressed that the process of handling these things, where they will be printed new financial category worth fifty thousand dinars», indicating that «Bank for printing percent category thousand dinars to later».

She Hamdi that «the central bank can not delete the zeros because of the current situation and the unstable Iraqi economy», calling on the central bank to «increase the revenue that will be supplied cash and liquidity and difficult process which eases the burden on the citizen».

He said the governor of the bank on the Keywords in 3 of last March, said the project to delete the zeros existing project has been put into practice and we gave the green light to start with », adding that« The project needs a period of time may extend to two years or more.

He accused the central bank, earlier, government bodies obstructing the monetary reform and vowed persecuting, blaming those actors responsible for exposing the financial interests of the country at risk.

[italiancat]

Thanks Yota and good morning. I'm a little confused. Why would they print a larger bill without added value to their currency? Doesn't make sense to me.

[magawatt]

Disinformation isn't as easy as one might think.

[235snack]

If I am not mistaken, our country printed up $100,000 notes to transfer between major banks so they would not have to have bulk currency in there care.  Those notes were the basis for their lending ability and strength of the bank, they were no good to the consumer, only the major banks. Maybe the 50,000 and 100,000 notes they are printing is just that. The story ends if they release these notes to the public.

[Rabbi]

Haider states, "in if the lifting of the zeroes in the Iraqi currency, this in turn will include for two new categories."  So, in this context, he's telling us that they are going to first issue these 50K and 100K notes! At the same time, he's telling us that, upon the lifting of the zeroes, there will be two new categories included in the LDs, i.e., a new 50-dinar and the introduction of a 100-dinar note.  He's also telling us that the implementing the delete-the-zeroes project will requires the need for the current roster of LDs, as well as the two new categories.

 

The story doesn't end if these are issued. Delayed, very possibly.  But this story certainly has another act!  And it's an act that, in the end, will require the use of a one-dinar note, a five-dinar note, a ten-dinar note, a twenty-five-dinar note, as well as a 250-fil and a 500-fil coin.  The exchange rate needs to be "slightly less than a dollar" for these LDs to be put in use.

[skeetdog]

Thanks Yota....It's not a note...it's the note's worth- 50,000 dinars...approximately around $46 USD....Thus a 50 Dinar note... would be almost a $50 US Dollar....The same for the 100,000 note category...

[djgabrielie1]

The lack of money is the root of all evil.

Mark Twain

 

[SgtFuryUSCZ]

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So yer sayin' almost a 1-1 there SKEETer... ? 

When...?    Where....?

 

And DJG...FYI -  we were bad BEFORE we were broke !