Iraq begins in 2016 to cut its currency against the dollar

[yota691]

Iraq begins in 2016 to cut its currency against the dollar

Saturday 02-01-2016 | 12:35:45

 

 

 

 

 

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Twilight News / fear the economic and financial circles Iraqi that leads the Iraqi Central Bank's decision to reduce the value of the dinar against the dollar as of yesterday, to the detriment of large slices of society, particularly those with limited income, in the event of rising inflation and the change of goods and prices of goods in the domestic market.

Predicted quarters exceeded the dollar exchange rate level set by the «Central» in his decision and of 1190 dinars to the dollar, as it exceeded the exchange rate is currently 1 400 dinars, which will weaken the purchasing power of citizens, as quickly prices will rise to levels that do not actually correspond to the differences in the exchange rate.

He said the Finance Committee in the House of Representatives member Ahmed Hama Rasheed The decision to reduce the value of the dinar against the dollar is not new, and was introduced two months ago, but Central has not been announced, but revealed gradually. 
He added that «the parliamentary Finance Committee discussed ways to raise the value of the dollar without causing overwhelm the local market », pointing out that he called for the preparation of a comprehensive study of the file.

He explained that «the Commission prepared a study with a financial advisors about the lifting of government support for the dollar in the form of a gradual, and the coming days will witness changes in monetary policy, as there are benefits to be reaped from the government by reducing the value of the dinar».

She stressed the parliamentary finance committee member Majda al-Tamimi said in a statement that «the devaluation of the dinar against the dollar and other foreign currencies, is considered one of the alternatives for external borrowing, and allows the state to secure the employees' salaries and control over spending, and thus reduce the fiscal deficit».

Experts concerned and expressed other points of view, some of them stressed the importance of addressing the challenges facing the country now, especially since its economy depends on the proceeds of the single-supplement the annual budget.

And he saw the prime minister for economic affairs adviser appearance of Mohammed Saleh in a statement to «life» that «the decision to reduce the value of the dinar is part of the protectionist policies taken at the financial level, but must be accompanied by measures relating to the availability of a national industry activist with a rise in the pace of domestic production, as a substitute for importer and meets the need of the local market. »

He added that «the country is suffering from a cash shortage and flows of liquidity, not a shortage of other resources and energies and potential, there are many areas that require huge sums of money, including military operations against terrorism that drain huge sums, along with the need to monitor allocations for the reconstruction of the liberated areas, What increases the civil costs within the wheel of the national economy. » He pointed out that «the government has taken during the last period austerity measures, including stopping projects that have not achieved an advanced completion rates, and until such time as the availability of financial liquidity», stressing the need to support the international community for Iraq to help in the reconstruction of infrastructure in the liberated areas. He pointed to the international trends to provide financial grants by the United Nations to help Iraq to cross the stage is going through.

He stressed a spokesman for the Ministry of Planning and Development Cooperation Abdul-Zahra al-Hindawi said in a statement to «life», the need to resort Iraq to external borrowing to cover the deficit and financing for development and increase economic growth, which fell from 8 to 1 percent, and reducing unemployment and poverty. She noted the draft general budget for 2016 to the parties that the government would resort to borrowing them, including «International Monetary Fund» which will lend Iraq $ 1.2 billion, and »National Bank of Qatar» that Iraq will lend 1.8 billion.

He added: «It is natural to be the lenders conditions to ensure the recovery of funds, but some occur political for those conditions in a language, but in the end we have no choice but to get the loans to ensure the continued development wheel rotation, and perhaps it is useful to internal loans point to be considered it less burdensome on the economy, although the economic impact is less than that of Foreign because it is a transfer of purchasing power from the citizen to the government. »

[haymon]

Oh bother......said Eeyeore...

[yota691]

and here the (orginal) reference from the article from above....                                                                                                                                                                  Iraq begins in 2016 to cut its currency against the dollar

 

 

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Version: paper - International Saturday, January 2, 2016 (00:00 - GMT)

Last update: Saturday, January 2, 2016 (00:00 - GMT) BAGHDAD - 

Fear the economic and financial circles Iraqi that leads the Iraqi Central Bank's decision to reduce the value of the dinar against the dollar as of yesterday, to the detriment of large slices of society, particularly those with limited income, in the event of rising inflation and the change of goods and prices of goods in the domestic market.

Predicted quarters exceeded the dollar exchange rate level set by the «Central» in his decision and of 1190 dinars to the dollar, as it exceeded the exchange rate is currently 1 400 dinars, which will weaken the purchasing power of citizens, as quickly prices will rise to levels that do not actually correspond to the differences in the exchange rate.

He said the Finance Committee in the House of Representatives by Ahmed Rashid flesh that «the decision to reduce the value of the dinar against the dollar is not new, and was introduced two months ago, but Central has not been announced, but revealed gradually». He added that «the Parliamentary Finance Committee discussed ways to raise the value of the dollar without causing overwhelm the local market», pointing out that he called for the preparation of a comprehensive study of the file.

He explained that «the Commission prepared a study with a financial advisors about the lifting of government support for the dollar in the form of a gradual, and the coming days will witness changes in monetary policy, as there are benefits to be reaped from the government by reducing the value of the dinar».

She stressed the parliamentary finance committee member Majda al-Tamimi said in a statement that «the devaluation of the dinar against the dollar and other foreign currencies, is considered one of the alternatives for external borrowing, and allows the state to secure the employees' salaries and control over spending, and thus reduce the fiscal deficit».

Experts concerned and expressed other points of view, some of them stressed the importance of addressing the challenges facing the country now, especially since its economy depends on the proceeds of the single-supplement the annual budget.

And he saw the prime minister for economic affairs adviser appearance of Mohammed Saleh in a statement to «life» that «the decision to reduce the value of the dinar is part of the protectionist policies taken at the financial level, but must be accompanied by measures relating to the availability of a national industry activist with a rise in the pace of domestic production, as a substitute for importer and meets the need of the local market. »

He added that «the country is suffering from a cash shortage and flows of liquidity, not a shortage of other resources and energies and potential, there are many areas that require huge sums of money, including military operations against terrorism that drain huge sums, along with the need to monitor allocations for the reconstruction of the liberated areas, What increases the civil costs within the wheel of the national economy. »He pointed out that «the government has taken during the last period austerity measures, including stopping projects that have not achieved an advanced completion rates, and until such time as the availability of financial liquidity», stressing the need to support the international community for Iraq to help in the reconstruction of infrastructure in the liberated areas. He pointed to the international trends to provide financial grants by the United Nations to help Iraq to cross the stage is going through.

He stressed a spokesman for the Ministry of Planning and Development Cooperation Abdul-Zahra al-Hindawi said in a statement to «life», the need to resort Iraq to external borrowing to cover the deficit and financing for development and increase economic growth, which fell from 8 to 1 percent, and reducing unemployment and poverty. She noted the draft general budget for 2016 to the parties that the government would resort to borrowing them, including «International Monetary Fund» which will lend Iraq $ 1.2 billion, and »National Bank of Qatar» that Iraq will lend 1.8 billion.

He added: «It is natural to be the lenders conditions to ensure the recovery of funds, but some occur political for those conditions in a language, but in the end we have no choice but to get the loans to ensure the continued development wheel rotation, and perhaps it is useful to internal loans point to be considered it less burdensome on the economy, although the economic impact is less than that of Foreign because it is a transfer of purchasing power from the citizen to the government. »

[nannab]

Thank you Yota and Happy New year everyone. This is our year! Please currency God?

[vato96]

I have alway thought Mohammad Salah was a moron. In ways he looks like it now. By lowering the value he gets many people to cash in, and when he has these dinar in hand he does not have to cover them in the event of a rv. He will draw the weaker investors out by doing this as well.

[jeepguy]

vato 96 ,  why would they cash in  ?   is this article not saying  the value  of the dinar is going the wrong way ,   ?    what we are looking for is  value too head toward 1,ooo dinar per  dollar  ,  or  any thing  from 1160  or  what ever the current value is  to the  o.ooo   +   side     in the above  .1 cent   mark  ...   so if this is going wrong way why would they cash in , or get rid of more dinar ...   unless they in Iraq  have lost control of the economy and are  about too crash ...  and if this is true  the loan of  100  billion  will be  lost  in the pay out !   or am I  lost in what this article is stating ?

I don`t  think  they are saying  1 dollar  is 400 dinars ...   1  400  

[vato96]

No the people will lose confidence in the dinar and trade it in for dollars because its value is dropping. Its a tactical move. To erase or collect the amount in circulation.

[aaanth]

vato 96 ,  why would they cash in  ?   is this article not saying  the value  of the dinar is going the wrong way ,   ?    what we are looking for is  value too head toward 1,ooo dinar per  dollar  ,  or  any thing  from 1160  or  what ever the current value is  to the  o.ooo   +   side     in the above  .1 cent   mark  ...   so if this is going wrong way why would they cash in , or get rid of more dinar ...   unless they in Iraq  have lost control of the economy and are  about too crash ...  and if this is true  the loan of  100  billion  will be  lost  in the pay out !   or am I  lost in what this article is stating ?

I don`t  think  they are saying  1 dollar  is 400 dinars ...   1  400  

 

it would seem the reference is to investors cashing to retrieve what little they can before the dinar goes bust, as this article would seem to imply may happen.  $500 per million is better than a total loss.  i think this is a fear tactic to draw out the superficial (weaker) investors both personal and public.  i think we are on the verge of a reversal in our favor as there is no way iraq can sustain any kind of economic growth or reform with a currency that's worth that little...  maybe for a minute but not ongoing...  i could write more but that's the gist of it.  also, did anyone actually see these numbers show up on the CBI?   jmo

[vato96]

I agree there can be no growth in their economy with the dinar that is valued so low

[gymrat76541]

Went into this investment thinking it was better than playing the lottery.

 

Powerball this weekend is: Est. 340 million, odds of winning: 1 in 292,201,338.

 

Looks about the same as our dinar at this point! LOL

[eburt]

Ok this does not make any sense.  Why devalue your currency??? Does does not line up with the 2016 Budget and Tariff Taxes that they are looking to implement in 2016.  How are they gone to pay back the loan(s) with worthless dinar?  Not making any since....Can someone explain this?

[Palmtree1970]

Good luck finding someone to explain anything to do with Iraq ....I Wrote my dinars off years ago if anything did ever happen its a bonus ,certainly wouldent rely on the dinar to change my life ...

[Officiallytook]

Scare tactic, smoke I say

[10 YEARS LATER]

Went into this investment thinking it was better than playing the lottery.

 

Powerball this weekend is: Est. 340 million, odds of winning: 1 in 292,201,338.

 

Looks about the same as our dinar at this point! LOL

Admittedly, the Iraqi Lottery has been a real Long Shot . . .   

[GregHi]

Just smoke or a scare tactic. They have real plans to increase the value..

[iamtheeggman]

Any new info GregHi?

[ChuckFinley]

No the people will lose confidence in the dinar and trade it in for dollars because its value is dropping. Its a tactical move. To erase or collect the amount in circulation.

I am feeling the same way. What I would be interested in knowning is how many of those notes are 1k or 5k notes. With all the CBI sales the 25k notes should be getting down there. Once you see those lower three zero notes you know that there can not be much dinar left.

[new york kevin]

I have alway thought Mohammad Salah was a moron. In ways he looks like it now. By lowering the value he gets many people to cash in, and when he has these dinar in hand he does not have to cover them in the event of a rv. He will draw the weaker investors out by doing this as well.

 

Will he not also be de-dollarizing Iraq internally ?

[Boozer]

Ok this does not make any sense.  Why devalue your currency??? Does does not line up with the 2016 Budget and Tariff Taxes that they are looking to implement in 2016.  How are they gone to pay back the loan(s) with worthless dinar?  Not making any since....Can someone explain this?

 

Please read aaanth  post.. they have to draw in as much dinar from Iraq as they can.. why pay 1 to 1 if you can get it for .25....if you where a bank and you could trade it for .25  or 1.00 which would you pay out...RV is coming  SOON . this is good for us. I would not be surprised if it takes another dip... Bring in all the IQD, Then the big Bang there it is... just calm down,, this is the storm before the calm  

Edited January 2, 2016 by Boozer

[Laid Back]

CBI strategy to reduce the note count even more.!!

Go CBI

Go dinar

Go increase exchange rate

Go $1:1

Go 2016

[Officiallytook]

Exactly, boozer

[TennesseeCherokee]

Please read aaanth post.. they have to draw in as much dinar from Iraq as they can.. why pay 1 to 1 if you can get it for .25....if you where a bank and you could trade it for .25 or 1.00 which would you pay out...RV is coming SOON . this is good for us. I would not be surprised if it takes another dip... Bring in all the IQD, Then the big Bang there it is... just calm down,, this is the storm before the calm

Boozer, man glad to see some positive vibes from you in this new year !

[calkid11]

Thank you Yota

[vato96]

Here is food for thought if it takes 1400 dinar to the dollar then if they moved the decimal 3 places that means the dinar would be worth a dollar and forty cents!!! I think we would all be ok with that

[sandfly]

THANKS