Iraq begins in 2016 to cut its currency against the dollar

[DinarThug]

CNN. Broadcasting While The Iraqis Decide Whether To Cut A Big One !

Iraq begins in 2016 to cut its currency against the dollar

Saturday 02-01-2016 | 12:35:45

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. »

http://www.ara.shafaaq.com/48000

[jg1]

Bump.

[Calijim1]

They reduced the note count and now cry about a cash shortage? How about borrow as many dollars as possible first then revalue the dinar and pay it all back.... Hmmmm!

[easyrider]

1190 is the rate to be compatible with the 2% compliant rate for article 8.. adjustment bank and street rate. From what i have read this is NOT the official exchange rate.

Edited January 2, 2016 by easyrider

[djgabrielie1]

Wish I had an answer. Makes no sense to me. Perhaps linked to falling oil prices. Their main export just isn't worth as much anymore so their currency has got to follow.

[sandfly]

THANKS CLOWN

[NoviceInvestor]

How low can it go?...

[Freedomwish]

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

 

Yes indeed, we would! 

[GregHi]

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

Bato, I believe you have it reversed. For easy math let's use the old example where a single dinar is worth .00086 in USD dollars now and they said move the decimal over 3 spots it means one dinar is worth .86 USD cents .. If you flip the equation to the value in dinars, not USD, then you have say it takes 1182 dinars to equal 1USD dollar. If they move the decimal over 3 then it takes 1.182 dinars now to equal that same USD dollar. If they devalue the dinar to say 1500 dinars to 1 USD dollar, and then move the decimal over 3, it now takes 1. 5 (one and a half) dinars to equal 1 USD dollar. If they were to degrade it even further to say 5000 dinars to one dollar, then move the decimal over three spots it then would take 5 Dinars to equal 1USD dollar.( or 1 dinar only worth 20 USD cents reversely!)

So in your example of 1400 dinars. One dinar would not be worth 1.4 USD, it would take 1.4 dinars to equal 1USD Dollar.

I hope that explanation makes sense..

Any new info GregHi?

No new news unfortunately.. My friend hasn't heard back from him yet. He just tells me he is a busy person and only hears from him occasionally.

Edited January 2, 2016 by GregHi

[jeepguy]

well  if  some of these  ideas  are right ,  the central bank devalues  the dinar  way  down  ,,   and with that  ,  they can now  buy back  those  milliuons of dinar  at the  u.s.  & Canadian  border crossing        

[yota691]

Devalue the dinar..not according to this statement....

"It pointed out that" the way the other until now the dollar price equivalent to almost dinar,

Read more: http://dinarvets.com/forums/index.php?/topic/213665-a-member-of-the-parliamentary-economy-in-2016-confirms-that-the-salaries-of-insurance-of-oil-reached-20/#ixzz3w5shH36a

 

[MyLadiesDaddy]

the decision to reduce the value of the dinar is part of the protectionist policies taken at the financial level

 

These people are psychotic, insane, Neanderthals. There getting their butts screwed 

 

over severely by the banksters and narcissistic politicians all whilst listing to the most 

 

insane religious freaks on the earth.

 

And what is it that gets them upset? Don't say something bad about someone,

 

you may get crucified.

 

     His nephew, Ali Mohammed al-Nimr, was sentenced last year to death by crucifixion for participating in the protests while he was 16 or 17 years old, also drawing widespread international condemnation.

Read more: http://dinarvets.com/forums/index.php?/topic/213672-saudi-arabia-executes-prominent-shiite-cleric-and-46-others-in-12-cities/#ixzz3w6AdPcWO

I am fast loosing all hope for humanity 

 

          

[justchecking123]

the decision to reduce the value of the dinar is part of the protectionist policies taken at the financial level

These people are psychotic, insane, Neanderthals. There getting their butts screwed

over severely by the banksters and narcissistic politicians all whilst listing to the most

insane religious freaks on the earth.

And what is it that gets them upset? Don't say something bad about someone,

you may get crucified.

His nephew, Ali Mohammed al-Nimr, was sentenced last year to death by crucifixion for participating in the protests while he was 16 or 17 years old, also drawing widespread international condemnation.

Read more: http://dinarvets.com/forums/index.php?/topic/213672-saudi-arabia-executes-prominent-shiite-cleric-and-46-others-in-12-cities/#ixzz3w6AdPcWO

I am fast loosing all hope for humanity

So what's your point?

All things point to them at least trying to get things done for a change.

[chinadawg]

IMF-WB IN CHARGE....THEY MUST GET TO THE 2% SPREAD....( per the IMF )...THEY DEVALUED A FEW DAYS AGO TO 1182....DID NOT MAKE THE 2% SPREAD...HAD TO PUNT THE BALL.....NOW THEY DEVALUE TO 1190......= 2% SPREAD.....WE CLOSE....HANG ON.

[TQueezy]

Please oh please someone copy paste or link to where it says they have to have a 2% spread in their currency's market rate and official bank rates when they're on a peg/artificial program rate. Iraq doesn't have an internationally recognized and traded currency, and even then there is nothing in the IMF's general membership policies that states a sovereign nation has to maintain a 2% spread or "compliance" with their currency.

 

https://www.imf.org/external/pubs/ft/aa/#art8

[TQueezy]

In case anyone is curious if I did any research:

 

This is the document so many "gurus" want to quote. Nothing in there about a 2% spread.

https://www.imf.org/external/pubs/ft/aa/#art8

 

Also this:

http://www.imf.org/external/pubs/ft/issues/issues38/ei38.pdf

 

From the people over at Dinar Updates dot com.

 

Don't just absorb and regurgitate things people say without researching, please.

[TQueezy]

Lots of material here, including the 2015 Article IV consultation.

 

http://www.imf.org/external/country/irq/

[WheresmyRV?]

I don't know how they are going to have the tariffs start up and at the same time go up to a 1190 rate. I'm betting that they will put the tariffs back on hold.

[skeetdog]

Thanks DT...What's the chances this could be all smoke-n-mirrors...The calm before the storm...This has all the effects to a last ditch effort to draw-in dinar off the street, because of the dinar devalue....And to reduce the dollar count inside the CBI , as the dinar is traded for the higher valued dollar...

[Dinarian64]

Wrong way

:/

Fear is first word - is that lost in translation? Or is it about the fear? Getting people to cash in as much dinar as possible does make sense… However it also makes sense because economy is going down the hill with all the war and low prices for oil for them. So I think gathering up dinar is lovely wishful thinking - may it be so are not on my losses spread but I lost 25% on my investment. Not great...

.

Edited January 2, 2016 by Dinarian64

[sxsess]

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

No doubt Gymrat this is becoming a joke. I hate losing, but especially my family and friends I got into this mess. I feel like a fool.

[Dinarian64]

No doubt Gymrat this is becoming a joke. I hate losing, but especially my family and friends I got into this mess. I feel like a fool.

Reality check. Don't bet what you're not willing to lose.

Edited January 2, 2016 by Dinarian64

[newbieDA]

check out this to find why the rate hiked

 

http://dinarvets.com/forums/index.php?/topic/213259-economist-to-hold-the-government-to-raise-the-sale-price-of-the-dollar-to-the-central-bank-exaggerated/

[sxsess]

Reality check. Don't bet what you're not willing to lose.

Reality check I never have.

[NoviceInvestor]

Drats... What a scam this all is ...