Friday – The CBI announces “financial stability” for Iraq. [The establishing of a government should be all that’s left?]
Iraqi president, Masoum, receives a special US envoy whose purpose was to support the “stability of Iraq” and continue to provide assistance as per previous agreement.
Iraq is discontinuing the use of US dollars for trade transactions with Iran and will use the Euro, the Rial and the Dinar. The 2% compliance issues are no longer a concern.
16 political parties agreed to form a coalition of “reform and construction” which was announced as the most powerful Parliamentary block, calling themselves the “Alliance.”
On Monday, the new session of Parliament opened, deputies took their oath of office, and then recessed for the day. They will resume on Tuesday to elect the presidencies and other matters.
[On the surface, financial stability and a stable government seem to prevail……let’s see the CBI’s next move.]
I think you fail to understand the relationship between the Vietnamese dong and the US dollar. Although the dong is not freely convertible, it remains loosely pegged to the dollar in an arrangement known as a ‘crawling peg’. The USA is Vietnam’s top trading partner, so why would they jeopardise that foreign investment coming in by making it more expensive for them to buy Vietnamese goods?
Fluctuations in Vietnamese inflation also alter the difference in the inflation rates of Vietnam and its trading partners. This will have an impact on the exchange rate of the two currencies. If Vietnam’s inflation rate exceeds that of its trading partner then there will be upward pressure on the real exchange rate. There would be a consequent deterioration of Vietnam’s competitive position, with all the subsequent negative effects on the economy. To prevent a rise in the real exchange rate, the dong has to depreciate relative to the foreign currency in order to reflect the inflation differential.
However, since the beginning of 2013, the real exchange rates of the dong with the US dollar and the renminbi have both been larger than one. This means that Vietnam’s competitive positions in its bilateral export markets with China and the United States have deteriorated. To improve competitiveness, the SBV could tighten monetary policy to reduce inflation. Alternatively, it could allow its currency to depreciate faster. Both entail short-term pain and long-term gain. The SBV will likely justify this by saying that it is necessary to bring jobs to Vietnam in the age of globalisation.
Iraq as big export of crude oil . Inflation will less faster than you expected. I have seen a once that cbi put 1.2 dollar rate in the website . I think iraq will make adjustments rate and delete 3 zero and reduce the rate and peg dollar to boost export .
I really hope global currency reset could be happens and vietnam reinstant their currency . I will put my money in vietnam stock before gcr be happens .
Can anyone explain to me why must they pass the HCL law before there can be a revaluation of the dinar? What is the connection? It certainly doesn’t look like the GOI will ever agree on this or even bring it up for a vote. They keep pushing it off to the “next session” year after year... Is it at all possible that we can ever see an RV without the HCL law passing?
3 April 2018 Whitelions: Is it time to delete three zeros from the currency? The central bank submitted a project to delete three zeros of the currency, in order to confront inflation and stimulate the economy, but was forced to stop because of the deteriorating security and political situation in the country.
The governor of the Central Bank, Ali al-Alaq, in a discussion session with the editors of a number of Iraqi media, including “Economy News”, “The subject of deleting zeros from the currency is ready, but it needs an environment suitable to apply,” noting that ” To prevent manipulation and fraud by the owners of weak souls. ”