Ministry of Planning

[DoD]

Yota / Thug

Just sharing a little info on my reading as to where my thoughts on a rate an time frame could be.....

 
         The Exchange Rate of Foreign Currency in Economic Feasibility Studies 
 

Quote:

2.      It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports... etc. 

 

Quote:

3.      Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.

 

The Exchange Rate of Foreign Currency in Economic Feasibility Studies
 

Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

 

Estimate the shadow price of foreign currency:

 

1.      It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary  requirements to implement  the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

 

 

* What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar. In particular the following outputs and inputs of foreign currency were distinguished: ·          Export-outputs. ·          Outputs marketed locally that substitute imports. ·          Imported inputs. ·          Inputs produced locally that usually go to exports. ·          Foreign labor. According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules. In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency .... etc.). In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

 

 

2.      Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the  economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports... etc.

 

The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:

 

·          The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.

 

·          The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.

 

·          The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.

 

·          The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.

 

·          This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.

 

And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.

 

 

3.      Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.

 

[Flash101]

5 minutes ago, DoD said:

Yota / Thug

Just sharing a little info on my reading as to where my thoughts on a rate an time frame could be.....

 
         The Exchange Rate of Foreign Currency in Economic Feasibility Studies 
 

Quote:

2.      It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports... etc. 

 

Quote:

3.      Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.

 

The Exchange Rate of Foreign Currency in Economic Feasibility Studies
 

Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

 

 

 

Estimate the shadow price of foreign currency:

 

 

 

1.      It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary  requirements to implement  the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

 

The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

 

 

 

 

 

* What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.   In particular the following outputs and inputs of foreign currency were distinguished:     ·          Export-outputs.   ·          Outputs marketed locally that substitute imports.   ·          Imported inputs.   ·          Inputs produced locally that usually go to exports.   ·          Foreign labor.   According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.   In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency .... etc.).   In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

 

 

 

 

2.      Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the  economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports... etc.

 

 

 

The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:

 

 

 

·          The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.

 

 

 

·          The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.

 

 

 

·          The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.

 

 

 

·          The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.

 

 

 

·          This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.

 

 

 

And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.

 

 

 

 

 

3.      Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.

 

 

There it is $1.134 Thnx DoD +1 from

101

[Flash101]

I'm looking for the date this was printed ?? I want to say I may have read this sum years ago Sorry CRS is coming back again.

 

101

Edited November 21, 2016 by Flash101

[Boozer]

Not sure of print date, But $1.13 Ill take it

[Flash101]

4 minutes ago, Boozer said:

Not sure of print date, But $1.13 Ill take it

Its all about when now

 

[vato96]

Nice let's hope it's legit

[SocalDinar]

Unfortunately this is from Saddam Hussein era of Iraq

Go to the page and click on planning budget which is the preceeding link to this page.

Home  The Ministry In Brief  Capital Budget & Public Contracts  Planning Budget  The Exchange Rate of Foreign Currency in.  

This comes up from time to time over the years and it's easy to get super excited when you first read this

[AJACK1445]

There was a study done in 2013 it should be more now I hope!

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The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.       * What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar. In particular the following outputs and inputs of foreign currency were distinguished:  ·          Export-outputs. ·          Outputs marketed locally that substitute imports. ·          Imported inputs.  ·          Inputs produced locally that usually go to exports.  ·          Foreign labor. According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules. In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency .... etc.). In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.     2.      Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the  economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports... etc.    The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:   ·          The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.   ·          The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.   ·          The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.   ·          The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.   ·          This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.   And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.     3.      Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.   The Ministry In Brief   |   COSQC   |   CSO   |   NCCMD Home I Site Map I FAQ I Newsletters I Contact Us I INQUIRIES / COMMENTS I DISCUSSION FORUM I Login Copyright © MoP Iraq 2012 Powered by Synergy Portal from  Synergy International Systems

[Kraidle]

28 minutes ago, SocalDinar said:

Unfortunately this is from Saddam Hussein era of Iraq

Go to the page and click on planning budget which is the preceeding link to this page.

Home  The Ministry In Brief  Capital Budget & Public Contracts  Planning Budget  The Exchange Rate of Foreign Currency in.  

This comes up from time to time over the years and it's easy to get super excited when you first read this

Darn. Thanks for keeping the hopium back, though. We need a slap of reality every once in a while.

[Flash101]

All most got me 2.

But Thnx anyways DoD

 

101

[Hikmah]

This article was posted on DV in 2010.

 

 

 

[DoD]

Thanks SocialDinar for the confirmation...

I mentioned that 3.208 Dinar to 1 US dollar in another thread an said it wouldn't RV to that right out of the gate but folks like to hear stuff that makes them feel good an live on hopium. The reason I posted this document was showing the Minister of Planning was recommending the 1.134 to 1 US dollar for a period of 3 years. I couldn't find a date of print on this document but very good reading on a lot of it.

Could the IMF an World Bank recommend a higher or lower exchange rate, very possible but the CBI will make the final call. Until I see it come officially by the CBI I will stand by guess (speculation) of the 1.134 to 1 US dollar.... 

3.  Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.

 

[presence]

Despite the logic and authenticity of the article - thanks SoCalDinar - it still feels to me like this is going to 'hit' any any moment!  Go RV!

[sandfly]

Thanks