Is this rate relevant?

[bostonangler]

This is a study from 2012, but is it relevant?

 

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.

http://www.mop.gov.iq/mop/index.jsp?sid=1&id=308&lng=en

 

B/A

 

[SgtFuryUSCZ]

***///

It's 1600 HRS here.... that means The Martini Hour.

Hence - we couldn't help you if we tried !

We'll check in again when the big brains in da house show up !

Cool article, though.... interesting stuff.

[Gypsygirl11]

I remember this article.....I sure as hell hope its reliable!!! Ive been dreaming of a buck all along.

[jeepguy]

   here is your buck  , gypsy gal  

[boosterbglee]

 Nice one!

[SgtFuryUSCZ]

***///

Hey, JEEPGUY.... Santa called, he wants his magical Reindeer back !

Hey DEERie, nice rack !

Hey, DEER, are you the fiancé of the DV MOOSE...?   Show us the ring ! 

[nannab]

2 hours ago, SgtFuryUSCZ said:

***///

It's 1600 HRS here.... that means The Martini Hour.

Hence - we couldn't help you if we tried !

We'll check in again when the big brains in da house show up !

Cool article, though.... interesting stuff.

Would you girls have one for me please?

[SgtFuryUSCZ]

***///

Like one between us...?   C'mon now !

  Let's just assume you were going to have 2 tonite anyway...

that way each of us can have another one ! 

Yuh, we're already 1/2 way in the can over here, Miss Nanna ! 

[jeepguy]

5 hours ago, bostonangler said:

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.

 

5 hours ago, bostonangler said:

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

seems too tell us that  the dinar being at over 3.oo  per  1  against the dollar was not effective in the trading for commerce , such as investment , and import too export offsets ... { such as , I sell something too Iraq for 1.oo  and the offset export from Iraq would be 3.oo  a difference in trade of 2  .oo  and  this would not be conductive too having influx of stock and bond trade ... not a valuable trade off for  the dollar too invest in Iraq at this price { of 3.oo }  .... sooooo               

 

5 hours ago, bostonangler said:

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.

 

this line really looks like the kick start price of the re-instatement values ,  now this will work for investments , as it is a lot closer too the dollar ,and there will be growth too the investment , as we have seen in another article that tells every one Iraq is loaded with riches ...  { now is this the real value they will give the dinar at the kickoff  time I do not know , but ,  if the articles seem too point , was that  the zero`s  , and , the banking articles lean toward , a high out come on , value in the first couple days or weeks ... } just my thinking

[calkid11]

Thank you, keep it up girls good ones

[Laid Back]

$1:1.13 will work for me.

Go RV

Go 2017

[Wiljor]

4 minutes ago, Laid Back said:

$1:1.13 will work for me.

Go RV

Go 2017

I'm good at .10 anything above that........I'm better 

[Gypsygirl11]

2 hours ago, jeepguy said:

   here is your buck  , gypsy gal  

LOL, reminds me of a commercial. OK, let me be more precise.....I have been waiting and waiting and waiting for the Dinar to revalue to $1.17 - there, now make that appear!

[blueskyline]

"This price should be approved for 3 years until re-appreciation by the competent authorities" . I think the competent authority is Alnasari. After all they are using his new 5 year plan overseen by the IMF and WTO with a first time ever agreement with The US Treasury and The Federal Reserve . I think we are well into the reform process.... 

Edited December 22, 2016 by blueskyline

[Gypsygirl11]

8 hours ago, blueskyline said:

"This price should be approved for 3 years until re-appreciation by the competent authorities" . I think the competent authority is Alnasari. After all they are using his new 5 year plan overseen by the IMF and WTO with a first time ever agreement with The US Treasury and The Federal Reserve . I think we are well into the reform process.... 

 WHEN will this be approved for three years? I mean the article is from 2012.

"I think we are well into the reform process" ...

[blueskyline]

2 hours ago, Gypsygirl11 said:

 WHEN will this be approved for three years? I mean the article is from 2012.

"I think we are well into the reform process" ...

Well . Being that we are now into Al Nasari's 5 year plan . We are no longer within the plans of the past . I would guess that includes the 3 year plan from 2012 also ?

[blueskyline]

3 minutes ago, blueskyline said:

Well . Being that we are now into Al Nasari's 5 year plan . We are no longer within the plans of the past . I would guess that includes the 3 year plan from 2012 also ?

This is from Alnasari ."The CBI is currently implementing his plan for the next five yearsin the development of policies, programs and mechanisms work according to what you stated Bstratejath years (2016-2020

[jeepguy]

So if 2016 through 2020 ,  if this idea is correct 2017 is the start

[blueskyline]

don't get me wrong . I'd like to see a Rate too . But we are now within the next plan 

[blueskyline]

8 minutes ago, jeepguy said:

So if 2016 through 2020 ,  if this idea is correct 2017 is the start

That's what a lot of articles have been saying....?

[bostonangler]

20/20 vision? Let's hope it's more like 20/17 vision!!!

Go RVvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvv

 

B/A

[Freedomwish]

1 hour ago, jeepguy said:

So if 2016 through 2020 ,  if this idea is correct 2017 is the start

If this is the case somewhat stating while going through the "process", then the RV might happen by 2020?  well theoretically , per this article....

Edited December 22, 2016 by Freedomwish

[jeepguy]

2 hours ago, Freedomwish said:

If this is the case somewhat stating while going through the "process", then the RV might happen by 2020?  well theoretically , per this article....

That is true,. But we hope the start is next year, for at least a .50 cent value ... 

[nannab]

Sounds good to me jeepguy.