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IMO, anything less than $1 will NOT benefit the IRAQI economy. It has to start out on a level playing field with the currency that makes the OIL money tick, PETRO DOLLARS ! 1 to 1 gets it started in the right direction. After that, the law of supply and demand takes over . Years ago they wanted to get back to the "GOLDEN DINAR" which was valued at $3.33 US . ANY WHERE in the middle of THAT and I'm as gone as last SUNDAYS paper !

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Financial expert: The sale of currency is one of the doors of theft of state funds

December 26 2017 10:32 p

Advisor to the Prime Minister for Investment Thaer al-Fili,

A financial expert confirmed that the sale of the dollar in the Central Bank of Iraq is one of the doors of theft of state funds and economic depletion.

"The fictitious profits that banks earn from this auction have exceeded hundreds of billions of dollars, at a time when more than 90 percent of its work depends on false invoices, companies and individuals with fake names," said Thayer Al Faily, a financial expert and consultant.

The financial adviser added that "this auction disrupted the contribution of banks to development, and disrupted the work of the Iraqi private sector, and therefore the Iraqi state is headed to close the dollar sale window in the first quarter of 2018.

"The US Coalition Provisional Authority has created a foreign currency sale window and has continued to date," he said. "The timing of the financing of the Iraqi state's purchases of dollars was due to the fact that oil sales were - and still are - stored in the US Special Oil Sales Fund, Noting that "the currency auction does not exist in any country in the world, and Iraq is now the only country that has a currency auction, in this way that contribute to the loss and full depletion of the Iraqi economy."

 

http://www.thebaghdadpost.com/ar/story/73589/%D8%AE%D8%A8%D9%8A%D8%B1-%D9%85%D8%A7%D9%84%D9%8A-%D9%85%D8%B2%D8%A7%D8%AF-%D8%A8%D9%8A%D8%B9-%D8%A7%D9%84%D8%B9%D9%85%D9%84%D8%A9-%D8%A3%D8%AD%D8%AF-%D8%A3%D8%A8%D9%88%D8%A7%D8%A8-%D8%B3%D8%B1%D9%82%D8%A9-%D8%A3%D9%85%D9%88%D8%A7%D9%84-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D8%A9

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7 hours ago, Laid Back said:

Ok, we understand you (CBI) can't float the dinar in this conditions... That means you have a different plan.!

 

Looks like the CBI is planning to remove exchange control in the near future.

 

Go CBI 

Go new monetary policy 

Go RV

Go 2018

 

 

 

 

 

 

 

 

And here I thought that everything with the GOI of Iraq floated in the toilet.:lol:

 

 

5 hours ago, chinadawg said:

Well KAP just took another DUMP.......Hope Santa brought him plenty of new underwear,,,he going to need them,,,,he may want to invest in a case of depends.

Oh heck NO! He/She is def on my naughty list.

 

 

 

 

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45 minutes ago, Carrello said:

 

 

Financial expert: The sale of currency is one of the doors of theft of state funds

December 26 2017 10:32 p

Advisor to the Prime Minister for Investment Thaer al-Fili,

A financial expert confirmed that the sale of the dollar in the Central Bank of Iraq is one of the doors of theft of state funds and economic depletion.

"The fictitious profits that banks earn from this auction have exceeded hundreds of billions of dollars, at a time when more than 90 percent of its work depends on false invoices, companies and individuals with fake names," said Thayer Al Faily, a financial expert and consultant.

The financial adviser added that "this auction disrupted the contribution of banks to development, and disrupted the work of the Iraqi private sector, and therefore the Iraqi state is headed to close the dollar sale window in the first quarter of 2018.

"The US Coalition Provisional Authority has created a foreign currency sale window and has continued to date," he said. "The timing of the financing of the Iraqi state's purchases of dollars was due to the fact that oil sales were - and still are - stored in the US Special Oil Sales Fund, Noting that "the currency auction does not exist in any country in the world, and Iraq is now the only country that has a currency auction, in this way that contribute to the loss and full depletion of the Iraqi economy."

 

http://www.thebaghdadpost.com/ar/story/73589/%D8%AE%D8%A8%D9%8A%D8%B1-%D9%85%D8%A7%D9%84%D9%8A-%D9%85%D8%B2%D8%A7%D8%AF-%D8%A8%D9%8A%D8%B9-%D8%A7%D9%84%D8%B9%D9%85%D9%84%D8%A9-%D8%A3%D8%AD%D8%AF-%D8%A3%D8%A8%D9%88%D8%A7%D8%A8-%D8%B3%D8%B1%D9%82%D8%A9-%D8%A3%D9%85%D9%88%D8%A7%D9%84-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D8%A9

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Thanks, Carrello.  This is fantastic news!  

 I hope they close the auctions January  1, so we don't have to wait until March. 

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8 hours ago, Synopsis said:

 

I agree, Laid Back, Brother! Hope Your Christmas Season is Enjoyable!:tiphat:

 

With the recent talk of eliminating the daily currency auctions and their corruption, what else can they do but ReInstate/ReValue the IQD if they have said the float is not a preferred action?

 

Going to the “open economy” from the “closed economy” to go to an internationally traded IQD would eliminate the daily currency auctions with the associated corruption and rocket the reconstruction and economic development in Iraq!

 

Eliminating the daily currency auctions is projected to occur in the first quarter of 2018. I suspect their is international “encouragement” to not deploy the word “soon” here!

 

Lookin’ Good!

 

Go Moola Nova!

:pirateship:

Happy Holidays to you too my brother Synopsis.!

 

They can't move from a closed economy to an open economy with an exchange control in place. 

 

-Remove exchange control

-Stop MCP

-Give real market value to the IQD 

 

The exit from Chapter VII is an important step to restore Iraq’s normal status and international standing, as it confirms the end of Iraq’s obligations under Chapter VII on the oil-for-food program after it was implemented in full.
The economic expert and the financial adviser to the Prime Minister the Mudher Mohammed Saleh that the exit from Chapter VII provides opportunities for encouraging foreign investment in Iraq after more than forty years of major conflicts led to a decline in economic development and other walks of life, and will release funds held and frozen at the United Nations and countries and International organizations.
Saleh shows that the remaining amount of Iraq to the United Nations after its departure from Chapter VII up to $ 3 billion, which adds funds to the Iraqi treasury.
He explained that the complete exit of Iraq from this chapter means the ability to import technology necessary for economic development in the country, which is very important, as it was prohibited to import modern technology, including dentistry.
He affirms that Iraq’s transition from Chapter Seven, which allows the use of force against our country in resolving disputes with nations to Chapter VI, which sees Iraq as a peace-loving state and resolving disputes with nations by peaceful means, is a positive sign of the full return of Iraq by interacting with the international community and providing encouraging climate opportunities for foreign investment in the country, especially in the phase of the post-Kuwait donors conference in the reconstruction and investment in Iraq.
Saleh says the next Iraq is the Iraq of Peace and Reconstruction, which has spent more than 40 years of conflicts, disputes and a decline in economic development and progress.

 

Go new monetary policy 

Go $1:1

Go 2018

 

 

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1 hour ago, Floridian said:

 

Thanks, Carrello.  This is fantastic news!  

 I hope they close the auctions January  1, so we don't have to wait until March. 

 

I hope you're right . . . however, I won't be surprised if it's " in the near future " ( 1st Quarter '18  :praying:)

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1 hour ago, Laid Back said:

Happy Holidays to you too my brother Synopsis.!

 

They can't move from a closed economy to an open economy with an exchange control in place. 

 

-Remove exchange control

-Stop MCP

-Give real market value to the IQD 

 

Well articulated post, Laid Back, and a lot of good information! Thank You! :twothumbs:

 

Go Moola Nova!

:pirateship:

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"The central bank reserves of foreign currency currently amount to 48 billion dollars," al-Alak said in a press statement Tuesday. He added that "Iraq, which is one of the oil states depends on a fixed exchange rate, or fixed with flexibility, and does not resort to the method of floating, unless their reserves are controlled to a level without enough, which did not happen either in Iraq or other oil countries ."

 

So here they are saying that they have 48 billion in reserves and that because they sell oil in usd that most arab countries or oil countries for that matter dont float their currencies because of the changes in oil prices daily, etc. In the last part of this paragraph he states that they dont resort to floating their currency, unless they dont have enough reserves.. I have a friend that is explained this to me. If iraq's reserves fell to around 30 billion or so they would have been forced to float the currency, but in this article alak states that they would only do this if the reserves were not enough. He clearly states that they would have a fixed exchange rate or a fixed with flexibility which means an erm (exchange rate mechanism) where the currency can go up or down no more than 2% every 90 days. That way they do not have to use their reserves but only slightly in keeping the rate within range. Also if you hang on to your dinar after the event takes place and if we dont have a time limit in exchanging you can make some pretty good ching with that 2% spread every 90 days. Shabbi has clearly stated in the past that iraq needed economic security and border security and that the dinar would be fixed and that it would happen suddenly like a thief in the night. I still believe that to be true. With the mentality in iraq on their currency i just dont see a float because of the volatility of control. Remember that they always said that they would control the shocks in the market. That sounds fixed to me. Also when alak talks about the cbi working on inclusion...well that comes from the world bank.. here is a link that will take you to an overview of what alak speaks of..

 

http://www.worldbank.org/en/topic/financialinclusion

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4 hours ago, Carrello said:

 

 

Financial expert: The sale of currency is one of the doors of theft of state funds

December 26 2017 10:32 p

Advisor to the Prime Minister for Investment Thaer al-Fili,

A financial expert confirmed that the sale of the dollar in the Central Bank of Iraq is one of the doors of theft of state funds and economic depletion.

"The fictitious profits that banks earn from this auction have exceeded hundreds of billions of dollars, at a time when more than 90 percent of its work depends on false invoices, companies and individuals with fake names," said Thayer Al Faily, a financial expert and consultant.

The financial adviser added that "this auction disrupted the contribution of banks to development, and disrupted the work of the Iraqi private sector, and therefore the Iraqi state is headed to close the dollar sale window in the first quarter of 2018.

"The US Coalition Provisional Authority has created a foreign currency sale window and has continued to date," he said. "The timing of the financing of the Iraqi state's purchases of dollars was due to the fact that oil sales were - and still are - stored in the US Special Oil Sales Fund, Noting that "the currency auction does not exist in any country in the world, and Iraq is now the only country that has a currency auction, in this way that contribute to the loss and full depletion of the Iraqi economy."

 

http://www.thebaghdadpost.com/ar/story/73589/%D8%AE%D8%A8%D9%8A%D8%B1-%D9%85%D8%A7%D9%84%D9%8A-%D9%85%D8%B2%D8%A7%D8%AF-%D8%A8%D9%8A%D8%B9-%D8%A7%D9%84%D8%B9%D9%85%D9%84%D8%A9-%D8%A3%D8%AD%D8%AF-%D8%A3%D8%A8%D9%88%D8%A7%D8%A8-%D8%B3%D8%B1%D9%82%D8%A9-%D8%A3%D9%85%D9%88%D8%A7%D9%84-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D8%A9

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Carrello, leave it to you to find that little golden nugget. ;)

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15 minutes ago, mylilpony said:

 

 

Carrello, leave it to you to find that little golden nugget. ;)

 

Thanks, but this is an article I copied that Kap brought in.  He's not all bad. :P

 

Great comments by you too. How can you float the currency in a country where stability of all kinds is vital to its survival.

 

 

Edited by Carrello
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Carrello, do you believe it's possible that when Kaperoni talks about Iraq having to hold the dinar at 2% for 90 days he has misinterpreted what the IMF rules are, and Mylilpony is correct here?

 

Wouldn't that be something?  Wrong for so long.

 

1 hour ago, mylilpony said:

Alaq "clearly states that they would have a fixed exchange rate or a fixed with flexibility which means an erm (exchange rate mechanism) where the currency can go up or down no more than 2% every 90 days. That way they do not have to use their reserves but only slightly in keeping the rate within range".

 

 

 

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  • yota691 changed the title to Keywords: Reserve $ 48 billion and will not resort to float the currency

Keywords: Reserve $ 48 billion and will not resort to float the currency

   
 

 
 


26/12/2017 12:00 AM 

BAGHDAD / Al-Sabah  
 The governor of the Iraqi Central Bank Ali al-Alaq, on Tuesday that the Bank's reserves of foreign currency is 48 billion dollars, noting that Iraq will not resort to floating the currency. 
Al-Alaq said in a press statement: "The reserve of the Central Bank of hard currency currently amounts to 48 billion dollars." He added that Iraq, which is one of the oil states, depends on a fixed exchange rate, or fixed with flexibility, Unless the reserves reached below the level of sufficiency, which did not happen either in Iraq or other oil countries. "He pointed out that the« float is difficult to apply in Iraq, considering that the government monopoly, de facto, the offer of the dollar and foreign currencies ». 
Floating currency is to make the exchange rate of this currency fully liberated, so that the government or the central bank does not intervene in determining it directly.
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It's late here in Australia... and I'm very confused. What is the difference between a float and a revaluation?

 

My understanding is that the Dinar value created by a Float is decided by the market and a Dinar rate created by a RV is decided by the CBI. 

 

Either will kickstart a market value on Forex? Sounds simple but I guess not. This is not my forte... any explanations welcome.

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Revaluation is adjustment of the value of a currency in relation to other currencies.

 A floating exchange rate is a regime where the currency price is set by the forex market based on supply and demand compared with other currencies. This is in contrast to a fixed exchange rate, in which the government entirely or predominantly determines the rate.

Edited by danielchu
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A fixed exchange rate is a country's exchange rate regime under which the government or central bank ties the official exchange rate to another country's currency or to the price of gold. The purpose of a fixed exchange rate system is to maintain a country's currency value within a very narrow band.

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10 hours ago, mylilpony said:

He clearly states that they would have a fixed exchange rate or a fixed with flexibility which means an erm (exchange rate mechanism) where the currency can go up or down no more than 2% every 90 days.

 

Thanks MLP, this is exactly the way shabibi explained how the dinar would re-enter the world stage years ago before maliki worked his plan to wreck the country ... during those days it was believed that the dinar would come out strong pegged to the usd or basket of currencies not to fluctuate more than 2 percent every 90 days to control volatility which makes complete and perfect sense .......  cheers

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I think the fixed rate mechanism has proven to be a good financial tool to control inflation in some cases. From all that has been shared, so far, a float might not be as good a tool in this current situation. Also, I am drawing on examples of a float and a fixed (or pegged) rate used by Egypt and China, respectively, to think this way, but they are two completely different countries. So, what do I know?

 

Following these two examples, though, controlled inflation will likely create a good foundation for Iraq to help address wide scale poverty and invest in infrastructure. Also, controls on the exchange rate, even if is 'allowed' to increase 2% a quarter (90 days), will still encourage internal and external investment. A safe 8% 'interest' a year on a currency ain't too bad for big investors and banks, etc.?  And, with so many international investors with their hands on the cookie jar, or already in it, a currency peg with a similar mechanism to the one the Chinese have for the renminbi might work well with the 'markets' (aka, that small percentage of the 1% that controls nearly everything).

 

So, my thoughts are kind of fluid, but it looks like it is back to that old chestnut about the RATE?

 

At one point Adam speculated on a 10 cent rate per dinar. I would be okay with 1 cent from an investment perspective, but I am looking forward to being ecstatic like the rest of y'all. Here's to us and 2018. May it be a healthy and wealthy one for y'all.

 

Now, off to read more about cryptos. Ethereum and Ripple have peaked my interest.

 

Cheers!

 

 

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20 minutes ago, newbieDA said:

I can not find it, but I remember right, at the CBI Conference it was addressed that the 2% spread was completed.

 

I found the discussion between Laid Back and I here. Hope that helps! :twothumbs:

 

 

Edited by newbieDA
I still cant find what I am looking for, at the CBI Conference the governor stated it was done I thought.
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6 minutes ago, newbieDA said:

 

I found the discussion between Laid Back and I here. Hope that helps! :twothumbs:

 

 

Iraq has not only maintained the 2% for 90 days , Im not the best person for this, I believe Iraq has maintained the 2% spread for like 14 or 15 months, I could be wrong but that is what im thinking. :salute:

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  • yota691 changed the title to Float currency

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