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Egypt sets the customs dollar at 16 pounds in January

Posted by Reuters
 
Date: 12:10 PM, 31 December
 

Egypt will set the price of the dollar at 16 pounds per dollar in January, Egypt's finance ministry said in a statement on Sunday.

The statement said, "The decision to stabilize the dollar price of customs comes in line with the stability of the currency, within the limits targeted by the Ministry of Finance to determine the dollar price of customs during the last period in light of the situation of stability in the Egyptian economy."

Egypt began setting a fixed monthly rate for the US dollar in January following the liberalization of the pound exchange rate in November 2016. Egypt has since set a price on a monthly basis.

The customs dollar is used to calculate the value of the fees paid by the importer in local currency for the customs release of imported goods.

The pound remained almost stable at the same level in recent months to trade at about 17.69 pounds per dollar in trading today.

http://www.alghad.tv/مصر-تثبت-الدولار-الجمركي-عند-16-جنيها-في/

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Egypt sets the customs dollar at 16 pounds in January

Posted by Reuters
 
Date: 12:10 PM, 31 December
 

Egypt will set the price of the dollar at 16 pounds per dollar in January, Egypt's finance ministry said in a statement on Sunday.

The statement said, "The decision to stabilize the dollar price of customs comes in line with the stability of the currency, within the limits targeted by the Ministry of Finance to determine the dollar price of customs during the last period in light of the situation of stability in the Egyptian economy."

Egypt began setting a fixed monthly rate for the US dollar in January following the liberalization of the pound exchange rate in November 2016. Egypt has since set a price on a monthly basis.

The customs dollar is used to calculate the value of the fees paid by the importer in local currency for the customs release of imported goods.

The pound remained almost stable at the same level in recent months to trade at about 17.69 pounds per dollar in trading today.

http://www.alghad.tv/مصر-تثبت-الدولار-الجمركي-عند-16-جنيها-في/

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On 12/29/2017 at 7:27 PM, mylilpony said:

I am not totally versed on this either, but here is a bit of an explanation.

 

Actively managed exchange rate mechanisms work by setting a reasonable trading range for a currency's exchange rate and then enforcing the range via interventions.

For example, Japan may set an upper and lower bound on the Japanese yen relative to the U.S. dollar. If the Japanese yen appreciates above this level, the Bank of Japan can intervene by buying large quantities of U.S. dollars and selling Japanese yen into the market to lower the price.
  • ERMs are tools used to control the value of a country's currency relative to other currencies in the global markets.
  • Most developed countries have flexible ERMs, while emerging market economies tend to have fixed ERM policies to help provide stability.
  • There are many different ways to influence exchange rates, including open market transactions, tariffs, quotas, interest rates, and monetary policy.

This is exactly right and it is also why cryptos are doing so well. And in my opine why cryptos will explode in 2018, as more and more people realize 

that banks and governments can't control cryptos people will naturally gravitate to them. 

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On 12/28/2017 at 10:45 PM, Butifldrm said:

 

What this economist/expert  is not saying, is that Iraq still does not have an internationally traded currency because they/Iraq chose to stay under the protection of article XIV from the IMF.  While under article XIV Iraq is not subject to external debt like the Paris club or IMF!  Iraq must move into article VIII to have an internationally traded currency, which would put them at a greater risk for external debt. The resent release of Chapter VII articles by the IMF was a huge move to help Iraq move to article VIII, but it is Iraq that must make that decision.  This would alleviate the need for the dollar other than oil trade and make them responsible for external debt.  IMHO,  Iraq's monetary strategy is to stay pegged to the dollar, some call it a quasi-peg.  The IMF appears to be good with that.  Alak appears to be good with an inclusive monetary policy.  I believe that the CBI thinks until they can get the citizen's to put their money in the banks, get corruption under control and elect non corrupt technocrats, we may see a change in monetary policy.  Right now the CBI has little control over capital outflow and that's why they are mandating electronic payment of salaries.  The greater the the citizens employ the banks the better control the CBI has and the liquidity problem in Iraq will improve.  These thing will all give way to an internationally traded currency 

 

 

So you're thinking no RV until most Iraqis start using the banks?  :(

 

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45 minutes ago, Floridian said:

 

So you're thinking no RV until most Iraqis start using the banks?  :(

 

I am so glad I didn't have a positive expectancy that there would be this wonderful RV come new year 2018..  We could still be expecting for Iraq to add value to their currency this time next year.. Meanwhile for me its back to work tomorrow 😊

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Well, thinking out loud here, if there were no RV until people start using the banks - and then, they only expect 3 million people to start using the banks within the next two years - Does that mean the RV is YEARS AWAY?

 

 On the other hand, what is all this celebration with Christmas trees and New Year's fireworks, and street closings, and Santa Clause in Mosul, and all that's going on in Iraq right now?  Why celebrate Christmas and New Year's in the country that's never celebrated this before? 

 

 They already celebrated the end of the Daash in Iraq, didn't they?

 So, if no RV coming, what's going on?????

 

 

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3 hours ago, tigergorzow said:

Floridian,  Agree....The CBI have been extremely quiet for the past few days.  We are praying something is going on behind the "Magic Curtain"....Keeping the faith!!

 

GO HCL & 140

 

GO RV / RI

 

I’m staying optimistic at least until the end of the first quarter. If nothing by then, I’ll just take a deep breath and continue to wait and read the news .. 

Go RV!!!

:pirateship:

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CNN. Broadcasting Two Types Of Float - If Either One Raises The Value Of This Worthless Currency Then Just Do It Already !

 

 

What is the floating of the national currency and what is its economic impact on the life of the citizen?


2018-01-01

There are two types of float.

 First, your float and the second float the vector. The first is to leave the national currency exchange rate determined by the market. Increased demand for the dollar in the domestic market leads to a rise in the dollar exchange rate compared to the local currency, while the decline in demand for the dollar means a decline in the dollar exchange rate in the domestic market.The situation is very similar to the days of the global economic boycott against Iraq after the occupation of Iraq by the State of Kuwait, where the exchange rate of the US dollar compared to the Iraqi dinar was preceded by only the German mark during the Second World War. The exchange rate of the Iraqi dinar relative to the US dollar has decreased from 2.8 dollars per Iraqi dinar to 5,000 Iraqi dinars per US dollar. Determining the currency exchange rate just like setting the price of the tomato in Alwa Green, in Baghdad. The increased supply of these leads to a decline in the market price, while the low supply in the market leads to a rise in prices.The second type is the same as the first type, except for the intervention of the central bank when the value of the local currency exchange is lower than the planned rate or the local currency exchange rate rises above its level. Any local currency exchange rate against the dollar, for example, must be at a minimum and above the national currency.

The oil state can not float its currency towards the world currencies. For a simple reason, it is the oil-exporting governments that monopolize foreign currencies because they are the largest exporters of commodities in the country and thus they own the hard currency, so it is in their interest to protect their local currency from collapse. If importers are not provided with goods and services from difficult currencies. Oil countries receive oil revenues in foreign currency. By providing this currency to local importers, these countries can finance their imports of goods and services. Iraq, for example, is increasing its balance of dollars through its oil exports to the world markets, and then put the collected currency in the local commercial banks to pay the bill of imports of goods and services.

To clarify the idea more, let's assume that the Iraqi government decided to monopolize all that it receives from the oil revenues, which represent 95% of Iraq's total exports. This government decision means depriving the national economy of 95% of the country's foreign exchange earnings. Hard currency, representing private sector exports in the country. Of course, the availability of 5% of the hard currency will not be enough to pay the cost of imports of goods and services needed by Iraq in one year. What will happen to the Iraqi national economy? In this case, traders and those in need of hard currency (patients who want treatment outside the country) will have to buy hard currency from the market (cashiers), leaving the Iraqi citizen to buy what he needs from foreign currency as determined by the market of prices called (dinar float). In this case, the size of the hard currency will be very small compared to what the country needs, and importers will run to buy the quantities they need at very high prices. The rise in foreign exchange rates against the local currency means higher prices for imported goods and services. As long as Iraq imports at least 75% of its needs of goods and services, a wave of price increases will sweep the country (inflation) to the extent that the prices of most goods and services will be outside the citizen's ability to pay, and will exacerbate public anger and become the government the target of demonstrations and protests . And this is why the oil countries choose to put a large part of the hard currency they receive from the value of oil sold to importers and those who need foreign currency. The availability of hard currency in the country means the stability of prices in the markets of goods and services, the stability of the value of the local currency in relation to world currency prices, and the security stability of the country. 

Non-oil countries and countries that can not export natural resources and manufactured goods often have to borrow to buy the goods and services they need. These are countries that Donald Trump likes, as he imagines, can bribe them to pass Foreign policy. 

Classical economic theory did not address what would be suffered by countries that lacked natural resources or countries that did not have an export production base, but assumed that increasing the trade deficit of a given country meant increasing the country's demand for foreign exchange and depreciation of its local currency. This decline in turn will give the country an opportunity to enhance the competitiveness of its products in the global market, increase its exports, increase demand for workers, reduce its imports, and finally disappear the trade deficit. This theory was in place until the world recession of the 1930s, which proved that the economy can not be reached without a state intervention.The repetition of economic cycles made it difficult to accept classical economic theory even by the most powerful politicians and economists. Imagine what would happen to the global economy if the US Reserve Bank, European central banks and Western governments did not intervene to save the global economy from the Great Depression that hit the global economy in 2007 and 2008? The US government has supported the national economy by $ 1 trillion and has been forced to legislate new laws to monitor the movement of the local economy, as well as having to accept the closure of giant companies. 

There is one hope for the floating of the oil countries' currencies, when the oil sector becomes small and ineffectual, a very unlikely prospect given the current economic and political conditions in the oil-exporting countries. As long as there is no hope that the oil sector in the oil-exporting countries is not a leader in national development, these countries will continue to rely on the sale of oil, and will remain other economic sectors neglected, and will remain the oil sector is the leader in the national economy, and will remain the national currency away from market fluctuations .
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Thanks DT...What is the floating of the National Currency and its impact on the lives of the citizens?????? Not 'Jack Shiite' as far as prosperity is concern...There hasn't been anything stated on the conditions of Article 8 and the CBI agreeing to the conditions...This's the 'only' thing, from what I've gathered, that could possibly be holding back the prosperity that the RV/RI of the dinar would bring to the citizens of Iraq...The citizens of Iraq are desperate for a national currency that has the ability and purchasing power to restore the 'Hope' in a sovereign nation that provides a healthy economy and the ability to build a future...The Iraqi citizens are the ones that are suffering the most from their 'national currency'....the dinar, not being determined and 'reinstated at its 'true market' ''value''...The dinar is universally known to be undervalue since it's sanctions 27 years ago...There's no need to jump straight back up to 3.36 dinars to 1 US buck...but starting out close to 1 to 1 could boost more economies than Iraq's...

4 hours ago, KDuesing said:

The only reason the dinar didnt move today Jan 1st. is because Maliki's man Alec is still the head of the CBI, isis is gone now and there is no excuses left.

....this could very well could be the head of the snake that needs to be cut off...

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  • yota691 changed the title to Float currency

Float currency

   
 

 
 

Author: Mohamed Sherif Abu Maysam

09/1/2018 12:00 am

The talk about the flotation of the Iraqi dinar may be too early for a set of economic, financial and political standards that prevent  
flotation. 
As the method of floating in the management of monetary policy, necessarily need to market elements are formed in accordance with regular relations and based on real sectors contribute a large part of the gross domestic product in a legal atmosphere that establishes an economy led by a private sector free of the dependency of the state with adequate performance and flexibility of the 
 productive apparatus 
This is not true of the current economic landscape, as well as the ability of the Iraqi economy as a "rent-dependent economy" that relies on 85 percent of the budget revenues on oil. It maintains a safe cash reserve in the central bank's coffers through monetary exchanges between the central treasury and the central bank.
Which makes this reserve in spite of the daily auction sales of the dollar within the limits able to control the price of the dinar on the basis of the reserve equation with the amount of  
cash out. 
Floating is a tool for managing monetary policy in a market economy. The exchange rate is left to the market mechanism determined by the forces of supply and demand in the money market. Central banks' policies differ from the floating of their currencies according to the economic data determined by the levels of GDP, balance of payments and trade balance. 
Usually depends on the so-called "floating float" policy in countries whose economies suffer from crises, whose exports are less than their imports, leaving the exchange rate to be determined according to supply and demand with the intervention of the central bank whenever the need to modify this price against the rest of the currencies, The most important of which is the gap between supply and demand and developments in price markets
 Parallel drainage. 
The developed capitalist states rely economically on the so-called "free float" method as producing countries with higher rates of exports than their import rates. Their budget revenues consist of total tax collection, service fees and customs. The exchange rate is left to change freely according to market forces, supply and demand, In this case, the intervention of central banks is limited to influencing the pace of exchange rate change, not limiting it 
 . 
However, the Iraqi situation is completely different here from the two models above, because the Iraqi economy is exceptionally prosperous and still suffers from structural imbalances. The real sectors and the sectors that support them do not contribute more than 8% of the GDP. 
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  • 2 weeks later...

The continued decline of the dollar and its impact on our daily lives

22-01-2018 10:06 AM    
Readers
image.php?token=f4e187ac66915f878baadd9c79cd9696&size=
 

Baghdad News -

 

 

Economists and financial analysts expect the US dollar to continue to fall despite all the indicators that are supposed to support its price up for various reasons, while other major currencies continue to rise against the dollar, affecting the daily lives of billions of people around the world.

 
While the dollar ended in 2017 with a 10 percent decline in its first annual decline in five years, almost half of that annual rate was lost in the first month of 2018, and the dollar's strength index fell to about 90 points. 

While market estimates that the US Federal Reserve will continue to tighten its monetary policy - interest rate hikes, announced improvement in the US economy and other positive signs - the outlook is that the dollar will continue to fall for a while.

 

Internal and external factors


An important US internal factor is that President Trump's tax reform plan has not led to higher inflation in the way that the Fed is pushing for a rapid and sustained increase in interest rates. 

US equities, which have seen a near-frenzy rally, are under pressure to correct, making them less attractive to investors. 

US Treasury bonds, which saw an increase in yields at the beginning of the new year, did not boost investors' appetite, but on the contrary, they were heavily sold. 

One of the most important external factors of the fall of the dollar is that central banks in the major economies have started plans to tighten their monetary policy and reduce or stop buying bonds (in the so-called monetary easing). 

Thus the ECB has cut its bond purchases by half (from 60 to 30 billion euros) and other central banks are expected to do so.

This leads to the transfer of capital from the United States to Europe and Asia in pursuit of better returns on investments.

 

Benefits and disadvantages


The continuing depreciation of the dollar may be beneficial to the US economy, contrary to what some may conclude, not only to improve US exports by making them more competitive. 

US foreign debt owed to the rest of the world is denominated in dollars, and therefore with its low exchange rate, America is less likely to serve that debt. 

In contrast, people outside the United States are affected by the fall in the dollar to varying degrees depending on how their national currencies are pegged to the dollar. 

Countries whose currency exchange rates freely move freely in the market can afford their citizens to buy everything that is denominated in dollars at a better price. 

Countries whose currencies are pegged to the dollar suffer from high costs of dealing with other economies, for example in euros or sterling.

Countries exporting raw materials benefit from the inverse proportion between the dollar and the resident currencies. For example, if the dollar exchange rate falls, the price of oil, the price of gold and so on will rise. 

As for expatriates who transfer their money from countries whose currencies are pegged to the dollar, the value of those transfers against other currencies decreases with the fall of the dollar and vice versa.

 

http://www.baghdadnews.info/index.php?page=article&id=30932

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In the first 2 articles above, they give good reasons why the Iraqi Dinar cannot float.

In the 3rd article, they say the dollar has fallen and therefore any currency pegged to the dollar also will fall.

 

So what are they saying?

Are they preparing the people that the Dinar will be pegged to a "basket of currencies"?

If they don't float, and they don't peg to the dollar, what else is left?

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