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Exchange rates and foreign investments


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Exchange rates and foreign investments


14/3/2018 12:00 am 

 

Wadih al-Hanal *

In light of the current globalization system in all countries of the world, and the liberalization of the bulk of global trade, and in light of the movement of money and international currencies between the countries of the world in line with the movement of international trade between countries, the acquisition is the term reserve and facilities for these activities and linked to the equation of return and risk, Money is moving among countries for investment, so there is a so-called foreign investment.


And that one of the main risks to investment is the so-called exchange rate among them in the world, because what matters to foreign investors is to ensure that the loss due to instability of the exchange rate (the so-called evaporation of the actual value of the currency) and thus non-operating losses that may result in revenue or Due to the decline in exchange rates between them. 

It is also known that the exchange rate is the rate on which the exchange of foreign exchange is based on the national (local) currency, the number of monetary units in which a unit of local currency is exchanged to another foreign currency. 

The exchange rate in any country is directly linked to the reserves of foreign currencies in question, and therefore its close correlation with the volume of export activity of any country (because foreign exchange earnings).

The balance of payments balance (the balance of foreign trade and the balance of current transactions) is very important. The deficit in the trade balance necessarily leads to a decrease in the exchange rate. Therefore, the stability of the exchange rate is linked to the export rate of any country in the world export trade volume and hence its foreign exchange income. Will be available to them at any time. 

This stability leads to stability in production inputs and products, as well as reducing inflation and stabilizing interest rates. It has a direct impact on the profitability of export industries and the cost of imported resources. 

Hence, it is important to make the exchange rate stability a tool for controlling foreign trade in order to attract greater volume of foreign direct investment, because the reassurance of global investors on their capital and financial assets from the risk of erosion is a major attraction for these investments, as well as length of investment possible.

However, it is also necessary to bear in mind that the exchange rate is not a tool independent of other factors in the economy but that all macroeconomic policies must be consistent with one another, and the need to continue to direct the exchange rate to a uniform price between the official market and the parallel market  . 

* President of the Association of Iraqi private banks

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3 hours ago, Synopsis said:

 

This is a high powered opinion piece and appears to be on target!!!

 

:backflip:       :backflip:       :backflip:

 

I would suggest reading the whole thing since it is chockablock with things we want (well,OK, need) to hear!!!

 

Foreign investment and trade appear to be substantial reasons for the exchange rate. Maybe Iraq will get an upgrade on their credit rating and then it just might be off to the races!!!

 

:rodeo:       :rodeo:       :rodeo:

 

Go Moola Nova (YEAH, BABY!!!)!!!

:pirateship:

 

Ohhhhh yeaaaaaaa!!!!! ........great things are coming brother. I have to say, things are ramping up just nicely, and, they are moving now with a real sense of urgency. :twothumbs:

Edited by Wiljor
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Thanks for bringing this over Yota - much appreciated.

 

So, based on the notation at the bottom of the article, is it correct to assume that this was put out by the President Of The Association of Iraqi Private Banks? If so, then this 'opinion piece' as Synopsis efficiently puts it certainly carries some weight. I wouldn't be surprised if we SUDDENLY see a lot more articles like this, not only as part of the 'education process' but also because some of the individuals iworking on the financial progress for Iraq are going to want to be recognized for their effort. 

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9 hours ago, Wiljor said:

 

Ohhhhh yeaaaaaaa!!!!! ........great things are coming brother. I have to say, things are ramping up just nicely, and, they are moving now with a real sense of urgency. :twothumbs:

I think you're right!  There seems to be an urgency!  They'll get r dun!!!!

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11 hours ago, Wiljor said:

 

Ohhhhh yeaaaaaaa!!!!! ........great things are coming brother. I have to say, things are ramping up just nicely, and, they are moving now with a real sense of urgency. :twothumbs:

 

Enjoy Your Tim's, Brother Wiljor, AND The Best Of Your Day To You!!! :tiphat:

 

Go Moola Nova (YEAH, BABY!!!)!!!

:pirateship:

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1 hour ago, Half Crazy Runner said:

 

I love your attitude Wiljor! Your optimism always puts me in a good mood :mexican:

 

Always a pleasure HCR,  usually their is good in mostly everything, we just have to look deep to see it. :D

Have a super day my friend :twothumbs:

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1 hour ago, Synopsis said:

 

Enjoy Your Tim's, Brother Wiljor, AND The Best Of Your Day To You!!! :tiphat:

 

Go Moola Nova (YEAH, BABY!!!)!!!

:pirateship:

 

‘Morning brother Synopsis, wow!!!!!!! If the day was any better, their would be two of me :lol: 

 

May your day unfold exactly as you planned, health and prosperity out to you :twothumbs:

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17 hours ago, DinarThug said:

However, it is also necessary to bear in mind that the exchange rate is not a tool independent of other factors in the economy but that all macroeconomic policies must be consistent with one another, and the need to continue to direct the exchange rate to a uniform price between the official market and the parallel market  . 

* President of the Association of Iraqi private banks

In my opinion, the author of this article is parroting Shabibi and it is encouraging to me that there are others, with the same mindset as Shabibi, still in the game. 

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Exchange rate:

An exchange rate is the price of a nation's currency in terms of another currency. Thus, an exchange rate has two components, the domestic currency and a foreign currency, and can be quoted either directly or indirectly. ... Exchange rates are quoted in values against the US dollar.
 
The actual movements of exchange rates can also influence foreign investment  through relative wage channels, relative wealth channels, and imperfect capital market arguments.
 
I love they're talking about the exchange rate........ When the river sounds rocks carries.!
 
Go CBI
Go new exchange rate
Go $1:1
Edited by Laid Back
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4 minutes ago, Laid Back said:

Exchange rate:

An exchange rate is the price of a nation's currency in terms of another currency. Thus, an exchange rate has two components, the domestic currency and a foreign currency, and can be quoted either directly or indirectly. ... Exchange rates are quoted in values against the US dollar.
 
I love they're talking about the exchange rate........ When the river sounds rocks carries.!
 
Go CBI
Go new exchange rate
Go $1:1

 

Morning brother Laid Back, im loving the sound of that river ;)

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5 hours ago, Laid Back said:

Exchange rate:

An exchange rate is the price of a nation's currency in terms of another currency. Thus, an exchange rate has two components, the domestic currency and a foreign currency, and can be quoted either directly or indirectly. ... Exchange rates are quoted in values against the US dollar.
 
The actual movements of exchange rates can also influence foreign investment  through relative wage channels, relative wealth channels, and imperfect capital market arguments.
 
I love they're talking about the exchange rate........ When the river sounds rocks carries.!
 
Go CBI
Go new exchange rate
Go $1:1

Iraq directly says soon means indirectly next year, relative wealth channel still comes from my wage (job) channel, capital market argument,( wife in charge ) Exchange rate ( from my hand to the bill collector ) no matter how you look at it I'm still BROKE !

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5 hours ago, Boozer said:

Iraq directly says soon means indirectly next year, relative wealth channel still comes from my wage (job) channel, capital market argument,( wife in charge ) Exchange rate ( from my hand to the bill collector ) no matter how you look at it I'm still BROKE !

Boozer:twothumbs:,... Soon, no broke anymore 

11 hours ago, Wiljor said:

 

Morning brother Laid Back, im loving the sound of that river ;)

Aloha Brother. Hope you're doing well?

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