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Parliamentary Finance warns against moving towards changing the dinar exchange against the dollar: 3 categories will pay the price!


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Parliamentary Finance warns against moving towards changing the dinar exchange against the dollar: 3 categories will pay the price!

 

Policy 02/20/2020 21:44 10085

 

Baghdad today - Baghdad, the Finance Committee in the Iraqi parliament, Thursday (2 July 2020), commented on news that there are possible intentions to change the exchange rate of the dollar against the dinar within the expected financial reform law. The committee's rapporteur, Ahmed Saffar, said in an interview with (Baghdad Today) that "until now we have not seen the draft financial reform law, but there are information and leaks, we report that there is an intention to change the exchange rate of the dollar against the dinar, but we do not know its accuracy until the moment, as there is Some representatives went to this option, and there is also parliamentary opposition to this approach. " And Al-Saffar said that "any devaluation of the dinar or dollar will cause inflation in prices because it will reduce the purchasing power of the Iraqi dinar, and here the affected people with limited income from employees, contracts and renters will be affected," noting that "within monetary policy, this is the last solution to the crises." The economist Rasim al-Aqidi warned, Thursday (14 May 2020), of floating the Iraqi dinar against the dollar, that is, reducing the value of the Iraqi dinar against the dollar, according to a proposal put forward by economists to provide additional funds for the Iraqi budget to be paid as salaries for employees. Al-Akidi said in an interview with (Baghdad Today), "The issuance of any decision to float the dinar against the dollar in light of the current conditions in Iraq is very dangerous for the country which is basically suffering from uncontrollable losses, namely fees, customs, taxes and many other financial resources." And that "the flotation does not constitute an increase in the value of the Iraqi dinar, but rather we will see an increase in the exchange rates of the dollar because of the lack of its acquisition in the global market, especially with the decline in international oil prices." He added that "the flotation will lead to a significant increase in prices, and will be paid by the poor," noting that "the flotation is taken in light of the stable financial conditions of the state, as well as the diversification of the economy and its dependence on resources other than oil." Al-Akidi said that "floating the dinar against the dollar is launching the process of buying and selling without any limits, and the country will face an unprecedented rise in prices with limited and steady salaries, so conditions will be more difficult, especially in the humanitarian context." Economists suggested reducing the value of the Iraqi dinar against the dollar by a value ranging between 1300 dinars or 1400 against one dollar to provide additional budget resources that allow part of the salaries to be spent, while others considered that any proposed float process may go out of control and cause a significant increase in the price of the dollar against the Iraqi dinar.

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Al-Akidi said that "floating the dinar against the dollar is launching the process of buying and selling without any limits, and the country will face an unprecedented rise in prices with limited and steady salaries, so conditions will be more difficult, especially in the humanitarian context." Economists suggested reducing the value of the Iraqi dinar against the dollar by a value ranging between 1300 dinars or 1400 against one dollar to provide additional budget resources that allow part of the salaries to be spent, while others considered that any proposed float process may go out of control and cause a significant increase in the price of the dollar against the Iraqi dinar.

 

so what will the value of the dinar compared to USD between `1300--`1400 dinar

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2 hours ago, yota691 said:

with (Baghdad Today), "The issuance of any decision to float the dinar against the dollar in light of the current conditions in Iraq is very dangerous for the country which is basically suffering from uncontrollable losses, namely fees, customs, taxes and many other financial resources."

 

While I agree with Al Kidi in principle he is speaking as an economist.  Economists deal with numbers and do not see the bigger picture sometimes.  I would love to see a RV of 1-1 to start off but realistically they should come out under .10 to get the ball rolling.  By doing that it would signal Iraq is International and ready to do business.  I think the investors would jump in if they would just give their currency some value.  Once you get investment and reconstruction going the poor should be able to get employment and a higher wage.   They have had 15 years to figure this out.  Iraq should have set aside money for the poor to get them through the inflationary phase of reconstruction and taking their currency international.

 

 

2 hours ago, yota691 said:

Economists suggested reducing the value of the Iraqi dinar against the dollar by a value ranging between 1300 dinars or 1400 against one dollar to provide additional budget resources that allow part of the salaries to be spent, while others considered that any proposed float process may go out of control and cause a significant increase in the price of the dollar against the Iraqi dinar

 

Maybe they should go after the crooked politicians and get the countries stolen billions back to help the poor and their budget.  

 

My biggest fear is they incorporate a model much like South Korea.  Their currency is international and basically the same price as the Iraqi Dinar.  A number of years ago when there was a lot of chatter on the “Global Reset”  I started looking into other currencies whose economies were growing. ( because of currency manipulation).  I bought some VN Dongs and S Korea Won and a few others. Nothing crazy, but I’ve added to them over the years.  My thinking is, if there is going to be a reset then it makes sense that countries with a growing economy should go up some!!  

 

We’ll see what happens but articles like this makes me think that some politicians don’t want to give up their gravy train.  They have had it pretty good under the current system.  

 

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Devaluing the Dinar is just a path to printing money, which is a short term fix and makes no sense as a policy.

 

These people need imports if they're going to diversify and have any economic future, and they know it, and that can only be accomplished by revaluating their currency.

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My take on this is that they can lower the price of the dinar , but it don't make any since why they can't rise the price it doesn't sound like a good RV we still have a long time , but don't hold me to it , they could go the other way UP.

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Countries should be country’s.  Geez. I’m always in a hurry.  I’m Trading today and writing in between trades.  

 

The Market is enfuego today.

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8 hours ago, Mary B said:

while others considered that any proposed float process may go out of control and cause a significant increase in the price of the dollar against the Iraqi dinar.

I know they are suggesting a devaluation. And fear of a free fall. They are also saying one of my favorite words “float” allowing it to “float” Could result in an increase in the price of the dinar. Maybe this is how it starts. 😎

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45 minutes ago, FROSTYJACK said:

I know they are suggesting a devaluation. And fear of a free fall. They are also saying one of my favorite words “float” allowing it to “float” Could result in an increase in the price of the dinar. Maybe this is how it starts. 😎

 

They're scared of their own market rate and the volatility that comes with an open-market float. I don't blame them. They're not stable or diverse enough to swim in the big kids' pool. What they need is a managed float, which benefits them and us.

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A float would bring extreme volatile swings in the beginning as with everything else does when first put up for sale or on the market. After several months to a couple of years the price point should find a relative leveling off. It would be like approaching the purple mountain majesties of the Rocky Mountains from California traversing them then slowly reaching the rolling hills and crossing the Continental Divide before coming to the Great Plains, where the Buffalo roam, then occasionally coming to the Smoky Mountains every so often before circling around to the Great Plains of the Midwest..

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6 hours ago, Kenny_Logins said:

 

They're scared of their own market rate and the volatility that comes with an open-market float. I don't blame them. They're not stable or diverse enough to swim in the big kids' pool. What they need is a managed float, which benefits them and us.

 

that was exactly what shabibi planned, the dinar was to enter the market at a fixed / managed rate pegged to a basket of currencies only to fluctuate + or - a small percentage every 90 days best i remember , think i had about 4 hard drive crashes since, lost everything i saved of course i never backed anything up and just tap around on a chromebook now lol ... we wait letsroll

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I don't believe this article at all. they  do it on purpose to keep the dinar investors like us away and to make the dinar investors give up and sell off their dinar immediately.  and, they are extremely happy if  all the dinar investors sell off their dinar, so they " Suddenly without a prior notice " rv the dinar quietly. ,Oh no I won't fall for this BS crap article and won't ever sell off my dinar until it rv at least .10

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by the way, out of curiosity, who wrote this article anyway? Did governor of CBI write this article? or did GOI write this article? or did a reporter who got paid just to write this BS crap article? sorry, no offense to anyone.

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2 hours ago, 3n1 said:

 

that was exactly what shabibi planned, the dinar was to enter the market at a fixed / managed rate pegged to a basket of currencies only to fluctuate + or - a small percentage every 90 days best i remember , think i had about 4 hard drive crashes since, lost everything i saved of course i never backed anything up and just tap around on a chromebook now lol ... we wait letsroll

2% traded with currency band managed float pegged to basket of currencies correct you are!

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15 hours ago, rvmydinar said:

by the way, out of curiosity, who wrote this article anyway? Did governor of CBI write this article? or did GOI write this article? or did a reporter who got paid just to write this BS crap article? sorry, no offense to anyone.

 

who knows really who the author is rvmydinar , just my speculations but as long as the iqd is not an internationally traded currency they can play these games with the iqd but if it was in the world market the cbi imo would never forcast any currency move of significance in any direction its on another level , at that point of course i would probably not be holding physical iqd if the currency is traded electronically and bankable world wide .... all the best   

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