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  The zeros have nothing to do with the value of the currency ... and one of the solutions to overcome the financial crisis is to reduce the price of the dinar against the dollar to obtain a larger amount of cash


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  Sumaisem for the obelisk: The zeros have nothing to do with the value of the currency ... and one of the solutions to overcome the financial crisis is to reduce the price of the dinar against the dollar to obtain a larger amount of cash

 

13:58 10/20/2020 74 numbers of reading 

 

Baghdad / Obelisk: The economic expert, Salam Sumaisem, predicted, on Tuesday, October 20, 2020 the rise in the exchange
rate of the US dollar against the Iraqi dinar as a result of the increase in demand for it, while she saw that the important aspect is
.that people believe that zeros have a relationship to the currency, and the answer On this in the negative
Sumaisem said to the obelisk: There was a project and I think it is still present at the government to reduce the price of the Iraqi
dinar, the direction of the dollar to obtain a larger amount of cash, meaning that if one hundred dollars is equal to 120 thousand
Iraqis, one hundred dollars equals 150 thousand Iraqi dinars, and this means an increase of 30 thousand dinars More Iraqis, at
the value of one hundred dollars, but on the other hand, the real income value of the citizen will decrease, for a citizen whose
 .salary is 600 thousand dinars becomes as if its value is 400 thousand dinars, which means reducing incomes
Sumaisem added: The other solution was to reduce it 30%, and we see that this solution has been achieved. When they give you
the salary every 45 days instead of giving it every 30 days, it means reducing the salary by about 30% and this is a dangerous
.thing, noting that all of this is solutions to get rid of the impasse in not providing Salaries Sumaisem believes that the reform memorandum, or the so-called white paper, includes an adjustment of the dollar’s value
towards commodities. As the Finance Minister said, he wants to intervene and leave the auction to market power according to
.supply and demand
Sumaisem expects upcoming changes in the prices of the dinar and the dollar, and as you notice, the dollar price began to rise
.while the incomes of citizens decreased in the face of this new wave of inflation
.Sumaisem said that the rise in the dollar price will lead to an increase in food prices
She added that "the increase in some materials is a result of citizens' fear of being cut off from the markets as a result of the
".financial crisis that the country is going through, or developments in the Corona virus and talk about re-imposing a curfew
She indicated that "there is also an important issue that is directly related to the high price of materials, which is the high
exchange rate of the US dollar against the Iraqi dinar, as the markets are witnessing a significant increase in the dollar exchange
".and it is expected to rise more than the current price
She attributed this to "citizens’ fear of the depreciation of the Iraqi dinar, so they resorted to increasing students to the dollar
because it is more secure than the dinar, and storing the dollar and increasing the demand for it, will lead to an increase in the
prices of materials because it is most likely that these materials are imported and residing in the US dollar, which will be reflected
" .negatively. " The ultimate consumer, the citizen

 

 

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Semisem for Obelisk: Zeros have nothing to do with the value of the currency. One solution to overcome the financial crisis is to lower the price of the dinar against the dollar to get more cash

 

 

Baghdad: Economist Salam Samim predicted Tuesday, October 20, 2020 that the exchange rate of the Us dollar against the Iraqi dinar will rise as a result of increased demand, while the important aspect is that people think that zeros have to do with the currency, and the answer to this is negative.

"There was a project and I think the government still has a dollar to lower the price of the Iraqi dinar to get a larger amount of cash, meaning that if 100 dollars is equal to 120,000 Iraqis, it will be 150,000 dollars, which means an increase of 30,000 Iraqi dinars more, by 100 dollars, but in return the real income of the citizen will decrease, a citizen whose salary is 600,000 dinars, which means a reduction of 400,000 dinars," she said.

Samim adds: The other solution was to reduce it by 30% and we see that this solution has been achieved when they give you the salary every 45 days instead of giving it every 30 days means reducing the salary by about 30% and this is dangerous, pointing out that all this is a solution to get rid of the impasse in not providing salaries.

The reform note, or the so-called white paper, includes adjusting the value of the dollar towards commodities, the finance minister said.

Samim expects upcoming changes in the prices of the dinar and the dollar, and as you can see, the dollar is starting to rise as the incomes of citizens fall against this new wave of inflation.

Samim said the dollar's rise will lead to higher food prices.

"The increase in some materials is the result of citizens' fear of being cut off from the markets as a result of the financial crisis that the country is going through, or the development of the Corona virus and talk of re-imposing the curfew," she said.

"There is also an important issue directly related to the rise in the price of materials, namely the rise in the exchange rate of the US dollar against the Iraqi dinar, where markets are witnessing a marked increase in the exchange of the dollar and is expected to rise more than the current price," she said.

She attributed this to "the fear of citizens of the decline in the value of the Iraqi dinar, so they resorted to increasing students over the dollar because it is more guaranteed than the dinar, and the storage of the dollar and increasing demand for it will lead to higher prices of materials because these materials are mostly imported and residing in US dollars, which will have a negative impact on the final consumer, which is the citizen."

Obelisk

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Sumaisem for the obelisk: The zeros have nothing to do with the value of the currency ... and one of the solutions to overcome the financial crisis is to reduce the price of the dinar against the dollar to obtain a larger amount of cash.

Baghdad / Obelisk: The economic expert, Salam Sumaisem, predicted, on Tuesday, October 20, 2020 the rise in the exchange rate of the US dollar against the Iraqi dinar due to the increase in demand for it, while she saw that the important aspect is that people think that the zeros have a relationship with the currency, and the answer On this in the negative.

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2 minutes ago, Johnny Dinar said:

Semisem for Obelisk: Zeros have nothing to do with the value of the currency. One solution to overcome the financial crisis is to lower the price of the dinar against the dollar to get more cash

 

 

Baghdad: Economist Salam Samim predicted Tuesday, October 20, 2020 that the exchange rate of the Us dollar against the Iraqi dinar will rise as a result of increased demand, while the important aspect is that people think that zeros have to do with the currency, and the answer to this is negative.

"There was a project and I think the government still has a dollar to lower the price of the Iraqi dinar to get a larger amount of cash, meaning that if 100 dollars is equal to 120,000 Iraqis, it will be 150,000 dollars, which means an increase of 30,000 Iraqi dinars more, by 100 dollars, but in return the real income of the citizen will decrease, a citizen whose salary is 600,000 dinars, which means a reduction of 400,000 dinars," she said.

Samim adds: The other solution was to reduce it by 30% and we see that this solution has been achieved when they give you the salary every 45 days instead of giving it every 30 days means reducing the salary by about 30% and this is dangerous, pointing out that all this is a solution to get rid of the impasse in not providing salaries.

The reform note, or the so-called white paper, includes adjusting the value of the dollar towards commodities, the finance minister said.

Samim expects upcoming changes in the prices of the dinar and the dollar, and as you can see, the dollar is starting to rise as the incomes of citizens fall against this new wave of inflation.

Samim said the dollar's rise will lead to higher food prices.

"The increase in some materials is the result of citizens' fear of being cut off from the markets as a result of the financial crisis that the country is going through, or the development of the Corona virus and talk of re-imposing the curfew," she said.

"There is also an important issue directly related to the rise in the price of materials, namely the rise in the exchange rate of the US dollar against the Iraqi dinar, where markets are witnessing a marked increase in the exchange of the dollar and is expected to rise more than the current price," she said.

She attributed this to "the fear of citizens of the decline in the value of the Iraqi dinar, so they resorted to increasing students over the dollar because it is more guaranteed than the dinar, and the storage of the dollar and increasing demand for it will lead to higher prices of materials because these materials are mostly imported and residing in US dollars, which will have a negative impact on the final consumer, which is the citizen."

Obelisk

Thanks Johnny google translate didn’t allow me to grab the whole thing 

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This is from couple days ago...

 

by Siteadmin Opinions and ideas 4 Days ago

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Farhad Alaeddin

Finance Minister Ali Allawi said in a press conference following the adoption of the White Paper for Economic Reform by the Council of Ministers on October 13, saying, “We have a strong and strong relationship with the Central Bank to unify monetary and financial policies, and this will provide us with the ability to cover all the requirements and entitlements of the salaries of employees and retirees. “This statement went unnoticed by the political, economic and media elites, and no one paid any attention to what the minister’s statement carried about a fundamental shift in the financial policy of the Iraqi state from a clear and exciting prejudice to the independence of the Central Bank from the financial policies adopted by the government.

The intentions of the Minister of Finance are clear. The Central Bank has become “very cooperative” with the government's financial policy, after its independence according to its enforceable law contradicts the possibility of any potential cooperation that violates the basic rules of the bank in order to preserve the guarantee and strength of the Iraqi economy on the one hand, and not bear any government failure in managing The fiscal policy on the other hand, in a context known to successive governments, and because the central bank adopts monetary policies independent of the government's financial policies. The dispute that arose between the government of Nuri al-Maliki and the governor of the Central Bank, Sinan al-Shabibi in 2012 is not far from memory, which ended with al-Shabibi being accused of corruption and the issuance of judicial orders for his arrest! While he was in the Japanese capital, Tokyo, to participate in an economic conference, it came to his trial in absentia, sentencing him to seven years in prison in 2014 and removing him from his post.

The role of the central bank

The Central Bank is an institution that is financially and administratively independent from the government according to Article 103 of the Iraqi constitution, and it is responsible for setting monetary policy, issuing and managing the national currency and foreign reserves, and setting regulations, procedures and controls for the work of local banks in the country and monitoring and auditing their work, and is the official body that represents Iraq in financial institutions And international monetary such as the International Monetary Fund and the World Bank and others. Among his tasks is also determining the supply and demand for money by setting interest rates. It is also responsible for receiving deposits of oil sales and keeping the state’s cash reserve, and has the right to dispose of storage in a way that preserves the state’s financial position in international forums, and preserves the value of the national currency. This means that the independence of the central bank from government financial policies is very important to preserve the public money deposited in the bank’s vaults.

What the Minister of Finance announced in his aforementioned statement is considered a dangerous precedent for inserting the central bank into the core of the government's financial policy, and making it a tool to implement this policy, and this was clearly demonstrated by what was included in the (white paper) of financing the budget deficit and considering reserve stocks as the only source to bridge the deficit And herein lies the real danger.

It is noteworthy that the white paper indicated on page 37 to the danger of using the central bank as a source of financing, "which will lead to severe pressure on the reserves of the Central Bank and the resulting unsustainable future consequences." Experts reiterated this risk, as it was stated on page 42 of the above paper, “Indirect monetary financing by the Central Bank of Iraq is the only remaining source ... The need for this reserve in financing imports of goods and services means its dangerously low within nine months. Which will ultimately lead to a real crisis in the value of the Iraqi dinar, accompanied by the possibility of a collapse in its value.

It is worth noting that the Central Bank and its reserve treasury are threatened with decline through three axes:

First: Using the reserve treasury of the central bank to finance the government's fiscal deficit. This is done in two ways, the first is to "buy goods and services" using hard currency, and the second way is by using the central bank administration to reduce the exchange rate of the dinar against the dollar to lower levels in order to "pay monthly benefits from salaries."

Second: The continuation of the notorious currency auction, which is a reservoir of corruption and a source of wealth for influential people in the world of politics, finance and business, as hard currency sales exceed state revenues in most cases, and this means withdrawal from reserve stocks and their decline.

Third: The increasing pressure from the state’s creditors, especially Iran, to finance its economy with hard currency, after the US administration listed 18 Iranian banks under penalty of sanctions, so that the Central Bank of Iraq and Iraqi banks became the only outlet for Iran for hard currency. The visit of the Governor of the Central Bank of Iran to Iraq came on October 12, 2020

The statements of the Minister of Finance were not matched by any statement from the Central Bank Governor about these risks, and we have not heard from the new governor, what is his vision of managing the bank’s affairs ?! What is his monetary policy ?! How can he maintain the cash reserve ?! Amid the worsening current economic crisis. Therefore, it is imperative for the new governor to clarify to the public opinion and the societal elites the prospects for the policies of the Central Bank and its position on the dangers of the crisis facing the country, and the means to address it and preserve the reserve stock.

The easiest solution is not a solution

According to informed sources, the team of experts is still busy maturing the white paper and adding details and appendices as a second stage for preparing the road map in detail. The team pointed out the danger of borrowing from the central bank, and even pressure on the price of the dinar and using it as the only means to fill the public budget deficit as stated on the page. 42 of the paper, and the team in charge of its dimensions warned that this "will subsequently lead to an increase in the cost of living, and thus reduce the ability of the majority of individuals to meet their requirements, as the country depends entirely on import to meet consumption." This means that the majority of the people will pay the price for the aggravation of their suffering as a result of this shift in the adopted fiscal policy.

A financial expert, who did not want to reveal his identity, confirms that “the shortest and easiest way to deal is to resort to reserve storage in the central bank and go towards printing the dinar, but taking this way is not a solution, rather it is suicide in particular.” The real fear is that the government and political leaderships resort to this way instead of starting With real radical reforms, which require executive decisions issued by the government, and other legislatively supported decisions by Parliament in the event that Parliament cooperates with the government.

The national duty here makes it imperative for all political forces and all their spectrums and leaders not to stand idly by and to actively participate in adopting practical and difficult solutions that the government team will present through the white paper and its annexes, in addition to what is presented by other experts outside this team from Parliament, sober economic research centers and monetary policy experts. Real reform needs courageous and decisive decisions with the participation of all.

Keeping the doors of corruption wide open in most state institutions, reluctance to curb corruption whales, especially the ruling parties themselves, and not abolish their economic offices to limit their control over ministries, institutions and vital sectors that will ensure the continued exacerbation of risks and threats to the current financial situation, which means that Iraq is going towards A real collapse, and only a few months prevent it from this collapse. With the collapse of the financial and economic situation as expected, the political process will collapse as well, to be followed by the collapse of the Iraqi state, and thus chaos will prevail, and at that time no one will be able to reset and control the situation again except by a miracle that will be difficult to obtain and verify.

What exacerbates the pessimism is that we live in a multi-wing society that is loyal and armed with a loss of control over directing the compass in favor of its stability in normal circumstances, let alone in the circumstances of bankruptcy, political strife, scarcity of resources and the loss of people's livelihood.
We are facing the last opportunity, and the political forces have nothing but the initiative to correct the course and agree to take courageous and responsible decisions to prevent the worst possible scenarios.

* Chairman of the Iraqi Advisory Council

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Great post Aryoseno-

 

I notice that he never says "no" or..."that's simply not true"...and that he appears to dodge the question and water-down his response -which is a great sign!

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9 hours ago, Laid Back said:

- Collapse of the dinar
- Devaluation of the dinar

- Printing 50,000 notes

- The zeros have nothing to do with the value of the currency 

 

This could be a CBI strategy to get the Chunky Cash from the mattress Into the banking system.
 

Go RV in the near future 

 

exactly

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