Experts discuss fate of the Iraqi Dinar

[pokerplayer]

In case this is the wrong location, please move.

 

   pp

 

Experts discuss fate of the Iraqi Dinar

26th November 2020 in Iraq Banking & Finance News, Politics

By John Lee.

At a webinar hosted by the Iraq Britain Business Council (IBBC) yesterday, a team of experts presented and discussed their insights on the Iraqi government's recent White Paper, and on the challenges and opportunities facing the country.

On the subject of the Iraqi currency, Frank Gunter, Professor of Economics at Lehigh University, commented:

"As the international reserves of Iraq decrease ... this is going to put pressure for a depreciation or loss of value of the dinar ... and that might be a good thing.

"The dinar was deliberately appreciated, increased in value, by almost 20 percent. It has made exports from Iraq uncompetitive; it has led to a huge amount of imports into Iraq because the foreign products are so cheap.

"Maybe a possible reaction to the fiscal constraint is to devalue the dinar, so that every dollar of oil sales will buy more dinar, which will allow payment of the salaries and pensions and the infrastructure."

While agreeing that the dinar was overvalued, Hadi Al Damirji, of MIT's Sloan School of Management, urged some caution, in case a devaluation would lead to a further run on the dinar:

"I totally agree with the philosophy of keeping the dinar lower, but when is the right time to move it?"

Suggesting a controlled devaluation, in combination with incentives to reduce public sector salary commitments, Shwan Aziz, former Chief of staff to the Iraqi Deputy Prime Minister, said:

"[We must] protect those groups that have dinars in the banks, or those contractors who have not been paid for so many years ... [but] controlled devaluation, it seems, is unavoidable."

The full discussion can be viewed here.

[DWS112]

53 minutes ago, pokerplayer said:

The dinar was deliberately appreciated, increased in value, by almost 20 percent.

Talking about a controlled devaluation of 20% from .00084 to .00066 per dollar should occur?

Result would be about 1500 dinars per dollar?

[rvmydinar]

This is just someone opinion. I don't believe it at all. And I am just curious did this professor own dinars? Did this professor try to scare away dinar investors to sell of their dinars? 

[alreis]

Or is this more misdirection

[Engine1]

Or maybe just maybe the experts have studied Iraq and their economic position, and this is what they came up with a devaluation.  Now if they would have said we must increase the value of the dinar, nobody would be hollering "smoke and mirrors" or "misdirection" nope you would have accepted it.  Why is it when there is good news you accept it but when there is bad news, it's always smoke and mirrors. Dont ya think if they wanted to stop us from buying the dinar, they would stop selling it?    I may be wrong of way off base but,,,,  hey whatever. Bash all you want and hit those little emojis, you know the ones. The trophy, the arrows up the arrows down and the POW. I dont really care what I get.  

[Theseus]

2 hours ago, DWS112 said:

Talking about a controlled devaluation of 20% from .00084 to .00066 per dollar should occur?

Result would be about 1500 dinars per dollar?

They have been calling for that to happen, well between the range of 1300 to 1500 dinars per dollar.

[Kenny_Logins]

"Hey Iraqi citizens, remember that time you all revolted and demanded purchasing power of your currency? Well guess what!"

[DWS112]

Expectations of a decrease in the value of the Iraqi dinar against the dollar in 2021

11/24/2020

 

Al-Mustaqilla / Economic expert, Mazen Al-Ashiker, predicted the decline in the value of the Iraqi dinar against the US dollar, and the extension of the salary crisis to next year 2021.

Al-Ashiker said in a televised interview, that improving the economic infrastructure begins with the currency, and today the Iraqi currency does not differ from the conditions of the Iranian toman and the Syrian pound, and it is likely that the value of one dollar will reach two thousand dinars ($ 100 equals 200 thousand dinars) next year 2021.

Al-Ashiker added that the reasons for the expected decline of the dinar come from the association of economic problems with the neighbors, and it is possible to damage the Iraqi dinar as well as the Iranian Toman.

He continued, that the corrupt political parties prevent access to the free economic system in the country.

The economic expert explained that the 2020 problem regarding salaries and lack of funds will extend to 2021 and possibly the coming years due to the continued decline in oil prices and the impossibility of reaching $ 50 per barrel, stressing that “in the event that we do not rely on the private sector, Iraq will end economically.

With the outbreak of the Corona virus at the beginning of this year, 2020, Iraq is experiencing a suffocating financial crisis due to the decline in oil prices that have paralyzed large sectors of the world’s economies.

Signs of a severe economic crisis appeared in Iraq, which put the government before the test of the possibility of securing the salaries of employees and retirees, since the financial crisis still exists without any government solutions.

The government has resorted to borrowing twice, because oil and non-oil revenue funds are not sufficient to cover operational expenses, while the government actually needs to pay the expenses, including salaries, to about six billion dollars per month.

The law stated that the financing gap (deficit) for the remaining months of 2020 amounted to 12 trillion Iraqi dinars (10 billion dollars), and it will be funded by authorizing the Minister of Finance to borrow locally and abroad.

[DWS112]

I posted this article in another section.

The statement below "reducing salaries is difficult for the citizen"  may indicate we will see a devaluation in 2021. JMO - DWS112

 

A member of Parliament Finance proposes to re-"arrange" salaries

11/23/2020

 

Baghdad Today - Follow-up

Member of the Parliamentary Finance Committee, Jamal Cougar, on Monday (11-23-2020), specified a number of conditions that must be met in the 2021 budget before sending it by the government to the House of Representatives, while noting that the time has come to rearrange salaries by the government.

Cougar said in a televised statement followed by (Baghdad Today), "There is no prior rejection of the 2021 budget, but there is a refusal to present another law for borrowing in order to secure salaries, and the Council of Ministers must send the budget to Parliament to legislate it before the end of this year to solve the salary crisis."

He added, "We will not accept that the budget be sent to Parliament, and it contains many borrowing laws. There is no real reform and implementation of the white paper that the government sent some time ago."

And on the salaries of employees, Cougar said, "The time has come to rearrange salaries by the government, but 👉  reducing salaries is difficult for the citizen and we do not believe that it is a sound thing with the economic conditions in the country and until now there is nothing official about that just talk in the white paper."

Some social networking sites had reported that the Finance Committee in the House of Representatives submitted a proposal to the Iraqi government to reduce 70% of the allocations and salaries of state employees as compulsory savings.

The House of Representatives approved, this month, the internal and external borrowing law worth 12 trillion dinars (10 billion dollars), in an effort to end the crisis of delayed payment of state salaries, which has lasted about two months.

This is the second time that the government has asked Parliament to grant it the authorization to borrow, with the aim of securing operating expenses, on top of which are the salaries of employees.

Parliament had approved on June 24 a bill that allowed the government to borrow 15 trillion dinars (12.5 billion dollars) internally, and 5 billion dollars abroad to cover the fiscal deficit.

The country is experiencing a suffocating financial crisis due to the decline in oil prices due to the Corona pandemic crisis, which has paralyzed large sectors of the world’s economies.

Before the Corona crisis, revenues from selling crude amounted to about $ 6 billion per month, but they have almost halved this year.

The reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, said in an interview with (Baghdad Today), "Deleting zeros from the currency does not affect financially and does not get the country out of the crisis, and it is only a psychological aspect."

He added, "Eliminating zeros will affect the government because it will destroy the currency it has and issue a new currency without zeros, and this will be in printing houses outside the country and this will cost the government a lot, and the current time is not suitable for this procedure."

As for the member of the Finance Committee, Ahmed Hama, he said to (Baghdad Today),

 "Exiting the financial crisis is not only by deleting zeros from the Iraqi currency because the crisis is mainly economic," indicating that "deleting zeros from the Iraqi dinar needs to print a new currency."

He pointed out that "the cost of printing a new currency of different denominations of currency up to 60 trillion dinars, and this is difficult for Iraq to bear at the present time, because each denomination or every banknote of the currency requires 6 cents to be issued again."

Edited November 26, 2020 by DWS112

[cranman]

3 hours ago, Engine1 said:

Or maybe just maybe the experts have studied Iraq and their economic position, and this is what they came up with a devaluation.  Now if they would have said we must increase the value of the dinar, nobody would be hollering "smoke and mirrors" or "misdirection" nope you would have accepted it.  Why is it when there is good news you accept it but when there is bad news, it's always smoke and mirrors. Dont ya think if they wanted to stop us from buying the dinar, they would stop selling it?    I may be wrong of way off base but,,,,  hey whatever. Bash all you want and hit those little emojis, you know the ones. The trophy, the arrows up the arrows down and the POW. I dont really care what I get.  

Yep. I understand your point of view. This has always been a highly speculative investment. We could easily lose money. It's all part of the game. As long as no one is depending on it to save their lives, it's all good.  We can all withstand a little disappointment if this doesn't pan out.

[rvmydinar]

2 hours ago, DWS112 said:

I posted this article in another section.

The statement below "reducing salaries is difficult for the citizen"  may indicate we will see a devaluation in 2021. JMO - DWS112

 

A member of Parliament Finance proposes to re-"arrange" salaries

11/23/2020

 

Baghdad Today - Follow-up

Member of the Parliamentary Finance Committee, Jamal Cougar, on Monday (11-23-2020), specified a number of conditions that must be met in the 2021 budget before sending it by the government to the House of Representatives, while noting that the time has come to rearrange salaries by the government.

Cougar said in a televised statement followed by (Baghdad Today), "There is no prior rejection of the 2021 budget, but there is a refusal to present another law for borrowing in order to secure salaries, and the Council of Ministers must send the budget to Parliament to legislate it before the end of this year to solve the salary crisis."

He added, "We will not accept that the budget be sent to Parliament, and it contains many borrowing laws. There is no real reform and implementation of the white paper that the government sent some time ago."

And on the salaries of employees, Cougar said, "The time has come to rearrange salaries by the government, but 👉  reducing salaries is difficult for the citizen and we do not believe that it is a sound thing with the economic conditions in the country and until now there is nothing official about that just talk in the white paper."

Some social networking sites had reported that the Finance Committee in the House of Representatives submitted a proposal to the Iraqi government to reduce 70% of the allocations and salaries of state employees as compulsory savings.

The House of Representatives approved, this month, the internal and external borrowing law worth 12 trillion dinars (10 billion dollars), in an effort to end the crisis of delayed payment of state salaries, which has lasted about two months.

This is the second time that the government has asked Parliament to grant it the authorization to borrow, with the aim of securing operating expenses, on top of which are the salaries of employees.

Parliament had approved on June 24 a bill that allowed the government to borrow 15 trillion dinars (12.5 billion dollars) internally, and 5 billion dollars abroad to cover the fiscal deficit.

The country is experiencing a suffocating financial crisis due to the decline in oil prices due to the Corona pandemic crisis, which has paralyzed large sectors of the world’s economies.

Before the Corona crisis, revenues from selling crude amounted to about $ 6 billion per month, but they have almost halved this year.

The reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, said in an interview with (Baghdad Today), "Deleting zeros from the currency does not affect financially and does not get the country out of the crisis, and it is only a psychological aspect."

He added, "Eliminating zeros will affect the government because it will destroy the currency it has and issue a new currency without zeros, and this will be in printing houses outside the country and this will cost the government a lot, and the current time is not suitable for this procedure."

As for the member of the Finance Committee, Ahmed Hama, he said to (Baghdad Today),

 "Exiting the financial crisis is not only by deleting zeros from the Iraqi currency because the crisis is mainly economic," indicating that "deleting zeros from the Iraqi dinar needs to print a new currency."

He pointed out that "the cost of printing a new currency of different denominations of currency up to 60 trillion dinars, and this is difficult for Iraq to bear at the present time, because each denomination or every banknote of the currency requires 6 cents to be issued again."

If it costs a fortune (6 cents ) to print a new currency without zero, then i still don't get it why have they kept talking about it over and over again many many times? It is so bored. One time is more than enough, not too many times for the same articles. And then If they already printed lower denoms a long time ago, then why have still they talked again and again for the same articles. I am curious are they planning to print lower denoms again for the second time, but what for? It's just wasting money to do something that has already been done before. And iraq doesn't have enough money to pay the salaries every month, this is why i don't think iraq will print new lower denoms again for the second time. Unless they have something to surprise me suddenly. Who knows.

[rvmydinar]

4 hours ago, DWS112 said:

Expectations of a decrease in the value of the Iraqi dinar against the dollar in 2021

11/24/2020

 

Al-Mustaqilla / Economic expert, Mazen Al-Ashiker, predicted the decline in the value of the Iraqi dinar against the US dollar, and the extension of the salary crisis to next year 2021.

Al-Ashiker said in a televised interview, that improving the economic infrastructure begins with the currency, and today the Iraqi currency does not differ from the conditions of the Iranian toman and the Syrian pound, and it is likely that the value of one dollar will reach two thousand dinars ($ 100 equals 200 thousand dinars) next year 2021.

Al-Ashiker added that the reasons for the expected decline of the dinar come from the association of economic problems with the neighbors, and it is possible to damage the Iraqi dinar as well as the Iranian Toman.

He continued, that the corrupt political parties prevent access to the free economic system in the country.

The economic expert explained that the 2020 problem regarding salaries and lack of funds will extend to 2021 and possibly the coming years due to the continued decline in oil prices and the impossibility of reaching $ 50 per barrel, stressing that “in the event that we do not rely on the private sector, Iraq will end economically.

With the outbreak of the Corona virus at the beginning of this year, 2020, Iraq is experiencing a suffocating financial crisis due to the decline in oil prices that have paralyzed large sectors of the world’s economies.

Signs of a severe economic crisis appeared in Iraq, which put the government before the test of the possibility of securing the salaries of employees and retirees, since the financial crisis still exists without any government solutions.

The government has resorted to borrowing twice, because oil and non-oil revenue funds are not sufficient to cover operational expenses, while the government actually needs to pay the expenses, including salaries, to about six billion dollars per month.

The law stated that the financing gap (deficit) for the remaining months of 2020 amounted to 12 trillion Iraqi dinars (10 billion dollars), and it will be funded by authorizing the Minister of Finance to borrow locally and abroad.

A decrease in the value of iraq dinar in 2021? Let's wait and see if iraq really got the balls to do it. I am sure iraq just talk talk talk like usual and it is so bored, after that more bs no action at all. This isn't the first time iraq talk talk and more bs no action. Come on iraq. Just git er done for the sake of iraq citizens and dinar investors.

[rvmydinar]

1 minute ago, rvmydinar said:

A decrease in the value of iraq dinar in 2021? Let's wait and see if iraq really got the balls to do it. I am sure iraq just talk talk talk like usual and it is so bored, after that more bs no action at all. This isn't the first time iraq talk talk and more bs no action. Come on iraq. Just git er done for the sake of iraq citizens and dinar investors.

What they say and what they do will always be the opposite. So it is much better to pay much more attention to what do, not what they say. Come rv.

[GreedyDinar07]

"In the event we do not rely on the Private Sector, Iraq will end economically" at the end of the day this is what it boils down to! Alkahezmei has been all over the world seeking International support and from what has been reported recently Iraq will receive assistance from the World Bank, The International Monetary Fund and the G7 Countries. It appears all of this is scripted because covid 19 has caused the barrel of oil to decrease and worsen the Iraq economy which is forcing them to adopt some type of economic reform. If this doesn't happen then Iraq will sink into the abyss of economic hell and Iran and the militias will reap havoc. Will Iraq and the International Community allow this happen? I think we will find out pretty soon. Allegedly there is some type of Economic reset coming in 2021 and covid is a byproduct of this reset. I can not prove this because it is all speculation just like this investment but there is a meeting early next year either virtually or in Devous Switzerland regarding the World Economy. Another article stated they will have to stop the auctions and give the dinar a real exchange rate. If the exchange rate doesn't increase there will be a s$%t load of Iraq Dinar being held in different countries with no value and that does nothing for Iraq Internationally. They can not continue to borrow from the CBI because this will destroy the Dinar as well. I am going to stick around and see what happens!!

.

 

[rvmydinar]

9 minutes ago, GreedyDinar07 said:

"In the event we do not rely on the Private Sector, Iraq will end economically" at the end of the day this is what it boils down to! Alkahezmei has been all over the world seeking International support system" rel="">support and from what has been reported recently Iraq will receive assistance from the World Bank, The International Monetary Fund and the G7 Countries. It appears all of this is scripted because covid 19 has caused the barrel of oil to decrease and worsen the Iraq economy which is forcing them to adopt some type of economic reform. If this doesn't happen then Iraq will sink into the abyss of economic hell and Iran and the militias will reap havoc. Will Iraq and the International Community allow this happen? I think we will find out pretty soon. Allegedly there is some type of Economic reset coming in 2021 and covid is a byproduct of this reset. I can not prove this because it is all speculation just like this investment but there is a meeting early next year either virtually or in Devous Switzerland regarding the World Economy. Another article stated they will have to stop the auctions and give the dinar a real exchange rate. If the exchange rate doesn't increase there will be a s$%t load of Iraq Dinar being held in different countries with no value and that does nothing for Iraq Internationally. They can not continue to borrow from the CBI because this will destroy the Dinar as well. I am going to stick around and see what happens!!

.

 

If iraq can't stop the corruptions that have spread around the government circle like a virus, then what is the point of implementation of economic reform? It is useless but i hope not. Stop the corruptions and start building your country iraq citizens. Wake up and don't sleep too long.

[Dalpat]

https://www.iraq-businessnews.com/2020/11/26/experts-discuss-fate-of-the-iraqi-dinar/

 

Any comments , anyone?

[rvmydinar]

2 minutes ago, Dalpat said:

https://www.iraq-businessnews.com/2020/11/26/experts-discuss-fate-of-the-iraqi-dinar/

 

Any comments , anyone?

someone already posted on this thread. it is double posted. it is just someone opinion. I don"t believe in someone opinion. unless the governor of cbi himself says in front of iraqi citizens, the media, tv, radio.

[screwball]

Tell me when so I can send more money over get better rate and buy more shares 

Edited November 27, 2020 by screwball

[screwball]

11 minutes ago, rvmydinar said:

someone already posted on this thread. it is double posted. it is just someone opinion. I don"t believe in someone opinion. unless the governor of cbi himself says in front of iraqi citizens, the media, tv, radio.

The plan is the plan.   Shabibi is the man anyone else is a flog 

[shixjr]

Iraq hasn't gotten to where they are financially by making good economic decisions.  That's why they are broke now.  They have squandered and stolen all the oil money they have made for decades and now that oil is down, they are too.  I am hoping the STUPID-19 is going to wake them up and help them manage their country's finances better.  There are always people who are going to say and do dumb things, but that's not our concern.  I heard Jim Rohn say one time, "The best thing you can do to help poor people is not to become one of them".  I think Kazemi is on the right track with Iraq, but he's having to wade through a bunch of old mud and corruption to get where he wants to go.  Let's be gracious  and patient and let him do his job.

[coorslite21]

Have to just add a link to this one.....at the bottom the comments are pretty telling..... MSM in countries all over the world seem very confused.....or corrupt right now...   CL

 

https://www.iraq-businessnews.com/2020/11/26/experts-discuss-fate-of-the-iraqi-dinar/

[rvmydinar]

This is the same article again. This is triple posted. Someone already posted in this thread.

[rvmydinar]

21 hours ago, Engine1 said:

Or maybe just maybe the experts have studied Iraq and their economic position, and this is what they came up with a devaluation.  Now if they would have said we must increase the value of the dinar, nobody would be hollering "smoke and mirrors" or "misdirection" nope you would have accepted it.  Why is it when there is good news you accept it but when there is bad news, it's always smoke and mirrors. Dont ya think if they wanted to stop us from buying the dinar, they would stop selling it?    I may be wrong of way off base but,,,,  hey whatever. Bash all you want and hit those little emojis, you know the ones. The trophy, the arrows up the arrows down and the POW. I dont really care what I get.  

So if this is a bad news, then what are going to do with your dinars? Do you want to sell off your dinar and never touch it forever? This is just people opinion. Unless the governor of cbi and president of iraq  say directly in front of iraqi citizens, media,  tv, radio openly. Who do you think knows a lot better 100% about iraq's economic situation and condition in details between the governor of cbi & president of iraq and just someone opinion? This is why i don't believe someone opinion at all.

[Laid Back]

Another opinion piece taking about devaluation of the Iraqi dinar to cover salaries.

 

If the plan is to devalue the dinar, they will have to print more currency 

 

I found this from a CBI Article

 

“The CBI noted that its law and its monetary policy do not allow the issuance of cash in favor of an account without balance, referring to printing currency.“

 

We wait and see.

 

Go RV

Go $1:1

 

 

 

 

[Engine1]

3 hours ago, rvmydinar said:

So if this is a bad news, then what are going to do with your dinars? Do you want to sell off your dinar and never touch it forever? This is just people opinion. Unless the governor of cbi and president of iraq  say directly in front of iraqi citizens, media,  tv, radio openly. Who do you think knows a lot better 100% about iraq's economic situation and condition in details between the governor of cbi & president of iraq and just someone opinion? This is why i don't believe someone opinion at all.

Do you read my positive post or just my negative post.  I can comment on anything I want to. If you dont agree with me so be it.  But you must one of those who only accept the positives. Take off your rose colored glasses, not everything is rosy and shiny.  I post on what I want. Try reading my positive post if you get butt hurt reading my negative post.