DWS112 Posted May 22, 2021 Report Share Posted May 22, 2021 Advisor Al-Kazemi warns of the risks of increasing the quantities of local currency in the market May 22, 2021 Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, outlined today, Saturday, the tasks of banks in investing the funds deposited with them, while he warned of the risks of raising the cash issuance at the expense of financing and increasing the quantities of Iraqi currency in the market. Saleh said, to the Iraqi News Agency (INA), that "the quantitative theory in economics confirms the existence of a direct relationship between the quantity of money and prices, and therefore the more money the price rises, so the income is assumed to be constant," warning of "the risks of raising the cash issuance at the expense of Financing, because it will lead to inflation. " 🙄 He added, "The cash quantity must be proportional to income," noting that "there is a stagnation in the monetary cycle." With regard to the tasks of banks, he explained, "The banks' job is to transfer money from surplus units represented by the entities and people who have money but lack the willingness to invest it and resort to depositing their money with them, to the deficit units represented by people who are willing to invest and rebuild but do not have sufficient funds, and want to borrow because of their desire to do so." Building and Reconstruction. " He stressed, "Banks are responsible for the process of recycling the flowing liquidity resulting from production, to prevent disrupting investment by not spending money on investments," stressing "the need to properly rotate funds and ensure the availability of consumer and investment spending to prevent a financial recession." He pointed out that "the income cycle requires that the money that is not consumed should go to saving, and then the saved money is transferred to consumption so that the cycle is completed in its correct form," indicating that "This process is a very healthy condition. " He explained, "The basis of funds is economic activity, while funds that come without economic activity are considered inflationary money, such as printing currency and so on," noting that "saved funds that are not spent on investments will lead to disruption of investment." Sounds like an economy of trillions may be coming to an end? - JMO DWS112 1 1 7 6 Quote Link to comment Share on other sites More sharing options...
Laid Back Posted May 23, 2021 Report Share Posted May 23, 2021 The only cash issuance we want is the Lower denomination notes. Go RV Go LD’s Go $1:1 1 1 1 5 2 Quote Link to comment Share on other sites More sharing options...
DF#1 Posted May 23, 2021 Report Share Posted May 23, 2021 2 hours ago, Laid Back said: The only cash issuance we want is the Lower denomination notes. Go RV Go LD’s Go $1:1 Thank you L B .. for your input, it's appreciated. Just want this ride to be over with. 1 3 Quote Link to comment Share on other sites More sharing options...
wciappetta Posted May 23, 2021 Report Share Posted May 23, 2021 11 hours ago, DWS112 said: Advisor Al-Kazemi warns of the risks of increasing the quantities of local currency in the market May 22, 2021 Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, outlined today, Saturday, the tasks of banks in investing the funds deposited with them, while he warned of the risks of raising the cash issuance at the expense of financing and increasing the quantities of Iraqi currency in the market. Saleh said, to the Iraqi News Agency (INA), that "the quantitative theory in economics confirms the existence of a direct relationship between the quantity of money and prices, and therefore the more money the price rises, so the income is assumed to be constant," warning of "the risks of raising the cash issuance at the expense of Financing, because it will lead to inflation. " 🙄 He added, "The cash quantity must be proportional to income," noting that "there is a stagnation in the monetary cycle." With regard to the tasks of banks, he explained, "The banks' job is to transfer money from surplus units represented by the entities and people who have money but lack the willingness to invest it and resort to depositing their money with them, to the deficit units represented by people who are willing to invest and rebuild but do not have sufficient funds, and want to borrow because of their desire to do so." Building and Reconstruction. " He stressed, "Banks are responsible for the process of recycling the flowing liquidity resulting from production, to prevent disrupting investment by not spending money on investments," stressing "the need to properly rotate funds and ensure the availability of consumer and investment spending to prevent a financial recession." He pointed out that "the income cycle requires that the money that is not consumed should go to saving, and then the saved money is transferred to consumption so that the cycle is completed in its correct form," indicating that "This process is a very healthy condition. " He explained, "The basis of funds is economic activity, while funds that come without economic activity are considered inflationary money, such as printing currency and so on," noting that "saved funds that are not spent on investments will lead to disruption of investment." Sounds like an economy of trillions may be coming to an end? - JMO DWS112 Interesting observation. Massive Foreign direct investment is on the horizon and with it a required change in currency value. This man knows what is coming, he has been financial advisor to what three prime ministers? There will indeed be a degree of inflation inside Iraq with the planned reconstruction ie Jobs, Jobs, Jobs. More disposable income slushing around the economy chasing available goods etc. Introducing a new pre 1980 exchange rate from the perspective of in-country accounting alone is required and he knows it. Such an exchange rate was alluded to by the US State Dept from the beginning and one Iraqi CBI gov out and out declared this eventual intention in 2008. These are the sneak-peeks into behind the scene strategies that are generally hidden from public view. Not much longer IMO ... Nice find BTW 5 3 1 Quote Link to comment Share on other sites More sharing options...
stanleypower Posted May 23, 2021 Report Share Posted May 23, 2021 2 hours ago, wciappetta said: Interesting observation. Massive Foreign direct investment is on the horizon and with it a required change in currency value. This man knows what is coming, he has been financial advisor to what three prime ministers? There will indeed be a degree of inflation inside Iraq with the planned reconstruction ie Jobs, Jobs, Jobs. More disposable income slushing around the economy chasing available goods etc. Introducing a new pre 1980 exchange rate from the perspective of in-country accounting alone is required and he knows it. Such an exchange rate was alluded to by the US State Dept from the beginning and one Iraqi CBI gov out and out declared this eventual intention in 2008. These are the sneak-peeks into behind the scene strategies that are generally hidden from public view. Not much longer IMO ... Nice find BTW Excellent breakdown!! 3 Quote Link to comment Share on other sites More sharing options...
Mary B Posted May 24, 2021 Report Share Posted May 24, 2021 Economist: The Iraqi government has no choice but to increase the amount of money Today, Baghdad - IQ The economic expert, Abdul Rahman Al-Mashhadani, said, Monday (May 24, 2021) that the Iraqi government has no choice in equating the monetary mass with the population increase, except by increasing the amount of money, indicating that the rate of population increase negatively affects the monetary mass. Al-Mashhadani said, in a statement to IQ NEWS , that "the monetary mass must be consistent with the size of the population and economic activity. Any increase in the monetary mass must be equal to the rate of population increase and the rate of increase in GDP growth," indicating that "the rate of population increase is 2.5% The rate of growth in gross domestic product was negative in the past year, but let's assume that it is 4%, meaning that the monetary mass should not exceed 6% or 7%. " Al-Mashhadani pointed out that "twice the government borrowing forced the central bank to issue new cash, which led to an increase in the monetary mass from 64 trillion dinars to 90 trillion dinars, but this rise did not stimulate the Iraqi economy because the government delayed paying salaries in a timely manner, which led to the market's thirst." That "the government has no options but to increase the amount of money." He stressed that "all the goals that the government sought to change the exchange rate have not been achieved since the process of currency exit is still abroad, and the national industry is insufficient to secure the market," stressing that "changing the exchange rate has only achieved an increase in the number of the poor in the country to 3 million." . The Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, warned last Saturday of the risks of raising the cash issuance at the expense of financing and increasing the quantities of the Iraqi currency in the market . Saleh said, in a statement to the Iraqi News Agency, that "the quantitative theory in economics confirms the existence of a direct relationship between the quantity of money and prices, and thus the more money the price rises, so the income is assumed to be fixed," warning of "the risks of raising the cash issue at the expense of financing." Because it will lead to inflation. " https://www.iqiraq.news/economy/20136--.html 3 Quote Link to comment Share on other sites More sharing options...
pontiyak Posted May 24, 2021 Report Share Posted May 24, 2021 How about increasing the value of the money to compensate for the population increase...???? The best things in life RV yak 2 Quote Link to comment Share on other sites More sharing options...
rvmydinar Posted May 24, 2021 Report Share Posted May 24, 2021 11 minutes ago, Mary B said: "changing the exchange rate has only achieved an increase in the number of the poor in the country to 3 million." It depends. If the cbi decrease the rate from 1450 to 1600, then the number of poor iraqi citizens will increase because the price of all goods will be very expensive. On the other hand, if the cbi increase the rate from 1450 to 1000, then delete 3 zeros and become 1:1 , then the number of prosperous iraqi citizens will increase because the price of goods will be very cheap. Now we just wait and see and hopefully, the government of cbi will increase the rate from 1450 to 1000. 1 1 1 Quote Link to comment Share on other sites More sharing options...
GreedyDinar07 Posted May 24, 2021 Report Share Posted May 24, 2021 So correct me if I am wrong. They are going to release more notes when the goal of lowering the exchange rate was to pull in the large denominations? This make no sense what so ever and everything is going in the wrong direction but you guys still believe there will be a RV within the next 5 minutes. No disrespect but I don't get it. Iraq will be the new Zimbwae and eventually the laughing stock of the Middle East. I feel sorry for their people. Their politician are just as bad if not worst than ours. What a waste!! Quote Link to comment Share on other sites More sharing options...
Laid Back Posted May 24, 2021 Report Share Posted May 24, 2021 We all know the ultimate goal is to give purchasing power to the people and move to an open market economy. Printing more currency 1k, 5k, 10k, 25k and 50k will do the opposite - The dinar is going to decrease in value - The purchasing will be less - It will create inflation - It will increase the prices of goods and services This make no sense to me..... BS.! 2 4 Quote Link to comment Share on other sites More sharing options...
Longtimelurker Posted May 25, 2021 Report Share Posted May 25, 2021 If they successfully collected 90% of large notes, this makes sense. Maybe they will release the smaller denominations. Just a thought. 1 2 Quote Link to comment Share on other sites More sharing options...
3 bucks new rv rate Posted May 25, 2021 Report Share Posted May 25, 2021 5 hours ago, Longtimelurker said: If they successfully collected 90% of large notes not only in country of iraq , but also out of iraq country. in country of iraq, iraqi citizens still prefer hide their dinars under the mattress instead of putting them in the bank. in addition to that, out of iraq country, none of dinar holders/investors around the globe / internationally want to exchange the dinar for dollars ( unless people are tired of waiting/impatient and give up and sell their dinar for dollars ) before rv comes, right folks. then, how can the cbi collect large notes in country of iraq and out of iraq country? Quote Link to comment Share on other sites More sharing options...
screwball Posted May 25, 2021 Report Share Posted May 25, 2021 11 hours ago, Laid Back said: We all know the ultimate goal is to give purchasing power to the people and move to an open market economy. Printing more currency 1k, 5k, 10k, 25k and 50k will do the opposite - The dinar is going to decrease in value - The purchasing will be less - It will create inflation - It will increase the prices of goods and services This make no sense to me..... BS.! That’s why they will do opposite 1 4 Quote Link to comment Share on other sites More sharing options...
DWS112 Posted May 26, 2021 Author Report Share Posted May 26, 2021 On 5/24/2021 at 11:25 AM, Mary B said: an increase in the monetary mass from 64 trillion dinars to 90 trillion dinars This is the only article that the monetary mass has reached 90 trillion? I can find no reference to this. 1 2 Quote Link to comment Share on other sites More sharing options...
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