The most difficult option.. Warnings of the danger of floating the Iraqi dinar without achieving an “important condition”

[RJG]

The most difficult option.. Warnings of the danger of floating the Iraqi dinar without achieving an “important condition”

EconomyYesterday, 15:41 |

    

 

 

https://baghdadtoday.news/247930-الخيار-الأصعب.-تحذيرات-من-خطورة-تعويم-الدينار-العراقي-دون-تحقيق-شرط-مهم.html

 

Baghdad today - Baghdad

Economist Nabil Al-Marsoumi warned today, Thursday (April 25, 2024), of the dangers of floating the Iraqi dinar, noting that such a step could lead to the dinar witnessing a violent collapse and rampant inflation that would jump prices to insane levels.

Al-Marsoumi said in a post on the social networking site “Facebook”, followed by “Baghdad Today”, that “some are proposing a solution to address the double price of the dollar against the dinar and the existence of a large gap between the official and parallel prices through a free float of the Iraqi dinar,” indicating, “i.e. Turk.” The dinar is in the market to find its price against foreign currencies through the interaction of the forces of supply and demand.

 Al-Marsoumi added, “Such a decision has some economic positives,” adding, “But the economy should not be taken in its abstract aspect, but rather insofar as it relates to people, especially the poor.”

He continued, "In light of Iraq's lack of a national private sector that could contribute to increasing the supply of dollars in the Iraqi market, and because of the large volume of imports, which reach 67 billion dollars annually, the only party that owns the dollar is the government," explaining that "in the event that the government decides not to intervene." In the exchange market, it is expected that the dinar will witness a violent collapse and rampant inflation that will cause prices to rise to insane levels that will cause severe damage to citizens’ living standards, and the poor will become more miserable, and will later lead to social tensions and a major rift in the social peace.”

It is noteworthy that the floating exchange rate or currency float is the currency exchange rate that has been floated so that it has become completely liberalized, so the government or the central bank does not interfere in determining it directly, but rather it is released automatically in the currency market through the supply and demand mechanism that allows the price to be determined. Exchange the national currency against foreign currencies.

It is worth noting that the price of the dollar in the local markets is still experiencing a state of instability between rises and falls, even though the official price in the Central Bank of Iraq is 132,000 dinars per 100 dollars, but in the local markets it is witnessing an increase of more than ten points and may at times reach double this. The number is despite the numerous measures and packages launched by the Central Bank of Iraq, where some

attribute that the reason for this confusion in prices is the result of smuggling operations and speculation in the black market for currency

[rvmydinar]

Meaning what? Good? Bad?

[3n1]

the cbi doesn't or hasn't revealed very many specifics since shabibi's departure from the bank so im not sure really what their plan is but shabibi's currency plan was for the iqd to come out strong fixed to a basket of currencies not to fluctuate more than 2% every 90 days , cheers dv'ers

[Laid Back]

The real problem with the dollar disparity in the Iraqi market is the exchange control. As soon the CBI removes exchange control by floating the dinar or fixed to a basket of currencies the problem will be solved.

 

Go end of exchange control 

Go float or fixed rate

Go stronger dinar

[horsesoldier]

They've had how long to get this right and yet they persist with this nonsense.

They know perfectly well what's going on, however, let's trot out the fear and sky is falling owing to a precarious situation IF......

Beyond tiresome and predictable 

[pokerplayer]

40 minutes ago, Laid Back said:

The real problem with the dollar disparity in the Iraqi market is the exchange control. As soon the CBI removes exchange control by floating the dinar or fixed to a basket of currencies the problem will be solved.

 

Go end of exchange control 

Go float or fixed rate

Go stronger dinar

 

Nailed it 👌 

 

   pp

[DinarDavo]

2 hours ago, Laid Back said:

The real problem with the dollar disparity in the Iraqi market is the exchange control. As soon the CBI removes exchange control by floating the dinar or fixed to a basket of currencies the problem will be solved.

 

Go end of exchange control 

Go float or fixed rate

Go stronger dinar

 

I'm not an economist, nor do I play one on tv, but this seems like such a solid approach to taking their economy to the next level (from our remote viewing location) that I can't help but believe that there must be some powerful entities involved that are opposed to this. Heck, try it as an experiment and see what happens.   

[Fimum]

All they need to do is consult with the Chinese Elders.