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A new strategy to restructure the Iraqi currency


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ECONOMY

A new strategy to restructure the Iraqi currency

Categories of the Iraqi currency

23.06.2011

Hassan Rashid

Completed the CBI a new strategy to restructure the local currency, having formed a monetary policy mainstay of the economy of the country over the past eight years by enabling them to maintain the stability of the Iraqi dinar exchange rate against other currencies. The consultant said the Central Bank of the appearance of Mohammed Salih in an interview with Radio Free Iraq that the Bank is preparing to start applying the new strategy commensurate with the strength of the Iraqi currency and the positive developments that await the Iraqi economy in the stage. According to the data of the Central Bank of Iraq is currently trading about 29 trillion Iraqi dinars through five trillions of paper money, a mass of cash described in favor of considerable ability is very He pointed out that the application of the strategy need to be approved by the government and parliament as it relates to a national very important. include the new strategy according to the benefit of several steps of the most prominent issue of substantial monetary up to the equivalent of one hundred U.S. dollars, and small, including coins. For its part, says Chairman of the Committee House Financial former Alaa al-Sadoun that the current situation of the Iraqi currency and enjoys the stability of the set for a restructuring. but Sadoun, indicate that this measure alone is not enough to promote the Iraqi economy, but we must move the wheel of national development in general, and especially regarding activating the role of the private sector. more details in the audio file:

http://www.iraqhurr.org/content/article/24244473.html

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Their has to be an increase to promote the private sector....unless the private sector was to have all foreign investors and their laws just don't promote outside investment into anything tangible in my opinion. They want Iraqi's to magically come up with money to open shops but you have to own land or have something of considerable value to get a loan.

Unless you raise the value of the remaining currency still in circulation.....only way they will have the 9% growth they have claimed....IMO!

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ECONOMY

A new strategy to restructure the Iraqi currency

Categories of the Iraqi currency

23.06.2011

Hassan Rashid

Completed the CBI a new strategy to restructure the local currency, having formed a monetary policy mainstay of the economy of the country over the past eight years by enabling them to maintain the stability of the Iraqi dinar exchange rate against other currencies. The consultant said the Central Bank of the appearance of Mohammed Salih in an interview with Radio Free Iraq that the Bank is preparing to start applying the new strategy commensurate with the strength of the Iraqi currency and the positive developments that await the Iraqi economy in the stage. According to the data of the Central Bank of Iraq is currently trading about 29 trillion Iraqi dinars through five trillions of paper money, a mass of cash described in favor of considerable ability is very He pointed out that the application of the strategy need to be approved by the government and parliament as it relates to a national very important. include the new strategy according to the benefit of several steps of the most prominent issue of substantial monetary up to the equivalent of one hundred U.S. dollars, and small, including coins. For its part, says Chairman of the Committee House Financial former Alaa al-Sadoun that the current situation of the Iraqi currency and enjoys the stability of the set for a restructuring. but Sadoun, indicate that this measure alone is not enough to promote the Iraqi economy, but we must move the wheel of national development in general, and especially regarding activating the role of the private sector. more details in the audio file:

http://www.iraqhurr.org/content/article/24244473.html

Very good find! This is the first time I have read that the IQD will be strengthened as far as exchange rate against other currencies and valued to future developments... Then goes on to say new denominations will be from the equivalent of the U.S. 100 dollars down to having coins. This is something that would be needed if the IQD had a floating rate in the forex market. This is saying that they will open at a rate that will be it's true value... It will be Internationally traded... It will have notes and coins to support a trading value!!!!!!!!!!

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Very good find! This is the first time I have read that the IQD will be strengthened as far as exchange rate against other currencies and valued to future developments... Then goes on to say new denominations will be from the equivalent of the U.S. 100 dollars down to having coins. This is something that would be needed if the IQD had a floating rate in the forex market. This is saying that they will open at a rate that will be it's true value... It will be Internationally traded... It will have notes and coins to support a trading value!!!!!!!!!!

I'm not interpreting it the same way you are. "maintain the stability of the Iraqi dinar exchange rate against other currencies." I read maintain the stability of the iraqi dinar, not strengthen the exchange rate. The stability of the dinar can be maintained at 1170 just as well as any other exchange rate. The cbi has said recently that the dinar is stable at 1170 against the dollar. 1170 isn't going to do anything to help the problem with inflation that shabibi doesn't want to go past 7% which it pretty much is at now, but the dinar has been stable at 1170 for a while now, and Iraq seems to be content to keep it there for the time being.

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I'm not interpreting it the same way you are. "maintain the stability of the Iraqi dinar exchange rate against other currencies." I read maintain the stability of the iraqi dinar, not strengthen the exchange rate. The stability of the dinar can be maintained at 1170 just as well as any other exchange rate. The cbi has said recently that the dinar is stable at 1170 against the dollar. 1170 isn't going to do anything to help the problem with inflation that shabibi doesn't want to go past 7% which it pretty much is at now, but the dinar has been stable at 1170 for a while now, and Iraq seems to be content to keep it there for the time being.

Here is why 1170 would not work, with chapter vii lifted iraq no longer has to have a pegged artificial rate. and with an international currency iraq can no longer afford this rate or any pegged rate that is low. now that the debt collectors have the right to seize what is rightfully theirs, iraq has to have a currency that can not only pay the debt but also pay the bills and keep its value. lifting ch7 puts them in big boy pants with real money and not using the dollar as a means to keep paying but using all major currencies to hold in reserves to sustain a real rate for the iqd. it would take all of iqd they have to pay off the debt and it still would not be enough at 1170 besides no one would take it at that rate because they know it would be worthless. but if it was actually backed by oil and iraqs future then it would become valuable enough to make such transactions. the only way they can control the inflation is to have a strong economy and raise interest rates to offset the negative effects of importing so much for the rebuilding of iraq...

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"According to the data of the Central Bank of Iraq is currently trading about 29 trillion Iraqi dinars through five trillions of paper money..."

Read more:

This is the first official announcement I've seen that quantifies how much paper there actually is in circulation, and it appears to be a LOT less than many of us thought. Good news, IMO.

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