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Inflation under control

VIZIOIRAQI

By VIZIOIRAQI,
in Iraq & Dinar Related News

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VIZIOIRAQI Newbie

VIZIOIRAQI

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Deputy Central Bank Governor: Inflation under control, did not reach to the level of risk

Baghdad (news) .. Deputy Governor of the Central Bank of the appearance of Mohammed Saleh, that monetary policy is able to reduce the rate of inflation in Iraq through to take the necessary measures to reduce it, indicating that inflation is now under control by the central bank was not up to the level of risk.

Saleh said in a statement to the Agency (news) on Tuesday: that the monetary policy of the Central Bank is able to take the necessary steps and actions necessary to curb inflation happening in Iraq, through the control of the proportion of cash as much as possible and to influence the external value of money, in addition to the use of certain policies or exchange rate as a policy interest rate to be reduced.

Salih stressed that inflation is under control, unlike the conversations the amounts that reached the extent of risk, and continued: it becomes more serious when the rate of up to two places decimal places and now is the rank of one decimal.

The Deputy Governor of Central Bank: In the past, the inflation rate not exceeding (3%) and now (4%) due to the world's expectations of inflation, which led to increased wages for real estate and food and so on, making the inflation build themselves and moving upward, calling for monetary policy to take the necessary tools and procedures necessary to halt the inflationary expectations and reduce the constant increase it

http://translate.google.com/translate?hl=en&sl=auto&tl=en&u=http%3A%2F%2Fwww.ikhnews.com

Economic: the high inflation is unlikely because of the dominance of the Central Bank

Baghdad / Iraq's future

The expert in economic affairs Dargham Muhammad Ali, that the volume of currency in circulation in the local market is (4) trillion dinars is controlled by a central bank and this prevents the inflation for next year, noting that most of the ministries of the State does not need to degrees of functional and she is suffering sagging functional, which will negatively impact on the investment budget and fully reflected in the Iraqi economy.

The Muhammad Ali in a press statement yesterday, "The issue of inflation is unlikely in the coming months due to the control of the central bank currency in the domestic market, which amounted to (4) trillion dinars and through his control also on the exchange rate, which is the scale determines the price of goods imported from abroad and mass cash in the marketplace. "He pointed out that" the central bank works to absorb the Iraqi dinar by offering more of the dollar and by using tools the interest rate that can control this issue, which will make the Iraqi citizen saves his money instead of spending and this works to withdraw currency from market

http://translate.google.com/translate?hl=en&rurl=translate.google.com&sl=ar&tl=en&u=http://www.almustakbalpaper.net/ArticleShow.aspx%3FID%3D11151

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easyrider Newbie

easyrider

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Posted (edited)

there auctions have dried up the circ to 4 trillion, that is very very big news if true, they are very ready-prepared to revalue.

true sonny 1 if this is indeed true this indicates they can pull the trigger and did what the IMF and world bank wanted them to do.

Edited by easyrider
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lakeliving Newbie

lakeliving

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So much for the myth that the US Treasury holds 4 + Trillion in dinar.

The article says, "The issue of inflation is unlikely in the coming months due to the control of the central bank currency in the domestic market, which amounted to (4) trillion dinars and through his control also on the exchange rate, which is the scale determines the price of goods imported from abroad and mass cash in the marketplace.

I read this as "what the Iraqis actually hold in there pocket" not what's in circulation throughout the world.

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mrref Newbie

mrref

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So much for the myth that the US Treasury holds 4 + Trillion in dinar.

You are right I've been saying for years that UST has no dinars that it was just a myth, no one could ever prove that the UST has dinars, someone started that rumor a long time ago...

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lakeliving Newbie

lakeliving

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Why would iraq RV if they hold about 15% of the dinar in country. They are just so kind they want to make every other person that hold dinar rich. Come on. I always believed in this investment but now most with a half a mind would say its never going to make anyone rich.

It doesn't say what the Iraqi government is holding. It simply says, "in the domestic market". I wish there were only 4 trillion in circulation...that would be fantastic but I don't think that is the case.

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WallyWeaver Newbie

WallyWeaver

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"The issue of inflation is unlikely in the coming months due to the control of the central bank currency in the domestic market, which amounted to (4) trillion dinars

I read this as "what the Iraqis actually hold in there pocket" not what's in circulation throughout the world.

It sure reads that way doesn't it? I want to be excited about this but that little phrase "domestic market" is keeping me grounded.

I will say, however, it is at least some good news that they seem to be aggressivey buying up IQD and removing it from circulation. It's not clear to me what they do with it once it's out of circulation, though.

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keepmwlknfny Newbie

keepmwlknfny

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so have they changed monetary policy?

the only way to stop the inflation train, would be change monetary policy, if so this would be good...

I actually peed myself a little reading them say they only have 4 trillion in the marketplace..... laugh.gif

I really hope that wasent a typo....I dont wanna get my hopes up.....

Its really stumped the livin s#$t out of me.....

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lakeliving Newbie

lakeliving

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It sure reads that way doesn't it? I want to be excited about this but that little phrase "domestic market" is keeping me grounded.

I will say, however, it is at least some good news that they seem to be aggressivey buying up IQD and removing it from circulation. It's not clear to me what they do with it once it's out of circulation, though.

It would be interesting to know! If they are truly taking it out of circulation, I would think they would hold on to it until a RV then possibly destroy it or convert it to electronic dinar. (or vice versa)

I was looking for an old article about cost of living raises but couldn't find it. I did find another one though. It gives me the indication that there are LOTS of dinar out there based on 2012 numbers!

9.10.2011 | (Voice of Iraq) - Baghdad / center breaking news / follow-up revealed the deputy governor of the Central Bank of the appearance of Mohammed Saleh that two thirds of the increase is expected to occur on the budget next year, will be allocated to increase the salaries of employees, retirees and increase the number of grades. Saleh said in a newspaper interview that the ceiling amount of the budget year 2012 of about 130 trillion dinars, subject to increase or decrease according to the decisions of the Council of Ministers and the Council of Representatives, noting that there is an increase estimated at 30 trillion dinars for the budget year, which reached 97 trillion dinars, indicating that two-thirds of this increase will be to support the grades and better salaries as well as increasing the salaries of retirees. and said Saleh said that Iraq had signed a loan agreement backing with the International Monetary Fund during the month of February of the year 2010 include the provision of support to him to raise the balance of payments and improve its economic situation and reform its financial system, pointing out that the fund provided in the light of the present Convention a soft loan to Iraq, worth close to seven billion dollars in an interest rate not to exceed one percent to pay within five years.

Edited by lakeliving
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uncirculd Newbie

uncirculd

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It doesn't say what the Iraqi government is holding. It simply says, "in the domestic market". I wish there were only 4 trillion in circulation...that would be fantastic but I don't think that is the case.

Yes I agree. They said 4 trillion in the "local" market. And they are using the dollar. This is the opposite of what they wanted. They want them to use the dinar.

So, it says that they are trying to calm any confusion by having them use the dollar when they rv 1 to 1. Just my humble opinion after reading all the articles yesterday.

So how long has this been going on? Times up, PUSH THE BUTTON SHABBS.

The last line on the 2nd article:

"which will make the Iraqi citizen saves his money instead of spending and this works to withdraw currency from market"

I don't see how pulling in the dinar helps inflation, as much as it helps losses on and RV. :)

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Doctor Smith Newbie

Doctor Smith

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"He pointed out that" the central bank works to absorb the Iraqi dinar by offering more of the dollar and by using tools the interest rate that can control this issue, which will make the Iraqi citizen saves his money instead of spending and this works to withdraw currency from market

Read more: http://dinarvets.com/forums/index.php?/topic/87243-inflation-under-control/#ixzz1aWL1mZXq

Using the Dollar would be one of the few choices in order to reduce the amount of Dinar inside Iraq.

And for what reason would they want to reduce the Dinar in Iraq? :P

I'm just wondering how much is outside of Iraq. Even if you sell your Dinar it just ends up in the hands of yet another speculator. Never returning to the CBI.

The last line on the 2nd article:

"which will make the Iraqi citizen saves his money instead of spending and this works to withdraw currency from market"

I don't see how pulling in the dinar helps inflation, as much as it helps losses on and RV. :)

Read more: http://dinarvets.com/forums/index.php?/topic/87243-inflation-under-control/page__st__20#ixzz1aWNrJpMM

I think they mean that the interest rates in the Banks will encourage Iraqis to save money instead of using it as quickly as possible.

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Dinarabot Newbie

Dinarabot

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laugh.giflaugh.gif If this stands true then I am more inclined to be excited yes.....

Gave you a plus.....welcome back!!!! An rv would do wonders for you and your unborn(congrats btw)!!!! I have four kids (3 boys and my youngest is my precious daughter) and would love to send them to private schools....Go Dinar!!!!

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Mak63 Newbie

Mak63

Posted
Posted

I actually peed myself a little reading them say they only have 4 trillion in the marketplace..... laugh.gif

I really hope that wasent a typo....I dont wanna get my hopes up.....

Its really stumped the livin s#$t out of me.....

Hey dude, why has that stumped you?

Also, what's the consencise on how the 25K notes will be handled? Will they allow 1:1 with the smaller notes? Will they give a period to redeem all the 25k notes?

Thanks

Mak63

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Darin Newbie

Darin

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I actually peed myself a little reading them say they only have 4 trillion in the marketplace..... laugh.gif

I really hope that wasent a typo....I dont wanna get my hopes up.....

Its really stumped the livin s#$t out of me.....

Dude... This has been a theory of mine for quite some time. They surely can't be speaking of the amount of bills in circulation, they're talking overall value.

Because if there was 4 trillion individual notes, that is a LOT of notes.

I'll break my theory down.

They initially printed & released 6.38 Trillion. 2 trillion was allocated to reserves.

They're money supply has been growing by about 3 trillion per year (Exception: 2008, they increased by 6 trillion & they also adjusted the rate a lot).

What I think has been going on.. They're simply going off of how much has been printed & issued... They're not subtracting what they are pulling in. The CBI likely knows that figure, but they don't let the books show it. So, when an old raddy note comes in, they release a new one... The new one adds to the money supply, but removing the old crappy faded raddy note, they do not subtract it out from their figures. They may simply put it into a vault, storage, or what have you.

This means, it is still on the books as a liability, but, not really a threat as they could easily just destroy the bill if need be.

So, by doing this, they've maintained a low amount of circulation (money supply)

They've grown their foreign net cash reserves.

They've maintained a low rate of inflation.

They've maintained a stable exchange rate.

Imagine, just by doing the numbers, following their current money supply..

If they Have $50-60 Billion in their foreign cash reserves of liquid assets to only back 4 trillion?

They could basically safely R/V @ a penny. $0.01

Make some monetary policy adjustments, and maybe increase it to a dime.

Nowhere near the $1 - mark we all hope, but, sort of backs AM's theory.

Which means all they really would need to do is release some lower denoms notes.

Maybe a 25 note to be a quarter. A 5 note to be a nickel. And even a 1 note to be a penny.

Japan, obviously has a higher GDP, but, they're also a reserve currency and their M figures are much higher than Iraqs. They're basically a penny to the dollar ($.01)

Canada, which is a closer model of comparison. Pumps 2.8 Million Barrels or so, and they don't rely on their crude exports. They're close to a $ & they're also a reserve currency.

Keep in mind, Canada has a closer population, but a GDP in the trillions (1.5 I think).

I bet... If they were to R/V @ 0.01, many would cash out... Your $1200 investment is now $10k. Not to shabby, and greed may lead you to take that & run.

But it won't cause a run on the banks of cash-outs... Rise the rate over time from their, and people will gradually cash out.

No immediate hit on their foreign cash reserves, and others will buy in. A lower rate to ride up..

To put all notes into comparison

25,000 = $250

10,000 = $100

5,000 = $50

1,000 = $10

500 = $5

250 = 2.50

50 = $0.5

They would likely need a 100 note to make up for a $1

25 note for a quarter

5 note for a nickel

and a 1 note for a penny

But they would also likely want to remove the 25,000 note.

Now they have a 10,000 note worth $100 for larger purchases.

The PP of the ID has gone up, so, it will many citizens will use the ID that they have. (It now buys more)

Dollarization may be reduced.. I don't buy the 1:1 theory just because of the #s on a note. If you hold two currencies & suddenly one buys 10+ times more than what it used to, you'll use it..

If the 1:1 theory even holds much ground... They may decide to do a R/V to $0.01 and remove 2 zeros and effecitvely introduce a new currency where the ID is 1:1.

Which wouldn't be a bad scenario, just that if they have a shortened period of time to cash-in or exchange, you may have to look into exchanging for the new currency if you wish to ride the value up.

Hopefully that would work... Otherwise, we have to take what we can & run with it.

But other options may be easier, such as currency brokers or warka accounts. (Why not collect their interest, if possible, right? Or play the ISX as that will ultimately grow)

So you 10 times your $ - play the ISX and maybe get lucky an 10 times it again.

Okay, I'm done babbling :)

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