Raising the Iraqi dinar to the forefront again.
Version:-International paper Monday, February 20, 2017 (00:0-GMT)
Some Iraqi Government economists raising the dinar against the dollar until rising purchasing power and increasing confidence as a rule Iraq, as demanded by the need to stop «dollarization» economy by preventing deal internally and make local transactions are limited to use of the Iraqi dinar only.
It must be noted that 70 percent of currency in circulation was covered in gold and foreign currencies until 1981, the remaining Iraqi Government bonds (currency code), and then Iraq was leftover gold base system.
In order to maintain the cover, successive Governments have been linking financial policy, especially current and investment expenditure, the balance of payments situation, and the latter was determined by the Government's revenue from oil exports.
And to make this link administrative restrictions applied to both external conversion, trade in goods and services and the movement of capital.
Thus followed the conservative monetary and fiscal policies that kept the stability of the Iraqi dinar is installed by the Central Bank at 3.2 dollars to the dinar.
I shall abide by the lid easily dinar monetary authority in the exercise of their duties where he fomented maintain a stable currency, but it achieved at the expense of economic development that is not spending enough fear that increased spending on the stability of the currency.
But during the Iran-Iraq war, which caused huge Iraq reserves faded of foreign currency, the Government abandoned the currency Act and Ina started spending on war without quantitative restrictions, what caused a continuous decline in the exchange rate of the dinar against the dollar and other major currencies, because of the increasing gap between the supply and demand of Iraqi currency.
And increased economic embargo imposed on Iraq in 1991 it worse. Despite the Government's adherence to the official exchange rate (3.2 dollars) for official transactions, resulted from continued growing imbalance between volume of currency in circulation and demand another rate for the dinar is parallel or black market, market price, sometimes to 4000 dinars to the dollar.
After the occupation of Iraq in 2003 and the lifting of the ban on oil exports and reserves of foreign currency deposits abroad and the Central Bank to regulate the daily auctions to sell the dollar, which means withdrawing local currency Iraqi dinar, began to rise gradually until reaching 1200 dinars to the dollar, and stayed on that rate.
And lose the Iraq-Iran war and economic embargo then many Iraqi dinar as a store of value and as a means of circulation, causing most transactions inside especially internal trade in goods and services, to the dollar, it was «dollarization» Iraqi economy.
From this background about how to change the dinar over the past 36 years, and how it was «dollarization» economy, it is time to discuss what some economists ask now when claiming lift dinar and stopping «dollarization».
For more than four years, officials in Iraq talking about monetary reform project from which to raise the Iraqi currency exchange rate against the dollar so that the new dinar equal to 1.2 dinars to the dollar instead of 1200.
But the move was postponed to a later date because some Iraqi areas Government control after the occupation «ISIS». Then she began military operations to recover these areas that still lingers.
The Government is expected to return to the project after the end of military operations.
If the monetary reform is successful, there is no longer need to use the dollar in domestic transactions.
The latter happened after he became a tough daily transactions with the arrival of thousands of dinars per dollar, making individuals resort to deal in dollars instead of dinar, especially in large transactions in hoarding currency.
So you cannot cancel «dollarization» Iraqi economy by administrative decision or by administrative orders of the Monetary Authority but gradually phenomenon disappear with the disappearance of the reasons for it, after it is monetary reform referred to above, that the dinar will then by trading easy and valuable storage eliminates the use of the dollar.
But the monetary reform as stated above does not mean new official exchange rate of the dinar against the dollar.
If the shadow exchange rate floating as it is currently, it may rise or fall according to the relationship between supply and demand for dinars, higher offer for stability or dinar decreased demand, exchange rate declines in the dollar.
And if the opposite view dinar for settlement or high demand.
The Monetary Authority may to install new exchange rate with the dollar or a basket of currencies.
But in any case it is not advised to adopt a high exchange rate, it does not give effect to the economy or raise the value of national sovereignty as some believe, but negative effects on the economy.
The former Iraqi dinar ($ 3.2) was exaggerated and will continue to be exaggerated if you return in the future. It will make imports cheaper but hinders the improvement of production and export capacity of Iraq, the price may be 1.2 dinars to the dollar or dinar against the dollar is the right price.
But the Government fiscal and monetary policies to help maintain it.
It can be said that the invitations that we hear today by raising the dinar and cancel «dollarization» economics are not right for first or cannot meet before the monetary reform for second.
[You must be registered and logged in to see this link.]
Version:-International paper Monday, February 20, 2017 (00:0-GMT)
Some Iraqi Government economists raising the dinar against the dollar until rising purchasing power and increasing confidence as a rule Iraq, as demanded by the need to stop «dollarization» economy by preventing deal internally and make local transactions are limited to use of the Iraqi dinar only.
It must be noted that 70 percent of currency in circulation was covered in gold and foreign currencies until 1981, the remaining Iraqi Government bonds (currency code), and then Iraq was leftover gold base system.
In order to maintain the cover, successive Governments have been linking financial policy, especially current and investment expenditure, the balance of payments situation, and the latter was determined by the Government's revenue from oil exports.
And to make this link administrative restrictions applied to both external conversion, trade in goods and services and the movement of capital.
Thus followed the conservative monetary and fiscal policies that kept the stability of the Iraqi dinar is installed by the Central Bank at 3.2 dollars to the dinar.
I shall abide by the lid easily dinar monetary authority in the exercise of their duties where he fomented maintain a stable currency, but it achieved at the expense of economic development that is not spending enough fear that increased spending on the stability of the currency.
But during the Iran-Iraq war, which caused huge Iraq reserves faded of foreign currency, the Government abandoned the currency Act and Ina started spending on war without quantitative restrictions, what caused a continuous decline in the exchange rate of the dinar against the dollar and other major currencies, because of the increasing gap between the supply and demand of Iraqi currency.
And increased economic embargo imposed on Iraq in 1991 it worse. Despite the Government's adherence to the official exchange rate (3.2 dollars) for official transactions, resulted from continued growing imbalance between volume of currency in circulation and demand another rate for the dinar is parallel or black market, market price, sometimes to 4000 dinars to the dollar.
After the occupation of Iraq in 2003 and the lifting of the ban on oil exports and reserves of foreign currency deposits abroad and the Central Bank to regulate the daily auctions to sell the dollar, which means withdrawing local currency Iraqi dinar, began to rise gradually until reaching 1200 dinars to the dollar, and stayed on that rate.
And lose the Iraq-Iran war and economic embargo then many Iraqi dinar as a store of value and as a means of circulation, causing most transactions inside especially internal trade in goods and services, to the dollar, it was «dollarization» Iraqi economy.
From this background about how to change the dinar over the past 36 years, and how it was «dollarization» economy, it is time to discuss what some economists ask now when claiming lift dinar and stopping «dollarization».
For more than four years, officials in Iraq talking about monetary reform project from which to raise the Iraqi currency exchange rate against the dollar so that the new dinar equal to 1.2 dinars to the dollar instead of 1200.
But the move was postponed to a later date because some Iraqi areas Government control after the occupation «ISIS». Then she began military operations to recover these areas that still lingers.
The Government is expected to return to the project after the end of military operations.
If the monetary reform is successful, there is no longer need to use the dollar in domestic transactions.
The latter happened after he became a tough daily transactions with the arrival of thousands of dinars per dollar, making individuals resort to deal in dollars instead of dinar, especially in large transactions in hoarding currency.
So you cannot cancel «dollarization» Iraqi economy by administrative decision or by administrative orders of the Monetary Authority but gradually phenomenon disappear with the disappearance of the reasons for it, after it is monetary reform referred to above, that the dinar will then by trading easy and valuable storage eliminates the use of the dollar.
But the monetary reform as stated above does not mean new official exchange rate of the dinar against the dollar.
If the shadow exchange rate floating as it is currently, it may rise or fall according to the relationship between supply and demand for dinars, higher offer for stability or dinar decreased demand, exchange rate declines in the dollar.
And if the opposite view dinar for settlement or high demand.
The Monetary Authority may to install new exchange rate with the dollar or a basket of currencies.
But in any case it is not advised to adopt a high exchange rate, it does not give effect to the economy or raise the value of national sovereignty as some believe, but negative effects on the economy.
The former Iraqi dinar ($ 3.2) was exaggerated and will continue to be exaggerated if you return in the future. It will make imports cheaper but hinders the improvement of production and export capacity of Iraq, the price may be 1.2 dinars to the dollar or dinar against the dollar is the right price.
But the Government fiscal and monetary policies to help maintain it.
It can be said that the invitations that we hear today by raising the dinar and cancel «dollarization» economics are not right for first or cannot meet before the monetary reform for second.
[You must be registered and logged in to see this link.]
Today at 6:16 am by Rocky
» Al-Badran: The reason for postponing the Basra Council session is to give members sufficient time to
Today at 6:14 am by Rocky
» The Contractors Registration and Classification Committee at the Ministry of Planning completed more
Today at 6:13 am by Rocky
» Parliamentary Foreign Affairs: We discussed these files with the Romanian Senate
Today at 6:12 am by Rocky
» Baghdad Investment Authority to / Nina /: We will adopt future programming to implement projects and
Today at 6:10 am by Rocky
» Their arms are "electronic flies"... Personalities who lost their positions seek to stir up strife b
Today at 6:08 am by Rocky
» Decrease in dollar exchange rates in morning trading in Baghdad markets
Today at 6:06 am by Rocky
» An international organization: Plans to enhance the livelihood of affected displaced and returning f
Today at 6:04 am by Rocky
» Dozens of factories are halted... Industry: We went into partnership with the private sector to rest
Today at 6:03 am by Rocky
» The Iraqi Communist criticizes the decision to abolish the Kurdistan Parliament quota: positive disc
Today at 6:01 am by Rocky
» Al-Sudani confirms Iraq's aspiration for the participation of Azerbaijani companies in construction
Today at 6:00 am by Rocky
» An initiative by the President of the Republic to solve the problem of the region’s salaries
Today at 5:59 am by Rocky
» The Kurdistan government complains about Baghdad’s finances: It is ready to pay 59% of the salaries
Today at 5:58 am by Rocky
» Al-Khanjar: The Democratic boycott of the elections puts the future of Iraq in danger
Today at 5:55 am by Rocky
» Iraq is ranked seventh in the Arab world and 33rd globally in the misery index
Today at 5:54 am by Rocky
» Trade announces the achievement of self-sufficiency in ration card materials
Today at 5:52 am by Rocky
» Finance releases funding for state employees’ salaries for the month of March
Today at 5:51 am by Rocky
» Elon Musk: 20 seats won by Biden and his party with the votes of “illegal immigrants”
Today at 5:50 am by Rocky
» A "paradigm shift" awaits the regions of the belt and outskirts of Baghdad
Today at 5:47 am by Rocky
» “Speicher and Malwiya Fund”..Parliamentary Finance talks about “illegal fees” in state departments
Today at 5:46 am by Rocky
» Government admission of the failure of the meter campaign: Generators’ compliance is “almost non-exi
Today at 5:44 am by Rocky
» Iraq is proceeding with the zero nuclear reactor project.. Find out its details
Today at 5:42 am by Rocky
» The decision to “reduce exports”... “unplanned” production for Kurdistan will cost Baghdad half a bi
Today at 5:41 am by Rocky
» The powers of Kurdistan.. The Federal Court confirms its commitment to what was agreed upon by the “
Today at 5:39 am by Rocky
» Launching funding for state employees’ salaries for the month of March
Today at 5:38 am by Rocky
» Iraq and Syria top the "least safe" Arab countries
Yesterday at 8:23 am by Rocky
» Governor of Baghdad: 20 projects will be included during the current year in the city of Nahrawan
Yesterday at 8:20 am by Rocky
» More than $242 million in central bank sales today
Yesterday at 8:17 am by Rocky
» Advisor: Sudanese is determined to close the displacement file
Yesterday at 8:14 am by Rocky
» Al-Sudani: The implementation of the 2023 budget witnessed a success that must be invested in
Yesterday at 8:13 am by Rocky
» The Baghdad Council will decide on the nomination of the committees in the coming days
Yesterday at 8:10 am by Rocky
» Al-Samarrai: The Sunni community is not in favor of removing American forces
Yesterday at 8:08 am by Rocky
» A warning from Al-Rasheed to those wishing to apply for advances and loans
Yesterday at 8:06 am by Rocky
» Azerbaijan expresses its desire to participate in the implementation of joint projects in the oil an
Yesterday at 8:05 am by Rocky
» Fuel cards arouse citizens' discontent
Yesterday at 8:03 am by Rocky
» utube 3/18/24 MM&C Iraqi Dinar-- IQD-- Dinar Update -100% Electronic - Real Effective Exchange Rat
Yesterday at 6:21 am by Rocky
» utube MM&C 3/16/24 0:05 / 18:16 Iraq Federal Court Brings - Strength to Financial - Politic
Yesterday at 6:18 am by Rocky
» MM&C 3/18/24 Sudanese Advisor: Iraq will leave government monetary dealing in mid-2024
Yesterday at 6:17 am by Rocky
» A delegation from the Kurdistan government visits Baghdad to discuss the issue of localization of sa
Yesterday at 6:11 am by Rocky
» Director of the Central Oil Company: We are keen to provide the appropriate investment environment
Yesterday at 6:10 am by Rocky
» The Energy Parliament calls for reporting generators violating government pricing
Yesterday at 6:08 am by Rocky
» A representative reveals the fate of the laws of “previous sessions”
Yesterday at 6:07 am by Rocky
» Politician: Coordination holds the keys to resolving the “Parliament Presidency” conflict
Yesterday at 6:05 am by Rocky
» Al-Sudani: Iraq wants to carry out its peaceful activity in the field of atomic energy
Yesterday at 6:04 am by Rocky
» Including a minister and a parliamentarian... 38 arrest and recruitment orders were issued against t
Yesterday at 6:02 am by Rocky
» Integrity: Citizens’ cooperation resulted in detecting inflation and returning state funds
Yesterday at 6:01 am by Rocky
» Agriculture presents 97 projects to the Ministerial Council for the Economy
Yesterday at 5:59 am by Rocky
» Al-Sudani: We succeeded in implementing the 2023 budget, and we must continue to complete economic p
Yesterday at 5:58 am by Rocky
» Labor adopts new mechanisms to reduce the phenomenon of begging
Yesterday at 5:57 am by Rocky
» Electronically.. directing the collection of fees tomorrow in an Iraqi governorate
Yesterday at 5:56 am by Rocky
» Held in Brussels.. Iraq receives an official invitation to attend the Nuclear Energy Summit
Yesterday at 5:55 am by Rocky
» Kurdistan has been paralyzed. There has been no liquidity in hand for 50 days, and the truth has bee
Yesterday at 5:53 am by Rocky
» The dollar continues to decline against the Iraqi dinar on the stock exchange and exchange offices
Yesterday at 5:52 am by Rocky
» The Minister of Oil reveals the reasons for Shell’s withdrawal from Nebras: It will be divided into
Yesterday at 5:51 am by Rocky
» The Housing Fund advises loan applicants and launches a link for inquiries
Yesterday at 5:50 am by Rocky
» He stressed that the government’s vision is to make one class not exceed 25 students...Government me
Yesterday at 5:48 am by Rocky
» Al-Hakim and Al-Halbousi stress the importance of choosing a speaker for Parliament in accordance wi
Yesterday at 5:47 am by Rocky
» Iron and Steel Company: Iraq is on the verge of a major industrial revolution
Yesterday at 5:46 am by Rocky
» Economists: Citizens still prefer cash transactions over electronic transactions
Yesterday at 5:45 am by Rocky
» The compass of Iraq's foreign policy in a world of turbulent polarization
Yesterday at 5:43 am by Rocky
» Parliamentary Finance: The federal budget is in the corridors of the Council of Ministers, and there
Yesterday at 5:42 am by Rocky
» Integrity calls on citizens to report the inflation of funds in the sector of the Ministry of Labor
Yesterday at 5:40 am by Rocky
» Al-Sudani directs the launch of initiatives for young businessmen and investors
Yesterday at 5:38 am by Rocky
» Representative agriculture emphasizes taking supportive measures for the local product
Yesterday at 5:37 am by Rocky
» An economist calls on the government to support and stimulate the private sector
Yesterday at 5:36 am by Rocky
» Al-Ittihad: Employees and retirees in Kurdistan paid the price of political differences with Baghdad
Yesterday at 5:34 am by Rocky
» Al-Samarrai and Al-Hakim discuss the importance of achieving political and constitutional entitlemen
Yesterday at 5:32 am by Rocky
» Only 23 million dunums. Iraq exploits approximately 50% of its arable land
Yesterday at 5:30 am by Rocky
» Türkiye considers it a political issue.. Where have the negotiations reached regarding Iraq’s water
Yesterday at 5:29 am by Rocky
» Sudanese receives an invitation to attend the Nuclear Energy Summit in Brussels - Urgent
Yesterday at 5:27 am by Rocky
» Central Bank sales exceed $240 million today
Sun Mar 17, 2024 7:52 am by Rocky
» Parliamentary Finance calls on the government to expedite sending the 2024 budget to Parliament
Sun Mar 17, 2024 7:47 am by Rocky
» ‘We’re So Sick of It’: Northern Border Crisis Gets Worse
Sun Mar 17, 2024 7:35 am by Bama Diva
» A representative holds Kurdistan responsible for the faltering legislation of the oil and gas law
Sun Mar 17, 2024 6:27 am by Rocky
» Warnings of the danger of the increase in foreign labor in Iraq
Sun Mar 17, 2024 6:26 am by Rocky
» Iraq's oil exports to America decreased within a week
Sun Mar 17, 2024 6:25 am by Rocky
» Al-Sudani chairs an “important” meeting to form the Kirkuk government
Sun Mar 17, 2024 6:23 am by Rocky
» Investment confirms the adoption of a new method in new residential cities and explains its details
Sun Mar 17, 2024 6:21 am by Rocky
» For the first time in 2024.. exchange rates fall to the threshold of 149 thousand in Baghdad
Sun Mar 17, 2024 6:19 am by Rocky
» Including gold.. An increase in exports of 3 Turkish products to Iraq during 2024
Sun Mar 17, 2024 6:18 am by Rocky
» A detailed integrity report regarding the Housing Fund... called for this matter
Sun Mar 17, 2024 6:17 am by Rocky
» Resources count the number of trespassers in Baghdad.. What about restaurants?
Sun Mar 17, 2024 6:16 am by Rocky
» At a cost of approximately two billion dinars... determining the completion rates achieved in the Ma
Sun Mar 17, 2024 6:15 am by Rocky
» Parliament awaits the “Cabinet of Ministers” law
Sun Mar 17, 2024 6:14 am by Rocky
» Provincial councils return after an absence with a heavy legacy
Sun Mar 17, 2024 6:13 am by Rocky
» Iraq is the axis and meeting point of East and West
Sun Mar 17, 2024 6:11 am by Rocky
» One million beneficiaries of health insurance early next May
Sun Mar 17, 2024 6:10 am by Rocky
» Parliamentary Finance: Delaying the budget had a negative impact on the performance of the ministrie
Sun Mar 17, 2024 6:09 am by Rocky
» The chaos of urban expansion threatens the agricultural character of Diwaniyah
Sun Mar 17, 2024 6:08 am by Rocky
» A project to plant Japanese trees in Erbil
Sun Mar 17, 2024 6:07 am by Rocky
» A team to prepare the national strategy for national security in Kirkuk
Sun Mar 17, 2024 6:06 am by Rocky
» Next Tuesday...concluding a contract to expand the basic design of the city of Mosul
Sun Mar 17, 2024 6:04 am by Rocky
» A festival to reduce food prices in Mosul
Sun Mar 17, 2024 6:03 am by Rocky
» Technical committees between Baghdad and Erbil to resume oil exports through Türkiye
Sun Mar 17, 2024 6:02 am by Rocky
» A model of economic diversification
Sun Mar 17, 2024 6:01 am by Rocky
» Variation in the extent to which Iraq was affected by the decision to reduce the credit rating of {T
Sun Mar 17, 2024 6:00 am by Rocky
» Al-Sudani: Iraq has made a commitment to receive the entire security file from the Ministry of Inter
Sun Mar 17, 2024 5:58 am by Rocky
» The President of the Republic stresses the important role of Mr. Abdul Aziz Al-Hakim in the first st
Sun Mar 17, 2024 5:56 am by Rocky
» The Iraqi Center for Combating Rumors warns against social media celebrities misleading their follow
Sun Mar 17, 2024 5:54 am by Rocky