Established in 2006 as a Community of Reality

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Neno's Place Established in 2006 as a Community of Reality


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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


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    Specialists describe the central bank cut the rate of the dinar to the bitter treatment

    Proven
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    • Post n°1

    Specialists describe the central bank cut the rate of the dinar to the bitter treatment Empty Specialists describe the central bank cut the rate of the dinar to the bitter treatment

    Post by Proven Sat 16 May 2015, 8:56 pm

    Specialists describe the central bank cut the rate of the dinar to the bitter treatment

    16/05/2015
    18-2697zaa.jpg


    BAGHDAD / JD / .. A number of experts and specialists in the financial and economic affairs, said the central bank has taken several measures to reduce the federal budget for the 2015 deficit, which exceeded the rate of more than 40%, including reducing the dinar exchange rate against the dollar, noting during their talk Agency / JD / that the reduction rate of the dinar against the dollar is a cure, but over because it will raise the rates of inflation and reduces the strength of the local currency, while the dollar swung the price will stabilize at 1300 dinars in the coming period.

    He says economist Maitham coffee, "The reduction of the Iraqi dinar exchange rate will benefit the budget, because every dollar sells for the central bank at the most expensive of the dollar, which means that before the budget is funded by the difference between the price of two dollars deficit Alambain".

    He told coffee / JD /, that "this policy is used on a global scale, regardless of the level of progress or the availability of resources in the countries, a cure for the problems of the budget deficit and balance of payments deficit at the same time."

    He pointed out that the measure has immediate and future effects, which can lead to higher prices in the domestic market, but this rise could end excitement that it led to a decline in consumption and imports has been stimulated by market forces. "

    "Even on payments features could be improved in the future through lower imports could increase the surplus or at least the surplus," adding that "its direct impact will be to reduce the budget deficit."

    For his part, he criticized the President of the Economic Information Center lion Mohammed Ali, lowering the dinar exchange to reduce the budget deficit rate policy the fact that going to hurt the citizens, adding that "the salaries and revenue people are denominated in dinars and reduce the value of the dinar mean multiples of the ability of citizen's purchasing power, and this will lead to higher inflation rates."

    Mr Mohamed Ali told / JD / "The vision must be based on the experiences and the liberalization of the exchange rate or approaching that in the absence of full need coverage will lead to a steady rise in the local market is very sensitive and subject absolutely inflationary shocks internal and external with the stability of income levels."

    He added that "for the hypothesis and if you do not get cases of economic contraction due to declining employment will lead to a rise in prices of services and goods and the movement of the market indicate that the response to rising prices and its impact on higher consumer price of the real impact of any that the state monopoly still dominate the local market economy." .

    As an economic expert Sumaisem peace, it confirmed that this policy is a cure, but over what is happening from economic fluctuations in the country, noting that the application will reduce the budget deficit, but it will affect the local market in terms of higher prices.

    And witnessing the dollar exchange rate rise against the dinar per dollar, reaching the price of 1300 dinars.
    And suffer the budget in 2015 approved an estimated $ 119 trillion dinars and an oil price of $ 56 a barrel from a large fiscal deficit estimated at more than 40% because of lower oil prices in world markets. / End / 8 /


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    • Post n°2

    Specialists describe the central bank cut the rate of the dinar to the bitter treatment Empty Re: Specialists describe the central bank cut the rate of the dinar to the bitter treatment

    Post by Proven Sat 16 May 2015, 9:33 pm

    Interesting.  What else will inflation do in Iraq?  It will reduce the notes in circulation by increasing the prices of imports.

    reduce the value of the dinar mean multiples of the ability of citizen's purchasing power, and this will lead to higher inflation rates."

    What will increase purchasing power?  The delete the zeros project.


    Last edited by Proven on Sat 16 May 2015, 9:36 pm; edited 1 time in total (Reason for editing : add comment on delete the zeros)
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    • Post n°3

    Specialists describe the central bank cut the rate of the dinar to the bitter treatment Empty Re: Specialists describe the central bank cut the rate of the dinar to the bitter treatment

    Post by wciappetta Sun 17 May 2015, 6:10 am

    It only reduces the notes to the degree that folks move into the banking system and turn to using bankcards. The entire portion of the project at this point has been designed to exactly that. You can lower the physical circulation proportionately to the electronic circulation and that only to the degree of the willingness of the people to trust the banking system.

    In any case though we are arriving at the place where the citizens will have no choice and will need to bring in all their large notes to the banking system where much like us when we cash out, they will get a portion of new lower notes as cash and the rest will be deposited as a credit in their bank accounts. 

    The more people in the banking system now makes that mopping up process at the end easier.
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    • Post n°4

    Specialists describe the central bank cut the rate of the dinar to the bitter treatment Empty Re: Specialists describe the central bank cut the rate of the dinar to the bitter treatment

    Post by Proven Sun 17 May 2015, 9:33 am

    wciappetta wrote:It only reduces the notes to the degree that folks move into the banking system and turn to using bankcards. The entire portion of the project at this point has been designed to exactly that. You can lower the physical circulation proportionately to the electronic circulation and that only to the degree of the willingness of the people to trust the banking system.

    In any case though we are arriving at the place where the citizens will have no choice and will need to bring in all their large notes to the banking system where much like us when we cash out, they will get a portion of new lower notes as cash and the rest will be deposited as a credit in their bank accounts. 

    The more people in the banking system now makes that mopping up process at the end easier.

    There are two forces at play here.  One, by raising the value of the currency, it will increase the money supply and note count, obviously.  The other is inflation which increases the cost of imports, and thus reduces the money supply and note count in exchange for the imported goods.  

    I can see  putting money in the banks and electronic banking reduces the note count. Since most Iraqis' savings is in dollars, it would require citizens to convert their currency and put it in banks they don't trust.  To me, this is not as strong a position.

    It all boils down to how does the delete the zeros project reduces the note count in light of the resultant expansion of the money supply and flooding investor monies.  We know the money supply (and note count) is contracting severely as part of the plan.  To finish the job, I see a stronger position for doing it through increasing volume of imports in exchange for dinars and inflating prices.

    I think Iraqis will not mind the subsequent inflation, because their purchasing power will be greatly enhanced.  By the way, what if it (the delete the zeros project) does not immediately reduce the number of notes in circulation.  The people will not mind, they will be much better off with higher purchasing power, until they spend all their money.  It is a problem that will solve itself as time progresses.  

    This makes the case for monetary reform to coincide with economic reform.  Otherwise, Iraq will be at the same place they started from.   

    By the way, the CBI has various tools to address subsequent inflation, such as raising the value of the currency, interest rates, reserve requirements, open market operations.  A nice problem to have.  

    I have laid out the plan as I see it.  Isn't it beautiful.
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    • Post n°5

    Specialists describe the central bank cut the rate of the dinar to the bitter treatment Empty Re: Specialists describe the central bank cut the rate of the dinar to the bitter treatment

    Post by mbryan Sun 17 May 2015, 10:11 am

    Not technical but until the dinar is worth equal or more than the usd it will not be used as much or saved like the usd will. So until then the usd will remain king currency
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    • Post n°6

    Specialists describe the central bank cut the rate of the dinar to the bitter treatment Empty Re: Specialists describe the central bank cut the rate of the dinar to the bitter treatment

    Post by Proven Sun 17 May 2015, 10:39 am

    Financial representative: Government takes responsibility for raising the dollar because of the imposed fees for merchants

    May 17, 2015 9: 41 am

    The parliamentary Finance Committee, blamed the Government for raising the exchange rate of the dollar against the Iraqi dinar by imposing fees on remittance of traders by 8%, while the dollar would likely stabilize at 1,300 dinars to the dollar.

    Committee member Rep. Jabar Al-Abadi told his disciple Buratha News Agency today that the Central Bank is in charge of monetary policy in the country and no one can interfere with his work, "ruling out" the parliamentary Financial Committee by the high exchange rate of the dollar against the Iraqi dinar ".

    "The Government bears responsibility for lifting the dollar owing to the imposition of fees by 8% to financial transfer to merchants, which was reflected on the exchange rate," likely to "stabilize the dollar at 1,300 dinars, not going back to the price which was 1,200 dinars to the dollar."

    The dollar has risen against the dinar reached 1,300 dinars to the dollar.

    The reports indicated that the Finance Committee had submitted a recommendation to the Central Bank to lift the dollar to reduce the budget deficit.    

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    • Post n°7

    Specialists describe the central bank cut the rate of the dinar to the bitter treatment Empty Re: Specialists describe the central bank cut the rate of the dinar to the bitter treatment

    Post by wciappetta Sun 17 May 2015, 12:18 pm

    Yeah it's alright, the GOI is again trying to bring folks into the banking system. The currency window at the CBI is shut so only electronic remittances are done via the auctions by the secondary banks and the CBI for foreign remittances importing goods etc.

    secondary market dollars are being charged premium prices simply to drive up dollars for exchange however, the citizen doesn't have to give themselves self inflicted financial wounds of 12% by getting dollars to purchase goods. The citizen could bypass the 12% premium by simply opening an account and getting bank cards for purchases and  many are. This  surge in dollar price is the result cutting availability of dollars in the market [certainly engineered by the CBI but it's not a reflection of general inflation, CBI keeps that data and they're not showing an increase.

    The citizen is being forced to purchase in dinar, that's the pain, but they're cluing in on how to avoid it and that is a huge financial raking of physical dinar out of the system. Living paycheck to paycheck I'm doubting the savings accounts in dollar whether accounts or mattress stuffing, some sure, but it's a minuscule portion of the population. Anyway that's my opinion on the situation.


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    • Post n°8

    Specialists describe the central bank cut the rate of the dinar to the bitter treatment Empty Re: Specialists describe the central bank cut the rate of the dinar to the bitter treatment

    Post by Neno Sun 17 May 2015, 4:20 pm

    mbryan wrote:Not technical but until the dinar is worth equal or more than the usd it will not be used as much or saved like the usd will. So until then the usd will remain king currency
    Ok with me, the longer the better.... Gun
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    • Post n°9

    Specialists describe the central bank cut the rate of the dinar to the bitter treatment Empty Re: Specialists describe the central bank cut the rate of the dinar to the bitter treatment

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