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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

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    The use of gold in central bank

    Rocky
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    The use of gold in central bank Empty The use of gold in central bank

    Post by Rocky Sat 22 Feb 2014, 6:02 am

    The use of gold in central bank






    2/22/2014 0:00

    D. Falah Hassan Thuwaini
    due historians and economists history of the discovery of gold as a metal to 4000 years BC or more, to the year 2000 BC as the date to use the cash for gold, as has been noted in the Code of Hammurabi (1792-1750 BC) in several articles, including Article 112 to use Gold which states that reads ((If a man linked to a commercial flight and gave the silver or gold or precious stones ... and deposited transported If this guy did not deliver what shall then be transferred ... to the man to pay for the owner of the funds to be transferred five times as much as him him)). And that the first gold coin was minted due to the year 700 BC. In 1816 England was one of the first countries that have adopted the use of the base of gold coins as a basis for monetary system based where then until World War II, as the countries that have followed this mechanism then to stop striking gold coins and withdrawn from circulation and converted into the coffers of the central banks in order to assigning and supporting its reserves, has emerged then another mechanism for the use of gold, a base gold bullion that was used in the second decade of the twentieth century by England, France and America, which were conditions important is the freedom of movement of gold, which provides a free market for gold and also the central banks sell and buy gold in unlimited quantities, in accordance with the price set, followed thereafter adopt a rule transfers the gold and the emergence of the IMF's role in the management of the international monetary system after the year 1944 where it was decided to use gold to pay 25 percent of the membership dues of principle.
    arrived emphasize the importance of gold cash Referring Ricardo (1772 - 1823) one of the pioneers of the theory of traditional monetary that money circulating in the light of the gold standard are affected, including the Central Bank of gold, and confirms that the monetary issuance shall be subject to metal cover 100 percent, and that keeps the central bank with gold equal to the money Exporting to avoid excessive version and also indicates that the factors affecting the balance of gold related to the size of the annual production of gold.
    generally contributed to the use of gold as money and cash reserves to maintain the stability of currency values     ​​at the local level (the stability of the general level of prices) and on the external level (currency exchange rate domestic against foreign currencies) and correct the imbalance in the balance of payments automatically, because each country's currency linked to the weight of a certain gold and then having a steady relationship between the various currencies because the evaluation criterion is consistent and stable, which is gold, but due to the changing conditions of the global economy and the multiplicity of variables political, economic and demographic became amounts of gold available in nature is able to neutralize or dam the amount of the required parameters, so it turned monetary systems global monetary base paper mandatory, but nevertheless remained the gold is a great importance in cash reserves in the monetary systems of many countries in the world even after the announcement of former U.S. President Nixon in 1971 to stop converting the dollar into gold.
    has worked many of the world's central banks are currently on the re-formation of the components of their portfolios of reserves by increasing the relative importance of the origin of the traditional, a gold compared with other foreign currencies convertible to the nature of the gold from the relative stability , at the time when the change in the value of the currency exchange rates is the adjective highlights.
    in Iraq amounted to the monetary value of gold to the Central Bank of Iraq in 1955, the equivalent of 3 million Iraqi dinars constitute a relative importance of 2.4 percent of the total foreign reserves, after the exit from Iraq Sterling area in 1959, this value rose to 30.7 million dinars at a rate of 23.9 percent, and increased to 59.6 million dinars at a rate of 27.6 percent in 1971. At the end of the year 2012 amounted to gold reserves amounted to $ 1860236 million dinars distributed among the treasury CBI 268.638 million dinars, and the Bank of International Settlements by 1591598 million dinars.
    has issued Central Bank of Iraq and as part of the mechanisms of monetary policy, issued a press release in January 2014 in which he announced for his basic gold bullion ranging weights between the weight (5 grams) and kilogram (1000 grams) in order to diversify the means of saving among the public and allow large quantities of pure gold, and reliable sources of traders in gold, investors are selling Iraqi dinars.
    One advantage of adopting this mechanism for the monetary authority is the possibility of the use of these gold bullion reserves guaranteed and limited change in the value of deposits with foreign banks, compared with the changes that occur in the exchange rates of other foreign currencies, as well as being a strong indicator assigns the value of the Iraqi dinar in the international and domestic market and to the possibility of monetizing gold and convert it into monetary units in local currency or other foreign currencies easily, and also could be speculative limited a reason to be a focus on the use of gold bullion with weights bulk of any near 1000 grams for the non-use of speculators and as gold prices are relatively stable, the retail operations alloys or re- Tsenaiha any other use deliver them the cost of which is difficult to speculation in or upon and then be prevention requirements and hedging is an attribute most present any common property saving more than the phenomenon of circulation among the public, and also limited quantities of gold any unavailability of the amount or quantity as is the case with various foreign currency as well as the difficulty of warping, which creates an incentive for workers or investors in gold.
    and required control and supervision by the Central Bank of Iraq and the responsible parties other related to the prospects for the smuggling of gold, which is imported by the central bank and sell it through the banking system to the beneficiaries.
    But remains the central bank and its monetary policy is facing challenges as long as the work without attribution of the real sector, whatever the tools and methods used will remain an urgent need and urgency to the real sector by reducing the cash conversion cycle Leech abroad (import non-product), especially in light of availability of human and material resources in our country . * Faculty of Management and Economics University of Mustansiriya



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