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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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    Advisor Al-Kazemi .. Floating the currency leads to the collapse of the market and warned against it

    Rocky
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    Advisor Al-Kazemi .. Floating the currency leads to the collapse of the market and warned against it Empty Advisor Al-Kazemi .. Floating the currency leads to the collapse of the market and warned against it

    Post by Rocky Mon 19 Apr 2021, 5:57 pm

    [size=32]Advisor Al-Kazemi .. Floating the currency leads to the collapse of the market and warned against its implementation[/size]
    [You must be registered and logged in to see this link.] Monday April 19, 2021 at 14:28 pm (194 views)
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    Sky Press /

    The Prime Minister’s Adviser for Financial and Economic Affairs, Muhammad Mazhar Saleh, confirmed today, Monday, that it is not permissible to float the currency in Iraq, indicating that this leads to the collapse of the market.

     

    Saleh said that "it is not permissible to float the currency in Iraq because the market will collapse in this case," indicating that "the entry and exit of hard currency does not enter the market, which is only an exit for it, but the government is the one that brings this hard currency."

     

    Saleh added, "If the government withdraws its hand, the supply will stop and the demand increases and thus the market will collapse," stressing that "the float takes place in economies in which supply and demand comes from the market and that the state enters to buy and sell to create a balance in the price with its reserves."

     

    He pointed out that "the problem in Iraq is that the market is demanding and that the state is offering, and in the event that the Central Bank does not sell the dollar, it means that all the supply has stopped and there is no other offer, and if there is another offer, it is a little offer that is not enough to meet the demand and therefore the prices will rise Because demand will be more than supply. "

     

    He stressed that "the state is the bidder in Iraq, and therefore if the state tends to float, then this means that there is no supply and thus prices collapse."

     

    Floating currency is completely liberalizing the exchange rate, so the government or the central bank does not interfere in determining it directly, but rather it is secreted automatically in the currency market through the supply and demand mechanism that allows setting the national currency exchange rate against foreign currencies.

     

    It is noteworthy that some officials talk from time to time on the need to float and liberalize the currency to preserve the hard currency reserves at the Central Bank.




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