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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


    Does the depreciation of the dollar contribute to stability?

    Rocky
    Rocky
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    Does the depreciation of the dollar contribute to stability? Empty Does the depreciation of the dollar contribute to stability?

    Post by Rocky Tue 07 Feb 2023, 2:23 pm

    Does the depreciation of the dollar contribute to stability?

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    Economy News-Baghdad
    Every game and change in the exchange rate of the currency is necessary to be according to studies familiar with all aspects of the country's commercial, economic and social activity. We see that most of the countries that changed their country's currency, down or up, had reasons to serve their economy or get out of a real crisis.
    As for Iraq, the process of changing the currency was due to the structural imbalance of the Iraqi economy, which was not addressed by successive governments and continued to support oil rents.
    From what was stated in the simple introduction, we present the following question (Does decreasing the price of the dollar to 1300 contribute to achieving stability?) 
    In the midst of the answer, we find that reducing the price of the dollar to 1300 after the crisis that occurred as a result of the rise of the dollar, which reached about 165 on average during the past two months, is a good decision. In the short term, that is, it may remain low for a period of one or two weeks, and then rise in the medium and long term, for the following reasons:
    1- Iraq is an importer of all commodities and merchandise due to the disruption of the production system in meeting local demand, which warns of a problem in paying the import amounts, especially to the penalized countries from the United States.
    2- Most of the small merchants and some importers do not deal with banks as a measure to facilitate their commercial affairs, including transfers and internal transactions, in order to prevent them from paying taxes and other bills, which means that they resort to the parallel market to buy dollars and conduct their trade.
    3- Cash sales in the Iraqi central window remain as they are in terms of amounts that do not exceed 15% of total sales as a maximum.
    4- The survival of many banks in opposition to the Iraqi Central Bank’s procedures in switching to the conditions of the new electronic platform and putting obstacles in front of the big merchants in keeping pace with their trade affairs.
    Therefore, it is necessary that the economic policy (the government and the central bank) address the above points to achieve harmony and consistency between the two prices (official and parallel) in preparation for the involvement of unregulated trade in the official market. Thus (perhaps) it creates an incentive for the banking system to return to its basic and important work, which is investment. In the real sector and the advancement of the private sector.


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    Added 02/07/2023 - 10:14 PM
    Updated 2023/02/07 - 11:22 PM
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