Employ monetary policy to develop the production sector

by **Proven** Sun 12 Jul 2015, 6:33 pm

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Post n°1

Employ monetary policy to develop the production sector

by Proven Sun 12 Jul 2015, 6:33 pm

Employ monetary policy to develop the production sector

7/13/2015 0:00

BAGHDAD - morning

confirmed an economist possibility of adaptation of monetary policy towards the enhancement of the real production sector in the country through the mechanisms used by the central bank.

He went economist Karim Mustafa in an interview for the "morning" that any rise in the dollar against the Iraqi dinar will contribute to the increase of import is reflected negatively on the viability of local production to compete in the market warning to the impact of this equation on the orientations of the executive authority in the search for new sources to diversify budget revenues through production.

it endorses Mustafa Madea him some economists in the importance of controlling banking experiencing the presence of hundreds and perhaps thousand banking and remittance market , through reduced and to encourage integration.

and recognized the importance of adding a very important mechanism which is restricting imports through letters of credit as is the case in all parts of the world, and added that he might be worth establishing a private bank for Documentary Credits to the private sector and other regulatory matters for Aitisa field here to address to it by Tobeirh.obescon determine the exchange rate of the dollar and other currencies Mustafa sees that many economists are beginning to call for setting a new rate of the dinar less than the current, Mustafa also demanding to float the exchange rate to be automatically according to the display mechanism and Tlb.obin Mustafa during his speech that the floating dollar exchange rate It will affect the standard of living, but returned and confirmed that the mitigation of this impact will be through several means.

He pointed to the issue of utmost importance regarding the constantly subsidies for fuel, water and electricity and vocabulary ration health sector and others, calling for a review of such sensitive topics and important in processors economic.

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by weslin3 Sun 12 Jul 2015, 10:43 pm

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Re: Employ monetary policy to develop the production sector

by weslin3 Sun 12 Jul 2015, 10:43 pm

Now hearing more of a float.. I use to think a peg to the USD. Which to me would be safer. But what do I know or think? To me a peg would be safer for the IQD?

by **wciappetta** Mon 13 Jul 2015, 7:26 am

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Re: Employ monetary policy to develop the production sector

by wciappetta Mon 13 Jul 2015, 7:26 am

Mustafa sees that many economists are beginning to call for setting a new rate of the dinar less than the current, Mustafa also demanding to float the exchange rate

He knows, as many do the real value is much higher and moving to forex rather than dollar auction is what he means, but an actual float over a peg would be a mistake at this point. RV and peg to the dollar for at least 12-18 months is the recipe I believe.

Anyone notice its 147 degrees in Baghdad right now? Geez ...no wonder they get whacky....

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by weslin3 Mon 13 Jul 2015, 9:00 am

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Re: Employ monetary policy to develop the production sector

by weslin3 Mon 13 Jul 2015, 9:00 am

I hear you ward on that heat... Gets over 100 here and I get cranky.. You have a point there why they do whacky and say whacky things. And on that peg, that is what the IMF has suggested for a while.

by kingsranch Mon 13 Jul 2015, 10:11 am

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Post n°5

Re: Employ monetary policy to develop the production sector

by kingsranch Mon 13 Jul 2015, 10:11 am

I saw that too Ward, 140 degrees I could not handle that. Thank God I live in Rockies. We still have mountain tops covered with snow !

by Lobo Mon 13 Jul 2015, 10:45 am

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Re: Employ monetary policy to develop the production sector

by Lobo Mon 13 Jul 2015, 10:45 am

The CBI said in the past that when they become Art. 8 compliant, they will drop the artificial peg to the USD which is at the artificial rate and not the true rate of the currency (when the IMF devalued the dinar, it placed the currency at the artificial rate and pegged it to the USD) and would go to a basket of currencies and that basket may also include a percentage of gold to back the dinar and the dinar would be on a managed float. A basket of currencies is what the IMF uses to back the SDRs (Standard Drawing Rights) - a basket of currencies is preferable because if one of the currencies in the basket "suffers" the other currencies help to maintain the value. If the CBI does go to a basket of currencies and it does include gold, I would think the value would be at a higher rate because the dinar would have a partial backing of "gold".