Baghdad is trying to stop the deterioration of the Iraq dinar exchange rate

Baghdad is trying to stop the deterioration of the Iraq dinar exchange rate

Baghdad Omar Shaher

Busy Baghdad since the days of attempts to adjust the Iraqi dinar exchange rate against the US dollar, after it entered a phase of decline since April, peaked early last week.

Incline Iraqi dinar exchange rate against the greenback in the local market during the last week, 1,200 dinars for one dollar to 1,300, the gap between the official rate of the dollar to State 121 IQD per dollar.

Iraqi Central Bank sells dollar banks approved for 1179 dinars, is sold by 1189 to citizens wishing to travel for treatment. Otherwise, the traders who want to buy the dollar sign in a public auction to sell hard currency run by the Central Bank, but after a series of measures, some of which the Ministry of the Interior.

The Department of the Central Bank, the monetary policy of the country, a series of meetings with members of the Iraqi presidency, to explain how to face down the exchange rate of the local currency.

According to a statement of the Iraqi Parliament, "seen by musicians, other", the Presidency of President Osama Al-nujaifi and Qusay Al-Suhail, first Deputy, Aref Tayfour, second Deputy, met Sunday 12/5/2013 "Abdel Basset Turki, head of the Office of financial supervision and the Governor of the Central Bank of Iraq". The statement said that "the Presidency of the Council expressed their full support for the Central Bank to check the work of private banks and archiving information within the Bank and reform measures which include adjusting the exchange rate of the dollar and reduce the phenomenon of money laundering and to strengthen the capacity of the Central Bank in economic development".

In a separate statement Monday, 13/5/2013, Parliament Qusay Al-Suhail Vice President "chaired a meeting of the Finance Committee in the presence of Central Bank Governor Abdel Basset Turki.
The statement said that during the meeting, "stressed Al-Suhail on the need to identify actions and things to taken by the Central Bank to address the fluctuating dinar exchange rate against the dollar," the importance of knowing the real reasons which led to this oscillation that negatively affects a person's life. "

The statement said that the Governor of the Central Bank "provided a review of the policy and work of the World Bank during the past period, particularly with regard to the auction, the Central Bank and the procedures established by the Bank's management to eliminate volatility in exchange rates".
The statement said that members of the Finance Committee in Parliament reviewed the "suggestions and recommendations regarding developments in the auction sale and the method and manner of the dollar", stressing the "need to adopt ways to prevent exploitation of some of the Iraqi people's money traders to Central Bank auction."

Central Bank officials refused to comment to the media, but local media reported Monday, 13/5/2013, a statement by a Bank as a source, confirms that "the size of the Iraqi Central Bank reserves of foreign currencies reached 74 billion u.s. dollars." "This is the top reserve currency of Iraq."
Economist Jawad Al-shammari said the Iraqi Central Bank follows a policy of very careful in dealing with the media, and perhaps who leaked information on increasing the size of Iraq, as a reserve sooth fears that became magnified because of the sharp decline in the value of the Iraqi dinar against the dollar. "

Shammari said that "the CBI meet daily to sell foreign currency with the participation of governmental and private sales are either in cash or in the form of money orders sold abroad fee." And finds that "this action which aims at adjusting of the dinar before the dinar is no longer feasible, because of the growing gap between the Bank in Basra and between actual market needs."

And the Chairman of the Committee on finance in the Parliament of Iraq Haidar Abadi "received reassuring messages from officials at the Central Bank to control the fluctuation in the exchange rate." Abbadi said that the Central Bank has taken measures to citizens ' access to the currency of the civil government, banks that have to travel or conversion therapy, they can obtain the required currency conversion.

Abbadi said that the problem is limited to the difference between supply and demand in the Iraqi market for the dollar. "

The Iraqi Central Bank meet daily to buy and sell foreign currency with the participation of Iraqi banks, with the exception of public holidays where the Bank auctions, sales are either critically or in the form of money orders sold abroad in return for Commission.

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Can the State revive the Iraqi dinar exchange rate?!

Sunday, May 19, 2013

Thunder precious Factors influencing exchange rate//

Comparative price levels: according to the theory of purchasing power parity, when prices of domestic goods decreased demand for domestic goods and the rate of the national currency in decline so it can continue to sell local goods, and vice versa.
Tariffs and quotas: exchange rate impact of tariffs (taxes on imported goods) and classes (restrictions on the quantity of goods that can be imported), because it increases demand for the commodity.
Preference of foreign goods on domestic goods: increased demand for exports from the State causes the height of its currency over the long term, increased demand for imports caused the depreciation of the national currency.

Productivity: If State is more productive than other States, could lower prices of domestic goods for foreign goods prices and remain profitable, and the result is the increased demand for domestic goods and the tendency of the rate of the local currency to rise.

Exchange rate/types/

Nominal exchange rate: is the measure of one currency that can be exchanged for a currency value. And is determined by demand and supply in the foreign exchange market in a moment of time, and that the exchange rate can be changed according to changing demand and supply. Is divided into the official exchange rate (the rate prevailing in the trade) and the parallel exchange rate (the rate prevailing in the parallel markets).
The real exchange rate: the number of units of foreign goods for the purchase of one unit of local goods, so measuring competitiveness.

Effective exchange rate: exchange rate reflects actual indicator which measures the average change in the exchange rate of a currency for several other currencies in a given time period and the actual exchange rate index of the average of several bilateral exchange rates and it shows how much improvement or development of his country for a range of other currencies.

The real effective exchange rate: is the rate of my name, because it is an average of several bilateral exchange rates, and for this to be a meaningful indicator of adequate competitive country toward the outside to be the nominal rate to patch remove the relative price changes.

Exchange rate objectives//

Resistance to inflation: improving the exchange rate to the low level of imported inflation and improved competitiveness of enterprises. In the short term is the decline in tech pet Palace an import of a positive impact on the low level of imported inflation.
Resource allocation: the real exchange rate to convert resources into the international export-oriented goods, and this works to broaden the base of international goods, so that a large number of exportable goods.

Income distribution: the exchange rate plays an important role in the distribution of income between groups or sectors, when the high competitiveness of the export sector (raw materials, agricultural) as a result of lower real exchange rate, that makes it more profitable, the profit on capital owners, while reducing the purchasing power of workers, and vice versa when the nominal exchange rate, that leads to the high purchasing power of wages.

The development of domestic industries: the Central Bank may reduce the rate of exchange for the encouragement of national industry, which encourages exports. The devaluation by the Central Bank to protect the domestic market from foreign competition and promote exports.

Under the Golden (gold currency calendar) where the exchange rate is determined from the relationship between the return of the currency compared with other currencies, at that time, the exchange rates have a great deal of persistence, and volatility are confined to within narrow limits, and entry and exit of gold, after the relationship between paper money and gold is no longer content to any role in the currency exchange rate.

In this case, the State, represented by its Ministry of finance and economic programmes of legislative, Executive and the Central Bank of Iraq, the day before the following parameters:

First: national agricultural economy

II: manufacturing national economic recovery

III: reduction of import goods imported with the national counterpart

IV: the adoption exchange rate for Iraqi dinar on the basis of the value (gold oil) as a certified cash cover version of paper currency in circulation, and not on the basis of the value of the dollar.((S))
Iraq today; import than produce, consume more than they produce, and spend more than they won, and the import of all specific importers based on the dollar value of the dollar, the u.s. currency (paper) which became in control of the world economy in General and the Iraqi economy, saw her interpretation in economics, was the world depends for cash currency cover on the basis of the value of gold and not on the basis of the value of the dollar, may resign Europe euro vented their local currencies the dollar hegemony, and its smaller neighbour has partnered Europe's single currency.
Iraq today and yesterday, and other countries of the world roles thanks them by the US economy, has shown economic events in the world, including Iran, how economies depend on currency of American paper currency are vulnerable to economic collapse, if national currency value depends on the value of gold would remain a lot better than they are today.
Iraq oil country, and other countries of the world, are required to develop its own OPEC, (gold) for the price of a barrel, meaning; currency (gold, oil) in order to not fall in tragedy or approach with the US dollar, as well as to not also the manipulations of the gold market in the world, which is controlled by the Zionist lobby in world markets, if adopted value of gold!.

If we look closely at the nature of the imported goods in the Iraqi market, we found that chronic, derived its origins from the former Iraqi regime. As China and other goods are characterized by mediocrity with with towering lowland compared with prices of goods produced by capitalist countries with international standards such as Japan and Germany, America, Britain, France and others, where the import policy and the remnants of the former regime's economic policy and its after-effects still domesticated and have inherited the Iraqi traders, not to mention the high specifications of main specifications, even became known for the Iraqi market, a market trader: a Chinese term first degree and second degree Chinese!!!?

The great Iraq oil. In ancient civilizations. With a great historical legacy, not just of goods Division global indigenous origins like the Gulf States, in the Gulf, the best goods flood the shops in Iraq filled the Iraqi market goods admi, while Iraqi traders convert large amounts of hard currency to outside Iraq, but at the expense of the Iraqi people, who denied him the former economic policy, because the conditions that were imposed on Iraq because of the embargo and the ban on the export of oil, Iraq is today, and it continues the same approach that has exhausted Purpose of the?!!!.

Merchants need to hard currency represented by us paper dollar that controls the national currency exchange rate of the Iraqi dinar actress now < 1/1200 of the dollar after the US dollar was > 1/3 of the Iraqi dinar in the previous years, and with the alzolimh of the longtime Iraqi dinar, dinar became beloved Iraqis reeling under the hegemony of the dollar and us paper, and thus before the gold is Leite, cupcake!!!. A continuing need for more than two decades of Iraqi currency, spend and leave the country, but they have not yielded useful goods to citizens, and if the useful goods, foodstuffs which we here in Iraq we have the causes and circumstances of national markets to meet the needs of humans and animals and they need over time.

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