Specialists describe the central bank cut the rate of the dinar to the bitter treatment
Mike Thanks, Tgirl
16/05/2015 BAGHDAD / JD / .. A number of experts and specialists in the financial and economic affairs, said the central bank has taken several measures to reduce the federal budget for the 2015 deficit, which exceeded the rate of more than 40%, including reducing the dinar exchange rate against the dollar,
noting during their talk Agency / JD / that the reduction rate of the dinar against the dollar is a cure, but over because it will raise the rates of inflation and reduces the strength of the local currency, while the dollar swung the price will stabilize at 1300 dinars in the coming period.
~~~
Mike Thanks, Tgirl
16/05/2015 BAGHDAD / JD / .. A number of experts and specialists in the financial and economic affairs, said the central bank has taken several measures to reduce the federal budget for the 2015 deficit, which exceeded the rate of more than 40%, including reducing the dinar exchange rate against the dollar,
noting during their talk Agency / JD / that the reduction rate of the dinar against the dollar is a cure, but over because it will raise the rates of inflation and reduces the strength of the local currency, while the dollar swung the price will stabilize at 1300 dinars in the coming period.
~~~
He says economist Maitham coffee, "The reduction of the Iraqi dinar exchange rate will benefit the budget, because every dollar sells for the central bank at the most expensive of the dollar, which means that before the budget is funded by the difference between the price of two dollars deficit Alambain".
He told coffee / JD /, that "this policy is used on a global scale, regardless of the level of progress or the availability of resources in the countries, a cure for the problems of the budget deficit and balance of payments deficit at the same time."
He pointed out that the measure has immediate and future effects, which can lead to higher prices in the domestic market, but this rise could end excitement that it led to a decline in consumption and imports has been stimulated by market forces. "
"Even on payments features could be improved in the future through lower imports could increase the surplus or at least the surplus," adding that "its direct impact will be to reduce the budget deficit."
For his part, he criticized the President of the Economic Information Center lion Mohammed Ali, lowering the dinar exchange to reduce the budget deficit rate policy the fact that going to hurt the citizens,
adding that "the salaries and revenue people are denominated in dinars and reduce the value of the dinar mean multiples of the ability of citizen's purchasing power, and this will lead to higher inflation rates."
Mr Mohamed Ali told / JD / "The vision must be based on the experiences and the liberalization of the exchange rate or approaching that in the absence of full need coverage will lead to a steady rise in the local market is very sensitive and subject absolutely inflationary shocks internal and external with the stability of income levels."
He added that "for the hypothesis and if you do not get cases of economic contraction due to declining employment will lead to a rise in prices of services and goods and the movement of the market indicate that the response to rising prices and its impact on higher consumer price of the real impact of any that the state monopoly still dominate the local market economy." .
As an economic expert Sumaisem peace, it confirmed that this policy is a cure, but over what is happening from economic fluctuations in the country, noting that the application will reduce the budget deficit, but it will affect the local market in terms of higher prices.
And witnessing the dollar exchange rate rise against the dinar per dollar, reaching the price of 1300 dinars.
And suffer the budget in 2015 approved an estimated $ 119 trillion dinars and an oil price of $ 56 a barrel from a large fiscal deficit estimated at more than 40% because of lower oil prices in world markets. / End / 8 /
http://ift.tt/1IN8O2V
This is the last thing I want to hear, the article is stating that the CBI is considering lowering the rate of the dinar in response to the budget deficit: "The reduction of the Iraqi dinar exchange rate will benefit the budget."
Iraq has figured out that the budget deficit is going to be larger than the projected $25 billion and will probably end up around $40 billion for the year:
"this policy is used on a global scale, regardless of the level of progress or the availability of resources in the countries, a cure for the problems of the budget deficit and balance of payments deficit at the same time."
"And suffer the budget in 2015 approved an estimated $ 119 trillion dinars and an oil price of $ 56 a barrel from a large fiscal deficit estimated at more than 40% because of lower oil prices in world markets."
The only problem is, this will also be an inflationary move by Iraq: "he criticized the President of the Economic Information Center lion Mohammed Ali, lowering the dinar exchange to reduce the budget deficit rate policy the fact that going to hurt the citizens,
adding that "the salaries and revenue people are denominated in dinars and reduce the value of the dinar mean multiples of the ability of citizen's purchasing power, and this will lead to higher inflation rates."
Today's rate is 1305-$1, here's hoping they don't make it the official rate, all we can do is wait and see.
" We are all born ignorant, but one must work hard to remain stupid " Benjamin Franklin
Mike Parliamentary Finance: government bears the responsibility to raise the dollar because of the fees imposed on merchants
May 17, 2015 9:41 The parliamentary finance committee carried, government has a responsibility to raise the dollar's exchange rate against the dinar because of the fees imposed on remittance traders by 8%, while the likely stability of the dollar exchange rate at 1300 dinars to the dollar.
A member of the committee MP Jabbar al-Abadi told I followed news agency Buratha today that "the Central Bank is in charge of the President on the monetary policy in the country can not be for any party to interfere work", ruling that "the parliamentary Finance Committee be a party to the rise in the dollar's exchange rate against the dinar."
"The government bears the responsibility for raising the price of the dollar due to the imposition of fees by 8% on the remittance to dealers, which is reflected in the exchange rate," likely to "stabilize the dollar exchange rate at 1300 dinars and will not return to its normal price, which was 1200 dinars to the dollar." .
And witnessing the dollar exchange rate rose against the dinar where he arrived in 1300 dinars to the dollar.
The news indicated that the Finance Committee had raised a recommendation to the central bank to raise the dollar to reduce the budget deficit rate. 41/5/150517
http://ift.tt/1JUXwIH
Mike: I'm more than a little surprised that they're looking at this as an option. This move will help the government cover expenses and salaries but it's going to tank the economy with increased inflation.
Whatever confidence Iraqi's have in the dinar will evaporate and set the process back at least a year or until oil prices climb to previous figures.
I don't see that happening for years, though, as long as the Saudi's (Sunni) decide to pump as much as they can, the price for oil will remain around $60 per barrel.
Iraq desparately needs alternative sources of revenue and instead of raising the value of the dinar and creating an open market economy, this may be the course they choose.
This is one of my fears when it comes to the 50K note as well, they're settling in for a long pause in the process to add value and instead seem focused on increasing liquidity through the printing of more money.
I know Saleh stated that it wouldn't add to the increasing supply, but at this point, I have a hard time believing him. Nowhere in the history of modern economics has a country added a larger denomination in preparation for raising the value of it's currency.
These two moves in conjunction will allow Iraq to struggle through a deficit (40%) budget and maintain the status quo. I hope I'm wrong and they make a move towards adding value.
Here's the thing, the CBI has already told the banks and traders to stop charging the 8% remittance fee or stiff penalties would occur.
Supposedly, this is what's creating the spread between the street and official rates. Until Iraq addresses this one issue, what do I think will happen when/if they moved the rate to 1300-$1?
The same thing that's already occurred, the traders and banks will continue to add the 8% to the 1300 rate and now the street rate will reflect 1404-1 instead of 1300-1.
Why not stop the 8% and leave the dinar at 1166-1? Why hasn't the CBI penalized these banks and stopped the added fees? This seems like a curious move right now, this and other articles may be much ado about nothing. Here's hoping.
" We are all born ignorant, but one must work hard to remain stupid " Benjamin Franklin
G-Lin GM mike. The way I interpret the first art. posted is this is a thing of the past.
They are suffering from the repercussions of their decision already. The inflation #'s increased in March and April.
As I said on another site in regards to this action by decision making parties " how's that working out for you?" :lol: not so good. I also wonder if the last 2 weeks of being flooded by all the 50k and 100k arts.
could be directed at ISIS. I know it may be a stretch but I noticed over at Kaps that none of this info has appeared in that subscribtion paper that is promoted on his site.
I don't think they can continue to devalue the currency. Economist are predicting the outcome of this. They are already feeling the affects. Maybe they are doing it because of ISIS. I don't know.
If they can get security under control, and I think that is about to take pace, we could see some changes in the value. Abadi and several other authorities are suppose to appear before parl. today and the decussion is security.
I believe we are about to see a massive attack on ISIS. Arms must flow through Abadi. Direct arming can create a civil war. It has to be done properly. I hope Abadi's visit to the U.S. may have gotten his attention. Time to arm the Kurds and Sunnis.
It is also very apparent that Maliki is still trying to influence and create chaos in Abadi's Gov. Abadi continually says in arts to ignore the propaganda.
The necessary laws like the NGL, Parties Law, Fedearl Court Law, Accountibility, will get passed inspite of Maliki's party. HCL also will pass.
It has been a fight as usual, but the power sharing will happen and then Iraq will have stability. I'm looking forward to what they can get accomplished this week when they return tomorrow. Security and stability, security and stability. ;)
He told coffee / JD /, that "this policy is used on a global scale, regardless of the level of progress or the availability of resources in the countries, a cure for the problems of the budget deficit and balance of payments deficit at the same time."
He pointed out that the measure has immediate and future effects, which can lead to higher prices in the domestic market, but this rise could end excitement that it led to a decline in consumption and imports has been stimulated by market forces. "
"Even on payments features could be improved in the future through lower imports could increase the surplus or at least the surplus," adding that "its direct impact will be to reduce the budget deficit."
For his part, he criticized the President of the Economic Information Center lion Mohammed Ali, lowering the dinar exchange to reduce the budget deficit rate policy the fact that going to hurt the citizens,
adding that "the salaries and revenue people are denominated in dinars and reduce the value of the dinar mean multiples of the ability of citizen's purchasing power, and this will lead to higher inflation rates."
Mr Mohamed Ali told / JD / "The vision must be based on the experiences and the liberalization of the exchange rate or approaching that in the absence of full need coverage will lead to a steady rise in the local market is very sensitive and subject absolutely inflationary shocks internal and external with the stability of income levels."
He added that "for the hypothesis and if you do not get cases of economic contraction due to declining employment will lead to a rise in prices of services and goods and the movement of the market indicate that the response to rising prices and its impact on higher consumer price of the real impact of any that the state monopoly still dominate the local market economy." .
As an economic expert Sumaisem peace, it confirmed that this policy is a cure, but over what is happening from economic fluctuations in the country, noting that the application will reduce the budget deficit, but it will affect the local market in terms of higher prices.
And witnessing the dollar exchange rate rise against the dinar per dollar, reaching the price of 1300 dinars.
And suffer the budget in 2015 approved an estimated $ 119 trillion dinars and an oil price of $ 56 a barrel from a large fiscal deficit estimated at more than 40% because of lower oil prices in world markets. / End / 8 /
http://ift.tt/1IN8O2V
This is the last thing I want to hear, the article is stating that the CBI is considering lowering the rate of the dinar in response to the budget deficit: "The reduction of the Iraqi dinar exchange rate will benefit the budget."
Iraq has figured out that the budget deficit is going to be larger than the projected $25 billion and will probably end up around $40 billion for the year:
"this policy is used on a global scale, regardless of the level of progress or the availability of resources in the countries, a cure for the problems of the budget deficit and balance of payments deficit at the same time."
"And suffer the budget in 2015 approved an estimated $ 119 trillion dinars and an oil price of $ 56 a barrel from a large fiscal deficit estimated at more than 40% because of lower oil prices in world markets."
The only problem is, this will also be an inflationary move by Iraq: "he criticized the President of the Economic Information Center lion Mohammed Ali, lowering the dinar exchange to reduce the budget deficit rate policy the fact that going to hurt the citizens,
adding that "the salaries and revenue people are denominated in dinars and reduce the value of the dinar mean multiples of the ability of citizen's purchasing power, and this will lead to higher inflation rates."
Today's rate is 1305-$1, here's hoping they don't make it the official rate, all we can do is wait and see.
" We are all born ignorant, but one must work hard to remain stupid " Benjamin Franklin
Mike Parliamentary Finance: government bears the responsibility to raise the dollar because of the fees imposed on merchants
May 17, 2015 9:41 The parliamentary finance committee carried, government has a responsibility to raise the dollar's exchange rate against the dinar because of the fees imposed on remittance traders by 8%, while the likely stability of the dollar exchange rate at 1300 dinars to the dollar.
A member of the committee MP Jabbar al-Abadi told I followed news agency Buratha today that "the Central Bank is in charge of the President on the monetary policy in the country can not be for any party to interfere work", ruling that "the parliamentary Finance Committee be a party to the rise in the dollar's exchange rate against the dinar."
"The government bears the responsibility for raising the price of the dollar due to the imposition of fees by 8% on the remittance to dealers, which is reflected in the exchange rate," likely to "stabilize the dollar exchange rate at 1300 dinars and will not return to its normal price, which was 1200 dinars to the dollar." .
And witnessing the dollar exchange rate rose against the dinar where he arrived in 1300 dinars to the dollar.
The news indicated that the Finance Committee had raised a recommendation to the central bank to raise the dollar to reduce the budget deficit rate. 41/5/150517
http://ift.tt/1JUXwIH
Mike: I'm more than a little surprised that they're looking at this as an option. This move will help the government cover expenses and salaries but it's going to tank the economy with increased inflation.
Whatever confidence Iraqi's have in the dinar will evaporate and set the process back at least a year or until oil prices climb to previous figures.
I don't see that happening for years, though, as long as the Saudi's (Sunni) decide to pump as much as they can, the price for oil will remain around $60 per barrel.
Iraq desparately needs alternative sources of revenue and instead of raising the value of the dinar and creating an open market economy, this may be the course they choose.
This is one of my fears when it comes to the 50K note as well, they're settling in for a long pause in the process to add value and instead seem focused on increasing liquidity through the printing of more money.
I know Saleh stated that it wouldn't add to the increasing supply, but at this point, I have a hard time believing him. Nowhere in the history of modern economics has a country added a larger denomination in preparation for raising the value of it's currency.
These two moves in conjunction will allow Iraq to struggle through a deficit (40%) budget and maintain the status quo. I hope I'm wrong and they make a move towards adding value.
Here's the thing, the CBI has already told the banks and traders to stop charging the 8% remittance fee or stiff penalties would occur.
Supposedly, this is what's creating the spread between the street and official rates. Until Iraq addresses this one issue, what do I think will happen when/if they moved the rate to 1300-$1?
The same thing that's already occurred, the traders and banks will continue to add the 8% to the 1300 rate and now the street rate will reflect 1404-1 instead of 1300-1.
Why not stop the 8% and leave the dinar at 1166-1? Why hasn't the CBI penalized these banks and stopped the added fees? This seems like a curious move right now, this and other articles may be much ado about nothing. Here's hoping.
" We are all born ignorant, but one must work hard to remain stupid " Benjamin Franklin
G-Lin GM mike. The way I interpret the first art. posted is this is a thing of the past.
They are suffering from the repercussions of their decision already. The inflation #'s increased in March and April.
As I said on another site in regards to this action by decision making parties " how's that working out for you?" :lol: not so good. I also wonder if the last 2 weeks of being flooded by all the 50k and 100k arts.
could be directed at ISIS. I know it may be a stretch but I noticed over at Kaps that none of this info has appeared in that subscribtion paper that is promoted on his site.
I don't think they can continue to devalue the currency. Economist are predicting the outcome of this. They are already feeling the affects. Maybe they are doing it because of ISIS. I don't know.
If they can get security under control, and I think that is about to take pace, we could see some changes in the value. Abadi and several other authorities are suppose to appear before parl. today and the decussion is security.
I believe we are about to see a massive attack on ISIS. Arms must flow through Abadi. Direct arming can create a civil war. It has to be done properly. I hope Abadi's visit to the U.S. may have gotten his attention. Time to arm the Kurds and Sunnis.
It is also very apparent that Maliki is still trying to influence and create chaos in Abadi's Gov. Abadi continually says in arts to ignore the propaganda.
The necessary laws like the NGL, Parties Law, Fedearl Court Law, Accountibility, will get passed inspite of Maliki's party. HCL also will pass.
It has been a fight as usual, but the power sharing will happen and then Iraq will have stability. I'm looking forward to what they can get accomplished this week when they return tomorrow. Security and stability, security and stability. ;)
G-Lin Here is that inflation art. :) The Ministry of Planning: the high rate of inflation in Iraq to 0.5%
Dated: May 17, 2015 Baghdad / Iraq News Network and the Ministry of Planning announced a high inflation index in Iraq for the month of April by [0.8%], and the height annually by [0.5%] while confirming that he did not include the three Iraqi provinces because of the security situation, which Tchehdh.oukal ministry spokesman Abdul-Zahra Hindawi said in a statement:
"The Central Bureau of Statistics of the Ministry of Planning completed the inflation report for the month of April 2015 on the basis of field data collection on the prices of goods and services components of the consumer basket of selected sample of outlets in all governorates of Iraq
noting that" these rates are calculated goods and services from food, rent, transportation, communications, health, education and other cover, which is keeping consumer
He explained that "the monthly inflation for the month of March index rose by 08% .. from the previous month and by 0.5% for the month of April 2014 as well as higher inflation base index by 0.3% from the previous month and by 1.7 % for the month of April 2014.
Pointing out that the housing department had the effect of high annual change index to the consumer price rate, as prices rose by 3.7% in the month of April 2015 compared with the same month in 2014,
while the record for the number of Department of Food and non-alcoholic beverages biggest impact of the decline in the rate of change annual record for the number of consumer prices, as prices fell by 3.4% in the month of April 2015 compared with the same month of last year.
And that "the provinces not covered by the survey included the price of Nineveh, Salahuddin and Anbar.
http://aliraqnews.co...
hi-five I don't see the devaluing of the dinar to 1300 to be what is needed in Iraq. One of the main economic goals is to diversify into other revenue sources besides oil.
If Iraq wants to develop the private sector, they have to import goods to make that happen. But, evaluing their dinar will increase the cost of imports. Iraq is not a producing country that exports goods like China. (other than oil). If they were, then lower dinar value would help because Iraq's goods would be cheaper and they could undercut competition.
The WB and IMF have strongly recommended that Iraq develop other non-oil income sources. I don't see how Iraq can expect to develop the private sector if they devalue their currency to 1300. This doesn't make sense to me.
Mike I agree, hi-five and glin, these articles are like the 50k articles, they don't make sense. But, this is Iraq after all. Devaluing the currency will help the GOI but hurt the people. So far, the GOI had done little to help those folks, that's why these types of articles make me nervous. :)
--" We are all born ignorant, but one must work hard to remain stupid " Benjamin Franklin
http://ift.tt/SKyvLJ
Dated: May 17, 2015 Baghdad / Iraq News Network and the Ministry of Planning announced a high inflation index in Iraq for the month of April by [0.8%], and the height annually by [0.5%] while confirming that he did not include the three Iraqi provinces because of the security situation, which Tchehdh.oukal ministry spokesman Abdul-Zahra Hindawi said in a statement:
"The Central Bureau of Statistics of the Ministry of Planning completed the inflation report for the month of April 2015 on the basis of field data collection on the prices of goods and services components of the consumer basket of selected sample of outlets in all governorates of Iraq
noting that" these rates are calculated goods and services from food, rent, transportation, communications, health, education and other cover, which is keeping consumer
He explained that "the monthly inflation for the month of March index rose by 08% .. from the previous month and by 0.5% for the month of April 2014 as well as higher inflation base index by 0.3% from the previous month and by 1.7 % for the month of April 2014.
Pointing out that the housing department had the effect of high annual change index to the consumer price rate, as prices rose by 3.7% in the month of April 2015 compared with the same month in 2014,
while the record for the number of Department of Food and non-alcoholic beverages biggest impact of the decline in the rate of change annual record for the number of consumer prices, as prices fell by 3.4% in the month of April 2015 compared with the same month of last year.
And that "the provinces not covered by the survey included the price of Nineveh, Salahuddin and Anbar.
http://aliraqnews.co...
hi-five I don't see the devaluing of the dinar to 1300 to be what is needed in Iraq. One of the main economic goals is to diversify into other revenue sources besides oil.
If Iraq wants to develop the private sector, they have to import goods to make that happen. But, evaluing their dinar will increase the cost of imports. Iraq is not a producing country that exports goods like China. (other than oil). If they were, then lower dinar value would help because Iraq's goods would be cheaper and they could undercut competition.
The WB and IMF have strongly recommended that Iraq develop other non-oil income sources. I don't see how Iraq can expect to develop the private sector if they devalue their currency to 1300. This doesn't make sense to me.
Mike I agree, hi-five and glin, these articles are like the 50k articles, they don't make sense. But, this is Iraq after all. Devaluing the currency will help the GOI but hurt the people. So far, the GOI had done little to help those folks, that's why these types of articles make me nervous. :)
--" We are all born ignorant, but one must work hard to remain stupid " Benjamin Franklin
http://ift.tt/SKyvLJ
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