BLC Staff RCS1947 Central Bank Current Problems Part 2 of 2
[tlm724] Some repeating that this could be justified because the reserve exceeds the currency in circulation and in bank one and a half times. These justifications for the government to gradually dominate the central bank resources.
[tlm724] heck I don't think even Ali Alak would let them touch the reserves !
[tlm724] The bubble ohhhhhhh is that what you call it ?
[tlm724] and the high price of the dollar is a result of the policy of the government and the House of Representatives and it ought to be to remove obstacles for the foreign exchange market
[tlm724] the IMF has been telling them for years but nooooooooooooooo the GOI just had to get in on the action, slipped that lil ditty about the auction cap right into the budget too !
~~~
[tlm724] Some repeating that this could be justified because the reserve exceeds the currency in circulation and in bank one and a half times. These justifications for the government to gradually dominate the central bank resources.
[tlm724] heck I don't think even Ali Alak would let them touch the reserves !
[tlm724] The bubble ohhhhhhh is that what you call it ?
[tlm724] and the high price of the dollar is a result of the policy of the government and the House of Representatives and it ought to be to remove obstacles for the foreign exchange market
[tlm724] the IMF has been telling them for years but nooooooooooooooo the GOI just had to get in on the action, slipped that lil ditty about the auction cap right into the budget too !
~~~
[tlm724] monetary policy is determine the exchange rate and help to manage the money and functions
[tlm724] The central bank does not lend to the government but it helps the economy as a whole through price stability and credit regulation and supervision of the banking and financial sector regulation and payments and maintaining the country's reserve
[tlm724] now look at that, he says right there that the CBI is the responsible party for price stability
[tlm724] and supervision of the banking and financial sector regulation
[tlm724] so they have the con captain !
[tlm724] Lama speak much echoed by the government and the Finance Committee in the House of Representatives on "foreign currency auction", this auction is a monetary policy which pulls dinars from the market and bought by foreign currency and here Thread ends for the central bank,
[tlm724] no clue who Lama is but he is telling us the auction brought in boatlaods of dinars but now they have a remittance program
[shunshine] was wondering
[RCS1947] this could get real interesting as we head into their holiday this push on the CBI to react is only going to grow stronger. The influx of tourist and shopping prices will spike...lots of finger pointing.
[tlm724] RCS1947 indeed and tariffs looming overhead as well !
[RCS1947] yep
[tlm724] and here Thread ends for the central bank, we have a cash discharge process direct and simple. = new remittance policy
[tlm724] That the central bank must be matched each dollar demand and this is one of the fundamentals of price stability as the demand that has not saturated by the bank will go and creates another market prices and the other, which is contrary to the central bank law and creates a state of economic instability.
[tlm724] BUT as we know the CBI knows exactly how many USD is needed to pay for imports with a fair degree of certainty
[tlm724] give or take a dolla lol
[tlm724] Shabs is saying hey this goes against the policy *slap* and he is saying FC its all your fault
[tlm724] I chose the Finance Committee put an upper limit on the sale of foreign currency (75 million dollars a day) thereby contributing to instability in and create multiple exchange rates for real because the demand was higher.
[tlm724] We do not doubt that there are irregularities, which requires follow-up with the relevant commercial banks, but we stress that the central bank is in front of the discharge process, but not cash, either by the imports is outside the scope of work of the Central Bank
[tlm724] but not cash, either by the imports is outside the scope of work of the Central Bank
[tlm724] On the other hand the money to go abroad because the state did not provide suitable opportunities to invest at home.
[tlm724] money leaving the country !
[tlm724] no incentive to invest without some sort of guarantee and protection !
[tlm724] As for the extra money must be sure of their sources and legitimacy of the banks and the circles in which anti-money laundering that should be strengthened
[tlm724] can you just see Shabs writing this up and ole Alak over his shoulder going *slap* I coulda had a V8 ! duh
[tlm724] Shabs must be so frustrated !
[tlm724] We must not forget that Iraq falls within the group of countries which are in transition from totalitarian regimes to open democratic systems provide the free economy
[tlm724] yes it is and has been from 2003 !!! More than enough time to do the right thing !
[tlm724] In the case of Iraq also encourages this transition because of the conditions of violence and instability experienced by the country.
[tlm724] The situation in Iraq at the present time encourage capital flight, and if it does not allow for capital that moves the dollar exchange rate in the market will rise significantly hampering economic decision-making.
[tlm724] The situation in Iraq at the present time encourage capital flight
[tlm724] yep Iraq is waving bye bye to the money that COULD of and SHOULD have stayed in the country !
[shunshine] So sad
[tlm724] Iraq has not yet become a safe place brings investment, we need large national efforts to ensure stability and attract investment.
[tlm724] END
[tlm724] The central bank does not lend to the government but it helps the economy as a whole through price stability and credit regulation and supervision of the banking and financial sector regulation and payments and maintaining the country's reserve
[tlm724] now look at that, he says right there that the CBI is the responsible party for price stability
[tlm724] and supervision of the banking and financial sector regulation
[tlm724] so they have the con captain !
[tlm724] Lama speak much echoed by the government and the Finance Committee in the House of Representatives on "foreign currency auction", this auction is a monetary policy which pulls dinars from the market and bought by foreign currency and here Thread ends for the central bank,
[tlm724] no clue who Lama is but he is telling us the auction brought in boatlaods of dinars but now they have a remittance program
[shunshine] was wondering
[RCS1947] this could get real interesting as we head into their holiday this push on the CBI to react is only going to grow stronger. The influx of tourist and shopping prices will spike...lots of finger pointing.
[tlm724] RCS1947 indeed and tariffs looming overhead as well !
[RCS1947] yep
[tlm724] and here Thread ends for the central bank, we have a cash discharge process direct and simple. = new remittance policy
[tlm724] That the central bank must be matched each dollar demand and this is one of the fundamentals of price stability as the demand that has not saturated by the bank will go and creates another market prices and the other, which is contrary to the central bank law and creates a state of economic instability.
[tlm724] BUT as we know the CBI knows exactly how many USD is needed to pay for imports with a fair degree of certainty
[tlm724] give or take a dolla lol
[tlm724] Shabs is saying hey this goes against the policy *slap* and he is saying FC its all your fault
[tlm724] I chose the Finance Committee put an upper limit on the sale of foreign currency (75 million dollars a day) thereby contributing to instability in and create multiple exchange rates for real because the demand was higher.
[tlm724] We do not doubt that there are irregularities, which requires follow-up with the relevant commercial banks, but we stress that the central bank is in front of the discharge process, but not cash, either by the imports is outside the scope of work of the Central Bank
[tlm724] but not cash, either by the imports is outside the scope of work of the Central Bank
[tlm724] On the other hand the money to go abroad because the state did not provide suitable opportunities to invest at home.
[tlm724] money leaving the country !
[tlm724] no incentive to invest without some sort of guarantee and protection !
[tlm724] As for the extra money must be sure of their sources and legitimacy of the banks and the circles in which anti-money laundering that should be strengthened
[tlm724] can you just see Shabs writing this up and ole Alak over his shoulder going *slap* I coulda had a V8 ! duh
[tlm724] Shabs must be so frustrated !
[tlm724] We must not forget that Iraq falls within the group of countries which are in transition from totalitarian regimes to open democratic systems provide the free economy
[tlm724] yes it is and has been from 2003 !!! More than enough time to do the right thing !
[tlm724] In the case of Iraq also encourages this transition because of the conditions of violence and instability experienced by the country.
[tlm724] The situation in Iraq at the present time encourage capital flight, and if it does not allow for capital that moves the dollar exchange rate in the market will rise significantly hampering economic decision-making.
[tlm724] The situation in Iraq at the present time encourage capital flight
[tlm724] yep Iraq is waving bye bye to the money that COULD of and SHOULD have stayed in the country !
[shunshine] So sad
[tlm724] Iraq has not yet become a safe place brings investment, we need large national efforts to ensure stability and attract investment.
[tlm724] END
[tlm724] final thoughts
[tlm724] I respect Shabibi because I got to know him through BondLady sharing her wisdom with us over the years
[tlm724] that said he is stating the obvious, that the system is broken !
[tlm724] if I were PM Abadi here's what I would do !
[tlm724] 1. discharge gov Alak and give him a job in the sanitation ministery
[tlm724] 2. beg Dr. Shabibi to take the reins, even if only temporarily to get control of the situation and also let him choose his successor
[shunshine] Amen to that
[tlm724] 3. put the hammer down on Jubouri to call an extraordinary session of parliament next week
[tlm724] 4. Durning that session I would make them vote on the investment law, the CBI Law amendment and the anti-money laundering law. We know they are ready ! And I wouldn't let them leave until it was done and it must be a majority vote, if 10 show up then 6 votes passes it !
[shunshine] Dayum skippy !!!
[tlm724] 5. oversight in the market place MUST be enforced ! And thats most of the problem, no oversight
[shunshine] And no one is held accountable either.
[tlm724] 6. continue with the currency reform but do it in the correct manner, one step at a time has always been Shab's plan, vey methodical , he laid it out there for all to see ! He told us how he would do it !
[tlm724] I know it feels as if we are starting from square one but we are not ! Yes this is a major bump in the road but it is not one that can't be corrected ! I truly believe Dr. Shabibi has his hands in this, he must for the sake of Iraq ! I guess that about does it Wink each day should bring us a better perspective on the current state of the currency reform. Thanks everyone
http://ift.tt/1IiJkXq
[tlm724] I respect Shabibi because I got to know him through BondLady sharing her wisdom with us over the years
[tlm724] that said he is stating the obvious, that the system is broken !
[tlm724] if I were PM Abadi here's what I would do !
[tlm724] 1. discharge gov Alak and give him a job in the sanitation ministery
[tlm724] 2. beg Dr. Shabibi to take the reins, even if only temporarily to get control of the situation and also let him choose his successor
[shunshine] Amen to that
[tlm724] 3. put the hammer down on Jubouri to call an extraordinary session of parliament next week
[tlm724] 4. Durning that session I would make them vote on the investment law, the CBI Law amendment and the anti-money laundering law. We know they are ready ! And I wouldn't let them leave until it was done and it must be a majority vote, if 10 show up then 6 votes passes it !
[shunshine] Dayum skippy !!!
[tlm724] 5. oversight in the market place MUST be enforced ! And thats most of the problem, no oversight
[shunshine] And no one is held accountable either.
[tlm724] 6. continue with the currency reform but do it in the correct manner, one step at a time has always been Shab's plan, vey methodical , he laid it out there for all to see ! He told us how he would do it !
[tlm724] I know it feels as if we are starting from square one but we are not ! Yes this is a major bump in the road but it is not one that can't be corrected ! I truly believe Dr. Shabibi has his hands in this, he must for the sake of Iraq ! I guess that about does it Wink each day should bring us a better perspective on the current state of the currency reform. Thanks everyone
http://ift.tt/1IiJkXq
via Dinar Recaps - Our Blog http://ift.tt/1Bk8qIm
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