Thread: Iraq/Dinar News. 09/05 to 01/14/07

Originally Posted by Alphamystic

It does indeed. My bad. My brain is on auto-american today.

This is good though..........Am going to look into when Kuwait did 'the business', Mike, any thoughts, was it around the 1 Jan?????

just found this in my email and don't have time to read the threads, sorry if alreadyn posted
Iraq central bank boosts the country's currency in a battle against inflationBAGHDAD, Iraq: Iraq's dinar currency has risen to a nearly two-year high against the U.S. dollar, thanks to trading by the central bank at its daily auction, the bank said Thursday.

Most of all the money the Iraqi government earns it gets in U.S. dollars because oil exports are the main source of its income, and the bank has about US$14 billion in foreign assets, said Mudher Qassim, the Central Bank of Iraq's director of statistics.

It sold 35 million U.S. dollars at Thursday's auction, state-run Iraqiyah television reported.

"Our goal is to reduce inflation, which is now running at about 50 percent, by improving the dinar and thereby making imported goods cheaper," Qassim said in a telephone interview.

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More than 80 percent of all Iraq's tradable goods are imported, he said.

In a report in August, the International Monetary Fund also said inflation was escalating in Iraq. The 12-month rate of inflation ended 2005 at 31.7 percent, but inflation then accelerated, with 12-month inflation reaching 58 percent in May 2006, the report said.

On Wednesday, the dinar was trading at an auction price of 1,424 against the U.S. dollar, according to the central bank's Web site, its strongest price since March 23, 2004, when it was at 1,420.

Between Nov. 29 and Thursday, the Iraqi currency traded widely at a market price between 1,410 to 1,442 to the dollar, the best the dinar had seen Jan. 26, 2005, when it was at 1,405, the Web site indicated.

"The dinar has steadily increased against the dollar because of the Central Bank's efforts to stabilize the currency and control inflation," said Hussein al-Uzri, president of the state-owned Trade Bank of Iraq.

"Iraqi consumers get oil and food that is government subsidized, so the rise in the dinar won't have an immediate effect on them and the economy. It will take some time. But as Iraqis realize the value of the dinar is rising, they will stop immediately exchanging their currency into dollars," he told The Associated Press.

Wednesday's bipartisan U.S. Iraq Study Group said that by the end of 2006, "The Central Bank of Iraqi will raise interest rates to 20 percent and appreciate the Iraqi dinar by 10 percent to combat accelerating inflation."

Two money changers in Baghdad said Thursday said their businesses haven't been affected by the central bank's intervention yet, but some consumers were watching to see what will happen to the dinar next.

Government employees who are paid in dinars already are benefiting by getting a better deal at the many Iraqi stores that import products such as electronic goods and sell them in dollars only, said one money changer.

The other one said the many poor and unemployed Iraqis who survive by receiving U.S. dollars from relatives overseas — and Iraqis who work for foreign companies and are paid in greenbacks — are worse off.

Both money changers spoke on condition of anonymity to protect their security in Baghdad, where many people are killed in sectarian violence between Sunni Arab insurgent and Shiite militias. Businessmen and store owners often are kidnapped by common criminals seeking ransoms from their relatives.

Mustafa Alani, a senior adviser at the Gulf Research Center in the United Arab Emirates, said he believes the Iraqi government's concerns about inflation will not be addressed by its manipulation of the currency market because the main reasons that the prices of goods are expensive is that companies importing them have to spend so much money providing security to their truck convoys. Many avoid using warehouses in Iraq because they are easily attacked, Alani said in a telephone interview from Abu Dhabi.

Qassim agreed, saying he believes that the cost of security alone increases the cost of importing goods to Iraq from neighboring countries by 15 percent to 30 percent.

___

On the Net: Central Bank Of Iraq

Iraq central bank boosts the country's currency in a battle against inflation - Africa & Middle East - International Herald Tribune

Originally Posted by Adster

Says 7 December doesn't it????

you Brits and your backwards records.....

Originally Posted by MrsCK

It's still in the IAMB Document - check out their website in the document tab.
Please don't ask for link because I am headed out the door. Just doing a fly-by, plus I have already posted this on were it is.

Sorry - went through every document and PDF page by page in the IAMB websites documents tab, it is not stated anywhere that I can see that getting to the 1345 rate by the end of 2006 was a policy that the CBI said they would adopt and follow thru on

Originally Posted by rvalreadydang

"Iraqi consumers get oil and food that is government subsidized, so the rise in the dinar won't have an immediate effect on them and the economy. It will take some time. But as Iraqis realize the value of the dinar is rising, they will stop immediately exchanging their currency into dollars," he told The Associated Press.

I didnt notice this the last time this was posted... But this is interesting..... What can you READ INTO this sentence???

(why would they stop exchanging their dinars into dollars unless the dinar all of a sudden became just as valuable???? Also note it says IMMEDIATELY!)

Originally Posted by wciappetta

you Brits and your backwards records.....

They even drive on the wrong side of the road!

Originally Posted by Mike5200

SGS I see you lurking- what is your take on all this talk of next year and not next week?

how many times you seen them saying not for a couple months then it happens all of a sudden within a week or so? seems like they wouldnt be telling people when they are revaling the dinar coz it would cause the big money boys to pay attention too closely.

ive seen things in baghdad turn around in 24 hours, im still positive on the dec. reval. we know the 2007 budget is going to open with the revalued dinar price, theyve figured it in arleady. theyve told us as some have said before. this month before they take a break for the year.

Originally Posted by Mike5200

Sorry - went through every document and PDF page by page in the IAMB websites documents tab, it is not stated anywhere that I can see that getting to the 1345 rate by the end of 2006 was a policy that the CBI said they would adopt and follow thru on

The number 1345 is listed on the first and second reviews of the stand by aggreement from the IMF dated last July. If you will go to table 4, which by my printer is on page 17. This level is referred to as "exchange rate, end of period". I don't think this is a set in stone value. Its only a guideline. Thank you.

اعتبرها البعض خطوة مهمة نحو خفض التضخمSome considered an important step towards reducing inflation
بغداد ـ حيدر الربيعيBaghdad Haider spring
عدَّ اقتصاديون متخصصون في شؤون المال والنقد اجراءات البنك المركزي العراقي بخفض اسعار بيع الدولار مقابل الدينار خطوة مهمة على طريق السيطرة على حجم التضخم.Many economists specializing in finance and monetary actions the Iraqi Central Bank to lower the rate of the dinar against the dollar sale an important step on the road to control the volume of inflation.




وأكدوا اهمية رفع سعر الفائدة ليصل الى 12% في تحقيق هدف كبح جماح التضخم ما سيؤدي على المدى القصير الى استقرار مقبول في الاسعار السائدة في السوق العراقية.They emphasized the importance of raising the interest rate of up to 12% in achieving the goal of curbing inflation would in the short term to stabilize the acceptable price prevailing in the Iraqi market.
ولاحظت(الصباح) ان ركوداً وارباكاً صاحب هذا الاجراء في بورصة بيع وشراء الدولار في معظم محال الصيرفة ببغداد ما يتعين متابعة هذا التحول الخطير في سوق المال العراقي وفي تصريحات صحفية مختلفة اكد عدد من المعنين اهمية الامر وعدوه خطوة رائعة نحو خفض التضخم ورفع قيمة الدينار العراقي وخفض اسعار الس لع والخدمات.It noted that the (morning) depression, and the upheaval of this action on the stock sale and purchase rates in most of the stores are banking Baghdad must follow this dangerous turn in the capital market in the Iraqi press statements, a number of different Concerned importance of the matter and the enemy of a remarkable step towards reducing inflation and raise the value of Iraqi dinar and reduce prices Els Alaa and services.
حيث اكد علي غالب بابان وزير التخطيط على فوائد هذا الاجراء في امتصاص التضخم، الذي قال عنه ايضا: ان قرار البنك المركزي الذي جاء بعد دراسة مستفيضة من قبل اصحاب الشأن يهدف ايضاً الى تشجيع اصحاب رؤوس الاموال الى جانب المواطنين عموماً على الادخار.When he said Ghalib Baban, Minister of Planning of the benefits of this procedure in Deflator, , which he also : The decision of the Central Bank, which came after extensive study by the stakeholders also aims to encourage holders of capital in addition to citizens in general on saving.
من جانبه قال محافظ البنك المركز سنان الشبيبي: ان هدف البنك المركزي حالياً ينحصر في محاربة التضخم الذي بلغ حوالي 76% والحد من ارتفاعه من خلال توفير شروط افضل للتنمية الاقتصادية وتحسين اداء القطاع المصرفي وتوفير الاستقرار فيه.For his part, Governor of the Central Bank Sinan Shabibi : The aim of the Central Bank is currently limited in the fight against inflation, which reached about 76% and reduce the height by providing better conditions for economic development and improving the performance of the banking sector and provide stability.
وأكد الشبيبي ان من بين اسباب التضخم حالياً زيادة السيولة النقدية في التداول، ما اقتضى اتباع سياسة نقدية جديدة تهدف الى تحسين سعر صرف الدولار باتجاه تخفيض سعره عدة نقاط في المزاد الذي ينظمه البنك المركزي يومياً لبيع الدولار بهدف سحب النقد من التداول.The Shabibi said that among the reasons inflation is increasing cash in circulation, what required a new monetary policy aimed at improving the dollar's exchange rate towards reducing its price several points in the auction, organized by the Central Bank every day to sell the dollar to withdraw currency from circulation.
فيما اوضح مدير عام البحوث في البنك المركزي العراقي الدكتور مظهر محمد صالح ان البنك المركزي هو الجهة المسؤولة بحكم قانون رقم 56 لسنة 2004 عن التصدي للتضخم وخفض مستوياته اذ شكل هذا المبدأ الاساس الذي تعتمده السياسة النقدية في تأدية واجباتها، وعلى هذا الاساس فلابد للبنك المركزي ان يضع اولويات سياسته، ونقصد هنا السياسة النقدية في مكافحة الانشطة التضخمية باستخدام أدواته المتاحة.With the general director of research at the Central Bank of Iraq, Dr Mohamed Saleh appearance that the Central Bank is responsible by virtue of Law No. 56 of 2004 to cope with inflation and reducing levels as a basis of this principle adopted by the monetary policy in the performance of their duties, On this basis, he has the Central Bank to establish policy priorities, We are speaking here of monetary policy to combat inflationary activities using the tools available.
ويضيف صالح: توجد امام السياسة النقدية متغيرات وسيطة او اهداف وسيطة تعبر عن العلاقة بين اثر هذه المتغيرات على خفض المستوى العام للاسعار واحتواء التضخم..He adds : Saleh located in front of monetary policy variables and intermediate or intermediate objectives reflect on the relationship between the impact of these variables to reduce the general level of prices and contain inflation. ومن بين هذه المتغيرات سعر الفائدة التوازني”طويل الأجل“ وسعر الصرف التوازني او التحقيقي، ومستويات عرض النقد السائدة، اذ يلاحظ ان هذه المتغيرات لايمكن السيطرة عليها بشكل مباشر مالم يتم استهدافها من خلال متغيرات مماثلة لها وهذه المتغيرات او الاهداف التشغيلية تعد اشارات او وسائل اشاراتية او معلوماتية يتم استخدامها للتأثير في استقرار السوق النقدية.Among these variables of interest rates stabilizing "long-term" and stabilizing the exchange rate, or investigative, and the levels prevailing exchange, Noting that these variables can control directly unless they are being singled through similar variables and the variables or operational objectives are references or means Acharateh or information be used to influence stability in the cash market.
ومن بين هذه الاشارات مايعرف بسعر فائدة البنك المركزي العراقي، وهو سعر تأشيري يعد بمثابة بوصلة ملاحية للتأثير في سلوك اسعار الفائدة اذ يتحدد بموجبه ماذا يقرض البنك المركزي؟ وماذا تودع المصارف في البنك المركزي؟..Among these references technique interest rate, the Central Bank of Iraq, a price indication would be tantamount compass navigation to influence the behavior of interest rates, as determined by which the Central Bank lends Why? What banks deposited in the Central Bank? في اطار السيطرة على حجم السيولة النقدية اذ يعتقد ان التضخم مهما كانت مصادره، فانه في النهاية ظاهرة نقدية، وبناء على ذلك فان اولويات الاستقرار تعد لازمة منطقية لبناء وتحفيز الاقتصاد.Under the control of the volume of cash as it is believed that whatever the confiscation of inflation, he eventually monetary phenomenon, Accordingly, the priorities are stability to the crisis logical to build and stimulate the economy.
ويوضح صالح على هذا الاساس يكون التضخم اساساً لزيادة سرعة تداول النقود والتخلي عنها ما يؤدي الى ضعف الطلب النقدي وتعاظم الطلب على السلع والخدمات كمسألة عكسية، وبغية الحفاظ على تماسك الطلب النقدي وتعظيم مستوياته لكي لا يتحول الى انفاق قوي على السلع والخدمات ما على البنك المركزي الا استخدام ادواته في رفع سعر الفائدة لديه لتحفيز هيكل اسعار الفائدة والحفاظ على تماسك المدخرات وتعظيم قوتها الشرائية بما يساعد السياسة النقدية في التصدي لمناسيب السيول ة المرتفعة واحتوائها ضمن السوق النقدية”المصرفية“ دون تحولها الى كتلة نقدية هائمة باتجاه السلع والخدمات..Shows favor on this basis the inflation mainly to increase speed of money circulation and to abandon what leads to weak demand cash and the growing demand for goods and services as counterproductive, In order to maintain the cohesion of demand and maximize cash levels in order not to turn into strong spending on goods and services to the Central Bank, the use of tools in raising the interest rate has to stimulate the interest rate structure and maintaining the coherence of savings and maximize their purchasing power helps monetary policy to address the levels of flooding e high, contained within the monetary market "bank" without becoming bloc cash adrift direction of goods and services.
وعلى ضوء ماتقدم تبرز العديد من الاسئلة في مقدمتها هل يستطيع اجراء البنك المركزي وحده من كبح جماح التضخم والسيطرة على حجم السيولة النقدية وماجدوى رفع مستوى الفائدة ازاء ارتفاع الاسعار؟In the light of Matqdm highlights many of the questions in the forefront Can a Central Bank unit of curbing inflation and control the volume of cash and Majdoi raise the level of interest at the high prices?
اقتصاديون شددوا على اهمية ما اقدم عليه البنك المركزي العراقي من اجراءات للسيطرة على حجم التضخم الذي وصل الى ارقام مرتفعة تجاوزت 70% من خلال خفض اسعار بيع الدولار مقابل الدينار العراقي ورفع سعر الفائدة ليصل الى 12% بعد ان كان 10% الشيء الذي ولد استقراراً ملحوظاً في جميع الاسعار في الاسواق ال عراقية صاحبه ركود في بيع وشراء الدولار في معظم محال الصيرفة في بغداد.Economists stressed the importance of the oldest in the Iraqi Central Bank of procedures to control the volume of inflation, which reached the high figures exceeded 70% through the reduction of dollar selling prices against the Iraqi dinar and raising the interest rate up to 12% from 10%, which generated a remarkable stability in prices in all the markets Iraqi recession in the selling and buying of the dollar in the banking most of the stores in Baghdad.
واكد الاقتصاديون ايضاً على اهمية ان يستمر البنك المركزي بهذا النهج الذي من شأنه كبح جماح التضخم الذي بات يهدد استقرار جميع الاوضاع في العراق بما فيها الامني والاجتماعي اضافة للوضع الاقتصادي.The economists also stressed the importance that the Central Bank will continue this approach, which would curb inflation, which now threatens the stability of all the situation in Iraq, including security and social addition to the economic situation.
ويرى متابعون ان رفع قيمة الدينار العراقي مقابل الدولار سيؤدي الى خفض التضخم وانعاش الحالة الاقتصادية للعوائل العراقية التي باتت تعاني كثيراً بسبب ارتفاع نسب التضخم الذي ولد اعباء معيشية كبيرة بات يتحملها المواطن اضافة الى تدهور مستوى الادخار بشكل واضح..The observers speculate that the rise in the value of the Iraqi dinar against the dollar would reduce inflation and revive the economic situation of Iraqi families, which has suffered greatly because of the high rate of inflation, which was born the burden of large households now borne citizen addition to the deterioration of the level of savings is clear. مما حدا بالبنك المركزي الى الاقدام على هذا الاجراء الذي عده الكثير من المتابعين خطوة نحو اصلاح شامل للاقتصاد العراقي.Which prompted the Central Bank to take this action, which many observers several step towards a comprehensive reform of the Iraqi economy.

Originally Posted by Mike5200

The US Iraq study Group is a congressional dog and pony show designed to appease the anti-war Democrats, its reccomendations are not binding even to the Bush Administration much less the GOI and CBI. Don"t worry, Shabibi knows what he needs to do and hes not going to take the advice of these congressional clowns who were too scared to go out of the green zone during the time they were in Iraq.IMO

Agreed!

Iraqi politicians play down significance of recommendations by U.S. bipartisan commission

07 December 2006 (AP Worldstream)

The Iraqi government said that a report urging change in U.S. policy in Iraq was in line with its own plans to stop the rampant violence in the country, but cautioned that there was no "magic wand" to solve Iraq's problems.

"The situation is grave, very grave in fact, and cannot be tolerated," Deputy Prime Minister Barham Saleh said Wednesday on the pan Arab satellite TV channel Al-Arabiya. "Absolute dependence on foreign troops is not possible. The focus must be on boosting the Iraqi security forces."

Iraqi politicians play down significance of recommendations by U.S. bipartisan commission | Iraq Updates