Overnight deposit interest rates

[sugardave]

This may be in the wrong section, but can someone speak to the following statement I came across when reading the IMF report?

"The CBI adopted the following measures effective July 3, 2005: (i) an increase in the interest rate on the overnight dinar deposit facility from 4 to 5 percent per annum; and (ii) the introduction of a 14-day and a 30-day deposit facilities yielding 6 percent and 7 percent, respectively."

Does this only apply for banks or can anyone deposit large amounts with the CBI and take advantage of those 14-day and 30-day rates?

[IQDFiend]

This may be in the wrong section, but can someone speak to the following statement I came across when reading the IMF report?

"The CBI adopted the following measures effective July 3, 2005: (i) an increase in the interest rate on the overnight dinar deposit facility from 4 to 5 percent per annum; and (ii) the introduction of a 14-day and a 30-day deposit facilities yielding 6 percent and 7 percent, respectively."

Does this only apply for banks or can anyone deposit large amounts with the CBI and take advantage of those 14-day and 30-day rates?

Only banks. The CBI does not deal with retail or private investors.

[sugardave]

Oh well, thanks for the answer!

[Corwin]

Oh well, thanks for the answer!

Many countries (USA, India, UK) have ultra short term deposits for high % rates. It is for large depositors to make a nice turn-over while they hold onto the physical cash. ;)

I *believe* in the USA you can get short term accounts just so long as you have a GOOD chunk of change to open one.

Corwin

[amatullah67]

I can only speak about Canadian stocks but the bank dividends are still paying double digit returns.Some investments allow you to defer the taxes until after death.Definitely invest in a great tax planner

[dorrel]

In the US all dividends of stocks are not taxed. Pick good blue chip stocks and wait for the dividends and pay no tax on that income.

I can only speak about Canadian stocks but the bank dividends are still paying double digit returns.Some investments allow you to defer the taxes until after death.Definitely invest in a great tax planner

[icarusII]

Because the CBI will signal any important monetary shifts, this is the place to watch for significant events. They raised the interest rates in an effort to reduce the inflation in compliance to the IMF recommendations. One other recommendation from the IMF... more transparency in operations. So the CBI is moving according to the IMF Articles IV consultation recommendations.
Another significant move of late.......the CBI had an invitation to bid for an external audit of their 2004/2005 accounts. That bid period closed on July 31st. This contract should already be awarded and the company should be conducting their audit. The CBI Key Financial Indicators spreadsheet had not been updated since May. Now it is updated to July. Small steps towards success.

Icarus

[homy]

Incarus,

Question is what is the anticipated or projected inflation rate, in your opinion or fact? The latest auctions has been in the range of 7%-10%. It is my feeling that this is the expected range of inflation just as it is reflected in our US T-bill auctions.

I didn't think about this until I reread this thread and after reading all the economic reports of the double digit high inflation that I remembered this data was available. If this is the case, then great strides have been made in reducing inflation!

Incarus or others out there including the Mods, what do you think? I feel inflation has been tamed their or else these rates would be much higher since the CBI would not attract money from investors.

[icarusII]

Incarus,

Question is what is the anticipated or projected inflation rate, in your opinion or fact? The latest auctions has been in the range of 7%-10%. It is my feeling that this is the expected range of inflation just as it is reflected in our US T-bill auctions.

I didn't think about this until I reread this thread and after reading all the economic reports of the double digit high inflation that I remembered this data was available. If this is the case, then great strides have been made in reducing inflation!

Incarus or others out there including the Mods, what do you think? I feel inflation has been tamed their or else these rates would be much higher since the CBI would not attract money from investors.

According to the IMF report, Iraq is trying to reach 12% inflation for FY 2006. I think they can make it if they will live by the newly adopted "no-overdraft" rule by the CBI.

Icarus