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BatmaninIraq
02-24-2015, 03:38 AM
Experts: Central Bank faces the problem of the shortage of foreign currency and claiming to reassure customers


BAGHDAD / Ghazanfar Laibi - Amer supporter


Experts in economic affairs said that Iraqi banks began to suffer a shortage of liquidity in foreign currency (dollar), while the expected rise in the dollar's exchange rate against the devaluation of the dinar as a result of stopping the auction currency, grumbling banking customers of non-receipt of money deposited by the dollar, stressing that handed over the money Dinars expose them to significant losses.


The expert in economic affairs Ahmed Fahmy in an interview for the "long" "The decision to stop the currency auction can be exploited in a positive way by the Central Bank and the Iraqi government," noting that "the implementation of the resolution correctly is not easy, because we must limit the dollar and not to take it out of the market and thus strengthen the Iraqi dinar. "
Fahmi added by saying that "the central bank's decision can be applied correctly in case of spending pressure and reduce the affidavits and incidentals are not to the dollar significantly."
He pointed out that "the Central Bank to develop appropriate plans for the success of the decision," but he also said that "to stop the auction may have significant disadvantages, due to increased demand for the dollar, because the bank had pumped $ 50 million a day in the auction, which may make the dollar rises against the price of the dinar, which leads to the Iraqi currency affected significantly. "
He Fahmi said that "the main objective of this step is to limit the hard currency by the central bank, especially after twice the price of the dinar during the past few days," expected to "decline the central bank for its decision in the case of the Iraqi economy negatively affected due to stop the auction of the currency."
In the same vein, said an expert on economic affairs Maytham Laibi "long", that "the banks to take such measures in emergency situations when facing a shortage of liquidity in foreign currencies," noting that "the Iraqi banks started having these problems because of the reduction of central bank sales of the dollar ".
He also added that "the lack of distribution of financial dollar amounts have negative effects on customers and lead to an imbalance in the banking system, and weakens the confidence of individuals in the banking system and generates a panic, and lead to significant financial withdrawals, so the reserves become inadequate, especially since these banks operating funds of others do not owns that money, which leads to market instability, in addition to a state of non-confidence in the banks leads to citizens not to deposit their money in banks in the future. "
He called Laibi banks dealing in foreign currency to be "assured its customers, it can Tkst amounts customers, and that the money owed by banks and found that the Ptksatha possible for customers."
For his part, sees expert Ahmad Atwani told the "term" that "sudden decision carries a lot of risk to the Iraqi citizens and the economy in general," noting that "the central bank issued a decision on the pretext of its limited foreign exchange to finance foreign trade."
He Atwani said that "the decision was made to shift from exchange rate policy directed to a free exchange rate policy," stressing that "the new policy adopted by the Central does not fit in with the nature of the stage through which the Iraqi economy, because domestic demand for foreign currency (dollar) growing in the local market. " He pointed out that "demand for the dollar will appear in the parallel market for foreign currency, so the increase in cases of speculation and lead to a large fluctuation in the value of the Iraqi dinar, and the transition from the state of stability in the local currency, and this volatility will impact on the low standard of living of individuals through high commodity prices and services. "
The expert continued that "the decision to stop the currency market will create a huge gap between the prices of locally produced goods and imported goods prices, the central bank will not succeed in implementing the decision in a positive way, but if used in a strict policy controls on foreign exchange." In turn, Mohammed al-Hassani said, one dealing with the North Bank "The bank refused to hand over the money in dollars for clients with the bank for the second day in a row on the grounds that the bank no longer receives (the dollar) from the Central Bank of Iraq," noting that "a trader with a bank that has deposited his money dollar would be a great loss teams currency received his money when the Iraqi dinar. "
He added by saying that "the ordinary citizen is the biggest aggrieved of this process," calling on the central bank and the specialized agencies to "reverse the decision to cancel the auction currency because of its negative effects on the Iraqi market and citizens."
The Central Bank of Iraq (February 21, 2015) stop working ERA Bank and the adoption of the banking system as being responsible for foreign remittances.
The governor of the Central Bank of the relationship, in a press statement "was finalized a new formula and leave the old ways, coupled with certain conditions can not remain governor at the central bank, which has the functions and tasks and activities of a large and important for the national economy," noting that it is not true that remains central busily selling the currency like ATM daily basis. "

ChinaGirl
02-24-2015, 01:12 PM
this may force their hand - excellent

dinar_dude
02-24-2015, 01:16 PM
"In turn, Mohammed al-Hassani said, one dealing with the North Bank "The bank refused to hand over the money in dollars for clients with the bank for the second day in a row on the grounds that the bank no longer receives (the dollar) from the Central Bank of Iraq," noting that "a trader with a bank that has deposited his money dollar would be a great loss teams currency received his money when the Iraqi dinar. "

It's good to see Iraq finally address the issue of de-dollarizing in an attempt to force Iraqis to start dealing in their own currency. They have assumed the start would be rough, but at least they're starting.

ChinaGirl
02-24-2015, 01:28 PM
"In turn, Mohammed al-Hassani said, one dealing with the North Bank "The bank refused to hand over the money in dollars for clients with the bank for the second day in a row on the grounds that the bank no longer receives (the dollar) from the Central Bank of Iraq," noting that "a trader with a bank that has deposited his money dollar would be a great loss teams currency received his money when the Iraqi dinar. "

It's good to see Iraq finally address the issue of de-dollarizing in an attempt to force Iraqis to start dealing in their own currency. They have assumed the start would be rough, but at least they're starting.


So play this out ... US $ becomes scarce forcing Iraqis to use the IQD for transactions - supply and demand - value of the US $ rises in Iraq - IQD value stays stable ? Or initially drops then stabilizes - anyone see it rising permanently ? it will definitely see more IQD in circulation - not sure that equates to a rise in value - need to think this out ..... maybe I'm missing something ?

dinar_dude
02-24-2015, 02:05 PM
Not just the use of IQD in Iraq, but also potentially its use on the world exchange, under the "new mechanism" of foreign remittance. It's not clear how this is supposed to play out, and I think the Iraqis are watching cautiously as well. I think that with the introduction of the IQD to the world stage, we'll see its value rise gradually as it is traded.


So play this out ... US $ becomes scarce forcing Iraqis to use the IQD for transactions - supply and demand - value of the US $ rises in Iraq - IQD value stays stable ? Or initially drops then stabilizes - anyone see it rising permanently ? it will definitely see more IQD in circulation - not sure that equates to a rise in value - need to think this out ..... maybe I'm missing something ?

ChinaGirl
02-24-2015, 05:11 PM
Not just the use of IQD in Iraq, but also potentially its use on the world exchange, under the "new mechanism" of foreign remittance. It's not clear how this is supposed to play out, and I think the Iraqis are watching cautiously as well. I think that with the introduction of the IQD to the world stage, we'll see its value rise gradually as it is traded.

true...if it hits the FX market and day traders etc. can play with it we may have a winner.

40plus
02-24-2015, 07:11 PM
Not just the use of IQD in Iraq, but also potentially its use on the world exchange, under the "new mechanism" of foreign remittance. It's not clear how this is supposed to play out, and I think the Iraqis are watching cautiously as well. I think that with the introduction of the IQD to the world stage, we'll see its value rise gradually as it is traded.


I believe the original plan was to distribute large amounts of NID to various central banks as a foreign reserve currency, (which was done during Bush era) and when the NID goes up, all participating banks gain in reserve value. They are happy, and willing to keep these reserves to back their wealth, while Iraq now has adequate reserves spread throughout the world to back a higher value. Everybody wins.

When comes time to monetize, or cash in; governments can purchase oil with dinars they got basically for free, while Iraq has inherent value in their currency, along with cash flow at the higher rate for oil they get out of the ground regardless of the value of the dinar.

HumbleGenius
02-24-2015, 07:58 PM
Or ISIS has gotten its scummy hands on so much IQD the Country can not afford to keep handing out USD for stolen IQD to be laundered. I assume people realize Iraq will need to put out a new currency regardless of a lop or not, as a result of what is and has happed over there. That will probably be when the Kurds officially break off also. So now we are looking at an eventual currency exchange and nation split. Let the bashing begin.

Dinar_OS
02-25-2015, 12:53 PM
If they can make money doing it they will. A connection?

Exclusive: Iran smuggles in $1 billion of bank notes to skirt sanctions - sources

http://news.yahoo.com/exclusive-iran-smuggles-1-billion-bank-notes-skirt-145801586.html

ChinaGirl
02-25-2015, 05:48 PM
Ukraine doing the same - to raise the value of it's currency - could be a good sign in Iraq ... ??

Ukraine stops banks buying foreign currency for clients until Feb. 28

Feb 25 (Reuters) - Ukraine's central bank said on Wednesday it would prevent commercial banks from buying foreign currency for clients until Feb. 28.Ukraine's hryvnia currency has plunged this year, and also fell sharply in 2014, as the country tries to fund fighting against pro-Russian rebels in its east and reform an economy plundered by years of corruption. (Reporting by Natalia Zinets, writing by Elizabeth Piper, editing by Timothy Heritage)

http://www.reuters.com/article/2015/02/25/ukraine-crisis-banks-idUSL5N0VZ11I20150225

ChinaGirl
02-25-2015, 05:50 PM
More ... http://uatoday.tv/news/reuters-ukraine-stops-banks-buying-foreign-currency-for-clients-until-feb-28-411669.html

Ukraine steps up hard currency controls to support hryvnia
Ukraine's central bank stepped up controls on banks' access to foreign currency on Wednesday to try to stem the collapse of the hryvnia, preventing them from buying any for clients this week and limiting what they could buy for themselves.
The bank said in a statement that banks would not be able to buy foreign currency for clients "until 27 February 2015 inclusive" and that banks would only be allowed to buy foreign currency up to 0.5 percent of their regulatory capital.
Ukraine has scrambled to introduce restrictions on foreign currency purchases to try to stop a fall in the hryvnia, which has plunged about 13 percent over the last two days as an already fragile ceasefire in its east has all but unravelled.
Ukraine's budget is stretched by fighting against pro-Russian rebels in two of its eastern regions and, with only .42 billion in its foreign exchange reserves, the central bank has few tools left to try to stop the currency's collapse.
Full story (http://www.reuters.com/article/2015/02/25/ukraine-crisis-banks-idUSL5N0VZ16R20150225)

ChinaGirl
02-25-2015, 05:57 PM
So it looks like this is a method to raise the value of the local currency - Ukraine has a deadline - Iraq does not (that I've seen) - keep an eye on Ukraine's hryvnia to see if it rises accordingly ... interesting times -What works for Ukraine may work for Iraq .... time to dust off your IQD folks ??

HumbleGenius
02-25-2015, 07:24 PM
So it looks like this is a method to raise the value of the local currency - Ukraine has a deadline - Iraq does not (that I've seen) - keep an eye on Ukraine's hryvnia to see if it rises accordingly ... interesting times -What works for Ukraine may work for Iraq .... time to dust off your IQD folks ??

Hey CG, IMHGO it is a move in both countries to stop their currencies from plummeting and to see if there is any way to bring the value back to what it was days, weeks or months ago. (IQD back to 1166.) It is to stop the slaughter, not increase the feast.

ChinaGirl
02-25-2015, 07:59 PM
Hey CG, IMHGO it is a move in both countries to stop their currencies from plummeting and to see if there is any way to bring the value back to what it was days, weeks or months ago. (IQD back to 1166.) It is to stop the slaughter, not increase the feast.


Sounds bloody LOL ... a few weeks of this should tell the story - Chapter 4000 (Iraq - The textbook case)

HumbleGenius
02-26-2015, 05:41 PM
Or ISIS has gotten its scummy hands on so much IQD the Country can not afford to keep handing out USD for stolen IQD to be laundered. I assume people realize Iraq will need to put out a new currency regardless of a lop or not, as a result of what is and has happed over there. That will probably be when the Kurds officially break off also. So now we are looking at an eventual currency exchange and nation split. Let the bashing begin.

Thank you Rabee's for confirming my info. I try to tell the peeps on here ahead of time but some just won't listen.
"• In view of the money laundry and smuggling, the governor of the CBI decided to stop working in the currency auction and limit the work to the remittance system only, informed source from the CBI told Alforat.
• Turkey has agreed to provide a $500mn (600bn) loan to the Kurdistan Regional Government (KRG) to help pay the wages of state officials. According to a report from Daily Sabah, the loan will be repaid by either being set off from Turkey’s crude oil debts or being repaid directly by the KRG. (Iraq Business News)"