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Dinar Updates Monday AM Chat 8-29-16 Part 3 of 3
Society says to Holly1():I believe they are saying the dinar is enjoying increased purchasing power solely as a result of the increased USD value and are fearful if the USD drops, so will the purchasing power of the dinar causing increased inflation.....if they peg to a basket, the effects of individual currencies against the value of the dinar are minimized.......
Holly1 says():Karbala news # After Abadi approval for secession .. Barzani to visit Baghdad http://fk-news.com/59097-.html
SRW says to Society(): agree!!
david334 says to Society():but not at .0005. Thats a difference that makes no difference
Society says to Holly1():Remember, they are talking world economics not specific value ie 1182
Holly1 says to Society():I KNOW FROM WHAT THE IRAQIS HAVE SAID .. THE NEED OF PURCHASING POWER IS A NEED FOR THEM ... VOICES ARE BEING HEARD FOR ONCE IN IRAQ ..
david334 says to Society():I disagree that those communications were academic at this point
Society says to david334():No.....the USD has gone from approx .6 to .95 and the dinar has been pegged to it and has also therefore enjoyed increased value
david334 says to Society():It has moved up on a percentage basis a lot but going from .0008 to .0004 is not relevant to the relative economic value. The relative metrics are so out of whack unless u believe Iraq is disapearing the currency is grossly undervalued and the dollar overvalued
Society says to david334():If it takes less USD to purchase items now that the USD has gone to approx .95, it also can be concluded that it takes less dinar since pegged to the USD........however, if the USD value decreases, so will the dinar right along with it and thus result in inflation increase
david334 says to Society():How does inflation go up because of a decline in dependence on imports. Increasing domestic production increases income
david334 says to Society():Prices get reset to relect a valuation change thats the baseline. S&P said domestic demand was on its butt because of ridiculously low rel PPP
david334 says to Society():Take your bearish view and buy US treasuries
Society says to david334():Look at it another way, the Iraq economy predominayely functions on USD and imported products are bought using USD which is what necessitates the auctions to allow USD to enable their economy to function.....they are able to purchase more with less USD now that the value of the USD has risen sharply....
david334 says to Society():i dont care
david334 says to Society():The dinar has suffer from PP because of the us dollar with the decline in oil which is priced in $$$$
SRW says():My thinking is more in the middle of both of these comments. The dianar is valued at this time at 1182, so that is the what it is to purchase goods and it takes a wheel barrow right now to purchase anything with the dinar. On the other hand, if you use the dollar the purchasing power is greater and you don't have to carry a burlap sack to carry it in. Iraq needs to increase the value of their currency to help the people have a higher value of their currency.
Society says to david334():I was addressing the positions of the "friends" of Holly stating the dinar value has risen and that Kuwait pegged to a basket not just the USD......Their statements, not mine....
Society says to SRW():Agree,,,but apples and oranges as to the "friends" of Holly comments we were addressing
SRW says():I said currency at the end and I meant to say, for purchasing power. My Bad!
Society says to SRW():As to the wheel barrow, the 50,000 and 100,000 change that if available and they have liquidity.....however, liquidity has been noted as a problem repeatedly in many articles
larrykn says to Society():I believe the true reason for those larger notes is to lower the note count before they bring out the lower notes an change the value
Society says to larrykn():AGREE!!!!!!
larrykn says to Society():which all will take time, removing the higher notes will go on long after they change the rate
larrykn says():I think the ecards will bring in the mattress dinar, which will help with liquidity
Holly1 says():The central bank is selling foreign currency window "and a way to ensure stability , " the dinar exchange rate
Holly1 says():Counting the Iraqi Central Bank, on Monday, that the sale of foreign currency window "and a way to ensure stability," the dinar exchange rate to meet the Iraqi economy requirements, while assuring "a greater role for" government to buy and sell the dollar and the development and auditing of funds used sources for banks for the purpose of buying foreign currency.
Society says to larrykn():They have had different versions of electronic cards for years and it hasn't.......the people don't trust the banks....the changes in banking laws and protections may help but ultimately, I believe only a rate change will bring in the chunky mattress money
SRW says to larrykn():Would you take your money to a bank if you thought the value was going to change?
Holly1 says():The central bank said in a statement received (range Press), a copy of it, that "Commenting to issued opinions about the work of selling foreign currency window of the Iraqi Central Bank wishes to state that,
sell the currency window is a way to ensure the stability of the dinar exchange rate over the meeting of the Iraqi economy requirements through foreign currency provision to cover the imports of the private sector goods and services, in addition to the needs of citizens for the purposes of travel, medical treatment, study outside Iraq, "stressing" the lack of any allocations in the budget since 2003 and so far for this purpose. "
Holly1 says():He added the central bank, that "work on the development of its procedures in this regard by encouraging banks to adopt opening letters of credit mechanism for import rather than remittances style," noting that "the proportion of sales in a manner credits amounted to more than 70% of foreign currency sales."
Society says to SRW():Yes, if protected.....however, the ME mentality is not the same
Holly1 says():He said the Iraqi Central Bank, that "the development of a fundamental criterion for the implementation of dollar selling operations to banks include the extent of its commitment to the rules to combat money laundering and financing of terrorism,"
referring to "the adoption of the preparation and application of standards for the electronic system for window sale and purchase of foreign currency (money orders), and a greater role for government banks for buying and selling the dollar and the development and verification sources of funds used for the purposes of buying the dollar from the sale of foreign currency window. "
larrykn says to Holly1():ty for the news :)
SRW says to larrykn():Duly noted and the people don't trust the banks!
larrykn says to SRW():no they don't but I think they are learning things are changing and the banks will be a lot safer now. IMO
Society says():"....Iraqi economy requirements through foreign currency provision to cover the imports of the private sector goods and services....."
Pablo says to Holly1():Do we have a timetable for when they are going to eliminate the dual currency practice?
larrykn says to Pablo():when they do that we will see a revalue of their currency, now I don't think they will tell us when they will do that do you
Holly1 says():Ammar al - Hakim added 2 new people like photos
Society says to Pablo(): YESSS!!!!.......IMO......Before getting any further loan installments which they state they will receive two more yet this year
Holly1 says(): Through receiving Parliament Speaker Salim al-Jubouri, and a number of leaders of the labor union, we emphasized the importance of political calm that start from the dome of the parliament to go into battle to liberate Mosul, and the importance to promote the House of Representatives in turn, regulatory and legislative,
and let us to apply the rules of parliamentary behavior, consider the demand electoral collect two practices in one day, and reducing the number of members of the House of Representatives and members of the provincial councils.
larrykn says to Society():good point
Holly1 says to Society(): (F) TY FOR YOUR THOUGHTS :)
Holly1 says(): During our meeting the parliament speaker of Iraqi House of Representatives Mr. Salim Al-Jubouri and a number of political powers leaderships, we emphasized on political equanimity that start from the parliament dome to prepare for the Mosul liberation battle,
and to promote the regulatory and legislative role of the Parliament, we urged to app the rules of parliament conduct, and consider to combine the upcoming two electoral practices on one day, and to decrease the number of members in the Iraqi House of Representatives and in provincial councils
Pablo says to Society(): Ahh, interesting. Thanks. When were they supposed to get the first installment?
Society says to Pablo(): They can't stop MCP without either expanding the money supply of IQD (contrary to all their actions so far) or changing their rate.....until that time, the IMF has actually encouraged freeing up access to foreign currency to maintain the IQD market rate
Pablo says to Society(): Okay, thanks.
Society says to Pablo():They received 600+ million I believe in June but further disbursements reportedly will not occur until all economic reforms are activated
Holly1 says():Tomorrow Press - "Tomorrow's Press," published the text of the border crossings Commission law
Holly1 says(): Iraqiachannel North Korea threatened on Sunday to transfer American troops to «ashes» in response to criticism from the UN Security Council on the missile programs, the Security Council condemned last Friday , Pyongyang 's missile launch, and agreed to take a «significant actions», two days after the launch of a ballistic missile by a submarine after North Korean.
And prohibit the Security Council resolutions on Pyongyang 's development of its missile program, but North Korea 's missile tests has doubled since the fourth nuclear test in January last year. He described a spokesman for the Korean Ministry of Foreign Affairs Northern Security Council statement that «the production of American bandits»,
the spokesman said: The «Washington currently pose a threat to the dignity of North Korea and its right to exist, ignoring warnings, and continue to take a series of measures as a military force», was quoted by state news agency quoted the spokesman as saying that «
North Korea has a great potential to transform the aggressors to ashes in the American territory and areas of operation in the Pacific », and it was North Korean leader Kim Jong-un said last Thursday that the ballistic missile launched by the country's submarine-shaped« great success »,
he said, that the US mainland and the Pacific become «within range strikes» North Korea's military, and the missile was launched from a submarine off the coast of Port Sinbo, and passed 500 kilometers off Japan passing distance beyond any previous experience missile from a submarine
Holly1 says(): Haider Al-Abadi Prime Minister Dr. Haider al-Abadi receives a delegation from the Kurdistan Regional Government headed by Mr. Nechirvan Barzani
Pablo says to Society(): Yes, that rings a bell.
Pablo says to Society(): Do they need to finish up wit Mosul for that to happen?
larrykn says to Pablo():what I've been reading Mosul is about to be finished with very soon
SRW says to Pablo():I think Mosul is near or at being liberated from ISIL. Abadi is waiting to announce this for a reason. There are issues that need to be finalized in Parliament first!
Society says to Pablo():No one knows whether Mosul or anything else needs accomplished
Holly1 says(): Iraqiachannel Issued a Supreme Judicial Council, the instructions on the application of the amnesty law, which was recently passed by the House of Representatives.
The instructions issued on the formation of six central committees at the headquarters of the Federal Judiciary, take it upon themselves to consider the verdicts of the criminal courts and the courts of misdemeanors peremptory in regards to the crimes covered by the provisions of the amnesty law
Holly1 says():. It also included judicial instructions too, considering the papers and proceedings for detainees and detainees and defendants sent from the security and military agencies in a number of cases, of which »the signature of the detained more than three months in detention and was not presented to the court, and the signature of the accused more than eighteen months in detention have not been the resolution of interrogation procedures. [33 more words]
SRW says to david12():This can give a person a headache if they think about it too much! Who knows what really needs to be done before a value change?!!
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