Tgirl: Bankers confirmed the Central Association and the quest to reach the natural rate
BAGHDAD - Hussein of Tamimi
Association of Iraqi banks confirmed its continuing quest to reduce the exchange rates of the dollar against the dinar, through the mechanisms of joint cooperation with the Central Bank of Iraq, where organized daily meetings between representatives of the private banks and specialists in the central bank.
The head of the Association of Iraqi banks Adnan Chalabi, in an interview (morning): that the initiative of the Association of private banks at the invitation of private banks to reduce the dollar exchange rate contributed to the decline gradually exchange rates, although relatively,
pointing out that the mechanics work painted with by the Central Bank and the Association heading access to the exchange rate of the dollar against the Iraqi dinar to normal rates.
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Cooperation Association and the Central
He added that the three banks have responded to the call and began Association since last week to sell the dollar to citizens at 1183 instead of 1189, pointing out that the banks of Assyria, Baghdad, and Huda responded to the calls launched by the Association in collaboration with the Central Bank of Iraq.
He pointed out that 25 banks waged an extra start this week to sell the dollar new price (1183), and thus the number of private banks, which reduced the dollar exchange rate (28) banks, pointing to higher this figure even further to include all local banks and branches of banks operating in the country .
The stability of the financial sector
He Chalabi saying: that the stability of the financial sector need to achieve economic development, and that any problem taking place in the banking sector civil adversely affect the overall economic process, reaching impacts to the prices of goods and services related to the economy of the family and contributes to the rising dramatically,
stressing that the private banks have working relationships with international banks and the World Bank and that any defects or problems are traded through the media inaccurately affect this relationship and makes those banks reconsider Bmassarva of the private.
He pointed out that the negative effects do not stop at this point, but up to the investment sector where you find that the capital looking for a sector money stable could provide great services to investment companies, especially as the country in dire need of the efforts of specialized international companies to implement projects strategic large in all provinces country.
The Executive Director of the Association of private banks in Iraq, Abdul Aziz Hassoun said that the initiative to reduce the exchange rate of the dinar against the dollar is the first and will be followed by new initiatives in collaboration with the Central Bank of Iraq in order to support all economic sectors.
He pointed to the importance of concerted efforts to stabilize the exchange rate of the dollar, which requires that the media more active role in the transfer of the facts about the mechanisms of action of private banks in the country,
pointing out that the banks civil economic asset must be preserved, and it operates under the Central Bank, Indicating that the private banks entered the field dollar selling prices in order to reach natural for the disbursement of the dollar against the Iraqi dinar.
He pointed out that private banks are the infrastructure of the local economy, pointing out that they broker through which the process of foreign exchange in accordance with requests of Commerce, which employs to import various goods, which requires follow-up merchant who requested the money,
because the private banks operating under the Central Bank that benefit transfer money and claim permits the entry of goods merchant and merchant here who is responsible for Securities provides.
I think the adoption of the portal, which is a remedy for the confusion in the process of winning money transfer business because he accomplished in a short period of time where you can link between all the relevant departments of Customs, taxes, and other banks.
As a member of the Association of private banks in Iraq and Wadih Handal noted that the initiative confirms that private banks support the stability of the exchange rate to activate the reality of their work, pointing out that most of the private banks have dealings with the largest international banks
, including Citibank and obvious Morgan and other banks with international reputation, as Light the World Bank channels with private banks, and this in itself requires the banks to organize their work and strive to develop the mechanisms of action and reach out to the world in the provision of services.
Lifting shares of banks
He said the central bank has promised to lift quotas banks of the dollar civil initiated by banks to reduce exchange rate (1183), where it comes from the door of activating cooperation between the two parties.
He pointed out that the sale of the dollar to the citizens not specify a timeframe but continuously ceiling to get to the normal rates for the exchange rate.
The representative of the Central Bank of the supervisor of the sales process Mohamed Mohsen pointed out that the sales process at the Bank of Baghdad, one of the banks that reduced selling prices in a transparent and as instructed by the central bank, did not indicate any irregularity to the day after the adoption of the new mechanism, is also selling the dollar in isolation from sections bank a positive step, do not confuse the services provided to the customer.
He noted that the receipt of applications and the announcement of the names by tables systems the process of selling the dollar and make it go smoothly high.
-I report...you decide.
Xxxx xxxx: 25 more banks selling at the lower rate I like it. What this means to me is a lower street rate since 3 banks had an impact on the street rate think about it like this the math I came up with was 10 dinars off the rate for one day so maybe we could see a 250 dinat rate drop at the highest point & 100 as a low for one day of a lower sales rate from the banks. So IMHO we could see a street rate lower than the programed rate with in 2 or 3 days.
mok45: Like this bit Global transactions "...and this in itself requires the banks to organize their work and strive to develop the mechanisms of action and reach out to the world in the provision of services."
Punisher: Glad the c.b.i. stuck to their words and are acting. Imagine what it could be by the middle of July or August.
OutOfTheWoods: "million and 87 thousand dollars, after it reached yesterday, 210 million and 524 thousand dollars, a stable exchange rate was 1166 dinars per dollar.
The governor of the Bank and the Agency Abdul Basit Turki in a press statement that "the demand for the dollar distributed by 25 million and 850 thousand dollars was sold in cash, while the value of the amounts sold form of remittances 176 million and 237 thousand dollars, select the price to 1179 dinars per dollar, and the purchase price cash for $ 1171 dinars. "
and added, "participated in the auction currency today 22 banks waged, and ruled out the amount of 78 million and 916 thousand dollars of banks participated in the auction, for the purposes of auditing and other related to combating money laundering, as well as various other reasons."
The Iraqi central bank held six sessions a week for auction sale and purchase of foreign currencies, starting from Saturday to Thursday." http://www.almadapaper.net/ar/news/446441/5x5
"Faith consists in believing when it is beyond the power of reason to believe." Voltaire
Kaperoni: This article seems to imply that these new measures have more of a purpose than to just reduce the exchange rate in country. It appears that this is an.. "exercise" in preparation for the dinar going international. Here is a quote....
"...the initiative confirms that private banks support the stability of the exchange rate to activate the reality of their work, pointing out that most of the private banks have dealings with the largest international banks, including Citibank and obvious Morgan and other banks with international reputation, as Light the World Bank channels with private banks, and this in itself requires the banks to organize their work and strive to develop the mechanisms of action and reach out to the world in the provision of services."
WEDREAM: He noted that the receipt of applications and the announcement of the names by tables systems the process of selling the dollar and make it go smoothly high. another indicater this is about the "mechanism" to coordinate banking activity(they all need to be on the same page b4 the float begins)
Punisher: Good stuff Wedream.
Enorrste: I agree completely with KAP's analysis. The quoted passage above hings on the meaning of "activate the reality of their work."
This phrase can be easily understood because just below it is the phrase "requires the banks to organize their work and strive to develop the mechanisms of action and reach out to the world in the provision of services."
We can therefore understand their "work" to be the development of mechanisms to facilitate worldwide commerce. What would do this?
A freely floating currency would certainly be a part of the process. Therefore the "mechanism" that they say they need to "develop" is to get the free float off the ground as soon as possible.\ Great work, KAP! Enorrste
Punisher: Thanks Kap and Enorrste! As if there wasn't enought to be excited about already this week (Ch7)!
Kaperoni: Thanks E! Good stuff as usual. Let's hope we are right and all this June currency stuff is in anticipation for the dinar coming out party.
Rasica: FYI I have been watching the S Korean Won & IQD for a long time now. Generally the rounded up nominal value of the two have been $.0009 and their exchange to USD has been generally 1100 for WON & 1160 for IQD.
But as of midnight the WON has now suddenly went lower than the IQD @ 1165.5. The Won was always fluctuating right around 1100 so this larger move is worth noting. I have no idea if it means really anything, but at the least its interesting.