While we wait, I am going to clean up some of my old posts that point to nothing but a strong currency in this country. You all can be the judge if it will or will not happen, furthermore, you all can also decide if it is or is not in the budget. For all of the new members, and the ones with major doubt, start reading some of the supporting documents in my posts and you decide.
There are so many posts from so many other people that are seeking fame for predicting this and will do anything to get it, however I am doing my best to provide you with information from news articles combined with what has been shared to us so you can make your own assumption and judgment.
There has been many Iraqi budgets in the past in which we actually thought the rate would be in it. Many have spent hundreds of hours with detailed diagrams and we all were not correct. This has gone on for many years now. So what makes this different you ask? All of the budges in the past pretty much ran from one to the other and there was no real urgency to complete them.
Read More Link On Right
This is the first time that I am aware of, and please correct me if I am wrong, but they actually officially closed the budget and all accounts within for the 2012. I have never seen it reported in the news for any previous years budgets.
Now that this budget was closed, they (Iraq) could not start disbursing monies until the new budget was completely approved by the government. I have never, ever seen this much focus on such a thing. Another event I have never seen was the in 2012 they found a surplus and added it to the 2013. This was never done before.
There is so much focus on the budget now that something special is going on and they are treating it very different. I guess you can all make your own assumptions as to why. Another statement that keeps popping up in the news, many leaders are stating they want and need a strong currency. So you all can be the judge of what strong is. I will tell you that .00086 to the USD is not all that strong.
The list goes on and on. Time will tell.
I guess it would be fair to say, until the official rate is posted in the CBI website we wait and see who has provided the most accurate information and I will leave it at that.
Please feel free to ask any questions about these topics and subjects and I will respond as time allows.
There are many trying to predict a rate regarding the Iraq currency change that will take place in the near future.
I would like to share again for all of the new members that have recently joined, and a refresher for those previous members.
Classification of Exchange Rate Arrangements and Monetary Policy Frameworks
January 31, 2012
If you recall the IMF guidelines set forth, called "Classification of Exchange Rate Arrangements and Monetary Policy Frameworks", dated June 30, 2004, we talked about the restrictions. Remember that?
I said a currency cannot change more than 2% every 90 days for a period of two years.
So, under Exchange Rage Regimes, sub paragraph Other Conventional Fixed Peg Arrangements it states the following:
The country (formally or de facto) pegs its currency at a fixed rate to another currency or a basket of currencies, where the basket is formed from the currencies of major trading or financial partners and weights reflect the geographical distribution of trade, services, or capital flows.
The currency composites can also be standardized, as in the case of the SDR. There is no commitment to keep the parity irrevocably. The exchange rate may fluctuate within narrow margins of less than Â±1 percent around a central rate-or the maximum and minimum value of the exchange rate may remain within a narrow margin of 2 percent-for at least three months.
he monetary authority stands ready to maintain the fixed parity through direct intervention (i.e., via sale/purchase of foreign exchange in the market) or indirect intervention (e.g., via aggressive use of interest rate policy, imposition of foreign exchange regulations, exercise of moral suasion that constrains foreign exchange activity, or through intervention by other public institutions).
Flexibility of monetary policy, though limited, is greater than in the case of exchange arrangements with no separate legal tender and currency boards because traditional central banking functions are still possible, and the monetary authority can adjust the level of the exchange rate, although relatively infrequently.
STEVE: So, why in the world would Iraq want to change their currency to a level they could never achieve with respect to currencies close to the region?
This is why I would like to put to rest the $1.00 rate now. I will update this post in a few minutes with more documents.
Baker Jaber AL Zubaidi: Iraqi Dinar Value should be Raised
November 30, 2010 Al-Sabah - [6/29/2006]
The Ministry of Finance together with the Central Bank are studying a proposal to raise the value of the Iraqi dinar in order to return it to previous levels where one Iraqi dinar was valued at 3.33 US dollars. This was pre 1980 before Iraq became involved in three destructive wars that at one time led to the currency's value dropping to a level of 3,000 Iraqi dinars to one US dollar. The proposal has the support and approval of the World Bank.
A statement by B.J. AL Zubaidi, the Minister of Finance, in which he said that he had suggested to the Chairman of the Central Bank, Dr. Sinan AL Shibibi, that three zeros be taken from the Iraqi Dinar in order to raise its value so that one Dinar be equal to a Dollar. He explained that the financial authorities were set on holding a meeting next month to discuss the matter. The meeting is to be attended by experts and specialists from the Ministry of Finance, the Iraqi Central Bank and the Commercial Bank .
The new Minister confirmed that 2007 would see the preparation of a qualitative budget, the first of its kind in Iraq history, and that the new program would pinpoint economic indicators.
First would be the December 31 article called: Economist: delay approving the budget would reduce the incentive for private sector investment <-- PD Link
Recap of that article:
Financial expert warned Hamad Bashir Alwan of the delay in approving the budget for the financial Szbbh to reduce the incentive for private sector investment in the country.
He warned of the delay in approving the budget more than that causing a reduced incentive for the private sector to invest in the country, which generates therefore prevail has the spirit of pessimism because the investor is always looking for opportunities for profitable and safe if not fired budgets they certainly will expect that there is nothing will reduce the motivation for investment,
indicating that there is another negative aspect is the low levels of income for all segments of society because the budget allocation process is a way to enter the government as that government spending is part of the application which is a special and spend a year, which in turn is divided into consumer and government spending and investment in particular.
STEVE: Secondly would be regarding need for re-evaluation of the Iraq currency. Back in February of last year, Maliki's quote was "The Iraqi dinar has all the reasons to grow stronger thanks to an increase in revenues and development of the economy,"
Recap of that article:
The Iraqi dinar's exchange rate is suffering from low value against foreign currencies as a result of decades of wars and economic embargo that brought the local currency's exchange rate to the rock bottom from three dinars per dollar in the late 1970s and 1980s to 3,000 dinars per dollar after the 1990 invasion of Kuwait, followed by a 13-year crippling sanctions regime.
STEVE: Lastly, we have this new article dated December 31 where Maliki is quoted "We have no restrictions on their [foreign investors] entry. We want them," Maliki told The Wall Street Journal. "We need speed. We need money." <-- PD Link
Recap of that article:
Maliki last year gave the nod to a series of oil deals aimed at boosting the country's oil production to more than 12 million barrels of crude oil per day in less than a decade. Exports and production, however, are limited in part by a lack of infrastructure at southern ports and a slow-moving political system.
Oil production has lingered at around 2.5 million barrels per day from Iraqi fields for years. Maliki said four new oil-exporting terminals off the coast of Basra, however, could push Iraq's export capacity past the 3 million barrel mark by September, a first since the U.S.-led invasion of 2003.
CBI Consultant: We seek to restructure the currency December 1, 2010
Baghdad (news) .. An advisor of the Central Bank Mzarsaleh that the bank is seeking to restructure the currency to suit the economic development., â€œSaid Saleh (of the Agency news) today:
We will resort to the restructuring of the currency to suit the new situation and economic progress, noting that the currency is growing day by increasing Alatnag and economic progress, not because of inflation and release as before.
He added: that the value of the Iraqi dinar escalate, and this rise has achieved a major goal in addition to the purchasing power of the dinar rose to the value of imports.
Saleh explained: Ann's central bank plans to maintain the value of the Iraqi dinar and the essence of monetary policy, which we have adopted the stability of the overall level of prices.
Salih noted that the exchange rate the Iraqi dinar and foreign currencies is the external value of currency, where the value of internal and external value, explaining: the external value is important for the economy of oil-exporting countries and importing of goods of the many, as we believe that monetary policy is part of the targeting of inflation and raise the purchasing power of the Iraqi dinar .
I will keep adding to this as I clean it up. Not all formatting is working properly on this new system. Blessings, Stevel