Ellie: 06/03/2013 11:28 Said former deputy Alaa al-Sadoun said the CBI was able to and during the past few years to maintain the exchange rate of the dinar against the dollar and have a cash reserve large reached $ 60 billion, which gave the Iraqi dinar stability reflected in turn stabilize the economic situation for the prices of goods and services traded.
It showed Sadoun in a press statement that "In recent times taken the dinar exchange rate is deteriorating against the dollar until it reached to 1320 dinars to the dollar after that was a long time 1170 dinars,"
ruled that "the central bank's policy is the reason for this is because it is still ongoing work in the same instruments of monetary policy and of the policy of open market (auction of foreign currency)
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and the imposition of interest rate on loans provided by the banks, a 6% and the imposition of a cash reserve on bank deposits is 15%, as well as reducing the rate of annual inflation from 50% to decimal one in recent years . "
Attributed the head of the Finance Committee in the previous parliament, "the reason why the deterioration of the value of the dinar to the smuggling of foreign currency abroad for the benefit of countries suffering from economic sanctions leading to be less than the amount of the supply of the dollar against the dinar and the quantity is not sufficient to cover the need for Iraq was the supply is less than demand in addition to the global rise in the price of the dollar against other currencies. "
It also called for "the solution to this problem by imposing real control over the dollar smuggling operation to the outside and put more effective controls and activation of the Money Laundering Act, a task does not fall only on the central bank, but also on the Iraqi government." LINK
Tlar: Attributed the head of the Finance Committee in the previous parliament, "the reason why the deterioration of the value of the dinar to the smuggling of foreign currency abroad for the benefit of countries suffering from economic sanctions
leading to be less than the amount of the supply of the dollar against the dinar and the quantity is not sufficient to cover the need for Iraq was the supply is less than demand in addition to the global rise in the price of the dollar against other currencies. "
It also called for "the solution to this problem by imposing real control over the dollar smuggling operation to the outside and put more effective controls and activation of the Money Laundering Act, a task does not fall only on the central bank, but also on the Iraqi government"
These two paragraphs describe the problem and calls for the proper fix laying the blame directly at Maliki's door. It's what we have known all along.
It says that the problem with the rate is the smuggling of the US dollars to Iran and Syria (does not mention them by name but describes them to a T).
It goes on to suggest that the amount of dollars being sold in the auctions are not ending up in the streets of Iraq where they are intended, but rather in these other countries leading to a deficiency in Iraq.
He also says in addition the US dollar has gone up in value globally against other currencies and that this also helped cause the difference in rates. He calls for the fix to stop the smuggling, adding the bank cannot do this alone but must have the help of the Iraqi government.
This is exactly what I have been saying. As long as Maliki continues to ignore the Iran's responsibility in this, Turki cannot solve the problem.
Only the government working in concert with the bank can they hope to solve this problem, because only the government can investigate and make arrests to break the Iranian chain of distribution.
Only the government can prosecute and incarcerate individuals. Only the government can pass laws to make those acting in concert with Iran guilty of crimes against the state.
Anybody on DA think that Maliki or the government will assist the bank? Maliki acts in just the opposite way. He has festered this situation by attacking executives of the CBI and banks in Iraq in stead of the violator causing this problem.. He refuses to call Iran out. Turki has few choices available to him.
People are calling for the auctions to stop. That's his only tool to support the dinar and abate inflation at present. With out the auctions he has no controls at all.
His only out, and I hope he is strong enough an individual to use it, is the exchange rate. It is his nuclear option which may cost him his freedom or even his life.
A bold move indeed but unless he drops this bomb, our investment remains in trouble and is being eaten away everyday that Iran sucks the life out of Iraq.
I would hope that the people on DA do not think I am an alarmist. I only right from my point of view. The box that the CBI finds itself in is a box where all the openings have been shut.
The only way out of this box is to blow it up IMO. The nuclear option is an absolute necessity at this time.
I hope it is even a real consideration for Turki because if not, it most likely will be an economic mess much worse than it is today and that will table the change of the currency for a long time to come, again IMHO.
BelievingInTheBest: tlar, I tend to agree with your line of thinking. Yet, it begs the question; If we can see this trouble and the damage it can do to Iraq and it's people, why have the UN and others large and powerful groups not stepped in and delt with the problem (Maliki).
If what we understand is true, those who have a big hand in this must understand what is going on as well. Or is there something else in play here that we are not finding that others are aware of?
While it is true that we all want stability in Iraq, long term will the actions we see on the many sides produce stability? I don't have the answers and am keeping my eyes open for possible clues to this riddle. Thank you for sharing your insight.
Carrello: I am going to be optimisticand say that I believe Maliki has been moved to the back seat and will not be driving this train any longer. We are drifting towards a new paradigm.
The Iraqis realize that Maliki and his ilk are a death threat for a new Iraq and have taken steps to move away from a dictatorship and state it openly and publicly.
Hopefully, their new voice will empower them to continue towards democracy and an honest environment.
There will always be corruption everywhere, but there are many as we have seen in Iraq that want to do the right thing for their countrymen.
Mr. Turki and the CBI have international support to move forward, and the the IMF definitively laid it out in their recent report. Let's hope Mr. Turki has an ace security detail. Thanks Ellie and Tlar!
Punisher: If Tlar sees what is going on right in front of Iraqs face, then the powers that be must see this situation as well. The fact that they are talking about it is good, but there must be action as well to go along with that talk....and I hope Turki acts soon because I know Maliki is trying to figure out how to get rid of him as you read this.
Pepperrub: Unlike our Federal Reserve, that typically ignores our government, the CBI appears powerless without government involvement. Maybe the mafia type harassment from incarceration and withdrawl of security doesn't help.
AdminBob: Al-Saadoun: smuggling foreign currency outward behind the deterioration of the value of the Iraqi dinar June 3, 2013, 10:49 am
The former Prosecutor, said Alaa Al-sadoun that the Central Bank of Iraq could last years keep the dinar exchange rate against the dollar and a significant cash reserve to $ 60 billion, which gave Iraqi dinar stable reflected on the economic stability of prices of goods and services traded.
Sadoun stated in a press release that the dinar exchange rate recently has seen a deterioration against the dollar to 1320 DT against the dollar, after a long period of time, and excluded the 1170 to be the policy of the Central Bank are the reason that he continues in the same monetary policy instruments,
namely open market policy (foreign currency auction) and the imposition of interest rate on loans from banks and are 6% and a ratio of cash reserves on bank deposits is 15%, as well as reducing Annual inflation from 50% to one decimal place in recent years
Chairperson of the Finance Committee attributed at the previous session of Parliament due to the deterioration of the value of the dinar to smuggle foreign currency abroad and for States suffering from economic sanctions, resulting in less amount of dinar and the dollar amount is insufficient to cover the need of Iraq, the show was less demand in addition to the global rise of the dollar against other currencies.
It also called for the solution to this problem through the real process control smuggling dollars abroad and more effective controls and the money laundering Act, a task does not fall on the Central Bank, but the Iraqi Government also. LINK
d6j8: I agree that Maliki is trying to figure out how to get rid of Turki as well. But I cant see how the world organizations would not intervene some how . You cant keep persecuting different CBI governors or the bank . I hope he has good security well
Punisher: This is how I think Maliki can get rid of Turki...at one point was there not a question of if Turki can occupi two positions? What is Maliki says he can be both the cbi governor and that other position he holds....