Tlar & Member Discussion On CBI Part 1
Iraqi News & Articles > CBI: We Will Cancel Legal Process
Brule Central: Iraqi dinar hard currency --
9/2/2015 0:00 Despite the slight rise in the dollar exchange rate BAGHDAD Mostafa Hashemi
caused Article 50 of the Budget Law for 2015, confusion evident in the dollar's exchange rate against the dinar, while the Governor of the Central Bank economist counting this article to intervene in the work of an independent institution.
He said the central bank governor Acting Dr. Ali Keywords that this article surprised us and we will seek to cancel the legal process.
He said in a statement the "morning" that there are efforts to create monetary stability would return check for investment and increased purchasing power, stressing the central measures will keep the Iraqi currency is difficult in every sense currency
He noted that the identification of the Central Bank and shall be obligated to sell $ 75 million a day in the auction is not possible, stressing the quest for the issuance of treasury bonds in dollars and for a definite period, as it will contribute to the achievement of stability.
He pointed relationship to the Central take new procedures through the opening between him and the concerned banks and at all levels to get to some of the methods that aim to create instability.
For his part, economist Dr. Hilal Taan: Article 50 of the Budget Law contributed to the rise in the dollar exchange rate in the home to more than 125 thousand after it was 122 000 dinars per hundred dollars.
The in Article 50 of the Budget Law for 2015, "the central bank is committed to identifying sales of foreign currency (dollar) in daily auction ceiling does not exceed $ 75 million a day with the exercise of justice in the sales process."
He added, Taan told the "morning" that this material can be necessarily be considered as interference in the work of the Central Bank, which is an independent institution under the Bank 56 Act of 2004,
where he was the central selling daily amount between 250 to 300 million dollars to keep pace with the open market policy, which represents one of the instruments of monetary policy.
He said that after that ensures the budget law materials; fifty-bind the central bank sold $ 75 million just in the day led to a lack of supply with an increase in demand which led to a rise in the dollar price.
On the possibility of appeal in this article explained Taan it after it became effective the law has no right except for the presidency challenged Almaldh 50 of the Budget Law because the sale of $ 75 million in a market that accommodates 300 to $ 400 million would definitely lack in the supply and increase the growing demand for bringing the dollar exchange rate, describing it as a procedure is not true.
He pointed out that forcing the bank to sell a fixed amount per day without taking into account the demand in the the domestic market, leading to exchange rate fluctuations.
He explained that the sales problem is not foreign remittances, but at home, where the local currency bloc too big of 35 trillion dinars in circulation, a haunt of $ 75 million, and for us to imagine the rise in the dollar's exchange rate.
saw Taan that The only action is to increase the amount of supply to 150 million, as well as to tighten control over smuggling ports that may be through government banks or civil control over foreign exchange and not reduce the quantities sold to the interior.
The central bank's shares to reduce the dollar exchange rate to acceptable rates ranged between 115 and 120 000 dinars after the dollar corresponds to about 4000 dinars before 2003.
CASHMONEY So funny I keep reading from "other" members how there is only 3 or 4 or 5 trillion in ciruclation but right here once again it states there is 35 Trillion in circulation!
Big difference..... and that money in circulation number is the thing that separates this from actually happening or not! Clearly some people have no idea what they are talking about or the CBI is just flat out lying! which one is it?
mike On top of that, the street rate is 1235. It doesn't appear that the CBI and the GOI are working together on monetary policy.
--" We are all born ignorant, but one must work hard to remain stupid "Benjamin Franklin
Brule CashMoney, I don't believe the bank is publishing real numbers, and Tlar just went through that in his most recent post. I would be questioning why are they releasing any numbers at all.
UofIGuy There is plenty suspect with this article.
Tlar CASHMO, the 35 Trillion is a stock number that is used over and over by the news agencies. The news agencies in Iraq don't know the number circulating much less have an understanding of the difference between circulating and non circulating dinar.
The CBI doesn't publish this number and therefore the only number the news agencies have ever used has been the number that the CBI shows in total, of released dinar (out).
They should state it as such which means all dinar out but continue to miss describe it as circulating.
The CBI ONLY releases on their website the total number of dinars out.
Only once was it ever mentioned how much was circulating and that was Saleh in early 2012 when he told us that there were 4 trillion circulating. At that time he said this, the CBI stated on their website that 30 trillion dinars had been released.
In August 2013 or sometime around there, the CBI printed the replacement notes the 250, 500, 1000, 5000, 10,000, 25,000. They had decided to print these notes and replace the existing notes in circulation to protect the currency from state sponsored counterfeiting.
These newly printed notes had all the new security features injcluding braille for the blind.
They announced they would begin swapping notes as they came into the banks in Jan of 2014 starting with the 10,000 dinar note.
The CBI announced that they only printed 5 trillion dinar to replace the existing 2.7 billion in USD equivalent circulating dinars, which I saw as more verification of Saleh's statement in 2012 of 4 trillion still circulating.
By January of 2014 the CBI estimates of what was circulating, 2.7 billion USD equivalent, was at least a trillion dinars less than what Saleh had told us in early 2012 which means the total had been reduced by a trillion through dollarization.
The CBI would have printed more than they needed because it cost them ink and paper only until it is released as currency from the CBI, and no bank would want to run out during the switch out process. The CBI would have a pretty good idea of what their needs are and what the circulating dinars are.
So I have learned to ignore whenever a news article comes out stating 30-or 35 trillion because I know full well that that number includes all dinars, yours, mine, and dinar held in central banks around the world. By definition of the CBI 35 trillion is all dinars circulating and non circulating.
The non circulating dinars are not to be confused with circulating dinars because your dinars are not circulating and neither is mine nor is any dinar held by banks around the world. I hope this helps. tlar
hi-five I'm thinking the CBI won't move on the currency change until they deal with Article 50.
Jb But Tlar, come payoff time, doesn't Iraq have to honor all the dinars out there, circulating or not. Whoever comes to the bank with dinar is gonna want real money, or am I just flat wrong about that assumption.
Big John Anyone who was in this investment back in early 2012 remembers Saleh's statement. Thank you Tlar for reminding us of the facts. Your patience for restating these facts over and over and over and over again speaks volumes.
Tlar Jb, I wrote a lengthy reason but my computer found a reason to erase it all. Quite simply the answer to your question is no. They only have to cover circulating currency. Since I type with one finger only, you will have to pardon me for not retyping the reason. I will do it later today. tlar
revenuerog I'm thinking, based on what Abadi said in his speach, that nothings going to happen until Daash is out of Iraq...
GiJane If security was an issue, why did Abadi open the streets and lift the curfew this weekend?
Jordan claims 7000 Daash killed, and there was about 30K in total. US ground forces going in with allies, so IMO Daash isn't an issue.
Get the laws passed and continue to dry up the 000's and bring in the USD. Smart cards ramped up, and those ATM's don't process old notes.
Rockstar TLar is correct on this, they only have to cover the circulating currency inside Iraq. If they had to cover everything they ever printed than sell out now we would all be screwed IMO.
KJWayne I hear the FAT LADY warming up her vocal chords!
HandOverFist think I hear her too! :)
revenuerog mee mee mee mee meeee (gargle) fa fa fa fa faaa (cough) fo see la tee dooo....
Aloha Alex Well Aloha and good morning my special dysfuntional internet family! I am ready...hit me with the hype du jour...what is it today? :lol:
Actually, this whole week should be interesting and fruitful. Why? Because Abadi said so, not Malaki! Let's get this pony a'trottin. --You can preach a better sermon with your life than with your lips.
Kimberley Once again, I'm bucking against the thread.... But there is a huge difference in between the amount in circulation (as equivalent in dollars) As the amount of "notes" in circulation....
We have seen several article where Saleh has said they will reduce the 4 billion to 1 billion..... That is 'notes' not the total amount in value, (perhaps 35 trillion)
We saw several articles, where the CBI said they could cover the 'value' of the dinar (35 trillion) by 1 and half times, and we know they have approx, $70 billion (value) in reverses.........
Supply and demand is based much more on 'note' count, than it is on value amount....
We have seen for 2 years, that the 'notes' themselves are limited, being 10 yrs old (worn and torn)
But I completely agree,....that they are only concerned with the notes (approx 4 billion) circulating in Iraq itself....
The rest of the notes will stay in the foreign reserves "for a long time" , said Shabibi.....
These are my thoughts.......K
DreamWeaver Really appreciate you weighing in on this topi, Kimberley, as IMO your's was great post. No surprise there, though. It's exactly the type of post I've come to expect from you.
Clarifying the difference between number of notes and value of those notes was excellent point, explained well. Thank you. ~ DW
Schiz Jane, unfortunately ISIS still hold Mosul, that in my eyes is not a good definaition of security. Baghdad is secure but the rest of iraq certainly isn't.
We can't be far off the big push through now. here's hoping Jordan put trops on the ground to help with the assault.
I'm pretty sure if we didn't have morals and just turned our backs and Jordan got permission they would just flatten every city that isis hold and wipe them all off the face of this planet. Wish they would, kinda
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