[tlm724] There are many crises experienced by the citizens and almost not be considered or counted, especially those that concern the health of citizens and life-threatening With the synchronization of the brutality of terrorism, innocent, growing after Altgieranv terrorism, food and health through imported food and medicine Almananthah effect
With the poor quality of materials there are some brokers of weak people who the introduction of goods in several ways tainted by bribery and buying accounts receivable, so find a lot of our markets full of goods, corrupt, and gettin bigger that between now and then you hear about goods corrupt imported by the Ministry of Commerce,
at a time that the Ministry of Health Operations burning and confiscation of Medicine corrupt find many Albesttiyat deployed in the eastern section and the holy door is stretched out on the pavement to sell the types of medications without supervision, but find it guarded by police detachments! machine to falsify history
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[tlm724] implement the tariffs/customs !! geez
[Shredd] oh they will very soon I actually have some thoughts about that as it ties to the rate changing
[tlm724] great !
[Shredd] ok, well, I think it's easily overlooked what effect the rate change will have on exports/imports, so I'll try to paint a banker's perspective of the effects of the coming increase in the exchange rate of the dinar.
We all know that an exchange rate is the price of one currency in terms of another, the rate at which one currency can be exchanged for another.
[Shredd] Exchange rates surface as an aggregate demand determinant because they effect the relative prices of imports and exports.
When exchange rates change, the relative prices of exports and imports also change, which causes exports, imports, net exports, and aggregate demand to change.
An increase in the exchange rate, that is, the price of buying foreign currency in terms of domestic currency increases, causes an increase in net exports and an increase in aggregate demand.
[Shredd] We also know that purchasing power will gain once the dinar regains strength. This means Iraqis will actually pay less for goods purchased from international producers (that is, exports).
As the dinar gains strength above the true rate of the dollar, Iraqi consumers are bound to buy more internationally-made products, causing imports to increase.
This is good for all of us internationally but is expensive to Iraq, but here's the thing....as Iraq becomes more and more multi-sector sufficient, imports will fall and as I just explained above....exports are rising, so that means net exports unquestionably increase.
[Shredd] What does that all mean? Well, with an increase in net exports, aggregate demand increases! Bottom line: The higher exchange rates cause an increase in aggregate demand.How ?
A higher exchange rate will discourage imports (reducing expense) and encourage exports (increasing revenue).
As Iraqi producers come into Iraq, they all know this beautiful scenario because they will face less competition from foreign products and export more production to other countries.
[Shredd] Lastly, investors putting their capital up front to invest in these producers (companies) love this scenario as well because the available spread for returns will be great.
Let's not forget that labor costs will be low for years to come so operational outsourcing will also be a contributing factor. This is what you call a win-win-win scenario!!!
[Shredd] ....add this to all the wonderful news around the banking sector becoming fully integrated, compliant and regulated primes the entire economic bubble! We are watching truly amazing history being made right before our eyes!
[Shredd] tlm724 that's all.....just wanted to shed some light on the rate and the effects of trading which ties into the news of WTO full membership and tariffs and just look how this will create revenue for Iraq
[tlm724] Shredd tyvm it's always great to get your perspective !
[Shredd] as they say, money talks..........Shredd - out