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Tink: 8 | Currency and Price Stability
The government’s monetary policy since 2003 has focused on maintaining price stability and exchange rate predictability. The inflation has remained in the low since 2010. According to the CBI, the inflation rate is 1.4% (2015 estimates), while the World Bank estimates 2015 at -1.2%, and the country’s international reserve volume also has decreased due to the sharp decline in oil prices.
The independence of the CBI suffered a setback in January 2011 when former Prime Minister al-Maliki won a court ruling that placed independent institutions, including the CBI, under the control of the cabinet.
In January 2012, the CBI raised the exchange rate of the Iraqi dinar to $1.19, causing a huge crisis that led the Supreme Judicial Council to issue an arrest warrant for CBI governor Sinan al-Shabibi in October 2012 on charges of corruption. Al-Shabibi received a seven-year prison sentence in absentia 2014, shortly before being acquitted of all charges.
The difference between the official and parallel exchange increased from three percent in 2015 to nine percent in May 2016. The CBI introduced a number of policies to keep inflation low. The dinar remained widely stable and was worth $1.71 in early 2017.
Anti-inflation / forex policy
The reduction of Iraq’s debt to a sustainable level, along with debt relief negotiations, has been a CBI priority since 2003. This led to an 80% reduction of the Paris Club debt (approximately $800 million annually), while negotiations with non-Paris Club creditors are still ongoing. In an attempt to ease the financial burden on Iraq, members of the Paris Club agreed to postpone debt from Iraq until the end of 2019. Iraq’s external debt was reduced to $58.13 billion at the end of 2014.
Meanwhile, Iraqi’s public debt continues to increase, reaching 61.4% of GDP in 2015, leaving total reserves of $50,990.8 million (World Bank 2016 data).
The proximate causes of Iraq’s current economic problem are a rise in military expenses in order to fight IS and recapture territories under its control ($13.1 billion in 2015; total government expenditures reached 22.4% of GDP in the same year), and a sharp decline in world oil prices. However, its roots lie in longer-term financial mismanagement.
On 7 December 2016, Iraq’s parliament approved the 2017 budget, which predicts a deficit of $19 billion, after a revision of the expected oil price from $56/barrel to $42/barrel, with an expenditure of 100.7 trillion dinars, about 6% lower than the 2016 projected spending. The government intends to finance its budgetary deficit through treasury bills, government bonds, austerity measures, loans from local banks and the IMF.
The link to the report is as follows
Monday Night KTFA CC 6-18-18
The first part is business Promo and the second part is Dinar/Iraq Intel
PLAYBACK # : 641.715.3639 PIN: 156996#
Iobey777: Thanks Tink and Delta!!! Family, from the CC tonight, Walkingstick said he wanted us to know that the numbers in this report are ANTIQUES!!! Meaning, that now the rate stands to be much higher due to increased interest, higher oil rates and other means!! Please keep this in mind! IMO!!!
Yada: When we consider the objective in turning this country around from the corruptness of the parliament members,,,the delayed in the Monetary Reforms became the tool to rid them of their key positions,,,it is worth a few day,,,even the objections by them being dealt with using their constitutions,,they win
LinnieQ: You're right Yada; I'm just not at all sure we have ANY idea what they are really doing "post election". They don't want us to know; that is for certain. We can only watch and wait.
Yada: lynnieg,,,,,here are the remaining steps,,,,,Supreme Court casting down all objections,,, Election Committee ratifying the May 12th vote,,,,, Monetary Reforms in light of Albadi named PM via Sadr,,,
GreatlyBlessed: World markets await 3 economic events this week
16 June 2018 08:35 PM
From - Noha Al-Nahhas:
Mubasher: The moment that oil market investors are waiting for is approaching the question that has puzzled many in the past, whether OPEC will raise production or not.
OPEC is meeting this week to discuss a cut production agreement and announce its decision on its level.
A number of central banks around the world approve this week the interest rate, as the monetary policy meeting is held in a number of countries including England, Mexico and Brazil.
The central bank in England will hold its monetary policy meeting on Thursday, amid expectations that the interest rate will remain unchanged.
After a period of accelerated inflation in the UK, which followed the "bricast", forcing the central bank to raise interest rates for the first time since the global crisis, has returned to a slowdown again.
In April, inflation in the UK slowed at a 13-month low of 2.4 percent year-on-year, from 2.5 percent in March.
A number of central banks in emerging markets are due to announce interest rates this week, including the central in Brazil, the Philippines, Thailand on Wednesday, and Mexico on Thursday.
Words of the heads of central banks
The European Central Bank (ECB) is organizing a two-day conference in Portugal on Tuesday, attended by heads of several central banks around the world.
He is scheduled to attend alongside the President of the European Central Bank, Jerome Powell, President of the Fed, and Haruhiko Kuroda, President of the Central Bank of Japan.
Last week, the ECB announced the end of its bond buying program in December.
The Fed also decided to raise the interest rate to a level of between 1.75% and 2%.
OPEC will hold a meeting in Vienna on June 23 to discuss the status of the oil market and review the cut-off agreement.
There are many expectations that the Organization will emerge from this meeting with the agreement to increase oil production, especially after the rise in prices.
The Russian Energy Ministry said the countries involved in the deal were planning to discuss possible changes in production cuts.
Saudi Arabia has also discussed with Opec allies and large producers outside its own production options, but the agreement on lift rates and timetable has yet to be reached.
Humor While We wait:
The Cynical Philosopher
I read that 4,153,237 people got married last year. Not to cause any trouble, but shouldn't that be an even number?
I find it ironic that the colors red, white, and blue stand for freedom until they are flashing behind you.
When wearing a bikini, women reveal 90% of their body. Men are so polite they only look at the covered parts.
Relationships are a lot like algebra. Have you ever looked at your X and wondered Y?
America is a country which produces citizens who will cross the ocean to fight for democracy but won't cross the street to vote
You know that tingly little feeling you get when you love someone? That's your common sense leaving your body.
Did you know that dolphins are so smart that within a few weeks of captivity, they can train people to stand on the very edge of the pool and throw them fish?
My therapist says I have a preoccupation with vengeance. We'll see about that..
I think my neighbor is stalking me as she's been Googling my name on her computer. I saw it through my telescope last night.
Money talks .. but all mine ever says is good-bye.
If you think nobody cares whether you're alive, try missing a couple of payments.
I always wondered what the job application is like at Hooters. Do they just give you a bra and say, "Here, fill this out?"
My therapist said that my narcissism causes me to misread social situations. I’m pretty sure she was hitting on me.
My 60 year kindergarten reunion is coming up soon and I’m worried about the 175 pounds I’ve gained since then.
Denny’s has a slogan, "If it’s your birthday, the meal is on us." If you’re in Denny’s and it’s your birthday, your life sucks!
The pharmacist asked me my birth date again today. I’m pretty sure she’s going to get me something.
The location of your mailbox shows you how far away from your house you can go in a robe before you start looking like a mental patient.
I think it's pretty cool how Chinese people made a language entirely out of tattoos.
Money can’t buy happiness, but it keeps the kids in touch!
The reason Mayberry was so peaceful and quiet was because nobody was married. Andy, Aunt Bea, Barney, Floyd, Howard, Goober, Gomer, Sam, Earnest T Bass, Helen, Thelma Lou, Clara and, of course, Opie were all single. The only married person was Otis, and he stayed drunk.
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