Delta excerpts from Monday night CC:
Delta …a lot of you that don’t know about this article…it was on the CBI website in Arabic…all the newspapers and all the media are talking about it…dated the 20th…this letter from the CBI to banks, money exchange companies and private banks…is the huge thing that confirms they are waiting on the calculation to be done…
Everything we believe to be done except that calculation… anything less than a 1 to 1 rate would simply cause confusion with the Iraqi citizens…
Just as Abadi said on the 10th…we are ready to activate things for the economy…they can’t activate the banking system in Iraq unless they are internationally recognized…the ki cards and so much that we’ve seen from them all need the international recognition…the calculation that they wait for now.
This is very good as an indication that something is about to happen, either late this month or by mid-January.
Walkingstick: Related News: monetary policy required to maintain the stability of the local market
BAGHDAD / National Iraqi News Agency / nina / specialist description in economic affairs role of monetary policy during the current stage Balhassas, given the size of the economic challenges facing the country. The lion Mohamed Ali of the Iraqi National News Agency / nina / that “the financial crisis through which Iraq needs monetary policy, balanced and accurate to keep the Iraqi market through the stability of the local currency and to address any possible contraction with the decline in the cash proceeds of the State which constitute a key driver of the economy.
“He stressed that” monetary instruments represented Bsara exchange and interest basis and instructions of the Central Bank for banks and sizes of internal loans, will determine the face monetary policy, which must be strong to support the fiscal policy in Iraq.
“He called on the concerned, the central bank to maintain a cash reserve levels and to deal gingerly with interest rates and employed to curb any possible deflation and the provision of liquidity driving the market. Some of the media pointed out that the Central Bank reduced the value of the dinar against the dollar, but the Central Bank of Iraq denied the news. The bank said in a press statement today that “the news that talk about the bank to reduce the value of the dinar against the dollar baseless,” adding that “the sale price of the dollar has not changed,” ./anthy8
Walkingstick: Bloomberg says 1997 Asian currency crisis back
Tue 22 December 2015 12:20 GMT | 7:20 Local Time
Bloomberg says the pace at which central banks from Argentina to Azerbaijan surrendered their grip on exchange-rate policy this year is bringing back memories of the 1997 Asian currency crisis.
“At least four dollar pegs have been abandoned and half a dozen others weakened as developing nations scrambled to adjust to an era of lower commodity prices, slowing growth in China and higher U.S. interest rates,” the article posted on Bloomberg reads.
“The devaluations gathered pace in the second half after policy makers in Beijing surprised the world by depreciating the yuan on Aug. 11, putting pressure on regional trade partners to follow suit.
A year that began with Vietnam depreciating the dong has culminated in Argentina and Azerbaijan’s decisions to give up control of the peso and manat, respectively, in quick succession in December, with the currencies plummeting about 30 percent on their free-float debut.
Policy makers found eroding export competitiveness and dwindling foreign-exchange reserves too high a price for maintaining fixed exchange rates. The number of pegs scrapped this year resembled 1997, according to Simon Quijano-Evans of Commerzbank AG.
The Nigerian naira is at risk of a devaluation in the short term, while longer term the dollar-pegged currencies of the Arabian Gulf may face pressure if oil prices remain depressed, according to Demetrios Efstathiou, head of strategy for central and eastern Europe, Middle East and Africa at ICBC Standard Bank Plc in London.
“The longer countries hold on to the peg, the more they drain their foreign-exchange reserves,” said Quijano-Evans, the London-based emerging-market strategist at Commerzbank. “At some stage, the vulnerabilities to the system — in this case, the full dependence on oil for budget and balance-of-payment revenues — come to light.”
The monetary crisis in southeast Asia 18 years ago was triggered by similar circumstances, with China devaluing and the Federal Reserve starting a cycle of interest-rate tightening in 1994. The chain of events eventually touched off a round of competitive currency depreciations that were followed by bank and corporate failures and recessions across much of the region.
Here’s a sample list of stories from Bloomberg that covered the devaluations and free floats around the emerging world through 2015:
China-Led Emerging Market Turmoil Evokes Parallel With 1994 (1)
Argentine Peso Plunges 29% as Macri Fulfills Free-Float Promise
Azerbaijan’s Shift to Free Float Sends Manat to 20-Year Low (2)
Kazakhstan Tenge Slides 23% as Emerging-Market Rout Strains Pegs
China Lets Yuan Devalue as Slowing Growth Pressures Currency Peg
Egypt Devalues Pound Third Time in 2015 After Reserves Slide (3)
Sri Lanka Eases Grip on Rupee as Emerging Currencies Show Strain
Devaluation Fever Spreads to Pakistan as Rupee Hits 17-Month Low
Vietnam Devalues Dong for Third Time in 2015 on Yuan Fallout
South Sudan Devalues Currency by 84% as Dollar Peg Abandoned (2).