MilitiaMan: Mutual exclusion is not going to work. They seem to be saying that they can’t drain their reserves, therefore, they are going to use Hybrid Bonds with real effective interest rate.
They seem to be saying that the difference from the market to the illegal (unregulated) market is damaging and they need that to stop. So by introducing the Bonds will be of assistance to support the real exchange interest rate for the Dinar.
Maybe Walkingstick could shed some light on this one? I get the feeling that this comes out now as they are going to need the tools to defend their new REER.. We shall see. ~ MM
“Mutually exclusive” is a statistical term describing two or more events that cannot occur simultaneously. It is used to describe a situation where the occurrence of one event is not influenced or caused by another event. For example, it is impossible to roll a five and a three on a single die at the same time.Dec 22, 2017″
Don961: Renting money in unregulated markets: Iraq is a model
December 18, 2018 7:59 PM Author: alzawraapaper
Appearance of Mohammed Saleh
It is clear that there are two cash markets working in their behavior and directions on different monetary terms and conditions and according to the rule of mutual mutual exclusion. They are interconnected markets but do not match goals and vision.
The cash-flow phenomenon, in which the speed of circulation of highly concentrated cash flows increases, is a source of excess demand on the central bank’s foreign reserves, which means sacrificing one of these reserves to counteract an active liquidity that was inert or choked. ).
Here, monetary policy pays an added price to stability, which was triggered by interest rate shocks in the money market, in order to maintain exchange rate stability and counter the devaluation of the foreign dinar. The sacrifice of foreign reserves as a result of surpluses of local liquidity and sudden shocks to currency-triggering factors is a risk premium and additional costs to monetary policy.
Based on the above, the monetary policy of the central bank to maintain the stability of the general level of prices and reduce inflation using foreign currency as a means of defense or stabilizer nominal nominal anchor in the stability of the external value of the dinar, does not generate (in the presence of two cash markets) only cases of costs and additional charges On foreign reserves, which are inversely proportional to the rise in short-term nominal interest rates in the unregulated cash market (ie, cash leases). In the low general price level (by defending a stable exchange rate of the dinar), the unregulated cash market indicates that the real effective interest rate is the nominal interest rate on the regulated market minus the difference between the exchange rates of the dinar between the regulated and unregulated markets.
The monetary conditions in the market are conservative conditions of maintaining the stability of the Iraqi dinar exchange rate (although the current account deficit of the balance of payments), which is followed by the stability of interest rates in the organized market, including the monetary policy interest rate (which reflects the interest rate) Real positive about 6% per annum), which are matched by different monetary conditions in the unregulated market.
On the contrary, an excessive rise in real short-term interest rates in the unregulated or illegal cash market is as high as 15% per month (representing the rate of return) Of the The exchange rate of each dinar is achieved by the parallel exchange markets, ie, resulting from the exchange rate differentials of the dinar in the exchange markets, in addition to the monetary policy interest rate in most cases.
Therefore, if the monetary policy to modify the interest rate and pointed upwards in order to attract excess liquidity and sharpened from the unregulated cash markets as an alternative to the flow towards the central monetary window, this does not mean in the light of the phenomenon of inflationary prevailing only economic contraction of the real activity and in order to overcome the conditions Monetary conditions for the unregulated or informal market.
If monetary policy is to sacrifice the exchange rate and stabilize it towards devaluation of the dinar and create inflationary waves, the local currency rental market will feed inflation by maintaining a positive real interest rate that is constantly generated by inflationary expectations that ultimately maximizes the cost of managing monetary policy and drains reserves Hotfile.
Therefore, there is no alternative but to promote medium-term hybrid financial instruments (3 years) as central bank bonds that are to be bought through the cash market with balance-sheet interest and repayable at maturity in foreign currency and at a cash exchange rate as an alternative to cash liquidity (whenever possible). Such financial instruments and instruments are instruments of assistance that enable the imposition of behavior that is a state of consistency in the monetary conditions between the two markets (the organized money market and the unregulated market).
Ie the impact on the monetary behavior of unregulated markets and their penetration of the official financial instruments hybrid and the growing market of the rental currency and its monetary conditions harmful to the cost of managing monetary policy.
With this monetary consensus between the regulated and unorganized markets, monetary policy objectives are achieved in controlling excess liquidity levels and generating stable price expectations without additional costs borne by the monetary authority. link
Don961: An Iraqi family living in Canada wins an $ 8 million prize
December 19, 2018 8:15 pm Author: alzawraapaper
Canada / Al-Zawra: An Iraqi Kurdish family in Canada won an award of about $ 8 million in the New Year lottery draw. Tawfiq Sindi and his wife, Kadhim, won $ 7 million, 935,000 and $ 986. “When we found out that our card had been awarded the biggest winner, we had a great feeling of joy and happiness,”
Sindi told Global News. “The two Kurdish couples plan to pay government loans for “The prize is a great gift from the New Year’s Day,” she says. “A long time ago we did not visit the country, so a visit to Kurdistan with our six sons Part of our program for this year ». link
MilitiaMan: I would imagine, that the whole country is watching for guidance on distributions… Tables, as in calculations? Can’t be that hard to calculate, drop three zeros electronically then push send. Wala that fast and easy.. imo.. lol ~ MM
Central Bank of Erbil receives 317 billion dinars for distribution to employees of Kurdistan
The central bank in Arbil on Wednesday received 317 billion dinars for distribution to employees of Kurdistan as salaries for the month of October.
A source in the Ministry of Finance and Economy in the Kurdistan Regional Government, for / Mawazin News /, “The amount of 317 billion dinars reached the branch of the Central Bank in Erbil for the distribution of employees as salaries for the month of October.”
The source added that “the Ministry of Finance requested a list of employees from the rest of the ministries for the purpose of distributing salaries to employees of ministries and government institutions in the region.”
And that “the distribution will be in the coming days and if the tables are completed will be distributed before the end of this year and the holiday of New Year.” LINK
Samson: Banyas: Next year sees wider openness to the world
18th December, 201
The Chairman of the Board of Banias Hass Ali Abdul Karim that next year is witnessing the adoption of a strategy of wider openness to the world by the private sector tourism.
He added that the great successes achieved by the tourism sector during the past years require the organization of the joints in a way that benefits the citizens and tourism companies and before the national economy, where the tourism sector is a permanent oil, especially that Iraq is a country unique to the countries of the world to have all kinds of tourism without exception.
He pointed to the possibility of achieving a match with international companies to attract tourists from different countries of the world, and this enhances the revenues of the general budget, and can be expanded within the presence of tourist features of interest to most of the world’s population in Iraq. LINK
MilitiaMan: Now this should have everyone eyes on tomorrow.. They tell us the names and prove publicly that they are legit, it will be one very big deal!!! imo… ~ MM
Samson: Moussawi reveals agreement to change candidates for interior, defense, education and immigration
19th December, 2018
MP on the alliance of conquest victory of al-Musawi, on Wednesday, a political agreement to change the names of candidates for the Ministries of Interior, Defense, Education and Migration, while the new names were sent to the accountability and justice and integrity for the purpose of scrutiny.
Al-Moussawi said in a statement to Al-Mawlumah that “the success of yesterday’s session, by passing the cabinet cabal completely, pushed the political blocs to agree to change the names of the ministries of interior, defense, education and immigration.” He pointed out that “the new list that will reach the House of Representatives will be free of Faleh Fayadh and Faisal Jrba, and the boy Al-Tai and Hana Emmanuel”
She added that” the new names have not been passed so far, “indicating that” those names will be away from the known political figures. ” “The new names were sent to the bodies of accountability, justice and integrity for the purpose of checking before going to the House of Representatives,” explaining that “Abdul-Mahdi told the political blocs for days that he will change the names that were not passed by the vote in the House of Representatives.” The Prime Minister Adel Abdul-Mahdi has confirmed, on Tuesday, that Thursday’s session will witness the completion of the vote on the rest of the cabinet cabin. LINK