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Don961: The central bank reveals new developments regarding the dollar exchange rate

12 hours ago

The Central Bank of Iraq confirmed, on Monday, that the new exchange rate for the dollar will continue for a long time, and will not be changed soon, and perhaps the new rate will continue to work for several years

The Deputy Governor of the Central Bank of Iraq, Ihsan Shamran, said in a special statement to NRT Arabia, that “the exchange rate of the dollar against the Iraqi dinar will not be reduced during the next few months, and it is not excluded that the work at the new exchange rate will continue for several years to come

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He added, “There are no flaws in the new exchange rate and the International Monetary Fund had advised Iraq to raise the exchange rate of the hundred-dollar bill to 160,000 dinars at least

He explained, “The fair price of the dollar exchange rate is 2,400 dinars to the dollar,” without mentioning any other details   LINK

From Belgium:  IMO Can someone explain why this is such an exciting article?

ATPInfinity:  “The fair price of the dollar exchange rate is 2,400 dinars to the dollar,” without mentioning any other details

I LIKE THE IDEA HE KNOWS…DROP THE ZEROS…”without mentioning any other details”

MM (MilitiaMan)  MATH101 LEADS US TO  IMO  EXPRESSION MATH = $2.40/ DINAR IN REAL VALUE RIGHT NOW “such an exciting article”

GO BACK TO Militiaman school 2 monthes ago HE called it Expression Math to AMF basket Walkingstick verified it

Value is not Rate ( THIS IS ABOUT WHAT IT “MIGHT BE”…..WORTH IN THE MARKET FLOAT

THIS ARTICLE IS FOR THE PEOPLE imo ” without mentioning any other details (IMO)

And maybe to scare-up some mattress dinar too!

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Don961:   Disclosure of the end date of Ramadan and the first day of the blessed Eid Al Fitr

6 hours ago

The National Institute for Astronomical Research in Egypt revealed that the number of Ramadan is 30 days, and the last day of Ramadan will be on Wednesday, May 12, corresponding to Ramadan 30

The institute stated that “May 12 will be the longest day of the month in terms of the number of fasting hours, with a total of 15 fasting hours and 35 minutes

The crescent of the month of Shawwal is born immediately after the conjunction occurred at exactly nine o’clock in the evening Cairo local time on Tuesday 29 of Ramadan 1442 AH corresponding to 5/11/2021 AD, which is (the day of vision)

And Wednesday, May 12, will be the completion of the month of Ramadan, and the first of the month of Shawwal will be astronomically on Thursday, May 13 (the blessed Eid al-Fitr), and its prayer in Cairo is 5:28 in the morning   link

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Don961:  The Central Bank clarifies about the dollar’s arrival at 160,000 dinars, because it is the real price

8 hours ago

Deputy Governor of the Central Bank of Iraq, Ihsan Shamran Al-Yasiri, revealed, Tuesday, that “the World Bank has proposed to Iraq to amend the exchange rate of the dollar to 160 thousand dinars per 100 dollars as it is the real price, stressing the need to improve the ration card items to reduce the damage caused by adjusting the exchange rate

Al-Yasiri said in a statement followed by NRT Arabia , (April 13, 2021), that “one of the demands of the World Bank during the negotiations to raise the exchange rate of the dollar is to reform the public financial departments, which are taxes, customs, levies and financing part of the financial savings achieved for the benefit of the vulnerable classes,” stressing that ” The need to improve the ration card items to reduce the damage caused by adjusting the exchange rate

Al-Yasiri added, “It is possible to improve the ration card items by fighting corruption, and to reduce the waste of Iraqi money in corrupt deals, because most of the ration items are national production, such as rice, sugar, flour, oil and tomato paste

He pointed out, “The government can invest the initiative to adjust the exchange rate through more support for the local industry and agriculture after it obtained a competitive advantage of more than 23% against the importer of products, and thus the importer is facing difficulty in competing with the local product

Al-Yasiri explained, “The World Bank suggested to the Central Bank of Iraq to amend the exchange rate of the dollar to 160 thousand dinars per 100 dollars, as it is the real price that the local market can settle on compared to neighboring countries,” indicating that “the central bank, through its study of the market and the living situation, found The current value of the exchange rate is 145,000 suitable, and has actually achieved the desired results in monetary policy LINK

DocMagee94:  So…math:  at the quoted rate of 145,000 IQD per 100 USD, that would mean that 1 IQD is equal to 0.00069 USD.  (100/145,000 = 0.00069).  Dropping the 3 zeros at this rate would put the value of the IQD at 1 IQD = 0.69 USD.   Going further, at this rate, 1IQD = 0.69 USD, each of your 25,000 IQD notes would be worth $17,250 USD.

Iobey777:  Also, IMO, once they are in the ME basket, their rate will need to be equal to or competitive with the other countries! Ex: Kuwait rate is over $3.30…  I believe that Iraq’s basket/floating rate will/ could start at the $3+ range! Did I say all IMO?!!!

Ryan1216:  Afternoon all. The articles look great today but Iraq needs to show action by revealing the new rate now. I know the Iraqi citizens are just as fed up as we are. It’s go time! Let’s go CBI!

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Don961:  Europe is heading towards a new financial crisis

European Union Arab and international  Economy News – Baghdad

Europe is struggling to contain the COVID-19 pandemic. But it is preparing itself for another crisis, which is a financial crisis. Europe is in trouble. To ensure the viability of the common currency at the core of the European project, EU leaders will have to cooperate in the ways they have so far resisted. Europe is in trouble.

The adoption of a single currency for the European bloc has yielded significant benefits such as barrier-free trade and improved global competitiveness, among others. But the euro has also forced member states to abandon independent monetary policies that could help support national debt and financial systems.

One consequence is that distress in banks represents an increasing threat to the finances of individual governments – and vice versa – the so-called “doom circle” that appeared amazingly during early 2010, when the eurozone nearly disintegrated.

Missing solidarity

In 2012, European leaders agreed on what should have been a large part of the solution. They envisioned a complete banking union, where governments have a shared responsibility to supervise financial institutions, and the most important thing is to dismantle or recapitalize banks when necessary, and to safeguard depositors’ money.

But progress has been very slow. Although the European Central Bank now oversees the largest banks in the region, individual governments still bear the cost of the bailouts, as bailouts in Italy and Germany have shown. Still, mutual deposit insurance is little more than a proposition.

The pandemic has exacerbated the problem, as governments take on more debt in their efforts to provide an economic bailout. The International Monetary Fund estimates that general government debt in the eurozone will exceed 98% of GDP by the end of 2021, up from 84% at the end of 2019.

Worse, the financial liabilities of individual countries are piling up on the balance sheets of their banks. At the end of February, Italian banks’ holdings of Italian government debt amounted to 124% of their capital and loss reserves, making them extremely vulnerable in the event of financial hardship.

Regardless of the financial risks they represent, these sovereign exposures make the task of achieving a banking union politically difficult. Northern countries, such as Germany, for example, are unwilling to sign up to mutual deposit insurance if that means supporting Italian banks’ excessive holdings of Italian public debt.

For their part, governments of heavily indebted countries are concerned that restrictions on bank holdings may leave them unable to borrow, when they should.

Deposit insurance necessities

But there is a way forward. To push banks toward diversification, the European Central Bank could allocate a “safe portfolio” for government debt that corresponds to member states’ shares in the region’s GDP (an idea originally proposed by German Finance Minister Olaf Schultz, and developed by Luis Jaricano, an economist and member of the European Parliament) . Any variation will necessitate an increase in capital requirements.

This would address northern European countries ’concerns by giving banks an incentive to reduce local government exposure. At the same time, it will relieve the pressure that could have been imposed on heavily indebted governments. The decrease in Italian banks ‘holdings of government debt could be at least partially offset by increases in other banks’ holdings.

This step will pave the way toward a banking union in itself. European leaders should go further, and they should significantly upgrade the “Single Decision Council”, providing it with the powers and resources to take over, liquidate, or recapitalize banks anywhere in the eurozone, and compensate depositors – just as a deposit insurance company does. Federalism in the United States. To make the mutual insurance fund more politically acceptable, it could be designed initially as a support to national funds.

During the pandemic, European leaders have been ready to deepen their cooperation, most notably in pooling financial resources to support the most affected EU economies. And with increasing urgency, the same logic applies to severing the link between the health of banks and the solvency of national governments. Until this is addressed, the single currency system in Europe is a seriously unfinished business. Source: Bloomberg    LINK

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