Lowering the price of the currency .. What are its implications for the national economy? LINK
MilitiaMan: The adjustment to 1460 is a devaluation. They are not going into a market economy with that. They didn’t at 1190, so with the further negative adjustment they won’t either imo.. But, look closer to what the US FED RESERVE says they can do. They can devalue and revalue. A revaluation to a supported market based exchange rate can change things quickly and on many fronts. Even, if it is less than what they expected.. The application of an exchange rate accordingly may turn things around on a dinar.. lol imo !~ MM
Will: Why cant they enter at 1460? Plenty of other countries in the market economy with worse rates, Vietnam one example.
Deepwoodz: Because in my opinion, the plan is to help their people. 1460 hurts and not help. They are expecting the glory days because that is what has been trickled down to them.
They know their country is as rich as any. They won’t tolerate the status quo.
It has been spelled out to them for months now and they are deserving of this blessing. Generations have had their families destroyed by war and poverty and God is in it for them.
They are even putting up Christmas trees and talking about Christianity.
ps…one definitive fact keeps getting overlooked..they have NSCN’s that are only good at 1:1 or better. We already know they exist, tellers have been trained, about to be released. What else is there to it?
TheSnod: Brother, the significant difference is they are mainly running on the USD and it’s value in Iraq, and they need to replace it with the IQD.
It’s a different currency context.
They are going to move out of the auction system, so the black market manipulation will stop. Gradate out of the dollar that is being stolen in those auctions, and move into the unsanctioned, convertible currency of the IQD.
For it to function, the IQD has to come up or around the value of the dollar, or else all these careful plans get flushed into a devaluation nightmare. All these countries and companies aren’t coming in for that!
That’s fundamentally why we’re in this investment to start with.
MilitiaMan: “According to the Federal Reserve Bank of New York, it is possible for policy makers to devalue and revalue the value of a currency, which is usually associated with pressures from the domestic market.”
MilitiaMan: That is exactly what we have witnessed lately. The domestic market has been under pressure from the leak of the 2021 budget. There are players taking advantage of the circumstances for large profits. The good thing is that this new adjustment to 1450 +- is going to get challenged, as it looks to violate the constitution. ~ MM
For his part, the legal expert, Ali Al-Tamimi, said that the rise in the dollar exchange rate to 1450 in the budget law violates the Iraqi constitution and the Charter of the International Covenant, and can be challenged.
Can the decision be appealed?
Al-Tamimi explained in an explanation given to “Yis Iraq”, that “raising the dollar exchange rate to 1450 violates articles 30 and 31 of the Iraqi constitution, which require the state to provide a free and decent life and suitable income, and also this procedure violates Articles 23 and 26 of the International Covenant on Civil Rights. And political, which all countries of the world that are members of the United Nations Organization must abide by. ”
He added: “Also, the Central Bank Law, according to its Law No. 56 of 2004, is an independent body under Article 3 of this law and also the Central Bank’s instructions for the year 2017, and therefore it is the one that determines the exchange rate. Poverty read ”. LINK
Parliamentary Finance holds an emergency meeting to discuss the 2021 draft budget
An official source in the council told Shafaq News that this proposal will be discussed in the next session of the council, in addition to other items, and it is subject to amendment.
MilitiaMan: So they tell us the 2021 Budget is subject to amendment. Lets not forget that today the COM was to be working in the 2021 Budget for vote. In it imo it has the 2019 FMLA and the 2020 budget that needs to be sorted, as they define the 2021, a rate inclusive. imo !~ MM
The Governor of the Central Bank provided an explanation on the reasons for the high exchange rate, stressing that the bank is preparing to launch a package of measures that will achieve a shifting balance in the exchange rate for the year 2021, such as launching an initiative with an amount of 3 trillion to support low-income people, doubling the provision of hard currency in the market, and increasing interest rates. On the Iraqi currency deposited in banks.
MilitiaMan: They are preparing a package of measures that will balance the 2021 Exchange rate. Well, it will not be a future devalued rate of 1460 be sure, imo!! That is to be challenged, rejected or amended. imo ~ M
“Leak” annoys finance … and a warning of “exciting” statements
The ministry said in a statement received by Shafaq News, that “budget preparation is a complex technical process that includes many ministries, government institutions and international agencies concerned with the budget over a long period of time and cannot be fully understood without referring to the data, policies and strategies on which it is based, including the white government paper.”
MilitiaMan: The leak has put the finance department in a bad light not only with the citizens, but other govenrors
The dinar-dollar conflict in Iraq is “promised” that “decisive” measures will be taken by the Central Bank: The government is the reason and this is what will happen!
For his part, a member of the Parliamentary Finance Committee, MP Naji Al-Saeedi, said: “The governor of the Central Bank, during his hosting by the committee regarding the repercussions of the high exchange rates of the dollar towards the Iraqi dinar, indicated that this rise was caused by the government, not the central bank, considering that the dollar comes from Iraqi oil sales, which go down in the Development Fund for Iraq in the United States of America, thus the real owner of the dollar is the Ministry of Finance, which sells the dollar to the Central Bank as the government accountant.
He explained that “the Ministry of Finance, two months ago, refrained from selling the dollar in order to raise its price towards the Iraqi dinar to bridge the deficit of the general budget and achieve some developmental operations according to the government’s opinion. Therefore, the Central Bank’s justifications are that the high exchange rate is a government decision, and it was not a decision issued by the bank.” Central, ”pointing out that“ the Cabinet until this moment has not voted on the general budget, and that the Finance Committee has not received anything official from the government in this regard. ” link
MilitiaMan: Today the the COM was to have the budget on the plate for vote. But, notice they tell us the refrained from selling the dollar in order to raise it’s price to bridge the deficit in the general budget and achieve developmental operations. In other words this devalue was planned months in advance to get cause and effect. imo ! It looks to be short lived or is at least it is expected to be.. imo Take not too, that in the below from yesterday they tell us that the offical price of selling the dinar is at 1190. Even though the CBI shows 1460.. Things that make you go hmmm!!! imo ~ MM
“It is known that the Central Bank has set an official price for selling the dollar at 1190 dinars per dollar, while the owners of banking shops and speculators make huge profits from the difference in the price sold in the market of 133 thousand and 500 dinars per hundred dollars. , Which has been on the rise for days.
She emphasized that “this increase is temporary and the exchange rate will return to its normal rates or close to it after the end of the Christmas and New Year period, because this rise is not new to Iraq as it is affected by rumors, false news and the current conditions in the country.” LINK