Samson: Most notably, fuel and food.. Al-Kazemi’s advisor: “relative” control over prices and food security will support us
22nd June, 2022
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed today, Wednesday, that the government has “relative” control over the prices of fuels and foodstuffs in the country, and while he indicated that the Food Security Law will support this, he stressed that monetary policy is able to curb inflation.
Saleh said in an interview with Shafaq News Agency, “The cash flows in foreign currency to Iraq are high and it is in the hands of the government and is considered one of the important things to support prices,” noting that “the emergency law’s function is to support prices, reduce and confront inflation and maintain the standard of living and cash income from high prices of foodstuffs and fuels.”
Salih added that “fuels in Iraq, some of them are imported, and their prices are fixed as a result of the support, although the world’s gasoline prices are doubling, but there is support for these prices, as is the case with the ration card.”
The financial advisor to the government indicated that “there is relative control over prices, and the emergency law will support this control over prices, and there is control over inflation that is based on financial policy tools,” adding that “in the event that prices develop, the reserves of high hard currency and monetary policy will interfere with its tools in a way it is more effective to stop or limit any price hike.”
Saleh pointed out that “the prices are still controlled by government support such as fuel and foodstuffs, and all government services are fixed at prices and there is zero for customs, and taxes have been greatly reduced.”
For his part, the Minister of Finance said in a statement received by Shafaq News Agency that “the emergency support law for food security and development came to reduce poverty and achieve financial stability,” noting that “the ministry is keen to implement the paragraphs of the emergency support law for food security and development, which the House of Representatives voted on recently.”
Allawi clarified that “the ministry is committed to financing all the assignments listed in Table A of the law to secure the food and electricity sectors, lecturers, administrators, contracts, procedures, graduate degree holders and graduates from among the first whose contracts have been terminated by the security and military services.”
The minister added that “the aim of presenting this law is to cover the actual financial needs that contribute to alleviating unemployment, reducing poverty, achieving financial stability in light of urgent global developments, and continuing to provide the best services to citizens and raising the standard of living for them.” LINK
Tivon: There it is Ladies & Gentlemen….if you needed to hear it again. I went over this particular point regarding the hard currency reserves that support Iraq against any inflation.
This means they can come out at a comfortable 100,000/100 USD at anytime. Which is basically a flat rate of 1:1 if you divide 1 by 100,000 IQD.
Until Iraq has a reinstatement of their Dinar you will keep seeing the emphasis on this EFSL. This will not slow down. Saleh said almost a couple of months ago The rise in Iraq’s hard currency reserves will increase confidence in the Iraqi dinar and will increase its stability,” stressing that “the Iraqi dinar is approaching full coverage of hard currency reserves in light of the current exchange rate.
He also said that “these reserves maintain the purchasing power of individuals, as it preserves the real income of the individual from fluctuations in the event of the deterioration of the dinar, and at the same time it is a way to curb any large inflation that may occur in the future by following a strict monetary policy,” noting that “one of the functions of these reserves is one of the hard currency is to curb inflation if prices continue to rise.”
Anyway I will list a simple way you can determine how much the rate is regardless of what it comes out at. Always divide by one dollar.
$.86 = 1.162…….. Exp (1.00 ÷ 1.162 =.86)
$1.00 = 1.000
$1.17 = 0.854
$1.86 = 0.537
$3.00 = 0.333
$3.22 = 0.310
$3.46 = 0.289
$3.50 = 0.285
$3.86 = 0.259
$4.00 = 0.250
$4.10 = 0.243
$4.40 = 0.227
$5.00 = 0.200
So if you have 1 million in Dinar. And the rate comes out at 1.162 on the Forex. You divide that by one dollar and it will be .86 cents. Which will net you 860,000.
DCDriver: What am I missing? It’s 100,000/100 not 100,000/100,000
Tivon: Remember this article below? He basically gave you the base exchange rate. Once again it was overlooked. Internally this would be for them. Not you.
Article June 10th 2022
Quote: The manipulation of currency exchange rates and the increase in the price of the Iraqi dinar against the dollar had significant negative effects, including raising the prices of materials in absolute, without an increase in salaries. Decision-makers and policy makers in Iraq, to have a role in the half of Iraqi society, especially after the huge financial abundance of hard currency.
Accordingly, we suggest that the exchange rate of the Iraqi dinar against the dollar is 100 thousand Iraqi dinars for 100 US dollars, and I think this is the real fairness to the Iraqi citizen, and give him something of interest, vitality and well-being, because he suffered what he suffered from instability and psychological, social and economic discomfort. End quote
Tivon: Read the first comment with the rates because that is how it will come out on the Forex. Forget about the article quote. We are talking about once the external rate (Our Domestic Exchange Rates). That way we kill the confusion. So just focus on the original comment with the listed rates.
The original post with the base rate .86/1.162 is the lowest the Dinar can come out at on our end. It will only go up from there. Just divide by 1.00 at whatever it comes out at on the Forex. Keep in mind that .86 will not show on the market. Only 1.162 (On Forex) which will result in .86 after you divide by 1.00. IMO
DoTalktoME: .86 x 1,000,000 =860,000
I do appreciate the graph…….I printed this off for future reference
Tivon: There you go. You got it. That’s it. Simple math. No one can get over on you. Sorry for the typo.
Daytrader: Tivon’s exchange rate chart is correct IMO. This is another way of explaining how to get to Tivon’s rate chart. The article Tivon references did state a fair rate would be 100,000 to $100. We’ve also all seen multitudes of articles talking about removing the three zeros. I believe the three zeros will be removed from 100,000 to $100 to become 100 IQD = $100; or 1:1.
Also keep in mind that FOREX will have only one figure represented for the IQD/USD exchange rate. Short lesson: an exchange rate has both a base currency and a quote currency; base/quote. For example USD/KWD is the US Dollar versus the Kuwait Dinar. The base currency is the USD since its listed first, and the KWD is the quote currency.
The question being asked with this formula is how much of the quote currency does it take to buy one unit of the base currency, or how many Kuwait dinar does it take to purchase one USD. The base currency is always 1 unit of the country’s currency and is usually omitted since it’s a fixed number.
Based on today’s current exchange rate, it takes less than one Kuwait Dinar to buy one USD; or $1 = .30668724 KWD. To switch the equation to KQD/USD changes the question to how many USD does it take to buy one KWD, divide $1 by .30668724 IQD. The result is 1 KWD = 3.26128 USD.
This link is for the XE.com website that allows you to switch different currencies in both sides of the FOREX equation; https://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=KWD. It’s easy to use and allows comparisons between every currency traded on FOREX. All in my opinion
Tivon: Correct. Which is why I posted a simplified version so matter what is shown on the Forex they can just divide by 1.00 and the real rate from which they will exchange will be revealed. Which would be the base .86 rate or higher. IMO
We are definitely closing in on the target. We are just waiting for the other shoe to drop. God Bless.Tags: ktfa /