Raising the Iraqi dinar to the forefront again

by **Ponee** Fri Mar 03, 2017 8:53 pm

Some Iraqi Government economists raising the dinar against the dollar until rising purchasing power and increasing confidence as a rule Iraq, as demanded by the need to stop «dollarization» economy by preventing deal internally and make local transactions are limited to use of the Iraqi dinar only.     It must be noted that 70 percent of currency in circulation was covered in gold and foreign currencies until 1981, the remaining Iraqi Government bonds (currency code), and then Iraq was leftover gold base system. In order to maintain the cover, successive Governments have been linking financial policy, especially current and investment expenditure, the balance of payments situation, and the latter was determined by the Government's revenue from oil exports.

And to make this link administrative restrictions applied to both external conversion, trade in goods and services and the movement of capital. Thus followed the conservative monetary and fiscal policies that kept the stability of the Iraqi dinar is installed by the Central Bank at 3.2 dollars to the dinar.

Some Iraqi Government economists raising the dinar against the dollar even higher power.

I shall abide by the lid easily dinar monetary authority in the exercise of their duties where he fomented maintain a stable currency, but it achieved at the expense of economic development that is not spending enough fear that increased spending on the stability of the currency. But during the Iran-Iraq war, which caused huge Iraq reserves faded of foreign currency, the Government abandoned the currency Act and Ina started spending on war without quantitative restrictions, what caused a continuous decline in the exchange rate of the dinar against the dollar and other major currencies, because of the increasing gap between the supply and demand of Iraqi currency. And increased economic embargo imposed on Iraq in 1991 it worse.

Despite the Government's adherence to the official exchange rate (3.2 dollars) for official transactions, resulted from continued growing imbalance between volume of currency in circulation and demand another rate for the dinar is parallel or black market, market price, sometimes to 4000 dinars to the dollar.     After the occupation of Iraq in 2003 and the lifting of the ban on oil exports and reserves of foreign currency deposits abroad and the Central Bank to

From this background about how to change the dinar over the past 36 years, and how it was «dollarization» economy, it is time to discuss what some economists ask now when claiming lift dinar and stopping «dollarization».

For more than four years, officials in Iraq talking about monetary reform project from which to raise the Iraqi currency exchange rate against the dollar so that the new dinar equal to 1.2 dinars to the dollar instead of 1200. But the move was postponed to a later date because some Iraqi areas Government control after the occupation «ISIS». Then she began military operations to recover these areas that still lingers. The Government is expected to return to the project after the end of military operations. If the monetary reform is successful, there is no longer need to use the dollar in domestic transactions. The latter happened after he became a tough daily transactions with the arrival of thousands of dinars per dollar, making individuals resort to deal in dollars instead of dinar, especially in large transactions in hoarding currency. So you cannot cancel «dollarization» economy

But the monetary reform as stated above does not mean new official exchange rate of the dinar against the dollar. If the shadow exchange rate floating as it is currently, it may rise or fall according to the relationship between supply and demand for dinars, higher offer for stability or dinar decreased demand, exchange rate declines in the dollar. And if the opposite view dinar for settlement or high demand. The Monetary Authority may to install new exchange rate with the dollar or a basket of currencies. But in any case it is not advised to adopt a high exchange rate, it does not give effect to the economy or raise the value of national sovereignty as some believe, but negative effects on the economy. The former Iraqi dinar ($ 3.2) was exaggerated and will continue to be exaggerated if you return in the future. It will make imports cheaper but hinders the improvement of production and export capacity of Iraq, the price may be 1.2 dinars to the dollar or dinar against the dollar is the right price. But the Government fiscal and monetary policies to help maintain it. It can be said that the invitations that we hear today by raising the dinar
03.03.2017

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by **RoyBoy** Sat Mar 04, 2017 10:12 pm

TY Ponee

by **Ponee** Sun Mar 05, 2017 4:57 pm

You are welcome RoyBoy. I miss seeing you and Mayo-Queen around. I hope you are both doing well.

Raising the Iraqi dinar to the forefront again 2243815925

Raising the Iraqi dinar to the forefront again 2243815925

by **RoyBoy** Sun Mar 05, 2017 7:21 pm

Mona and I are doing great Ponee, TY for asking, Mona leaves the dinar to me as she works part time at a deli near by, and where I work never seems to slow down. I have taken a rest from this ride and just lurk here and there and watch what others give their opinion of what's what. Later ;-)

by **Jayzze** Sun Mar 05, 2017 11:36 pm

until m is gone you are living a pipe dream

by **Ponee** Mon Mar 06, 2017 9:25 am

RoyBoy wrote:Mona and I are doing great Ponee, TY for asking, Mona leaves the dinar to me as she works part time at a deli near by, and where I work never seems to slow down. I have taken a rest from this ride and just lurk here and there and watch what others give their opinion of what's what. Later ;-)

That is the best thing to do.... Life goes on even when the RV does not! We have to live in the moment and quit chasing this string tied to a cats tail. How many dinarians stagnated and died waiting for this? Life is to live. I am glad you and Mona are off the merry go round. Life Blessings for both of you.

Raising the Iraqi dinar to the forefront again

Raising the Iraqi dinar to the forefront again

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Re: Raising the Iraqi dinar to the forefront again

Re: Raising the Iraqi dinar to the forefront again

Re: Raising the Iraqi dinar to the forefront again

Re: Raising the Iraqi dinar to the forefront again