Enorrste says that as the value begins to come back, they should change the exchange rate

by **Ponee** Sun Jun 21, 2015 11:21 am

Enorrste

Article: "Central Bank current problems as a result of the loss of independence" I am encouraged that Shabibi stepped into the argument, finally.

We now have Shabibi, Saleh, and Abadi on one side and, presumably, the CBI and possibly Maliki backing the play, on the other side.

The real question here isn't what Shabibi has said: that is all old news to us. What is the question is whether his entry into the discussion will move the ball forward. Even though he is out, he still carries a very big stick. He also has the backing of the IMF, totally.

Therefore, it would not surprise me if some new "policy decisions" came out from the CBI shortly (of course the advent of Ramadan may make "shortly" last over 30 days!).

It is clear to me that what Shabibi has stated is absolutely accurate: the meddling of the GOI and Parliament into CBI monetary policy has caused the problem that exists today with the wide spread. Whether Allaq has the knowledge or courage to take the proper corrective measures remains to be seen.

In my view they should return to the auctions with no limits, for the time being. This will increase confidence in the dinar as the CBI becomes more "transparent" rather than "hamstrung."

They should also issue the larger notes sooner rather than later. This will allow a reduction in the money supply which will have a positive affect on the value of the dinar. It will also offer a counterpart to the American $50 and $100 which seems to be a problem for the locals (according to Saleh and others).

Finally, as the value begins to come back, they should change the exchange rate regime while it is moving upward. This will encourage more trade in the dinar and a faster rise in its value.

by **RamblerNash** Sun Jun 21, 2015 2:41 pm

by **RoyBoy** Sun Jun 21, 2015 11:24 pm

Thats a old clip, he is singing a different tune now, but a lot has changed since then also. Thanks Rambler.

by **Kevind53** Sun Jun 21, 2015 11:53 pm

Yea, he's trying to cover his axx now.

by **RamblerNash** Sun Jun 21, 2015 11:59 pm

royboy wrote:Thats a old clip, he is singing a different tune now, but a lot has changed since then also. Thanks Rambler.

That was kind of the point. Guru's change their tune to suit their audience.

:winky winky:

Enorrste says that as the value begins to come back, they should change the exchange rate

Enorrste says that as the value begins to come back, they should change the exchange rate

Re: Enorrste says that as the value begins to come back, they should change the exchange rate

Re: Enorrste says that as the value begins to come back, they should change the exchange rate

Re: Enorrste says that as the value begins to come back, they should change the exchange rate

Re: Enorrste says that as the value begins to come back, they should change the exchange rate