2Cents » September 27th, 2016
I have waited for this for Years!!!! I use to always say when Massoud comes to Baghdad himself, WE Will Be CLOSE!!! FINALLY!!! After Five Years!!!!
Walkingstick » September 27th, 2016
21:18 27/09/2016 :BAGHDAD / tomorrow Press A political source said early on Tuesday that the President of Kurdistan, Massoud Barzani, will pay a .visit to the capital of Baghdad, on Wednesday The source said in a statement to "tomorrow Press" that "Barzani will arrive tomorrow to visit .Baghdad for talks exclusively with Prime Minister Haider alAbadi," without giving further details
The Prime Minister Haider alAbadi, had revealed earlier in the day Tuesday, the existence of a .recent visit of the President of Kurdistan, Massoud Barzani, to Baghdad Ebadi said at a news conference attended by "tomorrow Press" that "Barzani will visit Baghdad soon on an official visit to discuss relations between the central government and the Kurdistan region and ".discuss the battle to liberate Mosul
Aggiedad77 » September 27th, 2016
IMO this will be about far bigger things....much bigger fish....maybe a hint of things to come and how the Kurds will become yet bigger players inside of Iraq.....there will be "window washing" of course for us to see....but closed doors will bring other issues to the surface.....and I'm predicting that Barzani will be leaving with a smile upon his face.....a cooperative effort culminating for the two of them....IMO. Aloha Randy
Frank26 » September 27th, 2016
Don961 » September 27th, 2016
Float the Iraqi dinar economic phenomenon that will support the national currency
September 27, 2016 BAGHDAD - The Journal News
"floating" instrument of monetary policy tools countries, only used with currencies that determine the value of governments, be left to other factors not.
The flotation is different from the "devaluation", which is determined by the open market on the basis of supply and demand.
The flotation reverse link, Currencies pegged against major currency or basket of currencies are floated through the "decoder" linkage partially or totally, while currency devaluation Fksh high value, as it happens for major currencies in free markets like the US dollar or the euro or the other, since rising value those currencies or fall in the market according to supply and demand, and the strength of the fundamentals of economies they represent, and the actions of speculators in the currency markets.
For example, China has linked its national currency, the yuan to a basket of currencies and the US dollar, essentially, it is under pressure from the West to lift this link and let its currency to rise or fall value based on market factors, which means "float the yuan."
Indeed, China has recently resorted to float its currency against the dollar, in response to criticism during the American presidential campaign of the policies of China's cash and its impact on trade with America.
Float the Iraqi dinar: -
suggested economist banks Rahim al - Adli on the Central Bank of Iraq and the government 's adoption of the "unrestricted flotation" in the currency auction instead of "limiting factor" that determines a fixed exchange rate to the dollar price, trying to keep it fill the market need of hard currency, but officials in Bank assert that the latter is subject to economic variables and the movement of the market, noting that Iraq 's cash reserve covers the needs of the private sector in foreign currency, as well as the currency bloc , the Iraqi dinar by 160 percent.
Adli said, "that there are three ways to deal with the central banks with foreign currency; The first is made up by the" limiting factor "to be adopted by the CBI, which includes a fixed exchange rate to the dollar price, and pumping dollars into the market to maintain the stability of the market price of traded currencies.
The second method is called "flotation", explains al - Adli as "thumb market is controlled exchange rate , " noting that "this way pose a threat to the exchange rates, being subjected Iraqi dinar to collapse."
The method involves third , a "floating orbit," or unrestrained, according to al - Adli "determine the specific price of the dollar, and another represents a maximum him, to leave that currency floats between these two prices."
Banking expert continued that if exchange rates exceeded the maximum the central bank to pump quantities of the dollar as needed for the domestic market, adding that he suggested to the central bank and the government to adopt this way "being the best, and supported in most countries of the world."
On the other hand saw Observer of money market auction CBI Hamid Salim "that the bank is trying to maintain the stability of exchange rates," he said, adding that the monetary policy and instructions "change according to economic conditions experienced by the country."
And see world oil prices since the middle of last year continuous decline, due to the use by some countries to increase Marodha against the lack of demand for it.
He says Salim, a competent observer for fiscal policy in Iraq, "The cash bank reserves fell to $ 60 billion due to falling crude prices, but he assured that this decline does not threaten the collapse of the local currency, being blocked 160 percent of the money supply of the Iraqi dinar."
The governor of the central bank on the Keywords may Hoon earlier fears, which says that the continued downward pressure the Iraqi dinar, which sells "the central bank" for banks and dealers who obtained the licenses at a price fixed in 1166 dinars to the dollar.
"If we look at the markets these days, we will see that the price is very stable, and very reasonable."
The local currency plunged to about 1400 dinars to the dollar on the parallel market in mid-June 1228 from the week earlier.
As part of the government's efforts to bridge the budget deficit, Baghdad marketed the first version of its international bonds in nine years in Europe and the United States this week.
The government Taml collect six billion dollars of those dollar-denominated versions, but Keywords said that the first phase will be to collect two billion dollars, and the expectation that the interest rate exceeds the eight percent because of security concerns.
Baghdad also plans to issue local bonds worth five billion dollars, starting from the last quarter of this year.
The effect of flotation: -
would float the dinar that reduces pressure on the central bank in relation to the size of the foreign currency reserves, but this factor in the overall economy does not matter so much, but more importantly that the devaluation of national currency as a result of the flotation will lead to increased exports.
Products are Iraqi will become much cheaper in foreign markets (because of the Iraqi dinar depreciated significantly against the dollar and the euro, etc.) and thus become more competitive.
In contrast, imports will become much more expensive, and then it will be difficult for Iraqis to buy a lot of imported goods for high prices severely and this consequently will increase the consumption of local goods and the increase of the domestic economic activity.
But the disruption of the balance of exports and imports often lead to so-called "collective doubled demand", which in turn leads to higher inflation, and, of course, according to theoretical calculations, "he wrote the economy."
But add to that that the proportion of "parallel economy" (ie, that is outside the book) in Egypt is almost equal to the proportion of the informal economy, which means that the real inflation rates will be much higher than is caused by the collective demand doubled, may mean further impoverishment of the poorer classes already in the community
Forms of flotation: -either be floating or purely be directed:
- pure flotation: are left to determine the exchange rate to market forces and the mechanism of supply and demand in full, and the state refrain from any direct or indirect intervention.
- Flotation prompt: is left to determine the exchange rate to market forces and the mechanism of supply and demand, but the state intervenes (via the central bank) as needed in order to guide the exchange rates in certain directions by influencing the size of the offer or demand for foreign currencies.
Supporters of flotation: -
for as long as theorists monetary school in Economics defended (Milton Friedman model) for floating currencies, claiming that the liberalization of exchange rates will make it reflect the economic fundamentals of the various countries (growth, trade balance, inflation, interest rates), and will lead it thus to restore balance in relations trade and current accounts transactions consistently and automatically.
And sees these economists, like the neoclassical trend in the economy, that the liberation of all prices -osar goods and services, interest rates, labor prices (wages), foreign exchange rates (exchange rates) -oturk identified markets without any interference or direction from the state, always ensures access to state of balance.
This stems from the belief in blind efficient markets, despite the fact that economic reality has proved more than once that the markets in the absence of oversight and control lead to disaster (subprime mortgage crisis in the United States model).
And justify those convinced the currency float, saying that any trade deficit will lead to an intense demand for foreign currency, which will lead to devaluation of national currency against foreign currencies, and thus to enhance the competitiveness of the country concerned.
This sponsor, they say, increase exports and reduce imports, Viatdl so the trade deficit is due to a state of balance. The same logic works in reverse direction if there is a trade surplus.
Supporters of the flotation was welcomed very much the adoption of major economies in the world to systems of floating exchange rates (flexible), after the collapse of the Bretton Woods agreement in the seventies of the last century, which had been laid down by the International Monetary system based on fixed exchange rates (but adjustable) between currencies.
Disappointed after several decades of the adoption of a floating exchange rate systems and disseminated to a large number of countries around the world (including developing countries), the currency was floated promises rebalancing has been done to the trade balances of the world, the hopes of his supporters did not materialize.
Artificially low exchange current moved far from the supposed level that leads to a balance, and the biggest proof of that is the size of global imbalances (Global Imbalances), which reached record levels and still are resistant to treatment.
The United States and some European countries as well as many developing countries known as the case of a structural trade deficit for several decades. In contrast, China, Germany, Japan and oil-exporting countries known as a trade surplus structurally.
Instead of floating currencies that ensures a rebalancing of international trade relations, the world knew the case of monetary instability due to the continuing exchange rates and fluctuations big change, which is sometimes subject to any rational logic because of the psychological factors that frame the movement of global speculators.
Equivalent to float the currency we could call the free exchange rate system Free or flexible exchange rate system, which is under which system the central bank of the state to leave the exchange rate (exchange) currency local (dinar) in foreign currency (dollar) is determined according to the trends of demand and supply on the dollar, if the increased demand for the dollar in the foreign exchange market (dollar market), the dollar exchange rate tends to rise, and if the demand for the dollar has fallen, the dismissal rate tends to drop.
This means that the dollar exchange rate will be subject to waves of demand and supply of it, so it was on this system Floating float the currency, which let a floating currency value rise and fall with demand and supply waves.
And it is preferred to follow the policy of the currency was floated in weak economies or unstable due to the lack of equal competition between the local currency and foreign exchange in the market and the weakness of the industrial structure and the unavailability of exportable goods and the provision of foreign currencies increases the complexity of Almsolh.anthy