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Abdul Mahdi emphasizes the need to remedy the situation of the economy to increase gross national

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ikea


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http://alforatnews.com/modules/news/article.php?storyid=136236

Abdul Mahdi emphasizes the need to remedy the situation of the economy to increase gross national

Tarikh التحریر: 2017/1/7 19:03 • 98 times its read

{Baghdad: Euphrates news}
assured the Iraqi Islamic Supreme Council leader, Adel Abdul Mahdi, the need to remedy the situation of the economy to increase the national output.

Abdul Mahdi said in a speech published Saturday that "Exchange systems are divided into two basic, or a mixture of both. Fixed rate and guaranteeing the State, mobile exchange rate according to supply and demand.

Adopting the first Iraq {JD 0.333/$} before 2003 and adopted the second dimension through an auction.

"The auction is only a market of supply and demand for the currency. There is a large demand, limited view due to a decline in oil imports by about 60% {2015-2016}.

What was sold {250-300}, now {100-150} million dollars a day.

The result reduced the value of the dinar, market disorder and attendant speculation and realization of grey and black markets wrap."

"No fixed exchange rate prevents the appearance of a grey and black markets when dollar offer retreats, as was the late 1970s, and in particular after oil exports and siege. The dollar reached {2000-3000}, {6000-9000%} and with increased oil imports and provide the dollar after 2003, the value of the dinar to the dollar rose about 20% of {1500} {1180} approximately JD JD/dollars.

"With the current dollar scarcity, dropped almost 8% dinars what is sold in the auction {1190} it was not merely a question of fraud and sought to pay dividends, but mainly demand-supply failure, serious distortions in the economy generally.

The phenomenon of Exchange prices, in many countries, it appears has {2.3} rates of black and grey markets.

Significant pressures on central banks in many countries, causing declining exchange rates generally about 18% in 2016, but 70%, 110%, 136% in Nigeria, Uzbekistan and Angola respectively.

The currency is the top commodity demand globally, $3 trillion are traded almost daily.

He pointed out that "the auction interface of deep, is relying on oil to provide the dollar, weak national economy and dependence on imports. Economics and experience shows, ", stating that "when the gap between supply and demand, the administrative procedure waltshddih is not sufficient alone.

"But to exaggerate and abuse leads to further acts of circumvention and fraud and immigration.

Restoring the economy required to increase the national output, improve the balance of trade and payments resources other than oil.

The monetary system would not address the individually faulty financial and economic system. He's like a rash treatment for AIDS like disease superficially, without understanding that respect blood analyses, and weak.

It was "a difficult currency dinar when it turns easily to other hard currency price at auction. And the migration of money and exchange rate caused by the weak economy and investment environment, rising imports, and the urgent need for dollars.

The basic issue is not a valid or forged documents, these are all manifestations of the disorder. In 2015 global reports about imports were 39 billion dollars, auction sales volume approximately 44 billion dollars.

So if we add the need for non-dollar commodity import purposes, the auction reflects this overall balance.

It is basically a window to obtain foreign currency, if provided, would seek to provide the DUNS and more speculators circumvent, delivering higher Exchange."

He noted that the Central Bank's seven criteria for "good compliance" and applying contemporary systems, and applied with the beginning of 2017, whereby banks granted the right to participate and their levels, which help to improve performance, but not to repair the economic and financial realities, and relying on the dollar and imports.

He continued saying "central reserves fell to less than 50 billion, compared with $77 billion {٢٠١٤}. Internal and external debt grew.

In contrast, most banks stocks retreated to less than JD for the arrow, which is the purchase price upon incorporation, capital minimum 250 billion dinars.

Bank balance sheets reveals to walk her {when you win} than {10.15%} for years, is lower than the trade sector, food, construction, health, communications and transport.

He explains the difficulties, bankruptcy, migration of funds which you will find satisfied top profit out of the country.

And we will see more financial fallout constantly scarce and oil dependence, staying at the administrative and punitive, and the Government's inability to pay dues of contractors and companies, who in turn would fail to fulfill their obligations with banks.

Seal as saying that "courageous policy required to attract money and entered banking session, Government and private banks, equality and promote investment environment to the real sectors.

Otherwise I will continue to rely on import, and the need for a dollar, and increased the gap between the price of the auction and marketplace.

tlm724

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Thanks for posting ikea !!

"the need to correct the situation of the economy to increase the national output.
Mahdi said in a speech released him Saturday that "divided drainage systems to statutes, or a combination of both .. fixed rate and guarantor state, the price of mobile exchange rate according to supply and demand."


The " mobile exchange rate" he is referring to is a float. Just a reminder of the difference between a float and a fixed rate. A floating exchange rate is a regime where the currency price is set by the forex market based on supply and demand compared with other currencies. This is in contrast to a fixed exchange rate, in which the government entirely or predominantly determines the rate.

"The issue is not just fraud and the pursuit of colossal profits, but mainly the failure of supply to meet demand, and serious distortions in the economy in general."

" the auction interface profound disease, which rely on oil to provide the dollar, and the weakness of the national economy and reliance on imports. It shows the economics and experience, "noting that" when the gap widening between supply and demand, the administrative procedures and tightening is not enough on its own."

"but that exaggeration and abuse are leading to further acts of circumvention and fraud and the migration of money. What is needed is correct the conditions of the economy to increase the national output, and improve the balance of trade and payments to other resources is oil. The system of cash will not address its own financial and economic system malfunction. It as a treatment rashes for" AIDS " like a disease superficially, without understanding that he respect to the decomposition of the blood, and the weakness of HIV. "

He is saying the CBI and the GOI are putting a band aid on the monetary and banking systems  instead of getting stitches for a 12 inch laceration that will make you bleed out. The whole economy is backwards. Yes they know the direction but getting there is painfully slow. As long as they rely on oil they will never get to a free market economy. They must establish the private sector and generate revenue through many sources at one time ie: tariffs make some good dough and so will many other sectors such as agriculture, building etc...  

he went on saying that " the dinar is" hard currency "when easily turn difficult for other currency to its price in the auction. And the migration of funds and the high exchange rate caused by the weak economy and investment environment, and rising imports, and the urgent need for the dollar"

If they can reduce the need for dollar then the dinar can become the sole currency used in the country thus ridding themselves of the dual currency practices. This reduction will eliminate the need for the auctions which is still the biggest culprit of money laundering no matter what Iraq says ! The CBI has failed miserably in their ability to control the flow of dollars out of the country and it is getting a lot of unwelcomed attention at this time. All eye's are upon them and Ali Alak . In 2015 there was a $5 billion dollar difference in how many dollars they NEEDED to pay for imports and HOW much the sold, so $5 billion went astray ! And how much lower are they gonna allow the reserves to fall ?? Someone better get a grip and quick like a bunny !



"He noted that the seven criteria the central bank's" good compliance "and the application of modern systems, and applied with the beginning of 2017, which is granted under banks the right to participate and levels, is the effort to improve performance, but not to repair the economic and financial reality, relying on the dollar and imports."

So the CBI is trying to institute " good compliance " cough cough in the beginning of 2017 and I have to ask myself this " Is allowing more banks and traders to participate in the auctions going to actually help ? " I think not. They need to continue down the path laid out by the IMF and get it together and done already. If it was me first thing I would do id give Alak his walking papers. Yeah he is a puppet but he keeps getting his strings knotted up...

Last thought , Bondlady would have surely loved this quote "Iraq adopted the first {0.333 dinars / USD} before 2003" She sure did love that number 333...


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Lifes purpose is not to arrive at the grave in a well preserved body, but rather to slide in sideways shouting HOLY CHIT what a ride

RCS1947


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timmie thanks for this article and comments.....and again from me and all of the members, thanks for all that you do!

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