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Iraqi Dinar/Dollar auction (most recent listing) 05-11-16
Currency Auctions Announcement No. 3195
This daily currency auction was held in the Central Bank of Iraq on the 05-10-2016
The results were as follows:
| DETAILS | NOTES |
| Number of banks | 26 |
| Number of remittance companies | 12 |
| Auction price selling dinar / US$ | 1182 |
| Auction price buying dinar / US$ | —– |
| Amount sold at auction price (US$) | 98,756,000 |
| Amount purchased at Auction price (US$) | —– |
| Total offers for buying (US$) | 98,756,000 |
| Total offers for selling (US$) | —– |
More: http://dinarupdates.com/observer/
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Central Bank Governor: Near give Iraq $ 15 billion over two years
Confirmed for the morning {} that the financial reserve reassuring international recognition
Baghdad , Tariq al – Araji – The central bank revealed near granted Iraq $ 15 billion paid over two years from the International Monetary Fund, the seven industrialized nations and the World Bank to help Iraq to overcome the financial crisis. And as he emphasized that the bank reserves of hard currency reassuring recognition of international organizations, he stressed not to raise the price of the dollar against the dinar because it would adversely affect the low-income people. The governor of the central bank on the Keywords in the interview with the «morning» dialogue: that Iraq is facing two major challenges in the economic and financial system and the two border crossings, customs, and the sale of foreign currency to the associated funds.
The following is the text of the interview
* What is your appreciation of the currency market selling daily?
– The subject of selling the currency requires a lot of clarification, especially as the sales process itself is not a negative exercise , a process carried out by the markets , and central banks in the world in order to maintain the stability of the general price through the stabilization of the exchange rate and inflation targeting , and this is provided for in the Central Bank Law Ban sells foreign currency and as reported by providing simple unconditional sales in the sense should shoot and selling process launched in line with the market economy , according to the Constitution and to meet the market need both for imports or for other purposes legitimate transfers, as well as Iraq in front of the international Monetary Fund ‘s commitment to the agreement signed in 2008 that states do not place restrictions before the sale of foreign currency process any sales launch process without restrictions to achieve control over the exchange rate and control of speculative dollar operation and when to meet whatever its size when the area does not remain to exploitation or monopoly demand or speculative dollar with the necessity of having effective control over the safety of those operations.
Currency market
* Who controls on the sale of currency and exchange rate?
– The dollar source in Iraq ‘s oil, meaning that the source of the general budget revenues to more than 90 percent is from the oil dollar and expenditures are Denar including accounted for 80 percent or more , so the Ministry of Finance the process of selling the dollar to the market to get the dinar Central Bank and the intermediary in the process , the dollar is transferred to dinars by selling it in the market and the granting of the dinar to the Ministry of Finance any that recent theory can is that in the process of selling the dollar directly to the market to feed its budget but because of the competence of the central bank ‘s monetary policy and control over the exchange rate is the body that are more control and jurisdiction over the subject. Also , some people do not distinguish between central bank reserves and treasury reserves or state or government dollar that accumulates at the central bank from the sale of the dinar is the cover of the local currency and it should be as far as the local currency and has maintained a more than this rate and more than one and a half in the sense that reserves foreign currency equivalent to more than the Iraqi dinar to one and a half and the international standard to be one – to-one or seventy percent , and some believe that this reserve is the government ‘s reserves , therefore , when at least be to display a state of anxiety and the fact that the real surplus of the government is that accumulates in the Ministry of Finance and not in the central bank even if the Finance Ministry does not sell every dollar to the market by the central bank maintains a department for him this is what represents a reserve or the real surplus of the government so that it can be used to fill the surplus years the budget deficit. Also, the existing reserves at the central bank when it does not go over to the Treasury when bent is not taken from the treasury and no related state treasury.
Bank Law
* In case the government approached the central bank to lend Can you that?
– Central Bank Act does not allow lending to the government, but can on according to its law to buy treasury transfers issued by the Ministry of Finance , which bought the bank of banks that buy these remittances in the sense that restores deducted Central Bank and the so- called market secondary meaning that the primary market when it issued the transfer from the Ministry of Finance may not be the central bank to buy it , but if purchased by banks and resold them then the Central Bank may be bought, and this is what he is doing now and be the cause of the decline in reserve at the central bank is therefore strange that some of the politicians or members of the House of Representatives wondering how to lower bank reserves Central at the time made the budget a deficit covered vouchers Treasury bought by the central bank and in the budget bill that the central bank buys these remittances Petrlionat dinars central bank when it bought pumped dinar for the government to spend and this spending turn into a demand – importing any demand for the dollar «reserve». And that the financial and economic situation in spite of a controlled financial crisis and the fear of some politicians and citizens emanated from lack of awareness of a real understanding of monetary policy and the low level of awareness and this is a problem faced by the central bank.
Currency auction
* There are those who demand to cancel the auction of the currency, what do you think?
– Some forms that why there is an auction at the Central Bank of foreign currency in spite of the absence of such thing as an auction and the auction was in 2004 and entered Iraq as part of a fixed exchange rate set by the central bank rate and if the bank deliberately to the sales increase in the exchange rate means reduced purchasing power of citizens because Iraq importing country , even if an exporter at that devaluation will help increase exports , while in the case of Iraq when the lower value of the dinar and you are importer will be negatively reflected in the lives of citizens with limited income , therefore those who claim the central bank to reduce the value of the dinar we have told them Can you in parliament or The government Tkhvadwa staff salaries even though it was five or ten percent ones find difficult to do, and it how you want from the central bank to cut the value of real salaries by up to 30 percent in order to be rewarding in the sense that inflation will reach 50 percent , the sense of targeting low – income class and secondly the export of oil now does not come with more than a billion and a quarter Alumblyaraly and a half billion a month , and even if it has been reduced dinar was awarded the Ministry of Finance the largest amount versus the dollar amount will not create a big difference because the little amount , while that hit the purchasing power of citizens Valmrdod happen would be simple to the Ministry of Finance.
Address the imbalance
* What are your comments on the sale of currency, and how Stajawn the imbalance in it?
– The gap in the currency issue is not in the sales process, because it is a natural process carried out by all nations and teams of Iraq from other countries that these countries have other sources of dollars central bank where they do not have to sell the resort to sell when there is an imbalance presents an amount or withdraw amounts and now , for example , Turkey find that the flow of tourists and a large investment dollar volume covers the need of the market and the central bank does not need to sell the dollar versa banking companies are sending dollars to the bank to take the Turkish currency against which, but Iraq has other sources of dollars No, no dollars left in the market can meet the need Tourism parked semi – Off and investments and remittances from Iraqis from outside to inside and no transfers of Iraqis from the inside out increasingly, for example , citizens out of their money and sell their role and leaving Iraq authorized the central bank is not in front of the option of selling or not.
Strengthen oversight
And Osaf Products: Also , the bank in the event of his failure to sell the dollar will reach more than 5000 dinars scarcity of the dollar in the market, and here fear the sale is not a case of selling because he is the right of the merchant and the citizen who wishes to switch on according to the Constitution and the law , that this his property has the right to behave turning it from one currency to another , but there must be control over the money that bought the dollar and turn to outside sources is the escape of money derived from corruption Aogeraim or money laundering or terrorist financing or other and this was the fundamental weaknesses and requirements and the rules of the fight against money laundering in all the world points escalated over the past years and very large risks, so since I’ve been secretary general of the Council of Ministers asked for activating the role of anti – money laundering in the Central Bank office but did not do , and now has been activated along with an emphasis on bank’s compliance with anti – money laundering and the application of the principle of know your customer applied by all banks in the world must know his client where you have the money and the need to make sure is realized that the money that was legitimate and has direct this project, but needs time to apply it to the side to follow a lot of procedures and rules for banks to work and commitment through precise control and emphasis on this Thread dramatically , but now has become a requirement basis in the dollar sale of any bank or company is to make sure of the extent of his commitment to anti – money laundering rules.
The reality of the economy
* The extent of coordination between the central bank and the relevant institutions to improve Iraq ‘s economic reality?
– Adjust the border crossing points and the application of customs duties properly does not make the bank thinks reducing the value of the dinar as an option to increase the funding of the budget, but the option would be the proceeds from the tariffs and this is where the advantages of more than a devaluation, because the tariffs sorted by luxury and necessities of goods , therefore the citizen when consumed merchandise normal and essential will not be harmed and tariffs also would protect domestic production and indirectly will provide foreign currency instead of going abroad to import goods will be the goods at home and this will help the productive base of the development in the country to run the citizens and creates incomes real is dependent on oil revenue , and there are other advantages in ports in quality, health, environment control and that we pay the price dramatically.
Currency Exchange
* What are the mechanisms in place before you , to control the currency to convert overseas?
– Central Bank and control over the conversion process and to make sure it went to the titles that came out, which is often done on the basis of coverage of imports central bank when advancing his dealer invoice through his bank to import cars from confirming the validity of this matter is the Customs Authority so since the work directly in the bank In a series of regulatory measures that have been activated is to instruct that all transactions are by the bank and the network of bank and corporate conversion for the purposes of import gives more detail to the General Administration of customs, taxes and this provides a controlled interview and provide confirmation of the validity of the operations or not and provides a base for the collection of customs duties and will provide an important free base The key is not available to the body for any other way and the question is whether Haita customs and taxes benefited from this rule soon not and are now trying to utilize them and those filed reports are not the central bank ‘s job, but for the coordination and cooperation and to provide the base and the realization of the bank to double the tax and customs system. Also , this measure will engulf both transgressor real leaves , issued by the central bank to obtain customs duties and annual taxes, the corruption that exists helped on the case of chaos and poor oversight in recent years in the sense of customs permits required by the bank who Asthsaloa amounts mostly false and more that some people who have provided lists the health of the issuance have been paid against which the amounts were purchased corruption. And cofactor which the central bank appointed by the issue of coverage of imports, is the return to work curriculum import sense Ministry of Commerce issued disclosure need Iraq ‘s annual Accordingly, the central bank believes amounts to this need and asked the Commerce Department to provide us disclose annually , but it has not responded so far.
Target bank
* Why it is aimed at the central bank by some politicians and the media?
– Targeting central bank in part a lack of understanding and partly because of the steadfast and proven institutions for financial and economic situation and the World Bank last year , so far supportive of the liquidity of cash through the purchase of treasury transfers but not to Iraq has seen a collapse in the financial situation. The economic situation of the country experiencing fear and the central bank is part of the system, but by working with existing institutions in the United States and international organizations as a fund cash and the World Bank do not point to a fear of the collapse of the central bank and the IMF still believes that the central bank plays an important role in maintaining the exchange rate stability and to maintain reserves and the latest report released a month from the international Monetary Fund before confirmed that the reserve is located in the central bank more than the Fund ‘s expectations so the IMF and the World Bank do not have concerns about the bank and believe that the role played by helped to stabilize the financial situation and has had a the foundation role in stabilizing the financial situation and not to the government is not able to cover expenses and even salaries.
International Support
* What is the amount of support provided by the specialized international organizations for Iraq?
– We got to the final stages to get the support from the International Monetary Fund and World Bank industrialized nations seven of the next two years up to $ 15 billion, the central bank and the Ministry of Finance and play the foundation role in holding talks and arrangements for this support and intervention under different titles, some of which facilities and loans and grants to override the financial crisis and this is right for Iraq because it pays annual subscription since the founding of these organizations and IMF conditions correspond to the conditions and terms of Iraq reformist because Iraq wanted to raise revenue and reduce consumer expenditure and wants to improve the standard of living , and this corresponds with the Fund wants among the conditions , but affect all issues social nature or the health, educational and unwound considered a breach. The big challenge in front of the bank is to maintain the value of the dinar in spite of lower oil prices and the central bank has stood in defense of the exchange rate and the purchasing power and maintain a reasonable level of foreign currency reserves price, we are fighting a major challenge and are making an extraordinary effort for the sake of it, in the past years was the dollar derived from the export of oil in Iraq , up to 8 or $ 9 billion a month, and has now fallen dramatically , putting a big challenge in front of the central bank with the continuation of government spending high, that the most dangerous thing that the central bank is facing when it issued the budget deficit and the means do not cover them by the Ministry of Finance dinars Vtguetrd through treasury transfers means that the dinar becomes a demand for the dollar has no dollars interview.
* Wayne arrived the project to delete the zeros?
– The project to delete the zeros still exists in the Central Bank, but can not do this job unless stability is achieved in the country, organizational stability and administrative and financial , to ensure that breaches or problems in the implementation of the project.
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Iraqi ports announces high finance its imports to their highest rate in five years
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rcookie (Dinar Guru) – THEY ARE READY AND ABLE TO ACCEPT ARTICLE VIII OBLIGATIONS…AND ALL THEY ENTAIL…AT ANY TIME…
Read More: http://www.dinarupdates.com/observer/
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Abadi Office calls for Parliament to conduct its business and confirms secure protection
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rcookie (Dinar Guru) – …ABADI AND JABOURI HAVE GIVEN ABSOLUTE ASSURANCES OF 2 MAIN THINGS…THE PROSECUTION OF “INFILTRATORS” OF PARLIAMENT AND PROPERTY DAMAGE OF PROTESTORS AND DEMONSTRATORS (SADRISTS)…AS WELL AS BOLSTERING OF SECURITY AND PROTECTION MEASURES OF MILITARY PERSONNEL DEPLOYMENT AT STATE INSTITUTIONS AND PRIVATE PROPERTY…AND CITED 2 BIG…BIG…BIG UPCOMING HIGH LEVEL MEETINGS…1 WITH IMF…AND THE OTHER G7 TO SUPPORT IRAQ ECONOMICALLY AND SUPPORT OF COMPREHENSIVE REFORMS…
Read More: http://www.dinarupdates.com/observer/
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Freedom of movement of capital to attract investment
BAGHDAD – Imad Emirate – Called economic Academy to ease restrictions on money entering heads to Iraq what would bring more attractive to foreign investment that the country needs to strengthen the infrastructure and development services.
He Acanuto Star Jaber Al- Omran , from the Faculty of Management and Economics at the University of Mustansiriya: the risk that hinder investment in all countries of the world is to change monetary and fiscal policies in the investor state where or put restrictions on currency conversion abroad or the imposition of new taxes.
He said in an interview for «morning », in some cases , the governments of these countries to resort to expropriation of foreigners through the steps of nationalization and its management of investment projects, noting, that this has happened in quite a number of countries , both in the continent of Asia, Africa or South America.
He said Imran, all that due to lack of political and economic instability and the lack of legal legislation guaranteeing foreign investor rights and is protected under frequent occurrence in these countries political and economic fluctuations , especially in regard to the long – term investment.
«it refers economists to the presence of many determinants that hinder the movement of capital and flow to this or that country, usually observe several divisions of these determinants we observe under several labels, including political, economic, financial, administrative, technological, legal and technical side of financial and administrative corruption, also note other divisions related to economic reform and the exchange rate and inflation ».
He returned Omran adds that politically stable countries and economically all over the world are working very hard to provide the appropriate environment to attract more foreign investment, and therefore believes that countries in Southeast Asia, such as Malaysia and Singapore, had years before others in this area after it began providing the proper environment of the local private sector to work .
He said it carried out the privatization in the early and largely what led to attracting foreign direct investment , especially in the public benefit institutions, banks and the areas of communication, and then followed by China , South Korea and India, as did the countries of South America , where she worked to enact laws and regulations that ensure the protection of foreign direct investment and development and reducing the restrictions imposed on it.
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For a peek at all the most up-to-date DU News – check the Iraq News Thread (in the forum)…
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The Exchange Rate of Foreign Currency in Economic Feasibility Studies
Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.
Estimate the shadow price of foreign currency:
1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.
The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.
* What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.In particular the following outputs and inputs of foreign currency were distinguished:
- Export-outputs.
- Outputs marketed locally that substitute imports.
- Imported inputs.
- Inputs produced locally that usually go to exports.
- Foreign labor.
According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.
In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency …. etc.).
In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.
2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports… etc.
The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:
- The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.
- The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.
- The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.
- The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.
- This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.
And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.
3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.
Read More: http://www.dinarupdates.com/showthread.php?18519-The-Dinar-Daily-Monday-May-9th-2015&p=128477#post128477
This was for the IDIOT trying to tell me there was NO LEGITIMATE info available on the Iraqi Dinar – but that the Iranian Rial was a GOOD INVESTMENT.
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CURRENCY CODE SELL BUY
Dinar to USD – Dinar Value – Iraqi Dinar “IQD” listing
| CURRENCY | CODE | SELL | BUY |
| US dollar | USD | 1182.000 | 1180.000 |
| Euro | EUR | 1344.525 | 1343.853 |
| British pound | GBP | 1704.799 | 1703.946 |
| Canadian dollar | CAD | 912.107 | 911.651 |
| Swiss franc | CHF | 1213.677 | 1213.070 |
| Swedish krona | SEK | 145.157 | 145.085 |
| Norwegian krone | NOK | 143.769 | 143.698 |
| Danish krone | DKK | 180.726 | 180.635 |
| Japanese yen | JPY | 10.899 | 10.894 |
| Special Drawing Rights |
SDR | 1668.499 | 1667.665 |