The Implications of the Improvement of the Iraqi Dinar Exchange Rate
Ali Mahmoud al-Fakiki Al-Hayat – 26/11/06/
The Iraqi dinar is witnessing a gradual improvement in its exchange rate these days. The price of the dinar has risen from $ 0.000676 in early November to $ 0.00069 later during the same month. This means that the number of dinars against one dollar dropped from 1480 dinars to 1440 during that period. It is noteworthy that the exchange rate in the 1970s was $3.20 for one dinar, which exceeds the current price by four thousand and six hundred times.
It seems that the Iraqi government is planning now to fix the exchange rate at 1000 dinars/dollars, which is almost one third. The government plans to make this gradual, in order to avoid a sudden rise. This was the lesson learned in the aftermath of the sudden catastrophic decline that had occurred among traders and businessmen in 1995 and the accompanying financial and commercial turmoil, bankruptcies and trade and banking collapses.
If the current rise of the exchange rate from 1480 dinars to 1000 dinars to one dollar is applied, some people in Iraq will gain while others will lose, as follows:
Losers:
A- Savers in dollar. Iraqi savers lost confidence in the dinar. This urged many of them to keep most of their savings in dollars. These include traders and industrialists. When they will need to convert their savings to dinars, the loss will be huge.
B- Contractors in projects priced in dollars: Those are paid in dollar, but the majority of their expenses and local purchases are usually in dinar. This includes the labor wages and their purchases of materials of local origin. This is the case with building and construction contractors who purchase local supplies and construction materials (bricks, soil, sand, gravel). When they submitted their quotations they had evaluated their contacting service at the prevailing exchange rate before raising the value of the dinar and now they have to pay at the new rate and hence lose. After they handover the projects, they will receive the rest of their money in dollars.
C- Lenders in dollar: They will regain their loans valued at less than the value before the rate of the dinar was raised.
D- Borrowers in dinar: They will pay their debts upon maturity in dinars of a dollar purchasing power more than that at the time of lending. They will have to pay in a dinar that exceeds the lending rate by almost one-third. When the major collapse happened in 1995, thousands of traders announced their bankruptcy while indebted to others, and this was disastrous.
E- Employees who earn in dollar.
F- Estate lessors with rental allowances in dollar while their expenses are in dinars.
G- Estate tenants who pay in dinar while their income is in dollar.
Gainers:
A- Savers in dinar, for being able to buy more dollars.
B- Employees and workers who are paid in dinar, since they will receive the same pay but with a more purchasing power and a better exchange rate.
C- Producers: since they will sell their products for the more powerful dinar.
D- Borrowers in dollar and whose savings are in dinar: since they will pay their debts and their interests in the cheaper dollar.
E- Retirees: they will have more purchases with the same salary.
F- Those covered by the program of the social safety network (the retirees themselves).
G- Estate lessors in dinar.
H- Estate tenants in dollar while their incomes are in dinar.
This means that raising the dinar exchange rate will benefit some and harm others.
It is noteworthy that the terrible continuous escalation in prices during the 1980s and 1990s of the last century in Iraq was not due to an increase in the value of money itself, but due to the fact that this increase was not met by a real balance or a strong national economy and national income or a supporting domestic product. When the State issued currency, it behaved like a merchant who issues instruments with no balance to meet their nominal value. Moreover, there were the constraints of trade and external transfer. Otherwise, the amount of money in circulation in a country like Japan is more than the amount of Iraqi currency in circulation (as an absolute figure).
During the post-war period, the balance was met, but the rise in prices was due to high costs and shortage of supply. For example, the average of the prices of Iraqi vegetables and fruit has increased this year by 100% as compared to the prices of 2005, but due to the shortfall in production. The agricultural expert Jaber Abu al-Eis (Ministry of Agriculture) says that the execution rate in the agricultural plan for 2006 amounted to 17%. The prices of local poultry products this year are twice as much as 2005. The reason was the banning of the poultry industry, among the procedures of combating avian flu and the prevention of the importation of these products from many countries. Moreover, it was due to the rise in the costs of energy, fuel and transportation costs to the double or even more. Also there are the imposed royalties paid by the importers, producers and transporters to gangs and bandits, including kidnapping payments and ransoms. There is also bribery, corruption and alliances between businessmen and government officials, in addition to the high wages, the rise in prices and interests of loans caused by the Central Bank. All these factors led to an increase in the cost of production and inflation rates. Such factors have to do with costs and supplies while they have nothing to do with demand. Thus, the saying, “Much money looking for a few commodities” does not apply here.
The current inflation is due to high cost and shortage of supply. Nowadays, the government ensured assets that cover the nominal value of money and a domestic product that supports it. But there remain two options. The first option is to increase the quantity (number of units) by a third, raise salaries and wages and expand and improve the miserable network of social safety to include additional numbers of extremely poor people living at half a dollar per day amounting to four million. The second option is that the government raises the dinar exchange rate by one third as it is planning now.
In the first case, the needy employees and workers who are not covered by social welfare will benefit, and there will be no loss or damage to other people. In the second case, employees, workers, retirees and others will benefit, but, at the same time, others will lose as mentioned earlier.
According to reliable sources, the second option comes in implementation of the directives of the International Monetary Fund. But, as we stated in a previous article, the former American Secretary of State, Henry Kissinger, described the IMF as “a doctor who has only one pill for every conceivable illness”.
* Mr. Ali Mahmoud al-Fakiki an Iraqi expert in economics
sumber dipetik dr: http://english.daralhayat.com/business/11-2006/Article-20061126-243a62de-c0a8-10ed-01a4-77df3c75f43d/story.html
richard
Aug 28, 2008 @ 12:54:00
harga per dinarnya sekarang berapa yah?
HUSSAINI
Aug 29, 2008 @ 07:54:44
SILA CEKS KAT http://www.cbi.iq INI ADALAH LAMAN WEB RASMI CENTRAL BANK OF IRAQI NOW!!
hadi fitrianto
Oct 11, 2008 @ 02:56:21
harga perdinar beraya ya skr?
Iraqi Dinar
Jul 31, 2010 @ 20:12:22
Iraqi Dinar is very real, but the pitch many Dinar dealers try to send your way is far from reality and designed to get you buy from them. Some of these dealers even go as far as to explain that they are trusted by the government and supply you with a document to reinforce this illusion.
First, the US government requires a business (or anyone for that matter) to register with them when selling any kind of currency. Once you register, the US Government will send you a letter confirming your registration. IT DOES NOT mean that they trust or vouch for the company, only that they complied with the law.
Read More:http://www.dinariraqi.net
zaki abd.rahman
Nov 19, 2010 @ 14:01:11
salam,berapa RM harga 25k dinar iraq?
Mohd Helmy
Nov 19, 2010 @ 15:51:12
IQD 25K = RM:68.35 ini adalah harga semasa e-currency dari CBI (Central Bank Of Iraq) tapi kalau Cash Note harganya mahal 25K =87.25 paling murah…. kalau paling mahal RM:150 hingga RM:200 🙂
dinaria
Nov 20, 2010 @ 02:25:26
yang paling mahal siapa jual ye?
Mohd Helmy
Nov 20, 2010 @ 14:06:35
Gi tanya Ali Maidin…. berapa dia jual…
**no promotion link.tq
25K = RM:375 🙂 🙂 🙂
Mohd Helmy
Nov 19, 2010 @ 15:40:55
Iraqi Finance: Delete the zeros from the currency will strengthen the position of Iraq to the International Monetary Fund
Thursday, November 18, 2010
Iraqi Finance: Delete the zeros from the currency will strengthen the position of Iraq to the International Monetary
Baghdad, The Iraqi Ministry of Finance, Thursday, that the deletion of zeros from the local currency will liberate the Iraqi economy from the constraints and enhance the value of the Iraqi dinar in the International Monetary Fund.
The chancellor said the Iraqi Ministry of Finance Zia Alckheon Kurdistan News Agency (Rn) that “the process of removing three zeroes from the local currency will strengthen Iraq’s economic position in the international community and specifically the International Monetary Fund.”
He added that the “survival of the current currency and the current status would not address the question of the economic gap taking place in the Iraqi dinar as it will increase the burden on the Iraqi economy.”
And that “the process of changing the currency certainly will take time and money, but is required to remove the barrier between the Iraqi economy and the global economy and to give more than the value of the Iraqi dinar.”
In the view of the central bank to raise the three zeroes from the local currency is a complex process and need to be thorough economic study.
He expressed the International Monetary Fund in August last support of the Iraqi economy in the event of having a number of economic measures, including privatization of banks and raise three zeroes from the local currency and to meet debt and compensation is the responsibility of Iraq.
The Iraqi government denied conducting any change in the local currency this year in order to reduce inflation.
The news has recently indicated that the Iraqi government plans to make changes to the local currency, including raising three zeros in order to reduce inflation suffered by the Iraqi market, as well as add the language Kurdish paper currency.
The local Iraqi currency has gone through several changes in its history, most recently in 2004 when the former Governing Council replaced the previous currency, which was a symbol of the former regime.
http://articlesofinterest-kelley.blogspot.com…
Mohd Helmy
Nov 19, 2010 @ 15:42:24
berita terkini….
Citizen / follow-up .. Mustafa Al Hashimi
Economic expert called for increased funds in central bank dollar and the reduction of import commodity because of its link the issue of the deletion of zeros.
Mahouelle’s (Citizen): The process of deletion must be matched by the power of currency
Said Dr Issam Mahouelle’s (Citizen) said yesterday that the process of deleting the zeros must be offset by increasing the power of the local currency to be considered at the highest levels of accuracy in choosing the appropriate time to inject a new currency.
Stressing that the issue is not the issue, but delete the zeros is the issue of currency of a country which can raise the value through the revitalization of internal and external trade balances and increase the dollar and the reduction of import.
The Central Bank of Iraq has affirmed its readiness to delete the zeros from the currency after the formation of the government directly, pointing at the same time that those zeros that are added to the Iraqi currency during the past formed a cluster of large cash amounted to 27 trillion Iraqi dinars.
The adviser said the Iraqi Central Bank Governor appearance of Mohammed Salih in an interview with “Alsumaria News”, “The zeros that are added to the Iraqi currency, during the last period, formed a cluster of large cash amounting to more than four trillion paper money, financial value amounted to 27 trillion Iraqi dinars, after that was 25 billion dinars in 1980, “noting that” Iraq is unable to manage this block because it is a small country where the large number of funds that traded on the Iraqi market has led to confusion in transactions for large commercial banks and in the work.
The Iraq and gradually the issuance of new banknotes after 1991 when it began currencies are scarce in the Iraqi market for several reasons, most notably the high demand for them to meet the buying and selling as well as the smuggling of currency abroad, and to the north of Iraq, which split its time for the central administration, which made the Iraqi government allows Central Bank of printing new banknotes to meet the local need, and continued the process of lifting of the zeroes of the dinar to beyond 2003 through the issuance of a class of cash amounting to 25 thousand dinars.
Saleh added that “the Bank has fully prepared to delete the zeros of the Iraqi dinar, once forming the Iraqi government,” noting that “the deletion of zeros is a national issue and may need to special legislation, despite the fact that the Central Bank of Iraq is a reform of the currency management from the core work and to delete the zeros is one of the strategic functions of the Central Bank of Iraq.
Saleh pointed out that “the Bank was able, during the last term, to reduce the level of inflation to the level of one decimal place, after more than twenty years,” noting that “Iraq has managed for the first time to reduce inflation to 3%, which reflects the success of the policy of the country’s monetary” . For his part, said economic expert on behalf of Jamil Antoine in an interview for “Alsumaria News”, “Iraq is not formatted for the time being to delete the zeros of the Iraqi dinar,” noting that “the deletion of zeros needed to stabilize the security and political, as well as economic stability.
Antoine said that “the central bank by seeking to delete the zeros of the Iraqi dinar is designed to give moral force, not physical strength of the dinar,” noting that “the deletion of zeros needed to create and cultural awareness for the Iraqi people and the Iraqi market.”
The CBI, with headquarters in Baghdad, has four branches in Basra and Sulaymaniyah, Irbil and Mosul, and founded the bank independent Iraqi under the law of the Central Bank of Iraq issued on the sixth of March 2004, and is responsible for the maintenance of price stability and the implementation of monetary policy, including policies, prices exchange and management of foreign reserves and the issuance of currency management, as well as to regulate the banking sector.
dinaria
Nov 20, 2010 @ 02:23:45
ini berita lama tak?
Mohd Helmy
Nov 20, 2010 @ 14:10:07
Artical ini dikeluarkan pada 18 Nov 2010…. dan nie yg terbaru.
Finance: Delete the zeros of the local currency enhances the value of the Iraqi dinar in the International Monetary Fund
Saturday, 20 – 11-2010
Palms – The Ministry of Finance that the “deletion of zeros from the local currency will liberate the Iraqi economy from the constraints and enhance the value of the Iraqi dinar” in the International Monetary Fund.
The chancellor said the Ministry of Finance Zia Alckheon that the survival of the current currency and the current status would not address the question of the economic gap taking place in the Iraqi dinar as it will increase the burden on the local economy.
The International Monetary Fund expressed support for the Iraqi economy in the event of having a number of economic measures, including privatization of banks and raise three zeroes from the currency and solvency.
ayiem
Nov 25, 2010 @ 00:29:17
Al-Maliki Will tomorrow to form the government an official ceremony attended by prominent political figures 24/11/2010 ad-7: 18 | readers number: 103
Ali al-mousowi confirmed media adviser to Prime Minister nouri Al-Maliki that the day after tomorrow will be mandated Al-Maliki to form the government by the president of the Republic Jalal Talabani during an official ceremony will be held at the headquarters of the presidency of the republic.
Al Mousawi said in a press statement: “That the invitation had been extended prominent political figures to attend the official ceremony, which will be assigned, nouri Al-Maliki, National Alliance candidate parliamentary bloc, the largest, to form the government,” he said.
http://www.burathane…cle_109976.html
dinaria
Nov 21, 2010 @ 05:53:39
raise three zeroes from the currency and solvency Apa maknanya ni? Sdr Helmy boleh terangkan?
Mohd Helmy
Nov 21, 2010 @ 13:47:41
maksud Solvency dalam ertikata engglish mudah = The ability of a corporation to meet its long-term fixed expenses and to accomplish long-term expansion and growth.
alih bahasa… Solvency dalam B.Malaysia :
Kemampuan syarikat untuk memenuhi kos jangka panjang yang tetap dan untuk mencapai pengembangan jangka panjang dan pertumbuhan.
dinaria
Nov 22, 2010 @ 15:52:00
maksud saya yang ni >> raise three zeroes from the currency
Acun Kidung
Nov 28, 2010 @ 05:23:10
ha??? pasal potong 3 angka tu…tangye cik helmyla
nun jauh di sana
Nov 29, 2010 @ 03:04:21
salam..
pasal delete 3 zero tu isu lapuk doh benornye..stat tahun 2006 agi duk main isu tu tp sapa skrng bank iraq x delete2 agi..nk tau kenape tanye bank iraq la..
Mohd Helmy
Nov 29, 2010 @ 05:16:43
tunggulah….31 Dec 2010… banyakkan baca News Iraq jangan cakap melulu…perangancangan nak mansuh 3 angka sifar dibuat dari tahun 2006 dan hasil dapat dilihat pada hujung tahun ini. he..he..he..
nun jauh di sana
Nov 29, 2010 @ 07:58:56
kalau delete 3 zero pun xde masalah..kat malaysia skrng dah ade agen y boleh tukarkan dinar iraq kpd note baru..ws
Mohd Helmy
Nov 29, 2010 @ 12:30:15
agen tu bukan ker orang tengah juga ….. he..he..he…
ayiem
Nov 30, 2010 @ 19:36:33
MEDIC Post: 15 day Countdown for forming the Government…..
DS – 11/30/2010
the period of 15 days set by the designate Nuri al-Maliki is sufficient to form a new government.*
9 days left!
The central bank is ready to delete the zeros from the dinar after the formation of the government directly
to delete the zeros of inclusion and shake off the dust to start translating them into reality after the formation of the new government and submitted to the House of Representatives
Economic Expert: The process of deletion of zeros from the currency is an important step will lead to economic recovery
Finance: Delete the zeros from the currency will strengthen the position of Iraq to International Monetary
Finance: Delete the zeros of the local currency enhances the value of the Iraqi dinar in the International Monetary Fund
“deletion of zeros from the local currency will liberate the Iraqi economy from the constraints and enhance the value of the Iraqi dinar”
The International Monetary Fund expressed support for the Iraqi economy in the event of having a number of economic measures, including privatization of banks and raise three zeroes from the currency and solvency.
Call to delete the zeros of the Iraqi dinar
Financial reiterates its demand to raise zeros from the currency
Iraqi Finance renewed its claim to raise zeros from the local currency
D. Ahmed Al-Wazzan: Raising three zeros from the nominal value of the Iraqi dinar
An Iraqi official announced the adoption of a new strategy intended to raise the value of the Iraqi dinar against foreign currencies.
Read more: http://dinarvets.com/forums/index.php?/topic/43527-medic-post-15-day-countdown-for-forming-the-government/#ixzz16nRmFSLO
nun jauh di sana
Nov 29, 2010 @ 08:05:29
y mnjadi masalah mungkin pasal buke acc..coz sy tgk cstmez2 di malaysia kne TT duit ke acc bank di Citibank US dlu..mungkin citibank tu jadi org tengah..kalu buke Acc direct ngn bank iraq insyaALLAH xde masalah..setakat ni y sy tau TT duit direct ke Acc kite trus n xde pulak kene TT ke bank US dlu n pastu baru ke iraq..mmg pelik sikit la kes ni..tp xpe..duit saudare n rsiko ditanggung oleh saudare..ape2 hal berlaku kat acc saudare nnti leh rujuk n call en helmy..insyaALLAH dier boleh mmbantu n x cabut lari..ws
Mohd Helmy
Nov 29, 2010 @ 12:40:24
🙂 🙂 🙂 saya faham… anda masih lagi berbicara tampa ilmu…carilah sebab mengapa nak tt duit ke Iraq mesti melalui CitiBank New York pada masa sekarang ini…anda pasti akan mendapat jawapannya….:-):-):-)
nun jauh di sana
Nov 29, 2010 @ 08:08:00
tp pesal en helmy x buat blog/web sndiri..kan senang cstmez nk cri nnti kalu ape2 trjadi pd acc dier org di bank iraq..tu bru gentlemen skit..he he…ws
Mohd Helmy
Nov 29, 2010 @ 13:00:12
maaf saya nak bertanya… adakah sekiranya dengan mempunyai Bolg atau laman web boleh memberi jaminan bahawa seseorang itu tidak boleh menipu???? saya rasa anda silap!!! orang kalau nak menipu…apa cara sekali pun dia boleh menipu….he..he..he.. berkenaan coustomer saya yg ada masalah tentang account mereka, saya rasa mereka tidak ada masalah untuk menghubungi saya.anda boleh bertanya didalam fourm ini siapa yg pernah berurusan ngan saya adakah mereka mempunyai masalah untuk menghubungi saya??? anda boleh mendapat jawapan dari mereka….
nun jauh di sana
Nov 30, 2010 @ 00:33:42
oraaiit en helmy..skurang2ye kalu ade blog/web sndiri nmpak skit identiti pembuke acc tu..tp pasal buke acc ni mmg sy confius la..xpe la..risiko dier org tanggung..sy confius coz buke acc warka Online aje..time TT pulak satu hal…rsenye malaysia lebih maju dr iraq tp smpai skrng xde buke acc Online jer..kalu nk transfer duit xpe Online..mula2 nk buke acc msti kite sndri pegi bank..nk wakilkan pun x leh..sungguh pelik..
Mohd Helmy
Nov 30, 2010 @ 01:18:49
saya X nampak kalau ada blog & laman web boleh menampakkan identiti seseorang….setahu saya perjumpaan 4 mata lebih menampakan identiti & gentelman seseorang…. . sekali lagi perlu diingat bahawa investment dinar ini mempunyai resiko…sekiranya anda x berani mengambil resiko jangan sesekali bermain dengan api….kelak akan membakar diri anda sendiri…hanya orang yg berani & mempunyai extra duit sahaja berani mengambil resiko,sekiranya anda mempunyai duit sekadar cukup2 makan jangan involve dalam investment ini……
nazhasecret
Nov 30, 2010 @ 08:06:49
salam all..blog ni akn dikemaskini scpt mungkin..byk sgt triple multiple id dikesan n sy akn delete..msih ade lg yg buat promotion..
pls be respect this is my blog so dunt hijack la beb..nk berniaga ke nk promo pls guna medium yg betul..aku pun pening org kol tnye pasal akaun online sdgkan aku xde kena mengena..yg mne jual fizikal note pun..masing2 ade blog kan..taruk je la bawah nama msa nk komen kt sini..spe minat klik la kt nma korang..
tk kisah la ade yg nk kata aku jual mhl ke,ade yg kata aku delete komen la,mcm2 la..aisey..sy owner blog ni kan..ikutkn suka ati la nk delete ke ape kn..tp aku blum delete komen yg nk shared link video ke ape..benda tu need my approval first..so dunt worry now im back to this blog ..akn semak balik link2 to ok..bagi msa nk menguruskan hal2 yg penting
fauzi
Apr 03, 2012 @ 07:53:43
huh kalu btul lah dapat hasil duit iraq maka kayalah aku
AZAM ALEZ
Apr 07, 2012 @ 17:29:19
DUIT MALAYSIA KLU KITE SUSUN SAME SIZE KN……TAPI KENAPA DUIT DINAR AKU SUSUN 7 KEPING TAK SAMA SIZE????KUALITY DUIT DINAR MMG MCM TU KE?
AZAM ALEZ
Apr 07, 2012 @ 17:30:38
TLG REPLY…TY
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Aug 07, 2013 @ 01:43:56
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