KTFA:

DeepWoodz:  Just for FUN....So I’m bored and that’s never good. I get out the Turkmenistan model and wanna play with the numbers. 

Sadly I’m not that smart, but I gave it a try and am in need of checking. Please? For funs sake. 

so here is what I got....

The devalue they initiated was partly due to the difference in exchange rates between the CBI and the secondary markets. They call it Exchange rate unification when they try to equal the rates out. There are other reasons they did this...ie...stop using dollars, bring in the 000’s. 

Here’s the comparisons and they match precisely......

Iraqi Dinar - From 1200 to 1450 = 20% increase.

Turk manat - From 5200 to 6250 = 20% increase

After unification the manat was put at 5000.

After they issued NSCN’s and gave the new rate to go with....

$1=2.85 manat

1 manat=$0.35

An increase in value of 1754%

5000/2.85 = 1,754.385964912281

So from here I just swap the numbers and try to figure for what I want to know. 

1450/x = 1,754.385964912281

X = 1.209921355111918

$1 = 1.209921355111918 dinar

1 dinar = $0.8265

One more time....I’m not sure if I did this right but it seems about right for what we’ve been considering. Imo

If by some chance this is close to being right....I for one will be waiting another two weeks to see what happens.

So I came back to modify this after Petra reminded me of something. 

In order for the Iraqi Dinar to be accepted by the citizens to the point where they no longer use our dollar, the value should be greater than that of the dollar.

 One article even mentioned it but showed it backwards. Example:($1=1.45) Imo...it should’ve been written 1IQD=$1.45.

That may be enough, but honestly, I seriously think a rate of 1 dinar = $5.00 is a legitimate number. 

If the “Glory days” were 3.22 or whatever, add that “inflation”.That puts you above 4. Add 1 more simply because of the extraordinary amount of effort that’s been put into this and it’s really not a stretch. 

All in fun with a side order of I’m not joking!!! Lol

OlLar:  If I were living there with a bunch of Dinars i had squirrelled away under my mattress for several years and they offered me .82/IQD, I would take it in a heartbeat. Suck in those 000 notes at a cheaper rate then later add some value. IMO

Ross:  Good Point Ol_lar and they could have some of mine 000 notes too. Like F26 has stated some (me) might sell some cheap to pay bills, get out of debt or whatever and still save most for when the expected increase happens.  IMO

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Samson:  Parliamentary Finance reveals the truth about the intention of the Central Bank to change the dollar's exchange rate

01/02/2021 12:31:58

The Parliamentary Finance Committee revealed, on Saturday, the fact that the Central Bank intends to change the exchange rate of the dollar again.

Committee member Jamal Cougar told {Al Furat News} that "it is not possible for the central bank to re-price the dollar again," stressing that "do not retreat from the new exchange rate and it is unrealistic for the monetary authority to circumvent itself."

Cougar added, "There will be no retreat from changing the exchange rate and no new rate may be adopted because it will confuse the entire market," noting that "we need two weeks to overcome the crisis of changing the price so that citizens adapt to the new price."   LINK

Lawrence:  and here's to respecting the first 2 weeks of January, ..( thumbs up) .....per Frank gotta love the early intel

Don961:  A realistic proposal to get out of the economic crisis, the decline of the Iraqi dinar, and the reluctance to pay pensions

by 7 Hours ago  Muhammad Tawfiq Allawi,

To recover from this reality, we need attribution on more than one level from many countries in the world, but unfortunately most countries are not ready to entrust the government for several reasons, the most important of which is the spread of corruption, loss of security and loss of the environment that attracts investment.

 The current environment and laws are an environment and laws that repel investment, the most important reason for rampant corruption is that most of the ministers came through quotas from political parties that have their own committees and economic offices, but many employees of special ranks, general directors and others are also affiliated with the parties

There is no political ability to hold them accountable in the event of their corruption due to the existence of an unwritten law between the parties (shut up on my corruption, shut up about your corruption), and therefore it was natural for the European Union to place Iraq on the black list in July 2020 due to rampant corruption Money laundering;

In this case, what is required is, first, to renegotiate with the European system and adhere to the conditions to get Iraq out of the blacklist;

Secondly, what is required is to renegotiate with more than one party to obtain soft loans, such as renegotiating with (EXIM BANK) to obtain a soft loan of five billion dollars, which, if used properly, will qualify the country for a similar group of loans in the short term that can reach Tens of billions of dollars, in addition to the use of the ten billion pound guarantee by the British government, as it has not yet been done due to ignorance to provide integrated studies for the use of this loan.

If it is dealt with in a thoughtful manner, it could qualify the country to obtain tens of billions of other pounds, In addition to the use of nearly thirty billion dollars, most of it as soft loans at the Kuwait conference, unfortunately all of these failures are due to the lack of a clear economic policy and because of the political quotas that have led to the spread of corruption and the appointment of many corrupt and inefficient people in decision-making positions whose main concern is to achieve their own interests and interests. Political actors that She brought them, not to advance the country and lead it to the shore of peace;

From the aforementioned, what is required to get out of the crisis is to fulfill the five things below, which are:

1) For a government to be formed far from quotas, whose ministers are competent, loyal and honest.
2) That a government is capable of striking the corrupt and ending the state of corruption and bribery rampant in all parts of the state.
3) That a government is able to end the uncontrolled weapons and the state of chaos and insecurity, and is able to control the border crossings.
4) Providing the minimum infrastructure for the industrial cities that can be established within six months, especially the provision of electric power.
5) Changing more than ninety paragraphs in the laws that hinder investment, as well as many unexamined instructions and procedures that hinder investment as well.

And I can say with confidence that if the above five things are available, the government can understand and deal with a group of countries, a group of major international companies, a group of international banks and international financing agencies, and obtain financing from financing agencies and international banks with easy loans ranging Between 300 to 500 billion dollars, as it is possible to overcome the difficult financial situation that the country is going through and to appoint millions of young people in industrial, agricultural and service projects as a mixed sector and partnerships with global strategic partners and bring about a major renaissance in the country; 

These loans can be repaid and their interest paid easily because the profits achieved are much higher than the benefits involved. Rather, these projects can achieve large profits as an alternative to oil in the event that agricultural and industrial products are exported outside Iraq.   LINK

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Don961:  A contradiction between the 2021 budget and the devaluation of the dinar ... !!

2/1/2021 22:41:00    Dr. Aras Hussain Dartach

In the beginning .... there is a famous saying among economists, which is that if (two) economists discuss an economic leader (one), they come out with (three) opinions as a result, due to the multiplicity of its effects and repercussions.

In this regard, we respect   the Iraqi government's actions   regarding the   devaluation of the dinar, imposing income tax on salaries, deducting or reducing them   , stopping   employment, imposing indirect taxes on many goods and services, in   addition to reducing government support for a number of services or goods,   etc. Financial and cash prospects.

And if   the Iraqi government has resorted to    carrying out these financial and monetary measures under the guidance and recommendation   of the two  international monetary organizations and the World Bank, in   order to carry out the financial and monetary reforms required of Iraq to carry out them, in order to facilitate the way for him to obtain the   aid provided by them to him.

 While we appreciate the   validity of the proposals of these two organizations   according to the pillars of the market economy, but we   see in practice, through the experiences and applications of a number of countries, that the proposals or conditions of these two organizations imposed on them were not completely consistent   or realistic with the conditions of those countries,    but rather caused Many problems for some of them.

In any case .... If the government had these monetary and financial shocks   , as it claims, it is in order to    (raise the competitiveness of the   Iraqi economy in front of foreign imports   and to reduce the size of the fiscal deficit   in the general budget and preserve the dollar reserves), but it   was It will constitute social, economic   and political repercussions   in the Iraqi arena.

As there is another opinion that does not agree with, or does not prefer, the events of such shocks in the current turbulent Iraqi situation. Especially   in the event that there are arguments or   options other than those taken   by the government in   order to achieve its desired goals   and without   causing serious harm to citizens ,   which   can be summarized and in simple language as follows: -

First - that the Iraqi people receive and receive shocks consistently enough, and they do not deserve and do not need more. It was preferable to pass the   recent government shocks gradually, promotional and   calmly, and after preparing and preparing the   appropriate ground for them, in order to He is preparing   to assimilate and accept them and liquidate   his previous transactions and accounts in a regular manner and without   sudden events ,   according to the new exchange rate   , so that the   situation does not turn   into more turbulent and unexpected damage to it.

Second - Since market prices will become valued at the   new exchange rate of the dollar, so the entry of Iraqi citizens will lose their (real) value up to (23% ؜   or more) due to the high general level of prices, and this percentage increases if the dollar exchange rate exceeds the   limit of (1500 dinars). At the exchange shops, and this contradicts what the government seeks from   its monetary measures, provided that the devaluation of the dinar   will be in favor of those with low incomes   , and this is a claim that does not agree with the new exchange rate.

Third - If the government's goal of conducting a devaluation of the dinar is to reduce (the size of the fiscal deficit   ) in the budget, then why is   the planned deficit determined   at (43) billion dollars, according to what has leaked out, which constitutes more than (41% ) Of the size of the budget estimated at (103) billion dollars   . And this exaggerated estimate of the size of the financial deficit planned   in the 2021 budget contravenes the realism of the government's goal of its procedures, and if the aim   of the reduction of the value of the dinar is in order to finance the financial deficit, then why is there to increase the size of public expenditures in the budget   compared to public revenues, and this claim also does not agree With the devaluation of the dinar.

Fourth - In practice, and through the   experiences of implementing previous annual budgets since 2003 until now, it has become clear that the government is absolutely unable to fully implement the budget   items , whether at the level of the investment budget or the operational budget, and the implementation of the budget did not exceed, at best, a percentage ( 75%       ) According to the statements of those involved in the matter   ,   then why does the government determine this exaggerated size of the budget deficit   , while the government has historically been unable to   fully implement the budget   , and this claim   also contradicts   the government’s goal of taking a measure to reduce the value of the dinar To finance the fiscal deficit.

Fifthly - and if there is an excuse or justification to reduce the value of the dinar in   order to enhance   the   competitiveness of   local agricultural and industrial production towards the production imported from them   , this matter is true from   an economic point of view and that when Iraq has a developed agricultural, industrial   and service sector in terms of quantity And the quality, and how these sectors can develop when the government is unable to provide electric current except for a period of five hours per day at best, not to mention the collapse of the infrastructure of the economy represented by road networks, bridges, water, ports, warehouses, etc. among the requirements of development Where it is not possible to raise the productivity of the work of the economic sectors   by reducing the value of the dinar if the state does not have a developed infrastructure, and this is another claim that refutes the justification for reducing the value of the dinar.

 In any case .... Although we respect the government action regarding the devaluation of the dinar    according to its stated arguments   , we see it largely incompatible with the economic and social conditions and the current policy of Iraq, and we will not find   any other country that is experiencing the economic and health crisis. The current world, whether oil or non-oil, developed or underdeveloped, has   devalued its national currency towards foreign currencies because of these arguments and others.

 In summary ... the preparation of the general budget 2021 of this large size in terms of ((the large size of public expenditures and the large proportion of the planned deficit in the budget)) is completely inconsistent with the procedure of ((devaluation)), and is also inconsistent with The budget evaluation is based on a hypothetical price for a barrel of exported oil ((42 dollars)), while the current real price is estimated at more than ((50 dollars)). !! .

 In conclusion ...... We hope that this will be the first and last time in which the value of the Iraqi dinar is badly affected.

 Dr. Aras Hussain Dartach   LINK

DeepWoodz:  Imo....ok this article says what we’ve all been thinking!!! Mr. Dartac is calling the GOI out!!! In a very respectful manner, letting everybody know that the reasons given for the devaluation absolutely DO NOT make sense. 

Samson:  Referendums of Imam Sistani's office on commercial transactions in gold and silver

01/1/2021 20:33:54

The office of the supreme religious authority, Grand Ayatollah Imam Al-Sayyid Ali Al-Sistani, responded to referendums on commercial transactions in gold and silver and legal rulings regarding them. And it came in the text of the answers and questions, according to what was stated by the Office of the Supreme Authority: 

The question: What is the exchange sale?

Answer: It is the sale of gold or silver, for gold or silver, and there is no difference between the two coins and others.

Question: Is it permissible to sell gold for gold and silver for silver with an extra amount?

Answer: It is not permissible.

The question: Is it permissible to buy a silver or gold ring of the same sex, with an increase in the price of the goldsmiths?

Answer: It is not permissible for him to buy from a goldsmith or someone else a ring or other jewelry made of silver or gold of his gender, with an increase by noting the fee for the goldsmith.

The question: If someone owes another debt and the like in the (Swiss) currency, at what value is the payment currently made? Note that the value of one Swiss dinar when it fell = 150 dinars from the current currency?

Answer: If a person owes someone an amount of money in the previous time and intends to pay it now after a long period has passed, then if the money of that amount at the present time is not (credited) in comparison to his money at that time (even if it is calculated according to the value legally assigned to him prior to the fall For example, like five percent, for example, as if he owed ten dinars, and at that time ten dinars were equivalent to fifty grams of gold, and at the time of payment equivalent to three grams, for example, the prudence is obligatory in such reconciliation by paying about half the value of the amount currently in comparison to the prevailing prices in The financial evaluation is known as gold, but if the financial of the actual amount compared to its previous money is counted as twenty percent or more, then it is appropriate to pay the same amount without an increase.

The question: Is it permissible to sell gold with lobes, strings, precious or non-precious stones, if these things are unknown in weight and amount with the buyer, and yet he is based on buying them with gold, and this is known to everyone?

Answer: If the gold piece that includes the clove or something similar is something that is sold by argument, then it is not wrong. But if it is of what is sold by weight, ignorance of the weight of the clove, for example, leads to ignorance of the weight of the gold, then this is not valid for a sale, yes, it is okay to reconcile with something similar.

Question: What is the legal aspect of the transaction of exchanging old gold for new gold?

Answer: If two transactions were conducted, that used gold was bought for an amount of cash - for example - and then unused gold was sold for an amount greater than it, without all forms.

The question: I am the owner of a gold factory. Some gold marketers come to me and they have an amount of gold, for example (2 kg), an old one takes from me (4 kg) as a convenience for me, and after that he sells some gold to the stores and returns the rest of the gold to me. After a period of time, he collects from the stores and pays off what was taken from me with the agreed manufacturing fee. What is the ruling on the following: 1- Disposing of gold without selling only for convenience? 2- The marketer took the interest from that gold? 3- The marketer giving the factory owner or wholesaler the old gold with the new gold fee or a band?

The answer: Here are two pictures: a) If the marketer of gold sells what he has taken for himself, then the reference is - what is the question of not buying it for him - until he borrows that amount of the new gold on the condition that he repays an amount of it with the old gold and the rest in riyals. 

Such a usurious loan is forbidden because it brings financial benefit to the lender even though it is conditional on the borrower. B) And if the marketer sells what he took for the motive, i.e. to the owner of the factory, that he agreed with him to sell his gold for an increase of twenty thousand riyals, for example, provided that the extra amount was paid to him for his work, then he paid the price and compensated part of it with a quantity of used gold, then this transaction is permissible and unjust. With what the marketer benefits from its products, just as the merchant receives from the used gold and the cash amount.   LINK