More News, Rumors and Opinions Late Thursday Night 2-17-2020

TNT:

Tishwash:  The Central Bank is preparing for measures to achieve a balance between the dinar and the dollar

The Finance Committee hosted, on Thursday, December 17, 2020, the Governor of the Central Bank, Mustafa Ghaleb Makhaif, to discuss the economic crisis and the implications of the high exchange rate of hard currency on the Iraqi market situation.

During the hosting, which was held at its headquarters, the committee focused on ways to confront the negative repercussions of the increase in the exchange rate on citizens, particularly the vulnerable and poor classes, as well as the measures that the Central Bank will follow towards banking companies to deter the weak from exploiting this situation.

The committee called on the government to carry out rapid reforms to protect the vulnerable classes and those covered by the social welfare network and workers in the private sector, confront inflation and provide the necessary foodstuffs through the ration card.

The governor of the Central Bank provided an explanation on the reasons for the high exchange rate, stressing that the bank is preparing to launch a package of measures that will achieve a shifting balance in the exchange rate for the year 2021, such as launching an initiative in the amount of 3 trillion to support low-income people, doubling the provision of hard currency in the market, and increasing interest rates. On the Iraqi currency deposited in banks.  link

Harambe:  Vietnam+: Vietnam maintaining dialogue with US to handle issues in economic ties

(12/17/20)

Hanoi (VNA) - Vietnam is maintaining dialogue and consultation with the US in a constructive spirit to deal with problems in bilateral economic and trade links in a way that is sustainable and harmonises the interests of both sides, said Foreign Ministry spokeswoman Le Thi Thu Hang on December 17. 

She made the comment in response to media questions about the US Treasury labelling Vietnam and Switzerland currency manipulators.

On December 16, the US Treasury released a report on the macro-economic and foreign exchange policies of major trading partners of the US, with Vietnam and Switzerland listed as currency manipulators for the first time.

The US Treasury made the determination based on three criteria: a bilateral trade surplus with the US of at least 20 billion USD; a material current account surplus equivalent to at least 2 percent of GDP; and persistent and one-sided intervention in the forex market as seen through net purchases of foreign currency conducted in at least six out of 12 months, with such net purchases totalling at least 2 percent of GDP over a 12-month period.

“Over the past 25 years, especially since the comprehensive partnership was set up, Vietnam - US relations have enjoyed strong development in various areas, including economy, trade, and investment,” Hang said.

She affirmed that the Vietnamese Government attaches special importance to economic and trade ties with the US and has been realising high-level commitments and trade agreements between the two countries as well as multilateral trade commitments.

https://en.vietnamplus.vn/vietnam-maintaining-dialogue-with-us-to-handle-issues-in-economic-ties/193345.vnp

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Boomer2:   interesting read......https://www.cnbc.com/video/2020/12/16/indonesian-rupiah-undervalued-of​fers-very-strong-yield-appeal-anz.html

Patriot Intel Report

Published December 17, 2020

https://rumble.com/vbyoml-pir-12-17-20-patriot-intel-report.html

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KTFA:

Don961:  The strange monetary policy and the strange exchange rate in this wondrous economy

THURSDAY, 12-17-2020, PM 5:33  KARRAR AL-ASADI

Written by: Dr. Emad Abdul Latif Salem 

- The price of the dollar against the Iraqi dinar in the market now (Thursday 12/17/2020), ranges between 1330 and 1340 to 1350 dinars per dollar (up and down). See the link below.

- The Central Bank continues to sell the dollar at the currency sale window until Thursday 12/17/2020, at 1190 dinars to the dollar. (See the link below).

- Since last Monday 12/14/2020, and until Thursday, 12/17/2020, the price of the dollar against the dinar (in the market) ranged between 1290 and 1340 dinars to the dollar (up and down).

- To counter the rise in the price of the dollar in the market, the Central Bank sold 872,794,644 million dollars through the currency sale window (within only four days, from last Monday to this Thursday), at a price of 1190 dinars to the dollar.

- If we add the central bank's dollar sales last Sunday 12/13/2020 (amounting to 202,311,848 million dollars) to its sales for the past four days, the total sales of the central bank of dollars through the five-day currency sale window will amount to 1075,106,492 million dollars ( That is, one billion and 75 million dollars).
- With all these "generous" sales, the price of the dollar (in the market) continues to rise against the dinar.
Is this a sound and wise monetary "policy"?
Is this even a monetary "policy"?

The Central Bank accuses "analysts" of raising unfounded expectations about its intention to raise the "official" exchange rate of the dinar against the dollar, and that this is the main reason behind the rise in the dollar price in the market !!!!
If "the parsers were wrong, what did he do in return?"

And if these "analysts" were wrong, when they demanded a review of the current exchange rate of the dinar against the dollar, was the Ministry of Finance also at fault, when it asked the Central Bank in the "white paper" what was mentioned in a text in p53 of it, about the necessity of "studying the price The current exchange of the dollar against the dinar, taking into consideration the requirements of financial and monetary stability, and achieving the competitiveness of the Iraqi economy. ?????

Where is the "coordination" between the fiscal and monetary policies, to define priorities, objectives, and general economic policy directions in this country?

Will every "maker" of politics in this country still sing about "Layla" ... so that we can get from this "orchestra", which has no "leader", this discordant "rhythm"?

Is the monetary policy "wise" or "appropriate", or "responsive" to a situation like this, is for the bank to continue pumping more "cheap" dollars into the market (at a price of 1190 dinars to the dollar) for the "buyers" to sell them in the market, at prices ranging from 130, to 134 thousand dinars to the dollar ???
Who benefits from this cash "mess" in the end ??
And whenever the price of the dollar rose against the dinar (in the market), the bank sold hundreds of millions of dollars every day in order to maintain the current exchange rate of the dinar against the dollar?

Can the central bank continue its policy for a long time, and defend the current exchange rate of the dinar against the dollar, indefinitely?
This is difficult, and very difficult, if not impossible.

Are ordinary people ... Are the poor ... Are vulnerable groups of the population the beneficiaries of this situation? And if they are not the beneficiaries of this "mess", then who is the ultimate beneficiary of such a monetary "policy"?

I will not suggest anything here. In the central bank, as in its board of directors, as in the whole of Iraq, there are "minds" and experiences that can distinguish between right and wrong, and can formulate policies, and can provide solutions, and set priorities, and it is assumed that they have a minimum This is called a "sense of proportion", meaning the distinction between important and most important things.
We cannot afford to waste any more time before our financial and "monetary" collapse ...
Nevertheless, we will wait.

We will wait ...hopefully the "miracle" that saves us all (Iraq, us, and this wondrous economy) will happen from what we are.

 Data source:
https://www.cbi.iq/currency_auction
https://cbi.iq/currency_auction/all

link

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