The Improvement of Iraqi Dinar and its Procedures to Increase the Value according to Iraqi Deputies

The member of the Finance Committee Amin Hadi of National Alliance said that the development of Iraqi dinar value against foreign money (dollar) would attract the global firms to invest in Iraq.

Central bank of Iraqi has now planning new measures in order to prop up the constancy of Iraqi dinar exchange rate against the dollar. He stressed out that to improve the country’s currency value will stimulate the investment of more foreign firms from various parts of the world to enter Iraq’s marketing environment.

Finance Committee Amin Hadi said in Agency news interview that the augmentation of the Iraqi dinar value against the dollar currency may lead to a positive indication for the national economy, and this can be the start to encourage more and more international companies to invest in the country not only for investment but as well as for work purposes.

On the other hand,

MP Abdul Hussein al-Husseini, the Member of the Commission gave special emphasis regarding the investment and economy of the House of Representatives required to host the Central Bank Acting Governor. He has been charging the officials to figure out the reasons that put off the achievement of the exchange rate from its solid progress of Iraqi dinar against foreign currencies.

In his most recent interview, he stated, “Radio Free Iraq that the interventions in the work of the Central Bank at the forefront of the reasons behind the request to host the officials.”

The Central Bank of Iraqi Deputy Governor said that the proposal to host the administration founded on the CBI of constitutional right, in addition to a routine procedure in order to alleviate the legislative bodies’ appearance of fears.  However, he also pointed out that the financial policies taken on timeshare quo are rooted in the market intervention that could not help improve the dinar value.

According to Jamil Antoine, Iraq’s economic expert that the procedure of increasing the Iraqi dinar currency value is directly connected to the Iraqi Central Bank, he admitted that even though he holds part of this responsibility in regards to the financial prices monetary inflation treatment and management of the cash and sell of the dollar.
He also emphasized the negotiations and needs for collaboration with other government institutions together with the security and customs departments in order to attain the best Iraqi dinar exchange rate!

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The years of alliance between Goldman Sachs, the World Bank and the Central Bank or Iraq, has paved the way for the creation of a database to keep track of the ownership and location of every dinar note, making the supervision of transactions, simpler, more effective and easier.

Springfield Heights Institute of Technology professor, John Frink, who worked on the said program explained that every note already has its very own serial number, so it is simply a matter of setting up a database in recording the movement and location of every note. He also added that near-field communication, also known as NFC, which is already utilized in contact-less debit and credit cards, enables the notes to clearly communicate with the users’ mobile phone and relay the detail to the programmers’ computers. Frink further expounded that touch-sensitive paper can also record the fingerprint of the users for extra peace of mind.

Once everything has already been fixed and prepared, it is expected that the Iraqi dinar will play a great role in the world banking. As of now, the CBI is making a huge preparation to finally introduce the new Iraqi dinar.

Recently, Khadir Sadoun, a man sitting on the sidewalks in the Arasat neighborhood in Baghdad, pronounced that the Iraqi dinar is in danger. However, he did not study economics or business and probably does not know about the sanctions on Syria and Iran that are causing the danger he is talking about. It is the market place that has informed him of all he knows.

Sadoun also claimed that his business is flourishing, as he envelops a rubber band around a heap of currency. “For the first time in Iraq’s history, Iraqi people are exchanging their dinars for dollars in this way,” he added.

Over the past weeks, the exchange rate has witnessed the dinar plunge against the dollar. This is caused by the present increased demand for the US dollar, which according to Basim Antoin’s explanation, is a result of a boost in currency smuggling in Iraq.

On the other hand, Iraq’s ex-Minister of Planning, Mahdi Al-Hafez, said that both Iran and Syria are suffering from economic crises due to the international sanctions that are inflicted upon them. He added that this is the reason why they are coming to Iraq to look for hard currency.

The years of alliance between Goldman Sachs, the World Bank and the Central Bank or Iraq, has paved the way for the creation of a database to keep track of the ownership and location of every dinar note, making the supervision of transactions, simpler, more effective and easier.

Springfield Heights Institute of Technology professor, John Frink, who worked on the said program explained that every note already has its very own serial number, so it is simply a matter of setting up a database in recording the movement and location of every note. He also added that near-field communication, also known as NFC, which is already utilized in contact-less debit and credit cards, enables the notes to clearly communicate with the users’ mobile phone and relay the detail to the programmers’ computers. Frink further expounded that touch-sensitive paper can also record the fingerprint of the users for extra peace of mind.

Once everything has already been fixed and prepared, it is expected that the Iraqi dinar will play a great role in the world banking. As of now, the CBI is making a huge preparation to finally introduce the new Iraqi dinar.

]]> https://dinarexchange.com.au/iraqidinars/iraqi-dinar/world-banking-to-be-changed-by-new-iraqi-dinar/feed/ 0 https://dinarexchange.com.au/iraqidinars/iraqi-dinar/baghdad-strives-to-cease-iraqi-dinar-devaluation/ https://dinarexchange.com.au/iraqidinars/iraqi-dinar/baghdad-strives-to-cease-iraqi-dinar-devaluation/#comments Sun, 26 May 2013 05:26:12 +0000 iraqidinars http://dinarexchange.com.au/iraqidinars/?p=2618 Continue reading →]]> The Baghdad government has been faced with challenges on how to control the Iraqi dinar’s exchange rate against the United States dollar in the past few days. Since April, the rate has been declining, arriving at its lowest at the start of this week. During the previous week on the local currency market, the dinar went down against the dollar from 1,200-1,300 broadening the   gap against the official rate of exchange by approximately 121 dinars.

The Central Bank of Iraq puts up for sale one dollar per 1,179 dinars to approved banking institutions, which puts it up for sale for 1,189 dinars to Iraqi citizens that travel for medical treatment. If not, traders and those who are looking forward to purchasing dollars should enter a publicly held action for hard currency sales supervised by the Central Bank of Iraq. The Interior Ministry claims that this is one of the measurement series it oversees.

Recently, the CBI held meetings with Iraq’s Parliamentary Presidential Board—which comprise of First Deputy Speaker Osama al-Nujaifi and Second Deputy Speaker Aref Tayfur—to expound the ways on how to cope with the exchange rate’s decline.

Al-Monitor obtained a May 12 issue stating that the Parliamentary Presidential Board had a meeting that day with CBI governor and Supreme Audit Board head Abdul Basit Turki. It also declared that the Parliamentary Presidential Board conveyed its support for the Central Bank of Iraq to examine the activity of private banks, to archive information and to take reform measures including the control for the dollar’s exchange rate, reduction of money laundering and enhancement of the Central Bank of Iraq’s capability in economic growth.

As mentioned, Iraq government sought the support of Russia so that it can be exempted from Chapter VII. This provision underscores action related to destabilization of peace, breaches and acts of aggression.

Iraq has been quoted due to its desire to strengthen its cooperation with Kuwait and instead work together as partners. The Ministry of Human Rights affirmed the efforts by the Iraqi government to embrace positive bilateral relations and development between Iraq and Kuwait. This comes at the wake of the projected visit by the UN Secretary-General, Ban-Ki-moon, in Baghdad.

The main assertion is that Iraq should be freed from Chapter VII. This is because both Iraq and Kuwait have focused in addressing all outstanding issues hence the invitation to uplift all international sanctions imposed on Iraq under Chapter VII. Research indicates that Iraq and Kuwait has managed to make real progress including their goodwill to achieve successful bilateral relations. This serves as one of the principal justification why sanctions imposed on Iraq under Chapter VII should be reconsidered. This move will place Iraq in a better position as well as improve its reputation status amidst other international community. In addition, the step will restore Iraq to its legal and international status it had before the period 1990 since it had not yet invaded Kuwait. This declaration came after a period of four days after the United Nations Compensation Commission announced the reimbursement of $1.09 billion. This would serve as compensation to five Kuwait’s corporations belonging to the government.

United Nations have taken steps to deliberate on the removal of Iraq from Chapter VII. In fact, Iraq will be hosting the UN Secretary General to discuss the possibility and strategies of removing Iraq from Chapter VII. It will be a considerable achievement for Iraq once it will exit Chapter VII and the same would encourage more investors in the sense in which it would enhance economic recovery.

In general, there are many benefits that Iraq and Kuwait stand to gain if they settle for positive bilateral relations. This is because the move would make the two nations work together, share economic resources and exchange of ideas and innovativeness. Therefore, the bilateral relations have significant implications for both and to the world at large. In the same vein, other nations should learn from the two countries on the need for co-existence and international cooperation.

Surveys indicate that by the period 2011, Iraq recorded a real growth rate of 9.9% ranking at position seven in comparison to other countries. Another economic indicator is its GDP – per capita (PPP) recorded at $3,900 in 2011 and ranked at position 163 amidst other other countries in the world. In terms of population below the poverty line, Iraq recorded a rate of 25% from 2008. There are many other indicators that may be quoted so as to demonstrate the current Iraq’s economic status as of now.

It is worth mentioning that Iraq government has expressed a desire to move away from centralized approach economic process to one that is dynamic, and market-oriented. Therefore, the country has opened up to other trade partners in the world and its exports and imports showing progressive growth in recent years. For instance, Turkey serves as a significant trading partner with Iraq. This is evidence that Iraq is open to other interested trade partners apart from Turkey and United States since it has a number of its companies operating in Iraq.

Iraq has improved its security environment and conditions for foreign investment. This move has enabled the current government to simulate more economic activity in sectors such as construction, energy and retail. The government has also been committed to implementing policy reforms thus enhancing economic development, improved infrastructures, health services and standard of living. Moreover, the revenues obtained from oil exports have been improving, and the government continued to receive more of it. Research indicates that Iraq government has entered into more trade partnerships with oil companies overseas where this would increase its oil revenues even more.

The Central Bank has managed to maintain an exchange rate of about 1,170 in terms of Iraq dinar/US dollar from the period 2009. In the same vein, inflation has been controlled from the period 2006 including improvement in its security. U.S. troops withdrew from Iraq and there are many indicators that its economy is improving.

Enough said Iraq needs to assume full control of its resources so that they can gain from them. The current government needs to ensure that distributive justice reigns and that the national cake should be distributed evenly. Now is the time to have a more devolved system of government not necessary in terms of power structures, but in providing full access to economic opportunities for all citizens. Iraq will not have a sustainable economic development if the citizens do not live in cohesion, brotherhood, tranquility and obedience to the rule of law. All these are pillars to Iraq’s economic development.

Research indicates that due to political deadlock, processes geared towards securing investment in Iraq end up at jeopardy. This has led the U.S. Government to express their desire to bring to an end to the threats investors face in Iraq. Therefore, in a bid to boost the instability in Iraq’s economy, United States injected $52 billion to support the civilian deployment aid in the year 2003. The current U.S. Government led by President Obama asserted that Iraq needed to enjoy its economic sovereignty given that it had plenty in terms of oil resources. In this regard, the current Iraq’s government should take initiative and manage it economy; this goes hand in hand with the duty to protect investors. This is also one way the government can increase its revenues from foreign direct investment. It means when the government creates a poor environment for investors such would prevent the latter from expanding their business, and the state would be destroying their own efforts to achieve economic prosperity.

The economic development of Iraq would require the government to support the private sector by creating more friendly laws towards investments as well as having in place institutions that protect the rights and programs initiated by investors. This is particularly critical because Iraq may be deemed as a growing democracy following the overthrow of Saddam Hussein. Therefore, the current government should go for nothing less than a streamlined as well as accountable and transparent policy. This should also include strategies to improve infrastructure, and establish more zones for investments.

It is impressive to contemplate on the words said by President Obama, in that Iraq as such should exercise its sovereign economic power. This assertion has fundamental implications because it puts the responsibility of economic enhancement squarely on the government of Iraq. Economic sovereignty not only serves as empowerment to the government but also it also reflects the capacity of the citizens themselves to take part in building their nation. This is now a supreme right for Iraq citizens and no government or law can take it away from them.

As can be seen there is a lot to be said regarding the role of Iraq’s government in supporting investors. It is not the case that the government would be the one to lose, but they would gain the more in terms of FDI profits. Therefore, the more it provides strong policies to support the investors the more the FDI revenues. Thus, it is imperative that the government makes Iraq a potential zone for more investors across the world where this will benefit all the citizens at large. This way Iraq will be among the best choice for investors.

In the overview, Iraq has had an improved security environment and foreign investors have indicated the willingness to assist the government to grow their economic activity in sectors such as energy, retails and construction. The government has also been focused in implementing fundamental policy reforms. As the reader may be aware, Iraq’s comparative advantage rests on the oil sector where it contributes over 90 per cent of the government’s revenue and 80 per cent in terms of foreign exchange earnings. Other sources indicate that in the period 2009, earnings generated from the oil exports have returned to their normal and preferred levels prior to the Operation Iraqi Freedom. In the period 2012, the budget forecasts indicated a value of 2.6 million barrels per day (bbl/day); according to experts, this was a remarkable increase from the previous average amount of 2.2 million bbl/day in 2011).

Tony Blair, the former British Prime Minister, expressed that the invasion was beneficial as it led to the current social and economic progress. He also cited the leadership of Saddam Hussein as among the reasons that had suppressed economic reforms in Iraq. Blair was also upbeat that Iraq would be among the countries recording large economic growth in the future. 

However, there are other issues that the reader cannot fail to take into consideration. This includes the danger of terrorism and political impasse that still threaten poor families in Iraq. As Blair noted, there was a need for more reforms and policy development in that line.

Well, it is arguably so that the toppling of Saddam Hussein had fundamental economic implications and this time, for the better. In principle, wherever a country goes through poor governance and political mismanagement it would never achieve economic prosperity. This is what must have been the case with Saddam’s long term leadership since it lacked justice, altruism and egalitarianism.

Earlier, findings indicated that Iraq had a problem with equal distribution of economic resources. This is one of the major injustices there can be in a country and as such it impedes economic development because the citizens are not empowered as they should. This, in turn, makes them not to be productive or be part of national economic building.

In general, inasmuch as one can argue that Iraq had experienced economic development since the invasion in 2003 took place there is more need for improvement. This is because Iraq needs a stable economic development trend regardless of the circumstances. It is not much in looking back to see how history has changed, but it is where Iraq is headed. This is what matters.

]]> https://dinarexchange.com.au/iraqidinars/iraqi-dinars/the-upward-growth-of-iraqs-economy-following-the-aftermath-of-2003-invasion-and-overthrow-of-saddam-hussein-can-blairs-claims-be-justified/feed/ 0 https://dinarexchange.com.au/iraqidinars/iraqi-dinar/the-new-iraqi-dinar/ https://dinarexchange.com.au/iraqidinars/iraqi-dinar/the-new-iraqi-dinar/#comments Mon, 22 Aug 2011 23:51:41 +0000 iraqidinars http://dinarexchange.com.au/iraqidinars/?p=223 Continue reading →]]> The new Iraqi dinar will be printed in three languages

The Iraqi Central Bank confirmed that after the deletion process the new Iraqi dinar would be printed in three languages: English, Kurdish and Arabic. According to the Constitution, the new currency will gradually absorb old dinars.
The Iraqi Central Bank adviser, Mohammed Saleh affirmed that the new currency would not involve any changes in the dinar exchange rate, only the form would differ.
He pointed out that the deletion process approved by the Central Bank was submitted to the Council of Ministers, and the final decision would be taken by the Iraqi government.
Furthermore, the head of private banks association, Abdul Aziz Hassoun called for monetary authorities to establish a plan to urge banks to develop funds. The aim of these funds is to support projects that could improve the Iraqi economy.
He pointed out that plan displayed financial benefits and would rely on conditions and procedural methods submitted by all parties that join the project. Conditions must be established by the monetary authority.
Hassoun added that there were more than 40 banks in the country which were working after a simple financial support. Thus, banks are unable to support large projects which should facilitate the entrance on global markets and develop the private banks capital. Therefore, it is necessary that the Ministry of Finance and the Iraqi Central Bank to implement funds to support banks.
In another train of thoughts, the oil expert, Hamza Jeweler called for the House of Representatives to abolish the oil and gas law. He explained that the law would dismiss the Supreme Council and the Ministry of Oil, in order to pass the power to political blocs.
Therefore, the oil and gas law could lead to a civil war.