Showing posts with label
Sinan Shabibi - Central Bank of Iraq.
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Showing posts with label
Sinan Shabibi - Central Bank of Iraq.
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Same subject .. different source ~ Iraq ~ Shabibi ~ Delete the Zeros from the Iraqi Currency ~ Parliamentary looking economy with the Governor of the Central Bank ...
*Below article references the following 2 articles ~ Central Bank declares its readiness to start deleting zeros from the Iraqi currency ... and .. *November 18, 2010 ~ Finance: Delete the zeros of the local currency enhances the value of the Iraqi dinar in the International Monetary Fund ...Wednesday, 14/12/2011
Economy considering the possibility of parliamentary delete zeros from currency
Baghdad, The committee of economy and investment representative, on Tuesday, it will consider the deletion of zeros from the Iraqi currency, noting that the Governor of the Central Bank and economic experts have made several proposals in this regard.
A member of the Sheriff Aziz said in a statement received Mayahi term, a copy of it,
The "Committee for Economy and Investment hosted, today, Governor, Central Bank of Iraq with a number of economic experts," noting that "the two sides discussed the issue of deletion of zeros from the Iraqi currency."
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Mayahi added that "the Commission listened to a detailed explanation by the delegation on the issue of deletion of zeros," noting that "the Commission will consider the proposals of the delegation in this regard in order to reach the right decision to serve the interests of the Iraqi people."
The Member of the parliamentary economic and investment that "the Commission discussed with the delegation, a number of economic issues Kaltdkhm and ways to reduce its impacts on the Iraqi economy."
The Central Bank of Iraq announced that, in (29 September 2011), that the year 2013 will see the deletion of zeros and the currency exchange, pointing out that the existing currency formed a cluster of large cash estimated at 30 trillion dinars.
He said an adviser to Prime Minister for Economic Affairs Abdul Hussein Al-Anbuge, in (25 August 2011), to raise zeros from the currency is the biggest corruption in Iraq if it was during this period, and fall under the name of tampering with the economic, warning of "mafias currency" is preparing to rig the trillions of dinars Iraq to replace them in the light of the planned changes.
He accused the Iraqi Central Bank, in the (12 September 2011), government agencies of obstructing monetary reform and vowed to sue, blaming the authorities responsible for exposing the financial interests of the country to danger.
According to some economists that Iraq is ready 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.
And declared the Iraqi Central Bank Governor Sinan Shabibi, at a meeting of independent bodies with Prime Minister Nuri al-Maliki, who was held in (June 19, 2011), his willingness to create all the supplies to replace the Iraqi currency.
The Central Bank of Iraq was established as a bank independent under the law issued on the sixth of March of 2004, as an independent body is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies and management of foreign reserves and the issuance of currency management, as well as to regulate the banking sector to promote the financial system competitive and independent.link
Bumped .. Related articles ~ *Iraqi Dinar = U.S Dollar ~ Deputy in the Finance Committee is expected to equal the Iraqi Dinar against the U.S. Dollar during the next biennium and flashback .. March 2010 ~ 'The Iraqi dinar has all reasons to grow stronger,' says Maliki and ~ Shabibi 'Our aim is to establish a forward market in Iraqi dinars
Tuesday, December 13, 2011
Parliamentary looking economy with the Governor of the Central Bank project to delete the zeros from the Iraqi currency
Baghdad, Committee discussed the economy and investment representative with the Governor of the Central Bank of the project to delete the zeros from the Iraqi currency.
A member of the Committee Aziz Mayahi in a statement said today that "The Commission on Economy and Investment hosted on Iraqi Central Bank Governor Sinan Shabibi with a number of economic experts, and discussed the issue of deletion of zeros from the Iraqi currency, the Committee heard to a detailed explanation by the delegation on this subject.
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He added that "the Committee will consider the proposals of the delegation in this regard in order to reach the right decision to serve the interests of the Iraqi people," adding that "the Committee discussed with the delegation, a number of economic issues Kaltdkhm and ways to reduce its impacts on the Iraqi economy."
The Central Bank of Iraq and on to San bank adviser appearance of Mohammed Saleh told Al [where] the need for Iraq to the process of administrative reform of the currency, cash, and that the project to delete the zeros is a step comes as part of the country's needs to the process of administrative reform of the currency in order to reduce the cost of cash transactions in the economic process as well the need to provide small groups of coins used in daily circulation of small transactions.
The officials at the Central Bank as well as some politicians and economists urged the government to delete the zeros from the currency and the issuance of new currency denominations large cash in addition to the presence of small coins.
Observers say that the government intends to delete the zeros from the currency as a step towards improving the purchasing power of the Iraqi dinar is that economists played down the importance of this step, considering that the cost of raising the zeros will be greater than the benefit expected to raise zeros.
And Abdul Hussein Al-Anbuge Adviser to the Prime Minister for Economic Affairs had warned earlier that the removal of zeros from the currency in the events will cause big problems and disrupt the Iraqi economy.link
Two interesting articles from March 2010 ...
March 5, 2010
'The Iraqi dinar has all reasons to grow stronger,' says Prime Minister
IRAQ. Iraqi Prime Minister Nouri al-Maliki said earlier this week that the process to re-evaluate the Iraqi dinar has to do with economic conditions which have to be strengthened, reported news agency Aswat al-Iraq.
"The Iraqi dinar has all the reasons to grow stronger thanks to an increase in revenues and development of the economy," Maliki said in response to some questions through the National Information Center.
"The government would not rush matters but would rather work on finding all the guarantees to render this measure a success. The Central Bank of Iraq (CBI) is currently entrusted with drawing up a study on the whole issue and would give its decision soon," said the Iraqi premier.
The Iraqi dinar's exchange rate is suffering from low value against foreign currencies as a result of decades of wars and economic embargo that brought the local currency's exchange rate to the rock bottom from three dinars per dollar in the late 1970s and 1980s to 3,000 dinars per dollar after the 1990 invasion of Kuwait, followed by a 13-year crippling sanctions regime.
The exchange rate fell even more after 2003 to reach 1170 dinars per dollar due to the CBICBI's policy of daily auction, in effect for more than five years now.
The policy was lambasted by several economists on the grounds that these auctions do not give the real value of the country's local currency. link Note older article ~ Iraq's Forward Market, VAT tax, Sales of Treasury Bills? Friday March 12, 2010
'Our aim is to establish a forward market in Iraqi dinars in the near future,' say finance official
IRAQ. Iraq plans to establish an interbank foreign exchange market and dinar forward market and to step up its treasury bill activity in 2010 to help plug continuing budget deficits and foster treasury and foreign exchange markets, the Central Bank and Finance Ministry said in a submission to the IMF.
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Iraq aims to develop foreign exchange markets outside the framework of dollar auctions currently conducted by the Central Bank, a letter of intent submitted to the IMF for a US$3.6 billion standby arrangement said. link
Iraq said it would not return to a budget surplus until 2012.
"As our financing needs in 2010 will still be substantial, we will step up our efforts to mobilize domestic financing through the Treasury bill market," Iraq's Central Bank head and finance minister wrote.
"To that end, we will conduct regular auctions, and refrain from cancellations, while allowing interest rates to be determined by the market. This will have additional benefits by determining a benchmark interest rate, while the development of a secondary market for treasury bills will allow banks to improve their liquidity management."
"They are going to shift to building a local market, they have ample cash, loan-deposit ratios are very low and they will benefit from oil,"Turker Hamzaoglu, emerging market economist at BoA-Merrill Lynch, told Reuters.
"They have to develop a domestic bond market but it's still baby steps, it's still too early, it's not even a frontier market," he said, adding that Gulf Arab and Lebanese investors could be interested in Iraqi domestic paper.
Central Bank Governor Sinan al-Shibibi and Finance Minister Bayan Jabor said in the letter to the IMF that the country planned to introduce a sales tax, as a precursor to a Value Added Tax, "in the coming years".
Iraq's gross domestic product expanded by 4% in 2009 compared with almost 10% the year before, their submission reported. GDP growth would rise to almost 7% this year and 7.5%-8% in 2011 and 2012, they said.
That improvement would be rooted in an increase in Iraqi oil output to 3.1 million barrels per day by 2012, from around 2.5 million bpd now, and exports of 2.5 million bpd, compared to just over 2 million bpd now.
That outlook might be conservative following the signing of 10 multibillion-dollar deals with global oil firms to develop Iraq's vast reserves. If all the deals work out, Iraqi oil capacity could soar to 12 million bpd in six to seven years.
"The CBI will continue to be independent in the pursuit of its policy objectives. The CBI’s monetary and exchange rate policies will continue to be aimed at keeping inflation under control and safeguarding international reserves," the submission said
The banking sector is in urgent need of reform to foster financial intermediation and enable banks to contribute to the development of a strong private sector. With the help of the World Bank and other international agencies, Iraq has developed a banking sector reform strategy, it added.
"Iraq is committed to strengthening the management of international reserves by moving ahead with the implementation of new reserves management guidelines that were adopted in early August 2008. Iraq will follow the guidelines to diversify currency composition and establish appropriate duration and credit risk, build capacity for risk analysis, and work towards establishing a dealing room".
The IMF submission said Iraq's Central Bank planned to create a foreign exchange market outside the framework of regular dollar auctions now conducted by the bank. The bank uses the auctions to set the exchange rate, which has been held at 1,170 dinars per dollar for many months.
"To improve the functioning of foreign exchange auctions, we plan to develop organized exchange markets outside the central bank, including an interbank foreign exchange market," it said.
"Our aim is to establish a forward market in Iraqi dinars in the near future." link
