Tag Archive | "revaluation"

Currency Auction Results, 21st Oct


By John Lee.

The Central Bank of Iraq (CBI) has reported that 17 banks took part in its currency auction on Tuesday.

A total of $247,265,000 was sold  at a price of 1166 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

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Currency Auction Results, 20th Oct


By John Lee.

The Central Bank of Iraq (CBI) has reported that 18 banks took part in its currency auction on Monday.

A total of $231,723,000 was sold  at a price of 1166 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

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Currency Auction Results, 16th Oct


By John Lee.

The Central Bank of Iraq (CBI) has reported that 16 banks took part in its currency auction on Thursday.

A total of $189,284,000 was sold  at a price of 1166 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

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Time to Bite the Bullet


If Iraq didn’t face enough challenges already, the slump in the price of crude oil is another unwelcome development for the new Abadi government to deal with.

At a current price of $81.78, the benchmark West Texas Intermediate (WTI) crude is down nearly 25 percent from its June high, driven in part by a strong US dollar and weak Chinese demand.

This comes at a time when Iraq needs all the funds it can get to bolster its defences and eventually eliminate the existential threat from the Islamic State.

As difficult as it will be, Iraq’s parliament must finally agree a budget for this year based on the unpalatable reality that it is now facing.

It must also bite the bullet and accept that in order to fund the war for its survival, public sector cuts will be needed in 2015, and that it may have to run a budget deficit.

A devaluation of the Iraqi dinar is one possible consequence of a budget deficit, but this would also help the balance of payments and leave Iraq in a more competitive position.

Ignoring the budget problem won’t make it go away.

(Flag image via Shutterstock)

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Currency Auction Results, 15th Oct


By John Lee.

The Central Bank of Iraq (CBI) has reported that 14 banks took part in its currency auction on Wednesday.

A total of $203,311,000 was sold  at a price of 1166 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

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Iraqi Dinar to Devalue?


By John Lee.

One possible consequence of the budgetary crisis facing Iraq is a fall in the value of the Iraqi dinar.

As a result of the massive burden of public sector wages and salaries, in addition to subsidies for food and energy, the country faces major expenses in looking after its nearly 2 million internally displaced persons (IDPs).

It must also find the cash to build up its armed forces to fight the continuing threat from the Islamic State.

The Financial Times reports that economists are concerned about 2015, when Iraq will “almost certainly” run a deficit. Baghdad could borrow against its reserves but at the risk increasing inflation and weakening its currency.

According to Luay Khateeb, founder of the Iraq Energy Institute and a fellow at the Brookings Doha Centre, “the moment they do that the Iraqi dinar will devalue.

(Source: Financial Times)

(Dinar image via Shutterstock)

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Currency Auction Results, 14th Oct


By John Lee.

The Central Bank of Iraq (CBI) has reported that 19 banks took part in its currency auction on Tuesday.

A total of $253,980,000 was sold  at a price of 1166 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

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Currency Auction Results, 13th Oct


By John Lee.

The Central Bank of Iraq (CBI) has reported that 16 banks took part in its currency auction on Monday.

A total of $ 197,614,000 was sold  at a price of 1166 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

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