Raising the value of the Iraqi dinar achieved more than what was expected

September 29, 2007

Akbar explained that the "procedures and treatments approved by the Central Bank Governor and the members of the Governing Council, were aiming at stabilizing the exchange rate of the Iraqi dinar against the American dollar at (1,250), but the precise procedures of the monetary policy of the Bank to restore confidence in its independence, gave results of bringing the value of the dinar exchange rate to about (1,234) versus the American dollar, which places the Iraqi dinar in a good market state, due to the optimism created by monetary policy on Iraqi future economy. "

He continued that "according to the monetary policy adopted by the Central Bank, it was decided to raise the price of the Bank (Policy rate) from 16 to 20% annually, in addition to raising the interest rates of credit: the primary credit would be for 22% annually and the secondary credit 23% annually." Pointing out that it was decided to raise the interest rate of the Last Resort Loan to 5,23% annually, as well as raising rates on banks' deposits in the Iraqi Central Bank to be 18% annually for the night investment, and 19% annually for the investment for 14 days, while the interest of investment for 30 days became 20% annually.

On the other hand, the banking expert and general manager of the National Company for Financial Services, Abbas Khudayr Al-Kaabi, praised the monetary policy adopted by the Iraqi Central Bank to deal with inflation, and described it as deliberate and successful policy.

Al-Kaabi said, "however, raising the interest deposits at the Central Bank, to hit 20% annually, would certainly reduce the investment opportunities for Iraqi private and governmental banks; instead of moving towards investment, Iraqi banks will turn towards deposit in the Iraqi Central Bank of, because the interest mentioned earlier represents secure profitability, particularly since Iraqi banks are currently operating in circumstances do not allow them to deal with investment cover from outside the country, which adversely affect the ability of banks to continue their investment directions again. "

Hassan Ghalib Kubbah, Director of Basrah International Bank for Investment stressed the importance of improving the performance of the banking sector to conform to global standards of banking activity. He explained that "treating the imbalances is impossible, without passing through new funding sources which foreign investment is considered one of their direct channels." He pointed out that productive and service companies are currently operating with support from the Bank of Basrah, in the sectors of shipping, tourism, food production and packaging, and achieved good results despite the difficult circumstances.

Kubbah concluded that "the Iraqi banking sector can create the appropriate investment environment, which would activate the investment law, in collaboration with other sectors involved in the Iraqi arena." (Source)AlSabah

Back to Iraqi News & Iraqi dinar Updates

http://www.edinarfinancial.net/news/?quer=&nm=&ny=&nn=517

On this date:

• In 1568, Spanish capture English ships at San Juan, Puerto Rico, from Sir John Hawkins' fleet.
• In 1688, France's King Louis XIV declares war against Holy Roman Empire, called the War of the League of Augsburg.
• In 1789, US Congress passes the First Judiciary Act, which provides for an Attorney General and a Supreme Court.
• In 1852, French inventor Henri Giffard makes the first flight in a powered airship, cruising with steam power over Paris.
• In 1877, the last of the samurai rebellions against the reinstated Japanese emperor is defeated by the new conscript armies.
• In 1932, the Poona Pact gives new electoral rights to Dalits.
• In 1943, Soviet army crosses Dnieper River north of Kiev as Germans retreat in World War II.
• In 1948, first conference in London of representatives from Britain's African colonies; Mildred Gillars, accused of being Nazi wartime radio propagandist "Axis Sally," pleads innocent in Washington, DC, to charges of treason. She serves 12 years in prison.
• In 1966, Mob ransacks and burns Portuguese embassy in Leopoldville in the Congo.
• In 1969, the Chicago Seven trial begins. Five of the defendants are convicted of crossing state lines to incite riots at the 1968 Democratic national convention. The convictions are overturned.
• In 1971, Britain expels 90 Soviets for espionage activities.
• In 1976, newspaper heiress Patricia Hearst is sentenced to seven years in prison for her part in a 1974 bank robbery. She is granted clemency by US President Jimmy Carter and released after 22 months.
• In 1982, the US government lifts the military sanctions that it had imposed on Argentina during the war with Great Britain over the Falkland Islands.
• In 1987, armed forces seize control in of Transkei, one of South Africa's black homelands, ousting the Prime Minister.
• In 1990, Iraq declares the Kuwaiti dinar invalid and withdraws it from circulation; Soviet lawmakers endorse plan calling for market economy; East Germany formally withdraws from Warsaw Pact.
• In 1991, Iraq provokes international outrage over its resistance to efforts to dismantle its arms program when Iraqi troops detain a team of United Nations weapons inspectors in Baghdad.
• In 1993, Nelson Mandela asks the world community to lift economic and diplomatic sanctions against South Africa.
• In 1994, a report prepared by the CIA reveals confessed spy Aldrich H Ames exposed 55 clandestine US and allied operations to the Soviet Union and Russia.
• In 1995, after all-night talks, Israel and the PLO agree to sign a pact at the White House ending nearly three decades of Israeli occupation of West Bank cities.
• In 1996, the United States and the world's major nuclear powers sign a treaty to end all testing and development of nuclear weapons. India objects.
• In 1998, Iran says it is distancing itself from the reward offered for the killing of author Salman Rushdie, and is ready to exchange ambassadors with Britain.
• In 1999, deadly Typhoon Bart, packing winds of 108 kmph, threatens the tip of Hokkaido island after lashing Japan with rains and winds that kill at least 26 people and injure hundreds as it floods more than 4,000 homes, set off 245 landslides and downs power lines.
• In 2000, after the bloodiest summer in recent years, tens of thousands of people, including dozens injured by Basque separatists and relatives of those killed, pack the streets of San Sebastian in northern Spain to demand an end to violence.
• In 2001, US President George W Bush issues an order instructing US financial institutions to freeze the assets of 27 groups and individuals suspected of supporting terrorists.
• In 2004, kidnappers seize six Egyptians in Iraq in separate incidents, while the British Embassy in Baghdad hands out leaflets carrying a message from the family of a Briton kidnapped earlier.
• In 2005, crowds opposed to the war in Iraq surge past the White House, shouting "Peace now" in the largest anti-war protest in the nation's capital since the US invasion. Police estimate around 100,000 protesters.
• In 2006, Swiss voters ratify new asylum and immigration laws that make it more difficult for refugees to receive assistance and effectively block non-European unskilled workers from entering the country.