We see this in today’s articles too when they called the CBI policies regarding the interest rates as “INCOMPREHENSIBLE” and so obviously they don’t care for the flexible “HYBRID MONETARY POLICY” of the CBI.
We have to remember that sometimes there are moments when desperate times brings desperate measures.
They might not be in line with things done in the past, but they work and so this measure of interest rate reduction did work regardless of the author’s OPINION that it did not work. As said in the article that 80% of the issued dinar is outside the banking system. But either the translation got messed up or this author is really off key.
I quote from the article; “As for (Iraq), the previous interest rates of 7.5% did not succeed in (withdrawing the hoarded cash) out of the banking system, which exceeds 80% of the issued dinar”. So, what is wrong with this statement in the article?
First, much of the 80% of the hoarded cash is outside the banking system and we as investors physically hold it. Since the initial issue of the three zero notes the CBI has more than tripled the issued monetary mass. They must shrink it back by 2/3. There are no other measures that will get this money into the banks unless they revalue it and exchange our currency to bring it back to Iraq through the central banking system.
Secondly, the CBI is attempting to bring this money “into” the banking system not “out” of it, as the article tells us (but this could just be a translation issue too).
Third, the CBI Hybrid Monetary Policy is working and has successfully withdrew much of the cash back and is still withdrawing much of this hoarded cash back to the banks and so I don’t know why the author is saying this. I have coordinated already with my CBI contact and verified the success of the program so far. There is still more to come. They need more time. But they have a figure and know an amount they need to get.
https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/
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