"STATUS OF THE RV" BY IQD IRAQ & VND VIETNAM, 5 AUGUST

 STATUS OF THE RV

So, on Monday Representative Baqir Al-Saadi expected that the dollar exchange rate against the dinar will continue to decline in the coming days.

Al-Saadi said, that common external-internal factors were behind the rise in the exchange rates of the dollar in the parallel market in Iraq in recent weeks, in a way that raised public concern.

In today’s news the CBI tells us that on Thursday (August 3, 2023), the Central Bank of Iraq revealed new decisions that will be issued next week to reduce the price of the dollar in Iraq to be continued.

We know this is the fourth time the CBI told us they were implementing a package of currency reforms.

On Thursday, the Central Bank identified three categories of exchange companies for selling the dollar to travelers, and while it revealed a proposal regarding the entry of imported goods through the border crossings, it indicated that there are new decisions that will be issued next week that may contribute to lowering the price of the dollar.

This week I had an interesting conversation with my CBI contact in Iraq.

I was told to expect yet another “official” rate change of the dinar from the 1320 rate.

I was told the new measures were trying to get as close to 1000 rate as possible.

I asked about a more specific number, but I could not get a commitment on the actual range.

However, I was told that the measures to be taken in the coming weeks should move the dinar within this range.

What is the plan once this new rate range is met?

I was told that the CBI could then go ahead with the project to delete the zeros.

We know that when this new rate is rolled out the CBI will then drop three zeros from the currency.