"What does the parallel rate reaching parity with the official price set by the CBI mean?" BY ARIEL, 28 MAY

Ariel @Prolotario1

-- What does the parallel rate reaching parity with the official price set by the CBI mean?

The reason you all have not seen a reinstatement of the IQD on the Forex Market is because the black market rate was artificially suppressing the value of the national currency due to the speculation in that area. 

This means in the parallel market, the exchange rate for the IQD against the USD is often higher than the official rate set by the central bank. This discrepancy is driven by supply and demand dynamics, where limited access to foreign currency through official channels forces businesses and individuals to seek dollars in the parallel market at a premium.

Now that there is basically only one set price across the board. No one is going to have enough incentive in any market to resort to using the rate in the black market due to the lack of currency in the local Iraqi markets. Now businesses can actually be more transparent. More secure. And more reliable to not only the local market but the international market as well. 

This will give confidence in businesses across the world to do business with Iraq. Which of course by default will increase  investment in their country. Thus giving the Iraqi Dinar more value as time goes on making it a premier country to do business with on every level. 

Traders in the parallel market were hoarding foreign currency, anticipating further depreciation of the IQD. This speculative activity was exacerbating the disparity between the parallel and official rates. But now this has come to an end. And now the citizens will have more of a reason to stop hoarding currency and bring it to the banks so the new currency can be issued. 

Which of course will need an exchange rate to accompany the new buying power that will come with the volume of new currency needed in order to maintain and eventually move past the current rate due to all the new business contracts. 

This is like a cosmic alignment that took place that was centuries in the making. You have no idea how close we are to now seeing the new exchange rate. This was the very thing that caused such a long wait. Now that it is a foregone conclusion. Many of the projects that were stalled in Iraq can move forward. 

Which makes the approval of the budget more exciting than ever before since anyone has been in this investment. But another notable thing to this equation is the fact that America is now a Tier+1/Tier-0 country. Which means the international transactions speed of trade on an international and local level will be instantaneous. The timing of this couldn't have been more perfect. 

"On February 15, 2023, the Securities and Exchange Commission adopted rule amendments to shorten the standard settlement cycle for most broker-dealer transactions from “T+2” to “T+1,” subject to certain exceptions.  The compliance date for the rule amendments is May 28, 2024, at which point the standard settlement cycle will be T+1.  The SEC’s Office of Investor Education and Advocacy (OIEA) is issuing this Investor Bulletin to explain the new “T+1” settlement cycle and how it will affect certain transactions you place with your brokerage firm."

https://x.com/Prolotario1/status/1795142088314511410