Wednesday, September 11, 2024

LATEST FROM PIMPY, 11 SEPT

  Pimpy  

Article:  "The parallel market will be overturned.  Sources: Upcoming decisions from he central bank that will confuse the markets and raise exchange rate.

 It's interesting they don't say which exchange rate...  

Quote:  "He stated the decisions are likely to raise the dollar exchange rate in the parallel market..."  When they say raise the dollar exchange rate, that's not good for us.  That means the dollar is rising up against the dinar...On the black market people are getting 1505 dinars for every $1.00... which is much higher than the 1320 for every dollar, the official exchange rate...

It's getting out of whack again.  As it gets harder and harder to get the US dollar, you're going to see the black market really start to increase.  I'm curious to see what kind of decisions the central bank is going to make...

PIMPY CC NOTES HIGHLIGHTS, 10 SEPT

 Summary

Iraq is undergoing economic reforms, particularly in the gas sector, while the Central Bank plans to adjust the exchange rate amid rising dollar values.

Highlights

  • 🇮🇶 Iraq is implementing significant reforms in the gas sector.
  • 💰 New investments aim to improve oil and gas infrastructure.
  • 🔄 Central Bank decisions may raise the dollar exchange rate in the parallel market.
  • 📈 Black market values are increasing, indicating currency scarcity.
  • ⚖️ Discussions around lowering the dinar’s exchange rate continue.
  • 🔍 Monitoring expectations around the Central Bank’s upcoming moves is crucial.
  • 📊 Inflation concerns persist as foreign exchange markets fluctuate.

Key Insights

  • 💡 Reform Potential: Iraq’s focus on gas investments reflects a strategic move to rectify past losses, enhancing economic stability.
  • 🔧 Infrastructure Upgrades: Modernizing outdated oil and gas technology is essential for operational efficiency and attracting foreign investments.
  • 📉 Exchange Rate Dynamics: The Central Bank’s potential adjustments could create volatility in the exchange rate, impacting investor sentiment.
  • 📉 Parallel Market Growth: The increase in black market rates highlights the challenges the government faces in stabilizing the dinar against the dollar.
  • 🤔 Economic Predictions: Speculation around whether the dinar will be devalued or strengthened reflects uncertainty in Iraq’s economic policy.
  • 🏦 Central Bank Strategies: The Central Bank’s actions are critical to curbing currency smuggling and ensuring a balanced foreign exchange market.
  • 🔍 Ongoing Monitoring: Investors should stay informed about Central Bank decisions and market trends to make sound investment choices.

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