AJ: BLAST FROM THE PAST, 27 DEC

 AJ

Blast from the past: 

A must read from the official CBI Sep 04 2024 Currency Auction end of this year and according to the "plan."  

"I said this is a planned event" because the CBI Said It Was.

The electronic platform(currency auction) for foreign transfers managed by the Central Bank of Iraq began in early 2023 as a first phase to reorganize financial transfers to ensure proactive control over them instead of subsequent control through the Federal Reserve auditing daily transfers.

This was an exceptional measure as the Federal Reserve does not usually do this. A gradual shift was planned towards building direct relationships between banks in Iraq and foreign correspondent and approved banks, mediated by an international auditing company to conduct pre-audit on transfers before they are executed by correspondent banks. During the year 2024 and until now, 95% of the transfer process from the electronic platform to the correspondent banking mechanism directly between it and Iraqi banks has been achieved, which means that only about 5% of it remains within the platform, which will be transferred using the same mechanism before the end of this year and according to the plan. Thus, some expectations about possible effects on the exchange rate and transfer operations are "baseless," because the process will not be sudden or in one go at the end of this year, 

but rather it was originally achieved during the past period with effort and careful follow-up, except for the remaining small percentage that will be accomplished in the coming short period. The Central Bank of Iraq confirms that trade with the United Arab Emirates, Turkey, India and China represents about 70% of Iraq’s foreign trade as (imports), which prompted the Central Bank of Iraq to find channels for transfer in euros, Chinese yuan, Indian rupees and UAE dirhams, through approved correspondent banks in those countries. mechanism that has been agreed upon and approved in addition to transfers in dollars. Providing channels for personal transfers for legitimate purposes and external purchases through electronic payment channels, global money transfer companies, cash sales to travelers, and paying cash dollars for incoming transfers to the parties and purposes specified in the Central Bank’s published instructions. The Central Bank of Iraq stresses that it has placed foreign transfer operations and meeting dollar demands on sound paths consistent with international practices and standards and the Anti-Money Laundering and Terrorist Financing Law. He explains that providing the aforementioned channels for all purposes at the "official dollar price" makes this price the true indicator of economic practices, which is proven by the reality of price stability and control of inflation.

Any other price traded outside of these channels is considered an abnormal price that those with unorthodox or illegal practices resort to, who avoid official channels in their dealings, and bear the additional costs alone by purchasing at a higher price than the official price, to deceive others about the difference between the official price and the other. Central Bank of Iraq official rates Al-Sudani signed into law on Feb 07 2023