Iraqi Dinar Revaluation Update, 6 DEC

Iraqi Dinar Revaluation Update

Here we discuss recent developments regarding Iraq's economic reforms and the potential revaluation of the Iraqi Dinar, predicting the exchange rate could reach $4 USD. 

We highlights the excitement around Iraq's financial progress, including the increase in foreign reserves, modernization efforts, and upcoming strategic financial decisions involving international trade and currency valuation.

Iraq's Economic Reforms

Iraq is undergoing significant financial reforms aimed at increasing international trade and economic inclusion, supported by new technologies and a burgeoning stock exchange. This progress has garnered positive attention from financial analysts.

Potential Dinar Revaluation

Experts speculate that the Iraqi Dinar may be pegged at around $4 USD, supported by Iraq's financial stability and foreign currency reserves, which reportedly exceed the local currency issued.

Monitoring Currency Fluctuations

Current reports indicate fluctuating rates for currencies like the Vietnamese Dong, highlighting uncertainty in currency values. Insights suggest a potential rate of $3.90 for the Dong from banking contacts.

Domestic and International Developments

The video mentions Trump’s discussions concerning broader economic collaborations, alongside Iraq's strengthening financial infrastructure, such as an increase in the number of bank accounts and a focus on financial inclusion.

Clarification on Currency Exchange Process

It emphasizes that once the Dinar is officially recognized again for trading, exchanges will occur directly at banks without the need for redemption centers or special rates, which have been the subject of misinformation.

MNT GOAT : "The target for the Project to Delete the Zeros is set for late December / early 2025"

 

FRANK26: "YES... BECAUSE OF A NEW EXCHANGE RATE NO OTHER REASON", 6 DEC

 KTFA

 FRANK26: "YES... BECAUSE OF A NEW EXCHANGE RATE NO OTHER REASON".......F26

 

Monetary stability achieves economic stability and sustainable development

12/1/2024

 

Samir Al-Nusairi

   

On the sidelines of the participation of the Governor of the Central Bank in the opening of the activities of the Arab Sustainable
Development Week Forum in its fifth edition, which was held in the Egyptian capital, Cairo, this week, he confirmed that the monetary situation in Iraq is very excellent through the achieved indicators and basic goals on which the monetary policy is based in supporting the government’s orientations to diversify, stimulate and strengthen the national economy, and exit the circle of the rentier economy dependent on oil revenues, which constitutes a major flaw in the structure of the economy.

When there is no diversified production base in the important productive economic sectors, namely agriculture and industry, this cannot be achieved without a strong, solid, and developed banking sector capable of forming the main financing and investment link in financing, qualifying, and developing projects with a productive dimension and increasing the revenues of the general budget by rates exceeding 30% during the years of the National Development Plan 2024-2028.

This requires the necessity of activating the banking sector and stabilizing the pillars of the monetary position, which is in building “foreign reserves, which amounted to more than 100 billion dollars and 153 tons of gold, and constitute an adequacy ratio of 140% to enable the Central Bank to cover and support the defense of the exchange rate, achieve monetary stability, and cover imports, despite the difficult and complex circumstances surrounding the countries of the geographical region.

This enabled the Central Bank to control the general level of prices and inflation, which decreased from 7.5% in January 2023 to 3.8% currently, which is the lowest rate compared to inflation rates in Arab and regional countries, as the Central Bank continues to provide dollars for trade at the official price. It achieved a qualitative shift to regulate foreign trade financing.

New channels have also been opened for transfers using other currencies, such as Turkey, India and China, in addition to European countries. This will make the process of foreign transfers more flexible, streamlined, transparent, controlled and compliant with international standards that enhance confidence and credibility in the operations we carry out.” This means that the Central Bank is moving steadily towards achieving the objectives of monetary policy and achieving economic stability in accordance with Law No. 56 of 2004.

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TIDBITS FROM FRANK26, 6 DEC

 Frank26 

 Everything is in place for the monetary reform to be given to the Iraqi citizens.  The Prime Minister and Alaq are telling the citizens we are 95% done with the monetary reform. 

 We also know at the end of this year, December 31st, the auctions come to an end...It was the dollar that was keeping the Iraqi dinar stable. 

 What are you going to do when you don't have the auction?  When you cannot use the dollar anymore in your country? 

 ...You gave the dollar because the dollar had a very good exchange rate.  Now the dollar is taken away you need a very good exchange rate.  That is exactly what they are doing in my very strong opinion.

  They're saying we're at 95%.  Where's the 5%?  IMO it's an awful lot of different things being requested by Donald Trump by Iraq...

MAJEED: They have to open 2025 budget to pay their salaries @DINARREVALUATION #iraqidinar

 

FRANK26: "ALL THAT ABUSE THE USD... ARE YOU LISTENING?", 6 DEC

 KTFA

FRANK26: "ALL THAT ABUSE THE USD... ARE YOU LISTENING?".......F26

Trump warns BRICS against replacing dollar with other currencies

11/30/2024

 

US President-elect Donald Trump threatened to impose 100 percent customs duties on BRICS countries if they undermine the US dollar.

“We are asking for a commitment... that they will not create a BRICS currency, nor support any other currency to replace the great US dollar, or face 100% tariffs,” Trump wrote on his Truth Social social media platform, referring to the group of countries that includes Brazil, Russia, India, China, South Africa and others.

 

"They need to find another idiot," Trump added. "BRICS cannot replace the dollar in world trade, and any country that tries will have to say goodbye to the US market."

The statement comes after last month's BRICS summit in Kazan, Russia, where member states discussed boosting transactions in non-dollar currencies and strengthening local currencies.

BRICS has expanded since its inception in 2009, and now includes countries such as Iran, Egypt and the UAE. The BRICS alliance represents a minority of the world’s economic output.

At the Kazan summit, Moscow included a joint declaration encouraging “strengthening correspondent banking networks within BRICS countries and enabling payments in local currencies.”

But at the end of the summit, Russian President Vladimir Putin noted that little progress had been made in launching a potential competitor to the Belgium-based international SWIFT system.

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DINARLAND UPDATE HIGHLIGHTS, 6 DEC

 DINARLAND UPDATE HIGHLIGHTS

Showcasing a Stronger Economy

Iraq's government aims to present a strong and disciplined national image by introducing a new currency and effective exchange rates, which may attract positive attention from foreign countries.

End of Currency Auctions

The video mentions that the current currency auctions, established in 2003 to stabilize the dinar's exchange rate, will be phased out by December 31, prompting the need for a new framework, potentially involving a basket of currencies.

New Currency Exchange Policies

Future currency stability may rely on the dinar being convertible against a basket of foreign currencies, allowing for unrestricted conversion, which is a significant shift from the current auction system.

Banking Policies for Currency Exchange

Details are shared about an American First Credit Union providing opportunities for currency exchange without traditional restrictions, including a flat fee structure for transactions involving foreign currencies.

Celebrations and Government Work Suspension

The Iraqi Council of Ministers plans to suspend official work in celebration of Victory Day, highlighting national pride and achievements.

International Partnerships

The Central Bank of Iraq has signed a memorandum of understanding with the European Union and Germany to enhance financial markets, signaling international cooperation and financial development.

Tax Implications on Currency Transactions

Discussion around tax rates on currency transactions, emphasizing the importance of maintaining receipts for tax purposes, as short-term investments incur around 37% tax and long-term around 20%.

Achievements Under Sudani's Leadership

Prime Minister Sudani's government has been noted for methodical progress and achievements in various sectors over the past two years.

THE RV HAS STARTED BY WOLVERINE @DINARREVALUATION

FRANK26: "OF COURSE NOT TOOPIT!!!", 5 DEC

 KTFA

FRANK26: "OF COURSE NOT TOOPIT!!!".........F26

After the decision to cancel the platform.. Will we witness a crazy rise in dollar prices in Iraq?

11/29/2024

 News - Local

In a move that has attracted the attention of economic and financial circles, the Governor of the Central Bank, Ali Al-Alaq, announced the bank’s intention to cancel the electronic platform for financial transfers early next year.

This decision comes as part of a series of reforms aimed at facilitating financial procedures and stimulating the economy, but at the same time it raises questions about its potential impact on the stability of the dinar exchange rate.Iraqi before Dollar American.

 

 

 

The concept of the electronic platform and its role in currency stability

 

The electronic money transfer platform is a mechanism adopted to ensure the regulation of foreign money transfers and to limit the manipulation of exchange rates.

 

The platform documents commercial transactions and money transfers by banks and financial companies, ensuring more effective control over hard currency flows in and out of the country.

 

This platform has greatly contributed to narrowing the gap between the exchange rate.Official And price The market Black, where it prevented many money laundering and smuggling operations.

 

However, with the decision to cancel this platform, questions are raised about how it will be regulated.The market And transfer management.

 

The impact of deplatforming on the price Dollar

 

1. Increased demand for Dollar in The market Black, with the absence of an electronic platform, the demand for it may increase.Dollar in The market Black money is the result of the absence of control mechanisms, which leads to higher exchange rates outside official channels.

 

2. Weak confidence in the dinar, as cancelling the platform may weaken confidence in the Iraqi dinar, especially if effective alternatives are not put in place to ensure stability.The market Lack of confidence means that citizens and investors are likely to withdraw their money in dinars and transfer it to Dollar As a safe haven.

 

3. The impact of smuggling and money laundering, as cancelling the platform could cancel strict control over smuggling operations. Dollar Smuggling and money laundering practices may expand, increasing demand forDollarSignificantly and affects the central bank's reserves.

 

4. Accreditation The market On supply and demand, with the platform being cancelled, the currency market may become more affected by direct supply and demand. This may lead to extreme fluctuations in the exchange rate, especially in unstable economic and political conditions.

 

Chances of facing a rise Dollar

 

1. Activating alternative control tools

 

The government and the central bank can rely on other supervisory tools such as strengthening the role of local banks and imposing strict restrictions on foreign transfers.

 

2. Increase reserves of Dollar

 

The Central Bank may resort to pumping more dollars intoThe marketTo meet demand and maintain price stability.

 

3. Promoting local investments

 

By encouraging investment and reducing dependence on foreign currencies, pressure onDollarAnd strengthen the dinar.

 

4. Cooperation with international organizations

 

The government may cooperate with international institutions such as the International Monetary Fund and the World Bank to develop economic plans that contribute to stability.The market.

 

The decision to cancel the electronic platform for money transfers represents a major challenge to the Iraqi economy, and may have direct effects on the exchange rate. Dollar In front of the dinar. To achieve economic stability in the next phase, it will be necessary to take proactive measures to compensate for the absence of the platform and ensure the continuity of supervision overThe market Financial.

 

The balance between facilitating economic procedures and protecting the national currency will be the decisive factor in determining the success of this decision and its effects on citizens and investors.

 

The Governor of the Central Bank, Ali Al-Alaq, confirmed in a statement to the official agency, which was followed by:Sumerian“Next year, we will launch a new approach to expand and enhance citizens’ remittances for various purposes, such as travel, treatment, or any legitimate remittances abroad, just as we did for commercial remittances,” he said, noting that “there are also agreements currently in place with relevant companies such as Visa, Mastercard, MoneyGram, Western Union, to establish a new framework for implementing these operations, which will constitute another shift in controlling these operations.”

 

Al-Alaq added, "Next year or the beginning of next year 2025 will witness the completion of the current procedures, and we seek to provide reassurance, especially with some people's questions about the fate of transfers after the completion of the electronic platform at the end of this year 2024."

 

“There is no sudden transition, but rather a gradual transition that began in 2024, where the banks’ relationship was transferred directly to correspondent banks without passing through other links, and the process has been completed with continued success,” he continued, stressing that “more than 95% of this goal has been achieved, and this process will be completed successfully within the next two weeks,” noting that “there is international anticipation to celebrate this occasion.”

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