Wednesday, December 25, 2024
Iraq announces great strides in digital transformation, 25 DEC
Iraq announces great strides in digital transformation
Economy News – Baghdad
The Ministry of Finance announced on Tuesday that it had made great strides in digital transformation and electronic payment, while pointing to progress in the field of automating customs procedures to ensure financial sustainability and diversification of the economy.
The representative of the Minister of Finance / Undersecretary of the Ministry, Ribaz Mohammed Hamdan, said in a speech during the fourth annual international scientific conference, entitled (Digital Financial Services – Challenges of Reality and Future Foresight), that “our conference today comes within the government efforts in the implementation of the government program, as digital financial services have witnessed a rapid development in recent years and modern technology has contributed to accelerating the financial process.”
He added that “the ministry has made great strides in the digital transformation, including money transfers, electronic payment, online loans and mobile banking services, which has increased the efficiency of accelerating financial transactions and reducing the need for cash transactions and providing services to people who do not have access to traditional banking services, noting that “innovation and development in this field have been promoted and ways of cooperation between the relevant authorities in the field of financial technology and discussed and reviewed the most prominent solutions related to cyber security and future risks in this sector and how to take precaution for those risks.”
He added that “the ministry has advanced in the field of automating customs procedures to ensure financial sustainability and the diversity of the economy in accordance with the principle of integrity, transparency and anti-corruption, and the implementation of programs in the Financial and Accounting Training Center to train employees on the use of new digital systems with the aim of enhancing digital skills in the ministry, improving financial performance and enhancing confidence in the financial system.”
FIREFLY: "We're going digitally with a new rate" , 25 DEC
Frank26
[Iraq boots-on-the-ground report]
FIREFLY: All banks according to Mr. Sammy have stopped all cash transfers from today to January 7th as part of early inventory. We have declared a two-day holiday on Christmas and then the next day. This is the first time that we've ever done anything like that on Christmas.
FRANK: Soon you will have purchasing power for the first time in a long time.
FIREFLY: This will also mark the end of using or handling cash as ever before...We're going digitally with a new rate...
What are Iraqis waiting for after the news of the “sudden suspension” of the dollar sale platform by the Central Bank?, 25 DEC
Baghdad Today – Baghdad
The financial and banking specialist, Alaa Al-Fahd, commented on Tuesday (December 24, 2024) on the impact of the suspension of the “platform” by the Central Bank on the markets during the next phase.
Al-Fahd told Baghdad Today that “the Central Bank of Iraq worked during the previous period with a plan through the auction of the sale of currency in the first phase, then the establishment of the electronic platform and intensive work to find correspondence methods between local banks and foreign banks with which we have commercial relations and their output in external transfers, and that is why the bank announced for a while that the end of this year the platform will be stopped and there will be direct correspondent banks.”
He pointed out that “this is normal. All central banks in the world are tasked with maintaining monetary policy and not selling currency. There is no central bank in the world that sells currency and mediates in the sale and purchase of currency. This work is the responsibility of banks and exchange companies, and this is true and it is a great challenge so that banking commercial relations are directly, according to monitoring by the Central Bank of Iraq.”
He added that “stopping the platform will not affect local markets from the dollar exchange rate, but there are those who try to broadcast rumors that this step will change the exchange rate, so selling the dollar itself that the Central Bank of Iraq was selling through the platform will be sold to banks and banks that have relations with foreign banks so that the transfer is direct according to electronic and monitored transactions, and for this the situation is under control and there is no fear of the impact of the markets.”
Economist Ziad Al-Hashemi revealed on Monday that the Central Bank of Iraq was suddenly suspending the operation of the dollar transfer platform before the scheduled date and without an official announcement and without taking into account the interests of Iraqi companies and markets, in a step that is said to be far from professionalism and transparency.
Al-Hashemi said in a post on the social networking site “Facebook”, followed by “Baghdad Al-Youm”, that “the suspension of the platform without an official announcement by the Central Bank may indicate that there is uncertainty and fear of the results of the platform’s suspension on dollar exchange rates, and the non-announcement can give the central opportunity to renege and evade the decision to stop the platform and return to the platform to operate the platform, even in case the dollar begins to rise to large rates.”
CRYPTO TRADER: HERE IS THE THEORY!!, 25 DEC
CRYPTO TRADER
Last year they revalued dinar to 1310 on February 7th,Which was a tuesday. Here is the theory.
Tomorrow being Tuesday and Christmas eve they can revalue after the US markets close as all forex closes till 5 pm Christmas day.
They have ample time just like Sunday and it's a perfect diversion . It will hit forex on boxing day which is Thursday .2 days of adjustments on forex and 2 days of weekend. And people can start exchange from 30th Monday which is a new moon day.
Lot of financial market positive moves happen on newmoon ,historically. And like sudani promised its just 1 day before the year end.
They can adjust their books according to the New rate for the new fiscal year starting Jan 1st 2025.
It's a perfect storm if it happens. Both Sudani and Alaq would be delivering on their promise if this theory is realized. Again it's just my thought process. Please use your discernment. Happy Holidays!
IMPORTANT IRAQ NEWS: AL-SUDANI IS CONSIDERING INVITING AMERICAN COMPANIES TO WORK IN THE PORT OF FAW, 25 DEC
AL-SUDANI IS CONSIDERING INVITING AMERICAN COMPANIES TO WORK IN THE PORT OF FAW
Prime Minister Mohammed Shia Al-Sudani discussed, today, Monday, with the Ministers of Oil and Electricity, in addition to specialized advisors and a number of undersecretaries in the two ministries, extending an invitation to specialized American companies to establish a fixed gas platform in the Grand Faw Port.
Prime Minister Mohammed Shia Al-Sudani chairs a meeting on energy projects.
Prime Minister Mohammed Shia Al-Sudani chaired a meeting today, Monday, on oil and electricity sector projects, in the presence of the Ministers of Oil and Electricity, in addition to specialized advisors and a number of undersecretaries in the two ministries.
During the meeting, the gas projects that are being implemented within the government program were discussed, as well as the timetable set for their completion, especially since there is an increase in the levels of stopping the burning of associated gas, as the percentage currently stands at 67 percent, and it is hoped to reach 80 percent by the end of next year, leading to a complete cessation of burning by the end of 2027.
During the meeting, the invitation to specialized American companies to establish a fixed gas platform in the Grand Faw Port was also discussed.
The meeting discussed inviting international energy companies to invest in natural gas fields, in addition to discussing the plan to supply fuel to power plants at the present time and for the coming months.
STATUS OF THE RV , PART. 3 BY MNT GOAT, 25 DEC
STATUS OF THE RV BY MNT GOAT
😊You might want to also take a look at the article titled “PARLIAMENTARY COMMITTEE: IRAQ IS HEADING TOWARDS A MAJOR INVESTMENT AND ECONOMIC BOOM”
It says and I quote “that Iraq is heading towards a major investment and economic boom during the next stage.”
Then also “”The stability achieved at the political, security and governmental levels will lead to important and large investment opportunities during the next phase and this will generate great prosperity at the economic level”
The author adds “The Iraqi government has achieved successes in the investment file and strengthening the economic and financial conditions, and these successes have been positively reflected in the services, reconstruction and development file, and the next stage will show these successes more clearly through investment and economic prosperity at various levels.”
Need I say much more today. We all should be VERY HAPPY to hear this news today.
________________________________
What can we as investors do right now?
- Pray and pray that nothing will mess this up….
- Be very patient….
- Do not sell your dinar….
- No more intel guru talk….
- No more NESARA / GESARA crazy talk
- Stop listening to all these idiots as they are only confusing you more and more (especially TNT and “The Big Call” idiots.)
- Don’t over speculate and set unjustified expectations
I know the path to this reinstatement and I don’t have to speculate or guess.
If you are faithful follower of my blog you then clearly see I have NEVER misled you on the information. How can I say this? It is because I show you evidence and FACTUAL information not some make-believe fairytale bank stories, or lies that four letter agencies are talking to me, because the aren’t and I don’t care what the hell they are saying anyway. None of this ridiculous NESARA or GESARA bullshit either. Get it? Stay away from all this crap. It is an illness that has spread throughout our dinar investment community. It is easy to lie and make up stories but much, much harder to spend the time translating articles and applying them to what is really going on. Yes, we must stay grounded as this RV is coming to a closure and there is not much longer to wait..
IMPORTANT IRAQ NEWS: PARLIAMENTARY COMMITTEE: IRAQ IS HEADING TOWARDS A MAJOR INVESTMENT AND ECONOMIC BOOM , 25 DEC
PARLIAMENTARY COMMITTEE: IRAQ IS HEADING TOWARDS A MAJOR INVESTMENT AND ECONOMIC BOOM
The Parliamentary Investment and Development Committee confirmed, today, Monday, December 23, 2024, that Iraq is heading towards a major investment and economic boom during the next stage.
Committee member Mohammed Radhi told Baghdad Today, “The stability achieved at the political, security and governmental levels will lead to important and large investment opportunities during the next phase, and this will generate great prosperity at the economic level, and this will lead to an important construction leap in various infrastructures.”
Radhi added, “The Iraqi government has achieved successes in the investment file and strengthening the economic and financial conditions, and these successes have been positively reflected in the services, reconstruction and development file, and the next stage will show these successes more clearly through investment and economic prosperity at various levels.”
In April 2024, the International Monetary Fund expected the Iraqi economy to grow by 1.4% in 2024 and 5.3% in 2025, and urged structural reforms and debt stabilization.
The Iraqi government also announced a decrease in unemployment from (16.5%) to (14.4%), a reduction in the poverty rate from (23%) to (17%), a decrease in the inflation rate from (6.1%) in 2021 to (2.5%), and an increase in non-oil revenues to (14%), after representing (7%) of the budget.
MNT GOAT: " RV would only facilitate more investors to go the ISX" , 25 DEC
MNT GOAT
😊I need to address one more important article today titled “THE ROAD AHEAD FOR IRAQ’S UNDERDEVELOPED STOCK MARKET”. In the article it tells us that
Iraq’s stock market (ISX) is considered a vital pillar. Oh… that’s the Pillars of Financial Reform again. Oh…. I get it…. Do you?
Also, in this article it talks about channeling savings into investments and it remains underdeveloped and overshadowed by regional counterparts.
Authorities are striving to revitalize the market to attract investors and promote economic diversification, however, challenges such as political instability, limited industrial and agricultural sectors, and bureaucratic hurdles continue to impede it’s progress.
In other words there is still work to be done and the capital flow into the ISX is not at satisfactory levels.
Can this drag on the implementation of the RV? I will ask my CBI contact over the weekend but I think the RV would only facilitate more investors to go the ISX. So the RV would be a positive event.
IMPORTANT IRAQ NEWS: DURING 2025.. CAUTIOUS ANTICIPATION OF THE ECONOMIC AND FINANCIAL REALITY IN IRAQ, 25 DEC
DURING 2025.. CAUTIOUS ANTICIPATION OF THE ECONOMIC AND FINANCIAL REALITY IN IRAQ
Economic expert Ahmed Al-Tamimi confirmed today, Sunday (December 22, 2024), that Iraq is heading towards a cautious situation regarding its economic and financial situation during the year 2025.
Al-Tamimi told Baghdad Today: “Expectations and data confirm that Iraq is facing hot events at the beginning of the new year, and these events will have repercussions and reflections on the country’s financial and economic reality, especially with the imminent assumption of the presidency of the White House by US President-elect Donald Trump, and the fear of imposing some sanctions and financial tightening on Iraq in order to limit the smuggling of the dollar as well as limiting the Iranian role through these economic pressures.”
He added, “There is extreme caution regarding the financial and economic reality of Iraq at the beginning of the new year, especially since the Iraqi economic situation is greatly affected by any security or political event, and for this reason everyone is anticipating the coming days, and this matter has led to a decline in the buying and selling of real estate and other valuable items, for fear of any expected economic and financial shock.”
The Parliamentary Finance Committee confirmed last Monday that the situation in Syria does not affect the Iraqi economy or the dollar exchange rate in the local market, noting that “the government and the Central Bank have taken several important measures to confront the security and economic challenges in the country, especially in light of the deteriorating situation in Syria.”
TIDBIT FROM MNT GOAT, 25 DEC
Mnt Goat
“REASONS FOR THE DELAY IN SENDING GENERAL BUDGETS IN IRAQ AND ITS ECONOMIC REPERCUSSIONS” ...Iraq is trying desperately to fix the system they have in place of budgeting. The article tells us the system has been an ongoing issue and needs to be fixed. It lists the issue involved and is very informative.
I will tell everyone...The hold up of the budget is NOT about the RV...I can tell you for sure with 1000% assurance the hold up of the budget implementation is NOT due to waiting for the new RV rate.
IMPORTANT IRAQ NEWS: THE ROAD AHEAD FOR IRAQ’S UNDERDEVELOPED STOCK MARKET, 25 DEC
THE ROAD AHEAD FOR IRAQ’S UNDERDEVELOPED STOCK MARKET
Iraq’s stock market considered a vital pillar for channeling savings into investments, remains underdeveloped and overshadowed by regional counterparts. Authorities are striving to revitalize the market to attract investors and promote economic diversification, however, challenges such as political instability, limited industrial and agricultural sectors, and bureaucratic hurdles continue to impede progress.
Market Overview
The Iraq Stock Exchange (ISX) was established in 1992 as the Baghdad Stock Exchange under Law No. 24 of 1991. It was later renamed in 2003, listing 113 private and mixed companies at its inception. However, despite its long history, the ISX lags behind neighboring markets in trading volume and overall activity.
Foreign investors remain hesitant, citing Iraq’s political and economic instability, as well as complex administrative and legal procedures for opening accounts and transferring profits. These barriers contribute to the market’s small size and limited appeal.
Economic Challenges and Market Dynamics
Muzher Mohammed Saleh, financial advisor to Iraq’s prime minister, highlighted the structural issues plaguing Iraq’s economy. “The country inherited a mono-reliant economy heavily dependent on oil revenues, exacerbated by decades of war, sanctions, and economic isolation,” Saleh told Shafaq News.
“Unfortunately, the industrial and agricultural sectors, which are essential for diversifying the stock market, are significantly weak.”
These two sectors collectively contribute only 6–7% of Iraq’s GDP, according to Saleh, with most activities being individual rather than corporate. He revealed that the stock market’s underdevelopment mirrors the broader structure of Iraq’s economy, where banking institutions dominate due to the liberalized, oil-dependent economy.
Notably, over 50% of ISX’s activity stems from banking institutions.
“The government’s new economic strategy focuses on fostering a production-oriented partnership between the public and private sectors to enhance economic diversification,” Saleh added. He noted that the success of the stock market hinges on achieving broader economic diversity and strengthening foundational sectors like industry and agriculture.
Market Constraints
While regional markets in the Gulf and North Africa have modernized rapidly, Iraq’s stock market has struggled to keep pace. Broker Mohammed Madloul pointed out that neighboring markets like Egypt and the UAE provide 24-hour stock price tickers in public spaces, allowing citizens to trade shares outside traditional hours. By contrast, trading in Iraq is restricted to specific hours, limiting transaction opportunities.
“In Iraq, the market’s size and activity are constrained,” Madloul said. “Many stocks trade at values below one Iraqi dinar, reflecting the limited scope of investments.” However, he acknowledged some progress in the banking sector, noting that the market capitalization of listed companies grew from 6.88 trillion dinars (about $5.2 billion) in 2021 to 10 trillion dinars in 2024 (about $7.6 billion.)
“This growth highlights a potential for expansion, albeit focused heavily on the banking sector.”
Weak Private Sector
Economic expert Durgham Mohammed Ali attributed the ISX’s small size to the lack of large companies and a strong private sector in Iraq. “The market reflects the weak state of Iraq’s developmental sectors and the public’s lack of trust in it,” Ali told Shafaq News. “The ISX remains technically underdeveloped compared to Gulf markets.”
Ali criticized the lack of efficient investment portfolio management and regulatory constraints imposed by the ISX’s oversight body. “These restrictions limit the operations of brokerage firms and discourage robust investment activities,” he said. “The performance of the market is directly tied to the efficiency of listed companies, which remain weak.”
Modernization Efforts
Despite these challenges, efforts are underway to modernize Iraq’s stock market. Taha Ahmed Abdul-Salam, ISX’s executive director, stressed the importance of stability and long-term corporate vision for attracting investors.
“The number of listed companies has increased from 105 to 107, and we are working to add more,” Abdul-Salam told Shafaq News. “This expansion is essential for attracting new investors.”
Abdul-Salam revealed that the ISX has signed an agreement with the Egyptian Exchange to implement a new Order Management System (OMS), enabling investors to trade via smart devices. “We expect to launch this system by June or July next year,” he said. This modernization is seen as a critical step toward making the market more accessible and competitive with regional counterparts.
EXCERPT FROM MNT GOAT, 25 DEC
EXCERPT FROM MNT GOAT
Once the parallel market is matched or close to the “official” CBI rate the next phase of the process that we have been waiting for now for over a year can happen.
That phase is an in-country rate change at or just over a dollar.
Next the currency switch-out to the newer lower denominations can begin.
This was Dr Shabibi’s plan all along since its inception in 2011.
He nearly executed it too in 2012-2013.
After the currency switch out and period to monitor for inflationary reactions with new rate, the move to reinstate the dinar back on FOREX would be next.
In simple terms, this is when we go to the bank and not before. The reason for the “holdup” is that these steps could not yet occur based on the current situation.
So, there is no bad news in these articles today, but you must know what is going on to appreciate exactly the ramifications of this news.
I also want to say everything so far is working according to the CBI plan of getting ready for this next phase.
We just have to let it play out. I know it is not on our timetable and even what my CBI contact told us it “might happen” at this time. I can’t control it.
IMPORTANT IRAQ NEWS: THE DOLLAR MARKET IS ON “ONE LEG”.. A NEW MECHANISM AND THE EXCHANGE RATE IS THREATENED!, 25 DEC
THE DOLLAR MARKET IS ON “ONE LEG”.. A NEW MECHANISM AND THE EXCHANGE RATE IS THREATENED!
The Central Bank of Iraq is preparing to stop dealing with the electronic platform for dollar transfers abroad, at a time when experts have warned against raising the exchange rate to a higher level in light of the news circulating about this.
The electronic platform was launched in early 2023, and it represents a system for auditing dollar transfers before they are executed, instead of the audit that the US Federal Reserve used to conduct after execution.
Banks, companies and merchants in Iraq faced some challenges before adapting to the new method, but they finally underwent a series of trainings that the employees of these banks received before fully adapting to the platform’s work.
Exchange rate hike
In light of these moves, news has been raised about a move towards a new adjustment to the exchange rate, which has raised economists’ concerns about the potential impact of this move on the economic process in general.
Experts stressed that sudden changes in monetary policy could create additional confusion in the markets and undermine confidence in the financial system.
Economic expert Mustafa Akram Hantoush said, “Changing the exchange rate in the current situation is useless, because the problem is not in purchasing power, but in the demand for the dollar outside the platform due to small traders, trade with Iran, and some materials that are imported outside the platform due to high customs duties or their ban, in addition to the citizens’ desire to save the dollar.”
Hantoush added to Al Jarida that “it is better to find solutions to the increasing demand for the dollar outside the platform instead of resorting to changing the exchange rate, because that will complicate the monetary situation even more than it is now.”
clear policy
According to an official at the Central Bank of Iraq, dealing with the dollar file was based on various opinions built on a series of studies and field research.
The official, who preferred to remain anonymous, explained to Al Jarida that “the bank adopted two main approaches to address the crisis. The first is to expand the use of international currencies such as the Chinese yuan, the Indian rupee, the UAE dirham, and finally the Saudi riyal, with the aim of reducing dependence on the dollar. The second approach focuses on developing the operational capabilities of local banks to become more qualified to participate in transfer operations.”
For his part, banking researcher Mahmoud Dagher explained that “the fluctuation of the Iraqi dinar exchange rate came as a result of two decisions to reduce the value of the dinar in 2020 and then raise it in 2023, which represents a clear intervention in the fixed exchange rate system, which created ongoing economic confusion.”
Dagher told Al Jarida that “any new change in the exchange rate reflects the absence of benefit from previous mistakes, as wrong interventions in monetary policy lead to adverse results that increase the instability of the financial market.”
As for the economic expert, Adi Al-Alawi, he confirmed that “the biggest mistake that the government can make is to manipulate the dollar exchange rate through sudden decisions, because that has a direct impact on the national economy and shakes investors’ confidence in the financial system.”
Al-Alawi added to Al-Jarida that “the government’s continued taking of ill-considered decisions regarding the exchange rate will lead to the erosion of international and local confidence in the Iraqi economy, which will weaken the ability to attract the necessary investments to improve the economic reality.”
AJ : " The platform’s suspension is scheduled for the end of this year." , 25 DEC
AJ
I saw this article this morning and wanted to share this with you. I'm heading out the door, see ya next week.
"The official noted that the platform’s suspension is scheduled for the end of this year." 👇
🇮🇶 A senior official from the Central Bank of Iraq (CBI) dismissed reports claiming that the bank's e-platform for foreign currency transfer had been officially suspended starting December 23, 2024.
Speaking to Shafaq News Agency on condition of anonymity, the source clarified that, “The auction operated as usual today, and no official decision to halt the platform has been made thus far.”
The official noted that the platform’s suspension is scheduled for the end of this year, as previously announced by the bank. However, “this step will not halt currency transfer operations as some have suggested. Instead, the process will transition to direct dealings between Iraqi banks and correspondent banks.”
The Central Bank representative pointed out that “many Iraqi banks are equipped to directly engage with correspondent banks, aligning with advanced international banking standards.”
https://shafaq.com/en/Economy/Source-Iraq-Central-Bank-did-not-halt-currency-transfer-platform
IMPORTANT IRAQ NEWS: FLUCTUATING DINAR: ECONOMIC EXPERTS URGE ACTION AS DOLLAR SOARS IN IRAQ, 25 DEC
FLUCTUATING DINAR: ECONOMIC EXPERTS URGE ACTION AS DOLLAR SOARS IN IRAQ
Iraq’s dinar continues its erratic trajectory against the US dollar, with no resolution in sight despite years of governmental and central bank efforts, experts attributed the instability to weak policies and unchecked market manipulation.
Root Causes of Volatility
The dollar is surging against the dinar at Baghdad’s main currency exchanges, Al-Kifah and Al-Harithiya, surpassing 1,510 dinars per $1. On the streets, exchange shops are marking up selling prices to more than 1,520 dinars.
“The instability in dollar prices reflects the Iraqi Central Bank and government’s inadequate monetary policies, which fail to address the core of the issue,” said Mustafa Faraj, an economic expert. “Their hesitant measures have left them unable to control the dollar’s value.”
Faraj cited US sanctions on neighboring Syria and Iran as a major factor. “The lack of legitimate trade channels with these countries, combined with restrictions on dollar transfers to them, has led to dollar smuggling, driving up its price,” he told Shafaq News Agency.
“When the dollar rises, it pushes up the cost of basic goods, food, and even commercial activity. This cascade of price hikes stems from a failure to find comprehensive solutions and punish manipulators,” Faraj explained.
Emerging Pressures
New dynamics have exacerbated the crisis. Ahmed Eid, an economic researcher, linked heightened demand for dollars to the fallout from the conflict in Syria. “The shift in Syria has disrupted the interests of militia leaders and influential figures, many of whom are now stockpiling dollars to secure alternative income streams,” he said.
Eid pointed to the closure of Syria’s border with Iraq as a catalyst, forcing traders to seek new suppliers in countries like Turkiye and Egypt. “This transition requires substantial dollar liquidity, which further squeezes the market,” he said.
Currency smuggling and money laundering also continue to erode market stability. “These illicit activities persist unchecked, compounding the dollar’s rise,” Eid warned.
Future Uncertainty Amid Policy Shifts
Concerns are mounting about the impact of Iraq’s planned phase-out of its electronic transfer platform for dollar transactions. Introduce d in early 2023, the platform was designed to monitor transfers more effectively. However, the Iraqi Central Bank announced in September that it would be discontinued by year-end.
“The Central Bank’s plan to shift dollar transactions exclusively to foreign banks with correspondent relationships is a blow to local banks,” said economist Ahmed Abdul Rabih. “Four dominant banks will monopolize the sector, sidelining smaller institutions and creating a bottleneck for dollar supply.”
“These banks will dictate the exchange rate, likely driving up prices. The Central Bank must advocate for local banks to establish accounts with international institutions like J.P. Morgan and Citibank,” Abdul Rabih urged.
Reassurances from the Central Bank
In response to public concerns, the Iraqi Central Bank has downplayed fears of major disruptions.
In a statement, it described the transition as part of a phased strategy to align with international standards, emphasizing that 95% of transfers had already shifted from the platform to direct banking relationships.
“The transition will be completed gradually, ensuring continuity,” the bank stated, adding that partnerships with foreign banks in China, India, Turkiye, and the UAE would facilitate trade using non-dollar currencies, such as the yuan and euro.
Thirteen Iraqi banks have already begun operations under the new framework, offering pre-approved transfers and enabling global payment systems for personal and commercial needs, the statement said. These steps aim to “stabilize the currency and curb inflation, reinforcing official exchange rates as the benchmark for legitimate economic activities.”
“The official rate reflects real market dynamics,” the Central Bank stressed, warning against unofficial rates driven by “those engaging in unauthorized practices.”
The bank emphasized that it has structured external transfer operations and the fulfillment of dollar demand along proper channels, aligned with international practices, standards, and the Anti-Money Laundering and Counter-Terrorism Financing Law.
“Providing these channels for all purposes at the official dollar exchange rate makes this rate the true benchmark for economic practices, as evidenced by price stability and inflation control. Any other rate traded outside these channels is considered irregular and utilized by those engaging in non-compliant or illicit practices who avoid official channels in their dealings. These individuals bear the additional costs of purchasing at higher rates than the official price to create the illusion of a disparity between the official and unofficial rates.” The statement concluded.
Despite reassurances, skepticism lingers among economic experts, who argue that without stricter enforcement and comprehensive reforms, the dinar’s fluctuations will persist. For many Iraqis, the cost of living remains tightly bound to the fate of the dollar.
STATUS OF THE RV, PART. 2 BY MNT GOAT, 25 DEC
STATUS OF THE RV, PART. 2 BY MNT GOAT
😊Now let me explain the good news about this article above and yet another one like it titled “FLUCTUATING DINAR: ECONOMIC EXPERTS URGE ACTION AS DOLLAR SOARS IN IRAQ“.
Folks the dollar rate in the parallel market should be soaring. Get it? Let me explain.
To explain the news in these two articles you must realize what is happening with the new “currency sales window”.
Of course, the rate of the dollar is going to surge to new highs as the demand goes up because of scarcity of the dollar in the black market (parallel market) – supply and demand.
Get it?
Supply creates scarcity and scarcity drives the price up. Think, think, think!
Isn’t this exactly what the CBI is trying to do?
The CBI is trying to finally break the parallel market with shortages of the dollar and eventually there will be very little dollars available even to sell in the parallel market.
But in the meanwhile, prior to the dollars drying up, the rate will skyrocket. It will be short lived and then the plan is for it to settle down to the “official” CBI rate.
At least, like I told everyone, this is the plan. We must just sit tight and pray that the CBI is correct and they can break the parallel market once and for all.
What happens next?
Once the parallel market is matched or close to the “official” CBI rate the next phase of the process that we have been waiting for now for over a year can happen.
That phase is an in-country rate change at or just over a dollar.
Next the currency switch-out to the newer lower denominations can begin.
This was Dr Shabibi’s plan all along since its inception in 2011.
He nearly executed it too in 2012-2013.
After the currency switch out and period to monitor for inflationary reactions with new rate, the move to reinstate the dinar back on FOREX would be next.
In simple terms, this is when we go to the bank and not before. The reason for the “holdup” is that these steps could not yet occur based on the current situation.
So, there is no bad news in these articles today, but you must know what is going on to appreciate exactly the ramifications of this news.
I also want to say everything so far is working according to the CBI plan of getting ready for this next phase.
We just have to let it play out. I know it is not on our timetable and even what my CBI contact told us it “might happen” at this time. I can’t control it.
Unfortunately, I will not be talking to my CBI contact on Wednesday due to the Christmas holiday but I will try a call on Saturday and maybe I will get an update and even better news by my Tuesday Newsletter.
Just so you know this will be the only Newsletter for this week of Christmas – NO THURSDAY Newsletter this week. Everyone should just enjoy the holiday with family and friends. Do not expect the RV and I just showed you why.
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