STATUS OF THE RV, PART. 3
The Central Bank of Iraq confirmed that closing the platform will not affect the movement of remittances at all, as remittances through this platform until 12/23/2024 represent less than 7 percent of total sales, according to a source in the bank.
The source explained to Al-Sabah that “the aim of this step is to control financial operations and work within the international scope in the process of foreign transfers and adopt the method of correspondent banks, which contributes to enhancing the stability of the financial sector in light of the current circumstances.”
Yes, Ali Al-Alaq does know what he is doing…. lol..lol..lol.. But what are these “current circumstances that are being referred to here in this article? I will tell you what they are – they are the circumstances are not having the dinar on the currency markets already, get it. Dr Shabibi wanted to go directly to FOREX and not have to go through all these other steps since we witnessed from Jan 2023.
The Central Bank also indicated that the strengthening of the balances of Iraqi banks that have correspondent banks abroad will continue as is, explaining that this does not mean stopping the “currency sale” operations, but rather a change in their mechanisms within a method followed all over the world .
He added that the “mechanism for strengthening bank balances has changed, as it is now done directly through the accounts of Iraqi banks with correspondent banks, instead of the accounts that were done through the Central Bank”, and that this new mechanism is dedicated to meeting the needs of imports and foreign trade of goods, commodities and services, which “contributes to supporting the financial and economic stability of Iraq”. Did they say the word “stability”? Didn’t the CBI tell us years ago they needed stability and security to conduct the Project to Delete the Zeros? Sounds to me they have it now. We also now know more of what the CBI meant by the use of that term Stability. It has become very clear to us now.
In the article financial and banking researcher Mustafa Hantoush pointed out that the Central Bank has strengthened the dollar accounts of Iraqi banks in foreign correspondent banks, which has “reduced the direct intervention of the Central Bank and allowed a greater role for foreign banks in auditing commercial operations.”
Hantoush also pointed out that “if the Central Bank wanted to reduce the gap in the dollar, it should open the door to competition between banks and rely on a basket of currencies to expand the options available in the market”, calling for amending the criteria for evaluating local banks and raising their financial capabilities, which would contribute to achieving stability and increasing competitiveness, and thus stabilizing the dollar price. Can you see now why reducing the gap in the rate between the parallel market and the CBI official rate is so important and vital to the next step? This objective is not going to change. It has to be done. They must stabilize the dollar price to the official CBI price.
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