Monday, October 7, 2024
The Dinar Collapses Against The Dollar.. Is The Specter Of 1600 Looming On The Horizon?
The Dinar Collapses Against The Dollar.. Is The Specter Of 1600 Looming On The Horizon?
October 3, 2024 Baghdad/Al-Masala: The dollar price witnessed a noticeable increase against the Iraqi dinar during the past few days, as the exchange rate reached 1,550 dinars per US dollar.
This increase has raised great concern among economic and popular circles due to its direct impact on the local market and on the standard of living of citizens.
Economic analyst Munar Al-Abidi explained that there are a number of reasons behind this rise in the US currency against the dinar.
One of the most prominent reasons is the decline in transfers of other foreign currencies, such as the UAE dirham and the Chinese yuan, as a result of the significant restrictions imposed by correspondent banks that are in the process of strengthening the balances of these currencies.
These restrictions directly affected the fluidity of transfers and weakened the possibility of obtaining other foreign currencies on which the Iraqi economy depends.
In addition, the Citi-Pilot project faces clear challenges, as the banks participating in it are reluctant to open new accounts for operating companies, as their dealings are limited only to companies with which they have previously dealt.
This limited approach reduces the ability to use these banks as channels for external remittances, increasing pressure on the US dollar and limiting the availability of alternatives.
The current currency exchange mechanisms were unable to cover the increasing demand for foreign currency, especially for the purpose of importing some of the most valuable goods, such as mobile phones and gold, which prompted importers to resort to the parallel market, and contributed significantly to increasing pressure on the dollar and raising its price in the local market.
Expectations indicate that the decline of the dinar against the dollar may continue during the coming period.
If practical measures are not taken to address these issues, the exchange rate could reach 1,600 dinars per dollar in the coming months. In order to address this challenge, there are several solutions that can help calm the situation. One of these solutions is to increase the network of correspondent banks around the world, especially in the UAE and China, which could help facilitate remittances and increase the flow of foreign currency into the country.
The solutions also include controlling financial policy by limiting the import of some goods that contribute to increasing demand for the dollar, in order to reduce pressure on foreign currency.
Pressuring banks under the Citi-Pilot project to be more open could help accept a wider range of customers, which would help ease pressure on the dollar and diversify the channels available for remittances.
In addition, it may be necessary to temporarily ban the import of some goods to reduce the demand for foreign currency until more organized and smooth solutions for the foreign transfer process are found.
The rise in the dollar exchange rate against the dinar is the result of a combination of economic and financial factors, including weak banking infrastructure, difficulty in accessing remittances, and increased demand for foreign currency for import purposes.
The current situation reflects major challenges that require rapid and effective action from the Iraqi government and the Central Bank to restore stability to the financial market.
EXCERPTS FROM MNT GOAT, 7 OCT
EXCERPTS FROM MNT GOAT
If you remember in a recent Newsletter, I posted news from the Iraqi Securities Commission on the necessary changes and reforms. Yes, these reforms are to progress the Iraqi Stock Market to a high level of stability. Opps… I said it again. Did I just use the term “stability”?
So, today we read that Iraq announces the launching of a new website of the Commission, indicating that “this event represents a milestone in the path of developing the investment infrastructure in Iraq.” We as investors can see that these reforms have come a long way in the Securities Commission to transform this vision of an Iraqi Stock Market into a tangible reality that serves all investors within the framework of the government’s plans and under the auspices of Prime Minister Mohammed Shia Al-Sudani.
They also tell us that this effort is working to transform the Iraq Stock Exchange (ISX) into an integrated electronic system that provides all citizens and investors with greater opportunities to participate in investment in a safe manner. The key word here is “safe” as they told us in their past news that corruption also plagued the ISX and a major contributor keeping many potential investors away form it.
As investors in the IQD, we can now clearly see that this must be addressed too prior to any reinstatement of the dinar on the currency exchanges. Do you see it too?
So, we must keep an eye out on these Pillars of Financial Reform as they will guide us to the RV. I have said this many times already and so I will continue this journey with you. I have also had confirmation from my CBI contact that I am seeing these reforms within the correct light and should continue. I was also told that these reforms in the ISX are not going to drag out and the plan is to accomplish them in the next few months, prior to the end of the year. Opps… there is another end of year benchmark.
"DATA FOR THE HCL DISTRIBUTION" BY FRANK26, 7 OCT
Frank26: "DATA FOR THE HCL DISTRIBUTION"...........F26
2024 Census.. Planning receives 125 thousand tablets and stresses the confidentiality of citizens’ data
10/2/2024
The Ministry of Planning announced that it has received 125,000 tablets that will be used by researchers and enumerators to conduct the general population census, which is expected to be implemented on the 20th of next month.
The ministry's media spokesman, Abdul Zahra Al-Hindawi, said in a press statement, "The past few days witnessed the arrival of 125,000 tablets to the ministry, which will be distributed among researchers and enumerators in the governorates to conduct the general population census that will be implemented on the 20th and 21st of next November, noting that a curfew will be imposed on these days to facilitate the procedures of the census employees."
He added that his ministry had prepared early to conduct the general population and housing census after efforts and preparations to implement the census had reached their peak, having made several strides through training and qualification operations for enumerators and researchers.
Al-Hindawi explained that the aim of the census is to draw a picture and map of the demographic reality to diagnose development gaps and gaps and create an image represented by numbers, statistics, details, data and development reality through sectors related to the characteristics of life.
He stated that the information that researchers will obtain from citizens will be of the highest degree of confidentiality and will be used exclusively for census purposes, noting that this procedure seeks to achieve development goals and diagnose the defect in order to develop solutions through a long-term plan that depends on the accuracy of the data to reach and identify the drawing of the new map that includes all the needs and services that should be provided. LINK
IRAQ NOW : " CHANGE IS COMING" BY MAJEED KSA, 7 OCT
MAJEED KSA
Iraq now
-
Bank appointment for Currency EXCHANGE Instructions/Checklist Bank Name_________________________________________ Bank 800#____________...
-
Walkingstick All these meetings that the CBI had with all these agencies that were helping them with their monetary reform are done. Al...
-
JENTEL RV UPDATE RV NEWS- AA Uriel Payments are being received. They started yesterday in other countries. To meet today's requireme...