The Dollar Crisis In Iraq.. Learn About The Dangers Of The Parallel Market On The Dinar
Economy 2023-08-10 | Source: Alsumaria News 2,097 views Alsumaria News – Economics Today, Thursday, August 10, 2023, economist Nabil Al-Marsoumi revealed the dangers of the parallel market on the Iraqi dinar, at a time when the central Al-Kifah and Al-Harithiya stock exchanges in the capital, Baghdad, recorded an exchange rate of 152,000 Iraqi dinars against 100 US dollars.
Al-Marsoumi said in a post titled “The Risks of the Parallel Market,” followed by Alsumaria News, that “the widening gap between the official and parallel prices of the dollar against the dinar weakens confidence in the Iraqi dinar, reduces incentives to deposit money in Iraqi banks, and pushes savers to exchange the Iraqi dinar for dollars and gold, or by investing in the purchase of land.” And real estate leads to a rise in prices and a decrease in the real value or the purchasing power of the dinar.
Today, the two central stock exchanges of Al-Kifah and Al-Harithiya in Baghdad recorded an exchange rate of 152,000 Iraqi dinars for 100 US dollars. As for the dollar prices in exchange shops in the local markets in Baghdad, they decreased, as the selling price reached 153,000 dinars, while the purchase price reached 151,000 dinars for every 100 dollars.
And the Central Bank of Iraq decided, earlier, to adjust the exchange rate of the dollar against the Iraqi dinar, as the price of purchasing a dollar from the Ministry of Finance reached 1,300 dinars per dollar and sold it at (1310) dinars per dollar to banks through the electronic platform, and sold at (1320) dinars per dollar. Dollars from banks and non-bank financial institutions to the final beneficiary. LINK
The instructions for the budget, which I say is an exchange rate, a different one, is not in the gazette that is being released…These clowns, parliament committee, they went behind Sudani’s back and they added projects to the budget for themselves…knuckleheads…We were going to do it this week but no you had to put this abuse in it. So we’re going to hold up on the budget.
The CBI can’t reduce the value of the American dollar. Only the U.S. Treasury can do that…
but you can add value to your currency can’t you CBI? You can add mechanism to your own currency that will increase the value and decrease the American dollar in the process…
[Iraq boots-on-the-ground report]
FIREFLY: My bank friend say when they delete the zeros it will be from the exchange rate and not the currency. Alaq said the rate change is on his time and the delete the zeros still exists.
…If you were around a decade ago…remember that the CBI governor back then, Dr. Shabibi, he was able to stabilize the rate of the dinar at about 1166. I firmly believe this is about the rate they are targeting from 1320 to around 1166 next as their next “official” CBI rate. I was told this by my CBI contact that we would see yet one more official rate change prior to the project to delete the zeros and then the reinstatement…
MilitiaMan (KTFA)
The World Trade Organization is waiting patiently for Iraq’s ability to get certain things stabilized and agreed to. They have some obstacles to get over the World Organization wants them to do.
That obstacle is most likely their exchange rate – being Article VIII IMF compliant. That’s going to be a very key component for this to happen.
[The Prime Minister Sudani] is suggesting..the government has launched major projects…
Article Quote: “5 cities have been announced and we are in the process of preparing the second meal in order to prepare it for investment…”
He’s effectively telling you we’re launching all of that… You have to ask yourself, how are you going to do that at 1300, 1310 or 1320 as the exchange rate? You can’t. We’re gonna have to watch and see what he’s going to do…Remember, go back in time. Al Sudani said, ‘Hold on to your dinar because the dinar is stronger than the dollar.‘
MarkZ
…I’m expecting something big to break loose by Friday…most of my sources are “hey, just relax, watch it unroll between now and the 16th and 18th…you’ll have everything you ever wanted“…I’m watching it all come together…but we don’t know the time…we are clearly moving in that direction…
The Central Bank of Iraq issues four strict directives to exchange companies regarding the sale of the dollar
Shafaq News/ The Central Bank of Iraq issued, on Wednesday, four strict directives to exchange companies regarding selling dollars to travelers.
The bank said in an official letter addressed to exchange companies under the categories (A, B), obtained by Shafaq News Agency, that “based on the bank’s oversight and supervisory role, and for the purpose of controlling cash sales of dollars to travelers through the electronic platform (FITR), we call upon your companies Commitment to carrying out cash dollar sales in accordance with the instructions and controls in force, strictly adhering to their requirements, and using them for the specified purpose exclusively, and for eligible persons after verifying their original documents, and failure to comply with what was mentioned will result in imposing a penalty for depriving the violating company of the dollar, and it may reach withdrawing the company’s license “.
He added, “The Central Bank keeps the sequences of banknotes that companies receive through banks, and therefore finding them with speculators and unlicensed people holds the company that leaked them responsible for that, and commits them to a serious violation that may be punished by withdrawing the company’s license, as well as judicial procedures.”
And he continued, “The non-merged companies have been given long and sufficient deadlines, and the date of 12/31/2023 will be the last date for submitting merger applications, and the allocation of companies’ shares from cash dollars after this date will be contingent on achieving the merger.”
And the bank concluded, “Starting from the date of 8/8/2023, the company’s entry to the window for buying and selling foreign currency will be suspended in the event that (3) complaints are received against it from citizens, which prove their validity, until it submits a mechanism or program to control the sale duly approved by this bank.” And in the event of a repeat of the violation, this bank will permanently prevent the company from entering the foreign currency buying and selling window.
shafaq.com
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The “information” reveals “important” details related to oil and gas. The draft law is being presented, and this is its content
Today, Wednesday, the Parliamentary Oil, Gas and Wealth Committee revealed the outcomes of a government meeting regarding the oil and gas law in the capital, Baghdad, and while confirming the submission of a draft law, it clarified its content.
A member of the committee, Intisar Al-Jazaery, said in an interview with Al-Information Agency, that “a meeting was held today in Baghdad regarding the oil and gas law, which included all concerned parties from the executive authority in addition to the governor of Basra, as it is the first province to produce oil.”
She added, “The meeting witnessed the issuance of a draft oil and gas law, which was submitted by all parties, including the Kurdistan region,” indicating that “the draft contained a lot of materials for licensing rounds for oil-producing and non-oil-producing provinces, how to distribute them fairly, and how to develop them and call for investment.” Oil and petroleum will be developed in the coming years.
A member of the Parliamentary Oil Committee explained, “This draft was written in order to discuss the materials contained within it and to know the developments that may occur on them, and then after that it will be discussed within the Oil and Gas Committee, as the committee responsible and concerned with this file.”
And on the fields of the Kurdistan region, Al-Jazaery indicated that “the oil and gas law will be approved to eliminate all these problems, and for the management of this file to be unified by the federal government.”
She pointed out that “the region produces oil, but in return it receives the salaries of its employees from the center, which prompts the federal government to control all wealth, including the Kurdistan region, as it belongs to all the people.”
And she continued her speech, saying: “This law regulates all oil extraction and export operations through SOMO,” noting that “this draft contains many important articles, and in the coming days it will reach the House of Representatives.”
The oil and gas law is one of the issues that raised controversy between Erbil and Baghdad for many years, but it was agreed to approve this draft law between the two parties within the framework of a political agreement that led to the formation of the current government.
