THE US AMBASSADOR’S STATEMENTS ABOUT THE RISE IN THE EXCHANGE RATE OF THE DOLLAR AGAINST THE IRAQI DINAR
On Thursday, the US ambassador to Baghdad, Alina Romansky, commented on the reason for her recent tour of Iraqi politicians, and announced that Washington was ready to help Baghdad in the water file with the upstream countries. She also indicated that Iraq’s adoption of the legitimate banking system guarantees the stability of the dollar’s exchange rates.
I went to my summer vacation in America and spent a good time, and I returned to Washington to prepare for important meetings on the seventh and eighth of August, for the benefit of the ministries of defense between the two countries, and the meetings ended and I returned to Baghdad and I thought that I had to meet the Iraqi political leaders and follow up on matters with the Prime Minister and understand what was going on in the five weeks I was away from them.
We will follow the provincial council elections and the extent to which they are free and fair, as well as the Kurdistan Parliament elections, and then the parliamentary elections, all of which are signs of a healthy democracy.
There are several reasons that cause the dollar to fluctuate against the dinar, including the existence of a parallel financial system, and the presence of smugglers and money launderers, which leads to an increase in the price of the dollar.
Returning to a legitimate banking system can create exchange rate stability. I think that there is a misunderstanding about the 14 banks, as no sanctions were imposed on them, but these banks are not allowed at the present time to deal in dollars.
The Iraqi military delegation and the Washington meeting:
This is the first joint military interaction that takes place under the government of Mr. Al-Sudani between high-level officials in the ministries of defense of the two countries. When Minister of Defense Austin came to Iraq in March, he called on the prime minister to send a delegation to Washington to talk about several issues.
We focused on two important points in the last dialogue, how do we continue, build and deepen security relations under the Strategic Framework Agreement, and how do we continue to build that between our security forces in order to improve and build security in Iraq.
The second part was definitely America’s participation in the coalition to defeat ISIS and how we continue to support this activity with our partners, the Iraqi security forces, in order to continue defeating ISIS, and we focused on these two points in the meeting of the two delegations.
US sanctions on Iran and their impact on Iraq:
For several years we have been providing Iraq with expenses to buy electricity from Iran and we have arranged and given exceptions for the Iraqis to pay money through restricted accounts in the central bank and we continue to make these exceptions for Iraq knowing that Iraq must continue to receive electricity.
Part of the policy and goal in supporting energy independence is that Iraq does not have to rely on an unreliable energy partner, and we encourage building a large network with others in the region to develop its energy and be able to provide it to the Iraqi people, and therefore we continue to support the modernization of electricity in Iraq.
Washington’s position on the oil-for-gas barter:
Our coordination targets electricity payments and the arrangements go back several years and do not include the exchange of oil or anything similar. We are studying what appears to be a proposal drawn up by the Iraqi government, but the details should be known from the Iraqi government
Climate change:
Iraq is facing a major challenge with regard to climate change. One of the ways the United States is doing to help Iraq is in the water sector.
(This water issue has absolutely NOTHING to do with climate change as this issue is a very long standing one and is all dependent on trying to make big cities in the middle of a desert. Get it? We need to stop grouping everything as climate change and making it a life threatening crisis. As there is not such thing as the climate change hoax the WEF is perpetrating on us. It is all just a narrative of lies told to us for so long now it is ingrained in our heads and we think it is real. It is a way to funnel our thinking.
The earth is constantly changing and there is not a damned thing we can do to stop it. Instead we must learn out lessons and stay away from hazardous areas regardless of the amount of money we can profit from it, this is the real problem not that earth is constantly changing. Man does it to himself.)
We realize that Iraq has challenges with upstream countries and we can play a diplomatic role to solve some problems, but it is important for Iraq to have the ability to manage its resources. Our main institution that helps in this modernization and development and finding solutions to this situation is the US Agency for International Development, and we have many projects that support solar energy and we have projects that support the Ministry of Water Resources.
The US ambassador commented on the news of a US military build-up to cut the border between Iraq and Syria, stressing that “these issues were discussed between the US and Iraqi Ministries of Defense,” which had been previously denied by the Prime Minister’s advisor, Mohamed Shia’a Al-Sudani.
A member of the Parliamentary Security Committee, Waad al-Quddo, had said earlier that the meeting between the US and Iraqi defense ministers in Washington witnessed a discussion of the movement of the US military build-up to carry out the “mission of cutting the borders between Iraq and Syria,” but the Sudanese advisor denied this.
Ambassador Elena Romanowski’s statements were identical to those of Al-Quddo, as she said in an interview with journalist Saif Ali, that “military activity is part of the natural rotation of American forces to and from Iraq, and these issues were covered when the meeting was discussed.”
In another matter, the US ambassador responded briefly to the Iranian ambassador in Baghdad accusing the US of using the electricity card to delay the street.
In his interview with the ambassador, journalist Saif Ali read a statement by the Iranian ambassador saying that Washington is using the electricity card to fuel the street, and Romanowski responded by saying, “This is what the Iranians are doing.”
The ambassador denied the existence of any American objection to the visit of Iraqi Prime Minister Muhammad Shia al-Sudani to Washington, and said:
The current prime minister is going to New York to participate in the United Nations General Assembly meeting, they told me.
You can check with the prime minister’s office about that.
In the US, there is no decision to prevent the Sudanese prime minister from visiting Washington.
It is important that we agree on a schedule that fits the dates of the leaders, and we discuss when the visit is suitable for both parties.
The saga about the Iraqi dinar RV only gets better as the months roll on.
But how long will it be before Iraq is allowed to liberate its own currency?
We know the value in the dinar exceeds even pre-1991 era but what is holding it back?
We know Iraq now pumps 2/3 more oil than in pre-1991 era.
So why is the dinar still 1/6 of a penny?
We have learned that the CBI is targeting a new revalued rate for the dinar of 1132 from 1320 and very soon.
Didn’t we hear about this exact same rate months ago?
Is this coincidental?
Any of the negative nay-sayers bashed us and told us it was a typo mistake by the CBI.
Really?
Why was it not made the “official” rate at that time?
In retrospect after reading all the news since, we all should know why.
But the important part is that this is their target, and we know now it is.
Is this the last rate change we are looking for prior to the 1:1 coming revaluation and triggering the project to delete the zeros?
Just be patient, the reinstatement is coming.
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You ran with that number for three weeks as I recall, though you knew the CBI had the rate posted at 1320.
Clearly all the quoted numbers from that report were wrong including the black-market rate.
Here’s the report in fact, [notice the black-market rate as well]:
Ali Al-Alaq to Shafaq News: Wait for a decrease in the parallel dollar exchange rate
EconomyDollar Rates
Ali Alalaq
اسعار الدولار – شفق نيوز
وكالة تنشر اخر الاخبار وابرز الاحداث في العراق وكوردستان والعالم لحظة بلحظة
اقتصـاد – شفق نيوز
وكالة تنشر اخر الاخبار وابرز الاحداث في العراق وكوردستان والعالم لحظة بلحظة
2023-03-21 12:48
Shafaq News / The Governor of the Central Bank of Iraq Ali Al-Alaq expected, on Tuesday, a decline in the parallel dollar exchange rate (market rate and local exchanges) during the coming period.
Al-Alaq told Shafaq News Agency, “The Central Bank has launched multiple packages of measures, and the packages that have been launched are being dealt with seriously to control the parallel dollar exchange rate.”
Al-Alaq pointed out that “the measures of the Central Bank are continuing to control the exchange rate, and we expect a decrease in the parallel exchange rate.”
The parallel rate means the exchange rate of the dollar in the market and exchanges, not the official rate set at 1132 dinars per dollar, according to the decision of the Board of Directors of the Central Bank of Iraq, which was approved by the Council of Ministers.
Iraq’s central bank has issued three reform packages it said were aimed at tackling the rise in dollar exchange rates.
Despite the Central Bank’s actions and approval of the exchange rate of 1132 dinars to the dollar, the exchange rates of the dollar still range in the markets between 1155 and 1158 dinars to the dollar.
Iraq's CBI reports 80 billion Iraqi dinar fines on banks and non-banking institutions
Shafaq News/ The Central Bank of Iraq has disclosed that fines levied on banks and non-banking institutions, including exchange companies, totaled approximately 80 billion Iraqi dinars during the past seven months.
An official bank report indicated that fines imposed on banks and financial entities from January to the end of July 2023 amounted to 79,777,817,397 dinars. The report further revealed that these fines encompassed 318 administrative penalties directed at banks and institutions mentioned. Non-banking entities received a range of penalties, including warnings and temporary suspensions.
The report noted that April witnessed the highest fines imposed, reaching 17,440,383,447 dinars and 17 administrative penalties. Conversely, June recorded the lowest fines, totaling 8,353,387,476 dinars, with 50 administrative penalties.
The report does not mention the bank names with the fines and administrative penalties.
In June, the Iraq Stock Exchange Investors Association criticized the Central Bank of Iraq for increasing fines on banks, highlighting concerns about the potential impact on investors' profitability.
