GET READY...GET READY!...GET READY! ...$$$$...THE CLOCK IS TICKING...THE COUNTDOWN BEGINS...
Question: Ray, where are we in the countdown...?
RanyRen98 Answer: RIGHT NOW...I'M THINKING HOURS. TIME WILL TELL!! ♫♪♫♪♫ I GOT A FEELIN ...TONIGHT'S GONNA BE A GOOD NIGHT ♫♪♫♪♫ times 2...
ATMs tested and operational today... It’s going to be a superfantastic wknd.
Review your plan and get your documents in order.
First window opens after 4pm est...
MEMBERS ARE CALLING WITH THEIR OWN 3-LETTER STORIES - THEY'RE SAYING LOOK FORWARD TO AN EXCITING SATURDAY! ...Some banks are making appointments for this weekend.
Walkingstick
[Iraqi Banking friend Aki update]
The ATMs are ready to go with the 'new currency'. The CBI was talking with the private banks on when to bring them online. No date was given at the meeting.
But they will be notified when to bring these new ATMs online...
The Iraqi Central Bank sets the date for listing internal commercial transactions in dinars... new instructions
The Central Bank of Iraq has set next year as a date to limit internal commercial and other transactions to the Iraqi dinar instead of the dollar.
The Governor of the Central Bank, Ali Mohsen Al-Alaq, said in a statement received by Al-Sumaria News, on Sunday, that “the bank is proceeding to dispense with external transfers next year and to rely on correspondent banks in correspondent banks in external transfer operations, as transfers through correspondent banks have reached 60%.” of the total transfers (outside the electronic platform of the Central Bank)
W#hile the implementation rate of verified transfers reached more than 95%,” indicating that “this came after an agreement between the Central Bank of Iraq and the US Federal Bank, similar to countries of the world, where central banks do not conduct business.” Executive, and its role is focused on supervision and control
He stressed, during the meeting with the heads of the boards and authorized directors of the banks licensed in Iraq, that “the Central Bank’s endeavor to open direct channels of communication for Iraqi banks with their foreign counterparts in correspondence, commercial exchange, etc. came in intensive stages, while what is currently underway is opening transfer channels in various currencies, including ( UAE Dirham, Turkish Lira, Indian Rupee, and Euro).
He stated, “The coming year will witness the restriction of internal commercial transactions and other transactions to the Iraqi dinar instead of the dollar, except for those delivered to travelers.”
He pointed out that "the entry of most merchants into official transfer channels and the provision of the dollar at a price of (1,320) dinars was a direct reason for controlling the general level of prices and lowering the inflation rate, which is a basic indicator of the effectiveness of monetary policy, and that the black market price is not suitable as an indicator as it relates to the dollar." Cash is for non-fundamental transactions and is not intended for legitimate trade purposes.”
Al-Alaq pointed out that “the new system of external transfer and sale of the dollar provides protection from risks for all parties to the operations, enjoys international acceptance and praise, is consistent with the law on combating money laundering and the financing of terrorism, and achieves an important initiative for direct relations between Iraqi banks and accredited international banks.”
The meeting reviewed "the mechanism for establishing Riyada Bank and the societal importance on which the bank will be established, especially as it is consistent with the directives and vision of the Prime Minister. Discussions were raised on this topic, including the contributions of banks to establishing Riyada and the working mechanisms of this bank, which will be a window for those wishing to open small productive and commercial projects that contribute to... Developing the local economy and reducing the unemployment rate with direct support from the Central Bank.” link
Al-Alaq: Next year will see all internal commercial and other transactions limited to the Iraqi dinar instead of the dollar
Today, Sunday, the Central Bank announced the provision of the dollar at a price of 1,320 dinars, which was a reason for controlling the general level of prices.
A statement from the bank, a copy of which was received by NRT Arabic, stated that “its governor, Ali Mohsen Al-Alaq, announces that the bank will dispense with external transfers “next year” and that banks licensed in Iraq will rely on correspondent banks in external transfer operations, as transfers via correspondent banks amounted to 60 % of the total transfers (outside the electronic platform of the Central Bank), while the implementation rate of verified transfers reached more than 95%.
He added, "This came after an agreement between the Central Bank of Iraq and the US Federal Bank, similar to countries around the world, where central banks do not perform executive duties, and their role is focused on supervision and control."
Al-Alaq confirmed, during the meeting with the heads of the boards and authorized directors of the banks licensed in Iraq, that “the Central Bank’s endeavor to open channels of direct communication for Iraqi banks with their foreign counterparts in correspondence, commercial exchange, etc. came in intensive stages, while what is currently being done is opening transfer channels in various currencies, including (UAE Dirham, Turkish Lira, Indian Rupee, Euro).”
He continued, "The coming year will see all internal commercial and other transactions limited to the Iraqi dinar instead of the dollar, except for those delivered to travelers." link
[via PDK] When I say redemption centers...a redemption center is a bank in the region …in your area…that is specially equipped and set up with the people who have been trained to handle it. This difference in terminology causes a tremendous amount of confusion... Maybe I should start calling them “redeeming banks?”
It is not in the Gazette yet…they have not done it yet…But…the chatter has been over the top...The chatter in Iraq right now is for a rate change early in the week...there is a lot of reporting out there that it has already happened but I can tell you (from contacts on the ground over there) that it has not occurred yet…the frenzy is whipping up for certain but, it has not gone yet. No one knows the exact date
…they cloud things on purpose. But things look great and there is a “potential” for it to happen soon…
I heard he [Sudani] would be back in Iraq late this evening or early tomorrow. That is from my sources…Still waiting for confirmation. A lot of people in Iraq believe that is when we will see the rate change. It sounds plausible to me and I am very hopeful that is the case.
I saw some very impressive math in the early 2010’s. Maybe 2012 from an exceptional Iraqi source. They were pointing to a rate between $12.70 ish-$14.70 ish for the dinar based on the math for that day and time…a lot has changed since then...With values and inflation…so I could defiantly see that now.
But I am preparing myself for lower…but hoping for higher. Since Vietnam and Iraq are trading partners...I feel if Iraq rate is high…then the Vietnam rate will also be high.
Issuing {Treasury Bonds} In Dollars To Finance The {Development Road}
Iraq 09/24/2023 Baghdad: Hoda Al-Azzawi A number of specialists in the financial and economic fields put forward the idea that Iraqi capital from inside and outside would contribute to building the giant “development road” project, by issuing treasury bonds in dollars, such as if the value of one bond was one hundred dollars or one thousand dollars.
Purchasing these bonds in Iraqi dinars, provided that they are calculated at the official dollar rate (1320 dinars per dollar), and at a remunerative interest rate such as 5 percent, while allowing external capital to purchase these bonds in Iraqi dinars.
Rapporteur of the Parliamentary Finance Committee for the fourth session, Dr. Ahmed Al-Saffar, stated in an interview with “Al-Sabah”: “Issuing treasury bonds in dollars to finance (the development road) is a good proposal and has positive effects on the movement of the existing monetary mass, by withdrawing the hoarded funds outside the banks that...
It is estimated at about 75 percent of the total monetary mass, and it is hoarded by citizens because they do not trust the banking sector, so issuing these bonds will lead to withdrawing that money and introducing a stream of cash circulation.”
He pointed out that “the base for participation in financing the project will expand and the burden on the government will be reduced in terms of funds allocated for this large project.
This will have an impact - albeit indirect - on the exchange rate of the dollar in the market, and thus the amount of demand for the dollar will decrease and the use of the Iraqi dinar will increase.
” The purchase process, and the participation of external capital is beneficial, provided that it is purely Iraqi money and not the result of a foreign partnership.”
Al-Saffar explained, “If the government is able to implement this project; “It will have an economic impact in all agricultural, industrial, commercial and even tourism sectors.”
For his part, the expert in economic affairs, Dr. Nabil Jaafar Al-Marsoumi, indicated in an interview with “Al-Sabah” that “the (Development Road) project needs very large investments. The first five-year phase needs 17 billion dollars, and therefore we need 3 One and a half billion annually to finance the project.”
He pointed out that “there are difficulties in attracting foreign investments to implement the (development road) due to the challenges that it will face, including logistical and security ones. Therefore, the financing of the first phase must be Iraqi, and when we put the basic foundations in the first phase and through it we can build or pass loads estimated at 3. 5 million containers annually, after which foreign investment can be introduced.”
Al-Marsoumi explained that “internal financing for the project is done in two ways: Either by providing funds through the general budget, which is very difficult, especially since the estimated three-year deficit is 63 trillion dinars annually, or by issuing treasury bonds, which is one of the proposals that must be looked at seriously, especially since it contributes to withdrawing part of the bloc. Cash and reduces the total demand for the dollar, we need new Iraqi financing for (the development path).”
The Dollar Crisis May Break The Framework's Back, And The Coalition Has Stopped Criticizing Washington
Posted On09-24-2023 By Sotaliraq Baghdad/ Tamim Al-Hassan October is approaching, the fourth anniversary of the largest protests in the country after 2003, at a time when the coordinating framework that runs the government is facing the nightmare of the dollar exchange rate.[
Instead of the value of the dinar increasing as expected, the currency began to decline, before and after the return of Prime Minister Muhammad al-Sudani from the New York meetings.
The same expectations were made at the time of approving the budget and after its implementation, but the crisis has not ended and the “framework” no longer burdens Washington with the problem as it did in the past.
One dollar has sometimes approached 1,600 dinars or more, since Iraq decided to adhere to American conditions and transfer money through a global platform monitored by Washington.
This commitment has limited impact on the money smuggling trade, most of which is believed to go to Iran, which faces Western sanctions.
Behind the scenes, informed sources inform Al-Mada that parties in the coordination framework have stopped linking the dollar crisis to the United States.
These sources say that there is a fear of expanding sanctions on “banks that are affiliated with Shiite parties, as happened previously.”
14 banks were punished in July and the value of the dinar recorded a historic deterioration, before the Central Bank and Washington announced that the matter had been settled.
At that time, leaks indicated that the banks that were punished were affiliated with political figures and parties, and that the sanctions may not stop.
Fears of “new sanctions” were renewed with a visit by Elizabeth Rosenberg, Assistant Secretary of the US Treasury, to Baghdad before the Sudanese traveled to attend UN meetings.
Experts in the economic field considered that Rosenberg's visit was not to help the Central Bank - as stated in the official story - but rather to threaten new sanctions if smuggling continues.
Before that, Qais Khazali, the leader of Asaib Ahl al-Haq and one of the most prominent leaders of the “Frameworks,” described Washington’s imposition of conditions on the transfer of the dollar in Iraq as an “economic war.”
The Shiite coalition held its breath when the Prime Minister left for New York (the visit ended yesterday), and the dollar issue was at the top of the files.
Instead of expectations of a rise in the dinar, the currency collapsed again after the Sudanese met with US Treasury officials on the sidelines of the United Nations meetings.
Nabil Al-Marsoumi, professor of economics at Al-Maqal University in Basra, believes that the continued decline in the value of the dinar means the failure of negotiations to replace the dollar with other currencies in dealings with Tehran.
Al-Marsoumi says that the United States appears to have refused to use “the euro, the Chinese yuan, and the UAE dirham” in exchanges between Iraq and Iran.
The economics professor believes that Washington may have considered this measure a violation of US sanctions on Iran.Before going to New York, Al-Sudani announced new steps in the issue of the dollar exchange rate crisis, and said that these steps would “break down” the parallel market.
The Prime Minister confirmed that “the Iranian side informed the government in the last meeting to stop dealing in the dollar, and to replace it with the euro, the yuan, the dirham, the Iraqi dinar, or the Iranian toman.”
Al-Sudani also said that the new mechanism with Iran “will break the back of the parallel market.”
Yesterday, Al-Sudani's office announced that the latter had concluded his visit to the United States, while he did not meet President Joe Biden as expected.
Leaks indicate that the visit may have been postponed to another time, expected to be at the end of this year, for reasons that may be related to Washington not being convinced of the government’s steps regarding the issue of the relationship with Tehran and the “dollar.”
The results of the visit seem uncomfortable for the coordination framework, despite government assurances, as the former fears a wave of protests over the issue of the dollar price as the anniversary of the October demonstrations approaches.
According to what the sources said, it was expected that Baghdad would receive “clearer signals on the issue of Iran, the dollar, and energy during the officials’ meetings in New York.”
Contrary to expectations, attempts in Parliament were made to demand the dismissal of the Governor of the Central Bank, Ali Al-Alaq, against the backdrop of the dollar crisis.
Muhammad Nouri, a member of the Finance Committee in Parliament, previously criticized Al-Alaq as not having any clear strategic solutions “to get out of the crisis.”
In a conference inside the House of Representatives, Representatives Hadi Al-Salami and Ahmed Majeed demanded the dismissal of the Central Bank Governor due to his inability to control “the rise in the dollar exchange rate.”
Al-Salami said that Al-Alaq did not take measures “against the banks that were subject to US sanctions,” and refrains from announcing the daily sales bulletin.
As for Representative Majeed, he confirmed that there is forgery in the receipts that are submitted to the Central Bank through the currency selling window to buy dollars to import goods, and it is in fact “a currency smuggling operation.”
He added that these banks - which buy the dollar - “are the economic arms of political parties.” LINK