Thursday, September 28, 2023
"RV UPDATE" BY ANGEL1, 28 SEPT
Angel1
Thursday I'm guaranteeing you the auctions change. That's the CBI announcement. That's the 28th...that's their banking Friday. That means they automatically go into offline... I wouldn't go crazy looking for something on Thursday but let me tell you, official implementation date is Thursday per the CBI. Whether we see it Friday, Saturday I cannot promise you that...I'll also tell you this, this is very damn close...
Dollar’s Rising Value: A New Economic Dynamic in Iraq, 28 SEPT
Dollar’s Rising Value: A New Economic Dynamic in Iraq, 28 SEPT
The US dollar has experienced a significant upswing in the Al-Kifah and Al-Harithiya stock exchanges, with the exchange rate reaching a peak of 156,200 Iraqi dinars for every 100 dollars. This is a stark contrast to the previous day’s rate, which was 154,600 dinars for every 100 dollars. The value surge was also mirrored in local markets across the capital, Baghdad, where exchange shops raised their selling prices. The current selling rate is 157,250 Iraqi dinars for every 100 dollars, while the purchasing price is 155,250 dinars.
Value Surge: Not Just in Baghdad
Beyond Baghdad, Erbil, the capital of the Kurdistan Region, also saw a rise in the value of the dollar. The selling price in Erbil shops was recorded at 155,300 dinars per dollar, while the purchase price was 155,200 dinars for every 100 dollars. This suggests that the shift in the dollar’s value is a nationwide trend within Iraq.
The sudden increase in the value of the dollar in relation to the Iraqi dinar, as reflected in stock exchange rates and local markets throughout the country, is a noteworthy economic event. This shift affects the cost of transactions and could potentially impact the overall economy. The rise in the dollar’s value observed in Baghdad and Erbil points to a widespread increase, which is significant considering the economic challenges that Iraq has faced in recent years.
Central Bank’s Plan to Strengthen Iraqi Dinar
It’s important to note that the Central Bank of Iraq has a new plan to bolster the value of the Iraqi dinar against the US dollar. The measures include reducing the US dollar to Iraqi dinar exchange rate for travel or internet purchases from 1,470 dinars to 1,465 and helping private banks strengthen their foreign currency reserves that are not the US dollar. The Central Bank specifically named the Chinese yuan, the euro, the Emirati dirham, and the Jordanian dinar. There’s also a provision for selling foreign currencies in government banks for the purpose of travel, for the Hajj pilgrimage, medical treatment, and study.
Devaluing a currency has significant downsides as it can lead to a liquidity crisis, as seen in Argentina. But for Iraqis who are paid in dollars, the devaluation potentially gives them more purchasing power. However, people paid in dinars may lose purchasing power since imports and exports are paid for in dollars. A devaluation also means imported goods become more expensive in the local currency. Given the economic hardships Iraq has experienced, these are critical factors to consider.
As the value of the dollar continues to rise against the Iraqi dinar, the impact on the economy and the lives of ordinary Iraqis will become more apparent. While there are potential benefits for those paid in dollars, the overall implications of this shift are complex and far-reaching. As Iraq navigates these economic changes, the Central Bank’s strategies to strengthen the dinar and mitigate the impacts of currency devaluation will be critical.
https://bnn.network/finance-nav/currencies/dollars-rising-value-a-new-economic-dynamic-in-iraq/
Advisor to the Prime Minister: Speeding up the approval of the oil and gas law will establish two important things, 28 SEPT
Advisor to the Prime Minister: Speeding up the approval of the oil and gas law will establish two important things
The financial adviser to the Prime Minister, Mazhar Mohammed Saleh, stressed the importance of speeding up the approval of the draft oil and gas law.
Saleh said in a press statement that "accelerating the approval of the federal oil and gas project law in the House of Representatives as soon as possible will establish a stable national roadmap for investment and production of the country's main sovereign resource, which is oil and gas."
He explained that "this natural resource contributes to Iraq's GDP by a direct rate of nearly 50 percent, and leaves an indirect impact on the total economic activity of our country by at least 85 percent."
"The adoption of a unified national oil policy, and the achievement of investment and optimal production on Iraq's oil area, starting from the southern fields up to the fields of the north and the region, is an important and strategic matter in the matter of benefiting from the opportunity costs in the optimal and homogeneous operation of the Iraqi oil policy currently," Saleh said.
Not to mention "achieving the best financial returns for the country, which we all look forward to to finance the building of the Iraqi economy and the basics of sustainable development," according to Saleh.
Iraq's draft oil and gas law, which is available to parliament, stipulates that responsibility for managing the country's oil fields should be vested in a national oil company and supervised by a specialized federal council.
For its part, the Kurdistan Petroleum Law states that the Iraqi government "has the right to participate in the management of the fields discovered before 2005, but the fields discovered after it belong to the regional government."
The committee, which was formed between Baghdad and Kurdistan to draft an oil and gas law, includes "the minister of oil, the minister of natural resources in the region, the director general of SOMO and the advanced staff in the Ministry of Oil, as well as oil-producing provinces such as Basra, Dhi Qar, Maysan and Kirkuk."
Prime Minister Mohammed Shia al-Sudani said in early August that "the draft oil and gas law is one of the basic and important laws, representing a factor of strength and unity for Iraq, and it has been stuck for years, at a time when the country today is in dire need of its legislation and benefit from this natural wealth, in all fields and sectors, as well as the contribution of the legislation of the law in solving many outstanding problems."
"There are provinces that have not invested their wealth until today, which is a negative matter for development efforts in all its tracks," he said.
The oil dispute has been a major source of tension between Baghdad and Erbil for years, reaching the judiciary last year, as Erbil believed that the central government was seeking to seize the region's wealth.
In February 2022, the Federal Court in Baghdad ordered the region to deliver oil produced on its territory to Baghdad, and canceled contracts signed by the region with foreign companies.
It went so far as to invalidate the judiciary in Baghdad for contracts with numerous foreign companies, particularly American and Canadian.
After years of exporting oil individually through Turkey, the Kurdistan region, as of late March 2023, had an international arbitration tribunal decision that gave Baghdad the right to fully manage Kurdistan's oil.
Exports from the Territory subsequently ceased.
\An interim agreement signed between Baghdad and Erbil in early April stipulates that Kurdistan oil sales will be made through the Iraqi Oil Marketing Company "SOMO", while revenues from the region's fields will be deposited in a bank account with the Central Bank of Iraq or one of the banks approved by the Central Bank of Iraq.
State contracts in dinars and the National Day holiday…the most prominent decisions of the Iraqi government, 28 SEPT
State contracts in dinars and the National Day holiday…the most prominent decisions of the Iraqi government
Unraveling The Dynamics of US Dollar and Iraqi Dinar Exchange Rates, 28 sept
Unraveling The Dynamics of US Dollar and Iraqi Dinar Exchange Rates, 28 sept
The US dollar exchange rates against the Iraqi dinar observed contrasting trends on a recent Tuesday. In Baghdad, the dollar’s exchange rate saw a slight surge at the opening of the Al-Kifah and Al-Harithiya stock exchanges. The rate climbed to 154,600 dinars for every 100 dollars, experiencing a minor increment from the previous day’s rate of 154,400 dinars. On the contrary, in Baghdad’s local markets, the exchange rates remained relatively constant, with a selling price of 155,500 dinars and a purchasing price of 153,500 dinars for every 100 dollars.
A Different Story in Erbil
Meanwhile, in Erbil, the capital city of the Kurdistan Region, the value of the dollar witnessed a decrease. The selling price was 154,100 dinars, with the purchase price set at 154,000 dinars for every 100 dollars in banking shops. These figures clearly depict a divergence in the dollar exchange rates against the Iraqi dinar in various regions of Iraq, underlining the complexity and fluidity of the currency exchange market.
The contrasting trends of the dollar’s value in Baghdad and Erbil underscore the significance of regional economic factors and market conditions in influencing exchange rates. The stability of the exchange rate in local markets in Baghdad may suggest a degree of market confidence. Simultaneously, the decrease in Erbil could indicate local market conditions and economic factors.
A Glimpse into the Dynamics of Currency Markets
Overall, these trends offer insights into the dynamic and regionally influenced nature of currency markets. The US dollar saw an increase in its exchange rate against the Iraqi dinar in Baghdad, while it experienced a decrease in Erbil. The currency market’s nature, influenced by several regional and global factors, ensures that exchange rates remain in a state of flux.
Investing in the Iraqi dinar is similar to investing in any other foreign currency. An investor purchases a certain amount of Iraqi dinar by paying the equivalent amount of U.S. dollars. As with any investment, the main aim is to buy at a price that will eventually rise. The central question, however, is not just whether you can invest in this particular currency, but whether you should. While Iraqi dinars could be useful for those living in or near Iraq, many reasons suggest caution for investors considering this currency.
Following the 1991 Persian Gulf War, Iraq’s economy suffered due to United Nations sanctions and official corruption. As the government of Saddam Hussein struggled to contain inflation and speculation, the Iraqi dinar fell from its prewar value of 3 to less than a penny in 1993. However, with the support of several global powers, hopes were raised that the Iraqi economy would soon recover, especially after the country’s economic isolation throughout the 1990s.
Challenges Faced by the Iraqi Dinar
Despite the optimism, Iraq’s currency faces numerous challenges and much uncertainty in both the short and long runs. Major banks and brokers do not offer trading of the IQD/USD pair, and transactions are placed through money exchanges, which often charge hefty fees. Moreover, the value of the Iraqi dinar is set by the Iraqi government, which means that the government decrees the price for the sale and purchase of the currency.
With Iraq housing 11.7% of the world’s oil reserve, it has the potential to recover and establish itself as a stable economy. However, this would require a peaceful, promising business atmosphere to instill investor confidence and revive its economy. Therefore, while the future of the Iraqi dinar may seem promising, investors should approach with caution, understanding the unique challenges and uncertainties that this currency faces.
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