Robust US Dollar Edges Up Against Iraqi Dinar: A Comprehensive Overview, 7 OCT

 Robust US Dollar Edges Up Against Iraqi Dinar: A Comprehensive Overview, 7 OCT

The U.S. dollar exchange rate against the Iraqi dinar marked a rise in the markets of Baghdad and Erbil. The USD recorded a closure rate of 158,800 IQD to 100 in al-Kifah and al-Harithiya Central Exchanges, which is 1,300 IQD higher than the opening rate. In the parallel markets of Baghdad, the selling and buying rates of the USD settled at 160,000 and 158,000 IQD to 100, respectively. Meanwhile, in Erbil, the selling and buying rates were recorded at 158,900 and 158,500 IQD to 100, respectively.

Exchange Rates in a Broader Perspective

According to the latest exchange rate data from Xe, the live exchange rate for the U.S. dollar to Iraqi dinar is 1 USD = 1304.2227 IQD. The rate is updated minutely, and the exchange is available between Sunday 22:00 and Friday 22:00 (UK time). The historical charts and data reveal that the USD to IQD rate has remained relatively stable over the past week, with a slight increase in value. The current rate is higher compared to the previous day’s rate. Conversely, the exchange rate for the Iraqi dinar to the U.S. dollar is 1 IQD = 0.0008 USD. The rate remains relatively stable, with the current rate being the same as the previous day’s rate.

Understanding the Historical Context

The Iraqi dinar has experienced fluctuations in value against the U.S. dollar over time. However, over the past 12 months, the dinar has seen a rise in value, increasing by 11.42%. Looking ahead, analysts and projections from Trading Economics forecast that the Iraqi dinar will be priced at 0.000744726 USD by the end of this quarter and 0.000689305 USD in one year.

The Broader Implications of Exchange Rates

Overall, the exchange rate between the U.S. dollar and the Iraqi dinar has been relatively stable in recent days, with slight fluctuations in value. The current rate favors the U.S. dollar, with 1 USD being equivalent to 1304.2227 IQD. However, it’s essential to note that exchange rates can be influenced by various economic and geopolitical factors, and they may change over time. Such fluctuations can have far-reaching impacts on global trade, investments, and the economic stability of countries involved.

https://bnn.network/finance-nav/currencies/robust-us-dollar-edges-up-against-iraqi-dinar-a-comprehensive-overview/

International Introduction of the Iraqi Dinar | Is It Finally on the Hor...

"RV UPDATE" BY MARKZ, 7 OCT

 MarkZ  

…no update yet...from redemption center folks...as to whether they expect to work this weekend. I have been hitting a brick wall…their phones seem to be turned off…. I don’t know if that is a great thing or a coincidence. Yesterday a number of them told me they are on “stand by” specifically for currency exchanges. I think this is huge.   Let’s see if something comes of it.

More chatter on the Iraqi side of things with great expectations for the weekend. Most are looking Late Saturday/early Sunday for something from Iraq. Some type of announcement?

 A lot of my sources feel that Monday is our day…A lot of them …actually...think our day is before that and Monday is when we start going to the bank! 

 They are all expecting big things this weekend. I am hesitant to say if it’s a “go” or “not a go” just yet.   But I am excited about the potential. There is nothing negative at all.

...From the banking side (I got this from a couple different sources) So from bankers in different states…They were told they are officially on “STAND BY”...

 We have not seen that in a very, very long time…and  I have never gotten it from multiple states in different areas that are un-related…AND, these are from different top-tier banks.  So this is something going out from multiple banks…in multiple states. 

  “Iraq asked for $1 Billion in cash and this time Washington said no”  This is from the WSJ. Iraq is between a rock and a hard spot for foreign currency…. 

They are not yet fully internationally recognized. There are still some sanctions and controls there. Going fully international with a rate change would fix their woes. Iraq has everything at stake for this revaluation.

 Question:  Any news on Iraq and the WTO?  MarkZ:   When I find out – I will tell you. I think this is a big “tell” they are trying to keep from us. If they let this news out before they are ready for us…it would be a mad dash for everyone to buy Iraqi dinar…It would be a clear signal of a changing rate…so my guess is they have already been accepted and are waiting to announce the value…that is my best guess.

 We are hearing some conflicting opinions that we need the house of representatives to be back with a new speaker of the house  to remove the remaining sanctions on Iraq. It is my understanding the bill is already at the senate and it could happen at any time.

Iraqi Residents Protest Surge in Dollar Exchange Rate Amidst Banking Concerns, 7 OCT

 Iraqi Residents Protest Surge in Dollar Exchange Rate Amidst Banking Concerns, 7 OCT

Residents of Erbil in Iraq have been gathering outside banking establishments, voicing their concerns over a sharp increase in the exchange rate of the US dollar. In an unprecedented surge, the exchange rate reached 158,750 dinars for 100 dollars in the selling market. However, the buying rate remained stable at 156,000 dinars.

Roots of the Issue

This surge in the exchange rate is attributed to the US blacklisting 14 Iraqi banks on suspicions of money laundering and funneling funds to Iran. The ban, imposed by the US Treasury Department and the Federal Reserve Bank of New York, has led to serious concerns about the Central Bank potentially reducing the cash sale of the dollar through currency auctions in Baghdad.

The Protesters and Their Demands

The protests have been organized by a group called Thuwar Tishreen (October Revolutionaries), which is connected to a movement that started mass protests in Iraq in 2019. Their demand is simple – the government must take action to halt inflation. The central bank chief, Ali al-Allaq, has stated that the rise in the street price of the dollar is due to the reluctance of certain merchants to use the official electronic platform for currency requests.

A Historical Perspective and Future Ramifications

This is not the first time the dinar has experienced a dive in value. Measures taken by the US in late 2022 to combat money laundering and the channeling of dollars to Iran and Syria severely restricted Iraq’s access to hard currency. The Iraqi Prime Minister, Mohammed Shia al Sudani, has met with al-Allaq to discuss measures to stabilize the dinar price against the dollar. If the current crisis isn’t deftly managed, experts fear it may bring about an economic downturn, further impacting the common citizens of Iraq. The ripple effects may be felt across the region, influencing economic and political dynamics.

https://bnn.network/finance-nav/currencies/iraqi-residents-protest-surge-in-dollar-exchange-rate-amidst-banking-concerns/

Iraq’s Central Bank Assures Continuity of Dollar Shipments Amid Economic Strains, 7 OCT

 Iraq’s Central Bank Assures Continuity of Dollar Shipments Amid Economic Strains

In the face of mounting speculations, the Central Bank of Iraq has confirmed the uninterrupted flow of scheduled dollar shipments from the US Federal Bank. This announcement comes as an attempt to dispel rumours regarding any halt or reduction in the dollar shipments to the country. The bank emphasized the importance of obtaining information from approved sources to maintain the integrity of financial news and foster public trust.

Iraq’s Fiscal Challenges: Rising Dollar Demand & Falling Dinar

The Iraqi dinar has recently experienced a significant drop, with its value falling to around 1,750 dinar per dollar on the street, as opposed to the official rate of 1,460 dinar per dollar. This devaluation has sparked public anger and protests across the nation. The decline in the dinar’s value is largely attributed to restrictions imposed by the United States on Iraq’s access to dollars. This move, designed to combat money laundering that benefits Iran and Syria, has inadvertently caused shortages in Iraqi banks and exchange houses, thus spiking the demand for dollars on the black market.

The US has been increasingly wary of the flow of dollars through Iraq’s foreign currency auction, which has allegedly been exploited for illicit activities and to channel funds to sanctioned countries. Despite the Central Bank of Iraq’s efforts to rectify the situation and improve access to currency, the devaluation of the dinar continues, and the government faces mounting pressure to stabilize the currency and address the country’s economic challenges.

Iraq’s Rejected Request: US Cites Security Concerns

The Central Bank’s announcement follows the US Federal Reserve Bank’s rejection of Iraq’s request for a billion-dollar cash withdrawal. The refusal was motivated by concerns about unauthorized cash flows to Iran and the potential involvement of militias and corrupt politicians. Given the tense geopolitical climate and the existing financial sanctions on Iran, this decision underscores the US’s resolve to mitigate risks associated with illicit fund transfers.

Looking Ahead: Economic Stability Amid Geopolitical Tensions

The Central Bank of Iraq’s statement provides a glimmer of hope to an economy grappling with fiscal challenges. While it assures the continuity of dollar shipments, the underlying issues contributing to the devaluation of the dinar and the heightened demand for dollars persist. As the Iraqi government strives to stabilize the currency and bolster its economy, it must also address the larger geopolitical challenges that indirectly affect its financial stability.

https://bnn.network/finance-nav/iraqs-central-bank-assures-continuity-of-dollar-shipments-amid-economic-strains/

"RV UPDATE" BY MNT GOAT & BRUCE, 7 OCT

 Mnt Goat 

  I asked [my CBI contact in Iraq] about the project to delete the zeros and was told it is coming and is now an active project no longer just a later project.

 I asked for some target dates and was given that they planned to redenominate sometime prior to the end of the year. To me this is so inline what we are thinking for a January 2024 reinstatement timeframe and other events also lining up.

Bruce   

[via WiserNow]  They are trading the rates up. Iraq did what they needed to do. They're all good to go. They've already been sending out hydrocarbon law funds on the on the profit sharing, if you will of the oil and gas in Iraq...

maybe we get notified Saturday, maybe it's Monday afternoon, but either way we go we're definitely moving forward this final result for us...

 I don't really talk specifically on rates...But...we've got very strong rates on dinar and Dong well into double digits.

Iraq’s Central Bank Urged to Cease Dollar Sales and Rely on Black Market for Stability, 7 OCT

 Iraq’s Central Bank Urged to Cease Dollar Sales and Rely on Black Market for Stability, 7 OCT

An economic expert in Iraq has urged the Central Bank of Iraq (CBI) to adopt a radical new approach to achieve market stability. The expert recommends that the CBI cease selling dollars in exchange for the national currency, instead suggesting that the bank should leave it to the black market to stabilize the currency. This controversial proposal has sparked significant debate in economic circles.

Counteracting Currency Smuggling

The expert’s recommendation hinges on the belief that currency smuggling is a direct result of the central bank’s current practices. He argues that the dollars injected by the CBI into the market do not benefit Iraqi citizens, leading to the smuggling of currency. By leaving the issue to the black market, the theory is that the exchange rate may stabilize naturally without the need for government intervention. While this approach is unorthodox, it reflects the dire economic conditions in Iraq and the need for innovative solutions.

A Coordinated Effort

The expert indicates that the decision to halt the injection of dollars into the market from the beginning of next year is a coordinated effort with the International Monetary Fund (IMF) and the US Treasury. This action is intended to prevent the US dollar from reaching Iran and Turkey, thereby curbing the influence of these countries in the region. The central bank and other banks will be expected to exchange foreign currencies at the government-set rate to maintain some level of control over the exchange rate.

The Future of Iraq’s Economy

The exchange rate of the US dollar against the Iraqi dinar closed at 158,500 dinars in the Sulaymaniyah stock exchange, a rate that is reflective of Iraq’s struggling economy. If the CBI does adopt the black market approach, it will be a significant shift in the country’s economic policy. The response from the international community and the impact on Iraq’s economy are uncertain, but the proposal is indicative of a growing desire for drastic change to address the economic issues in the country.

https://bnn.network/finance-nav/inflation/iraqs-central-bank-urged-to-cease-dollar-sales-and-rely-on-black-market-for-stability/