The Central Bank allows Iraqi banks to import foreign currency and requires them to meet 5 conditions (document)
11/8/2023
The Central Bank of Iraq decided, on Wednesday, to allow Iraqi banks to import foreign exchange according to 5 conditions.
It was stated in a letter sent by the Central Bank of Iraq to the licensed banks and obtained by Shafaq News Agency, “Based on the requests received to the bank, and in order to provide the required flexibility to banks operating in Iraq, it was decided to allow you to import foreign currency from outside Iraq while adhering to the following: -
1- The amounts will be used for the purposes of meeting Ziyankum’s requests from duly registered companies, organizations and bodies, and individuals working for foreign companies or institutions who receive incoming remittances from outside Iraq.
2- Submit a request to the Central Bank of Iraq (Banking Control Department) that includes the quantity required to be entered along with the details of the shipment.
3- Payments must be entered exclusively through air ports.
4- Your commitment to register the serial numbers of these shipments and provide the Banking Control Department with them and the data of their recipients later.
5- Providing the Central Bank with the name of the foreign shipping company along with a copy of the license granted to it in its country.
The Central Bank of Iraq confirmed its continued provision of foreign currency to meet customer requirements and in accordance with instructions and controls in this regard. LINK
“The central bank of Iraq have decided to resume the sale of gold bars and coins starting from Wednesday Nov. 8th”. ...they will be selling to private banks and the government. This is big imo…and shows more de-dollarization. And shows a similar pattern to Zimbabwe…going back to gold to support the value of their currencies.
Question: Mark do you think the RV is waiting until January? MarkZ: I don’t think so. So much is happening now…and all at once...Most of my sources believe things are moving at a wonderful pace this week.
Not a lot of RV news but, the overwhelming consensus is that they did their best to pull the trigger over Friday and Saturday. Their backup plan was Monday night or Tuesday....They feel very confident they will get this thing wrapped in the near future. There is a whole heck of a lot of expectations for the next 2 days
Seems that things appear to be heating up…so many rumors.
Iraq’s Economic Landscape: A Dance with Oil, Gold, and Geopolitics
Oil prices have plunged to a three-month low, signaling turbulence in the commodities market. Coupled with this, the Central Bank of Iraq, after a six-month hiatus, has reignited its gold selling operations through an electronic platform dedicated to banks. The maneuvering in the precious metal market is noteworthy, with the price per ounce of gold surging to $1.9.
Fluctuating Markets: Oil and Gold
The economic landscape in Iraq is characterized by the volatility of oil and gold prices. The slump in oil prices coupled with the surge in gold prices underlines the instability in the commodities market. The reinstatement of gold selling by the Central Bank of Iraq suggests attempts to bolster the economy in the face of uncertainty. The escalation in gold prices in the wholesale and jewelry markets mirrors an increased demand, possibly serving as a safe-haven investment amid economic turmoil.
Economic Challenges: The Iraqi Dinar and Dollar Exchange
The volatility of the Iraqi dinar against the dollar, emphasized by the variable exchange rates, illuminates the economic hurdles facing Iraq. The uptick in dollar exchange rates may signal potential economic instability, influencing imports, exports, and overall purchasing power.
Geopolitical Tensions: Iraq and the United States
In the political sphere, the remarks from President Barzani concerning the bombardment of foreign troops in Iraq and the dialogues between Iraq and the United States on legal issues exhibit geopolitical strains that could sway economic policies. Moreover, the emphasis on enacting the oil and gas law and addressing revenue issues underlines the pivotal role of the energy sector in Iraq’s economic stability and the role of international players in shaping Iraq’s economic agenda.
Fighting Corruption: Technological Advancements
The focus on curbing money laundering and corruption through technological advancements accentuates Iraq’s endeavors to enhance governance and transparency – vital for nurturing an appealing investment environment and promoting economic growth.
On the whole, the economic and political developments in Iraq are entwined with the fluctuations in oil and gold markets, volatility in currency exchange rates, and initiatives to fight corruption and improve governance. Iraq’s economic stability is substantially influenced by international relations and the performance of key commodities on the global stage.
U.S. Dollar Takes a Dip in Baghdad and Erbil Markets
In the heart of Baghdad and Erbil, the exchange rate of the US dollar versus the Iraqi dinar has taken a downward turn, stirring significant interest. The lower selling and purchasing prices are seen as the offspring of market fluctuations and a series of economic factors. The scene is painted complex by global political events, Iran’s potentially growing influence in Iraq, and administrative and financial corruption within Iraq’s system.
The Dinar’s Volatility Amidst Political Tensions
The Iraqi dinar has been sailing on rough seas, facing repeated bouts of volatility. Experts are divided over predictions, some foreseeing stabilization amidst political tensions, while others remain skeptical. Economic expert Khaled Haider points towards the global political climate, particularly the crisis in Gaza and allegations against Iran of backing the Hamas movement, as key influencers on the Iraqi economy. He also highlights the deterioration caused by administrative and financial corruption to the exchange rate disparity, necessitating hefty dollar injections into the currency auction by the Central Bank of Iraq.
Consequences for Iraqi Citizens
The vacillation in the exchange rate proves consequential for Iraqi citizens, especially in a country so heavily dependent on imports. The growing chasm between the official exchange rate and the black market rate directly impacts the prices of consumer goods, straining Iraqi households financially. Furthermore, the exchange rate disparities have raised inflation concerns and foreign exchange market instability, reinforcing the need for measures to stabilize the exchange rate and cushion its economic impact.
Addressing Economic Challenges
Rooted in its history, the economic challenges for Iraq are vast, including the aftermath of the 2003 U.S.-led invasion, which led to economic contraction and significant social and political turbulence. Despite efforts to invest in reconstruction and development, the economy remains fragile and heavily oil-reliant. The Central Bank of Iraq has been at the forefront in tackling these challenges, initiating steps to stabilize the foreign exchange market and foster inclusive economic progress. However, the economic landscape remains intricate, with concerns surrounding global events like OPEC’s decision to force Iraq to cut its oil production, and the country’s susceptibility to considerable carbon transition risks due to its hydrocarbon sector dependence.
The Road to Economic Recovery
The exchange rate between the Iraqi dinar and the U.S. dollar continues to be a focal point amidst these economic challenges. The Central Bank of Iraq’s efforts in stabilizing the exchange rate are instrumental in mitigating the impact of fluctuations on the economy and fostering economic development. However, the road to economic recovery is long and winding, necessitating sustained efforts to tackle structural imbalances and promote stability. In the grand scheme, the exchange rate dynamics between the Iraqi dinar and the U.S. dollar mirror the intricate interplay between global events, economic policies, and the structural challenges Iraq faces. As the country steers through these complexities, the exchange rate serves as the economic landscape’s barometer, indicating the need for concerted efforts for stability, diversification, and inclusive growth.
FIREFLY: Oil and Gas law by the 9th...or have to wait...Without the Oil and Gas no rate until 2024.
FRANK: You say, without the HCL you will not have an exchange rate until January 1st? I can agree with you to a certain point...IMO Between now and January 1 you will see what you want...They already gave you a clue - The dollar will stop on January 1st...
FIREFLY: The television says the parliament session will end on the 9th of this month and parliament is telling us that there are no more scheduled sessions this year nor are there any emergency sessions. That means the HCL law didn't make it again.
They've been telling us it was going to come. That they were going to vote on it on this session. They're saying no more sessions until next year. It's a little disappointing...
FRANK: I don't care what parliament says and neither should you...Sudani and Barzani have your HCL. All that is needed is for the new exchange rate to come out in order to activate it... Sudani can call a session on his own.
This year IMO is a fact...that's 57 days until the year is over with. In that 57 days we believe we will see our blessing.
