Pressure paper.. Deputy identifies four factors that confused the dollar market
Pressure paper.. Deputy identifies four factors that confused the dollar marketInformation/private..
On Monday, Representative Muhammad Al-Baldawi identified 4 factors behind the continued turmoil in the dollar market in Iraq.
Al-Baldawi said in an interview with “Al-Ma’louma” that “the post-2003 accumulations, the security unrest, and the lack of clarity of a comprehensive vision for reviving the national economy led to the dollar becoming an influential standard in the economy, especially since all the oil sold goes to a bank account in America before it is sold.” He arrives in Baghdad.
He added, “The turmoil occurring in the parallel market and the rise in the dollar exchange rate in recent weeks are clearly behind 4 important factors, most notably the US Federal Reserve’s delay in sending dollar shipments to the central bank and its repeated threats to impose sanctions on it within the framework of an American pressure policy that wants to directly strangle the national economy.” “.
He pointed out that “the economy is a clearly defined American game that is trying, through the dollar, to raise prices and create instability in the markets,” pointing out “the importance of reconsidering the diversification of the basket of currencies and seeking to end the file of dollarization in the markets by adopting the dinar to pay internal dues to reduce… Demand on the parallel market.
The dollar selling market is witnessing a state of instability in light of the continuous rise and fall, which has created a worry in the Iraqi markets.
FIREFLY: The United States is meeting all day with Iraq on ways to help with the dollar crisis and now JP Morgan has stepped in too. They say JP will...help five Iraqi banks and this is a firm standpoint that will help start an end to the black market issue. We believe it would be the start of also of the float...
FRANK: ...They are preparing you to make an announcement on your new category notes. JP Morgan has always said this dinar investment is a scam and now they are 100% behind the dinar monetary reform huh? Why? Because they are about to explode the currency internationally with the CBI.
Right now the monetary reform plan is telling you we're going to be part of the WTO. Now, we don't have to have a rise in our currency but we have to have restriction free currency so that our currency can be internationally accepted. Therefore our currency can now float internationally in an international basket...
Question: "Will there be a short time frame that the Iraqi citizens are informed of the rate change and able to benefit before the rest of the world finds out or do you feel we will all know when they know?"
We'll all know at the same time...But a dinar is a dinar inside of Iraq. It will not be affected by the external exchange rate as it grows it stays at whatever exchange rate they release it at internally. Will citizens become rich?No, I wouldn't say they're going to be rich but they're going to have a lot more purchasing power...
What Is The Role Of Private Banks In The Recovery Of The Parallel Market For The Dollar?
Politics/Economy |Yesterday, 21:37 | Baghdad Today – Baghdad Member of the Parliamentary Finance Committee, Representative Mudar Al-Karawi, confirmed today, Monday (November 13, 2023), that the
role of banks must be reflected in financing development projects and providing liquidity and lending to citizens and projects, but the role of private banks in Iraq is limited to currency trade.
Al-Karawi said in an interview with “Baghdad Today” that “recent years have witnessed the opening of dozens of private banks in Baghdad and the rest of the Iraqi governorates in a major revival of the banking sector, which is the largest of its kind since the founding of the Iraqi state more than 100 years ago.”
He added, “Despite our support for the establishment of banks, what is more important in our view is what they provide to the national economy,
especially since banks are concerned with many issues, most notably financing development projects and overcoming obstacles in providing lending liquidity to citizens, companies, and businessmen, and entering into economic partnerships that directly revive the investment file, but what we see is It is different in most cases, and the role of banks is directly defined in the currency trade file.”
He pointed out that "the presence of more private banks than government banks, or vice versa, does not constitute a factor affecting the exchange rate of the dollar or the parallel market,
if the latter is managed in a way that contributes to stopping its smuggling and speculation, ending the dollarization file, and returning the dinar for all internal financial transactions," pointing out that
"The file of private banks needs real reconsideration and evaluation in order to push them to open up towards financing investments and increasing the pace of financial lending.” He continued,
"It is unacceptable that some banks turn into more like banking offices and earn money through the currency auction, which needs an objective reconsideration."
The total number of banks in Iraq is 81 banks, of which the number of government banks is only 7, while the number of private banks is 74 banks, according to economic statistics.
On the other hand, the list of dollar sales in the Central Bank of Iraq shows that the number of banks participating in the currency auction, whether for cash sales or foreign transfers in general, ranges between 25 and 30 banks only.
Economic and political circles have accused specific banks of taking over the currency auction at the Central Bank, while
experts point out that this comes because of the so-called “correspondent banks” these banks own in other countries, which makes them capable of organizing foreign financial transfers compared to those banks that It does not have “correspondent banks”.
However, according to a recent agreement between the Central Bank of Iraq and the Federal Bank, the number of banks capable of conducting external financial transfers will be increased from 5 banks to 10 banks, and these new banks will be strengthened with advance shares of the dollar,
making them able to carry out external transfers by relying on the correspondent banks that they own in the country. Several countries.
ECONOMIST: THE DOLLAR EXCHANGE RATE WILL BE EQUAL TO THE GOVERNMENT PRICE EARLY NEXT YEAR
Academic and economic expert Khaled Haider expected, on Tuesday, that the exchange rate of the US dollar against the Iraqi dinar on the black market would stabilize in parallel with the government pricing, starting next year.
Haider said in a statement to Shafaq News Agency, “The global political situation is directly linked to the financial and economic situation of the region, and the recent events in Gaza and the accusations directed at Iran of supporting the Hamas movement, are all reasons that make us expect that the rise in the price of the dollar is to restrict Tehran because Iraq is an important economic region for the neighbor.” Eastern Province and most of the foreign currency goes there.”
He pointed out that “administrative and financial corruption in Iraq plays a major role in the exchange rate difference, especially those who benefit from this difference, which prompts the Central Bank of Iraq to pump large amounts of dollars into the currency auction, ranging from 200 to 250 million dollars daily to cover the market’s need for currency, in while the actual daily need ranges between $190 to $200 million, the bank is pumping more than that in an attempt to control the exchange rate.”
(The CBI told us in a prior articles the need range to support the economy was $150 – 180 million. So, I don’t think this article is very accurate.)
Haider stated, “Near-term expectations may be inaccurate, but it is expected, and according to a scientific economic reading, that the price of the dollar in the markets will approach the government pricing at the beginning of next year after the implementation of the Central Bank of Iraq’s decision to ban financial transactions in anything other than the Iraqi dinar, and this will make the Iraqi dinar more powerful in local markets.
(and also raise the rate. Can they then do the project to delete the zeros?)
Regarding the impact of the fluctuation of the dollar exchange rate on the citizen, the economic expert confirmed that this “reflected negatively on the citizen, as today the exchange rate of 100 dollars reached more than 164 Iraqi dinars, especially if we take into account that until the year 2020 the official exchange rate was 118 thousand dinars compared to 100 One dollar, while it currently ranges above 160 thousand dinars. Certainly, this disparity is reflected in the prices of consumer goods, since Iraq is a consuming country.”
Earlier today, Shafaq News Agency correspondent said that dollar prices fell with the closure of the main Al-Kifah and Al-Harithiya stock exchanges in Baghdad, recording 165,250 dinars against 100 dollars, while prices this morning were 166,000 dinars against 100 dollars.
What Is The Importance Of The Recent Iraqi-American Agreement In The UAE Regarding The Dollar?
Economy |12-11-2023, 20:01 | Baghdad today – Baghdad Today, Sunday (November 12, 2023), economic affairs researcher Nasser Al-Kanani revealed the importance of the Iraqi-American negotiations in the Emirates regarding the recent agreement on dollar transfer mechanisms.
Al-Kinani said to “Baghdad Today” that “the recent dialogues between the Central Bank of Iraq and the US Federal Reserve, in the UAE, are a very important step in order to find real solutions to the dollar crisis that Iraq has been going through for nearly a year, and for which no solutions have been found.” As the dollar exchange rate continues to rise.”
He added, "Enhancing the balances of some Iraqi banks in dollars directly by (JP Morgan Bank) is an important step that will alleviate the scarcity of dollars in banks and the market, which was the reason for the recent rise in the exchange rate in the parallel market.
We also believe that implementing what was stated in the agreement The Iraqi-American latest regarding commercial transactions in the UAE dirham and the Chinese yuan will prompt a reduction in the dollar exchange rate in the coming days.”
Earlier, reports revealed an agreement between the Central Bank of Iraq and the US Federal Bank during a meeting in the Emirates, to add new banks as part of the work of enhancing foreign remittances.
According to the agreement, the number of banks capable of enhancing balances and transferring currencies abroad became 10 instead of 5 banks, and enhancing their balances in dollars in advance, in addition to strengthening a number of banks in Chinese yuan or the UAE dirham and the Indian rupee, which allows foreign trade to be easily enhanced and financed with dollars.
Thank you MarkZ for all your time, and encouragement daily….. PDK
MarkZ Tuesday Update- Some highlights by PDK-Not verbatim
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Member: Good Morning to all RV friends and family
MZ: Its been very quiet on the bond side…..keep running into brick walls. From group leaders as well…They are not answering phones. I take that as a good sidn and they know things are awfully close.
Member: If I signed NDA’s and if I talked they would take my money…..I would not answer the phone either…..just sayin…….
Member: Nader is excited about Forex!!
Member: Nader said he woke up this morning and expected it to go based on a article he read. 3.22-3.50 rate
MZ: Yes….Nader had a great one…… I’m still working on finding his exact article that dropped overnight. All of it is dealing with foreign currency transactions and bringing in foreign currency baskets to help get rid of the US currency. Be sure to like and share his videos.
Member: Nader said it could happen any day!
MZ: That’s what I am hearing- they want things completed and fully active and everything done by Jan. For that to happen it could go any day.
Member: Frank26 had 3 great bank stories last yesterday
Member: per Frank 26 before Thanksgiving
MZ: I heard one banking story from another persons local bank. After telling him that investing in currencies was not a good thing….yesterday the teller asked if he still had those currencies and he just heard they will be exchanging them soon…..
Member: I went to my bank last night and all of the teller lanes in the drive thru are now atms.
Member: My bank knows nothing at all.
Member: Banks are saying different things because not all bank branches will be exchanging currency so they are not in the need to know
Member: I am new- what does RV stand for?
Member: RV equels= Revalue or Re-valuation. Referring to currencies.
MZ: A big one in the news today-“Gold prices forecast to rise 50% in 2024…Reach $3000” I personally think we will see it hit more than that.
MZ: “Peter Schiff and Dan Ball: Things are even gloomier and doomier than they look” They are finally paying attention.
Member: Thanks Mark and mods…….hope everyone has a great day.
StacieZ joins the stream at the end today. Please listen to the replay for her information
“THE INFORMATION IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY. NOT INTENDED TO PROVIDE ANY PROFESSIONAL & LEGAL ADVICE.” PLEASE CONSIDER EVERYTHING DISCUSSED IS IN MARKZ’S OPINION ONLY.