Iraqi Central Bank Allows Dollar Imports Amid Exchange Rate Concerns
The Central Bank of Iraq has granted formal permissions to three private banks to import US dollars in amounts reaching up to $100 million to meet customer needs. One shipment of these amounts has already arrived in Iraq, and several other requests are on their way. In addition, the Trade Bank of Iraq (TBI) is in discussions with several international companies to transfer amounts up to $120 million, expected to be completed in the coming days.
Government Measures to Address Exchange Rate Difference
In an attempt to address the exchange rate difference, the Iraqi government has approved a series of measures. These include streamlining the import process, simplifying account opening and deposit operations, and initiating negotiations with Iran to regulate trade between the two nations. The government is also keen on developing electronic payment systems to reduce dependence on cash transactions.
Dollar Availability and Impact on Iraqi Tourism
Additional talks are underway to facilitate the import of dollars and make them available through banks and exchange companies. This initiative aims to meet the needs of Iraqi tourists and pilgrims traveling to countries where the dollar is not readily available. The selling price of the dollar in Baghdad and Erbil has dropped to 156500 Iraqi dinars for 100 dollars, thus impacting the tourism economy.
US Sanction Exemptions and Their Implications
The US has renewed an exemption from sanctions that allows Iraq to pay Iran for electricity. This exemption enables Iraq to use its funds to pay for Iranian electricity imports via restricted Iranian accounts in Iraq. However, concerns are growing over the possibility of extending Baghdad’s exemption from US sanctions, allowing Iran to access $10 billion of its frozen assets in Iraq. This concern stems from Iran’s role in backing armed Palestinian groups, leading to increased pressure on Washington to adopt more stringent policies against Tehran.
In the city of Sulaymaniyah, the exchange rate of the dinar against the dollar holds steady in the local market. As it stands today, 100 dollars are trading for 160,000 dinars.
Current Exchange Rates
The current exchange rate is pegged at 1 USD to 1310.138 IQD, according to live exchange rates for the Dollar to Iraqi Dinar. This data reveals that the value of the dinar in Sulaymaniyah is performing robustly against the dollar.
Impact of Market Sentiment
Recent articles attribute the decline in the US dollar price against the Iraqi dinar to optimistic market expectations and sentiment. Even though these articles do not explicitly refer to Sulaymaniyah, their insights into the exchange rate dynamics in Iraq are relevant and applicable to Sulaymaniyah’s financial landscape.
Money Transfer and Currency Conversion
For those interested in currency conversion or sending money abroad, various money transfer partners are available. While their services extend to converting the United States Dollar to the Iraqi Dinar, they do not specify Sulaymaniyah. However, given the city’s stable exchange rate, these services could prove beneficial for both local and international transactions.
Frank26:"OVERTIME FOR THE REFORMS!!!"............F26
The Minister of Finance directs the Accounting Department to continue working on Fridays and Saturdays until the end of the current year
11/14/2023 Baghdad -
The Minister of Finance, Taif Sami, today, Tuesday, directed the Accounting Department to continue working on Fridays and Saturdays until the end of the current year.
The ministry said in a statement, a copy of which was received by Mawazine News, that “Minister of Finance, Taif Sami, directed the Accounting Department to continue official working hours on Fridays and Saturdays until the end of the current year.”
She added, "This came with the aim of accelerating the completion of financing procedures and the approaching end of the fiscal year." LINK
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Frank26:"SUDANI & ALAQ ON THE MONETARY REFORM EDUCATION!!!"...........F26
A government source reveals a package of measures to address the difference in the exchange rate
11/14/2023
A government source revealed, today, Tuesday, a package of measures to address the difference in the exchange rate, noting that Prime Minister Muhammad Shiaa Al-Sudani directed the activation of a committee to hold serious discussions with the US Treasury Department regarding transfers.
The source explained, according to the official agency, that the package of measures included the following:
1- Organizing the import process and ensuring the entry of the largest number of merchants and importers to the foreign currency sales window by facilitating account opening procedures, deposit operations and other procedures related to issuing the importer’s identity, which would facilitate the requirements of (know your customer). ) for the category of merchants and importers.
2- The government and the Central Bank are conducting ongoing negotiations with the Iranian side to regulate trade between the two countries and make the best options regarding payment of dues and amounts, and discussions are taking place at a good pace.
3- The Prime Minister directed to work on a number of important projects to ensure that the poor and middle-income groups are not affected by the exchange rate difference, as the Ministries of Commerce and Health are working to import important materials and provide them in Iraqi dinars at stable prices, an example of which is the food basket project (supported by stable prices), the medicine basket and the basket. Construction and a basket of reserve materials for the transportation sector... some of which work began some time ago.
4- The government is now working on a project (an equal deal) to exchange trade and imports with some countries, such as China and India, and in their own currencies from the main trading partners of Iraq, such as India, China, and some neighboring countries.
5- The government is currently considering establishing a free zone to import materials and then market them to the private sector and ensure their delivery to the consumer at competitive prices and in the Iraqi dinar.
6- The government is currently studying a re-export project and there are important discussions in this regard.
7- The government issued a series of measures to develop electronic payment systems and reduce dependence on cash... and in the coming days a series of other decisions will be issued regarding the pricing and incentive policy for services provided through electronic payment.
8- The President directed the activation of a joint committee between the government, the central bank, and the private sector, under the supervision of his state office, to hold serious discussions with the US Treasury regarding transfers through the foreign currency selling window, and the committee began its meetings from now.
9- The government is holding ongoing discussions with the Central Bank of Iraq on a number of topics, including facilitating procedures related to Iraqi banks importing the dollar (cash). This process has already begun with some banks importing the dollar, and the process will expand to include other banks. Work is also underway to implement a contract. Agreements to supply the currencies of some countries to be provided through banks and banking companies to meet the needs of Iraqi tourists and pilgrims going to those countries without the dollar currency. LINK
I JUST WANTED TO SHARE SOMETHING WITH YOU IN MY OPINION IF I WAS THE CBI, I WOULD BE FOCUSING ON THE NEW EXCHANGE RATE AND THE NEW CURRENCY TO COME OUT TOGETHER.
WITH THAT SAID I WOULD LIKE TO SHARE MY OPINION, THAT SUDANI IS IN ERBIL WITH BARZANI, AND THEY ARE DEALING WITH THE LAST THREE PARAGRAPHS OF THE HCL. THEIR INTENT IS TO RELEASE IT VERY SOON
IF THAT IS THE CASE, THEN IN MY OPINION, THE NEW EXCHANGE RATE AND THE NEW LOWER NOTES SHOULD FOLLOW.
REMEMBER WHAT I’VE ALWAYS SAID, IN MY OPINION THE MOMENT YOU SEE THE HCL SECONDS LATER YOU WILL SEE THE NEW EXCHANGE RATE.
GOD BLESS YOU ALL…….FRANK26
[Bank Story]
I called JP Morgan Chase corporation office and I was told when the Iraqi dinar is reinstated...
FRANK: What?? Chase told you this?!
Bank Story: He said when the IQD is reinstated I am supposed to go to Houston, Texas Chase Bank and they would be able to exchange my currency and set up a private account there for me. I just wanted to share my JP Morgan Chase story with you. This is amazing isn't it?
America Extends Iraq's Exemption From Sanctions Imposed On Iran
Energy Economy News _ Baghdad The United States of America announced that it had extended for four months the exemption period granted to Iraq from sanctions related to dealing with Iran, allowing Baghdad to continue importing energy from the Islamic Republic.
A senior US State Department official told reporters, requesting that his name not be published, that "this measure will allow Iraq to use its own funds to pay the costs of importing electricity from Iran, which will be placed in Iranian accounts restricted in Iraq."
He added, "Iran will not be able to use this money except for humanitarian needs."
Due to the sanctions imposed by the United States on the Islamic Republic, Baghdad cannot directly pay Tehran for its imports of Iranian gas.
The senior American official explained that the total debt owed to Tehran by Baghdad in exchange for previous Iraqi imports of Iranian gas amounts to about 10 billion dollars.
To force Baghdad to pay its unpaid debts, Tehran regularly suspends its gas supplies to Iraq, which desperately needs these imports to operate electricity production plants.
Iranian gas supplies cover a third of the needs of electricity production plants in Iraq.
The exception also stipulates that a portion of Iranian gas funds be transferred to Oman.
This is the 21st time that Washington has extended this exception to the sanctions since 2018.
Although Iraq is an oil country, it relies heavily on Iran in the field of energy, as it imports a third of its consumption needs of gas and electricity from it due to its dilapidated infrastructure, which makes it unable to achieve self-sufficiency to meet the needs of its population of 40 million people.
Iraq currently produces 16,000 megawatts of electricity, which is much less than its estimated need of 24,000 megawatts, reaching 30,000 in the summer, while its population may double by 2050, which means an increase in its energy consumption, according to the United Nations.
The previous US administration, under President Donald Trump, withdrew from the nuclear agreement concluded with Iran and at the end of 2018 reimposed sanctions on the Islamic Republic.
Because of these sanctions, many countries and international companies refrain from dealing with the Iranian government or even with Iranian companies for fear of being affected by the sanctions.
