Wednesday, November 29, 2023
New shipments of US dollars arrive in Iraq, 30 NOV
New shipments of US dollars arrive in Iraq
A source in the Iraqi banking sector reported the arrival of new shipments of US dollars on Wednesday.
According to an INA source, the Iraqi banks have received new shipments of US dollars at the Baghdad International Airport to meet customer needs.
The informant mentioned that more shipments are expected to arrive in the next few days. I have ensured that there are no spelling, grammar, or punctuation errors in the revised text.
In mid-November, a government official revealed that three private banks in Iraq received official authorization from the Central Bank of Iraq (CBI) to import US dollars to meet the needs of their clients.
The source confirmed that one of the banks had already shipped amounts of up to $100 million to Iraq.
The CBI is reviewing additional requests from other Iraqi banks to import US dollars, according to an official.
The Trade Bank of Iraq (TBI) is in talks with several international companies to transfer $120 million to Iraq in the coming days, according to an INA source.
The recent decision by the CBI allowing private banks to import foreign currencies via commercial flights has sparked controversy as Iraqi lawmakers and legal experts have deemed it unconstitutional according to The News Arab.
Officials from the CBI recently held intensive meetings with US officials in Abu Dhabi to discuss covering imports via external transfers.
The Dinar Will Recover.. Iraq Is Approaching An “Imminent End” To The Dollar Crisis Before The End Of 2023, 29 NOV
The Dinar Will Recover.. Iraq Is Approaching An “Imminent End” To The Dollar Crisis Before The End Of 2023
Economy |11-27-2023, Baghdad today – Baghdad Today, Monday (November 27, 2023), the Parliamentary Finance Committee commented on the possibility of the Iraqi government succeeding in controlling the dollar by the end of the current year.
Committee member Moeen Al-Kazemi told Baghdad Al-Youm, “The government and the central bank are working to end the dollar crisis once and for all, and there is great progress in this file and there is control over the market, as well as a gradual decline in exchange rates in the parallel market.”
Al-Kadhimi added, "We expect that the new year will witness a significant decline in dollar prices with the rise in the value of the Iraqi dinar, especially with the presence of government decisions and directives to address all the causes of the dollar crisis, and we expect that economic and financial stability will be strongly present at the beginning of next year."
Earlier, a senior official in the Central Bank of Iraq told Reuters that the country will ban cash withdrawals and transactions in dollars as of January 1, 2024, in the latest effort to limit the misuse of the country’s hard currency reserves in financial crimes and evade US sanctions on Iran. .
Mazen Ahmed, Director General of the Investment and Transfer Department at the Central Bank of Iraq, told Reuters that the aim of the step is to stop the illegal use of about 50 percent of the $10 billion cash amount that Iraq imports annually from the Federal Reserve Bank in New York.
This step comes as part of a broader campaign to stop the economy's dependence on the dollar after residents began to prefer the US currency over the dinar. Ahmed said that people who deposit dollars in banks before the end of 2023 will be able to withdraw money in dollars in 2024. But dollars deposited in 2024 can only be withdrawn in the local currency at the official rate of 1,320 dinars to the dollar.
Official Price
Ahmed said, "You want to transfer money? To do so. You want a card in dollars? Here you go. You can use the card inside Iraq at the official rate, or if you want to withdraw cash, you can at the official rate in dinars... but don't talk to me about dollars in cash anymore."
Iraq has already created a platform to organize bank transfers that make up the bulk of demand for dollars, and which has served as a hotbed for counterfeit receipts and fraudulent transactions that have leaked dollars to Iran and Syria, which are under US sanctions.
Ahmed stated that this system, which was put in place in coordination with the authorities in the United States where Iraq's reserves of $120 billion from oil sales are kept, is now almost airtight and provides dollars at the official rate to those who engage in legitimate trade activities such as importing food and consumer goods. But he said that the misuse of cash withdrawals continues in ways that include travelers who are officially entitled to $3,000 but are looking for ways to circumvent the system.
Iraq relies heavily on its good relations with Washington to ensure that the country's oil revenues and funds are not subject to American oversight.
Dollar Shortage
Many local banks have already limited cash withdrawals in dollars over the past few months, exacerbating shortages that have caused the exchange rate to continue to rise in the parallel market.
Ahmed said that some banks are suffering from a shortage of dollars because many people are trying to withdraw at the same time in light of a feeling of unease about the financial system, while some banks are also suffering from a shortage because they provided loans denominated in dollars that were then repaid in dinars.
He added that the Central Bank of Iraq also limited the amount of dollars it provides as part of an agreement with the US Central Bank to limit cash liquidity and shift to electronic payments.
Ahmed pointed out that the Iraqi Central Bank expects the dinar to lose more of its value as the new measures enter into force, but he added that this is an acceptable side effect of formalizing the financial system, noting that the Iraqi Central Bank provides dollars at the official exchange rate for all legitimate purposes.
He said that the cost that Iraq is bearing today is not compared to the value of achieving this goal.
Ahmed stated that the financing operations that are carried out transparently and legally through the bank and at the official rate are the most important and therefore nothing else matters, even if the exchange rate reaches 1700.
He continued, saying, "The cost we bear now is nothing compared to achieving this goal, in all honesty, as long as the legitimate channels are established.
What matters is even if the exchange rate reaches 1,700... because the legitimate purpose is the official price." https://baghdadtoday.news/236459-الدينار-سيتعافى.-العراق-يقترب-من-نهاية-وشيكة-لأزمة-الدولار-قبل-نهاية-2023.html
Evening News with MarkZ. 11/29/2023
"RV UPDATE" BY KAPERONI, 29 NOV
Kaperoni
There is no overnight RV and The main reason why that could never happen is because the money supply in Iraq is too significant. There's close to 90 trillion dinar in circulation which makes it impossible for there to be such an event
A significant increase in the value of the dinar at or equal to its face value with 90 trillion dinar in circulation would, in essence, be six times the value of the entire countries wealth..
.This is why I have stated numerous times that if and when the dinar ever was to go up in value, it would have to go up gradually over time so that the dinar money supply could be reduced. But that only could occur if Iraq's economy began to significantly prosper.
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Frank26 [Bank story] This time we didn't go down, we just called [the bank]... We said we want to see if we can exchange some cu...
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Bank appointment for Currency EXCHANGE Instructions/Checklist Bank Name_________________________________________ Bank 800#____________...
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Walkingstick All these meetings that the CBI had with all these agencies that were helping them with their monetary reform are done. Al...