Advisor To The Association Of Private Banks: Serious Steps To Confront The Dollar Crisis
Advisor to the Iraqi Private Banks Association, Samir Al-Nusairi, confirmed that the Iraqi government and the Central Bank are working in harmony to address the dollar crisis, and that there are serious steps that have been taken or are being taken in this direction.
Al-Nusairi said in press statements, followed by Al-Mustaqila on Tuesday, that the Central Bank began digital transformation in the banking sector since 2016, by developing electronic payment systems and electronic banks.
It also took a new strategy for economic action that includes steps to enhance local production and reduce dependence on imports.
Al-Nusairi added that the Iraqi government worked hard to reconsider monetary policies and diagnose the defect, and that there is great optimism for the continued decline in the price of the dollar in Iraq, as it is expected to reach 140 dinars in the first quarter of next year.
Al-Nusairi pointed out that Iraq has begun to take the right steps to enter the global financial system, as an agreement was signed with the International Monetary Fund, the Baghdad Stock Exchange was established, and work is underway to establish a regulatory body for financial markets.
Al-Nusairi explained that there is “chaos” in foreign trade in Iraq, as unnecessary goods and services are being imported, which increases the pressure of the dollar on the Iraqi economy, and called for the necessity of organizing and controlling foreign trade.
Informed sources have confirmed that the US Ambassador in Baghdad, Alina Romanowski, with the support of a specialized team from the US Treasury Department, has exerted great and continuous pressure on the Central Bank of Iraq and the Ministry of Finance in order to adhere to international standards in the field of transferring and exchanging money with the world.
The statements of the advisor to the Iraqi Private Banks Association indicate that there are serious steps that have been taken or are being taken in Iraq to address the dollar crisis, as the Central Bank and the government are working in harmony in this direction.
These steps include digital transformation in the banking sector, enhancing local production, reducing dependence on imports, entering the global financial system, and regulating foreign trade.
If Iraq succeeds in implementing these steps, it is expected that the severity of the dollar crisis in the country will decline and return to acceptable levels.
The black market rate will no longer be...The black market rate is the American dollar. The CBI wants the official rate 1310 to match the dollar rate. That means the currency of Iraq is too low... Slowly we're having a reciprocal effect where the dollar is going down and the dinar is going up...
The IMF regulates all banks around the world. If a bank wants to come out with a new currency they will talk to the IMF about it.. .
Whatever it might be concerning the financial structure of a country with its banks the IMF has to give the okay...Why? Because you're dealing with every country internationally. Well, Iraq isn't. They're about to! And that's the point...They're about to do what big boys do, what big banks do. The IMF has worked with them...This is the conclusion of those meetings.
Right now it's an illusion to many banks because they don't know. But the banks that do know, are the ones that are being primed.
The "Parallel Dollar"... 5 Factors To Control The Rhythm And A Parliamentarian Identifies The "Major Weak Point" In The Iraqi Economy
Economy/Politics | Baghdad Today, Tuesday (December 26, 2023), Member of Parliament Hussein Habib identified five factors to control the rhythm of the parallel dollar in Iraqi markets, while noting that a significant number of Iraqis are forced to travel for treatment and spend huge sums of money in dollars.
Habib told “Baghdad Today” that “many positives accompany the decline in the exchange rate of the dollar in the parallel market, the most prominent of which is its direct impact on millions of Iraqis in terms of reducing the prices of materials in the markets,
but the dollar does not decline through wishes and statements, but rather through actual plans that take their reach in interacting with the reasons for the rise.” dollar directly. He added,
"There are five factors that control the rhythm of the parallel dollar , the most prominent of which is reducing demand for it and striving for an actual renaissance in the industry file, because a large portion of the dollar export abroad comes through the balance of imports, which includes the highest percentage of market needs," pointing out that
there is a real desire among the Sudanese to Strengthening the value of the Iraqi dinar against the dollar, but the matter requires other measures that contribute to preserving the hard currency, and perhaps opening investments and reviving factories is an important step.”
Habib pointed out, “A significant number of Iraqi patients are forced to travel for treatment and they spend huge sums of money in dollars, and this is one of the pieces of evidence that shows part of the reasons for the dollar’s departure abroad,” explaining that
without industry, production, and solving the problems of services, this will remain a weak point in the national economy and remain A pressure factor on the parallel market in the country.”
For about two weeks, the dollar exchange rate has been witnessing a continuous decline, as it fell from 1600 to 1480 gradually, at a time when economic specialists expressed the lack of clarity of vision or the existence of a direct reason for the decline in exchange rates.
Rather, they are many indicators and reasons accumulated and combined with each other that led to a lack of demand. On the dollar in the parallel market.
We know they are going to do away with using the US dollar the beginning for 2024. Let's see how this effects the Iraqi exchange rate. Like I anticipated this should strengthen the Iraqi dinar in a major way and hopefully soon after that it affect the exchange rate...
Article: "Advisor to the Sudanese: We aspire to end of the parallel market for the dollar in the coming days" We know they've been talking about that now for quite some time. Supposedly the beginning of this next year they're going to do away using the US dollar and just start using Iraqi dinar for their transactions. Their goal is to get rid of the parallel market all together...
Iraq has experienced multiple devaluations and revaluations of the currency...From 1988 to currently where we are these are the major events that affected currency. 1988 the IQD as introduced. This was replacing the IQP (Iraqi pound). This was done at a fixed rate of 1 to 1.
You could exchange your IQP straight across 1 for 1 for the Iraqi dinar (IQD). 1990 when Bush went to war with Iraq of course the gulf war caused significant devaluation of the IQD. The currency lost about 80% of its value against the US dollar. You could exchange 1 Iraqi dinar for $0.31 cents US.
The funny thing is I would take that right about now because I have about four or five million Iraqi dinars. If it jumped up to $0.31, woo, I'd be happy with that because I'd get over a million dollars back. 1995 the IQD was officially pegged to the US dollar at a fixed rate of 1 IQD for $2.85 USD. 2003 we know the US led an invasion of Iraq...
This led to economic instability and currency fluctuations. The Iraqi dinar was devalued to around 1 IQD for $1.30 USD...Got rid of the ones with the faces of Saddam Hussein... 1 new IQD was equivalent to 1,000 old IQDs. In 2012 the central bank...allowed the IQD to float freely. This led to a significant devaluation of the currency with the IQD losing 20% of its value...
2014 IQD experienced another devaluation. This time it was due to the decline in oil prices and conflict with ISIS. The currency lost about 15% of its value against the USD. [Later] the CBI implemented a new exchange regime allowing the IQD to float freely against the basket of currencies. This led to further devaluation of the currency with the IQD losing another 10% of its value against the US dollar and then not even a year later to turn around and...increase the value of the Iraqi dinar exchange rate...So yeah at one time the Iraqi dinar was more valuable than the US dollar. Do I think it can get there again? Of course I believe that absolutely but there are hurdles that Iraq has to get over.
Welcome everybody to the day after Christmas - Welcome to the Big call. Welcome to boxing day as it were celebrated in the UK we're thrilled to be here after Christmas So welcome everybody. Today is Tuesday, December 26 are in fact listening to the big call. We're glad you're here. Thanks for coming in and everyone and let's go ahead and rate the call and then
If we get into where we're supposed to be on Intel, I can tell you this much. We thought we wou ld get our notifications mid morning today. This came from some pretty strong sources and we have, we did not receive it today. But I think I know why. It's not just because of boxing day, although that might have been a little bit of a factor. But I think it's more based on the fact that we did get rates on the bank screens that were not on the bank screens yet.
In fact, last Friday, after the last big call we did Thursday night, I found that the Iraqi dinar was on the redemption centers, screens not on the bank screens, not on the Forex - now the forex shuts down between 5 pm Friday, all the way to 5 pm Sunday. Eastern time – and open back up Sunday - Christmas Eve at five o'clock and we got some pretty good response that that had happened.
But some of the other rates are also going to show up and be traded on the forex starting at five o'clock on Sunday. And that's what's happened to get us to where we are today. Because right now, today, we had screen rates at the banks. We didn't get the rates at the redemption centers today, but we did get the rates at the bank. and of all of those currencies that are going up in value - Most of them are in a range - Very nice range.
And they'll settle in between four and seven. Four and seven is where they're going to settle in. Now the dinar is much higher, and even on even on the bank screens, it's much higher and the Dong may be maybe higher as well as some of the general currencies like the Indonesian rupiah - the Afgahni - the Venezuelan Bolivar - I believe the shekel was really shackled.
And there are a number of other currencies that will fall in the four seven range because that's populating now. – with blinking lights on the bank screens today. Not all the rates have populated - they’re trading up for filling in the blinking. But it all shows that I believe that's why we didn't get started yet. I believe they're looking for these rates to come up and trade up and settle in a little bit more
Now we heard from our bond paymasters, one of the bond paymasters, we spoke earlier today said that he expects the bond notifications to the bond holders to give them access to their funds – would come out overnight tonight. it might show up tomorrow.
We've also heard from let's call it US Treasury Marshal that we expect tomorrow to be significant. We talked to him earlier today and I lunchtime. He was indicating that we should have the. we should have this RV happening within about 24 hours - instead of today is pointing more towards tomorrow. At least for our notifications.
That's a good thing. Because we went most of the day without knowing quite what was happening because we had our indication was looking really good and we get notified before lunch today. And that did not happen. But tomorrow many different matter entirely. I'm hoping it is I don't know you guys are too –
We did not get As you know we did not get this before Christmas as was the desire. It just didn't happen. And it looks like we should be in a position to get this Any day. now. Could you tomorrow could be Thursday, I believe, tomorrow is looking very good for us.
Beyond that, everything for the shotgun start. We are hearing very good things about the start being moral for not only us but also the intermediaries, those fines interest and penalties. The adjudicated settlements like CMK X, all of that stuff. The farm claims – Indian claims, ranch claims - all of that stuff is supposed to come out within 12 hours of each other - meaning with us – bond holders tier three – admirals groups - for a US into tier 4B - all of that it's about within about 12 hours of each other.
So we don't know what's going to happen. Firstly, maybe overnight tonight, with bondholders getting emails access to funds, and that's what I believe will take place.
The other thing is Christmas and Easter time - the Saint Germain trust they're supposed to open and that happened we heard about this yesterday - Christmas Day - that the St. Germain trust would open and that funding for St. Germain would go out internationally, not to the central banks because they're all done away with but replaced the central banks and all those international countries is their own treasuries or their own main treasury bank -. But the Federal Reserve is basically dead - the remnant of the Fed has been led into the US Treasury. And so, what we have coming to us was the Rodrigues trust -bottomless trust that pours out and was pouring into our US Treasury.
And so that's a good sign. That was few days ago, that took place probably Friday, Saturday, and that may be may have occurred, those tranches from those trusts may have already heard we have those already. But now we're looking for The green light, essentially, things that green light from the Treasury That says go to everything from the admirals’ groups - to intermediaries - to prosperity packages to us into tier 4B.
So I think that is what treasury was just waiting for all those rates wobbly - And for the blinking rates to stop blinking for everything to be a go.
Now, I think I've mentioned last Thursday, but you know when you need to get our new USN physical currency in the ATMs, New Year's Eve night, or New Year's Eve - andis supposed to be in the ATM’s, ready to go for New Year's Day. That's our new currency.
And we're supposed to have it in the banks, rich people, everyday people going into the banks. They'll be able to pick it up on January 2. Okay, we should be Tuesday right? To get at least one today.
So we're not as concerned about that. Because we're concerned about getting the actual redemption center started for us. Redemption center appointments started by the 800 number, which is going to be kicked off with the emails from the Wells Fargo servers to us.
And I know that Saturday and Sunday that was Sunday, which was Christmas Eve. The redemptions?
We were going to the servers and tested emails for them to get ready to be loaded again and released. So that has already happened.
And now as a matter of going through it, once the Treasury gives the green light to start - then we're underway. That's pretty much where we stand right now.
Rates populating up on the bank screens - We know they should be on the redemption center screens, right so the back strings are going to be good, but redemption center. rates will be better for us. President Trump set that up for that to happen. That will be pace moving forward so that's all I had to say tonight,
Yep let's just see if tomorrow works out to be what we were getting from the US Treasury Marshal Today. They suggested that we would get it within 24 hours is what he anticipated and that within itself around lunchtime today. So let's say it's going to pray the call out and see what develops overnight, and tomorrow.
