Thursday, December 28, 2023
Dollar Prices Falter Against The Dinar, And Parliament Finance Describes The Decline As Temporary, 28 DEC
Dollar Prices Falter Against The Dinar, And Parliament Finance Describes The Decline As Temporary
Posted On 12-28-2023 By Sotaliraq Haider Hisham The prices of the US dollar fell against the Iraqi dinar, yesterday, Wednesday, in Baghdad and Erbil with the closure of the stock exchange, as the prices of the dollar recorded a decline with the closure of the two main Kifah and Harithiya stock exchanges in Baghdad, reaching 151,500 Iraqi dinars against 100 dollars, while the same morning it recorded 152,750 Iraqi dinars against 100 dollars.
While selling prices in banking shops in local markets in Baghdad decreased, the selling price reached 152,500 dinars for 100 dollars, while the purchase price reached 150,500 dinars for 100 dollars.
The new development that occurred in the series of exchange rates was represented by the decline of the dollar against the dinar, especially in the Baghdad stock exchanges, where it abandoned prices exceeding 155 thousand dinars for every 100 dollars, and returned to the threshold of 148 or less, amid many popular and political questions about the real reasons for this. The decline, and will it continue or will it rise again?
Member of the Parliamentary Finance Committee, Mudar Al-Karawi, identified the most important factors that pushed the “opposite trend” of the parallel market in Iraq, while he considered the recent decline in exchange rates “temporary.”
Etiology
Al-Karawi said in an interview with Al-Mada, “The exchange rate of the dollar in the parallel market decreased by approximately 6% in two weeks and approached 148 thousand dinars for every 100 dollars.”
He added, “The Central Bank’s measures to deal with the main pressure factors on the parallel market pushed merchants and companies to the electronic platform to reduce smuggling opportunities,” noting “an attempt to push 13 active sectors in the country to replace their transactions from the dollar to the dinar, including buying and selling cars, for example.” For example, which worked to reduce demand in the parallel market.”
A member of the Finance Committee explains, “The recent decline in exchange rates is temporary; Because it depends on other points, including that 90% of the markets’ needs are met through import, meaning exporting currency abroad to fulfill financial pledges, which puts greater pressure on the hard currency.”
Al-Karawi points out that “the nature of dealings with neighboring countries, some of which suffer from sanctions, directly affects the parallel market.”
American side
The recent decline in exchange rates is the first of its kind in many months, but the real reasons have not been revealed until this moment, especially since merchants and citizens do not trust the government’s measures and quickly forgot the words of the Prime Minister, Muhammad Shiaa Al-Sudani, when he said, “The dinar is stronger than the dollar.” In turn, the researcher in economic affairs, Nabil Al-Ali, explains the real reasons for the recent decline in the dollar exchange rates in local markets, in relation to the relationship between the blog of the American ambassador to Iraq and the decline of the green currency.
Several days ago, the US Ambassador to Iraq, Elena Romanowski, confirmed that the US Treasury Department would continue its cooperation with the Central Bank of Iraq, while indicating that America would continue to provide dollar services to Iraq.
Citizen confidence
Al-Ali mentioned in an interview with (Al-Mada), that “the Iraqi government has tried for a long time to persuade citizens to fix the official price at 132 thousand per 100 dollars, but citizens do not trust government decisions, at a time when Washington’s ambassador to Iraq, Elena Romanski, is speaking in a blog post.” Small said that her country supports the Iraqi efforts, and sees the clear decline in exchange rates.
He points out that “public opinion and merchants are shifting their confidence towards external positions, and they have no confidence in the government,” considering this matter a “dangerous indicator.”
The economic affairs researcher continues: “There are no new measures by the Central Bank of Iraq to see the recent decline in prices affecting local markets,” pointing out that “there are government plans and procedures, but their impact will not be reflected directly.”
Al-Ali explains, “There is another factor causing the recent decline, which is the end of the fiscal year, and the large number of holidays and events, which leads to a decrease in the volume of trade, and in turn leads to a decrease in demand for the dollar, which prompted citizens to sell the dollar.”
He confirms that “this recent decline is relative, and may witness an increase or fluctuation during the coming period,” indicating that “the fate of the exchange rate is to decline and get closer to the official rate set by the government.”
During yesterday's transactions, Wednesday, the dollar exchange rates rose again with the opening of stock exchanges in the capital, Baghdad, where the price of 100 dollars reached more than 153 thousand dinars.
Wiggle
The US dollar is putting pressure on the Iraqi economy and exhausting its sectors due to its superiority over the dinar, despite the Central Bank providing more than a billion dollars weekly to finance commercial activities through the foreign currency selling window for 1,305 dinars per dollar.
Although the average Iraqi per capita income increased to 7 million dinars last year, the rise in prices of goods and commodities, as well as the fluctuation of exchange rates, raise more negative indicators in terms of poverty, inflation, and the level of recession.
The crisis of the dinar's exchange rates against the dollar is still ongoing in Iraq, since late last year, witnessing fluctuations despite measures taken by the country's central bank with the aim of stabilizing currency prices, while dollar prices recorded fluctuations in the previous two days after a modest decline, which turned the currency crisis into a nightmare that haunts Iraqis. LINK
"RV UPDATE" BY BRUCE, 28 DEC
Bruce
[via WiserNow] ...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... once the Treasury gives the green light to start - then we're underway. That's pretty much where we stand right now.
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.
https://dinarevaluation.blogspot.com/2023/12/bruces-big-call-28-dec.html
Coffee with MarkZ. 12/28/2023
The Dollar Exchange Rate Will Stabilize With The Broader Launch Of The Budget, 28 DEC
The Dollar Exchange Rate Will Stabilize With The Broader Launch Of The Budget
The first 12/28/2023 Baghdad: Shaima Rasheed The Parliamentary Finance Committee explained the decline in the dollar exchange rates against the Iraqi dinar to the citizen’s fear of the fluctuation occurring, which is related to the budget and the government’s spending of it after it stopped it before the local elections, while it considered the government’s shift towards electronic dealing at the beginning of next year to be a positive thing.
Committee member, Jamal Cougar, said in an interview with “Al-Sabah” that the dollar is supposed to witness a further decline when it is exchanged against the Iraqi dinar, especially with the start of greater budget disbursement, in addition to the government’s announcement of the direct implementation of the electronic system with the start of the new year, which will limit From financial dealings in dollars.
He added that the current exchange rate in the market is not real and that part of it is due to the fear of rise or fall because the real price is determined by the criterion of need, noting that we do not have a real ceiling for need, as part of it is speculation and the other is smuggling and others, and the real price remains unknown because there are no solid financial institutions that speak. About import and export.
Koger pointed out that the government did not spend the budget so that it would not be exploited in the local elections by parties and candidates at the time, calling on the government to start spending the budget more than it was spending in order for the market and exchange rate to stabilize.
Edited by: Adhraa Juma https://alsabaah.iq/89559-.html
IRAQ BOOTS ON THE GROUND REPORT" BY FIREFLY, 28 DEC
Frank26 (KTFA)
[Iraq boots-on-the-ground report]
FIREFLY: We have a special on TV and they say the Iraqi dinar wins the struggle against the dollar and wins control of the markets…
FRANK: The goal of the last few weeks has been to bring the market rate parallel with the dollar rate. Remember the CBI can’t touch the dollar value but they can touch the value of your currency of the dinar…They have been victorious of reducing the value of their enemy foreign currency like the American dollar and all foreign currency in your country verses your national currency which is at 1310 right now. But that rate is now in a position to change because of all the success of the monetary reform from the CBI and Sudani. That’s all there is to it.
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…
Question:
“Can any country RV their currency whenever they want?”
Yeah but they have to go through the IMF. That’s what the International Monetary Fund does – they regulate all the banks around the world and allow them to either increase, decrease, print new currency, destroy their currency, change their exchange rate. There is a systematic way of doing it. They’re called international banking laws.
TIDBIT FROM NADER FROM MID EAST, 24 NOV
Nader From The Mid East We will not go more than $4 so don't waste your time and ask question about $16, $8, $11 and $12. Don'...
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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...