THE DOLLAR IS FALLING IN IRAQ, AND THE BATTLE TO TAME IT IS NEARING AN END
The local market has witnessed a gradual decline in the dollar exchange rate recently in a way that observers described as a rapid decline, suggesting that it will reach a level close to the official rate in light of the central bank and government measures with an American green light to release payments of savings at the Federal Reserve.
At the beginning of this week, the US Ambassador to Iraq, Alenia Romanski, announced that her country would continue to provide US dollar services to Iraq, as she told me in her tweet that “the executive agency responsible for promoting economic prosperity and ensuring the financial security of the United States continues its cooperation with the Central Bank of Iraq, and many banks Iraq has formed relationships with international banks for the first time, which is a positive step in making progress in reforming the banking sector, and we will continue to provide US dollar services to Iraq in the interest of economic stability.”
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
[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.
Thank you MarkZ for all your time, and encouragement daily….. PDK
MarkZ 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 Mark, Mods and RV’ers.
Member: I am sure hoping that News Years is the big 3 day weekend we have been waiting for
Member: I sure hope MarkZ dug up some good news for us today!
MZ:The bond leaders are quiet…the group leaders are quiet.
MZ: All my contacts are in position and we have a few more representatives from the Chinese banking families that are now in the west coast area. Some in Reno and some is southern California.
MZ: I believe everyone is where they need to be.
MZ: We do have a bank story that I want to share. I am going to leave out the name of the bank so they do not get harassed.
MZ: “I went to my nearest ________bank in California on Mon 12-18 to talk about the possibility of opening an account with them. I told the account rep I had a lot of foreign currency and have been reading that ______ bank was one of the banks doing deals in Iraq and were going to be one of the participating banks when the RV (Re-valuation) happened. I asked if that was accurate?
MZ: The account rep lowered his voice a bit, smiled at me and said “Yes, they are going to be one of the participating banks when it happens but I would need to have an account in order to redeem” I asked him if I opened a account today would it help with the process, and would this branch be where I would be exchanging? He said “Yes and No” Yes I could bring in my currencies here…but they would have to send them to a branch in a different city to verify the currencies are legitimate.
MZ: I asked if I could just drive to that branch and redeem it myself there and he said “Absolutely” and that way you do not have to let your currency out of your sight.
MZ: So what I call a redeeming bank or redemption center- are locations like that one that are set up to verify and exchange it right there in front of you with trained personnel. RC’s are banking facilities specifically set up with specially trained staff to verify your currency in front of you so you do not have to let it out of your sight.
Member: Sure have been a lot of bank branch closings in my area.
Member: Banks cutting jobs ... RV? FedNow? Impending SM crash? Failures? or QFS?
Member: Frank saying he may see us tomorrow because of something coming out… we shall see
Member: I'm in Canada. A family member sent me thus message. Do you think this us part of the RV or Gesara???? Just found out a native we know , received a settlement check of $150000 and more to come.
Member: Yes as my Native American friend says, everything breaks loose on January 1, and she loves even number years! 2024 is going to epic as you said!
Member: Take a look at the U.S.Debt clock ( click the top right) look at the bottom right 10 dollar bill, it’s peeled back showing a silver coin. Maybe it’s part of the coinage for our new currency?.
Member: I was in a Chase bank last week and noticed an entrance for private banking services. In the bank I noticed cubicles and training ongoing.
MZ: Clearly they are preparing.
Member: Is the Iraq 2023 budget being paid now?
MZ: I hear it’s in the process of being paid out- the question is –rate? I was hoping that I would get a clue from contractor friends in Iraq. But he is an Australian working in Iraq and has gone home for the holiday week. Many of the facilities there have shut down this week.
Member: I wonder what the delay is or why things are taking so long?
Member: Maybe waiting for Jan1?
Member: IMO- The RV is not late. It’s part of the military operation. It is one of the dominoes that will fall in its order in its time. It goes when they say go.
Member: What does you guy say Mark?
MZ: My gut feels it will be at the bridge of 2023 to the first of January.
MZ: Markets often sell the first week of a new year, as many exit after the tax year
MZ: No Podcast tonight or tomorrow night. News has been slow this holiday week. And the mods and I need a break. If any breaking news happens I can still come back or release a recorded message.
Member: Thanks Mark and mods….enjoy the time off. You deserve it.
Member: Thank you for all of your hard work, Mark! Happy New Year, and many blessings, to you and your family!
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Mod: MarkZ "Back To Basics" Pre-Recorded Call" for Newbies 10-19-2022 ) https://www.youtube.com/watch?v=37oILmAlptM
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GUYS. NO EVENING PODCAST TONIGHT OR TOMORROW NIGHT UNLESS BREAKING NEWS HAPPENS! THANKS
Note from PDK: Please listen to the replay for all the details and entire stream….I do not transcribe political opinions, divisive social commentary, medical opinions or many guests on this stream……just RV/currency related topics.
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.