2023 was the year of preparation for the monetary reform to be revealed. We are now in that position. We are now in the position that the monetary reform is being revealed to the citizens of Iraq. One of the things that is happening, and I pray that it happens faster, is the value of the Iraqi dinar is going up every day causing the dollar to go down...down...down...
Once they reach a certain plateau that they're looking for then they're going to float the currency. That's why they've educated the citizens of Iraq about the float...
Question: "...Some of the banks I called said they're going to send them to another bank and inspect them and then bring them back?" What happens if the Brink truck as it's driving to the the other bank gets robbed? 'We will replace the dinar.' No you won't. You'll replace the value, which is ka-ka right now. Don't ever lose site of your dinars. I told you take pictures. You just need pictures of the front of your dinar not necessarily the back. The front has the batch number and the serial numbers. That's what's important.
Iran: Iraqi Restrictions On Controlling The Dollar Do Not Mean The End Of Trade Exchanges Between The Two Countries
Economy 01-03-2024 1,122 views Al-Sumaria News – Economy Member of the Iranian-Iraqi Chamber of Commerce, Hamid Hosseini, confirmed that the Iraqi Central Bank’s law to control the dollar and the announced restrictions do not mean the end of trade exchanges between the two countries or create problems in trade.
Hosseini said, in an interview with Tasnim News Agency, in reference to the recent measures of the Central Bank of Iraq to deal with foreign currencies: The restrictions imposed after the adoption of this law were in no way a new or unprecedented event in the face of Iranian-Iraqi trade, as they existed from Before in many ways.
He added: Naturally, this law made it difficult to exchange dollars in the markets of this country, which will naturally affect the process of commercial and international exchanges. These restrictions are very similar to the laws on buying and selling currencies in Iran and cannot be considered a complete ban on currency exchange.
A member of the Iranian-Iraqi Chamber of Commerce pointed to the consequences of applying this law on the foreign exchange process for Iranian merchants and businessmen in Iraq. He said: Nothing new will happen after this law, especially in a country like Iraq, where such issues can be easily resolved.
Of course, perhaps export and import expenditures will rise slightly for a short period of time and the business process will face some risks, but it is unlikely that there will be a major problem in trade exchanges.
Referring to the political developments and events in the region and their impact on similar restrictions, this economic activist added: Such issues are generally related to political situations, relations and regional tensions, especially since Iraq is always under pressure from the United States and is forced to surrender to the demands of the United States often.
Hosseini expressed his hope that the positive trend of foreign exchange and trade between Iran and Iraq would continue, and he said: In Iraq, many people still do not want to transfer, buy and sell dollars through financial and banking networks or letters of credit and the like, and Iraqi exchange offices are still the main agent. To exchange currencies in this country.
He continued: Given the circumstances that Iraq is going through, there has always been a way to buy and sell currencies in this country, and Iran can continue its trade exchanges with this country in different ways. There is no doubt that despite the adoption of the new law in this country, the window is open for foreign exchange between Iran and Iraq, and the export process must continue in this way.
He believed that Iranian businessmen and merchants should not worry too much about the consequences of the new Central Bank of Iraq law, because other countries such as Russia, Syria, Venezuela, and others also face similar problems, but they were able to solve them.
In conclusion, Hosseini stressed that the Iranian government and the Central Bank are taking effective steps in this regard by providing more support and solutions for export operations and currency exchange with Iraq. LINK
EXPECTATIONS THAT THE IRAQI DINAR WILL CONTINUE TO RECOVER AGAINST THE DOLLAR DURING THE NEW YEAR 2024
he Association of Iraqi Private Banks raised its optimism about the continued recovery of the Iraqi dinar against the dollar in the parallel market during the new year 2024, stressing that the recent actions of the Central Bank of Iraq contributed to this rise.
During the past three weeks, the Iraqi dinar witnessed a clear and gradual rise against the dollar, as the exchange rate in the parallel market reached an average of 1,500 dinars to the dollar, after recording a significant decline that reached 1,700 dinars to the dollar in the last quarter of 2023, while the monetary authorities seek Which set an official price for the dinar at 1,320 per dollar, to pursue those it describes as speculators and smugglers of hard currency.
The Association, which is one of the most prominent financial analysis institutions in the country, expected the exchange rate to continue to decline in the parallel market with the continued implementation of the central bank’s agreements with the Federal Bank and several countries to finance foreign trade.
Association advisor Samir Al-Nusairi said in a statement on Sunday evening, “The goals and tasks of the Central Bank focus on financial and banking reform, especially with regard to the transition from the cash economy to the digital economy through the development and deployment of electronic payment devices.”
He praised “the Central Bank’s negotiating efforts that lasted approximately 8 months with the US Treasury, the Federal Reserve Bank, and international banks, and resulted in agreements that allowed the entry of new currencies to deal with foreign transfers, including the Chinese yuan, the UAE dirham, the Indian rupee, the euro, and the Turkish lira.”
He stressed that “these agreements were implemented successfully, which was reflected in the exchange rate and led to its decline.”
The clear improvement in the exchange rate of the Iraqi dinar against the dollar comes after statements by the US ambassador to Baghdad, Alina Romanowski, at the end of last month, in which she affirmed her country’s commitment to providing “US dollar services to Iraq,” in reference to financing the Central Bank of Iraq with its needs of the American currency.
Romanowski confirmed that “many Iraqi banks have now formed relationships with international banks for the first time, which is a positive step in making progress in reforming the banking sector,” adding: “We will continue to provide US dollar services to Iraq in the interest of economic stability.”
For his part, financial expert Riyad Allawi said, “The recovery of the dinar comes due to the decline in demand for the dollar in the parallel market by merchants and importers in general.”
Allawi added to Al-Araby Al-Jadeed that “Iraq’s signing agreements with Turkey, Iran, and China to import in the local currency, in addition to adopting the euro, is a major reason for this recovery,” expecting that “the recovery will continue in the first half of this year 2024, bringing the exchange rate to the market.” The equivalent is 1,400 dinars to one dollar.
The financial expert considered that “the Central Bank of Iraq is moving towards a package of new measures that will contribute to retailers in the car and furniture sectors, for example, abandoning the culture of dealing in dollars, and the continued arrest of hard currency speculation networks is very important.”
He stressed that “the decline in the value of the Syrian and Lebanese currencies in the recent period against the dollar is due to the decline in the arrival of the dollar from the Iraqi market to these two countries as a result of the tightening of transfer and smuggling procedures as well.”
"Dollar Traps" Are Coming To An End. Parliament Reveals Those Involved In The Fluctuation Of The Parallel Market - Urgent
Baghdad Today - Baghdad Today, Wednesday (January 3, 2024), the Parliamentary Economy Committee revealed those involved in the fluctuation of the parallel market in Iraq, while indicating that the "dollar traps" are coming to an end.
A member of the committee, MP Yasser Al-Husseini, told "Baghdad Today", "We are closely following the file of the fluctuation of the parallel market in Iraq, especially after moving to the electronic platform prepared by the Central Bank to regulate dollar liquidity and prevent smuggling, but on the other hand, there are those who have been reconciled to beating with any organization because it loses its ability to smuggle and manipulate, which drives it to try to confuse the markets by various means."
He added, "Despite the fluctuation in prices, the coming days will bring greater reassurance to traders and all dealers in the capital market in terms of the stability of the exchange rate at good levels, especially with the control measures of the Central Bank, which we hope will increase in its axes."
Al-Husseini referred to what he called dollar traps - in reference to the attempt by some to manipulate exchange rates in the parallel market - is nearing completion, pointing out that "there are corrupt people who live on the chaos of the market in addition to the trade of contraband, including drugs, which are also a competitor in the parallel market," stressing that "the measures of the Central Bank will combat the most important liquidity threads for them."
He continued, "The stability of the dollar exchange rate will push to reduce prices in the markets and this needs some time, pointing out that, the government's entry into the file of securing materials in the markets will push to a wave of greater decline in the coming period.
Since the announcement of raising the value of the Iraqi dinar against the dollar by the Central Bank, the local markets are witnessing trading other than the official rate of the dollar with a difference of sometimes up to 30 points, which necessitated the intervention of the government and the Central Bank with measures to reduce this phenomenon, but to no avail so far, as the exchange rate of the dollar remained high to more than 150 thousand dinars per 100 dollars in the markets and banks of Baghdad and the provinces.
Wciappetta:I wonder if the effort to bring to heel the market rate stalls, will this force the CBI to make the next exchange rate adjustment to near 1000 as a dual effort; one to get ready for lower denomination introduction and two, to further prime the monetary pump in its effort to stabilize the market rate? Perhaps not their first thought but it's in the tool box.
