...2023 was an outstanding year for progress in the currency monetary reforms in Iraq. I could hardly believe that so much was done in such a short period of time, if you compare the other 20 years since the 2003 invasion. In today’s news we read multiple articles talking about all this progress and how they have so far managed to get the parallel rate from 160,000 to 145,000. This is very close to the official CBI rate of 132,000, but not yet there as they expected. My CBI contact is telling me they still want to bring it closer and more stable...It’s all very good signs but now there yet.
My CBI contact tells me they do need it closer and stable and when it does, they will trigger another CBI official rate revaluation. But this will still be the program rate not what we want. We need to keep our eyes on the CBI “official” rate. When this rate drops again, I was told they will move ahead on the project to delete the zeros.
They want to accomplish this in the month of January and are optimistic they can. So, this is the very good news for today to kick off the new year.
The National Bank of Kuwait increases its stake in the Credit Bank of Iraq
The National Bank of Kuwait decided to increase its share in the capital of the Iraqi Credit Bank, by adding 50 billion dinars.
The Central Bank of Iraq agreed for the National Bank of Kuwait to pay an amount of 50 billion dinars as a first payment in order to bring the bank’s capital to 400 billion dinars.
According to a statement issued by the Credit Bank of Iraq, the National Bank of Kuwait paid an amount of 50 billion dinars on December 27, 2023, as a first payment under the capital increase account, on its own behalf and on behalf of all shareholders.
This increase comes within the framework of the National Bank of Kuwait’s efforts to strengthen its position in the Iraqi market and support the growth process of the Credit Bank of Iraq.
It is noteworthy that the National Bank of Kuwait owns 91% of the Iraqi Credit Bank.
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
