“Immature decision”… Iran questions the possibility of Iraq implementing foreign currency restrictions, 4 JAN

“Immature decision”… Iran questions the possibility of Iraq implementing foreign currency restrictions

Shafaq News/ Member of the Board of Directors of the Joint Iranian-Iraqi Chamber of Commerce, Shaaban Foroutan, said on Tuesday that the Baghdad government’s decision to restrict the buying and selling of foreign currency in the country, and the restrictions that have been put in place, are immature and impractical.

Shaaban Fortoun said in a statement reported by Fars News Agency, and translated by Shafaq News Agency, regarding the approval of the new Iraqi government law regarding restrictions on the purchase and sale of currency in this country, this law is not considered a mature decision by Iraq because the political, governmental and administrative system in this country The country cannot limit the buying and selling of currency in this way.

He added: Of course, Iran may also face some problems in the export process at the beginning of implementing this law, but this problem can be solved with an appropriate solution, and it is not impossible.

Froten added, “There is no doubt that, given the governmental and administrative system in Iraq, solutions will soon be found for currency conversion because Iraqis do not have a great desire to use the banking system due to their tribal and ethnic beliefs and lifestyle.”

He referred to the good diplomacy of the (Iranian) government and the Central Bank, and said: Given the performance of the 13 (Iranian) government, we have always seen positive international and diplomatic movements and consultations by the Central Bank, and this time we can rely on this potential. The (Iranian) Central Bank has so far taken valuable measures in discussing facilitating currency exchanges with countries in the region, which I believe can provide a suitable platform for currency relations by engaging in this issue.”

Fortin saw the Iraqi government’s new law as “immature and ill-considered,” and said: “While we are witnessing such an immature decision by the Iraqis, we must send our experienced and capable employees in the Ministry of Foreign Affairs and the Central Bank, to this country in the form of a delegation,” So they can reduce restrictions and interact with the neighboring country.

He continued, of course, Iranian representatives have always shown that they have great strength in the field of diplomacy and can facilitate the export process to Iraq this time as well.

The Central Bank of Iraq specified the entities covered by receiving its external transfers in cash in the US dollar, as of January 2, 2024, and this included:

– All diplomatic missions, organizations and international agencies operating in Iraq.

– Non-governmental civil society organizations registered in the General Secretariat of the Council of Ministers, in the event that the foreign donor party stipulates that the amounts of incoming foreign transfers be paid in the dollar currency inside Iraq.

– Government contracts in effect in the US dollar, and ongoing contracts for grants, loans, and foreign agreements.

– 40% of the remittances received by Iraqi exporters resulting from their exports abroad.

The Central Bank of Iraq, according to a statement, stresses the implementation of the decisions of the Council of Ministers to prevent internal transactions in foreign currency and to enhance confidence in the Iraqi dinar.

shafaq.com

"RV UPDATE" BY PIMPY, 4 JAN

 Pimpy  

Question: "When you say, managed float, if it hits Forex tonight and comes out let's call it $0.22...if that thing shot up to $1.00 in 24 hours are they going to try to restrict it?"   There has to be more growth.  You would de-stabilize the economy.  They're just now getting on their feet.  The last thing you want to do is drop some huge exchange rate in their laps because it affects all businesses...there's a lot more involved.  I'm not saying it's not going to go up in value.   Obviously...I believe that it's gonna go up in value but I'm not a person that supports...we're gonna get a $3.22 rate.

  Question: "What's the difference between a dirty float and a managed float?"  You have a fixed rate like we have now... where they come out and say you get 1320 dinar for a dollar, fixed. 

 Then you have two types of floats...Free Float - that means a market determines the value no ifs, ands, or buts.  The market determines the value.  That's a free float.  A managed float is the same as a dirty float.  That means the Central Bank of Iraq will watch what happens in the free market, like Forex, but if it goes too far in one direction...then they intervene.  They'll do something to control the exchange rate to keep it from getting out of whack.

Iraqi Dinar🔥Iraqi Dinar RV Exchange Rates International Collaboration To...

The US Embassy urges Iraqis to own bank accounts, 4 JAN

The US Embassy urges Iraqis to own bank accounts

The US Embassy in Baghdad announced on Wednesday that Iraqis are among the lowest countries in the region in possessing bank accounts, urging them to possess these accounts.

The embassy stated in a publication, a copy of which was seen by NRT Arabic, entitled, “Did you know that less than a quarter of all Iraqi adults have an official bank account for the year 2021?”

She explained, “Modern banking services contribute to increasing foreign investment, providing loans to Iraqis, and protecting them from financial crimes, theft, and loss,” noting, “Informal money transfer services harm the local economy.”

The embassy continued, “According to the World Bank, in 2021, the percentage of Iraqis over the age of 15 who owned an account in a financial institution was only 18.57%. This represents one of the lowest rates in the Middle East and North Africa region, which averages about 53%.” .

She said, “Iraq’s reliance on cash and informal money transfer services is harmful to the economy because it reduces the opportunities for financial regulation necessary to convince prestigious international companies to operate in Iraq.”

The embassy added, “Over the past two years, the United States government has worked with Iraq to restore confidence in the banking sector and reform transfer mechanisms related to imports financed by Iraqi banks. The new reforms encourage the correct registration of companies and increase the use of official banking outlets.”

She explained, “According to the Central Bank of Iraq, the total deposits in Iraqi commercial banks have increased in the past two years by approximately 37%, and from 2021 to 2022, the total number of accounts in Iraqi banks has increased by 31%.”

nrttv.com

"RV UPDATE" BY MARKZ, 4 JAN

  MarkZ  

 [via PDK] 

 ...with the government forcing the use of dinar only from now on…they need to have a higher value…or these people who have the green light to come in and start building are not coming…I am being told from my folks on the street over there to watch in the coming days or weeks for the rate of dinar on the prices of goods to change. To me this signals there is going to be a substantial change. And they told us they are going to implement their economic reforms in the month of January. And the exchange rate is a key issue in those.

  ...I have ZERO doubt that we are going to reset and the Iraqi dinar, Vietnamese dong, and others are going to do exceptionally well…It’s all in our history.

 A lot of banking contacts are thinking we will see solid movement by the second…today on the first is a holiday and they are consolidating and moving things together…meaning possible announcements...There is a lot of fantastic chatter on what is going to. happen in the next 24 hours or so….

Iraqi Dinar🔥Iraqi Dinar Exchange Rates Systems Fixed Today 2024🔥iraqi di...

Al-Fateh rules out America resorting to imposing sanctions on Iraq, 4 JAN

Al-Fateh rules out America resorting to imposing sanctions on Iraq

Information / Baghdad…
On Wednesday, Ali Al-Fatlawi, a member of the Al-Fatah Alliance, ruled out America’s intention to impose economic sanctions on Iraq, pointing out that Washington is benefiting from the oil file and its sales and considers it its trump card.

Al-Fatlawi told Al-Maalouma, “America benefits from Iraq through the energy and oil issue, which is its trump card that it seizes from the Iraqi people, as Iraq does not have economic sovereignty.”

He added, “The lack of this sovereignty is due to Washington’s control over the oil revenues that are transferred to the US Federal Bank. Therefore, Washington, despite its control over these amounts, seeks to keep this card and not stand against Iraq economically.”

He stated that “the withdrawal of American forces from Iraq will be in the interest of Washington, in that it will preserve the lives of its forces, especially since the resistance is in the process of escalating its operations against the American occupier,” ruling out that America will resort to imposing sanctions on Iraq because it will lose the trump card represented by the oil file and revenues. His sales that he converted to.”

almaalomah.me