The closer we get to this monetary reform, much more will be revealed...So much is already being revealed and put in print but as we get closer you will see so much more.
[Iraqi banks] are having a stampede of people going in because of the understanding of the monetary reform education. Direct deposit accounts were opened for the citizens that didn't have any accounts...they opened up about 1 million...and they're not done yet...
These bank accounts are extremely important for the monetary reform...These accounts are for payments that will be made to the citizens...salaries given to the citizens, for any retirement salaries given...for HCL payments... What they are doing is extremely important for the monetary reform process...
The evidence for the monetary reform was perfectly set up at the start of 2024. If that's the case, what happened?
Ka-ka happens. Things happen. It is what it is. What...I'm very very excited about, it's not about rumors..Iran stealing...lies...our government here in the United States of America...Right now what it is, is they are announcing the monetary reform to the Iraqi citizens. There talking about the float and the reason why they're talking about the float IMO is because that's the next phase...
From the dollar to the dinar... Iraqis complain about the deterioration of their salaries
“I have been waiting for about four months to receive my full salary from the bank, but every time I receive half of it and have to wait two or three weeks until I receive another payment,” says Sakar Mustafa, an Iraqi journalist who works independently with international institutions.
She explains to “ Raise Your Voice ” that “her salary ranges between 1,500 and 2,000 US dollars, depending on the work she performs, but what the bank disburses to her does not exceed 1,000 dollars, which is a very small amount that is not sufficient for all of her monthly expenses, represented by house rent and school tuition.” Bills and transportation.
“I spoke to the bank, and they informed me that they had received instructions to disburse salaries according to their capabilities, and currently they do not have the full liquidity to disburse it in full in dollars,” Mustafa continues.
She confirms that "her salary either arrives incomplete, or is transferred to the Iraqi dinar at the official rate set by the government (1,320 dinars per dollar), at a time when the exchange rate in the parallel market is 1,520 dinars per dollar."
On December 31, the Central Bank of Iraq announced the identification of the categories that receive their transfers in US dollars, which are: diplomatic missions, all international organizations and agencies operating in Iraq, and non-governmental civil society organizations registered in the General Secretariat of the Council of Ministers, in the event that the foreign donor stipulates that they pay sums of money. Foreign transfers received in the dollar currency inside Iraq.
In addition to government contracts in effect in the US dollar currency, ongoing contracts for grants, loans, and foreign agreements, and 40% of the remittances received by Iraqi exporters resulting from their exports abroad.
Since the end of 2022, Iraq has been witnessing an exchange rate crisis, represented by the fluctuation of dinar prices against the dollar and other foreign currencies, and inflation in the prices of goods and services in local markets.
The crisis deepened in 2023, with a significant decline in the price of the dinar against the dollar in the parallel market.
One of the solutions developed by the government is to force merchants to deal in the Iraqi dinar in their local transactions, so that the Central Bank of Iraq adopted the electronic platform in the currency auction to limit the smuggling of the dollar from the country and increase the value of the dinar.
The Central Bank activated the second phase of adopting the platform, with the aim of subjecting individual financial transfers and credit cards, activating electronic payment, reducing dependence on cash, and allowing Iraqi banks to import all currencies, including the dollar, to meet the needs of their customers.
But these solutions did not end the crisis in salaries for Iraqi employees working with foreign institutions.
"arbitrary action"
From the beginning of last December until the 20th of December, Iraqi banks, both governmental and private, have imported 255 million US dollars to meet the needs of their customers, according to the latest Central Bank statistics, published by the official news agency .
Economist Hammam Al-Shamaa told “Raise Your Voice,” saying, “Reducing the exchange rate in the parallel market to the official exchange rate will not be achieved in the short or even long term. There are many obstacles that prevent this.”
He wonders: “Does Iraq have enough foreign currencies and dollars if oil prices fall? Can it pump into the markets an amount of dollars that would lead to equality or matching between the official and parallel prices?”
“The answers are left to the future,” adds Al-Shamaa, who considered that “the Central Bank’s insistence on dealing with employee salaries paid in dollars based on the official exchange rate is an arbitrary and unfair measure for employees who receive US currency. This measure will not have a significant impact on the markets, as there will be a decline.” In remittances, resort to banking offices or black money transfers.”
Economist Nabil Jabbar Al-Tamimi points out that “there is a defect in the Central Bank’s dealings with external transfers from oil companies and institutions, media institutions, diplomatic bodies and oil companies, as well as other employee beneficiaries, who receive their salaries in dollars, and complain about the large difference between the price of... Official and parallel exchange if their salaries are converted into dinars.”
He told “Raise Your Voice”: “The cases you mentioned are exceptional, and are not an excuse to stop the campaign to end dollarization represented by the excessive use of the dollar in the local market, and the fate of the dollar exchange rate in the end is to stabilize at the official rate or something close to it within months.”
At the same time, Al-Tamimi believes that “the public interest requires acceptance of the state’s decisions, despite their problems.” link
The Iraqi dinar is not on the Forex market, yet. The Iraqi dinar is an exotic currency, as is the Vietnam dong... Currencies are traded in pairs on the Forex Market.
The 3 main types... majors, minors and exotics...The more liquid an asset the easier and more efficient it is to turn it back into cash. Major currency pairs have the highest trading volume... Exotic currencies...are not traded that often. There is little technical analysis or data available to support trading decisions for exotic currencies...
People have been asking, 'Why is the Iraqi dinar one rate in Iraq and a different rate online...?' There are two major reasons for the different rates. 1. The Iraqi government imposes strict currency controls to limit the flow of dinars out of the country. This creates a dual exchange rate system: Official rate - fixed rate imposed by the Central Bank of Iraq...Market Rate - Freely fluctuating rate is used for private transactions and most imports... 2. The IQD is not widely traded internationally ...Limited demand for dinars outside Iraq weakens its value on
the international market. But...they are now saying speculation about a potential revaluation of the Iraqi dinar sometimes influences online prices... Speculation investors, that's us. We are causing fluctuations in the currency value...
In January 2024 foreign currencies will no longer be allowed inside Iraq and any violations will be criminalized. The Iraqi dinar will be used for all transitions.
Why are we seeing reports of a meeting with the IMF in Jordan and a meeting with the Department of the Treasury and the US Federal Reserve in Dubai? ...The meeting with the IMF had to do with the IMF staff team helping the Iraqi authorities reform the banking system...
This meeting more than any other tells us Iraq may be preparing to join the global financial network, aka Forex Market...Here's the bottom line. Iraq has never really been on the Forex market. These reports IMPLY Iraq is headed in the direction of international currency inclusion while using its own currency for transactions within th country beginning January 1, 2024.
A drone attack on a military base hosting US troops near Erbil in northern Iraq...caused casualties...Iran-backed militants claimed responsibility for the attacks...The attacks occurred on December 25th.
Inflation...political stability... balance of payment...national debt...recession - each of these seven categories helps determine the currency rate of any country...We want to wish each of you a happy holiday..
Article: "Iraq links Baghdad US embassy attackers to security services"
The attacks against US forces have continued. The Iraqi government said several people who are alleged to have attacked the US embassy in Iraq last week have links to the country security services...
Article: "Iraqi council elections: Almost 17 million voters head to polls on Monday"
Iraqis have begun voting for the first time in a decade to select new provincial council members who in turn will appoint governors...results are expected to be announced on Tuesday.
Iraq cuts oil production by 223,000 barrels per day voluntarily. Iraq is over 90% dependent on oil revenue and oil prices, therefore when OPEC speaks we listen and we listen very carefully, almost as carefully as when the CBI makes and announcement.
US Military Strike in Baghdad Kills Hezbollah al-Nujaba Commander
On Thursday, January 4, a US military strike in Baghdad resulted in the death of a commander from the pro-Iranian Shiite movement Hezbollah al-Nujaba, a part of the Hashd al-Shaabi, according to the ex-paramilitary force. The US authorities, suspected to be behind the attack, have indicated that the strike was a response to ongoing attacks by Hezbollah al-Nujaba on US forces in Iraq. Another individual was also claimed in the strike that targeted the commander’s vehicle.
US Military Actions in Baghdad
The identity of the commander killed in the strike has not been disclosed as of now. The attack also resulted in seven other members being wounded. This US action comes amid heightened regional tensions, especially after the war between US ally Israel and Iran-backed Hamas militants in the Gaza Strip. Reports suggest that the strike was possibly carried out by a drone.
Previous Attacks and Repercussions
Previously, a US military strike claimed the life of Saleh Arouri, the deputy political head of Hamas, and a key figure in the group’s military wing. Arouri, along with six other Hamas members in Lebanon, was targeted in a strike suspected to have been carried out by a drone. Israel, believed to be responsible for the attack, has seen some of its politicians praising the assassination. Experts have noted that while such targeted assassinations can provide temporary advantages, their impact is often short-lived as new leaders emerge to fill the vacuum.
Ongoing Tensions and Future Implications
The strike signifies the continuation of tensions and military actions between the US and groups in Iraq aligned with Iran. It reflects the complex security dynamicsin the region and the US’s ongoing efforts to counter perceived threats to its forces. The Iraqi armed forces have held the US-led anti-IS coalition responsible for the attack. This incident has led to a surge in attacks against US targets in Syria and Iraq since mid-October, indicating a potential escalation of conflict in the near future.
Question: "Can you give us more details to some of us who don't quite understand the deletion of the zeros...?"
Here's where people get pissy because there's an article everybody keeps talking about, the study of the deletion of 3-zeros. Pay attention to the wording. It doesn't say anything at all about the exchange rate. It says clear as day, the deletion of the zeros are to remove the 3-zeros off the currency, the bank note. Nothing about the rate. The bank note...It's not complicated...The worst thing that can happen for us is those suckers turn around and delete the zeros and then change the exchange rate...I'm not saying they're going to do that, but it is an option...Most likely they're going to change the exchange rate in increments...
I think you're going to start seeing the dinar go up in increments. That's just my opinion and my feelings. As they continue to get their ducks in a row. Let's hope this happens...
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 effects 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.
