Within A Week... The Iraqi Central Bank’s Sales Exceed One Billion Dollars
Economy News – Baghdad The Central Bank of Iraq's total sales of hard currency in US dollars during the past week recorded more than one billion dollars.
Last week, for the three days in which the auction was opened, the Central Bank sold 1 billion, 90 million, 529,470 dollars, at a daily rate of 218 million, 105 million, and 894 dollars, higher than what it recorded last week, which amounted to 634 million, 373 thousand. And $298.
The highest dollar sales were on Thursday, when sales amounted to 229 million, 063 thousand and 145 dollars, while the lowest sales were on Sunday, when sales amounted to 210 million, 253 thousand and 270 dollars.
As for foreign remittance sales during the past week, they amounted to 998 million, 93 thousand, and 470 dollars, an increase of 90% compared to cash sales, which amounted to 101 million, 690 thousand dollars.
The sales were in the form of cash and transfers abroad to finance foreign trade, while the selling price of documentary credits and international settlements for electronic cards reached 1,305 dinars per dollar, while the selling price of transfers abroad and the cash selling price reached 1,310 dinars per dollar.
Question: "Once the black [market] rate gets close to the official rate of 1320 will the CBI wait for a while to move to 1000 to be sure it's stable or will it quickly make the next move to 1000?"
Our desire is to see another exchange rate movement which would be somewhere between let's say 1,200 or 1,000 to 1. We believe that's what will happen next. But I don't think we'll get to see it because of the speed things are happening right now...
You are involved in this dinar investment. The next step is the most crucial. It's the most dangerous for you...I'm concerned for you...I wish you well. I've already prepared you. I've already told you what to do...
Question: " Is the US government placing a hold on the currency revaluation to keep people from becoming wealthy?"
No, our government has nothing to do with the monetary reform of the Central Bank of Iraq...We did everything possible to make them modern and they are. But can we tell them, Okay go ahead do it now?
Sudanese, The Government Took The Path Of Radical Reforms And Confronting The Waste Of Public Money
The Prime Minister, Muhammad Shiaa Al-Sudani, confirmed that the government had launched its program, which includes a vision for the future of a united, strong, independent Iraq, while indicating that it had followed the path of radical reforms and aimed to confront the waste of public money.
The Prime Minister said, while attending the memorial ceremony on the occasion of the anniversary of the martyrdom of Mr. Muhammad Baqir al-Hakim, “We are determined to follow the path of reconstruction and reform and raise the standard of living and services for citizens throughout Iraq.”
He added, “The government launched its program, which includes a vision for a strong, unified Iraq’s future.” Independent, stable and prosperous, adding: We followed the path of radical reforms that address long-term needs, and we aimed to confront the waste of public money, and we kept in mind the infrastructure, in the economy, services, and financial and banking infrastructure, to move towards development and create opportunities for current and future generations.
Tales from an RV/GCR Road Warrior: My Personal ‘Exchange’ Stories
On January 12, 2024 By Awake-In-3D
I have been a card-carrying member of GCR Land for 13 years as of last month when I purchased my first IQD.
I started out as an avid follower and consumer of the Guru News Network (GNN). Over time, I listened to every RV/GCR conference call, read every internet news site, and joined every online chatroom I could find.
Soon, I found myself realizing that I was a fully addicted GCR Hopium junkie.
The Genesis of an RV/GCR Road Warrior
After a cacophony of daily “It’s happening” and “It’s done” GNN reports peaked around 2013, I took my first steps from being only an RV/GCR observer to becoming a more proactive GCR Land participant.
I started asking a lot of questions.
Believing that asking rational and logical questions (my nature being an experienced Engineer and Entrepreneur) would lead me to meaningful answers about the constant delays of my RV/GCR exchange/redemption, I was deeply disappointed.
Instead of getting answers, I was quickly the subject of ridicule and disdain within the GNN landscape of the time. I was labeled a cabal shill, CIA infiltrator, and worse. Soon I was an outcast and banned from nearly every online community of the day.
Then I found a few private member chat rooms where my probing questions were accepted by like-minded folks who were also questioning the GNN narratives. Yet still no answers came forth.
So, I began to faithfully dig and research all things relevant to how currency exchange rates are determined, the global financial system infrastructure, and fundamental economic principles and my eyes were opened.
Then I started to write about what I was learning under the pseudonym of Awake-In-3D.
As my posts began finding their way into mainstream GCR Land news outlets, people more deeply involved in behind-the-scenes RV/GCR took notice and began to contact me privately and I started getting plausible and realistic answers to many of my initial questions.
And this led to even more questions – so I kept on digging and writing.
Eventually, I found myself invited to private exchanges and redemption opportunities for my growing collection of currencies and bonds. I thought I finally made a breakthrough, but little did I realize at the time that I was only just beginning my RV/GCR journey.
Exchange Stories: Brokers and Bankers and Lawyers Oh My!
I tend to write long-form articles, but I’ll keep this short.
My first exchange scenarios began with different lawyers with “top level connections” to currency and bond (assets) Buyers. Centered in Reno, Los Angeles, and Salt Lake City, I was instructed to send my assets to them under a contract to transact.
The contracts were all in the usual legal language I recognized from my professional business experience even offering insured/bonded transport of my assets. I actually considered doing this. Afterall, everything looked totally legit.
It was only after I offered to personally transport my assets, and meet the parties involved directly, did I run into doubt.
The Reno and Salt Lake City lawyers suddenly had excuses for why my request was not possible. Hmmmm…
But the LA lawyer was open to a private meet so I packed up my car and drove cross-country from Chicago to LA. This was showing progress!
The next day, being only 3 hours from LA, the private meet-and-greet with the Buyer started getting delayed. Hmmmm…
The meeting never took place and it was a wasted trip. I was told the Buyer had to catch a last-minute flight to Hong Kong, but the attorney said I could leave my assets in their office and the transaction would be executed when the Buyer returned. Hmmmm…
No thanks!
Some months later, I was contacted by a broker representing one of the Asian Elder Families and I was invited to participate in and asset exchange to take place in Singapore as part of the initial liquidity injection into the broader GCR funding infrastructure.
Contracts were offered containing terms and asset pricing. Also included were Humanitarian and Economic Project participation stipulations. Now we’re talking! Only this time, I wasn’t going to fly all the way to Singapore just to face another wasted trip.
So, I offered to have a 3rd-party, legal fiduciary, approved my both myself and the Buyer act as a Guarantor and transporter of the assets (similar to an Escrow facility) once the funds for the transaction were verified (proof of funds/POF) by the Fiduciary.
This was deemed acceptable and the process began. I generated a list of serial numbers and Proof of Life (POL) photos of my assets while I was awaiting Proof of Funds documentation from the Buyer and HSBC Bank.
I withheld providing my serial numbers, etc. until I had POF letter from the bank. Day after day went by without the POF letter but was told it would be forthcoming.
Becoming impatient, I informed the broker that I was going to withdraw from the deal if the POF was not provided within the next 5 business days.
Near the end of the 5-day period, I was offered a different contract and a sum of $10,000 cash up front to remain in the deal – since the Buyer needed more time. I said no because I would have lost the Right of Refusal with the Buyer if I signed the new Agreement.
It turned out that the broker was structuring a Flipper Deal on behalf of the Buyer. The Buyer was under the impression that a private RV/GCR exchange would occur on his side within 30 days under which he was waiting for POF from his Buyer’s bank.
The broker never made clear to me up front that this was an asset Flip deal.
I have several additional such stories over the early years, but I need not elaborate further. Suffice it to say, none of them have come to fruition as of today.
All around these transactions, there were bankers involved in deals. Legitimate folks with positions and names I could verify. While a few of the lawyer deals smelled of deception, most were put forth with good faith under lawful circumstances.
Bankers are just the guys in the middle of all of this. Some are very aware of the state-of-play in Our GCR (not the bad guy reset). They want the business.
After all, they’re bankers. Many get excited and tend to get overzealous in their predictions over what is going on in the bigger picture.
Most times, I wish they would just admit that they don’t know as much as they think they do.
I have also come across my share of pure criminals and con artists in my GCR Road Warrior journey thus far. Whenever there’s a lot of cash involved, there are always sharks in the water.
For the bulk of those early experiences, I fully believe the RV/GCR is real, and since those days, I have come to learn a much more and forge a greater sphere of connections in the process – further strengthening my support for the RV/GCR event forthcoming.
I also know that the Bad Guy Reset plan is real.
Additionally, I am highly aware that quite a few of the scenarios, accepted as truths, surrounding Our RV/GCR are exaggerated at best and pure myth in the worst cases.
But this is also to be expected in such a transformational, epic financial event.
Yet the greatest thing I have learned so far is, no one knows when the RV/GCR will actually occur or exactly how it will unfold.
Liberating the dinar from the official rate... Obstacles and solutions
1/13/2024
With the return of fluctuations in the dinar exchange rates, there is renewed talk about the necessity of getting rid of the “official price” with the aim of reducing the difference with the price in the parallel market, by subjecting the local currency to global supply and demand, similar to other countries
But many obstacles stand in the way of this step, among them “ The unilateralism of the Iraqi economy, which relies on oil and government revenues, and the absence of correspondent banks in the dinar currency, according to specialists, also called for taking other possible solutions, such as “deleting the zeros” from the currency, and withdrawing the cash mass from citizens and transferring it to banks.
Mazhar Muhammad Salih, financial advisor to the Prime Minister, says, “The Iraqi dinar’s exchange rate follows a system of fixed exchange rates, and that the process of approving the exchange rate is one of the monetary policy tasks of the Central Bank of Iraq as it is the independent body, especially since Iraq depends primarily on oil sources that provide... Foreign currency, and therefore oil revenues are transferred to the Central Bank of Iraq, and reserves follow the exchange mechanism between the dinar and the dollar, given that the Central Bank is the source of exchange between them.”
The dollar exchange rates in the local market witnessed great fluctuation during the past days, as it suddenly decreased to 148 thousand dinars per 100 dollars, and quickly rose again to 150 thousand dinars, and then continued to fluctuate until it reached 154 thousand dinars per 100 dollars, after its price was approaching... About 157 thousand dinars.
Saleh adds, “The balance and stability of the price in flexible exchange systems requires a financial and banking market, in which interest rates play a major role in the inflows and outflows of foreign currency, and this is something that is not available in Iraq, and the mono-economy is dependent on the inflows of foreign currency.” On government oil revenues, and here the forces of supply and demand are inconsistent with the unilateralism of the economy.”
He continues, "The economy is sometimes exposed to a large deficit in the current account and the balance of payments, and the general budget is also exposed to a deficit. Here loans are resorted to and governments are forced to reduce the national currency until foreign currency becomes expensive. This is called financing from inflation, and despite the fact that This conflicts with the policy of the Central Bank, but is done in consultation with monetary and fiscal policies.”
He points out that “the function of the central bank in general is to maintain the exchange rate and its stability for a long period, but this relates to the nature of the current account and the balance of payments, and whether there is a surplus or a long-term or stable deficit, as well as the nature of the budget, is it expansionary or contractionary, so the The issue is not easy, as all we need in the exchange rate is a circle of consultation and communication between monetary and financial policies to maintain its stability.”
It is noteworthy that since the beginning of the exchange rate crisis more than two years ago, many options have been put forward to control it, including printing new denominations of cash, including 100 thousand dinars, or deleting three zeros to control the rise in the value of numbers in monetary transactions.
Since the 1990s, and during the imposition of the economic blockade on it, Iraq has suffered from significant inflation in the currency, which prompted the previous regime to go to print the currency locally, and after the year 2003, the previous currency was destroyed and new denominations were issued, and its exchange rate against the dollar was fixed, by decree. From the civil governor of Iraq at the time, Paul Bremer, who revealed the shape of the new currency and its exchange rate against the dollar.
For his part, economic expert Nasser Al-Kinani explains, “With regard to the fluctuation of the dinar, the central bank was selling the dinar for 1,118 per dollar, and then it changed since the arrival of former Prime Minister Mustafa Al-Kadhimi to power and the appearance of the white paper, as its price rose and became 1,450 dinars, in addition to This caused the Iraqi dinar to rise until it currently reached 1,530 dinars per dollar in the local market, but despite this, solutions can be developed for this problem.”
He explains that "the solutions revolve around reprinting the currency again and zeroing it, especially if the printing process is accompanied by the process of retrieving the money stored inside homes to the banks. Hence, it is possible to stabilize the Iraqi dinar by giving the banks a percentage for each citizen who owns an account or opens an account within the bank, for example, 10 percent, which would be 10 percent." As a deposit for the citizen inside the bank.”
He continues, "The above steps will lead to solving the import issue that the government is suffering from now, and it is trying to control it to limit the smuggling process. Stabilizing the currency and revitalizing local industry and agriculture will, in general, lead to solving all economic and currency problems."
According to the Central Bank of Iraq website, Iraq includes 80 operating banks, including 62 local banks and 18 banks that are branches of foreign banks.
It is noteworthy that the Iraqi banking sector is neglected by citizens who have lost confidence in it, and according to World Bank figures issued last year, only 23 percent of Iraqi families have an account in a financial institution, which is a percentage among the lowest in the Arab world, especially since the owners of those Accountants are state employees whose salaries are distributed to public banks at the end of each month, but these salaries also do not remain in the accounts for long, as queues quickly form in front of banks from employees who withdraw their salaries in cash and prefer to keep them at home.
For his part, financial and economic expert Mustafa Akram Hantoush explains, “The local Iraqi currency is printed by the state and gives its value in exchange for other currencies or gold, that is, currencies or metals in the global supply and demand market.”
Hantoush points out, “The currencies that are exposed to the supply and demand market are currencies that have countries that have correspondent banks for their currencies, for example the dollar. There are banks that correspond in dollars so that the whole world receives and trades them, and therefore such a currency is considered a flexible currency with variable prices.”
He continues, "The Iraqi dinar had correspondent banks in a global currency that was dealt with in the field of global trade, and here the demand for it will become higher and the value of the dinar will rise. However, Iraq as a country does not currently have correspondent banks, so the national currency it owns is a local currency and is not subject to supply and demand." Global, as it is a currency issued for other currencies, and the process in it is fixed and does not rise to be a global process.”
It is noteworthy that Washington entered into the crisis of dollar smuggling last year, and Iraq was subjected to the global SWIFT system, which created a gap between the parallel and official market, and increased the loss of confidence in Iraqi banks, as dozens were subjected to American and Iraqi sanctions without processing depositors’ funds, in addition to the involvement of... Most banks are currently engaged in smuggling operations, according to what the US Treasury Department confirmed.