Iraq is going to use the dinar as of January 1st for commercial use, not the dollar. If they get rid of the dollar or they cease the auctions or they apply the delete the zeros project you can see where all of a sudden the parallel market/illegal market is going to go bye-bye.
They're working currently underway to end the so-called parallel markets. Article quote "The dollar will not be exchanged except at the rate approved by the Central Bank of Iraq.' The office exchange rate, give 10 to 20 points one side or the other of that 1310. Quote "The parallel markets will gradually decline and cease over the next few days.'I'm fairly certain if they apply a Real Effective Exchange rate, gradually is going to be a thing of the past. But we'll see how it works out.
The oil for the [??] Port hasn't left yet, salaries payment hasn't been paid yet. One thing leads to another, that leads to what? A Real Effective Exchange Rate. I think that's where we are are. I think that's pretty self-evident...
Shafaq News / The exchange rates of the US dollar against the Iraqi dinar decreased in Baghdad and Erbil, the capital of the Kurdistan Region (KRI), on Saturday, upon the closure of the stock exchange.
According to our correspondent, the dollar prices decreased with the closure of the main Al-Kifah and Al-Harithiya stock exchanges in Baghdad, reaching 151,250 IQD per $100. This is a decrease from the morning rate of 151,400 IQD per $100.
Moreover, the selling prices at currency exchange shops in local markets in Baghdad also decreased, with the selling price at 152,250 IQD per $100, while the buying price was at 150,250 IQD per $100.
In Erbil, the dollar also saw a decrease, with the selling price at 151,300 IQD per $100, and the buying price at 151,000 IQD per $100.
FIREFLY:Saying 9 Iraqi officials arrested for extreme wealth from corruption. FRANK: Sudani is going all out...this is amazing...You're busted!
FIREFLY: Sudani is on TV saying Iraq is on the verge of a transformation process.
FRANK: Every day Sudani is joining in the direction of your new exchange rate and your new national currency. He tells you there's a new direction occurring, yeah, from a program rate to an international rate.
FIREFLY: Television is showing Parliament Finance committee saying weare close to closing the parallel market and solving the dollar exchange rate. FRANK: How many ways can they tell them?
FIREFLY: Channel One TV is saying we just overtook and stopped the most dangerous and most corrupt organization that has ever stolen dinars. They stole over 1 trillion dinar...individuals arrested and groups have been stopped.
FRANK: The money was recovered...This is the phase of the monetary reform right now, to recover this type of money, to be in position to float internationally...
FIREFLY: TV showing the meeting in Davos with CBI governor, IMF, World Bank and Sudani have shortened the time on financial and banking reform. They're saying it's a shorter time expected now to complete the reforms .
FRANK: He is telling you they are very very close to giving you the new exchange rate with the lower denoms ...What happened at Davos put the monetary reform on light speed.
FIREFLY: On the economic news an economic specialist is saying Iraq needs to use a basket of currencies to add value to the dinar against the dollar.
FRANK: Sudani sends out another expert in the financial field that you know and trust...Exactly what we've been telling you. This is the next phase IOO... This is the most powerful part of the monetary reform education to you as an Iraqi citizen...The basket of currencies is required in order to add value to the Iraqi dinar.
They will never talk to you about something that needs to be done. They will talk to you about it after it is done. That is what is called the float and that is what is going to take you back to your RI. Your currency rate has to be reinstated back to $3.22 but that's the international side of Iraq...
The goal of the CBI is to reach the Real Effective Exchange Rate. In doing so it adds value to you even thought it's 1 to 1 in country...It will stay at 1 to 1 to the American dollar in Iraq but you will finally have your purchasing power that you have long waited for.
A number of obstacles hinder the work of the Central Bank… and the finger of blame is directed at the ministries, 28 JAN
Private|.. The economic expert, Safwan Qusay, confirmed on Saturday that the Central Bank of Iraq will not be able to control the exchange rate alone, without coordination and integration with the country’s financial policy, indicating that the federal ministries do not work with a single-individual mentality, and according to what the CentralBank desires.
Qusay told “Jarida”, “Despite the Central Bank’s measures to regulate the relationship with international financial transfer operations and the relationship of Iraqi banks with the international environment through international correspondents and improving the quality of banking service performance, the Central Bank alone will not be able to control the exchange rate, without coordination.” And integration with financial policy.”
He added, “The Ministry of Finance and the rest of the federal ministries do not work with a single-individual mentality, and according to what the Central Bank desires, such as controlling border crossings, imposing a fair tax policy, and the possibility of moving on to investigate economic events and prove them accounting according to an accounting system that can faithfully represent those events.” “.
He continued, “So far, working within the budget of items and within a government accounting system is still working within the monetary basis, and does not distinguish between revenues and liabilities, or expenses and assets, and the basic concepts of financial and accounting work, and the Central Bank has internal debts on the Ministry of Finance, But until now, the Ministry of Finance has not cleared these debts in a quick way to enhance the value of the Iraqi dinar.”
He continued, “Tracking the process of movement of goods from the origin to the consumer is still slow, and is outside the control of the Central Bank, in addition to the existence of a weak trade system, and that many merchants do not have bank accounts and tools for long-term commercial contracts, in addition to the insistence on cooperation.” With sanctioned countries and companies, even though the equipment imported from them has not been established. A specific mechanism has not been established for international financial transfer of these to countries or companies.”
He added, “The Iraqi citizen’s insistence on not trusting the banking system, with the Central Bank not having means to expand the circle of financial inclusion by stimulating Iraqi dinar holders, through interest placed on current accounts, or discounts accompanying credit card transactions, are all tools that are still needed.” To the extensive efforts of the Central Bank and Iraqi banks, especially the public ones, because they own 90 percent of the bank balance, in addition to the private banks that were surprised by the suspension of the currency selling window and the transformation of the electronic platform, and the lack of a sharing system between these banks with the financial information required by the global Soviet system.
He explained, “The US Federal Reserve is determined to clean the Iraqi economy of corrupt people and activate the quality of work of the Central Bank and Iraqi banks, because international investors have conditions that are consistent with the balance of the Iraqi economy, and prevent Iraqi banks from changing the type of money or laundering money, and there are many Iraqi banks that have begun investing.” in technology and information sharing to gain global acceptance.”
[via PDK] We have been told years ago that the most likely time- or easiest time for them to execute this was Saturday night or Sunday night between 11 pm and 3 AM est…. It does not have to be then…but I was told that was the easiest time for them technically.
Question: Has anyone verified the rate of $2.40 from the bank story from last night? MarkZ: Not yet…but a number of bankers are telling me that is exactly the rate they are seeing on screens right now. From $2.38 to $2.40
V ery quiet out of Iraq...and quiet on the banking side.
Question: Is this weekend a possibility? MarkZ: It is definitely a possibility.
Question: Do you think it is still possible that things go this month? MarkZ: I think it’s possible. I am hopeful we will at least get announcements this month …even if we have not yet made it into the banks.