What Is The Reason For The Difference In The Official And Parallel Dollar Exchange Rate? An Expert Identifies Problems, 4 FEB
An economic expert revealed the reason for the difference between the exchange rate of the official dollar and the parallel market in the country.
Abdul Rahman Al-Mashhadani told {Al-Furat News} agency, “The continuation of the difference between the official and parallel exchange rates requires a solution to basic problems. The problem is not foreign transfers, but the issue of continuing trade relations with the sanctioned countries, which constitute a large part of the demand for the dollar, in addition to preventing a number of... Traders are able to enter the platform and remain at the parallel price.”
He pointed out, "It is difficult for travelers to obtain the dollar. As long as these problems remain, the price difference between the official and parallel prices will remain."
Al-Mashhadani continued, "In any case, the dollar is now witnessing stability within these rates present in the market."
During the past few weeks, the Iraqi dinar witnessed a significant and gradual increase against the dollar, as the exchange rate in the parallel market reached an average of 1,500 dinars to the dollar or so, after recording a significant decline that reached 1,700 dinars to the dollar in the last quarter of 2023, while The monetary authorities, which set an official price for the dinar at 1,320 per dollar, are seeking to pursue those they describe as speculators and smugglers of hard currency. LINK
Quick Update – J.P. Morgan Selected to Run New Trade Bank in Iraq
Operating the bank the Trade Bank of Iraq will give banks access to the financial system of Iraq. Which has huge oil reserves foreign bank companies have not operated in the country since a policy of nationalization in the 1950’s and 1960’s.
What this means is that once Iraq join the Forex market, facilitated by increased foreign banking participation, it could potentially lead to a more streamlined process for currency exchanges.
This could benefit individuals holding IQD in America, providing them with more accessible channels for converting IQD into USD.
Since JP Morgan Chase is the leading bank. Iraq’s engagement with Western banks, facilitated by J.P. Morgan, will contribute to its increased integration into the global economy.
This integration’s positive effects on currency exchange mechanisms, will make it more seamless for individuals holding IQD. Iraq’s oil reserves make it an attractive market.
J.P. Morgan’s role could pave the way for Western banks to participate in financing projects related to Iraq’s oil industry and other sectors, fostering economic growth. Which will assist with the Oil & Gas Law/HCL. Which the citizens have been asking for.
Western banks, including J.P. Morgan, could provide financial support for the development of oil infrastructure projects in Iraq. This could include funding for exploration, drilling, production facilities, and transportation infrastructure.
So this development for Iraq is very important. I mean a report came out that 235 ATMs to be installed in Erbil. The infrastructure is intended to enable Kurdistan Regional Government (KRG) civil servants to receive their salaries electronically. About 80 service centers will be installed in Erbil to accommodate approximately 235 ATMs from various banks. This is monumental considering what Al-Alaq stated in regards to the monetary reform and the parallel market they he said would end very soon. Which implies there will only be one exchange rate. The black market rate will fade away. Which will give Iraqis purchasing power.
5:28 PM · Jan 31, 2024https://dinarevaluation.blogspot.com/2024/02/jpmorgan-to-run-new-trade-bank-in-iraq.html
Goodmorning to you all. Been a minute since I said that.
So while I am up I guess I will say something pertinent to the current situation we are facing at this crucial economic time.
I think what we are waiting for could happen in this order.
Evergrande Collapse Banking Crash Bank Runs Temporary Inflation Iraqi Dinar Reinstatement Iraq Joining BRICS The Gold Standard Standard Price Readjustment Digital Currency Revaluation XRP To The Moon Government Collapse
Something along those lines I guess given what is already on the table. We are in a unique moment in history so we should expect unconventional things to occur we have not seen before since the founding of this country. So you all need to have basic prepared in place.
Spokesman for the Commander-in-Chief: The US strikes are a violation of Iraqi sovereignty and a threat whose consequences will be dire
Baghdad / Nina / The spokesman for the Commander-in-Chief of the Armed Forces, Major General Yahya Rasul Abdullah, said: "The US strikes are a violation of Iraqi sovereignty and a threat whose consequences will be dire for security and stability."
He said in a statement: "The cities of Al-Qaim and the Iraqi border areas are subjected to air strikes by the United States of America, as these strikes come at a time when Iraq is striving to ensure the stability of the region."
He added: "These strikes are a violation of Iraqi sovereignty and undermine the efforts of the Iraqi government, and a threat that drags Iraq and the region to the unfortunate consequences, and its consequences will be dire for security and stability in Iraq and the region."
Kuwait receives oil revenue in its currency. Wrong. Kuwait is a member of OPEC and receive its oil revenue in US dollars just like Iraq. It's all about how you spend your profits. This is why the IMF encourages Iraq to create more streams of income...
Kuwait, is a country that successfully revalued its currency in the early 90s. Following the Gulf War Kuwait's economy was in ruins, yet within a short span the Kuwaiti dinar was reinstated as one of the most valuable currencies in the world... Unlike Iraq, Kuwait had a relatively stable political environment and a resilient economy backed by vast oil reserves.
The international community had faith in Kuwait's ability to rebuild and stabilize which facilitated the revaluation process...A stable political environment, a strong economy, a positive balance of trade and the trust of the international markets are all critical ingredients for successful revaluation. It's not a magic wand...
Dollars and gold.. Iraq at the best stage in its financial history – Sudanese Advisor, 4 FEB
Baghdad – 964 Mazhar Saleh, the financial advisor to the Prime Minister, confirmed that Iraq is in the best condition in its financial history, through the reserves it possesses of gold and foreign currencies, indicating that the growth of the gross domestic product is continuous and stable.
Saleh said, to the official agency, followed by the 964 Network , that “Iraq’s oil revenues will remain the main source of growth in the country’s foreign currency reserves, and those reserves will rise with the rise in the cycle of oil assets, all of which lead to an increase in indicators of the efficiency of foreign currency reserves, whether commercial efficiency.” (Covering the mentioned reserves for the number of import months for Iraq, which currently exceeds 15 months compared to the global standard of three months), or in covering the money supply, or by the fact that these foreign reserves in terms of percentage have the ability to cover the external debt services payable.”
He added, “The country’s oil revenues still provide 98% of the assets of the investment portfolio for the country’s foreign currency reserves, whether in monetary gold or various foreign currencies. All indicators of the efficiency of foreign reserves mentioned above indicate that Iraq today is in the best condition in its financial history.” These reserves flourish and grow with the index of the growth rate in the current account surplus of the balance of payments to the country’s gross domestic product, which was estimated for the year 2023 at approximately (positive 9%), and is estimated for the year 2024, at the same similar rate, according to data published by international credit evaluation institutions for Iraq. “.
He pointed out that “there are standard investment mechanisms and guides approved globally by the monetary authority in managing the country’s foreign currency reserves, as their tools and methods are evaluated in consultation with multilateral international financial organizations, including the International Monetary Fund and the World Bank, on a periodic basis to ensure optimal management of reserves, both in Providing appropriate returns, sufficient liquidity and low risks at the same time.”
He continued: “It takes into account avoiding all forms of risks, whether the risks of currency exchange rate fluctuations, interest, or liquidity risks, as well as the legal risks in managing those reserves, which are the basis of the country’s foreign investment portfolio, and today they represent something similar to the Iraqi dinar exchange rate stabilization fund that it defends.” The country’s monetary policy represents assets corresponding to the national currency issued as (liabilities) and adequate coverage of the dinar to ensure its stability, in addition to the role of reserves in financing foreign trade for the private sector.”
At the conclusion of his speech, he stressed that “as the cycle of oil assets increases, the country’s foreign assets increase and inevitably rise in the country’s investment portfolio.”