Sunday, February 25, 2024

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Treasury Penalties And The Bitterness Of The Lesson , 25 FEB

Treasury Penalties And The Bitterness Of The Lesson

Economical 02/25/2024   Yasser Al-Metwally, I completely disagree with those who portray the Treasury’s action against banks as a measure to prevent dealing in the dollar.

Rather, it is an actual punishment.

So why improve the image?

Let us examine the negative effects of the treasury’s decisions on the banking sector. The first effect is harming the banks’ reputation, and everyone knows the effects of reputational risks in disrupting banking work and the reluctance of customers to deposit or withdraw their money simply because of specific fears resulting from the chaos caused by sanctions, rumors, and some lurking speculators.

At a time when strenuous efforts were made by the banks, their associations, and even the Central Bank during the past short period to restore confidence, and banking activity began to recover and provide some banking services to the fullest extent, until the US Treasury’s decisions came against more than a third of private banks, without a doubt, causing reputational risks from new.

But it seems that confidence still remains among some of the customers in the strength, sobriety, steadfastness, and conviction in the face of these decisions that appear to be violations and are hidden for political purposes, and even

the violations highlighted were for previous periods before the instructions issued by the Treasury.

Here, the banks that were subjected to these sanctions must work steadfastly and not let these decisions weaken their role in providing banking services that contribute to enhancing confidence and deepening their bridges with customers in order to continue banking activity.

Perhaps what some banks offer is a source of admiration and unparalleled steadfastness.

I mention, for example, Al-Tafif Islamic Bank, the International Islamic Bank, and other banking activities and products that do not care about sanctions, which is the ideal response to these absurd sanctions in some of them.

The issue of canceling the currency window was decided a while ago, and we have warned in several articles not to rely on the window’s activity as it is temporary and under specific circumstances.

The process of mitigating the impact of Treasury sanctions requires the relevant authorities (the Central Bank, the Ministry of Finance) to find means of support to protect banks and support them in practicing their credit and other banking activities.

Perhaps the Deposit Insurance Company and its activation are one of the most important of these means, despite my observations on the weakness of its media and marketing role, as it

It needs to clearly show its activities.  In parallel, the Central Bank and the Association of Banks must work in all available ways to find means to cancel most of these unfair decisions against some banks due to their commitment to the required international standards.

Banks should benefit from the decision to allow dealing in currencies alternative to the dollar in foreign transfer activities, especially since BRICS is a strong competitor that is inevitably coming, and it is an opportunity that will provide Iraq and help it be accepted into the group in the future.

There is no way to get rid of the burden of the dollar except with the next alternative, and the Treasury, with its measures, is pushing to search for an alternative.   https://alsabaah.iq/92336-.html

"IT ALWAYS HAS BEEN, IS, AND WILL BE A PROCESS" BY GOLDILOCKS, 25 FEB

GOLDILOCKS 

I may leave that article above out to stand alone today for some time. For those of you who still have doubts that this is going to happen, look closely at that article until you finally get it. It's already happening, but it wasn't a push of the button was it? 


It always has been, is, and will be a process. 


One day, we will wake up to new price changes, and it will take us all by surprise. 


Your best intel going forward may very well be traders who work these markets. 


You know me by now, I do not want you to get too dependent on any intel provider. Watch for yourself rate changes on the cbi.iq 


© Goldilock

Iraq's Interest Rate CNY INR IDR VND SGD IQD Rates BY SANDY INGRAM

"THE DINAR IS A TIER #2 ASSET" BY ARIEL, 25 FEB

Ariel

@Prolotario1

What I am about to upload needs to be read carefully. Because it goes back to a lot of what I explained to you all. One thing you need to understand is that you hold what banks need during the transition period.

And that is a Tier 2 asset called the Iraqi Dinar. The article will explain this to you on a formal basis.

By having a strong Tier 2 capital base, banks can weather financial storms more easily and maintain their ability to lend money and support the economy. That’s where you come in. Your IQD is going to play a pivotal role once it is reinstated on the Forex Market.

Iraq will officially connect to corresponding foreign banks on March 1st to improve external balances.

After that will be the next big step and that’s becoming Article 8 Compliant and reinstating the IQD on global trade markets. After you read the article you will understand why banks had the meeting on February 20th for Tier 2 assets.

7:04 AM · Feb 24, 2024

Passing Through
@McKinle00935017

So it’s a “win-win” for us and the banks when we exchange after the revaluation? 

Ariel
@Prolotario1

Absolutely. You will be their lifeline. So they will treat you like royalty. No games will be played.

USD exchange rates record new downward trend in Baghdad and Erbil, 25 FEB

 USD exchange rates record new downward trend in Baghdad and Erbil

Shafaq News / The exchange rate of the US dollar against the Iraqi dinar decreased in Baghdad Erbil, the capital of the Kurdistan Region, with the closure of the stock market on Saturday. 


According to our correspondent, the dollar prices decreased with the closure of the main Al-Kifah and Al-Harithiya exchanges in Baghdad, reaching 151,700 IQD per $100, compared to 151,950 IQD per $100 recorded earlier in the day. 


The selling prices at currency exchange shops in local markets in Baghdad also decreased, with the selling price reaching 152,750 IQD per $100, while the buying price was 150,750 IQD per $100. 

In Erbil, the dollar also experienced a decrease, with the selling price reaching 151,600 IQD per $100, and the buying price at 151,300 IQD per $100


https://shafaq.com/en/Economy/USD-exchange-rates-record-new-downward-trend-in-Baghdad-and-Erbil

"RV UPDATE" BY PIMPY, 25 FEB

PIMPY

  Community Comment:  "Thanks for the let down once more that Iraq will never RV. I never said it would never RV.  Never.  In fact I'm the one that said it's going to go up in increments.

Question: "There have been some references...regarding some Iraqi banks in the US, have you heard  about any of thee banks on US soil?"  Here you go:  You have the Iraq National Bank that's in New York. Rasheed Bank that's in New  York.   North Bank that's Dearborn Michigan, The Bank of Baghdad is in New York City, TBI Bank which is in Washington DC.  These are  the Iraqi banks that are currently in the US...    
Community Comment: "IMO I think a $1.28 would be a sweet spot for the RV and then go up from there."  $1.28 would be pretty nice if we can get it but IMO if they want to make sure not to really crash their economy they're going to have to go up in smaller increments...I know you guys don't like to hear that and it makes me the bad guy.  You might see it go somewhere from...1310 for every dollar...to around 1,100 dinars for every dollar or maybe even 1,000 dinars for every dollar, then from there down to like 700s...small increments.


 Community Comment: "Once the 3 zeros are deleted, establishing IQD's REER, then the rate will go up in increments."   That's not what you want.  You do not want them to delete the zeros before the rate goes up.  If they delete the three zeros off your currency then your 25,000 dinar becomes a 25 dinar and then they raise the rate?  That's not going to help you.  We'll see what happens.

 If you're going to exchange your Iraqi dinar, let's just say for the sake of this particular example...3 to 1, congratulations you now got millions of dollars.  So you go and you swap your currency and they're saying, 'Hey, you got $3 million in your account.'  Yah!   You can't say to them I want $3 million dollars because the bank doesn't carry money like that no more. They might say...we are going to allow you to carry out $5,000 for today cash but we're going to have to set an appointment with you to come pick up the rest of the cash...If they have to order currency for you, they're going to charge you a fee because they have to pay a fee...

Arab League Council to hold extraordinary session at Iraq's request, 23 NOV

 Arab League Council to hold extraordinary session at Iraq's request Shafaq News/ On Sunday, the Arab League Council will convene an ext...