Thursday, March 14, 2024
Al-Alaq announces the understanding with the US Treasury to reconsider the sanctions imposed on Iraqi banks
The Finance Committee, headed by Atwan Al-Atwani and the presence of its members, hosted, today, Thursday, the Governor of the Central Bank Ali Al-Alaq; to discuss a number of important files, most notably, the measures to address the large gap in the sale of the dollar between the official price and the parallel market, as well as foreign trade transfers through (the platform).
The meeting also reviewed, according to the committee’s statement, {Euphrates News} received a copy of it, the file of US Treasury sanctions on local banks and the extent of their impact on monetary and financial policy and banking work in the country, and the measures taken by the Central Bank in this regard, in addition to discussing the adopted international standards, future plans to improve the reality of the banking system, the possibility of expanding relations with international banks, drawing the structure of banks, and moving towards the electronic payment process, in addition to the possibility of amending the Central Bank Law.
Al-Atwani stressed “the importance of following up the economic file, monetary policy and the system of external and internal transfers, and finding appropriate solutions to the obstacles facing the work of the Central Bank,” noting that “the government is making a great effort to maintain the stability of the local market during the holy month of Ramadan, especially with regard to the prices of selling food and other necessary goods.”
“We look forward to continuous coordination and cooperation with the Central Bank in order to increase the value of the Iraqi dinar and control the local market in order to alleviate the citizen,” he added.
For his part, Al-Alaq stressed “establishing basic rules for monitoring the process of external and internal transfers,” attributing the instability of the exchange rate to “the existence of illegal trade by small traders and some speculators that finance by withdrawing the dollar cash from the market.”
Al-Alaq said that “the external sanctions imposed on a large number of our local banks have hindered the endeavors and plans to open relations and communication lines with accredited international correspondent banks,” explaining, “the process of printing the local currency is carried out according to the required financial cover and in a way that balances the foreign and local currency and prevents any financial inflation.”
He added, “We are currently coordinating with the concerned authorities on the implementation of the foreign trade regulation plan, and we also have continuous meetings with the American Treasury, and it was understood to reconsider the sanctions imposed on Iraqi banks, and that such decisions should not be issued in the future until after discussing and informing the Central Bank of Iraq as it is concerned with monitoring its activity.”
"RV UPDATE" BY RAYREN98, 14 MARCH
RayRen98
SO, SOME AGREEMENTS WERE MET LAST NIGHT....LET'S SEE WHERE THAT TAKES US FOR LATER TODAY?
[via Babysmom] "EAST COAST BANK CONTACTS ARE "VERY EXCITED" AND ANTICIPATE INITIATING EXCHANGES EITHER LATE TONIGHT OR EARLY IN THE MORNING. TIME WILL TELL...
-----
EVEN THOUGH I DON'T SEE IT YET...THEY ARE TELLING US "IT'S DONE"...THIS HERE "RIDE" IS FINALLY COMING TO AN END...HOPEFULLY TODAY.
[via Vinterv] 3 LTR'S [3 LETTER AGENCIES] ARE ON A 24-HOUR WATCH...
♪♫•*¨*•.¸¸❤¸¸.•*¨•*♫♪ I'm so excited, and I just can't hide it. I know, I know, I know I see a RATE CHANGE! A SHO-NUFF "RATE CHANGE" ! ♪♫•*¨*•.¸¸❤¸¸.•*¨•*♫♪ Sooner THAN later ♫♪♫♪♫ I GOT A FEELIN ...TONIGHT'S GONNA BE A GOOD NIGHT ♫♪♫♪♫ times 3...
GOOD SOURCES INFORM THAT THEY ARE ATTEMPTING TO PUSH IT OUT "BEFORE" THE END OF THE MONTH...
https://dinarevaluation.blogspot.com/2024/03/rv-update-by-rayren98-3-march.html
"RV UPDATE" BY BGG, 15 MARCH
BGG
Article quote: “The Iraq government is currently weighing the question of changing the currency so that the official cost of a US dollar will be 1.32 Iraqi dinars instead of 1320. Implementing such a decision is likely to significantly increase Al-Sudani’s popularity.” ...
The article was published yesterday & I am suspicious of it’s veracity and timing. It always seems to get tossed around during election season.
Furthermore, how they decide to get from 1320:1 to 1.32:1 is another story entirely...Everyone will get all excited, when in reality… even if this is a legit move – it could still go 20 different ways.
Calm Dominates The Currency Market Ahead Of The World's Largest Economic Data, 14 MARCH
Calm Dominates The Currency Market Ahead Of The World's Largest Economic Data
Economy |Today Baghdad today - follow-up A state of calm prevailed in the currency market, today, Thursday (March 14, 2024), with the US dollar holding steady against its major counterparts at a time when traders are awaiting more data from the largest economy in the world in search of indicators about the direction of the Federal Reserve (the US Central Bank) policy. .
The Consumer Price Index data in the United States, which was released last Tuesday, and showed a higher-than-expected rise in US inflation, reignited fears that inflation may continue, which made investors reassess the chances of the Federal Reserve cutting interest rates at its meeting in June, as was expected in the previous.
According to the London Stock Exchange Group's interest rate move probability app, markets still see a 65 percent chance of a rate cut in June, down from 71 percent earlier in the week. While the probability of reducing the interest rate in July is about 83 percent.
In light of expectations that the US Central Bank will keep interest rates unchanged at its meeting next week, the focus turns to the bank's updated economic forecasts.
Federal Reserve Chairman Jerome Powell said last week that the bank is "not far away" from gaining the confidence needed to start easing monetary policy.
Markets are awaiting US retail sales data, producer price index (factory door inflation) data, and unemployment claims scheduled to be released later Thursday, searching for further indications of an economic slowdown.
Before the data was released, the dollar index, which measures the US currency against a basket of six currencies, rose 0.1 percent to 102.85.
Against the yen, the dollar rose 0.1 percent to 147.89 yen, as it remains uncertain whether the Bank of Japan will move to abandon negative interest rates at the monetary policy meeting on March 18-19.
Sources told Reuters that the Japanese central bank will discuss ending negative interest rates next week if wage talks between major companies produce strong results.
The preliminary results of wage negotiations are scheduled to be announced tomorrow, Friday, and reports have already stated that many of the country's largest companies have fully agreed to union demands for wage increases.
The euro fell 0.05 percent to $1.0942, ahead of expected statements by a number of European Central Bank officials on Thursday.
The British pound settled at $1.2792. Data yesterday, Wednesday, showed that the British economy returned to growth in January after entering a recession in the second half of 2023.
In terms of cryptocurrencies, Bitcoin stabilized at $73,092.00 after hitting a record level of $73,678 in the previous session, and Ether fell 0.72 percent to $3,963.70. Source: Agencies LINK
Iraq Reveals New IQD Dollar Rate and Denomination Goa BY AWAKE IN 3D, 14 MARCH
Iraq Reveals New IQD Dollar Rate and Denomination Goal
It’s not a revaluation. It’s a classic Re-denomination of the currency.
Now we can see both pieces to Iraq’s endless discussion on “raising the dollar rate”.
There has been much discussion about removing the three zeros from the IQD notes, yet there’s has never been a confirmation about the resulting exchange rate vs. the US Dollar that would accompany the 3-zero re-denomination.
Now we have it.
In a recent article (also linked below), we can now see that Iraq is planning a straight out re-denomination of the currency leaving the exchange rate (the value of the IQD vs. the Dollar) unchanged.
As quoted in the article, we now see what Iraq is planning for the exchange rate that accompanies the 3-Zero re-denomination.
The Iraqi government is currently weighing the question of changing the currency so that the official cost of a US dollar will be 1.32 Iraqi dinars instead of 1,320 dinars. Implementing such a decision is likely to significantly increase Al Sudani’s popularity.
Clearly, we can calculate that changing the exchange rate from 1,320 dinar per dollar to 1.32 dinar per dollar is a simple re-denomination. It is not a revaluation of the IQD’s purchasing power against the US Dollar.
Also see: Why Iraq hasn’t Independently Revalued the IQD Higher (Part 2)
I’m not really sure that this is what we want to see as foreign holders of IQD.
My view is that Iraq is not going to do their re-denomination anytime soon. They simply have too many reforms to make, security issues to address, and massive political deadlocks to overcome.
Also see: How to Accurately Think About Our RV/GCR Exchange Rates
Maybe this will buy time for Iraq to join BRICS and gold-back their currency for a massive purchasing power change of the IQD to the US Dollar.
It’s also worth noting that many in Dinar-Land are claiming that Iraq is revaluing the IQD to $1.32 per IQD. All I can do is shake my head at the complete lack of either not actually reading what they are talking about, or they don’t understand the simplest of economic and/or monetary concepts.
Ps. There is no such thing as a Reinstatement (the so called “RI’) of a national currency. There are only re-denominations, re-valuations (more accurately re-pegging) and introducing a new currency Series of notes.
Kuwait issued a new series of their notes back in 1991. They never Re-Valued (RV’d).
https://ai3d.blog/iraq-reveals-new-iqd-dollar-rate-and-denomination-goal/