The decline of the dollar reduces the burden of high prices on the Iraqi citizen
The markets of the capital, Baghdad, witnessed, on Monday morning, a decline in the exchange rates of the US dollar against the Iraqi dinar.
the details:
The exchange rate of the dollar on the Kifah and Al-Harithiya stock exchanges recorded 147,400 dinars for every 100 dollars, a decrease of 1,300 dinars from the price of yesterday, Sunday.
The selling price in banking shops in local markets in Baghdad decreased to 148,500 dinars, while the purchasing price reached 146,500 dinars for every 100 dollars.
the reasons:
No official body has announced the reason for the decline in dollar exchange rates.
Some sources suggested that the decline was due to an increase in the dollar supply in the market.
Other sources indicated that the decline in global oil prices may be one of the factors that led to the decline in dollar exchange rates.
Effects:
The decline in dollar exchange rates is expected to lead to a decline in the prices of imported goods.
Declining dollar prices may encourage increased investment in Iraq.
The decline in dollar exchange rates is positive news for the Iraqi economy, but it is important that steps are taken to ensure exchange rate stability in the long term. link
Their new accession law seems to be gaining traction with Iraq having accession to the European Bank of Reconstruction and Development and the FEMOZA World Federation of Free Economic Zones. The WTO is likely next in line for Iraq's integration with the international world.
Article quote: "Iraq joins FEMOZA
" It's the World Federation of Free Economic Zones.Why is this important? Iraq has accession to this...We have the accession law to join the European Bank and now we have the accession to the World Free and special economic zones federation. ..Both of these entities are about finance and building new industrial cities. If you don't think Iraq is going to go international, you might think again...
The Prime Minister's Advisor announces the decline in the effects of the parallel market and the decline in its activity
3/24/2024 Baghdad - INA - Nassar Al-Hajj
Thefinancial advisor to the Prime Minister, Mazhar Muhammad Saleh, announced today, Sunday, the decline in the effects of the parallelmarket and the decline in its activity, while revealing the reasons forthe decline in the exchange rate of the dollar against the dinar, andthe importance of monetary policy and its imposition of a climate ofstability at the general level.
Saleh said to the Iraqi News Agency (INA): “Economic policy played a major role in imposing a climate of stabilityin the general level of dollar exchange rates,” indicating that “thestate of superiority of the official exchange market in financing Iraq’sforeign trade caused a decline in the effects of the parallel marketand a decline in its illegal activities.” Legal ".
He pointed out that "thedecline in parallel market rates in favor of the official exchange rateis a tangible success in the cohesion of the country's economic policyin its three aspects: financial, monetary and commercial," pointing outthat "the work and high coordination of policies led to providing anincubator of stability embodied in relative price calm and thecontainment of seasonal price fluctuations." “For materials in highdemand, specifically the provision of basic goods related to consumptionand daily living for citizens.”
Henoted "the importance of using the customs policy, which wasrepresented by (reducing customs tariffs and diversifying importswithout quantitative limits for basic and necessary goods) as part ofthe performance of the financial policy in providing price stability andensuring the supply of materials, food and essential goods, and
production supplies at the official exchange rate and in accordance withthe requirements of the national economy." In addition to the highstability in bank financing for foreign trade for the private sector, which began to adopt the stable official exchange rates of 1,320 dinarsper dollar in a wide and more flexible manner through the regularity andstability of financing operations.
Hepointed out that "the demand for foreign currency for the purposes of financing the country's foreign trade, on the part of the private sector, is today backed by large foreign currency reserves, which are the highest in the country's history, reaching nearly 111 billion dollars today."
Hecontinued, "These high foreign currency reserves reflect the country'sannual trade efficiency of more than 16 months of import at least inlight of the global standard for the commercial efficiency of foreignreserves, which is set at only about three months, and that the abilityof these reserves to cover the exported currency is considered completecoverage in foreign exchange, which is an indicator of stability." Contains any existing or anticipated adverse price fluctuations.LINK
[via PDK] We may see it by Easter…The news is so good...We have a delegation of Iraqi foreign ministers in DC right now. At this point we expect them to announce “lifted sanctions” by the middle of the week.
My source is on the DC beltway. When sanctions are lifted it should be “GO” time.
There is some fun stuff coming from sources over the weekend. Bond contacts really lit up overnight/and over the weekend. One of my contacts that “lit up” after going quiet said they very much expect things by mid-week this week ...People who have not been excited for quite awhile are now excited...I am also hearing similar things from my banking side...I understand that the whole process should only be a week long and that the very first things we should see is bond folks getting dollars...We...are supposed to go immediately following bonds.
Adviser To The Prime Minister: The Decline Of The Dollar Is An Indicator Of The Strength Of The Dinar And A Tangible Success Of Economic Policy
Time: 03/21/2024 Read: 4,381 times {Economic: Al-Furat News} The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed the strength of the dinar against the dinar after a relative decline in the exchange rate. Saleh told {Al-Furat News} agency,
“We indicate the strength of the Iraqi dinar, expressed in the decline in the parallel market rates of exchange in favor of the official exchange rate, a tangible success in the cohesion of the country’s economic policy in its three aspects: monetary, financial, and commercial, in providing a coherent climate of stability in the general level of prices.”
And containing seasonal price fluctuations for high-demand items, specifically providing basic food commodities that have low price elasticities of demand because they are necessary commodities associated with consumption and daily living.”
He noted "the importance and speed of customs procedures, which were represented by (reducing customs tariffs and diversifying imports without quantitative limits for necessary goods) as part of the performance of the financial policy in supporting price stability and ensuring the supply of food and essential goods and production supplies at the official exchange rate and in accordance with the requirements of the national economy."
The Parliamentary Finance Committee had expected the dollar price to continue to decline as the results of the measures taken by the Central Bank of Iraq to limit the rise in the foreign currency began to appear.
The dollar exchange rate a few days ago was about 1,500 or 1,490 thousand dinars to the dollar.