...traders can’t trade the Iraqi dinar since OFAC sanctions are still on the currency and have not yet been lifted. It would be illegal and very risky to put any of the dinar in investment portfolios at this time... there is no back screen trading platform, so even if they did want to trade the dinar how would investors do it?
If you step outside of Iraq, when they finally do reinstate the dinar, the exchange of the three zero notes...will exchange to whatever the currency exchanges i.e. FOREX rate is at the time.
...the IMF is not going “lop” theIraqi dinar. A “lop” is a tool the IMF uses to restart a currency from massive inflation. ...We also have articles for Iraq telling us they WILL NOT lop the dinar. They do not have massive inflation and so this tool of a lop is not necessary. That is why they call it the “project to delete the zeros” and not a ”lop”.
IRAQIS RESORT TO “GOLD BULLION” INSTEAD OF MONEY, AND THE BANKING SYSTEM IS DYING
Today, Wednesday (June 12, 2024), financial affairs expert Mustafa Hantoush revealed the reason why Iraqis are resorting to purchasing gold bullion in abundance during the current period.
Hantoush said in an interview with “Baghdad Today” that “recently, the demand for buying gold bullion has increased significantly by citizens, especially those with large sums of money. They have begun to save that money through these bullion instead of depositing their money in banks.”
He stated that “the reason why citizens resort to buying gold bullion to save their money is as a result of the weakness of the banking system, lack of confidence in this system, and fear for their money due to American sanctions. This is why we see the majority of Iraqis turning towards gold bullion, especially in light of the high prices of the yellow metal and the stability of this price and its lack of fluctuation like the dollar.” .
From mid-December 2022 until now, the Iraqi dinar has continued to fall against the US dollar, until it reached the level of 1,610 dinars against one dollar at a time when the official price of the dollar is 1,300 dinars.
With the decline of the national currency and the rise in poverty and unemployment rates, Iraqi gold markets recorded a large demand from customers to buy the yellow metal amid warnings against buying counterfeit ones.
According to data from the specialized website “Bloomberg” , Iraq bought 33.9 tons of gold in the year 2022, while the Turkish Consul General in Erbil Hakan Karaçay revealed that Iraq imported Turkish gold worth $1.5 billion during the year 2021.
Iraq’s gold reserves witnessed a noticeable increase during the month of February 2024, as International Monetary Fund data showed that Iraq had increased its possession of the precious metal by 3,079 tons, bringing the total to 145,661 tons.
This increase indicates Iraq’s continued strategy to diversify its foreign reserves and enhance financial and monetary stability in the long term.
This step by Iraq comes at a time when the world is witnessing a rise in gold prices, as the price reached its highest level in its history last month above $2,400 per ounce.
Many simultaneous factors are strengthening the record levels of gold, especially in light of the escalation of geopolitical tensions around the world, and in light of the state of “uncertainty” surrounding the global economy, which supports the trend towards the precious metal as a traditional safe haven in the face of market fluctuations and dire scenarios that impose themselves on the market. the scene.
Iraq is among the countries that possess large amounts of gold reserves in the Arab region, as it ranks fourth after the Kingdom of Saudi Arabia, Algeria, and Morocco.
[via PDK] ... Sudani told us that everything is now in the hands of the CBI…he was talking to Alaq at that time… so it’s the CBI ‘s job to change the rate.
“After returning it for the purpose of auditing –The Iraqi Gazette addressed parliament to send budget tables”
So they are expected to release it to the papers this week …There are a lot of people who believe we will see a rate when they do that. I do have a couple contacts in Iraq that believe we will see it then…They expect it to be published Saturday in the Gazette…I hope they are accurate.
Question: Is watching the HCLimplementation a good indicator?
It’s a very good indicator. I was told since very early in this process that this was a key indicator…along with the inversion in the bond markets which we have seen.
THE SECURITIES COMMISSION SIGNS AN AGREEMENT WITH THE WORLD BANK
Today, Wednesday, the Iraqi Securities Commission announced the signing of an environmental, social and corporate governance guide agreement with the International Finance Corporation (IFC), affiliated with the World Bank.
The Authority stated, in a statement received by Al-Youm Al-Akhbariya, “We continue our efforts aimed at incorporating good international practices in developing the performance and effectiveness of the Iraq Stock Exchange and other activities related to securities.”
She added, “The goal of the agreement is to enhance and develop the investment environment in Iraq by improving environmental, social, and governance regulations and frameworks to comply with international standards, enhancing the ability to implement and supervise their implementation in Iraq, and contributing to increasing investment attractiveness in the Iraqi stock market environment.”
She continued: “To achieve this goal, there will be coordination with the Iraq Stock Exchange through the supervision of the Iraqi Securities Commission to develop an environmental, social and corporate governance guide to support improving the performance of listed companies, and put Iraq on the path towards a strong and sustainable economy.”
She stated, “The agreement included a mechanism for arriving at a mandatory guide to apply to companies listed on the Iraq Stock Exchange.”
On this occasion, the Chairman of the Authority, Faisal Al-Haims, said, “Preparing a social, environmental, and corporate governance guide through a partnership with the International Finance Corporation improves the Iraqi investment environment by adopting international standards that develop the current investment environment in the Iraqi Stock Exchange.”
He pointed out that “following the environmental, social and corporate governance framework makes companies listed on the Iraqi Stock Exchange more transparent, better performing, and more attractive to foreign investments.”
He stressed that “the topic of environmental, social and corporate governance will be one of the axes of the national strategy for investment awareness and supporting the investment culture that the Authority is working to achieve and will be announced on October 1 of this year.”
For his part, Aftab Ahmed, IFC Regional Director for the Middle East, Pakistan and Afghanistan, said: “We are excited to partner with the Iraqi Securities Commission in this important initiative that aims to help companies and banks mitigate the risks of environmental, social and governance practices, and improve performance over the long term.” Long term in a sustainable manner, in addition to attracting investment and contributing to the sustainable growth of the stock market in Iraq.”
According to the Authority’s statement, “The process of preparing the guide will include workshops and meetings with relevant parties such as listed companies and brokerage firms.”
The Authority affirmed its endeavor, as the regulating and monitoring body for securities activity and related activities and financial services, to increase the contribution of this sector to the gross domestic product and to provide an investment environment that protects the rights of investors and other stakeholders.
FIREFLY: Sudani came out and again he says to us the dinar is stronger than the dollar.
FRANK: Your contracts are being rewritten because your dinar is strong now.
FIREFLY: Then he said that Iraqi people will see a significant increase in the exchange rate this year. He's saying all this in a recorded speech. He's talking about the economy and how we're growing and what is expected.
FRANK: Like I told you, the monetary reform education would get louder and louder into this month. It looks like they're using a megaphone to scream it to you. These are exciting time for your monetary reform, for your country, for the value of your currency.
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FIREFLY: Parliament is saying we're going to pass the investment law. You're going to see it very soon...
FIREFLY: I talked to my bank friend...He said when we do drop the zeros, we the citizens will have a certain number of days to return for new lower currency. This will be the 1 to 1. Not 1 dollar for 1 dinar but 25k note for a 25 note. It will revalue in country above a dollar...We will probably see dinar in country just over $1.
FRANK: Now do you see why they kept it at 1320?
FIREFLY: The 1 to 1 will be dropping off the three zeros from our exchange rate, from our currency...a 25k note will be a 25 note...This is for inside of country, not outside of country.