Iraq was supposed to put the budget with the new Dinar Rate in the Gazette on Wed. 3 July. The virtual edition was published with the new rate in it last Sat. 28 June. The word from a Redemption Center Headwas that Tier4b (us, the Internet Group) were going to get notified onFri. 5 Julyand receive appointmentsover the weekend. In the US the R& Restitution monieswould come out in the month ofJuly.You will receive your R&R at your appointment.
They should offeryou the higher Dinar Contract Rate at your exchange. Trump should be backas president sometime between the4 and 15th of July. NESARA should be announced the8th or the 9th.
THE “STUBBORNNESS” OF THE DOLLAR AGAINST THE IRAQI DINAR CONFIRMS THE “GAP” BETWEEN THE OFFICIAL AND PARALLEL PRICES
Iraq has been seeking for two years to end the phenomenon of dealing in the dollar in the local market, while economic experts point out the success of the Central Bank of Iraq’s measures in achieving “relative” success in controlling the hard currency.
(Mnt Goat – Did you read it? It says “Central Bank of Iraq’s measures in achieving “relative” success in controlling the hard currency.” So please do not ask me if the parallel market is under control. It is but it is not yet where it needs to be. It needs to match the Offical CBI rate.)
The year 2023 witnessed an unprecedented rise in the dollar exchange rate, as it reached 1,700 dinars per dollar and continued for several weeks before it gradually decreased at the end of the year, reaching during the past two months a level ranging between 1,470 dinars to 1,450 dinars per dollar.
The Iraqi currency crisis began after the US Treasury deprived 14 Iraqi banks of the global bank transfer mechanism known as “SWIFT” in an attempt to prevent the smuggling of dollars to Iran.
The Central Bank of Iraq platform finances external transfer requests from foreign currencies that are specifically used for the purposes of financing foreign trade for the private sector.
The budget increases the gap
Economic expert Nabil Al-Marsoumi said, during an interview with Shafaq News Agency, that “the reason for the rise in the dollar is trade with Iran, which is subject to US sanctions, and therefore the electronic platform of the Central Bank of Iraq designated for selling the dollar does not provide traders with this currency, which forces them to resort to the black market to buy the dollar.”
He points out that “travelers to Syria, Lebanon, and Iran are also unable to obtain the official dollar from banks, so they resort to the parallel market, which increases the demand for the dollar.”
Al-Marsoumi adds, “The gap has recently begun to widen, especially after the launch of the new budget, which means an increase in overall demand, consumer and investment spending, and thus an increase in imports, which in turn will lead to increased pressure on the dollar, pushing it higher, and it may reach 150 thousand dinars for every 100 dollars and a little higher.”
The Iraqi government then agreed to the Central Bank’s proposal to reduce the value of the exchange rate from about 1,470 dinars to 1,300 dinars per dollar, which had a clear impact on the exchange market at that time by reducing prices that reached the level of 1,700 dinars per dollar in the parallel market.
STRUCTURAL IMBALANCE IN THE ECONOMY
Economic expert and professor of economics at the Iraqi University, Abdul Rahman Al-Mashhadani, attributes the stability of the dollar price for the second month to “the result of the performance and mechanisms used by the government and the central bank. As for the rise that occurred during the past days of Eid, it was caused by the great demand for travel outside Iraq, so the demand for the dollar increased”.
Al-Mashhadani explained to Shafaq News Agency, “Finding a solution is part of dealing with Iran, whose daily import rate ranges between 25 to 30 million dollars, part of which is through the United Arab Emirates.”
He pointed out that “the solutions did not address the structural imbalance in the economy, as the commercial sector was not reorganized, and the banking system did not fully comply with international standards and the Federal Reserve Bank (the US central bank) in the transfer operations that take place daily.”
DOLLAR SMUGGLING
In turn, the economist and former director of the Central Bank of Iraq, Mahmoud Dagher, said during an interview with Shafaq News Agency, that “the gap between the market and the official price remains primarily due to the leakage of dollars into the market and then across uncontrolled borders.”
He adds, “Smuggling the dollar to countries subject to sanctions is the main cause of the dollar crisis, and to solve this crisis, the borders and customs must be controlled so that the dollar returns to the official price.”
(Mnt Goat – now can you see why such news articles on controlling the border and customs and tariffs. Its more than just increasing revenues. They MUST control their borders. )
He continues, “The reason why the dollar has not risen to more than 1,500 dinars during the past two months is that the bank sells more than 300 million dollars daily, and this offer is wide and somewhat restricts the increases, but the price in the market is still above 1,450 dinars per dollar, and the official price is 1,320 dinars.” This means that 120 points, or 130 dinars per dollar.
The fluctuation of the dollar exchange rate on the black market led to disruption of commercial activity in the country, which contributed to the rise in the prices of consumer goods. Despite the increase in the average Iraqi per capita income to seven million dinars last year, the price rise of goods and commodities, as well as the fluctuation of exchange rates, affect the Iraqi market. .
MARKET CONTRACTION
In an interview with Shafaq News Agency, economic expert Durgham Muhammad Ali said, “The dollar remaining within the region of instability has harmful effects on the local market, as the gap between the official price and the parallel price increases, the market shrinks and the supply of goods decreases, which raises their price even more than the parallel exchange value.” Therefore, stabilizing the price within one level and stifling the parallel market is the solution to any price crisis.”
He stresses that “the effects of long-term inflation are difficult and slow to address, even within a stable price range.”
"FRIENDS!!! That's what we really hope, let's vibrate positively.
Open heart and mind for the new!!!
May He the “Most High, Blessed and Holy bring us this blessing.
*Wells Fargo and HSBC
are already financing the first layer that exists between T4 and T4B.*
T4B is the completion of T4A and T4A is already defined, therefore T4B notifications begin an information process for payers, therefore the T4B level is already receiving account movements.
All funds will be placed in QFS accounts; Digitally backed gold is also implemented in these systems.
1% of funds will be released when you start paying on Zim.
Hopefully this week we will certainly have a lot of information about the GCRV, one thing is certain, the work has been very hard and we have no doubts about what is happening.
There was an interruption at the beginning of the month, but the REVALUATION movement is advancing substantially and steadily, there is the turbulence of attacks but it is happening, the movements are safely authorized.
It needs adjustments related to the communication of the systems that have already been made and it is all very intense but it is happening.
They have informed us that they will be paid as soon as possible and this week promises a lot.
The dollar funds for the Trigger Files have been released and will be ready for disbursement next Monday and the prerequisites for the release of the USN Notes are now being finalized and are scheduled for disbursement on July 8th.
GESARA should also be announced on July 8th, it was also informed that it will activate the payment of bonds on Monday, the 1st, and bond exchange payments on Thursday, the 4th, the public publication of the notes USN and the revaluation of the currency from the 8th.
Have a good week and may God bless you all, thank you very much for the prayers and meditations with infinite blessings."
THE DOLLAR IN THE PARALLEL MARKET.. AL-SUDANI’S ADVISOR PRESENTS A DIFFERENT VISION AND ECONOMIC EXPERTS: AN IMAGINARY STABILITY?
The advisor to the Iraqi Prime Minister disagreed with what four economic experts said regarding the “stability” of the US dollar exchange rate against the Iraqi dinar, stressing that “the stability of the dollar is real and solid and not imaginary as some believe.“
However, the economic experts said that the stability is “not reassuring,” and what is happening now is a decrease in the dollar’s volatility, while stability will occur when the dollar returns to the official price of the Central Bank.
The Prime Minister’s Advisor for Financial Affairs, Mazhar Mohammed Saleh, says, “The exchange rate of the dollar to the dinar in the parallel market today in our country does not constitute any relative importance in influencing the stability of the general price level, which has become stable in its components and trends due to the influence of the official exchange rate factor currently dominating the financing of foreign trade (imports), amounting to 1,220 dinars per dollar. It is a stable trend for the exchange rate and the stable external value of the dinar revolves around it, which is embodied by the state of stability in the relative prices of goods and services to a large extent.”
Saleh added to Shafaq News Agency, “Based on the above, and in light of the strength of the foreign reserves supporting the Iraqi dinar, whose value as liquid foreign assets exceeds $100 billion, which is the highest in the history of Iraq in the development of its international reserves, the official exchange market, as a general trend, will remain dominant in containing any colored noise or ambiguous information that affects the parallel exchange market due to urgent international or regional political events here and there.”
He explains, “After the decline of the dollarization phenomenon in domestic transactions, especially in contracts, obligations and payments within the country since last year, legally, the parallel exchange market has become such that its general effects today only from a narrow economic scope of prohibited transactions practiced by informal markets and at a rate of 10 percent of the total supply and demand transactions for the currency.”
Saleh concluded by saying, “Accordingly, the stability of the exchange rate of the dinar to the dollar that the country is witnessing, even in the secondary markets above, is a real and solid stability and not an illusion as some believe. Rather, it is derived from the strength of the impact of the price and quantity factors of the monetary and fiscal policies and their integration in imposing overall price stability in the country and containing the inflationary expectations that were caused by the forces of the parallel exchange market during the past years.”
But the economic researcher, Ali Abdul-Kazem, explained that “the stability of the dollar occurs when the dollar returns to the official price of the Central Bank, but until now its price is more than 15 points above the official price in the budget, so there is no stability, but the fluctuation in the parallel market is somewhat stable as a result of several things, including the increase in the number of dollars that were for pilgrims.”
Abdul-Kazem added to Shafaq News Agency, “The budget has not been launched yet and its implementation began this month, and this also has an impact, as well as increasing the Central Bank’s sales of dollars, and the recession witnessed by the markets reduces import operations, and all these reasons and others have helped to keep the dollar low in the current markets, as for the stabilization process, when the dollar reaches the official price, then it can be said that the dollar price has stabilized between the parallel and official.”
The economic expert, Karim Al-Helou, agrees with what Ali Abdul-Kazem said regarding the instability of the dollar, “but these are temporary cases, because the issue of the dollar in Iraq is supply and demand. When bank transfers abroad increase without obstacles and routine, the demand for the dollar decreases, which leads to its decline. When there are obstacles in Iraqi banks, especially with Iran, from which Iraq imports 13 billion dollars annually, we need hard currency to deliver it to Iran, or some places where a platform has not been opened, such as Iran and others, these require going to the market.”
Al-Halou explained to Shafaq News Agency, “This stability is temporary and lasts for days, and there are mafias specializing in the dollar that have huge amounts of dollars that they put down in the market, which leads to a decrease in its price, and then they buy it again and the supply decreases, which leads to demand for it and its price rises again.”
(A little recent past history and opinions of the rates by the other 4 economists referenced above by Saleh):
“Therefore, all these factors lead the dollar to calm and stability. It previously fell to 144, but then rose again to 148, and the difference with the official 1320 is more than 15 points. Therefore, this is not stability. Rather, the correct stability is as it was before, when it was 1120 in the Central Bank and 1121 abroad.
(Mnt Goat – this is better than 1166 under Dr Shabibi even…just saying…😊)
This situation continued for years, and strategic projects were set at 1121 for the dollar. However, after former Prime Minister Mustafa Al-Kadhimi raised the dollar price against the dinar, the current Prime Minister, Mohammed Shia Al-Sudani, came and restored it, but the fluctuation continued, due to the presence of mafias, a political lobby, and banks affiliated with parties that have a relationship with the dollar file.”
1.Al-Halou concluded his speech by saying, “Therefore, the stability is not reassuring and not natural. Rather, it is merely periods for certain cases related to imports, travel, and all factors related to the exit of the dollar from Iraq.”
2. This is what the economic expert, Diaa Mohsen, also went to, who explained that “what is rumored about the stability of the US dollar exchange rate in the local market is a lie that some of those who ride the government ship are trying to promote, because the citizen knows that when the Prime Minister presented his government program to the Iraqi Council of Representatives, one of his priorities was to reduce the dollar exchange rate against the Iraqi dinar, and many pages were created to promote this topic, but to no avail,” he said.
3.Speaking to Shafaq News Agency, Mohsen attributed the rise in the US dollar exchange rate in the local market to a number of reasons that the Central Bank of Iraq could not address. Either because it knows these reasons (and this is a disaster) but it cannot confront those responsible for this rise, or because it does not know these reasons (and this disaster is greater than the previous one) because the Central Bank of Iraq is entrusted with the money of the Iraqi people and not following up on this money and its spending doors is a breach of trust, he said.
He added, “Therefore, the talk about the stability of the US dollar in the local market is not true, because everyone knows that the decline in the exchange rate of the US dollar occurred during the Eid al-Adha holiday, and there is a relatively long holiday. In addition to that, Iraqi traders have begun to use other methods than smuggling the dollar out of Iraq, which is represented by buying gold and smuggling it.”
He continued, “In general, we do not believe that the monetary authority, with its confusion in taking measures, can control the exchange rate of the US dollar, nor do the executive authority’s measures have the ability to limit currency smuggling operations, whether foreign currency or gold. As for prices, they will not exceed 1,500 dinars per dollar and will not fall below 1,450 dinars per dollar.”
4. While the economic expert, Abdul Rahman Al-Shaikhli, believes that “the fluctuation in the dollar price is a natural matter, and it continues from time to time as a result of being affected by the smallest details, including the departure and return of pilgrims, so the price will remain between 1450 and 1500 dinars continuously, and the fluctuation between these two numbers is a natural thing.”
Al-Shaikhli pointed out during his interview with Shafaq News Agency, “There are some residents abroad who control the currency by issuing and withdrawing the dollar when anything happens inside Iraq, taking advantage of opportunities to manipulate its price. This situation exists in all countries of the world and may be very clear in Iraq because we have not witnessed this experience before, but this remains a natural issue, and we should not worry about it, but if it continues for a long time, it can then be considered an abnormal event.”
Article: "Dinar Explainer 1: Why Iraq has Two Exchange Rates"
Quote: "On a recent webinar organized by the Iraq Britain Business Council (IBBC), Professor Frank Gunter of Lehigh University explained the causes and effects of Iraq's dual exchange rate..."
1. Excessive Demand for US Dollars Internationally:... 2. Internal Demand for Dollars... 3. De-Dollarization Efforts by the New York Fed: The New York Federal Reserve has restricted dollar transfers to reduce dollar flows to Iran and Syria. They have also excluded over two dozen Iraqi banks from transactions, which has increased the complexity and demand for dollars in Iraq.
--
Clare
Article: "
The President of the Republic approves a number of laws, including the 2024 budget schedules"
Quote: “The President of the Republic, Abdul Latif Jamal Rashid, ratified a number of draft laws, which are the schedules of the Federal General Budget Law for the year 2024...The laws were sent after their approval by the President of the Republic for publication in the Iraqi newspaper Al-Waqae' to enter into force."
Article: "Parliamentary law challenges the '2024 budget tables' and the federal government is waiting for an answer within 15 days”
Quote: "the appeal was submitted “on the pretext that the numbers mentioned in the budget items will change, and thus this is considered a change to the law and requires the implementation of a new law with a first and Second reading, and final approval.”
