An Economist Explains The Reasons For The Dollar’s Rise And Sets A Condition For Its Decline - Urgent
Economy |Baghdad Today – Baghdad Financial expert Alaa Jaloub Al-Fahd revealed, today, Thursday (July 4, 2024), the reason for the rise in the dollar price again in the parallel market.
Al-Fahd said in an interview with Baghdad Today, "The dollar exchange rate in the parallel market is witnessing an increase, decrease and fluctuations as a result of the Central Bank of Iraq taking new measures regarding selling the currency to travelers and delivering the amounts exclusively from the airport," indicating that "there are also those who are trying to raise concerns with any new measures taken by the Central Bank for the benefit of some speculators."
He explained that "the Central Bank of Iraq has announced more than once that it will continue to sell the currency and cover all needs, whether for import or travel, and there are no concerns," adding, "But there are those who are trying to spread some negative concerns for the sake of profit."
He added that "the Central Bank of Iraq controls all monetary policy measures and the financial situation is reassuring," expecting that "the dollar exchange rate will decrease in the parallel market if all transactions are restricted to the electronic platform of the Central Bank of Iraq."
The exchange rate of the dollar against the Iraqi dinar witnessed a noticeable increase during the past few days, as the selling price reached 150 thousand for every 100 dollars. LINK
Breaking News: Basel Committee updates Bank Crypto Rules.
The new standards will be published later this month. These standards finalize the set of tables and templates banks use in cryptoasset disclosures.
Crypto asset disclosures are requirements for reporting entities to disclose information about their crypto asset holdings during annual and interim reporting periods.
Some common requirements include:
* Fair value estimates
* Risk concentration
* Balance sheet presentation ie companies need to present crypto assets separately from other intangible assets on a balance sheet.
For significant crypto asset holdings, reports must include: name, cost basis, fair value, and number of units held.
For crypto assets that are not individually significant, reporting entities need to disclose the aggregate cost bases and FAIR VALUES.
For annual periods, reporting entities need to disclose the method used to determine the cost basis of disposed crypto assets when calculating gains and losses.
The Basel Committee previously delayed the implementation date to January 1, 2026. As you can see, the date has been moved up significantly.
All in all, we are being told that the digital asset based trading system is about to move into real values. The first RV.
Money and business Economy News – Baghdad The financial advisor to the Prime Minister, Mazhar Mohammed Salih, revealed the reason for the continued rise in the dollar exchange rate in local markets, while stressing that this rise is short-term and does not constitute any relative importance in affecting the stability of the general price level.
Saleh said in an interview followed by "Al-Eqtisad News", "Despite the fluctuations in the parallel or irregular exchange market, whose short-term fluctuations are the result of noise from colored or confusing information originating from international or regional circumstances, or the issuance of some regulatory instructions adapted to foreign currency, which some speculators are trying to exploit to generate a trend of fateful profits in the exchange market, it can be said that the fixed exchange rate system in Iraq is still based on a strong foundation consisting of the country's international reserves."
Noting that "it is the highest in Iraq's history through the management of its foreign reserves, resulting from a surplus in the current account of the balance of payments at a significant rate that may reach (positive 7% of the country's gross domestic product)." He indicated that "foreign currency covers a percentage of more than 130% of the total currency currently issued into circulation."
Saleh added, "In light of the strength of the official central exchange rate and its role in financing nearly 90% of the private sector's foreign transfer transactions, excluding the government sector, the dollar-to-dinar exchange rate in the parallel market does not constitute any relative importance in its fluctuations in influencing the stability of the general price level, which has become static 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 1320 dinars per dollar."
He stressed that "this lack of influence is embodied in the state of stability of the relative prices of goods and services to a large extent, as the average annual inflation in our country does not exceed 3%."
He continued, "Based on the above, and in light of the strength of the foreign reserves supporting the Iraqi dinar, the value of which as liquid foreign assets exceeds $100 billion, 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 in short periods, due to urgent international or regional political events here and there, or in adapting some of the instructions regulating the monetary market, as we noted above."
He added, "After the decline of the dollarization phenomenon in domestic transactions, especially in contracts, obligations and payments within the country since last year and its legal prohibition, the parallel exchange market has become such that its general effects today only form a narrow economic scope of prohibited transactions practiced by informal markets, and at a rate of 10% of the total supply and demand transactions for the currency."
He stressed that "the stability of the dinar to dollar exchange rate that the country is witnessing even in the secondary markets above is a real and solid stability, and is derived from the strength of the impact of the price and quantity factors of the monetary and financial policies and their integration in imposing overall price stability in the country, and containing inflationary expectations that were caused by the parallel exchange market forces during the past years."
He added in his speech that "the irregular secondary market, due to the freedom of external transfer, falls under the influence of the official exchange market rate, whose operations are constantly expanding in favor of dealing with the fixed official exchange rate."134 views 07/04/2024 https://economy-news.net/content.php?id=44872
Article: "World Bank: Iraq maintains its status within the upper middle-income category" Quote: "The bank added that it classifies the world's economies into four income groups: low-income countries, lower-middle-income countries, upper-middle-income countries, and high-income countries, based on per capita gross national income. The measures of gross national income are expressed in US dollars."
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Question: "Iraq is supposed to join the WTO this 18th of July, is that correct?"
IT WAS REPORTED ON IRAQI TV...THAT IRAQ WILL BE FULL MEMBERS OF THE WTO JULY 18TH.
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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.
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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.”
Al-Gizani: Barzani’s visit is the culmination of a positive movement between Baghdad and Erbil
{Politics:Euphrates News} A member of the General Assembly of the Hikma Movement, Sami Gizani, promised the visit of the head of the Kurdistan Democratic Party, Massoud Barzani, "coronation" of a positive movement between Baghdad and Erbil.
Al-Jizani, during his hosting of the program {Free Word} broadcast by the Euphrates satellite channel this evening, said:
- Barzani's visit came to consolidate relations and the state of clarity and transparency is present in Baghdad and is the culmination of a positive movement between Baghdad and Erbil. - Baghdad remains the sponsor, and the country can for everyone under the constitution and laws to regulate the relationship with Erbil.
-The Sudanese government of Mohammed Shia has 3 elements of a force and is {a parliamentary arm, a coalition of state administration, and the personality of the prime minister}.
- Personal desires weaken the building of the homeland, and there are parties working to make crises and harmony and peace do not benefit them, and we need to make ranks and it is in Iraq's interest that Baghdad and Erbil are strong.
- Iraq emerged from a major crisis after the victory over the terrorist ISIS, and the sounds of starrel are working to create a repelling environment for the meeting, politics and the economy, and today we need a national voice that represents all Iraqis and the coalition of the state administration is a successful model of Iraqi unity.
- The size of the problems during the many 20 decades between Baghdad and Erbil and there are parties in the region talking about issues contrary to the constitution. We believe that the Constitution and the decisions of the Federal Court are enough to solve all crises. Therefore, there is a desire on the parties to whistle them and the conviction that dialogue is the only way to solve the problems.
Dialogue is a health condition and the political player has every strength in dismantling the scene and Barzani's visit to the coordination framework and the state administration reflects the state of maturity in the political scene.
- The personal contract affected the political scene between Baghdad and Erbil, and the dialogue will end the crises, and internal stability will block the way for foreign interference in Iraqi affairs.
- The exit of the international coalition forces from the country must be an Iraqi non-political decision, and the localization of salaries for the region's employees is a force for Baghdad and Erbil.
The head of the Kurdistan Democratic Party, Massoud Barzani, arrived today, Wednesday, in the capital Baghdad on an official visit, where Prime Minister Mohammed Shia Al-Sudani, who in turn confirmed that he has come an important way in building trust between the federal governments and the region, while Barzani pointed out that the Sudanese is leading the state with intentions that have reached everyone to this comfortable situation.
It is noteworthy that after a break that lasted about 6 years, the President of the Kurdistan Democratic Party, Massoud Barzani, visits Baghdad, in a sign of the positivity of the current relations between the Kurdistan region and the federal government.