Thursday, July 4, 2024
Al-Sudani's Financial Advisor Reveals The Reason For The Continued Rise Of The Dollar And Confirms: Short-Term
Al-Sudani's Financial Advisor Reveals The Reason For The Continued Rise Of The Dollar And Confirms: Short-Term
Posted On 2024-07-04 By Sotaliraq The financial advisor to the Prime Minister, Mazhar Mohammed Salih, revealed on Wednesday 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 that “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).” Indicating that “foreign currency covers a percentage of more than 130% of the total currency currently in circulation.”
Saleh added, “Given 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 represent 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 1,320 dinars per dollar.”
He stressed that “this lack of influence is embodied in the state of relative stability of 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 statement 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 at the fixed official exchange rate.”
The dollar price recorded a rise today, Wednesday, with the closing of the Al-Kifah and Al-Harithiya stock exchanges, reaching 149,000 dinars for every 100 dollars, as the price recorded this morning 148,500 dinars. LINK
LATEST FROM FNU LNU, 5 JULY
Fnu Lnu
Back in 2011, I was told by my attorneys, that the revaluation would follow the guide-rails set out by Dr. Shabibi. Dr Sinan Al Shabibi has quite the curricula vitae in that he...held a BSc in Economics from Baghdad University (1966), a Diploma in Advanced Studies in Economic Development, an MA in Economics from the University of Manchester (1970, 1971), and a PhD in Economics from the University of Bristol (1975). He was said to be an authority on The Marshal Plan, which in essence is what is happening in Iraq at this very moment. I was also told that the plan was to resurrect the pre-invasion Dinar valued at $3.22 or there abouts.
I was also told that Iraq would have no need of using the IMF model of baskets of currencies, of which an average is calculated, as that would drag down the IQD and raise up inferior currencies. In other words, a fixed rate, at least during the reconstruction/infrastructure phase.
This was 13 years ago and time necessitates changes sometimes. It seems nothing is etched in stone these days but of the many things I was told in the presence of a UST agent and a couple other attorneys, everything they said at that meeting has come true so I'm going to stick with what has been dependable info. I am, however, a little surprised at the flood of info coming forth. I would have thought they would hold their cards a little closer to the vest. With that being said, never rule out the old trick of misdirection
An Economist Explains The Reasons For The Dollar’s Rise And Sets A Condition For Its Decline - Urgent
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 BY GOLDILOCKS
GOLDILOCKS
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.
© Goldilocks
https://www.ledgerinsights.com/basel-committee-updates-bank-crypto-rules/
https://www.ledgerinsights.com/basel-committee-bank-crypto-disclosures-2/
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