Stability Of The Dollar Exchange Rate Between The Targeting Of The Central Bank And The Impact Of Regulatory And Random Variables

 Dr. Haitham Hamid Mutlaq Al Mansour  With the fluctuation in the value of the dinar against the dollar since last week, it was noted that there are some predictions and signals from here and there that hint directly or indirectly that the dollar contract will disintegrate to a state in which it will move far away from the target level.

In fact, some have predicted that the dollar will escape from the control of the Central Bank. Here we had a pause with these predictions and signals.

It is self-evident in the logic of supply and demand that we sense a rise in the exchange rate of the dollar against the dinar for reasons related to the tightening measures of the official supply, as the Central Bank targets the stability of the actual exchange rate and is trying to achieve a reduction in the gap between the nominal and real prices.

Therefore, it is not surprising that the dollar exchange rate has risen these days and for a week in particular. In this case, we say that the rise and fluctuation in the levels of the actual exchange rate cannot be judged based on it and concluded from it that the actual exchange rate may be exposed to a breakdown in the short term, because the fluctuation towards an increase during the week is not considered a fluctuation in the life of short-term changes, and also that the buffers of monetary policy are present and strong to maintain the stability of the exchange rate, because it uses monetary, financial and operational tools that aim to reduce the price level and keep inflation within an acceptable level.

And maintaining the level of foreign reserves within the desired growth rate and supporting the level of the dinar exchange rate against the dollar according to the fixed exchange rate system, which amounts to about 120 billion dollars, works to cover the source of currency.

The official exchange rate of the Central Bank is still maintaining its level and short-term rates, a path with an acceptable general trend within the controlled levels based on the effects of And external, organizational or random variables. It is also not possible to conclude that the dollar exchange rate will slip out of control in the short term, since the short-term price level did not rise beyond the 1515 range to the 1600 threshold or more, but rather returned to 1500 on Saturday evening.

In addition, the overall inflation index is controlled by the fiscal and monetary policy measures, as is known, through controlling the growth rate of foreign reserves and stabilizing the general price level resulting from reducing the internal supply of cash dollars in transactions, payments, contracts and commercial obligations since last year, criminalizing and regulating them.

The parallel exchange market has become of low impact outside the official exchange market, with a gap ranging around 10-18 for the total dollar demand and supply.

Therefore, it can be concluded that the clear stability witnessed by the dinar in its real levels is due to the stability of the exchange rate at this gap, in addition to the measures and policies of the Central Bank supporting the reduction of the gap between the two exchange rates for about a year, including the legal and monetary ones. Since the recent fluctuation was limited to the aforementioned 10-18 range, which means that the effectiveness of targeting is still within the acceptable level, since the parallel price system is considered subordinate to the targeted price system, since the first Based on the second in the mathematical and economic effects.

Therefore, it is too early to predict the dollar exchange rate will deteriorate in the presence of these political and procedural variables. 2024/07/14 https://economy-news.net/content.php?id=45216

RV UPDATE BY PIMPY, 15 JULY

 Pimpy 

 This is big... Article Quote: "According to the latest data that is available, transactions through the central bank electronic platform have considerably increased with daily transactions reaching $200 million which is consistent with the size of Iraq's economy.  This marks a substantial rise from...2023 when transactions were around $50 million per day."  

That's a huge increase of $150 million.  This is right on par with Iraq's economy but the fact that the transactions have increased is a big plus for people investing in Iraq dinar...  

Article quote:  "The transparency provides a realtime reporting on the FITR platform can also enhance market confidence in the Iraqi dinar.  

Investors and traders are more likely to trust a currency whose transactions are openly documented and monitored by regulatory authorities.  T

his increase in confidence can contribute to a greater stability in the foreign exchange market for Iraq dinar...Higher levels of activity transactions being reported on the FITR platform can indicate a vibrant and active economy.  A robust economy often translates to a stronger currency value as investors are more willing to hold the asset denominated in that currency."  This is good news but again you guys stay grounded.  Sandy by.  Every day there's more and more good news coming out of Iraq...This is great news.

🔥 Iraqi Dinar 🔥 Pre-1990 Value 🔥 Today IQD Value to Dollar RV News Guru ...

The framework gives the Sunnis the last chance to name the parliament speaker: no postponement after that

 7/14/2024

The Coordination Framework, which brings together the ruling Shiite political forces in the country, set today, Sunday, July 20, as the date to decide on naming a new speaker for the Iraqi parliament, stressing that after this date, the matter will be left to the members of the House of Representatives to choose for themselves who they see as suitable for this position.

The leader in the framework, Aid Al-Hilali, told Shafaq News Agency, "The Coordination Framework forces gave the Sunni political forces a deadline until July 20, i.e. after the end of the Ashura rituals, to decide their position and agree among themselves on the file of electing the parliament speaker."

He added that "if the Sunni political forces do not agree among themselves, a session will be held to elect the Speaker of the House of Representatives, in the first session of the legislative term, and the matter will be left to the representatives, and whichever candidate gets the highest number of votes will be the new president," stressing that "there is no postponement in this, as the framework forces want to resolve the issue quickly, as it has had a negative impact on legislative and oversight work."

Since the Federal Supreme Court (the highest judicial authority in Iraq) decided in November 2023 to terminate the membership of former Parliament Speaker Mohammed al-Halbousi, the political parties and forces have not been able to name a new Parliament Speaker due to the differences between them .  LINK

JUDY NOTES, 14 JULY

 Judy Note 

Numerous sources report that the Rodriguez monies (destined for humanitarian use) of the Global Currency Reset were released on Thurs. 11 July. Other monies including the St. Germaine Trust would likely be released sometime next week. 

Some Bond Holders and large Groups have been paid. Bankers have a booklet titled “Global Currency Reset” instructing them on how they can adjust to the gold/ asset-backed system.

---

Judy Note

 Wed. 10 July began the Global Debt Jubilee, although many felt it was a no news day – at least none that was revealed to us.

Wolverine knew it was the long waited for Debt forgiveness day. He posted in his room that notifications for exchange appointments for the Global Currency Reset of 209 nations commenced on that Wed. 10 July evening, with at least some liquidity expected to be available on Mon. 15 July.  BQQQM!!! The Debt Jubilee Begins July 10th! Prepare for the Revolution! – American Media Group (amg-news.com)

Also on late afternoon Wed. 10 July we received news that there was a Stock Market Crash Alert for the next day, Thurs. 11 July

Global Currency Reset:

• Wed. 10 July 2024 Frank26 Call: Hawaii Airlines and certain hotels were now accepting the IQD. HCL is accomplished and is international.
• Tues. 9 July Bruce, The Big Call: “I was told that this was the week for this to go and one of our sources said this should be our week.
• Wed. 10 July 2024 Debt Jubilee: BQQQM!!! The Debt Jubilee Begins July 10th! Prepare for the Revolution! – American Media Group (amg-news.com)

Global Financial Crisis:

• Wed. 10 July 2024: BREAKING: There is a Major Crash Coming on Real Estate | RLUSD, Ripple Stable Coin | The Quantum Financial System | Digital Assets and Frequency Healing Devices (video) – American Media Group (amg-news.com)
• Wed. 10 July 2024: US Debt Clock: It’s a Quantum Leap in Wealth Creation – The Man with the Plan: Donald Trump!(video) – American Media Group (amg-news.com)

Unfolding of Events. As the grand spectacle takes shape, a series of remarkable events will transpire:

• Bitcoin servers and data centers will face a decisive blow, leading to the fall of 99.5% of crypto-currencies, including China Coins.
• ISO20022 Coins, backed by Precious Metals, will emerge as a new financial paradigm.
• The Stock Market will crash, reshaping the global financial landscape.
• Quantum Systems will come to life.
• NESARA/GESARA/RV will pave the way for a new era of prosperity.
• Ten countries will unite to activate the Emergency Broadcast System, covering the entire globe.
• A cascade of shocking truths will be unveiled.

There will be an Internet Blackout.

• The White Hat Military is in control of the redemption process, which has released funds across the World for the Global Currency Reset.
• All banks have signed Non Disclosure Agreements.
• The GCR funds come directly from the US Treasury Department of Defense Operations – that go out to Treasury Departments in other countries.
• Japan has revalued their currency.
• Bond Holders have begun to be paid in Brazil.
• Bond Holders in the US have been promised to be liquid this week.
• Notifications have gone out to Tier 4a, a small group of Tier4b and some Bond Holders.
https://dinarchronicles.com/2024/07/11/restored-republic-via-a-gcr-update-as-of-july-11-2024/

BREAKING: Iraqi Dinar Reinstatement Plan Revealed - Major Currency Reval...

A new economic crisis is on the horizon.. The war between the US dollar and the Chinese yuan in the Iraqi market, 14 July

 7/14/2024

In an "unsuccessful" move, as described by economic experts, the Central Bank of Iraq has stopped dealing in the Chinese yuan after the US Federal Reserve accused Iraq of "inflating remittances.

" While economic experts warned of the effects of this decision on the local market and its causing an increase in the exchange rate of the US dollar and an increase in inflation rates, which has negative repercussions on the economic situation of the Iraqi family, they presented 3 solutions to the Central Bank of Iraq to continue the flow of remittances to China.

In the latest Iraqi government move to stop dealing in the Chinese yuan, informed sources revealed to Shafaq News Agency, yesterday, Saturday, that the Governor of the Central Bank of Iraq, Ali Al-Alaq, is making an unannounced visit to the United States of America to discuss with officials in Washington the decision of the US Federal Reserve to stop Baghdad from dealing in the Chinese yuan.

The visit of the Governor of the Central Bank of Iraq, Ali Al-Alaq, to ​​Washington coincides with a significant jump in the exchange rate of the dollar against the dinar, and more than two months after the visit of Prime Minister Mohammed Shia Al-Sudani to the United States.

"unsuccessful move"

Commenting on this decision, economic expert, Diaa Al-Mohsen, said, “The suspension of dealing in the Chinese yuan by the Central Bank of Iraq is an unfortunate step if we take into consideration that trade dealings with China exceed 65 billion dollars.”

Al-Mohsen added to Shafaq News Agency, "This decision will have a negative impact on the local market, and the demand for the dollar will increase, which means an increase in the exchange rate of the US dollar in the local market, which will increase inflation rates, which will have negative effects on the economic situation of the Iraqi family."

The economist points out that "the suspension of dealing in the Chinese yuan by the Central Bank of Iraq is a matter that has negative effects on economic organizations in the world, and may lead to the severing of their trade and economic relations with Iraq, due to the confusion of the policies of the Central Bank of Iraq that are not stable for a long period."

It is noteworthy that Iraq has strengthened its assets denominated in yuan through the Development Bank of Singapore to finance Iraqi trade and imports with China by about $12 billion annually.

Iraq has also moved to boost its assets in UAE dirhams and negotiated an increase in its euro-denominated assets to finance trade with the European Union, and Iraq has begun opening bank accounts in Indian rupees for a number of Iraqi banks.

"More political than economic"

For his part, the economic researcher, Ahmed Eid, believes that “the decision to stop dealing in the Chinese yuan is an American political decision more than it is an economic decision, according to the soft war that is being carried out under the influence of the strength of interests between the United States and China. ”

Eid pointed out during his interview with Shafaq News Agency, "The decline of America's military and commercial presence in Iraq left a security, economic and political vacuum that was controlled by Iran and China, which quickly filled that vacuum and seized the opportunity to penetrate Iraq, which is considered the fifth largest oil reserve in the world."

He continues in his analysis, "Within the multiplicity of interests and the American-Iranian conflict over hegemony and influence in Iraq, China has infiltrated through its soft power, to control the general trade market and export its industries and products to Iraq at competitive prices."

The economic researcher continues, "After the United States had been Iraq's trading partner since its invasion of Iraq in 2003, it is no longer able to compete with China today, which has swallowed up a large part of the trade exchange with Baghdad, which has made America feel threatened."

Eid explains at the end of his talk, "Most of the Iraqi supply and transportation companies are no longer in the hands of major traders, but rather are controlled by economic offices affiliated with militias and parties. These companies are trying, through various means, to smuggle dollars out of Iraq, or through cash exchange operations for the currency, which is what prompted the United States to continue imposing its sanctions on private companies and banks operating in Iraq."

It is noteworthy that the Central Bank of Iraq has issued several decisions since the beginning of 2023 that would maintain the stability of the general monetary and economic situation and confront the risks of fluctuations in the exchange rate of the Iraqi dinar against the US dollar, in addition to facilitating import and export operations by opening new horizons with international banks, including Chinese banks.

Among the decisions of the Central Bank of Iraq is to enhance the balances of Iraqi banks that have accounts with Chinese banks in Chinese yuan, as dealing in yuan directly without the mediation of the US dollar contributes to facilitating and accelerating financial transactions, and will reduce import costs and protect against the risks of fluctuating exchange rates within Iraq.

3 options for the Central Bank of Iraq

In turn, the economic expert, Mustafa Hantoush, says, “The Federal Reserve’s accusation of Iraq of (inflating remittances), i.e. transferring money in exchange for the entry of goods at a value less than the value of the transferred money or the non-entry of goods at all, here the Central Bank was unable to answer or defend because the Central Bank has not linked the Central Bank’s remittances to the goods that enter through the border crossings like all countries of the world for 20 years. In addition to that, the absence of this linkage causes a loss of no less than 5 billion dollars annually due to the failure to collect real (customs and taxes), and international accusations against Iraq of money laundering and currency smuggling.”

Hantoush added to Shafaq News Agency, "After this accusation from the Federal Reserve and the inability of the Central Bank to defend itself, there are several options before the Central Bank of Iraq, including quickly establishing a link between remittances and border crossings, contracting with a new company to flow remittances from Iraq to China (within the Central Bank), and transferring dollars instead of Chinese yuan through Iraqi banks owned by (foreign investors) that have accounts in (Citibank) and (JP Morgan), which may cause those banks to control 90 percent of the currency window, and a near halt to the work of the Iraqi banking system."   LINK