Tuesday, July 16, 2024
Parliamentary Finance Committee Comments On US Decision To Stop Iraq's Transactions In Chinese Yuan
Posted On2024-07-16 By Sotaliraq Member of the Parliamentary Finance Committee, MP Moeen Al-Kadhimi, described today, Tuesday, the decision of the US Federal Reserve to stop transfers in Chinese yuan as “arbitrary” against the Iraqi economy.
[size=45]Al-Kadhimi said in a statement, "The decision to stop transfers in the Chinese yuan was issued by the US Federal Reserve, claiming that there were suspicions about some transfers in the Chinese yuan."
[size=45]He pointed out that "the Central Bank of Iraq has contracted with an international company to evaluate and monitor transfers, and this company is a source of acceptance and trust for the US Federal Reserve."
He pointed out that "after a short period, the Central Bank of Iraq will resume transferring remittances in Chinese yuan to Iraqi traders in general," indicating that "these measures of the US Federal Reserve are considered arbitrary against Iraq and its national economy."
The Central Bank of Iraq stopped dealing in the Chinese yuan after the US Federal Reserve accused Iraq of “inflating remittances.”
During the current period, America has worked to destroy the Iraqi currency by imposing sanctions on private banks and preventing the dollar under many pretexts, which in one way or another led to a severe financial crisis in local markets. LINK
"RV UPDATE" BY ARIEL, , 16 JULY
ARIEL
@Prolotario1
(Image)-Speculation
■ Monday, July 15, is noted as the end of a potential scare event. This suggests that the primary phase of the operation concludes on this date.
■ Tuesday July 16, indicates a "Lockdown" phase. This could mean an actual lockdown or a period of intense security and control to manage the aftermath of the scare event.
■ The lockdown phase is set to end on July 25. This period might be used for consolidation, assessment, and preparation for subsequent actions.
■ July 25th This may indicate a time of unexpected gifts or surprises. In this context, it could mean a major revelation or positive outcome resulting from the operation, celebrated as a significant victory.
Will things pan out in this order? We shall soon find out. Qoute "I stand to protect spring but fall you are rebelling or is it possibly the spirit of God will cause many to fall in Fall? There is a tumultuous rendering that is coming. I shall take it for the summer and bring forth much in the temperatures... strange July, strange July... hypnotic November and Oh Christmas! End qoute. ~Kim Clement
Turkey aims to become ful...
Coffee with MarkZ. 07/16/2024
Dollar Fluctuates Amid Tight Monetary Authority Measures, 16 JULY
Economic 2024/07/16 Dollar fluctuates amid tight monetary authority measures 678 , days before the implementation of the Central Bank’s decision to sell dollars exclusively to travelers at airports, the dollar exchange rates witnessed clear fluctuations in the parallel markets, as they exceeded the barrier of 150 thousand dinars for every 100 dollars, a number that specialists see as possible (stability or decline) in the coming periods as a result of the Central Bank continuing to meet the requirements of foreign trade, which could lead to a decline in the effects of the parallel market, stressing the need to double efforts to make the new experiment of granting travelers dollars a success for fear of the continued rise of the green currency.
The Central Bank's decision to grant the green currency exclusively to airport travelers has come into effect, amid anticipation of the continued fluctuation of the exchange rate in the parallel market, which observers fear will affect the purchasing value of prices, while the Prime Minister's Advisor for Financial Affairs, Dr. Mazhar Mohammed Saleh, sees the opposite, as he explains that through "the strength of the official central exchange market, the exchange rate of the dollar to the dinar in the parallel market does not constitute any relative importance in affecting the stability of the general price level, which has become stable in its components and trends due to the influence of the prevailing official exchange rate factor."
Amidst this, economic experts believe that among the tools for controlling exchange rates are the recent measures represented by introducing the Customs Data Automation Program (ASYCUDA) system, stressing that this important government measure is an essential part of limiting the rise in the dollar price in the parallel market.
Financial Affairs Advisor, Dr. Mazhar Muhammad Salih, said yesterday, Sunday, in a statement to the Iraqi News Agency (INA): "There is an international factor that imposes controls on the so-called banking compliance in financing the demand for the dollar from our country's international bank accounts in foreign currency, and there is also an internal factor that benefits from the actions and pressure of the external factor in order to obtain temporary or emergency profit gains, especially in cash dollar transactions."
He explained that "the dominance of the fixed exchange rate system in Iraq, based on an international reserve base, is the highest in the history of Iraq and its monetary policy, as foreign currency covers more than 100 percent of the total currency currently issued."
He continued: "Through the strength of the official central exchange market, the exchange rate of the dollar to the dinar in the parallel market 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 as a result of the influence of the prevailing and dominant official exchange rate factor currently in financing foreign trade (imports), amounting to 1320 dinars per dollar, which is responsible for financing 90 percent of Iraq's foreign trade."
He stressed that "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 only form 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."
He pointed out that "the stability of the dinar to dollar exchange rate that the country is witnessing even in secondary markets is a real and solid stability, and is derived from the strength of the impact of the price and quantitative factors of the monetary and financial policies and their integration in imposing overall price stability in the country, and containing the inflationary expectations that were caused by the parallel exchange market forces during the past years."
It is noteworthy that the Central Bank's sales of hard currency last week amounted to more than one billion dollars through the currency auction that was held over four days, at a daily rate of 272 million and 80 million and 368 dollars, while sales of foreign remittances recorded 991 million and 141 thousand and 473 dollars, which indicates, according to specialists, the possibility of achieving clear relative stability in the various prices of goods and materials, and their not being affected by the parallel exchange rate.
The new mechanism for granting the "dollar", according to the Central Bank, aims to provide foreign currency to the real traveler and pass sound transactions, in addition to facilitating travelers' access to the dollar faster.
According to the "Monetary Authority", the mechanism includes the traveler going to authorized exchange companies spread across all cities to deliver the amount in dinars equivalent to the citizen's share of the dollar according to the official exchange rate of the Central Bank of Iraq.
The company will enter the data of the traveling citizen and upload his name on the electronic platform of the Central Bank of Iraq and deliver him a receipt confirming his deposit of the dinar, to receive the cash dollar inside the airport exclusively.
In turn, the economic expert Dr. Nabil Al-Marsoumi, during his interview with "Al-Sabah", sees the existence of several closely related factors that contribute to the rise in the exchange rate, some of which are real and others are psychological, as the real factors are represented by stopping bank transfers in the Chinese yuan due to suspicions of corruption on the subject, in addition to stopping the injection of cash dollars into the parallel market and the new procedures of the Central Bank that limit sales to air ports and airports.
The expert Al-Marsoumi attributed the reasons for the fluctuations to the launch of the general budget for the year 2024 and the approval of the budget schedules, as this leads to an increase in public spending in its operational and investment aspects, which naturally leads to an increase in consumer demand and an increase in investment demand, and thus an increase in imports and an increase in pressure on the dollar.
Regarding psychological factors, the spokesman indicated that "the fears among citizens went towards the possibility of the dollar rising in the near future, and therefore there is a great rush to buy it from the parallel market, which caused its exchange rate to rise by 3 to 4 percent, expecting that "the market will calm down soon as a result of several factors, most notably the negotiations that the governor of the Central Bank may conduct in Washington regarding bank transfers."
RV HIGHLIGHTS, 16 JULY
RV HIGHLIGHTS
"Western Union has ceased operations in Iraq following instructions from the US Federal Reserve Board."
"The US has begun to abandon Iraq by restricting the use of dollars and abandoning purchases of Iraqi oil"
Jalil Al Rami: Tampering with electronic platforms has had a negative impact on the parallel market.
Jalil Al Rami - Economic Expert
Iraq_24
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GESARA'S HISTORY AND TIMELINE
20 September
Zim Notes, Bonds, Agro Cheques and GESARA Benefits:
Facts about Zimbabwe:
1. Zimbabwe wants to join a bank founded by the BRICS group of emerging nations — but the US de-dollarization debate has already started before the country's application has been approved.
2. Zimbabwe has been in an economic crisis for years, with inflation running at 101.3% in July compared with the same month last year.
3. Zimbabwe's official currency is the Zimbabwe dollar, but John Mangudya, the governor of the country's central bank, told Bloomberg in July the US dollar was used in 75% of all transactions in Zimbabwe.
4. Zimbabwe's government banned the use of foreign currencies as legal tender in 2019. Mnangagwa said at the time that the country's economy was "at the mercy of US dollar pricing, which has been a root cause of inflation."
5. The country was forced, however, to reverse the ban in June 2022 to rein in inflation.
6. A liquor-store owner in Zimbabwe, told the Associated Press in August. "How can one budget with the Zimbabwe dollar that is always changing in value? It is not stable, and we have been burned before."
7. Zimbabwe’s gold-backed digital currency comes a year after the country launched gold coins on July 25, 2022 to stabilise its rapidly devaluing currency.
8. In May 2023 Zimbabwe released a gold-backed digital currency for peer-to-peer and peer-to-business transactions as well as to act as a store of value as the country’s currency continues to lose ground against major currencies.
9. Holders of physical gold coins, at their discretion, will be able to exchange or convert, through the banking system… into gold-backed digital tokens,” the Reserve Bank of Zimbabwe said in a statement inviting individual and corporate entities to use the digital currency that can be bought either in Zimbabwean dollars or foreign currency.
10. Zimbabwe now joins other African states like Nigeria, Ghana and South Africa that have introduced digital currencies, even as several others have plans in the works.
11. The gold-backed digital currency is backed by a certain amount of gold, which helps keep its value stable, this currency is tied to the market value of the gold – unlike a fiat currency.
12. The Zimbabwe gold-backed digital currency will be used as legal tender and a store of value alongside the Zimbabwean dollar and bond notes.
13. Users can buy and sell it using Zimbabwean dollars and other foreign currencies.
14. Ideally, backing a digital currency with gold involves having a certain measure of gold reserves and depends on the current market value of gold.
15. The Royal Bank of Zimbabwe is $835,000,082,302,000,000 strong (13 metric tons of in ground gold estimated to yield $14 billion per annum by RBZ going forward) Central Bank Zimbabwe.
16. Historically, there have been major policies around currencies as legal tender in Zimbabwe, including the 2009 adoption of the US dollar after hyperinflation decimated the value of the local currency (the very reason the 2008 to 2009 Zim Dollars with its high amounts were printed - the country experienced hyperinflation that ended in 2009 where people lost all their money and savings).
17. In 2009 the Zimbabwe dollar was demonetised (struck off as legal tender) as the use of multi-currencies takes precedence.
18. Recent developments are part of a wider strategy towards an ongoing re-dollarisation process (for the same reason as Iraq is re-dinarisation).
19. Zimbabwe is now in a process to get all the 2008 to 2009 Zim Promissory Notes (Bond) of the streets.
Now you know why Zimbabwe is:
- re-dollarising (reviving) their own currency, and
- why they pegged their Zim dollar to gold recently.
Hold on to your 2008 / 2009 Zim dollars (Bonds), the hammer will soon drop!
Speculation values here and here and here and here and here and here and here as well.
Disclaimer
I inform, you choose. In this library we don't give false hope or news for sensation. The info we share is based on reality.
@GESARA4DUMMIES
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