USD instability hits Iraq; US sanctions impact prompts CBI and finance chief to demand action, 5 AUGUST

 Shafaq News/ On Sunday, Parliamentary Finance Committee Head Atwan Al-Atwani and the Central Bank (CBI) Governor highlighted that dollar exchange rate swings are fueling economic instability due to the growing disparity between official and parallel market rates, citing duplicated US sanctions on Iraqi banks.

Al-Atwani, chairing a Committee meeting with CBI Governor Ali Mohsen Al-Alaq, emphasized that "exchange rate stability is crucial for the state,” noting “concerns about duplicated US sanctions on Iraqi and correspondent banks,” urging the CBI “to address the crisis effectively and tighten oversight of private banks to ensure procedural integrity.”

In turn, the Governor detailed the causes of exchange rate fluctuations, explained the electronic platform's role in trade control, and covered the housing initiative, US sanctions on Iraqi banks, and the CBI's foreign currency reserves.

“Our hard currency reserves are adequate to stabilize the market, and the CBI sells over $250 million daily to support foreign trade needs,” Al-Alaq stated, adding, “85% of foreign transfers between Iraqi banks and correspondent banks bypass the US Federal Reserve System."

In addition, he emphasized “the housing initiative's significance,” noting that “the CBI has issued 10 trillion dinars in real estate loans, and is now focusing on financing the construction of 23,000 housing units, prioritizing completed residential complexes.”

In July 2023, the US imposed sanctions on 14 Iraqi banks to restrict dollar transactions, aiming to curb the flow of US currency to Iran. This move has contributed to a surge in the dollar's value against the Iraqi dinar, driven by limited Central Bank policies, inadequate bank integration into the electronic platform, reduced cash injection, and high demand from numerous exchange offices.

RV UPDATE BY RAYREN98, 5 AUGUST

 RayRen98

  ...SOURCES ARE SAYING THAT THE RV WAS SUPPOSED TO HIT THE BANKS ON SATURDAY...THE CURRENT STATUS IS "HIGH ALERT" AND SOME HAVE REPORTED TO WORK EARLY THIS EVENING. TIME WILL TELL

RayRen98 

  3 LETTERS ARE "TALKIN" BUT I AIN'T "LISNIN" UNTIL I SEE SOME RESULTS! LOL THEY ARE LOOKING AT TONIGHT.

 RayRen98  

 [via Babysmom]   "SOME BANKS ARE SEEING A HIGH SELL RATE ON THE DINAR BUT SAY THEY CAN'T SELL IT YET...WAITING ON APPROVAL/CLEARANCE"

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  RayRen98 

  WAS JUST INFORMED BY A 3 LETTER... IF NOTHING CHANGES, BANKS WILL SEE LIVE RATES IN THE MORNING. TIME WILL TELL.

RayRen98

  IT IS BEING REPORTED THAT AN "ATTEMPT TO RELEASE" WAS UNSUCCESSFUL EARLIER TODAY... STANDBY...WHEN WE HEAR MORE, SO SHALL YOU.

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NOTICE: ALL SYSTEMS ARE "GO" FOR TODAY...LET'S SEE WHAT HAPP...FOR READ MORE: https://dinarevaluation.blogspot.com/2024/08/rv-update-by-rayren98-3-august.html

MILITIAMAN: Iraq Dinar - Iraq News - Iraq Central Bank - UST / US Federal Reserve - ...

Central Bank Governor Explains USD Price Fluctuation: 85% of Remittances Do Not Pass US Federal, 5 august

 Mawazine News – Baghdad

Central Bank Governor Ali Mohsen Al-Alaq revealed on Sunday the reasons for the fluctuation of dollar prices, noting that 85% of remittances do not pass through the US federal.

A statement by the Media Department of Parliament received by (Mawazine News) said that “the Governor of the Central Bank provided a full briefing on the reasons for the exchange rate fluctuation, the mechanism of the electronic platform and its role in controlling internal and external trade, as well as the file of the housing initiative, the US sanctions on Iraqi banks, and the status of cash reserves of hard currencies with the Central Bank.” Al-Alaq explained, according to the statement, that “Iraq’s hard currency reserve is enough to create balance in the market,” noting that “the Central Bank sells more than 250 million dollars a day to meet the requirements of foreign trade.”

https://www.mawazin.net/Details.aspx?jimare=252729

"What has happened in Iraq is a mess and can be fixed sooner than we think" by MNT GOAT, 4 AUGUST

ALIA NASSIF: THE CENTRAL BANK “EXECUTED” IRAQI BANKS WITH NEW PROCEDURES

Member of Parliament Alia Nassif commented today, Tuesday, after granting a license to the Arab Jordanian Bank and the Emirates Federation to work in Iraq, stressing that this method is killing Iraqi banks.

Nassif said in a tweet on the (x) platform, which was followed by / Today’s News /, “In this way, Iraqi banks are being executed. A license has been granted to the Arab Jordanian Bank and the Emirates Federation to work in Iraq, and they will start their work at the beginning of next September, alongside the National Bank. The license will also be granted to two banks (Kuwaiti and Qatari), while many Iraqi banks continue to stop and more of them will be stopped due to the management of the Central Bank of Iraq, which did not address the problem during the past period, but rather worked to enter them into contracts with the K2.”

She added: “Paying them money without results. The banking sector is being punished for mistakes for previous years in which it was under the supervision of the same current management of the Central Bank, so why was this management not punished for failing to fulfill its duty to supervise the work of those banks?!

(You can’t escape reality by pointing the finger to someone else. What has happened in Iraq is a mess and can be fixed sooner than we think. Both the CBI, the Judicial system and the banks are at fault. The laws are already in place only no one is challenging the corruption or punishing those who break the law. Not to say there has not been some, but most have not been challenged even. Now once the Feds stepped in and threatened to stop the dollar flow, we can see some reaction to this.)

Iraqi Dinar News Today Surprising Developments in Iraq

An Economist Calls For Consideration Of The Work Of Jordanian Banks In Iraq , 5 AUGUST

  Information/private..  economic affairs expert Ahmed Abd Rabbo called on the Central Bank of Iraq to reconsider the work of Jordanian and foreign banks in Iraq to evaluate their work compared to local Iraqi banks.

 Abd Rabbo said in a statement to the “Al-Ma’louma” agency,  “The Central Bank is working in a dualistic manner by not supporting the private banking sector and granting privileges to Jordanian banks,” noting that  “foreign banks, especially Jordanian ones, control the file of financial transfers, in light of issuing sanctions against half of the local banking sector from By the US Treasury Department. 

He added, “Today the Iraqi banking sector is facing a major problem and  we fear it will be completely annihilated, as happened in the industrial and agricultural sectors and thus Iraq’s dependence on imports,” pointing out that “the  Iraqi government must accelerate negotiations with Washington in order to lift the sanctions on Iraqi banks.”  He called for "activating the principle of fines for unintended errors that occur in banks instead of penalties."

 Specialists believe that the economic file cannot be handed over in this way, as  it is a sovereign matter that affects the security and economy of the state, with these banks taking over and penetrating the economy to a great extent,  which may make the Iraqi economy hostage to the Jordanian banks. https://almaalomah.me/news/72231/economy/اقتصادي-يدعو-للنظر-بعمل-المصارف-الأردنية-