DINAR REVALUATION UPDATE: The Dollar's Sudden Fall Against The Iraqi Dinar: What Are The Markets Hiding? 2024, 25 AUGUST

The Dollar's Sudden Fall Against The Iraqi Dinar: What Are The Markets Hiding? 2024

As of August 25, 2024, the United States Dollar (USD) has experienced a notable decline in value against the Iraqi Dinar (IQD). 1 This shift has sparked curiosity and concern among investors and economists alike, leading to questions about the underlying factors and potential implications for the global market.

Understanding the Shift

The USD to IQD exchange rate as of today stands at 1 USD = 1,299.639509 IQD.  1 This sudden depreciation of the dollar against the Iraqi Dinar contrasts sharply with historical trends, where the USD has typically held a dominant position in global currency markets.

Global Economic Indicators

The changing role of the US dollar in the global economy cannot be overlooked in this context.  2 Traditionally, the dollar has been the world's dominant currency due to the United States' large and stable economy, which comprises 26% of world GDP and is backed by investor protections and the rule of law. However, recent geopolitical events and trade conflicts have raised questions about the dollar's future status.

Iraq's Economic Situation

The Iraqi Dinar's recent strength against the dollar can be attributed to several factors, including government measures and market dynamics. 

Despite efforts to stabilize the dinar, the currency has continued to fall against the dollar, leading to negative impacts on commercial transactions in local markets. 5 The exchange rate reached IQD 1,540 to the dollar in the parallel market, compared to IQD 1,320 in the official currency auction approved by the Central Bank.

Market Analysis

The continuous decline in the exchange rates of the dinar against the dollar has prompted the Iraqi government to take daily measures to stabilize the currency's value. 

6 However, the disparity between the central bank's rate and the market's rate for one dollar has reached unprecedented levels, with the difference exceeding 296 dinars per dollar.

Factors Influencing the Exchange Rate

The widening gap between the central bank's rate and the market rate is a significant concern. This disparity is not in line with standard financial and banking regulations, which typically consider a range of 1 to 5 thousand Iraqi dinars or 1% to 3% as normal. The situation in the currency markets in Iraq suggests that traders dealing in dinar to dollar transactions wield more influence over market prices than even the central bank and the Iraqi government.

Conclusion

The sudden fall of the US dollar against the Iraqi Dinar in August 2024 reveals complex dynamics within the global and regional economies. While the reasons for this shift are multifaceted, it is clear that geopolitical events, government measures, and market forces are contributing factors. As the world watches how this situation unfolds, it remains to be seen how the global markets will react and whether the dollar's dominance will be further challenged.

The Dollar's Sudden Fall Against The Iraqi Dinar: What Are The Markets Hiding?, 25 AUGUST

 The Dollar's Sudden Fall Against The Iraqi Dinar: What Are The Markets Hiding?

 
Last updated: August 18, 2024  Independent/- The exchange rates of the US dollar witnessed a noticeable decline against the Iraqi dinar in the markets of the capital, Baghdad and Erbil, on Sunday morning, which raised questions about the reasons for this decline and its possible repercussions on the local economy.
 
With the opening of the Al-Kifah and Al-Harithiya stock exchanges in Baghdad, dollar prices recorded a noticeable decline, as the exchange rate reached 149,500 dinars for every 100 dollars, compared to the price of 149,800 dinars for every 100 dollars the previous day.

his decline reflects a noticeable shift in the exchange market that may have long-term effects on the Iraqi economy.
 
In the local markets in Baghdad, exchange rates in banking shops also witnessed a decline, with the selling price reaching 150,500 dinars and the purchasing price 148,500 dinars for every 100 dollars.
 
This slight decrease may be an indication of market volatility or changes in supply and demand for the dollar.
 
In Erbil, the capital of the Kurdistan Region, money exchange shops recorded a slight decrease in the price of the dollar, as the selling price reached 149,500 dinars and the purchase price reached 149,400 dinars for every 100 dollars.
 
This decrease, although slight, reflects a similar movement in the region's markets and may have impacts on trade and local economic activity.
 
Possible Reasons For Decline:
 
    Government or central intervention: This decline could be the result of intervention measures by the Central Bank of Iraq or the government to contain market fluctuations and enhance the stability of the dinar.
 
    Global Economic Changes: There may be an impact from global changes in oil prices or US economic policies that may contribute to exchange rate fluctuations.
 
    Adjustments in supply and demand:  Changes in supply and demand for the dollar in local markets can play an important role in moving prices.
 
Possible Repercussions:
 
The decline in dollar prices may have positive and negative repercussions on the Iraqi economy.
 
On the one hand, the decline may contribute to supporting the purchasing power of the dinar and reduce inflationary pressures.
 
On the other hand, this change may raise concerns about market stability and potential impacts on trade and investment.

Future Prospects:
 
Although the current decline in dollar prices may be an indication of the beginning of a change in the market, the continuation of this trend depends on several factors, including local economic policies and global conditions.
 
The coming weeks will remain crucial in determining whether this decline will continue or if it is just a temporary fluctuation in the markets.
 
These transformations raise questions about the strategies of the Iraqi economy and the extent of their impact on the daily lives of citizens, which makes it necessary to follow economic developments closely to know their full repercussions.    https://mustaqila.com/هبوط-الدولار-المفاجئ-أمام-الدينار-الع/   

LATEST FROM TONY , 25 AUGUST

TNT TONY

• Sat. 24 Aug. 2024 TNT Tony
•  “Just got word that in Iraq the lower denoms are being released on the streets right now. Start poppin. It’s on its way.”

---

 TNT UPDATE 

GOOD MORNING TNT IT'S FRIDAY AUGUST THE 23RD 20241:09 PM

THIS MORNING WAS TOLD TODAY IS THE DAY BUT WE DON'T KNOW THE TIME1:10 PM




GOOD THING TO BRING PEACE OF MIND... DNC IS OVER...Aug 23

NEVER THOUGHT IT WAS RELATED... THE THINGS THAT ARE RELATED ARE GETTING BETTER 1:11 PM




AT THE END OF THE MONTH SUDANI GOING TO TRY TO GET SANCTIONS OFF IRANIAN BANKS  1:12 PM




OTHER GOOD NEWS ISRAEL ACCEPTED THE PROPOSAL FOR PEACE     1:12 PM




SO WE WAIT FOR HAMAS - COULD HAVE PEACE, NO RETALIATION   1:13 PM




WE WILL SEE WHAT MAKES REAL SENSE.   1:13 PM




READY FOR IT TO BE OVER... READY FOR NEXT GREAT THING.1:15 PM

IT MIGHT SOUND HORRIBLE.... BUT... YOU CAN'T SEND ME YOUR PROBLEMS  1:15 PM




CAN'T FIX THEM... i CAN'T LOAN MONEY OR GIVE MONEY OR TELL YOU WHERE TO GET MONEY... NO ONE IS GETTING ANY. 1:15 PM




IT DOES AFFECT ME... ALL YOU ARE GOING THROUGH... I FEEL FOR YOU EMOTIONAL MENTALLY. 1:17 PM




HAVE SENATORS AND CONGRESSMEN WAITING TO GET PAID... PAID SOME LAST FRIDAY AND SATURDAY 1:18 PM




ALL OF THEM DID NOT GET PAID... SOME ARE WAITING RIGHT NOW...1:18 PM




SOME TOLD GETTING PAID YESTERDAY... PENDING... PAID TODAY... BUT DIDN'T HAPPEN...1:18 PM




SENATORS AND CONGRESSMEN NEED TO WAIT, TOO1:19 PM




ALL IS DONE... WAITING FOR EMAILS TO COME THROUGH THE SYSTEM Aug 23

IT'S NOT IRAQ IT'S NOT THE BANKS... ALL IS DONE THEY DID ALL THEY WERE SUPPOSED TO DO..1:19 PM




ALL HAVE DONE WHAT SUPPOSED TO DO BUT GO.... HOLD-UP SEEMS TO BE WHAT IS GOING ON IT THE MIDDLE EAST.1:20 PM




WAS HAPPY WHEN SAW THE AGREEMENT NOT TO INVOLVE IRAQ.... DON'T USE US AS A BATTLE GROUND... WOULD AFFECT THE WHOLE REGION 1:21 PM




WITH THESE THINGS OVER... COULD TAKE OFF... IRAQIS BEING TOLD ANY DAY... COMING DAYS.... SHOULD BE OVER TOMORROW1:22 PM

3 LETTER AGENCIES.... WAITING... TODAY AFTER 51:22 PM




ON WED WAS TOLD THEY WERE LOADING THE CODES TO RELEASE IT RIGHT THEN... OBVIOUSLY DIDN'T RELEASE.1:22 PM




GIVING ALL INFO... NOT HIDING INFO - ALL WE CAN DO IS WAIT FOR THE FINALIZED AGREEMENT WHICH CAN HAPPEN AT ANY MOMENT.

https://dinarevaluation.blogspot.com/2024/08/tnt-update-sudani-going-to-try-to-get.html

HIGHLIGHTS FROM MARKZ, 25 AUGUST

 HIGHLIGHTS FROM MARKZ

 News Weekend News With MarkZ 8-24-2024

                                                                                                                                                                                                        MZ: We are hearing that they are off “stuck” and have moved past the initial round of bond stuff and they are starting to prepare (in mass) the folks with German bonds. I am 100% certain that is what they are going to start processing next. Hopefully also releasing the money that goes with it.  I started getting this news last night. 

MZ: We are hearing money is moving fairly quickly…but we have heard that before. 

Member: What are some of the milestones or markers you are still looking for before our notifications Mark?

MZ: For me- I think we need to see more farm claims and settlements paid. And past Farm claims into CMKX and fines and Penalties. This is some of the milestones we should be able to see in the coming days…I would think….

MZ: Iraq is not the only monkey in the game….They are just the easiest to track….. . But we also track bonds and F&Ps…..also easy to track. Iraq is not the only cog in the wheel. But they just need to release that new rate.

IRAQ'S CURRENCY REFORM : DELETING ZEROS IN 2024

DINAR REVALUATION UPDATE: THE IMPORTANCE OF THE CBI AUCTIONS : TO CONTROL THE EXCHANGE RATE, 25 AUGUST

The Central Bank of Iraq's Billion Dollar Auction in August 2024

The Central Bank of Iraq (CBI) has recently conducted auctions that resulted in sales exceeding one billion dollars within a week in August 2024. This significant financial activity reflects the bank's role in managing the country's foreign currency reserves and economic stability. 1

Auction Details and Sales Figures

During the week in question, the CBI conducted auctions for five days, selling a total of 277,127,456, slightly lower than the previous week's total sales of $1,384,031,047.

Daily Sales Highlights

Highest Sales: The highest dollar sales were recorded on Wednesday, reaching 268,304,025.

Foreign Exchange and Cash Sales

Sales for foreign exchange amounted to 68,650,000.  1

Economic Context

The CBI's role in managing foreign currency auctions is crucial for Iraq's economic stability. These auctions help in controlling the exchange rate and ensuring a steady supply of foreign currency for various economic activities. 2

The Central Bank of Iraq sells more than a billion dollars in its auction within a week, 25 AUGUST

 The all out deals of hard cash by the National Bank of Iraq during the previous week, which was the closeout opened last week, added up to more than one billion bucks.

According to a correspondent, the Central Bank sold one billion, 135 million, 635 thousand, and 274 dollars over the course of the past week and the five days that the auction was open, at a daily rate of 277 million, 127 million, and 456 dollars. This was lower sales than the previous week, when sales totaled one billion, 384 million, 31 million, and 47 dollars.

The most noteworthy dollar deals were on Wednesday, when they arrived at 283 million, 616 thousand, and 416 bucks, while the least deals were on Tuesday, when deals arrived at 268 million, 304 thousand, and 25 bucks.

According to our correspondent, foreign remittance sales for the previous week totaled 1 billion, 66 million, 985 thousand, and 274 dollars—a 94% increase over cash sales of 68 million, 650 thousand dollars.