Frank26
[Iraq boots-on-the-ground report]
FIREFLY:Mr Sammy...from what he's gathering and hearing in the rumor mill the currency swap out will be in November...But it's not official. He's not speaking for the bank.
But what he's hearing, he's thinking this is pretty good.
Government Advisor: There Is No Concern About Iraq’s Financial Situation And Our Foreign Reserves Are Diverse
Time: 10/02/2024 14:02:16 Read: 2,834 times {Economic: Al-Furat News} The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, reassured about the country’s financial and economic situation.
Saleh told {Al-Furat News} agency: “We should not worry about the ongoing fluctuations, whether in monetary gold or the various foreign currencies that make up the country’s foreign reserve portfolio, which varies from major foreign currencies and monetary gold and in accordance with the international standard investment guides that it adopts.
The monetary authority has high-level technical cooperation with multilateral international financial organizations, specifically the International Monetary Fund and the World Bank.”’
He stated, “Usually, the Central Bank of Iraq hedges in managing its sovereign investment portfolio with a well-studied and highly sensitive diversification, with standard ratios and precise weights for each foreign currency, in addition to the cash gold from which the foreign reserves are composed.
This is within the scope of what is called hedging against the risks of fluctuations in currency and gold exchange rates, which is a policy that expresses efficiency.” Managing the country's investment portfolio according to diversification in various foreign currencies and gold. Saleh explained,
“A fall in the market value of gold, for example, must be offset by a rise in the value of the dollar or other foreign currencies through managing the components of the foreign reserves portfolio itself, as
diversification is an important pillar of the
hedging policy in managing investments in foreign assets from currency exchange rate fluctuations.” foreign currencies and gold by diversifying the country’s sovereign investment portfolio.” ‘
He pointed out that "the sovereign investment portfolio avoids what is called in the literature of the accounting policy of central banks (unrealized losses), by immediately realizing (unrealized profits),
which are the same unrealized profits that correspond to the unrealized losses resulting from the fluctuation of gold or foreign exchange prices at the time." same".
He pointed out that "a good diversification policy, in the assets or holdings of the investment portfolio,
provides sufficient neutrality in preserving the total market value of the country's foreign asset reserves and always stabilizing their value." https://alforatnews.iq/news/مستشار-حكومي-لا-قلق-في-الوضع-المالي-للعراق-واحتياطنا-الأجنبي-متنوع
yada
Article: "- The Central Bank of Iraq launched its financial transfers to Turkey in the euro currency."
This means the business with Turkey, primarily the pipeline that was halted in March of 23 due to illegal usage is now opening back up with transfers in Euros.
Add this to the Iraqis receiving their salaries from Jan 24 to Aug 24, we are in for great celebration with the rate release. IMO
Economists Determine The Reasons For The Rise In The Dollar In Iraq And Expect It To Exceed 160,000
Economy Iraq Dollar prices Dinar to rise 2024-10-03 01:23 Shafaq News/ The “Future Iraq” Foundation for Economic Studies and Consultations, on Thursday, attributed the reasons for the rise in the price of the dollar against the dinar in Iraq to the decline in transfers of other currencies and the inability to cover the demand for foreign currency for the purpose of import, expecting the rise to continue, bringing the price of one dollar to 1,600. dinar in the coming period.
The head of the institution, Manar Al-Obaidi, said in a statement received by Shafaq News Agency, that the prices of the dollar against the dinar during the past days reached the range of 1,550 dinars per US dollar.
Al-Obaidi attributed the reason for the rise to the decline in transfers of other currencies, specifically the UAE dirham and the Chinese yuan, as a result of the large restrictions set by correspondent banks that are in the process of enhancing the balances of these currencies,
in addition to the reservation of the banks under the Citi-Pilot project in opening accounts for operating companies and limiting them to working with companies. She had previously been treated differently than others.
Among the reasons that the head of the institution spoke about is “the inability of all transfer mechanisms to cover the demand for external currency for the purpose of importing some goods, specifically mobile phones and gold, which are considered the highest value goods for import, which prompts importers to resort to the parallel market for the purpose of importing.”.
He added, "It is expected that the dinar will continue to decline against the dollar, and it may reach rates of 1,600 dinars per dollar in the coming months if the problems are not addressed through practical solutions."
1- Increasing the network of correspondent banks around the world, especially in the UAE and China.
2- Controlling financial policy by limiting the entry of some types of goods in order to reduce demand for them versus supply.
3- Pressure on the banks under the Citi-Pilot project to be more open to accepting a wide range of clients.
4- It may be necessary to temporarily prevent the import of some goods to reduce the demand for foreign currencies until more organized and smooth solutions are found for the external transfer process. Al-Obaidi said,
“Without adopting these solutions, the dinar will continue to decline against the dollar and may exceed the 1,600 barrier soon.”
In turn, economic and financial expert Abdul Rahman Al-Mashhadani attributed the rise in the dollar exchange rates in Iraq to
political rather than economic reasons..
Al-Mashhadani said in a statement to Shafaq News Agency, “The dollar has stabilized for a long period in the past few days at 149 to 150 thousand Iraqi dinars for a $100 bill, especially after transferring the dollars of real travelers to the airport, organizing the sales process in a smooth manner, and resolving the crisis of bottlenecks on exchange companies and payment companies available inside.”
"Airport." He added, "There are no economic reasons or justifications behind the rise because the central bank is still financing large amounts of foreign trade, and this is the important element that covers the volume of orders for merchants."
The expert expected that "the rise in exchange rates is due to the
unrest witnessed in the region and the
fear that Iraq is one of the stations that could be targeted,
which prompted merchants to liquidate the accounts of debtors and creditors, especially those who have obligations to merchants abroad.
Fear of instability may cause a rise and thus will be affected."
The merchant must pay what he owes. He noted that the second matter “is the fear and panic that afflicts people in such crises.
They turn to converting dollars for fear that things will get worse and they will be forced to travel or emigrate, even if they are inside Iraq,” adding that “the dollar is the safest means at hand because it is needed in "Markets."
The price of the dollar rose in local markets to reach approximately 155 thousand dinars compared to 100 dollars after the events that the region witnessed, including military operations in Lebanon and Iran on the one hand and Israel on the other hand.
https://shafaq.com/ar/اقتصـاد/م-سسة-اقتصادية-تحدد-اسباب-ارتفاع-اسعار-الدولار-بالعراق-وتتوقع-وصوله-لـ1600-دينار
Militia Man
Article: "Central Bank Governor: New mechanism for financial transfers to Türkiye in euros launched"
The amount of coordination that must be on going behind the scenes must be intense now.
If you're going to create value, you're going to have to have smaller denomination and you likely will have to have coins. There's no need for coins if you do a lop. There's none. They will not ever do that and the reason why is because how in the world could you get by with a one note and the value of it at .0007. Come on.
...Remove the zeros...it's not to diminish the value of the currency or to keep the currency the same as you might hear from others.
They're talking about international. I can't stress that enough...They're going to need an Article VIII complaint, Article XIV compliant currency with the IMF. They're going to have to agree to those obligation and that would mean a change of exchange rate to a Real Effective Exchange Rate.
Iraq Rethinks Bank Merger Plans Iraq's Cabinet has revised an earlier decision to merge its Agricultural, Industrial and Real Estate B...