The difference between the exchange rate and the effective exchange rate is this: An exchange rate is a price at which one currency can be exchange for another. It reflects the current market value of a currency in relation to another currency.
The Real Effective Exchange Rate on the other hand is a more comprehensive measure that evaluates a country's currency relative to a basket of other major currencies adjusted for inflation...
The REER provides insights into a country's international competitiveness by considering how much goods and services cost in different countries...They have a Real Effective Exchange Rate already. It's being used...
FRANK26: "SUDANI ALREADY TOOK CARE OF THIS"..........F26
To avoid major chaos... indirect negotiations between Tehran and Washington in Baghdad
10/12/2024
Baghdad
An informed source revealed, today, Saturday (October 12, 2024), an unannounced movement for indirect negotiations between Tehran and Washington in the Iraqi capital, Baghdad.
The source said in an interview with "Baghdad Today", "Washington is very concerned about the acceleration of events in the Middle East and the direct clash between Tehran and Tel Aviv and the latter's pursuit of a military response targeting Iranian sites in response to the missile attack that targeted its bases weeks ago."
He added, "Washington is pushing towards creating an undeclared movement in coordination with Baghdad to hold indirect negotiations with Tehran in order to arrange matters and agree on specific paths that defuse any conflicts that lead the region into great chaos."
The source pointed out that "all Gulf countries support Washington's option to conduct direct or indirect negotiations with Tehran to avoid the conflict getting out of control," stressing that "according to the indicators, Gulf capitals are pressing America to prevent Israel from targeting Iranian oil or gas facilities, nuclear stations, or any targets that would lead to a comprehensive war in the region that could have serious repercussions that threaten its oil fields and energy sources in general.”
He added, "Baghdad has actually begun to arrange the atmosphere and seek to crystallize priority understandings that may be the beginning of upcoming meetings, especially since all parties are open to the negotiations file, even if they are indirect."
Israeli Prime Minister Benjamin Netanyahu ordered Israel's military leadership at least twice, in 2010 and 2011, to prepare for imminent strikes on Iran. However, in both cases, the security establishment questioned the legitimacy of the order, which was issued without the necessary authorization from the cabinet, which led to Israel not entering this war.
Today, Israel is once again on the verge of striking Iran, but this time Netanyahu will have no problem getting his government's approval, and the leaders of the occupation army are not as opposed to such a move as they were before.
According to a report by the British Economist Council, Israeli leaders believe that the ballistic missiles launched by Iran on October 1 left them no choice but to respond, and in fact, the form these retaliatory attacks may take could have far-reaching consequences for the Middle East and beyond.
According to the report, Israel is considering four types of targets. Netanyahu has long favored bombing sites where Iran enriches uranium and conducts research for its nuclear program. But these sites are spread across the country, in heavily fortified underground sites, which would require causing massive damage and launching large numbers of bunker-busting missiles from dozens of aircraft at a distance of at least 1,200 kilometers from Israel. However, it may be difficult for him to delay the Iranian nuclear program for more than a few months.
The most vulnerable strategic target is Iran's major ports, especially its oil terminals, which provide most of Iran's foreign exchange income. Israeli strategists believe that destroying these ports would deal a severe blow to Iran's already struggling economy. They hope this will spark further unrest inside Iran. Some dream that this could lead to the regime's downfall.
The third option for the occupation army is to target the country's leaders directly, just as Israel has attacked the leaders of the resistance factions (Hezbollah in Lebanon and Hamas in Gaza). This option is very difficult, because senior figures in Iran will likely take refuge in secret, protected locations if an Israeli strike appears imminent. In fact, the impact of such attacks is far from certain. The question of who will replace Iranian Supreme Leader Ali Khamenei is already the subject of much debate there.
But the most obvious military response, according to the British magazine, would be to launch a counterattack on Iranian missile bases, and this option is perhaps the least likely to provoke Iran again. But Netanyahu believes that Israel has a historic opportunity to reshape the region. And this time, some of his generals .agree with him, if not all of them.
Dee, Freedom Fighter, and I spoke by way of a phone conference to our CBI Contact in Iraq.
He talked about how his people are moving towards digital banking starting next month utilizing debit cards, credit cards, and point of sale.
Through the use of a smartphone technology, the Iraqi people will be utilizing an electronic wallet that enables them to do International exchanging of currency across borders through Western Union, MoneyGram, and Visa.
Oliver Wyman International managing company has been helping Iraq's people understand the process of digital transactions. The move to retail inclusion has helped their ability to move toward an independent use of their money allowing them to move away from the electronic platform (overseen by the US) in Iraq as well as ending their currency auction window by the end of this year.
This allows Iraq to become a correspondent bank or Direct to Direct Banking International trading system going forward.
Iraq started Phase 2 of integrating their ports and borders with the ASYCUDA system last month, and they are still implementing ASYCUDA throughout Iraq. Almost all ports will be connected.
This will enable Iraq to interface their currency rates with ASYCUDA from their concluding recommendations of the WTO.
"The Automated System for Customs Data (ASYCUDA) is a computerized customs management system that covers most foreign trade procedures. It handles manifests and customs declarations, along with accounting, transit and suspense procedures. It also generates trade data that can be used for statistical economic analysis. The ASYCUDA software is developed by UNCTAD.
ASYCUDA uses international codes and standards developed by the ISO (International Organization for Standardization), WCO (World Customs Organization) and United Nations. It can be configured to suit the national characteristics of individual customs regimes, national tariffs and legislation. ASYCUDA provides Electronic Data Interchange (EDI) between traders and customs using prevailing standards, such as XML."
👆 In this last paragraph, these are the ISO (INTERNATIONAL ORGANIZATION FOR STANDARDIZATION) currency codes ie. IQD, VND, USD etc. we spoke of a month or two ago that will be interfaced into the new QFS.
Once again, the fluctuation in the US dollar exchange rate has returned to the forefront, and this time it is due to speculators and traders of crises and wars, exploiting the war currently being waged by the Zionist entity against our Arab people in Palestine and Lebanon and the confusing security situation resulting from that.
The current level is above 1,500 dinars on the black market, and the continuation of this problem from time to time can be attributed to several reasons, including before 2023 the lack of control over the organization of trade financing and the lack of a clear trade policy, the entanglement of policies and the lack of an annual import program for the private sector in terms of quantities and amounts, but imports are open and without controls on external transfers.
In addition to "the lack of control over illegal imports and unofficial border crossings, as well as the presence of about 1,200 exchange offices spread across all governorates that are not licensed by the Central Bank and deal in cash dollars and about 12,000 outlets for disbursing pensioners' salaries and social care that deal with its trading at the exchange rate on the black market." And that "most traders who obtain the US dollar at the official price from the Central Bank, but they sell their goods in the local market at the black market price, as well as the lack of global correspondent banks previously dealing with our banks and accounts were not opened for them in the currencies of countries with which we have extensive trade exchange such as China, India, Turkey and the Emirates."
Also,
"the failure of traders and some Banks comply with international banking standards that guarantee that the dollar reaches the final beneficiary, so dollar transfers are manipulated and reach countries that are sanctioned by the US or are internationally besieged. Therefore, the efforts of the Central Bank and the government in 2023 focused on drawing up a strategy for financial and banking reform in order to control the stability of the exchange rate.
“Among these strategies are organizing foreign trade financing, building new international understandings with global banks, and opening accounts for our banks in correspondent banks, as more than 30 accounts have been opened with American, Chinese, Emirati, Turkish, and Indian banks. We expect that during the next two months the number of Iraqi banks that have accounts in correspondent banks will increase due to the efforts made by the Central Bank to provide aid and assistance to them and coordinate with the targeted correspondent banks.
“Opening dealings with local currencies such as the Chinese yuan, the European euro, the Emirati dirham, the Turkish lira, and the Indian rupee in foreign transfers with the aim of reducing the demand for the US dollar, in addition to taking measures in cooperation between the Central Bank and the government to expand the comprehensive digital transformation from the cash economy to the digital economy and stimulate the use of electronic payment tools.
This strategy aims to “put pressure on speculators dealing in cash dollars in the black market and limit their activities that harm the national economy, which was discussed in last week’s meeting of the Prime Minister in the presence of the Minister of Finance, the Governor of the Central Bank, advisors, and directors of government banks.” It should be noted here that "the availability of foreign exchange reserves for the Central Bank exceeding 100 billion dollars and a gold reserve exceeding 143 tons confirms that the Iraqi dinar will recover and is strong, as the local currency in circulation is covered by the foreign exchange reserve, in addition to the other executive measures to support and stimulate the local product and control the monetary market and the commercial market, which will control the exchange rate, as I expect, in the near future.
Article: "To avoid major chaos... indirect negotiations between Tehran and Washington in Baghdad"
Quote: "Baghdad has actually begun to arrange the atmosphere and seek to crystallize priority understandings that may be the beginning of upcoming meetings,
especially since all parties are open to the negotiations file, even if they are indirect"
