CENTRAL BANK DENIES AUDIO RECORDING ATTRIBUTED TO AL-ALAQ
(More propaganda to bash Ali Al-Alaq. They simply don’t want the enormous transformation of Iraq that is here and more is coming. They will no longer be able to steal the way they have in the past. Guess they will have to get creative again….lol…lol…. 😊)
A responsible source at the Central Bank denied, on Thursday, an audio recording attributed to the Central Bank Governor, Ali Al-Alaq.
The source said in a statement reported by the official news agency, and seen by “Al-Eqtisad News”, that “there is no truth to the recording attributed to the Governor of the Central Bank, Ali Al-Alaq, in which he spoke about smuggling $250 million daily through remittances and the rise in the dollar price.”
He added that “the Central Bank has achieved a major accomplishment in putting the external transfer and cash sale of the dollar and other currencies on a transparent path that is consistent with international standards and practices and has received wide international acclaim.”
He continued that “the measures taken achieve stability in the exchange rate and that covering imports at the official price achieves what we are witnessing in terms of general stability in prices and reducing inflation.”
I need all my blog followers to be VERY patient in waiting for the reinstatement of the Iraqi dinar. I know, I know it has been a decade or more for many of you and you are frustrated. But think of how the citizens in Iraq feel. Please don’t let this Christmas dream die because you are discouraged. My contact tells me its right in the wings waiting for the ‘go ahead”.
We must pray and pray very hard that the new process with correspondent banks is success as this is the nail in the proverbial coffin for the parallel black market.
To get a very good summary and update of what has been happening in this regard of the upcoming changes, please take a look at the recent articles in today’s Newsletter. This news is nothing new to us. We read dozens of articles already explaining these changes to us. So why do they keep emphasizing it over and over again? Could it be part of the education to inform the citizens of the upcoming changes?
😊They are titled and found in the Newsletter articles section:
“CENTRAL BANK GOVERNOR: OPENING EXTERNAL CHANNELS WITH FOREIGN CURRENCIES ELIMINATES THE BLACK MARKET” and
“PARLIAMENTARY COMMITTEE: GOVERNMENT WORKING TO REDUCE GAP BETWEEN PARALLEL AND OFFICIAL EXCHANGE RATE TO ACHIEVE STABILITY”
“EXCHANGE RATE RISES IN LOCAL MARKETS AS DOLLAR SELLING PLATFORM IN IRAQ NEARS COMPLETION”
When they refer to “exchange rate stability” what they really means in not so fancy terms is the ability to control their currency and adhere through all mechanisms to the “official” CBI rate.
How can they think they can significantly revalue and reinstate the dinar unless they can control the currency?
How many times have they told us this in the past that this is needed. Now they say they have a way to achieve it and it was just the normal international practice of doing business with other countries all along that was the solution.
Yes, they had to get off the sanctioned mode of doing business to buy imports using only the dollar to pay for them and go back to normal international practices, of multi-currencies.
But oh..oh..…wait a second….!!! 😊
What happens to the de-facto peg to the U.S. Dollar then when they do all this?
Won’t they have to also get of this sole peg? I know for a FACT that the IMF is standing in the wings waiting and watching for the results of this new process of paying for imports.
They are watching for inflation. Will there be a backlog of transactions waiting to pay foreign merchants or will this go smoothly. A gross backlog could drive up the prices in the stores as shortages could occur. There might be inflation.
I am told by my CBI contact that if it is successful after monitoring for inflation, then if all is good, the CBI will launch the Project to Delete the Zeros and we know what comes next.
They will have too also launch the new peg of the IQD to the new basket of currencies. Are you happy yet?
IRAQI PRIVATE BANKS RELY ON CBI FOR “EASY PROFITS,” LACK ECONOMIC ACTIVITY, EXPERT SAYS
Most Iraqi private banks still “depend” on the Central Bank of Iraq (CBI) without engaging in any economic activity, banking expert Mohamed Salem confirmed on Monday.
Salem told Shafaq News Agency, “Most private banks engage in limited credit activities and do not contribute significantly to stimulating the Iraqi economy. Their revenue primarily comes from currency exchange, relying on electronic trading, hard currency, and electronic payments. They obtain dollars from the CBI, sell them, and make easy profits.”
“While private banks have stepped back from offering loans, they have led in electronic trading and providing services like ATMs and other digital services, areas where government banks have lagged,” he added.
He explained that “private banks’ services have encouraged employees to localize their salaries, while government banks, except the Trade Bank of Iraq, have struggled with low salary localization.”
“Despite their failure to keep pace with international or even private banks, government banks remain trustworthy in safeguarding depositors’ funds, even in the face of challenges such as the theft and looting they experienced in 2003,” the expert emphasized.
(looks like these bankers will either have to sell other banking products or find another job…lol..lol.. 😊)
The Central Bank of Iraq is warning against fake trading companies while promoting advancements in tourism and digital currency to boost the economy.
Highlights
⚠️ Fake Companies Alert: CBI warns the public about fictitious trading companies.
💰 Tourism Revenue Growth: Iraq aims for tourism to cover a third of its budget.
🌐 Digital Currency Future: Discussions on digital platforms for currency and trade are ongoing.
📈 Economic Partnerships: Iraq is enhancing cooperation with regional markets for investment growth.
🏛️ Cultural Heritage: Iraq’s rich history attracts millions of tourists annually.
💳 Electronic Payments: The shift towards digital payments is underway for salaries and transactions.
🛢️ Oil Revenue Discussions: Ongoing negotiations to unify oil pricing and revenue sharing between Baghdad and the Kurdistan region.
Key Insights
⚠️ Consumer Caution Needed: The CBI’s warning indicates a proactive approach to protect citizens from scams, suggesting a shift towards more secure financial practices.
💰 Tourism as a Revenue Stream: The focus on tourism as a significant revenue source reflects Iraq’s potential beyond oil, which could diversify the economy and create jobs.
🌐 Embrace of Digital Currency: The discussions surrounding digital currencies and platforms hint at Iraq’s intention to modernize its financial system, aligning with global trends.
📈 Strengthened Regional Ties: Iraq’s collaboration with Abu Dhabi and other regional markets emphasizes a strategic move to enhance investment and economic resilience, crucial for future growth.
🏛️ Cultural Tourism Potential: Iraq’s ancient heritage positions it uniquely in the tourism sector, suggesting that investment in this area could yield substantial economic benefits.
💳 Transition to Digital Economy: The shift to electronic payments signifies an important modernization step, which could streamline financial operations and improve economic efficiency.
🛢️ Negotiation for Oil Revenue: Ongoing discussions on oil contracts demonstrate Iraq’s commitment to resolving internal economic challenges, which is essential for stability and growth.
EXCHANGE RATE RISES IN LOCAL MARKETS AS DOLLAR SELLING PLATFORM IN IRAQ NEARS COMPLETION
(This is an excellent article and so if you really want to catch up on what is about to happen with the currency platform and the changeover to the correspondent banks about to handle these transactions and how they will do it, then please take a few minutes and read this article.)
The dollar exchange rate recorded a new rise today, Tuesday (December 17, 2024), during trading on the main stock exchange and the local market .
Baghdad Today correspondent said that the dollar exchange rate recorded 150.950 dinars for every 100 US dollars in the main stock exchange in the capital, Baghdad .
He added that the selling price in the exchange offices recorded 152,000 dinars, while the buying price recorded 150,000 dinars for every 100 US dollars.
On Wednesday (September 4, 2024), the Central Bank of Iraq revealed the mechanism for ending the electronic platform for foreign transfers, while indicating that the placement of foreign transfer operations and meeting requests for the dollar are on sound paths consistent with international practices and standards .
The bank said in a statement received by “Baghdad Today”, that “the electronic platform for foreign transfers managed by the Central Bank of Iraq began at the beginning of 2023 as a first stage to reorganize financial transfers in a way that ensures proactive oversight of them instead of subsequent oversight by the Federal Reserve auditing daily transfers, and this was an exceptional procedure as the Federal Reserve does not usually do this, and
a gradual shift was planned towards building direct relationships between banks in Iraq and foreign correspondent and approved banks, mediated by an international auditing company to conduct pre-audit of transfers before they are executed by correspondent banks .”
He added that “during the year 2024 and until now, 95% of the transfer process from the electronic platform to the mechanism of correspondent banks directly between it and Iraqi banks has been achieved, which means that only about 5% of it remains within the platform, which will be transferred using the same mechanism before the end of this year and according to the plan,” explaining that “some expectations about potential impacts on the exchange rate and transfer operations are baseless, because the process will not be sudden or in one batch at the end of this year, but rather it was originally achieved during the past period with effort and careful follow-up, except for the remaining small percentage that will be completed in the coming short period .”
He stressed that “trade with the United Arab Emirates, Turkey, India and China represents about 70% of Iraq’s foreign trade as (imports), which prompted the Central Bank of Iraq to find channels for transfer in euros, Chinese yuan, Indian rupees, and Emirati dirhams, through approved correspondent banks in those countries, and (13) Iraqi banks have actually begun conducting transfer operations with a pre-audit mechanism that has been agreed upon and approved in addition to transfers in dollars .”
He continued: “With the provision of channels for personal transfers for legitimate purposes and external purchases through electronic payment channels and international money transfer companies and cash sales to travelers, and the payment of cash dollars for incoming transfers to the parties and purposes specified in the Central Bank’s published instructions .”
The Central Bank of Iraq stressed that it “put foreign transfer operations and meeting dollar demands on sound paths consistent with international practices and standards and the Anti-Money Laundering and Terrorism Financing Law,” explaining that “providing the aforementioned channels for all purposes at the official dollar price makes this price the true indicator of economic practices, which is proven by the reality of price stability and control of inflation, and any other price traded outside those channels is an abnormal price that those with unorthodox or illegal practices resort to, who move away from official channels in their dealings, so they bear the additional costs alone by purchasing at a higher price than the official price to delude others with the difference between the official price and others .”
