Militia Man
You have the accolades from the IMF, UN, Arab League. What you're seeing...is Iraq is ready to go international.
That's my opinion. You can decide something different but that's what we're seeing...
They've got the support of the largest entities in the world. Everybody realizes Iraq is about ready to do something and make changes.
The dollar market is on “one leg”.. A new mechanism and the exchange rate is threatened!
12/22/2024
The Central Bank of Iraq is preparing to stop dealing with the electronic platform for dollar transfers abroad, at a time when experts have warned against raising the exchange rate to a higher level in light of the news circulating about this.
The electronic platform was launched in early 2023, and it represents a system for auditing dollar transfers before they are executed, instead of the audit that the US Federal Reserve used to conduct after execution.
Banks, companies and merchants in Iraq faced some challenges before adapting to the new method, but they finally underwent a series of trainings that the employees of these banks received before fully adapting to the platform’s work.
Exchange rate hike
In light of these moves, news has been raised about a move towards a new adjustment to the exchange rate, which has raised economists’ concerns about the potential impact of this move on the economic process in general.
Experts stressed that sudden changes in monetary policy could create additional confusion in the markets and undermine confidence in the financial system.
Economic expert Mustafa Akram Hantoush said, “Changing the exchange rate in the current situation is useless, because the problem is not in purchasing power, but in the demand for the dollar outside the platform due to small traders, trade with Iran, and some materials that are imported outside the platform due to high customs duties or their ban, in addition to the citizens’ desire to save the dollar.”
Hantoush added to Al Jarida that “it is better to find solutions to the increasing demand for the dollar outside the platform instead of resorting to changing the exchange rate, because that will complicate the monetary situation even more than it is now.”
clear policy
According to an official at the Central Bank of Iraq, dealing with the dollar file was based on various opinions built on a series of studies and field research.
The official, who preferred to remain anonymous, explained to Al Jarida that “the bank adopted two main approaches to address the crisis. The first is to expand the use of international currencies such as the Chinese yuan, the Indian rupee, the UAE dirham, and finally the Saudi riyal, with the aim of reducing dependence on the dollar. The second approach focuses on developing the operational capabilities of local banks to become more qualified to participate in transfer operations.”
For his part, banking researcher Mahmoud Dagher explained that “the fluctuation of the Iraqi dinar exchange rate came as a result of two decisions to reduce the value of the dinar in 2020 and then raise it in 2023, which represents a clear intervention in the fixed exchange rate system, which created ongoing economic confusion.”
Dagher told Al Jarida that “any new change in the exchange rate reflects the absence of benefit from previous mistakes, as wrong interventions in monetary policy lead to adverse results that increase the instability of the financial market.”
As for the economic expert, Adi Al-Alawi, he confirmed that “the biggest mistake that the government can make is to manipulate the dollar exchange rate through sudden decisions, because that has a direct impact on the national economy and shakes investors’ confidence in the financial system.”
Al-Alawi added to Al-Jarida that “the government’s continued taking of ill-considered decisions regarding the exchange rate will lead to the erosion of international and local confidence in the Iraqi economy, which will weaken the ability to attract the investments necessary to improve the economic reality.” LINK
MELANIA HINDS CC HIGHLIGHTS NOTES
Exciting updates on the Iraqi dinar as the Central Bank of Iraq continues cash auctions, with a holiday declared for Christmas. Join the live stream for more intel!
Al-Sudani directs the opening of Mosul International Airport on June 10
12/22/2024
Prime Minister Mohammed Shia al-Sudani directed the opening of Mosul International Airport on June 10.
This came during his field follow-up of the progress of work at Mosul International Airport, during his visit to Nineveh Governorate, which he arrived at this morning, according to a statement issued by Al-Sudani's media office.
The statement said that Al-Sudani was briefed on the work related to the construction of the airport runway and its various halls, the current completion rate of which is more than 80%. He also listened to the officials of the implementing company, and directed the removal of all obstacles that hinder their current work.
The statement added that Al-Sudani directed that the airport be opened on June 10, which marks the anniversary of the occupation of Mosul, to be a message of defiance in the face of terrorism.
Mosul Airport is one of the most important airports at the governorate level after Baghdad and Basra airports, and it was destroyed by ISIS in a systematic manner and at a rate of 100%.
According to a statement from Al-Sudani's office, the project encountered many technical and administrative problems, which were overcome with direct support from the Prime Minister.
The completion rate of the project, which is part of the regional development projects, did not exceed (30%) last March, and work progressed during the past eight months, reaching more than (80%), and all the conditions approved by the Civil Aviation Authority and the Air Navigation Company were implemented. LINK
MarkZ
[via PDK]
Member Bank story: When I went to the bank I always go to (Wells Fargo) in Minnesota …there used to be 4 seats for the waiting area …they have now beefed it up to 24 chairs and put these big screens on the wall for “education” for older people is what they told me. Then they made more booths –doubled them where people sit with a banker.
The glass on the booths used to be about 2 feet high but now it goes up 8-9 feet high and sound proofed .
It has never been busy…rarely saw people waiting…and they went from 2 ATM’s to 5 now. And the people in the teller area seem to have tripled. MarkZ: I see these changes and I get excited.
Deborah Jones Majeed thank you soooo much for your insight! Do you think the forex rate change will apply to just IQD or might Dong and/...