FRANK26: "FOREIGN CURRENCY AUCTIONS ENDING ALL OVER IRAQ'S NEWS!!!", 3 JAN

 FRANK26: "FOREIGN CURRENCY AUCTIONS ENDING ALL OVER IRAQ'S NEWS!!!".......F26

Iraq officially suspends work on the electronic platform.. Will we witness a crazy rise in the dollar?

1/1/2025

 

 

Sumerian News - Economist

The Central Bank of Iraq announced today, Wednesday, the suspension of work on the electronic platform mechanisms related to the sale of Dollar.

 

He said Deputy Central Bank Governor Ammar Khalaf, in a statement to the official agency, followed by Sumerian News, "The mechanism of work on the electronic platform related to foreign transfers has stopped working, but financing foreign trade continues through correspondent banks according to different mechanisms that are parallel to what is in effect in countries around the world."

 

 

 

He pointed out that "the granting of Dollar For travelers at airports according to the approved mechanism, which is the best in limiting the occurrence of Dollar For the traveler.

 

This decision comes as part of a series of reforms aimed at facilitating financial procedures and stimulating the economy, but at the same time it raises questions about its potential impact on the stability of the dinar exchange rate. (NO IT DOESN'T... IT BROUGHT SECURITY & STABILITY FOR THE MONETARY REFORM -F26)   Iraqi before Dollar American.

 

The concept of the electronic platform and its role in currency stability

 

The electronic money transfer platform is a mechanism adopted to ensure the regulation of foreign money transfers and to limit manipulation of exchange rates.

 

The platform documents commercial transactions and money transfers by banks and financial companies, ensuring more effective control over hard currency flows in and out of the country.

 

This platform has greatly contributed to narrowing the gap between the exchange rate. Official And the black market price, where many money laundering and smuggling operations were prevented.

 

However, with the decision to cancel this platform, questions are raised about how the market will be regulated and transfers managed.

 

The impact of deplatforming on the price Dollar

 

1- Increased demand for Dollar In the black market, in the absence of an electronic platform, demand may increase. Dollar In the black market due to the absence of control mechanisms, which leads to higher exchange rates outside official channels.

 

2- Weak confidence in the dinar, as canceling the platform may weaken confidence in the Iraqi dinar, especially if effective alternatives are not put in place to ensure market stability. Weak confidence means that citizens and investors may withdraw their money in dinars and transfer it to Dollar As a safe haven.

 

3- The impact of smuggling and money laundering, as cancelling the platform could cancel strict control over smuggling operations. Dollar Smuggling and money laundering practices may expand, increasing demand for Dollar Significantly and affects the central bank's reserves.

4- The market depends on supply and demand. With the cancellation of the platform, the currency market may become more affected by direct supply and demand. This may lead to severe fluctuations in the exchange rate, especially in light of unstable economic and political conditions.

 

Chances of facing a rise Dollar

 

1- Activating alternative control tools

 

The government and the central bank can rely on other supervisory tools such as strengthening the role of local banks and imposing strict restrictions on foreign transfers.

 

2- Increase reserves from Dollar

 

The central bank may resort to pumping more dollars into the market to meet demand and maintain price stability.

 

3- Promoting local investments

 

By encouraging investment and reducing dependence on foreign currencies, pressure on Dollar And strengthen the dinar.

 

4-Cooperation with international organizations

 

The government may cooperate with international institutions such as the International Monetary Fund and the World Bank to develop economic plans that contribute to market stability.

The decision to cancel the electronic platform for money transfers represents a major challenge to the Iraqi economy, and may have direct effects on the exchange rate. (IT WILL HAVE A BULLSEYE EFFECT ON THE EXCHANGE RATE... BECAUSE THE GOAL IS TO GIVE THE IRAQI CITIZENS PURCHASING POWER!!!".....F26 Dollar In front of the dinar. To achieve economic stability in the next phase, it will be necessary to take proactive measures to compensate for the absence of the platform and ensure the continuity of supervision of the financial market.

 

The balance between facilitating economic procedures and protecting the national currency will be the decisive factor in determining the success of this decision and its effects on citizens and investors.
 

LINK

TIDBIT FROM JEFF, 3 JAN

 Jeff 

 They put two different articles... states two different things...They said they were going end the use of the dollar and the currency auctions by January 2nd.  

I don't think that information is credible because the second article stated going into early 2025 is when they would be suspending use of the dollar/currency auctions.  That makes more sense because the daily currency auctions are a tool used by the central bank to stabilize the daily market value of the dinar...They'll more realistically stop somewhere in early 2025..

DINAR REVALUATION: How Iraq's New Leasing Company Could Impact the Potential Value of the Dinar!#IQD

 

Baghdad markets witness a decline in dollar prices at the beginning of Wednesday, 3 JAN

 Baghdad markets witness a decline in dollar prices at the beginning of Wednesday

 The exchange rates of the US dollar fell, on Wednesday morning, in the markets of Baghdad.

The prices are as follows.

The sale price is 152,500 dinars, while the purchase amounted to 150,500 dinars for every 100 dollars.

https://alforatnews.iq/news/أسواق-بغداد-تشهد-تراجعاً-في-أسعار-الدولار-مع-بداية-يوم-الأربعاء

PATREON DINAR UPDATE, 3 JAN

 PATREON DINAR UPDATE

Highlights

Summary

In this video, the host discusses significant economic developments in Iraq, particularly concerning the Central Bank’s currency policies and the broader economic strategy leading into 2025. 

The Central Bank of Iraq is set to end currency auctions and the use of an electronic platform for currency transfers, marking a pivotal shift in its monetary policy. 

While initial reports indicated that these changes would take effect on January 2, 2025, recent updates suggest that currency auctions will continue into early 2025, with a remittance auction scheduled for January 7. The host emphasizes the importance of these changes as prerequisites for potential rate adjustments, which are necessary for Iraq’s economic revitalization.

Additionally, the video highlights Iraq’s plans to establish a Sovereign Wealth Fund aimed at bolstering economic growth through export-oriented strategies and domestic production. The host also covers various economic indicators, including a reported increase in budget revenues, primarily driven by oil, and ongoing infrastructure projects. The video concludes with an overview of political developments, including delayed legislative sessions due to economic uncertainty, and future collaborations with international partners like Japan.

• 📈 Currency Auctions Transition: The Central Bank of Iraq will end currency auctions, with ongoing auctions extending into early 2025.
• 🏦 Sovereign Wealth Fund Vision: Plans unveiled for a Sovereign Wealth Fund to drive economic growth through export-oriented strategies .
• 🌍 Infrastructure Development: Iraq is preparing to present major infrastructure projects to international investors.
• 📊 Oil Revenue Dominance: Oil revenues accounted for 88% of Iraq’s budget, highlighting the economy’s dependence on oil.
• ⚡ Electricity Expansion: Completion of 90% of the electrical interconnection project aims to enhance electricity supply by summer 2025.
• 📅 Legislative Delays: Critical laws are pending due to the delay in parliamentary sessions since September 2023, awaiting currency rate changes.
• 🤝 International Relations: Discussions are underway with Japan to strengthen ties and learn from their governance experience.

Key Insights

• 🔄 Currency Policy Changes as Economic Indicators: The decision to end currency auctions signals a broader shift in Iraq’s economic policy, reflecting an intention to stabilize the currency and potentially increase its value. The continuation of auctions until early 2025 suggests a transition period where adjustments may take place gradually, allowing stakeholders time to adapt.

• 🌱 Importance of Sovereign Wealth Fund: Establishing a Sovereign Wealth Fund is crucial for Iraq’s economic future. This fund is expected to manage national wealth and invest in sectors that can diversify the economy away from oil dependency, promoting sustainable growth and enhancing economic resilience.

• 🚧 Infrastructure Projects for Economic Growth: The development road project is a strategic move to attract foreign investment and improve the country’s infrastructure. This is essential for facilitating trade and increasing Iraq’s competitiveness in the global market, which is especially relevant as the country seeks to rebuild and develop its economy post-conflict.

• 📉 Budget Reliance on Oil Revenues: The heavy reliance on oil revenues underscores the vulnerabilities of Iraq’s economy. While oil revenues have provided significant funding, the slight decrease in their contribution indicates a need for diversification. Strategies focusing on increasing non-oil revenues could mitigate risks associated with fluctuating oil prices.

• ⚡ Enhanced Electricity Supply for Future Development: The near completion of the electrical interconnection project is vital for supporting industrial growth and meeting the energy demands of a growing economy. Improved electricity access will facilitate operations for businesses and encourage investment, making it a key component of economic development.

• 📆 Legislative Gridlock and Economic Reform: The prolonged delay in parliamentary sessions due to currency rate changes highlights the interconnectedness of political stability and economic reform. The inability to pass critical laws may hinder progress in implementing necessary economic changes, reflecting the urgency for a stable legislative environment.

• 🌐 International Collaboration as a Growth Strategy: Iraq’s pursuit of international partnerships, such as with Japan, signals an openness to learning from successful governance models. This collaboration could enhance Iraq’s institutional frameworks and promote transparency, thereby building investor confidence and encouraging economic participation.

In conclusion, the video encapsulates a transformative period for Iraq as it navigates crucial economic and political changes. The Central Bank’s decisions regarding currency auctions and the establishment of a Sovereign Wealth Fund are pivotal steps toward revitalizing the economy. The emphasis on infrastructure development and international partnerships reflects a strategic approach to ensuring long-term growth and stability. However, significant challenges remain, particularly the need to diversify the economy and improve legislative processes to facilitate necessary reforms. As Iraq looks toward early 2025, the unfolding developments in its economic  landscape will be critical to watch.

FIREFLY: THE ROLL OUT OF THE LOWER NOTES WILL BE SOON