MZ: Auctions in Iraq have been occurring. I was told by a contact over there that this is the final part of their de-dollarization.
MZ: “The Iraqi dollar and the first day “passed peacefully” The Central Bank is innocent and free for the dinar” According to Iraqi Press today is the first day without the auctions. I am feeling good about auctions ending which should mean a new rate.
MZ: I am told Iraq was reducing their reserves to de-dollarize the market. This in anticipation of a rate change.
MZ: Bond Guys: I am expecting a number of updates throughout the day. European contacts are back in their seats today. First time since right before Christmas. News should start flowing this afternoon.
Member: Difference between banks and redemption Centers?
Member: Redemption centers are in redeeming banks…..and will have enhanced security for high wealth individuals. This is required for the very large exchanges that are expected. Also rates may be much higher.
Continuing The Iraqi Currency Auction: Enhancing External Balances And Banks’ Interest In Cash Carriers
January 5, 2025 Last updated: January 5, 2025 Independent/- The Central Bank of Iraq began the beginning of 2025 by continuing its monetary policy through the foreign currency auction, as it organized an auction on Sunday, January 5, 2025, in a new step towards enhancing external balances of hard currency, which reflects the continuity of the bank’s strategies in supporting exchange rate stability and ensuring Liquidity required in the markets.
Auction details and exchange rates In this context, the
Central Bank of Iraq sold in its last auction an amount of 297 million 78 thousand and 208 dollars, at different exchange rates depending on the type of transactions. A base exchange rate of 1,310 dinars per dollar was set for documentary credits and international settlements for electronic cards, while a price of 1,310 dinars per dollar was set for external transfers, while the cash sale price was 1,305 dinars per dollar. Sales Distribution: Boost balances for cash withdrawals The data showed that most of the dollar sales at the auction went to strengthen balances abroad, as foreign remittances amounted to 279 million 828 thousand and 208 dollars, equivalent to about 93.91% of the total sales. As for cash withdrawals, they did not exceed 17 million and 250 thousand dollars, which highlights the greater trend towards enhancing balances outside Iraq. Number of participating banks and companies
The sales were distributed among a number of banks and exchange companies participating in the auction. The number of banks that purchased cash dollars reached one bank, while the number of banks that requested an increase in external balances reached 9 banks. 19 exchange companies also participated in the auction, which reflects the diversity of participants in the dollar sale process and increases the flexibility of the
auction organization mechanism. Strategic objective of the auction The currency auction is considered one of the effective tools used by the Central Bank of Iraq to achieve several main goals, including: 1. Exchange rate stability: By controlling the supplied quantities of dollars, the central bank works to limit fluctuations in the exchange rate of the Iraqi dinar against the US dollar, which enhances economic stability.
2. Meeting the needs of the local market: By providing hard currency to importing companies, the bank contributes to ensuring the continuity of the flow of goods and products to the local market.
3. Strengthening external reserves: Strengthening balances abroad through external remittances is part of ongoing efforts to maintain the stability of the financial system and meet import and international trade needs. Challenges and criticisms Despite the significant economic goals that the central bank seeks to achieve through currency auctions, these operations are not without some challenges. The most prominent of these challenges are: •Depletion of cash reserves: Concerns are growing that the expansion of selling the dollar may lead to a reduction in the country’s cash reserves, threatening financial stability in the long term. • The possibility of corruption and money laundering: Questions are raised from time to time about how some companies or banks exploit the currency auction to smuggle or launder money, which requires intensifying oversight and scrutiny of buying and selling operations. Future actions and directions To reduce concerns related to these challenges, the central bank seeks to enhance transparency in auction processes. These steps include publishing auction details periodically, and implementing advanced control systems to ensure the integrity of transactions. In addition, the bank seeks to diversify the monetary tools used to achieve monetary policy objectives without harming the national economy. Conclusion The currency auction organized by the Central Bank of Iraq remains a key tool in implementing the country's monetary policies. Despite the challenges and fears that accompany it, the Central Bank continues to organize auctions to stabilize the exchange rate, meet the needs of the localmarket, and enhance balances abroad. While pursuing ongoing reforms and enhancing transparency, this auction remains an essential part of Iraq's efforts to achieve sustainable economic stability. https://mustaqila.com/مواصلة-مزاد-العملة-العراقية-تعزيز-الأ/
FIREFLY:Mr Sammy says everything is in place in his eyes. The only thing Mr. Sammy thinks we need is for Iraq to reveal a new rate to show and back the stability of the dinar as a new global currency.
FRANK: Yes sir Mr. Sammy because that's what the contractors are waiting for.
Expert: Jordanian And Gulf Banks Control The Iraqi Banking Sector And Push It Toward Collapse
January 4 18:35 Information / private.. Economic expert Mustafa Akram Hantoush confirmed today, Saturday, that the banking system is going through a major crisis, noting that Gulf and Jordanian banks have now controlled the monetary and dollar sector inside Iraq. Hantoush said in a statement to the Maalouma Agency, "The Iraqi banking system is almost non-existent at the present time, as four or five Gulf and Jordanian banks control the movement of funds." He added, "Four Jordanian banks submitted applications to enter the Iraqi market, and two of them succeeded in operating, while two others, Al-Ittihad and Housing, are still under study." He explained,
"This situation strengthens the dominance of these banks over the dollar, while local banks are facing major challenges, as some of them remain in the market, while others are forced to search for agreements with Jordanian and Gulf banks in order to continue working," adding,
"Whoever does not succeed... In reaching agreements with these banks, he will move towards merging or exiting the market.” He pointed out that "the banking system was previously suffering from weakness in its structure, and today it is in a state of complete collapse," stressing that "it has become very difficult to obtain loans in Iraq easily, and
whoever succeeds in this needs relationships and mediation, which reflects the situation in Iraq." "Stagnation and paralysis in the Iraqi banking system." It is noteworthy that the United States imposed sanctions on 34 Iraqi banks in an attempt to restrict the Iraqi economy, which opens the way for five Jordanian and Gulf banks to enter the Iraqi market, with the aim of completely controlling the economy amid the silence of the Iraqi government. 25 d finished https://almaalomah.me/news/87219/economy/خبير:-المصارف-الأردنية-والخليجية-تسيطر-على-القطاع-المصرفي-ال
MZ: Well….under their current system –when the value changes it will not count at all on the limit….they are talking about 10K worth of transfers.
What you should be excited about is they have a mechanism in place to deal with the IQD. They are clearing telling us…and if you look through their list of currencies- it includes almost every single one that many of us in this community have picked up. I think you should be excited and not worried about this. .
Member: Hoping it changes to a whole new gold backed acct….
Member: Will Wells Fargo be one of the exchanging banks?
MZ: I am 100 percent sure Wells Fargo is a participating bank.
