The Iraqi dollar and the first day “passed peacefully”.. The Central Bank is innocent and devoted to the dinar, 7 JAN

  The Iraqi dollar and the first day “passed peacefully”.. The Central Bank is innocent and devoted to the dinar

Quick review by Mahmoud Dagher

 “The first day passed peacefully,” said Dr. Mahmoud Dagher, a prominent financial expert, commenting on the first day of official work after the New Year’s holiday and the start of implementing the decision to cancel the dollar selling platform for traders and companies, which had been controversial for 20 years.

Since Sunday morning, there has only been a slight increase in the dollar price. According to Dagher, who managed the operations of the Central Bank for many years, the platform’s function has changed from being a seller of dollars to Iraqi companies, to an intermediary between Iraqi banks and foreign correspondent banks (JP Morgan and Citibank)

Which will be responsible for auditing and approving the transfers, instead of the Central Bank of Iraq, which has cleared its responsibility in this way according to an understanding with international institutions and the US Federal Reserve, and is currently devoted to taking dinars from Iraqi traders and converting them into dollars to be transferred to foreign banks that have begun to organize Iraqi trade.

Dr. Mahmoud Dagher - Economic Expert:

Canceling the platform does not mean that the Central Bank is not converting dinars into dollars.

The Central Bank receives the dinar from the banks, which is the money of the customers (traders), and converts it into dollars and delivers it to the foreign correspondent banks. It will not undertake the auditing, but they will undertake that.

The currency selling window will remain, but its mission will not be to sell dollars but to convert dinars into dollars, and there was no problem in the market today, Sunday, although the dollar rose very slightly. link

TIDBIT FROM MILITIAMAN , 7 JAN

  Militia Man 

 [Iraqi] Banks are closed.  Sudani said he was going to make...the dinar stronger than the dollar.  I think it's going to still hold true.  I think that's the expectations of the world.  We're going to see that happen.

To be a global economic powers [Iraq's] exchange rate will need to be far different than 1310.  It's just the way it's going to be.  They haven't done anything yet.  They're hiding things when it comes to that.

Article:   "Monetary stabilization mechanism will maintain financial stability in the country"  What is that going to be?

  It's the reinforcement mechanism, it's the new one.  It's not the old dollar auction.  They're still going to use the dollar and many different foreign currencies.  Realize, when Iraq turns their currency on to go international, Iraq is going to be a foreign currency that will be traded on international markets.  So when they talk about "foreign currencies" think about Iraq being one of them.  So when they talk about a "basket of currencies", Iraq is going to be one of them within it.

BROTHERS TECHNOLOGY: Iraq Banks are online and the world will witness an economic shift by 1/20/25.

 

Iraq and America discuss activating the strategic framework agreement, 7 JAN

 Iraq and America discuss activating the strategic framework agreement

Deputy Prime Minister and Minister of Foreign Affairs Fuad Hussein discussed with the Chargé d'Affaires of the US Embassy in Iraq, Elizabeth Kennedy Trudeau, preparations for holding a meeting of the Iraqi-US Joint Committee to activate the Strategic Framework Agreement.

 Hussein said in a post on the (X) platform, "Yesterday, I met with Ms. Elizabeth Kennedy Trudeau, Chargé d'Affairs of the US Embassy in Iraq. We reviewed the developments in the region and the importance of continuing to coordinate positions, especially in confronting the terrorist organization ISIS."

He added, "We discussed preparations for holding a meeting of the joint Iraqi-American committee to activate the strategic framework agreement for friendship and cooperation between the two countries link

EXCERPTS FROM MARKZ: "Auctions in Iraq have been occurring" , 7 JAN

 EXCERPTS FROM MARKZ

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.

MAJEED :RETIREES IN IRAQ RECEIVED THEIR SALARIES & FOUND THEY HAVE MORE MONEY THAN THE USUAL SALARY

 

Continuing The Iraqi Currency Auction: Enhancing External Balances And Banks’ Interest In Cash Carriers, 7 JAN

 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 local market, 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/