😊Then in our second article on this same topic we learn that in fact what this first article claims is NOT happening. The article is titled “AL-NUSAIRI: EXPLAINS THE NEW MECHANISM FOR EXTERNAL TRANSFERS AFTER THE PLATFORM IS CLOSED”.
I quote from this article “the electronic platform was a stage in this direction, and now we have reached the stage that is practiced in the countries of the world according to international banking standards through the direct relationship between local banks and correspondent banks.”
Do you really think the CBI does not have a long term plan they are working through?
Do you think they don’t know what they are doing? Here is yet more quotes from this second article “that speculation in dollars on the black market is punishable by law.”
Also “limiting the sale of cash dollars to travelers and through a strict mechanism has made cash dollar sales at a minimum level, and therefore what is in circulation is what remains with travelers.” This is really almost the only source now for the parallel market to obtain dollars.
Then I quote also: “
We should look at the price at which the Central Bank covers all external operations, including imports and personal transfers for the purposes of study and treatment abroad and legitimate purposes, which explains the stability of prices in light of the current inflation rate, which is about 3.1% less than the inflation rates in Arab, regional and neighboring countries. So, inflation is not occurring and is low. Remember I told you the main concern of the CBI in this move would be inflation and so there is little inflation, in fact the level is totally normal and acceptable.
Then the best part of the article is the CBI is telling us that this new strategy is normal and is working so far. I quote: “This means that the Central Bank has achieved a basic objective of monetary policy.”
The in the article Al-Nusairi sets the record straight and that the parallel market is NOT important anymore to the Iraqi economy. I quote: “Al-Nusairi expressed his surprise that some people calculate the banks’ revenues from selling the dollar (in the parallel market price) by measuring the difference between the market price and the official price, which is a big mistake because the banks do not transfer at the market price but at the official price monitored by the Central Bank” So this last quote says it all. The Black Market is doomed to fail. It is just a matter of time and it won’t be much longer.
NO FEAR FOR THE REGIME IN IRAQ AS LONG AS AMERICA AND THE RELIGIOUS AUTHORITY ARE “SATISFIED”… THE GOVERNMENT IS HEADING TOWARDS “INDEPENDENCE“
Strategic affairs expert Mujasha’ Al-Tamimi commented on Wednesday (January 8, 2025) on the possibility of making a real change in the political system in Iraq during the next stage.
Al-Tamimi told Baghdad Today: “The regime in Iraq is protected internationally and regionally, and the United States is the greatest guarantor. If this stable relationship between the political regime in Iraq and America continues, then there is no fear of regime change.”
He explained that “the most important thing is to respond to the internal and external demands, and the demands that come from the supreme authority in Najaf regarding the necessity of carrying out political reform in this regime that has begun to suffer from many crises. There is also concern among many politicians, especially after the fall of the Bashar al-Assad regime and the great progress achieved by the American-Israeli axis in the region.”
Al-Tamimi added, “The overthrow of the regime in Iraq is a far-fetched scenario for anyone who wants to overthrow it, but I believe that the political forces have begun to feel great concern after the changes that have occurred in the region, in addition to Donald Trump’s arrival to the White House. Therefore, I expect that the biggest beneficiary of this is the Iraqi government, which will gain more independence in the decisions it issues, away from the policy of international and regional consensus.”
Al-Tamimi continued, “The Prime Minister does not have (political debt to the outside) because he is a son of the interior and feels the pressures that the citizen is exposed to, so I expect that there will be an absence, even if not at the required level, of weapons outside the authority of the state. Also, if Iraq continues with the policy of (Iraq First), it will obtain acceptable reforms, especially in fighting corruption and investing wealth, especially natural gas and stopping the import of gas from Iran.”
The strategic affairs expert concluded by saying: “There will be clear changes and reforms in the subject of the election law, which will be somewhat satisfactory to the Iraqi voter, not to the major political forces.”
I hope the new year is going great for everyone today. I want you to know that if you live in southern California I am praying that God protects your home and for your safety and well-being.
Today I need to first briefly explain in more detail why the parallel market is so bad for the Iraqi economy and how it has been causing the high inflation rates.
So if the CBI has an official rate and the merchants use this rate to previously buy dollars with dinars from the currency auctions or electronic platform, the prices of the goods is reflected in the cost of the price to obtain these dollars.
Get it.
However, when the merchant can’t obtain the needed dollars through the prior currency auctions or the new correspondent banks method they resort to using the black market to get their dinars. Since the black market knows they can get a premium for their dollars they charge a much higher rate, thus this price to obtain them must also be carried down in the price of goods sold.
This caused inflation. The US Treasury has decreed that the CBI must control its currency as part of the banking reform process.
Why would the US Treasury allow the reinstatement of the dinar unless there was some sort of mechanism to control its pricing. The Free Market trading on the open currency market (i.e. FOREX) should drive the pricing not some black market behind the scenes. Get it?
Yes, there will probably always be some speculation and some currency brokers outside the banks.
You can go right now online to buy Euro from a currency dealer online through the internet. They will charge a slight commission to buy them as their profit margin. But this is much different than a Black Market scarcity since the pricing of the Euro is controlled and it is only a reasonable commission used. There are plenty of Euro available.
As there will eventually be also plenty of dollars available too in Iraq but just not yet since the first need to enforce the law to regulate them. Once the law is inline than Iraq will follow any other country in the buying and selling of dollars as usually done. Keep remembering that the currency auctions was NOT normal practice for any nation. It is post-war time effort to avoid inflation and mandate the sanctions.
Now Iraq must also make this second part of the effort to break the parallel market that has plagued the CBI for so long. The good news today is the CBI is winning in this battle but is not quite there yet. This is the news given to us today.
😊 I’d like to further address the question of {whether or not the CBI’s strategy to kill the black market sales of the dollar is working and to give you proof}?
To answer this question, we only need to read a couple of the articles now coming out of Iraq for this period of news. Here is the first one I want to address titled “THE RISE RETURNED TO THE MARKETS AND FEARS DISSIPATED.. WILL THE “PAPER”BREAK THE 200 THOUSAND DINAR BARRIER?”
In this first article they tell us there is a severe shortage of dollars in the parallel market and it is going to raise the price of the dollar to 200,000 dinars per 100 dollars. How many freekeh times must we read this crap about the dollar exceeding 200,000? This is all fear mongering and they need to crack down on the FAKE news in Iraq too.
This is old propaganda news. I quote from the article “While citizens are worried about the repercussions of this crazy rise, traders stand perplexed in front of a turbulent market that swings between expectations and speculations, while voices are rising calling for urgent action by government agencies and the Central Bank to contain the crisis before it is too late”
Oh I am so scared…..lol..lol…lol… 😊
If you continue to read the article it becomes apparent that the author knows very little about the CBI’s plan to kill the black market dollar sales altogether if possible or at least limit it to the “official CBI rate” The author acts as if this is a travesty and is going to crash the Iraqi economy…lol..lol..lol..
☹ Yes, fear mongering, as if Iraq will never survive without the black market dollar sales. I just got to laugh as we all know the strategy and this is not going to happen. It is already 9 days since the change over to the correspondent banks and this has not occurred.
THE RISE RETURNED TO THE MARKETS AND FEARS DISSIPATED.. WILL THE “PAPER”BREAK THE 200 THOUSAND DINAR BARRIER?
(The contents of this article contradict what the CBI is telling us in yet another article in todays news. My only conclusion is that propaganda is ramped in Iraqi news media too. These Iranian backed people simply do not want the CBI to succeed in the currency reform process.)
In light of a turbulent economic reality and markets fluctuating between anxiety and anticipation, the dollar exchange rate in the parallel market has returned to the forefront, casting a heavy shadow over citizens and traders alike.
The increasing rise of the dollar, which touched levels exceeding the 152,000 barrier for every 100 dollars, raised a wave of fears with serious warnings of the possibility of it exceeding the 200,000 dinar barrier for every 100 dollars, which may enter the market into a critical phase that threatens its stability.
(How many freekeh times must we read this crap about the dollar exceeding 200,000? This is all fear mongering and they need to crack down on the FAKE news in Iraq too. This is old propaganda news. I wish they would stop it. When the CBI talks I listen and this article is meaningless.)
Last month, the Central Bank announced the closure of the dollar selling platform by the end of the fiscal year (2024), a measure that comes within the ongoing directives of the US Treasury, according to it.
In conjunction with increasing warnings from the US Federal Reserve and sanctions imposed by the Treasury Department on some Iraqi banks for their involvement in suspicious activities, the Iraqi government announced, at the beginning of 2023, the launch of an electronic platform specializing in monitoring the movement of dollar sales and money laundering operations.
Expectations of a new jump in exchange rates
While citizens are worried about the repercussions of this crazy rise, traders stand perplexed in front of a turbulent market that swings between expectations and speculations, while voices are rising calling for urgent action by government agencies and the Central Bank to contain the crisis before it is too late.
(Yes, they are perplexed because the CBI just shot a hole wide open through their business of street trading the dollar. By the way this is now illegal in Iraq. You wouldn’t know it by reading this article.)
One of the owners of an exchange office in the Dora area, south of the capital, Baghdad, says, “The exchange sector faces major challenges as a result of the increasing pressures exerted by some security agencies in the context of monitoring dollar sales.”
The owner of the exchange office added, “These measures come within the context of efforts to combat manipulation of exchange rates or currency smuggling, but they are characterized by excessive complexity that negatively affects the course of work in the market.”
In 2023, the Wall Street Journal reported that “the Iraqi currency lost about 10 percent of its value (black market value), after procedures that were unclear to many, related to imposing compliance rules on the Iraqi Central Bank’s dealings with currency traders regarding the US dollar.”
While the owner of another office in the Al-Amiriya area, west of the capital Baghdad, says, “The excessive and sometimes unjustified interventions have caused confusion in the movement of trading within the local market,” noting that “most exchange offices are committed to the official laws and instructions, but there is a restriction that hinders daily transactions, which has increased the issue of the difficulty of accessing the dollar locally, which in turn has resulted in a new rise in exchange rates.”
According to the money changer, the market has been witnessing significant fluctuations in exchange rates in recent days, amid a clear shortage in the supply of dollars.
(Good, good, good this is what the CBI wants and needs to happen!
😊)
He explained that the current restrictions on exchange operations and the scarcity of dollars in the markets have led to an escalation in instability (instability of the black market) , which threatens to record significant price jumps in the coming days if the current situation continues, and it is possible to reach 200,000 dinars for every hundred dollars.
The owner of the private banking also called on the concerned authorities to “reconsider the procedures followed,” stressing “the need to find a balance between imposing control over exchange operations and ensuring the continuity of work in the market in a way that guarantees meeting the needs of citizens and traders without additional complications.”
In conclusion, the money changer believes that “the solution lies in providing sufficient dollar liquidity and ensuring transparent mechanisms for dealing with money changers, away from pressures that could lead to dire economic consequences.”
(Of course they do want to protect their money trading business since they earn a living illegally selling dollars at absorbent rates and want to stay in business. That’s what this article is really all about. Getting their hands on the dollars also leads to money laundering and corruption.)
The Iraqi Council of Ministers approved, on February 7, 2023, the decision of the Board of Directors of the Central Bank of Iraq to adjust the exchange rate of the dollar against the dinar, equivalent to 1,300 dinars per dollar.
The Iraqi dinar exchange rate was 1,470 dinars to the dollar before the New York Federal Reserve imposed stricter controls on international dollar transactions by Iraqi commercial banks at that time.
Speculation behind the dollar crisis
Unofficial estimates indicate that the platform used to sell up to $280 million per day, but last year the amount dropped to less than $240 million per day.
Rashid Al-Saadi, an economic expert, talks about several axes related to the rise in the dollar exchange rate in the parallel market during the recent period, pointing out the factors affecting the market and the means to calm it down.
Al-Saadi says, “The current rise in the dollar price is mainly attributed to supply and demand factors, especially at the end of the year and the beginning of the new year, and the presence of some official holidays also contributes to increasing pressure on the market.”
(The CBI strategy of going to the international standards of money transfers and payments is working….. 😊)
Al-Saadi added, “Speculation plays a major role in the rise in the price of the dollar, as price manipulation by some parties within the market causes fluctuations that lead to an increase in demand for the dollar and a significant rise in its price,” while believing at the same time that “the market currently will not witness a rise of up to 200,000 dinars for every 100 dollars, at least in the short term.”
Al-Saadi points to “the impact of the expected international political developments, especially with US President Donald Trump set to assume power again this month, and the repercussions that may accompany that on the international and regional scenes, including potential impacts on Iraq and Israel.”
During his speech, Al-Saadi presented a set of urgent recommendations that could contribute to calming the market and ensuring its stability:
First: Restricting the disbursement of salaries.
Second: Strengthening the media aspect. Third: Approving the general budget (passing the tables).
The financial and economic advisor to the Prime Minister, Mazhar Mohammed Saleh, had previously said that “the difference between the two exchange rates in the market is basically stable for reasons related to controlling the sale of cash dollars from legal outlets to travelers in an organized manner and subject to a precise rule of compliance and auditing, in addition to the ability of the traveler to obtain other permitted amounts through payment cards in all their forms, in sufficient and comfortable amounts at an exchange rate of 1320 dinars per dollar.”
Last year, Iraqi Foreign Minister Fuad Hussein said on a visit to Washington that his country had engaged in discussions in Washington with representatives of the US Treasury Department to address issues of dollar restriction.
Hussein described the meetings as “very useful,” noting that they will continue, and that topics scheduled for future discussions include further talks on the list of Iraqi banks subject to US sanctions and the status of Iranian funds accumulated in Iraq.
External factors that overthrew the Iraqi dinar
Iraq relies on oil revenues calculated in US dollars, so any changes in Washington’s economic policy towards the region could directly affect its cash reserves and its ability to stabilize the exchange rate.
Economic expert, Duraid Al-Anzi, says, “The rise in the price of the dollar in Iraq is not due to one reason, but rather is the result of several interconnected factors, the most prominent of which is the unstable monetary policies that the state has followed in recent months.”
Al-Anzi added, “The statements issued by the Central Bank of Iraq regarding the closure of the foreign currency sales window were a negative turning point that severely affected the stability of the exchange market, leading to wide-ranging repercussions on the Iraqi economy,” indicating that “closing the currency sales window caused a shake in confidence in the market, because it deprived the local market of an important source of providing dollars.”
This measure, according to Al-Anzi, led to an increase in demand for the dollar on the black market, at a time when the market was suffering from a lack of supply, which caused a significant and continuous increase in the exchange rate, adding, “As this gap continued, the price rose further, which led to confusion in the economy and aggravation of the crisis in general.”
Al-Anzi continued his talk by saying that there are external factors that contributed greatly to the pressure on the Iraqi dinar, the most prominent of which are:
First: The collapse of currencies in neighboring countries, where the Iranian (toman), Syrian (lira), and Lebanese (lira) currencies witnessed unprecedented collapses as a result of the economic and political crises in those countries, which directly affected the Iraqi economy. He pointed out that the collapse of these currencies made the Iraqi dinar appear relatively stronger compared to them, but at the same time it did not protect the Iraqi economy from being affected by regional changes.
Second: Political tensions in the region, as the escalation of political statements regarding events in the region contributed to increasing economic anxiety within Iraq, which made the dinar, which is already suffering from fragility without a strong backing, quickly affected by these variables.
Al-Anzi also said that “Iraq’s reliance on limited countries such as Turkey and the UAE in trade, given the relative stability of their currencies, has made the Iraqi economy pay a higher cost for imports compared to neighboring countries whose currencies are collapsing,” adding that “this trend has led to the loss of a major opportunity to achieve a trade balance with countries such as Iran, Syria and Lebanon, from which imports can be made for lower amounts if the price differences are taken advantage of.”
The International Monetary Fund had said earlier last year that “the imbalances in the financial system in Iraq have been exacerbated by the significant expansion in oil prices,” noting that “Iraq needs to correct public financial instruments and reduce the situation in the long term, preferably by building financial reserves.”
Judy Note on EXCHANGING CURRENCY AND REDEEMING ZIM BONDS
I am not an authority on currency exchanges or ZIM Bond redemption, but I am frequently approached for guidance. The below reflects my personal opinion only and is intended to provide general understanding of the process.
Based on my understandingand personal opinion, here is an outline of the possible process:
WHITE HAT MILITARY OVERSIGHT: The White Hat Military oversees all exchanges and redemptions. Their advanced Quantum Computer system has complete access to personal data, including changes in addresses, contact details, and the purchase history of currencies and ZIM Bonds.
PERSONAL INVOLVEMENT REQUIRED – Only you can exchange your currency or redeem your ZIM Bonds. – The Quantum Financial System links transactions to your unique DNA and body rhythms, ensuring secure identification.
RATES AND HUMANITARIAN PROJECTS – Currency rates are uniform for everyone, though you may request the Dinar Contract Rate. – The redemption rate for ZIM Bonds is contingent upon your personal Humanitarian Project.
– If you don’t have a personal Humanitarian Project, you will receive a set default rate on your ZIM.
NO THIRD-PARTY EXCHANGES – No one can negotiate or exchange on your behalf. – If you’ve entrusted your currency or ZIM Bonds to someone else, retrieve them immediately. Failure to do so will result in the loss of your ability to exchange or redeem.
DOCUMENTATION FOR GIFTS – If you were gifted currency or ZIM Bonds, you must present a notarized and dated statement from the gifter, including names, addresses.
LEGAL CONSEQUENCES FOR MISUSE – Anyone refusing to return your assets or attempting to exchange on your behalf could face legal repercussions. – The only exception to involving another person is if they accompany you to your appointment and co-sign the Non-Disclosure Agreement (NDA).
NON-DISCLOSURE AGREEMENT RISKS – Bringing others to your exchange is risky. If they breach your NDA, you will forfeit all funds.
IF YOU LACK PHYSICAL POSSESSION – If you cannot retrieve your currency or ZIM Bonds, schedule a redemption appointment and explain your situation to the representative for further instructions.
