GOLDILOCKS: ABOUT THE AGREEMENT BETWEEN CBI AND THE EMIRATES ISLAMIC BANK, 4 MARCH

GOLDILOCKS

Goldilocks - QFS Conversations ™ (Official Page), [02/27/2025, 8:45:44 a. m.]:

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"The Central Bank of Iraq announced the signing of a banking agreement with Emirates Islamic Bank. ...a mechanism that will allow individual customers of Iraqi banks in the near future to invest (partially) in Islamic bonds issued by Emirates Islamic Bank or other issuers with a similar credit rating in the United Arab Emirates. "

For retail investors to invest in bonds of another country, understanding and managing currency exchange rates is crucial, as the value of the investment in your home currency will fluctuate based on those rates. 

Here's a more detailed explanation:

Currency Risk:

When you invest in bonds denominated in a foreign currency, you are exposed to currency risk, meaning your return on investment can be affected by changes in the exchange rate between the foreign currency and your local currency. 

Exchange Rate Fluctuations:

Exchange rates constantly fluctuate, and a weaker exchange rate for the foreign currency could mean a lower return when you convert your investment back to your local currency. 

Impact on Returns:

The returns on your foreign bond investment, including both principal and interest, will be converted back to your local currency using the prevailing exchange rate at the time of conversion. 

Hedging Strategies:

To mitigate currency risk, you can consider hedging strategies, such as using forward contracts or other derivative instruments, to lock in an exchange rate at the time of investment. 

Financial Institution Role:

Financial institutions, like Raymond James, will confirm foreign currency trades in the U.S. dollar equivalent and highlight the risks associated with this type of investment. 

As a retail investor, it's important to understand the potential impact of exchange rate fluctuations on your investment returns and to consider your risk tolerance when investing in foreign bonds. 

Yes, a market exchange rate is absolutely necessary for retail investors in one country to buy bonds in another country, as it determines the conversion rate between the two currencies involved in the transaction. 

© Goldilocks

https://cbi.iq/news/view/2808

https://www.twentyfouram.com/education/fixed-income-101-comparing-yields-in-different-currencies#:~:text=Hedging%20the%20currency%20risk%20of%20a%20bond,done%20simply%20by%20using%20an%20FX%20forward.&text=Changes%20in%20monetary%20policy%20and%20exchange%20rates,when%20comparing%20relative%20value%20across%20different%20markets.

https://home.treasury.gov/data/treasury-international-capital-tic-system-home-page/help-files/frequently-asked-questions-treasury-international-capital-form-s-purchases-and-sales-of-long-term-securities-by-foreigners

MARKZ : They are positioned!, @DINARREVALUATION #iraqidinarinvestor #iraqidinar

 

Iraqi dinar hits nine-month high against US dollar, 4 MARCH

 Iraqi dinar hits nine-month high against US dollar

KurdistanIraqi dinarsUS dollarsCentral Bank of Iraq

ERBIL (Kurdistan24) – The Iraqi Dinar exchange rate has reached its highest level in the past nine months, with the currency strengthening against the US Dollar in both the Iraqi and Kurdistan Region markets.

On Sunday, the US Dollar was trading at 147,750 dinars, but it has since appreciated to 145,950 dinars, signaling a positive shift in the national currency’s value.

This significant improvement is largely attributed to the effective measures implemented by the Central Bank of Iraq. The bank’s consistent efforts in maintaining a steady supply of dollars, coupled with a decrease in demand for the US currency, have played a key role in strengthening the dinar. 

Despite rumors surrounding potential sanctions on Iraqi banks, the exchange rate has remained stable, providing further confidence in the resilience of the Iraqi economy.

Kurdistan24.net

EXCERPTS FROM MARKZ, 4 MARCH

 EXCERPTS FROM MARKZ

Member: Have you heard any good RV news over the weekend Mark?

MZ: There is a huge amount of hype going on for tomorrow. If I am hearing this- I am sure you all are hearing it too. Big expectations going on right now on the RV side. 

Member: So if it’s plastered all over the place….guaranteed no notifications will happen. 

MZ: I don’t know. By now, whenever everybody is saying its time. We all, at this point assume it’s not happening. We are numb. Boy who cried wolf , wolf, wolf…..noone believed him…no one was listening anymore……but finally the wolf was really there. So maybe this is positive

Member: Many think Trumps State of the union address to the nation will be big tomorrow night. 

MZ: And Kurdistan oil is supposed to start tomorrow as well. The pipeline is ready. So along with the State of the union speech…it should be a big day tomorrow. We may even see a softball pitch about Nesara. 

AJ: The Rv , It’s a deliberate decision made by the CBI!! @DINARREVALUATION #iraqidinarinvestor

 

Masa'iya" will return next Sunday.. The Iraqi parliament suspends its sessions this week, 4 MARCH

 Masa'iya" will return next Sunday.. The Iraqi parliament suspends its sessions this week

A source in the Iraqi parliament reported on Sunday that the parliament presidency has suspended sessions this week, and that they will resume next week.

The source told Shafaq News Agency, " The Iraqi Parliament Presidency informed the representatives that there will be no parliament session this week."

He added that " the council will resume its regular sessions on Saturday or Sunday of next week," indicating that "the sessions will be held in the evening after breakfast."   

Last week, the member of the Parliamentary Legal Committee, Mohammed Anouz, revealed to Shafak News Agency that the Parliament sessions during the month of Ramadan will be in the evening, i.e. after breakfast, to ensure the continuation of legislative work before the end of the current session .

It is noteworthy that the current session of the Iraqi Council of Representatives began on January 9, 2022, and is scheduled to continue for four years, which means that it will end on January 8, 2026 .

According to the amended Electoral Law No. 12 of 2018, legislative elections must be held 45 days before the end of the parliamentary term  .

Accordingly, the next elections are expected to be held in late November 2025 .  link

TIDBIT FROM PIMPY, 4 MARCH

 Pimpy 

Article: "Iraqi dinar hits nine-month high against the US dollar"

  This is good.  This means the Iraqi dinar has grown in value...It's not much of a jump but if you put things in perspective it seems like a pretty big jump signaling a positive shift in the national currency value.  

 We want this number right here [145,950 to 100 USD] to go down...

 -

 People going...Pimpy, he's a negative guy.  No.  I'm not a negative guy.  I don't understand how people get telling you the truth as something negative.