The [CBI] contact...told me thatthe rate is going to change very soon but not backwards only forwards, meaning to go up in value and not down. I was also told that as an investor we will like the final rate.
Again, it was emphasized to me that there would first be an in-country rate (close to USD 1 to IQD 1) during the swap-out in Iraq of the three zero notes and then later a new rate once the dinar is liberated back to the foreign currency exchanges and re-pegged. At this point the in-country rate goes away. There will NEVER be two rates...They wanted to make this point very clear to me that this is the process. When the in-country rate comes out there is little we, as investors, can do to exchange and our turn-out will come later, if we so choose to give up our dinars.
...The rate is NOT going to start at 1/6 of a penny and climb from there when it does get reinstated. The rate has to reflect the TRUE rate of the value of the assets Iraq now holds.
Not the value of an intentional, sanctioned, suppressed currency. Why would they even bother to do all this work for the banking, financial and currency reforms if they were just going to leave the rate at 1/6 of a penny?
Economic 12/05/2023 Yasser Al-Metwally There has been a lot of talk about banking reform and the importance of the banking system returning to the banking services for which it was established. In an unprecedented manner, the government is urging steps to achieve this goal after realizing the importance of the banking sector in achieving comprehensive development programs, so that international investment companies wishing to enter the Iraqi market cannot do without solid banks that provide advanced services to facilitate the work of companies and as the strong arm of the Iraqi private sector in dealing and partnership. With external and internal investments. From this standpoint, the government seeks to activate this role and achieve the desired reform, but what are the challenges facing achieving this goal? The most prominent challenges facing the banking sector are (loss of confidence) depositors’ confidence in banks and, in return, banks’ confidence in their customers. Of course, this phenomenon has many causes that are inherited from the time of the era preceding the period of change and extended more widely during the transitional period and up to the present day. It is known and declared axiom that the legally issued monetary mass exceeds 100 trillion dinars. It is also known that 70 percent of this mass is outside financial circulation, outside the financial market, and hoarded by the public. Efforts are being made to attract this mass, or at least part of it, to deposit it in banks with the aim of investing it and recycling it in construction and development, but there is a reluctance among the public to deal with banks. The reason, as I mentioned, is lack of trust. Here, with the aim of achieving reform of the banking system and making it effective in performing its duties and providing banking services, the steps that must be followed from our point of view are: First: To correct and activate banks in performing their duties by providing real banking activities and services, urgent government measures must be taken to restore the confidence of the public and the depositors. Secondly - The larger goal of engaging banks in implementing sustainable development programs requires attracting the public’s accumulated cash mass so that it can be invested in implementing development programs.
To achieve these two goals, the government must:
1 - The agreement between the government and Parliament to sign a code of honor not to expose and attack banks in the media in a way that harms the banks’ reputation and leads to the public’s reluctance to deposit their money in them, because conflicting statements contribute to deepening the loss of confidence in banks. 2 - The government and the Central Bank must amend the banking law to provide protection and guarantees for banks when financial crises occur, which is what is done in countries of the developed world, and this is what encourages the public to go to banks and deal with them. 3 - Obliging banks to carry out their true banking activities and services with full transparency and clarity by devising various and well-known means of encouragement. 4 - The Central Bank and the government must push towards stimulating free competition between banks to attract depositors. It is noted that whenever the curtain falls on the phenomenon of lack of confidence in banks and things are going well, this confidence collapses quickly with any fluctuation in the exchange rate that occurs for reasons that can be addressed by monetary policy, but the media attack by Iraqi officials and parliamentarians at various levels with all the accusations confuses the market and the effect of this is stronger. Many rumors hinder the procedures, so we call for a code of honor not to discuss matters and leave them to those responsible for monetary policy and handle them without chaos and side effects. This is one aspect of achieving banking reform Which is targeted by the government and gains priority to advance an advanced reform program. https://alsabaah.iq/88408-.html
Obstacles To Adopting The “Dinar-Toman” In Trade Exchange.. What Does Tehran Do With The Accumulated Dinars?
Politics/Economy |Yesterday, 17:09 |Baghdad today – Baghdad Many questions have been raised since the Central Bank and the Iraqi government announced that they had concluded agreements with a number of banks and other countries to deal in local currencies in commercial exchange, but the most prominent question raised is what will be done or how will other countries, especially those that export large sums of money to Iraq annually, benefit from the Iraqi currency, the dinar, Which is supposed to be paid by Iraq or merchants for the purpose of importing goods instead of the dollar.
The Central Bank of Iraq concluded agreements with banks in Turkey, the Emirates, and China for the purpose of dealing in the local currency instead of the dollar, as well as dealing with Iran in the binary (dinar-toman) for trade exchange, but this problem will emerge clearly with countries with which trade exchange between Iraq is “non-existent or non-existent.” From one direction,” meaning that Iraq imports more from it than it exports to it, especially Iran and Turkey. Economic expert Abdul Rahman Al-Mashhadani reviewed today, Sunday (December 3, 2023), the obstacles to adopting the national currencies of Iraq and Iran in trade exchange. Al-Mashhadani said in an interview with "Baghdad Today", "Iran exports to Iraq more than 10 billion dollars annually, while Iraq exports to it only approximately 570 million dollars, meaning that the latter's percentage in the exchange process reaches 5%, meaning that trade between Baghdad and Tehran is unequal." In terms of import volume. He added, "The lack of parity will lead to the accumulation of the dinar among the Iranians, which is not a leading currency and faces many restrictions in the process of exchanging it, even in some neighboring countries, which means that the Iranians will be forced to buy the dollar from the parallel market in Iraq through the financial liquidity they have because they need He is desperate to cover their needs for paying money in foreign transactions.” He added, "Even the Iranians are not in favor of the idea of proposing dealing according to the (dinar-toman) principle. They are looking for any leading currency or one that has a large scope of dealing, as is happening now in the Emirates by adopting the dirham due to the parity of the trade process between Abu Dhabi and Tehran." He pointed out that "the problem between Baghdad and Tehran can be solved by agreeing to adopt an acceptable third currency that bypasses all complications, in addition to the possibility of increasing the export of black oil in exchange for gas, which was approved months ago because Tehran urgently needs it to operate many of its factories, and through an agreement, the private sector can be covered and accounts opened." It addresses the principle of creating balance in trade exchange. https://baghdadtoday.news/236928-معرقلات-اعتماد-دينار-تومان-في-التبادل-التجاري.-ماذا-تفعل-طهران-بالدنانير-المكدسة؟.html
Iraqi Prime Minister Pledges Commitment to Improve Living Conditions in Kurdistan
In a crucial development that underscores the government’s commitment, Iraqi Prime Minister Mohammed Shia’ Al-Sudani met with Salahaddin Mohammed Bahaaddin, the Secretary-General of the Kurdistan Islamic Union. The discussions centered around improving the living conditions of the citizens in the Kurdistan Region of Iraq, inclusive of regular payment of salaries and pensions, similar to the benefits enjoyed by the citizens in other provinces.
Bolstering Security and Stability
Highlighting the importance of maintaining a stable and secure environment throughout Iraq, Prime Minister Al-Sudani expressed the government’s support for the Independent High Electoral Commission (IHEC). The focus lies in ensuring the success of the upcoming parliamentary elections in the Kurdistan Region of Iraq, scheduled for February. However, the delay in providing necessary funding to the IHEC by Iraq’s finance ministry could potentially hamper the electoral commission’s agenda and schedule.
International Collaboration for Peace
In a recent meeting with the British Ambassador to Iraq, Stephen Hitchens, Prime Minister Al-Sudani emphasized the need for international cooperation, particularly from European countries, to restore stability in the Middle East. This call for unity aims at achieving peace and security for all peoples in the region.
Beneficiaries amidst Conflict
Amidst the conflict, analysts have pointed out that Iraqi Kurds, particularly the Kurdish political class, emerged as the biggest beneficiaries. The Kurds, seen as staunch allies of the Americans, have strengthened their political position and attracted foreign investments. The federal government in Baghdad agreed to increase funds allocated to Iraqi Kurdistan, desperately needed to pay salaries in the northern autonomous region. This decision followed protests in Dohuk, the third biggest city in the region, over unpaid civil service salaries blamed on Baghdad.
In a move that highlights the Iraqi government’s commitment to the arts and culture, the Media Office of the Prime Minister has announced the allocation of a budget of 5 billion Iraqi dinars to bolster the local drama industry. This investment is part of a larger project aimed at enhancing and promoting the country’s cinematic arts, a sector that has struggled for recognition and support in the past.
Revitalising the Iraqi Drama Scene
The funds are expected to breathe new life into the Iraqi drama scene, an industry that has been grappling with numerous challenges. The lack of funding, for instance, has historically limited the production of content, suffocating the creativity and potential of local talent. This new venture could potentially lead to the production of higher quality content, revitalising the industry and fostering the growth of local talent.
Supporting Cultural Expression and Societal Reflection
The government’s investment in the drama industry signifies its recognition of the importance of drama as a medium for storytelling, cultural expression, and societal reflection. Drama has the power to mirror society, reflecting its strengths and weaknesses, its hopes and fears. By investing in this art form, the government is not only supporting the arts but also promoting the expression of the Iraqi culture and society.
Government’s Commitment to Cultural Development
This initiative also underscores the government’s commitment to cultural development. With this investment, the government is sending a clear message: that it values the arts and recognises their potential to contribute to the socio-economic development of the country. The decision to fund the drama industry is a significant step forward in the journey towards a vibrant and dynamic Iraqi cultural scene.
Still today I can't find any news so called restrictions removed. No restrictions have been removed yet.
Article: "Central Bank reveals two agreements during joint Iraqi delegation talks in Turkey"
This agreement with Turkey allows...merchants to purchase goods from each other's country using their own currency. If I'm a merchant in Iraq and I want to buy goods from over there in Turkey to sell in my store I can purchase those goods using Iraqi dinars and vice versa.
If I'm a merchant in Turkey and I want to buy some goods that I can sell in my store over here in Turkey I can use the Euro or the Lera and then the banks will settle the issue with the two currencies . That's why they [the banks] do currency swaps. These are pretty big hurdles Iraq has managed to get over. Let's hope they continue down this path and nothing bad happens...
Sovereignty means freedom. That means you're in control. Nobody else tells you what you can and can't do with your country, with your currency or anything else. That's the whole purpose of sovereignty. Iraq wants control of their currency. This is what we want for them to do...We have to make sure the people that are in control don't screw things up...Let's hope Iraq is ready to do this because if not it really could be a major setback...