People keep taking about the $3.22 rate. In their minds they keep thinking, 'Oh yeah, the $3.22 rate when Iraq had 25,000 notes. ' No. That's not the case. That exchange rate is when they had lower denominations, not these these hyper inflated currency...We're all hoping the exchange rate will change without deletion of the zeros. That's what we want. We'll see how that plays out...
People always say, Oh, you know, President Bush said the Iraqi dinar will pay for the war itself. No, what he said was Iraq would pay for the war itself, not the Iraqi dinar. They're talking about the oil. It wasn't even Bush that said that...
Signing an Iraqi-British agreement for joint cooperation in the stock market
3/26/2024
The Securities Commission announced, on Tuesday, the signing of a joint cooperation agreement with the British Chartered Institute for Securities, which includes the exchange of information related to financial training programs, confirming that the agreement represents a qualitative shift in the work of brokers in the stock market.
Deputy Chairman of the Securities Commission, Nagham Hussein, told Shafaq News Agency, “Today, the Iraqi Securities Commission signed a cooperation agreement with the British Chartered Institute for Securities and Investment, which stipulates the establishment of a framework for cooperation and exchange of information related to financial training programs for securities markets and services to develop and maintain capabilities.” HR".
She added, "The articles of the agreement include the possibility of organizing training courses for Iraqi cadres to benefit from the experiences of financial markets in countries around the world, and developing the professional framework by imposing the qualifications of the Chartered Institute for Securities and Investment on local Iraqi institutes specialized in the field of securities."
For his part, Chairman of the Securities Commission, Faisal Al-Haims, told Shafak, “The agreement has been worked on by the Securities Commission for about a year. The signing of an agreement in cooperation between the Securities Commission and the British Royal Institute in licensing the capital markets is a highly professional certificate recognized in all countries of the world.”
He pointed out that "this agreement represents a qualitative shift in the work of brokers in the stock market in terms of stimulating the financial performance of companies and their ability to add new skills, not in the Iraqi stock market, but in other markets, both regional and global." LINK
[via PDK] “Customers at the Central Bank of Iraq, which says many foreign trade transactions now go through its electronic platform” This tells me that some of the Iraqi sanctions may have been lifted as we speak. The key is when will we see the rate ? I don’t know what to expect yet on that front. There is a lot of positive chatter that it could be imminent. I might actually purchase some champagne.
We definitely have Iraqi representatives/Ministers inside the US right now.Some are in DC and there are a couple in New York - for UN reasons…which I think is interesting...I don’t expect Sudani to visit DC just yet. I believe his ministers are taking care of it. I believe Sudani would want to be in his own country for the revaluation...To me things are shaping up just as I expected they would at the end...Very positive stuff happening right now.
Preserving foreign reserves.. An Iraqi academic study answers the question “The stability of the Iraqi dinar against the dollar”
3/25/2024
At a time when the price of the dollar is still fluctuating between high and low, forcing the market to live in a state of some kind of confusion, because the hard currency constitutes an important tool in Iraqi trade, as it is a trade that depends on imports for most of the products in the local market, On Monday, a researcher whose master’s thesis was discussed at the College of Administration and Economics at Tikrit University put forward some possible solutions for controlling the price of the dollar, as his thesis came about the role of the central bank and the currency selling window, their role in stabilizing the dinar against the dollar, and the importance of maintaining foreign currency reserves. .
Researcher Ahmed Abdullah Akil told Shafaq News Agency, “The study aims to know and measure the extent of the impact of some of the central bank’s tools in achieving stability in the exchange rate of the Iraqi dinar against the US dollar during the period (2004 - 2022) in order to know the places of imbalance and negatives that hinder achieving Stability of the value of the local currency according to what is appropriate to the nature of the Iraqi economy, as the goal of maintaining the value of the local currency was the primary goal of the bank with the aim of maintaining the price level, which is essentially linked to the exchange rate of the local dinar against the US dollar.
He added, "The study variables were analyzed and measured according to the (Eviews 13) program, and it was found that there is a positive and significant relationship between some of the central bank's tools as independent variables and the official and parallel exchange rates as dependent variables in the short term, with some negative and positive correlations to some variables in the long term, as It was noted that some tools were ineffective in influencing the currency exchange rate, such as the legal reserve, the rediscount rate, and open market operations, but the effect of some of them was limited to inflation.
He pointed out that "while the effect of the interest rate and the window was positive on the value of the local currency as a result of its reduction in the nominal exchange rate, this indicates the ability of the central bank to influence the stability of the exchange rate of the local currency against the foreign currency, especially through the currency selling window throughout the study period, except for some In the last years of the study period, the nominal exchange rate rose again, and so did the parallel market, by decision of the monetary authority represented by the Central Bank, for the purpose of confronting public expenditures and confronting the repercussions of the global health crisis related to the Corona epidemic and the accompanying decline in oil prices, which is the main source of the dollar. America because of the rentier nature of the Iraqi economy.”
He continued: “It was also noted that the gap between the official exchange rate and its counterpart in the parallel market increased due to the increased demand for foreign currency, and the study presented a number of recommendations, the most important of which is continuing the operation of the window without excessive use of foreign reserves and diversifying the sources of obtaining foreign currency by pushing the wheel of development and activating the real sector.” Industry and agriculture, in order to achieve a reduction in imports, which reduces the depletion of the currency, in addition to tightening control measures to prevent the smuggling of foreign currency and actions that affect the supply of it, which contributes to the stability of the local currency exchange rate.”
He stressed that "continuing to operate the currency selling window without compromising on foreign reserves, and diversifying the sources of obtaining foreign currency so that the exchange rate does not remain hostage to oil prices as it is almost the only source of obtaining foreign currency."
He stated that "advancing the wheel of development in Iraq, activating the real sector, revitalizing industry and agriculture to reduce imports, relieving pressure on foreign dollar reserves, distancing the Central Bank from political pressures, granting it the necessary powers to deal with fluctuations in the economic situation, including exchange rate fluctuations, and tightening supervisory measures to prevent foreign currency smuggling." abroad so as not to affect the supply of foreign currency, and thus the value of the local currency.” LINK
Comment: "Biden has nothing to do with this but the feet dragging in Iraq has become the constant..." The "Biden Regime" has everything to do with this...Just look at the currency sales numbers and you should see why the "Biden Regime" does not want change. You still have the Coalition Provisional Authority functioning in Iraq led by the US...We know from articles last fall that US Receivership is still in place and UN1483 status is unknown...
Saleh recently even stated in an interview that even he did not know the status of 1483...not to mention the OFAC sanctions...Yes...the "Biden Regime" has everything to do with this...
While Iraq appears to be on the way to a full RI, I believe there will be an interim step very soon. If they make the move I anticipate the MCP will be quickly eliminated and they can proceed to a full RI. A RI is full Article 8 compliance and a return to the rate that reflects the True Value. In 2009, the MOP/MOF stated move to 1.14-1.17USD/IQD and monitor for inflation up to 3 years and then move the rate to reflect the True Value of 3.208USD/IQD. This was the plan of Dr S and it appears they are back on track following that plan.