More News, Rumors and Opinions Sunday PM 12-29-2024
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Tishwash: Goodbye dollar auction.. Central Bank announces the end of 20 years of billions and suspicions
The matter has been settled.. Iraq will no longer offer its precious dollars in the controversial dollar auction, or what was called the foreign currency sales window and the electronic platform.
After 20 years since the start of this procedure, Ammar Khalaf, Deputy Governor of the Central Bank, confirmed in a statement to the 964 Network that the dollar platform has become closed in compliance with the date set by the governor to close it at the end of 2024.
Khalaf denied all rumors about the possibility of extending the platform’s work, and spoke with great positivity, reassuring the market and consumers that the overwhelming majority of traders have already adapted to the new system in which the Central Bank does not provide direct dollars to traders. But what will happen?!
The sale of the dollar was a mechanism adopted by the Iraqi government after 2003 during the era of Governor Sinan Al-Shabibi, for several goals mentioned in a study by the bank official, Dr. Walid Aidi Abdul Nabi , including controlling the exchange rate and raising the purchasing power of those with limited incomes, among others. It aims to provide hard currency to traders in order to finance their imports of goods from abroad, but the idea was later subject to much skepticism and suspicion, and the auction became one of the most frequently mentioned files in discussions about corruption, fictitious import invoices, and currency smuggling to neighboring countries, among others.
According to the new system after the window closes, traders will have to deposit their money in dinars in Iraqi banks that have entered into partnerships with foreign banks (called correspondent banks). These correspondent banks with American banks will undertake all verification and compliance procedures, while the Central Bank will only be tasked with strengthening the dollar balances in the accounts of banks that are able to pass all these procedures.
Many experts believe that this step has relieved the Central Bank of responsibility for any potential manipulation of invoices or attempts to smuggle currency, and the Central Bank has thus protected itself from any potential American sanctions with their dangerous implications for the country’s economy.
Khalaf said, “The date for closing the platform is fixed, it will not change and will not be extended. The banks have been preparing since the beginning of this year when Governor Ali Al-Alaq announced his intention to close the platform.”
According to Khalaf, “transfers are made by strengthening the balances of Iraqi banks, and 97% of transfers are now made according to the new mechanism. This will be noticeable during the first days of the new year, as the Central Bank’s transfers to banks that are operating at full capacity will not change by strengthening the balances with correspondent banks.” However, he left the door open to the possibility of a very slight and ineffective decline in the Central Bank’s sales.
He pointed out that “the majority of banks in Iraq have correspondent banks and have been operating according to the new mechanism since the beginning of this year, and traders will not face any problem unless their money is in banks without correspondent banks.” link
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Courtesy of Dinar Guru: https://www.dinarguru.com/
Frank26 This is extremely important you understand this. It is projected at the end of this month on the 31st that the auctions will come to an end. Therefor the next day the citizens of Iraq will be looking for something to use. They will demand a dollar because that's all they know and they will be rejected. The demand for the dollar will increase. The black market value will increase for the dollar (which is not official, which has no meaning, no value to the CBI). But for at least maybe until the 7th. Why? Because on the 7th Sudani has ordered parliament to finish and sign off everything on the budget. If not he'll take care of it...One week of bubble. That makes sense. I like it.
Militia Man Article quote: "Issuing money can help provide the economy with liquidity which can prove economic growth and innovation." Sounds about where Iraq is headed, right? However, if not managed carefully the government's directly issuing can lead to inflation." Inflation is the consequence of not playing by the rules as we all know. Why would Alaq be talking about this? ...The exchange rate change is likely to be coming because they're going to have something that supports the ability to do all of this and they have the United States...and the coalition on board for it and you probably have the Bank of International Settlements...World Bank...IMF...UN...okay with it [too].
Get As Much Silver As Possible - Here's Why | Jon Forrest Little
Liberty and Finance: 12-28-2024
Historian and precious metals expert Jon Forrest Little discusses the historical significance of gold and silver as money, the current state of the monetary system, and the implications of fiat currency.
He emphasizes the importance of precious metals as a hedge against economic instability and shares insights on the current precious metal market, advocating for the accumulation of silver as a strategic investment.
The discussion also touches on the broader economic landscape, including the hollowing out of the U.S. economy and the potential future of fiat currencies.
INTERVIEW TIMELINE:
0:00 Intro
1:20 Monetary history & today
14:13 When will the Dollar collapse?
22:40 Using silver as money
27:38 Metals in 2025