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Clare:  The Iraqi Dinar Overthrows The Dollar And Wins The Struggle To Control The Regular Market

12/25/2023

 After months of unreasonable rise in dollar prices in local Iraqi markets, which caused great exhaustion for families, especially those with limited incomes, the Iraqi dinar was able to break the rise of the dollar, which sometimes reached about 170 thousand for every 100 dollars.

In conjunction with the rise of the dollar, the prices of foodstuffs also rose significantly as they are linked to the dollar, given that most of them are imported and are therefore purchased through the dollar, which caused great discontent in the Iraqi street, which demanded that the government must find solutions to address this unjustified rise.

Yesterday, Sunday, the US Ambassador to Iraq, Alina Romanowski, announced that her country is continuing to provide dollar services to Iraq.

Romanowski said in a tweet on X, “The US Treasury continues its cooperation with the Central Bank of Iraq, as many Iraqi banks have now formed relationships with international banks for the first time.”

She added that it "is considered a positive step in making progress in reforming the banking sector," noting "the continuation of providing US dollar services to Iraq in the interest of economic stability."

A government source had previously revealed that government and private banks had imported $255 million within two weeks.

The source told Earth News Agency, “According to the latest statistics provided by the Central Bank of Iraq, the amount of dollars imported into Iraq within two weeks through some government and private banks is estimated at approximately 255 million dollars.”

He added, “A number of other requests to import the dollar are on their way to being audited and implemented,” expecting that “other amounts will arrive within the next few days.”

In this context, the economic advisor to the Prime Minister, Mazhar Nimhammad Salih, told Earth News Agency, “The monetary policy of the Central Bank of Iraq, based on its Law No. 56 of 2004, has the central and primary goal of stabilizing the general level of prices and fighting inflation, and the largest source of stability of the general level of prices is the exchange rate.” .

Saleh stated that “the bank’s operational objectives are its signals and procedures regarding the banking market and the monetary system as a whole and to achieve its intermediate objectives, which are the stability of the exchange rate so that the exchange rate in the secondary market approaches the official central price in reality, and this approach achieves complete stability in the Iraqi economy.”

 Saleh pointed out that “the monetary policy works in this direction, and the economic policy also supports it, meaning that the state is a large commercial arm and supplies the market with stable, imported goods and supplies on the basis of 1,320 dinars, and all of these factors are combined, whether the economic policy is with the monetary policy of the central bank, its goal is to bring market prices closer.” Parallel and noise in it, although this market constitutes only 10%, but it causes some noise until this noise is eliminated from that market and its prices approach the official price. The monetary policy of the Central Bank exercises its role accurately and positively and in accordance with short and medium-term plans to maintain overall stability in the national economy as a goal. Macroeconomics and monetary policy.

 He pointed out, “The process of importing all types of currencies, including the US dollar, takes place in light of the Central Bank’s permission for all Iraqi banks to meet the foreign currency needs of those banks’ customers.”

Regarding this matter, the specialist in financial and banking affairs, Safwan Qusay, told Earth News Agency, “It is clear that the Central Bank’s policy is to comply with international requirements and cooperate with the US Federal Reserve by allowing the American banks Citibank and JPMorgan to manage international financial transfer operations in a direct relationship with five Iraqi banks at this stage.” The first is through the mediation of a section of Jordanian banks, and it is also possible that five other banks will be added early next year. All of this will lead to reducing the waiting period and dealing with the expansion of the knowledge of small and large Iraqi merchants, and the possibility of having dealings in different currencies.”

He added, "These tools helped restore confidence in the Iraqi dinar and consolidate the trade process with all types of countries and various types of goods. We also note that the reforms of the Sudanese government, which seem to have international acceptance at the level of the United Nations, are in removing Iraq from the circle of dependence on oil only to the circle of economic integration." In all sectors and the search for sustainable revenues from the geographical location of the food industries and the stimulation of commercial activity in Iraq, all of these will also support the Iraqi dinar.”

Qusay pointed out that “the value of the dollar in the informal market will certainly continue to decline with the continuation of government measures to monitor the prices of imported goods at official prices and stabilize their sale process and not allow them to be sold at shadow market prices. The strong relationship with the Turkish side will allow for the resumption of Iraq’s oil exports and trade openness to the European system through Turkey.

The exchange rates of the dollar against the Iraqi dinar fell in the local markets today, Monday, to below 150,000 per 100 dollars, after it had recorded more than 155,000 per 100 dollars during the past days.   LINK

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Clare:  Selling an Iraqi currency dating back to the era of “King Ghazi” for 100 thousand pounds sterling

12/25/2023

 A very rare Iraqi currency dating back to the royal era was sold in the country, today, Monday, at a fantastic price of 100,000 pounds sterling, or approximately 187 million Iraqi dinars.

According to a report by the American “Alam Queen” magazine, translated by “Al-Ghad Press,” “a sample of a 100-fils banknote from Iraq dating back to 1941, printed in India during World War II, was sold for a price of 100,000 pounds sterling (126,400 US dollars) at the paper auction.” Noonan Mayfair's 1,000-piece global coin launch on November 29 and 30. It was expected to fetch £50,000-£70,000. 

The report added, “The memorandum bears the serial number  O/00 000000 and contains a picture of King Faisal II as a child in a frame on the right side. It was printed by the Nasik Press in India and given to the first director general of finance in Iraq, Abraham the Great. The sender was one of his descendants, called The big one too.” 

He continued, "Andrew Pattison of '  Noonans ' said it was an almost legendary note; it had never been offered at auction before and was unlikely to come up again. The note had been issued for weeks, and only one low-grade example is believed to have survived. It has This auction represented the only opportunity to complete the Iraq series once and for all.” 

The report stated that “Among the exhibits also, and from the same sender, is a sample of a 50 fils banknote from 1944 bearing the serial number  A000000 and a similar picture of King Faisal II when he was a child, but on the left. It reached 50 thousand pounds sterling, with an estimate ranging from £30,000 to £40,000.” 

He pointed out that "there is another distinctive piece, which is the highest denomination and rarest Swedish currency ever issued, which is a 10,000 kroner banknote dated 1939 from the  Sveriges Riksbank . It was sold for 17,000 pounds sterling."   LINK

Clare:  What are the reasons for the continuous decline in dollar exchange rates?.. A parliamentarian answers

 12/25/2023  Baghdad 

Member of the House of Representatives, Suhaila Al-Sultani, on Monday explained the reasons for the decline in the dollar exchange rates after months of rise, while confirming that the results of the successful measures and decisions taken by the government and the Central Bank have begun to be translated into reality.  

Al-Sultani said in an interview followed by Mawazine News, that “the dollar exchange rates will witness a significant decline in the local markets compared to the rise that the parallel prices reached in the previous period,” noting that “the government’s continued taking the right steps in this file will reduce the gap between the official and parallel rates.” almost". 

She continued, "The campaign of arrests and prosecution of currency speculators had an effective role in keeping the Iraqi dinar from collapsing," adding that "the Central Bank's decisions work to match the parallel and official dollar exchange rates."   

The member of the House of Representatives added, “Controlling the dollar file, in light of the major violations in this file, will not be instantaneous and will need a period of time in order to impose it on the local markets,” noting that “the results of the successful measures and decisions that the central bank government took have begun to be translated on the ground.” reality". LINK

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Clare:  Central Bank of Iraq.. Our procedures have revolutionized the financial and banking sector

12/26/2023  Independent/-

Assistant Director General of the Department of Investment and Foreign Remittances at the Central Bank of Iraq, Muhammad Yunus, confirmed that the Central Bank’s measures were a “revolution” in the financial and banking sectors, indicating that the Central Bank has begun to reap the fruits of the recent measures.

Younis said, in a press statement followed by Al-Mustaqila on Tuesday, that “the Central Bank’s measures contributed to enhancing transparency and governance of financial institutions, improving services provided to citizens, and increasing confidence in the Iraqi economy.”

He added, “The Central Bank will continue to take important economic measures in 2024, with the aim of achieving economic stability and promoting growth.”

Younis pointed out that “Iraqi banks opened accounts in Europe and some countries for the first time, after complying with international standards.”

He pointed out that “compliance with international standards facilitated the trade financing process and contributed to increasing Iraqi exports.”

The following are the most important measures taken by the Central Bank of Iraq:

Issuing the new Central Bank of Iraq law, which regulates the bank’s work and subjects its budget to parliamentary oversight.

Forming a committee to combat money laundering and terrorist financing, which works to enhance transparency in the financial sector.

Issuing new instructions to commercial banks, obligating them to follow corporate governance standards and combating money laundering and terrorist financing.

Starting to implement the electronic payment system, which aims to facilitate financial transactions and increase transparency.

These measures come within the framework of the Iraqi government's efforts to reform the financial and banking sector and enhance confidence in the Iraqi economy.   LINK

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Clare:  Government media announces the measures taken to adopt electronic payment

12/26/2023  Baghdad

Today, Tuesday, the government media team announced the measures taken to adopt the electronic payment system, and while confirming that the file receives direct attention from the Prime Minister, it pointed to the implementation of electronic payment in the departments and institutions of the Ministry of Health early next year, 2024.

The team’s spokesman, Haider Majeed, told the Iraqi News Agency (INA), followed by “Al-Eqtisad News,” that “the file of electronic payment and the use of electronic point-of-sale (BOS) devices is one of the files that receives direct attention from Prime Minister Muhammad Shiaa Al-Sudani, who directed the importance of adopting This file will be discussed during the next stage.”

He pointed out, "There are many procedures regarding adopting the electronic payment system, as the government media team held meetings with the relevant authorities, including the Ministries of Finance and Oil, as well as the Central Bank of Iraq, to ​​develop a specific mechanism."

Majeed added, "The first entity to implement the electronic payment system was the Ministry of Oil regarding government gas stations, then the rest of the ministries and departments such as the Ministries of Health, Interior, Labor, Social Affairs, and a number of ministries that have direct contact with the lives of citizens, and in which collection is required."

He pointed out that "the Ministry of Oil issued a decision to use electronic payment for all government and private gas stations throughout the governorates, and special cards will also be issued for government vehicles."

He continued: "The Ministry of Health will also implement the electronic sales system in public departments, clinics, and health insurance at the beginning of next year, 2024, in addition to the measures taken now in the Passports Directorate to collect funds for issuing and renewing passports from citizens."   LINK