Iraq Economic News and Points to Ponder Tuesday Afternoon 1-2-24
Tlm724 Administrator Bondlady’s Corner
The Dollar Continues To Submit To The Iraqi Dinar.. The Exchange Gap Is Shrinking And The Federal Government Is Defeated Again
28 December 2023 Information/Private..After the stifling crisis that embarrassed the government in light of the high numbers reached by the dollar exchange rates compared to the official price, some attribute the reasons for the recovery of the dinar to the success of the Central Bank’s measures and its recent steps in providing the currency of some countries to finance the country’s foreign trade.
On the other hand, the decline of the dollar is due to the government’s ability to contain the Federal Reserve’s decisions that contributed to the rise in the exchange rate in the previous period, amid expectations that the decline will continue after the Central Bank translates the recent decisions and measures into reality.
*Results of procedures
Speaking about this file, a member of the House of Representatives, Suhaila Al-Sultani, explained the reasons for the decline in the dollar exchange rates after months of rise, while
she confirmed 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 with the Maalouma Agency, “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 soon.””.
He continues,”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,” pointing out that
“the results of the successful measures and decisions taken by the central bank government have begun to be translated on the ground.” reality”.
*Trade finance
For his part, the economic expert, Abdul Rahman Al-Mashhadani, confirms that
the central bank’s agreements with some countries to finance foreign trade in local currency have contributed to a decline in the dollar exchange rates, suggesting that the exchange rates will reach 145 thousand compared to 100 US dollars.
Al-Mashhadani said, in an interview with the Maalouma Agency, that “the agreement with the banks of the Emirates, Turkey, India, and China to finance Iraq’s foreign trade is a step in the right direction,” noting that “proceeding with these measures will reduce the gap between the official and the parallel.” He continues,
“The measures taken by the government were practical, but the shock of the US Federal Reserve’s punishment of banks prevented prices from falling in the previous period,” pointing out that “the US sanctions were a painful blow to the local markets.”
He added,”One of the factors why the dollar exchange rates did not decline in the previous period was the intervention of the external factor in the dollar issue,” adding that
“the central bank’s agreements with some countries to finance trade in the local currency contributed to the decline in the dollar exchange rates.”
The dollar exchange rates in local markets witnessed a significant decline after months of rise, which created severe economic repercussions for citizens, after the exchange rates at one time reached 169,000 for every 100 dollars. Ended 25/day
The Market “Understands Nothing” About The Reasons For The Rapid Decline In The Exchange Rate.. What Is The Story Of The “Home Dollar”?
Economy/Localities |12-25-2023, Baghdad today – Baghdad The parallel market for selling the dollar has witnessed a remarkable decline in recent days, especially with its decline for the first time below 150,000 dinars per 100 dollars,
amid expectations of a further decline in the coming weeks, according to the readings of some experts.
Muntadhar Ali, a money exchange owner, said in an interview with “Baghdad Today” that he “did not expect the dollar exchange rate to fall below 150 thousand dinars for every $100,” adding:
“There is ambiguity in what is happening and the market was programmed to decline without knowing the real reasons.”
He added, “The profits of speculators in the dollar market for 6 months were depleted in the recent decline,” pointing out that “prices may reach 146 thousand dinars per $100 before the end of the week if the accelerating decline continues.”
As for Ali Al-Tamimi, the owner of a banking office, he pointed out in an interview with “Baghdad Al-Youm” that “the house dollar, which is a name we give to some families that keep part of their liquidity in dollars, began selling the dollar after news of strong declines that the dollar market will witness,” pointing out that “The turnout for sales increased by almost 100%.”
He added, “The demand for buying the dollar is currently low with the increase in supply,” pointing out that “the dollar may fall below 140 thousand dinars per 100% during January if it remains at this pace.”
He pointed out that “the comments of economists and officials prompted a reduction in the market, in addition to the import of the dollar by some private banks, which opened larger windows to obtain the currency.”
As for the member of the Parliamentary Finance Committee, Mudar Al-Karawi, he acknowledged that “the decline in the price of the dollar came due to the actions of the Central Bank and the state by providing liquidity and reducing smuggling,” pointing out that
“the decline is still far from the ambition that we hope it will reach, which is equivalent to the official price announced by the Central Bank of Iraq.”
He added,”The state’s financial policies are good and we expect that the disturbances in the parallel market have become less in terms of speculation,
but this does not mean that it may stabilize at certain limits, especially since we are in an unstable atmosphere in the Middle East that has a direct impact on the economic dimensions.”
During the past few days, the dollar declined rapidly from 1,600 to 1,480 dinars per dollar, which means that it lost more than 8% of its value within 10 days.
They Control The Red Button.” Banking Offices Accuse The “Deep State” Of Manipulating The Dollar: Whales In Baghdad And Erbil
Economy / Special Files |12-27-2023, Baghdad today – Baghdad The dollar exchange rates throughout Iraq witnessed a slight decline at descending levels for a week, which left impressions on the Iraqi street of the success of the government and the Central Bank’s plans to control the rise in the dollar exchange rates to 20-25 points above the official price of 132 thousand dinars for every 100 dollars.
In light of this decline, today, Wednesday (December 27, 2023), many owners of money exchange offices accused what they called the deep state of manipulating the dollar market, while they indicated that there were no fundamentally justifiable reasons for the decline below 150,000 dinars for every 100 dollars.
Fawad Hadi, a money exchange owner, said in an interview with “Baghdad Today,” that “the decline and rise of the dollar over the past days is linked to what we call the deep state that controls the parallel market, and they are the dollar whales in Baghdad and Erbil,” pointing out that the decline was imaginary in order to withdraw liquidity and then raise… the price”.
He added, “There are basically no justifiable reasons for the decline below 150,000 dinars per 100 dollars, but he pushed the ‘house dollar’ to the banking offices to sell it for fear of a decline. That is, there was something like a psychological state, then it rose again, also for reasons that are still unclear.”
Ali Al-Zubaidi, owner of a banking office, said, “We adopt a board with red buttons on it that determines the exchange rate of the dollar and the rest of the currencies in the parallel market, stressing that whoever controls these buttons is the master of the dollar in the markets.”
He added in an interview with “Baghdad Today”, “The sudden decline and rise has caused a real state of anxiety in the markets and will lead to paralyzing work because we are currently facing a turbulent market and there are no answers to the reasons for the decline and rise together.”
While Burhan Ali, an economic specialist, pointed out that “the demand for buying the dollar during the end of the year holiday increases, especially with the presence of thousands of travelers outside the country, in addition to the nature of the security conditions and the imminent launch of more than 1,300 large projects in the country at the beginning of 2024, all of which are factors that pressure the withdrawal from the parallel market.”
He admitted in an interview with “Baghdad Today” that “there is speculation taking place in the parallel market with the publication of inaccurate information that leads to raising or lowering the price of the dollar, pointing out that lowering the price moved the solid dollar among individuals and pushed them to sell it for fear of its continued decline.”
Earlier today, Wednesday (December 27, 2023), the Parliament’s Finance Committee commented on the decline in the dollar exchange rates in the parallel market.
Committee member Jamal Kujar told Baghdad Today,
“The decline in the dollar exchange rates in the parallel market does not mean the end of the crisis.
Perhaps it is temporary, especially since prices have begun to rise again in the local market.”
He added, “Government measures are still insufficient to solve the dollar crisis in light of the failure to find quick solutions to fill a lot of foreign financing, especially with Iran, Syria, China and others.
This is why we believe that the dollar crisis is continuing and its solution requires a long time.”
Provoking Points To Ponder on Ability and Achievement:
I’m a slow walker, but I never walk back. – Abraham Lincoln
That’s one small step for a man, one giant leap for mankind. – Neil Armstrong
You cannot fly like an eagle with the wings of a wren. – William Henry Hudson
In esse I am nothing; in posse I am everything. – John Adams
Out of the best and most productive years of each man’s life, he should carve a segment in which he puts his private career aside to serve his community and his country, and thereby serve his children, his neighbours, his fellow men, and the cause of freedom. – David Lilienthal
Good is not good, where better is expected. – Thomas Fuller
Never look down to test the ground before taking your next step; only he who keeps his eye fixed on the far horizon will find his right road. – Dag Hammarskjold
We promise according to our hopes, and perform according to our fears. – La Rochefoucauld
Practice yourself, for heaven’s sake, in little things; and thence proceed to greater. – Epictetus
