Militia Man Article quote: “What is the impact of the use of electronic payments on the Iraqi dinar? The electronic payment process will contribute to the government in withdrawing the cash mass available to the public.” It’s in black and white…This isn’t something that’s new. This was February 25th…They’ve been working on this for quite some time…1.6 trillion is a big deal. It’s an affirmation they have been on track to do what? …reduce the note counts. They’ve done that.
Pimpy Deletion of the zeros is a redenomination. Iraq is not positioned to do a redenomination. That means you have to create all new bill. I know they keep telling you guys it’s only coming off the exchange rate but they’re wrong…There’s no increase in the exchange rate. I was hoping things will start going up in increments by now but that’s not even moving, not yet anyway.
MarkZ [via PDK] There are still different rates showing up on bank screens. A number of banking contacts have chimed in saying they are seeing the dong at $2.86. We don’t know if this is a place saver. But am hopeful this is the rate on it. They are seeing IQD over $4+.
Samson Article: “The International Monetary Fund praises the actions of the Iraqi Central Bank, the stability of the national currency, and the control of monetary inflation”
GameofPatience So the budget is approved at the present dinar value of 1,310, that’s not a rate change. It will be interesting to see what happens next. The only way to change/revise a law is to amend it. So they would need to Amend the 2024 budget sometime later to change the currency value.
Clare Announcement: “Declaration of function” quote: “The Central Bank of Iraq announces the opening of contract employment for the position of cash examiner, provided that applicants for these positions are in accordance with the conditions stated later…”
Militia Man They got it [the budget] done…What does it have to do? It’s got to go to the Gazette…whether that’s going be on Wednesday which is 24 or 48 hours or is it going to be Saturday or will it go all the way out…15 days. We’re going to find out.
Jeff The budget got approved with the currency value at the Central Bank value of 1310 dinar per dollar. That is not a rate change and no it can’t just magically float up 1 to 1 in the way it sits right now. Remember the budget is a law…Changing the currency value would be a revision to the budget law. It would have to be amended somewhere during the term of the budget year or they’d have to wait till the next budget period to change the rate. That’s the scenario we’re in as of right now…There are some disagreements with the budget. We need to give those disagreements a few days to play out to see if they’re going to…appeal the budget.
MarkZ [via PDK] Question: …is it true the Budget has nothing to do with the rate. It’s dependent on oil? MarkZ: Yes and no…in the budget they left a mechanism for a revaluation based on rates and oil production. ….They can do the budget without the rate change- does it make sense to do that? NO….because they have been running over a 30% deficit each year.
Pimpy They just passed the budget and unfortunately they did not increase the exchange rate…There was no indication out there whatsoever that they were going to change the exchange rate…
tishwash Article: “The House of Representatives sends the 2024 budget schedules to the Ministry of Justice – The Iraqi Facts” the schedules are on the way to the gazette
Samson Article: “Finance Committee after voting on the budget tables: There is financial abundance for the governorates and ministries“
MarkZ [via PDK] I have been unable to find a complete copy of Iraq’s budget that was passed to look for a rate. I do not think the new rate is in the budget that was passed …yet. They have the mechanism for changing the rate in there though. So they can do that rate change at anytime…They are still showing the official rate of 1310…. It happened like
this in Kuwait also…that although they had started the RV process. Kuwait was still showing the official rate for awhile. Comment: Maybe they are waiting to put the new rate in the Gazette- either Wed or Sat? MarkZ: That is very possible.
Mnt Goat Article quote: “The budget is not affected by the rise or decline in dollar exchange rates, because Iraq will receive the dollar from the export of oil, and on the contrary, revenues increase as dollar prices increase globally,” The rate of the dollar to the dinar will NEVER be in the budget…NOT GOINGTO HAPPEN! …The budget is dependent on the price of oil.
