KTFA:
Clare: What are the reasons for the weakness of the Iraqi dinar compared to other currencies?.. An economist answers
8/12/2023 Information / special.
Today, Saturday, the economic expert, Abd al-Rahman al-Mashhadani, explained the reasons for the instability of the Iraqi dinar in the local markets compared to other Arab currencies, while confirming the existence of a large discrepancy between import and export in the country’s markets.
Al-Mashhadani said, in an interview with Al-Maalouma Agency, that “the central banks of the Gulf countries, whether they are Jordan, Kuwait or even Saudi Arabia, have taken a decision to price their local currency, which depends on a basket of currencies, including Iraq, as bulletins previously appeared in the newspaper in the seventies.” of the last century, measured on the basis of this basket.”
He added, “All global currencies are attributed to the dollar, but the economies of these countries are stable and there is no problem, and the difference is obtained at the prices of market materials, that is, inflation occurs and the rates of rise increase, which happened in the UAE, Saudi Arabia and Kuwait as well.”
The economist explained, “These countries do not deal in dollars in the markets at all, given that all financial transfers are obtained in the local currency only, and this is one of the reasons for the stability of the market,” noting that “Iraq was unable to control this situation completely.”
And Al-Mashhadani said, “The other matter is trade, that is, import and export, without relying on the government sector in particular. In Iraq’s markets, as a result of the large discrepancy between import and export, it is natural that there is a great demand for dollars.”
He stated, “The Iraqi dinar was linked to the dollar before 2003, that is, from the Kuwaiti war in 1991, given that the market has always fed the import of the private sector, so there will be no stability.”
The Iraqi dinar has been in an unenviable situation for nearly 20 years. After one dinar was equal to 3 and a half dollars during the past century, it reached more than 1550 against one US dollar, which caused problems in the Iraqi economy. LINK
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Clare: The dinar is in the central recovery rooms.. and accusations against the Americans of creating crises
8/12/2023 Information / special.
The official currency of the Republic of Iraq, and one of the historical manifestations and legacy that accompanied Mesopotamia for more than 90 years, proved its strength in the global economy, but in one way or another it began to decline and reached “unenviable” stages.
The dinar, which was previously compared to world currencies, reached the path of strength overnight and found itself ahead of many countries, as it began to be used in 1932, i.e. during Iraq’s independence from Britain, and was replaced by the Indian rupee at a rate of 1 dinar = 13 rupees.
Later, he decided to link it to the US dollar without changing its value at a rate of 1 dinar = 2.8 dollars, and in 1971 Washington took a decision to devalue its currency by 7.9%, and in 1973 it decreased by 10% to become $3.3778, and it fell to 3.2169. $, which was the price that remained in circulation until the second Gulf War in 1991.
And after 2003, the local currency in Iraq began to decline day after day, which led to its reaching significantly low rates against the dollar, so the Central Bank’s procedures did not help it, and America’s policy towards the Iraqi economy “made matters worse.”
The economic expert, Abd al-Rahman al-Mashhadani, explained the reasons for the instability of the Iraqi dinar in the local markets compared to other Arab currencies, while confirming the existence of a large discrepancy between import and export in the country’s markets.
Al-Mashhadani said, in an interview with Al-Maalouma Agency, that “the central banks of the Gulf countries, whether they are Jordan, Kuwait or even Saudi Arabia, have taken a decision to price their local currency, which depends on a basket of currencies, including Iraq, as bulletins previously appeared in the newspaper in the seventies.” of the last century, measured on the basis of this basket.”
And he adds, “All world currencies are attributed to the dollar, but the economies of these countries are stable and there is no problem, and the difference is obtained at the prices of market materials, that is, inflation occurs and the rates of rise increase, which happened in the Emirates, Saudi Arabia and Kuwait as well.”
And the economist explains, “These countries do not deal in dollars in the markets at all, given that all financial transfers are obtained in the local currency only, and this is one of the reasons for the stability of the market,” noting that “Iraq was unable to control this situation completely.”
Al-Mashhadani points out, “The other matter is trade, that is, import and export, without relying on the government sector in particular. In Iraq’s markets, as a result of the large discrepancy between import and export, it is natural that there will be a great demand for dollars.”
And he confirms, “The Iraqi dinar is linked to the dollar before 2003, that is, from the Kuwaiti war in 1991, given that the market has always fed the import of the private sector, so there will be no stability.”
In turn, a former member of the House of Representatives, Jassem Al-Bayati, personified the reasons for the weakness of the dinar currency in the Iraqi markets, while accusing America of playing an “inappropriate” game with Iraq.
Al-Bayati mentioned in an interview with Al-Maalouma Agency, that “the weakness of the dinar and its instability in the Iraqi markets, especially in recent times, has many reasons behind it,” noting that “the first reason is the decision to re-exchange the dollar against the dinar from 1470 to 1320.”
Al-Bayati explains: “There is no country that takes such a step and reduces the dollar by such a large percentage,” adding: “The reduction stages are supposed to be consecutive, starting from 1460 – 1420 – 1400, and so the decline is consistent.”
And he added, “We are now in a state of confusion, as we cannot obtain dollars in the local markets, not even from bank accounts,” noting that “the dinar is going through a period of instability.”
And the former member of the House of Representatives points out that, “The other thing behind the instability of the dinar is the connection of the issue with America, which is playing an inappropriate game with Iraq.”
And Al-Bayati shows that “the decision to reduce the dinar is governmental and it bears its responsibility,” noting that “the central bank’s measures to restore the strength of the Iraqi dinar did not bear fruit, and things may be complicated after more.”
He continued his speech, saying: “The decision to return the dollar to 1,320 dinars greatly affected the financial budget, and nearly 10 trillion dinars were sacrificed,” noting that “price speculators and those close to America and neighboring countries supporting Washington are the ones who obtained these 10 trillion through Buying the dollar at 1320.
The sources of countries’ strength in the economic field are determined by several factors, foremost of which is the national currency, which requires elaborate measures to maintain its strength internally and externally, and the basis of these measures is to activate the private sector, expand the import sector and reduce exports. LINK
Turk182: looks like Iran is making some moves to increase their Rial. Interesting chain of events of late.
I never bought into that whole Global Currency Reset nonsense, or all that Debt Forgiveness BS that people post, (oh, i signed into my account this morning, and my mortgage was paid off) ALL Bs!
Sadly, I do see Iran building strength with their Rial. Could they make a change at the same time of Iraq, yes – it would make sense for for them to make a change, NOT the same change in value for both, but yes, an increase in the Rial.
I don’t see Vietnam Dong making a change in their value anytime in the near future.
I am still a firm believer that Iraq will increase the value of their Iraqi Dinar in relation to that of the US Dollar within the coming days/weeks. I feel they will come out with a $ 1 to $1 scenario, possibly a few cents higher – for a period of several weeks/months.
Sudani has already gone on record with his “TIMELINE/DATE” –
ALL indications are that the “Fat Lady is ON STAGE, spot light is focused on her, and the band has already played the intro notes, she’s getting ready to belt out the words the Iraqi Citizens have long been waiting to hear for the last 20+Years!”
Dinarling: I also find it very interesting the BRICS meetings are this month beginning the 22nd thru the 25th, and what where the dates for the deadlines Sudani made? Very interesting indeed
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Clare: The Sudanese government acknowledges the experience of dollar speculators and counts on September
8/13/2023
On Sunday, the Iraqi government expressed its hope that the release of budget funds would contribute to reducing the price of the dollar in the parallel market, while it acknowledged that currency speculators have long experience and fraudulent methods dating back to the nineties of the last century.
The government spokesman, Basem Al-Awadi, told Shafaq News agency, “The launch of the budget definitely means the availability of funds. Therefore, the funds will be released towards ministries, departments, and general directorates in the governorates, independent bodies, and all state institutions, and this means that there is a large cash flow.”
Al-Awadi added, “Many financial advisors in the government hope, with the release of budget funds, that next month will be a catalyst for the very large decrease in the dollar exchange rate.”
He pointed out that “the recent rise in the exchange rate came as a result of the decisions taken to prevent 14 Iraqi banks from dealing in dollars, as this negatively affected the market, in addition to the way speculators performed in the currency.”
Al-Awadi pointed out, “The Iraqi government has clear procedures from five months ago until the moment, and the exchange rate fluctuates between ups and downs, but the government is serious about these measures and has a specific plan.”
He explained that “price speculators have long experience since the nineties of the last century, and they move in a way that has a lot of experience and fraud, and despite that, the government’s program is clear according to the scheme of the Central Bank, banks and merchants, to correct the work to go towards buying and selling trade through the central and in the right ways.”
The Iraqi government spokesman concluded by saying, “The government deals with dollar speculators in accordance with the law, and that requires legal measures from economic security and the state to move in this direction.”
The government statements contradict the assumptions of economists that the exchange rate of the dollar will stabilize at its current rates in the parallel market, which exceed the barrier of 150 thousand dinars for every 100 dollars.
Over the past few months, the Central Bank of Iraq’s attempts to control the parallel currency market, subjugate the exchange rate and return it to the official rate of 1,320 dinars per dollar have failed. LINK
DallasDude: Well April and September have shown to be the 2 months where significant rate changes have occurred..God willing this will be significant for all of us especially the citizens of Iraq..
