The Snod: IMHO, just consider this “water-cooler talk.” I have no “intel.”
I think they are going $1.46 when they move the zeroes over now. A devaluation makes no sense in light of what we have been seeing for months and the market forces that will be involved when they go to the international phase of the White Papers.
Most likely this is what has happened (or some of it, anyways…). Currency values are part math, part psychology, part politics. The reason why ME currencies are high is because they are so reliant on imports for needs that higher exchange rates make them attractive to sellers.
Iraq can’t go 3-4 immediately because they are functioning at the dollar value in their country now (1), between that and transition issues, it would be too chaotic at the forefront, BUT they have a liquidity issue because the oil prices really need to be around $60 a barrel and they project that for this coming year (WS highlighted $60 in the past).
Because of loans that will buy them time, their asset backing, an emerging market that will hit the scene pretty quickly, you can go over 1-1 (1.46), and manage this situation as long as you really have those conversion rates out in front of the people.
The recent information we have seems to say, they have to do some real creative financing if they are to fly on their own. They are also so busy setting things up and getting them going that political obstruction doesn’t look like the problem.
Instead, there seems to be a rush to get ahead of it because of the ports and international road openings we’ve seen which were part 1 of the White Papers. NTM, currency auction changes!
We are right in the pocket! It can only move rapidly forward now, or backwards. And I don’t see any ISIS or Iranians doing much over there these days. If a Biden regime was the issue, why the rush in education, meetings, and openings?
GodLover: Well, certainly as I had stated in previous posts….what the CBI just did, I was expecting. Our previous thoughts on the $ 1.45 now $1.46 rate is even more plausible imo. Further more, this move kind of excites me even more when one considers that the Iraqi citizens are now even poorer than before….puts even more pressure on the powers to be, to make a move VERY VERY quickly or things are going to get ugly with the citizens imo.
Dcdriver: imo Maybe the next step is to delete the zero’s. Time will tell
DeepWoodz: Imo…Not gonna get long winded here.
Couple things jump out….
1) if you’re upset, you have no faith in Gods sovereign control of your life.
A man plans his steps but God directs his path.
2) if you’ve been on this site longer than a few days, you will NOW show your trust in those who work hard for free.
3) Auctions of USD are Way Down and cost is way up. Less people to use dollars. More people to use dinars.
4) All the bozos are having a fit….PRICELESS.
5) Kadhimi is for the people. People need a new rate. Not the same old garbage currency.
6) NSCN’s (Lower Denoms) have been seen and verified by at least two solid sources. These are absolutely worthless at anything short of 1:1.
These are just a few things to remember. There are hundreds more if you’ve been studying diligently.
Remember there is a plan and it is complex.
Ryan1216: Well everybody the IMF stated by the new fiscal year for a new rate and we’re now in a 12 day timeframe.
Bill09: Have you heard about the planetary alignment on the 21st of this month it will form a Christmas star. it has been 800 years since the last one, you can see it in the southwestern sky about 45 minutes after sunset without anything but your eyes.
Don961: Al-Kazemi declares to the Iraqis: I may lose on a personal level, but we will win all of Iraq
Policy , 2020/12/20 00:33 Baghdad – Iraq today:
For the first time in the history of successive prime ministers, a true prime minister comes out to speak out to his people in a delicate and sensitive circumstance and to lay before them the facts as they are without being lost or showing the opposite of what lies behind. Prime Minister Mustafa Al-Kazimi today chose the confrontation that may cost him over The personal level, and it may be affected by it electorally, but it will stand a position that is witnessed by history and recorded in the register of the big men who write their names in the list of national leaders who have taken decisions that may have hurt them at once, but saved their countries from loss and chaos.
Yes, today he was able to tell all Iraqis what no former prime minister dared to say.
Today, the Prime Minister outlined economic measures that his government intends to take in order to save Iraq from the debts that are accumulating, corruption and its continuation that eat away any real opportunity for reform.
The measures taken may be difficult, but they will affect the country’s future in order to lead a comprehensive national reform, and everyone will touch its outcomes, but with popular support and understanding for these preventive measures that the government is taking to avoid a pandemic, it will be harder and more deadly than Corona itself. LINK
Samson: Officially …. the new dollar exchange rate comes into effect
20th December, 2020
The Central Bank of Iraq announced, on Sunday, that the new exchange rate has entered into force in the local markets, according to the monitoring of specialists
The exchange rate of the $ 100 bill this morning, December 20, 2020, on the Kifah Stock Exchange in Baghdad, was 145,500 dinars, as the Central Bank of Iraq began implementing the decision to raise the price of the dollar against the dinar
For his part, a banker who dealt with the central bank said this morning, “The central bank sold the dollar to exchange companies, at a new approved price, which is 1460 dinars to one dollar, meaning that the 100 dollars are 146 thousand dinars
Yesterday, the Central Bank of Iraq issued a statement officially announcing the change of the dollar’s exchange rate, as it was stated in a statement that “during the last months of this year, intense deliberations took place with the Prime Minister, the Minister of Finance and the Legislative Authority, regarding the economic situation in general and the financial crisis that is going through The central bank’s board of directors held a number of meetings, some of which hosted the Minister of Finance for the same purpose
He continued that he decided to adjust the foreign currency exchange rate, as follows
1450 dinars per dollar is the purchase price of foreign currency from the Ministry of Finance
1460 dinars per dollar the selling price of foreign currency to banks
1470 dinars per dollar is the selling price of foreign currency to the public LINK
Samson: Diyala … Food prices rise by 10% hours after the “dollar price” application
12:18 – 12/20/2020
A government official in Diyala confirmed, on Sunday, that food prices rose by 10%, hours after the application of the new dollar price.
The mayor of Baquba district, Abdullah Al-Hayali, said in an interview with “the information”, that “the high food prices fever started to loom with a noticeable rise in the prices of some foodstuffs by 10% hours after the official application of the new dollar price.”
Hayali added, “Baquba, the largest city in Diyala, where the poverty rate is about 30%, not to mention high unemployment and any increase in food prices will create a big problem,” stressing, “The need for the central government and the Ministry of Trade to have plans to contain prices to avoid their rise at rates that burden the people in particular. The economic crisis in Diyala in general is very difficult.
And the Central Bank had officially started this morning to apply the new dollar exchange rate, which amounted to 1450 dinars per dollar. LINK
OnlyLuv: IMO: this should be proof that they can change the rate. If it can go down .. it can also go up ..
Samson: Parliamentary Finance: Parliament cannot force the Central Bank to change the price of the dollar
20th December 2020
The Parliamentary Finance Committee confirmed, on Sunday, the inability of the House of Representatives to force the Central Bank to change the decision to exchange foreign currency against the Iraqi dinar.
“The Central Bank is independent in its policy and is responsible for monetary policy in Iraq, while the Ministry of Finance is responsible for the financial policy in the country,” Magda Al-Tamimi, a member of the committee, told Shafaq News.
She added that “when the central bank determines or changes the exchange rate, parliament cannot amend the price,” stressing that “the recent decision to change and determine the foreign currency exchange rate against the Iraqi dinar is in the hands of the bank governor.”
Al-Tamimi pointed out, “The House of Representatives cannot force the Central Bank to change its decision on currency exchange according to the law.” LINK
Samson: The high exchange of the dollar shocks the people of Mosul, and disputes break out between the shopkeepers because of “previous debts”
20th December, 2020
Mosul markets woke up on Sunday to a cycle of conflicts and problems between merchants and shop owners, due to the rise in the dollar’s exchange rate to 1,450 dinars.
On Saturday (19 December 2020), the Central Bank of Iraq officially announced the adjustment of the foreign currency exchange rate (the US dollar) to 145 thousand dinars for every 100 dollars.
Omar Ahmed, a food supplier, told Shafaq News; He lost nearly 40 million dinars, and today the loss has worsened because he is forced to pay off debts at the new price, pointing out that the shop owners do not accept to pay their debts at the new price and say that the payment is at the old price when it was 1225. And Ahmed saw; The problem is not only in their loss, but in the prices of materials that have started to rise from today, and this will be on the shoulders of the citizen and the daily wage workers, and whoever lived miraculously and in ability, he needs a miracle in order to live and satisfy his family after today, indicating that Nineveh has an unemployment rate of 40 % According to the latest official statistics.
The government is forcing us to commit suicide
As for Ali, who is one of the daily paid workers in the market, he sits today on the side of the road, describing the market as a curfew, and he did not work for a single dinar today. He told Shafaq News, “I work every day from 5 to 8 thousand dinars, so how will I live in the coming days?” He asked, “What does the government want from us? Does it want us to kill ourselves, commit suicide, or steal so that our families can live and survive.”
Although I had to spontaneously mention the theft and had no intentions to do so, the high cost of living and the high prices will complicate the matter and may raise the rates of criminal crimes in the coming period, coinciding with the difficulty of living and the conditions that Nineveh experienced in general and Mosul in particular.
The biggest crisis
As for Abdullah, who is the owner of a shop, he stated that he will be forced to raise prices in the coming days after the old goods and materials run out, and he will be like a mediator and have nothing to do with the rise, but the victim at the beginning and the end is the only citizen, so he pays the price of the wrong government policies and the failure of the political class that drags the country to an unknown and abyss end It may not come out of it. Abdullah believed that the real crisis is not only rising. The real problem and the major crisis is the delay in salaries, meaning that cash will not enter the market regularly and at that hour people will be in a position that they do not envy.
The most difficult year
As for the relief activist Muhammad Karim; He told Shafaq News Agency; “Next year will be the most difficult for the people of Mosul, especially in light of the presence of a large number of widows and orphans in this city, which witnessed the most violent war in modern history, indicating that” the poor need a miracle and a miracle to live.
On Sunday, an official at the Central Bank of Iraq stated that the new pricing for the sale of the dollar was launched in the public auction for the sale of the currency. The source told Shafaq News, “The bank has started applying the new price to sell the dollar,” adding that “it was sold in today’s auction for 1,450 dinars to one dollar.”
According to a document received by Shafaq News; The governor of the Central Bank issued a directive to government and private banks informing them of the new dollar exchange rate. LINK
Samson: Central Bank: Foreign reserves are still good
20th December 2020
Central Bank Governor Mustafa Ghaleb Makheif revealed today, Sunday, that the Ministry of Finance officially requested an increase in the exchange rate to 1450 dinars against the dollar, stressing that the Iraqi reserves of hard currency are still good
“The Ministry of Finance officially requested an increase in the exchange rate to 1450 dinars against the dollar, which led to market turmoil these days,” fearful told Al-Iraqiya TV, noting that “the Central Bank requested the presence of the Minister of Finance to explain the reasons for raising the value of the dollar exchange against the dinar
He added, “The World Bank had asked Iraq in 2014 to raise the dollar exchange rate to 1500 dinars,” affirming that “Iraq’s position on hard currency reserves is still good
The governor of the central bank said, “The high exchange rate of the dollar has affected the Iraqi market and the poor classes will be affected. The Ministry of Finance is responsible for supporting these classes, as it will double the amounts of social welfare
He called on the Ministry of Finance to “enhance customs revenues and accelerate the automation of customs and border crossings to maximize state revenues LINK
Samson: On front page of CBI. If you had the link open from yesterday you will need to close that and open up a new page. I had to do that this end to see the new rate. Their format has changed also – https://cbi.iq/
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