Zig’s Place Chatroom Tuesday AM 3-9-2024
NORV great article the other day..this is big news…
NORV Advisor to the Association of Banks: The Central Bank is following a consistent approach to achieving banking reform
NORV Economy News _ Baghdad
Advisor to the Association of Iraqi Private Banks, Samir Al-Nusairi, explained today, Wednesday, that the Central Bank is following a consistent approach to implementing its strategy for banking reform, with the cooperation and support of the Prime Minister and the government, as the management of the Central Bank of Iraq plans to gradually cancel the window for selling foreign currency during the year 2024, until it leaves it completely.
NORV “the management of the Central Bank of Iraq plans to gradually cancel the window for selling foreign currency during the year 2024, until it leaves it completely.”
NORV this is huge news
NORV Iraq cannot end the auctions unless they have an alternative to the auctions. which means they plan to float the dinar by the end of the year.
NORV The reason if two fold, the auctions provide the method the maintain stability with the dinar to the dollar.
NORV the auctions provide a source of dollars to pay for imports
NORV with either of these, the dinar exchange rate could get out of control
NORV and they would not be able to pay for goods outside Iraq.
NORV That is why they will float the dinar. floating the dinar will give them a new mechanism to maintain the dinar, the CBI will buying and sell blocks of dinar like other central banks do to maintain their currency.
NORV They will also have to use dinar to pay for goods and services which will make the dinar internationally traded
NORV These are all steps that other central banks currently use. so the CBI is trying to become a big boy with the world.
NORV Here is another quote…
NORV “in an effort to enable Iraqi banks to establish and establish solid banking relationships with the global and regional banking sector in order to achieve the sobriety of the Iraqi banking sector and full compliance with international banking standards and their requirements.”
NORV Confirmation of what I just stated above that they want the banks and Iraq to establish relationships around the world with International standards and full compliance which means that means IMF Article XIV.
NORV Another quote…
NORV “He said that the strategy of the Central Bank of Iraq for this year is to gradually cancel the electronic platform in line with its procedures and negotiations with the US Federal Reserve and international banks to regulate foreign trade financing. “
NORV “The advisor to the Iraqi Private Banks Association concluded his speech by saying that the regulatory and reform steps that he is working on this year are to control the exchange rate of the cash dollar in the parallel market and return it to the equilibrium price in the cash trading market.
And to open dealing in local currencies to countries with which Iraq has important trade exchange, such as China and Turkey.
The UAE and India in light of special agreements concluded with them and currently being implemented.”
NORV This seems pretty clear and excellent news. We very well see that Iraqi dinar float on the global market at the end of this year or early next year.
Again it all depends on Iraq to get their decks in order, get the spread of the dinar in line and hold it for 90 days or longer, Etc in order to make that transition but it sounds like they are announcing that that is the plan.
The plan to use the dinar to start paying for things globally which would end the auction and they would need an alternative which would be floating the currency allowing it to rise based on the success and growth of their own economic situation. I think it’s very promising
NORV https://economy-news.net/content.php?id=41434
NORV I don’t think people understand the significance of those statements in that article. For them to want to end the auctions this year, how it ties in with monetary policy. I tried to explain it in my comments but I don’t know if I emphasized it enough. But it definitely is very good news
Zig So NORV are you saying that it’s :Awesome: news???…..lol
Zig Should we be :Joyous: woooowhoooo ??
