Saturday Midnight Opinions - 2/19/2022

[ronscarpa]

Remember, no one really  knows what will happen, or when. They're simply stating their opinions based on what they perceive to be happening in Iraq... RON 

 

 

*** Militiaman  The need to keep things under wraps for the project [to delete the zeros] is very important. Evidence...not seen doesn’t mean there is none to be seen. It just may mean it is and rightfully so, not to be seen until the time is set for exposure.

 

*** Mnt Goat  Article: "AN ECONOMIST CRITICIZES THE PERSISTENCE OF DOLLAR PRICES AT THEIR CURRENT STATUS"  By Wednesday of this week oil was as high as USD$95.

 

*** Mark  From Iraq there are many articles overnight and this morning coming out of Baghdad. One of the running news stories is they have completed all actions to end Chapter 7…This is important because as far as the Iraqi People are concerned…they have been told all along that once they finish chapter 7- then they get a reinstatement of their old value. This is what is playing on Iraqi news right now…that they have met all obligations in Chapter 7. Paperwork has been completed with all international agencies and they expect to end chapter 7 as soon as their new government is seated. That is what they expect within a few short days.

 

*** Samson  Article: "Rejecting his invitation to Parliament by Al-Sadr...The Minister of Finance sends a letter to the Prime Minister" [The Minister of Finance is not going to Parliament to discuss the exchange rate.]

 

 

 

*** Pimpy  Article: "Baghdad markets are closed due to the decline in dollar exchange rate"  That's interesting. Quote: "The exchange rate of the dollar fell against Iraqi dinar."  That's what you want - the dollar to go down against the dinar.  That means the dinar is gaining on value against the dollar.

 

*** Pimpy  Dinar rate change talk as usual.  Remember Sadr when he campaigned he said he was going to do something about the exchange rate.  Now having said that, calm down.  We don't know what it means.  There's people out there thinking they're going to reinstate the old rate...$3.22...There's nothing out there that proves that.  The only thing right now that we hear about is Sadr wants to change the rate back.  It could be the 1190 dinars for every dollar...but lots of news about this.  Sadr's government is not even formed and already he's putting a smack-down on criminals, corruption and doing something about helping the poor out by changing the rate of the dinar...

 

 

[nannab]

Good morning Mr. Ron 

[Wiljor]

Much appreciated Ron, there sure is a lot of talk about exchange rate and oil and gas 

[G-MANN]

maybe this was all part of the plan, they lowered the exchange rate beforhand so when the time came to raise it no one knows for sure what they are doing , to curb speculation..

[6ly410]

https://shafaq.com/en/Economy/USD-closes-lower-in-Baghdad-s-markets-0-7

USD/IQD exchange rate hits a new low, experts warn of recession

Economy U.S. dollar

2022-02-20 07:18

 

Shafaq News/ The US dollar (USD) exchange rate against the Iraqi dinar (IQD) continues to nosedive in an accelerating manner in Baghdad and Erbil, Shafaq News Agency correspondent reported on Sunday.

Our correspondent said that al-Harithiyah and al-Kifah Central Exchanges are trading the USD at a rate of 144300 IQD to 100.

Over the past two days, the USD shrugged nearly 5,000 IQD of its value in the Iraqi market, 2300 IQD on Sunday alone.

The buying and selling rates in the parallel markets of Baghdad stood at 143500 and 145500 IQD to 100 USD, respectively.

The parallel markets traders deliberately widened the gap between the selling and buying rates to maintain a safe margin for concerns of a further drop in the rate, urging the Central Bank of Iraq (CBI) to adopt a new official rate. 

Financial experts warned of the economic stagnation that might accompany the volatile exchange market by halting trade.

[fioranosportscars]

thank you Ron..

[6ly410]

-

[6ly410]

An authorized source in the Central Bank of Iraq stated that the current exchange rate has achieved many positive results, the most prominent of which was reducing the state’s general budget deficit to achieving a surplus at the end of 2021, and giving local producers and investors an important competitive advantage with imported goods. The exchange rate during short times without a study from the concerned authorities, leads to economic stagnation, confuses the work of local markets, increases speculation on foreign currency, and dissipates the gains made by the current exchange rate. There is a link between this rise and the objectives and results of changing the exchange rate, and that the current rise in oil prices will enable the Iraqi government to properly rebuild the Iraqi economy, and build sufficient financial buffers to face any future fluctuations in international oil prices.

[6ly410]

Press Release Iraq - Baghdad February 20, 2022 Within our bank's aspirations to expand its business and with the participation of more than 150 Saudi companies, the Iraqi Trade Bank is known for its activities and services in the "Made in Saudi Arabia" exhibition in order to build and consolidate working relations and cooperation between the most important commercial, investment and industrial institutions in the Kingdom of Saudi Arabia. A huge forum that brings together the most prominent Saudi industries and expertise to contribute to the delivery of Saudi products and manufactures to global leadership and make them closer to consumers and the business market, as the exhibition contains more than 4,500 products with the participation of about 250 pavilions. Strengthening its regional presence in the region and the external expansion of its banking network to diversify sources of income and revenues, in addition to paving the way for more partnerships around the world to link global markets and commercial markets inside Iraq to serve its customers, meet their needs, and contribute to the development of the Iraqi economy and reconstruction efforts.

[bkeiller]

5 hours ago, G-MANN said:

maybe this was all part of the plan, they lowered the exchange rate beforhand so when the time came to raise it no one knows for sure what they are doing , to curb speculation..

 

I think they lowered the rate discounting their debt by 20+% overnight which created inflation negatively impacting the poor to a greater extent. 

 

This can be a great financial+political move as a larger disenfranchised population is going to be more easily swayed against the corrupt and corruption and, bonus, you own significantly less debt. Classic central banker's 'sleight of hand' playbook move.

 

 

[NWGUY]

I think $3.22 is a very good idea!      But, I think 1 to 1 is the real thing.