Local money changers stop selling and buying dollars in Iraq

[Theseus]

14 minutes ago, rvmydinar said:

 

 

Normal rate = Previous price = Restore the rate from what it was =.......IQD? The rate has been stable at 1,460, at the CBI site since december 2020 until now. If they are talking about a normal rate , then the normal rate Might be the rate during saddam's era.

You are not going to get back to a Sadam era rate anytime in this lifetime. Again, the rate Saddam had the rate at, even the speculators said the IQD wasn't worth but half of that. The $3+ dollar rate is a pipe dream (as in crack pipe dream) for an RV for the IQD. Not when the world speculated it wasn't worth but 1.65 USD per IQD. 

 

And when they say "previous rate", they mean the rate before it was changed on Dec 19, 2020 which was 1186. Before that it was 1166.

 

During Saddam's era the IQD was not at a "normal rate" rather an "inflated rate" set by Saddam. A "normal rate" during Saddam's era would be around the 1.65 USD exchange rate. And people have shown and even the news articles that have been posted on here (including Shabibi) have said that Iraq could not sustain a $1.65 exchange rate. The very most Iraq could top out at would be no more than $1.81 USD per dinar and that is pushing it to the very extreme. It is why Shabibi initially said a 1.16 IQD to 1 USD exchange rate would be best. Which is roughly 86 cents USD per dinar. Right now it is roughly (if we removed the three zeros first) approximately 68 cents USD per dinar at the CBI exchange rate of 1460.  The current market value exchange rate (given the three zeros removed) would still be only 67.8 cents USD per 1 IQD.

[rvmydinar]

11 minutes ago, Theseus said:

You cut amd pasted too soon. Keep reading further and you will have your answer. It is a 1% per month decline after the rate is set to 1375. Or 10% or more per year. 

 

For example if the dinar is set to 1375 on Dec 19 (taking the 2020 date as an an example) thus it would take one year and three months to get to the previous rate of Dec 2020 (which would be March 2024 at a rate of 1194) and take until December 2024 to get to the rate of 1091 IQD to 1 USD.  

 

1) This is not a big jump rather a slow draw down. 

 

2) If they stick to what they said the draw down would look like a managed float increasing the worth of the dinar. Here is what it would look like:

January 2023 1375 -  0 = 1375
February 2023 1375 - 13.75 = 1361.25
March 2023 1,361.25 - 13.61  = 1,347.64 
April 2023 1,347.64 - 13.48 = 1,334.16 
May 2023 1,334.16 - 13.34 = 1,320.82 
June 2023 1,320.82 - 13.21 = 1,307.61 
July 2023 1,307.61 - 13.08 = 1,294.54 
August 2023 1,294.54 - 12.95 = 1,281.59 
September 2023 1,281.59 - 12.82 = 1,268.77 
October 2023 1,268.77 - 12.69 = 1,256.09 
November 2023 1,256.09 - 12.56 = 1,243.53 
December 2023 1,243.53 - 12.44 = 1,231.09 
January 2024 1,231.09 - 12.31 = 1,218.78 
February 2024 1,218.78 - 12.19 = 1,206.59 
March 2024 1,206.59 - 12.07 = 1,194.53 
April 2024 1,194.53 - 11.95 = 1,182.58 
May 2024 1,182.58 - 11.83 = 1,170.75 
June 2024 1,170.75 - 11.71 = 1,159.05 
July 2024 1,159.05 - 11.59 = 1,147.46 
August 2024 1,147.46 - 11.47 = 1,135.98 
September 2024 1,135.98 - 11.36 = 1,124.62 
October 2024 1,124.62 - 11.25 = 1,113.38 
November 2024 1,113.38 - 11.13 = 1,102.24 
December 2024 1,102.24 - 11.02 = 1,091.22 

 

 

 

 

Thanks. Wow Can't imagine how many more years it is going to take to return to the previous rate $3.22? 10 more years?

[Theseus]

2 minutes ago, rvmydinar said:

Thanks. Wow Can't imagine how many more years it is going to take to return to the previous rate $3.22? 10 more years?

I remember saying 2025 then they added the coins and I pushed it back by 1 year. to 2026 Should they decide to implement this plan it would be within the timeline of the White Papers (implemented in January 2020)  to delete the zeros by 2025 and come out with an exchange rate of 1.09 IQD (just shy of Shabibi's rate) to 1 USD. Giving us a 91.7 cents USD per 1 IQD. Which is a tad bit better than Shabbi's 1.16 IQD to 1 USD. Again given they hold fast to to deleting the three zeros.

[rvmydinar]

4 minutes ago, Theseus said:

You are not going to get back to a Sadam era rate anytime in this lifetime. Again, the rate Saddam had the rate at, even the speculators said the IQD wasn't worth but half of that. The $3+ dollar rate is a pipe dream (as in crack pipe dream) for an RV for the IQD. Not when the world speculated it wasn't worth but 1.65 USD per IQD. 

 

And when they say "previous rate", they mean the rate before it was changed on Dec 19, 2020 which was 1186. Before that it was 1166.

 

During Saddam's era the IQD was not at a "normal rate" rather an "inflated rate" set by Saddam. A "normal rate" during Saddam's era would be around the 1.65 USD exchange rate. And people have shown and even the news articles that have been posted on here (including Shabibi) have said that Iraq could not sustain a $1.65 exchange rate. The very most Iraq could top out at would be no more than $1.81 USD per dinar and that is pushing it to the very extreme. It is why Shabibi initially said a 1.16 IQD to 1 USD exchange rate would be best. Which is roughly 86 cents USD per dinar. Right now it is roughly (if we removed the three zeros first) approximately 68 cents USD per dinar at the CBI exchange rate of 1460.  The current market value exchange rate (given the three zeros removed) would still be only 67.8 cents USD per 1 IQD.

Again thanks for your explanation. I really don't mind the rate between 68 cents to $1.81/ dinar as long as they just implement it ( not just talk talk talk BS and no action ).

[rvmydinar]

7 minutes ago, Theseus said:

I remember saying 2025 then they added the coins and I pushed it back by 1 year. to 2026 Should they decide to implement this plan it would be within the timeline of the White Papers (implemented in January 2020)  to delete the zeros by 2025 and come out with an exchange rate of 1.09 IQD (just shy of Shabibi's rate) to 1 USD. Giving us a 91.7 cents USD per 1 IQD. Which is a tad bit better than Shabbi's 1.16 IQD to 1 USD. Again given they hold fast to to deleting the three zeros.

2026 is still 4 more years to go and hope you are right. But we all know they like talk talk and talk BS only about deleting 3 zeros and increasing dinar against dollar and still nothing gets done for so many years.

[screwball]

2 hours ago, Theseus said:

And people have shown and even the news articles that have been posted on here (including Shabibi) have said that Iraq could not sustain a $1.65 exchange rate.

Sorry this is incorrect shabib has said in video on YouTube that they can sustain a 5$ plus rate, do I think they will come out that rate, no but we will have to wait and see…

[screwball]

It’s not going to happen when all countires reset…is that 2023 yes even 2024 at the latest….as trump said all currencies will be on a level playing field, some will go up so will go down and some will stay the same…we will have to wait to see which way they will go…Iraq has also said that they will return to former value as it was in the 1970’s they said return the Dinar back to the gold standard as it is in the constitution and law. 

[6ly410]

The appearance of Muhammad Saleh to / NINA /: The rise in the price of the dollar is temporary

|Number of readings: 191

The appearance of Muhammad Saleh to / NINA /: The rise in the price of the dollar is temporary (ninanews-com.translate.goog)

Baghdad / NINA / - The financial expert, Mazhar Muhammad Salih, confirmed: The rise in the price of the dollar is temporary, until private banks practice the rules of international compliance in the transfer for the benefit of the beneficiaries.

He told the National Iraqi News Agency / NINA /: that the rises that occurred are a temporary phenomenon dictated by regulatory conditions in the procedures for conducting external transfer requests (submitted by local banks) on foreign currency.

And Saleh added: It was worked some time ago with an advanced (electronic platform) that links the request for transfers by banks with correspondents from international banks and relevant global compliance bodies at the same time.

And he explained: The new procedures have restricted the supply of foreign currency temporarily, which requires a simple adjustment period in order for private banks to practice global compliance rules in transferring for the benefit of beneficiaries from foreign trade financing operations to the private sector.

And between Saleh: It takes some time to reorganize the requests and their consistency with the global requirements for transfer through the digital platform, which has come to represent the new tool in dealing with the window of the Central Bank of Iraq for buying and selling foreign currency.

The market for buying and selling foreign currencies witnessed during the last few period an increase from its usual daily rate, exceeding 150 thousand dinars per hundred dollars./ End 3

[6ly410]

• v

Central Bank: The dollar exchange rate will return to 1460 at the end of this month!

Last Updated: 11 December 2022 - 12:11 PM

Baghdad / Iraq News Network - The Central Bank of Iraq explained, Sunday, the reasons for the rise in the price of the dollar, while determining the date of its return to normal, and the adviser to the Central Bank, Ihsan Al-Yasiri, said that "the exchange rate problem is related to the money supply," noting that "the Central Bank has established a platform for banks to submit their requests to obtain the dollar." Al-Yasiri added that "banks used to submit their applications and come to the Central Bank and get the dollar, but now banks raise their requests on the platform and when they reach the Central Bank, they are checked by the bank, and this process may take some time," pointing out that "some banks have international restrictions and there is no longer any dealing with them by the Central Bank." He stressed that "the exchange rate is still disciplined and will return to normal within two weeks, no more."

[6ly410]

Parliamentary Finance: Banned banks accounted for 40% of the currency auction

Parliamentary Finance: Banned banks used to account for 40% of the currency auction| Information (almaalomah-me.translate.goog)

• Today 12:35

Mustafa Jabbar

Information / Baghdad.. 
Member of the Parliamentary Finance Committee, Mustafa Jabbar Sanad, revealed, on Sunday, that banned banks had acquired about 40 percent of the currency auction and smuggled money outside the country. 
Sanad said in an interview with Al-Maalouma agency, "The high selling prices of the dollar in the markets came due to the exclusion of 4 private Iraqi banks accused of smuggling currency outside Iraq, which are Al-Ansari, the Middle East, Al-Qabid and Asia, following directives and warnings from the US Treasury Department." 
He added that "the rise in the price of the dollar led to a decrease in the volume of sales of the foreign currency sale window from 240 million dollars to 140 million dollars," noting that "the decrease in the volume of sales of the currency sale window, which led to the return of many remittances and banks reduced the purchase of large quantities of dollars due to the decision." The latter has the right to ban 4 private banks. 
Sanad explained, "There are many reasons behind the rise of the dollar during the past days, which is the speculations launched by currency traders, from which they get a lot of money without supervision," stressing that "there are new government steps that will take it upon itself to return the dollar to the natural balance." 
And the Parliamentary Finance Committee had confirmed earlier in an earlier interview with Al-Maaloumah, that the rise in dollar exchange rates is due to the recent Central Bank measures to close outlets and prevent the sale of currency to some private banks, which reduced the presence of hard currency in the market. End / 25 h

[6ly410]

 

[rvmydinar]

34 minutes ago, 6ly410 said:

• Central Bank: The dollar exchange rate will return to 1460 at the end of this month!

Last Updated: 11 December 2022 - 12:11 PM

Wow. Let me get this straight. Did This article come out directly from CBI site, right?. And the rate has been stable at 1,460 since devaluation back in december 2020. How come the CBI say " the dollar exchange rate will return to 1,460 at the end of this month "? What is this supposed to mean? Is there something the CBI haven't told us if there was a rate change happening from devaluation back in december 2020 until now? I don't get it.

[screwball]

2 hours ago, 6ly410 said:

He stressed that "the exchange rate is still disciplined and will return to normal within two weeks, no more."

So two weeks outs at us at the end of dec start of Jan, now if they return to 1460 and drops three zeroes from the exchanger rate what will it be? Remember if it’s to revalue must be start of Jan! 

[screwball]

Remember they are not allowed to use USD in country for transactions! 

[screwball]

2 hours ago, 6ly410 said:

It takes some time to reorganize the requests and their consistency with the global requirements for transfer through the digital platform, which has come to represent the new tool in dealing with the window of the Central Bank of Iraq for buying and selling foreign currency.

This sounds like auctions have or are ending because they are using new tool when buying or dealing in foreign currency - new digital platform 

[screwball]

2 hours ago, 6ly410 said:

It takes some time to reorganize the requests and their consistency with the global requirements for transfer through the digital platform, which has come to represent the new tool in dealing with the window of the Central Bank of Iraq for buying and selling foreign currency.

This sounds like auctions have or are ending because they are using new tool when buying or dealing in foreign currency - new digital platform 

[RJG]

3 hours ago, screwball said:

So two weeks outs at us at the end of dec start of Jan, now if they return to 1460 and drops three zeroes from the exchanger rate what will it be? Remember if it’s to revalue must be start of Jan! 

it would be .685 cents per dinar.  1/1460=.000685.  Drop three zeros and it will be .685

[RJG]

Parliamentary finance is likely to end the dollar scarcity crisis

• Time: 12/10/2022 17:55:22
• Read: 806 times

  {Economic: Al Furat News} The Parliamentary Finance Committee suggested today, Saturday, the date for the end of the dollar scarcity crisis in the local market.

The useful summary.. On important news, you can find it on Al-Furat News channel on Telegram.. To subscribe, click here

Committee member Mustafa Al-Karawi told Al-Furat News that: “The crisis of hard currency scarcity will be resolved within days.” 
He added, “Parliament’s entry into the legislative recess does not mean the cessation of its oversight role, but there will be continuous procedures and follow-ups regarding the restoration of the exchange rate.” 
 For his part, a member of the Labor and Social Affairs Committee, Hussein Arab, today, Saturday, called on the Central Bank and the government to take action to stop speculation in dollar prices. 
Arabs told {Euphrates News}, “Speculation with the exchange rates of the dollar and its rise to this level is unacceptable and undermines the citizen’s confidence in the economic process or the country’s monetary and financial policy.” 
The selling price in the Baghdad Stock Exchange this evening, Saturday, was 150,750 Iraqi dinars per 100 dollars.  
The purchase price was 150,000 dinars for every 100 dollars.

From: Raghad Dahham

https://alforatnews.iq/news/%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A%D8%A9-%D8%A7%D9%84%D9%86%D9%8A%D8%A7%D8%A8%D9%8A%D8%A9-%D8%AA%D8%B1%D8%AC%D8%AD-%D9%85%D9%88%D8%B9%D8%AF-%D8%A5%D9%86%D8%AA%D9%87%D8%A7%D8%A1-%D8%A3%D8%B2%D9%85%D8%A9-%D8%B4%D8%AD%D8%A9-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D8%A7%D8%B1

[RJG]

Kurdistan Finance suspends all expenditures until the beginning of next year

2022-12-11 06:39Font

Twilight News / The Ministry of Finance in the Kurdistan Region announced on Sunday the suspension of all expenditures until the New Year.

The ministry said in a statement received by Shafaq News that “it was decided to stop all expenses that it was spending in the institutions of the Kurdistan Region until the end of the new year.”

“This excludes employees’ salaries and other important expenses such as investment projects until the year 2023,” the statement added.

https://shafaq.com/ar/كوردســتانيات/مالية-كوردستان-توقف-جميع-النفقات-لى-بداية-العام-المقبل

[southbeach]

Come RV, present, future float and Forex.

[Artitech]

68 cents minus the spread puts us somewhere around.50 cents! Wouldn’t that be a Merry Christmas for all of us!!! JMHO 

[RJG]

He expected its rise to 1,600 dinars.. A researcher identifies the reasons for the rise in the dollar in Iraq

 Two days ago

1,207

 

Sales of the Central Bank of Iraq witnessed a great turmoil in the past weeks, after the decline in the sale of the currency by a rate ranging between 40% and 50%, which led to a rise in the exchange rate to more than 1500 dinars per dollar, at a time when the central bank sells one dollar for 1460 dinars.

The economic researcher, Manar Al-Obaidi, explained in an explanation, the mechanism for converting the dollar into the dinar, in response to the reasons for the decline of the Iraqi dinar, and if it will witness a rise again.

Al-Obeidi said, “Iraq sells its oil in dollars and the dollar currency is owned by the United States of America, and through the Central Bank, Iraq also sells dollars to the local market in exchange for an Iraqi dinar owned by the Iraqi state, either through direct sales through exchange shops or through external transfers and credits for import purposes.”

The researcher added, "The production authorities are the destination to which the transferred money is supposed to go, in order to exchange the products that they sell in dollars, which are originally owned by the United States of America."

And Al-Obeidi indicated the American role in determining the parties to whom they want their currency to go and from the parties that do not want to own their currency because they own the dollar, and therefore they define criteria for the parties to which the money must be transferred by knowing the owner of the money and knowing the final beneficiary.

The researcher explained the reason for the existence of a middle station to which the money is transferred, and then these funds are distributed to various countries and companies, because there are no correspondent banks for Iraqi banks in many countries from which Iraq imports.

Al-Obeidi said, “During the last period, the United States of America set additional criteria for being the owner of the dollar, and refused to pass any transfer from Iraq unless it was sure that the amount goes directly to the beneficiaries, and that because many importers do not deal with direct parties in purchasing goods, it could not.” Banks pass their remittances on.”

This led, according to the researcher, to an increase in the demand for dollars for external transfers, meaning that the importer is looking for dollars outside Iraq, not inside it. Which led to a rise in the price of the dollar against the dinar, which is required externally, not internally.”

He added, "This demand, along with the lack of confidence in the Iraqi currency, led to the fear of the public, which led to the transfer of a lot of their money in Iraqi dinars to the dollar, which led to an increase in demand and a lack of supply, which contributed to adding another factor that contributed to the high price of the dollar."

Al-Obaidi justified all importers - and accordingly - their attempts to work on the behavior of banking outlets and to adopt banking dealings with various suppliers instead of adopting the middleman.

He said, "It may take a few months until the papers are rearranged and the mechanisms are arranged, and the exchange rate will return to its normal state, but we may witness a rise in the dollar against the dinar during the coming period."

And Al-Obeidi indicated that “the problem of lack of dollar sales will lead to a scarcity of the dinar at the central bank, which requires it to increase the cash currency issued to compensate for the demand for the dinar from the Iraqi government, which may lead to an increase in inflation rates.”

The researcher considered that the current dinar crisis is a temporary issue that may need three months or less, and he is optimistic that the exchange rate will return to its normal position once the transfer mechanisms are modified in accordance with the requirements of the US Treasury.

Al-Obaidi concluded by saying, stressing his optimism that “the financial situation of Iraq is good, and the banking sector is able to adjust its mechanisms, and there is a financial abundance that may be slightly affected by an expected drop in oil prices and the rise in the operating bill of the Iraqi government, and we will witness close rises of the dollar against the dinar during the coming period that may exceed the barrier of 1600 dinars, and it has We are witnessing a scarcity of some imported materials and a rise in their prices as a result of the inability of importers to import, but things will return to normal within the next three months or less.”

https://takadum-news.com/archives/136138

[rvmydinar]

33 minutes ago, RJG said:

things will return to normal within the next three months or less.”

Does that mean the rate will return to normal by March 2023? Let's just wait and see what the real rate will be then ( hopefully one digit number ).

[pokerplayer]

57 minutes ago, Artitech said:

68 cents minus the spread puts us somewhere around.50 cents! Wouldn’t that be a Merry Christmas for all of us!!! JMHO 

 

You know it my friend  !

 

✈️💵🍾🌴🤑🙏🤞

 

pp

[6ly410]

Iraq news now

A government advisor confirms that the rise in the exchange rate of the dollar is “temporary” and identifies the reasons – urgent

Posted 15 seconds ago

 

A government advisor confirms that the rise in the exchange rate of the dollar is "temporary" and identifies the reasons (iraqakhbar-com.translate.goog)

News Source /Baghdad Today

 

News source /

Baghdad Today - Baghdad

The financial and economic advisor in the Iraqi government, Mazhar Muhammad Saleh, commented on Sunday on the continued rise in the dollar exchange rate in the local market.

Saleh told Baghdad Today that "the increases are a temporary phenomenon dictated by regulatory conditions in the procedures for managing requests for external transfer (submitted by local banks) on foreign currency, and an advanced electronic platform linking the request for transfers by banks with correspondents from international banks and relevant global compliance bodies at the same time.”

"The new measures have led to a temporary discipline of the supply of foreign currency, which requires a simple period of adjustment until private banks practice global compliance rules in transferring for the benefit of foreign trade beneficiaries and financing operations for the private sector," he added.

The financial and economic advisor in the Iraqi government confirmed that "it takes some time to reorganize the requests and their consistency with the global requirements for transfer through the digital platform, which has come to represent the new tool in dealing with the window of the Central Bank of Iraq for buying and selling foreign currency."