Requiring shops to deal in Iraqi dinars

[yota691]

in Iraqi

 

An Iraqi effort to strengthen the local currency and restore citizen confidence in the dinar

 

June 14, 2023

 

سعي عراقي لتعزيز العملة المحلية واستعادة ثقة المواطن بالدينار

 

 

 

 

 

 

 

This episode discussed the Iraqi government's decision to launch the "Campaign to support the Iraqi Dinar". What are the implications of the Ministry of Interior's decision to ban the use of dollars in personal transactions? Will the ministry succeed in raising the value of the Iraqi dinar? What are the expected penalties for dealing in currencies other than the Iraqi dinar? Will the ban contribute to enhancing confidence in the national currency?

[yota691]

Iraqis give up the dollar to protect the dinar
The market requires a lot of measures to maintain the stability of the currency, including preventing smuggling

Jabbar Zidan is an Iraqi journalist @jabarzed  Tuesday, June 27, 2023 11:32
 

The Central Bank Law states that the dinar is the national monetary unit of Iraq (AFP)

  

The Iraqi authorities continue their campaign to urge and motivate merchants and citizens to deal in the Iraqi dinar instead of the US dollar, in addition to monitoring the market to prevent merchants from exploiting fluctuations in the exchange rate. Companies, centers, commercial markets, airlines and others have started dealing in the national currency.

 

Specialists in the Iraqi economic affairs indicated that dealing in the dinar as a unit for payment in commercial transactions will contribute to achieving market stability and support the Iraqi Central Bank’s policy in achieving exchange rate stability, and maintaining the strength of the Iraqi dinar in financial and commercial transactions.

It is noteworthy that the Central Bank of Iraq adopted the official exchange rate during the current year from 145 thousand to 130 thousand dinars for every 100 dollars.

 

Adjust fluctuations in dollar exchange rates

 

In addition, the trader Ahmed Louay Al-Lami said, "The official dealings with governmental and non-governmental agencies and citizens have become in the national currency," stressing that this step contributed to controlling and reducing the fluctuations in the exchange rates of the dollar against the dinar, after it reached 160 thousand dinars compared to 100 US dollars at the beginning of this year. .

 

And he continued, "Today everyone buys and sells in Iraqi dinars , and Iraqi merchants prefer to buy dollars at the official price, according to the instructions and controls set by the Central Bank through the electronic platform, instead of resorting to the parallel market, where the difference is large."

 

And the Governor of the Central Bank, Ali Al-Alaq, confirmed earlier that “packages of instructions for financing in foreign currencies abroad were launched with the launch of the electronic platform,” noting that “the aim of this package is to meet the requests of all the needs of the Iraqi economic sectors, in addition to the private needs of citizens.” travel, treatment and study.

 

Al-Alaq added, in a press statement, that "these packages contributed to organizing a large part of the trade process in Iraq through the entry of various sectors into the official channels of transfer, and mitigated exchange rate fluctuations that reached, with the beginning of the launch of the platform in the market, approximately 160 thousand dinars for every 100 dinars." dollars,” stressing that “there is a significant improvement in the work of the trade financing platform and the cash payment platform, and that proceeding in this framework will contribute to a significant decrease in the exchange rate in the coming days.”

 

Al-Alaq stated that "the insistence of some merchants on dealing in dollars constitutes a factor of instability in the exchange rate, and also exposes the owners of these transactions to legal accountability," stressing that "the failure of small merchants to turn into companies allowed them to enter and finance in informal ways by purchasing currency from the secondary market." , which puts pressure on the exchange rate upwards, and therefore we urge these merchants to set up small companies to enter the window and obtain dollars at the official rate."

 

He pointed out that "the Central Bank's procedures in monitoring the decision to deal in Iraqi dinars instead of the dollar by investment companies and the sale of housing units in investment complexes are carried out through coordination with the National Investment Commission and the office of the Chairman of the Supreme Committee to support the Dinar and law enforcement agencies."

The Central Bank of Iraq criticized what he described as "small traders" because of pressure on the parallel market to buy dollars and deal at the unofficial rate, which led to a rise in foreign currency prices.

 

The assistant general manager of the investment department in the bank, Muhammad Yunus, said earlier that "small merchants who are not entitled to enter the platform are the ones who buy the dollar and deal at the parallel price and press and form a demand for it, while the rest of the commercial companies enter the platform and conduct their transfers normally and at the official price."

 

He added, "The bank is currently adopting a mechanism to improve procedures, facilitate remittance transfers, and dispel all difficulties."

 

In the context, financial expert Mahmoud Dagher said, "The national currency compared to foreign currencies is based on stability and the purchasing power it provides, as the issue is purely economic and has nothing to do with the social and political aspects of the matter."

 

National monetary unit

 

On a related level, economic researcher Bassam Raad said, "Central Bank of Iraq Law No. (56) of 2004 in its article (31) stipulates that the dinar is the national monetary unit of Iraq, and trading goods and services inside Iraq in foreign currencies is a violation of the Central Bank of Iraq law." ".

 

He pointed out that in light of the almost complete absence of domestic production, the Iraqi economy has turned into a net importer of goods and services, which has boosted the demand for foreign currency for import, hedging and speculation purposes.

 

The phenomenon of “dollarization” of commercial transactions in the local markets emerged significantly after 2003, which subjected the general level of prices to market turmoil and caused great pressure on monetary policy and hindered the process of achieving monetary stability.

 

Raad believed that dealing in the Iraqi dinar as a unit for payment in commercial transactions will contribute to achieving market stability and support the central bank's policy in achieving exchange rate stability, in addition to preserving the strength of the Iraqi dinar in financial and commercial transactions.

 

dollarization phenomenon

 

For his part, economic researcher Nabil Jabbar Al-Tamimi said that the change in trade behavior in Iraq is due to two main reasons, the first of which is the benefit that merchants obtain as a result of the exchange process within the Iraqi Central Bank platform that allows merchants to exchange and transfer their money in dollars at the official rate, which is less than the parallel price. This platform has created a kind of preference because it gives merchants additional profit as a result of their purchases and making their financial transfers in Iraqi dinars.

 

He added, "As for the second reason, it is represented in the national security measures that are trying today to prevent or prohibit the use of the dollar in financial transactions through shops and with merchants, as the security forces even intervene in the inspection and disclosure of the private income of some merchants to see if they are dealing in dollars, in addition to monitoring prices,” considering that these two factors contribute significantly to ending the phenomenon of dollarization.

 

local currency rates

 

Meanwhile, the economic researcher, Saleh Lafta, confirmed the presence of some merchants who prefer to deal in the Iraqi dinar, wondering at the same time, "But what is the percentage of these? And what is the volume of their trade and daily dealings compared to those who prefer the dollar?"

 

Lafta stressed that the market requires many measures to maintain the stability of the currency, including preventing speculators in foreign currencies or smuggling them abroad, which causes pressure on the exchange rate, in addition to working to reform the banking system and concluding agreements with countries so that imports are in local currencies.

[Calijim]

It’s about time the gov stepped up and started backing the Dinar.

After all the more the Dinar is worth the less the political class will need to line their pockets. 🤣🤣😀😏

[Danishere4news2]

Awesome news lately. I have not been able to completely keep up on the forum here, but another VERY positive article came out about ATFX launching operations in Iraq. ATFX is a global leader in online trading. This may or may not have been posted on the forum already. None the less, worth mentioning imo

 

[screwball]

This is great news especially after BIDEN made some blunder mentioning Iraq twice in interview! 

[screwball]

This is forex trading  in foreign currencies great article 

Edited June 28, 2023 by screwball

[screwball]

9 hours ago, yota691 said:

packages of instructions for financing in foreign currencies abroad were launched with the launch of the electronic platform,” noting that “the aim of this package is to meet the requests of all the needs of the Iraqi economic sectors, in addition to the private needs of citizens.”

 

[6ly410]

Ministry of Interior: We have inspection campaigns through city clothes for selling in dollars

 

Ministry of Interior: We have inspection campaigns through city clothes for selling in dollars (ultrasawt.com)

05-Jul-2023

THE INTERIOR MINISTRY TALKED ABOUT THE ARRESTS (FACEBOOK)

 

The Interior Ministry said it had carried out arrests and penalties against 50 companies and commercial entities that it said "did not commit to buying and selling in Iraqi dinars."

Brigadier General Hussein al-Tamimi, director of the Anti-Organized Crime Operations Department at the Ministry of Interior, spoke of what he described as "a great commitment by companies, shops and car showrooms to the campaign to support the dinar and stop selling in dollars, saying that "citizens have seen this in their daily dealings."

"A campaign that began with 11785,306 pledges not to sell in dollars and commit to selling in dinars, followed by a second phase at the beginning of June to follow up on those who did not abide by the pledges and hold them accountable, and they were arrested and referred to the judiciary in accordance with articles 240 and 111 of the Iraqi Penal Code No. <>," al-Tamimi said.

"The number of seizures has reached 50 violating companies in Baghdad and the provinces, and they are currently under investigation and our inspection campaigns are carried out through members in civilian clothes, as well as by receiving complaints from citizens, as we have received cases of residential complexes setting a price in dollars, as well as renting units in dollars, and they were dealt with in accordance with the law," al-Tamimi said.

In early June, the Interior Ministry launched a campaign to "support the national currency in the local market and hold violators accountable" and called on citizens to "not trade in foreign currency" because of its "damage to the value of the national currency".

[6ly410]

Ministry of Interior: Legal penalties against 50 companies that did not comply with the sale in dinars

Economic News Agency - Interior: Legal sanctions against 50 companies that did not comply with the sale in dinars (economy-news.net)

 

Economy News - Baghdad

The Ministry of Interior confirmed on Wednesday the implementation of arrests and legal penalties against 50 companies and commercial entities that did not commit to buying and selling in Iraqi dinars, while noting that more than 11,<> pledges were taken to abide by the law and deal only in dinars.

Brigadier General Hussein al-Tamimi, director of the operations department to combat organised crime at the Ministry of Interior, said, "There is a great commitment by companies, shops and car showrooms to the campaign to support the dinar and stop selling in dollars, and citizens have seen this in their daily dealings."

He added, "The campaign began with taking 11785,306 pledges not to sell in dollars and commit to selling in dinars, then followed by a second phase at the beginning of last June to follow up on those who are not committed to the pledges and hold them accountable, and they were arrested and referred to the judiciary in accordance with Articles 240 and 111 of the Iraqi Penal Code No. <>."

He continued, "The number of seizures reached 50 violating companies in Baghdad and the provinces and they are currently under investigation and our inspection campaigns are carried out through members in civilian clothes as well as by receiving complaints from citizens, as we received cases of residential complexes setting a price in dollars as well as renting units in dollars and they were dealt with in accordance with the law."

 

Views 33

Added 2023/07/05 - 5:53 PM

    

[RJG]

Organized crime reveals new secrets about the dollar trade.. "There are detainees"


 

 

Baghdad today - Baghdad

The Director of Organized Crime Operations at the Ministry of Interior, Brigadier General Hussein Al-Tamimi, revealed new secrets related to the trade of foreign currency (the dollar) in the local (parallel) markets.

Al-Tamimi said in a televised statement this evening, "50 companies in the provinces and Baghdad were seized in violation of the Central Bank of Iraq's regulations in selling dollars and foreign currency, and legal measures were taken against them."

He added, "We also caught the owners of malls and residential complexes who charge rents from their occupants in dollars, and they were held accountable according to the law."

Al-Tamimi predicted that "the dollar's exchange rate will decline after accounting for persons trading in currency outside the electronic system of the Central Bank."

It is noteworthy that the local markets are witnessing a rise in the exchange rate of the dollar, as it sometimes reaches 1490 dinars per dollar, while the official price set by the state is 132 thousand dinars per hundred dollars. Economists blame speculators behind the rise in the exchange rate.

 

https://baghdadtoday.news/225443-الجريمة-المنظمة-تكشف-خفايا-جديدة-عن-تجارة-الدولار.-هناك-معتقلون.html

[3n1]

something is so wrong .. its against the law to use usd but its the currency of choice in iraq ..go figure

[yota691]

Fake personalities and impersonation in money transfers outside Iraq

 

July 13, 2023

Baghdad / Obelisk Al-Hadath: Mysterious parties are working to transfer large sums of money in hard currency outside the country through networks specialized in smuggling by exploiting the identities and names of citizens without their knowledge, a case that has been repeated in more than one governorate in recent years, until the Iraqis are afraid of giving copies of Their identities are involved in some financial transactions, including exchange offices and internal money transfers, according to media reports.

 

And the Federal Integrity Commission in Baghdad revealed, in a statement at the end of last week, that “a team from the Najaf Investigation Office managed to seize a member of a network; For money laundering and financial transfers abroad in the names of a number of citizens without their knowledge,” and that the network transferred $68 million outside Iraq through an exchange company that it runs in the name of a citizen without his knowledge.”

 

The statement recounted a story, saying that “the citizen was surprised, during his review of the tax department in Najaf, that there were taxes imposed on him, totaling 13 billion dinars, as a result of the transfers that the network made by exploiting his name,” pointing out that “the network that has been operating since 2012 has committed fraud.” on a number of citizens in this way.”

 

In Iraq, it has become known that there are people and entities that resort to using fake names and other tricks for the purpose of illegal financial transfer, and this is considered a form of money laundering.

 

Money laundering is an illegal process that aims to hide the origin of money that was obtained illegally or illegally, and to make it appear as if it was the result of legitimate legal activities.

 

Fraud in financial transfers through fictitious names for the purpose of money laundering represents a serious threat to the economy and the financial system in Iraq, and it promotes organized crime and contributes to the financing of terrorist activities and illegal trade.

[yota691]

The arrest of 3 suspects in possession of sums of money they intend to smuggle

• Time: 07/29/2023 14:36:22
•  
• Read: 182 times

  

{Umniah: Al-Furat News} Today, Saturday, the Intelligence Agency announced the arrest of three suspects in possession of sums of money that they intend to smuggle into northern Iraq.

A statement by the agency, which was received by {Euphrates News}, stated that "its detachments arrested three suspects in possession of an amount of money amounting to (128,500) thousand dollars, as well as a large amount of Iraqi dinars that they intended to smuggle to northern Iraq."

She added, "In implementation of the directives of the Commander-in-Chief of the Armed Forces and under the direct supervision of the Minister of Interior to prevent currency smuggling, control the currency market, and prevent speculators from manipulating and smuggling currency, the Intelligence Agency has begun to take strict measures to limit currency smuggling by checking arrivals to northern Iraq."

And she added, "The operation resulted in the arrest of three suspects in Diyala who wanted to smuggle an amount of money estimated at (128,500) thousand dollars destined for the northern governorates, while the necessary legal measures were taken against him."

 

 

[yota691]

Thwarting the smuggling of more than 128 thousand dollars to northern Iraq

sweeteners |Today, 14:34 |

    

 

 

 

Baghdad today - Baghdad

Today, Saturday (July 29, 2023), the Federal Intelligence and Investigation Agency at the Ministry of Interior announced that it had thwarted a smuggling operation of more than $128,000 in Diyala Governorate.

The agency stated in a statement received by "Baghdad Today", that "in implementation of the directives of the Commander-in-Chief of the Armed Forces and under the direct supervision of the Minister of Interior to prevent currency smuggling, control the currency market and prevent speculators from manipulating and smuggling currency, the intelligence agency has begun to take strict measures to reduce currency smuggling through Checking arrivals to northern Iraq.

She explained that "three suspects were arrested in Diyala, intending to smuggle an amount of money estimated at 128,500 thousand US dollars, heading to the northern governorates." 

And she indicated that "the necessary legal measures were taken and they were handed over to the duly competent authorities."

[yota691]

Is Iraq able to prevent dealings in dollars to restore the "prestige" of the dinar? - Urgent

economy |Today, 11:12 |

    

 

Baghdad today - Baghdad

 On Saturday (August 26, 2023), the expert in economic affairs, Mustafa Akram Hantoush, confirmed the difficulty of canceling dealing in dollars, especially since Iraq imports everything in hard currency . 

 

Hantoush told "Baghdad Today" that "the government's tendency to sell cars in Iraqi dinars instead of US dollars is very difficult from a practical point of view, despite the government's attempt to impose pledges on exhibition owners and carry out a massive arrest campaign. "

 

He added, "The decision is practically difficult to implement, since the car trade passes through a global market that deals in hard currency, because we do not have the possibility of manufacturing cars inside Iraq, and we only have the Mahmoudiya factory ."

 

He pointed out that "large quantities of cars are imported from abroad and in the currency of the dollar, and therefore they are priced in hard currency, and even if they are priced in dinars, this will be done on the basis of the last price of the dollar, and therefore the citizen will not benefit anything from the process of selling cars in dinars. "

 

And that "the central bank is trying to strengthen the currency by reducing access to the dollar by traders only ."

 

The government is trying to control the continuing rise in the exchange rate of the dollar against the Iraqi dinar in the market, about seven months after its official decision to raise the value of the Iraqi dinar at a price of 1320 per dollar .

 

The government had taken a decision last February to raise the value of the Iraqi dinar against the dollar, after its price at the end of 2020 reached 1,470 dinars per dollar. It was implemented by the previous government to bridge the deficit in expenditures and salaries due to the drop in oil prices in global markets .

 

The dollar is forbidden

 

The Ministry of the Interior prevented merchants and citizens from dealing in dollars in markets and shops, and restricted transactions to Iraqi dinars.

 

It seems that the security solution to the rise in the price of the dollar in the parallel market inside Iraq did not achieve any significant results, but rather complicated the economic scene and led in part to a rise in prices in the Iraqi markets.

 

Economic specialists point out that the market requires many measures to maintain the stability of the currency, most notably preventing smuggling. 

 

 

[6ly410]

Is Iraq able to prevent dealing in dollars to restore the "prestige" of the dinar?- Urgent

Economy | Today, 11:12 | 

    Is Iraq able to prevent dealing in dollars to restore the "prestige" of the dinar?- Urgent » Baghdad News Agency Today (baghdadtoday.news)

 

Baghdad Today - Baghdad

On Saturday (August 26, 2023), economic affairs expert Mustafa Akram Hantoush stressed the difficulty of canceling dealing in the dollar, especially since Iraq imports everything in hard currency.

Hantoush told Baghdad Today that "the government's tendency to sell cars in Iraqi dinars instead of US dollars is very difficult in practice, despite the government's attempt to impose pledges on exhibition owners and carry out a campaign of mass arrests."

"In practice, the decision is difficult to implement, because the car trade passes through a global market that deals in hard currency, as we do not have the possibility to manufacture cars inside Iraq, and we only have the Mahmoudiya factory," he said.

He pointed out that "the import of large quantities of cars is done from abroad and in the currency of the dollar, and therefore they are priced in hard currency, and even if they are priced in dinars, this will be done on the basis of the last price of the dollar, and therefore the citizen will not benefit anything from the process of selling cars in dinars."

"The central bank is trying to strengthen the currency by reducing the access to dollars only by traders," he said.

The government is trying to control the continued rise in the exchange rate of the dollar against the Iraqi dinar in the markets about seven months after its decision to officially raise the value of the Iraqi dinar at 1320 per dollar.

The government took a decision last February to raise the value of the Iraqi dinar against the dollar after its price at the end of 2020, 1470 dinars per dollar, which was implemented by the previous government to fill the deficit in expenses and salaries due to the decline in oil prices in global markets.

Dollar is forbidden

The Ministry of Interior prevented traders and citizens from dealing in dollars in markets and shops, and limited transactions to Iraqi dinars.

It seems that the security solution to the rise in the price of the dollar in the parallel market inside Iraq has not achieved any significant results, but rather complicated the economic scene and led in part to a rise in prices in the Iraqi markets.

Economic specialists point out that the market requires many measures to maintain the stability of the currency, most notably the prevention of

smuggling.

[6ly410]

Dollar.. Iraq's 'global power' controlling harsh years of monetary volatility

Economy | Today, 15:53 | 

    Dollar.. "Global power" controlling harsh years of monetary volatility in Iraq » Baghdad News Agency Today (baghdadtoday.news)

Baghdad Today – Baghdad

Today, Saturday (August 26, 2023), the expert in financial and economic affairs, Nasser Al-Kinani, confirmed that the US dollar has been controlling the Iraqi local market for many years.

Al-Kinani said, to "Baghdad Today", that "the US dollar is the second currency in local dealing in the Iraqi market and this dollar controls the market for many years and not now, and this is what affects the rise and fall of the market on the overall economic situation in Iraq."

He added, "The strength of the dollar globally makes it impose itself to be significantly parallel against the national currency, and for this we find the Iraqi market significantly affected by any fluctuation in exchange rates," noting that "there is a government trend to prevent any dealing in dollars in the local market, but we believe that this is difficult to control."

The possibility of restoring the "prestige" of the dinar

For his part, economic affairs expert Mustafa Akram Hantoush stressed, on Saturday (August 26, 2023), the difficulty of canceling dealing in the dollar, especially since Iraq imports everything in hard currency.

Hantoush told Baghdad Today that "the government's tendency to sell cars in Iraqi dinars instead of US dollars is very difficult in practice, despite the government's attempt to impose pledges on exhibition owners and carry out a campaign of mass arrests."

"In practice, the decision is difficult to implement, because the car trade passes through a global market that deals in hard currency, as we do not have the possibility to manufacture cars inside Iraq, and we only have the Mahmoudiya factory," he said.

He pointed out that "the import of large quantities of cars is done from abroad and in the currency of the dollar, and therefore they are priced in hard currency, and even if they are priced in dinars, this will be done on the basis of the last price of the dollar, and therefore the citizen will not benefit anything from the process of selling cars in dinars."

"The central bank is trying to strengthen the currency by reducing the access to dollars only by traders," he said.

The government is trying to control the continued rise in the exchange rate of the dollar against the Iraqi dinar in the markets about seven months after its decision to officially raise the value of the Iraqi dinar at 1320 per dollar.

The government took a decision last February to raise the value of the Iraqi dinar against the dollar after its price at the end of 2020, 1470 dinars per dollar, which was implemented by the previous government to fill the deficit in expenses and salaries due to the decline in oil prices in global markets.

Dollar is forbidden

The Ministry of Interior prevented traders and citizens from dealing in dollars in markets and shops, and limited transactions to Iraqi dinars.

It seems that the security solution to the rise in the price of the dollar in the parallel market inside Iraq has not achieved any significant results, but rather complicated the economic scene and led in part to a rise in prices in the Iraqi markets.

Economic specialists point out that the market requires many measures to maintain the stability of the currency, most notably the prevention of smuggling.

[screwball]

On 8/27/2023 at 12:44 AM, 6ly410 said:

The possibility of restoring the "prestige" of the dinar

For his part, economic affairs expert Mustafa Akram Hantoush stressed, on Saturday (August 26, 2023)

 

[screwball]

On 8/27/2023 at 12:44 AM, 6ly410 said:

In practice, the decision is difficult to implement, because the car trade passes through a global market that deals in hard currency, as we do not have the possibility to manufacture cars inside Iraq, and we only have the Mahmoudiya factory," he said.

He pointed out that "the import of large quantities of cars is done from abroad and in the currency of the dollar, and therefore they are priced in hard currency, and even if they are priced in dinars, this will be done on the basis of the last price of the dollar, and therefore the citizen will not benefit anything from the process of selling cars in dinars.

Wonder how they will fix this?

[screwball]

On 8/27/2023 at 12:41 AM, 6ly410 said:

It seems that the security solution to the rise in the price of the dollar in the parallel market inside Iraq has not achieved any significant results, but rather complicated the economic scene and led in part to a rise in prices in the Iraqi markets.

😂😂😂1:1.31 will fix this site fast!