The rise in the value of the dollar and an expected economic "crisis". Disclosure of the consequences of banning 14 Iraqi banks

[6ly410]

The rise in the value of the dollar and an expected economic "crisis". Disclosure of the consequences of banning 14 Iraqi banks

Economy / Translated Reports | Today, 22:04 | 

The rise in the value of the dollar and an expected economic "crisis". Disclosure of the consequences of banning 14 Iraqi banks » Baghdad News Agency Today (baghdadtoday.news)

 

Baghdad Today - Translation

Today, Wednesday (July 19, 2023), the Wall Street Journal revealed expectations of an economic crisis and an expected significant rise in the dollar exchange rate in Iraq, against the backdrop of the US Federal Reserve's decision to ban 14 Iraqi banks from dealing in dollars, noting that these banks are suspected of money laundering.

The newspaper explained in a report translated by (Baghdad Today), that "the previous decision of the US Central Bank to ban 4 Iraqi banks from accessing the US dollar during November last year, led to an economic crisis that lasted for three months, during which the Iraqi dinar witnessed a collapse against the dollar," noting that "the recent decision to ban fourteen Iraqi banks will have multiplier effects," as described.

"According to a senior U.S. official who declined to be identified, the U.S. Federal Reserve has strong grounds to suspect that the banks imposed by the embargo are engaged in illegal business and money laundering operations that benefit individuals and entities subject to economic sanctions," she said.

The official also explained that "the US Federal Reserve's monitoring of the activities of banned banks during the past months revealed illegal activities, including multiple dollar transfers to European countries and banks in order to avoid federal supervision, in addition to issuing many pre-loading cards in a way that indicates attempts to smuggle US currency from Iraq," according to his description.

The newspaper also confirmed that the US Federal Reserve's decision represents a "death sentence" on Iraqi banks, explaining that most of the banking sectors in Iraq operate using the currency auction, which means that the decision to ban them will lead to the loss of their only method of work.

The newspaper's report also indicated that the previous Federal Reserve decision to ban four banks led to a decrease in dollar circulation inside Iraq by 80%, expecting that the new decision will lead to an "additional crisis" whose effects will intensify during the coming period as a result of what it described as "the inability of Iraqi banks to use the American system, which will eventually lead to the imposition of other sanctions on more Iraqi banks and push the Iraqi economy to the brink of the abyss."

However, this was denied by the US official, who stressed that the sanctions will lead to "an increase in real transfers instead of money laundering and thus protect the Iraqi economy from the negative effects of sanctions," as he described.

The newspaper concluded its report by stressing that "the direct consequences of the US Federal Reserve's decision "the deterioration of diplomatic relations between Baghdad and Washington as a result of the expected negative effects on the Iraqi economy due to the decision."

[BETTYBOOP]

When will these fools realise that the us and others will not tolerate this level of corruption. It is as if they are holding themselves up from moving forward

[horsesoldier]

1 hour ago, BETTYBOOP said:

When will these fools realise that the us and others will not tolerate this level of corruption. It is as if they are holding themselves up from moving forward

Right you are....the corruption is absolute and if they could get away with it, they would never move forward 

[WheresmyRV?]

Sounds like they still have a ways to go with putting a cap on Iran and corruption.

[jake21]

Sadly, yes. A looooong way to go

[horsesoldier]

2 hours ago, WheresmyRV? said:

Sounds like they still have a ways to go with putting a cap on Iran and corruption.

Truthfully and I'm not joking nor do I want to throw shade here, I don't expect a RI or RV in '23 or even '24...IMHO.

I want to be absolutely wrong on this. I would be pleased as hell to be proven wrong but I see these corrupt politicians in absolute control. 

We've been strung along, teased, had the "carrot dangled" in front of us so many times for 20 years I still feel we're being played again.

We'll see soon enough which way this is going to go down.

All the best...

[Dretown39]

16 minutes ago, horsesoldier said:

Truthfully and I'm not joking nor do I want to throw shade here, I don't expect a RI or RV in '23 or even '24...IMHO.

I want to be absolutely wrong on this. I would be pleased as hell to be proven wrong but I see these corrupt politicians in absolute control. 

We've been strung along, teased, had the "carrot dangled" in front of us so many times for 20 years I still feel we're being played again.

We'll see soon enough which way this is going to go down.

All the best...

I understand how you feel. One of the things that make me feel that they can't keep the currency low too much longer is because they only want to deal with Dinar in business transactions. The citizens already were protesting earlier this year & they calmed them down for a minute with the "hold on to ya dinars because it's stronger than the dollar" message. I do believe the citizens would tear parts of Iraq to pieces if they don't curb the inflation by giving them purchasing power. Just my 2 cents

[HowieC]

 

 

Citizens in Mosul call on the central bank and the government to solve the exchange rate problem

Wednesday 19 , July 2023 11:03 | Economy

 

Mosul (NINA) - Citizens from Mosul called on the central bank and the government to take urgent measures to address the problem of the continuous rise in the exchange rates of the dollar, which has reached in the markets about 150,<> dinars per hundred dollars.

One of the most prominent merchants in the city of Mosul, Hassan Klawi, said in a statement to the Iraqi National News Agency (Nina) that "the continued rise in this way affects the economic situation and markets in Mosul and all of Iraq."

He added that "the markets of Mosul are witnessing a very large recession due to the high prices of food products, which was a major reason for the rise in the price of the dollar, which negatively affected the Mosul street, calling on the Central Bank to intervene quickly to solve the crisis of the rise in the price of the dollar, which negatively affected citizens due to the deterioration of the economic conditions in Iraq in general, especially Nineveh."

Citizen Uday Al-Badrani stressed that "this increase has led to a deterioration in the purchasing power of citizens and an increase in the cost of living.

Prices have been significantly affected, he said, as prices of basic commodities, foodstuffs and basic necessities have risen. Various economic sectors, such as industry, agriculture and trade, have also been affected by the high import costs and the decline in investments, which led to the deterioration of the economic situation and increased unemployment and poverty rates,"

he said, calling on the Central Bank to intervene quickly in order to end the violations of these high prices in light of this difficult economic situation. /End

 

Citizens in Mosul call on the central bank and the government to solve the exchange rate problem (ninanews.com)

[horsesoldier]

The continued foot dragging & sand bagging on this issue is disgraceful. People crying out for action still appears to be falling in deaf ears.

 

[screwball]

46 minutes ago, HowieC said:

 

 

Citizens in Mosul call on the central bank and the government to solve the exchange rate problem

Wednesday 19 , July 2023 11:03 | Economy

 

Mosul (NINA) - Citizens from Mosul called on the central bank and the government to take urgent measures to address the problem of the continuous rise in the exchange rates of the dollar, which has reached in the markets about 150,<> dinars per hundred dollars.

One of the most prominent merchants in the city of Mosul, Hassan Klawi, said in a statement to the Iraqi National News Agency (Nina) that "the continued rise in this way affects the economic situation and markets in Mosul and all of Iraq."

He added that "the markets of Mosul are witnessing a very large recession due to the high prices of food products, which was a major reason for the rise in the price of the dollar, which negatively affected the Mosul street, calling on the Central Bank to intervene quickly to solve the crisis of the rise in the price of the dollar, which negatively affected citizens due to the deterioration of the economic conditions in Iraq in general, especially Nineveh."

Citizen Uday Al-Badrani stressed that "this increase has led to a deterioration in the purchasing power of citizens and an increase in the cost of living.

Prices have been significantly affected, he said, as prices of basic commodities, foodstuffs and basic necessities have risen. Various economic sectors, such as industry, agriculture and trade, have also been affected by the high import costs and the decline in investments, which led to the deterioration of the economic situation and increased unemployment and poverty rates,"

he said, calling on the Central Bank to intervene quickly in order to end the violations of these high prices in light of this difficult economic situation. /End

 

Citizens in Mosul call on the central bank and the government to solve the exchange rate problem (ninanews.com)

its all about the timing this comes when they meet next week of this week to discuss exchange rate..

[NMP2017]

10 hours ago, WheresmyRV? said:

Sounds like they still have a ways to go with putting a cap on Iran and corruption.

won't happen unless they get a "benevolent dictator" with an iron fist running the country...

[sq2]

Passing the HCL will help curb corruption, and hopefully bolster their efforts! The citizens raising hell won't hurt either! Could happen beginning next year, these new sanctions are going to force them to do something!

[haymon]

I wish Warka would be in the news one way or the other...

[horsesoldier]

I want one thing...get their Poop in a group and pull the trigger on the IQD !!!!

IS THAT SO MUCH TO ASK AFTER 20 FLIPPING TEARS AND YEARS OF  ???????