Iraqi Council of Ministers issues a package of decisions within the framework of "financial reform"

[screwball]

the bit where he talks about crooked jow and TRUMPS first term, he then mentions hes doing his second term word for word this what is said "And in my second term… which is sort of happening now, but I don’t want the results, right? I don’t want the results of this second term. This second term is a disaster for this Country.”

[HowieC]

CURRENCIES

Reinforcing the Iraqi Dinar: A Shift in Iraq’s Monetary Policy

By Momen Zellmi•2 days ago

 

 

   In a decisive move to strengthen the local currency, the Iraqi Council of Ministers has mandated that all local contracts be denominated in Iraqi dinars. This decision is a notable departure from the previous norm of executing contracts in US dollars. However, an exemption is made for contracts established through external bank-issued “documentary credits.”

The Ministry of Planning has been entrusted with the task of compiling a comprehensive list of former state contracts initially denominated in US dollars. This list will be shared with the Ministry of Finance and the Central Bank of Iraq in an effort to ensure a smooth transition to the new policy.

Limitations on Dollar Coverage

As part of this shift, the Ministry of Planning will also set a maximum monthly limit for the coverage of contracts in US dollars. The Central Bank of Iraq is tasked with guaranteeing coverage at an exchange rate of 1,320 dinars per US dollar. To facilitate monthly payments for these contracts, the allocated funds will be deposited into the Ministry of Finance’s account, adhering to all necessary release controls.

The new policy also introduces a significant change for Iraqi borrowers from government banks who have taken loans in US dollars. These borrowers are now obliged to repay their loans in Iraqi dinars. The Central Bank of Iraq will cover these loans in US dollars, which will subsequently be used to reimburse the lending banks. Notably, this procedure is only applicable to loans issued before the Council’s recent decision.

Strengthening the Iraqi Dinar amid Devaluation

This strategic move comes in response to the devaluation of the Iraqi dinar over the past year, largely attributed to measures taken by the United States in late 2022 to prevent money laundering and the flow of dollars to Iran and Syria. These actions led to a significant drop in the street value of the Iraqi dinar, which fell to nearly 1,750 dinars per US dollar. Through the new policy, the Iraqi government aims to stabilize and strengthen the local currency by increasing its use in internal transactions.

The shift in Iraq’s monetary policy is a significant step towards reinforcing the local economy. By increasing the use of the local currency in internal transactions and setting strict parameters for the use of US dollars, the government is taking active measures to curb the devaluation of the Iraqi dinar. However, the effectiveness of these measures will depend on their implementation and the response of the local and international market.

 

Strengthening the Iraqi Dinar: Shift to Local Currency Contracts (bnn.network)

[tigergorzow]

HowieC Thanks, Come on Iraq make this happen....Give your citizens the "Wealth" they deserve...🤙👍

 

GO RV & RI

[dindu12]

12 hours ago, HowieC said:

The Central Bank of Iraq is tasked with guaranteeing coverage at an exchange rate of 1,320 dinars per US dollar. To facilitate monthly payments for these contracts

 

Well if they are guaranteeing contracts at these rates we are not going to see an increase in value any time soon.

[HowieC]

On 9/30/2023 at 3:23 AM, dindu12 said:

 

Well if they are guaranteeing contracts at these rates we are not going to see an increase in value any time soon.

I take it as they're guaranteeing the VALUE of the existing contracts. Not a super increased value...... 

 

Which to me means they're covering their butt's....we're close.

[Dretown39]

On 9/30/2023 at 10:33 AM, HowieC said:

I take it as they're guaranteeing the VALUE of the existing contracts. Not a super increased value...... 

 

Which to me means they're covering their butt's....we're close.

Agree💯

[screwball]

On 9/30/2023 at 10:33 AM, HowieC said:

I take it as they're guaranteeing the VALUE of the existing contracts. Not a super increased value...... 

 

Which to me means they're covering their butt's....we're close.

100%

[yota691]

Iraqi dinars will be sole currency allowed for financial contracts: Council of Ministers

A maximum monthly limit will also be established by the Ministry of Planning for the coverage of contracts in US dollars, with the Central Bank of Iraq ensuring coverage at an exchange rate of 1,320 dinars per US dollar. 

 Kurdistan 24   2023/09/26 22:55

       

The meeting of the Iraqi Council of Ministers, Sept. 26, 2023. (Photo: INA)

 

 

ERBIL (Kurdistan 24) – The Iraqi Council of Ministers decided on Tuesday that contracts executed within Iraq shall be denominated in Iraqi dinars, except those entered into through external, bank-issued “documentary credits” based on the terms agreed between the parties.

 

A comprehensive list of past state contracts originally denominated in US dollars will be compiled by the Ministry of Planning. The compiled list will be forwarded to the Ministry of Finance and the Central Bank of Iraq.

 

A maximum monthly limit will also be established by the Ministry of Planning for the coverage of contracts in US dollars, with the Central Bank of Iraq ensuring coverage at an exchange rate of 1,320 dinars per US dollar. In order to facilitate monthly payments for these contracts, the funds will be deposited into the Ministry of Finance's account in accordance with the necessary release controls.

 

Iraqi borrowers from government banks who have taken loans in US dollars are now required to repay their loans in Iraqi dinars. These loans will be covered by the Central Bank of Iraq in US dollars, which will then compensate the lending banks. This process applies exclusively to loans issued prior to the issuance of the Council’s decision.

 

During the past year, a devaluation of the Iraqi dinar value took place after measures were taken by the United States in late 2022 to stamp out money laundering and the channeling of dollars to Iran and Syria. At the time, the Iraqi dinar’s street value plunged to an exchange rate of nearly 1,750 dinars per US dollar.