The USD Will Not Disappear In Iraq.

[Luigi1]

Here's three articles of Dinarian interests...

Stern controls over the USD are being implemented in Iraq.

This is to counter corruption & illegal trade with US sanctioned nations.

The USD will still be used in Iraq but it will be tightly controlled.

Treat as rumors.  Not verified.  Your opine.

 

 

FROM OTHER SOURCES:     Will The Dollar Disappear In Iraq?  

ARTICLE:  For eight months, the CBI has been unable to stop the rampage of the Dollar against the Dinar in the parallel market.  This is offset by the absence of the ability to meet the Dollar demands that cover foreign trade in light of the expansion of Iraq’s import list & its limitation to exporting oil only.

 

The electronic platform recently introduced by the CBI was not able to restore stability to the parallel market & reduce the gap between the official price & the parallel price, as most transfers still take place outside that platform, especially with countries that are witnessing US sanctions such as Iran, Syria & entities in Turkey.  

 

With this landscape full of uncertainty, Iraq intends to completely ban transactions in US Dollars starting from January 2024, under the pretext of reducing the misuse of hard currencies, financial crimes & currency smuggling abroad.  

 

From my point of view, the timing of this measure is not correct, in light of the absence of solutions to the problems facing the parallel markets for foreign currency, as this portends an exacerbation of the cash or cash crisis in Iraq, and there is a possibility that matters will reach a severe shortage in the Iraqi monetary mass, which means resorting to… The CBI will print money & the consequences will be dire, most notably the monetary inflation that a number of countries in the region are currently witnessing, such as Iran, Turkey & Lebanon.  

 

Here I call on the CBI to work diligently towards adopting a new currency to replace the Dollar, such as the Euro, for example, the Chinese yuan, or the Emirati dirham.  This is not easy, but it is not impossible, while working to use gold as an agreed-upon unit for evaluating goods & services.

 

This trend would reduce the pressure on the Dollar in the parallel market & would also be a fatal blow to speculators in the parallel markets, in addition to preserving trade with countries that are currently witnessing economic sanctions by the UST Department & the US Federal Bank.   Today, the CBI has a historic opportunity to address and manage the Dollar ER & arrange the parallel market securities, in a practical & decisive manner & work to determine priorities in the monetary market with the aim of improving the stability of the foreign currency.

 

This is matched by a serious effort to push private banks towards providing the best services to customers & creating a spirit of competition between them. In order to attract the hoarded cash mass outside the Iraqi banking system. 

 

 

 

FROM OTHER SOURCES.     Strict Measures Regarding The Dollar In Kurdistan Following A Decision Related To The Iraqi Dinar:

ARTICLE:  Kurdistan Customs Director Samal Abdul Rahman revealed that strict measures have been taken for the purpose of preventing the smuggling of Dollars & hard currency from the region.   Abdul Rahman told “Baghdad Today”, “The decision to collect fees in Iraqi Dinars at border crossings is an important decision aimed at preserving the hard currency & also strengthening the Iraqi Dinar.”  

 

He added, “This measure is very important, and a good step aimed at strengthening the dinar, and the measures taken by the Customs Directorate at all ports and airports are deterrent measures for the purpose of preventing smuggling.”  

 

 

 

FROM OTHER SOURCES:        The Kurdistan Regional Gov To Collect Taxes, Fees At Border Crossings In IQD, Instead Of The USD.

ARTICLE:  The Department of Media and Information stated in a statement, “Based on a decision issued by the Kurdistan Region Council of Ministers, customs duties and taxes at border crossings and customs points will be collected in Iraqi Dinars instead of Dollars,” indicating that “any party that does not adhere to this decision will be subject to punishment.”  

 

She stressed that “all ministries & relevant authorities will be bound by this decision & in the event of any violation occurring at one of the border crossings or customs points, the violator will be subject to punishment.”  

 

Experts point out that some of these cash sales allocated to travelers leak into the black market and are purchased by merchants to finance their trade with countries banned from the Dollar, led by Iran, from which Iraq’s annual import volume amounts to approximately 10 billion Dollars.  

 

[Luigi1]

Here's another article of Dinarian interests....The Iraq economy stumbles...

 

 

Sandy Ingram:     The Iraq Economy Stumbles.

Article:  According to the IMF is not Good, Iraq Says Differently.”   What the IMF is saying is Iraq’s economy forecast is leaning towards a negative because countries with currencies pegged to the USD, except Iraq’s central bank, have followed the US fed’s footsteps & adjusting the interest rates accordingly.   In other words: Iraq did not follow in the footsteps of the Federal Reserve & as a result the IMF sees Iraq’s inflation rate at or around 9% in 2024 rather than at 3.5% the the Iraqi minister of planning announced.   The 5.5% difference is enough to be concerned about.