We do not think about returning the dollar to its previous price, and the problem began during the era of Saddam - the central bank

[RJG]

We do not think about returning the dollar to its previous price, and the problem began during the era of Saddam - the central bank

 

Why do employees receive money in foreign currency?

We do not think about returning the dollar to its previous price, and the problem began during the era of Saddam - the central bank

 

964

A senior official in the Central Bank of Iraq denied the existence of any intention to restore the dollar exchange rate to its previous state, and stressed that efforts are focused on reducing the gap between the price of the dollar in the parallel market and its official price.

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Muhammad Younis, assistant director of remittances at the Central Bank, said that there are many positives to the measures taken regarding the dollar, indicating that the problem of “dollarization” in Iraq began in 1990.

 

Muhammad Younis - Assistant Director General of the Investments and Remittances Department, in an interview with journalist Karim Hammadi, followed by Network 964 :

The root of the problem is the dollarization of the Iraqi economy after 1990 and its extension until the current period. There are foreign companies operating in Iraq that take their contracts with the state in US dollars and are supposed to receive their dues in dollars and transfer them to their bank accounts abroad. This is one of the drawbacks to the Iraqi economy (which links the dinar to the dollar). .

The intended companies are contracted by “Sub Contract” with Iraqi secondary companies, and their contracts are also in US dollars.

Today we meet with Korean and Japanese companies operating in Iraq and they raise their problems, that their contracts with Iraqi employees are all in dollars, and I ask them: Do you deal in dollars with employees in your countries?

As part of the solution to this problem, we agreed that the banks would send the US dollar to the balances of these companies and their accounts abroad, and then they would bring the amount into Iraq to distribute it to their employees in cash and bear the costs of transportation, shipping, insurance, etc.

(About the dollar coming from abroad) We do not prevent workers from having their transfers dropped into their accounts in dollars, and we do not prevent a transfer from coming to a company and remaining in its account, and banks converting the salary of an employee working in a foreign company into dinars is absolutely not allowed. There is no problem with that. His balance in the bank remains in dollars. Our problem is with cash and withdrawing this balance.

If this person wants to spend it outside Iraq or buy an apartment with it, or be a merchant and buy goods, we have no problem.

We have exceptions. The Chinese companies working in the field of schools and the companies operating in the port of Al-Faw receive their incoming remittances in US dollars to feed the demand for the dollar. The imported dollar has begun to increase the supply, and we hope that it will reduce the price in the near term.

Before the year 2022, the situation was different and everything was in our hands, but today the matter is out of our hands. We have international requirements that if we do not meet them, the transfer will not go through, and if the company does not have an updated “website” (IQ). The transfer will not go through.

The positive aspects of the measures on the dollar: Our reserves are gradually increasing, and our banks have opened accounts in correspondent banks. Chinese channels published a while ago that Iraq began making settlements in the Chinese yuan, and this is an achievement.

We have a delegation that went to Turkey to open channels with Turkish banks in the Turkish lira and open accounts for Iraqi banks, and to organize electronic payments with them, as trade exchange with Turkey is large.

There is no intention to restore the exchange rate as it was before, and we sought to reduce the gap in the exchange rate between the official and the parallel.

If the companies that finance through the window, and they are cooperating with us, and we discover that they are using the black market price, these companies will be held accountable.

The most important point we are currently focusing on is regulating trade, especially with Iran, and we are working diligently to solve this problem and have begun taking steps for that.

https://964media.com/261645/

 

[BETTYBOOP]

That  could be interpreted in a couple of ways! Either they are not returning to the previous $3.22 or thay are not returning to 1450. Confused.com

[3n1]

In all the years i have followed along this is the first time i have read the cbi actually talking about the exchange rate iraq once had before the invasion of Kuwait , maybe something maybe nothing  .... heres hoping   

[screwball]

4 hours ago, RJG said:

The root of the problem is the dollarization of the Iraqi economy after 1990

 

4 hours ago, BETTYBOOP said:

That  could be interpreted in a couple of ways! Either they are not returning to the previous $3.22 or thay are not returning to 1450. Confused.com

Returning to the gold standard? As per their law? Isn’t gold “real value” the pre Saddam rate was around 1.50$

[screwball]

1 hour ago, 3n1 said:

In all the years i have followed along this is the first time i have read the cbi actually talking about the exchange rate iraq once had before the invasion of Kuwait , maybe something maybe nothing  .... heres hoping   

That’s the orginal plan written in coalition (transitional government) documents regarding the plan for the new Iraqi dinar! 

[screwball]

We can internet real value and true value several ways as per law and consitituon which is gold and silver backed or 3.22 or even 1970’s rate of around 1.50$ which gold silver backed! Only real value is gold and silver backed!

[screwball]

4 hours ago, RJG said:

Today we meet with Korean and Japanese companies operating in Iraq and they raise their problems, that their contracts with Iraqi employees are all in dollars, and I ask them: Do you deal in dollars with employees in your countries?

Contract prices…if they are contracted in dollars…remember the rate on the MOP website wasn’t it around $1.13 ?..

[screwball]

they also stated in recent article pre 1970's which was aroung 1.50$ and this was based on gold and siler as per law

[Laid Back]

CBI acknowledged the problem is dollarization.

 

CBI is working on regulating trade and de-dollarization

 

Go CBI

Go New Monetary Policy 

Go de-dollarization

Go Stronger Dinar

[Fairways&Greens]

These articles are rekindling my hope!

[southbeach]

19 minutes ago, Fairways&Greens said:

These articles are rekindling my hope!

Hope the first step towards faith. Good.

[ametad]

Even if they don’t directly address IQD/USD exchange rate, by association it will change. It is only a matter of time working outside the USD building strong international banking relationships with countries like China and Turkey that will provide for a stable diversified balance as the USD inflates. 
 

At some point the global cooperatives will agree that the the United States is not being a good humble steward of global finance. Justified greed will not and cannot stand the test of time. I prefer to justify desire myself, greed is only a mechanism or presented behavior that is not always preferable. 
 

Anyways, I see Iraq removing dependence from the USD. I think this is a good thing for Iraq and the region. A move towards stability, a welcome idea.