After the decision to cancel the platform.. Will we witness a crazy rise in dollar prices in Iraq?

[Mary B]

After the decision to cancel the platform.. Will we witness a crazy rise in dollar prices in Iraq?

economy

2024-11-29 | 03:55

 

 

 

 

 

SumerianNews - Local
In a move that has attracted the attention of economic and financial circles, the Governor of the Central Bank, Ali Al-Alaq, announced the bank’s intention to cancel the electronic platform for financial transfers early next year.

This decision comes as part of a series of reforms aimed at facilitating financial procedures and stimulating the economy, but at the same time it raises questions about its potential impact on the stability of the dinar exchange rate.IraqibeforeDollarAmerican.

 

 

 

The concept of the electronic platform and its role in currency stability

 

The electronic money transfer platform is a mechanism adopted to ensure the regulation of foreign money transfers and to limit manipulation of exchange rates.

 

The platform documents commercial transactions and money transfers by banks and financial companies, ensuring more effective control over hard currency flows in and out of the country.

 

This platform has greatly contributed to narrowing the gap between the exchange rate.OfficialAnd priceThe marketBlack, where it prevented many money laundering and smuggling operations.

 

However, with the decision to cancel this platform, questions are raised about how it will be regulated.The marketAnd transfer management.

 

The impact of deplatforming on the priceDollar

 

1. Increased demand forDollarinThe marketBlack, with the absence of an electronic platform, the demand for it may increase.DollarinThe marketBlack money is the result of the absence of control mechanisms, which leads to higher exchange rates outside official channels.

 

2. Weak confidence in the dinar, as cancelling the platform may weaken confidence in the Iraqi dinar, especially if effective alternatives are not put in place to ensure stability.The marketLack of confidence means that citizens and investors are likely to withdraw their money in dinars and transfer it toDollarAs a safe haven.

 

3. The impact of smuggling and money laundering, as cancelling the platform could cancel strict control over smuggling operations.DollarSmuggling and money laundering practices may expand, increasing demand forDollarSignificantly and affects the central bank's reserves.

 

4. AccreditationThe marketOn supply and demand, with the platform being cancelled, the currency market may become more affected by direct supply and demand. This may lead to extreme fluctuations in the exchange rate, especially in unstable economic and political conditions.

 

Chances of facing a riseDollar

 

1. Activating alternative control tools

 

The government and the central bank can rely on other supervisory tools such as strengthening the role of local banks and imposing strict restrictions on foreign transfers.

 

2. Increase reserves ofDollar

 

The Central Bank may resort to pumping more dollars intoThe marketTo meet demand and maintain price stability.

 

3. Promoting local investments

 

By encouraging investment and reducing dependence on foreign currencies, pressure onDollarAnd strengthen the dinar.

 

4. Cooperation with international organizations

 

The government may cooperate with international institutions such as the International Monetary Fund and the World Bank to develop economic plans that contribute to stability.The market.

 

The decision to cancel the electronic platform for money transfers represents a major challenge to the Iraqi economy, and may have direct effects on the exchange rate.DollarIn front of the dinar. To achieve economic stability in the next phase, it will be necessary to take proactive measures to compensate for the absence of the platform and ensure the continuity of supervision overThe marketFinancial.

 

The balance between facilitating economic procedures and protecting the national currency will be the decisive factor in determining the success of this decision and its effects on citizens and investors.

 

The Governor of the Central Bank, Ali Al-Alaq, confirmed in a statement to the official agency, which was followed by:Sumerian“Next year, we will launch a new approach to expand and enhance citizens’ remittances for various purposes, such as travel, treatment, or any legitimate remittances abroad, just as we did for commercial remittances,” he said, noting that “there are also agreements currently in place with relevant companies such as Visa, Mastercard, MoneyGram, Western Union, to establish a new framework for implementing these operations, which will constitute another shift in controlling these operations.”

 

Al-Alaq added, "Next year or the beginning of next year 2025 will witness the completion of the current procedures, and we seek to provide reassurance, especially with some people's questions about the fate of transfers after the completion of the electronic platform at the end of this year 2024."

 

“There is no sudden transition, but rather a gradual transition that began in 2024, where the banks’ relationship was transferred directly to correspondent banks without passing through other links, and the process has been completed with continued success,” he continued, stressing that “more than 95% of this goal has been achieved, and this process will be completed successfully within the next two weeks,” noting that “there is international anticipation to celebrate this occasion.”

https://www.alsumaria.tv/news/economy/507946/بعد-قرار-الغاء-المنصة-هل-سنشهد-ارتفاعاً-جنونيا-بأسعار-الدولار-في-العرا

[screwball]

Warning and educating the citizens…I love it! Exciting times coming!

[rvmydinar]

Just wonder...how many more years do they need to educate the citizens? 20 years? 50 years? 

[horsesoldier]

Let's get CRAZY!!!!! Beats these recent psychotic breaks I get from 21 years of shenanigans. 🤣

[Laid Back]

 

Central banks use a variety of methods to limit exchange rate manipulation, including:

• Foreign exchange intervention

  A central bank can buy or sell a currency in the foreign exchange market to control exchange rate volatility. For example, a central bank can sell foreign exchange reserves to stabilize markets during a capital outflow. 

   

   
• Adjusting interest rates

  The central bank can increase or decrease the discount rate that banks pay on short-term loans to increase or decrease the liquidity of the banking system. 

   

   
• Altering reserve requirements

  Central banks can adjust reserve requirements to stabilize the exchange value of their currency. 

   

   
• Setting exchange rates

  Central banks can set exchange rates to stabilize the exchange value of their currency. 

   

   
• Introducing taxes or negative interest rates

  Central banks can introduce taxes or negative interest rates to discourage the public from holding a particular currency. 

   

   
• Sterilized intervention

  Central banks can conduct a non-sterilized intervention to influence the exchange rate, then "sterilize" the effects on the monetary base. 

   

  Go end of electronic platform for the dollar

  Go new exchange rate

  Go Purchasing power 

   

   

 

 

[3n1]

cant cancel that platform (auction) fast enough for me .... sick of it 

[BETTYBOOP]

Everything appears to be falling into place 

[screwball]

it was always talked about when  they cancelled auctions and Rv their currency they would see a huge rise in pricing for local goods.......rate adjustment would be needed to compensate for this ie: removing zeros etc....

 

 

Edited Friday at 10:40 PM by screwball

[screwball]

12 hours ago, Mary B said:

The decision to cancel the electronic platform for money transfers represents a major challenge to the Iraqi economy, and may have direct effects on the exchange rate.DollarIn front of the dinar.

 

[screwball]

12 hours ago, Mary B said:

To achieve economic stability in the next phase, it will be necessary to take proactive measures to compensate for the absence of the platform and ensure the continuity of supervision overThe marketFinancial.

and this is why the IMF and world bank are on standby to assist......with loans

[screwball]

12 hours ago, Mary B said:

By encouraging investment and reducing dependence on foreign currencies, pressure onDollarAnd strengthen the dinar.

yep...strong dinar means purchasing power and no more need for USD

Edited Friday at 10:42 PM by screwball

[screwball]

8 hours ago, BETTYBOOP said:

Everything appears to be falling into place 

I think this is primed for Jan RV if not it will be not far off so if we don’t see this in the 1st quarter then might be a much longer wait! I am convinced that what we have all been waiting on is less than 8 weeks away…launching of the new financial system will coincide with ending of the auctions and we should see rate change same time or not long after! 

Edited Saturday at 05:00 AM by screwball

[Dretown39]

21 minutes ago, screwball said:

I think this is primed for Jan RV if not it will be not far off so if we don’t see this in the 1st quarter then might be a much longer wait! I am convinced that what we have all been waiting on is less than 8 weeks away…launching of the new financial system will coincide with ending of the auctions and we should see rate change same time or not long after! 

🙏🙏🤞🤞

[Laid Back]

1 hour ago, screwball said:

I think this is primed for Jan RV if not it will be not far off so if we don’t see this in the 1st quarter then might be a much longer wait! I am convinced that what we have all been waiting on is less than 8 weeks away…launching of the new financial system will coincide with ending of the auctions and we should see rate change same time or not long after! 

I have the same feeling. Hope we are right. Fingers crossed 🤞🏼

“After the decision to cancel the platform.. Will we witness a crazy rise in dollar prices in Iraq”

 

Not if they RV equal or higher than the dollar. will be an easy transition to the Iraqi people and real purchasing power

 

Go 2025

Go Stronger Dinar 👊🏼

Go $1:1

[md11fr8dawg]

22 hours ago, rvmydinar said:

Just wonder...how many more years do they need to educate the citizens? 20 years? 50 years? 

Well they are slow learners!!!

[md11fr8dawg]

I found this interesting!!

 

 

[cranman]

Remove zeroes from currency, note swap and re denomination are not what we want to hear. 

I hope this was explained incorrectly as it sounds like a LOP with a new currency value. 

[BETTYBOOP]

1 hour ago, cranman said:

Remove zeroes from currency, note swap and re denomination are not what we want to hear. 

I hope this was explained incorrectly as it sounds like a LOP with a new currency value. 

There is NO REASON for a lop. They have stability  and more importantly they DO NOT have hyper inflation. They would not be doing the country the e onomatopoeia or the citizens any good by lopping g the currency. They have said the 3 zero notes will co exist. They can't do that if they lop the currency. 

[3n1]

1 hour ago, BETTYBOOP said:

They have said the 3 zero notes will co exist.

 

correct the old and new in circulation for a period of time together that was way back in the early days maybe shabibi era the cbi doesnt put out any currency information anymore to support or contradict what was laid out years ago .

 

3 hours ago, cranman said:

Remove zeroes from currency, note swap and re denomination are not what we want to hear. 

I hope this was explained incorrectly as it sounds like a LOP with a new currency value. 

 

itsa risk speculation for sure ... ready to find out .... no riskit no biscuit 

Edited Saturday at 04:48 PM by 3n1

[rvmydinar]

4 hours ago, cranman said:

Remove zeroes from currency, note swap and re denomination are not what we want to hear. 

I hope this was explained incorrectly as it sounds like a LOP with a new currency value. 

It's better to just wait and see then because noone knows until that really happens. No risk no gain.

[cranman]

4 hours ago, BETTYBOOP said:

There is NO REASON for a lop. They have stability  and more importantly they DO NOT have hyper inflation. They would not be doing the country the e onomatopoeia or the citizens any good by lopping g the currency. They have said the 3 zero notes will co exist. They can't do that if they lop the currency. 

I agree. 

I'm just relaying what the video says.  

They could have lopped years ago.

[BETTYBOOP]

26 minutes ago, cranman said:

I agree. 

I'm just relaying what the video says.  

They could have lopped years ago.

Exactly! If it was a definate LOP Al malaki would not have stopped it happening years ago. We would not be 20 + yrs down the road still waiting for it to happen. 

[screwball]

1.30 is just fine by me.....

[screwball]

8 hours ago, 3n1 said:

tsa risk speculation for sure ... ready to find out .... no riskit no biscuit 

👍