The Dollar's ER Is Stabilizing Towards Its Target.

[Luigi1]

Here's some articles of Dinarian interests...

The Dollar's ER Is Stabilizing Towards Its Target.

Treat as rumors.  Not verified.  Your opine.

 

 

TNT via Tishwash:   A New Digital Gateway: Iraq Launches 1st Unified Telecom Transit Route.

ARTICLE:  Iraq has signed a strategic transit agreement with DIL Technology, a Kurdish-licensed firm, to enable seamless data flow across its territory.

 

The deal, finalized on Thursday by the Ministry of Communications, marks the 1st time Iraq presents a unified telecom front to int'l companies.

It streamlines the process of transmitting data through the country, eliminating the need for companies to negotiate separately with federal & Kurdish entities.

 

Hayam Al-Yasiri, the Minister of Communications, said the agreement boosts Iraq’s potential as a secure & efficient alternative to unstable maritime routes, especially amid rising concerns from global telecom providers over regional disruptions.

 

The newly integrated corridor stretches from the southern port of Al-Faw to the northern border at Ibrahim Khalil border crossing, forming a continuous fiber-optic network under centralized oversight.

 

The agreement, according to Al-Yasiri, not only enhances Iraq’s appeal to int'l partners but also supports long-term revenue generation & digital sovereignty.

 

DIL Technology, which maintains infrastructure across Iraq’s border crossings, will serve as the technical facilitator under the federal ministry’s authority.

 

Tishwash:  Improvement Or Temporary Truce? The Dollar's Decline Sparks Hope In the Iraqi Street. 

At a time of volatile market conditions and turmoil in citizens' pockets, the decline in the Dollar ER offers a glimmer of hope amid the darkness of the economic crises that have long exhausted Iraqis.

 

Many families breathed a sigh of relief after seeing prices drop slightly & many merchants felt a sense of reassurance as they reassessed their accounts in hopes of stability.  But behind this sudden decline lie questions that are even bigger than the numbers: Is this a real improvement or merely a temporary truce?

 

Iraqis, tired of the Dollar's rise & fall, are now viewing this decline with caution, watching the small details behind the big decisions.  Amid this atmosphere, economic researcher Mustafa Hantoush, commenting today, Thursday (May 8, 2025), dotted the i's and crossed the t's.

 

Hantoush told Baghdad Today, "Trade with Iran, and with the ongoing talks between Iraq & The US, has become less of a concern.  Now, the CBI has moved to fill up $5,000, which has eased the pressure on the parallel market."

 

He added, "If the monopoly with Iran, the issue of travelers to sanctioned countries & the monopoly of competition between banks are addressed, the ER will return & stabilize at 1,350 Dinars.  But if they are not addressed, prices will remain volatile & the decline will remain temporary."

 

The Dollar ER against the Dinar recorded a new decline in local markets in Iraq today, Thursday (May 8, 2025).

 

A Baghdad Today correspondent said that the Dollar ER reached 142,000 Dinars per $100 on the Al-Kifah and Al-Harithiya stock exchanges, while the selling price was 143,000 Dinars per $100.

 

He pointed out that the purchasing price at exchange offices in local markets in Iraq is 141,000 Dinars for $100.

 

Tishwash:  The Dollar's ER Is Stabilizing Towards Its Target: Adaptation Or Adjustment?

Dr. Haitham Hamid Mutlaq Al-Mansour: It became clear in the period from last April until this May that the Dollar ER in Iraq began to stabilize, declining towards the (official) target level. Therefore, a question may be raised in this context: Is this stability the result of “adaptation” or “adaptation”?

 

To answer this question, we examine the reality of monetary policy measures that strengthened the foreign exchange signal's response to the downward trend, which can be described in the following paragraphs:

1. The CBI's restrictive policy of controlling Dollar sales to banks through transparency measures for transfers of unclear origin aimed at  combating smuggling.  This increased the official supply and eased pressure on the ER.

2. The effectiveness of monetary policy in financing foreign trade through highly rated correspondent banks, within the framework of the UST &  Federal Reserve's conditions.  This is in addition to the trend toward settlement in Euros, Yuan & UAE Dirhams, which has facilitated remittance transactions in our trade with China, Turkey &the UAE.

3. Added to this is the decline in demand for the dollar due to the increased level of banking compliance with int'l conditions on Dollar transfers   to prevent their smuggling to Iran, Syria & Turkey via Iraq.  As a result, suspicious transfers have decreased & illicit demand for Dollars has  declined, contributing to the stability of the Dollar ER.

4. The effectiveness of the CBI’s foreign reserves management to compensate for the decline in the Dollar supply in the parallel market, thus  curbing the ER towards the target.

5. The effectiveness of the inflation targeting policy led to a slowdown in the rise in the general price level (inflation) in Iraq, which limited the  phenomenon of dollarization & raised the real value of the Dinar.

6. Decline in speculation in the parallel market.  Following the regulatory measures, the activity of unlicensed money changers & speculators  who artificially raised prices declined.

7. The effectiveness of financing travelers in Dollars through the official rate using payment cards at reduced costs & at the official ER of 1320  Dinars per Dollar, in addition to collecting cash Dollars through Iraqi airports, in the amount of 3000 Dollars at the official ER for each traveler per month who carries an electronic payment card.

8. External international factors related to a general weakness in purchasing power in global markets & a decline in stocks, which caused a decline in the value of the Dollar & a rise in gold, leading to a decline in demand for it globally & locally.

 

From the above-mentioned reasons, we find that exchange rate stability, despite its importance as a short-term objective of monetary policy, was achieved through “adjustment,” i.e., a short-term price adjustment trend resulting from short- or medium-term measures & treatments for ER fluctuations.  The aim was to restore temporary economic equilibrium without changing the basic structure of the economy & without deep-rooted long-term policies, which reduces the effectiveness of targeting the ER at the long-term target level.

 

Stability could have been achieved as a result of long-term structural “adjustment” by following long-term policies as follows:

1- Decrease in demand for the Dollar due to the availability of agricultural or industrial GDP revenues as a substitute for imports.

2- Improvement in the balance of payments thanks to non-oil agricultural & industrial exports.

3- Structurally reforming the banking system & activating the role of monetary tools, especially the interest rate structure, in a way that restores   the overall balance to its natural state without a split between what is real & what is monetary.

4. Reducing rentierism by diversifying the economy through allocating resources based on foreign trade to generate national surplus value.  The result: more sustainable stability, as the economy becomes less dependent on external factors.

 

If the current balance remains in place, the Dollar supply will still be vulnerable to depletion within a year of imports if oil exports cease due to wars & threats, for example, or if the economy is exposed to similar external shocks.  Furthermore, reliance on reserve management & other stringent measures will not be sufficient to ensure long-term ER stability.

 

In conclusion, while ensuring that the ER stabilizes near its target level is a significant achievement for monetary policy, the absence of structural reforms, economic diversification, improving the business environment, combating corruption & other factors will make any ER stability vulnerable to reversal, particularly with oil price fluctuations, political crises & external shocks.  This underscores the importance of planning for long-term structural adjustment at the macroeconomic policy level.

 

[Luigi1]

Here's another article related to the above...lost, missing & stollen depositors funds will be restored...

 

 

****************:  Rafidain Regarding Depositors' Funds: Fully Insured.

ARTICLE:  Confirmed Rafidain Bank on Monday that its financial position is excellent & that it is committed to fully covering expenses.
 
While noting that the amounts withdrawn by the bank were from its sovereign accounts, it's emphasized that all depositors' funds are fully insured.
 
The Director of the Payments & Reciprocal Accounts Department at the bank, Ahmed Thamer Al-Ghariri, told the official agency, followed by Sumaria News , that "Rafidain Bank has not yet recorded any cases of failure to fulfill financial obligations," indicating that "things are proceeding properly." 

 

He added, "The bank's financial position is excellent," noting the bank's "full commitment to covering customers' expenses & obligations without any obstacles." 

 

He stressed that "the sums withdrawn by the Ministry of Finance are from its own sovereign accounts & have no relation to citizens' deposits," noting that "more than 80% of government department accounts are deposited in Rafidain Bank, which is naturally subject to the policies of the Ministry of Finance,
 
which can use these funds to serve the state's financial policy, leading to a natural increase or decrease in the bank's balance." 

 

He pointed out that "all depositors' funds,  which number more than seven million customers, are fully insured, whether in reserves or other balances," explaining that "the bank is fully committed to its customers with all current & future banking products."