Family Business: I’m a bit confused. We are told that the Iraq government is trying to collect all the dinar they can before they RI. Then they come out saying that the dinar will be stronger than the dollar and to hold on to your dinar. Now we see everyone is selling their dollar and collecting the dinar once again because of the 1300 rate.
IMO it would seem to have been wise to come out with a much higher rate than what they have now. Now we see Iraqi’s ditching the dollar and purchasing the dinar. This puts more dinar in circulation and limits their goal of a higher rate. I hope that is the goal. Its just a head scratcher for me. Appreciate some clarity….. Thanks again.Someone please explain to me how this makes any sense. I’m confused ….. obviously. Thanks
Zeeman: yes i am a bit confused also. 1300 is a good starting point but i have 3 questions that maybe some one can answer.number one is the 1300 still at a program rate? number 2 are the OFAC sanctions lifted or going to be lifted? number3 are they still going to drop the 3 zeros? thanks in advance
Patriots12: Ill take a stab for you and only IMO … Yhey are still under chapter y due to a program rate only… so yes ths is still a program rate and hoepfully part of the process to temporarily assist inflation and start moving towards a real international rate… next move is critical and I hope it is quickly or i will have my doubts IMO…. yes zero’s have to be dropped if this is going to go international and bring in the 3 zero notes… keep in mind dropping the zero’s is really just the math of a new internationally recognized rate, IMO hopefully we are in that process yesterday with the internal move to 1310 all IMO
DeepWoodz: Imo….About ditching the dollar…. If you think the citizens are getting rid of the dollar en mass, who is buying it from them if not other citizens? They are, imo, not wanting to let the dollar go at this point because let’s face it, until they have lower denoms, the same old reasoning stands concerning the 000’s. They aren’t user friendly.
Im just as confused how all this works but seems to me they are stuck in a paradox.
I think the supply of dollars is dwindling. They will be forced to use the 000’s they have remaining in those mattresses. The CBI is a business that will use whatever means necessary to reduce the amount they owe out after the rate change. At least I would.
(Could also push more people to the banks to open them dang accounts as well, digital is much easier to transact if you don’t have dollars.)
Obviously the 1300 is a slap in the face if that’s all you see, but Iraqs financial delegation didn’t have all these meetings with the UST to keep a worse than sanctioned rate. Consider all the things they’ve done and all the things WS and Frank have brought, and that’s just the human side. We know what’s coming. imo
Patriots12: Well said Im with you IMO they have to move fast… they were behind what they had to do and thus the CBI replacement to Alaq… and yes… its confusing same for me… 1300 is a slap in the face they have to go to one 1 currency and quick IMO market is shocked and will continue to be
DeepWoodz: Imo RIGHT! Frank was pushing the cashless society pretty hard recently. I added this while you were posting…..(Could also push more people to the banks to open them dang accounts as well, digital is much easier to transact if you don’t have dollars.) kinda makes sense to me
DoTalkToMe: We all know this new rate is still a BS program rate.
We still await for an RI and REER.
As far as some entity trying to crash Iraq currency and scuttle everything.
I believe it was very likely the case.
At least they caught it on time. But it should never have happened in the first place
KandG: Hopefully this one is just propaganda to hide the real rate. Does nothing for the people IMO
“The Iraqi government revealed, on Wednesday, that the Ministry of Finance has begun to re-prepare the general budget for the year 2023 according to the new exchange rate (130) thousand dinars per 100 dollars”
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Clare: Iraqi Finance requires government banks to adopt the new exchange rate
2/08/2023
Today, Wednesday, the Ministry of Finance directed the two governmental banks, Al-Rafidain and Al-Rashid, to adopt the new exchange rate for the dollar against the Iraqi dinar.
The ministry said in a statement today that the two banks have initiated procedures for selling dollars at the outlets of Baghdad International Airport at a price of (1320) dinars per dollar, in order to enhance the value of the local currency against the dollar by facilitating procedures and achieving stability in exchange rates.
The Ministry confirmed that this measure comes to alleviate the burden of the citizen and in line with the plan of the government, the Ministry of Finance and the Central Bank to reduce the exchange rate as follows:
(1300) dinars per dollar, the purchase price of a dollar from the Ministry of Finance
(1310) dinars per dollar, the price of selling dollars to banks through the electronic platform
(1320) dinars per dollar, the selling price of the dollar from banks and non-bank financial institutions to the final beneficiary.
The Ministry of Finance considered this step as part of the executive plans for the ministry’s curriculum and its policy towards developing the banking and financial sector in Iraq. LINK
Henig: Obelisk Hour: Changing the country’s banking system inaugurates electronic currency handling
Feb. 8, 2023
Baghdad/Obelisk: The obelisk publishes the most prominent interactions of television dialogues on Tuesday.
State of Law member Adel Al-Mana during a televised interview:
– The rise in the dollar exchange rate did not make the Sudanese government idle
– There is a package of decisions that will be issued by the Sudanese government during the next two days that will have great stability in the exchange rate
– The Sudanese government will not respond to any pressure, whether internal or external
– Currency conversion will be electronically through the platform after the decision of the Sudanese
government – The Sudanese government and the Central Bank are working to change the country’s banking system better
Writer and political researcher Jassim Al-Musawi during a televised interview:
– Lavrov carried in his sleeve the file of Russian contracts in Iraq
– Power governs relations and balances between countries – Iran behaves like a superpower because of its strategic alliances Iraq is the oldest country in the region with relations with Russia
– America plays with fire when “gangs” move towards Turkey and Iran
– Russia maintains relations between contradictory countries in the region
– Russia has positive positions and stood against the US occupation of Iraq
– America prevented contracts between Iraq and China when it moved its “tails” – Russia displayed its strength and victories when entering the Ukraine war – Russia was not an occupying power in the region unlike America and Britain
– Moscow seeks strategic relations with the countries of the region
– The restrictions of the US Federal Reserve imposed on Iraq are political
– America seeks to restrict Iraq so that it does not open up large areas in its relations
– The Middle East is the “key to the world”
– Iraq must diversify its economic dealings – Iraq enjoys political stability and a strong government that seriously fights corruption – The Iraqi dinar is the best currency in the region
– America blackmails Iraq with dollars
Alina Suponina, a political adviser at the Center for International Studies, during a televised interview:
– Lavrov’s visit to Baghdad is important and not the first
– Russia was delayed by “returning a little” to Iraq – Russia’s historical presence in Iraq – Russia was relatively absent in Iraq due to “priorities” – Russia does not ask much because it knows the extent of US pressure on countries
– There are “gaps” in the US sanctions regime – Russia has a way to settle differences between Baghdad and Erbil
Spokesman for the Islamic Supreme Council Ali Al-Dafaei during a televised interview:
– We applaud the government’s decision to raise the value of the national currency – The Sudanese government has taken several measures to solve the dollar crisis – The decision to reduce the dollar was a victory for the current government – Citizens’ confidence is the real basis for the success of any government – The previous government and the former central bank governor failed to manage the currency smuggling crisis
– The Sudanese government is serious about putting an end to the issue of currency smuggling
– The government needs parliamentary support to implement the ministerial curriculum
– The people’s meeting with the government will silence negative voices
– The Iraqi people are aware of the popular movements targeting the government – The government is continuing to implement its ministerial
– There must be Iraqi sovereignty over its funds
– The availability of national will restore sovereignty to the Iraqi economy
– The Sudanese government has proven to be a government of words and deeds
– The government’s decisions to reduce the dollar were courageous and timely
– The decision to reduce the dollar is the first step to economic reform
– The government faces a major challenge to find strategic solutions to the crisis of the economy, such as reviving industry
– The step of reducing the dollar is wise, but it is not the final solution
– We need to enact investment laws and protect the national product
Economist Majed Al-Suri during a televised interview:
– The decision to raise the dollar previously was wrong and the refusal of the Central Bank
– The US Federal Reserve imposed the use of the platform on Iraq two years ago
– The financial problem does not lie in the exchange rate, but in market prices
– The greed of traders exacerbated the dollar crisis
– The dollar crisis was exploited by some traders during the current period
– Those affected by government decisions will stand against the Sudanese LINK