Clare: The “bite” of the sanctions confuses the Iraqi dinar.. An economic report highlights the “collapse” of the currencies of regional countries
2023-01-05
The Emirati newspaper, “The National News”, reviewed the challenges facing the currencies of several countries in the region, including Iraq, and the extent of the impact of the difficulties on the ability of the governments of these countries, politically and financially, to manage the crises facing their countries.
The report of the Emirati newspaper, issued in English, and translated by Shafaq News agency, stated that “a group of economic and geopolitical factors harm several currencies in the Middle East and have bad effects on the economies of their countries, such as Iraq, Egypt, Lebanon and Turkey.”
Among these pressures, the report said, they include a decline in export revenues of basic commodities, a decline in revenues related to exports of non-oil goods and revenues from services from sectors such as tourism, in addition to the occurrence of large losses in remittances due to the disruption of economic activity, in addition to the decline in the prospects for the influx of foreign direct investment. .
After the report pointed out that the monetary reserves of foreign currencies are under great pressure in these countries, and that governments are implementing measures to stop this deterioration, it indicated that there are still many questions about whether the national currencies will be able to recover and when this will be achieved.
Iraqi dinar and “bite” sanctions
The report indicated that the value of the Iraqi dinar declined further against the dollar after new measures taken by the US Federal Reserve, in an attempt to blacklist many Iraqi banks that deal mainly with Iran.
He explained that these measures caused a scarcity in the dollar offered in the Iraqi market, while the official Iraqi News Agency reported that one US dollar was traded in the street at a price of 1580 dinars, compared to the central bank exchange rate of 1470 dinars.
He pointed out that the Central Bank of Iraq held the responsibility for the currency’s decline on “the adoption of mechanisms to protect the banking sector, customers and the financial system, as all foreign trade requirements are fully covered by the official price.”
And the UAE report indicated that the Central Bank of Iraq has taken several measures to help stabilize the currency, including reducing the exchange rate for travelers and ensuring the flow of dollars according to the approved official rate.
The value of the Egyptian pound
As for Egypt, the report stated that the Egyptian pound continued its decline against the dollar, as analysts expect an additional decline in the currency’s value, while Cairo seeks to meet the requirements of the International Monetary Fund regarding defining a flexible mechanism for foreign exchange, as part of an agreement in order to be able to Obtaining a loan of $3 billion.
He noted that “the Egyptian pound suffered, on January 4, its largest decline in one day against the US dollar, as it fell by 8% to 26.50 per dollar.”
The report quoted a memorandum issued by the Cairo-based “Naeem Brokerage” company, which expects further weakness of the pound by another 5%, to reach about 28 pounds to the dollar, adding that the company estimates that the pound has declined in total by 15% in this last round. from currency devaluation.
The Lebanese pound… a disturbing decline
In Lebanon, the report of “The National News” saw that this crisis-stricken country is struggling in light of the depreciation of its currency to record levels in the parallel market, which is prompting the devaluation of its currency, the lira, to 38,000 pounds per dollar on an “exchange platform.”
The report pointed out that the Central Bank of Lebanon blamed the crisis on currency speculation and dollar smuggling operations outside Lebanon.
The report added that the economic crisis has plunged many people into poverty in Lebanon, in light of the acute shortage of necessities, including clean water, electricity and medicines, while government data showed that inflation in Lebanon increased by 189.4% on an annual basis during the 11 months of 2022. Whereas, according to Fitch Solutions, Lebanon is expected to record the second highest inflation rate in the world this year after Sudan.
The report described Lebanon’s economic crisis, according to the World Bank, as one of the worst crises in modern history, while Lebanon failed to implement the necessary structural and financial reforms that would pave the way for it to receive aid worth $3 billion from the International Monetary Fund.
The Israeli shekel… frightening inflation
In Israel, the report stated that the shekel declined by about 12% against the dollar during the year 2022, while there are no indications that it may improve soon, in light of the sharply increasing inflation of 5.3% last November.
After the report pointed out that inflation causes a devaluation of the currency because it reduces the purchasing power of consumers, it quoted the Governor of the Central Bank of Israel, Amir Yaron, as saying that the shekel witnessed “great fluctuation,” especially during the last quarter of 2022.
The Turkish lira.. a continuous decline
Regarding the Turkish lira, the report of “The National News” stated that it lost more than 40% of its value against the dollar during the year 2022, however, the report considered that this constitutes an improvement compared to the 77% that the lira recorded during the year 2021, indicating that it is being Trading in pounds now at about 18.55.
On the other hand, the thorny issue relates to the fact that consumer prices rose 64.3% last December, the highest rate in more than a quarter of a century.
Iranian Toman
As for Iran, the report indicated that the riyal fell to a record level of 44,000 riyals against the dollar on December 28, which represents a decline of 22% in just one month.
He pointed out that Iran is full of political crises at home and abroad, noting that “the decline of the Iranian riyal prompted the appointment of a new head of the Central Bank as an attempt to stop the decline in the currency, as the riyal, which was traded at about 41850 on Thursday, has declined more than ten times since 2018.” “.
The report concluded, saying: “Among the factors affecting the Iranian currency are the continuation of civil unrest, the country’s continued isolation due to relations with Russia, and the diminishing hopes of reviving the 2015 nuclear deal,” from which the United States withdrew in 2018. LINK
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Walkingstick [via Frank26] [Walkingstick’s Iraqi Bank partner/friend update] On Monday we [U.S. CBI satellite bank] have site meeting with the CBI. All my employees will be there too…The CBI wants to talk to us.
Frank26 Somebody said, ‘How is it that Iraq is going to pay me $3 per dinar? How can they afford that?’ First of all they’re filthy rich and second of all they don’t have to just pay you in Iraqi dinars…In order to belong to the WTO all countries use multiple currencies to pay their bills, to buy things, to trade with… (they are being escorted…to be a WTO member) ...To be a WTO member you must have no restrictions on your currency. None whatsoever. Your currency must be fully convertible. Wow. That is the definition of Article VIII...IMO the IQD is soon to float internationally...but right now it’s floating internally and you can see that as the USD exchange rate fluctuates right now…
US FINANCIAL CRISIS, You Have No IDEA How BIG This Is..!! – Peter Schiff
Investor Note: 1-5-2023
In today’s video, Peter Schiff talks about the federal reserve and central banks that caused inflation around the world. According to Peter, inflation is only going to get worse and it’s never going back to the 2% that the fed is trying to achieve.
https://www.youtube.com/watch?v=wxN8tal68scb
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https://www.youtube.com/watch?v=xy1OFCXiH5Q