TishWash: The Governor of the Central Bank meets a number of managers of banks and exchange companies
On Sunday, the Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, met with the heads of boards and delegated directors of a number of banks and exchange companies.
According to a statement by the bank, the meeting comes “to define work priorities and directions that serve the Iraqi economy and the banking sector, and work requirements according to the platform mechanism that implements money transfers for the benefit of bank customers according to it, and regulates the foreign trade sector in a legal manner.”
He called on those working in the banking sector to “improve their business and serve their customers in accordance with the directives of the Central Bank in creating a real banking sector,” adding that “the success of banks and non-bank financial institutions is a success for the Central Bank and a contribution to the state’s march to overcome the remarks that this bank made on it.”
Makhaif listened to “a number of remarks and proposals that will contribute to raising the performance of the banking sector in general.” link
Tishwash: Central Bank Governor: The dollar exchange rate crisis is temporary and the monetary situation is at its best
The Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, confirmed that the bank has taken a series of measures that enhance monetary stability and push for the return of exchange rates to normal, while noting that the bank has sufficient reserves until February 2024, “which is a very sufficient period to correct imbalances in the balance.” Payments in case Iraq’s imports are exposed to any imbalances.
“The dollar exchange rate crisis is a temporary crisis resulting from internal and external factors that coincided with the end of the year,” Makhaif said in an interview with “Al-Jazeera Net” and followed by “Al-Iqtisad News”, speaking about the causes of the dollar crisis that Iraq recently witnessed and the measures taken by the bank to reduce it.
He added, “The Iraqi Central Bank has taken a series of measures that enhance monetary stability and push for the return of exchange rates to normal, including: allowing banks to participate in the window for buying and selling foreign currency to be used for external transfer, and working to facilitate procedures for obtaining dollars through banks, and facilitating Financing private sector trade and meeting the demand for foreign transfers by strengthening bank balances with their correspondents in other currencies.
He pointed out that “a series of measures to limit this crisis went to reduce the selling price of the dollar to the beneficiary (the card holder) who uses it while traveling or pays his purchases via the Internet at a price of 1465 dinars per dollar.”
He went on to say, “The monetary situation in Iraq is at its best, and there is no need for that crisis that has caused fears of public opinion, just as the situation in Iraq is much better than that of other countries.”
He spoke about the repercussions of the rise in the reserves of the Central Bank of Iraq and its arrival to more than 97 billion dollars on the Iraqi economy, saying that “there are several repercussions, including: defending the national currency exchange rate against foreign currencies and maintaining coverage of imports for a period of more than 6 months, as he was able to The central bank has built a cover for imports for a period of more than 17 months at the end of the third quarter of 2022, meaning that the central bank has sufficient reserves until February 2024, which is a very sufficient period to correct imbalances in the balance of payments in the event that Iraq’s imports are exposed to any imbalances.
He continued, “The foreign reserves index to money supply in the broad sense is high and reached 81%, which is an indicator that enhances confidence in the Iraqi dinar as a store of value, as well as preserving the value of the national currency by ensuring the stability of the exchange rate as a nominal stabilizer for inflation.”
He added, “There are other benefits that come from increasing the volume of reserves with the central bank, including: an indicator of the strength and flexibility of monetary policy, and the reserves can also contribute to raising the indicators of creditworthiness of Iraq with international rating institutions.”
The Governor of the Central Bank touched on the reasons for issuing a new denomination of the local currency, saying, “The issuance of the new denomination is a procedure to modify the structure of banknotes and introduce an intermediate denomination that facilitates daily transactions, reduce the presence of old versions of currency denominations in circulation, and adopt modern security specifications in designing the denomination.” new technologies to reduce counterfeiting, especially since counterfeiting methods have developed thanks to technological development link
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Walkingstick [via Frank26] Bands on the float will keep it at 1 to 1 with the American dollar but when they lift these bands the IQD will float faster and it will gain more than a 1 to 1 with the USD and all the other currencies in the basket. Pairing 1 to 1 at the onset and then as the economy of Iraq improves and grows and the education get stronger and louder and Iraqi citizens get used to using the new currency then everything will be perfect for the Iraqi citizens.
Paulette Many try to compare Vietnam and Iraq when evaluating the currency. Most of these comparisons are flawed: “…Vietnam has a very low rate and their economy is one of the fastest growing…” This is a totally irrelevant comparison. The rate is not the issue. The issue is IMF Article 8 Compliance. This allows Freedom of Movement of capital in and out of the country. Vietnam has been officially acknowledged to be Article 8 compliant, Iraq has not. Additionally, the CBI has clearly stated their intent to implement the “Delete the Zeros” project. Vietnam has not made any such claims. Bottom line, comparing Iraq and Vietnam due to their low currency value is like comparing Apples to Oranges…
MARKETS A LOOK AHEAD: Fed. To VASTLY INCREASE OFF-BALANCE SHEET ASSET PURCHASES.
Greg Mannarino: 1-8-2023
https://www.youtube.com/watch?v=eWVWGDv0iNk
Central Banks Haven’t Done This Since Before 1971
Heresy Financial: 1-8-2023
Central banks bought more gold in 2022 than they have since 1967 – just 4 years before the last remnant of the gold standard was ended and gold embarked on its biggest bull run in history. They are doing this for a number of reasons, including unstable currencies, inflation, and fear of sanctions from the dollar. It’s only a matter of time before the price of gold goes up significantly again.
https://www.youtube.com/watch?v=l2QYI3Wflzw
