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A reading of the Central Bank’s decision to allow “importing the dollar”... What does it mean and how?
Economy |Yesterday, 22:22 |
Baghdad today - Baghdad
The instructions issued by the Central Bank of Iraq yesterday, Wednesday (November 8, 2023), regarding allowing banks to import foreign currency from abroad, raised a number of questions and discussions in economic circles about the legality, motives, and goals of this step.
The discussion was topped by some recalling the decision of the State Shura Council in 2011, to infer the lack of legal basis for the decision to import foreign currency, as the State Shura Council issued Resolution 2/2011, in January of the year 2011, based on a request for an opinion that came to the Council by the Office Financial oversight, as the State Shura Council relied on several legal texts, to infer the absence of a legal basis for the Central Bank to grant licenses to import foreign currency from abroad.
To view the decision click here https://www.moj.gov.iq/view.48/
On the other hand, researchers in economic affairs have proven the validity of the Central Bank’s instructions, as
the Central Bank had previously issued instructions to import foreign currency in July of 2011, and they were published in the Al-Waqe’at newspaper at that time,
that is, 6 months after the decision of the State Shura Council,
which makes it a document. Legally enforceable.
https://baghdadtoday.news/uploads/posts/2023-11/1699556842_11.jpg
https://baghdadtoday.news/uploads/posts/2023-11/1699556852_1.jpg
https://baghdadtoday.news/uploads/posts/2023-11/1699556863_12.jpg
A package of questions
On the other hand, observers and specialists raised a number of questions about the Central Bank’s decision,
about the reason for opening the door to importing foreign currency, and
whether this means or indicates that the Central Bank has begun to find difficulty in obtaining the dollar or sufficient quantities of it from the US Federal Reserve, and
thus The central bank has become unable to meet the demand for the dollar because it does not possess it in sufficient quantity.
Among the other questions that were raised:
In what currency will Iraqi banks buy or import the dollar from banks outside the country?
Is it in the Iraqi dinar?
Or in other currencies?
Is it basically correct for the Iraqi dinar to be circulated outside the country, which will lead to a reduction in the monetary supply inside the country?
If the dollar will be purchased in other currencies, where will these banks obtain the other currencies?
How is the dollar priced by other banks?
This means how much will the dollar be worth when purchased from abroad and when transferred to Iraq?
Will its cost be lower or higher than the official price?
https://baghdadtoday.news/235218-قراءة-لقرار-البنك-المركزي-السماح-بـاستيراد-الدولار.-ماذا-يعني-وكيف؟.html
Economy |Yesterday, 22:22 |
Baghdad today - Baghdad
The instructions issued by the Central Bank of Iraq yesterday, Wednesday (November 8, 2023), regarding allowing banks to import foreign currency from abroad, raised a number of questions and discussions in economic circles about the legality, motives, and goals of this step.
The discussion was topped by some recalling the decision of the State Shura Council in 2011, to infer the lack of legal basis for the decision to import foreign currency, as the State Shura Council issued Resolution 2/2011, in January of the year 2011, based on a request for an opinion that came to the Council by the Office Financial oversight, as the State Shura Council relied on several legal texts, to infer the absence of a legal basis for the Central Bank to grant licenses to import foreign currency from abroad.
To view the decision click here https://www.moj.gov.iq/view.48/
On the other hand, researchers in economic affairs have proven the validity of the Central Bank’s instructions, as
the Central Bank had previously issued instructions to import foreign currency in July of 2011, and they were published in the Al-Waqe’at newspaper at that time,
that is, 6 months after the decision of the State Shura Council,
which makes it a document. Legally enforceable.
https://baghdadtoday.news/uploads/posts/2023-11/1699556842_11.jpg
https://baghdadtoday.news/uploads/posts/2023-11/1699556852_1.jpg
https://baghdadtoday.news/uploads/posts/2023-11/1699556863_12.jpg
A package of questions
On the other hand, observers and specialists raised a number of questions about the Central Bank’s decision,
about the reason for opening the door to importing foreign currency, and
whether this means or indicates that the Central Bank has begun to find difficulty in obtaining the dollar or sufficient quantities of it from the US Federal Reserve, and
thus The central bank has become unable to meet the demand for the dollar because it does not possess it in sufficient quantity.
Among the other questions that were raised:
In what currency will Iraqi banks buy or import the dollar from banks outside the country?
Is it in the Iraqi dinar?
Or in other currencies?
Is it basically correct for the Iraqi dinar to be circulated outside the country, which will lead to a reduction in the monetary supply inside the country?
If the dollar will be purchased in other currencies, where will these banks obtain the other currencies?
How is the dollar priced by other banks?
This means how much will the dollar be worth when purchased from abroad and when transferred to Iraq?
Will its cost be lower or higher than the official price?
https://baghdadtoday.news/235218-قراءة-لقرار-البنك-المركزي-السماح-بـاستيراد-الدولار.-ماذا-يعني-وكيف؟.html
