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To rein in the dollar...the central bank “confuses” dinar accounts
July 16, 2024
Baghdad/Iraq Observer
The exchange rates of the dollar against the dinar rose today, Tuesday, on the main stock exchange in the capital, Baghdad.
Dollar prices on the Kifah and Harithiya stock exchanges recorded 149,000 dinars for every 100 dollars.
Prices in exchange shops in Baghdad markets also witnessed an increase, as the selling price reached 150,250 dinars, while the purchasing price reached 148,250 dinars for every 100 dollars.
In turn, the Central Bank of Iraq announced a new mechanism for travelers to receive foreign currency “dollars,” which will be exclusively through corporate and bank outlets at international airports, stressing that the goal of the new mechanism that will come into effect on July 14 is for the dollar to reach the real traveler.
The bank stated: “It facilitates proper transactions, as well as facilitating travelers’ access to the dollar faster.”
More than one share
It is noteworthy that the Central Bank allowed exchange companies to receive more than one share during the week in order to fully respond to travelers’ requests.
In turn, economists commented on the Central Bank’s decision by saying:
“The Central Bank’s announcement of stopping remittances using the Chinese currency and using the dollar, in addition to the continuing demand to deal with Iran in the dollar, and
this matter will lead to great momentum on the dollar.”
While they warned against linking the dollar to Baghdad International Airport, because it will exacerbate the rise of the dollar, and we will witness confusion in the local markets that are suffering from stagnation at the present time.
They pointed out that the rise in the dollar exchange rates remains dependent on the behavior of the Central Bank and the extent of its responses to it, and the
recent rise of the dollar came after the decision of the Central Bank of Iraq to transfer the operations of travelers obtaining the dollar exclusively through Baghdad Airport. According to a report,
“Airports are not prepared to receive this large number of companies;
There are many companies that sell the dollar, and if they are limited to only 6 offices,
it will be useless and the citizen will not be able to obtain the dollar, and previous experiences confirm this.
Where is the central bank spokesman?
Observers were surprised by the lack of an official spokesman despite his presence in all state ministries.
This is one of the problems with the Central Bank, which announced the procedures and results of the visits conducted by the governor to Washington.
All statements are confusing and confused due to the lack of accuracy and correct official information.”
In this context, the Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Saleh, confirms:
“The exchange rate in the parallel market does not affect the stability of the general level of prices. While he pointed out that the
parallel exchange market has begun to affect a narrow economic scope, he pointed out that the
stability of the dinar’s exchange rate against... The dollar is real and solid.”
Two factors, internal and external
Saleh said in a statement followed by the Iraq Observer Agency:
“There is an international factor that imposes controls on what is called banking compliance in financing the demand for dollars from our country’s international bank accounts in foreign currency, and
there is also an internal factor that benefits from the actions and pressure of the external factor in order to obtain profitable gains.” “Determined or emergency, especially in cash dollar transactions.” He points out that:
“The dominance of the fixed exchange rate system in Iraq, which is based on a base of international reserves, is the highest in the history of Iraq and its monetary policy, as
the foreign currency covers a percentage of more than 100 percent of the total currency currently exported.” He continued:
“Through the strength of the official central exchange market, the exchange rate of the dollar to the dinar in the parallel market in our country does not constitute any relative importance in affecting the stability of the general level of prices,
which have become stable in their components and trends as a result of the influence of the official exchange rate factor that prevails and currently dominates the exchange rate.” Financing “import” foreign trade, amounting to 1,320 dinars per dollar, is responsible for financing 90 percent of Iraq’s foreign trade. He stated,
“The stability of the official exchange rate leads to stability in the stable external value of the dinar, which is embodied in the state of stability in the relative prices of goods and services, as annual inflation in our country does not exceed only 3 percent, and
this is what was indicated in the reports of multilateral international financial and economic organizations.”
The strength of foreign reserves
Saleh added, “In light of the strength of the foreign reserves supporting the Iraqi dinar, whose value as liquid foreign assets exceeds $100 billion, the official exchange market, as a general trend, will remain dominant in containing any noise with ambiguous information that is affected by the parallel exchange market in short periods, due to political events.” “International or regional emergency.” He stressed,
“After the decline of the phenomenon of dollarization in internal transactions, especially in contracts, obligations and payments within the country since last year and its legal ban, the parallel exchange market has begun to have its general effects only on a narrow economic scope of prohibited transactions, practiced by informal markets and at a rate of 10 percent of Total supply and demand transactions for the currency.” He pointed out,
“The stability of the exchange rate of the dinar to the dollar that the country is witnessing, even in the secondary markets, is a real and well-established stability. Rather,
it is derived from the strength of the influence of the price and quantitative factors of the monetary and financial policies and their integration in imposing overall price stability in the country, and containing the inflationary expectations that it was causing.” Parallel exchange market forces over the past years.”
https://observeriraq.net/لكبح-جماح-الدولار-البنك-المركزي-يربك/
July 16, 2024
Baghdad/Iraq Observer
The exchange rates of the dollar against the dinar rose today, Tuesday, on the main stock exchange in the capital, Baghdad.
Dollar prices on the Kifah and Harithiya stock exchanges recorded 149,000 dinars for every 100 dollars.
Prices in exchange shops in Baghdad markets also witnessed an increase, as the selling price reached 150,250 dinars, while the purchasing price reached 148,250 dinars for every 100 dollars.
In turn, the Central Bank of Iraq announced a new mechanism for travelers to receive foreign currency “dollars,” which will be exclusively through corporate and bank outlets at international airports, stressing that the goal of the new mechanism that will come into effect on July 14 is for the dollar to reach the real traveler.
The bank stated: “It facilitates proper transactions, as well as facilitating travelers’ access to the dollar faster.”
More than one share
It is noteworthy that the Central Bank allowed exchange companies to receive more than one share during the week in order to fully respond to travelers’ requests.
In turn, economists commented on the Central Bank’s decision by saying:
“The Central Bank’s announcement of stopping remittances using the Chinese currency and using the dollar, in addition to the continuing demand to deal with Iran in the dollar, and
this matter will lead to great momentum on the dollar.”
While they warned against linking the dollar to Baghdad International Airport, because it will exacerbate the rise of the dollar, and we will witness confusion in the local markets that are suffering from stagnation at the present time.
They pointed out that the rise in the dollar exchange rates remains dependent on the behavior of the Central Bank and the extent of its responses to it, and the
recent rise of the dollar came after the decision of the Central Bank of Iraq to transfer the operations of travelers obtaining the dollar exclusively through Baghdad Airport. According to a report,
“Airports are not prepared to receive this large number of companies;
There are many companies that sell the dollar, and if they are limited to only 6 offices,
it will be useless and the citizen will not be able to obtain the dollar, and previous experiences confirm this.
Where is the central bank spokesman?
Observers were surprised by the lack of an official spokesman despite his presence in all state ministries.
This is one of the problems with the Central Bank, which announced the procedures and results of the visits conducted by the governor to Washington.
All statements are confusing and confused due to the lack of accuracy and correct official information.”
In this context, the Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Saleh, confirms:
“The exchange rate in the parallel market does not affect the stability of the general level of prices. While he pointed out that the
parallel exchange market has begun to affect a narrow economic scope, he pointed out that the
stability of the dinar’s exchange rate against... The dollar is real and solid.”
Two factors, internal and external
Saleh said in a statement followed by the Iraq Observer Agency:
“There is an international factor that imposes controls on what is called banking compliance in financing the demand for dollars from our country’s international bank accounts in foreign currency, and
there is also an internal factor that benefits from the actions and pressure of the external factor in order to obtain profitable gains.” “Determined or emergency, especially in cash dollar transactions.” He points out that:
“The dominance of the fixed exchange rate system in Iraq, which is based on a base of international reserves, is the highest in the history of Iraq and its monetary policy, as
the foreign currency covers a percentage of more than 100 percent of the total currency currently exported.” He continued:
“Through the strength of the official central exchange market, the exchange rate of the dollar to the dinar in the parallel market in our country does not constitute any relative importance in affecting the stability of the general level of prices,
which have become stable in their components and trends as a result of the influence of the official exchange rate factor that prevails and currently dominates the exchange rate.” Financing “import” foreign trade, amounting to 1,320 dinars per dollar, is responsible for financing 90 percent of Iraq’s foreign trade. He stated,
“The stability of the official exchange rate leads to stability in the stable external value of the dinar, which is embodied in the state of stability in the relative prices of goods and services, as annual inflation in our country does not exceed only 3 percent, and
this is what was indicated in the reports of multilateral international financial and economic organizations.”
The strength of foreign reserves
Saleh added, “In light of the strength of the foreign reserves supporting the Iraqi dinar, whose value as liquid foreign assets exceeds $100 billion, the official exchange market, as a general trend, will remain dominant in containing any noise with ambiguous information that is affected by the parallel exchange market in short periods, due to political events.” “International or regional emergency.” He stressed,
“After the decline of the phenomenon of dollarization in internal transactions, especially in contracts, obligations and payments within the country since last year and its legal ban, the parallel exchange market has begun to have its general effects only on a narrow economic scope of prohibited transactions, practiced by informal markets and at a rate of 10 percent of Total supply and demand transactions for the currency.” He pointed out,
“The stability of the exchange rate of the dinar to the dollar that the country is witnessing, even in the secondary markets, is a real and well-established stability. Rather,
it is derived from the strength of the influence of the price and quantitative factors of the monetary and financial policies and their integration in imposing overall price stability in the country, and containing the inflationary expectations that it was causing.” Parallel exchange market forces over the past years.”
https://observeriraq.net/لكبح-جماح-الدولار-البنك-المركزي-يربك/
