Bondlady’s Corner – Iraq Economic News and Points to Ponder Friday Afternoon 11-24-23


Iraq Economic News and Points to Ponder Friday Afternoon 11-24-23

Tlm724 Administrator Bondlady’s Corner

Media Advisor To The Prime Minister: The Battle For The Dollar Is Almost Over

 Political     Baghdad – IA  The media advisor to Prime Minister Hashem Al-Rikabi confirmed today, Friday, that the battle for the dollar is nearing its end.

 Al-Rikabi said in a blog post on his account on the “X” platform, followed by the Iraqi News Agency (INA):   “The reform plans for the financial and banking system undertaken by the government and the Central Bank of Iraq aim to build strong foundations for the stability of the economy, pave the way for creating a suitable climate for investment, and end the eras of unfair trade.” Legitimacy, dollar smuggling, and speculative operations in the market.”  He added, “In short, the battle for the dollar is almost over.”–.html

Parliamentary Finance Identifies A Single Factor For The Stability Of The Dollar And Dinar

Economy| 08:43 – 11/24/2023  Mawazine News – Baghdad  The Finance Committee in Parliament considered that diversifying the sources of foreign currencies in commercial transactions is the only way to address the problem of the increasing demand for the dollar, and to create a parallel market for selling hard currency.

 The head of the committee, Atwan Al-Atwani, said in a statement received by Mawazine News, “The Central Bank’s response to our previous call regarding addressing the problem of the increasing demand for the dollar and creating a parallel market for selling hard currency has come a long way in the mission of restoring market stability.”  

He added,  “By starting to open different windows to deal with other foreign currencies and adopting the (clearing) system in trade exchange with various countries, the Central Bank has come a long way in getting rid of the dominance of the dollar and strengthening the strength of the Iraqi dinar and bringing it into the line of global commercial transactions.”  

He stressed  “the importance of this approach as an effective solution and a well-thought-out strategy to open new horizons that ensure the facilitation of commercial transactions procedures at various levels,” reiterating “full support for the steps of the Iraqi Central Bank.” 

 He stressed that the  Iraqi Central Bank “is moving steadily towards developing real solutions to the crisis, while we look forward to other steps that will restore stability to the market and end the problem of exchange rate fluctuations and increasing demand for the dollar.”

The Government’s Financial Advisor Reviews The Benefits Of The Decision To “Liberate The Selling Price Of The Dollar” In Money Exchange Offices

 Economy |Baghdad today – Baghdad The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed today, Thursday (November 23, 2023), that the decision to circularize the Central Bank today regarding trading the dollar outside the platform according to supply and demand, will provide high flexibility in supply that contributes to market stability.

Saleh told the official news agency, followed by “Baghdad Today”, that  “liberalizing the operations of buying and selling foreign exchange is not an alternative to the policy of defending price stability and the government’s plan to interfere in the stability of the general level of prices.”

The Central Bank of Iraq had issued circulars to licensed banks regarding their share and the sale of the dollar to citizens at the official price yesterday, Wednesday, as it confirmed that its circulars, No. 463/3/9, on 8/17/2023, paragraph (first), thereof, stated that the official price for selling the cash dollar To the final citizen beneficiary, the amount of (1,320) dinars/dollars will be spent on the cash share received by banks and exchange companies, and mediation in buying and selling foreign currency directly from this bank/foreign currency buying and selling window.

It must be adhered to and sold in accordance with the instructions communicated to you. Otherwise, the price is subject to forces. Market supply and demand.

The Prime Minister’s advisor added, “Families, natural and legal persons in Iraq are hoarding amounts of cash in foreign currency and outside the banking system amounting to billions of dollars and are subject to two phenomena. 

The first is the difficulty of disposing of their circulation outside the laws of supply and demand that create the currently free exchange rate due to deterrent legal controls, and the

second is a significant contraction of the money supply.” of liquid foreign currency while it has stopped moving in the form of a cash hoarding that is immobile and outside the circle of supply.” 

He continued, “This exacerbates exchange rate fluctuations under the influence of (a liquidity trap in foreign currency resulting from an expected positive wealth due to the rise in the value of foreign exchange against the local currency).”   

He added,   “Therefore, liberalizing the climate of dealing in foreign currency and giving it a white character will provide high flexibility in supply that contributes to reducing noise in the secondary exchange market, which provides a flexible supply of foreign exchange that leads to market stability, supported by a government policy that provides commodity supply through the official exchange rate.” Highly stable and financed at an exchange rate of 1,320 dinars per dollar.

The Central Bank of Iraq’s statement yesterday, Wednesday, that the dollar exchange rates are subject to “the forces of supply and demand in the market,” raised several questions from economists about the reasons that prompted the governor to issue a decision that only recently considered it an “economic crime” that would put the accused in prison under penalty of the Penal Code. Effective against speculators in exchange rates.

What economists have pointed out is that all the measures taken in cooperation with the American side for nearly two years have been put in vain by the return of the currency auction in a “parallel” manner, which is considered an implicit acknowledgment of the existence of a “parallel market” that imposes itself on the Iraqi economy and controls it, and there is no point in preventing it.

Economist Nabil Al-Marsoumi commented on this step, sarcastically, “The militarization of the dollar has ended, after the Central Bank recognized the existence of the parallel market!!!”

On the other hand, economic experts described the Central Bank’s action by saying that the bank was finally convinced of the futility of preventing parallel markets, and allows the exchange of the dollar currency according to supply and demand,” considering that “this step is good and will enhance the stability of the markets.”

The matter led to the raising of several questions by observers about how the Central Bank will ensure that the dollar does not go to prohibited channels, and  whether this means that the Central Bank will retreat from the step of preventing the delivery of dollar remittances to citizens, and

whether dollar circulation will become available and not be pursued and anyone can Banking can sell the dollar to anyone willing to buy the dollar, as well as  whether it will enhance the stability of the markets, especially since cash from the dollar will become available, which may lead to a balance of supply and demand and thus a decline in prices.المستشار-المالي-للحكومة-يستعرض-فوائد-قرار-تحرير-سعر-بيع-الدولار-في-الصيرفات.html

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Provoking Points to Ponder  on Feelings – Sincerity – Slander

Every human feeling is greater and larger than its exciting cause – a proof I think – that man is designed for a higher state of existence — Coleridge

Feelings come and go – like light troops following victory of the present; but principles – like troops of the line are undisturbed and stand fast — Richter

The heart has often been compared to the needle of the compass for its constancy; has it ever been so for its variations?  Yet,  were any man to keep minutes of his feelings from youth to age, what a table of variations would they present — how numerous, how diverse, how strange ! – Hare

Feeling in the young precedes philosophy, and often acts with a better and more certain aim — Carleton

Sincerity is to speak as we think – to do as we pretend and profess – to perform what we promise – and really to be what we would seem and appear to be — Tilloston

Sincerity is the face of the soul as dissimulation is the mask — S. Dubay

Sincerity – a deep – genuine heart felt sincerity is a trait of true and noble manhood —Sterne

Inward sincerity will of course influence the outward deportment; where the one is wanting, there is great reason to suspect the absence of the other — Sterne