Get Ready.. The Exchange Rate Is On Track For A New Rise: The Dollar Selling Platform Will Stop And “The Shock Is Coming”
Economy 12-17-2024, 15:38 |Baghdad today – Baghdad Economic affairs specialist Nasser Al-Tamimi warned today, Tuesday (December 17, 2024), of a rise in the dollar exchange rates in Iraq in the coming days.
Al-Tamimi told “Baghdad Today” that “there are real fears in the Iraqi market about the continued rise in dollar exchange rates after the platform was suspended by the Central Bank of Iraq,” noting that “this matter will constitute a shock, especially at the beginning of the implementation of the decision and will push for a rise.”
The dollar, to increase demand for it in the parallel market.” He added,
“After stopping the platform, most merchants, especially small ones, will rely on the parallel market to finance their foreign trade, while continuing to finance trade with Iran and Turkey with dollars, in illegal ways,” pointing out that
“this is what will push the rise and that is why practical steps must be taken to prevent This is done by the monetary authority in the country, and urgently.”
On Wednesday (September 4, 2024), the Central Bank of Iraq revealed the mechanism for ending the electronic platform for external transfers, while indicating that placing external transfer operations and meeting requests for the dollar is on sound paths and consistent with international practices and standards. The bank said in a statement received by “Baghdad Today” that
“the electronic platform for external transfers managed by the Central Bank of Iraq began at the beginning of 2023 AD as a first stage to reorganize financial transfers in a way that ensures proactive control over them instead of subsequent control through the Federal Reserve auditing daily transfers.”
This was an exceptional measure, as the Federal Reserve does not usually undertake this, and
a gradual shift was planned towards building direct relationships between banks in Iraq and foreign correspondent and accredited banks, with an international auditing company mediating this. By pre-scrutinizing transfers before they are executed by correspondent banks. He added,
“During the year 2024 and until now, 95% of the transfer process has been achieved from the electronic platform to the direct correspondent banking mechanism between it and the Iraqi banks.
This means that only about 5% of it remains inside the platform, which will be transferred through the same mechanism before the end of this year.” year and according to the plan,” explaining that
“some expectations about possible effects on the exchange rate and transfer operations are unfounded, because the process will not happen suddenly or in one batch at the end of this year, but rather it was already achieved during the period.”
“With effort and careful follow-up, the remaining small percentage will be completed in the next short period.” He stressed that “trade with the United Arab Emirates, Turkey, India, and China represents about 70% of Iraq’s foreign trade as (imports),
which called on the Central Bank of Iraq to find channels for transfer in the currencies of the euro, the Chinese yuan, the Indian rupee, and the Emirati dirham, via correspondent banks.” approved in those countries, and
(13) Iraqi banks have already begun conducting transfer operations with a pre-audit mechanism that has been agreed upon and approved, in addition to transfers in the dollar currency.”
He continued: “With the provision of channels for personal transfers for legitimate purposes and foreign purchases through electronic payment channels and international money transfer companies,
cash sales to travelers, and payment of cash dollars for incoming transfers to the destinations and purposes specified in the Central Bank’s published instructions.”
The Central Bank of Iraq stressed that it has “put external transfer operations and meeting requests for the dollar on sound paths and are consistent with international practices and standards and the law on combating money laundering and the financing of terrorism,” explaining that
“providing the aforementioned channels for all purposes at the official price of the dollar makes this price the real indicator of practices.”
This is proven by the reality of price stability and inflation control, and any other price that is traded outside these channels is considered an abnormal price that is resorted to by those who resort to non-fundamental or illegal practices who stay away from official channels in their dealings.
They alone bear the additional costs by purchasing at a higher price than the official price, in order to deceive others about the difference between the official price and others.” https://baghdadtoday.news/264127-استعدوا.-سعر-الصرف-على-موعد-مع-ارتفاع-جديد-منصة-بيع-الدولار-ستتوقف-والصدمة-قادمة.html
Iraq is outside the list of major countries holding US bonds
Money and business Economy News – follow up The US Treasury Department announced on Tuesday that Iraq is no longer a major foreign holder of US bonds.
According to the Treasury report for September, which showed that Iraq was not among the top 20 countries that hold US bonds, after last year it was ranked among the top holders with a holding amounting to $32.6 billion.
The report indicated that “Japan topped the list of major countries in possession of US bonds, as its possession amounted to $1.123 trillion, followed by China in second place with a possession of $772 billion, while the United Kingdom came third with $764 billion, and the Cayman Islands came fourth with $420 billion.”
Luxembourg is fifth with $417 billion, and Canada is sixth with $370 billion.
The report indicated that Saudi Arabia was the only Arab country that maintained its position among the 20 largest holders of US bonds, as its holding amounted to $143.9 billion.
The report indicated that the total holdings of US bonds around the world amounted to 8 trillion and 872 billion dollars in September.
US bonds are a type of debt instrument issued by the US government to raise money, and many countries buy them as a safe investment.
In past years, many Arab and foreign countries, including Iraq, owned large amounts of these bonds, and
over time, Iraq’s possession of American bonds decreased until it fell out of the list of the top 20 countries holding these bonds. views 249 https://economy-news.net/content.php?id=51026
The Central Bank Expands External Transfer In New Currencies
Thursday 19, December 2024 11:24 | Economical Number of readings: 81 Baghdad / NINA / The Central Bank of Iraq announced the expansion of external transfer channels for local banks,
to include new currencies: the
Jordanian dinar and the
Saudi riyal, and to
allow Iraqi banks to finance trade with Turkey in the euro, after it was limited to use with European Union countries, in addition to transfers available in currencies.
US dollar,
UAE dirham,
Chinese yuan and
Indian rupee.
The bank explained in a statement:
“This step comes as part of its efforts to expand options for financing foreign trade in various currencies and channels,” indicating that it has begun taking the necessary measures to meet banks’ requests in these currencies. He pointed out:
“This expansion of external transfer channels
provides transfer operations at the official rate, and
aims to streamline the transfer and
involve a larger number of banks in external transfer operations, and
expand the horizons of economic cooperation between Iraq and other countries,
especially in light of the bank’s endeavor to find other channels to meet the volume of The demand for various foreign currencies according to Iraq’s dealings with those countries.” / End 3
https://ninanews.com/Website/News/Details?key=1175491
Specialists Suggest Restructuring Some Banks Similar To Government Ones
Economical 12/19/2024 Al-Sabah: Hussein Falih Experts and specialists in financial and banking affairs stressed the need to redouble efforts aimed at restoring customers’ confidence in banks, stressing that
this step would absorb the accumulated cash mass and increase the volume of deposits,
calling at the same time for the restructuring of some private banks similar to government ones.
Financial advisor Abdul Rahman Al-Sheikhli told Al-Sabah:
The Iraqi banking system was suffering from many problems, especially before 2003 as a result of the lack of private banks,
but after 2003 work expanded to establish many banks, but
most of them did not keep pace with international systems and standards, so it was You suffer from a lot of problems. Al-Sheikhly added that
restructuring
during the last year and a half, specifically after the imposition of US Federal sanctions on some banks, all of them began seeking to restore their status in a manner consistent with international standards, stressing the
necessity of restructuring some banks in order to be supported by international standards. The financial advisor pointed out the
Hoarding money
necessity of restoring trust between the banking institution and the customer, as
it was lost a long time ago,
which prompted citizens to hoard their money outside banking channels for the purpose of preserving its timely disposal, because
some private banks due to
circumstances beyond their control,
mismanagement, and
other matters.
It kept the citizen away from the banks. The spokesman pointed out
Electronic systems
the necessity of
moving completely towards automation and the
use of modern electronic devices in a manner commensurate with the large size and responsibility undertaken by banking institutions, stressing that
in the recent period these banks have begun to change their work towards electronic systems according to the government’s directions. Al-Sheikhli explained that the
Sound system
Prime Minister recently focused on a very important aspect, which is
restructuring government banks, first, and
then private banks, where
government banks began, especially in the Rafidain Bank, and the
completion rate for this project reached the range of 74 to 75 percent, and
what remains is only less than 25 percent and perhaps It will be completed soon, so
we will have a wonderful model of a very sound banking system that we can adopt and emulate in other banking institutions.
Serious steps
For his part, the expert in financial and banking affairs, Mustafa Akram, said in an interview with “Al-Sabah”: The government has begun serious steps to rehabilitate and develop the Iraqi banking system, as most banks, especially private ones, suffer from backwardness as a result of monetary policies, indicating that the government has focused on
automating the work of banks and introducing a
system Electronic payment in order to develop the Iraqi banking system.
Digital transformation
It is noteworthy that the Association of Private Banks recently announced an increase in deposits in the banking sector during the last two years, while indicating the government’s great interest in the recent period regarding digital transformation in general and the shift towards an electronic payment system, and that “during the last two years deposits in the banking sector increased,
Nearly 75 percent of the monetary mass is outside the banking system and requires a great effort to motivate citizens, companies, and institutions to use the banking system more, which is what is currently happening, but this type of work needs to be accelerated to control financial operations in Iraq. https://alsabaah.iq/107455-.html
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