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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    The “curse of the suspicious banks” is chasing the exchange market.. and there are question marks ab

    Rocky
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    The “curse of the suspicious banks” is chasing the exchange market.. and there are question marks ab Empty The “curse of the suspicious banks” is chasing the exchange market.. and there are question marks ab

    Post by Rocky Fri Dec 16, 2022 7:40 am


    [size=30]The “curse of the suspicious banks” is chasing the exchange market.. and there are question marks about the “failure” of the central bank to control the price of the dollar

    2022-12-16
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    Yes Iraq: Baghdad

    The price of the dollar is still stable above 150,000 Iraqi dinars per 100 dollars in the local markets, until yesterday it touched 150,500 dinars per 100 dollars, at a time when the central bank is taking strange and ineffective measures so far in reducing the exchange rate of the dollar in the local markets, which is Its main task is to maintain exchange rates.
    For the first time, the Central Bank took a decision to increase its sales of dollars by 40% to exchange offices and banks, but its sales are still hovering between 120 and 140 million dollars per day, after it was more than 200 million dollars per day during the past months.
    Central bank sales decreased starting from the beginning of last November after applying a new system for selling dollars to banks and excluding some banks accused of smuggling currency and suspicious ones from participating in the auction and depriving them of dollars based on directives from the US Treasury.
    These steps led to a decrease in the central bank's sales of hard currency by 40%, which led to a decrease in the supply of dollars compared to the increasing demand of citizens to buy dollars, which led to a rise in exchange rates.
    And the Central Bank also took a decision to reduce dollar prices from 1460 dinars per dollar to 1455 dinars per dollar, when selling it to merchants who import goods from abroad, a step that seems to aim to reduce the prices of commodities that began to rise in the markets.
     
    Despite the Central Bank taking the decision to increase its dollar sales, the banks that advanced to buy the dollar “except for the punished and excluded banks” seem to have not raised their requests to buy the dollar and their purchases settled on the same amounts, which led to the failure of the bank to compensate for the shortfall in the market and its sales stabilized as they are. At 130 million dollars a day, it did not rise to 200 million dollars as before.
     
    Questions are raised about the rationale of this matter. If the demand for the dollar is high, why don’t the banks participating in the currency auction increase their purchases of dollars from the central bank and put them on the market? Especially since the bank has allowed them to increase sales and raise the sales ceiling for these banks and exchange companies. .
     
    As it seems, in general, that the banks that were excluded from the currency auction and that were alone buying about 40% of the central bank’s sales of dollars, there are no banks and exchange companies yet able to fill their place in the market, in an indication of the extent of the penetration and control of these suspicious banks On the market, since its exclusion, dollar prices have not stabilized in the market, and banks, other banking companies, and the Central Bank have not succeeded in making up for the shortfall.
     
    For his part, economic researcher Manar al-Obeidi believes that "the impact of the dollar's rise against the Iraqi dinar has great repercussions, especially on the fragile class as a result of the high prices of various materials, particularly the main foodstuffs."
     
    He added, "The price of the dollar does not represent as much importance to the simple Iraqi citizen as the high prices of basic materials and the high inflation rates," noting that "the basis for importing foodstuffs is from Turkey specifically and from Iran, and the materials most affected are flour, meat, vegetables, and other factors affecting the rise in prices is transportation." and operational costs.”
    And he indicated that “the basis for reducing the vulnerability of these products to the prices of changing these materials is to provide support packages for the import of these materials in order to reduce their vulnerability to exchange rates, and also work to reduce the costs of sold fuel, especially diesel and black oil, which will contribute to reducing the operational costs of transportation and operation of Iraqi factories that are capable of Compensation for some products, as well as allowing the import of wheat through the private sector in order to operate mills to provide flour products at reasonable prices.
    He pointed out that "the above solutions are temporary until the exchange rates return to normal, since the change resulted from procedures and the strength of the Iraqi economy has nothing to do with this rise."
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