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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


    Iraq.. Compliance with the "Swift" system affects the exchange rate of the dinar

    Rocky
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    • Post n°1

    Iraq.. Compliance with the "Swift" system affects the exchange rate of the dinar Empty Iraq.. Compliance with the "Swift" system affects the exchange rate of the dinar

    Post by Rocky Sun 15 Jan 2023, 8:28 am

    [size=39]Iraq.. Compliance with the "Swift" system affects the exchange rate of the dinar

    AFP
    January 15, 2023
    [/size]
    [url=https://media.voltron.alhurra.com/Drupal/01live-106/styles/sourced/s3/2021-02/2018-11-04T145555Z_1834826861_RC18BD110300_RTRMADP_3_USA-IRAN-SANCTIONS-IRAQ %281%29.jpg?itok=Fdpeu0rT][/url]
    [You must be registered and logged in to see this image.]
    [url=https://media.voltron.alhurra.com/Drupal/01live-106/styles/sourced/s3/2021-02/2018-11-04T145555Z_1834826861_RC18BD110300_RTRMADP_3_USA-IRAN-SANCTIONS-IRAQ %281%29.jpg?itok=Fdpeu0rT]The Iraqi currency has lost about 10% of its value since mid-November[/url]
    The exchange rate of the Iraqi dinar has been witnessing fluctuations against the dollar for about two months, which experts attribute to Iraq's start to comply with international measures on financial transfers in hard currency, while parties in the country hold Washington responsible for this decline. 
    And while the official fixed exchange rate is 1470 dinars against one dollar, the price of the local currency in the market has declined since mid-November to 1600 dinars at the beginning of the week, before settling at about 1570, according to the official news agency, meaning that the Iraqi currency lost about 10% of its value. worth it. 
    This decline is not considered huge, but it has begun to cause concern among Iraqis due to the high prices of imported materials, such as gas and wheat, for example. 
    Adviser to the prime minister on financial affairs, Mazhar Saleh, told AFP that "the fundamental and fundamental reason" for this decline "is an external constraint." 
    Hadi al-Amiri, head of the Al-Fateh Alliance, representative of the Popular Mobilization Forces, which includes pro-Iranian factions affiliated with the country, accused the Americans of exerting "pressure on Iraq to prevent its opening up to Europe and the countries of the world." 
    On the other hand, economist Ahmed Tabakishli believes that "contrary to rumors and misinformation, there is no evidence of American pressure on Iraq," the important economic and commercial partner of neighboring Iran. 

    "shock" 

    In fact, the volatility of the dinar is linked to the start of Iraq's compliance with some standards of the international transfer system (SWIFT), which Iraqi banks must apply since mid-November to access Iraq's dollar reserves in the United States. 
    In order for Iraq to be able to access those reserves, which amount to $100 billion, it must now comply with systems that “require compliance with international anti-money laundering provisions, anti-terrorist financing provisions, and those related to sanctions, such as those applied to Iran and Russia,” according to Tabakishli. 
    He adds that the matter is related to Iraq entering "within a global financial transfer system that requires a high degree of transparency," but that "caused shock" to many Iraqi banks "because they are not used to this system." 
    And Mazhar Salih explained that Iraqi banks should now record their "transfers (in dollars) on an electronic platform, check the requests ... and the Federal Reserve will examine them, and if it has doubts, it will stop the transfer."
    Since the implementation of the restrictions began, the Federal Reserve has rejected "80 percent of requests" for remittances to Iraqi banks, according to Saleh, on the back of doubts about the final destination of those funds being transferred, he said. 

    "temporary condition" 

    This refusal affected the supply of dollars in the Iraqi market. On the other hand, demand accumulated, but the supply was not consistent with it, and thus the exchange rate declined with the decline in bank transfers in dollars. 
    The Central Bank of Iraq spoke in a statement on Tuesday about the return of the exchange rate to what it was within two weeks, describing the "turmoil in dollar prices" as a "temporary situation."
    In the meantime, the Iraqi authorities have taken several measures, including facilitating the financing of private sector trade in dollars through Iraqi banks, and opening outlets for selling foreign currency in government banks to the public for travel purposes.
    The Council of Ministers also decided to "commit all government agencies to sell all goods and services inside Iraq in dinars and at the central bank's price of (1470) dinars to one dollar." 
    Mazhar Salih believes that "these measures are important because they show that the state is there to protect the market and the citizen," and help "to combat the problem." 
    Despite the dinar's decline, the inflation rate is still small, reaching 5.3% at an annual rate in October 2022, according to the Ministry of Planning. However, actual concerns relate to the purchasing power of the population. 
    Saad al-Taei, a retired man who helps his son run a small shop in the Karrada neighborhood of Baghdad, began to feel the impact of exchange rate fluctuations on his purchasing power, as he says, "This fluctuation that occurs is a real problem for the retailer and the consumer." 
    He explains, "Iraqis have limited salaries, and they receive their salaries in Iraqi dinars. As a pensioner, I receive 494 thousand dinars... When the dollar was 1470, the value of my salary was 336 dollars. Today, at the exchange rate of 1570, my salary becomes 314 dollars." 
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