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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

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    Fears of a new shock to the "Iraqi dinar" due to a lack of supply and an increase in demand!

    Rocky
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    Fears of a new shock to the "Iraqi dinar" due to a lack of supply and an increase in demand! Empty Fears of a new shock to the "Iraqi dinar" due to a lack of supply and an increase in demand!

    Post by Rocky Tue 01 Aug 2023, 8:40 am

    [size=32]Fears of a new shock to the "Iraqi dinar" due to a lack of supply and an increase in demand![/size]
    [You must be registered and logged in to see this link.]Tuesday August 01 2023 11:14 am (158 views)
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    Baghdad / Sky Press

    Fluctuations in the exchange rates of the US dollar in Iraq raised fears that the dinar might be subject to a new shock, while news spread of a campaign of arrests of those accused by the authorities of "manipulating the currency market."

    And the value of the dollar reached 1580 dinars, on Friday, before it fell on Saturday to less than 1500 dinars, to rise on Sunday and Monday to 1520-1540 dinars per dollar.

    And the United States prevented 14 Iraqi banks from conducting transactions in dollars as part of a comprehensive campaign to transfer US currency to Iran and other countries subject to sanctions in the Middle East.

    "We have strong reason to suspect that some of these money laundering operations may benefit either sanctioned individuals or potentially sanctioned individuals," a senior US official said.

    “The main danger of sanctions in Iraq is definitely related to Iran,” the US official added.

    And on Wednesday, US State Department spokesman Matthew Miller said that the United States would like Iraq to have bilateral relations with Iran.

    Miller continued, saying: "We haven't always seen that in the past, you've seen that we implement policies to try to prevent, reduce, or mitigate the way Iran is trying to gain influence over Iraq."

    Money changers warned of the possibility of a new rise in the dollar at the beginning of the week due to a "lack of supply" and increased demand, which "is not linked to a change in market requirements, but to extreme international and local measures." ,” says Salim Mustafa, owner of a money exchange company operating in Baghdad.

    Mustafa added, "The lack of supply in the market was associated with the exit of a number of banks from work due to international decisions, and also due to the reluctance of a large number of currency traders to work because of fears of a campaign of arrests launched by the Iraqi Economic Security Service.”

    According to Mustafa, a number of currency dealers are now under investigation on charges of working in the "parallel market" that sells dollars at market prices, not at its official rates.

    The Iraqi Ministry of Interior did not respond to inquiries about the existence of arrests or investigations against currency dealers.

    And the Iraqi Supreme Judicial Council announced, on Monday, efforts to "support the Iraqi dinar and confront manipulation and speculation."

    The council said in a statement that it held a meeting that included the head of the Public Prosecution Service, the investigation judges of the economic courts in Baghdad, the head of the National Security Agency, and the Undersecretary of the Ministry of Interior for Intelligence Affairs .

    The statement added that the meeting discussed "the best ways and mechanisms to address the phenomenon of manipulation of the value of the Iraqi dinar against the dollar, in order to limit it and prosecute those involved in it in accordance with the laws in force."

    A ban on dealing in dollars, imposed by the US financial authorities on 14 Iraqi banks, led to a rise in the price of the dollar resulting from “these banks being part of the process of financing the local market” in hard currency, says Ahmed Al-Saadi, managing director of the Islamic Advisor Bank, one of the banks that was subject to the ban. .

    Al-Saadi says that their bank, and other banks, were "victims" of the country's political problems.

    According to the Prime Minister's advisor, Fadi Al-Shammari, the sanctioned banks were financing 116 local exchange companies.

    Al-Shammari said in a press statement that the Central Bank of Iraq transferred these companies to other banks, which led to a drop in the dollar by 60 points, against the dinar, and strengthened the value of the local operation.

    The decision of the US financial authorities led to losses in the Iraqi banking sector, according to Tamkeen Al-Hasnawi, director and owner of Mosul Bank, one of the banks that were subject to sanctions.

    Al-Hasnawi said that the decision led to "many customers withdrawing their bank deposits after the US Federal Reserve's decision, which caused great losses for the bank and for these customers."

    Dollar depositors in the banned banks received their deposits - or part of them - in Iraqi dinars according to the official exchange rates of 1,350 dinars to the dollar, at a loss of 150 dinars for every dollar, or 150,000 dinars for every thousand dollars of deposits .

    The 14 banks said in a statement that they are ready for local or international financial scrutiny, according to Reuters, and denied any wrongdoing.

    The Federal Reserve Board in New York had approved more stringent controls on international transactions in dollars for Iraqi commercial banks last November.

    The US ambassador to Baghdad, Alina Romanowski, said the measure was a "restriction" of banks' dealings in dollars.

    In a tweet, on Saturday, the ambassador denied imposing sanctions on any Iraqi bank, and said that the measures were imposed due to "money laundering concerns."

    Economist Ali Hameed warned that the impact of the measures could create a state of mistrust in the country's banking system.

    "The recent measures were vague in nature, which could contribute to increasing the alienation of citizens from the banking system, and impede the modernization of the country's financial system," Hamid said.

    According to Hamid, "the largest percentage of the Iraqi financial bloc moves outside the banks, which deprives the country of huge funds that can be pumped into investments through banks, and impedes the building of economic policies based on accurate data and correct expectations."

    And the Central Bank of Iraq confirmed, on Wednesday, that other banks were able to cover the market's needs for transactions in dollars, as the 14 banks subject to US procedures represent only 8% of foreign transfers.

    And prevented the 14 banks from conducting transactions in dollars, but they can continue to use Iraqi dinars and other foreign currencies.

    According to the governor of the Central Bank, Ali Al-Alaq, the transactions on the basis of which the restriction measures were imposed took place in 2022 “before the Central Bank of Iraq imposed stricter regulations on dollar transfers that required applicants to go through an online platform and provide detailed information on the end beneficiaries,” according to Reuters. .

    Two officials at the Central Bank of Iraq said that the latest US sanctions, along with previous sanctions on eight banks, left nearly a third of Iraq's 72 banks on the blacklist.

    The dinar exchange rate crisis against the dollar continues in Iraq, since late last year, which is witnessing fluctuations despite measures taken by the country's central bank with the aim of pushing the stability of currency prices.

    Last February, the Central Bank decided to raise the value of the official exchange rate of the dinar against the dollar by 10 percent, in a measure aimed at limiting the currency depreciation that accompanied the adoption of stricter regulations regarding financial transfers outside the country.

    At the time, the Iraqi government agreed to the Central Bank's proposal to raise the value of the exchange rate from about 1,470 dinars to 1,300 dinars per dollar, which had a clear impact on the exchange market at the time by reducing prices, which reached the level of 1,700 dinars in the parallel market.

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