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


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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


    How did the dollar crisis affect Iraqi trade during half a year?

    Rocky
    Rocky
    Rocky
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    How did the dollar crisis affect Iraqi trade during half a year? Empty How did the dollar crisis affect Iraqi trade during half a year?

    Post by Rocky Sat 21 Oct 2023, 10:24 am

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    20-October-2023
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    The controls imposed on external transfers of dollars by the Central Bank of Iraq, in accordance with the terms of the US Federal Bank, imposed a number of variables on both the internal and external levels. While on the internal level they were represented by the rise in dollar exchange rates, they caused a change in the foreign trade map of Iraq as well.
    The import volume decreased in the first half of this year by 27% following the exchange market crisis and the government’s attempts to control the movement of the dollar
    The application of what is known as the “electronic platform” began in Iraq since December 2022, and entered into actual operation starting at the beginning of this year, with the aim of preventing the dollar from reaching banned countries and entities, and this in turn prompted some banks to “deceive” to finance trade [You must be registered and logged in to see this link.] deliver [You must be registered and logged in to see this link.] dollar to... The banned countries, led by Iran, led to the imposition of sanctions on several banks and deprived them of obtaining the dollar, which left merchants with only one option; Buying dollars from the parallel market to finance their foreign trade with banned countries.
    The effects of these changes are clear on [You must be registered and logged in to see this link.] statistics , as the “ [You must be registered and logged in to see this link.] ” website shows that Iraq’s imports during the first half of this year amounted to only $16.9 billion, and when compared to Iraq’s imports for the first half of the year 2022, which then amounted to $22.9 billion, It appears that Iraq's imports during the first half of this year decreased by more than 27%, a difference of more than 6 billion dollars.
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    Decline in Iraq's imports
    With a quick look at the sales of [You must be registered and logged in to see this link.] , external transfers specifically, the difference between the Central Bank’s sales and external transfers before and after December 2022 is clearly evident, as the rate of external transfers of dollars per month ranged between 3-4 billion dollars per month. , before it decreased in November to $1.4 billion, then to less than $1 billion during the last month of last year and January and February 2023.
    Sales rose again in March until last August at a stable rate of more than $2 billion, before remittances declined in September to the billion-dollar range.
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    The volume of imports financed from the parallel market?
    While global data show that Iraq imported about 17 billion dollars during the first half of this year, the Central Bank data indicate that external remittances for the purpose of importing during the first half of the current year amounted to only 12.5 billion dollars until June 2023, which means A total of $4.4 billion worth of goods were imported using the parallel market dollar, meaning that 26% of the import volume during the first half of this year came through the “parallel dollar.”


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    Does travelers' dollars go to banned imports?
    Given these data, the parallel market finances import operations at about $25 million daily, which explains the large demand for the dollar in the market, which led to a significant rise in exchange rates.
    The exchange rate in the parallel market has been fluctuating at 1,600 dinars per dollar for weeks, a difference of about 300 dinars from the official rate.
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    The number required, or purchased from the parallel market daily for the purpose of import, is approximately equal to the Central Bank's daily sales as cash sales for the purpose of travel, which leak into the parallel market, and are purchased by merchants to finance imports with the banned countries.
    Data indicate that about a quarter of import operations are financed from the parallel market, amounting to $4.4 billion during the first six months of 2023.
    The Central Bank's sales of cash dollars for travel during the first half of this year amounted to $5.8 billion, which indicates that 75% of the dollar allocated to travelers may have gone to merchants for the purpose of import, which explains the complaints confirmed by travelers about the difficulty of obtaining dollars.
     
    $30 million for daily travelers!
    The number of passengers “arriving and departing” through Iraqi airports during 2022 reached about 9 million passengers, according to the Civil Aviation Authority. Accordingly, the departing passengers who need to buy dollars from the Central Bank amount to approximately 4.5 million passengers within a year, that is, approximately more than 12 thousand and 300. Daily traveler.
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    The Central Bank of Iraq currently finances each traveler with 3,000 dollars, which means that travelers actually need about 36 million dollars per day on average, but most of these cash sales go for the purpose of financing “prohibited” imports, and travelers remain without quotas of the dollar, which forces them to also put pressure on the parallel market. In order to buy dollars.
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