Samson: Iraq's Govt Interventions Prompt Improvement in Forex Reserves
8th October, 2021
Despite recent tumultuous times and a weakening economy in Iraq, government is said to be implementing reforms that are aimed at reviving its ailing currency.
Forex trading in Iraq
While forex trading in Iraq is still a relatively new concept, it is gradually being embraced by nationals.
Reports on the matter suggest that more and more people in the country are starting to open up to the financial markets and explore alternative investment options.
Given the widespread interest in forex trading across the globe, it is no surprise that citizens now have more access to trading resources, analytical tools and platforms.
Naturally, before getting involved in forex trading, one needs to do the necessary research on trading currencies and American Dollars ; the latter is particularly beneficial because the USD forms part of all major currency pairs and is the basis of the majority of international trading activity.
The steps to follow to get started with forex trading are quite universal, however, in Iraq, there are some additional considerations worth noting. For example, industry insiders advise working with an international broker that is registered with a recognised foreign currency authority.
The other common steps include opening a trading account after selecting a broker; downloading your trading software as some brokers require third-party software; funding your account through linking it to your bank account of choice; and then lastly, making your first trade. It is worth noting, though, that it may take a few days for the funds to reflect in your trading account.
Thereafter, one need only closely monitor the markets and trade using a chosen strategy from the wide selection of strategies that are available and advised by those in the field.
Government intervention and its impact
Known to many is that forex and currencies are heavily impacted by global economic and political conditions, amongst other factors, and the same applies to Iraq and its trading activities. In recent times, the fluctuations in oil prices and the conditions of 2020 exacerbated the country's ailing economy and weakened the Iraqi Dinar in the financial markets. This put pressure on the government to implement certain policies and reforms to give it a fighting chance on the global markets. Over and above the economic policies to steer the country's finances in the right direction, the government also introduced reforms against corruption which, according to reports, are proving to be quite beneficial to the country's foreign reserves.
The measures being taken against the alleged corruption and wastage in the country has given Iraq a fighting chance and, more importantly, has increased investor confidence in Iraq to an extent, although it is still reeling from recent events and global developments.
In early 2021, it was reported that the crackdown on corruption helped to boost the country's forex reserves to approximately $60 billion. Moreover, the crude oil price fluctuations have also had an impact on how the Iraqi Dinar is performing on the global markets, particularly relative to some of the strongest currencies on the markets, such as the USD, CAD, EUR and JPY.
Given that Iraq relies on oil to fund nearly all of its state budget, according to reports, the country remains invested in the demand for it and its pricing, as it could either make or break all the efforts and initiatives that are currently being implemented to strengthen and revive the country's economy and currency. LINK
MilitiaMan: Interesting the way they speak of how the Iraq Dinar is performing with the strongest currencies on the markets, when what is out there suggests they are not performing in the Global markets that we know of from a US perspective anyway..
They may here trade in the near future from what we find from the data form the PM and the White Papers.
This article may have a futuristic component to it. As they told us recently that the CBI has had over the last 9 months kept the program rate of about 1460 IQD / 1 USD stable and the Cadres are aware of that.
In fact, hundreds and hundreds of central banks, finance Ministers, etc, all know that there is a digital transformation going on and yes Iraq is apart of that. In fact, Viet Nam is too imo..
What I think this is about is an educational event and for what to expect in the near future. I final article thread #1266 we see this:
New instructions for buying and selling foreign currency for the year 2021 and the stability of the dinar exchange rate
directors and the authorized managers in a specialized workshop in which he explained the objectives of issuing the instructions and the procedures required of banks to implement them as of 10/17/2021, with an emphasis on the need for banks to practice their real work as established in their Law No. 94 of the year 2003 and focus on banking finance and the many banking products that contribute to the transition of banking work from banking to contributing to development
The economic conditions and crises, the financial deficit and the decline in the financial position of the public finances, which led to a change in the exchange rate of the Iraqi dinar for the purpose of overcoming the above crises with the Central Bank taking many measures and initiatives to stimulate the economy and revitalize the economic cycle, which contributed to the passage of nine months after the exchange rate change that the rate of control is controlled Exchange in the trading market for about a month at the target rate of 1470 dinars against the US dollar
Therefore, the new instructions regulate the process of selling foreign currency in the currency window, through which it will be implemented to maintain the stability of the exchange rate, control the movement of foreign currency locally and internationally, and abide by international standards for compliance rules and combating money laundering and terrorist financing" LINK
MilitiaMan: From the data we can see that there is a convergence and a preparation for an event to take place. An event that is suggested to be if such importance that is can make or break the country's efforts to initiate, revive and strengthen the country's economy and currency.
The latter is key and one to focus on. The citizens will need to approve of it. The PM suggests that tomorrow there is a wedding of sorts and it will bring dignity..
An internationally accepted currency brought out by the CBI may just do that.
We know from the White Papers put out that Iraq is ready now and will be cleared through the Digital Platform " BUNA" owned by the AMF. So I expect that will be similarly true with the FOREX, we shall see. imo..
All is very good. The UST, G7, G20, WB, IMF, Cetral Banks meet on the 12th -15th.. They are going to be going over "Economic Inclusive Recovery's", keep that in mind.. ~ MM
Is the Iraqi dinar internationally traded?
The currency is only traded in Iraq, so it can only be purchased by U.S. customers through a handful of dealers around the U.S?
"Legitimate forex trading in the USD/IQD currency pair is virtually nonexistent. Major banks don't offer Iraqi dinars for trade. Iraqi dinars are only available for purchase or sale through select money exchangers, who may or may not be legally registered."