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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


    CENTRAL BANK: THE FEDERAL BANK IMPOSED STRICT CONDITIONS AND RESTRICTIONS ON THE DOLLAR SALE PROCESS

    Rocky
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    CENTRAL BANK: THE FEDERAL BANK IMPOSED STRICT CONDITIONS AND RESTRICTIONS ON THE DOLLAR SALE PROCESS Empty CENTRAL BANK: THE FEDERAL BANK IMPOSED STRICT CONDITIONS AND RESTRICTIONS ON THE DOLLAR SALE PROCESS

    Post by Rocky Thu 15 Dec 2022, 7:29 am

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    Economie

    [size=38]CENTRAL BANK: THE FEDERAL BANK IMPOSED STRICT CONDITIONS AND RESTRICTIONS ON THE DOLLAR SALE PROCESS[/size]


    Wednesday, December 14, 2022 10:01 PM
    Baghdad / National News Center
    Today, Wednesday, the Central Bank of Iraq clarified the mechanism of the auction for selling foreign currency in the current period, while the US Federal Bank confirmed the imposition of strict conditions and restrictions on the dollar sale process.
    The adviser to the Central Bank of Iraq, Ihsan Shamran al-Yasiri, said during a symposium at the Iraq Book Fair, which was followed by the National News Center, that “the currency sale window has a set of functions, the first of which is achieving stability in the exchange rate, and the second is meeting the requirements of foreign trade from companies, merchants, the economic sector and the public.”
    He added, “The Iraqi commodity sector is unable to provide the requirements of the local market, which expanded the import,” explaining that “the Ministry of Finance sells to the Central Bank the dollar coming from the state’s imports, and the bank gives the finance the value of the dollar sold to it in Iraqi dinars to manage the requirements of the state’s work, and a sale window.” Foreign currency is the only way to summon the Iraqi dinar from the market towards the state’s finances, and stopping the window will create a problem of the lack of a local currency to buy the dollar coming from Iraq’s imports, such as oil, and the window meets 87% of the commodity import requirements for Iraq.
    And he warned that “stopping the sale of foreign currency will force us to print more national currency, which will increase the dinar issued for circulation per month, and this measure will force the bank to print the amount of salaries, which is estimated at 7 trillion dinars per month and reaches 100 trillion annually, and printing without a dollar amount will cause great damage to the economy.” ".
    He explained that “less than 15% of the foreign currency sold in the central bank is demarcated as goods and passes through the customs authority, and more than 80% of the value of the sold is entered as imported materials that change their identity in customs and ports, and change during which imported materials are demarcated in a way other than their original form to reduce customs, for example For example, you enter alcoholic beverages or expensive goods and are painted as vegetables, fruits, or children’s clothes, with the aim of exempting them from taxes.”
    Al-Yasiri pointed out that “there are unofficial outlets through which smuggled goods pass, either under the protection of people or enter in crooked ways, and it is assumed that 18 trillion dinars will enter the state treasury, the value of taxes and fees collected annually, and what is collected amounts to 3 trillion dinars only.”
    And he emphasized, “What enters Iraq as the value of imported goods must be equal to the dollar sold from the window, and verifying that is in the hands of the customs and tax authorities.”
    And he continued, “The central bank has recently created a platform for the currency sale window to which authorized banks submit purchase requests in the name of people, and the names are considered over the course of a week, and the bank resolves its position a day before the date of the auction for selling the currency submitted for purchase in it after applying conditions that include people submitting requests to buy dollars to Licensed banks, and the type of commodity and the need to be purchased and details of the beneficiary are established. The name of the seller and the name of the person requesting the purchase must be mentioned, and the name is entered in a global system called (OFAC) to indicate if it is required or has problems, as well as communication with the seller of the imported goods to verify its dealings With the person asking to buy the dollar,” pointing out that “on some days, the percentage of rejected requests reached 40% due to their non-conformity with the conditions.”
    And he noted that “the US Federal Bank, for its part, has set strict conditions recently that oblige us to display lists in dollars sold on it that include the names of the people and beneficiaries, and it takes 15 days to state the Federal Bank’s position on the safety of the purchase process for the party submitting the request, and the sale process stops if the Federal Bank objects to it.” A specific name is required, or there is a similarity of names, or there is a suspicion of the purpose of buying the dollar.
    He pointed out that “the Federal Bank is in the process of adding 3 oversight bodies to dollar sales to check its destination after the sale, and they say that they are checking to prevent it from reaching terrorist or prohibited parties. Iraq by applying these standards to prevent a decision to stop the flow of dollars to Iraq because it will cause a catastrophe, and the sale of dollars in Iraq is subject to strict supervision by the US Federal Bank because it is the issuer of dollars.
    And he pointed out that “the exchange rate of the dollar is more than 1,500 dinars, which we see as normal and reasonable based on what we mentioned of strict determinants, and there is no problem with the central bank in providing dollars for sale through the currency auction.”
    And Al-Yasiri added, “The Ministry of Finance has an internal debt amounting to 69 trillion dinars, 44 trillion of which is for the central bank and 25 trillion for the banking sector.”
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