Iraq Economic News and Points to Ponder Sunday AM 10-8-23
The Euro Is The Key To Resolving The Dollar Crisis In Iraq
Evan Shaker Aldobardani The euro is ranked second in the world after the US dollar, as it is considered one of the strong currencies in international trade. The euro is also the second most traded currency in the world after the US dollar, and the British pound is ranked fourth. The Central Bank of Iraq is supposed to take the first step by diversifying its financial assets, and increasing the share of the euro, in addition to the pound sterling, at the expense of the US dollar, as the Central Bank of Iraq’s foreign currency reserves are estimated at approximately 113 billion dollars.
The Central Bank of Iraq keeping a portion of its reserves in euros will not have any negative impact on the value of the Iraqi dinar, but it will preserve its value. An example of this is the Kuwaiti dinar, which is denominated against a basket of foreign currencies such as the dollar, euro, and pound sterling.
The Central Bank of Iraq could have pumped the euro currency into the currency sale window auction, after the strict measures imposed by the US Federal Reserve Bank and the US Department of the Treasury on the Central Bank of Iraq by selling the US dollar currency, with the aim of preventing the smuggling of the dollar into Iran,
and therefore The goal of selling the euro in the currency selling window is to avoid the restrictions imposed on the Central Bank of Iraq by the US Treasury, and also to reduce the demand for the US dollar with the aim of reducing the gap between the official rate and the exchange rate in the parallel market.
The Central Bank of Iraq was supposed to establish its own platform, as this platform specializes in selling the euro and the pound sterling, and it can also be sold to citizens in cash, just as the euro is a global currency that the Iraqi merchant can deal with normally and smoothly in any country. It excluded Iran, so some foreign imports could be covered through euros instead of dollars.
Although I am against the idea of giving each citizen 3,000 US dollars to travel and smuggling hard currency out of the country, but at the same time, if the Central Bank of Iraq continues this policy, I suggest giving citizens the euro as well to travel outside the country in order to reduce the demand for the dollar. American. Hoarded money: Iraqi economy. The euro is an investment currency:
The euro is considered an investment currency because it generally moves in an upward direction in the long term, and it rose from the end of last year from levels of 0.96 cents to 1.12 US dollars two months ago, meaning an increase of approximately more than 15%, and the euro currency is currently in the process of A deep correction, as it fell to a level of approximately 1.04 US dollars several days ago, and now it is reeling at the levels of 1.05 US dollars, and perhaps the rise will resume or the correction will be completed to levels close to the parity point with the dollar, and this in itself is an appropriate opportunity for the Central Bank of Iraq to buy a currency.
The euro is worth at least 10 billion euros, and I personally saved part of my money in the euro currency, and it is expected that the euro currency will target levels of 1.15 US dollars and more during the first quarter of next year.
In the event that the Central Bank of Iraq sold part of the currency sale window auction in the euro currency, a month worth two billion euros, that is, selling 100.
Let us assume that the Central Bank of Iraq pumped the euro currency into the markets when it was at a price of 0.96 cents at the end of last year, at a time when the dollar crisis began in Iraq.
As a result, the gap between the official price and the exchange rate in the parallel market was greatly reduced, and at the same time, citizens who bought the euro currency at the time achieved profits of an estimated 15%.
Also, at the same time, the Central Bank of Iraq could have invested in the euro currency if it had kept part of its reserves of the euro currency, assuming 10 billion euros and sold it when it reached 1.12 dollars.
Also, it would have achieved profits of an estimated 15%, that is, about 1 billion and 500. The question here is: Is the Central Bank of Iraq capable? To convert part of his assets from the US dollar to the euro currency? Or will he be a prisoner of the directions of the US Treasury and the policy of the US Federal Reserve? Views 11 10/08/2023 – https://economy-news.net/content.php?id=36851
Economist: Withdrawing The US Federal Reserve Will End The Dollar Crisis
Information/Baghdad..Former member of the Parliamentary Economics Committee, Abdul Hussein Al-Yasiri, today, Sunday, attributed the reason for the continued rise of the dollar to the American policy towards Iraq.
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Al-Yasiri said in a statement to Al-Maalouma: “The solution to the dollar crisis lies in obtaining a portion of the Iraqi funds in the US Federal Bank.”
He added, “The rise in the dollar is due to excess demand and lack of supply, as well as America’s policy towards Iraq.”
He explained that “the government is required to put pressure on the Fed to provide sufficient cash from the dollar in order to meet the increasing demand and eliminate the so-called parallel market.”
During the current period, America has worked to destroy the Iraqi currency by imposing sanctions on Iraqi banks and banning the dollar under many pretexts, which in one way or another led to a severe financial crisis in the Iraqi markets. LINK
The Dollar Is Going Crazy In The Markets… A Continuous Rise In Exchange Rates In Iraq
SUNDAY, 08-10-2023, KARAR AL-ASSADI The dollar is going crazy in the markets… a continuous rise in exchange rates in Iraq 8-1696751280
Dollar prices rose today, Sunday, in the markets of Baghdad and the rest of the governorates.
Dollar prices rose with the opening of the Kifah and Al-Harithiya central stock exchanges in Baghdad, recording 158,350 dinars against 100 dollars, while prices yesterday, Saturday, were 157,500 dinars against 100 dollars.
Exchange rates rose in banking shops in local markets in Baghdad, as the selling price reached 159,250 dinars, while the purchasing price reached 157,250 dinars for every 100 dollars.
https://non14.net/public/160786
Exchange Rates Touch 160 Thousand For Every Hundred Dollars In Iraqi Markets
Economy 2023-10-08 | 1,992 views Alsumaria News – Economy Alsumaria News publishes the exchange rates of the dollar against the Iraqi dinar in Iraqi local markets for Sunday, October 8, 2023.
Dollar prices rose in local markets in Baghdad, as the selling price reached 159,250 Iraqi dinars, while the purchasing price reached 157,250 dinars per 100 dollars.
For more than 7 months, and specifically since the Central Bank began operating the electronic platform and the international financial transfer system ““SWIFT,” the dollar exchange rates in Iraq have not witnessed stability despite the attempts of the government and the Central Bank to control the exchange rate in the parallel (black) markets.
The Central Bank of Iraq decided earlier to adjust the exchange rate of the dollar against the Iraqi dinar, as the price of buying the dollar from the Ministry of Finance reached 1,300 dinars per dollar and selling it at (1,310) dinars per dollar to banks through the electronic platform, and it is sold for (1,320) dinars per dollar. Dollars from banks and non-banking financial institutions to the final beneficiary. LINK
A Parliamentary Committee Confirms Regarding The Oil And Gas Law: It Will Not Pass
Information / Baghdad… A member of the Parliamentary Oil Committee, Bassem Al-Gharibawi, confirmed on Sunday that the political parties agreed to legislate the oil and gas law before the formation of the government and it was placed within the government program, pointing out that the law will not be passed without obtaining political consensus.
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Al-Gharibawi told Al-Maalouma, “All laws that are intended to be legislated need political consensus in order to resolve them and then bring them to the House of Representatives to vote on them, whether they are simple or important laws.”
He added, “The oil and gas law is one of the important laws and requires political consensus between the various parties, especially between Baghdad and Erbil, in order to ensure the distribution of wealth and agreement on a number of paragraphs within this law.”
He stated that “the agreement to form the government by the political blocs, as well as the government program, included resolving the oil and gas law and putting it to a vote in Parliament.”
Al-Gharibawi pointed out that “its draft was prepared within six months of the government assuming its duties, while this period passed and the issue was not resolved.” LINK
Al-Ittihad: Political Differences Hinder The Resolution Of The Oil And Gas Law
Information / Baghdad… A member of the advanced cadre of the Patriotic Union of Kurdistan, Ghiyath Al-Surji, confirmed that Baghdad and Erbil do not have real seriousness to resolve the oil and gas issue and solve the problem between the two sides regarding the distribution of wealth.
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Al-Sourji told Al-Maalouma, “There is no seriousness in Baghdad and the region to resolve the outstanding problems regarding the oil file, especially what is related to the oil and gas law, as it was possible to avoid differences through a clause in the constitution that defines the relationship between the two sides regarding this wealth.”
He added, “The National Union has 18 representatives in Parliament, and it calls on everyone to legislate the oil and gas law in order to get rid of the existing crises and disputes over the distribution of wealth between Baghdad and Erbil.”
He stated, “There is an urgent need to speed up the resolution of the oil and gas law between Baghdad and Erbil, and he urged Parliament to pass this law and vote on it with everyone’s approval, with the aim of ending differences and closing the door to tensions over this matter.” LINK
Points to Ponder on Hope:
You cannot hope to build a better world without improving the individuals. To that end, each of us must work for our own improvement and, at the same time, share a general responsibility for all humanity, our particular duty being to aid those to whom we think we can be most useful. — Marie Curie
To hope means to be ready at every moment for that which is not yet born, and yet not become desperate if there is no birth in our lifetime. — Erich Fromm
If we all worked on the assumption that what is accepted as true is really true, there would be little hope of advance. — Orville Wright
You believe that easily which you hope for earnestly — Edward Bulwer-Lytton
In all things it is better to hope than Despair – Goethe