Tishwash: An economic expert talks about the gold reserve of the Central Bank in London… This is the relationship of its price to the dollar
An economic expert stressed the difficulty of predicting gold prices, specifying “the relationship in gold prices and the dollar.”
Salah Nouri said in a press interview seen by “Taqaddam” that “it is known to economists that the dollar currency and gold represent a reserve for central banks, and among them the Central Bank of Iraq adopts this diversification, and in practical life the relationship between the dollar and gold is an inverse relationship, as whenever there are signs of a decline in the price The dollar in the financial markets tends to invest in gold as a safe haven, and thus the global demand for gold increases and its price rises.”
He stated, “The Central Bank of Iraq owns a good amount of gold and it is stored in London, where the World Gold Council is located. The Central Bank of Iraq depends in determining the value of gold on its price on the London Stock Exchange.”
Nouri pointed out that “it is difficult to predict whether the price of gold will rise or fall because it is linked to the price of the dollar, and the latter is linked to unstable economic and political events in the world.” link
The government is withdrawing its hand from the dollar battle.. The solutions are over and the market is “free” at the exchange rate
Over the past weeks, silence has clearly overwhelmed the relevant authorities and authorities in Iraq at the governmental and banking levels in the face of the continued rise in exchange rates. In contrast to the past months, when the government and the central bank issued a package of quick decisions and measures immediately after the rise in exchange rates, except this time, with a break in… The exchange rate reached record numbers exceeding 160 thousand dinars per 100 dollars. It seems that the relevant authorities have “surrendered” in the battle for the dollar.
This matter can be reached not only from the absence of government and central bank measures that have come to prevent the smuggling of the dollar without taking measures to prevent its rise in the market, as the Central Bank previously issued various packages for this, but even in the statements of the Central Bank Governor, Ali Al-Alaq, and Prime Minister Muhammad Shiaa Al-Sudani, It clearly shows a “tone of surrender” and leaving the exchange rate without intervention, relying only on traders who buy dollars from the central bank and betting that commodity prices will not rise depending on these traders.
For example, the Governor of the Central Bank, Ali Al-Alaq, said last week during a session of the Ministerial Council for the Economy, that “the exchange rate depends mainly on imports and not on local production, and that the exchange rate in Iraq has peculiarities because it is linked to the price of oil as it is the largest source of providing hard currency,” noting. He pointed out that “many factors affect the exchange rate, the most important of which is the leakage of the dollar to neighboring countries and internal dealing in local markets in a currency other than the national currency, as well as the lack of complete control over ports and smuggling.”
Which means that the exchange rate will continue to rise as long as there is import, uncontrolled outlets, and oil pricing in dollars, as all of these conditions are sustainable and cannot be changed.
For his part, Al-Sudani said in a press conference yesterday, Tuesday: “We support some banks that we trust are good and have achieved success, in order to be part of the solution to the dollar crisis,” adding, “One of the problems we face is that Iraqi law does not contain strong penalties.” And strict measures against those who are arrested as speculators in the dollar exchange rate.”
It is another indication that it is not possible to do anything, whether for speculators or for the rising dollar prices, in clear statements that are consistent with the Iraqi authorities’ tendency to leave the market dollar price file without interference, that is, more like a flotation.
This is confirmed by economic affairs researcher Haider Al-Sheikh, today, Wednesday (October 25, 2023), stressing the difficulty of ending the crisis of the rise of the dollar in Iraq.
The sheikh told “Baghdad Today”, “The crisis of the rise in the dollar exchange rate does not end, and the central bank has become unable to control the market, and some banks, exchange companies, and merchants have manipulated the price of the dollar. ”
He added, “This is because the Central Bank imposed any sanctions on banks, exchange companies, and merchants on the price of the dollar, which manipulate the exchange rate. Therefore, the dollar exchange rate will stabilize at 165 during the next two days, and will continue to rise further during the coming days. ”
He pointed out that “there are problems in banking reform and major challenges facing the government, and the current dollar exchange rate in the markets is the price of currency speculators .”
He added, “There are entities, private banks, merchants, and owners of banking companies who are seeking to keep the dollar exchange rate at the current price .” link
Frank26 [Iraq boots-on-the-ground report] FIREFLY: Sudani sent a government spokesman…we know and trust him…He comes on Iraqi Channel One and says Sudani wants you to know the dinar will be stronger than the dollar…He’s saying it’s currently not. FRANK: No kidding! FIREFLY: They are showing clips of past video speeches of Sudani when he says the dinar will be a pillar of the Middle East and…is going to help and fix the global financial world. This is very good for the monetary reform… Oh, yes, this is exactly what we are looking for. [Post 1 of 2….stay tuned]
Frank26 [Iraq boots-on-the-ground report continued] FRANK: Sudani sent his people…to tell you Iraqi citizens your currency, NOT your 3-zero notes, but your new national currency is going to be stronger than the USD. Hell yes! That’s the whole purpose…This is fantastic because they are opening up…These guys are busting open the doors and talking to you… [Post 2 of 2]
LIVE! Debt Market DANGER ZONE… Things Could Get REAL UGLY VERY FAST.
Greg Mannarino: 10-25-2023
Global Financial System is in Serious Trouble, Fed is Powerless: Lynette Zang
The Jay Martin show: 10-24-2023
Lynette Zang points out that infinitely expanding government deficits, political polarization, and the expansion of global conflict are all signs that our current financial system is headed for a historical crisis that threatens to evaporate wealth.
01:53 Long-Term Treasury Market
04:40 Market Dysfunction
08:17 Foundation of the System in Danger
12:59 Reset of the System
18:15 Expansion of Global Conflict
21:37 Ballooning Debt
24:28 Reasons of Powers-That-Be
27:48 Who is the Next Global Superpower?
37:35 Challenges Facing America
41:49 IMF SDR System
46:41 End of the Gold Standard
50:15 He Who Holds the Gold, Makes the Rules