Friday, June 11, 2021

WOTS THU JUN 10 21 The price of the dollar will decrease against the Iraqi dinar in the coming days for these reasons

 WOTS THU JUN 10 21  The price of the dollar will decrease against the Iraqi dinar in the coming days for these reasons


These are the articles I discussed on My FX Buddies Podcast

Don’t Expect $100 Oil Anytime Soon. Here’s What’s More Likely to Happen.

I talk about this book being read on Youtube https://www.youtube.com/watch?v=Mu-es6rGfOE

Increase the amount of cash sales from foreign currency

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For the purposes of meeting the demands for foreign currency and for the purpose of achieving monetary policy objectives and ensuring the stability of the exchange rate, the Central Bank of Iraq decided to increase the amount of cash sales of foreign currency to all licensed banks, all exchange companies, and mediation companies selling and buying all foreign currency and to meet them in full, as shown below:
 
The bank's share is                   $ 300,000    per week
- share exchange company category A US   $ 2200000 per week
The share of a Class B   exchange company is $750,000 per week
- share exchange company category the C    70000 dollars a week

The price of the dollar will decrease against the dinar in the coming days for these reasons

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The economist and former director of operations at the Central Bank of Iraq, Mahmoud Dagher, expected, on Thursday, a decrease .in the dollar exchange rate against the dinar, within two or three weeks, if the central bank continues to pump more dollars into local markets.

Dagher said in a television interview (June 10, 2021), that "after the approval of the general budget, the demand for the dollar increased, and the recent ".developments during the past days, especially in the capital, Baghdad, generated pressure on the dollar

He added, "The central bank began a few days ago to pump more dollars into the markets, and if the bank continues to do so, it is expected that the exchange rate will return to its previous levels, and the exchange rate of the hundred-dollar note will stabilize at 147,000 thousand dinars, which is the ".official price for the public

He continued, "The continuation of the dollar exchange rate remaining at the level of 1500 dinars will generate great pressure on local markets and projects and will cause great problems for the state as a whole, and the only beneficiary of this rise are banks and financial companies that buy the ".dollar at a price of 1460 dinars from the Central Bank

Dagher denied rumors about the rise in the exchange rate of the hundred-dollar note to 170,000 dinars in the coming days, stressing that "the Central ".Bank's sale of the dollar through the currency auction will contribute to preventing the exchange rate from rising to these record levels


A statement from the Ministry of Finance in response to a statement attributed to the minister regarding the price of the dollar

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On Thursday, the Ministry of Finance denied a statement attributed to its minister regarding the dollar exchange rate.  

 

And the ministry stated in a statement that “People” received a copy of it, (10 June 2021), that it “denies what was reported by some media and news agencies about a statement attributed to Finance Minister Ali Abdul-Amir Allawi (that the
real value of the $100 against the Iraqi dinar is (300) thousand). Dinars for each ($100).  

The Ministry of Finance confirmed that "some people reported such irresponsible and baseless statements and news aimed at destabilizing the economic situation and confusing public opinion."  

The ministry called for "adopting news and information through the media office of the Ministry of Finance and visiting the website and its pages on social networking sites, Facebook and Twitter."



Below here is the regular daily WOTS "Word on the Street" report:


Baghdad - Kifah Stock Exchange

150,300

Exchange rate (approximate)

149,750

150,750

Erbil / Bursa

150,550

Basra / Bursa

150,300

Mosul / Bursa

150,700

Diyala

150,500


The Markets:
The Asian markets closed mixed NIK up by .34% HSI down by .01% SHANG up by .54%
The UK markets are currently trading in the red mostly from .0% to .19% 2 are in the green from .05% to .29%
Our futures are currently trading mixed  DOW at 34415 up  by .25% SNP at 4211.25 up  by .05% NDX at 13759.5 down  by .32%

Precious Metals:
Gold is red at 1879 Silver is red  at 27.77 Copper is ed at 446 Platinum is red at 1142 
Brent 72 WTI  70   Bitcoin: 37,943 10 yr yield: 1.50

Favorite Currencies Forex Quotes

SymbolBidAskHighLowOpenChangeTime
 USD/IQD  1458.0000  1463.0000 1457.4000 1457.2000 1457.2000  0.0000 23:51
 USD/VND  22947.0000  22952.0000 22941.3500 22936.4200 22936.4200  6.3700 22:52
 USD/CNY  6.3920  6.3940 6.3920 6.3815 6.3866  0.0054 05:47
 USD/KWD  0.3003  0.3013 0.3005 0.3003 0.3005  -0.0002 05:27
 GBP/USD  1.4099  1.4100 1.4124 1.4074 1.4113  -0.0014 05:47
 USD/IRR  42000.0000  42210.0000 42097.5000 42097.5000 42097.5000  0.0000 00:00
 USD/IDR  14269.0000  14276.0000 14285.0000 14223.0000 14278.0000  -9.0000 05:47



Iraqi Articles:

Oil prices fall due to increased US inventories

link 

Oil prices fell on Thursday, as inventory data in the United States, the world's largest oil consumer, showed an increase in gasoline stocks indicating weaker-than-expected demand for fuel at the start of summer, the country's peak auto season.

Brent crude futures were down 55 cents, or 0.76%, at $71.67 a barrel by 05:05 GMT, while US crude futures were down 53 cents, or 0.73%, at $69.43 a barrel.

The Energy Information Administration said yesterday, Wednesday, that US crude oil stocks, which include the Strategic Petroleum Reserve, fell by 5.2 million barrels in the week ending June 4 to 474 million barrels, and the data also showed that demand for gasoline fell to 8.48 million barrels per day in the week ending in the fourth. From June, down from 9.15 million barrels per day compared to the previous week, so the fuel stocks have grown.

In India, fuel demand fell in May to its lowest level since August last year, with a second wave of COVID-19 hampering mobility and curtailing economic activity in the world's third largest oil consumer.

A statement from the Ministry of Finance in response to a statement attributed to the minister regarding the price of the dollar

link

On Thursday, the Ministry of Finance denied a statement attributed to its minister regarding the dollar exchange rate.  

 

And the ministry stated in a statement that “People” received a copy of it, (10 June 2021), that it “denies what was reported by some media and news agencies about a statement attributed to Finance Minister Ali Abdul-Amir Allawi (that the
real value of the $100 against the Iraqi dinar is (300) thousand). Dinars for each ($100).  

The Ministry of Finance confirmed that "some people reported such irresponsible and baseless statements and news aimed at destabilizing the economic situation and confusing public opinion."  

The ministry called for "adopting news and information through the media office of the Ministry of Finance and visiting the website and its pages on social networking sites, Facebook and Twitter."


Official statement: 3 drones target Baghdad International Airport

link

The Security Media Cell said, at dawn on Thursday, that an attack was carried out by 3 drones targeting Baghdad International Airport, while confirming that one of them had been shot down.  

A statement by the cell, which "Nass" received, a copy of at dawn on Thursday (June 10, 2021), said, "After an outlaw group targeted Balad Air Base on Wednesday evening with three missiles without causing human or material losses, it returned again late on Wednesday night. And Baghdad International Airport was targeted by 3 drones, one plane was shot down, and we will provide you with details later regarding the position of the remaining two planes.  

The cell's statement added, "The security forces are determined to pursue all those who try to tamper with the security and stability of Iraqi society, and to bring them to justice to receive their just punishment."  

 

 

On Wednesday evening, the Security Media Cell announced that 3 missiles had landed on Balad Air Base in Salah al-Din Governorate.  

The cell said in a statement, a copy of which was received by Nass, (June 9, 2021), that "three missiles fell on Balad Air Base this evening, Wednesday."    

She added, "No human or material losses were recorded as a result of the bombing."    

The cell did not provide other details about the incident. 




CBI Update:  Just  a note:

They have been having auctions and the ISX has been trading regularly; the sites just don't update in time to put the information in this report, unless it is 
here.   

Click on the link above for the latest update.

The CBI for rate is 1460

The currency auction For June 10th , 2021 total sales amount $ 210,688,224 . 

including   $13,550,000. CASH 

ISX Update:   

www.isx-iq.net/

Shares Traded: not updated for today
Value Traded: not updated for today 

6-9-2021 *** Dinar Guru Update ***  As pointed out by community member and Honorary Guest Guru Ron, the dinar dropped out of compliance with the IMF's 2% rule on 5/26/2021.  The IMF requires the Central Bank of Iraq's official rate and market rate to stay within 2% of each other for 90 days to qualify for Article VIII.  Stay tuned as the guru chime in on the impact, if any, this has on a rate change and the likely hood of additional banks dealing in dinar.  You can always see the CBI official rate and market rate in the left column of this page along with their IMF 2% rule status.  The latest guru posts will continue below...
6-9-2021   Newshound/Intel Guru Mnt Goat  Article:  "PARLIAMENTARY ECONOMY: THE STREET WILL EXPLODE IN THE FACE OF THE GOVERNMENT IF THE DOLLAR CONTINUES TO RISE"   Quote:   "...the Iraqi market has been witnessing great confusion for days due to the instability of the dollar exchange rate..."   ...How long will this devaluation continue? When will they finally delete the zeros and issue the lower denominations? When will they realize this is part of the problem and holding them back.

6-9-2021   Intel Guru Bruce  ...It has been fairly quiet – it is still quiet coming from the banks - and redemption centers... Now one really good source was indicating that we could get notified tomorrow [Wednesday]  afternoon or Thursday morning -  a later source told  us everything is looking good for Thursday – for notifications...Thursday is looking very strong...

6-9-2021   Newshound Guru Pimpy    Do I think the rate is going to stay where it's at?  Hell no it's not.  Not for no damn three years.  Is it possible?  Of course it is but I don't see it.

6-9-2021   Intel Guru MarkZ  [via PDK] ...in Iraq we have seen a number of articles this week that said they need to adjust their value…it is now up to them according to the world bank. So we are waiting for a shoe to drop and we don’t know what that shoe is. We are waiting for a flip or the switch...  I had hoped that by this morning I would be wearing the RV shirt with the golden egg on the front based on conversations I had...yesterday.  I am hitting a stone wall…not getting responses so it could be underway and we just don’t know it yet…right now I am getting dead silence from all my contacts. I am reaching out- no one is responding...I’m going to take this as a great sign.

6-9-2021   Newshound/Intel Guru Walkingstick  [via Frank26]  The White papers have the new exchange rate.  The white papers are the line items/game-plan for both of these reforms [monetary & economic].  The white papers are the when, how and why to do the monetary and economic reforms...this is a report that has been agreed upon by the Fab 4, CBI and Kazemi.  It has been handed over to the World Bank to tell the World Bank this is the economic reform.  This is the monetary reform...The World Bank has the economic reform and monetary reform on paper now and the mechanisms to make it all work...none of these line items are calculated to succeed at a program rate.  None.

6-9-2021   Intel Guru Frank26   Article:  "A second wave of price hikes as the dollar exchange continues to rise". This is not right!  This is pure evil.  And this is what's discouraging you...and people from thinking this is never going to happen.  This is not the CBI.  This is not Kazemi.

6-9-2021   Intel Guru MarkZ   [via PDK]  ...heard they would release the VND dong street rate at about .47 cents…then allow it to float up…but, we would be covered in a contract rate of the low #2 range...[What do you hear on the dinar?]  I still hear the street rate will come out at just under $4…and we may see up to $8 on the contract side…

6-9-2021   Newshound/Intel Guru Mnt Goat  We must all remember that the original reason why they changed out the Saddam notes for the larger 3 zero notes was to combat massive inflation and stabilize the economy. In 2003 it was on the brink of crashing. So now how does it look after almost 17 years of the larger three zero notes? Is it much better than in 2003?  Okay so if you are really a student of Iraqi politics and finance you will learn that  it does not have to be much better, only stable. Stable you say? How can the dinar be stable with the rate changing so much and being devalued?  So maybe the time  have come now to release the lower denominations as the three zero notes have out lived their original purpose? But to turn the currency back on the will still need the oil and gas law.


Catnip's Corner:
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ARTICLE 1 (from PM Kadhimi's website)

At the time this report was submitted, there are no new articles posted on PM Kadhimi's website.

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ARTICLE 2 (from Government of Iraq twitter account)

Watch the speech of PM @MAKadhimi on the national project for distributing land to citizens of eligible categories.

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ARTICLE 3

Economist: Al-Kazemi's government failed to achieve any economic goal it promised
17:22 - 09/06/20210

The economic affairs specialist, Muhammad Attia Al-Saadi, confirmed, on Wednesday, that the government has failed to achieve any reform goal in the country's financial policy.

Al-Saadi said, in a statement to the “Information” agency, that “the auction of selling the currency rose to the same level of sales before raising the price of the dollar,” noting that “these sales settled above two hundred million dollars per day, most of which go to remittances outside Iraq without knowing their true destination.”

He added, "The presence of a number of private banks still dominate the purchase of the dollar and receive profits estimated at 300 million dinars per month."

He pointed out, "The difference in selling between the central bank and the local market prices reached nearly four thousand to one hundred dollars."

The government had submitted a reform paper in which it considered changing the exchange rate would have a positive effect in supporting the local product, stopping the smuggling of hard currency and visiting the Central Bank reserves.

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ARTICLE 4

The World Bank: The gaps in the Iraqi economy need urgent treatment
09 Jun 2021

Baghdad-ALSharqiya June 9: The World Bank confirmed that Iraq is still facing economic crises, although the government has drawn up a policy to improve the country's economic reality by adhering to the reform paper.

The representative of the World Bank in Baghdad, Ramzi Numan, said that the turnout for the elections and the ability to move forward towards a political authority capable of committing to a reform plan that actually begins with rebuilding and addressing the existing gaps and problems...

And about the bank's provision of a loan to Iraq, Numan confirmed that the World Bank is ready to help Iraq if the government asks us to do so

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ARTICLE 5

The World Bank is ready to lend to the Iraqi government again
Wednesday, June 09, 2021 09:35 AM

The World Bank confirmed its readiness to respond to any request submitted by the Iraqi government regarding loans, although it "has not requested a loan yet."

According to the Alsumaria News website, the representative of the bank in Baghdad, Ramzi Noman, said, "Iraq has drawn up a policy to improve the country's economic reality by adhering to the reform white paper, but it is still facing economic crises."

Noman added, "The World Bank is ready to help Iraq if the Iraqi government asks us to do so, as the government so far has its financial and economic plans, and that the World Bank is working with the Iraqi government on a new project to promote vaccines related to the Corona pandemic, and this is what the government requested in this context, and it does not come within the portfolio owned by Iraq.”

He pointed out that "the Iraqi government has not yet requested a loan from the World Bank, and we have all the readiness and are open for direct dialogue and are ready at any moment to cooperate, as we are trusted partners with Iraq, and we are interested in supporting Iraq in the path of stability."

With regard to the World Bank’s role in improving Iraq’s economy, Numan stated that “the Bank is working with the Government of Iraq to implement the reform provisions that it has drawn up, and we are working through all our projects to approach the economic crises that we have previously identified, and all the projects we undertake are in the framework of supporting The reform white paper.

He pointed out that "Iraq has drawn up a policy to improve the country's economic reality by adhering to that reform paper approved by the Council of Ministers, and work has begun to implement its contents," and asked: "Are things going smoothly in this aspect? The answer is no, the crises are too many, because the There is the importance of the political decision that pushes the reform process forward towards economic recovery, and by that we mean the process of consensus between the political parties at the level of the different authorities to make the reform successful.

The representative of the World Bank stated that “Iraq is still facing economic crises, including what the state inherited previously, and some of them at the present time as a result of low oil prices and the Corona pandemic, and all of them are crises that do not end in a day and a night, and the whole world is still suffering from the consequences of the Corona pandemic, so we do not expect The package of structural problems that Iraq has suffered can address them in a short time," he added, adding, "Therefore, we expect that the turnout for the elections and the ability to move forward towards a political authority capable of committing to a reform plan actually begins with rebuilding and addressing existing gaps and problems."

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