Economist: There are no changes in the government program, and the official dollar rate will continue for 3 years
link oh boy!
Antoine told {Al-Furat News} that: “The official exchange rates for the dollar are stable now, and once the budget allocations are released, the unofficial rates will be affected by the parallel rate of the dollar.”
He added, "The official prices will continue for three years, in order to be consistent with the tripartite budget and the established government program."
Antoine continued, "There are no changes in the government program and implementation is continuing," expecting that "the parallel price may decrease due to the unjustified rise in speculation in the local market with the dialogue countries, which play a negative role in exporting its products against the dollar."
Foreign currency deals bolster Iraqi banks amid no-confidence bid against central bank governor
ICB recently decided that Iraqi private banks can import foreign currencies via commercial flights.
Iraq's Central Bank (ICB) struck deals with foreign nations to support Iraqi private banks in foreign currencies, coinciding with lawmakers' no-confidence efforts against ICB's governor amid currency pressure from the US dollar.
ICB and US officials have reached a deal to strengthen the reserves of 10 Iraqi banks with the US dollar after detailed discussions in Abu Dhabi, the state-run Iraqi News Agency reported on Sunday, 12 November, citing governmental sources within the meetings.
"After recent discussions between the Iraqi Central Bank and American representatives, ten banks can now strengthen their reserves in US dollars—five through Citi Bank and five via JP Morgan," INA reported.
Iraq imports almost 95 of its needs through foreign trade using foreign currencies.
"Furthermore, the number of banks allowed to enhance their reserves in the Chinese Yuan through the Singapore Development Bank will increase to 13 banks. Two banks have already fortified their accounts in Indian Rupees with the Singapore Development Bank," the agency added.
It also clarified that several developments have unfolded in banking collaboration between Iraq and other countries; notably, issues with rejected transfers have been resolved. It also revealed a promising mechanism to boost balances in Emirati Dirhams for Iraqi banks is "imminent".
ICB also makes serious negotiations to enhance Iraqi bank balances in Euros, and more banks are reinforcing their balances in the Chinese Yuan and Indian Rupees for Iraqi banks, signalling a strategic move to finance imports, especially in pharmaceuticals and food items.
ICB recently decided that Iraqi private banks can import foreign currencies via commercial flights, a controversial step that backfired on its governor, as Iraqi lawmakers and legal experts considered it unconstitutional.
Al-Alaq is facing a parliamentary motion to remove him from his position due to the decreasing value of the Iraqi dinar in exchange for the US dollar in the parallel markets.
Since assuming office, economic experts believe that the ICB governor has failed to resolve the devaluation of the ID in exchange for the dollar crisis despite measures taken since his appointment.
Iraq's cabinet approved a currency revaluation on 7 February and set the exchange rate at 1,300 dinars per US dollar. The Central Bank of Iraq (CBI) also imposed several measures to boost the dinar and prevent the outflow of US dollars outside the country, especially to Iran and Syria, which are under US sanctions.
Despite the official rate of the dinar, a US dollar still sold at around 1,620 in the currency exchange markets. The sharp drop in the dinar's value plunged local markets into further recession, with prices of every essential goods soaring daily.
this is the easiest to understand of the multi currencies
Multiple bilateral agreements.. Iraq enhances its bank balances of dollars, euros, and yuan
The official agency quoted the source, whose identity was not revealed, saying, “Intensive meetings took place in Abu Dhabi in the past few days between a delegation from the Central Bank of Iraq and the American side responsible for foreign transfer operations to cover imports. The negotiations culminated in a number of decisions and mechanisms that contribute to Facilitating procedures for external transfers related to imports through the foreign currency sales window.”
The source added, “It was agreed to enhance the advance balance of five Iraqi banks in their dollar accounts with Jordanian banks and transfers via (JP Morgan),” noting, “The problems related to the rejected transfers were resolved, and it was agreed that the rejection of transfers should be based on strong reasons.” ".
The source continued, "There were also other meetings that brought together one of the Emirati banks, the Central Bank of Iraq, and the American side, to implement the mechanism for enhancing balances in the Emirati dirham for Iraqi banks (UAE Dirham pilot)," indicating, "Things are going well in this regard, as all matters have been resolved." Technical details related to the matter, and it is expected that the mechanism for enhancing balances in the UAE dirham will begin within the next few days.”
The source also confirmed, “There are serious negotiations that have reached their final stages to enhance the balances of some Iraqi banks in euros with UBAF Bank to finance trade with the European Union,” noting, “An increase in the number of banks whose balances in Chinese yuan are enhanced through the Development Bank.” Singaporean.
He added, "Accounts have been opened for 6 Iraqi banks in this bank, and during the coming period 7 more banks will be added to finance Iraqi trade and imports from China, as these imports are estimated at about 12 billion dollars annually."
The source concluded by saying, “We have also begun opening bank accounts in the Indian rupee for a number of Iraqi banks at the same correspondent, the Singapore Development Bank (New Delhi branch), and operations to strengthen the balance of two Iraqi banks have actually been completed as a first stage, and it is expected that this mechanism will contribute to financing Iraq’s imports from India.” Especially medicines and foodstuffs, which are estimated at about $3 billion.”
No compromise on Jordanian Dinar exchange rate
The Central Bank of Jordan (CBJ) and the international monetary fund (IMF) agreed on the current exchange rate policy, pegging the dinar to the dollar, considering it successful and beneficial for the Jordanian economy, Hala News reported.
Sharkas emphasized the substantial reserves, the competent management of monetary policy, and the positive impact on achieving monetary stability, curbing inflation, and preserving the dinar's purchasing power.
What is the importance of the recent Iraqi-American agreement in the UAE regarding the dollar?
Today, Sunday (November 12, 2023), economic affairs researcher Nasser Al-Kanani revealed the importance of the Iraqi-American negotiations in the Emirates regarding the recent agreement on dollar transfer mechanisms .
Al-Kinani said to “Baghdad Today” that “the recent dialogues between the Central Bank of Iraq and the US Federal Reserve, in the UAE, are a very important step in order to find real solutions to the dollar crisis that Iraq has been going through for nearly a year, and for which no solutions have been found.” As the dollar exchange rate continues to rise .”
He added, "Enhancing the balances of some Iraqi banks in dollars directly by (JP Morgan Bank) is an important step that will alleviate the scarcity of dollars in banks and the market, which was the reason for the recent rise in the exchange rate in the parallel market. We also believe that implementing what was stated in the agreement The Iraqi-American latest regarding commercial transactions in the UAE dirham and the Chinese yuan will prompt a reduction in the dollar exchange rate in the coming days .”
Earlier, reports revealed an agreement between the Central Bank of Iraq and the US Federal Bank during a meeting in the Emirates, to add new banks as part of the work of enhancing foreign remittances.
According to the agreement, the number of banks capable of enhancing balances and transferring currencies abroad became 10 instead of 5 banks, and enhancing their balances in dollars in advance, in addition to strengthening a number of banks in Chinese yuan or the UAE dirham and the Indian rupee, which allows foreign trade to be easily enhanced and financed with dollars.
Parliamentary Finance reveals to “Al-Ma’louma” the details of the discussions between Iraq and America regarding the dollar
Today, Monday, the Parliamentary Finance Committee revealed the details of the discussions between Iraq and America regarding the price of the dollar against the dinar, while indicating that the Central Bank of Iraq has developed solutions to control the continuous rise in exchange rates.
A member of the Finance Committee, Moeen Al-Kazemi, said in an interview with Al-Maalomah, that “the Central Bank is making intensive efforts through its discussions with the US Federal Reserve to ease restrictions on Iraqi banks, as well as developing practical solutions to liberalize the Iraqi currency by opening outlets in most countries of the world for dealing.” In various foreign currencies instead of the dollar.
He added, "The restrictions imposed by the US Federal Reserve and the failure to release Iraqi funds in dollars are behind political reasons for the purpose of its dominance over countries of the world, including Iraq."
He pointed out that "Iraq receives approximately $10 billion monthly from selling oil, but it is deposited in the US Federal Reserve, which is constantly trying to obstruct its release."
Al-Kadhimi continued, "The Central Bank has taken new measures by opening multiple outlets in countries around the world that deal in the currencies of the Chinese yuan, the Indian rupee, the European euro, and the Emirati dirham."
It is noteworthy that the US sanctions are raising a wave of concern among the Iraqis, especially since all government and central bank measures have not succeeded in bringing the parallel exchange rate closer to the official rate.
Telecommunications announces the launch of the smart savings card project in Iraq
link get off the paper and into the cards smh
The Ministry of Communications announced, on Monday, the launch of the smart savings card project instead of paper savings books, in cooperation with the international smart card company (Key Card), through post offices spread across Baghdad and all governorates .
A statement from the ministry, seen by Al-Eqtisad News, stated that “the project includes converting the paper postal book into the electronic system, automating postal services, and issuing a smart card. Therefore, the General Post and Savings Company calls on customers who own savings accounts to visit the following post offices (Baghdad Post Office in Al-Salihiya). - Al-Intisar Post Office in Al-I'lam District - Al-Hurriya Post Office in Al-Hurriya City - Aden Post Office in Aden Square - Al-Dora Post Office in Al-Dora - Al-Rasheed Post Office in Al-Sinak Dalat - Al-Dobat Post Office in Zayouna - New Baghdad Post Office in the New Baghdad District- July 14 Post Office in Talbieh - Palestine Post Office on Palestine Street) to replace their notebooks with the new savings card, bringing with them identification documents to update their personal data, and to switch to electronic dealings and enjoy postal services using the latest international technologies. ”
The Ministry would like to “notify the savings subscribers of the General Postal and Savings Company that it will announce the remaining 266 post offices successively
What do you know about trading companies? How do you determine its trustworthiness?
lnnk this was in Iraq's news
he foreign exchange market, known as Forex, is a global market characterized by a decentralized market that includes the trading of major currencies such as the dollar, the euro, the British pound, and emerging market currencies such as the Turkish lira and the South African rand. The trading process is carried out through brokerage companies, which have become incredibly widespread these days thanks to the availability of easy technological solutions and advanced communication tools. The main role of Forex brokers is to facilitate retail traders' access to the Forex market and execute their trades via liquidity providers.
While we have witnessed in recent years an amazing proliferation of brokerage companies, their desire is to seize a portion of the market in which the trading volume is estimated in the billions. We find that among these companies seek to operate under a legal umbrella in accordance with specific rules in this market, in the context of seeking to obtain an additional advantage for customers.
The importance of brokerage companies operating in the Forex field obtaining a legal license
Licensing ensures that the brokerage company operates within the legal framework set by the regulatory authorities in the country or region in which it provides its services. Primarily helping the company avoid legal problems and penalties resulting from violating the rules and regulations of trading in the market. At the same time, the license ensures that the brokerage company adheres to specific standards of financial and operational behavior, which guarantee the safety of clients’ funds. For example, the regulatory authorities, which we will detail, require basic conditions for all brokerage companies, most notably the segregation of client funds, maintaining sufficient capital, and implementing... Strong risk management practices, as well as undergoing periodic audits. This helps the company protect its reputation and enhance trust among its customers and partners.
At the same time, the license enables the brokerage company to expand its market reach and its clients by reaching different jurisdictions that require a valid license to operate in the Forex market. This helps the company increase its revenues and profits by offering its services on a broader and more diversified scale. Licensing also facilitates the establishment of banking relationships necessary for the smooth and efficient operation of the brokerage company, especially since most financial institutions and liquidity providers prefer to work with licensed brokers, which ensures their credibility. This helps the company secure better terms and conditions for its transactions and banking services.
Trading through reliable and licensed trading companies
Although currency trading in the Middle East is not a new activity, it is a market that is expanding steadily, as many new traders enter the field periodically. In this regard, the basic advice is limited to learning before starting trading, and when making a trading decision, trading should only be done through trusted trading companies.
Forex brokers regulators
There are many authorities competent to regulate the work and oversight of brokerage companies operating in the field of currency and stock trading. Each regulatory body has a limited geographical scope, and the rules governing each body differ from the other.
Some of the regulatory bodies for Forex brokerage companies in the world are at the forefront as an important guarantee for any company that falls under its banner. The most prominent of these bodies is the Financial Conduct Authority (FCA) in the United Kingdom. Its roles vary, supervising the conduct and precautionary standards of a large number of financial companies in the Kingdom. It acts as a safeguard for the financial system of financial companies operating in the country, imposing penalties and compensation on companies that flout the rules.
The Cyprus Securities and Exchange Commission (CySEC) is in an advanced position as a regulatory and supervisory body for many Forex brokers, as it has a resonant name with a good reputation for traders looking for licensed brokerage companies, while at the same time representing an attraction for these companies due to low taxes and favorable regulations. The most prominent rules by which the Cyprus Commission obligates Forex companies to adhere to the MiFID II directives, which set standards for investor protection, market transparency and financial stability in the European Union. The Cyprus Securities and Exchange Commission also operates a compensation fund that covers clients up to €20,000 in the event of a regulated company failure.
Regulating Forex Brokers in the Middle East
Dubai is at the forefront as a destination for Forex companies in the Middle East and the Arab world, with the authorities in Dubai interested in developing laws to attract investment companies in all fields, as the emirate seeks to maintain its current leadership as a major financial center in the Middle East region. In the UAE, we find the Dubai Financial Services Authority (DFSA) as the main regulatory body for Forex brokers in the Middle East, as it supervises the activity of financial companies in the Dubai International Financial Center. With the aim of strengthening financial markets and adding a kind of stability and transparency.
The DFSA sets standards for licensing, conduct, capital, risk management and reporting, and administers a compensation fund that covers clients up to $250,000 in the event of a regulated company going bankrupt.
Also located in Dubai is the Securities and Commodities Authority (SCA) which is the main regulatory body for forex brokers in the UAE, with the exception of the Dubai International Financial Centre. Aiming to protect investors, the SCA also administers the Investor Protection Fund, which covers clients up to AED 500,000 in the event of a regulated company going bankrupt.
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