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The Governor of the Central Bank, Ali Al-Alaq, commented today, Tuesday, on news reports about raising the exchange rate of the dollar to cover the financial deficit gap in the federal budget for 2026.
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Al-Alaq said in a brief press statement: "There is no change in the dollar exchange rate."
He added that "employees' salaries are fully secured."
Economic and political circles in the country are discussing expectations regarding the possibility of adjusting the dollar exchange rate to about 150,000 dinars per 100 dollars, in the event that the new government is formed and the 2026 budget is approved, as part of scenarios aimed at addressing the increasing financial deficit in the federal budget.
These expectations indicate that any change in the exchange rate may fall within the options for financial and economic reform, at a time when the public is awaiting the government’s upcoming decisions and their impact on the local market and price levels.
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The Governor of the Central Bank of Iraq, Ali Al-Alaq, confirmed on Tuesday that there is no intention to reduce the exchange rate of the dinar against the dollar. While denying the existence of any American embargo on Iraqi funds, he indicated that the banking reform file is receiving direct attention from Prime Minister Ali Al-Zubaidi.
Al-Alaq told a number of journalists, as reported by the Iraqi News Agency (INA), that “there is no intention to reduce the exchange rate of the dinar against the dollar, and we will help the government overcome the repercussions of any potential closure of the Strait of Hormuz by discounting treasury bonds and securing salaries,” noting that “the cash reserves are currently being invested in several countries, and there is no American embargo on Iraqi funds.”
He added that "the US Treasury and the Federal Reserve praise the role of the central bank," noting that "the central bank provides dollars to travelers and traders at the official rate."
He explained that "most banks have reached the stage of merger or liquidation, and only one or two banks remain that are unable to continue," stressing that "the banking reform file is receiving direct attention from the Prime Minister, and there is an expected meeting in the coming days with the Federal Reserve and the US Treasury Department."
He confirmed that he "directly oversees the banking reforms file, and the banks concerned and the consulting firm have made significant progress in implementing the reform requirements," noting that "a meeting is expected in the coming days that will bring together Oliver Wyman and the Central Bank of Iraq with the US Federal Reserve and the US Treasury Department."
He added: “The meeting will pave the way for the transition to dealing in other foreign currencies for banks that have completed all the required requirements and procedures,” noting that “there is no truth to what is being said about the Central Bank obstructing banking reforms, and our interest lies in the return of the deprived banks to activity as quickly as possible.”
He concluded by saying: "The media has a major role, and the international community is watching with interest what is being said by parliamentarians, analysts, and local media."
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