Iraq Economic News and Points to Ponder Wednesday Evening 1-1-25
Iraq Officially Stops Working On The Electronic Platform.. Will We Witness A Crazy Rise In The Dollar?
Economy 2025-01-01 | 13,838 views Alsumaria News – Today, Wednesday, the Central Bank of Iraq announced the suspension of the electronic platform mechanisms related to selling the dollar.
Governor of the Central Bank, Ammar Khalaf, said Deputy in a statement to the official agency, followed by Alsumaria News, that “the working mechanism of the electronic platform related to foreign transfers has stopped working on it, but financing foreign trade continues through correspondent banks according to various mechanisms that are equivalent to what is done in countries of the world.”
He pointed out, "Continuing to grant dollars to travelers at airports according to the approved mechanism, which is the best in restricting the traveler's access to dollars."
Dinar’s Exchange Rate
This decision comes as part of a series of reforms aimed at facilitating financial procedures and stimulating the economy, but at the same time it raises questions about its potential impact on the stability of the Iraqi against the US dollar .
The concept of the electronic platform and its role in currency stability
The electronic platform for money transfers is a mechanism that has been adopted to ensure the regulation of foreign cash transfers and limit manipulation of exchange rates.
The platform works to document commercial operations and money transfers by banks and financial companies, ensuring more effective control over hard currency flows inside and outside the country.
This platform has greatly contributed to reducing the gap between the official exchange rate and the black market rate, as it has prevented many money laundering and smuggling operations.
However, with the decision to cancel this platform, questions arise about how to organize the market and manage transfers.
The effect of canceling the platform on the price of the dollar
1- Increased demand for the dollar on the black market.
With the absence of an electronic platform, the demand for the dollar on the black market may increase as a result of the absence of control mechanisms, which leads to an increase in exchange rates outside official channels.
2- Weak confidence in the dinar, as
canceling the platform may weaken confidence in the Iraqi dinar, especially if effective alternatives are not developed to ensure market stability.
Weak confidence means that citizens and investors may withdraw their money in dinars and convert them to the dollar as a safe haven.
3- The impact of smuggling and money laundering, as
canceling the platform could eliminate strict control over dollar smuggling operations and smuggling and money laundering practices may expand, which would increase the demand for the dollar and affect the reserves of the Central Bank. greatly
4- The market’s dependence on supply and demand.
With the cancellation of the platform, the currency market may become more affected by direct supply and demand.
This may lead to severe fluctuations in the exchange rate, especially under unstable economic and political conditions.
Possibilities of facing a rise in the dollar
1- Activating alternative oversight tools
The government and the central bank can rely on other regulatory tools, such as strengthening the role of local banks and setting strict restrictions on foreign transfers.
2- Increase dollar reserves
The central bank may resort to pumping more dollars into the market to meet demand and maintain price stability.
3- Promoting local investments
By encouraging investment and reducing dependence on foreign currencies, pressure on the dollar can be eased and the dinar strengthened.
4-Cooperation with international organizations
The government may cooperate with international institutions such as the Monetary Fund and the World Bank to develop economic plans that contribute to market stability.
The decision to cancel the electronic platform for financial transfers represents a major challenge to the Iraqi economy, and may have direct effects on the exchange rate of the dollar against the dinar.
To achieve economic stability in the next stage, it will be necessary to take proactive measures to compensate for the absence of the platform and ensure continuity of supervision of the financial market.
The balance between facilitating economic procedures and protecting the national currency will be the decisive factor in determining the success of this decision and its effects on citizens and investors.
https://www.alsumaria.tv/news/economy/511533/العراق-يوقف-رسميا-العمل-بالمنصة-الالكترونية-هل-سنشهد-ارتفاعا-جنونيا-با
The Central Bank Announces A Major Achievement In Foreign Transfers
January 01, 2025 The Central Bank of Iraq announces its success in adhering to its program related to the transition from external transfers through the electronic platform to the work of Iraqi banks through their external correspondent banks.
This transition took place through stages that the external transfer process went through, starting with the window for buying and selling foreign currency and moving to the stage of the electronic platform for external transfers.
The process of gradually enhancing the balances ended during the year 2024 and was fully achieved in the last week of this year.
This achievement is considered a radical transformation in line with the best international standards and practices to achieve a stable and secure financial system, and
this work received international support and praise throughout the stages of its implementation.
The new transfer methodology comes in line with international practices followed in this Field, which separate the responsibilities and duties of the central Bank from the obligations, responsibilities and role of commercial banks. From this standpoint, the
Central Bank of Iraq will continue to enhance the balances of Iraqi banks in its correspondent banks in
US dollars, along with a group of other currencies. Such as (the
Indian rupee, the
Chinese yuan, the
euro, the
Emirati dirham, the
Saudi riyal, and the
Jordanian dinar), and
this achievement strengthened the The efficiency and safety of external transfer operations, and
their transition to the method followed in all countries of the world,
which will make Iraq enter a new stage in its financial relations regionally and internationally and strengthen the government’s tendencies to expand its economic relations and enhance investment opportunities.
The efforts in this important achievement came through a series of continuous detailed technical procedures and agreements, and great support from the Iraqi government, and
the bank will continue to follow modern methods in managing monetary policy in Iraq, in a way that is consistent with its basic role in achieving financial stability and its position among banks.
Centralization in the region and the world, which will reflect positively on the confidence and support of Iraq’s external financial sector and international financial and economic organizations.
Through this, the management of the Central Bank of Iraq takes this important opportunity to express its thanks and appreciation to everyone who contributed to achieving this great achievement, the first of whom is the
staff of the Central Bank of Iraq, the
banking sector in Iraq, and
all international partners.
In conclusion, the Central Bank of Iraq shows its full readiness to support all Iraqi banks that are working to develop and enhance their performance in the field of governance, compliance, and
combating money laundering in a way that reflects positively on the confidence of international and regional banks in them to contribute to strengthening the Iraqi banking system and the Iraqi economy in general.
Happy new year. Central Bank of Iraq Media office January 1, 2025 https://cbi.iq/news/view/2755
Dollar Falls As Markets Close In Baghdad
01/01/2025 Mawazine News – Economy The dollar exchange rate against the dinar fell on Wednesday evening in Baghdad markets.
The dollar price also fell with the closing of the Al-Kifah and Al-Harithiya stock exchanges to record 151,500 dinars per 100 dollars, while this morning it recorded 151,700 dinars per 100 dollars.
The selling prices were recorded in exchange shops in local markets in Baghdad, where the selling price reached 152,500 Iraqi dinars per 100 dollars, while the purchase price reached 150,500 dinars per 100 dollars. https://www.mawazin.net/Details.aspx?jimare=258126
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