🚨🚨🚨🚨🚨🚨🚨🚨🚨🚨🚨🚨🚨🚨
yesterday on Iraqi TV channels said
“the CBI has canceled It’s 20 years controversial auction… and now correspondent banks and exchange currencies companies who adopted the new system and is connected with US banks will do the transactions and people will only be able to deposit Dinar”
🚨🚨 here is how🚨🚨
Iraq’s approach to phasing out the controversial dollar auction and transitioning to a more modernized and compliant system is a significant step. While the Iraqi dinar (IQD) is not yet freely traded on Forex markets, the new system leverages correspondent banking relationships and stricter controls, allowing the country to operate effectively within the global financial system without direct Forex trading.
Key Mechanisms Behind This Transition:
1.Correspondent Banks as Gatekeepers:
•Iraqi banks will partner with correspondent banks (foreign banks with ties to U.S. banks).
•These banks will handle verifications, compliance, and due diligence for dollar transactions, ensuring adherence to international standards, particularly anti-money laundering (AML) and countering the financing of terrorism (CFT).
2.Central Bank’s Role:
•The Central Bank of Iraq (CBI) will enhance dollar balances in the accounts of compliant Iraqi banks.
•By stepping away from direct dollar sales, the CBI shields itself from the risks of misuse (e.g., fraudulent invoicing or dollar smuggling) and potential sanctions.
3. Forex Independence Is Not Immediate:
•Even though the dinar is not traded on Forex markets, the system operates through dollar reserves managed via correspondent banking.
•The credibility and liquidity of this system depend on Iraq maintaining strong dollar reserves and partnerships with international banks.
4.Preparation for Broader Currency Integration:
•This transition lays groundwork for a future where the dinar could potentially move toward Forex trading.
•To reach that stage, Iraq would need greater economic stability, transparent fiscal policies, and market confidence.
https://x.com/majeed66224499/status/1873768782914629988