Low trust in banking keeps Iraqis from depositing money: PM advisor
ERBIL, Kurdistan Region – Low trust in Iraq’s banking institutions has prevented residents from depositing their cash into their bank accounts with an overwhelming 80 percent of cash being kept in households, an advisor to the Iraqi prime minister said on Wednesday.
“Because people’s confidence in dealing with the banking institutions is very weak, only about 20 percent of their money is kept in banks and the rest is retained by the residents. This is called currency leakage, and it is a widespread phenomenon in the Iraqi economy,” Mazhar Mohammed Salih, the financial advisor to the Iraqi prime minister, told Rudaw’s Nahro Mohammed.
“People keep about 80 percent of their cash at home instead of depositing it in the banks,” he added.
As the Iraqi dinar continues to lose value against the US dollar despite ongoing efforts from the federal government to control the instability, many banks across Iraq have started preventing customers from withdrawing their money in dollars and only allowing them to withdraw in Iraqi dinars at the value set in the budget.
The move has drawn a lot of controversy and public outcry, as the value of the Iraqi dinar against the US dollar in the country’s currency markets continues be much lower than the one set out in the budget.
Salih, however, praised Iraq’s high foreign exchange reserves and said they contribute positively towards the Iraqi dinar.
“Iraq’s foreign exchange reserves are the highest in its history, exceeding $100 billion, which supports the Iraqi dinar,” he said.
The Central Bank of Iraq (CBI) has set the dinar-dollar exchange rate at 1,310 dinars per $1, while the market value with currency exchange vendors is approaching 1,600 dinars per dollar.
Earlier in October, the CBI warned banks across the country against rejecting customers’ requests to withdraw their cash in dollars, saying it will take necessary measures against banks refusing such demands.
Last month, the CBI announced that all the transactions inside Iraq would be made using Iraqi dinars starting in 2024.
The 2023, 2024, and 2025 Iraqi federal budget, passed in June, set the exchange rate of $1 to 1,300 Iraqi dinars. The ongoing smuggling has prevented the suggested value from being reached, with the value of the dollar currently sitting at around 1,600 IQD in the currency markets of Iraq and the Kurdistan Region.
The depreciation of the Iraqi dinar has been attributed to the smuggling of dollars out of the country, mainly to neighboring Iran.
The US in July banned transactions with 14 Iraqi banks for allegedly violating its rules. The move further dropped the value of the Iraqi currency.
Emphasizing the expansion of the geographical area of POS points of sale.. The Governor of the Central Bank discusses supporting electronic payment
His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, chaired a meeting that included representatives of this bank and a number of electronic payment companies operating in Iraq, in which they discussed ways to follow up on the project of spreading point-of-sale (POS) devices and digital transformation.
The meeting reviewed the most important challenges facing the process of spreading point-of-sale (POS) devices and the importance of expanding the geographical area to cover all parts of the country, as well as solving the problems facing the use of bank cards and settling their amounts through the national exchange inside and outside Iraq.
The Governor stressed that the spread of point-of-sale devices has positive effects on the Iraqi street and that it is important to urge citizens to use bank cards instead of cash, and that it should be a priority for all electronic payment companies and banks, stressing the need to develop appropriate marketing plans to support digital financial inclusion in Iraq.
Central Bank of Iraq Media Office, October 26, 2023
On the WTO site...you'll come to the ITC (International Trade Center) help system. Click on that...and type in Iraq...You can see they're set up on the WTO's website. Why that is important is because...these guys are already Hooked up. They're already set up. They have code numbers already today at the WTO. Even thought they're not international completely yet, they haven't published ascension, you can see though they're ready to go. It's really phenomenal.
This gentleman is fascinating. He's giving Al-Sudani some kudos but he's also poking him in the eye a little bit because if you remember Al-Sudani said and confirmed to his people more than once that the dinar is stronger than the dollar and this guy gives a reality check, well it's not today.
Article quote "The Sudanese confirm that the dinar is stronger than the dollar but the reality is currently the opposite." He's not wrong at this moment in time but the plan is to be [stronger]...
Article quote: "...the government's plan included establishing 1,600 project...The budget for ongoing project will reach the government in the coming days..."
That's the 2023, 24, 25 budget we've been talking about...they haven't funded anything and they haven't shown any money to be spent...but here he's saying, "The budget for ongoing projects will reach the governance in the coming days..." They've been paying for all this stuff in dollars. The dollar is going to end...by January.
The Dance of Currencies: Iraqi Dinar Against the US Dollar in Kurdistan
The market stalls of the Kurdistan region in Iraq are bustling with activity. Amid the cacophony, the quiet yet persistent hum of currency exchange can be discerned. Today, the Iraq dinar stands at 161,250 against 100 US dollars, a testament to the relentless dance of global economics.
The Unseen Puppeteers: Politics and Economics
The dinar’s journey is a narrative of resilience. From the onslaught of wars to the undulations of political instability, the currency has endured. Its current stability, despite minor fluctuations against the US dollar, is a testament to Iraq’s ongoing economic recovery.
However, it’s vital to appreciate the varying regional dynamics within the country. The exchange rate reported today is specific to the Kurdistan region. Elsewhere, in the labyrinthine markets of Baghdad or the sprawling bazaars of Basra, the story could be different. It’s a reminder of how economic landscapes can diverge within the same national frontiers.
Exchange rates dance to the tune of the international forex market, a global platform where currencies pirouette in a ballet of buying and selling. Factors such as supply-demand dynamics, economic indicators, geopolitical events, and government policies choreograph this dance.
A nation’s currency exchange rate is not merely a number; it’s a reflection of its economic health. It influences the cost of imports and exports, shaping the purchasing power of individuals and businesses. A strong exchange rate can make imports cheaper and exports more expensive, and vice versa.
The exchange rate between the Iraqi dinar and the US dollar is more than an economic indicator. It’s a beacon for those involved in international trade and investment. It holds significance for those sending or receiving remittances, and for travelers who swap currencies.
The current exchange rate implies that 1 US dollar equals 1612.50 Iraqi dinars. Thus, converting 100 US dollars would yield 161,250 Iraqi dinars. However, this rate is not static. Like a pendulum, it swings throughout the day, reflecting the dynamism of the market.
In conclusion, understanding the exchange rate is not merely about currency conversion. It’s about deciphering the economic narrative of a nation, its global standing, and the implications for its people. Today, as the dinar stands at 161,250 against 100 US dollars in the Kurdistan region, it tells a tale of economic resilience in the face of adversity.
THE GOVERNMENT IS WITHDRAWING ITS HAND FROM THE DOLLAR BATTLE.. THE SOLUTIONS ARE OVER AND THE MARKET IS “FREE” AT THE EXCHANGE RATE
Over the past weeks, silence has clearly overwhelmed the relevant authorities and authorities in Iraq at the governmental and banking levels in the face of the continued rise in exchange rates. In contrast to the past months, when the government and the central bank issued a package of quick decisions and measures immediately after the rise in exchange rates, except this time, with a break in… The exchange rate reached record numbers exceeding 160 thousand dinars per 100 dollars. It seems that the relevant authorities have “surrendered” in the battle for the dollar.
This matter can be reached not only from the absence of government and central bank measures that have come to prevent the smuggling of the dollar without taking measures to prevent its rise in the market
, as the Central Bank previously issued various packages for this, but even in the statements of the Central Bank Governor, Ali Al-Alaq, and Prime Minister Muhammad Shiaa Al-Sudani, It clearly shows a “tone of surrender” and leaving the exchange rate without intervention, relying only on traders who buy dollars from the central bank and betting that commodity prices will not rise depending on these traders.
For example, the Governor of the Central Bank, Ali Al-Alaq, said last week during a session of the Ministerial Council for the Economy, that “the exchange rate depends mainly on imports and not on local production, and that the exchange rate in Iraq has peculiarities because it is linked to the price of oil as it is the largest source of providing hard currency,” noting. He pointed out that “many factors affect the exchange rate, the most important of which is the leakage of the dollar to neighboring countries and internal dealing in local markets in a currency other than the national currency, as well as the lack of complete control over ports and smuggling.”
Which means that the exchange rate will continue to rise as long as there is import, uncontrolled outlets, and oil pricing in dollars, as all of these conditions are sustainable and cannot be changed.
For his part, Al-Sudani said in a press conference yesterday, Tuesday: “We support some banks that we trust are good and have achieved success, in order to be part of the solution to the dollar crisis,” adding, “One of the problems we face is that Iraqi law does not contain strong penalties.” And strict measures against those who are arrested as speculators in the dollar exchange rate.”
It is another indication that it is not possible to do anything, whether for speculators or for the rising dollar prices, in clear statements that are consistent with the Iraqi authorities’ tendency to leave the market dollar price file without interference, that is, more like a flotation.
This is confirmed by economic affairs researcher Haider Al-Sheikh, today, Wednesday (October 25, 2023), stressing the difficulty of ending the crisis of the rise of the dollar in Iraq.
The sheikh told “Baghdad Today”, “The crisis of the rise in the dollar exchange rate does not end, and the central bank has become unable to control the market, and some banks, exchange companies, and merchants have manipulated the price of the dollar. ” He added, “This is because the Central Bank imposed any sanctions on banks, exchange companies, and merchants on the price of the dollar, which manipulate the exchange rate. Therefore, the dollar exchange rate will stabilize at 165 during the next two days, and will continue to rise further during the coming days. “
He pointed out that “there are problems in banking reform and major challenges facing the government, and the current dollar exchange rate in the markets is the price of currency speculators .”He added, “There are entities, private banks, merchants, and owners of banking companies who are seeking to keep the dollar exchange rate at the current price .”
U.S. Praises Security Cooperation with Iraq after Talks with Sudani, as Iraqi PM Treads Carefully
WASHINGTON DC, United States (Kurdistan 24) – U.S. officials praised Iraq’s security cooperation, following official conversations with Prime Minister Mohammed Shia al-Sudani. Sudani is treading carefully between Iraq’s partnership with Washington, including its dependence on U.S. forces to assist in the fight against ISIS, and the pressure that Iran exerts on his government, particularly through militias that Tehran supports.
Iran has been a vociferous backer of Hamas in its war with Israel, and pro-Iranian militias throughout the region have adopted a similar posture. Indeed, as The Wall Street Journal warned on Wednesday, “The conflict risks spilling over into a regional confrontation with Iran and the web of anti-Israel Islamist militant groups that it backs, which spreads from Yemen and Iraq to Syria and Lebanon.”
U.S. Discussions with Sudani
On Saturday, following four successive days of strikes aimed at U.S. forces in Iraq and Syria, the Iraqi Prime Minister publicly affirmed his government’s commitment to protect U.S. troops in Iraq.
Later that day, two senior U.S. officials spoke with Sudani. One was Secretary of Defense Lloyd Austin, who thanked Sudani “for today’s announcement affirming his government’s full commitment to protect U.S. forces who are in Iraq at the invitation of the Iraqi government,” according to a U.S. summary of their conversation.
Austin noted that U.S. and Coalition forces “remain in Iraq in support of the Iraqi Security Forces to achieve the enduring defeat of ISIS,” the U.S. statement explained.
It concluded, explaining that Austin had also “conveyed the importance of protecting U.S. and Global Coalition personnel and advisors, convoys, and diplomatic facilities.”
U.S. Secretary of State Antony Blinken had a similar conversation with Sudani on Saturday, but it went further in outlining areas of shared concern between the U.S and Iraq.
Blinken welcomed the Iraqi government's “condemnation of the recent attacks and threats to U.S. and Coalition personnel in Iraq,” and he urged Sudani “to pursue those behind the attacks and fulfill Iraq’s commitment to maintain the security at these installations,” according to a U.S. summary of their discussion.
The two men also discussed the war between Israel and Hamas, and both affirmed their intent to coordinate to address the deteriorating humanitarian situation in Gaza.
The U.S. summary concluded by affirming that they had “renewed their commitment to continue strengthening the U.S.-Iraq 360-degree partnership and reaffirmed the principles in the bilateral Strategic Framework Agreement,” which was initially concluded in 2008 in the last days of the George W. Bush administration and reaffirmed by subsequent presidents.
On Wednesday, the U.S. ambassador to Iraq, Alina Romanowski, followed up with a tweet in which she expressed her appreciation for Sudani’s “productive call” with Austin, which had affirmed “the importance of the U.S.-Iraqi partnership in supporting regional security.”
The European Union in Baghdad
Also on Wednesday, a delegation from the European Union (EU), led by Jill Rustin, Head of Strategic Planning and Crisis Management in the EU’s Foreign Ministry, visited Baghdad and met with Qasim al-Araji, Iraq’s National Security Advisor.
Citing a statement from Araji’s office, the Iraqi News Agency (INA) reported that the two sides had “reviewed the work of the European Union mission in Iraq and ways to enhance cooperation and partnership.”
Araji expressed “Iraq’s keenness to continue the relationship with the European Union,” INA reported, and “benefit from its expertise to develop the capabilities of our security forces.”
Araji also stressed that “protecting diplomatic missions in Iraq is an Iraqi duty,” and “the Prime Minister supervises this matter.” Sudani, he said, had “issued orders to the Ministry of Interior to tighten measures to protect diplomatic missions.” Thus, no threat exists to the security of missions and embassies in Iraq, Araji assured the visiting EU delegation.
The Militias as Instruments of Iranian Leverage
Rend Rahim, Iraq’s first ambassador to the U.S following the 2003 overthrow of Saddam Hussein’s regime, is basically sympathetic to Sudani.
Writing for the Arab Center of Washington DC, she described how the war in Gaza has strengthened the pro-Iranian militias in Iraq, particularly after the Oct. 17 strike on Gaza’s al-Ahli hospital.
Although Hamas claimed Israel was behind the attack, Israeli officials said—and U.S. intelligence concluded with “high confidence”—it was a misfired Palestinian rocket that had hit the hospital.
“The intelligence community reached its conclusion after examining multiple videos and using geolocation techniques” to trace the blast “to a rocket launched inside Gaza that suffered a mechanical failure mid-flight,” The Washington Post explained.
“An Israeli munition,” the Post continued, “such as a bomb dropped from the air or an artillery round,” would “have caused significant structural damage” and “left a large crater.” However, there was “only light structural damage” to the building.
Hamas’s erroneous claim, nonetheless, shook Iraq’s political scene, as Rahim recounted. “Hundreds of thousands of demonstrators in Tahrir Square the following day and on Friday October 20 denounced the United States and Israel and carried pictures of Iran’s Supreme leader, Ali Khamenei; slain commander of Iran’s Quds Force, Qassem Suleimani; and leader of Lebanese Hizbollah, Hassan Nasrallah.”
“Prime Minister Sudani faces dangerous times,” she concluded. “How the coming weeks unfold depends on Iran’s intentions, over which he has no control.” But, as she also noted, Sudani “is an astute politician.”
Al-Alaq: It is necessary to develop appropriate marketing plans to support digital financial inclusion in the country
On Thursday, the Governor of the Central Bank, Ali Mohsen Al-Alaq, convened a meeting to discuss the enhancement of the project aimed at spreading point-of-sale (POS) devices and promoting digital transformation in the country. A number of representatives from the Central Bank and electronic payment companies operating in the country were in attendance.
The bank issued a statement which was received by NRT Arabic. The statement mentioned that the meeting discussed the challenges of spreading point-of-sale (POS) devices and emphasized the importance of increasing geographical coverage to include all regions of Iraq.
The statement addressed problems related to using bank cards and settling financial amounts through national exchanges.
Al-Alaq emphasized the significance of the widespread availability of point-of-sale devices and their positive effect on the national economy and the lives of citizens. He also stressed the need to encourage citizens to use bank cards instead of cash and make it a priority for electronic payment companies and banks.
He emphasized the need for appropriate marketing plans to support financial inclusion and digital finance in Iraq.
BAGHDAD FAILS TO CONTROL THE DOLLAR, AND WASHINGTON PUTS PRESSURE ON IRAQ ECONOMICALLY DUE TO ITS SUPPORT FOR PALESTINE
(So….do you think in the midst of this crisis that the US is now going to give permission for Iraq to reinstate the dinar? Why so they can funnel more money to AMAS via IRAN? These intel gurus are all idiots! )
A member of the Parliamentary Finance Committee, Mustafa Al-Karaawi, said today, Tuesday, that the government of Prime Minister Muhammad Shiaa Al-Sudani has failed miserably to control the dollar exchange rate despite the plans and reforms that were prepared and launched in the past.
(I personally do not agree with this statement. Al-Sudani must work with the CBI and it is not his sole responsibility for monetary reform it is the CBI and the GOI who work together they told us this many times.)
Al-Karaawi confirmed, in an exclusive interview with Al-Mutala’ Agency, that “previous measures and meetings that took place between the government, the governor of the Central Bank, and the owners of government banks regarding controlling the price of the dollar and not trading it internally were of no benefit,” indicating that the government failed to impose its control over the dollar.
The stability of the dollar against the Iraqi dinar.” He added, “The Prime Minister met yesterday with the concerned authorities, to discuss the non-implementation of reform packages related to the price of the dollar,” calling on “Al-Sudani to take effective solutions like those issued by the Central Bank to control the dollar at border crossings and customs taxes.”
The member of the Finance Committee pointed out that there are American political influences that exert pressure on Iraq to put pressure on it economically, regarding its support for the Palestinian cause and advocacy for the people of Gaza against the Zionist occupation,” stressing that “Iraq seeks to address that issue and put pressure on the US Federal Bank to provide amounts in dollars and at a specific time.” .
He continued by saying, “Iraq’s position on the Palestinian issue is firm and will not change, and we reject all Zionist crimes committed by the occupation against the Palestinians, and this is an irrevocable decision.”
Iraqi Prime Minister urges international action amid escalating Palestinian-Israeli conflict
Shafaq News/ Iraqi Prime Minister Mohammad Shia Al-Sudani issued a stern warning on Thursday regarding the escalating Palestinian-Israeli conflict, urging the international community to actively intervene and prevent the conflict from spilling into the regional arena.
The Prime Minister's Media Office said Al-Sudani spoke with British Secretary of State for Foreign, Commonwealth and Development Affairs James Cleverly. The discussion encompassed bilateral relations between the two countries and the latest developments in the region, with a particular focus on the Palestinian issue.
During the call, Al-Sudani emphasized the "vital role of major powers and the permanent members of the UN Security Council and the broader international community in halting the violence, aggression, and violations perpetrated by Israel against the Palestinian people." He stressed the urgent need to prevent the conflict from spreading further and engulfing additional regional areas.
Cleverly commended Iraq's and Al-Sudani’s handling of the crisis in the Gaza Strip and the overall tensions in the region. Both parties concurred on the imperative of working towards a ceasefire and expediting the delivery of humanitarian aid to the besieged Palestinian population in Gaza. Additionally, they underscored the necessity of upholding international law to facilitate a permanent and just solution to the ongoing conflict.
An American institution: Washington’s pressures towards the Sudanese government threaten its survival
A report by the American Century Foundation confirmed on Thursday that the Sudanese government faces challenges to its survival, especially due to economic pressures from the US.
According to a report translated by an undisclosed source, Iraq has made progress in the services sector, job opportunities, and reduction of regional tensions. However, the country still faces three main challenges. Reports show that there is a high risk of economic collapse due to deep structural challenges and dependence on oil exports. One of the most difficult issues that the government has to deal with is the devaluation of the dinar and the pressure exerted by the United States to restrict the flow of dollars, which has a significant impact on the Iraqi market.
According to the report, there are two major obstacles to be addressed in Kirkuk: social unrest and the fear of escalating tensions, particularly with the upcoming local elections in December. Moreover, climate change has also led to an increase in migration from rural areas to cities, causing population inflation in cities with limited opportunities and weak infrastructure. Infrastructure crime is also expected to rise.
The report highlights that corruption is the most significant challenge currently facing the government, and addressing it is not an easy task. The report further states that despite the government’s efforts, corruption continues to persist, and there has been no accountability for the massive corruption scandals, such as the “theft of the century” involving $2.5 billion. This corruption has far-reaching consequences and continues to cause losses and tragedies at the national level.
According to the report, Al-Sudani has been successful in balancing the interests of the parties in the coalition he leads. He has managed to reach agreements to secure federal funding for Iraqi Kurdistan. However, it is uncertain if he can continue to make such deals with the upcoming elections and intense competition.
Layla Abdul Latif: Predicting Iraq’s 2024 in the Arab World
the world braces for a new year, one voice echoes through the Arab world, stirring intrigue and anticipation. Layla Abdul Latif, a Lebanese fortune teller, has gained significant attention for her predictions for Iraq in 2024. Abdul Latif has been in the business of foretelling since 1979, and her predictions have reverberated through houses, coffee shops, and television channels across the Arab world.
The Oracle of Lebanon
Abdul Latif, the first woman in Lebanon to host television programs about astrology and predictions, has become a household name in the Arab world. Her predictions are not based on whim, but are grounded in a variety of factors including astrology, numbers, and visions. Her prophecies, however, should be taken as interpretations rather than certainties. As the current year draws to a close, there has been an escalating interest in her predictions for 2024, particularly for Iraq and other Arab nations.
A Glimpse into Iraq’s Future
Abdul Latif’s predictions for Iraq in 2024 oscillate between hope and despair. She foresees political turmoil, the possibility of governmental changes, escalating security tensions, and even the likelihood of terrorist attacks. A gloomier forecast predicts natural disasters such as floods and droughts, and a decrease in oil prices that could severely impact the Iraqi economy. Yet, there is a glimmer of hope. Abdul Latif also predicts peace negotiations between the Iraqi government and opposition factions, the launch of new infrastructure projects such as power plants, and an increase in foreign investments in Iraq.
Perception and Reception
Layla Abdul Latif’s predictions have not only gained attention but have also sparked fear and concern among the Iraqi public. Some find comfort or interest in such predictions, while others approach them critically. It’s crucial to remember that these predictions are interpretations and should not be taken as absolute truths or determinants of future events. In addition to Abdul Latif’s predictions, it’s also important to consider the opinions of experts in various fields, such as economics, politics, and security, when assessing the future prospects of Iraq. These experts can provide a more comprehensive and evidence-based analysis of the country’s situation and potential challenges and opportunities.
Ultimately, Layla Abdul Latif’s predictions for Iraq in 2024 have generated significant interest and discussion. While some may find her predictions intriguing or even accurate based on previous experiences, it is important to approach them with caution and consider them as one perspective among many. When evaluating the future prospects of a country, seeking a diverse range of opinions and analysis is always advisable.
Member Of Parliamentary Energy: There Is An Intense Movement To Approve The Oil And Gas Law, And It Will Not Be Transferred To The Next Session
Time: 10/25/2023 15:03:01 Read: 1,196 times {Political: Al-Furat News} The representative of the Parliamentary Oil and Gas Committee, Zainab Al-Moussawi, revealed an intense parliamentary movement to bridge the gap between Baghdad and Erbil to approve the draft oil and gas law.
Al-Moussawi told {Al-Furat News} agency, “There is great support for approving the law within the coordination framework as it is the problem of the Iraqi government, and it seems that the political parties that do not benefit from the approval of the law are hinting here and there to postpone the law to the next session, and this will not happen because the law has passed for many years since the year 2005 until now.”
She stressed, "The law has now been approved to regulate natural resources, including oil and gas, in Iraq, and also to solve the region's problem by placing production and management of the fields under federal control, and exports through the National Oil Company {SOMO}."
Earlier, the Prime Minister, Muhammad Shia al-Sudani, agreed with the Prime Minister of the Kurdistan Regional Government, Masrour Barzani, to resolve the differences and outstanding issues, including the 2023 financial budget files and the oil and gas law, but the law is still a matter of controversy after talk of preparation. A new version of it was issued due to disagreement over its passage in light of the differences in political opinions.
The oil and gas law, which has been stalled in the Iraqi parliament since its first session, in 2005, is one of the most prominent points on which an initial agreement was reached between the governments of Baghdad and the Kurdistan region.
On February 15 of last year 2022, the Federal Supreme Court issued a ruling that the regional government’s oil and gas law of 2007, which regulates the oil industry and its extraction in the region, was unconstitutional. This ruling came after the regional government concluded contracts with foreign oil companies, and the Kurdistan Regional Government rejected the court’s decision. Federal, giving up its control over oil exports. LINK
FIREFLY: Sudani on the news saying Iraq lacks strict laws against currency speculators. These are the people that have been delaying what we want to bring to you Iraqi citizens.
Then he talks about more needs to be in place to hold accountability. These laws will allow him to protect us more with our currency.
FRANK: Wow! Ta-Dah!...Look at the articles...you can find some of [this] tomorrow...you will find even more the next day. It will get louder and louder until they make the announcement.
FRANK : This is part of the monetary reform process, to pass these laws. But it's the last phase of it to bring security and stability and to remove any corruption from your currency.
These laws will allow Sudani to arrest more evil people that are against you Iraqi citizens and Sudani's reforms...Congratulations you are one step closer to what you seek - Value to your currency....
IMF tells Zimbabwe to end RBZ's quasi-fiscal activities - Bulawayo24 News (10/26/23)
The International Monetary Fund (IMF) has implored Zimbabwe to end the central bank's quasi-fiscal activities among a raft of reforms to "fully restore macroeconomic stability".
The Reserve Bank of Zimbabwe (RBZ) stands accused of engaging in activities that are supposed to be done by the Treasury.
Quasi-fiscal activities were blamed for fuelling hyperinflation in the period 2006 to 2008. This accelerated the depreciation of the local currency, paving the way for the introduction of the multi-currency regime in 2009.
In its report after anIMF staff visit in the period October 18 to 25, the global lender said economic policy reforms identified in previous Article IV consultations have not been implemented.
"First, comprehensively addressing the RBZ's quasi-fiscal operations (QFOs) remains imperative to mitigate liquidity pressures and thus re-anchor inflation expectations. These measures should be complemented with an enhanced liquidity management framework, including through theuse of appropriate interest-bearing instruments by the RBZ to mop up excess liquidity," IMF said.
RBZ has introduced gold coins and digital tokens to mop up excess liquidity in the market. The IMF has been against the issuance of gold coins and instead proposing the introduction of "appropriate interest-bearing assets".
It said the consolidated fiscal stance, including QFOs, should be aligned with the short-term stabilisation objectives.
"Third, there is an urgent need to accelerate the FX market reform, by allowing more flexibility in the official exchange rate through a more transparent and market-driven price discovery; removing the restrictions on the exchange rate at which banks, authorised dealers, and businesses can transact; and further minimising export surrender requirements," IMF said.
The RBZ said this week that it was removing the 10% trading margin above the interbank rate as it fine-tunes and further liberalises the foreign exchange market.
[via PDK] News from Iraq continues to be very positive...The majority of my Iraqi contacts believe we will see RV somewhere between now and the first. Remember that none us of know for certain what the timing is. I’m just telling you what they are feeling and hearing from inside their own country. These people are in banking and government.
There is a lot of repetition in the news… We have shared many articles over the last few days/weeks on improvements in the banking system in Iraq…. Articles about how they have secured their borders…how they are attracting more money into the banks…(85% of the dinar is outside the banking system in Iraq) and they are trying to make their banking system more attractive. I do not think this will be successful until there is a value change in the dinar.Why put it in the banks when it’s not worth much?
While digging for news on timing…all I am getting is circle-tel. Some of my better sources keep telling me “soon”...not yet, but extremely soon...There is so much disinformation right now to keep the timing clouded...stay calm…Yes sources say its soon…far closer than we think...
Minister: Iraq opens up for Green Investments with $100 million budget
Shafaq News/ Iraq's Minister of Environment, Nazar Amedi, on Thursday reiterated the country's commitment to sustainable green economy investments, with a transformational target of $100 billion by 2035.Speaking at the Arab ministerial meeting, Minister Amedi stressed the importance of supporting Iraq's ambitions for this economic shift and attracting foreign investments.
He called for national and international collaboration, emphasizing "the need for coordination and the allocation of the required funds from international or national funds to ensure the high-level implementation of the Ministry of Environment's strategies, priorities, and projects related to the green and sustainable economy, and climate change mitigation."
Minister Amedi said that" the government's strategy prioritizes environmental, climate, and water concerns, with ongoing efforts across sectors to address these issues and develop necessary adaptation measures."
The Minister announced that the Ministry of Environment has finalized a new environmental strategy for 2023-2030." This comprehensive strategy aims to enhance Iraq's environment while considering regional challenges arising from climate impacts and water scarcity." "It also supports the gradual transition to a green economy that complements the current economy based on fossil fuels," he said. Amedi said that Iraq is "open up to green economy investments, with a targeted transformation amounting to $100 billion by 2030 and 2035." "The budget includes items to support environmental improvement. The ultimate goal is to stimulate a billion-dollar project for comprehensive environmental enhancement and the growth of Iraq's green economy."
Warning That Iraqi Funds Remain With The US Federal Bank - Urgent
Economy |Today Baghdad today - Baghdad Today, Thursday (October 26, 2023), economic expert Saleh Al-Sarfi warned of the consequences of Iraqi funds remaining with the US Federal Bank, noting that their presence may constitute a tool of pressure exerted by Washington on Baghdad.
The banker said in an interview with "Baghdad Today", "All Iraqi oil funds are deposited directly in a special account in the US Federal Bank, and Baghdad is submitting a request to obtain the funds to cover operational expenses and the rest of the other obligations," pointing out that "this procedure is not recent, but has been adopted." During the economic blockade in the nineties of the last century after the application of the oil-for-food principle.
He added, "Washington's excuses for keeping Iraq's funds under its control at the Federal Reserve are due to the state of political instability and the consideration that the country is going through complex and unstable circumstances, in addition to protecting the funds from a large number of cases filed against Baghdad as a result of previous wars."
He pointed out that "there are risks from Iraqi funds remaining in the US Federal Reserve, most notably the direct impact of any crisis that strikes the American economy, in addition to it being considered a pressure tool that Washington can exert towards Baghdad."
On October 6, Washington rejected Iraq's request to obtain one billion dollars in cash from the Federal Reserve Bank, under the pretext that it conflicts with their efforts to curb Baghdad's use of the dollar and stop illicit cash flows to Iran.
The American Wall Street Journal reported that since the American invasion of Iraq two decades ago, the United States has provided $10 billion or more annually to Baghdad via bi-monthly cargo flights, and the money is derived from the proceeds of Iraqi oil sales deposited with the Federal Reserve Bank.
American officials said, "Banknotes in the hands of Iraqis have become a lucrative source of illicit dollars that go back to militias and corrupt politicians, as well as to Iran."
By applying for an additional $1 billion shipment, Iraq says it needs the money to help prop up its faltering currency. A senior Iraqi official explained that "last week, the Central Bank of Iraq submitted an official request that the Treasury Ministry is still studying, after Washington rejected the initial request submitted by Iraq last month."
According to the newspaper, since last November, Washington has prevented 18 Iraqi banks from dealing in dollars, adopting stricter rules for electronic transfers in dollars from its banks.
Treasury officials told Iraqi central bank governors that sending a large additional shipment conflicts with Washington's goal of limiting Iraq's use of US banknotes, Iraqi officials said.
American officials spoke of conclusive evidence that some of the dollars that were arriving in Iraq were smuggled in cash over the years to Iran, as well as to Turkey, Lebanon, Syria and Jordan.
A Treasury Department spokeswoman said regarding the Iraqi request, “The United States continues to support Iraq with dollar banknotes and has not restricted its access to ordinary Iraqis and businesses,” indicating continued work with the Central Bank of Iraq. LINK