List of events for late May – June Current:
- The international group Financial Action Task Force (FATF) in the field of combating money laundering and terrorist financing, lifts Iraq from ‘bad’ or “grey” financial list. Can you remember the days when Iraq was on the black list? Then we all cheered when they moved to the grey list. Now they move off the grey list. This alone is need for a celebration. Get it?
- Ending the power of America and its manipulation of the Iraqi economy is a priority to discuss,” adding that “this move will end the pressures exerted by Washington in many files.” Mnt Goat: The biggest pressure to be solved is with the $120 billion dollar DFI fund. Sanctions are over and Iraq wants total control over its own wealth.
- Decided to “permanently” end UNAMI’s mandate totally by the of 31 December 2025 in Iraq. Mnt Goat: I honestly don’t know if many of you know what this means. Iraq has been out of sanctions Chapter 7 for more than a year and a half already. Why have they not ended this UNAMI mission before now? So, this is great news!
- The government of Iraq sees clear indicators: the parallel dollar will be equal to the official one soon. Mnt Goat: I do not think it is equal as of yet, but the CBI did tell us it is finally under control.
- There is a decrease in demand in the parallel market for the dollar, and this has had a positive and direct impact on the stability of the exchange rate. Mnt Goat: So yes, we do see the direct impact on the RV with the parallel market being stable. Per my CBI contact.
- Al-Rafidain Bank, one of Iraq’s main national banks announced: the plan for digital transformation and adoption of the comprehensive banking system is proceeding according to the set timings. Other banks will soon follow. Mnt Goat: And they are following with more as the weeks roll on. We had articles telling of more progress in this item. See another bullet down below on the ATMs.
- “If we assume that the central bank issues a new currency (like the newer lower denominations), this will not affect the exchange rate of the Iraqi dinar.” Mnt Goat:Click here for a further explanation of this statement.
- Economist: the budget is not affected by dollar exchange rates and explains the reason. (I told you so! Mnt Goat: There is no new RV rate in the budget. It is based on the price of a barrel of oil not the rate of the dinar. Per my CBI contact.
- Returning the banking sector as much as possible to open more horizons for working with correspondent banks. Mnt Goat: Opps there’s the Pillars of Financial Reforms again….
- Farhan Al-Fartousi, stressed the importance of the Al-Faw Grand Port project, indicating that it is a starting point for the “Development Road” project and that it enjoys the support of all parties in the country. Mnt Goat: Get’r done!
- The Central Bank of Iraq is working according to well-studied plans, and there is no intention to issue new currencies in large or small denominations. that the issuance of new cash denominations, large or small, will not affect the dinar exchange rate.This is just as Mnt Goat has told you many times already. More proof! Per my CBI contact.
- This significant increase in deposits clearly reflects the effective role played by the company in stimulating the culture of savings and encouraging citizens to deposit their money in banks instead of keeping it at home. Mnt Goat: Yes, the CBI told us they must shrink the monetary mass by more than 1/3 to move to the next revaluation and so they must get this money outside of the banking system into the banks and out of circulation. Per my CBI contact.
- The Iraqi Deposit Insurance Company plays an important role in supporting this trend, as it is a pillar of financial stability, Financial technology has demonstrated its ability to enhance financial inclusion in Iraq. Mnt Goat: Pillars of Financial Reform? Sound familiar?
- “In line with the state’s general policy of supporting the Iraqi and foreign banking sector and foreign investments in Iraq, the Council decided to support the independence of the Central Bank of Iraq in formulating monetary policy in accordance with its applicable laws and instructions.” Mnt Goat: More proof Al-Sudani’s GOI and the CBI are working hand-in-hand to support the monetary reform policies. They both want to bring back the IQD to its former glory. They must be joined together in this effort and support each other to get’r done.
- maximizes Iraq’s oil resources, in light of the goal of converting at least 40% of Iraq’s oil exports into derivatives and refining products, in addition to gas investment. Mnt Goat: Yes, yet more revenue streams… Just how filthy rich is Iraq? 40% WOW! But we all know it is just a matter of time before oil use declines as newer sources of energy are on the horizon and coming soon. Iraq knows it too.
- the reason why citizens resort to buying gold bullion to save their money is as a result of the weakness of the banking system. Mnt Goat: The real reason is the CBI is backing the new dinar with GOLD. Per my CBI contact.
- the Iraqi Securities Commission announced the signing of an environmental, social and corporate governance guide agreement with the International Finance Corporation (IFC), affiliated with the World Bank Mnt Goat: Here we go again those Pillars of Financial Reform ….
- The economic and financial advisor to the Prime Minister, Mazhar Muhammad Saleh, proposed an “unusual” idea to establish a sovereign wealth fund. Mnt Goat: This suggestion is more than a suggestion or hypothetical. They are doing it! The fund or series of funds is to properly invest the DFI fund money out of the US banks and US Treasury control into the direct control of Iraq of almost $120 billion US dollars and leverage the earnings to help subsidize the annual budgets. Right now, it sits in an escrow account earning nothing. Imagine that! Per my CBI contact.
- Iraq: current year 2024 allocated an amount of up to 4.9 billion dollars to establish a pipeline extending from Basra in the far south of Iraq on the waters of the Gulf, to the city of Haditha. The project will change the map of the oil industry and production in the region and give Iraq a great advantage over other oil neighbors.” Mnt Goat: Yes, they need to bring to market the increase in oil production due to the all the new wells they are drilling. Yet, more revenue streams for Iraq. How do they plan to fund such a large project. Do they need a change in the IQD rate? is this what we are waiting for so they can publish the budget in the Gazette?
- the Ministry of Oil clarified the details of the memorandum of understanding signed with the American company Honeywell to develop 7 new refineries. Mnt Goat: Yes, to diversify their oil product to produce gasolene and diesel fuels and other petro products. More revenue streams… WOW! WOW! WOW!
- Deploying ATMs throughout Iraq. Al-Rafidain Bank has begun deploying ATM machines in its main branches. Eight banks have so far taken part in the project,including BBAC, Cihan, RT Bank, Bank of Baghdad, Iraqi Islamic Bank, National Bank of Iraq, Trade Bank of Iraq, and the International Development Bank. Mnt Goat:Electronic banking is all part of the prerequisite for the Project to Delete the Zeros.They have NOT yet changed over to the newer lower denominations in them. Per my CBI contact.
- The MyAccount project is the KRG’s financial inclusion program which aims to “provide public sector beneficiaries with a safe and convenient way to access their salaries.“ Mnt Goat: This goes hand in hand with the electronic banking reforms that must be successful prior to the Proeject to Delete the Zeros. Per my CBI contact.
Please just be patient! I included already much more detail of these items in my Newsletters on each of these subject areas with the full articles. Can you see why each of them could be a “WOW!” news item in itself. So, relax the RV is coming! 😊
Next, I have some new news in today’s June 20th Newsletter, to yet publish, from my CBI contact. I had an interesting conversation in my call yesterday. You don’t want to miss this newsletter.
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