What is new in the news?
PILLARS OF FINANCIAL REFORM
Yes, here it is again in our faces…. the Pillars of Financial Reforms. When I read the news just since my Tuesday Newsletter it struck me that are now mostly all now talking about these pillars and reforming these three sectors. Go ahead and page down in to the Article Section you can see for yourself. Iraq just told us yet more progress in all three sectors of their Pillars of Financial Reforms. Do you think this funny drawing I keep showing is important? Why do I show it often?
So, this week we have many significant events happening in Iraq all mostly related to the Pillars of Financial Reform that the Finance Committee has talked about so often and are in the White Paper plan for Iraq.
If you recall from my 7/23 Newsletter I reported mostly about explaining the 3rd part of the “the strategy of banking reform and development is the basic pillar for comprehensive and radical reform of the national economy in line with what is stated in Article Twelve, Paragraph (7) of the government program” , which clearly and accurately stated that and I quote – “banking reform, with what it provides of a real and effective basis for the advancement of the Iraqi economy and the activation of investment through the restructuring and mechanization of government banks, reviewing their work, and stimulating and enabling private banks to be able to support investment and development in a real way.” Today is more of the reforms as they continue.
IRAQI STOCK EXCHANGE
Today they talk about the Iraqi Stock Exchange Iraqi Stock Exchange and how important it is and I quote from the article – “as in the case of the Iraqi model and long years of economic stagnation as a rentier economy that relies primarily on oil to finance its annual budgets and the state of price speculation on the stability of the dollar exchange rate in local markets or what is known as the parallel dollar situation, we can look at the Iraqi Stock Exchange as a tool supporting monetary policy and influencing the state of the rentier economy . The ISX can only add to the GDP outside of the oil revenues. This will reduce the dependence on oil for revenues (the rentier economy).
So, we learned about the launch of the broadcast of the Iraqi Stock Exchange (ISX) on YouTube. So this week Iraq witnessed the launch of the broadcast via the Iraq Stock Exchange website via YouTube, in addition to broadcasting via the market’s Facebook page.” This is all VERY GOOD news and heading in the direction we need. Choo Choo!
Former MP Manar Abdul Muttalib, on Thursday identified the features of black money in the Iraqi investment stock exchange, indicating that this money stolen from the Iraqi treasury has revived the economies of several countries . But how has it helped Iraq? Abdul Mutalib said in an interview with Baghdad Today, “There is no accurate figure for the amount of money looted in Iraq after 2003, but all indications indicate that it is hundreds of billions of dollars, some of which was smuggled abroad and some of which was turned into support for building economic wings for parties, forces and companies .” Can you see why now they fight to liberate the dinar? Most of this would stop. The goose that lays the golden eggs would stop. Like Dr Shabibi said to us way back in 209-2012 that longer they stay on the currency auctions and suppressed rate, the harder it will be to return to normalcy. We are witnessing that now.
Also we read that and I quote – “The investment environment in Iraq is going against the trend in the world in that anyone with $100,000 can invest in a project worth $100 million. This is a paradox. Yes, do you see why now they have to reinstate the dinar and off the sole peg to the US dollar and the 1/6 of a penny rate. Billions are being lost.
BANKING REFORMS
We learned that Rafidain Bank has started selling dollars to travelers by filling out an electronic reservation form and reserving it 72 hours before the travel date.” This procedure will onlytake place in the bank’s branches and receiving it through the bank’s office at Baghdad International Airport.” The mechanism will be adopted to provide hard currency to travelers according to the official exchange rate set by the Central Bank of Iraq.” Can you see how this is a step to stabilize the parallel market and legitimize the demand for the dollar? Will this finally get the parallel market rate equal to the CBI official rate, or at least much closer? Choo Choo!
I want everyone to know that Finance Committee that returned from Iraq after spending the week attempting to convince the US Treasury to let go of dollars sanctions of the 32 Iraqi banks was a failure. This was not good news. We still wait. I do not believe this will happen as the Biden administration is in turmoil in the US. The democrat party is desperate to stay in power at any cost. All efforts are going towards this and foreign policy, as we all can see is suffering greatly as a result.
VOLUME OF BANK DEPOSITS GROW
WOW! WOW! It is finally taking root. Al-Obaidi said in a tweet followed by “Al-Eqtisad News” that the data of the Iraqi banking sector between 12-31-2022 and 5-31-2024 indicate that the banking sector, despite all the challenges and shocks it faced during this period, was able to achieve growth in many areas, specifically in financial inclusion, as well as an increase in bank assets and maintaining the volume of deposits despite everything that was raised about the sector. Folks again this is all VERY GOOD news. We know the banks must recover the money from the hoarded stashes outside the banking system in order to provide liquidity for the banks to operate and use the funds to loan out and for other financial products. But they are not there yet and won’t get to the final goals until they change the rate. Choo Choo!
INSURANCE REFORMS
Wow! I also have some news for you today in the category of insurance reforms to help investors and businesses come in to Iraq.
So in today’s news we find out that Iraq is joining the International Association of Deposit Insurers (IADI) which will enhance the transparency and credibility of their national banking system. Do you think this was needed prior to the RV happening? My impression is NO! However, it is a part of th Pillars of Financial Reform they said they needed to address. It will certainly help in their country’s commitment to strict international standards in the field of deposit insurance. It sends a positive message to citizens and investors, stating that their deposits with banks that are members of the deposit insurance system are in safe hands and that the banking system is subject to effective local monitoring and supervision.
International bodies do not only provide a platform for the exchange of expertise, but also provide technical and advisory support to their members. National institutions can benefit from the expertise of international specialists in developing and implementing effective deposit insurance policies, assessing potential risks, and preparing for financial crises.
By adhering to international standards and implementing best practices, national institutions can reduce the risk of financial crises and enhance the stability of the banking system. Choo Choo!
Oil and Gas Law (better known as HCL)
Next we learn that the Parliamentary Oil, Gas and Natural Resources Committee expects that the Oil and Gas law will be transferred to the next parliamentary session, amember of the Parliamentary Oil and Gas Committee, Ali Al-Lami, said in an interview with Al-Mada news in Iraq. We know this is important I have been many times this is needed in the Obama/Biden economy plan for Iraq. Yes, I was told they must fulfill this constitutional referendum requirement. Choo Choo!
I am sorry but there is not much spectacular news applicable from Iraq than what I just talked about in the commentary. The RV train just keeps moving down the tracks quicker than ever. Quicker than my 18 years in this investment. Hold on to your hat. Anything could happen at this time....TO BE CONTINUED
No comments:
Post a Comment