The economic and financial advisor to the Prime Minister, Mazhar Muhammad Saleh, explained today, Sunday, the mechanism of monetary policy in Iraq.
(When Saleh talks… I listen. How about you? )
Saleh said {to Al-Furat News} that: “The monetary policy works to ensure that the price of the dollar in the parallel market is close to the nominal price through procedures and measures by using its operational objectives, whether {quantitative} of them, that is, by controlling and sterilizing surplus liquidity opportunities with high flexibility.”
He added, “Or the {price} that requires effective use of the exchange rate and interest rate signals in order to maintain the superiority of the Iraqi dinar, stabilize its value in the overall economy, and minimize the role of the secondary exchange market, which must approach the central exchange rate of 1,320 dinars per dollar.”
Saleh added, “Providing the national market with consumer and intermediate commodity products and supplies with stable prices will be among the government’s import priorities, whenever necessary, in order to achieve a balance between supply and demand and achieve price stability for basic and important commodities, in accordance with the requirements of a stablestandard of living.”
Question: "Is [Firefly boots on the ground in Iraq] optimistic or frustrated?"
Both. He's optimistic because he knows what Sudani and the CBI have been telling the citizens of Iraq...Because he can go into a bank in Iraq now and ask questions and they will answer them point blank. But he's also frustrated because how much longer? We're talking about going into...January already. This thing should have happened at the beginning of the year . What's the hold up? Why are we waiting?
I don't think they're waiting for much of anything right now. They're moving fast. They're moving quickly in every aspect of the monetary reform. The next step is to show the lower denoms...new exchange rate and to allow it to float on an international platform...These are not subjects we are proposing to you, these are subjects that are in the articles themselves...
Parliamentary Finance reveals that the 2024 budget is about to reach its legislation
Baghdad - Iraq Today: 2024/01/16 09:24
The Parliamentary Finance Committee resumed its regular meetings at the beginning of the new legislative term, while confirming the imminent arrival of the budget law for the year 2024.
The media office of the head of the committee said in a press statement: "The parliamentary finance committee, headed by Atwan Al-Atwani, resumed its regular meetings at the beginning of the new legislative term to discuss a number of topics related to its legislative and oversight work."
He added that "the meeting discussed ways to conduct a quick review of the work of the committee during the past legislative term and determine the priorities of the next stage in accordance with the ministerial curriculum, whether in terms of completing the requirements of legislating important laws or monitoring spending and overcoming obstacles and obstacles that delay the implementation of service and development plans and programs."
Al-Atwani stressed - according to the statement - that "the committee is waiting for the arrival of the budget law for the year 2024 soon to make the necessary amendments to its schedules," stressing "the need to determine our priorities in accordance with the government program."
"We will have field visits in the coming days to ministries and provinces to follow up on the implementation of plans and programs," he said, addressing committee members by saying: "Your presence in the field is enough to solve all legal and technical problems that delay the referral of strategic projects and hinder the completion of those who lag behind them."
"We have allocated additional funds to the provinces in order to implement strategic projects, and this requires us to follow up on funding and implementation," he said, pointing to "the need to work to overcome obstacles to completing school building projects that have been lagging for years."
Article: "Iraq returns to the World Trade Organization 14 years after its expulsion” They didn’t finish fifteen years of work in one year to not have accession. The development road and sustainable development projects are only just beginning. Iraq as we have been noting here has been setting the stage for entering the international financial system. We are a part of and watching history in the making!! This is truly an amazing article...
Article quote: "The new role of government banking in financing foreign trade for the private sector is in accordance with approval of the International standards..." Iraq is telling you that they have the private sector in mind. They're doing it in what? In accordance with the approved international standards.Did they have that before? Obviously not. Why would they be talking about it if they did.
There's some very significant, big, big players exposed to this. We all know JP Morgan, CitiBank and others are 100% involved...See the picture of the Vice President of JP Morgan Chase doing deals with Iraq...You walk into the bank at Chase and your average guy doesn't know what we know because what we know is we study and we have the data to support and the articles that are public that present that information.
The House of Representatives discusses the latest requirements for Iraq’s accession to the World Trade Organization, 16 JAN
Tuesday, the Parliamentary Economy, Industry and Trade Committee discussed with the Permanent Representative to the World Trade Organization the requirements for Iraq to join the World Trade Organization.
Trade, indicating that the committee discussed with the Saudi delegation the requirements for Iraq’s accession to the World Trade Organization, most notably the approval of the intellectual property law, which is one of the conditions for joining the organization. The Chairman of the Parliamentary Committee, Representative Ahmed Salim Al-Kanani, confirmed that Iraq has been striving hard since 2006 to join the World Trade Organization in order to raise the level of the economy in the country and make it within international standards, pointing out that Iraq has completed all the requirements for joining the World Trade Organization in 2023, and only legislation remains. Intellectual property law in order for Iraq to take its membership in the global organization and transform trade for exports and imports within internationally approved standards and quality conditions. link
SUDANESE PARTICIPATES IN THE WORLD ECONOMIC FORUM IN DAVOS, SWITZERLAND
A government source reported, on Saturday, that Prime Minister Muhammad Shiaa Al-Sudani will participate in the World Economic Forum in Davos, Switzerland.
The source told Shafaq News Agency, “Prime Minister Muhammad Shiaa Al-Sudani is participating in the World Economic Forum in the Swiss city of Davos in its fifty-fourth edition, which will begin its work on the fifteenth of this January.”
This year’s edition of Davos carries the slogan “Restoring Confidence,” and will focus on the conflict in the Gaza Strip, along with issues of global concern, such as climate and artificial intelligence. The forum is supposed to witness the participation of heads of 100 governments and representatives of 1,000 international organizations.
Government spokesman Bassem Al-Awadi had confirmed earlier today, Saturday, that the Council of Ministers session would be postponed to tomorrow, Sunday, instead of Tuesday, which witnesses the holding of the Council’s regular sessions every week.
(Every mid January the annual World Economic Forum (WEF) gathers for a four-day event held in the Swiss skiing resort of Davos.
Initially founded by Professor Klaus Schwab and King Charles as the European Management Forum, the mandate of the organization has evolved into one focused on championing the “One World Government” solutions and the great global reset. It’s main goal is not really to help humanity unless any of its measures also help in the push to establish a global governance over free and sovereign nations. In a nut shell, this is what these Davos meetings are all really all about. Don’t be fooled. These meetings have been going on for decades already and so if they were all about helping mankind and its suffering, then why are we still suffering? Why hasn’t any real solutions been agreed to and put in place? Folks, it really all about Control and Power. As independent, sovereign nations we don’t have to go along with this group of individuals who think they can mold the world to their liking and ideology. Their goal is to use NARATIVES that they bring upon to push us in their their direction. And so, what is their ideology? Just listen to them speak. It is very, very scary what they propose for mankind. You can read up and get more information on the Davos meeting in the link below.)
Iraqi Foreign Ministry Summons Iranian Envoy Over Rocket Attacks on Erbil
n a significant turn of events, the Iraqi Foreign Ministry has summoned the Iranian envoy to Baghdad. This diplomatic move comes as a response to the recent Iranian rocket attacks on Erbil, the capital of Iraqi Kurdistan, which have stirred global concerns.
Summoning of the Iranian Envoy: A Diplomatic Maneuver
The summoning of an envoy, a traditional diplomatic action, is used to express a country’s official stance, demand explanations, or actions from another country’s government. In this case, it marks the Iraqi government’s strong disapproval of Iran’s military action within its borders. The Iranian envoy was presented with a note of protest, a document outlining grievances and requests for redress or cessation of certain actions, signifying Iraq’s desire for Iran to halt its aggressive pursuits.
The Fragility of Middle-East Relations
This incident underscores the fragility of international relations in the Middle East, with the potential for conflict escalation. The strained relations between Iraq and Iran have been further complicated by these recent attacks, creating an atmosphere of heightened tension not just within these two nations, but the region as a whole. The details of the discussions between the Iraqi Foreign Ministry and the Iranian envoy remain undisclosed, as do the specific contents of the note of protest.
Iran’s Ongoing Aggression and its Implications
The rocket attacks on Erbil, allegedly targeting Israeli ‘spy headquarters’ and anti-Tehran groups, resulted in civilian casualties. These incidents, along with Iran’s recent military actions in Syria and its links to previous terrorist incidents linked to the Islamic State group and Jaish al-Adl, reflect Iran’s ongoing aggression. This aggressive stance has far-reaching implications, not only for Iraqi-Iranian relations but for the broader geopolitical landscape in the Middle East. The world watches closely as the situation unfolds, with the hope that peace and stability will prevail over conflict.
There is a lot of news out of Iraq. According to the Iraqi press they are working hard on a change of value and deleting of the zeros. Deleting the zeros does not mean just take the zeros off…it means the dinar gains so much strength that you cannot use the bills with the 3 zeros on it… This is good news for us.
Iraq needs the official rate to be close to the trading rate. They can fix this. Saleh and others are suggesting they let the economy figure the rate out and no longer have an official fixed rate. If the market decides that would remove the black market completely...This is similar to conversations Kuwait was having just before they RV’d and had a release in value. These are steps we have seen before in past currency revaluations. They have been doing this for quite some time…they are just now starting to tell us about it.
Escalating Tensions: Iraq Recalls Ambassador to Tehran Amid Rocket Attacks, 16 JAN
In a significant diplomatic move, the Iraqi government has recalled its ambassador to Tehran for consultations, in response to the recent Iranian rocket attacks on Erbil. The action marks a notable surge in tensions between Iraq and Iran, with the consequences of the attacks still unfolding.
Recalling the Ambassador
Ambassador Nassir Abdel Mohsen was withdrawn from Tehran following the deadly missile onslaught carried out by Iran’s Revolutionary Guards on Iraq’s autonomous Kurdish region. The strikes, which were aimed at ‘espionage centers’ and anti-Tehran groups in Erbil, resulted in multiple casualties, escalating the situation into an international concern.
Response to Aggression
The recalling of the ambassador reflects Iraq’s disapproval and deep concern over the Iranian military aggression on its territory. The Iraqi authorities have not only condemned the missile strikes but also labeled them as a blatant violation of their sovereignty and a threat to regional security. They plan to take legal measures, including lodging a complaint with the UN Security Council, and publishing findings of an investigation to disprove the allegations.
Implications for the Middle East
This development is likely to cast long shadows on the diplomatic relationship between Iraq and Iran, potentially influencing regional stability and security dynamics in the Middle East. Iran’s defense of the missile strikes as a ‘targeted operation’ and ‘just punishment’ against those who breach its security, indicates the severity of the situation. As Iraq recalls its ambassador for consultations, the international community watches closely, anticipating the potential implications of this escalating conflict.
A deadly missile strike in Erbil, Iraq, resulted in the deaths of at least four individuals and left five others injured. The attack, which has been reported by Al Arabiya and Kurdistan 24, remains shrouded in uncertainty regarding the perpetrators or the motive. This incident, occurring in a city that has otherwise maintained relative stability compared to other regions of Iraq, highlights ongoing challenges faced by the country in ensuring citizen safety and maintaining peace.
An Unexpected Strike in Erbil
On an ordinary day in Erbil, a missile struck, causing an explosion near the U.S. consulate and a U.S. military facility. This attack struck fear into the hearts of the Iraqi people, reminding them of the volatile security situation in their country. The Iranian Revolutionary Guard Corps claimed the ballistic missiles were launched in response to terrorist crimes. However, their statement did little to quell the panic and uncertainty that ensued.
Among the casualties was Peshraw Dizayee, a multimillionaire businessman and his family. The strike resulted in four deaths and six injuries, triggering an outpour of grief and anger from the citizens of Erbil. The Iraqi government condemned Iran’s ‘aggression’, stating it would consider filing a complaint at the United Nations Security Council.
U.S. Response and Condemnation
The U.S. State Department denounced the attacks and expressed support for Iraq’s stability. The U.S. officials clarified that the attacks did not affect any of their facilities, and there were no U.S. casualties. However, they conveyed their strong support for the Government of Iraq and the Kurdistan Regional Government’s efforts to meet the aspirations of the Iraqi people.
The U.S. State Department condemned the attacks near Erbil, calling them reckless. The attacks raised concerns about a wider regional escalation due to Israel’s military offensive in the Gaza Strip.
Iran’s Claim and the Aftermath
Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for the missile attack on Erbil, targeting ‘spy headquarters’ of anti-Iran groups. This attack resulted in the death of at least four civilians and left 17 injured, causing substantial material damage to residences near Pirmam road.
The IRGC maintained that they had targeted ‘three Mossad bases’ in Erbil, despite the Kurdistan Regional Government (KRG) denying the presence of Israeli intelligence in the region. Following the attack, Erbil International Airport suspended all inbound and outbound flights, adding to the growing tension and fear in the region.
In the aftermath of the missile attack, the city of Erbil is left to mourn its losses, heal its wounds, and piece together the fragments of a shattered sense of security.
Movements before they release the lower denoms and new exchange rate we expected to see this... December was to have everything ready in place to go. January all these systems are being implemented through the monetary reform education. From private banks like the one Aki [Iraqi bank friend] represents to international markets as of today January 15, 2024 they're all international now. It's what we expected...there's not more to say...because everything now is in print...
The rate doesn't matter. You're going to trip over you own feet when it finally does float because you're going to be looking for a rate. Watch the growth of the dinar's value.
The only thing missing is the lower denoms and the new exchange rate. Everything else is in position.
[Aki - Iraq Bank In US update]
AKI: There are many Iraqi citizens in the United States of American holding 3-zero notes. It is my job to collect them for the CBI, where they will destroy them. Our [job] is to turn in the 3-zero notes.
WALKINGSTICK: This is huge!
AKI: Agree. Direct deposit from now on. No limitations. Article VIII not only for the citizens but for investors.
[Aki - Iraq Bank owner in US update]
Question: " The new orders you got on January 1st, are they for you to dispense the lower denoms and collect 3 zero notes?"
Here in the Untied States we are preparing to do everything with electronic platforms...We are prepared to collect the 3 zero notes from those that wish to exchange them for American dollars...We follow International banking laws, the same laws American banks follow. Here in the United States the bank that I am in charge of will be all electronic.
When you ask about the LDs they are only found in Iraq. We do not possess them. Iraq will give to the Iraqi citizens, when the time comes, physical lower notes and coins and collect three zero notes...The difference is that here in the US I have to do everything electronic where my friends in Iraq, their banks can do it electronic or physically if they want the lower denoms and coins in their hands .
There are many Iraqi citizens in the United States of American holding 3-zero notes. It is my job to collect them for the CBI, where they will destroy them. Our [job] is to turn in the 3-zero notes. WALKINGSTICK: This is huge! AKI: Agree. Direct deposit from now on. No limitations. Article VIII not only for the citizens but for investors
[Aki - Iraq Bank owner in US update]
Question: "The new orders you got on January 1st, are they for you to dispense the lower denoms and collect 3 zero notes?" Here in the Untied States we are preparing to do everything with electronic platforms...We are prepared to collect the 3 zero notes from those that wish to exchange them for American dollars...We follow International banking laws, the same laws American banks follow. Here in the United States the bank that I am in charge of will be all electronic.
When you ask about the LDs they are only found in Iraq. We do not possess them. Iraq will give to the Iraqi citizens, when the time comes, physical lower notes and coins and collect three zero notes...The difference is that here in the US I have to do everything electronic where my friends in Iraq, their banks can do it electronic or physically if they want the lower denoms and coins in their hands.
[via PDK] Iraq needs the official rate to be close to the trading rate. They can fix this. Saleh and others are suggesting they let the economy figure the rate out and no longer have an official fixed rate.
If the market decides that would remove the black market completely...This is similar to conversations Kuwait was having just before they RV’d and had a release in value. These are steps we have seen before in past currency revaluations. They have been doing this for quite some time…they are just now starting to tell us about it.
Comment: Another intel provider said the redemption center staff are on 45 min. notice to show up for work. MarkZ: I am definitely hearing they are on call for an hour or less to get to work according to 3 different contacts I have.
UK Export Finance Backs Major Sanitation Project in Iraq
UK Export Finance (UKEF) has secured £226 million to aid the Iraqi government in a significant infrastructure project. This venture will construct an extensive drainage system in Hilla, a city situated 100 kilometers south of Baghdad. The initiative is set to enhance sanitation facilities and provide clean water to approximately 25,000 households in the region.
Revolutionising the Region’s Sanitation
The project involves the construction of over 350 kilometers of drainage networks and 15 kilometers of stormwater and wastewater lifting terminals. The robust system, upon completion, will have the capacity to treat up to 20 million cubic meters of water each year. This substantial improvement in sanitation will have a transformational effect on the lives of the local population.
Financial Arrangements and Collaborations
The financial framework for this project includes a direct loan of £113 million from His Majesty’s Treasury and an equivalent guarantee for financing from Standard Chartered Bank. The bank has been chosen as the exclusive Structuring Bank, Mandated Lead Arranger, and Agent for the project. This collaboration aims to ensure the seamless execution and financial stability of the project.
Consortium of Companies Joining Hands
A consortium of companies is participating in this initiative. It includes Al-Tafweed Company For General Trading and Al-Ehtifad General Contracting from Baghdad, GAMA Industry from Turkey, James Cubitt & Partners (JC&P) from the UK, and Jazirah Al-Mansour Trading & Investment from Jordan. These companies bring with them a wealth of experience and expertise, ensuring the project’s success and long-lasting impact on the region.
No, it's not going to be reinstated at $3.22 rate. This is something that's going to be done in increments. There's either going to be an adjustment up or down. We don't know yet so don't get overly excited...
Why is it that the Iraqi dinar is unstable? That is because they rely too much on oil sales. 95% of their budget relies on oil sales.There's too many people out there going, they got so much oil there's no reason why their currency isn't valuable. No, you don't understand. That's the problem. Article quote "The CBI devalued the notation currency in December 2020 amid a sever drop in global crude prices which threatened economic collapse given Iraq's heavy dependence on oil exports..." If it wasn't for the fact that they devalued the Iraqi dinar they would have collapsed...
Article: "Iraq and 4 Arab countries have more than 1 million tons of global gold reserves" Why do they have so much gold? Because you need that to strengthen your own local currency. Gold is way more liquid than anything else. If you want to make sure the currency stays strong you want to have tons of gold as well as foreign reserve assets in your holding.
Iraq's minimum exchange rate needs to be in order for them to be compliant with the IMF - Take the SDR $1.33 minus 2%...Iraq has to be at an exchange rate at a minimum in order to be in compliant with the IMF...$1.28...
Stop falling for that crap that there's no way Iraq can get all these major projects that they have listed in their budget unless they change the exchange rate. That's false. It's already accounted for. The budget is already created with the proper amount of money set aside for these projects. It's just done in Iraqi dinars with the current exchange rate.
Turkey Works with Iraq to Foster Understanding of PKK Threat
The Turkish Foreign Minister has disclosed ongoing consultations with the Iraqi administration, aimed at fostering an evolved understanding of the Kurdistan Workers’ Party (PKK), a group Ankara regards as a terrorist organization. This initiative forms part of Turkey’s broader strategy to counteract the PKK, a group that has locked horns with the Turkish state in a protracted struggle for autonomy and enhanced rights for the Kurdish population in the region.
Understanding the PKK Threat
The PKK has long been at loggerheads with Turkey, waging an armed struggle for Kurdish autonomy and greater rights. This conflict has strained Turkey’s relationships with regional and international powers, including the United States and Israel, further complicating the geopolitical landscape. The PKK’s recent attack in northern Iraq has amplified concerns, prompting the Turkish government’s swift response.
Cooperation: The Way Forward
Recognizing the need for collective action, Turkey is engaging with neighboring countries like Iraq, seeking to isolate the PKK and curb its activities in the region. This international cooperation is critical in addressing the growing security concerns pertaining to the PKK. These consultations, as highlighted by the Turkish Foreign Minister’s statement, indicate a commitment from Turkey to work closely with Iraq to tackle the PKK issue.
A Broader Strategy
Alongside these consultations, the Turkish government has also launched airstrikes targeting PKK/YPG terror cells in northern Iraq and Syria. This is in direct response to recent attacks on Turkish soldiers and is a clear indication of Turkey’s proactive stance against the PKK. This multifaceted approach underscores the complexities of the issue and the lengths to which the Turkish government is willing to go to ensure security and stability in the region.
This is what happens to a currency when price pressures start to reveal themselves.
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Iraq is now in mainstream Traditional Banking and transitioning into a digital economy at the same time.
We will be watching both the digital economy and traditional banking system mechanisms join together through Quantum Technological networks going forward.
New prices will emerge from each of these areas of utility for the Iraqi dinar and form even Newer price patterns because of the gold that will be sprinkled into it through Basel 3.
Iraqi Banking Announcement: Instructions and standards for circulation and exchange of banknotes, and counting and sorting mechanisms. https://cbi.iq/news/view/2502
Al-Saadi directs a request to the President of the Republic regarding Romanowski and warns
Monday, a member of the House of Representatives, Saud Al-Saadi, sent a request to the Presidency of the Republic regarding the American ambassador to Iraq, while warning of the continued targeting of the leaders of the Popular Mobilization Forces.
Al-Saadi said, in an interview with Al-Maalouma, that “The President of the Republic is required, according to the Constitution and in accordance with the provisions of Articles 1, 9, and 67, to expel the American ambassador to Iraq, in accordance with the constitutional powers granted to him, especially Article 73 of the Iraqi Constitution, after the continued American bombing of the headquarters of the security forces.”
He added, “These attacks are a blatant violation that cannot be tolerated, as they may lead to the continuation of a series of repeated targeting of the leaders of the Popular Mobilization Forces, which is witnessing successive American operations to attack them one after another, in light of the government and parliamentary silence.”
The member of the House of Representatives explained, “These repeated American attacks must be confronted with real reactions from government and parliamentary bodies, and the implementation of the 2020 resolution should proceed.”
Earlier, Acting Speaker of the House of Representatives, Mohsen Al-Mandalawi, called on the government to implement the decision to end the foreign presence in Iraq, indicating that the House of Representatives’ decision to end the presence of foreign forces in Iraq is a principled and firm decision.
Most of the Iraqi political forces issued their support for the Prime Minister regarding the steps to remove American forces from Iraq after a series of attacks against the Iraqi security forces.
The old Financial System. If you know how to play Monopoly, you will know the financial system we are moving out of is one that gets too expensive for anyone to live in and the winner is the one that owns it all and no one else does.
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Global payment technology provider Opus Technologies has launched FinGeniusAI Solutions, an open innovation platform aimed at fostering the adoption of AI-based solutions in the banking and payments industry.
“World Economic Forum Annual Meeting DAVOS-KLOSTERS, SWITZERLAND 15–19 January 2024″ | AA Link
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Supply and demand are becoming issues for Iraq as they have moved on to the International stage. This move has created fluctuations on the exchange rate of the Iraqi dinar, and they are currently looking at ways to stabilize their currency through economic tools that will bring them into alignment with other currencies.
This is why they are currently looking at measures of control to stabilize their exchange rate through the process of “deleting the zeros” and withdrawing cash mass from their citizens while transferring these monies to the banking system.
They’re looking at other mechanisms to control the Iraqi dinar through interest rates, of which, we have talked about in this room. Interest rate control allows them to guide the inflow and outflow of the dinar.
Control of their oil supply and other economic factors of trade within Iraq is becoming increasingly evident and unnecessary. The ability for the Government to trade freely on an open market is an emerging theme of realization and of necessity. It will bring more prosperity to their local economy.
These new mechanism changes for Iraq are coming into play, and the emergence of a new economic system is beginning to create price pressures forging new ways of implementing their new economy.
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