The leader of the Kurdistan Democratic Party, Wafa Muhammad Karim, revealed today, Tuesday, that Baghdad and Erbil have settled a complex file regarding the salaries of the Kurdistan region.
Karim told {Al-Furat News} that: “The financial committees that visited the Kurdistan region stressed the necessity of handing over half of the region’s imports to Baghdad and half of the outlets to the central government.” He added, “Indeed, the president of the region confirmed its delivery to Baghdad, but the pending matter is the central government’s request for lists of all ministries’ employees, and this region was reserved about it.”
Karim stated, “He had reservations about sending the lists of the security ministries and the Peshmerga, but this file was completed, resolved, and agreed upon.” He stressed that “all the lists were sent, and with regard to the security lists, they were subject to the Kurds and the symbols.” Prime Minister Muhammad Shia al-Sudani announced, during a press conference after the Council of Ministers voted on the 2024 budget schedules, the federal government’s commitment to the Federal Court’s decision to localize the salaries of the region’s employees. The Federal Court decided to oblige Prime Minister Muhammad Shia al-Sudani and the Prime Minister of the Kurdistan Regional Government, Masrour Barzani, to localize the salaries of the region’s employees. With government banks and deducted from the region’s budget for this year and the coming years. The Federal Court also obligated Sudan to release funding for the region’s salaries after they are settled and not to release them through monthly financial funding.
3 LTRS ARE BACK AT IT AGAIN... EXPECTING SOME "IMMEDIATE ACTION" IN 24 HOURS! TIME WILL TELL...I'M EXPECTING THE "REST" OF MY MIRACLE...TUESDAY NITE NOW!
[via Babysmom]
...BANKS EXPECTING TO SEE RATES LIVE AFTER FOREX OPENS AT 5:00 P.M. EASTERN...
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PAST POSTS OF RAYREN98
"ACROSS THE POND" FOLKS ARE CLAIMING WTO ASCENSION & AN INTERNATIONAL CURRENCY. SOME 3-LTRS ARE STARTING TO CONFIRM AND ACKNOWLEDGE. TIME WILL TELL
SO, SOME AGREEMENTS WERE MET LAST NIGHT....LET'S SEE WHERE THAT TAKES US FOR LATER TODAY?
[via Babysmom] "EAST COAST BANK CONTACTS ARE "VERY EXCITED" AND ANTICIPATE INITIATING EXCHANGES EITHER LATE TONIGHT OR EARLY IN THE MORNING. TIME WILL TELL...
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EVEN THOUGH I DON'T SEE IT YET...THEY ARE TELLING US "IT'S DONE"...THIS HERE "RIDE" IS FINALLY COMING TO AN END...HOPEFULLY TODAY.
[via Vinterv] 3 LTR'S [3 LETTER AGENCIES] ARE ON A 24-HOUR WATCH...
♪♫•*¨*•.¸¸❤¸¸.•*¨•*♫♪ I'm so excited, and I just can't hide it. I know, I know, I know I see a RATE CHANGE! A SHO-NUFF "RATE CHANGE" ! ♪♫•*¨*•.¸¸❤¸¸.•*¨•*♫♪ Sooner THAN later ♫♪♫♪♫ I GOT A FEELIN ...TONIGHT'S GONNA BE A GOOD NIGHT ♫♪♫♪♫ times 3...
GOOD SOURCES INFORM THAT THEY ARE ATTEMPTING TO PUSH IT OUT "BEFORE" THE END OF THE MONTH...
Biden extends Iraq’s national emergency for more year
Baghdad today – follow-up
U.S. President Joe Biden announced today, Monday, May 20, 2024, that Iraq’s national emergency has been extended for an additional year.
“Obstacles to the orderly reconstruction of Iraq, the restoration and maintenance of peace and security, and the development of Iraq’s political, administrative and economic institutions continue to pose an unusual threat to Iraq’s national security and foreign policy as well,” Biden said in a letter to the U.S. Congress and published by the White House.
“Therefore, the national emergency for the stability of Iraq will continue to be in effect after May 22, 2024 for an additional year,” he explained.
Resolution 13303 on Iraq was passed in 2003 under former US President George W. Bush.
The decision means that the U.S. president has the right to issue orders for international trade, and everything related to any threat to U.S. national security, based on which former President George W. Bush, who on May 22, following the 2003 invasion of Iraq, issued an order 13303 to declare a state of national emergency in the United States.
There's a lot of interesting news but one in particular just got my attention. The conversation about floating the Iraqi dinar.If ever you wanted something to happen and for it to move in a positive way, floating the Iraqi dinar would be it since they have not re-denominated and they have not removed the zeros, if they go to a floating exchange rate and...
the world goes crazy and starts buying up a lot of Iraqi dinar and it causes the exchange rate to jump up in value really quickly
...as soon as you spot a rate you're comfortable with, man you better sell and...get rid of the dinar...This is really exciting if they decide to go that route. I just don't think they're going to do it.
Article: "A reading in the fiscal and monetary policies of the IMF report - May 2024"
This is not good, mostly because they rely so much on oil revenues and they need to develop the private sector more...Yes Iraq is taking huge leaps and bounds but...there's a lot of things that still have to be done.
Iraq is whitewashing its debt book... and fears of financial waste
Iraq closed the file of its debts owed to the International Monetary Fund and accumulated since 2003, with a total amount exceeding 8 billion dollars, through several loans that were aimed at supporting macroeconomic stability and implementing financial reforms.
According to the financial advisor to the Iraqi government, Mazhar Muhammad Salih, after 2003, the International Monetary Fund provided several loans to Iraq that were aimed at supporting economic stability and implementing financial reform processes between the years 2003 and 2021. Saleh explained, in an interview reported by the Iraqi Media Agency (INA), that Iraq obtained several financing programs from the International Monetary Fund, including emergency loans and relatively long-term financial aid.
Saleh stated that since 2003, the value of loans and financial aid granted by the International Monetary Fund to Iraq amounted to $8 billion, and was repaid in full, with a focus when granting loans on implementing programs linked to supporting macroeconomic stability and implementing the necessary financial reforms. The International Monetary Fund had previously explained that Iraq needs to gradually correct its public financial conditions, to achieve debt stability in the medium term and rebuild financial reserves.
In its statement, the Fund welcomed the strong economic recovery, low inflation in Iraq, and the improvement in local conditions that led to the implementation of the first three-year budget, stressing the necessity of sound economic policies and structural reforms in Iraq to secure public finances and debts, given the regional conflicts that may affect oil prices.
At the end of last year, 2023, the International Monetary Fund stated that Iraq's economy relies heavily on oil revenues, and needs radical structural reforms to diversify sources of income and achieve sustainable growth.
Financial waste
In this context, the financial expert, Rashid Al-Saadi, said that financial waste in Iraqi state institutions exceeds 40 billion dollars annually, and that Iraq is capable of addressing this serious problem by drawing up a sound monetary economic policy and reducing levels of financial waste. Al-Saadi added to Al-Arabi Al-Jadeed that Iraq was one of the founding countries of the International Monetary Fund in 1944, and has a strong position in the international financial system, due to its high confidence that enables it to achieve its economic policies and provides sustainable development opportunities.
He pointed out that the International Monetary Fund's decision not to provide Iraq with development loans comes because of the Fund's policy, which requires granting debts for the purpose of achieving sustainable development projects and not in order to pay salaries and the deficit in the state budget. Al-Saadi stated that the IMF stressed greatly the importance of Iraq’s move to rationalize its cash consumption, work to achieve new resources, and invest its natural and human resources to achieve the optimal financial output away from the financial waste occurring in state institutions.
He stressed that there are more than 100,000 employees who receive salaries without any work or production, in addition to the presence of approximately 150,000 employees who receive more than one salary, in addition to the great waste in the expenses of the government and its higher institutions. He stated that the financial waste in salaries and expenses holds the state budget at more than 40 billion dollars annually, which is a dangerous percentage that leads to significant slackness and a dangerous increase in the volume of expenditures, stressing the importance of reducing surplus expenditures and working to diversify the sources of national income for the Iraqi state.
Loan burden
The economic researcher, Ahmed Sabah, said that Iraq tried to improve its relationship with the International Monetary Fund after 2003 through the Paris Club Agreement and the resulting decisions in order to extinguish the debts incurred by Iraq before its invasion in 2003, which were estimated at around 100 billion dollars, and which passed Several stages ended in 2008.
Sabah added to Al-Arabi Al-Jadeed that Iraq bore the burden of new loans at the beginning of 2014, which witnessed a rise in government expenditures on the battles to regain control of the areas that fell under the control of ISIS, and the financial problems that befell the state and a large deficit in the balance of payments. Which prompted him to request a loan from the International Monetary Fund worth $5.34 billion to meet his financial obligations.
Sabah stressed that Iraq did not sever its relationship with the International Monetary Fund, but rather the economic policy currently followed has caused the Fund to lose its confidence in it, due to the large waste of money in Iraq and the high volume of unjustified spending far from production and the multiplicity of means of national income. He stated that Iraq's economy is unstable and suffers from many fluctuations due to its total dependence on oil revenues, in addition to the state's poor economic management and its weak production performance.
Sabah stated that any decline in global oil prices will cost Iraq a lot, increase the deficit rate and raise the levels of economic risk that will result in Iraq’s bankruptcy and its reaching dangerous stages. He stressed the importance of improving Iraq's financial situation and strengthening its economic relations with international financial organizations and bodies to raise the level of confidence and confront economic crises. link
We know that the budget has passed with $162 billion. It was $153 B last year...There is plenty in the news showing us it is passed…but I have yet to find where they are covering a budget shortfall with a rate...I was told to expect something within days of it being passed.
Comment:
Its interesting they are saying billions and not trillions for their budget totals. They must have a rate hike? Right? MarkZ: You are getting it. We are just trying to piece together “what is that rate?”
Most of what I am getting is that rates should be resettled on Wednesday.
But I don’t know what that means for us timing wise. This actually makes sense to me because of where the sources are from and their connections ...in Iraq they are not releasing the specifics of the 2024 budget that they approved and announced yesterday. I want to know if there is a rate in there.
Government Spokesman: This year and the coming will witness progress on important projects that affect the lives of citizens
The official spokesman for the Iraqi government, Bassem Al-Awadi, announced today, Monday, that the current and next year will witness the movement of important projects that affect the lives of the citizen. Al-Awadi said in a televised statement: “The Iraqi government has tended to reduce debts and reduce the deficit in the upcoming budget, indicating that the government has tended to maximize non-oil revenues to more than 18 trillion, adding that the government has tended to grant guarantees and guarantees for vital projects that revive the economy.”
Al-Awadi stressed, “Our institutions are able to compensate the United Nations mission and our cooperation continues with the organizations.” link
Article: "A reading in the fiscal and monetary policies of the IMF report - May 2024"
This is not good, mostly because they rely so much on oil revenues and they need to develop the private sector more...Yes Iraq is taking huge leaps and bounds but...there's a lot of things that still have to be done.
Article: "Floating the Iraqi dinar. A solution to fill a 'gap' whose volatile price against the dollar
"
If the Iraq dinar floats and for whatever reason a lot of people start investing into the currency and it drives the exchange rate up, if it gets anywhere near $0.25 and higher for me, I'm out of there! Seriously, I will sell my currency...
The cool thing about this is there's no talk about a redenomination. So are they actually going to float this currency with the zeros on there and take the risk that sucker is going to jump up really high in the exchange rate?
...Keep an eye on that sucker, watch the exchange rate, if it gets anywhere near where you want to sell it, then jump all over it. I wouldn't procrastinate or gamble with it.
The budget tables are in a final government audit before being sent to Parliament
An informed source revealed that the financial budget schedules for the year 2024 are subject to a final government audit before being sent to the House of Representatives.
“The budget tables are now in the legal department of the General Secretariat of the Council of Ministers, and it is hoped that their audit will be completed within the secretariat and then sent to the Parliamentary Finance Committee.”
The source stated, “In the coming days, the Finance Committee will review the budget schedules sent by the government and follow up on their disbursement, and will make some amendments to them if necessary to adapt them to the public need.”
The Council of Ministers voted in an extraordinary session last Sunday on the budget schedules and referred them to the House of Representatives.
Prime Minister Muhammad Shiaa Al-Sudani revealed in a press conference after the session the details of the budget tables and the most prominent contents of them. He said:
Table (A) included revenues totaling (144.336) trillion dinars, and Table (B) concerned the total planned expenditures totaling (210.936) trillion dinars.
- The planned budget deficit amounted to (63.599) trillion dinars, and Table (C) is the centrally funded workforce table, amounting to (4,079,906) employees, and governing expenditures amounted to (10.042) trillion dinars.
- The investment budget for 2024 is (54.298) trillion dinars, and may reach 55 trillion dinars. - Governorate allocations to local government programs with an investment allocation amounted to (10.633) trillion dinars in 2023, and we financed (3.333) trillion, based on fundamental requests from the governorates.
- The remainder of the allocation (7.333 trillion dinars) is in a trust account, at the disposal of the provincial governments.
- Allocating approximately (8) trillion dinars to ongoing projects, including allocations in 2024. - For the first time in the history of budgets, we have exceeded spending by 50%.
The increase in debt repayment amounted to 3.9 trillion dinars. In 2023, the debt repayment was 12,751, and in 2024, we repaid 16.725 trillion. link
Goldilocks - QFS Conversations ™🌱🧂, [05/21/2024, 8:24:07 a. m. (05/21/2024, 8:28:51 a. m.)]:
"The final elements for the implementation of Basel III in the EU are now agreed and will start applying on the 1st of January 2025."
Currently, we have tokenized assets and stablecoins backed by gold and other commodities moving through legislation and expected to become law at the end of June 2024.
This is forcing governments around the world to begin making decisions to implement their new digital economy. These monetary policy shifts will create credit valuation adjustments across all sectors of the market including Forex
.
Countries have began moving towards bilateral trade agreements utilizing their own currencies in trade. This move will increase the demand for their currencies, yet they still need a stable price on them.
This is where stablecoins come into play. Stablecoins are backed by commodities. This alone will support the need to raise the value of currencies around the world to level the playing field in trade.
For the last 4 years, trade has been disrupted and rerouted to increase the level of exports in countries around the world offering support for these new currency values that are about to come into play.
The IMF has been working with countries globally to give guidance and instruction on their countries' ability to shift into a new supply and demand regimen. Work has been done to increase Capital Requirements through commodities and increasing exports.
These measures will support new values and justification for currency valuation adjustments because their credit in the ability of doing so will be met by the above requirements.
We have a deadline for these changes to take full effect by January 1st, 2025. As you can surmise, price pressures to move into a real value between now and then are about to begin.
Look for XRP and XLM to be the first movers in the new digital economy. Their supporting actors will be ISO 20022 digital coins. These ISO tokens will be networks that will move money from one sector of the market to another.
Our movement from wire transfers to instant transfers electronically and through a quantum computer will increase money velocity. This will increase demand and increase the value and support for currencies going to higher levels.
Just holding ISO tokens and utilizing them in the new economy, with gold backing each of them, will serve as the bridge to our next economy. Commodities will be the next long-term Bull Run.
Our first RV (digital) is about to interface with traditional market assets on the QFS. This will transform our banking system and markets (paper money) into the new digital asset based trading system - the second RV.
By 92%... An Increase In Sales Of Foreign Remittances At The Iraqi Central Auction
Economy | 02:53 - 05/20/2024 Mawazine News _ Baghdad External remittances at the Central Bank of Iraq auction rose by 92% on Monday, at the expense of cash sales, to reach $254 million.
In its auction today, the Central Bank sold 273 million and 572 thousand and 542 dollars, which it covered at a base exchange rate of 1,310 dinars per dollar for documentary credits and international settlements for electronic cards, at a price of 1,310 dinars per dollar for external transfers, and at a price of 1,305 dinars per dollar in cash.
He added that most of the dollar sales went to strengthen balances abroad in the form of transfers and credits, which amounted to 254 million 462 thousand and 524 dollars, an increase of 92% over cash sales amounting to 19 million 110 thousand dollars.
The number of banks that purchased cash dollars reached 4 banks, while the number of banks that responded to requests to enhance balances abroad reached 15 banks, and the total number of exchange and brokerage companies participating in the auction was 36 companies. https://www.mawazin.net/Details.aspx?jimare=248346
US Treasury Conference Call on Sun. 19 May 2024: “Everything is on schedule and the US is finishing up last minute paperwork. All tests for the RV have gone great. Stay positive. It’s coming.”… Mena, Liberty Lounger Extraordinaire on Telegram Sun. 19 May 2024
Mon. 20 May 2024 Wolverine: “It’s near guys.I’m not going to say time or day, but I know we are going to have a beautiful, beautiful month.”
Mon. 20 May 2024 MarkZ: “Many banking sources are expecting big things this week. Some expect things as early as today. Many bankers are upbeat about today and this upcoming Memorial Day Weekend.
Mon. 20 May 2024 Rubix Q: “I now have a banker and he has verified this is real. They have been trained and it is a WF bank. He also said that they will be playing a huge role in this. Call around ask for a wealth manager. If they are participating they will set you up with a relationship manager. I was also told when asking, we will not be the ones under NDA…He couldn’t say anymore….hint hint.”
“Gold is money. Everything else is credit.” -J.P. Morgan 1912
Among Them Is Related To Capital... Economic Questions Haunting The Work Of Digital Banks
Economy News = Baghdad Today, Monday, the economic expert, Mahmoud Dagher, raised several questions about the nature of digital banks in Iraq, while confirming that any bank can adapt its banking system to digital.
Dagher said, in an exclusive interview with Al-Eqtisad News, “The digital bank is ultimately a bank with its banking operations, from cash and in-kind credit to deposits and borrowing, as well as all the activities associated with it, and it is an evolution in the banking system to complete digital operations.”
He added: "As for compliance, combating the financing of terrorism and corruption, and oversight and auditing, they do not differ at all from existing banks. Rather, the responsibilities of the executive management and the Board of Directors continue and are also governed by the laws of the Central Bank, governance, and banks, in addition to the Anti-Money Laundering Law, as well as the instructions of the Central Bank."
The economic expert explained: “Nothing will differ except that operations are conducted through applications, and even these banks have taken steps to establish them, that is, some banks have converted their operations to digital instead of face-to-face,” indicating that “any bank can adapt its banking system to digital in addition to the regular one.”
He pointed out, "Central banks support and encourage this trend, and banks are also seeking to make their digital window wide, especially after the spread of applications and ATMs that withdraw and deposit."
Dagher asked: “Why is the digital bank’s capital less than other banks? And why are there special instructions for the digital bank instead of incentives to support the digital window and voluntary transformation of digital systems as an option for banks?”
How Deleting Three Zeros Will Change the Iraqi Dinar
The critical differences between currency re-denominations and exchange rate purchasing power explained.
Currency re-denominations and exchange rate purchasing power are essential concepts to clearly understand in a global financial system.
They influence how money is valued and used in different economies.
Introduction to Currency Re-Denominations
Currency re-denomination involves changing the face value of a country’s currency by removing zeros from the notes. They are not rare.
Romania, for instance, re-denominated their currency in 2005 by deleting five zeros. Both the old and new notes remained in circulation together.
Romania deleted five zeros from their currency in 2005
This process does not alter the currency’s actual purchasing power. It is typically undertaken to simplify transactions and accounting.
Practical Examples and Misconceptions
Example: Iraq
Consider Iraq, where a 1,000 IQD note currently buys a single loaf of bread.
If Iraq re-denominates its currency by removing three zeros, the new note would be a 1 IQD note. Despite this change, the new 1 IQD note would still buy the same loaf of bread.
The purchasing power remains unchanged because the value of the currency relative to goods and services stays the same.
Common Misconceptions
Some people believe that removing zeros from a currency increases its purchasing power.
For example, they might think that the new 1 IQD note would buy 1,000 loaves of bread instead of one. This misconception ignores the fundamental principle that re-denomination is merely a cosmetic change.
The actual value of the currency, and what it can buy, does not increase.
The Impact on Salaries and Real-Life Scenarios
To further clarify, let’s consider a salary scenario.
If an individual in Iraq earns 100,000 IQD per month, a re-denomination removing three zeros would change their salary to 100 IQD per month.
The new 100 IQD salary would still have the same purchasing power as the old 100,000 IQD salary, allowing them to buy the same amount of goods and services.
Historical Context: Zimbabwe
Zimbabwe’s experience with re-denomination provides a similar example in reverse.
During periods of hyperinflation, Zimbabwe repeatedly added zeros to its currency, creating notes worth trillions of ZIM.
Zimbabwe 2008 100 Trillion note.
However, these new notes did not buy more than the previous billion ZIM notes, illustrating that re-denominations do not enhance purchasing power.
Understanding Currency Exchange Rates and Purchasing Power in Kuwaiti Dinar (KWD)
Determining a currency’s purchasing power relative to other currencies involves complex calculations, especially with fiat currencies.
For example, Kuwait’s dinar (KWD) has the highest exchange rate against the US dollar. However, this does not mean that the average Kuwaiti has higher international purchasing power than the average American.
Salaries in Kuwait are lower in KWD terms, reflecting the exchange rate’s impact.
Example: Moving from the USA to Kuwait
If someone earning $100,000 per year in the USA moves to Kuwait for work reasons, they cannot expect to earn 100,000 KWD per year.
This would be equivalent to earning $260,000 per year instead of the previous $100,000/year.
It would be great for the person moving to Kuwait, yet it is a completely unrealistic scenario.
Instead, their salary in Kuwait would be adjusted to match the KWD/USD exchange rate, likely around 38,000 KWD per year at current rates.
This ensures that their salary purchasing power remains reasonably consistent across currencies.
The Bottom Line
Currency re-denominations and exchange rates are vital in understanding how money functions globally.
Re-denomination changes the face value of money but not its purchasing power.
Similarly, exchange rates impact how much goods and services can be bought in different currencies.
