The President of the Association of Iraqi Private Banks, Wadih Al-Hanalal, confirmed today, Thursday, near the end of the second phase of the Pulse of Baghdad initiative, while pointing out that life began to the historical city of Baghdad.
Al-Hannal said in a blog post on Facebook, followed by “Economy News”, that “the second phase of the Baghdad Pulse Initiative, to rehabilitate the historical city of Baghdad, will soon end, under the auspices of the Prime Minister, Mohammed Shia Al-Sudani, and with the support and supervision of the Association of Iraqi Private Banks and funded by the Tamkeen Fund, funded by private banks, and in cooperation with the Baghdad Municipality,” but saying: “Thank you to all the sanks that contributed to this achievement, which is the development of the axis.”
He added, “Life began to date back to the historical city of Baghdad, after the completion of the first phase, which is Al-Muntababi Street, and now, it will become a place to attract Arab and foreign tourists, thank you to all the supporters and partners from other institutions.”
Article: "Expert: The Iraqi economy is witnessing a remarkable growth, with the decline in the dollar exchange rate." This is good. We need this to happen. Iraq needs it to happen. More importantly the policies that are being implemented by Iraq are favorable amongst the IMF, World Bank and all those people who are involved with making sure Iraq stay on track, stops laundering money and financing terrorist. The more Iraq continues to stay on track and prove to the world they are going to behave themselves for now on the doors open for Iraq to rejoin the international community...
Article: "Economist: The budget is not affected but dollar exchange rates. And explain the reason" The person is saying the budget is never affected by the dollar exchange rate because the budget is based on Iraqi dinars.
Article: Central Bank of Iraq quote "There are no current plans to print new currency."
What that tells me is people don't have to worry about a lop or redenomination because in order for you to have a redenomination or a lop you have to create new currencies. It also tells me they're not creating the lower denominations which means they're going to stick with the currency they currently have. Some people see this as the glass half full. Some people look at it as the glass is half empty.
I agree it's going to happen. I don't have doubt about that. I'm just keeping an eye on whether or not they want to delete the zeros. If they go to a free floating market hopefully there won't be...deleting the zeros and we'll see the exchange rate go up pretty quick before they have time to respond...
Iraq was already a member of the World Trade Organization. They are going through the ascension process for a second time. That's because all the rules, regulations, understandings and business practices...changed once the fall of Saddam Hussein. Now we have to make sure all their practices, rules and regulations regarding trade line up once again with the World Trade Organization. Iraq has been a member of the World Trade Organization since 2004. This is their second time throughout the ascension process...
There's this misconception that the World Bank, IMF and the BIS get to tell countries what to do. They don't...They facilitate. They make recommendations but they don't control a country's bank..----.
Another budget is getting ready to come and go and there is no talk of the rate change. Isn't that what they told you? It would be in the new budget because there was no way for them to do large projects, there was no way for them to move forward without an exchange rate change...Why so secret now? Is this one of those things they're trying to keep from the people?
They didn't keep it from the people last time [they increased the value] and there's no mention of it this time...Keep your fingers crossed, it hasn't passed yet so maybe they'll change it between now and the time they pass it...You guys know what I think.
Floating the currency means the value is determined by the market, so if people for whatever reason want to start investing in the Iraqi dinar and the start buying up the Iraqi dinar that means the demand for it is there, think supply and demand.
Since they have a liquidity issue, there's not going to have a lot of Iraqi dinar out there and if that's the case then they don't have the supply to feed the demand...But we'll be more than happy to sell our Iraqi dinar back to them if they get the exchange rate up around a quarter or more. I know I would.
Planning: The Population Census Will Achieve Fair Distribution Of Wealth Among The Governorates
Economy News – Baghdad The Ministry of Planning confirmed, on Thursday, that the general census of population and housing will give accurate figures about the size of the real population mass in each governorate, and will achieve fairness in the distribution of wealth among them.
The spokesman for the Ministry of Planning, Abdul Zahra Al-Hindawi, said in a statement reported by the official news agency, and seen by Al-Iqtisad News, that “the general census of population and housing is one of the field foundations for resolving the existing controversy regarding the provinces’ entitlements from the general budget,” explaining that “the census “It will result in a fair distribution of wealth among the governorates, because most of them complain of the limited financial allocations they receive that are not commensurate with their population density.”
Al-Hindawi added, “The estimated and statistical censuses will give accurate numbers about the size of the real population mass in each governorate, and therefore the state ministries will develop their action plans to fulfill the requirements for each governorate to enjoy its right from the general budget, according to the number of its population that will be mentioned in the general census.”
He stressed that "the Ministry is striving to adopt international scientific standards and field methodologies in conducting the census, using modern electronic technologies," expressing his hope that "the accuracy, reliability, and comprehensiveness of the data will reach 90 percent or more." Views 88 Added 05/30/2024 - https://economy-news.net/content.php?id=43874
I wanted to share an interesting conversation I had...with my CBI contact this past Wednesday...I was told that the committee to work on the Project to Delete the Zeros has sent the CBI prepared articles to the news media for the sake of educating the citizens on the upcoming process. However, they are dated and so they are for the near future and not for current news. Yes, they are getting ready and moving ahead.
...we read three articles about the CBI official rate equaling the Parallel or Black market rate in the coming days. WOW!...Saleh, the prime minister’s financial advisor, then goes on to say this will make one dinar equal to one dollar in Iraq. WOW! ...I was told by my CBI contact months ago to watch for right before the CBI makes one more “official” rate change closer to 1000 from 1320. If you take 1000...and delete the three zeros 1000 what do you have? Of course, you have a situation of 1 dinar equals 1 dollar...But I believe that when they CBI does make this next official rate change it will move closer to 1166 and not 1000 which would make 1 dinar = 1.16 dollars just over a dollar to help the banks retrieve these dollars hoarded outside of the banks... Let’s sit tight and watch this play out.
Samir Al-Nusairi, the Central Bank announced that it will launch the national lending strategy on 5/25/2024, which is a clear announcement of the beginning of the second phase of its banking reform strategy...CBI announces it has completed the first phase of it by...building solid international banking relationships with international banks and correspondent banks. Get ready….
The UN, IMF and World Bank all on one day, Thursday, noted significant progress that Iraq has made in recent years, despite ongoing challenges. The reinstatement spigot has been opened. The direction is now clear.
So, in today’s news we read multiple articles coming out from the CBI and the Iraqi news telling us about yet more “WOW!” news...much of this news is confirming what my CBI contact told me recently so my trust level of my contact increases too. ...In today’s news the CBI is telling us they are moving into the “second phase of banking reforms” ...WOW! WOW! WOW! ...Folks this RV train is moving along rapidly now. It is right in our faces now what they are doing. No more guessing or hoping. The reinstatement spigot is now wide open! ...The reinstatement is coming...Folks, it is now EXPLODING!
So, in today’s news we read multiple articles coming out from the CBI and the Iraqi news telling us about yet more “WOW!” news...much of this news is confirming what my CBI contact told me recently so my trust level of my contact increases too. ...
In today’s news the CBI is telling us they are moving into the “second phase of banking reforms” ...WOW! WOW! WOW! ...Folks this RV train is moving along rapidly now. It is right in our faces now what they are doing. No more guessing or hoping. The reinstatement spigot is now wide open!...The reinstatement is coming...Folks, it is now EXPLODING!
Folks just remember I am telling you that Iraq already has a value to the dinar way above the 1/6 of a penny. They do not have to develop the private sector to raise the dinar, the economy or...export more products...
Al-Rafidain Announces The Implementation Of The Comprehensive Banking System In 27 Branches In Iraq
Economy Thursday, May 30, 2024 Baghdad/National News Center Al-Rafidain Bank
Announced These two branches join the other branches in which the comprehensive system was activated in Baghdad and the governorates, which amount to 27 branches, in addition to the branches of the border crossings (Zurbatiyah, Safwan, Arar, and Trebil).
This step represents an important part of the bank’s efforts to leave paperwork and move completely towards electronic transformation, in line with the priorities of the government program that focuses on electronic transformation in financial transactions. This transformation aims to reduce the number of red tape for citizens and reduce time and effort in completing their transactions.
Rafidain Bank confirmed that the plan for digital transformation and adoption of the comprehensive banking system is proceeding according to the set timings, with the aim of including all branches of the bank with the application of the system, which enhances the efficiency of banking service and increases customer satisfaction. https://nnciraq.com/256707/
FIREFLY:Television is showing a report on paper from IBBC on the de-dollarization inside of Iraq. They're telling us they've been doing it all this time...They even talk about that part from the World Bank discussion on changing the dinar exchange rate.It's powerful. This is all on the news.
FRANK: The monetary reform education to you citizens will get very loud...
FIREFLY:Sudani didn't say anything about the rate inside of the budget. They didn't say a word. COM didn't say anything. COM saw the budget with Sudani. We see them sitting there and they're looking it over but nothing is announced except the approval and that it's going to the House of Parliament now.
FRANK: You know very well what' going on. He will protect the budget until the very last nano second.
FIREFLY: The news has that specialist...talking about the best way to fill in the gap for the dinar and the dollar (illegal market). He's telling us the best thing for it to do this is to float...Saleh now talking saying the CBI is the only one that can control this needed float.
FRANK: They're going to float your currency because with a float they can come out at a higher rate than 1 to 1...this is a reinstatement of your exchange rate...The fact that they're talking about floating all day long...is because this is the next step in the monetary reform. Once they give you the new exchange rate and your new currency seconds later your currency will start to float...on international platforms
FIREFLY: The news has that specialist...talking about the best way to fill in the gap for the dinar and the dollar (illegal market). He's telling us the best thing for it to do this is to float...Saleh now talking saying the CBI is the only one that can control this needed float.
FRANK: They're going to float your currency because with a float they can come out at a higher rate than 1 to 1...this is a reinstatement of your exchange rate...The fact that they're talking about floating all day long...is because this is the next step in the monetary reform. Once they give you the new exchange rate and your new currency seconds later your currency will start to float...on international platforms
----
FIREFLY: Ever since Sudani came back from Washington DC he has been talking to us about metal coins and paper fils. He said the coins are both silver and gold...
FRANK: The monetary reform education is being presented to the Iraqi citizens...
FIREFLY: International Development Bank opens in Erbil.
FRANK: Notice how they are preparing your banks in many ways to receive the new exchange rate when Sudani releases it. They talked to you about the float...the basket... the lower notes...the old lower notes, your history...Now they're going to tell you Iraqi citizens about your banks...they are educating you on the many services that your banks will be offering you once this exchange rate is released.
FIREFLY: Television says Iraq is now producing 1 million liters of gasoline on a daily basis with the new refineries...They are saying we will have enough gasoline for our self sufficiency of our county and also for global trading on the market..
FIREFLY: They said our success is from the visit to the United States of America because it lifted almost all sanctions on our banks and others are close to being lifted too.
Hisham Al-Rikabi confirms the government's interest in restoring Iraq's status on the Arab and international levels
5/30/2024
Member of the Board of Commissioners of the Media and Communications Commission, Hisham Al-Rikabi, confirmed today, Thursday, the government’s interest in restoring Iraq’s status on the Arab and international levels.
Al-Rikabi said in a blog post on the “X” platform: “The decision to choose Iraq to head the Council of Arab Information Ministers and to host Baghdad for its fifty-fifth session came as a result of the government’s interest in restoring Iraq’s position on the Arab and international levels and the keenness of the Media and Communications Commission to develop this sector and continue consolidating the foundations of freedom of opinion and expression.” In the country." LINK
Did you listen carefully to the opening audio dialogue of today’s Newsletter? If not, go back and listen to it. The train is moving faster down the tracks now than ever before.
I wanted to share an interesting conversation I had yesterday with my CBI contact this past Wednesday. We talked about our families and then went into information about the Iraqi dinar information. I was told that the committee to work on the Project to Delete the Zeros has sent the CBI prepared articles to the news media for the sake of educating the citizens on the upcoming process. However, they are dated and so they are for the near future and not for current news. Yes, they are getting ready and moving ahead. I asked them about these TV screens broadcasting education about the lower denominations and they told me that this is not yet being broadcast. They asked me who told me this. I told them people in the US are telling investors of this news. Again, they told me it was all nonsense. So, my conclusion was that someone is filling these intel gurus out there with stupid hyped up nonsense. My suggestion is to stay away from people like this and their lies. Next, I was reminded again, as I was in the past, that the CBI is hiding nothing and will hide nothing in regards to raising the value of the dinar. That when it is time to notify the people of Iraq of any event of a revaluation, it will not only be televised but also on news articles all over the Iraq media channels.
I then wanted a verification if the status of the parallel market versus the official rate. I was told this is still a priority and the rates in the parallel market did for a couple days were very close to the official rate but that this could just be temporary. The Central Bank needed a period of time to watch these rates. I was told the effort of the CBI to loosen up on the dollar in certain sectors, where the black market dominated, did help the situation and this only could be accomplished once tightening first took place. I was also told there was a shift occurring in the obtaining of the dollars from the banks away from street vendor exchangers which is a positive sign that the official rate is taking hold, finally. These are all good signs they are showing yet more stability and consistency. I was also told this was all in line with what the CBI wanted to see at this time, as the electronic platform is to end in June.
So, I will add to today’s news that I am a bit sick and tired of these idiots telling us of these BIG screens in Iraq and of the CBI broadcasting news of the lower denominations. Simply put…. NOT HAPPENING! It is all just lies, get it? Think, Think, Think! If there were actual broadcast on Iraq TV of the newer lower denominations, or any education in this matter, then why has someone, anyone, not taken a video with their cell phone of the broadcast? I will tell you why. It is because they can’t do it because IT DID NOT OCCUR not yet. This does not mean it will not occur and sooner than later, but not yet!
Why the rush to tell so many lies!
What else is in the current news?
There was news of an article that stated and I quote – “The budget is not affected by the rise or decline in dollar exchange rates, because Iraq will receive the dollar from the export of oil, and on the contrary, revenues increase as dollar prices increase globally,” from {Euphrat News}.
All I can say is “I told you so”. The rate of the dollar to the dinar will NEVER be in the budget. How many times must I say this to you? Now once again we read an article confirming again what I have been telling you. Please stop all this stupid hype about the new RV rate being published in the 2024 budget. Read my lips – NOT GOING TO HAPPEN! I will tell you why. Continue reading….
The budget is dependent on the price of oil. Do you get it now? Their words not mine. There is no reason to put the rate of the dinar inside the budget. It does not even make any sense. Yes, the price of oil is in the budget as the budget is dependent on the oil revenues, which are in US Dollars.
What else is in the current news?
The head of the Iraqi Private Banks Association, Wadih Al-Handal, confirmed today, Wednesday, the effort to open more prospects for work with correspondent banks, while indicating that the joint committee with the American side regarding the banking sector will begin its work next week. Folks this is all positive news and exactly what we should expect to see at this point in time. Yes, it is now all about the Banking Reforms. This is what is going to get the dinar to officially pass the dollar. We already know the value is greater and so now we just need to go through the motions to get it recognized to its true value. This part is all political, yes just politics. And so please don’t tell me politics does not play a role in all this. I will say it again in that Biden is not going to let the dinar revalue. I have explained this to you before as to why I feel this way.. Sorry if the TRUTH hurts. Could some miracle happen to take him out of the Whitehouse prior to November? This could happen and I believe it MAY happen, but I have no written proof it that it will. It is just my best intuition as a woman and the knowledge I know about what is going on in Washington DC right now.
The head of the Iraqi Private Banks Association, Al-Handal said, in a statement reported by the official news agency and seen by Al-Iqtisad News, that “the Prime Minister’s recent visit to the United States of America had a great impact on the understanding with the American side,” indicating that “what is important in this understanding is the formation of the committee that will begin… Its first meeting is at the beginning of next June 2024.
We must now buckle down and pray and pray like never before for the success of Al-Sudani and his agreements with Washington are implemented. Pray for the U.S. in that there are strong enough representatives in Congress and the Senate who will stand up and continue to fight to uphold the US Constitution and keep fighting this Washington corruption. Pray that that God’s Hand will intervene and save our great country.
Professor Frank Gunter launches a new white paper on de dollarisation of Iraqi economy.
29th May 2024
‘Two Cheers for Iraq: The Dinar – Dollar Exchange Rate Challenges’
Professor Frank Gunter publishes a new paper commissioned as part of a series by IBBC’s advisory council on the challenges of de-dollarisation for Iraq.
The Advisory Council members and IBBC members have actively contributed to the paper in the past 4 months. It will be presented online on the 18th June in a webinar and in person at the Spring Conference on 2nd July. The Arabic translation will be published soon.
Professor Gunter provides an analysis of the drivers of impact on the dinar exchange rate and examines how best to deal with the parallel market of dinars to dollars. He outlines the practical policy initiatives that should reduce the gap between the official and parallel exchange rates in the medium-term.
In particular he lauds the Government of Iraq on its commitment to tackle corruption and to modernise the banking system in one fell swoop but warns of the pressure on the dinar exchange rate as budgets are overstretched and the new banking recipients (state banks) receive the liquidity to enable the economy to perform.
He writes ‘All three of these forces – the anti-corruption effort, the banking liberalization, and the lavish 2023-2025 budget – will create challenges for the management of the dinar exchange rate. One could argue that over the last two decades the Government of Iraq (GoI) had little control over its exchange rate; that exchange rate policy was determined by other sectors of the political economy in Iraq. But even if this is true, the level of the exchange rate and changes in that level are believed by many Iraqis and foreigners as providing valuable insight into the quality of economic management in Iraq.
This importance is exemplified by the current efforts to de-dollarize the Iraqi economy while there is excess demand for dollars. This excess demand is shown by a parallel exchange rate of roughly 1500 dinars per dollar compared to the official exchange rate of 1310 dinars per dollar.
An important cause of this exchange rate gap is that the GoI, with the strong encouragement of the U.S. Federal Reserve, is attempting to reduce the use of the U.S. dollar in both Iraq’s internal economy and its external transactions.
Since 2003, the U.S. dollar has facilitated economic growth in Iraq by providing a widely accepted medium of exchange for purchases as well as a reliable store of value for savings. In the long run, whether de-dollarization will have a significant adverse impact on the Iraq economy will depend on how rapidly the GoI can increase both the efficiency of alternative mediums of exchange and the perceived security of alternative stores of value.’
Adopting international standards brings Iraq closer to the International Labor Organization
Consensus on the importance of strengthening the work sectors in the public and private sectors, and in the financial sector in particular, by adopting governance, risk management and compliance procedures and their role in evaluating performance to achieve goals and avoid economic diseases of all kinds, and to bring Iraq closer to the international labor system.
Advisor to the Prime Minister for Financial Affairs Dr. Mazhar Muhammad Saleh said during the Governance, Risk Management and Compliance Forum organized by the House of Wisdom for Training and Consulting: The importance of the forum stems from focusing on three axes that are extremely important for evaluating performance within institutions, whether public or private, pointing out that governance does not allow deviation from compliance rules. The basic principles are that creating performance paths that serve the country requires commitment to these important and internationally recognized standards.
Saleh stressed that adherence to established policies is extremely important in the internal auditing process and is no less important than high disclosure and transparency, pointing out the importance of there being true integration in building human capabilities through solid training and education curricula that create competencies that rise to world-class performance.
The speech of the Acting Chairman of the Finance Committee, Atwan Al-Atwani, which was read out, confirmed that the issue of governance in public and private institutions receives international, regional and local attention as a result of the expansion of the size of institutions, due to the technological development witnessed by the world and the challenges that have been created that require a new business philosophy.
He pointed out that the GRS system is of great importance, especially in the banking sector, as well as for adopting a huge amount of data in public and private institutions via the Internet, and to achieve the goals of this system, we find that it turns data into smart data of value for institutions.
As for the authorized director of the House of Wisdom for Training and Consultations, Hisham Khaled Abbas, he stated that the forum represents a new approach that expands the importance of this concept, and that the role of governance is to promote effective management that achieves results that enhance the reality of the institution, succeeds in achieving goals, and touches on the broader results and objectives of the national economy seeking to evaluate performance and advance the economy. in general.
He stated that keeping pace with global developments is extremely important and brings us close to the international labor system and enhances confidence in the Iraqi labor market, which is looking for an international presence to complete many works, especially in the investment field in various sectors without exception, at a time when we find many major and specialized international companies looking to... Iraq is of particular importance and the business environment is studied very carefully.
Abbas pointed out that governance, compliance, and risk management are important axes that keep us close to important international and regional economies. link
Professor Frank Gunter publishes a new paper commissioned as part of a series by IBBC's advisory council on the challenges of de-dollarisation for Iraq.
The Advisory Council members and IBBC members have actively contributed to the paper in the past 4 months. It will be presented online on the 18th June in a webinar and in person at the Spring Conference on 2nd July."
Professor Gunter shows an analysis on the drivers inside the market that impact the Iraqi Dinar exchange rate and how to close the gap between the Parallel Market and Official Rate of the Iraqi Dinar.
The Iraq Britain Business Council (IBBC) has been working closely with Iraq to help assess and meet the needs of the Iraqi private sector. These assessments inside this research paper will go a long way towards the implementation of meeting the needs of Iraq's private citizens through a determination of an exchange rate that can do so.
Practical policy initiatives are mentioned in this paper to carry forward new monetary policies. They are not calling this project a white paper, but it sure does have all the hallmarks of one.
These new measures are inclusive of budgetary needs for the Iraqi people. One of the items on the CBI website presented today are instructions on home loans. A mortgage is calculated with the inclusivity of an exchange rate to support it.
It is clear that the Iraqi Dinar is moving towards a credit valuation adjustment that can support the needs of their people and Government.
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