Saturday, August 24, 2024

DINAR REVALUATION UPDATE: Iyad Allawi's Stance Against Amendments to Iraq's Personal Status Law : CALLING TO THE UNITY IN IRAQ, 25 AUGUST

Iyad Allawi's Stance Against Amendments to Iraq's Personal Status Law

In a significant development in Iraq's political landscape, Iyad Allawi, a prominent leader and head of the National Coalition, has firmly opposed proposed amendments to the Personal Status Law. 1 These amendments, pushed by Shia political blocs within the Iraqi parliament, have sparked widespread controversy and debate across the nation. Allawi's rejection underscores the deepening sectarian tensions and the potential implications for the unity of Iraqi society.

Personal Status Law: A Unifying Force?

The Personal Status Law, enacted in 1959 under Prime Minister Abdul Karim Qasim, has historically served as a unifying legal framework for all Iraqis, regardless of sectarian affiliations. 4 Allawi's concern is that the proposed changes could erode this unifying fabric by allowing citizens to opt for sectarian-specific interpretations of the law, thereby reinforcing divisions and sectarianism within the country.

The Impact of Sectarianism

Allawi's opposition to the amendments is rooted in his belief that they could exacerbate existing divisions and reinforce sectarianism at a time when Iraq needs to address more pressing issues such as poverty and unemployment. 1 The leader has called for a focus on legislation that benefits the individual and society as a whole, emphasizing the need for national political forces to overcome their differences and unite on matters that impact the lives of all Iraqi citizens.

A Call for Unity and Focus

In his meeting with members of the 188 Alliance, Allawi stressed the importance of addressing essential issues that affect the Iraqi citizen, advocating for a collective effort to tackle problems that hinder national progress. 1 He has urged the political forces to set aside secondary disputes and concentrate on building a more cohesive and resilient society.

Widespread Controversy

The proposal to amend the Personal Status Law has indeed triggered a heated debate within Iraq, with opposing factions voicing their concerns and support. 1 Critics argue that the amendments could lead to the marriage of minors and deprive women of their rights to alimony and custody. The government has responded by initiating discussions through the “Supreme Council for Women’s Affairs” to address the concerns raised, highlighting the complexity and sensitivity of the issue.

Conclusion

Iyad Allawi's firm stance against the amendments to the Personal Status Law reflects a broader concern about the potential for such changes to deepen sectarian divides in Iraq.

His call for unity and focus on issues that impact the lives of all Iraqis resonates with many who fear that sectarian politics may further destabilize the country. The ongoing controversy surrounding the Personal Status Law underscores the need for a balanced approach that respects the rights of all Iraqis while preserving the social cohesion that is vital for the nation's stability and progress.

"THERE IS A LOT OF EXPECTATIONS IN IRAQ THIS WEEKEND" BY MARKZ, 25 AUGUST

MarkZ

[via PDK]

As far as RV related news – there is a lot of expectations in Iraq for this weekend.

But no huge movement yet. We are waiting to get some news. Iraqi contacts are pretty hopeful they can force a dinar value change to reduce the use of US dollars . A lot of hopeful talk …and most are looking for a change on Sunday. That’s only a day away so guess we will soon find out.

COMMENT: ...Iraqi Citizens are being shown the new lower denominations on the street level. They are being distributed in Iraq…If so, I assume this puts us in a short window until it’s on forex for us. ;

MarkZ: If they are being distributed…yes. We do know they have printed them…we have seen the contracts with DeLaRue in 2018 when they were printed. We know they have sent “cut sheets” or samples to banks , large retailers etc…showing all the security features etc. So they have printed them, prepared everyone, educated the exchange houses. They have also formed a committee to educate people on price changes. It’s clear they are going to lower denominations. If they are finally releasing them at the street level… Well, that is huge news...

IRAQ'S BOLD MOVE: DINAR PEGGED TO A CURRENCY BASKET

DINAR REVALUATION UPDATE : THE Iraq's Financial Talks with the US Treasury and Federal Reserve in August 2024, 25 AUGUST

Iraq's Financial Talks with the US Treasury and Federal Reserve in August 2024

Iraq's efforts to address banking violations and dollar restriction issues have led to significant diplomatic engagements with the US Treasury and Federal Reserve.

In a strategic move, Iraq established a committee to tackle the ongoing challenges, demonstrating a proactive approach to resolving financial discrepancies with the United States.

Financial Coordination and Dialogue

The meetings, scheduled for the end of August 2024, are expected to cover a range of topics, including the status of Iraqi banks under US sanctions and the accumulated Iranian funds in Iraq.

These discussions aim to ease the tension caused by dollar shortages in Iraq, a situation exacerbated by increased scrutiny from the New York Fed on transfers to Iraqi banks.

Iraqi Foreign Minister Fuad Hussein described the talks as "very useful," indicating the country's commitment to finding practical solutions.

The dialogue reflects Iraq's intention to resolve issues related to dollar restrictions, which have impacted the local economy, particularly following the Federal Reserve's measures that halted transactions from dollars to yuan, aimed at supporting Iraq's foreign trade.

Economic and Political Context

The ongoing talks occur against the backdrop of complex economic and political dynamics.

Iraq's Prime Minister Mohammed Shia al-Sudani's visit to the United States earlier in the year highlighted the country's desire for a more comprehensive relationship, encompassing economic, educational, and people-to-people domains.

The symbolism of this visit, from the timing to the size of the delegation, underlined Iraq's aspirations for a new chapter in bilateral relations.

Security concerns, particularly the presence of US troops and the Global Coalition to Defeat ISIS, have also been part of the dialogue.

The establishment of the Higher Military Commission in August 2023 aimed to assess the operational environment and capabilities of the Iraqi security forces, signaling a shift in focus from the anti-ISIS coalition to bilateral security relations.

Challenges and Opportunities

The talks in August 2024 represent a pivotal moment for Iraq's financial sector and its broader relationship with the United States.

Addressing dollar restrictions and banking violations could pave the way for improved economic stability and cooperation. However, the discussions are likely to be complex, given the intertwined economic, security, and political interests at play.

"NO THEY HAVE A LOT MORE THAN THAT!!!" BY FRANK26, 26 AUGUST

KTFA

FRANK26: "NO THEY HAVE A LOT MORE THAN THAT!!!"...........F26

More than 100 tons.. Iraq is the ninth largest buyer of gold in 2024

8/24/2024

Economy

Iraq ranked ninth globally among the top 10 countries buying gold this year. What is meant by gold is converting foreign currency reserves into gold, not the gold of goldsmiths and citizens.

Iraq bought 100 tons of gold this year, coming in ninth out of the top 10 countries buying gold this year, compared to 1,298 tons bought by Russia, as interest in buying gold is growing amid rising geopolitical tensions and economic fluctuations.

This comes as the precious metal hit an all-time high of $2,531.75 an ounce after breaking above $2,500 for the first time this month amid growing expectations that the Federal Reserve is close to cutting interest rates.

Bullion typically benefits from low interest rates, and central banks hold gold reserves because of its strong collateral, liquidity and yield properties.

LINK

ANALYSIS OF IRAQ NEWS BY MILITIAMAN, 25 AUGUST

Militia Man

Article Quote: "Alaq confirmed... there will be meetings held with the Federal bank and US Treasury at the end of this August"

What's the date today?

It's not far off. The last meeting he had was unannounced...I think him coming back to the Untied States, he's probably going to bring something he should have had done a long time ago.

Article: "Iraq is heading towards printing new paper currency"

They're not going to print new currency in the sense of triple zero notes...There's no reason for it. They were destroying perfectly good triple zero notes. They did a video on it...destroying money, making little pellets. They had a whole show on it.

Why would they be destroying good money?

Granted, if they filmed that they were damaged with ink on them, all these different things, I understand that. That wasn't the case. In 2018...they spent tens of millions of dollars on printing new currency... Bottom line is, why would they be printing triple zero notes at a time when inflation is low? That would create inflation. The whole idea is not to do that.

Article quote: "There's no intention to print new paper currency at the central bank..."

NDA IN CURRENCY EXCHANGE

DINAR REVALUATION UPDATE: CBI & OLIVER WYMAN INTERNATIONAL ARE DEVELOPING A PLAN FOR RESTRUCTURE THE PRIVATE BANKING SECTOR IN IRAQ, 24 AUGUST

Iraq and America Resume Negotiations on Banking Sector in August 2024

Negotiations between Iraq and the United States regarding the banking sector are set to resume on August 26, 2024.

A delegation from the Central Bank of Iraq will travel to the United States to engage in discussions aimed at addressing issues in the banking sector. The talks are crucial for Iraq's economic stability and the future of its private banking institutions.

Background and Objectives

The delegation's visit to America is part of Iraq's efforts to reform its private banking sector.

The Central Bank of Iraq has contracted with Oliver Wyman International to develop a plan for restructuring the sector over the next six months.

This plan may include the merger of some banks or the revocation of licenses for others, reflecting the Iraqi government's commitment to improving the efficiency and stability of its financial system.

Ongoing Talks and Challenges

Iraq has been in ongoing talks with the US Treasury regarding dollar restrictions and sanctions on Iraqi banks.

Iraqi Foreign Minister Fuad Hussein has described these discussions as "very useful," indicating that they will continue to address pressing issues such as the list of Iraqi banks under US sanctions and the status of Iranian funds in Iraq.

The talks are seen as a significant step toward resolving the challenges facing Iraq's banking sector, particularly in light of the dollar shortages experienced last year after increased scrutiny by the New York Fed.

Significance of the Talks

The negotiations are crucial for Iraq, as they aim to address the restrictions on dollar transactions and the impact of sanctions on its banking sector.

Resolving these issues would not only stabilize Iraq's financial system but also improve its global economic relations.

Moreover, the talks signify a collaborative effort between Iraq and the US to foster better economic ties and address mutual concerns in the banking sector.

Iraq and America resume negotiations on banking sector next Monday, 24 AUGUST

Economy News – Baghdad

A delegation from the Central Bank of Iraq travels to the United States of America to resume negotiations on the banking sector.

A source familiar with the Economy News told “Economy News” that a delegation from the Central Bank of Iraq will start its negotiations with the US side on the current 26th of Aug, in America.

He added that the central bank has moved to sign a contract with Oliver Wyman International to present a plan on reforming the private banking sector, over the next six months.

He pointed out that the plan proposed to be submitted includes the merger of some banks or the cancellation of the license of some banks.

43 views

Added 2024/08/24 – 12:59 PM

https://economy-news.net/content.php?id=46669

WHAT WILL HAPPEN ONCE THE IRAQI DINAR IS RELEASED UPON THE WORLD BY ARIEL, 24 AUGUST

ARIEL

Now you all have to factor in all the money that will be coming in once the Iraqi Dinar is released upon the world.

Because I have always told you all that this will permanently put you on the new timeline where poverty will be nonexistent.

And that everything you could possibly want will be provided because we are going back to the 1955 prices.

As I have already told you all 44 states have already made precious metals legal tender.

So this means taxes by default will be a thing of the past because you will no longer be purchasing things with the Federal Reserve Notes that allows you to be subject to the rules of the old system has caused endless poverty. This is why things like Basel 3/4 are important because it will end the HOA monopoly on homeownership policies.

The gold standard alone can do that without it.

Anyway there's a lot I can say but you get the picture.

PATREON DINAR INVESTOR: CRITCAL ARTICLE

DINAR REVALUATION UPDATE: Understanding the Rise in Foreign Dollar Remittances in Iraq and Its Economic Impact in 2024, 24 AUGUST

Understanding the Rise in Foreign Dollar Remittances in Iraq and Its Economic Impact in 2024

In 2024, Iraq has seen a significant increase in foreign dollar remittances, a trend that has caught the attention of economists and policymakers alike .

According to Mazhar Muhammad Saleh, the financial advisor to the Prime Minister, this increase is a direct result of a policy shift by the Central Bank of Iraq.

The bank has altered its approach to foreign transfers and monetary market intervention, leading to a smoother and more flexible process for the private sector.

The Policy Shift and Its Effects

Saleh attributes the rise in foreign currency remittances to the Central Bank's decision to change its financing mechanisms for foreign trade for the private sector .

Previously, the compliance platform rejected nearly 85% of foreign transfer requests, creating a bottleneck for businesses.

However, the bank's new policy of strengthening the accounts of correspondents of Iraqi banks abroad has facilitated a more straightforward and efficient process.

This change has enabled a high rate of daily foreign transfer requests to be processed directly through foreign correspondent banks, without the need for the compliance platform.

The impact of this shift has been positive on the national economy, particularly in stabilizing the supply and demand dynamics within the country.

The increased flexibility in foreign currency transactions has helped in maintaining the stability of economic functions, supporting both the supply and demand sides of the market [6].

The Role of Foreign Remittances in Iraq's Economy

Foreign remittances play a crucial role in the economy of many developing countries, including Iraq [4]. These transfers of money by workers abroad to their families and communities back home have been growing rapidly and now represent a significant source of foreign income for Iraq. While the exact size of remittance flows can be difficult to estimate due to unofficial channels, the recorded international migrant remittances to developing countries are substantial [4].

In Iraq, the rise in foreign dollar remittances has a direct impact on the national economy. The ease of foreign transfers has not only stabilized the supply and demand functions but also contributed to economic growth and development. The increased liquidity and financial stability provided by these remittances can be used for investments, consumption, and other economic activities, which in turn can stimulate the economy [6].

Challenges and Opportunities

Despite the positive effects, Iraq faces challenges in managing the increased inflow of foreign remittances. Ensuring that these funds are used productively and contribute to sustainable economic growth is crucial. The government's strategy revolves around diversification, reducing reliance on oil revenues, and fostering partnerships to drive sustainable growth [5].

As Iraq moves towards a new era of development under Prime Minister Mohammed Shia' Al Sudani [5], the role of foreign remittances in the national economy becomes even more significant. The government is exploring public-private partnerships (PPPs) to finance major development projects over the next two years, which could be facilitated by the increased availability of foreign currency [5].

Conclusion

The rise in foreign dollar remittances in Iraq is a result of a strategic policy shift by the Central Bank.

This change has had a positive impact on the national economy, contributing to stability and growth.

However, managing these funds effectively and ensuring they contribute to sustainable development remains a critical challenge for the Iraqi government.

Saleh explains why the dollar’s foreign remittances are so high and their impact on the national economy, 24 AUGUST

Saleh told {Euphrates News}

that “the phenomenon of the increase in sales of foreign transfers from foreign exchange is due to the results of the important change that took place in the policy of the Central Bank of Iraq in dealing with foreign transfer and interfering in the monetary market through the shift in foreign trade financing mechanisms for the private sector from a compliance platform to new mechanisms represented in strengthening the accounts of correspondents of Iraqi banks abroad with foreign exchange at deliberate and sufficient levels commensurate with the requirements of financing foreign trade for the private sector of foreign exchange.”

He added, “After the compliance platform previously refused during the past months about 85% of external transfer requests, the policy of strengthening the accounts of Iraqi banks with their correspondents from sober international banks, became as an alternative policy, which is easy, easy and flexible,

which made the implementation of daily external transfer requests available and achieved through foreign correspondent banks directly without passing through the platform and with a high percentage of 85% of the total demand for those daily external transfers.”

Saleh explained, “This high change in the flexibility of transfers has reflected positively on the national economy, especially in the stability of the total supply and demand functions within the national economy in two directions, the first of which is {supply side},

represented by the availability of a wide commodity and service supply in the local market through flexible imports funded at the fixed official exchange rate of 1320 dinars per dollar.”

He explained, “The other trend is {the demand side}, which refers to the process of exchanging the Iraqi dinar to dollars for the purposes of financing foreign trade through the aforementioned transfers, which means that meeting the demand for the dollar represents a direct meeting of the demand for (foreign goods, services and benefits) for the benefit of the local market.”

He pointed out that “meeting the demand for foreign currency is an important pillar of the monetary policy of the Central Bank of Iraq, and achieving its operational objectives in addressing and controlling the excess domestic liquidity levels of the dinar, which constitutes the so-called {overcemand}. This control of local liquidity also represents a positive intervention of the Central Bank’s monetary policy in the cash market and control of the levels of that liquidity.”

Saleh continued, “This control leaves its positive effects in achieving a balance between the real current in the macroeconomic of goods, services and benefits and the monetary current within the economy itself,” noting that “such a balance between supply and demand achieves stability in the general level of prices and is the growth levels of inflation rates, which is reflected positively on the stability of the purchasing power of the dinar and the general monetary income.”

Raghid

https://alforatnews.iq/news/صالح-يوضح-سبب-ارتفاع-حوالات-الدولار-الخارجية-وانعكاسها-على-الاقتصاد-الوطني

MILITIAMAN: IQD Update - Iraq Dinar News - #iraqidinar #iraqidinarexchangerate USA /...

DINAR REVALUATION UPDATE: Impact of the Basel D-SIB Framework on Iraq's Banking System in 2024, 24 AUGUST

Impact of the Basel D-SIB Framework on Iraq's Banking System in 2024

The Basel D-SIB (Domestic Systemically Important Banks) framework, published by the Basel Committee on Banking Supervision in October 2012, has been instrumental in strengthening the resilience of domestic banking systems worldwide.

As of 2024, Iraq has taken significant steps to align its banking sector with this framework, enhancing the loss absorbency capacity of its banks beyond the requirements set by Basel III.

Enhancing Loss Absorbency and Risk Management

Iraq's banking system has undergone reclassification to better absorb shocks caused by economic failures.

This reclassification involves the adoption of stringent measures to ensure banks have sufficient capital and liquidity to support all risks in their business operations.

Implementation of Basel Framework Pillar

In June 2024, a mission was organized to strengthen the Central Bank of Iraq (CBI) supervisors' capacity in Basel Framework Pillar 2.

This pillar focuses on the supervisory review process (SRP) and internal capital adequacy assessment process (ICAAP).

The mission aimed to enhance understanding and implementation strategies for these components.

Treasury Single Account (TSA) Implementation

Iraq has also progressed in implementing the Treasury Single Account (TSA).

The third workshop on advancing TSA implementation was held in July 2024, with core members from the TSA Implementation Committee actively engaged in discussions and planning.

Actions agreed upon include advancing the TSA design, developing a database for TSA bank accounts, and designing portals for data collection.

Impact on Currency and Global Banking Measures

Iraq's measures to reclassify its banking system indicate its preparedness to align with global banking stress measures.

While the immediate impact on currency reclassification is not explicitly disclosed, these steps signal a move towards greater financial stability and international compliance.

Conclusion

Iraq's adoption of the Basel D-SIB framework in 2024 reflects its commitment to enhancing the resilience of its banking system and aligning with global financial standards.

Through the implementation of Basel Framework Pillar 2 and the TSA, Iraq is positioning its financial sector to withstand economic shocks and participate effectively in the global economy.

LATEST FROM GOLDILOCKS, 24 AUGUST

GOLDILOCKS

A delegation from the Central Bank of Iraq travels to the United States of America to resume negotiations on the banking sector.

A source familiar with the Economy News told “Economy News” that a delegation from the Central Bank of Iraq will start its negotiations with the US side on the current 26th of Aug, in America.

He added that the central bank has moved to sign a contract with Oliver Wyman International to present a plan on reforming the private banking sector, over the next six months.

He pointed out that the plan proposed to be submitted includes the merger of some banks or the cancellation of the license of some banks.

https://search4dinar.wordpress.com/2024/08/24/iraq-and-america-resume-negotiations-on-banking-sector-next-monday/

In October 2012 the Basel Committee on Banking Supervision published a document on “a framework for dealing with domestic systemically important banks” (the “Basel D-SIB framework”).

This followed the work that had already been done on the policy measures designed for global systemically important banks (“G-SIBs”), to enhance their loss absorbency capacity over and above Basel III requirements."

What does this mean for Iraq? It means that Iraq has reclassified their banking system to absorb the shocks of stress caused by economic failures.

Iraq has protected their banks with gold and other commodities to ensure their banking system continues to flow into the new economy.

Does this reclassify their currency? It sure does. We are not being told that it is presently in place just yet. All we know is that they have the means to reclassify their banking system if Global Banking stress measures need to be taken.

https://www.iomfsa.im/regulated-sectors/deposit-taking/domestic-systemically-important-banks/

https://cbi.iq/news/view/2649

https://youtu.be/cXADsXdx1oQ?si=IHe9Ato_xtnSeOgS

---

Selected Banks in Iraq have reached a new classification. More on this tomorrow.

These banks will be supported no matter what stress is taking place.

https://youtu.be/cXADsXdx1oQ?si=Phm4jVLSYGSfJ4to