Monday, September 9, 2024
Coffee with MarkZ. 09/09/2024
DINAR REVALUATION REPORT: Potential Lifting of Ban on Iraqi Banks Within Six Months, 10 SEPT
Potential Lifting of Ban on Iraqi Banks Within Six Months
As of September 9, 2024, a significant development in Iraq's financial sector is anticipated, with the possibility of lifting the ban on 14 Iraqi banks that were previously prohibited from conducting US dollar (USD) transactions. The ban was initially imposed due to concerns over illicit activities, including money laundering and the potential redirection of US currency to sanctioned individuals or jurisdictions. However, recent assessments suggest that the banks' compliance mechanisms and regulatory oversight have improved, paving the way for a potential reversal of sanctions.
The Impact of the US Dollar Ban on Iraq
The imposition of the ban in recent years has had a significant economic impact on Iraq, affecting the Iraqi dinar's stability and leading to a tightening of wire transfer controls between the US Treasury and the Central Bank of Iraq. This, in turn, caused a decline in the value of the Iraqi currency. The USD plays a crucial role in the Iraqi economy, and the ban's effects were felt across various sectors, particularly in trade and investment.
Iraq's Strides Towards Economic Stability
The financial advisor to Iraq's Prime Minister, Mazhar Muhammad Salih, has highlighted the role of the central bank's decisions in reducing inflation rates and enhancing the value of the national currency. Salih emphasized that sustainable economic growth, driven by high productivity, good employment, real investment, and innovation, is essential for the currency's strength. Moreover, technology and innovation are seen as key factors in improving productivity and economic growth, which can, in turn, enhance the currency's value.
Reforms and the Future of Iraqi Banking
Despite ongoing challenges, including corruption within the banking sector. Iraq's financial system has shown signs of resilience and improvement. The potential lifting of the ban on Iraqi banks is a testament to the Iraqi government's efforts to reform and stabilize its economy. However, the effectiveness of these policies in confronting real economic challenges and the ability of the Iraqi economy to achieve sustainable growth remain subjects of ongoing debate and scrutiny.
Conclusion
The anticipated lifting of the ban on Iraqi banks within six months signifies a positive step forward in Iraq's economic recovery and financial stability. This development reflects the progress made in addressing previous concerns over illicit financial activities and underscores the importance of continued reforms and improvements in the banking sector.
Economist: The Ban On Iraqi Banks May Be Lifted Within Six Months, 10 SEPT
Economist Ahmed Abd Rabbo revealed today, Sunday, that
Oliver Wyman has conducted a comprehensive review of the conditions of Iraqi banks, and its report may be issued after six months.Abd Rabbo said in a special statement to the Maalouma Agency,
“The decisions of that company regarding the sanctioned banks will be binding on the Central Bank of Iraq and the US Federal Reserve,” noting that
“reforming the banking system facilitates the process of economic reforms.” He continued,
"The company's final report may lift the ban on Iraqi banks, while it was positive," pointing out that
"lifting the ban on Iraqi banks will help support the Iraqi economy."
It is noteworthy that America imposes several sanctions on Iraqi banks in an attempt to pressure the Iraqi government to pass various policies. https://almaalomah.me/news/75810/economy/اقتصادي:-الحظر-على-المصارف-العراقية-قد-يرفع-خلال-ستة-اشهر
GOLDILOCKS CC NOTES HIGHLIGHTS, 10 SEPT
Summary
New IRS Exchange Tax Law effective September 9, 2024, impacts cryptocurrency trading, international treaties, and currency valuations.
Highlights
- 🚨 New IRS Tax Law: Effective today, impacting cryptocurrency transactions.
- 🌍 International Treaties: Countries signing agreements affecting trade and currencies.
- 💱 Currency Backing: All currencies to be backed by national commodities.
- 📊 Digital Asset Regulations: New guidelines for reporting gains and losses.
- 🏡 Real Estate Tax Reporting: New requirements for real estate transactions.
- 🔄 Compliance Deadline: New regulations effective September 16, 2024.
- 📅 Future Updates: More changes expected in October regarding currency regulations.
Key Insights
- 📈 Impact of New Tax Regulations: The IRS now requires brokers to report cryptocurrency gains and losses, creating obligations for traders and affecting tax liabilities. This change emphasizes the growing scrutiny of digital assets.
- 🌐 Global Trade Agreements: As countries finalize international treaties, local currencies will replace the US dollar in trade, potentially reshaping global economic dynamics and currency stability.
- 🏦 Commodities-Backed Currencies: The trend of backing currencies with physical commodities like gold and silver increases their stability and trust, hinting at a return to more sound financial practices.
- ⚖️ Real Estate Transactions: New rules require detailed reporting for real estate purchases, reflecting an increased focus on transparency in asset transactions and potential tax revenue.
- 🔍 Regulatory Oversight: The integration of various financial regulatory bodies suggests a more cohesive approach to monitoring currency exchanges and trading practices, enhancing accountability.
- 📅 Upcoming Changes: Significant amendments to currency regulations are set for mid-September 2024, indicating a rapidly evolving financial landscape that investors should monitor closely.
- 💬 Community Engagement: Encouraging dialogue and questions among viewers fosters a supportive community, emphasizing the importance of staying informed during this period of change.
Coffee with MarkZ. 09/10/2024
DINAR REVALUATION REPORT: Iraq's Monetary Reform: Nearing Completion in 2024, 10 SEPT
Iraq's Monetary Reform: Nearing Completion in 2024
Overview of Iraq's Monetary Reform
Iraq is in the final stages of a significant monetary reform that began in 2024. This reform is part of the broader economic measures designed to address the country's fiscal challenges and reduce its heavy dependence on oil revenues. The International Monetary Fund (IMF) has been closely involved in the process, providing guidance and financial support.
Economic Growth and Fiscal Expansion
The Iraqi government has projected continued economic growth, supported by fiscal expansion. This expansion is critical, as it aims to cushion the economy against medium-term vulnerabilities, particularly the increased risk of oil price volatility. To ensure fiscal sustainability, the government is focusing on controlling the public wage bill and increasing non-oil tax revenues.
Challenges and Opportunities
Iraq faces significant challenges in diversifying its economy and modernizing its financial and banking sectors. The country's history of conflict and political instability has hindered economic development and private sector growth. Corruption remains a pervasive issue, and the lack of basic services is widespread. However, the government's commitment to the monetary reform presents an opportunity for Iraq to stabilize its economy and lay the groundwork for more sustainable growth.
Budget Approval and Economic Policy
In a notable development, Iraq's parliament approved a three-year federal budget for 2023 to 2025, the largest in the country's history. This budgetary decision is ambitious but also precarious, given Iraq's heavy reliance on oil revenues. The government's ability to fund local investment projects and hire public sector employees is a positive sign, but the volatility of oil markets and Iraq's limited influence in global oil dynamics pose challenges to its economic stability.
Humanitarian and Development Context
Iraq continues to grapple with the aftermath of conflict, including internal displacement and inadequate public services. Despite this, the country has made some strides in human rights and social development, with efforts to combat corruption and improve government services. The government's focus on the five key issues of corruption, unemployment, poverty, economic reform, and service improvement is crucial for addressing the grievances of Iraqi citizens.
Outlook
As Iraq nears the completion of its monetary reform, the country stands at a critical juncture. The reform's success will depend on the government's ability to implement fiscal adjustments, enhance private sector development, and navigate the challenges of economic diversification and political stability.
DINAR REVALUATION HIGHLIGHTS: " IRAQ IS IN THE FINAL STAGES OF THE MONETARY REFORM" , 9 SEPT
Summary
Dinar Guru updates reveal Iraq is in the final stages of monetary reform, with expectations for lower notes and increased non-oil revenues.
Highlights
- 🚀 Frank 26 reports we’re in the final education phase of monetary reform.
- 💵 Lower notes will be introduced after commercial releases, potentially next year.
- 🇺🇸 CBI’s meeting with the U.S. Treasury is anticipated to be crucial for the exchange rate.
- 🏙️ The new Central Bank skyscraper in Baghdad symbolizes stability and progress.
- 🔄 Non-oil revenue streams, especially liquid natural gas, are set to enhance Iraq’s economy.
- 📜 Investment law expected to pass within two weeks, boosting economic prospects.
- ✅ PM Sedani confirms plans to revalue the dinar and remove zeros during his administration.
Key Insights
- 🔍 The completion of the monetary reform education phase suggests that Iraq is preparing for significant currency changes, indicating a pivotal moment in its economic strategy.
- 📈 The focus on commercials before lower notes suggests a strategic communication plan to prepare the public for upcoming changes, enhancing public trust and participation.
- 🤝 The anticipated meeting between the CBI and the U.S. Treasury could lead to essential agreements that impact the dinar’s exchange rate, emphasizing international cooperation.
- 🏗️ The Central Bank skyscraper not only represents physical growth but also reflects Iraq’s commitment to stability and modernization in its financial institutions.
- 🌍 Iraq’s shift towards liquid natural gas production demonstrates a diversification of revenue sources, crucial for economic resilience and reduced dependency on oil.
- 🌟 The upcoming investment law could attract foreign investments, fostering economic growth and stability, which are vital for the dinar’s value.
- 📅 PM Sedani’s confirmation of currency revaluation ambitions signals a transformative period for the Iraqi dinar, aiming for greater economic strength and public confidence.
DINAR REVALIUATION REPORT: Emphasis on Reducing Inflation and Strengthening the Iraqi Dinar in September 2024, 9 SEPT
Emphasis on Reducing Inflation and Strengthening the Iraqi Dinar in September 2024
In September 2024, Iraq faces significant challenges in managing its economy, particularly in the areas of inflation reduction and strengthening its national currency, the Iraqi dinar. The country's heavy dependence on oil exports has left it vulnerable to global price fluctuations, exacerbating inflationary pressures and impacting the value of the dinar.
Struggling with Macro-Economic Volatility
Iraq's reliance on oil revenues, which account for over 99% of its exports, 85% of the government budget, and 42% of its gross domestic product (GDP), has exposed the country to macro-economic volatility. This dependence has been a double-edged sword, fueling economic growth during periods of high oil prices but leading to severe budgetary constraints and economic instability when oil prices drop.
Government's Fiscal Challenges
The government's budget rigidities have restricted fiscal space and the ability to implement countercyclical policies during economic downturns. Inflation has been a persistent issue, impacting the living standards of Iraqis and complicating fiscal management. The IMF has noted that domestic inflation declined to 4% by the end of 2023, partly due to the currency revaluation in February 2023 and the normalization in trade finance, but imbalances have worsened due to the large fiscal expansion and lower oil prices.
Efforts to Strengthen the Dinar
The Iraqi dinar's value has become a contentious issue, especially after the Central Bank of Iraq devalued the currency in December 2020 in response to the sharp decline in global crude prices. The devaluation led to immediate increases in the prices of imported goods, affecting the purchasing power of ordinary Iraqis and sparking political debates.
The IMF's Perspective
The International Monetary Fund (IMF) has projected that Iraq's economy will grow by 1.4% in 2024 and accelerate to 5.3% in 2025. However, the IMF has also emphasized the need for ambitious fiscal adjustments to stabilize debt in the medium term and rebuild fiscal buffers.
Future Outlook
Iraq's ongoing fiscal expansion is expected to boost growth in 2024, but at the expense of further deteriorating fiscal and external accounts, making the country more vulnerable to oil price fluctuations. The IMF has warned that without policy adjustments, the risk of medium-term sovereign debt stress is high, and external stability risks could emerge.
MILITIAMAN CC HIGHLIGHTS NOTES: " EMPHASIS ON REDUCING INFLATION & STRENGTHENING THE IRAQI DINAR" , 9 SEPT
Summary
The Central Bank of Iraq is implementing banking reforms and enhancing currency stability, aiming for economic growth and cooperation with the Kurdistan region.
Highlights
- 🏦 Central Bank announces comprehensive banking reforms.
- 💵 Electronic platforms for foreign transfers are in progress.
- 🌍 Focus on unifying financial practices between Baghdad and Kurdistan.
- 📈 Emphasis on reducing inflation and strengthening the Iraqi dinar.
- 🤝 Cooperation with the US Treasury and international banks is ongoing.
- 🏗️ Major investments planned in oil and gas sectors.
- 🕊️ Political stability is crucial for economic goals.
Key Insights
- 💳 The Central Bank’s reforms indicate a shift towards a more modern banking system, reducing reliance on dollar auctions and enhancing local currency use.
- 📊 The move to electronic transfers aligns with global banking standards, potentially attracting foreign investments and improving trade efficiency.
- 🔄 Unifying financial practices between Baghdad and Kurdistan may lead to greater economic stability and development for both regions, benefiting all Iraqis.
- 📉 The focus on inflation control and currency stability is vital for public confidence and economic growth, suggesting positive future prospects for the Iraqi dinar.
- 🌐 Collaborations with international financial institutions highlight Iraq’s commitment to meeting global standards, which could enhance its economic reputation.
- 🛢️ Investments in the oil and gas sectors by major companies like Baker Hughes signify confidence in Iraq’s economic potential and its strategic importance in energy markets.
- 🏛️ Political and administrative stability remains essential; ongoing efforts to address political challenges indicate a commitment to achieving a unified and prosperous Iraq.
DINAR REVALUATION REPORT: Preliminary Agreement on US Troop Withdrawal from Iraq by 2026, 9 SEPT
Preliminary Agreement on US Troop Withdrawal from Iraq by 2026
On September 7, 2024, Reuters reported that the United States and Iraq have reached a preliminary agreement on the withdrawal of US-led coalition forces from Iraq, with the majority of troops expected to depart by the end of 2026. The plan, which has been broadly agreed upon but awaits final approval and a formal announcement, would see several hundred troops depart by September 2025, with the remaining forces set to leave by the end of 2026.
Agreement Details and Timeline
According to sources familiar with ongoing negotiations, an agreement has been reached, and it is now a matter of when to announce it. Discussions are underway to establish a new advisory role that could see a smaller number of US troops remain in Iraq following the drawdown.
An official announcement was initially expected weeks ago but was delayed due to regional tensions stemming from Israel's war in Gaza and remaining logistical details. Technical negotiations between Baghdad and Washington, initiated by Iraqi Prime Minister Mohammed Shia al-Sudani in January 2023, have concluded.
Bilateral Cooperation and Shift in Relationship
Farhad Alaaldin, the prime minister's foreign affairs adviser, said the talks marked a shift in the US-Iraq relationship, emphasizing future bilateral cooperation in military, security, economic, and cultural sectors. Alaaldin did not comment on the specifics of the plan.
The agreement follows months of rising tensions, including attacks by Iran-backed Iraqi militias on US forces, which have killed three American troops and injured dozens more. US forces have retaliated with airstrikes, complicating efforts to stabilize Iraq after years of conflict.
Current US Presence in Iraq
The US currently has 2,500 troops in Iraq and 900 in neighboring Syria, part of a coalition formed in 2014 to combat the Islamic State. Although Islamic State has been territorially defeated in Iraq since 2017, US officials argue that their presence helps counter Iranian influence in the region.
Under the new plan, coalition forces would vacate the Ain al-Asad airbase in Anbar province and scale back their presence in Baghdad by September 2025. Troops are expected to remain in Erbil, in northern Iraq's semi-autonomous Kurdistan region, until the end of 2026 to assist with operations.
Impact on Regional Tensions
The withdrawal of US troops could potentially impact the regional power dynamics, given that the US military presence in Iraq has been instrumental in keeping Iran and Iran-backed militants in check. Some observers believe that their departure could have significant implications for the security situation in the region.
Topic: IRAQ and Troop withdrawal BY GINGER TELEGRAM ROOM, 9 SEPT
💢Part 2/2 - Wonderful help from Helicopter Lady, Liberty Lounger Extraordinaire.
Topic: IRAQ and Troop withdrawal - 9.8.24
💢 Helicopter Lady: Hello dear Ginger: The good news is that Reuters has announced that Iraq and the US have come to a preliminary troop withdrawal agreement starting November 2025.
It means that we are finally close to an official announcement.
The date of November 2025 deadline solves 3 problems:
1. Iraq can make an "official announcement"
2. It gives them 15 months to pay the US for all the infrastructure projects that the Americans completed during the oversight period and military occupation
3. It allows the WTO now to proceed with the next step in accrediting Iraq's membership.
There is another reason why this is very good news! Trump wants to make a point that even while our US troops are leaving in a friendly way, it still takes a year to get them (and our equipment) home safely. I think he is building the story so that he can use it as a contrast with how (carelessly) Biden withdrew the troops from Afghanistan willy nilly: in just one week, causing all sorts of upheaval, including getting people killed during the process.
President Trump wants the Americans to see the difference. Maybe it is timed like this to bring it up during the debate on Tuesday between President Trump and Kamala. I don't see how Kamala can last 1 1/2 hours under Trump's stare. 💥👀💥
💢 Ginger adds: I feel really great about this USA Troop withdrawal announcement and even the timing of it. It's not discouraging to me in the least bit. I don't foresee at all that this will delay the financial reforms and "The Camper Event".
We heard news many months back, which I brought to you, explaining that the withdrawal of USA military was slated for next year. Plus Al Sudani used kinda forceful words insisting the military depart the region, but this is also kind of a way to "save face", like we don't need you anymore! We are sovereign now! But behind closed doors, at the same time, you can imagine him saying, "Hey, could we get a little help for just a little while longer?" - knowing Iraq is about to go through an incredible transformation - right?
I explained last Fall that the troops were going to begin a slow, scheduled, safe and intentional departure but they would leave about 1000 military members behind for ongoing safety needs. This is the crew which will help oversee security and stability and training for Iraq during and after their transition period.
We also told you about a retired Special F0rces Marine, from where we live, who was tasked to return to the sandbox as a contract worker to train other military, new and incoming to the sandbox, on security protocols and procedures for the region, because he was already well-experienced in that department. My gut tells me that he's equipping those final one thousand troops so that the others, those who've been there the longest, get to begin the rotation to come on home. This allows Iraq to "save face", maintain some extra security and safety standards for all those who will be traveling there and exchanging - plus the removal of any remaining bad actors who cause trouble before, during and after Iraq IQD rate change occurs.
I just want to be clear that Iraq isn't going to need to hold off their RI/RV until the last of the troops withdrawal in November 2025. ➡️ The USA can still get paid, the USA troops can begin a scheduled, calculated and planned departure; and the remaining skeleton crew - bare minimum needed for securing safety during the transition - can all happen before next Fall 2025.
Hope this helps and brings you as much encouragement as it does for me! This is when you know you "can see the light at the end of the tunnel" and be super thankful that it's not an on-coming train 🚂! 😛😁😆😂
~ Ginger of the Liberty Lounge, Ambassador for God's Abundance with the New Earth Alliance