Article quote: "US Department of Treasury...Deputy Secretary of the Treasury has support for the Central Bank of Iraq and the Prime Minister's reform agenda...He's applauded Iraq's 6% growth in the non-oil economy."
Here they are just getting started and they've already got 6% increase. That's huge you guys. That's really big.
The '23, '24, '25 tripartite budget for investment they haven't exposed it yet..
.Why not?
Probably because it has an exchange rate sensitivity to it.
Alaq is stating, 'we are constantly reviewing the deletion of the zeros from the dinar and there are no restrictions on our balances in America.' So here again he's talking about deletion of the zeros in September 2024 just like he did back in July of 2023.
Quote: "The Central Bank of Iraq has reduced reliance on the US dollar in commercial transactions according to the governor of the Central Bank...
adding that the project to remove the zeros in Iraq is under continuous review and study at the bank." It's fascinating to see he's back beating the drum about deletion of the zeros.
REMOVING ZEROS FROM THE IRAQI DINAR IS BACK IN THE SPOTLIGHT..STRENGTHENING THE CURRENCY OR JUST CHANGING ITS FORM?
Talk has returned again about the process of removing zeros from the local Iraqi currency, as the Central Bank of Iraq confirmed that the project to remove zeros from the dinar is subject to continuous review and study.
Countries remove zeros from their currency to revalue their national currency and simplify financial transactions. This is done by removing a specific number of zeros from the nominal value of the currency, making it appear less inflationary and more stable.
The central banks of these countries usually issue a new currency, equal in value to one hundred thousand or one million of the old currency, with the old currency gradually being withdrawn from the markets, after a period in which the two currencies are allowed to be used side by side. The most famous countries that have implemented this process, more than once, successfully were Turkey and the former Yugoslavia.
In his statements, Ali Mohsen Al-Alaq, Governor of the Central Bank of Iraq, considered that the bank responded to global economic challenges such as rising energy and raw material prices by amending some monetary policies in line with the international situation and to enhance confidence in the Iraqi dinar and prevent a sharp decline in its value.
Al-Alaq pointed out that the Central Bank of Iraq increased its holdings of foreign exchange and gold reserves to strengthen the country’s financial position and stability, in order to enhance its ability to confront potential economic crises.
Commenting on this, economic researcher Ali Daadoush said in an interview with Al-Mada, “The process of deleting zeros is linked to the Central Bank of Iraq,” indicating that “the issue is not new and was previously discussed about 14 years ago. “
(What they don’t want you to know is this has been the plan since very start to eventually delete the zeros, but only once they were done stealing enough. Having this currency auction in place allowed for massive corruption and up to a trillion dollars worth of oil revenues were stolen and never made it to the people of Iraq for the benefit of the people of Iraq.)
Daadoush pointed out that “the process of deleting prices is psychological, as the commodity worth a thousand dinars will be worth one dinar and remain at the same value.”
(I told you so…. 😊 No one in Iraq is going to get rich over the RV… Get it now! Yes, all you TNT idiot followers)
The economic researcher pointed out that “removing zeros leads to flexible dealing with the local currency and strengthens it, and may lead to increased production and diversification of the economy, and thus enhance the value of the Iraqi dinar.”
For his part, economic affairs expert Mustafa Hantoush said in an interview with Al-Mada, “The issue of removing zeros from the Iraqi currency is only arithmetic and keeps the currency at the same value. That is, when you sell a house for 100 million, it will be sold for 100 thousand.”
Hantoush added that “countries resort to deleting zeros when there is an expansion in the value of the printed currency and problems occur in the book value and accounting entries, for the purpose of restoring accounting balances.”
The economic researcher went on to say, “
Iraq is currently suffering from problems with the exchange rate,” indicating that “the value of printing and replacing the currency costs Iraq time, effort and millions of dollars.”
(Get to 80% digital banking, shrink the monetary mass by 2/3, collect the 3 zero notes, issue new currency to replace up to only 1/3 of the monetary mass and these issues go away. This is recipe for a VERY strong currency///)
Hantoush said, “The situation now requires focusing on how to maintain the value of the Iraqi currency against foreign currencies.”
According to the latest data, the Central Bank of Iraq’s foreign reserves cover 83.62% of the broad money supply, which covers the cost of importing 15 months, while the global standard rate is 20%, covering 6 months of importing.
(WOW! WOW! What country can make this statement and brag about it? 😊 )
Foreign exchange reserves are a tool used by all central banks to maintain the stability of the local currency exchange rate against foreign currencies, as well as to reduce exposure to external crises by maintaining liquidity in foreign currency to absorb shocks in times of crisis.
The Iraqi currency is under great pressure, which has caused its price to decline against the dollar during the past period, including the increase in the Iraqi budget deficit. Two weeks ago, Mazhar Salih, financial advisor to Iraqi Prime Minister Mohammed Shia al-Sudani, said that Iraq will face a budget crisis in 2025 due to the decline in oil prices, the country’s main source of revenue. Salih said in an interview with Reuters: “We do not expect major problems in 2024, but we need stricter financial discipline in 2025.”
[via PDK] We have Sudani in New York and Al Alak (Governor of the CBI) is openly discussing deleting the zeros- which is kind of a first for him. And we have HCL movement in Iraq.
There is big stuff going on.
Article: ”Tomorrow the launch of employees salary financing”
That came out yesterday so it is today. Today they are getting paid. This is HCL (Hydro Carbon Law) stuff going on.
Article: “Kurdistan deposits nearly 100 Billion dinars of its non-oil revenues in the Baghdad Treasury”
IMO they would not be doing this if they were not done with HCL...Look for an announcement at any moment.
In Iraq: Pay attention to this one. “Al Alaq –We are constantly reviewing the deletion of dinar zeros and there are no restrictions on the balances in America”
That part “No restrictions” is telling us that Iraq is in charge of its own money. In this article when you do a deep dive in it - they are doing exactly what they did in Kuwait with the terminology and phrasing and telling us it’s time to remove those zeros.
In Kuwait they greatly increased the value…they had to turn them in for lower denomination notes or deposit them in banks….
Question: So we have to exchange our 25k notes for lower denoms before we exchange?
ERBIL — The Central Bank of Iraq (CBI) has announced that discussions regarding the project to remove zeros from the Iraqi dinar are ongoing, with assessments continuing. The bank also noted a reduction in reliance on the US dollar for trade transactions.
Ali Mohsen al-Alaq, Governor of Iraq's Central Bank, stated that the bank is facing global economic challenges, such as rising energy and raw material prices.
To address these issues, it has amended some monetary policies in line with the international situation, aiming to increase confidence in the Iraqi dinar and prevent a significant decline in its value.
The central bank has also increased its holdings of foreign currency and gold reserves to enhance the country's financial stability and its ability to cope with economic crises in any situation, he added.
Many countries remove zeros from their currencies to revalue the national currency and facilitate financial transactions. This process involves eliminating a certain number of zeros from the nominal value of the currency, making it less inflationary and more stable.
Earlier this year, the Iraqi federal government decided to postpone a plan to remove three zeros from the nominal value of its currency notes, citing that the current economic climate is not suitable. (KTFA FAMILY... WE ALL EXPECTED IT AT THE BEGINNING OF THE YEAR... BUT NOW WE EXPECT IT BEFORE THE END OF THE YEAR, IMO -F26)
Last year, the central bank indicated plans to redenominate the Iraqi dinar to simplify financial transactions in an economy that remains heavily centralized and oil-dominated, where deals are often conducted in cash.
Article: "Iraq Plans Currency Redenomination Amid Economic Challenges" Quote: "Many countries remove zeros from their currencies to revalue the national currency and facilitate financial transactions. This process involves eliminating a certain number of zeros from the nominal value of the currency, making it less inflationary and more stable."
Clare
Article: "Al-Sudani heads to New York to participate in UN General Assembly meetings" Quote: "
Prime Minister Mohammed Shia Al-Sudani will head to New York...Saturday, to participate in the meetings of the 79th session of the United Nations General Assembly."
Article: ”Al-Sudani leaves for New York early next week to participate in the UN General Assembly meetings"
Article: "The judiciary and the State Council confirm that the Governor of the Central Bank of Iraq is subject to the legal retirement age (documents)" Quote: "The two councils confirmed in documents...that the legal age for retirement is 60 years, and upon reaching it, the duties of the official assigned to it end."
Rafidain Bank declared today, Tuesday, the send off of its report on the phases of battling tax evasion and fear based oppressor supporting.
The bank said in a statement that “the stages of combating money laundering and terrorist financing and the procedures that contributed to achieving this achievement and due diligence towards customers and using the best models for opening accounts and updating other customer information, in addition to obtaining monitoring and follow-up programs that prevent any illegal transactions through suspicious activities, confronting them and reporting them to the concerned authorities” were among the steps in the process of preventing money laundering and terrorist financing.
That’s what he added “the report mirrors the degree of obligation to executing global norms for fighting tax evasion and psychological oppressor supporting and the endeavors made by the bank to battle wrongdoings, as per worldwide principles in such manner.”
That’s what the assertion demonstrated “the moves toward execute the AML framework (Hostile to Illegal tax avoidance and Fear monger Supporting Framework) connected with Rafidain Bank since foundation and the stages have been carried out are as per the following:
1-Contracting with Capital B. Arrangements Ltd on 12-17-2023 to get a specific framework to battle tax evasion for people and elements that have monetary exercises with the bank, and as per the prerequisites of the National Bank of Iraq and the Counter Illegal tax avoidance Unit, where four projects will be executed for the accompanying undertakings:
Risk profiling of the bank’s clients
Executing the situations endorsed by the National Bank of Iraq and the necessities of the Counter Illegal tax avoidance Unit
Observing uncommon client developments (Evaluating and Checking)
Executing the (Go Aml) program to extricate reports to distinguish and report dubious exchanges and transfer them to the (Go Aml) stage or gateway as per the prerequisites of hostile to illegal tax avoidance regulations and guidelines and as per neighborhood and global norms.
Checking customer names against local and international sanctions lists, which contain a wide variety of people, organizations, and entities involved in international sanctions and restrictions.
Executing the FATCA program for US charge consistence to battle tax avoidance by the bank’s clients who have US citizenship. 2-Framework stages
The phase of getting ready framework prerequisites..
The bank has arrived at cutting edge phases of accomplishment, which are as per the following:
Setting up the framework to work the framework (test climate) – Creation climate and getting correspondences.
Planning client risk arrangement prerequisites for people and elements on the framework as per the gamble network that relies upon the rules (wellspring of assets – nature of home – sort of administration – area of client movement – action of the individual or organization – nature of the individual – kind of organization) and the gamble classification (low – medium – high – extremely high).
Changing framework settings and checking the activity of screens
The (AML) framework was connected to the financial framework data set (Center Bank) by separating information from the financial framework data set in a safe way and passing it to the (AML) framework consistently.
Preparing the concerned gatherings from the Counter Illegal tax avoidance and Counter-Psychological warfare Announcing Division and the Data Innovation Division on the framework, as indicated by the specialization, utilitarian and specialized necessities of the framework, jobs and powers.
The project’s current phase, the system inspection and acceptance phase (UAT).
The specific and prepared group on the framework investigates the framework screens as per the prerequisites of the bank, the National Bank of Iraq and the Counter Tax evasion Unit
Submitting week by week remarks and reports and submitting them to the executing organization to make alterations and right them. 4-The phase of gaining global assents records.
Summary of the YouTube Video: "Iqd # Iraq Economy"
In a recent meeting on Monday evening, Iraqi Prime Minister Muhammad Shia Al Sudani hosted U.S. Deputy Treasury Minister Wally Adamo and several officials from the Treasury Department. According to a statement from the Prime Minister's office, the discussion centered on enhancing bilateral economic relations between Iraq and the United States across various critical sectors.
The meeting highlighted the Iraqi government's dedication to economic and financial reform, with a focus on diversifying domestic production and promoting development goals. Key achievements were discussed, including significant advancements in combating money laundering.
Prime Minister Al Sudani noted that Iraq had made substantial progress in financial and banking reforms, with 95% of bank transfers now processed through an electronic platform. He anticipates completing the remaining 5% by the end of the year, after which the country will transition to a correspondent bank system. This aligns with the government's commitment to elevating the capabilities of Iraqi banks to meet international standards and cater to an increasingly robust investment environment.
Deputy Minister Adamo praised Iraq's rapid progress in economic and banking reforms, noting a notable economic growth rate of 6%. He expressed readiness for continued cooperation to foster a bilateral partnership aimed at supporting Iraq's economic development
Removing Zeros from the Iraqi Dinar: Currency Reform in 2024
The debate over removing three zeros from the Iraqi dinar is once again a topic of discussion. The process, if executed alongside substantial economic reforms, could potentially strengthen the currency and streamline financial transactions.
Advantages of Removing Zeros
The removal of zeros from a currency can have several benefits:
Elimination of Technical and Operational Issues: Handling large denominations can be cumbersome and can cause logistical and operational problems.
Reduction in Costs: The process can save costs associated with the printing and management of high-denomination banknotes.
Facilitation of ATM Transactions: Smaller denominations are easier to manage and process through automated teller machines.
Simplification of Banking: It can simplify banking transactions and reduce the risk of errors.
Enhanced Foreign Investment: A more simplified currency system can make the country more attractive to foreign investors.
Psychological Boost: The public may perceive the currency as stronger, potentially increasing confidence in the government's economic policies.
Limitations and Necessary Precautions
However, removing zeros from the currency alone will not eliminate inflation. It is crucial to implement this measure within a broader framework of economic reforms, such as:
Monetary Policies: Tighter monetary policies can help control inflationary pressures.
Fiscal Discipline: Fiscal discipline ensures that the government's spending is in line with its revenues, preventing excess deficits that can lead to inflation.
Regulatory and Supervisory Rules: Strong regulations and supervision of the financial sector can prevent risks and protect the rights of shareholders and stakeholders.
Historical and Comparative Perspectives
The Central Bank of Iraq constantly reviews the deletion of zeros from the dinar, acknowledging that this process is often undertaken to revalue the national currency and simplify financial transactions.
A comparative analysis of other countries' experiences, such as Turkey's successful currency reform, can provide insights into best practices and potential pitfalls to avoid. Turkey's reform was part of a broader set of policies that included social changes, demonstrating that currency reform must be accompanied by other economic measures to be effective.
Recommendations
As the Iraqi government considers removing zeros from the dinar, it should:
Study Successful and Failed Cases: Analyze the Turkish success and Argentinian failure to understand the critical factors for a successful currency reform.
Implement Complementary Reforms: Coupling the removal of zeros with other economic reforms will ensure a more stable and credible currency.
Monitor Global Economic Challenges: The Central Bank should continue to respond to global economic challenges, such as rising energy and raw material prices, to maintain confidence in the Iraqi dinar.
Conclusion
While removing zeros from the Iraqi dinar can have psychological and practical benefits, it should not be viewed as a panacea for economic issues. The effectiveness of such a measure depends on its integration into a comprehensive set of economic reforms aimed at stabilizing the currency and boosting the economy.
