MILITIAMAN CC HIGHLIGHTS NOTES, 24 DEC

 MILITIAMAN CC HIGHLIGHTS NOTES

Summary

Highlights

• ⚖️ Rule of Law: Prime Minister Al Sudani reaffirms the government’s support for the Federal Supreme Court’s efforts to strengthen the rule of law.
• 🌍 Economic Diversification: Emphasis on moving away from an oil-dependent economy by boosting tourism, with references to Iraq’s rich cultural heritage.
• 🏦 Banking Reforms: Introduction of an electronic passport system and transition to a cashless economy are highlighted as steps toward modernization.
• 🌐 International Partnerships: The government is actively fostering international partnerships to bolster Iraq’s economy and attract foreign investment.
• 💱 Currency and Exchange Rate: Discussions surrounding the potential for a new exchange rate system and the implications of the Central Bank’s reforms.
• 🔄 Digital Transformation: Focus on the importance of a digital economy and compliance with international financial standards as a means to reduce corruption and improve financial operations.

Key Insights

• 📜 Government Support for Rule of Law: The government’s backing of the Federal Supreme Court signifies a commitment to legal reforms, which are crucial for establishing a stable political and economic environment. This move is expected to enhance investor confidence and facilitate the implementation of new laws that support economic development.

• 🌐 Tourism as an Economic Driver: Al Sudani’s focus on tourism highlights the government’s strategy to diversify Iraq’s economy. By promoting its ancient civilization and archaeological sites, Iraq aims to attract tourists, which could generate significant revenue and reduce dependence on oil exports.

• 📊 Shift Towards Digital Economy: The introduction of the electronic passport system and the transition to a cashless economy are indicative of Iraq’s efforts to modernize its public services. These initiatives are expected to streamline operations, improve efficiency, and reduce corruption, thereby fostering a more transparent and accountable government.

• 🏦 Reform of the Banking Sector: The Central Bank of Iraq’s reforms, including the establishment of correspondent banking relationships, are essential for integrating Iraq into the global financial system. These changes will facilitate foreign currency transactions and improve the overall efficiency of the banking sector.

• 📈 Potential for New Exchange Rate System: The discussion around a new exchange rate system reflects the Central Bank’s intentions to stabilize the economy. The anticipated adjustments may help mitigate inflationary pressures and restore confidence among investors and the public.

• 🤝 International Financing Support: The interest expressed by major international banks like JP Morgan to support Iraqi trade financing operations is a significant endorsement of Iraq’s economic potential. This relationship is expected to enhance Iraq’s access to global markets and investment opportunities.

• 🔄 Adapting to International Standards: Iraq’s commitment to aligning its banking practices with international standards is crucial for attracting foreign investments. By adhering to compliance regulations set by global financial institutions, Iraq aims to enhance its credibility and operational efficiency, ultimately leading to economic growth and stability.

FIREFLY: CHECKMATE!! : IRAQ MUST ADD VALUE TO THE DINAR ONCE STOPS THE CURRENCY AUCTION #iqd

 

An expected rise in the dollar...a “temporary shock” awaiting the Iraqi market, 24 dec

 An expected rise in the dollar...a “temporary shock” awaiting the Iraqi market

 
Economy | Yesterday, 19:49 |
Baghdad today - Baghdad
 
Today, Monday (December 23, 2024), the "Future Iraq" Foundation for Economic Studies and Consultations expected a rise in the dollar exchange rate during the next few days, following the Central Bank of Iraq's announcement of stopping the currency conversion window platform.
 
The head of the institution, Manar Al-Obaidi, said in a statement to “Baghdad Today” that
 
“stopping the Central Bank’s currency transfer platform, which was officially announced on 12/23/2024, will lead to a temporary rise in the dollar exchange rate in the market as a result of the prevailing state of fear.”

However, things will return to normal at the beginning of the new year.” Al-Obaidi added,
 
"This decision had been previously announced by the Central Bank,
 
but such measures, when implemented, cause a shock in the market, leading to a temporary rise in the exchange rate, before the shock is gradually absorbed." He explained that
 
"the difference between the official and parallel market will remain, but it will shrink as the situation stabilizes."
 
On Tuesday (December 17, 2024), economic affairs specialist Nasser Al-Tamimi warned of a rise in the dollar exchange rates in Iraq in the coming days. Al-Tamimi told “Baghdad Today” that
 
 “there are real fears in the Iraqi market about the continued rise in dollar exchange rates after the platform was suspended by the Central Bank of Iraq,” noting that
 
“this matter will constitute a shock, especially at the beginning of the implementation of the decision and will push for a rise.” The dollar, to increase demand for it in the parallel market.” He added,
 
"After stopping the platform, most merchants, especially small ones, will depend on the parallel market to finance their foreign trade, while continuing to finance trade with Iran and Turkey with dollars, in illegal ways," pointing out that
 
"this is what will push the rise and  that is why practical steps must be taken to prevent This is done by the monetary authority in the country, and urgently.”
 
On Wednesday (September 4, 2024), the Central Bank of Iraq revealed the mechanism for ending the electronic platform for external transfers, while
 
indicating that placing external transfer operations and meeting requests for the dollar is on sound paths and consistent with international practices and standards. 
 
https://baghdadtoday.news/264515-ارتفاع-مرتقب-للدولار.-صدمة-مؤقتة-بانتظار-السوق-العراقي.html   

ARIEL: Iraqi Dinar Update, Strategic Window, 24 DEC

 ARIEL

Iraqi Dinar Update

I can understand why this would be the case for the Central Bank of Iraq and determine a cohesive strategy for their new exchange rate.

 As we know speculation can run wild once they reinstate their currency. Releasing a new exchange rate during a period when markets are closed or less active, such as during Christmas, could indeed provide a strategic window.

This timing allows for adjustments in the currency valuation without the immediate pressure or volatility that might come from active trading.

 This could minimize the risk of speculative attacks or undue market reactions. Introducing the new rate just before the weekend gives the Forex markets time to adjust over a couple of days before the new week starts.

This buffer can be useful for banks, traders, and the financial systems to recalibrate without the intensity of a full trading week’s pressure right away. Will everything go according to this plan? Not sure but it does make perfect sense. As we know others are saying they could delay it to July 2025 because of the digital transformation. Which I highly disagree with.

Because for one Starting a new fiscal year with an adjusted rate would simplify financial reporting and economic planning for businesses and government entities. It allows for a clean slate where all financial transactions from January 1, 2025, would be based on the new rate, reducing confusion and making economic analysis more straightforward.

While full digitalization by July 2025 might be an ambitious goal, Iraq has already taken significant steps towards digital banking. The introduction of digital payment methods, mobile banking apps, and efforts to reduce cash reliance indicate a progressive move towards digital finance. 

This groundwork suggests that even if full digitalization isn’t complete, substantial progress has been made, potentially sufficient to handle a currency revaluation without needing to wait until July 2025.

NADER FROM MID EAST: I FEEL IT'S VERY VERY CLOSE!! @DINARREVALUATION #iraqidinarinvestor #iraqidinar

 

Stopping The Dollar Transfer Platform...A Calculated Step Or A Risky Adventure?, 24 dec

 Stopping The Dollar Transfer Platform...A Calculated Step Or A Risky Adventure?

 
December 23, 2024  Baghdad/Iraq Observer  The Central Bank of Iraq is scheduled to abandon the electronic platform for dollar transfers abroad at the end of this year,  which has raised questions about whether this decision indicates the abandonment of the Iraqi Central Bank and the US Federal Bank’s mechanisms for monitoring the movement of the dollar,
 
or is it a step towards adopting a new system that may It contributes to reducing sharp fluctuations in the exchange rate and returning it to its natural levels that are consistent with the requirements of the local market and the national economy.

The electronic platform was launched in early 2023 as a new mechanism aimed at auditing dollar transfers before they are implemented, replacing the previous system that relied on auditing by the US Federal Bank after the transfers were completed, which was considered a step to enhance transparency, improve control of the movement of funds, and ensure compliance with financial laws.
 
At that time, banks, companies and merchants in Iraq faced major challenges in adapting to the new mechanism, as it required time to understand the working mechanisms and ensure compliance with the requirements.
 
However, these entities were able to adapt gradually, especially after bank employees underwent extensive training courses on using the electronic platform, which contributed to achieving full compliance with the new work procedures and ensuring the smooth flow of financial operations.
 
According to the new transfer mechanism, banking operations in dollars will be limited to banks that have international banking relationships, or what are known as “correspondent banks.”
 
Concern and reassurance
 
Both the Central Bank of Iraq and the US Federal Reserve believe that this step will contribute to strengthening oversight of remittances in a more precise and specialized manner, by restricting transactions to a limited number of banks that have high banking standards and the ability to cooperate with international banks, which aims to reduce financial risks and ensure Compliance with international control s.
 
In turn, Mustafa Akram, a researcher in financial and banking affairs, said that
 
stopping work on the electronic platform (FITR) and restricting dollar transfers to a limited number of foreign banks may pose challenges to the local banking system, indicating that
 
“this step may raise concerns about the concentration of transactions in dollars.” “In a limited range, which may lead to effects on exchange rate stability.”

Akram added to “Iraq Observer” that  “there is a need for a deeper study of the impact of these measures on competitiveness in the Iraqi banking sector, while emphasizing the importance of preserving banking sovereignty and enhancing balance in the local market.”
 
Possible bounces
 
In light of these movements, news was raised about a trend towards making a new adjustment to the exchange rate, which raised concern among economists about the potential impact of this trend on the economic process in general.
 
Experts stressed that sudden changes in monetary policy may create additional confusion in the markets and weaken confidence in the financial system.
 
For his part, economic expert Uday Al-Alawi stressed that
 
“the biggest mistake the government can make is manipulating the dollar exchange rate through sudden decisions, because this has a direct impact on the national economy and undermines investors’ confidence in the financial system.” Al-Alawi added, in a press comment, that
 
“the government’s continued making of ill-considered decisions regarding the exchange rate will lead to the erosion of international and local confidence in the Iraqi economy, which will weaken the ability to attract the investments necessary to improve the economic reality.”
 
Economists fear the possibility of some banks not included in the transfers going to meet the requirements of their customers towards the parallel market, which could lead to a return to the rise of the dollar in Iraq.   https://observeriraq.net/إيقاف-منصة-تحويلات-الدولار-خطوة-محسوب/   

DINAR REVALUATION UPDATE: THE PROGRESS OF IRAQ'S BANKING REFORMS, 24 DEC

 DINAR REVALUATION UPDATE: THE PROGRESS OF IRAQ'S BANKING REFORMS

Summary

The CBI reports significant progress in Iraq’s banking reforms, including the transition to digital finance, the elimination of the parallel market, and steps toward international currency exchange.

Highlights

• 🚨 CBI reports a transition to digital banking and the elimination of the electronic platform.
• 🌍 Iraq is moving toward direct relationships with international correspondent banks.
• 📈 The Iraqi dinar may soon see a significant exchange rate increase.
• 💼 International auditing firms are involved in the restructuring process.
• 🔄 The parallel market will be phased out to stabilize the dinar’s value.
• 📅 The CBI plans to integrate new banking practices by early 2024.
• 💡 Iraq aims for financial independence and compliance with international standards.

Key Insights

• 📊 Digital Transformation: Iraq’s shift to digital banking will enhance transparency and efficiency, potentially stabilizing the dinar. This modernization is crucial for attracting foreign investment and trust.
• 🏦 International Engagement: By establishing direct banking relationships, Iraq can facilitate smoother international transactions, marking a significant step toward economic integration. This is essential for the dinar’s international acceptance.
• ⚖️ Elimination of Parallel Market: Removing the parallel market is vital for restoring the dinar’s value, as it addresses corruption and manipulation that have historically devalued the currency.
• 🔍 Role of Auditing Firms: The involvement of international auditing firms ensures that Iraq meets global financial standards, which is key for building credibility in the international banking community.
• ⏳ Implementation Timeline: The CBI’s plan to complete these transitions by early 2024 indicates a clear timeline for stakeholders, enhancing confidence in Iraq’s reforms.
• 💰 Potential Wealth Creation: As Iraq moves toward a revalued dinar, individuals holding the currency may see significant financial benefits, reinforcing the importance of establishing banking relationships now.
• 📈 Rising Demand for Dinar: Anticipated increases in the dinar’s value could lead to heightened interest from investors, making now a pivotal time for engagement in Iraq’s financial landscape.

JENTEL NOTES : A RATE WAS POSTED TO PAY CONTRACTORS AT $3.92 @DINARREVALUATION #iraqidinarinvestor

 

Central Bank Policy In Light Of Banking Compliance With International Standards Between The Controsy Of Expectations And Requirements, 24 DEC

 Central Bank Policy In Light Of Banking Compliance With International Standards Between The Controsy Of Expectations And Requirements

The debate is raging about the steps of the Central Bank of Iraq towards the US Federal Reserve and the American Treasury, and doubt that they are incorrect steps in the management of monetary policy. In fact, other opinions have gone to warn of a bank collapse as a result of these agreements and what will result in early next year from the association of Iraqi/Arab banks with American correspondent banks, which these opinions described as a confusion and error in following monetary policies that are not suitable for the current economic situation.

Therefore, we say in this regard and we warn of the inauth of these opinions if we carry them in good faith, as the aforementioned steps and procedures are nothing but a reflection of the Central Bank’s policy of supporting the national economy in its directions towards establishing relations with Arab and international correspondent banks and the gradual transition of the processes of strengthening the pre-balance of the accounts of these banks. This is in line with what the Central Bank of Iraq announced in 2023 in its plan to gradually reduce dependence on the electronic platform until its ends work during the year 2024 and limit it to the processes of recording financial transfers for the purposes of control, auditing and analysis. The Governor of the Central Bank stressed in many places that the Central Bank is determined to support Iraqi banks, enhance their capabilities and prepare them to work in accordance with international practices and agreements that are aimed at building and strengthening the capacities of our banks internationally.

Monetary policy measures to link the six Iraqi and Arab banks with prestigious, capable and capable international banks, is the right eye that conflicts with the reality of international activity and practice in import operations, currency conversion and the movement of money through prestigious international banks. The application of this procedure is expected to contribute to the following:

Adjusting the money transfer operations and the diagnosis of the final entities that will reach, from which the pre-transfer stage control will be detailed as an alternative to the post-control joint.

The aforementioned link supports a number of our qualified banks towards raising their banking status and increasing their acceptability and access globally, especially as most Iraqi banks suffer from administrative and regulatory problems at the operational and investment levels.

Limiting banks that fall under the blacklists that practice informal activities that are about smuggling or selling the dollar at the parallel price, at the expense of their practice of banking activity within the limits of lending and investment. And motivate them to rebuild their activities within the limits of real banking.

Based on the achievement of the above points and in light of the improvement in the international position of Iraqi banks after following the policy of linking and compliance and the resulting control and scaling of dollar smuggling and money laundering, it is expected to be a nucleus to attract new financial investments that can work on the development paths of leading economic sectors, which will generate stability in the demand cycle for the dollar, including the stability of price levels at the medium or long-term level.

For the basis, a price gap will occur that works to raise inflation levels, but it will not soon disappear on the condition of the need to proceed scientifically by implementing the procedures of international linkage and transfer within the terms and instructions of compliance with international standards and the need to achieve the above points.

Therefore, in this context, we propose several requirements to raise the ability of Iraqi banks to behave compliance standards, stimulate their relations with correspondent banks and enhance confidence in their performance, including:

Following the compliance laws and modern international legislation, issued by international regulatory institutions and authorities, including the Basel Committee and the International Financial Action Task Force (FATF), which issued its 40 recommendations to combat money laundering and terrorist financing. In addition, the US decisions and laws issued by the Treasury Department represent basic conditions for compliance and constitute an ongoing situation for the banking sector in the world, not only for the Iraqi and Arab banking sector.

Our banks must invest in the necessary infrastructure for mega development projects such as the path of development, and apply advanced technology that supports the achievement of the stages of international compliance.

Supporting everything that leads to deepening the effective contribution of our banks to development through the issuance of legal facilities and financial facilitation to support the banking capital cycle towards foreign trade, industry and investment.

It is necessary to adopt the principle of transparency in banking operations and financial reporting; to build sustainable trust with the international community, and prepare a comprehensive national plan for capacity development, training and qualification in the field of banking compliance through the establishment of a specialized administrative joint for this purpose.

So this linkage step is a strategic step for the monetary policy of the Central Bank of Iraq, as the volume of Iraqi banking sector of deposits exceeds 100 billion dollars, which is a catalyst for activating the work of banks. In the same context, if we know that Iraq imports a value of $70 billion, it would be more economically viable to cover these funds through a sober banking sector that opens credits and is linked to the global financial system and international institutions efficiently and transparently.

It concludes from the above and according to the importance of the linking and compliance step, the private sector must be ready to start developing and financing the national economy and achieving the desired growth. Especially after the American Bank (JPMorgan) finally expressed its readiness to support Iraqi trade finance operations, which is the largest and most sober among international banks, and has a major role in interbank correspondence operations worldwide.

TIDBIT FROM FRANK26, 24 DEC

 Frank26  

The banks are no longer saying it's a scam.  The banks are now looking at us and their eyes are popping wide open and they're saying can we have your name and phone number please and then they pass that information up and the next thing you know those wealth management people are calling and saying, hey listen, you know I want to talk to you,

 I want to set an appointment, you have any question etc etc.  You could have 5 cents in your account and they're calling you because they know who you are.

MAJEED: WHEN BANK CARD BEING DISTRIBUTED, IT MEANS THE NEW RATE IS POPPING UP!! @DINARREVALUATION

 

Kurdistan Government: Disruption of official working hours for 6 days on the occasion of birthdays, 24 DEC

 Kurdistan Government: Disruption of official working hours for 6 days on the occasion of birthdays

Baghdad Today – Erbil

The Kurdistan Regional Government decided, on Monday (December 23, 2024), to suspend the official working hours for 6 days on the occasion of birthdays.

The correspondent for Baghdad Al-Youm said that the Kurdistan Regional Government decided to disable the official working hours from 25/12 until 2/1 of the new year.

He added that the reason for the disruption is to allow citizens to celebrate birthdays, with the official working hours of all institutions starting on 5/1.

https://baghdadtoday.news/264501-حكومة-كردستان-تعطيل-الدوام-الرسمي-لـ6-أيام-بمناسبة-أعياد-الميلاد.html

TIDBIT FROM FIREFLY, 24 DEC

 Frank26 

 [Iraq boots-on-the-ground report] 

 FIREFLY:Mr.  Sammy said with this auction stopping the value would have to be added to stop the chance of a collapse of the currency.

  FRANK:  That's brilliant simple words but so well said.  Specific manicured words that defines it exactly...This is checkmate.  There is no other move.

MARKZ: In Iraq we had $3.47 popping up on the forex sites.. @DINARREVALUATION #iraqidinar

 

Iraq gets $11 billion from Japan – urgent, 24 DEC

 Iraq gets $11 billion from Japan – urgent

Fourth – Baghdad

The United Nations Development Programme (UNDP) and the Japan International Cooperation Agency (JICA) office in Iraq have renewed their long-term partnership to promote social and economic development in Iraq through funding from the Government of Japan and JICA.

This partnership, which has spanned more than fifteen years of cooperation with the Government of Iraq, reflects the strong commitment of the United Nations Development Programme (UNDP) and the Government of Japan/JICA to meeting Iraq’s need for efficient, stable and reliable basic services and economic infrastructure.

Together, they have contributed significantly to Iraq’s human and economic growth, in line with Iraq’s national development plans and programs that focus on economic diversification, modernizing infrastructure and improving social services…

https://www.faceiraq.org/article/224432/العراق-يحصل-على-11-مليار-دولار-من-اليابان-عاجل

MELANIA HINDS CC HIGHLIGHTS NOTES, 24 DEC

 MELANIA HINDS CC HIGHLIGHTS NOTES

Summary

Melanie Hines reports significant news regarding the Iraqi dinar, including a rise in purchasing power and an 11-day holiday in Kurdistan.

Highlights

• 🚀 Significant increase in purchasing power to 10 cents.
• 🎉 Kurdistan announces an 11-day holiday affecting all regional institutions.
• 📈 New digital systems in place to monitor inflation.
• 🌍 Iraq is seen as a model by the World Bank and IMF.
• 🔄 Reports of a potential new exchange rate adjustment.
• 💼 Banks are actively engaging with dinar holders for wealth management.
• 🤝 Contractors are seeing improvements in exchange rates.

Key Insights

• 💰 The rise in purchasing power is a crucial indicator of economic progress, potentially signaling a stable dinar valuation.
• 🎊 The holiday in Kurdistan may serve to stimulate consumer spending and provide data on inflation trends, critical for future rate decisions.
• 🔒 The implementation of digital banking systems is expected to enhance security and efficiency in transactions, positioning Iraq favorably in the global market.
• 🌐 The approval from major international organizations indicates confidence in Iraq’s economic reforms, which could attract foreign investments.
• ⚖️ The potential adjustment of the exchange rate raises concerns but also opportunities for contractors and investors in the region.
• 📈 Increased interest from banks in dinar holders suggests a shift in perception, viewing the dinar as a viable asset rather than a speculative gamble.
• 🔍 Ongoing discussions about rate changes highlight the dynamic nature of Iraq’s economic landscape, necessitating close monitoring by investors.

YADA: " THE AMENDMENT FRO THE RATE CHANGES WAS DONE LAST WEEKEND" @DINARREVALUATION #iraqidinar

 

The Sudanese stresses the need for Iraq to diversify the sources of armament to raise the efficiency and resiness of the security forces, 24 DEC

 The Sudanese stresses the need for Iraq to diversify the sources of armament to raise the efficiency and resiness of the security forces

Mawazine News Baghdad

Prime Minister Mohammed Shia Al-Sudani stressed Iraq’s need to diversify sources of armaments, to raise the efficiency and readiness of the security forces.
Al-Sudani said, during his reception on Monday, representatives of the Korean company (Kai) for Air and Space Industries: “The government is keen to cooperate with the company, and benefit from its expertise and capabilities to develop and strengthen air defense capabilities, which come within the targets of the government program in achieving security reform and developing security services.”

The Prime Minister, according to a statement from his media office, pointed to Iraq’s need to diversify sources of armament, which the government has worked on as part of a comprehensive plan to raise the efficiency and readiness of the security forces, and to enhance the country’s capacity in the face of various internal and external challenges.

For their part, representatives of the Korean company reviewed its capabilities in the field of aviation and the manufacture of drones, and concluded contracts with the Ministries of Interior and Defense, related to the preparation of aircraft and contributing to the completion of the Essaouira air base scheduled to be opened next year.

https://www.mawazin.net/Details.aspx?jimare=257780

TIDBIT FROM CLARE, 24 DEC

 Clare

  Article:  “The dollar market is on “one leg”.. A ​​new mechanism and the exchange rate is threatened!" 

 Quote: "The Central Bank of Iraq is preparing to stop dealing with the electronic platform for dollar transfers abroad, at a time when experts have warned against raising the exchange rate to a higher level in light of the news circulating about this...

News has been raised about a move towards a new adjustment to the exchange rate, which has raised economists’ concerns about the potential impact of this move on the economic process in general."