Coffee with MarkZ and Andy Schectman 09/14/2023

The US Treasury discusses with the Iraqi Central Bank foreign trade in three foreign currencies other than the dollar, 14 SEPT

The US Treasury discusses with the Iraqi Central Bank foreign trade in three foreign currencies other than the dollar, 14 SEPT

 The Governor of the Central Bank of Iraq announced on Wednesday that he discussed with the US Assistant Secretary of the Treasury combating money laundering, terrorist financing, and foreign trade in three currencies other than the US dollar.

The Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, met with Assistant Secretary of the US Treasury Elizabeth Rosenberg and her delegation. Bilateral relations were discussed, and the Central Bank of Iraq’s measures to combat money laundering and terrorist financing were reviewed. The meeting also involved confirming the continued support provided by the US Treasury and joint efforts to enhance transparency, integrity, and compliance with international regulations within the Iraqi banking system. The bank’s media released a statement regarding the meeting.

The statement reveals that two parties met and discussed the progress made in previous meetings between the Central Bank of Iraq and the US Treasury Department and Federal Bank. They also talked about the possibility of technical support in financing foreign trade through trustworthy banking channels. The financing will be provided in various currencies such as the euro, the Chinese yuan, and the Emirati dirham. The parties also discussed organizing trade with the Republic of Turkey.

The US Treasury Department commended the Central Bank of Iraq for its efforts in ensuring transparency and accuracy of procedures through contracting international auditing companies.

On Tuesday, the US Ambassador to Iraq, Alina Romanowski, made an announcement on X (formerly Twitter). In the blog post, she expressed her pleasure in welcoming the assistance of US Treasury Secretary, Elizabeth Rosenberg, to Baghdad. She also mentioned that she is looking forward to holding important meetings with government leaders and officials in the Central Bank of Iraq.She stated that combating international money laundering and implementing banking reform could help fight corruption and promote foreign investment in Iraq.

Economic accusations pursue entities in the Central Bank: they are working to bring down the government through the dollar, 14 SEPT

 Economic accusations pursue entities in the Central Bank: they are working to bring down the government through the dollar

Economic accusations pursue entities in the Central Bank - they are working to bring down the government through the dollarInformation / Baghdad..

On Wednesday, economic expert Zia Mohsen accused parties within the Central Bank affiliated with internal and external agendas of working to fail the government of Muhammad Shiaa al-Sudani by creating a state of instability in the dollar exchange rate.

Mohsen said in a statement to Al-Maalouma, “The measures taken by the Sudanese government regarding limiting the rise in the exchange rate of the US dollar against the Iraqi dinar since the appointment of a new governor of the Central Bank faced obstacles placed by parties within the Central Bank.”

He added, “There are parties working for internal and external agendas to thwart the government of Prime Minister Muhammad Shiaa al-Sudani by creating a dollar exchange rate crisis.”

He pointed out that “these parties have found new outlets for currency smuggling, including disbursing $30 million a day to travelers, in addition to the government’s ban, taking into account the views of specialists in the field of monetary policy.”

The exchange rates of the US dollar against the Iraqi dinar, in the local markets, are witnessing a state of instability, despite the many measures taken by the government and the Central Bank.

almaalomah.me

"RV UPDATE" BY MARKZ, 14 SEPT

 MarkZ  

 [via PDK]   Groups are positioned and ready…agreements are done…people are all in place…The US Treasury is in Iraq…all we are waiting on is the switch pulled. 

  I am continuing to hear very positive stuff.  The consensus is from my Iraqi contacts…that they are looking for a worldwide announcement of a rate change somewhere around the 20th or 21st. That does not mean we are waiting until then. That means that is when it should be announced to the public. We should hear something before then based on what I am hearing right now. Let’s hope this is accurate. I don’t think I have ever heard this much hype before…It’s almost overwhelming…In a positive way.

 My banking contacts believe it will be in the next day or two. My Iraqi sources say between now and the 20th. We do not know the timing but the indicators look absolutely stunning for this timing of the next 8 days…with the emphasis on the next day or two being highly possible. Get excited, stay excited and know what you are going to do.

 People are there in Iraq to make things happen. This is main stream news on the streets of Iraq. What a news day today. They are expecting news tomorrow from rate, timing etc…in Iraq…is what I am being told by Iraqi sources…Things are getting super exciting. We do know that some of the last representatives needed are expected to be in place today and tomorrow…It is close... 

Question:   "Why does the US have any say in Iraq’s revaluation?"  MarkZ:  Because of the Iraqi war and the rebuild Iraq money and part of the surrender agreement with Sadaam Hussein when they pulled out of Kuwait. That is it in a nutshell…so the US can recoup the cost of the war.  Question:  "Will the US get in the way of the RV again?"  I can tell you they are caving and cannot get in the way now.

Iraqi Dinar Latest Exchange Rate Today / Currency New Rate / Iraqi Dinar...

Vietnam eyes golden opportunity from improved relations with US - VnExpress International, 14 SEPT

Vietnam eyes golden opportunity from improved relations with US - VnExpress International

Improved relations with the U.S. are giving Vietnam the chance to transform its economy and participate deeply in the global advanced technology supply chain, experts say.

In his meeting with U.S. President Joe Biden on Monday, Prime Minister Pham Minh Chinh said to consider the economy, trading and investment as the "perpetual drivers" of a bilateral agreement.

Vietnam and the U.S.’ establishment of the Comprehensive Strategic Partnership, according to Ambassador Pham Quang Vinh, "elevates the trust and understanding between the nations, which will surely become a motivator for long-term economic cooperation."

In the face of a disrupted supply chain, numerous shifts and competition between major nations, he said the U.S. would need locations where it could trust the production process.

As observed by experts, the significance of elevated Vietnam- U.S. ties resides in the ability to establish strategic trust, which is the basis for businesses to invest long-term.

Dr. Nguyen Khac Giang, Visiting Fellow of Singapore’s ISEAS-Yusof Ishak Institute, said the Biden administration was emphasizing strategies – de-risking, shifting the supply chain to mutual partners, and friend-shoring – that were now improved after Vietnam and the U.S. upgraded their relations.

"The conditions are satisfied for both sides to form a political bond and safeguards for businesses to operate and develop," said Nguyen Quang Dong, the director of the Institute for Policy Studies and Media Development.

The premise is the advantageous and mutually beneficial relationship between Vietnamese and U.S. businesses in past decades.

The U.S. notified Vietnam of its friend-shoring strategy in July when Secretary of the Treasury Janet Yellen visited the country.

She said the U.S. wanted to expand its business relations and diversify the supply chain between trusted partners such as Vietnam.

The purpose is to reduce global uncertainties and geopolitical risks. Since 2021, the U.S. has promoted efforts to restructure the global supply chain, especially that of semiconductors which contain many essential technologies.

Vietnam’s first opportunity is to shift its economy toward modernization and to join the advanced technology supply chain.

In a shared statement, the U.S. committed to supporting Vietnam in training and growing an advanced technology labor force, as well as promoting the rapid growth of the country’s semiconductor ecosystem.

Many U.S. semiconductor firms have emphasized their investments in Vietnam.

Amkor Technology (based in Arizona) is looking at a September completion window for its US$1.6 billion semiconductor factory in Bac Ninh, with test production at the end of October.

Amkor said the factory was their largest one in the world. In mid-May, Marvell Technology, Inc. announced its world-class semiconductor design center in Ho Chi Minh City, which is at the same level as its facilities in the U.S., India and Israel.

Expectations are placed on Vietnam to make great commercial advances, especially when slower growth in the global economy reducing exports.

A shared statement between General Secretary of the Communist Party of Vietnam Nguyen Phu Trong and President Biden said both Vietnam and the U.S. would create beneficial conditions, expand access for respective countries’ goods and services, support trading and economic policies, and overcome hurdles relating to accessing markets via the Trade and Investment Framework Agreement.

"Exported goods that are traditional and have the upper hand such as textiles, furniture, footwear and electronics will recover with a positive growth rate," said the Minister of Industry and Trade Nguyen Hong Dien.

Vietnamese agricultural goods will also see increased access in U.S. markets. In August, husked coconut is the eighth fruit product to be exported via an official quota to the U.S.

As official statistics show, trading between Vietnam and the U.S. scored US$124 billion last year, a 275-fold increase in 27 years.

To Vietnam, the U.S. is the largest export market and the second-largest trading partner. Conversely, to the U.S., Vietnam is the seventh-largest trading partner globally and largest in the ASEAN bloc.

That being said, according to experts, Vietnam still has much work to do.

The ecosystem for supporting industries remains low in number and strength, which is prompting Vietnamese firms to only be manufacturers, the lowest tier.

The advanced technology supply chain will have stricter demands and requests.

"We need to carefully analyze where in this new supply chain we can insert ourselves, and from there make investments for local businesses in a methodical, strategic manner. We must refrain from thinking that we can participate immediately," Dong said.

This is to avoid a repeat of the supply chain for FDI businesses’ failure in the past.

Specifically, by participating in the advanced technology supply chain, Nguyen Quang Dong said, it was necessary to reflect on the failings of the supporting industries in the past decades.

"Vietnam has to heighten its efforts to absorb new opportunities," added Ambassador Pham Quang Vinh.

He said the Government and the U.S. needed to come together to develop major decisions focusing on policy frameworks, infrastructure and human resources.

Minister Nguyen Hong Dien noted the U.S. was a hyper-large and super-competitive import market with a scale of $US 3.277 trillion, a detail that compels businesses to adapt quickly.

Businesses must clearly establish their product strategy, partners and distribution channels; gain clarity regarding export requirements and potential relevance to trade remedies; guarantee input materials have clear origins; and research ways to upgrade production facilities based on "eco-friendly production standards."

They also need to apply strategies to diversify their customer base and to reach niche markets to lower risks.

Dr. Nguyen Khac Giang also said, at this point, the most important thing is to create conditions for local businesses to utilize this opportunity and become an essential component in the global flow of goods and services.

"When the ‘favorable window’ has passed, Vietnam’s economy must have enough strength to stand on its own at a higher rank internationally," he said.

https://e.vnexpress.net/news/business/economy/vietnam-eyes-golden-opportunity-from-improved-relations-with-us-4652900.html

The US Treasury appreciates the Iraqi Central Bank’s procedures for contracting with international auditing companies, 14 SEPT

The US Treasury appreciates the Iraqi Central Bank’s procedures for contracting with international auditing companies

On Wednesday, the US Treasury Department commended the Central Bank of Iraq for taking steps to ensure the accuracy and transparency of procedures by contracting with international auditing firms.

The Central Bank of Iraq’s media office released a statement announcing that Governor Ali Mohsen Al-Alaq had met with Elizabeth Rosenberg, the US Assistant Secretary of the Treasury, and her team.

The following is a clearer version of the statement: During the meeting, the two sides discussed their bilateral relations. They also talked about the Central Bank of Iraq’s actions to combat money laundering and terrorist financing. Additionally, the US Treasury confirmed its continued support and joint efforts to promote transparency and integrity, and to implement international compliance instructions in the Iraqi banking system.

During the meeting, both parties discussed following up on the outcomes and results of their previous meetings. The Central Bank of Iraq, the US Treasury Department, and the US Federal Bank were involved in these meetings. They also talked about the possibility of providing technical support in the field of financing foreign trade through secure banking channels. The mechanisms that enable the financing of legitimate foreign trade were also discussed. The parties agreed to conduct trade transactions using different currencies, including the euro, the Chinese yuan, and the Emirati dirham. Additionally, they decided to organize trade movement with the Republic of Turkey.

The US Treasury Department appreciated the efforts of the Central Bank of Iraq in contracting international auditing companies to ensure accuracy and transparency.