Evening News with MarkZ. 11/17/2023

In euros and yuan.. The Sudanese advisor explains the mechanism of working in the “equal deal” for trade exchange, 17 nov

 In euros and yuan.. The Sudanese advisor explains the mechanism of working in the “equal deal” for trade exchange

On Wednesday, Mazhar Muhammad Saleh, economic advisor to Prime Minister Muhammad Shia al-Sudani, explained how the “equal deal” for trade exchange works.

Saleh explained that the equal deal involves financing trade exchange between countries using a mechanism of settlement and payment in their respective local currencies.

In simpler terms, trade exchange involves facilitating the trade of commodities between two countries. During this process, the settlement and payment are carried out using the currencies of both countries. As a result, each country retains the currency of the other country.

He explained that the trade process between any two countries in the world is conducted based on free competitive principles. The goods exchanged are priced in the local currency with a fixed exchange rate between the two local currencies. This simple commercial application is currently being used by some Gulf countries with countries like China or India.

According to a government source, Iraq is currently pursuing an “equal deal” initiative whereby trade and imports will be exchanged with certain countries like China and India, using their respective currencies instead of Iraq’s main trading partners like India, China, and some neighboring countries.

Iraq Central Bank Strikes Key Deals To Bolster Currency Reserves, 17 nov

 Iraq Central Bank Strikes Key Deals To Bolster Currency Reserves

ICB faces criticism over unconstitutional currency import methods

Iraq’s Central Bank has initiated agreements with foreign countries to enhance the reserves of Iraqi private banks in various currencies, amidst growing domestic challenges. These developments come amid calls for a no-confidence vote against the bank’s governor due to economic pressures and the declining value of the Iraqi dinar against the US dollar.

According to the Iraqi News Agency, the bank and US officials have reached an agreement to bolster the reserves of 10 Iraqi banks with US dollars. The agreement, made in Abu Dhabi, allows five banks to work with Citibank and another five with JP Morgan. Furthermore, the bank is increasing the number of banks permitted to hold reserves in the Chinese Yuan through the Singapore Development Bank to 13, with two banks already strengthening their reserves in Indian Rupees.

These measures are aimed at supporting nearly 95% of Iraq’s foreign trade needs, which rely on foreign currencies. Additionally, the bank is exploring ways to boost Iraqi banks’ balances in Emirati Dirhams, Euros, Chinese Yuan, and Indian Rupees, particularly for financing imports in the pharmaceutical and food sectors.

The bank’s decision to allow private banks to import foreign currencies via commercial flights has sparked controversy, with critics labeling it unconstitutional. This has contributed to a parliamentary motion to remove the bank’s governor, who is also facing criticism for failing to stabilize the dinar’s value against the dollar, despite a government-approved currency revaluation earlier this year.

https://themedialine.org/headlines/iraq-central-bank-strikes-key-deals-to-bolster-currency-reserves/

Iraqi dinar 🔥 Iraqi dinar revaluation set inside source confirmed 🔥 Iraq...

"RV UPDATE" BY MARKZ, 17 NOV

 MarkZ   

[via PDK] 

  I still continue to hear from Iraqi sources that come hell or high water they are going by the first of Dec.   I continue to hear fantastic things about the progress and how Iraq has positioned itself to force this across the finish line.   I’m excited as to where we are... Question:  Many said RV is going to happen this weekend, what do you think?   MarkZ:  The chatter is phenominal…so its possible.

  Article:  “Baghdad reveals new economic package to further de-dollarize trade”  Of course the goal is to strengthen the dinar. This one is from the Express Tribune “Unshackling the Iraq Dinar” Talking about how Iraq has a plan to unshackle themselves from US dealings…and is aligning themselves with BRICS and new emerging global commodities.  Part of that process is strengthening the dinar…removing the 3 zeros…(not a lop).  These are great… They are coming from main stream

worldwide news sources and are talking about exactly what we are expecting. The Strengthening of the dinar…de-dollarization...and  return of commodities backing their money.

I have had more banking confirmations ...saying that all we are waiting for is a “GO” and any final instructions for anything that may have changed last minute.  I talked to some banking sources…and it is overwhelming the banks saying we are at “any moment”  and a number of them are saying it’s this week. The sheer number of bank sources from different banks (3 regional banks and 4 major banks) that were told to get ready for any moment this week...Whether it is this week or not - the chatter is sure great.

A source for “Al-Iqtisad News”: Private banks and exchange companies express their preparations to reduce the exchange rate, 17 nov

 A source for “Al-Iqtisad News”: Private banks and exchange companies express their preparations to reduce the exchange rate

11/16/2023  Baghdad

Today, Thursday, a source revealed moves being made by the private banking sector and exchange companies aimed at raising the value of the dinar against the dollar.

The source, who preferred to remain anonymous, said in an interview with Al-Eqtisad News, “ Private banks and exchange companies are showing great preparations, collectively and in coordination, to reduce the price of the dollar ,” noting that “this will be through expanding engagement with the official market and its high capabilities.”

He added, "There are ongoing meetings to discuss several options that the market will undertake by itself to impose stability in the exchange rate   LINK

Kurdistan's Council of Ministers discusses oil export resumption negotiations, 17 nov

 Kurdistan's Council of Ministers discusses oil export resumption negotiations, 17 nov

Shafaq News/Kurdistan's Council of Ministers convened its regular weekly meeting today, chaired by Prime Minister Masrour Barzani and attended by Vice President Qubad Talabani. 

The session addressed a range of topics on its agenda, focusing on the outcomes of joint talks between the Iraqi Ministry of Oil and the Kurdish delegation on the 12th and 13th of November regarding the potential resumption of Kurdistan Region oil exports.

A statement by the government said that the Prime Minister and relevant ministers presented an overview of the discussions held between the Kurdistan Regional Government (KRG) and the federal government delegation. 

The federal delegation, led by the Deputy Prime Minister for Energy Affairs and the Federal Minister of Oil, engaged in several days of talks in Erbil.

Prime Minister Barzani reiterated the readiness of the Kurdistan Region to promptly resume oil exports, aligning with constitutional principles and respecting the constitutional powers and rights vested in the Kurdistan Region. He expressed hope for swift progress on the federal government's part to expedite preparations for the resumption of oil exports.

The Council of Ministers welcomed the positive trajectory of negotiations surrounding exporting the Region's oil, emphasizing its mutual benefit. 

The cessation of oil exports had led to significant financial losses in the public treasury, amounting to billions of dollars. The Council stressed the importance of safeguarding the rights and entitlements of the Kurdistan Region in adherence to the Constitution.

Furthermore, the Council directed the Kurdish government delegation to persist in their efforts and discussions to ensure a favorable resolution in the ongoing negotiations. The resumption of oil exports holds significant economic implications for the Kurdistan Region and the broader federal government, emphasizing the shared interest in a cooperative and constructive outcome.

https://shafaq.com/en/Kurdistan/Kurdistan-s-Council-of-Ministers-discusses-oil-export-resumption-negotiations