Digital dinar instead of cash dollar.” These are the most prominent gains of electronic payment
Today, Friday (December 1, 2023), the Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Salih, explained the benefits of adopting the electronic payments system in transactions inside Iraq.
Saleh said in a statement received by Baghdad Today, “The cash payments system is linked to a high degree of certainty whenever payments are made by electronic or digital means, which provides an indicator of liquidity in the banking system and reduces the degree of uncertainty in banking liquidity.”
He explained that "the payments system provides sufficient information about the flow of cash into the banking system, makes clear the amounts of paid and accumulated amounts, and indicates their actual balances at all times during the banking working day. Conversely, in light of the monetary systems that rely on direct cash payment, banking liquidity management policies surround themselves." With additional hedges of idle liquidity in order to protect against liquidity risks.
Saleh stated, “This matter disrupts part of banking operations and credit in particular, so as electronic payments increase as a behavior in daily dealings, the management of the cash mass and its flow in the banking system will be subject to the rule of clarity in cash management and then directing bank credit towards profitable areas by expanding... Credit activity provides efficient use of the cash supply, as well as a decrease in the rate of cash leakages outside banks, which means that a structural change in the behavior of cash demand among individuals and at banks will tend towards a decline, due to dealing with electronic payment systems that are linked to bank accounts.”
He stressed, “The development of the payments environment and its transition from a direct cash environment or cash payment in payment and receipt operations to the use of electronic payment will, in all cases, reduce the risks of local cash payment in currencies other than the dinar and distance the national economy’s transactions from cash payment in foreign currency, because payment systems Digital does not allow transactions in the local economy in anything other than the dinar, that is, the national currency, and certainly the economy’s tendency in its transaction payments is to (the digital dinar) instead of (the cash dollar), whose transactions in internal settlements are legally rejected completely by virtue of the principle of monetary sovereignty of the Iraqi dinar. link
The OPEC+ alliance announced Brazil's access to the oil alliance starting in January 2024, according to a statement issued on Thursday by the 36th OPEC ministerial meeting of oil exporting countries and their allies.
Oil markets have been waiting over the past few weeks to learn about the outcome of the meeting of the ministerial follow-up committee of the "OPEC+" alliance, which was postponed for four days and held virtually today, especially after oil prices lost nearly 15 % of their peak reached in September. September.
Saudi Crown Prince Mohammed bin Salman received on Wednesday in the capital Riyadh, President of the Federative Republic of Brazil Luiz Inácio Lula da Silva, where they reviewed bilateral relations, enhanced joint cooperation, discussed investment opportunities, as well as regional and international developments, according to the Saudi Press Agency.
OPEC+ delegates earlier said Brazil was ready to join the alliance, but a Brazilian official said it was still studying the benefits. The move would draw one of the most important new oil sources affecting global supply growth to the coalition, which is tightening production restrictions.
According to S&P Global data, Brazil's oil production is about 3.2 million barrels per day, and its exports averaged 1.8 million barrels per day in the third quarter of this year, an increase of 40% from the same period in 2022. Higher-than- Expected production growth in Brazil and the United States is helping lift global supply by 1.7 million bpd this year to a record high, according to the International Energy Agency.
Why are all these countries, why are all these companies saying such great and wonderful things about Iraq and Sudani when they never did before?Why is it that parliament is saying beautiful things about reforms and the success of it that Sudani has had? There is a change in your [Iraqi citizens] monetary policy. Your monetary sovereignty is coming to you before '24.
Can the CBI, Alaq and the board of directors reduce the exchange rate of the American dollar?
No, of course not. They don't have jurisdiction to do that.
Who can do that?
The US Treasury. Alaq and Sudani said to the citizens, 'Private banks will give support to the Iraqi citizens by reducing the dollar exchange rate.' What that means is they're going to give value to the Iraqi dinar...It reduces the value of the American dollar in the country of Iraq.
Every day those that were against it [The dinar/monetary reform], those that were negative like parliament are complimenting and cheering on what is about to happen.
Everyday they come up with new ways of saying the same thing. Article: "Advisor to the prime minister: Economic policy in Iraq is moving towards implementing the principle of monetary sovereignty"
MONETARY SOVEREIGNTY... ANOTHER BEAUTIFUL WAY OF SAYING WE HAVE A NEW CURRENCY.
Question: "Do I need my receipt when I go exchange my Iraqi dinar?"
The answer is no but you will need your receipt if you are ever audited to determine the tax bracket that they would charge you under. [Note: Speak with your tax professionals at the appropriate time to determine the right tax for your unique circumstances.]
Deputy: Most of the problems of the region and the center are due to the lack of an oil and gas law
According to Sharif Suleiman, representative of the Kurdistan Democratic Party, the ongoing issues between Baghdad and Erbil are mainly due to the lack of an oil and gas law. Suleiman stated there is a push to pass this legislation and resolve the problems.
Suleiman stated, “What makes me optimistic is that all political parties acknowledge the significance of the oil and gas law. Moving forward with its legislation within the Parliament has become necessary.”
He emphasized that given Iraq’s dire need to legalize oil, gas, and natural resources, the approval of the aforementioned law should be expedited at the current stage. This will ensure that all governorates receive their fair share and obtain their rights.
Most of the disputes and problems between the central government and the regions arise from the absence of a comprehensive oil and gas law. Efforts are being made to pass this law in a manner that benefits all parties involved and ensures the rights of the oil-producing provinces. If the oil and gas law is approved, it may be necessary to amend the budget law to ensure compatibility with its provisions.
SUDANESE ADVISOR: REFORMING THE ECONOMY BEGINS WITH THE GOVERNMENT BANKING SECTOR
The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed today, Tuesday, that the economic policy in Iraq is moving towards implementing the principle of monetary sovereignty, and while he pointed out that the informal exchange market represents only 10% of trading, he stressed that it cannot be controlled The currency of a country other than the dinar with pricing within the country; Because monetary duality has harmed the economy, he pointed out at the same time that there is a tendency to diversify currencies for travel purposes and not be limited to the dollar.
Saleh told the official agency, “Economic policy in general and monetary policy in particular are moving towards a new principle called (monetary sovereignty), which considers the Iraqi dinar the only refuge for exchange, pricing, and coverage of internal transactions.”
He added, “It is not permissible for the currency of another country whose monetary policy is subject to pricing and trade exchange operations within the Iraqi economy, and the principle of monetary sovereignty starts from this level.”
He continued, “The problem in Iraq is the existence of two exchange markets: the first is the regular one in which exchange takes place through the central bank’s platforms, which prices the exchange rate at 1,320 dinars to the dollar as a stable and official price and defends monetary policy.”
He explained, “The second market is irregular, representing 10% of the trading rate. It is an uncontrolled market controlled by speculators and adds noise to the Iraqi economy as a whole.”
He pointed out, “There are two things: The first is commodity diversification, which the government has begun through baskets supporting livelihoods, including the food basket, which has achieved stability in the prices of materials, as well as the medicine basket, a construction basket, and another basket for reserve materials that the Ministry of Commerce will launch soon. These are funded at the official exchange rate and help… Stabilize prices and counteract the noise introduced by the informal market.” He stressed that “dealing in the dollar (dollarization) and its pricing of the internal economic movement is what is most harmful to the economy, but there is no harm in covering external transactions exclusively and through official platforms.”
Saleh pointed out, “On this basis, government policy and the policy of the Central Bank moved towards not relying on one country’s currency in foreign transactions and diversifying those currencies such as the Emirati dirham, the Turkish lira, the Chinese yuan, the British pound, and the euro, in addition to the dollar. This diversification reduces the dollarization of the economy and gives it great independence.”
He stressed, “This diversification can be generalized at the level of selling foreign cash currencies for travel purposes and according to the currency of the country to which one is traveling. This will greatly reduce the demand for the dollar as a single currency in transactions, and the monetary and commodity diversification adds independence to the Iraqi economy.”
Regarding Iraq’s steps to provide these currencies, Saleh said, “The monetary authority in Iraq is independent and there is a wide consultation circle between it and the government. This is happening for the first time to open banking arrangements with central banks in countries that have a commercial partnership with Iraq, such as the Emirates, Saudi Arabia, Turkey, and China, and it is possible to cooperate with these countries.” Directly in their national currencies to achieve ease of conversion and exchange to finance trade and the movement of goods, supported by a stable exchange rate of 1,320 dinars, which allows for achieving stability and monetary sovereignty.”
He pointed out, “The demand for foreign currency is linked to the demand for goods and external transactions. It is dangerous to use the dollar to cover internal transactions, and monetary double-dealing has harmed Iraq. This must end, and it does not mean not providing foreign currency to citizens for the purposes of financing foreign trade or for the purposes of travel and tourism. Therefore, there are steps.” This is a major regulatory change aimed at achieving diversification through agreement with several countries with which transactions are conducted.”
He stressed, “The state has large commercial arms, and whenever it finds that there are needs affected by secondary market noise, the commercial apparatus intervenes to expand its dealings, supported by a stable exchange rate, as well as in cooperation with Iraqi merchants.”
Regarding the government’s steps to strengthen the banking system, the Prime Minister’s advisor said, “There is a large team headed by the Prime Minister that directly supervises the reform of the banking system, and the largest system is the government system, whose assets dominate 85% of the assets of the banking system in Iraq, so the reform begins with government banks.” We are working on this seriously, and during the next 6 months the results of this reform will appear, and there will also be work in parallel to reform the private banking system, and there is a strong movement and cooperation in this direction with the associations of private and Islamic banks.”
He stressed, “The Prime Minister’s philosophy confirms that economic reform cannot be achieved without reforming the banking system, and therefore the priority begins with reforming the financial system.”
(Gee Whiz… isn’t what I have been saying all along. Now we have it in writing. So what comes first the chicken or the egg? What comes first rebuilding the economy or the means to do it? Iraq cannot move ahead with rebuilding the economy unless it has an international currency and this article today tells us why. The rate of the dinar must reflect the true value of the wealth of Iraq and then they can attract investors but only after implementing the needed banking reforms and the currency reform is part of the banking reforms. After witnessing the changes in Iraq over this last year you are not yet convinced the dinar must be reinstated first to a revalued rate, a true and honest rate. We are NOTwaiting for the rate to rise slowly as the economy is being rebuilt. Get it now?)
Their words not mine…..No Rumors, No Hype, No Opinions ,,,,,
Just the FACTS!
Disclaimer: All information in this newsletter is not intended for investment decisions / purposes. Mnt Goat is not a financial analyst, planner, banker, attorney or associated in any role with giving out professional investment advice.
