BANK STORY PERSON: I'm a pastor south of Nashville...yesterday I thought I'm gonna do my due diligence and reach out to some of the banks in my area...The Franklin/Brentwood area south of Nashville is the richest county in the United States...The first bank was a Pinnacle Bank...the oldest bank in Nashville...I talked to the branch manager and she knew nothing...
She knew zero about it...I walked over to the Wells Fargo...I said I'm curious if you guys verify and exchange foreign currency her eyes lit up. She said, which currency have you got? I said the Iraqi dinar. She said, sir we do not and the reason we do not is because there have been several times Wells Fargo has got burned by bad currency...
I thanked her for her time and I thought ok two strikes let's try Chase which is 50 yards away. I walk into Chase in Franklin, Tennessee, asked for the branch manager...I said sir do you do anything with foreign currency?He said yes we do. He said which currency have you got. I said the Iraqi dinar. He said absolutely yes. He was very excited about it. We were standing right there in the middle of the lobby and he didn't try to hold back his facial expression,
language or anything. He said, yes, we would love to do business with you.
FRANK: Did he say anything else like yeah, we know or we're in preparation, we're getting ready?
Bank Story Man: I said, how are you aware of that. He said, we've been waiting for this to transpire...
I said, depending on the amount dinar our group brings in to you, can you work with us on the transaction fee or even eliminate it?He said sorry sir we are not...The way Chase has got it established...they have it baked in. That was his exact words, baked in transaction fee into the rate...He can't change it. I said so no matter what outlet...location or the amount of dinar? He said that's right, it will not change.
FRANK: What was that fee did he say?
BANK STORY MAN: He said around 4%.
FRANK: Wow, I've always said a fair rate is anything like 1%, 2% or 3%. I guess they decided to go one more percent. That's a lot of money.
BANK STORY MAN: He said I also I want you to be aware of something. He said when you come in to do your exchange, he said realize we can only do $5,000 increments at a time.
In a statement, the group added that, as friends and partners of Iraq, Canada, France, Germany, Italy, Japan, the European Union, the United Kingdom, the United States, and the World Bank commit to supporting Iraq in the implementation of a comprehensive and ambitious reform agenda, paving the way to sustainable and inclusive economic development.
Statement of the Iraq Economic Contact Group of the G7, European Union and World Bank
On December 12, the Iraq Economic Contact Group (IECG) held the final meeting of 2023, co-chaired by Italy and the United States. As friends and partners of Iraq, Canada, France, Germany, Italy, Japan, the European Union, the United Kingdom, the United States, and the World Bank commit to supporting Iraq in the implementation of a comprehensive and ambitious reform agenda, paving the way to sustainable and inclusive economic development.
The IECG is eager to strengthen its engagement with the Government of Iraq (GOI) through regular dialogue at both the political and technical level. This engagement is crucial to streamline cooperation between the two sides, identify and support common goals, and support the GOI's priority reform areas. The IECG commends Prime Minister Mohammed Shiaa al-Sudani for appointing business and economics experts within his office and looks forward to collaborating with them.
The IECG was encouraged by Prime Minister Sudani's announcement of new economic reform initiatives throughout 2023 and the passing of a historic three-year budget that laid the foundation for implementation of the government's reform agenda. In October, Iraq gained membership to the European Bank of Reconstruction and Development (EBRD) - a move strongly supported by the IECG as the first step to unlocking new sources of investment and enhanced cooperation with other multilateral and bilateral financial facilities.
In the past month, the government convened conferences on Public Private Partnerships (PPPs) and tax reform, including a new bank sector reform project with Rafidain Bank. Further, the GOI recently announced the establishment of the Iraq Fund for Development (IFD) alongside the Development Road project, and the Prime Minister strengthened economic ties with regional partners. The GOI's efforts to expand the use of digital platforms for financial transactions, with electronic payment and other e-commerce mechanisms, represent important steps to minimize the informal economy and reduce opportunities for corruption.
Looking ahead to next year, the IECG welcomes further cooperation in support of Iraq's economic and financial sector development, including Prime Minister Sudani's policies to strengthen the dinar and oversee monetary policy. Clear communication of new dinar policies during the transition period will help avoid adverse effects on Iraqi households and businesses as well as on development cooperation projects and foreign investments in Iraq.
The IECG also stands ready to support Iraq's next steps to becoming an EBRD Country of Operations, its journey toward World Trade Organization accession, and its potential partnership with the European Investment Bank (EIB). EIB's expertise in road, railroad, water and sanitation investments, climate action, environmental sustainability financing as well as urban transmission initiatives will accelerate key infrastructure measures and help facilitate a green transition.
The IECG urges further attention in 2024 to address the deficit and public sector wage bill, measures that would improve fiscal resilience. Timely budget execution will be critical to the GOI's ability to sustain important infrastructure investment, particularly in expanding domestic power generation, distribution, and expansion of green energy. Long-term sustainable economic development is contingent on a dedicated response to pressing climate and environmental challenges. Sustained investment in water management and infrastructure is critical to counteract the debilitating impacts of climate change.
To accelerate private sector growth, the IECG encourages government action to identify and address the challenges faced by domestic and international business, including efforts to promote transparent and predictable regulations. In this vein, we welcome further progress on the PPP, Companies, Industrial Investment, Customs, and Arbitration laws as well as timely implementation of the recommendations from the recent PPP and tax reform conferences.
On January 1, Italy and the United States proudly hand over the IECG to incoming co-chairs France and the United Kingdom. Under their leadership, the IECG will continue to support an ambitious reform agenda, promote sustainable economic development, and stand by Iraq's side as a reliable friend and partner in 2024. link
“The Basel Committee on Banking Supervision has issued a public consultation on proposed amendments to its standard on banks’ exposures to cryptoassets.” These proposed changes will flesh out the criteria needed to back stablecoins with reserve assets and require Banks to have an understanding of how these procedures work to ensure a sufficient understanding of their use.
These public comments and proposed amendments will become crypto asset standards for the next economy. The purpose of public consultation is to allow citizen input to inform policy design along with decision-making processes.
This will be an update to a process that has already taken place and will be due on March the 28th, 2024.
[via PDK] We have seen the IQD listed on foreign exchanges around the world. But, this doesn’t mean the IQD is fully international with a new rate yet. But it is showing up on all kind of exchanges…regionally and internationally and locally on all kind of bank screens. It has never shown on these before. So we are headed in the right direction.
Question: What is the rate that is being shown?
MarkZ: Anywhere from $1 to about $4.81 depending on who, what or where it is being shown...My Iraqi sources seem to think something will happen this week. We are looking for huge stuff starting tomorrow on the 20th through Jan 1
The rumors are through the roof. From Iraq especially…that they have expectations for the next 48 hours and before the 20th. I do not know if it will happen on the 20th…but I do feel it will happen within the next few weeks. Banking contacts are all looking at the next 36/48 hours… We really are close...lets see what happens. But everyone stay grounded. You all know it’s inevitable. It’s a “when” and not an “if”...
PM Barzani reiterates support for private banks in Kurdistan, Iraq
ERBIL (Kurdistan24) – Kurdistan Region Prime Minister Masrour Barzani on Tuesday reiterated his cabinet’s support for private banks in Kurdistan Region and Iraq in a bid to develop financial and economic systems, according to a statement.
Barzani received Ziyad Khalaf Abed Kareem, the International Development Bank’s chairman of the board of directors, in Erbil, where they discussed the economic diversification program the Kurdistan Regional Government (KRG) is undertaking, per a statement from the premier’s office.
The premier and the chief banker discussed “economic development and the KRG banking reform,” the press release said.
The Region is ready for various investments, Barzani told the banker.
Abed Kareem expressed his delight over the "premier’s worldview regarding economic diversification and developing the banking sector", according to the release.
“We reiterated our support for the private banks in Kurdistan Region and Iraq to develop economic and financial systems,” the premier said.
What is the MyAccount initiative?
MyAccount Initiative is the KRG's financial inclusion program which aims to "provide public sector beneficiaries with a safe, and convenient way to access their salaries."
First initially launched as a pilot project, which included 841 employees at Erbil Children and Maternity Hospital, the program aims to digitalize all the payment systems.
The KRG Department of Information Technology (DIT) designed, tested, piloted, and implemented a secure application for onboarding KRG employees into the My Account initiative in line with the Central Bank of Iraq’s Know-Your-Customer (KYC) needs.
In partnership with private banks, the government aims to accelerate the rollout of more ATMS and Point of Sales by the end of next year.
Approximately 175,000 civil servants in the Kurdistan Region have been registered in the My Account Initiative.
