Article: "CBI Governor: Int'l welcome to the Iraqi banking sector’s commitment to compliance rules" Quote: "For the first time, Iraq is witnessing the reorganization of the external transfer process through correspondent banks, instead of the Central Bank or the Federal Bank being the executive interface for this process.”
Jeff
The elections are the linchpin to all their remaining economic steps and movements including the rate change...These elections were a reform step, which is exactly what the rate change has been waiting on throughout this entire year.
The elections are the linchpin to all their remaining economic steps and movements including the rate change...These elections were a reform step, which is exactly what the rate change has been waiting on throughout this entire year.
The reforms are absolutely waiting on the rate change to implement. They can't implement the reforms without changing the rate. They're telling you the rate change itself is very clearly waiting and has been waiting this entire year on these [provincial] elections...
Since October of last year [Iraq's Federal elections] they have been setting the economic stage for the rate change... They're done setting the economic stage. They don't have any more economic steps to do. That's why they're finishing the very last step of removing and cleaning up corruption at the second half of the government - The provincial level.
Today on Monday Iraq is holding their elections. What does this mean to us? According to Iraq's Central Bank removing corruption is the absolute minimum requirement for Iraq to be eligible to revalue their currency..
.These are the provincial level elections. It's the second half of the government. They already completed and held all their federal elections in October of last year...These elections are critical to the country to move it forward...
{Economic: Al-Frat News} The prices of the US dollar fell against the Iraqi dinar, on Saturday, with the closure of the main stock exchange in Baghdad.
Selling prices in local exchange shops in Baghdad were 153,250 dinars for $100, while the purchase was 151250 dinars for $100.
The sale price this morning was 153,500 Iraqi dinars, while the purchase was 15,500 dinars per 100 dollars.
...We all know things don't happen fast in Iraq. Iraq has a lot of work to do in order to succeed. The first of which is pass over 100 stalled laws through Parliament to encourage investment in Iraq. And at the same time the Central Bank of Iraq has to continue reforms to the banking system, digitalization, and apply monetary tools to meet compliance.
A country's exchange rate is the result of the success and growth of their own economy. When you have a weak economy, you have a weak exchange rate. Until Iraq passes laws, diversifies their economy and increases their GDP, nothing will happen with the dinar. When Iraq passed their tripartite 3 year budget a few months back, it created the conditions for them to diversify and privatize their economy over the next three years. Now Iraq is on the clock to accomplish such.
There's a new article out that many people are translating and confusing. They are not talking about an RV in Iraq, they are talking about the spread being in compliance early next year.
Just a reminder the spread is the difference between the official rate and the market rate or street rate and has been way out of whack recently in Iraq. This article simply means they expect the spread to come down closer to the official rate early next year. There is no RV.
A very important statement was made back in 2020 by the prime minister's economic advisor Mohamed Salah who used to be Deputy Governor of the CBI under Shabibi. He stated that Iraq's entire wealth including all minerals in the ground amounts to only $16 trillion dollars. Knowing that information one can then determine that there is no way a significant RV could ever occur with over 90 trillion dinar in circulation. It doesn't make sense...
They...have to have the dinar stabilized within the country and within the 2% rule mandated by the IMF in order to then accept IMF article VIII and begin to float the dinar which would raise its value based on supply and demand. All of these processes and or steps required time.
Clare: Sudanese Advisor: Discussions with 5 countries to import factories in exchange for sovereign guarantees
12/21/2023
Today, Thursday, the Prime Minister’s Advisor for Technical Affairs, Muhammad Sahib Al-Daraji, revealed discussions between Iraq, Germany, Italy, Spain, Japan, and China to import factories in exchange for sovereign guarantees.
Al-Daraji said in a statement, “There is a committee formed under the direction of Prime Minister Muhammad Shiaa Al-Sudani to implement a paragraph in the budget that stipulates granting the government sovereign guarantees in favor of importing production lines and agricultural equipment for the Iraqi private sector.”
He added, "The government is in the process of agreeing with Germany, Italy, Japan, China, and Spain, in addition to the Islamic Development Bank, to supply factories to Iraq in exchange for sovereign guarantees and to manage them by the private sector."
The Prime Minister's Advisor for Technical Affairs described it as "excellent for strengthening the Iraqi economy and changing its performance philosophy." LINK
Clare » December 20th, 2023
The Iraqi Trade Bank decides to stop working on money transfers, starting next Sunday
12/20/2023
The Iraqi Trade Bank decided to stop working on financial transfers, starting next Sunday
In a statement, a copy of which {Al-Furat News} received, the bank explained the reason for stopping work on financial transfers: “For purposes related to the annual inventory, it was decided to stop work on money transfers starting from Sunday, 12/24/2023,” noting that “the last date for receiving financial transfer requests will be on Thursday, 12/21/2023.
He added, “This service will resume work on Wednesday, 01/03/2024.”LINK