[via WiserNow] Now, the bank screens...are going solid rates on front and back screens and are showing on our redemption center screens - on the back screen, solid - but the front screens are still flashing ... Now, what's interesting about that is that the theory is that when those front screens stop blinking and go solid on these rates, that it would be “go time” - that we would get the green light. So I have a feeling they'll be blinking up until the Treasury says go...
...Iraq has already been doing exchanges at their new rate in the country of Iraq. They were told that on the first...of January, the USD or Fiat dollar is dead. It is no longer usable – it’s gone - they want them to completely transition to the new lower denominations of the Iraqi dinar and those are in the ATMs. They're in banks and in shops in Iraq. They're in the businesses and shops.
I got a call that said the...US Treasury was going to send out an email to all banks and redemption centers ...when we talk to people like the southeastern regional manager of Wells Fargo and certain other people they say everything is done...everything's done. We don't know why it hasn't happened. And when you get that from your top banking sources, that you really haven't heard what that email was - it tends to make us believe - Yes, we're super close, but we still don't know exactly when it's gonna go...
US Secretary of State, Anthony Blinken, arrived this evening, Friday (January 5, 2024), in Istanbul, his first stop on a tour in the Middle East centered on the war in Gaza, according to an Agence France-Presse correspondent accompanying him.
In addition to Turkey and Greece, Blinken will visit five Arab countries, as well as Israel and the West Bank, as part of this fourth tour in the region since the outbreak of the war between Israel and Hamas.
US State Department spokesman Matthew Miller said that Blinken would discuss issues including “immediate measures to significantly increase humanitarian aid to Gaza.”
Miller said he would also discuss “preventing the spread of the conflict,” days after Hamas leader Saleh Al-Arouri was killed by an Israeli strike in Lebanon and while the Iran-backed Houthi rebels in Yemen target ships in the Red Sea.
Miller stressed, “He will discuss specific steps that the parties can take, including how they can use their influence with others in the region to prevent escalation.”
He continued, “The conflict crossing the Gaza borders is not in anyone’s interest – not Israel, the region, or the world.”
He explained that Blinken will visit Egypt, Jordan, Qatar, Saudi Arabia, and the United Arab Emirates.
This is Blinken’s fourth tour in the region since the October 7 attack launched by Hamas on Israel, which was met with a major Israeli military campaign on the Gaza Strip.
If and when the Central Bank decides to increase the value of the Iraqi dinar more than likely it will be based on some type of gradual float as a result of the success and growth of Iraq's own economy and an increase in GDP.
I hope each and every one of you find success in this investment...It may take time. It may be another 1 to 5 years. I certainly hope not but I believe things could happen quickly over the next 36 to 48 months. It all depends on Iraq.
...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.
Iraqi Companies Record An Increase In Market Value During 2023 And Expectations Of The Entry Of “Foreign Portfolios”
2024-01-05 Shafaq News/ The Future Iraq Foundation for Economic Studies and Consultations monitored an increase in the market value of companies listed on the Iraqi Stock Exchange by 20% during the past year to reach 18.66 trillion Iraqi dinars, higher than what it recorded at the end of 2022, which amounted to 15.56 trillion Iraqi dinars.
According to the institution’s statistics, the banking sector, which represents 50% of the total market value of listed companies, rose by 19.4% to reach 9.23 trillion dinars after it was at the end of 2022 with a value of 7,734, and this increase came as a result of the rise in the market value of the banks of Baghdad, the Iraqi National Bank, Al-Mansour Bank, and the Credit Bank. Its market value increased by more than 100% during this year.
At the level of the telecommunications sector, which represents 38% of the total market value of companies, it increased by 22.7% as a result of the increase in the market value of “Zain Iraq” by 25.8% and “Asiacell” by 18%.
In the industrial sector, which represents 5.6% of the total market value of listed companies, it rose by 13.8%, making the sector exceed the trillion dinars barrier for the first time, after it was at the end of 2022 around 915 billion dinars. This increase came as a result of the rise in “Pepsi Baghdad” company, which represents 76% of The total market value of industrial sector companies increased by 17.6%, but the market value of many industrial companies decreased, such as “Fallujah” for construction materials, and the Modern Construction Materials Company, whose value decreased by 41%, which affected the total market value of the sector.
While the hotels and tourism sector, which represents 3.36% of the total market value of listed companies, recorded an increase of 11.6%, bringing the market value of the sector’s companies to 627 billion dinars, after it was at the end of 2022 at a value of 562 billion dinars. This increase came as a result of a rise in the shares of Babel Hotels. Which represents 32% of the total companies in the sector, and whose market value increased by 7.5%, in addition to the increase in the market value of the “Palestine” Hotel, which represents 14% of the total market value of companies in the sector, which increased by 37.5%.
It is expected that companies listed on the market will witness an increase in 2024, especially the banking, industry, services and agriculture sectors. It is possible that the market value of the entire market in 2024 will exceed the 22 trillion dinars barrier, especially with the percentages of profits achieved by companies listed on the market, specifically in the banking sector, which is expected to increase. It will dominate the market more over the next year through the merger of a group of banks and also the demand to buy bank shares, most of which are below the fair value of the share.
It is expected that new companies will be listed that could contribute to increasing the demand for shares and thus increasing the market value of the market, as it provides an attractive investment environment that derives its strength from the strength of corporate profits, the high share price, weak competition in the market, in addition to the entry of new foreign portfolios into the market that contribute to increasing the market value of companies. included. LINK
