The Big Reveal, Iraq's New Exchange Rate and Currency Redenomination Exp...

Parliamentary Finance calls on banks to open branches outside Iraq, 28 FEB

 Parliamentary Finance calls on banks to open branches outside Iraq

 The head of the Parliamentary Finance Committee, Atwan Al-Atwani, presented eight proposals to develop banking services for Iraqi banks, while calling on banks to open branches outside Iraq and finance investment opportunities.

Al-Atwani said, during the “Finance and Banking Services” conference, which was attended by the “Al-Iqtisad News” correspondent, “We must turn to the banking sector, to address the problems of the Iraqi economy, by financing productive projects and using financial tools to finance the budget deficit.”

Al-Atwani stressed the need for banks to finance investment opportunities, which contributes to the growth of the economy and turns them into indispensable institutions.

The Chairman of the Parliamentary Finance Committee warned that Iraqi banks have a long history and a prominent position, but they were subjected to the wrong policies of the previous regime, which led to their curtailment.

Al-Atwani proposed 8 points for developing banking work, which are:
1- Providing banking institutions with efficient financial and technical staff, and ensuring the development and qualification of their tools and capabilities by involving them in training courses outside Iraq on modern methods of banking, and completing banking transactions using modern methods.

2- Equipping banks and banks with modern, advanced systems in all financial fields and activities and introducing the ATM service to all banks.

3- Establish quality measurement centers in all banks and activate their role by receiving development ideas and visions while honoring those with ideas that prove successful in practical fields.

4- Opening horizons for cooperation and coordination between Arab and international banks and institutions; For the purpose of benefiting from the experiences of those financial institutions that preceded us in development in order to achieve a qualitative shift in Iraqi banks and reduce the time factor to ensure that we join the ranks of the advanced in the banking industry.

5- Encouraging scientific studies and research aimed at developing outstanding performance in our financial institutions, and ensuring the translation of those studies and research from a theoretical reality into a tangible practical reality that reflects positively on the economic level.

6- Study the possibility of opening new branches of local banks outside Iraq for the purpose of expanding the circle of banking activity, providing the best services and attracting more customers to these banks.

7- Approving the basic principles for using interest, to ensure an increase in deposits, ensuring that the process is safe from counterfeiting and addressing issues related to money laundering.

8- It is necessary to point out the efforts of the legislative and executive authorities at the present time in developing the financial system and banking institutions through their efforts to complete and approve the relevant laws, which have reached the final stages, which are:

A - The draft Securities and Commodities Law, which seeks to regulate financial markets and control trading operations in a way that enhances the economic process.

B- The draft law on the Center for Banking Studies, which aims to scientifically develop banking work and raise the level of professional performance of the banking system.

T- The draft Islamic investment sukuk law, which aims to create and diversify investment tools in the Iraqi financial market  link

" Deleting IQD Zeros and WTO Accession: Iraq has been busy!" BY AWAKE-IN-3D, 28 FEB

 Deleting IQD Zeros and WTO Accession: Iraq has been busy!

On February 26, 2024
By Awake-In-3D

In recent developments, Iraq finds itself at the forefront of economic discussions, both domestically and on the international stage.

With significant steps taken towards currency reform and renewed efforts towards accession to the World Trade Organization (WTO), the nation is navigating a transformative period in its economic landscape.

As always, I will break these developments down in factual and simple terms – because that’s what I do!

Deleting Three Zeros from the Iraqi Dinar (IQD)

Economist Dargham Mohammed sheds light on the process of removing currency zeros from the Iraqi Dinar (IQD), emphasizing its nature as an organizational overhaul rather than a direct valuation shift.

Mohammed underscores the importance of conducting awareness campaigns prior to implementation, ensuring a smooth transition for the public.

Removing three zeros from the Iraqi Dinar (IQD) entails a process known as “redenomination” or “currency revaluation.”

This process involves adjusting the face value of the currency by dividing it by a certain factor, effectively reducing the number of zeros displayed on banknotes and coins.

While the overall value of the currency remains the same, its nominal value changes.

Key economic impacts and implications of removing three zeros from the IQD

1. Streamlining Transactions: One of the primary motivations behind removing zeros from a currency is to simplify transactions. Large numbers of zeros can make financial transactions cumbersome and prone to errors, especially in everyday commerce. By reducing the number of zeros, the currency becomes more user-friendly, facilitating smoother transactions and accounting processes.
2. Enhancing Confidence: Currency redenomination can help enhance public confidence in the stability and strength of the national currency. It sends a signal that the government is taking measures to strengthen the monetary system and improve economic stability. This confidence boost can have positive effects on investment, consumption, and overall economic activity.
3. Curbing Inflationary Expectations: In some cases, currency redenomination is accompanied by efforts to control inflation or stabilize the economy. While removing zeros itself does not directly address inflationary pressures, it can help reset expectations and create a symbolic break from past inflationary episodes.
4. International Integration: A redenominated currency with fewer zeros may facilitate international transactions and financial integration. It can reduce confusion and errors in cross-border trade and investment, making it easier for foreign investors and businesses to engage with the Iraqi economy.

While the removal of three zeros from the Iraqi Dinar may not directly alter its fundamental value, it can have significant practical and psychological effects on the economy.

By simplifying transactions, enhancing confidence, and reducing administrative burdens, currency redenomination can contribute to broader economic stability and growth efforts in Iraq.

Iraq’s Entry into the World Trade Organization (WTO)

Additionally, considerations are made to print new denominations that align with market demands to mitigate potential inflationary pressures.

Simultaneously, Iraq marks a pivotal moment in its engagement with the global trade community.

After an absence of two decades, Iraq’s participation in the Ministerial Conference of the World Trade Organization marks a significant stride towards integration into the international trade framework.

Minister Ethar Al-Gharawi represents Iraq’s commitment to economic reform and underscores the completion of prerequisites for accession to the WTO.

The recent visit of Saudi Arabian Ambassador Saqer AlMoqbel to Baghdad signifies a concerted effort to galvanize support for Iraq’s WTO accession process.

Meetings with high-level government officials reinforce Iraq’s dedication to resuming the accession process, with an emphasis on the strategic importance of membership for regional stability and economic integration.

Despite challenges posed by a prolonged hiatus in formal engagement, Iraq demonstrates resilience by circulating key accession documents and preparing initial market access offers.

The Ministry of Trade vows to expedite the accession process and address technical assistance needs in collaboration with international partners such as the European Union, United States, and the International Trade Centre.

With all this planning and strategic execution, Iraq aims to emerge stronger, more integrated, and economically prosperous on the global stage.

Contributing articles:

• Does removing currency zeros affect its value? An economist explains
• Iraq participates in the Ministerial Conference of the World Trade Organization
• Working Party Chair visits Baghdad to hold high-level consultations on Iraq’s accession

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Iraqi Dinar - IQD Update - WTO Accession - Obligations - ASYCUDA - Inte...BY MILITIAMAN

An expert criticizes the US Federal Bank, 28 FEB

 An expert criticizes the US Federal Bank

 Economist, Dr. Mahmoud Dagher, criticized the duplication in the work of the US Federal Reserve towards Iraqi banks.

Dagher said, “What is happening in the Iraqi banking system is a duality that is difficult to explain. The Financial Action Committee (FATF MENA) issued the results of the periodic review of Iraq, keeping it in the white area, as an expression of the commitment of Iraq and its banking institutions to acceptable performance in combating money laundering and combating the financing of terrorism, and the procedures and policies applied.” “Compatible with international standards set by the Financial Action Committee concerned with financial standards at the international level.”

He continued: “But a strange and inexplicable duality has emerged, which is the Federal Reserve’s continued restriction of most Iraqi banks from accessing the country’s wealth and its dollar reserves, and this is what makes the duality inexplicable, but rather leads to attribute this to political matters that have nothing to do with the application of financial rules.” The international resolution was decided by the Financial Action Committee in Iraq.

Dagher asked: “Who will solve this contradiction and save our banking system  link

"ANALYSIS OF IRAQ NEWS: “THERE IT IS AGAIN & AGAIN!!!” BY FRANK26, 28 FEB

 Frank26 » February 27th, 2024

“THERE IT IS AGAIN & AGAIN!!!”………F26

Al-Atwani calls on the International Monetary Fund and the World Bank to provide the necessary support to Iraq

2/26/2024  Baghdad – 

Chairman of the Finance Committee, Representative Atwan Al-Atwani, called on the International Monetary Fund and the World Bank to provide the necessary support to Iraq in the areas of exchanging experiences and training national cadres.

The media office of the Chairman of the Finance Committee stated in a statement received by the Iraqi News Agency (INA), that “The Chairman of the Parliamentary Finance Committee, Atwan Al-Atwani, participated this evening, Monday, via closed-circuit television, in the deliberative meeting of the International Monetary Fund regarding the financial and economic situation in Iraq.”   

He added, “Al-Atwani provided a complete briefing on the financial and economic situation and the provisions and programs included in the tripartite budget law for the years (2023-2025) that are consistent with the government program to advance various sectors, activate the private sector, encourage investment, and support investors, in order to achieve sustainable development.” 

Al-Atwani stressed, according to the statement, that “approving the tripartite budget gave the government great comfort in terms of contracting, implementing projects, and attracting foreign companies to implement major projects,” pointing out that “the Finance Committee, through monitoring spending and financing and implementing plans and programs, seeks integration between the legislative and executive authorities.” Because we want this government to succeed, especially since it is taking steady steps towards achieving the aspirations of the people.” 

Al-Atwani pointed out that “the National Service Government is serious about moving the wheel of the economy and development and has ambitious programs to advance various productive sectors and maximize non-oil revenues, to leave the state of excessive dependence on oil in forming the general budget.” 

Al-Atwani concluded his participation by calling on the International Monetary Fund and the World Bank to provide the necessary support. For Iraq in the areas of exchanging experiences and training national cadres, to develop our banking system, especially as we are moving towards activating the digital financial dealing system and automating taxes, customs and other service sectors that generate financial revenues for the state.  LINK

Wow for my understanding this is international open bank all over the world BY NADER FROM MID EAST