ERBIL, Kurdistan Region - "Ali Mohsen al-Alaq, Governor of the Central Bank of Iraq (CBI), said on Thursday that the US has agreed to review recent sanctions on Iraqi banks, adding that in the future, similar punitive measures will be taken in consultation with Baghdad."
Do you see what is happening?
Iraq is beginning to assume their own Sovereignty going forward. These US sanctions have kept Iraq from moving forward with their economic reforms on the International level, and now, we are witnessing final reviews of Iraq's sanctioned.
Once these are released, Iraq will be able to move forward with many of the rest of their economic reforms to connect with other countries on the International stage in trade and development.
The ability for Iraq to move freely within their own banking system will give Iraq currency ranges to work from in determining exchange rates between other countries.
The ability to trade in Iraqi Dinars instead of the dollar will give them purchasing power and control going forward.
Ismaik: The solution to the dollar crisis in Iraq is “very simple”
The economic expert, Hassan Ismaik, confirmed that the solution to the crisis of the high exchange rates of the US dollar against the Iraqi dinar is very simple.
Ismaik said in an interview with Al-Maalouma, “The foreign cash reserves that the Central Bank of Iraq owns are what preserve the value of the Iraqi currency, and because Iraq does not receive money except government money, and the private sector smuggles its money abroad.”
He added, “The Iraqi citizen does not trust the banking system in his country,” which means that there is a defect that must be fixed.
Ismaik believes that "the solution is by placing the money obtained from the sale of crude oil, the main source of the Iraqi economy, as deposits in the central bank and attracting the hoarded funds." In the homes of Iraqis and also attracting the money of investors abroad, the private sector and investment companies.
Ismaik continued, “The success of the solution is linked to Iraq’s development of the banking sector systems and it being an open and not closed system. Reinforcing his vision with leading regional models such as the Arab Gulf countries.”
He pointed out that “there is enormous money coming from the people and the private sector, as well as investment companies.” He added that “Iraq only needs development in the banking sector system, clarity in this system and not being closed, because when we say it is forbidden to transfer dollars, and it is forbidden to buy with dollars, and it is forbidden to exchange for dollars, your value will immediately lose and decline, and the currency will fall.”
Ismaik stressed that “the dollar crisis ends when there is a solid banking system, as there is huge amounts of money with the people in their homes, and if this money goes to... Banks will change the equation, and the money of Iraq is Abroad will range, at a minimum, between 200-300 billion in deposits in banks.”
Since the end of the year 2022, Iraq has been facing a crisis in the exchange rate of the dinar against the dollar, after the United States took a number of measures to restrict the use of... The dollar is in Iraq and its possession is limited to certain parties, as the exchange rate is witnessing fluctuations and instability despite the measures taken by the Iraqi government and the Central Bank to control the exchange rate.
The dollar crisis has been accompanied by variation in the methods of its solutions and treatment, especially among those who see it as a crisis that expresses structural imbalances in the system. Iraqi monetary policy, and among those who believe that resolving it requires only responding to it in an intelligent manner. link
Private Banking vs. Wealth Management: What's the Difference?
Wealth management is a broader category that involves dealing with the optimization of a client's portfolio, taking into account their aversion to, or comfort with, risk, and investing financial assets according to their plans and goals. Wealth management can be practiced on a portfolio of any size, though, as the name implies, it is geared toward the well-off.
Private banking, by comparison, typically refers to an envelope solution for high-net-worth individuals (HNWIs) wherein a public or private financial institution employs staff members to offer high-net-worth clients personalized care and management of their finances
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Iraq Is The Axis And Meeting Point Of East And West
The first 03/17/2024 Baghdad: Huda Al-Azzawi Experts and specialists in financial and economic affairs called for the implementation of a new strategy based on a different, modern economic philosophy pursued by developed countries in the process of
diversifying and maximizing state revenues,
attracting foreign investments and
achieving development, by
restoring Iraq’s historical pioneering role as an axis, fulcrum and meeting point between East and West, and a vital corridor for trade. Global, experts also called for increasing intra-trade with neighboring countries as it is one of the pillars of the successful Iraqi economic strategy.
The Prime Minister’s Advisor for Financial and Economic Affairs, Dr. Mazhar Muhammad Salih, stated in an interview with “Al-Sabah” that “Iraq is the point of communication between the European continent and the Gulf and Asian markets.”
He pointed out that "before the country entered into trade restrictions more than fifty years ago, which included wars, conflicts, and a decline in infrastructure, Iraq was one of the best vital economic areas in the world that charts the international trade corridors that travel through it by land from the heart of Europe to neighboring markets and Asia by sea." Across the Gulf and vice versa.
He explained, "The Iraqi commercial corridors represent an ideal commercial attraction through which transit fees are collected, in addition to marketing technical and logistical services to trucks passing through Iraq's roads and ports."
Saleh added, "Maximizing intra-trade through (transit) trade will undoubtedly achieve continuous financial returns and provide an added business cycle that increases growth opportunities in the gross domestic product, and in linking Iraq to the global trading system as a major economic player in the region and the world."
For his part, political analyst Omar Al-Nasser pointed out, in an interview with Al-Sabah, that
“diversification of economic resources is an important philosophy that the countries of the developed world have begun to adopt, and
the experience of the European Union is the best evidence of that, especially those that suffer from weak possession of natural resources.” He stated that
“sustainable development and economic prosperity begin from the gate of
reducing spending,
maximizing revenues, and
multiplying sources of income,” and explained that
“with a realistic look at the state of development, intra-Arab trade rates are still relatively modest and reach only 13.8%, and
they still need more efforts to overcome Unfavorable procedures and effects of customs measures and standards that account for more than 50% of Arab trade exchange, other than the Asian partner, which constitutes 54% of Arab countries’ exports.”
Al-Nasser stressed that "Iraq must have new ways in this field, and think tanks and research must be sought and their role in providing advice and giving a high dose of support must be sought by drawing up model policies that support this joint with regional neighboring countries at the very least, in order to
strengthen Investments,
creating job opportunities, and
raising trade cooperation and international relations to high levels.”
He added, "Iraq's invitation and adoption of a regional conference to stimulate intra-trade and remove the obstacles standing in the way of this joint will increase its standing among the countries of the region and create a real desire to establish clear-cut economic partnerships that will remove the spark of political differences and transform the Middle East region into a real international center of attraction and a mine for energy production." humanity, economy, and the kiss of the entire world.”
He explained that "Iraq's move to sponsor research, which has a major role in developing different strategies in the field of economic growth and prosperity, will contribute to
raising the profile of sustainable development,
strengthening international relations, and
raising the level of opportunities for cooperation and trade exchange between the countries of the region." https://alsabaah.iq/93584-.html
..So, what else is in the news of importance to our investment?
A member of the House of Representatives, Mohammed Al-Sayhoud, revealed on Thursday a government move to lift the US sanctions imposed on Iraqi banks, while stressing that the work of the Iraqi committees is continuing with the file of removing the US combat forces from the country. Why is this important news?
I find it quirky how they tie these two issues into one article (lifting sanction on the banks with the removing of US combat forces). Are they trying to tell us something? Could it be that Iraq is pressuring the U.S. to relieve these sanctions
and in return let them have a longer military combat presence in Iraq? Sounds like it to me. It’s about time Iraq did some real negotiating for their own benefit. Will they, can they, also negotiate the release of the reinstatement of the dinar as part of a deal to allow the combat troops to stay in Iraq a bit longer?
We know that Ali Alaq is not letting the proverbial “cat out of the bag” when he talks to the Finance Committee either. The CBI must be careful about speculators in the dinar, and he has told us this too already many times.
Remember that the sanctions put on the Iraqi banks, by the CBI, at the request of the US Treasury only prohibit the sale of the dollar by these banks. They can still do business with the dinar and other foreign currencies and are making money anyhow. However, through the sanctions the CBI and Treasury are trying to reverse the reliance of the banks to make money solely off the point spread of the buying the dollar beyond the CBI official rates. Get it? We read many articles on this already too. They must convert/reverse the bank revenues to other sources to get out of the currency auction business and into real banking practices, like all other banks in the world.
So, to comply and take these sanctions off these banks they will have to comply and deal in dollars ONLY at the official rate. They will also have to prove to the CBI that they are engaging in other forms to generate revenues to stay in business. Remember that banks are also a business and, like any other business, must also find ways to make a profit and generate revenues. This is what the CBI and the U.S. wants as part of the financial and banking reforms. They don’t want the banks to crash simply because they are stopping the currency auctions. Get it?...
