Article "Statement from Press Secretary Karine Jean-Pierre on the Visit of Prime Minister Mohammed Shia’a Al-Sudani of Iraq to the White House" Quote "On April 15, President Joe Biden will welcome Prime Minister Mohammed Shia’a Al-Sudani of Iraq to the White House to coordinate on common priorities and reinforce the strong bilateral partnership between the United States and Iraq."
Article: "Al-Sudani intends to visit Washington to lift the ban on banks prohibited from dealing in dollars"
Quote: "The head of the Iraqi Securities Commission, Faisal Al-Haimas, announced that three Iraqi banks were sanctioned by the US Treasury, and 25 banks were banned from dealing in dollars ;."
Article: "The Central Bank announces an understanding with the US Treasury to reconsider sanctions and indicates 'illegal trade' "
Iraq is yet to amend budget to resume Kurdistan’s oil flow: Oil Minister to Bloomberg
Oil Priest Hayyan Abdul Ghani said that the Iraqi government is as yet concentrating on a proposed correction to the bureaucratic spending plan that would empower Baghdad to pay worldwide oil organizations working in the Kurdistan locale.
Producers in the semi-autonomous region would be able to resume production as a result of the change, eventually exporting through the Turkish port of Ceyhan. In March of last year, Turkey shut down the pipeline that carried crude from Kurdistan. This cost the governments and businesses involved billions of dollars in lost revenue.
A critical obstacle to restarting streams is the creation cost of Kurdish oil. State leader Mohammed Shia Al-Sudani in December put that expense at $21 a barrel, contrasted and only $8 in different locales of Iraq.
The Minister was quoted by Bloomberg as saying, “We seek to accelerate the settlement of the cost issue and resume exports as soon as possible.” The Oil Service desires to audit and correct agreements endorsed between the Kurdistan Provincial Government and the worldwide organizations, he said.
After an arbitration court ordered Turkiye to compensate Iraq for transporting oil through the link without Baghdad’s approval, Turkiye shut down the pipeline. Ankara, which asserted the line was closed for fixes, said in October it was prepared for activities and it depended on Iraq to continue streams.Turkish President Recep Tayyip Erdogan is because of visit Baghdad one month from now, which might assist with settling other staying focuses, including the fine. Abdul Ghani told Bloomberg that Iraq is quick to restart sends out through Ceyhan and to keep up areas of strength for with attaches with Turkiye.
Deleting the zeros from the notes, how are you going to do that? You're going to re-denominate the currency ...The way to re-denominate is to add value. If you don't add any value, re -
denomination means those that hold currency don't gain anything. I don't think the United States Treasury...Great Britain...Canada...Australia...Coalition forces ...South Koreans came into Iraq to get completely 100% hosed with anything like that...
The Project to Delete The Zeros is from the exchange rate. Then, once you delete the zeros from the exchange rate you have a 1 to 1 situation - Not value wise but it's $1 to 1 dinar. Then apply a real effective exchange rate.
Article: "A specialist points out the reasons for the noticeable decline of the dollar in Iraq: It will reach the official price" We have been told inflation has been contained to about 3.7% and the Iraqi dinar has ample cover with over 15 months worth of imports over the standard or more typical 3 months. They have increased gold by about 43 tonnes. They have a new ASYCUDA system for oil and non-oil revenue streams. A real effective exchange rate will be an additional tool to curb the illegal parallel market and quickly imo.
If Al-Sudani says, the dinar hold on to it, it's going too be stronger than the dollar...$0.76 is not stronger than the dollar. Add the real effective exchange rate and you can easily get over a dollar...
Oil is anywhere from $88 to $85 right now. Add in the tax revenues and customs duties and fees at the borders, the tourism you got to see the exchange rate of the Iraqi dinar is not going to be at $0.76. They're going to have to add that real effective exchange rate to it and that's probably...exactly why they haven't exposed it just yet. It's a sensitive issue.
They need to keep it close to the chest... They can't go out and tell everyone on the street, 'Hey you know next week your exchange rate is going to be X.' It doesn't work that way...Eventually they will expose it...
IMF advocates for central bank autonomy in the face of rate-cut pressures during election years
Kristalina Georgieva, managing director of the International Monetary Fund (IMF), issued a warning on Thursday that central banks are under increasing political pressure to lower interest rates during a significant election year. Be that as it may, she underlined the significance of policymakers keeping up with their freedom regardless of these difficulties.
Georgieva said that national investors today face many difficulties to their freedom, thusly “calls are developing for loan fee cuts, regardless of whether untimely, and are probably going to increase as a portion of the total populace casts a ballot this year. There is a growing possibility of political interference in bank decision-making and personnel appointments. State run administrations and national investors should oppose these tensions.”
The IMF’s managing director used examples of what independent central banks have accomplished in recent years to illustrate the significance of this issue.
“National brokers guided really through the pandemic, releasing forceful money related facilitating that forestalled a worldwide monetary implosion and speed recuperation.”
“As the center moved to reestablishing cost strength, national investors suitably fixed financial arrangement — though on various timetables. Even as price increases reached multi-decade highs, their response contributed to stabilizing inflation expectations in the majority of nations. Developing business sectors were pioneers in fixing early and strongly, upgrading their believability.” She called attention to.
As per Georgieva, the national bank activities have brought expansion down to significantly more sensible levels and decreased the dangers of a hard landing. ” Although the battle isn’t over yet, many central banks’ independence and credibility over the past few decades have largely contributed to their success thus far.
She made sense of that the new outcome in cutting down expansion differentiates strongly to the monetary precariousness that won during the high expansion time of the 1970s.
“At the time, there were no clear mandates for central banks to prioritize price stability or laws protecting their autonomy. Therefore, they were frequently forced by lawmakers to bring down loan fees when expansion was high.”
“Everybody was wounded by this high expansion, win and fail time — particularly individuals living on fixed earnings who saw their genuine livelihoods and reserve funds dissolved. Outcome in lessening expansion possibly came during the 1980s when national banks were given political help to battle expansion forcefully.” Georgieva added.
Georgieva also said that a study by the IMF that looked at dozens of central banks from 2007 to 2021 found that those with high independence scores were better at controlling people’s expectations of inflation, which helps keep inflation low.
“Autonomy is basic, and has become more dominating among nations at each pay level.”
Another IMF concentrate on following 17 Latin American national banks throughout recent years analyzes dynamic autonomy, clearness of order, and whether they could be compelled to loan to the public authority. It additionally observed that more prominent freedom was related with much better expansion results.
Georgieva stressed the significance of solid administration to maintain national bank freedom, featuring the job of other government branches in supporting national banks’ goals through monetary judiciousness.
Georgieva stated, “Implementing responsible fiscal policies that maintain sustainable debt levels helps mitigate the risk of ‘fiscal dominance,” in which the central bank is compelled to offer cheap financing to the government, resulting in inflationary pressures.”
Also, she referenced that the IMF is prepared to offer specialized help to part nations planning to improve their financial approach structures.
Georgieva went on to say, “We collaborate with members to establish and achieve measures to uphold independence as a fundamental aspect in certain Fund-supported financial programs.”