Question: "Is the government thinking of revaluing the dinar and readjusting the value of the dinar due to the current circumstances in the market or do you see it to stay the same?"
Al-Sudani's answer: "This policy is dictated by the central bank and the government abide by what the bank decides. I believe we are in the best status we could be in and we have actually had an assessment which has given much trust, higher trust at a higher level from different global parties...This is going to raise the level or value of the Iraqi dinar. There is policy that is consistent policy that the central bank is using...
"
MILITIA MAN: Deletion of the zeros project, is that what they're talking about? If you're going to raise the value of the currency you're going to have to do something to it and that's the exchange rate. You don't just LOP three zeros off a currency and say, 'Snip! Go use this'. It doesn't work that way.
They have to raise the value...We know their reserves are $110 to $112 billion, they have gold, they have all the new electronic systems, taxes and tariffs...tourism, agriculture, liquid gas, all that stuff added into this is going to benefit them. Basically what is he saying? They're going to raise the level of the value of the Iraqi dinar. That's really powerful...
FRANK26:"WS TOLD ME... SUDANI MEETS WITH HIS BUSINESSMEN!!!"............F26
Al-Sudani: Iraq is witnessing a new reality today in the private sector
4/19/2024
Prime Minister Muhammad Shiaa Al-Sudani met today, Friday, with an elite group of Iraqi businessmen residing in the American state of Michigan, as part of his official visit to the United States.
The businessmen reviewed their companies' specializations and businesses, and expressed their willingness to be in Iraq to pursue and participate in investment opportunities available in various sectors and contribute to building their country.
Al-Sudani stressed, during the meeting, that Iraq is witnessing a new reality today with regard to the private sector, explaining a series of practical steps taken by the government and the facilities it granted to the private sector. He also pointed out what has been accomplished at the level of financial and banking reform, which has increased the percentage of contracts that comply with the standards. The global rate reached 80% according to reports of international institutions.
He touched on the government's important projects in the field of the pharmaceutical industry and the housing sector, pointing to the start of establishing new residential cities, which include the construction of tens of thousands of housing units, the job opportunities they provide for young people, and the revitalization of the construction sector and dozens of related professions.
The Prime Minister urged Iraqi businessmen to seize the available investment opportunities and bring production lines to laboratories and factories in various specializations,noting that Iraq’s budget for the three years included, for the first time, providing sovereign guarantees to the private sector,in addition to establishing the Iraq Fund for Development, which will work with this. The sector is implementing vital and important projects, which contribute to moving the wheel of the economy and implementing the government’s vision for sustainable development and a strong and prosperous Iraq.
FRANK26:"THE GOV STAYED BEHIND TO DEAL WITH THE MONETARY REFORM PROOF".......F26
The Governor of the Central Bank of Iraq speaks to Al-Hurra about restructuring the country's banks
Alhurra - Washington
April 20, 2024
The Governor of the Central Bank of Iraq, Ali Al-Alaq, revealed in an interview with Al-Hurra TV that Iraq has begun the process of “restructuring Iraqi banks” and has a broad plan to “reform the banks” by attracting strategic partners to modernize the Iraqi government banking system.
Al-Alaq confirmed that “investigations are continuing regarding the work of the violating Iraqi banks,” noting the formation of a committee with the US Treasury Department and the Federal Reserve “to correct the violations of the sanctioned banks.”
The full interview will be broadcast as part of the Iraqi program, on the Al-Hurra Iraq channel, Sunday, at 11:00 pm Baghdad time. (THE GOV OF THE CBI IS GOING TO MAKE AN ANNOUNCEMENT TO THE IRAQI CITIZENS -F26)
Al-Alaq pointed out that “an American company has been assigned to audit the work of these banks,” and its results will be presented to the Iraqi government and the American side to take a decision on it.
In late 2022, the Iraqi banking sector adopted the SWIFT electronic transfer system with the aim of providing better control over the use of the dollar, ensuring compliance with US sanctions on Tehran, and also in order to limit the prosperity of the informal economy.
The financial standards that were adopted encouraged the emergence of a parallel market for currencies, attracting those seeking to obtain the dollar outside official channels.
The governor expressed his support for fair competition between private and government banks to diversify revenue sources, but he explained that citizens prefer to deal with government banks.
Al-Alaq stated that the Iraqi government delegation visiting Washington agreed to discuss the file of Iraqi banks punished by the US Treasury and deprived of dealing in dollars in Iraq, adding that the visit indicates his country’s connection to the United States financially and economically.
To ensure compliance with American standards regarding money laundering and sanctions on Iran, about 20 Iraqi banks were prevented from making dollar transfers, but they still operate in Iraq using the dinar.
The banking sector in Iraq has adopted an electronic platform, the aim of which is to monitor the uses of the dollar and tighten control over a thriving informal economy, while tax evasion attracts some importers and traders.
Al-Alaq spoke about Iraqi funds in the Federal Reserve, pointing out that Iraq invests its money from inside and outside the United States, noting that Baghdad’s financial relationship with Washington is “close” and characterized by “continuous coordination and understanding,” stressing Iraq’s openness and compliance with the rules of financial institutions in the world.
The governor stressed that the Central Bank closely monitors suspicious financial fraud operations and always warns against them, and pointed out that there are precise steps to prevent citizens from falling victim to financial fraud.
Regarding the government's economic priority, Al-Alaq said that reducing foreign debt is the first goal of his government, as it was able to reduce debt to reach 9 billion dollars. While the internal debt constitutes a value of 70 trillion Iraqi dinars, he also explained that the central bank was able to reduce the inflation rate from 7.5 percent to about 3.8 percent despite what he described as challenges.
Al-Alaq stressed that "the Iraqi government is focusing on the economy, services and infrastructure," stressing the need for Iraq to arrange its financial policies in a manner consistent with international financial standards to diversify sources of income.
The Central Bank of Iraq announced in a statement that it had decided, as of January, “to limit all commercial and other transactions to the Iraqi dinar instead of the dollar” inside the country.
While the dollar can be naturally withdrawn in cash from previously existing deposits in hard currency, starting in 2024, it will become necessary to withdraw every money transfer from abroad in dinars exclusively and according to the official exchange rate.
Al-Allaq heads the Iraqi delegation participating in the 2024 spring meetings of the International Monetary Fund and the World Bank Group, which will be held in Washington, D.C., until April 20.
Regarding Iraq's relationship with the World Bank and the International Monetary Fund, the governor confirmed that it is strong - as Iraq needs their efforts, coordination and consultation, revealing that Iraq is addressing the International Monetary Fund for the purpose of cooperation and providing technical support, indicating that the Fund welcomes this cooperation.
He said that a delegation from the International Monetary Fund will visit Iraq soon to start this program.
Article: "Al-Sudani: Iraq is witnessing a new reality today in the private sector"
MOU’s and Sovereign Guarantees…impossible without sovereign currency that has purchasing power.
We’ve learned Iraq's contracts have recently been adjusted so that payment is made in dinar...If so, contracts in the billions...paid in dinar, would require assurances that the exchange rate would not move in a negative direction...It may even go so far as to give an exchange rate. If the rate were to move negatively, the foreign contractors would lose out because the value of the agreed upon amount in reflection to their home currency would also be less. That’s a no go...Sounds freakin fantastic.
Prime Minister Mohamed Shiaa Al-Sudani announced on Saturday that a satisfactory agreement was reached with the US side on banks deprived of dealing in the dollar currency.
Al-Sudani said in a press conference, seen by “Economy News”, that “the Iraqi delegation held important meetings with the US Treasury, with which the Iraqi government and the Central Bank are working, to reform the financial banking sector in Iraq and address the observations that have occurred in this sector in the time of previous governments.”
He added that “the delegation reached satisfactory solutions, addressing the situation of banks deprived of dealing in dollars through the formation of committees to audit the observations indicated on these banks,” noting that “if the observations are material, the deprivation procedures continue, even if the observations can be processed and reforms can be carried out within these banks under the supervision of the Central Bank, to be addressed in dollars to be dealt with in the future.”
Al-Sudani stressed that “the impression of the US Treasury was positive on the performance of Iraqi financial institutions, whether it is the central bank or the government banking sector and was at the peak of optimism, given the reforms achieved during a short period of the life of this government.”
He pointed out that “80% of financial transactions and transfers are carried out today in accordance with international standards, with the US Treasury certificate,” noting that “the government will continue to reform the financial and banking sector, which is a basic gateway to create economic development and real reforms.”
