The main reason why they're going to float the Iraqi dinar is to build confidence in the country of Iraq. A float brings in these investor that Sudani has been signing left and right.
These investors will watch the float and as the float increases they will say to themselves, 'Hey, maybe I should invest in this currency.' ...
The float is to build confidence in the country and in the currency of Iraq.
[Former Iraqi Bank associate and Iraqi bank owner #1 update]
He just left Bagdad...he went to Hong Kong. What for? He's got banks he's representing the CBI with, out there. These satellite banks are everywhere. They want their 3-zeros back. They don't want them to go into anybody's federal reserves.
Under the patronage of Prime Minister Muhammad Shiaa al-Sudani, today, Monday, a signing ceremony of a memorandum of cooperation took place between the Trade Bank of Iraq (TBI) and the Japan International Cooperation Corporation (JICA), in the presence of the Deputy Prime Minister, Minister of Planning Muhammad Tamim, and the technical advisor to the Prime Minister. Muhammad Sahib Al Darraji, Chairman of the Diwani Order Committee for Sovereign Guarantees.
The Prime Minister’s media office stated, in a statement, a copy of which {Al-Furat News} received, that: “The memorandum of cooperation comes within the framework of the government’s initiative to grant sovereign guarantees to the private sector, and also within the work of the special committee for sovereign guarantees covered by the General Budget Law for the year 2023, and Cabinet Resolution No. (23404) for the year 2023.”
He added, “The memorandum includes the Japanese Foundation financing projects for the Iraqi private sector, to establish factories inside Iraq, with the aim of localizing the national industry in the field of pharmaceutical, construction, chemical, petrochemical, energy, agricultural and food industries; in implementation of what was included in the government program, in supporting and localizing strategic industries.” And based on the directives of the Prime Minister in this regard.”
The statement added, “In light of the memorandum, an initial amount of $200 million will be provided to finance important projects that provide a service to the Iraqi citizen and economy, and which will contribute to reducing foreign imports, as well as reducing hard currency transfers abroad.”
The memorandum also aims to raise the efficiency of Iraqi companies to the global level, through openness to international banks for financing, and controlling quality by concluding agreements with major industrial countries.”
Article: "Al-Rayes: The path of development is the first gateway to sustainable economic advancement" If and when the Iraqi dinar begins to float supply and demand based on Iraq's economic success will take over. Only with the success and growth of Iraq's own economy can the dinar go up in value. How fast and the pace are determined by those factors.
Article: "The most difficult option.. Warnings of the danger of floating the Iraqi dinar without achieving an important condition” As I have mentioned numerous times, a float is coming for the Iraqi dinar. The question is.. when will they have sufficient diversification of the economy to support such an event?
A country's currency is not some random act. An exchange rate is based on many factors including: reserves, GDP, economic growth etc. Iraq has a long ways to go and must pass laws to encourage investment. Only with the success of Iraq's economy can the dinar rise in value.
[aka Kaperoni]
Article: "Advisor to the Association of Banks: The Central Bank is following a consistent approach to achieving banking reform"
Quote: "the management of the Central Bank of Iraq plans to gradually cancel the window for selling foreign currency during the year 2024, until it leaves it completely.
" ...this is huge news... Iraq cannot end the auctions unless they have an alternative to the auctions... which means they plan to float the dinar by the end of the year...floating the dinar will give them a new mechanism to maintain the dinar, the CBI will buy and sell blocks of dinar like other central banks do to maintain their currency...
They will also have to use dinar to pay for goods and services which will make the dinar internationally traded...they want the banks and Iraq to establish relationships around the world with International standards and full compliance which means that means IMF Article XIV...This seems pretty clear and excellent news. We very well see that Iraqi dinar float on the global market at the end of this year or early next year...I think it's very promising...it definitely is very good news.
Including Iraq... Five Countries Possess More Than 1,000 Tons Of Gold
Economical 05/05/2024 The World Gold Council announced yesterday, Saturday, that Iraq and four Arab countries possess more than a thousand tons of global gold reserves.
The Council said in its latest schedule for the month of May that “the first five countries (Saudi Arabia, Lebanon, Algeria, Libya and Iraq) possess 1,72,6 thousand tons.”
He added, "Iraq maintained its ranking of 30th globally out of the 100 countries listed in the table with the largest gold reserves, as it has not purchased gold since May last year, bringing its gold possessions to 142.6 tons, which represents 9.3% of the rest of its other reserves."
The Council also pointed out that “the United States of America sits on the throne of the rest of the countries with the largest possession of gold in the world at 8,133.5 thousand tons, followed by Germany with 3,352.6 thousand tons, then Italy came with 2,451.8 thousand tons, while Suriname came at the bottom with 1.2 thousand tons.” “.
It is noteworthy that the World Gold Council is based in the United Kingdom, has extensive experience and deep knowledge of the factors causing market change, and its members consist of the largest and most advanced gold mining companies in the world.
Most Arab countries maintained the size of their gold reserves by the end of the first quarter of 2024, at the same levels recorded at the end of last year, with the exception of Oman and Qatar, which recorded net purchases of 4.5 tons and 1.5 tons, respectively.
Successive increases in gold prices led the value of most countries' reserves to record new levels, before the recent declines during the second half of April led to the value of those reserves returning to what they were. https://alsabaah.iq/96029-.html
Non-oil revenues...Iraq has the largest sulfur deposit in the world. They can tap into that. It's going to be part of their non-oil revenues. The amount of natural resources Iraq has is off the charts. Anything that suggests they can't afford to do what they're going to do and go to a market economy I think is highly mistaken.
Article: "Economist Muhammad Hashem Helou confirmed that the central bank cannot float the dinar exchange rate
."
We've seen a few articles over the last week openly talking about the types of regiments that are exchange rate oriented, whether it's a fixed float or pegged etc. Saleh has spoken about it, he says it [floating] is dangerous ...the environment would not be good so it wouldn't be the best choice... Circumstances for the country of Iraq which is still primarily a rentier, which means oil based, it's best to have a fixed exchange rate...
