"EDDIE TOLD ME, THE WORLD BANK IS ON IRAQIYA TV NEWS DISCUSSING THE CHANGES OF THE IQD EXCHANGE RATE!!!" BY FRANK26, 31 MAY

 KTFA

FRANK26:"EDDIE TOLD ME, THE WORLD BANK IS ON IRAQIYA TV NEWS DISCUSSING THE CHANGES OF THE IQD EXCHANGE RATE!!!"............F26

Professor Frank Gunter launches a new white paper on de dollarisation of Iraqi economy.
 

29th May 2024

‘Two Cheers for Iraq: The Dinar – Dollar Exchange Rate Challenges’

 

Professor Frank Gunter publishes a new paper commissioned as part of a series by IBBC’s advisory council on the challenges of de-dollarisation for Iraq. The Advisory Council members and IBBC members have actively contributed to the paper in the past 4 months. It will be presented online on the 18th June in a webinar and in person at the Spring Conference on 2nd July. The Arabic translation will be published soon.

 

Professor Gunter provides an analysis of the drivers of impact on the dinar exchange rate and examines how best to deal with the parallel market of dinars to dollars. He outlines the practical policy initiatives that should reduce the gap between the official and parallel exchange rates in the medium-term. ----  In particular he lauds the Government of Iraq on its commitment to tackle corruption and to modernise the banking system in one fell swoop but warns of the pressure on the dinar exchange rate as budgets are overstretched and the new banking recipients (state banks) receive the liquidity to enable the economy to perform.
He writes ‘All three of these forces – the anti-corruption effort, the banking liberalization, and the lavish 2023-2025 budget – will create challenges for the management of the dinar exchange rate. One could argue that over the last two decades the Government of Iraq (GoI) had little control over its exchange rate; that exchange rate policy was determined by other sectors of the political economy in Iraq. But even if this is true, the level of the exchange rate and changes in that level are believed by many Iraqis and foreigners as providing valuable insight into the quality of economic management in Iraq. This importance is exemplified by the current efforts to de-dollarize the Iraqi economy while there is excess demand for dollars. This excess demand is shown by a parallel exchange rate of roughly 1500 dinars per dollar compared to the official exchange rate of 1310 dinars per dollar.
An important cause of this exchange rate gap is that the GoI, with the strong encouragement of the U.S. Federal Reserve, is attempting to reduce the use of the U.S. dollar in both Iraq’s internal economy and its external transactions. Since 2003, the U.S. dollar has facilitated economic growth in Iraq by providing a widely accepted medium of exchange for purchases as well as a reliable store of value for savings. In the long run, whether de-dollarization will have a significant adverse impact on the Iraq economy will depend on how rapidly the GoI can increase both the efficiency of alternative mediums of exchange and the perceived security of alternative stores of value.’

The report is available here to download.

 

https://iraqbritainbusiness.or.....qi-economy

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trade and investment from the UK and International companies, 

for the benefit of the Republic of Iraq and its members. 

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to private companies, to benefit business, industry and 

the people of Iraq.

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"RV UPDATE" BY CLARE, 31 MAY

 Clare 

 Article: "Economist: The budget is not affected by the dollar exchange rates... and explains why"  Quote: "...because Iraq will receive the dollar from oil exports, and on the contrary, revenues increase with the increase in dollar prices globally...market obligations are dealt with in the Iraqi dinar, and there is no dealing in the dollar, and the budget is built primarily on the Iraqi dinar and not on the dollar, so the budget is never affected by the dollar exchange rates.”

  Article "The Central Bank of Iraq "denies" issuing a currency in the category of (100) thousand  dinars"  Quote "The Central Bank of Iraq denies issuing a new currency in the denomination of (100) thousand dinars, indicating  that the image of the new currency circulated on social networking sites is a “fake” image bearing the image of the late Iraqi  architect Zaha Hadid"  

Article:  "In light of the Middle East conflict, the World Bank expects oil prices to exceed $100"  Quote:  "The bank said in a report published today that a severe price disruption could lead to oil prices exceeding $100 per barrel, which would increase inflation in 2024 by about one percentage point."

Article: "Notice on the Continuation of the National Emergency With Respect to the Stabilization of Iraq"  

Quote:  "The obstacles to the orderly reconstruction of Iraq, the restoration and maintenance of peace and security in the country, and the development of political, administrative, and economic institutions in Iraq continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States...I am continuing for 1 year the national emergency with respect to the stabilization of Iraq declared in Executive Order 13303."

Article:  "The Central Bank begins the second phase of its banking reform strategy" 

 Quote: "what will be achieved from the second phase of the banking reform strategy will be reflected in the stability of the exchange rate and the recovery of the Iraqi dinar inevitably"

https://dinarevaluation.blogspot.com/2024/05/rv-update-by-clare-23-may.html

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Iraqi dinar ✅ United State & IMF Decided Active Rate Change WOW US Treas...

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"BARZANI SHOULDER TO SHOULDER WITH SUDANI... VAMONOS!!!" BY FRANK26, 31 MAY

 KTFA 

FRANK26: "BARZANI SHOULDER TO SHOULDER WITH SUDANI... VAMONOS!!!".....F26

Kurdistan Natural Resources confirms: We are ready to visit Baghdad again to resume exporting the region’s oil

5/29/2023

The Ministry of Natural Resources in the Kurdistan Regional Government confirmed, this evening, Wednesday, its readiness to visit the capital, Baghdad, again to solve the problem of resuming the export of the region’s oil, in cooperation with the Federal Ministry of Oil.

 

The ministry said in a statement received by Shafaq News Agency, “We supported from the beginning resolving the issue as quickly as possible and exporting oil (Kurdistan Region oil) through international ports. For this purpose, we visited Baghdad several times, and in January of this year we met with the head of the committee.” Finance and the Federal Government Committee consisting of the Ministries of Oil, Planning and Finance, and a report was signed in this regard.”----

 

She added, "The committee last met on the 19th and 20th of this month in the presence of representatives of the Ministry of Natural Resources. We are now awaiting the results of the committee meeting, and are ready to visit Baghdad next week to resolve this issue."

 

Yesterday, Tuesday, the Federal Ministry of Oil, the Ministry of Natural Resources and companies operating in the Kurdistan Region called for an “emergency” meeting in the capital, Baghdad, for the purpose of accelerating the restoration of production in the region’s fields.

 

Federal Oil said in a statement received by Shafaq News Agency, that it is keen to restore production in the fields located in the Kurdistan Region and resume exports through the northern system in a way that provides the national interest.

 

The Ministry called on the Ministry of Natural Resources in the region and the international companies operating the fields located in the region to hold a meeting in Baghdad as soon as possible for the purpose of discussing and discussing the issue and reaching an agreement to accelerate the restart of production and resume the export of oil produced through the Turkish port of Ceyhan and according to the quantities specified in the budget law.

LINK

 

"RV UPDATE" BY PIMPY, 31 MAY

 Pimpy 

 Article: "Economist:  The budget is not affected but dollar exchange rates.  And explain the reason"  The person is saying the budget is never affected by the dollar exchange rate because the budget is based on Iraqi dinars.

Article: Central Bank of Iraq quote "There are no current plans to print new currency." 

 What that tells me is people don't have to worry about a lop or redenomination because in order for you to have a redenomination or a lop you have to create new currencies.  It also tells me they're not creating the lower denominations which means they're going to stick with the currency they currently have.   Some people see this as the glass half full.  Some people look at it as the glass is half empty.

 I agree it's going to happen.  I don't have doubt about that.  I'm just keeping an eye on whether or not they want to delete the zeros.  If they go to a free floating market hopefully there won't be...deleting the zeros and we'll see the exchange rate go up pretty quick before they have time to respond...

Iraq was already a member of the World Trade Organization.  They are going through the ascension process for a second time.  That's because all the rules, regulations, understandings and business practices...changed once the fall of Saddam Hussein.  Now we have to make sure all their practices, rules and regulations regarding trade line up once again with the World Trade Organization.  Iraq has been a member of the World Trade Organization since 2004.  This is their second time throughout the ascension process...

There's this misconception that the World Bank, IMF and the BIS get to tell countries what to do.  They don't...They facilitate.  They make recommendations but they don't control a country's bank..---- .

Another budget is getting ready to come and go and there is no talk of the rate change.  Isn't that what they told you?  It would be in the new budget because there was no way for them to do large projects, there was no way for them to move forward without an exchange rate change...Why so secret now?  Is this one of those things they're trying to keep from the people?  

They didn't keep it from the people last time [they increased the value] and there's no mention of it this time...Keep your fingers crossed, it hasn't passed yet so maybe they'll change it between now and the time they pass it...You guys know what I think.

 Floating the currency means the value is determined by the market, so if people for whatever reason want to start investing in the Iraqi dinar and the start buying up the Iraqi dinar that means the demand for it is there, think supply and demand. 

 Since they have a liquidity issue, there's not going to have a lot of Iraqi dinar out there and if that's the case then they don't have the supply to feed the demand...But we'll be more than happy to sell our Iraqi dinar back to them if they get the exchange rate up around a quarter or more. I know I would.

https://dinarevaluation.blogspot.com/2024/05/rv-update-by-pimpy-24-may.html

🔥 Iraqi Dinar 🔥Become Dinar 1.32 to the Dollar🔥 News Guru Intel Value Up...

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"MONETARY REFORM EDUCATIONS... EDUCATES!!!" BY FRANK26, 31 MAY

KTFA

FRANK26: "MONETARY REFORM EDUCATIONS... EDUCATES!!!"....F26

Announcing an initiative to train youth and include them in priority for inclusion in borrowing

5/29/2024

 Baghdad

Today, Wednesday, the representative of the Prime Minister and Minister of Agriculture, Abbas Jabr Al-Olayawi, announced an initiative to train and qualify youth and include trainees as a priority for inclusion in borrowing from the ministry’s borrowing fund, while he stressed that the Iraqi government pays great attention to the youth segment in its ministerial program.----

Al-Olayawi said in his speech during the “Unlocking Capabilities” conference, “Youth have a large presence in the government’s ministerial program, and therefore it was a great start for the youth support conference in Baghdad in the presence of Prime Minister Muhammad Shiaa Al-Sudani, and a paper was presented that was reviewed in the Council of Ministers for study,” indicating that “ Time was given to the ministers to make notes on the requirements that would be presented by the youth, and they included a large group of proposals. Therefore, these ministries began studying them in a dedicated session, and from that a comprehensive project for youth emerged through its approval in the Council of Ministers.

He added, "This indicates government interest in the broad segment that basically represents the stability of the government and the Iraqi state," explaining that "the interest was great, and that is why a group of youth initiatives were launched, distributed among ministries, and the Ministry of Agriculture had a share in it, as it was held in conjunction with the agricultural exhibition on the grounds of the Baghdad International Fair." The Youth Conference was sponsored by the Prime Minister, in which a package of many ideas and recommendations were put forward that were later put into action, and there were many workshops for ministries in cooperation with sectoral, union and advisory bodies.

He pointed out that "the Ministries of Youth and Labor have adopted a group of events and activities, as there is a great opportunity today for this initiative from the European Union mission to receive support and support from the Iraqi government and cooperation towards serving and supporting this segment."

He called on "youth to communicate with the ministries, as we, in the Ministry of Agriculture, are training and qualifying large groups of young people in cooperation with the Engineers Syndicate," pointing out "to include trainees in these courses with priority in order to be included in borrowing from the borrowing fund in the Ministry of Agriculture."

LINK