Excessive Issuance Of New Currency: Will It Push The Iraqi Economy Towards The Abyss?

 Excessive Issuance Of New Currency: Will It Push The Iraqi Economy Towards The Abyss?

July 8, 2024 Last updated: July 8, 2024  Hussein Al-Falluji*    In light of the economic challenges facing Iraq, the importance of issuing new currency appears as an important tool of monetary policy that can be used to achieve economic growth and financial stability.

Unfortunately, these funds have been ineffectively directed over the past twenty years towards consumer sectors instead of productivity, in addition to using this tool to fill the budget deficit to cover salaries and the operational budget.

This ill-advised directive, coupled with the dominance of the public sector and neglect of the private sector, led to increased inflation and depletion of the hard currency balance.

 Hence, there is a need to reconsider the use of this important tool and adopt a new strategy that focuses on directing funds towards productive sectors that generate income in hard currencies and supporting the private sector.

 The economic situation in Iraq

 According to available statistics, the volume of cash issued at the end of 2017 amounted to more than 44 trillion Iraqi dinars, while the volume of the monetary mass exceeded 103 trillion Iraqi dinars at the end of 2023.

 All of this money was directed towards the salaries and subsidies sector instead of being directed towards productive sectors.

 If this money had been dealt with wisely and scientifically and pumped into the industrial, agricultural, tourism and mining sectors, the economic situation in Iraq would have been much better than it is now.

Focusing on productive sectors such as tourism, industry, and agriculture can contribute significantly to increasing GDP and improving living standards.

For example, investing in tourism infrastructure development and tourism promotion can attract foreign tourists and increase hard currency revenues.

 Likewise, supporting industry and agriculture to meet the needs of the local market contributes to increasing the gross domestic product and preventing the exit of hard currencies by adopting modern technologies and improving the quality of products, which enhances competitiveness in global markets.

 Reconsidering and scientifically dealing with the new monetary issuance instrument could help in restructuring the national economy effectively and sustainably.

This strategy can contribute to improving the balance of payments by increasing exports and reducing dependence on imports.

 Supporting the agricultural sector to meet the needs of the local market and exporting the surplus using advanced technology and developing storage and transportation facilities can improve the quality of crops and increase the volume of exports.

 In addition, the development of local industries reduces the need to import goods, which preserves hard currency within the country.

 Directing funds towards productive rather than consumer sectors also helps reduce inflation resulting from increased demand without a corresponding increase in production.

 Increasing the flow of hard currencies into the economy enhances the stability of the local currency and reduces exchange rate fluctuations.

 In this way, sustainable economic stability can be achieved that strengthens the national economy and achieves tangible improvements in the standard of living.

 Implementation and monitoring

To ensure the success of this strategy, it is necessary to develop a comprehensive plan and economic feasibility studies to determine priorities and target projects.

 There must be a monitoring and evaluation system to ensure that funds are used effectively and that desired objectives are achieved.

 Cooperation with international financial institutions and strategic partnerships with the private sector can enhance the effectiveness of implementation.

 On this occasion, we demand stopping the issuance of cash for the purposes of filling the deficit in the operating budget, and emphasizing strict commitment to directing any new funds issued towards the productive sectors instead of pumping them into the consumer sectors.

 This wise channeling of funds will contribute to achieving sustainable economic development and improving the economic situation in Iraq.

 *Independent politician    

https://mustaqila.com/الإفراط-في-إصدار-النقد-الجديد-هل-سيدفع/     

LATEST FROM FNU LNU

  Fnu Lnu   

Community Comment:  "Wealthy people invest their initial profits. The first person they hire is a financial advisor.   The second...is a tax professional" 

 This is not what you do with your initial profits. What you do is construct a financial fortress by setting up an ASSET PROTECTION PLAN!  Lawsuits, taxes, and probate, are the wealth killers... Failing to set up an asset protection plan will almost guarantee that you will be sued. There are people who make a living seeking out the wealthy and then suing them.  The first person you seek out is an asset protection professional of which there are few.  

1% of all attorneys hold themselves out as AP specialists. After the RV, they will be booked up solid for months. Your AP specialist will have the proper CPA's to maintenance your wealth protection structure. The average CPA doesn't even know how to file the proper forms for a Charitable Remainder Unitrust report for the IRS. So, hire your AP professional...

stay away from Financial Advisors who push foolishness like Muni Bonds, IRA's, 401K's. Mutual Funds, and other worthless paper-based assets.   Certified investors have access to high-yield investments the common folk do not. Those are your path to multi-generational wealth.

Iraqi Dinar✅Wow Its Massive Iraqi Dinar Again Traded On Forx Market | Ir...

"SECURITY FOR THE MONETARY REFORM" BY FRANK26

 KTFA

 FRANK26: "SECURITY FOR THE MONETARY REFORM".............F26

Central Bank hosts meeting to regulate e-commerce in Iraq

 

July 07, 2024

 

His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, chaired the meeting of the Diwani Order Committee (24079) to regulate e-commerce in Iraq with the participation of the concerned authorities.
During the meeting, the draft e-commerce and consumer protection system was discussed through the controls discussed by the attendees, through the registration procedures and obtaining a license to practice this trade.
The committee contributed to defining the service provider and granting him a license through an electronic platform established by the Ministry of Trade. The committee members stressed the need to establish controls for granting a license to those wishing to practice e-commerce in a manner that preserves the rights of all parties.
The attendees agreed to submit the "system paper" to the Council of Ministers for review and approval to proceed with work on it.
 
Central Bank of Iraq
Media Office
July 7, 2024

.
https://cbi.iq/news/view/2612

#########

The Central Bank submits the system paper on e-commerce to the Sudanese

7/7/2024

The Central Bank of Iraq submitted, on Sunday, the "system paper" to the Council of Ministers regarding the regulation of e-commerce in Iraq.

The bank stated in a statement received by Mawazine News Agency, that "the Governor of the Central Bank, Ali Mohsen Al-Alaq, chaired the meeting of the Diwani Order Committee (24079) to regulate e-commerce in Iraq with the participation of the concerned authorities."

During the meeting, the draft e-commerce and consumer protection system was discussed through the controls discussed by the attendees, through the registration procedures and obtaining a license to practice this trade," noting that "the committee contributed to defining the service provider and granting him the license through an electronic platform established by the Ministry of Trade."

The members of the committee stressed "the establishment of controls for granting the license to those wishing to practice e-commerce in a way that preserves the rights of all parties," while the attendees agreed to submit the "system paper" to the Council of Ministers for review and approval to proceed with work on it.

LINK

LATEST FROM WALKINGSTICK

 Walkingstick 

  The monetary reform is secured by the reserves.   The reserves that back up the currency is the control that the CBI and Saleh is talking about when he says we have a strong exchange rate at 1320 because he can control it and he can change it at any time he wants.  He's not just talking about what they know they have...the billions and billions of dinar that were brought back but it also includes all the tapped sources and untapped sources, gold, phosphate, oil, diamonds, etc etc, each one of these categories alone can support the monetary reform.

--

If they float the dinar it will be in a very tight band.  If it's a low rate, if it's a dollar then they'll float and it'll drive the rate up.  But if they come out at an RI, reinstatement of $3.22 and then the float, then they're going to have some serious very tight banks on the float.  It will be monitored very closely.   It will only allow it to be a plus or minus of 5%.  It cannot go any further than that in the float.  

For example, don't let it get past maybe $3.50...They will cap it quickly...

 [Iraqi bank friend Aki update] 

The CBI board of directors decided...to hold meeting with only all of their executives of all their banks...These two or three meeting are going on...  

This is on the subject of the monetary reform, lower notes, exchange rate, budget ... These next few days are going to be very silent.  The press will not cover it.  No one will know anything about it.  They will suppress this information...This silence is normal and to be expected right now.  [Aki] has seen this quietness before when the CBI was getting ready to make a major move.

https://dinarevaluation.blogspot.com/2024/07/latest-from-walkingstick.html

🔥 Iraqi Dinar 🔥 Reinstated to FOREX 🔥 Today IQD to Dollar Today RV News ...

Al-Sudani and a delegation from the Pentagon discuss the continuation of ending the mission of the international coalition

 On Monday, Iraqi Prime Minister Mohammed Shia al-Sudani discussed with a delegation from the US Department of Defense (Pentagon) the procedures for proceeding with ending the mission of the international coalition to fight ISIS.

A statement by Al-Sudani's office received by Shafaq News Agency stated that "the Prime Minister received the US Deputy Assistant Secretary of Defense for Middle Eastern Affairs, Daniel Shapiro, and his accompanying delegation, in the presence of the US Ambassador to Iraq. During the meeting, the procedures for proceeding with ending the mission of the international coalition to fight ISIS and activating bilateral relations between Iraq and the United States were discussed."

The meeting also discussed the situation in the region and the ongoing aggression on Gaza, as Al-Sudani referred to the suffering of the Palestinian people, the difficulty of humanitarian aid and relief supplies in light of the stifling siege, and the failure of the international community to assume its responsibilities in pressuring the Netanyahu government to stop the genocide.

The Iraqi Prime Minister stressed the need for a firm stance against the aggression, and the necessity of preventing escalation that threatens to expand the scope of the conflict.

For his part, the American official pointed out the importance of Iraq's role in reducing tensions in the region, and the inevitability of continuing the approach of communication and cooperation between the two countries in the areas of armament and security and raising the combat level of the Iraqi forces, in a way that supports Iraq's security and sovereignty, economic development and progress at all levels.  link