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Iraqi Dinar Guru News Highlights (7/19/24)

Proposed Vision To Activate The Government And Central Bank Procedures In Economic And Banking Reform

 Samir Al-Nusairi  By analyzing the efforts and measures taken by the government and the Central Bank to implement what is stated in the government program of the government of the Sudanese Prime Minister, which is the ninth government after the change in 2003, and which has been in charge for approximately one year and eight months, and which has been able to achieve an acceptable percentage of the specified goals in the field of economic, financial and banking reform, and which included many economic sectors and fields that occupied almost most of the axes of the government program, but without achieving comprehensive and radical economic reform that begins with financial and banking reform, the government’s complete goals and visions cannot be achieved.

Therefore, the government program, as I see it, is a four-year strategy to achieve the revolution of economic, financial and banking reform.

The reason for launching this strategy is “because Iraq, after 20 years of economic failures, mismanagement, and mismanagement of public funds due to administrative and financial corruption, the loss of a sound economic approach, political conflicts, and instability in the business environment, has led to reliance on oil as a primary source of revenues from the general budget, which constitutes approximately 93% of the total resources and approximately 60% of the gross domestic product, and the failure to activate the productive sectors that generate national income.”

Which led to "a blurred vision and lack of clarity in the decisions of the reform process of previous governments, except for some achievements made by the Central Bank of Iraq during the past years, in which it overcame the challenges of monetary policy at rates that enabled it to maintain the stability of the dinar exchange rate during the previous years despite the economic crises and challenges.

Unfortunately, the fluctuation in exchange rates returned after the amendments made to the official exchange rate in 2020 and 2023 for many reasons, most notably the lack of control over financing foreign trade, non-compliance with international banking standards, the presence of unofficial border crossings, illegal inter-trade, and speculators in the foreign exchange market and their access to cash dollars allocated to travelers, which constitutes less than 10% of the supply for foreign transfers.

However, the Central Bank was able to build excellent foreign exchange reserves and maintain the general level of prices and the annual inflation rate at around 4% after it was 7.5% at the beginning of 2023. This confirms that the government and the Central Bank reviewed previous reform policies in 2023 through diagnosis and analysis and concluded that economic problems are the cause of most of Iraq's crises and that "the real solution to Iraq's crises is to work with a comprehensive change approach.

 I mean here drawing a strategic and executive roadmap to activate the procedures for economic, financial, banking, administrative and legislative reforms by adopting radical change for the coming years while benefiting from the experience of institutions and experts in the government and the private sector in confronting crises and activating the reform procedures of the government and the Central Bank, and according to the proposed vision that I put before the eyes of the Prime Minister, the Governor of the Central Bank and the Ministerial Council for the Economy, as follows:

First - Starting a systematic movement to draw a roadmap for economic, administrative and legal reform carried out by the Iraqi elites and economic, financial and banking competencies (government and private sector) by establishing the Supreme Economic Council, with the private sector in all economic sectors as a member thereof, and the private banking sector as a basic member of its membership as the financing and investment sector that must contribute to sustainable development.

The reform movement should be based on several important economic pillars that adopt a new methodology for managing the economy and achieving the central goal of moving the economy from rentier to productive and from cash to digital, and activating the non-oil productive sectors to reach 30% of the general budget revenues in 2026, creating sustainable development, achieving diversity in resources, and developing economic and human structures for the sound construction of the national economy and building the preliminaries for the transition to a social market economy, provided that its recommendations, after approval by the Council of Ministers, are binding for implementation by the ministries, agencies and relevant bodies.

Second: Forming a (Central Follow-up Committee) linked to the Prime Minister’s Office to follow up on the implementation of decisions and has the authority to monitor and evaluate. It is formed under the chairmanship of the Prime Minister and includes a group of government advisors and experts and private sector experts.

Thirdly - Moving to central management of the economy so that the principle of (central planning and decentralization of implementation) is implemented. This means that the Supreme Council of the Economy will undertake the drawing up of plans and policies centrally and distribute their implementation to the ministries and specialized bodies within the government structure after approval by the Council of Ministers.

Fourth: Providing soft loans to finance small, medium and large projects in accordance with the national lending strategy recently launched by the Central Bank, and establishing a legal and institutional system to manage, develop and advance them, and issuing a special law for them. As well as issuing and amending the laws of the legal environment to regulate the economic process, which means issuing new laws instead of the laws issued in 2004, due to the changes that have occurred in the national economy during the past two decades.

Fifth: Activating investment in the agricultural, industrial, energy, tourism, services and housing sectors, as well as working to reform, develop and grow the banking sector through monetary policy applications and regulating the relationship and restrictions governing financial and monetary policies, in addition to the serious trend towards reforming the tax, financial and customs system. Addressing cases of failure to achieve the required growth rates in national income and overcoming the rise in unemployment and poverty rates.

Sixth: Developing a new methodology to overcome the challenges of instability in the financial and monetary systems. This means developing coordinated and balanced plans to overcome the challenges of monetary policy, the challenges of the deficit in non-oil revenue, and the deficit in the balance of payments and the trade balance.

Seventh: Accelerating the implementation of the e-government program and coordinating it with the electronic payment system, and the procedures for digital transformation in banking transactions, and focusing on activating the procedures of the Central Bank to implement the objectives of its third strategy, and following up on the decisions issued by the government regarding the use of electronic payment in commercial exchanges and banking operations, and establishing the National Company for Electronic Payment, which was announced by the Central Bank.

Eighth - Reviewing the banking market in Iraq towards activating the implementation of government decisions regarding government banks and the decisions of the Central Bank.

By classifying private banks, merging them, increasing their capital, and adopting them as solid international banks as correspondent banks, activating and accelerating joint procedures from the US Treasury regarding lifting sanctions and restrictions on the use of the US dollar in international transactions, and activating mechanisms, instructions, and controls for private banks’ commitment to complying with international banking standards.

Ninth: The necessity of having a representative of the private banking sector on the Board of Directors of the Central Bank and forming an advisory council for the Central Bank of experts and consultants working in the private banking sector and academics specializing in monetary policy in universities to study policies and programs and express an opinion on them before referring them to the Board of Directors to take the necessary decisions for implementation.

216 views  Added 2024/07/18 - https://economy-news.net/content.php?id=45342

RV HIGHLIGHTS, 20 JULY

 RV HIGHLIGHTS

TNT reportedly had two confirmed bank storys that people of his went into Wells Fargo in Vegas and we're told there's a $2.98 rate on Iraq Dinar. They also reported that ZIM was the "sleeper currency" (that it's actually going to be redeemed) but that there was a capital gains document that would have to be signed claiming 20% tax to be collected in 2025. That was apparently for ZIM. 

There are treaties in place for Dinar and I believe Dong. So for what it's worth, Tony says that the "event" (meaning a rate on bank screens) has already occurred but that authorization hasn't been given to start RV. I don't know how this Wells Fargo was able to offer anyone anything prior to us all getting word

CHELLA: Iraqi Dinar News WTO, Stock Market,Tax Exempt, Investment Forum, Gold, E...

Minister Of Trade: Iraq's Accession To The World Trade Organization Will Contribute To Stimulating Economic Growth

 Minister of Commerce Athir Al-Ghariri   Money  and business  Economy News – Baghdad  Minister of Trade Athir Dawood Salman Al-Ghurairi confirmed on Thursday that Iraq’s accession to the World Trade Organization will contribute to stimulating economic growth, during his speech at the third negotiating meeting with the World Trade Organization in the Swiss city of Geneva.

The Ministry of Trade said in a statement, seen by "Economy News", that "the Minister of Trade and the head of the team concerned with Iraq's accession to the World Trade Organization headed the Iraqi side in the third negotiating meeting with the World Trade Organization, in the presence of the Deputy Director-General of the Organization, Zhang Xing Chen, the head of the working group for Iraq's accession, members of the team and representatives of the WTO countries at the organization's headquarters in Geneva."

The minister pointed out - according to the statement - during a speech he gave at the meeting to "the importance of Iraq being part of the rules-based multilateral trading system," stressing that "we are pleased with the holding of the third meeting of the working group after sixteen years since the last meeting of the working group, which represents a fundamental step for us, government and people, on our way to joining, in addition to being a means through which we seek to achieve development and diversification of our national economy and our integration with the global economy."

The minister pointed out that "the government of Iraq is committed to its economic reform program by strengthening trade policy, improving the business environment and creating favorable conditions for foreign investment," indicating that "joining the World Trade Organization will contribute significantly to enhancing transparency, encouraging competition and stimulating sustainable economic growth for Iraq."

He continued, "The new Iraqi government, led by Prime Minister Mohammed Shia al-Sudani, and within its government program, has set a clear vision for the future of economic liberalization in Iraq, which includes setting timetables to achieve the liberalization process and focusing on sectors with high potential such as agriculture, industry and services, which stipulate supporting local and foreign investments and unifying customs policies at all borders and other measures to facilitate trade and investment and create investment opportunities."

The minister explained that "the government has also given special importance to aligning its trade policy and regulatory legislation with international capabilities, rules and standards and strengthening institutional capabilities to effectively meet the requirements of the World Trade Organization."191 views  2024/07/18 - https://economy-news.net/content.php?id=45361

"RV UPDATE" BY MNT GOAT, 20 JULY

 MNT GOAT

There is one VERY important article in today’s news I want to share with everyone which I believe explains a lot of why we have not yet seen the RV. It also tells the past story of Iraq. This current Al-Sudani administration is now moving Iraq ahead, yes out of this past rut. We as investors have witnessed the difference from past administrations. WOW!  It is a hard road for Iraq but their greed and corruption go them to their bad place. Now they have a hole to dig out and are doing it. No there is no such thing as every day / any day RV over the weekends. There is work to be done. 

• “the Central Bank’s third strategy has drawn up a road map and programs with clear goals and initiatives for a period of three years2024, 2025, 2026  in a special, complex, and risk-filled economic and financial situation.”

• The Commander-in-Chief of the Armed Forces explained that the goal of preserving the security and sovereignty of Iraq over its land, airspace, and waters is a main axis within the goals of the government program in the field of defense and confronting security challenges

• The beginning of the twenty-first century can be marked by the development of advanced digital technologies, a revolution in the information field, and the acceleration of the processes of economic globalization. Mnt Goat: this explains where Iraq is moving ahead.

• It is noteworthy that the Parliamentary Investment Committee justified its effort to amend some investment laws in order to attract foreign investments and capital.Mnt Goat: We were also told this was needed by the WTO in the accession process. “To comply with WTO rules, Iraq must align its trade policies with international standards.

• Iraq has confirmed that it has fulfilled the requirements for joining the World Trade Organization (WTO) after implementing economic reforms and improving the business environment. Mnt Goat: So, we are told this meeting on 7/18 may be the final “working session” to rap up the paperwork and once again review that all requirements are met. It did not mean they were going to make the announcement then followed or preceded by an RV. Get it? Jut more intel guru talk… lol..lol..lol.. ☹ No evidence or proof of what they say. All pure speculation!

• The European Union announced, on Wednesday, that the Iraqi government has achieved progress in international investment, while noting that it sets an example of cooperation with international legal standards. Mnt Goat: Come’on folks can the news get any better?

• Prime Minister Muhammad Shiaa Al-Sudani confirmed that Iraq has become a safe and attractive environment for capital from international companies. Mnt Goat: Are they just saying this based on what the EU just said? 

• Iraq has officially signed the “The Singapore Agreement” on Mediation, and that this is an important step in developing and resolving commercial disputes in Iraq. Mnt Goat: It represents an international category that aims to facilitate international trade and promote mediation as an alternative and effective method for settling commercial disputes.

• the approval of next September as the date to stop dealing with the paper system and work electronically at (all) customs (points). “the Prime Minister chaired a meeting to follow up on the implementation of networking between border crossings, and to complete the implementation of the Customs Automation System (ASYCUDA). Mnt Goat: more accountability and much more revenue to be turned over to the Federal govt. WOW! Remember what they said. This revenue could rival the oil revenues if it is managed properly. The WTO also requires this. This also helps to bring Iraq out of a “rentier” economy, which they need to do.

• In implementation of the provisions of Article 2/77 of the law above, which stipulates that the government shall submit financial schedules related to expenditures, public revenues, and the planned deficit for the fiscal years 2024 and 2025, in order to provide a flexible space that allows for the implementation of the general budget. Mnt Goat: Done! And published in the Gazette. Yes, no RV rate in the budget or in the rollout schedules just as I have been saying all along. Just more stupid intel guru talk ☹. Surprise, Surprise! Are you stupid TNT fans listening? 

• The advisor to the Iraqi Prime Minister disagreed with what four economic experts said regarding the “stability” of the US dollar exchange rate against the Iraqi dinar, stressing that “the stability of the dollar is real and solid and not imaginary as some believe.”

• foreign reserves supporting the Iraqi dinar, whose value as liquid foreign assets exceeds $100 billion, which is the highest in the history of Iraq in the development of its international reserves.

• economic researcher, Ali Abdul-Kazem, explained as for the stabilization process, when the dollar reaches the official price, then it can be said that the dollar price has stabilized between the parallel and official.” 

• economic expert Al-Halou explained to Shafaq News Agency, “rather, the correct stability is as it was before, when it was 1120 in the Central Bank and 1121 abroad”.Mnt Goat – this is better than 1166 under Dr Shabibi even…just saying…  😊 Can they reach this? Is this their goal?)

• Muhammad Saleh, explained today, Friday, that the state has adopted a policy of providing sovereign guarantees for loans obtained by the private sector to finance an important package of private industrial projects. Mnt Goat: In other words these govt backed sovereign funds provide security for these loans for these “private” projects not funded by the Iraqi budget.

• Iraq has been seeking for two years to end the phenomenon of dealing in the dollar in the local market, while economic experts point out the success of the Central Bank of Iraq’s measures in achieving “relative” success in controlling the hard currency. Mnt Goat – Did you read it? It says “Central Bank of Iraq’s measures in achieving “relative” success in controlling the hard currency.” So please do not ask me if the parallel market is under control. It is but it is not yet where it needs to be. It needs to match the Offical CBI rate. I keep telling everyone this. This is their goal! 😊

• The financial advisor to the Prime Minister, Salehwhile pointing out two basic starting points for the development of the investment environment in the country. 1.the first is Iraq’s completion of its integration steps in providing safe and appropriate environments to attract foreign investment in Iraq; 2.the geographical location of Iraq, which connects European countries by land with Asian countries by sea, encouraged the launch of the Development Road project.

• Clemta, the comprehensive platform for entrepreneurs operating in the United States and spread globally, announced the most important updates aimed at enhancing the user experience and expanding its international reach. The Certified Admissions Agent program recognized by the Internal Revenue Service is now available in Arabic, and is intended for entrepreneurs in the Middle East and North Africa (MENA) region.

• Prime Minister Muhammad Shiaa Al-Sudani confirmed that the world realized the importance of Iraq’s stability for international and regional security, during his reception of the delegation of the European Foundation for Dialogue and Development. Mnt Goat: Get’r Done!

• Saif Al-Halafi, a specialist in financial and banking affairs, identified three reasons for the return of the rise in dollar exchange rates in local markets, while placing the Iraqi Stock Exchange as an essential part of resolving this rise. Mnt Goat  – opps!!! There’s a Pillars of Financial Reform…. 😊 they keep talking about. Get it yet?

• Al-Sharmani said in an interview with the Maalouma Agency that the Central Bank’s policy is still faltering in controlling the dollar exchange rate. He added, “Specification and lack of control over the currency selling window is one of the most important reasons that creates a gap that leads to a rise in the dollar exchange rate in the markets.”

• Oil and Gas Law: July 9, After 18 years, he announced the formation of a committee to draft the law and present it to the government and the House of Representatives. Mnt Goat: The draft oil and gas law in Iraq available to Parliament stipulates that responsibility for managing the country’s oil fields must be entrusted to a national oil company, and supervised by a federal council specialized in this subject. There is no other way to settle the dispute.

• Yesterday, the Central Bank of Iraq announced that it had submitted the “Draft E-Commerce System” paper to the Council of Ministers for review and approval to proceed with work on it. Mnt Goat: The committee members stressed the need to establish controls for granting licenses to those wishing to practice e-commerce in a way that preserves the rights of all parties.

• the dollar’s flight does not threaten the dinar.. Al-Sudani’s advisor dispels fears: the dollar system is a thing of the past

• The World Gold Council announced today, Monday, that Iraq has advanced one place in the list of countries with the largest reserves of the precious metal in the world. According to the table, Iraq gold holdings changed, reaching 1,457 tons from 142 tons, which represents more than 10% of its other reserves. Mnt Goat: yes, more GOLD to back the dinar. 

• “The fixed exchange rate system in Iraq is based on an international reserves base that is the highest in the history of Iraq and its monetary policy, as foreign currency covers more than 100% of the total currency currently issued.”
• Rafidain Bank announced today, Wednesday, the implementation of the comprehensive banking system in Diyala.  “the digital transformation plan and the adoption of the comprehensive banking system are proceeding according to the scheduled timings”

• for the first time, the non-oil revenues of the Iraqi state recorded 11% of the total revenues, with oil revenues falling below the 90% barrier. Mnt Goat: is there some magic number they are trying to reach that they have not yet told us? Is this part of the Obama plan to revive the economy?

• the “ Jarida ” platform learned that a company will soon be working to audit remittances for foreign currencies other than the dollar, in addition to restricting the sale of cash dollars exclusively through airports, Mnt Goat: the exchange rate situation is improving and stabilizing, especially after choosing a company to audit transfers for foreign currencies

• Iraq stops dealing with the Chinese yuan…and the currency basket is an alternative

• Ernst & Young for auditing and financial consulting, “the signing of the contract with the company specialized in structuring and developing work in the banking sector.” Mnt Goat: This is part of the 3rd phase of the strategy of financial reforms that must take place. See White Paper.

• The Central Bank of Iraq announced, today, Wednesday, granting exchange companies of the “AB” category the ability to register internal and external remittance activities through the FITR platform. Mnt Goat: if you can’t beat them, then control them by regulations and audits. 

• Hussein pointed out that “the stability of the Iraqi dinar exchange rate against the US dollar represents a fundamental pillar for achieving economic, social and political stability in Iraq, which is what the government seeks to achieve,” calling on the relevant American institutions to review it and build on it. Mnt Goat: WOW! what a statement!

• “the government’s policy seeks to achieve Iraqi energy independence through associated gas investment projects. Mnt Goat: They have always had a plan but the money to do it was always stolen and so they never did many of these projects. Can they finally fund again these projects and do them this time?

• Iraq moves to break dollar restrictions on 32 banks in crucial talks with Washington this week. Mnt Goat: I do not still fully understand the reasoning for such restrictions when you want to help Iraq. But this is only hurting Iraq and not letting them conduct the currency reform their way according to their plan.

• The economic expert, Dhia Al-Mohsen, called for canceling the currency selling window, pointing out that some beneficial political blocs were behind the continuation of this window to achieve financial gains. Mnt Goat: Yes, by still operating under these currency auctions this too adds to the problems with the dollar. They have become more of a hindrance rather than helping Iraq. 

We must also not lose sight of the political ramifications from the U.S. and the UN on the impact it has on allowing Iraq to move ahead. Does Iraq truly now have back its “full” sovereignty? Yes, they are digging themselves out from the two wars and heavy sanctions and doing it slowly with a well thought out strategy. So far it all seems to be working.

Please just be patient! I will get into the details in my Newsletter today on each of these subject areas and explain why each of them could be a “WOW!” news items in itself. So, relax it's coming! 😊

https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/