Community Comment "An old 1000 dinar will be worth $3.21 x 1000 dinar = $3,210."
No it won't. Not at all. They'll just look at [your 1000 note] and know this is the old currency and you have to exchange it for the new currency and if you don't want the new dinars that fine but they're not going to give you a $3.21 rate time this full amount. They [will] know the re-denomination has already taken place...They'll give you $3.21. That's what you get.
Article: "International Monetary Authority: Iraq increases its gold reserves to 148 tons".
They added another 2.6 tons of gold to their holdings...I remember way back when Iraq had...86 tons and now they have 148. Iraq is doing everything they can to help strengthen Iraqi dinar. This is a great sign.
Pimpy
Article: "Iraqi bank announces investment deposits with returns up to 10%
" that's a really good return...Imagine if 20 years ago you'd have made a deposit and been able to get back 10% back annually while it's just sitting there. You'd have made a ton of money by now...
You see some of us have millions of Iraq dinars. Let's just say for the sake of it
somebody like me, I got 5 million, I deposit it. It's going to give me 10% return on my investment. I'll take 500,000 Iraqi dinar back annually. That's a nice little return. And just let it sit there while I'm waiting...If the exchange rate changes I can always have them return it to me in USD.
If you'd been holding on to your dinars for at least 10 years you have more than doubled your money. That's not including any change to the exchange rate, because if the exchange rate changes, then you get that back once you cash out.
In other words if you tell the bank I'd like to get it in USD, they go, okay, no problem. And please transfer that to my American account. Just something to think about. I may actually do this. I'm going to reach out to them and see what it takes and what happens. If I can get 10% on it annually I'll take it. Heck I might buy more and deposit more. Something to think about.
Shafaq News/ Iraqi Prime Minister Mohammed Shia Al-Sudani is reportedly exerting pressure on Iran-aligned armed factions to cease their escalating attacks on American interests and targets in Iraq.
Sources told Shafaq News Agency that Al-Sudani has been working for days to urge these factions to stop their actions against US forces, particularly after the recent missile attack on the Ain al-Asad airbase.
Al-Sudani fears potential American retaliations could destabilize Iraq's security situation.
The sources added that Al-Sudani has reached out to Iranian officials, seeking their influence to persuade the armed groups to de-escalate. “He aims to negotiate a withdrawal of US forces through dialogue rather than violence. However, the factions have so far resisted Al-Sudani’s and his associates' pressures.”
On Friday, a spokesperson for the US Department of Defense confirmed that an attack occurred near Ain al-Asad Airbase in Iraq, with no US military personnel injury.
On Thursday, a security source reported that Ain al-Asad airbase was hit by at least two rockets.
Harakat Ansar Allah al-Awfiya (HAAA) commented on the resumption of attacks on US forces in Iraq following a recent drone strike on the base.
Ali Al-Fatlawi, a senior member of HAAA, stated that the Iraqi resistance factions had paused their operations for four months to allow the Iraqi government to negotiate US withdrawal, but have resumed attacks due to delays and US support for Israel in Gaza.
He warned that any US response would escalate attacks on American targets in Iraq.
Earlier this month, two drones targeted the base, but details on casualties or damage were not provided.
-The first axis: The continuation of the punishment of the previous banks, and there is no lifting of the sanctions on them, meaning that the ban on those banks trading in dollars will continue indefinitely.
The second axis: closing banks that continue to violate federal controls related to money laundering, dollar smuggling, and supporting sanctioned entities and countries.
The third axis: Preventing the Iraqi government from interfering in the dollar file, and for this file to be in the hands of the Central Bank of Iraq only.
He stressed that “the last axis explains that the Federal Bank has detected political influences from the Iraqi government,” noting that “the Iraqi Central Bank is today in a very embarrassing situation and is almost in trouble due to internal pressures on it to obtain a larger space for the dollar and its circulation.”
He stressed that “the Central Bank will only be able to delay and postpone federal procedures for the longest possible period of time, while achieving temporary protection for the Iraqi banking system and the Iraqi dinar.”
FRANK26:"YES... THE FLOAT WILL DEPEND ON THE IRAQI STOCK EXCHANGE."..........F26
The role of the Iraq
Stock Exchange in supporting monetary policy in Iraq
July 23, 2024
Lawyer and banking expert Saif Al-Halfi
The world is now moving with rapid steps racing with the wind in the role of stocks supporting monetary policies, especially since the old classical theories considered that stock markets are not among the tools of monetary policy. This concept reflected a traditional understanding where monetary policy focused on tools such as interest rates, monetary facilities, and banks’ cash reserves.
The development of theories and the difference in models of economic studies differ with the development of research, studies and the financial market from one country to another. It is difficult to make a theory applicable to all countries and different economies, from emerging economies to more complex economies. Because of this dialectic based on trying to understand and establish the nature of the relationship between financial markets and monetary policy, which has become more evident in many countries.
Stock markets have become part of the general economic strategy of governments and central banks, especially after the introduction of the idea of cryptocurrencies and digital banks, as they directly affect consumption, investment and economic confidence.
Iraqi market
In the case of the Iraqi model and long years of economic stagnation as a rentier economy that depends primarily on oil to finance its annual budgets and the state of price speculation on the stability of the dollar exchange rate in local markets or what is known as the parallel dollar situation, we can look at the Iraqi Stock Exchange as a tool supporting monetary policy and influencing the state of the rentier economy. This is done through:
1- Encouraging local and foreign investment. The stock market can be a quick and important means of attracting local capital, especially cash in circulation, and trying to return it to banking incubators and investing it in short-term investments through price maneuvers on the shares of emerging companies listed on the Iraq Stock Exchange or long-term investments by pumping these cash blocks into the shares of profit generating companies, which are companies that regularly achieve rewarding annual financial profits. Thus, it enhances the idea of withdrawing the accumulated cash liquidity and returning it to banking incubators in a way that reduces immediate and temporary speculation on the parallel dollar in the local market.
It also creates real opportunities for foreign capital moving between emerging markets to enter, which provides them with the opportunity for quick entry, profitable investment and safe exit.
2- Diversifying the economy from excessive dependence on oil. The stock market can be used to encourage local and international investments in sectors that create greater economic diversity than usual and a state of rapid sales and price maneuvers for shares of promising companies in Iraq.
3- Absorbing liquidity: The stock market can play an important role in absorbing excess liquidity in the economy, which helps control inflation. This depends on the ability of the Iraqi market to be quick in price transactions, buying and selling through the shares of the companies listed in it, and pressuring brokerage companies to apply and activate the latest smart systems and phone applications for daily sales and contracts executed in it, as well as encouraging the publication of financial data for Iraqi companies on international platforms that encourage understanding the culture of Iraqi company shares.
One of the most important economic theories that support that financial markets can be an effective tool in monetary policy is the Wealth Effec theory, which is summarized and almost consistent with understanding the dialectic of the Iraqi economy and the stock market economy. More consistent with the Iraqi model is the Wealth Effect Theory, written by Gregory Mankiw. Its summary is that the rise in the value of financial assets among individuals gives them an incentive to withdraw money and re-inject it into purchasing new assets and stocks in order to increase wealth and gives them a feeling of wealth, which prompts them to spend on consumption and develop the national economy.
In conclusion, all these theories and studies support the idea that financial markets can be an effective and successful tool in achieving economic stability and enhancing growth, especially in emerging markets such as Iraq. If the Iraqi stock market is exploited in the right way that attracts local and international investments, it can help diversify the Iraqi economy and create new opportunities that drive economic integration in Iraq, making the Iraqi Stock Exchange a valuable tool for monetary policies.
When they said the rate is going to be 1 to 1, they're not telling you the value is going to be a dollar...They will never tell you what the exchange rate is going to be. 1 to 1 means the purchase power before the rate changes is going to be the same after the rate changes.
Before the rate changes a 25,000 dinar note will have the same purchase power as a 25 note after the rate changes...
The exchange rate against the dollar is your multiplier. Let's say after the rate changes the new exchange rate is $3.00 for easy math...After the rate changes since all the currency has a value of $3...25,000 note times $3.00 would be worth $75,000 and after the rate changes a 25 note is worth $75. It's that simple.
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Jeff
President signed off on...the budget on June 27th. I want to show you a pattern here...Issue number 4781 published in the Gazette on July 1st 2024...then...
they skip issue number 4782 and advance to 4783...published on July 8th.
We believe the Gazette issue number that is missing 4782...is actually the budget itself. They just can't publish it in the Gazette because right now it's being deemed or perceived as an unconstitutional law.
Jeff
The budget is not posted in the Gazette. The budget hasn't been implemented because it's unconstitutional...
Delete the zeros has nothing to do with the exchange rate.
Deletion of the zeros simple means removing currency notes with multiple zeros on them.
There was a perception out there that the rate was going to change before the July 18th accession date to the World Trade...This was their 3rd accession World Trade meeting. There's a 4th meeting coming in Q1 of next year of '25...Many thought Iraq would become a full member as of July 18th. None of that happened.
Jeff
Some of you have said that parliament has nothing to do with this [the budget]...It actually does because they unconstitutionally approved the budget and the budget's approval has everything to do with it. That's the piece to the puzzle that is not understood.
Article "Parliamentary law challenges the 2024 budget tables" Parliament can only review and approve laws. It was parliament that did these amendments making their steps or actions of approving the budget unconstitutional. The courts possibly next week around Wednesday/Thursday declaring the budget itself as unconstitutional and overturning its approval...
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Jeff
Article: "The 2024 budget will be returned to the House of Representatives and the reason is revealed"
Iraq approved their budget on Monday June 3rd. I've known since June 4th Tuesday that the budget was unconstitutional...
I've stayed quiet since to let the news catch up. I knew this immediately was unconstitutional. I knew it was going to get overturned by the court, the whole time. Now you're witnessing it. The news is finally, a month and a half later, catching up...That's how far ahead we are...
Jeff
I told you guys the court would be overturning the budget because it is unconstitutional...I basically predicted the future for you. It's getting close to happening. They're most likely going to do this next week.
Article: "Legal:The Federal Court will vote on the unconstitutionality of the budget table" I told you the budget is unconstitutional. I told you nothing was going to happen to the budget. As you see I'm right. The budget is getting overturned. It is going to go back to an unapproved state.
The central bank announced their 3rd strategic plan... They'll be increasing gold reserves...they also said they're going to offer...FOR READ MORE: