Community Comment: "If you have the old note with all the zeros on them, the Iraqi bank is obligated to give you the rate that's on their screen."
They're not obligated to do crap. Once this change [re-denomination] takes place then it doesn't make a difference if you have dinar in country or out of country. They have already told the world they're removing the zeros off of the dinar. So even if you have the old bank notes they already know that a 1,000 dinar is equivalent to 1 new Iraqi dinar. Just because you have it outside of Iraq, you're not going to get special privileges...They automatically do the conversion for you.
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.
THROUGH THE SCREENS.. THE IRAQI STOCK EXCHANGE DETERMINES THE COLORS OF THE DATA AND PREPARES TO BROADCAST ON YOUTUBE
The Iraq Stock Exchange announced today, Tuesday, its readiness to launch the trading screen broadcast on YouTube, while indicating the data colors.
The Executive Director, expert Taha Ahmed Abdel Salam, said, according to an issued document received by “Al-Eqtisad News”, that “the technical works to display the trading indicators display screens by adding the colors indicated according to the financial position of the companies (deficit) for the latest financial data and appeared on the broadcast screens and in the investors’ hall in the market as of the session of 7/23/2024 and in the following form
1- Companies with a deficit ratio of more than 50% are marked in red.
2- Companies with a deficit ratio between 30% – 50% are also in red.
3- Companies with a deficit ratio between 20% – 30% are in yellow.
4- Suspended companies in blue
5- The company colors will be updated according to the deficit percentage changes successively.
Regarding the launch of the broadcast on YouTube, Abdul Salam said, “Today’s session will also witness the launch of the broadcast via the Iraq Stock Exchange website via YouTube, in addition to broadcasting via the market’s Facebook page.”
What can we investors do to help in the RV situation?
We must now buckle down and pray and pray like never before for the success of Al-Sudani and his agreements with Washington are implemented.
You do want the RV don’t you? Pray for Iraq and also the U.S. in that there are strong enough representatives in Congress and the Senate who will stand up and continue to fight to uphold the US Constitution and keep fighting this Washington corruption. Pray that that God’s Hand will intervene and save our great country. Remember you can say the Rosary daily or use the prayers and links I provided from the Auxilium Christianorum for your prayers.
Of course there is also your own form of prayer too. Folks your prayers so far ARE WORKING and God has heard our cries. Just look at all the progress made just since December 2022 when Iraq announced they were finally entirely out of Chapter VII. And now in 2024 the spigot is wide open the final issues preventing the reinstatement are being dealt with one by one. Can you see it too. I am trying my best to help you see it. We don’t’ need this foolishness of this speculative crap or everyday / any day garbage intel confusing us. You think this is all just coincidental? God’s Hand is at work here. He has given Iraq his anointed leader Al-Sundani to help in his work. Even I have to sit back in amazement of what he has accomplished so far. Pray for him and all his success. Let see what July brings us.
THE ROLE OF THE IRAQ STOCK EXCHANGE IN SUPPORTING MONETARY POLICY IN IRAQ
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 relies 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 enhancing 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 from buying and selling through the shares of the companies listed in it and pressuring brokerage firms 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.
Yes, here it is again in our faces…. the Pillars of Financial Reforms. When I read the news just since my Tuesday Newsletter it struck me that are now mostly all now talking about these pillars and reforming these three sectors. Go ahead and page down in to the Article Section you can see for yourself. Iraq just told us yet more progress in all three sectors of their Pillars of Financial Reforms. Do you think this funny drawing I keep showing is important? Why do I show it often?
So, this week we have many significant events happening in Iraq all mostly related to the Pillars of Financial Reform that the Finance Committee has talked about so often and are in the White Paper plan for Iraq.
If you recall from my 7/23 Newsletter I reported mostly about explaining the 3rd part of the “the strategy of banking reform and development is the basic pillar for comprehensive and radical reform of the national economy in line with what is stated in Article Twelve, Paragraph (7) of the government program”
, which clearly and accurately stated that and I quote – “banking reform, with what it provides of a real and effective basis for the advancement of the Iraqi economy and the activation of investment through the restructuring and mechanization of government banks, reviewing their work, and stimulating and enabling private banks to be able to support investment and development in a real way.” Today is more of the reforms as they continue.
IRAQI STOCK EXCHANGE
Today they talk about the Iraqi Stock Exchange Iraqi Stock Exchange and how important it is and I quote from the article – “as in the case of the Iraqi model and long years of economic stagnation as a rentier economy that relies 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
. The ISX can only add to the GDP outside of the oil revenues. This will reduce the dependence on oil for revenues (the rentier economy).
So, we learned about the launch of the broadcast of the Iraqi Stock Exchange (ISX) on YouTube. So this week Iraq witnessed the launch of the broadcast via the Iraq Stock Exchange website via YouTube, in addition to broadcasting via the market’s Facebook page.” This is all VERY GOOD news and heading in the direction we need. Choo Choo!
Former MP Manar Abdul Muttalib, on Thursday identified the features of black money in the Iraqi investment stock exchange, indicating that this money stolen from the Iraqi treasury has revived the economies of several countries . But how has it helped Iraq? Abdul Mutalib said in an interview with Baghdad Today, “There is no accurate figure for the amount of money looted in Iraq after 2003, but all indications indicate that it is hundreds of billions of dollars, some of which was smuggled abroad and some of which was turned into support for building economic wings for parties, forces and companies .” Can you see why now they fight to liberate the dinar? Most of this would stop. The goose that lays the golden eggs would stop. Like Dr Shabibi said to us way back in 209-2012 that longer they stay on the currency auctions and suppressed rate, the harder it will be to return to normalcy. We are witnessing that now.
Also we read that and I quote – “The investment environment in Iraq is going against the trend in the world in that anyone with $100,000 can invest in a project worth $100 million. This is a paradox. Yes, do you see why now they have to reinstate the dinar and off the sole peg to the US dollar and the 1/6 of a penny rate. Billions are being lost.
BANKING REFORMS
We learned that Rafidain Bank has started selling dollars to travelers by filling out an electronic reservation form and reserving it 72 hours before the travel date.” This procedure will onlytake place in the bank’s branches and receiving it through the bank’s office at Baghdad International Airport.” The mechanism will be adopted to provide hard currency to travelers according to the official exchange rate set by the Central Bank of Iraq.” Can you see how this is a step to stabilize the parallel market and legitimize the demand for the dollar? Will this finally get the parallel market rate equal to the CBI official rate, or at least much closer? Choo Choo!
I want everyone to know that Finance Committee that returned from Iraq after spending the week attempting to convince the US Treasury to let go of dollars sanctions of the 32 Iraqi banks was a failure. This was not good news. We still wait. I do not believe this will happen as the Biden administration is in turmoil in the US. The democrat party is desperate to stay in power at any cost. All efforts are going towards this and foreign policy, as we all can see is suffering greatly as a result.
VOLUME OF BANK DEPOSITS GROW
WOW! WOW! It is finally taking root. Al-Obaidi said in a tweet followed by “Al-Eqtisad News” that the data of the Iraqi banking sector between 12-31-2022 and 5-31-2024 indicate that the banking sector, despite all the challenges and shocks it faced during this period, was able to achieve growth in many areas, specifically in financial inclusion, as well as an increase in bank assets and maintaining the volume of deposits despite everything that was raised about the sector. Folks again this is all VERY GOOD news. We know the banks must recover the money from the hoarded stashes outside the banking system in order to provide liquidity for the banks to operate and use the funds to loan out and for other financial products. But they are not there yet and won’t get to the final goals until they change the rate. Choo Choo!
INSURANCE REFORMS
Wow! I also have some news for you today in the category of insurance reforms to help investors and businesses come in to Iraq.
So in today’s news we find out that Iraq is joining the International Association of Deposit Insurers (IADI) which will enhance the transparency and credibility of their national banking system. Do you think this was needed prior to the RV happening? My impression is NO! However, it is a part of th Pillars of Financial Reform they said they needed to address. It will certainly help in their country’s commitment to strict international standards in the field of deposit insurance. It sends a positive message to citizens and investors, stating that their deposits with banks that are members of the deposit insurance system are in safe hands and that the banking system is subject to effective local monitoring and supervision.
International bodies do not only provide a platform for the exchange of expertise, but also provide technical and advisory support to their members. National institutions can benefit from the expertise of international specialists in developing and implementing effective deposit insurance policies, assessing potential risks, and preparing for financial crises.
By adhering to international standards and implementing best practices, national institutions can reduce the risk of financial crises and enhance the stability of the banking system. Choo Choo!
Next we learn that the Parliamentary Oil, Gas and Natural Resources Committee expects that the Oil and Gas law will be transferred to the next parliamentary session, amember of the Parliamentary Oil and Gas Committee, Ali Al-Lami, said in an interview with Al-Mada news in Iraq. We know this is important I have been many times this is needed in the Obama/Biden economy plan for Iraq. Yes, I was told they must fulfill this constitutional referendum requirement. Choo Choo!
I am sorry but there is not much spectacular news applicable from Iraq than what I just talked about in the commentary. The RV train just keeps moving down the tracks quicker than ever. Quicker than my 18 years in this investment. Hold on to your hat. Anything could happen at this time....TO BE CONTINUED
