Tuesday, August 6, 2024
The National Currency Is Fluctuating.. An Expert To The “Iraq Observer”: We Need A Banking System That Creates Balance, 6 AUGUST
August 5, 2024 Baghdad/Iraq Observer Dollar prices have witnessed a significant rise recently, with a difference of 20 thousand dinars from the official price, amid the absence of any real solutions to control it and limit its rise.
In this regard, Mustafa Hantoush, a researcher in banking and financial affairs, confirmed to the Iraq Observer that “the issue of currency stability and the exchange rate is determined according to monetary policy, which is represented by several axes, the most important of which is that the dollar currency and the rest of the foreign currencies are owned by a number of foreign countries.” He added, “At the same time, Iraq has policies and understandings with these countries, such as the United States, so the issue of trade with countries such as Iran and Syria must be done according to the platform,” pointing out that
“this trade is huge and must be financed according to a specific method by purchasing gold or making transfers.” Or goods are imported until there is an understanding with these countries.”
He continued, “The United States today prevents dealing with the dollar in official trade, so how can this trade be financed at a time when it is not allowed to deal in the dollar-denominated dinar?
The issue of the platform with Iran and Syria may raise the American momentum and reduce tensions, and thus stabilize the currency.” He pointed out that “to support and strengthen the national currency, there must be a basket of currencies that needs a banking system.
Today, the banking system is due to the mistake committed by the Central Bank of Iraq related to the lack of a platform system with countries such as Iran and Syria from day one, unlike countries in the region such as Turkey and others that have created a platform.”
Gold and remittances, as the banking system was stopped, restricted from the dollar, and eliminated with quasi-sanctions, which created a banking problem, and then introduced banks to foreign investors with another mistake.”
The researcher asked about banking and financial matters:
How are Iraqi banks given to foreign investors?
This matter led, as a result, to these investors transferring the dollar to their bank branches in their countries, to an account in Citibank and JP Morgan, and
their profits will be in exorbitant amounts transferred to foreign countries, as
the issue has begun to affect the sovereign financial security of Iraq.”
He explained, “Iraq needs to build a banking system that strengthens banking standards and
thus enables Iraq to build a banking system that provides a balance for the currency.
Also, the issue of people is not as important in monetary policies as the policies themselves are important,
because the presence of a specific person who follows the same policies and does not have any plan, he cannot benefit from it.
”Rather, there must be a plan related to monetary policy to achieve the
balance of the currency and the banking system,
plans for financing and attracting deposits, and
plans related to granting loans.
Whoever has banking policies will be the best.” https://observeriraq.net/العملة-الوطنية-تتأرجح-خبير-لـعراق-او/
LATEST FROM JON DOWLING, 6 AUGUST
JON DOWLING
Things continue to heat up! Will Iran take the US offer to remove all the sanctions, or will they go full steam ahead with the attack on Israel? Something has to give soon and it will.
@JonDowling
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JON DOWLING
Folks, this is nothing more than a mere correction. Enjoy the dips on the cryptos and buy the dips while you can! This is for our benefit.
Iraq is pushing forward the oil and gas law into parliament while the world is distracted by the perception of WWIII which will NOT happen!
Our team told you long ago when the HCL law was happening, war would break out in the Middle East. And right on schedule it’s happening. They won’t be able to stop it this time. God is on control and he’s decreed it’s our time! See things with spiritual eyes, NOT physical eyes.
@JonDowling
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LATEST FROM JON DOWLING, 3 AUGUST
https://dinarevaluation.blogspot.com/2024/08/latest-from-jon-dowling-3-august.html
LATEST FROM JON DOWLING, 1 AUGUST'
https://dinarevaluation.blogspot.com/2024/08/latest-from-jon-dowling-1-august.html
RV UPDATE BY JON DOWLING, 30 JULY
https://dinarevaluation.blogspot.com/2024/07/rv-update-by-jon-dowling-30-july.html
Three-Quarters of Banks Face Digital Banking Infrastructure Issues, 6 AUGUST
Three-Quarters of Banks Face Digital Banking Infrastructure Issues
The banking industry is experiencing a seismic shift as agile, digital-native FinTechs capture an ever-growing share of the market.
Burdened by outdated technology, traditional financial institutions face mounting challenges in delivering modern digital services.
The growing dominance of FinTechs — securing nearly half of all new account openings — highlights the urgency for banks to modernize their infrastructure.
With consumer expectations rapidly evolving toward seamless digital experiences, banks must navigate the high costs and complexities of updating their core systems.
Exploring incremental modernization through application programming interfaces (APIs) may offer a viable path forward, enabling banks to enhance their digital capabilities and remain relevant in an increasingly competitive landscape.
A recent PYMNTS Intelligence Report, “Core Strength: FIs Must Modernize to Meet the FinTech Challenge,” in collaboration with Galileo, highlights the urgent need for traditional financial institutions to overhaul their outdated systems to keep pace with digital-native competitors.
The report reveals that 75% of banks struggle with implementing new digital solutions due to their legacy infrastructure, underscoring the critical nature of modernization efforts.
As FinTechs continue to capture a growing market share, banks face mounting pressure to adopt agile technologies and innovative approaches.
@ Newshounds News™
Read more: PYMNTS
"QFS CONVERSATION: " IT IS FISCAL POLICIES THAT RAISE THE VALUE OF CURRENCIES" WITH GOLDILOCKS, 6 AUGUST
GOLDILOCKS
The Supervisory Committee for the Restructuring of Rafidain Bank met. One of the topics of major interest in the meeting was achieving Financial Stability.
This meeting comes after a meeting with the IMF Article 4 consultation. One of the key components of this meeting was the following. "Without policy adjustment, the risk of medium-term sovereign debt stress is high and external stability risks could emerge."
Iraq has achieved great strides since the opening of their budget in 2023, but they still need to expand in revisions regarding their fiscal policies.
Many emerging economies are beginning to realize that devaluation of currency leads to more public and governmental debt along with imbalances in the private sector in pay. This lowers the GDP for a country and the values of currency over time.
It is fiscal policies that raise the value of currencies creating a shift in a country's economy by boosting from within the economy natural growth.
Many emerging economies are considering being part of a trade weighted basket. By pegging to a trade-weighted basket, debtor countries can reduce the effect on their international trade. The listing goes on a trade weighted index (TWI).
A TWI weighs in the average prices of several domestic currencies to come up with average prices for each currency; rather than, the single average of a currency standing alone.
This would bold well with countries who join the BRICS Nations in determining new price correlations for international trade.
This shift in focus towards raising the level of pay in the private sector is going to actually bring in more revenue towards the government itself. The result is a self-sustaining government reaching beyond dependence on oil to each other who have various aspects of the economy of which all can contribute to the boosting of its economy.
© Goldilocks
https://cbi.iq/news/view/2631
https://www.elibrary.imf.org/display/book/9781557751713/ch007.xml
https://www.elibrary.imf.org/display/book/9781557751713/ch007.xml