DINAR REVALUATION

Thursday, August 22, 2024

DINAR REVALUATION UPDATE: OVERVIEW OF THE IRAQ'S ROADMAP FOR FINANCIAL SUSTAINABILITY IN THE IRAQI BANKING SECTOR, 22 AUGUST

Iraq's Roadmap for Financial Sustainability in the Iraqi Banking Sector 2024

Overview

The Central Bank of Iraq (CBI) has unveiled a strategic roadmap aimed at achieving financial sustainability in the Iraqi banking sector by 2024. This initiative is a critical component of the bank's broader strategy to strengthen the financial system and promote economic stability.

Key Objectives

Enhancing Financial Stability: The roadmap focuses on improving the overall health of the banking sector through prudent risk management and robust regulatory frameworks. Promoting Economic Growth: By fostering a stable and sustainable banking system, the CBI aims to support economic growth by facilitating credit access and enhancing financial services. Increasing Financial Inclusion: The strategy includes measures to expand financial services to underserved segments of the population, promoting greater inclusion and access to banking services.

Strategic Directions

Regulatory Reforms

The CBI is committed to updating and enforcing banking regulations to ensure compliance with international standards. This includes strengthening anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.

Risk Management

Enhancing risk management capabilities is a priority. The roadmap outlines steps to improve credit risk, market risk, and liquidity risk management practices.

Digital Transformation

The initiative emphasizes the importance of digitalization in banking operations. The CBI plans to encourage the adoption of digital banking services and promote financial technology (FinTech) innovations.

Capacity Building

Recognizing the need for a skilled workforce, the CBI has included measures for capacity building among banking professionals. This includes training programs and workshops to enhance knowledge and expertise.

Enhanced Supervision

The roadmap highlights the need for more effective supervision of banks. The CBI intends to implement a risk-based supervisory approach and increase on-site inspections to ensure compliance with regulatory requirements.

Critical Evaluation

The roadmap presents a comprehensive approach to addressing the challenges faced by the Iraqi banking sector. Its focus on regulatory reforms, risk management, and digital transformation aligns with global best practices. However, the effectiveness of these measures will depend on the CBI's ability to execute the strategy and overcome potential obstacles, such as political instability and resource constraints.

Implications

The successful implementation of the roadmap is expected to have significant positive impacts on the Iraqi economy. It will not only contribute to financial stability but also promote economic growth by improving access to credit and enhancing the efficiency of financial services.

Conclusion

The Central Bank of Iraq's roadmap for financial sustainability in the banking sector is a bold step towards modernizing and stabilizing the financial system. By addressing key challenges and leveraging digital innovations, the CBI is poised to create a more resilient and inclusive banking sector that can support Iraq's economic development. Note:* This summary is based on the content retrieved from the Central Bank of Iraq's website and aims to provide a concise overview of the strategic roadmap for financial sustainability in the Iraqi banking sector.

LATEST FROM WOLVERINE, 22 AUGUST

WOLVERINE

Wed. 21 Aug. 2024 Wolverine

“I told you today was going to be an exciting day. People I am close to, people I know received their notifications today.” (It is Thurs. 22 Aug. in Australia where Wolverine is).

----

WOLVERINE

Sat. 17 Aug. 2024 Wolverine

“It’s all coming through this next week. Exciting things have happened, but I’m not allowed to say what. People are expecting something Sun. night 18 Aug. Just to let you know guys is to get ready. I’m sorry that I can’t say anything as everyone is under total NDA now and soon I will be as well. That opera will be release any day now.

Thank you for all the support you have all given me as this is one of the most hardest things that I have done in my life as it has control our way of life for years and played with our emotions. We have seen so many of our compatriots that did not make it and thankfully their family will cross the finish line for them.

During this journey I never thought that I was going to be attacked viciously and even to this day the attacks are still continuing. I know within my heart that I’m doing God’s work and that too many of you are suffering and you need hope and a messenger to know what is going on.

As soon as I’m under NDA you won’t hear from me anymore but my job has been completed and I can leave with good conscience that I have done everything possible to help you. The opera will be release once I receive the green light.

Don’t forget the Get Together in February 2025 here in Sydney as we are planning to have the biggest party that Sydney has ever held with all these patriots coming from so many countries. Remember that it’s going to be a gala night and so wear your best clothes everyone.

I’ll let you all know the day and the address of the Get Together.

Love you all. Your friend Wolverine.”

https://dinarevaluation.blogspot.com/2024/08/latest-from-wolverine-19-august.html

MILITIAMAN: IQD Update - Iraqi Dinar News - FED Court Reject Appeal - WTO - Purchase...

DINAR REVALUATION UPDATE: "THE 3 ZEROS WILL COEXIST FOR 10 YEARS", 22 AUGUST

Walkingstick

[Aki Iraqi bank friend who runs a bank in Michigan]

Question: "Have you heard the three zeros will coexist for ten year?"

Yes, we have heard about it but we did not hear the number 10.

We heard that it would be over a long period of time.

Duel pricing in the market would be controlled easier.

Also, it would give the CBI longer time frame to collect the citizens 3 zero notes.

https://dinarevaluation.blogspot.com/2024/08/walkingstick-intel-have-you-heard-three.html

----

Iraqi Central Bank's plan regarding the "three zeros" currency reform

This often involves removing or replacing the three zeros from the currency to help stabilize the economy and simplify transactions.

The number 10 years you mentioned might be specific to the timeline for the coexistence of the old and new currency or the transition period. This kind of reform typically involves a long transition phase to ensure that the economy adjusts smoothly, and that people and businesses adapt to the new currency.

The goal is to manage dual pricing more effectively, which can be challenging when both old and new currencies are in circulation. The Central Bank of Iraq (CBI) would indeed need this extended timeframe to ensure that they can collect and replace the old three-zero notes from circulation and control the overall impact of the currency change on the economy.

Removing zeros from a currency, often referred to as "redenomination," involves adjusting the nominal value of the currency. For the Iraqi dinar, this would mean replacing the existing notes with new ones that have fewer zeros. Here’s a detailed look at what this process typically involves and its implications:

What It Is:

Currency Redenomination:
- Definition: Redenomination involves changing the face value of a currency by removing a set number of zeros. For example, if the Iraqi dinar were redenominated from 1,000 dinars to 1 dinar, the new currency would have a much lower nominal value but represent the same purchasing power.
New Currency Issue:
- Process: The Central Bank issues new banknotes and coins with adjusted values. The old currency remains in circulation for a transitional period to allow people and businesses to adapt.
Phased Transition:
- Implementation: There’s usually a transition period where both the old and new currencies are in use, allowing people to exchange old notes for new ones.

Implications:

Economic Impact:
- Inflation Control: Removing zeros is often a response to hyperinflation or very high inflation. By simplifying the currency, it can help stabilize the economy and restore confidence in the currency.
- Pricing and Accounting: Dual pricing systems become simpler as the currency’s value is more manageable, reducing the complexity of transactions and financial reporting.
Public and Business Adaptation:
- Awareness and Education: There needs to be extensive public education to help people understand the change and adapt to new pricing and accounting systems.
- Adjustment Period: Businesses must update their systems for pricing, accounting, and financial reporting. This transition might involve initial confusion and costs.
Central Bank Operations:
- Currency Collection: The Central Bank has to manage the process of withdrawing old notes from circulation and ensuring a smooth transition to the new currency.
- Long-Term Planning: The Central Bank must carefully manage the timing and implementation to ensure stability and avoid economic disruptions.
Psychological Effects:
- Public Perception: Currency redenomination can have psychological effects, impacting how people perceive the value of their money. It can either restore confidence or create uncertainty if not managed properly.
International Relations:
- Foreign Exchange: The redenomination might impact foreign exchange rates and international trade if the currency’s value changes significantly. Clear communication about the redenomination process can help mitigate negative impacts.

In summary, removing zeros from the Iraqi dinar aims to simplify transactions and manage inflation but requires careful planning and management to ensure a smooth transition and minimize economic disruption.

WALKINGSTICK INTEL: "Have you heard the three zeros will coexist for ten year?", 22 AUGUST

Walkingstick

[Aki Iraqi bank friend who runs a bank in Michigan]

Question: "Have you heard the three zeros will coexist for ten year?"

Yes, we have heard about it but we did not hear the number 10.

We heard that it would be over a long period of time.

Duel pricing in the market would be controlled easier.

Also, it would give the CBI longer time frame to collect the citizens 3 zero notes.

---

Walkingstick

[Iraqi Bank friend Aki in Michigan]

The monetary reform is very solid. Things are looking good... What happened with the CBI governor, he's not going anywhere.

The government can't fire Alaq in the same way Maliki fired the governor of the CBI Dr. Shabibi.

Maliki had no authority, he had no right to fire Dr. Shabibi.

Dr. Shabibi went and worked with the US Treasury to make sure the monetary reform plan was completed...

Walkingstick

[Iraqi Bank friend Aki in Michigan]

Question presented to Aki - Concerning the statement that was made by a representative of the WTO

[about Iraq launching a fully convertible currency in October

AKI: I didn't hear anything about October...

WALKINGSTICK: I would call it scuttlebutt because the interpreter was telling me that he says he's not sure about that...but he knows there are rumors out there about when this is going to happen.

AKI: I did hear about the WTO guy. Maybe he's talking about a new currency that would be convertible prior to October but there is no mention at the banks about October being the date. If anything I have heard it is before that.

-----

NADER FROM MID EAST: Iraq Pushes to Revitalize it's Economy with Renovating it's Industrial S...

Announcing the completion rates of the entrances to the immersed tunnel in the port of Faw, 22 AUGUST

Farhan Al-Fartousi, Director General of the General Company for Iraqi Ports, made the announcement on Wednesday that the Grand Faw Port’s submerged tunnel entrances from the sides of Umm Qasr and Faw have reached advanced completion rates.

“The ongoing work at the entrances to the submerged tunnel project, one of the projects of the Grand Faw Port, has witnessed advanced achievements, whether in the entrances to the submerged tunnel or in furnishing the submerged parts under sea water,” Al-Fartousi said in a statement.

He went on to say that “the approaches towards the city of Umm Qasr witnessed the completion of the burial work of (9) pieces completely underground, while the completion rate in the (19) open pieces reached (85%)” and that “the submerged tunnel consists of two main entrances, one towards the city of Umm Qasr and the other towards the city of Al-Faw, and each of these two entrances consists of (28) pieces that form the tunnel approaches.”

He went on to say: The approaches to Al-Faw’s entrance also consist of 28 pieces, of which nine are being buried underground with a completion rate of ninety percent and the remaining nineteen open pieces have exceeded a completion rate of fifty percent.

He noted that “according to these figures, it can be said that the completion rate in the approaches to the entrance to the city of Umm Qasr reached (90%), while the completion rate in the approaches to the entrance to the city of Al-Faw exceeded (60%).” Additionally, he noted that “the pieces submerged under sea water in the submerged tunnel project, amounting to (10) pieces, are currently witnessing work ” Painting with insulating and seawater-resistant materials, in addition to implementing.

He emphasized, “The immersed tunnel project is one of Faw Port’s five main projects, and it represents the main nerve linking Grand Faw Port and the Iraqi development road.” Special efforts are being made to finish it, making it the first of its kind in the Middle East and the second tunnel in Asia after the Busan tunnel in South Korea because of its strategic importance.