DINAR REVALUATION : AN OVERVIEW ABOUT Alaq Confirming the Coexistence of Three Zero Notes for a Decade, 22 AUGUST

Alaq Confirms Coexistence of Three Zero Notes for a Decade

As of August 22, 2024, Alaq, a significant figure in the Iraqi financial landscape, has confirmed that three zero notes will continue to coexist within the Iraqi monetary system for the next ten years. 2  This announcement addresses the ongoing concern regarding the deletion of zeros from the Iraqi currency, a process that has been both anticipated and debated among economists and the public alike.

Historical Context and Financial Strategy

The decision to allow the coexistence of the three zero notes stems from a broader financial strategy aimed at stabilizing the Iraqi economy. In the face of fluctuating oil prices and the aftermath of conflict, the Central Bank of Iraq has been working on various measures to improve economic conditions and enhance the value of the Iraqi dinar. 2

Reasons for the Coexistence

The rationale behind Alaq's confirmation is multifaceted. Economic experts suggest that the immediate removal of the zero notes could lead to logistical challenges and potential economic disruptions. 2 By allowing a gradual transition, the Iraqi government aims to minimize these risks while implementing necessary structural reforms.

Public and Market Reactions

Impact on the Iraqi Public

For the Iraqi public, the confirmation that three zero notes will coexist for a decade brings a sense of relief and certainty. It ensures that the immediate economic impact on everyday transactions will be minimal. 2

Market Stability

From a market perspective, the confirmation is viewed as a stabilizing factor. It provides businesses and investors with a predictable timeline for adjusting to the eventual removal of the zero notes. 2

Implications for Investors

Outlook for Investors

For investors in the Iraqi dinar, Alaq's confirmation signals a cautious optimism. The ten-year coexistence period offers a timeframe for planning and adjusting strategies based on the expected changes in the currency's value. 3

Investment Strategies

Investors are encouraged to keep abreast of developments in the Iraqi economy and to consider the long-term implications of the coexistence of zero notes. Strategies should factor in the potential for a stronger dinar and the gradual elimination of the three zero notes. 3

Conclusion

Alaq's confirmation regarding the coexistence of three zero notes for a decade marks a pivotal moment in Iraq's financial strategy. It is a decision aimed at promoting economic stability and gradual reform. For the Iraqi public and investors alike, this confirmation provides a clear path forward and a timeframe for adaptation to the evolving monetary landscape.

IRAQ'S CURRENCY REFORM : DELETING ZEROS IN 2024

DINAR REVALUATION UPDATE : AN OVERVIEW OF IRAQ'S CURRENCY REFORM : THE RETURN OF THE DELETE OF ZEROS IN 2024, 22 AUGUST

Iraq's Currency Reform: The Return of the Delete of Zeros in 2024

In August 2024, discussions regarding the deletion of zeros from Iraq's national currency, the dinar, have resurfaced, stirring debates across economic circles. 1 The proposition to remove three zeros from the Iraqi dinar is not a novel idea but one that has been considered in the context of broader economic reforms aimed at stabilizing the currency and boosting public confidence. 2

Objectives Behind the Deletion of Zeros

The move to delete zeros from the national currency is primarily aimed at addressing technical and operational challenges caused by the use of large denominations. This includes reducing the costs associated with the issuance and handling of banknotes, streamlining automated teller machine (ATM) operations, and simplifying banking transactions for the general public. 2

Realistic Expectations and Challenges

While removing zeros from the currency can have psychological benefits and potentially increase foreign investment in the country, it is not a panacea for inflation. As noted by economists, the impact of such a measure is limited to psychological effects unless accompanied by a series of comprehensive economic reforms. 2 These reforms should include restrictive measures such as effective monetary policies and fiscal discipline from the government.

Lessons from Other Countries

To ensure the success of the zero deletion project, Iraq could learn from the experiences of other countries that have embarked on similar currency reforms. The Turkish case is often cited as a successful example of changing national currency policies, where the reform was part of a broader strategy that included substantial policy changes and social reforms. 

Potential Impact on Economic Indicatrs

Removing zeros from the currency does not directly impact economic indicators such as demand and supply parity. Its influence is largely restricted to psychological effects on the society. Without accompanying economic reforms, these psychological benefits could be short-lived. 

Implementation Concerns and Timing

Implementation of the zero deletion project requires careful planning to avoid economic disruptions. Challenges include the printing of new currency, updating accounting systems, and training the public on how to use the new currency.  2The timing of the project is also crucial; it may have been delayed due to Iraq's political and security situation. 3

International Monetary Fund (IMF) Perspective

In their 2024 Article IV Mission to Iraq, the IMF highlighted the need for reducing oil dependence and ensuring fiscal sustainability through significant fiscal adjustment. This adjustment should focus on controlling the public wage bill and increasing non-oil tax revenues. 4 The IMF also emphasized the importance of enabling private sector development and modernizing the financial sector.

Academic Perspective

Academic research supports the notion that deleting zeros from the Iraqi currency, or redenomination, is a viable reform. However, its success hinges on the presence of the necessary will from authorities and choosing the right timing. 5

Coffee with MarkZ. 08/22/2024

Thank you MarkZ for all your time, and encouragement daily….. PDK

MarkZ  Update- Some highlights by PDK-Not verbatim

MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context.  Be sure to consult a professional for any financial decisions

Member: Good Morning fellow RV’ers and welcome bank MarkZ!!!!

Member: Thanks to Zester for filling in…..he did an amazing job. 

Member: Hope everyone is feeling good this morning. It could be a golden day!

Member: How are you feeling Mark?

MZ: My back feels like swiss cheese …Yesterday was a tough travel day but better than I thought it would be. 

Member: Mark, did you bring the RV back with you?

Member: Mark do you think August is still in play??

Member: In Iraq- just how long is " in the coming days?"  lol

MZ: Lots of people preparing…but noone sitting around with cash in their pockets…yet. Lots of rumors of people being paid….

​​Member: I bet the bond people are ready to pull their hair out!!

Member: Tier4B was said to go only days after the bonds. Hope that still hold true!

Member: Mel in Australia says 48,000 Farm Claims have been paid with a 2.2 Billion fund?

MZ: I am real comfortable saying we have real measurable movement with farm claims. That should get you warm and fuzzy about the historic importance of this. This is from the original Pigford farm claims. I am sure you all have seen the article over the last few weeks that the  “Farmers who faced USDA discrimination received historic $2B payout”  

 https://www.agriculturedive.com/news/usda-black-minority-farmers-discrimination-payments/723051/

MZ: I have 2 other farm claim recipients who have checked in and they have also received “chunks” or their payout. Just not the full payout yet. 

MZ: My understanding is Pigford farm claims first…than the original 14 claims….of which 2 people have checked in telling me they do have money…not everything but a “chunk” ….So for me it is well underway and happening. The question is when will the “rank and file” of the bond world get paid???

MZ: The bond market appears to be on hold right now. But still lots of expectations for this week. I hope it is accurate. 

Member: We are running out of week right now. 

Member: Mark—even when the bond people go, could they even tell you? I think we are just going to sit here and be surprised someday. No warning.

Member: what about the Iraq parliament reps that got caught changing budget numbers

MZ: IMO this may be part of the dog and pony show. 

Member: Militiaman said another meeting in US with US Treasury at end of month, I think anytime after that time

Member: Hearing that on October 24,2024 will be a hearing on currency exchange. 

Member: October 18th IRS proposed regulation to classify foreign currency held to a “Mark to Market” valuation? (ie. all currency will be taxed @ current value)

Member: Maybe Powell will bring down the market tomorrow at the Jackson Hole meeting

Member: Breaking right now in Australia Mark :) Chaos as thousands of Aussies are locked out of their bank accounts due to tech outage

MZ: “Macy’s and Target gives cautious sales forecasts suggesting consumer spending slowdown” We already know this…We are living it. 

Member: I feel like the rv is on jack stands, shifting gears but going no where

​​Member: hearing things are very, very close

Member: I think there will be a financial shut down before they RV officially…but who knows”

Member: Thank you MarkZ, Mods, & all hopeful Patriots that are making positive changes that move us ever forward toward the RV

Member: Everyone have a wonderful day …and keep those thoughts positive. 

THE CONTENT IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY&NOT INTENDED TO PROVIDE ANY PROFESSIONAL, FINANCIAL OR LEGAL ADVICE. PLEASE CONSIDER EVERYTHING DISCUSSED IN MARKZ’S OPINION ONLY

IRAQ IS WEIGHING CHANGE THE OFFICIAL RATE OF THE IQD TO $1.32 USD BY GOLDILOCKS, 22 AUGUST

 GOLDILOCKS

"The Iraqi government is currently weighing the question of changing the currency so that the official cost of a US dollar will be 1.32 Iraqi dinars instead of 1,320 dinars. Implementing such a decision is likely to significantly increase Al Sudani’s popularity."

This decision is currently shrouded in political conflict, this is seen as a move to gain popularity by many in the region of Iraq. 

Although this is going to be a reality due to many of the changes in their monetary policies, there are those who still do not want any changes to Iraq's currency. 

The important thing to note in this article is that a rate is being considered. It is also needed due to more countries getting involved in their economy that will require them to raise their current Dinar rate to level the playing field in trade. 

If you look closer at the numbers written into this article, you will notice that the first move on the Dinar would be to drop the three zeros. It makes things very clear what they mean by such a change in their rate. 

Meanwhile, Iraq has agreed to implement their economic reforms this year. They are working with the IMF in this process.

© Goldilocks 

https://www.jpost.com/middle-east/article-791161

AN OVERVIEW OF THE IRAQ'S ROADMAP FOR FINANCIAL SUSTAINABILITY IN THE IR...

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.