DINAR REVALUATION UPDATE: CBI & OLIVER WYMAN INTERNATIONAL ARE DEVELOPING A PLAN FOR RESTRUCTURE THE PRIVATE BANKING SECTOR IN IRAQ, 24 AUGUST

 Iraq and America Resume Negotiations on Banking Sector in August 2024

Negotiations between Iraq and the United States regarding the banking sector are set to resume on August 26, 2024. 

 A delegation from the Central Bank of Iraq will travel to the United States to engage in discussions aimed at addressing issues in the banking sector. The talks are crucial for Iraq's economic stability and the future of its private banking institutions.

Background and Objectives

The delegation's visit to America is part of Iraq's efforts to reform its private banking sector. 

 The Central Bank of Iraq has contracted with Oliver Wyman International to develop a plan for restructuring the sector over the next six months. 

This plan may include the merger of some banks or the revocation of licenses for others, reflecting the Iraqi government's commitment to improving the efficiency and stability of its financial system.

Ongoing Talks and Challenges

Iraq has been in ongoing talks with the US Treasury regarding dollar restrictions and sanctions on Iraqi banks. 

Iraqi Foreign Minister Fuad Hussein has described these discussions as "very useful," indicating that they will continue to address pressing issues such as the list of Iraqi banks under US sanctions and the status of Iranian funds in Iraq. 

 The talks are seen as a significant step toward resolving the challenges facing Iraq's banking sector, particularly in light of the dollar shortages experienced last year after increased scrutiny by the New York Fed. 

Significance of the Talks

The negotiations are crucial for Iraq, as they aim to address the restrictions on dollar transactions and the impact of sanctions on its banking sector. 

Resolving these issues would not only stabilize Iraq's financial system but also improve its global economic relations.

 Moreover, the talks signify a collaborative effort between Iraq and the US to foster better economic ties and address mutual concerns in the banking sector.

Iraq and America resume negotiations on banking sector next Monday, 24 AUGUST

 Economy News – Baghdad

A delegation from the Central Bank of Iraq travels to the United States of America to resume negotiations on the banking sector.

A source familiar with the Economy News told “Economy News” that a delegation from the Central Bank of Iraq will start its negotiations with the US side on the current 26th of Aug, in America.

He added that the central bank has moved to sign a contract with Oliver Wyman International to present a plan on reforming the private banking sector, over the next six months.

He pointed out that the plan proposed to be submitted includes the merger of some banks or the cancellation of the license of some banks.

---

43 views

Added 2024/08/24 – 12:59 PM

https://economy-news.net/content.php?id=46669

WHAT WILL HAPPEN ONCE THE IRAQI DINAR IS RELEASED UPON THE WORLD BY ARIEL, 24 AUGUST

 ARIEL

Now you all have to factor in all the money that will be coming in once the Iraqi Dinar is released upon the world.

 Because I have always told you all that this will permanently put you on the new timeline where poverty will be nonexistent. 

And that everything you could possibly want will be provided because we are going back to the 1955 prices. 

As I have already told you all 44 states have already made precious metals legal tender. 

So this means taxes by default will be a thing of the past because you will no longer be purchasing things with the Federal Reserve Notes that allows you to be subject to the rules of the old system has caused endless poverty. This is why things like Basel 3/4 are important because it will end the HOA monopoly on homeownership policies. 

The gold standard alone can do that without it.

 Anyway there's a lot I can say but you get the picture.

PATREON DINAR INVESTOR: CRITCAL ARTICLE

DINAR REVALUATION UPDATE: Understanding the Rise in Foreign Dollar Remittances in Iraq and Its Economic Impact in 2024, 24 AUGUST

 Understanding the Rise in Foreign Dollar Remittances in Iraq and Its Economic Impact in 2024

In 2024, Iraq has seen a significant increase in foreign dollar remittances, a trend that has caught the attention of economists and policymakers alike . 

According to Mazhar Muhammad Saleh, the financial advisor to the Prime Minister, this increase is a direct result of a policy shift by the Central Bank of Iraq. 

The bank has altered its approach to foreign transfers and monetary market intervention, leading to a smoother and more flexible process for the private sector.

The Policy Shift and Its Effects

Saleh attributes the rise in foreign currency remittances to the Central Bank's decision to change its financing mechanisms for foreign trade for the private sector . 

Previously, the compliance platform rejected nearly 85% of foreign transfer requests, creating a bottleneck for businesses.

 However, the bank's new policy of strengthening the accounts of correspondents of Iraqi banks abroad has facilitated a more straightforward and efficient process.

 This change has enabled a high rate of daily foreign transfer requests to be processed directly through foreign correspondent banks, without the need for the compliance platform.

The impact of this shift has been positive on the national economy, particularly in stabilizing the supply and demand dynamics within the country. 

The increased flexibility in foreign currency transactions has helped in maintaining the stability of economic functions, supporting both the supply and demand sides of the market [6].

The Role of Foreign Remittances in Iraq's Economy

Foreign remittances play a crucial role in the economy of many developing countries, including Iraq [4]. These transfers of money by workers abroad to their families and communities back home have been growing rapidly and now represent a significant source of foreign income for Iraq. While the exact size of remittance flows can be difficult to estimate due to unofficial channels, the recorded international migrant remittances to developing countries are substantial [4].

In Iraq, the rise in foreign dollar remittances has a direct impact on the national economy. The ease of foreign transfers has not only stabilized the supply and demand functions but also contributed to economic growth and development. The increased liquidity and financial stability provided by these remittances can be used for investments, consumption, and other economic activities, which in turn can stimulate the economy [6].

Challenges and Opportunities

Despite the positive effects, Iraq faces challenges in managing the increased inflow of foreign remittances. Ensuring that these funds are used productively and contribute to sustainable economic growth is crucial. The government's strategy revolves around diversification, reducing reliance on oil revenues, and fostering partnerships to drive sustainable growth [5].

As Iraq moves towards a new era of development under Prime Minister Mohammed Shia' Al Sudani [5], the role of foreign remittances in the national economy becomes even more significant. The government is exploring public-private partnerships (PPPs) to finance major development projects over the next two years, which could be facilitated by the increased availability of foreign currency [5].

Conclusion

The rise in foreign dollar remittances in Iraq is a result of a strategic policy shift by the Central Bank. 

This change has had a positive impact on the national economy, contributing to stability and growth. 

However, managing these funds effectively and ensuring they contribute to sustainable development remains a critical challenge for the Iraqi government.

Saleh explains why the dollar’s foreign remittances are so high and their impact on the national economy, 24 AUGUST

 Saleh told {Euphrates News}

 that “the phenomenon of the increase in sales of foreign transfers from foreign exchange is due to the results of the important change that took place in the policy of the Central Bank of Iraq in dealing with foreign transfer and interfering in the monetary market through the shift in foreign trade financing mechanisms for the private sector from a compliance platform to new mechanisms represented in strengthening the accounts of correspondents of Iraqi banks abroad with foreign exchange at deliberate and sufficient levels commensurate with the requirements of financing foreign trade for the private sector of foreign exchange.”

He added, “After the compliance platform previously refused during the past months about 85% of external transfer requests, the policy of strengthening the accounts of Iraqi banks with their correspondents from sober international banks, became as an alternative policy, which is easy, easy and flexible,

 which made the implementation of daily external transfer requests available and achieved through foreign correspondent banks directly without passing through the platform and with a high percentage of 85% of the total demand for those daily external transfers.”

Saleh explained, “This high change in the flexibility of transfers has reflected positively on the national economy, especially in the stability of the total supply and demand functions within the national economy in two directions, the first of which is {supply side},

 represented by the availability of a wide commodity and service supply in the local market through flexible imports funded at the fixed official exchange rate of 1320 dinars per dollar.”

He explained, “The other trend is {the demand side}, which refers to the process of exchanging the Iraqi dinar to dollars for the purposes of financing foreign trade through the aforementioned transfers, which means that meeting the demand for the dollar represents a direct meeting of the demand for (foreign goods, services and benefits) for the benefit of the local market.”

He pointed out that “meeting the demand for foreign currency is an important pillar of the monetary policy of the Central Bank of Iraq, and achieving its operational objectives in addressing and controlling the excess domestic liquidity levels of the dinar, which constitutes the so-called {overcemand}. This control of local liquidity also represents a positive intervention of the Central Bank’s monetary policy in the cash market and control of the levels of that liquidity.”

Saleh continued, “This control leaves its positive effects in achieving a balance between the real current in the macroeconomic of goods, services and benefits and the monetary current within the economy itself,” noting that “such a balance between supply and demand achieves stability in the general level of prices and is the growth levels of inflation rates, which is reflected positively on the stability of the purchasing power of the dinar and the general monetary income.”

Raghid
 

https://alforatnews.iq/news/صالح-يوضح-سبب-ارتفاع-حوالات-الدولار-الخارجية-وانعكاسها-على-الاقتصاد-الوطني

MILITIAMAN: IQD Update - Iraq Dinar News - #iraqidinar #iraqidinarexchangerate USA /...