Saturday, August 24, 2024
DINAR REVALUATION UPDATE : THE Iraq's Financial Talks with the US Treasury and Federal Reserve in August 2024, 25 AUGUST
Iraq's Financial Talks with the US Treasury and Federal Reserve in August 2024
Iraq's efforts to address banking violations and dollar restriction issues have led to significant diplomatic engagements with the US Treasury and Federal Reserve.
In a strategic move, Iraq established a committee to tackle the ongoing challenges, demonstrating a proactive approach to resolving financial discrepancies with the United States.
Financial Coordination and Dialogue
The meetings, scheduled for the end of August 2024, are expected to cover a range of topics, including the status of Iraqi banks under US sanctions and the accumulated Iranian funds in Iraq.
These discussions aim to ease the tension caused by dollar shortages in Iraq, a situation exacerbated by increased scrutiny from the New York Fed on transfers to Iraqi banks.
Iraqi Foreign Minister Fuad Hussein described the talks as "very useful," indicating the country's commitment to finding practical solutions.
The dialogue reflects Iraq's intention to resolve issues related to dollar restrictions, which have impacted the local economy, particularly following the Federal Reserve's measures that halted transactions from dollars to yuan, aimed at supporting Iraq's foreign trade.
Economic and Political Context
The ongoing talks occur against the backdrop of complex economic and political dynamics.
Iraq's Prime Minister Mohammed Shia al-Sudani's visit to the United States earlier in the year highlighted the country's desire for a more comprehensive relationship, encompassing economic, educational, and people-to-people domains.
The symbolism of this visit, from the timing to the size of the delegation, underlined Iraq's aspirations for a new chapter in bilateral relations.
Security concerns, particularly the presence of US troops and the Global Coalition to Defeat ISIS, have also been part of the dialogue.
The establishment of the Higher Military Commission in August 2023 aimed to assess the operational environment and capabilities of the Iraqi security forces, signaling a shift in focus from the anti-ISIS coalition to bilateral security relations.
Challenges and Opportunities
The talks in August 2024 represent a pivotal moment for Iraq's financial sector and its broader relationship with the United States.
Addressing dollar restrictions and banking violations could pave the way for improved economic stability and cooperation. However, the discussions are likely to be complex, given the intertwined economic, security, and political interests at play.
"NO THEY HAVE A LOT MORE THAN THAT!!!" BY FRANK26, 26 AUGUST
KTFA
FRANK26: "NO THEY HAVE A LOT MORE THAN THAT!!!"...........F26
More than 100 tons.. Iraq is the ninth largest buyer of gold in 2024
8/24/2024
Economy
Iraq ranked ninth globally among the top 10 countries buying gold this year. What is meant by gold is converting foreign currency reserves into gold, not the gold of goldsmiths and citizens.
This comes as the precious metal hit an all-time high of $2,531.75 an ounce after breaking above $2,500 for the first time this month amid growing expectations that the Federal Reserve is close to cutting interest rates.
Bullion typically benefits from low interest rates, and central banks hold gold reserves because of its strong collateral, liquidity and yield properties.
ANALYSIS OF IRAQ NEWS BY MILITIAMAN, 25 AUGUST
Militia Man
Article Quote: "Alaq confirmed... there will be meetings held with the Federal bank and US Treasury at the end of this August"
What's the date today?
It's not far off. The last meeting he had was unannounced...I think him coming back to the Untied States, he's probably going to bring something he should have had done a long time ago.
Article: "Iraq is heading towards printing new paper currency"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.
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Added 2024/08/24 – 12:59 PM
