Helpful conversation in GLL Chat - Topic: Iraq Financial Reforms - Q & A
💢Member - Q: I'm thinking RI first, then RV. Reinstatement is the removal of a sanctioned event.
Once Reinstatement occurs it can benefit from the RV or gold backing.
My contacts in Iraq are familiar with RV, but RI is independent or an apple to orange comparison regarding RV as they truly are different events.
Your thoughts on this my dear Ginger? And I'm glad you are feeling better.
💢Ginger: A: They happen at the same time. Like two legs of your underpants ⤵️
Gotta put one leg in at the same time or else ya can't go anywhere without showing errybody what the good Lord gave ya. Can't have the kibbles and bits all out there.... Same with IRAQ. They remain undone and indecent 😛🤣😂 until RI RV occur simultaneously
Hope this makes sense....
Yeah, I know, I know 😛😁 I come up with the goofiest stuff sometimes 😉🤣
In the midst of ongoing challenges and in the shadow of a tumultuous history, Iraq stands at a critical juncture, with its economy in need of significant revival.
As of August 25, 2024, the mechanisms for economic rejuvenation are multifaceted and require a concerted effort from both domestic and international stakeholders.
Key Challenges and Opportunities
Corruption and Governance
Corruption remains a pervasive issue in Iraq, undermining the rule of law and hindering economic progress. The lack of basic services and the feeble state of the private sector and foreign direct investments (FDIs) underscore the depth of the challenge.
Security and Stability
Security threats, including the remnants of the Islamic State (IS) and the actions of the Popular Mobilization Forces (PMF), pose significant risks to Iraq's stability. These threats not only hinder daily life but also discourage investment and economic activity.script async="" crossorigin="anonymous" src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-6009082504355829">
Diversification and Modernization
Iraq's economy, heavily reliant on oil, faces challenges in diversifying and modernizing its financial and banking sectors. This lack of diversification limits the country's export capacity, particularly in agricultural products.
Education and Human Capital
Investing in education is critical for Iraq's long-term economic revival. With a young population that represents both an opportunity and a challenge, improving the education system is essential to meet labor market needs and reduce unemployment.
Revival Strategies
Fiscal and Monetary Policy
The International Monetary Fund (IMF) has highlighted the need for sound macroeconomic policies to secure fiscal and debt sustainability. The large fiscal expansion initiated in 2023, while boosting short-term growth, must be balanced with measures to address fiscal and external imbalances.
Private Sector and FDI Enhancement
Strengthening the private sector and attracting foreign direct investment is crucial. This involves creating a more conducive business environment, improving the legal and regulatory frameworks, and addressing corruption.
Education and Skills Development
Education reforms are necessary to meet the needs of the labor market. This includes investing in vocational training, improving the quality of education, and aligning educational outcomes with economic demands.
Infrastructure Investment
Rebuilding and expanding Iraq's infrastructure is essential for economic growth. This includes repairing damage from conflicts, upgrading transportation networks, and enhancing energy and telecommunications infrastructure.
Regional and International Cooperation
Iraq must deepen its engagement with regional and international partners. This includes participating in trade agreements, attracting foreign investment, and collaborating on security and stability initiatives.
Conclusion
Reviving Iraq's economy in 2024 and beyond requires a comprehensive approach that addresses corruption, diversifies the economy, and invests in human capital. By implementing sound fiscal and monetary policies, strengthening the private sector, and enhancing education and infrastructure, Iraq can lay the groundwork for sustainable and inclusive growth.
Economist Talks About The Mechanism For Reviving The Iraqi Economy
Economy | 08/24/2024 Mawazine News – Baghdad Economic expert Mustafa Hantoush said today: "What the Central Bank of Iraq is doing by empowering foreign banks or foreign investors at the expense of the Iraqi banking system is a fatal blow to future opportunities to advance the Iraqi economy through the banking system."
According to his statement to Mawazine News Agency, the expert Hantoush described the experiences of foreign banks or foreign investors who own national banks as failed experiments, pointing out that they have caused financial disasters for many countries.
The economic expert explained: "Most countries in the world give a very specific percentage to foreign investors in the banking sector in order to preserve capital and profits as an economic cycle within the country https://www.mawazin.net/Details.aspx?jimare=253831
💢 Fabulous conversation in the Liberty Lounge Chat, per the usual. 😁⬇️ Liberty Loungers Extraordinaire, Zachaeus Shaw and Plato (Air Force Active duty & former ARMY - career military) added helpful update pertaining to Heightened Alert Levels. 8.24.24
💢 Zachaeus: For those of you who believe in such things - I believe it was, before the RFK speech, I noticed my personal angelic attendants walking around with drawn swords in their hands. I asked, "What's going on?"script async="" crossorigin="anonymous" src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-6009082504355829">
"We're all on alert right now," I was told.
💢Plato: At work yesterday (Air Force base) we were told to enjoy the weekend cuz it might be last we get off for a while. So even the conventional military is feeling it.
As of August 25, 2024, Iraq has established itself as a significant player in the global gold market, ranking ninth among the top countries purchasing gold this year.
Iraq's Gold Market Dynamics
Iraq's appetite for gold has been on the rise, with the country acquiring over 100 tons of the precious metal in 2024. This surge in purchases has positioned Iraq as the ninth largest buyer globally, a notable development in the context of escalating geopolitical tensions and economic volatility.
Factors Influencing Gold Purchases
The increasing interest in gold can be attributed to several factors. Central banks, including Iraq's, are converting foreign currency reserves into gold, a strategy that underscores the metal's role as a safe haven asset and its importance as a store of value.
This trend is further amplified by the current economic landscape, with growing expectations of interest rate cuts by the Federal Reserve.
Global Context
Iraq's gold buying spree is part of a broader global trend. In 2024, central banks around the world have been increasing their gold reserves, with Russia leading the pack by acquiring 1,298 tons.
This surge in demand has contributed to gold prices reaching record highs, with the precious metal hitting $2,531.75 per ounce.
Gold as a Strategic Asset
The strategic importance of gold for central banks like Iraq's cannot be overstated. Gold is valued for its robust collateral, liquidity, and yield properties, making it an essential component of foreign currency reserves. As global economies navigate through uncertain times, the appeal of gold as a hedge against inflation and a safe haven during market turbulence remains strong.
Impact on Iraq's Economy
Iraq's substantial gold purchases have implications for its economy. By diversifying its reserves with gold, Iraq is positioning itself to better withstand economic shocks and maintain financial stability. This move also reflects a broader strategy to reduce dependency on oil exports, which have historically dominated Iraq's economy.
Conclusion
Iraq's emergence as the ninth largest buyer of gold in 2024 underscores the metal's enduring appeal as a global asset. As central banks worldwide continue to fortify their reserves with gold, Iraq's strategic acquisitions signal a proactive approach to economic resilience and diversification.