WE’RE A GREAT PEOPLE…A people of politeness and hospitality. Our DNA as a people is excellent. We are blessed with many endowments. If we could just get our politics right and get our nation to be born again.
We have everything. We have a unique God-given gift of resources-the human resources, the natural resources, the material resources and the
spiritual resources. #JustImagine If we could come together, pull together and walk together, the world will see a WINNING NATION and SHINING COUNTRY on the African continent and beyond. Blessed Friday
#JustImagine#NewDawn#Godisinit
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This is the latest update we can find from Nelson Chanisa concerning Zimbabwe. Nothing official has come out yet regarding the elections. As soon as it’s official, we’ll let you know accordingly. 👆🏻👆🏻
Resolving the Dilemma of Banks "Deprived of the Dollar": The Relationship with Washington in 2024
In the realm of global finance and international relations, the phrase "banks deprived of the dollar" often conjures up images of financial institutions facing restrictions or sanctions that limit their access to the United States' financial system. This situation can arise due to various reasons, including regulatory non-compliance, sanctions imposed by the US government, or broader geopolitical tensions. As of August 25, 2024, the relationship between banks "deprived of the dollar" and Washington has been marked by ongoing negotiations and efforts to find a resolution.
The Impact of Being "Deprived of the Dollar"
For banks that are cut off from the US dollar, the consequences can be severe. Transactions in dollars, which are the backbone of global trade and finance, become significantly more complex and costly. This isolation can lead to a loss of business, reduced liquidity, and damaged reputations. Banks may also face challenges in maintaining correspondent banking relationships, which are essential for facilitating international payments.
Washington's Role
The US government, through its regulatory bodies and the Department of the Treasury, plays a pivotal role in enforcing sanctions and regulations that can affect banks' access to the dollar. In recent years, Washington has tightened its grip on financial institutions that violate sanctions, anti-money laundering (AML), and counter-terrorist financing (CTF) laws.
This has led to a heightened focus on compliance within the banking sector.
Resolving the Relationship: Current Efforts
As of 2024, efforts to mend the relationship between banks "deprived of the dollar" and Washington have been multifaceted. Banks are working to improve their compliance measures, often under the guidance of US regulators, to regain access to the US financial system. This involves significant investments in technology and personnel to enhance risk management and compliance frameworks.
Meanwhile, diplomatic channels are also active, with several countries engaging in dialogue with the US to address broader geopolitical concerns that have led to sanctions. These discussions aim to find common ground and create a more stable environment for international banking relations.
The Role of Alternative Currencies and De-Dollarization
In response to the challenges posed by reduced access to the US dollar, some countries and financial institutions have explored the use of alternative currencies in international trade and finance. This trend, known as de-dollarization, has gained momentum as countries seek to diversify their financial systems and reduce dependency on the US dollar.
De-dollarization efforts have been particularly evident in regions such as Southeast Asia, the Middle East, and Latin America, where countries are looking to develop local currency markets and strengthen regional financial cooperation.
The Future of the Relationship
The future of the relationship between banks "deprived of the dollar" and Washington will likely be shaped by several factors. These include the evolving global political landscape, the effectiveness of compliance measures implemented by affected banks, and the US government's stance on sanctions and international banking regulations.
As the world moves towards a potentially more multipolar economic order, with increased use of non-traditional reserve currencies and the development of digital financial technologies, the dynamics of the relationship will continue to evolve.
An official source at the Central Bank of Iraq revealed, on Sunday (August 25, 2024), the close visit of the bank’s governor Ali Al-Al-Alaq to the United States of America to resolve the file of Iraqi banks deprived of dollars.
The source told Baghdad Today that “at the end of this month, there will be an important visit of the Governor of the Central Bank of Iraq Ali Al-Alaq to New York City in the United States of America to hold several meetings with the US Federal Reserve and the US Treasury to discuss the file of Iraqi banks deprived of dealing in dollars, and the possibility of lifting this deprivation from them, as this negatively affected the Iraqi banking and financial reality.”
The source, who asked not to be named, said that “these Iraqi banks are not punished, but are only deprived of dealing in dollars, and the visit to Al-Alaq comes in order to lift that deprivation, as well as discuss protecting the Iraqi banking system and supporting its stability.”
It is noteworthy that the governor of the Central Bank of Iraq, Ali Al-Alaq, decided on Wednesday, (Aug. 7, 2024), the debate over the reconsideration of dollar exchange rates.
Al-Alaq said, in press statements, followed by “Baghdad today”: “There is no direction to reconsider the dollar exchange rates,” pointing out that “the Central Bank sells more than 250 million dollars daily at the official rate.”
He pointed out that “the bank covers the requirements of foreign trade and some do not want fundamentalist methods,” noting that “the view that the dollar price has risen or fallen is not a true indicator.”
“The success of the central bank in controlling inflation compared to other countries,” he stressed, adding, “We will reach 100 percent of foreign transfers without going through the US federal at the end of this year.”
He stressed, “The financial situation in Iraq is still going within what is planned in the general budget of the state,” noting that “for the first time, by virtue of the new budget and financial management law, the allocations of the provinces and ministries are rotated.”
“The Central Bank is in the process of major transformation by reorganizing foreign trade, and our foreign trade measures are being conducted for the first time with the involvement of international institutions,” Al-Alaq said.
“There are small traders outside the system that are putting pressure on the market and is about to launch a mechanism to regulate their trade, and we focus on getting everyone involved in sound fundamentalist channels,” he continued.
He revealed that “the central bank has opened channels for Chinese, Turkish, Indian and Emirati currencies,” announcing, “the imminent launch of a new audit mechanism for foreign exchange trade.”
He stressed that “all commercial external transfers are subject to review by the competent international company,” revealing “meetings in New York at the end of August to discuss the lifting of sanctions on banks and review the transfers.”
Al-Alaq explained, “The dollar is not granted to the traveler until after the departure seal,” noting that “the new mechanism ensures the arrival of 100 percent dollars for the traveler and we started it in Baghdad and then Najaf, Basra, Erbil, Sulaimaniyah and Kirkuk.”
He added, “A government direction to increase capital support for the land bank and the housing fund by budget,” noting that “the bank’s initiatives have an exceptional role in trying to fill the deficit on the subject of housing.”
The Governor of the Central Bank announced that “the capital increase paragraph of the the Land Bank and the Budget Housing Fund has not yet been implemented, and we do not want the bank’s financing to be a substitute for the investor’s obligations,” noting “the real estate bank’s guidance to finance complexes with completion rates of 80 to 90 percent.”
They're making nothing but money off their oil, but they're also making nothing but money off their non-oil revenue streams.
Now it's a totally different ball game.
Back in the old days Iraq's valuation of $3.22 was based off oil. It wasn't on phosphates...sulfur...liquid natural gas...tax revenues...tourism. None of those.
Add all that in now into the exchange rate gives some support doesn't it.
You start thinking about it, wait a second, so why would you come back out at $3.22 again?
Good question. Will they? Don't know. Is it likely they will? I don't know. Why would it be any less than that?
Two officials disclosed on Tuesday that Iraq will increase the development of oil and gas reserves in the northern Iraqi governorate of Kirkuk and split earnings with British Petroleum (BP), a multinational oil and gas company with its headquarters in London.
With an end goal to draw in back unfamiliar oil organizations and speed up creation development, Iraq is moving to limit edge advancement contracts, as per Reuters.
The Iraqi government marked a Notice of Grasping (MoU) with BP toward the beginning of August to restore and foster four oil fields worked by the North Oil Organization (NOC) in Kirkuk.
The MoU was endorsed by the Iraqi Clergyman of Oil, Hayan Abdul-Ghani, and BP CEO, Murray Auchincloss, as per an assertion delivered by the Top state leader’s Office (PMO).
The Memorandum of Understanding is a component of the Iraqi government’s strategy to maximize energy sector investments to enhance and expand oil production, solar energy, and gas utilization in the region.
BP also suggests looking into potential investments in power generation and solar power facilities in the region as part of the MoU.
In mid-August, sources let Reuters know that Iraq is changing its way to deal with working with worldwide oil organizations without precedent for a long time with an end goal to bring more capital into the country’s hydrocarbon industry.
As a feature of the valuable fifth and 6th permitting adjusts started by the Iraqi government to expand the nation’s oil and gas creation, the Iraqi Service of Oil marked for this present month 13 primer arrangements to foster oil and gas investigation blocks and fields.
The Iraqi Oil Service offered oil companies benefit imparting agreements to preferable circumstances over specialized help contracts.
Iraq endeavors to draw in extra speculation by embracing benefit sharing agreements for the strengthening fifth and 6th permitting adjusts as opposed to putting together the concurrences with respect to specialized help conditions.
Creation sharing circumstances are expected to be more beneficial for unfamiliar organizations than conventional specialized help contracts, which pay a decent charge for each barrel of oil delivered in the wake of taking care of expenses.
