ANALYSIS OF IRAQ NEWS: WILL ALAQ SUCEED IN LIFTING THE BAN ON THE SANCTIONED IRAQI BANKS? BY MNT GOAT

 ANALYSIS OF IRAQ NEWS BY MNT GOAT

AL-ALAQ IN NEW YORK AT THE END OF AUGUST.. WILL HE SUCCEED IN LIFTING THE BAN ON THE SANCTIONED IRAQI BANKS?

Washington has sanctioned 32 banks over suspicions of money laundering and smuggling to Iran

The Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, intends to visit the US capital, Washington, at the end of this month to discuss lifting the ban on Iraqi banks sanctioned by the US Treasury Department, as well as enhancing bilateral cooperation between the monetary institution in Iraq and the US Federal Reserve.

Al-Alaq’s visit to Washington comes at a time when the gap between the official and black market rates for exchanging the dollar against the dinar continues, despite the measures taken by the Central Bank of Iraq over the past months, which it says “contributed to limiting its rise to double,” but it is not known whether the visit will witness success in lifting the ban or stabilizing the exchange rate.

“double penalties” 

The head of the Parliamentary Finance Committee, Atwan Al-Atwani, had previously confirmed that the fluctuation of the dollar exchange rate creates a state of economic and financial instability, especially with the widening gap between the official selling price of the dollar and the parallel market price. 

Al-Atwani said in a statement on the sidelines of his chairing of the committee meeting that hosted the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, to ​​discuss the monetary policy file in the country, that “the widening gap between the official selling price of the dollar and the parallel market price creates a state of economic and financial instability.”

He stressed that “the stability of the exchange rate is a central issue for the state, as there is a duality in the issue of imposing US sanctions between Iraqi banks and correspondent banks, which requires the management of the Central Bank of Iraq to move effectively and address this crisis, in addition to tightening control over the work of private banks, in a way that ensures the integrity of all their procedures and work.”

Visit to protect the Iraqi banking system

In contrast, the financial advisor to the Iraqi Prime Minister, Mazhar Mohammed Salih, said, “Historically, Iraq has kept its oil receipts account at the Federal Reserve Bank in New York, based on a previous UN Security Council Resolution No. 1483 in May 2003, in addition to the foreign currency reserve account in dollars.”

The US Federal Reserve is the main source of the dollar, meeting Iraq’s foreign trade financing needs and facilitating payments for international exchange between our country and the world, according to Saleh.

He continued in his statement to Al-Jabal: “Thus, the upcoming visit of the Governor of the Central Bank of Iraq, Ali Al-Alaq, to ​​New York City, USA, comes to protect the Iraqi banking system and support its stability after 32 banks were banned from dealing in the dollar currency by the monetary authority in the United States for unknown reasons.”

He added: “The Central Bank of Iraq, by virtue of its work and responsibility in maintaining the stability of the financial system of Iraq, must negotiate with the American side regarding the issue of banks that are sanctioned or deprived of the dollar to alleviate the severity of the deprivation in a way that enhances the effectiveness of the banking system in supporting development and economic activity,” noting that relations between Iraq and the United States are outlined by “the strategic framework agreement signed between the two countries in 2008 and are directed towards many axes that aim to sustain relations between the two parties and strengthen them for the benefit of our country, and that the economic axis and financial and banking cooperation is one of those axes that aim to deepen bilateral relations between the two parties.”

Banking sanctions ‘no longer justified‘

In turn, financial researcher Bassam Raad explained that the upcoming visit of the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, to ​​Washington has “positive effects and aims to achieve Iraq’s financial interests and obtain technical support in the banking field to ensure the success of the monetary policy plan by relying on authorized banks as correspondent banks in foreign transfer operations,” noting that the visit aims “to maintain a bilateral dialogue on possible measures for the purpose of lifting sanctions by the US Treasury Department on banks banned from dealing in the US dollar.”

He stressed in his statement to Al-Jabal that the banks that are banned from dealing in foreign currency (dollars) are currently committed to international standards for combating money laundering and are working to take due care in financial transactions, noting that accordingly, “the sanctions are unjustified, especially after the Middle East and North Africa Financial Action Task Force (MENAFATF) confirmed in May of this year that Iraq is one of the countries committed to the recommendations in the field of combating money laundering and terrorist financing.”

FIREFLY & FRANK26: THIS MEETING IN NY ..IT IS DEFINITELY PART OF THE MONETARY REFORM NEEDED TO BE ACCOMPLISHED TO RELEASE THE NEW EXCHANGE RATE OF IQD

 Frank26  

 [Iraq boots-on-the-ground report] 

  FIREFLY: Alaq in the United States of America means very little for us in the sense   of a rate change.  It is more for the banks to try to get their situation straightened out and no more sanctions.  

FRANK:  I agree to a certain point but I also disagree to another point.  

IMO this meeting in New York may not release a new exchange rate but it is definitely part of the monetary reform. 

  This meeting will accomplish steps that are necessary to release the new exchange rate.  

Your banks have to be stable and secure and free from the corruption of parliament and they must be ready for the new exchange rate.  That's what they're doing. 

CONDITIONS FOR REMOVING THREE ZEROS FROM THE DINAR : PROJECT DELETE ZERO...

ANALYSIS OF IRAQ NEWS: "STRONG ECONOMY STRONG DINAR" BY MNT GOAT, 31 AUGUST

 ANALYSIS OF IRAQ NEWS BY MNT GOAT

STRONG ECONOMY STRONG DINAR

Mohammed Saleh Al-Badrani

Any talk about improvement in any field is theoretical talk that will not produce anything unless stability, social cohesion and a stable security situation are achieved.

This matter requires attention to details and loose threads. Civilization needs foundations to be a platform for advancement, and stability is the basis. It is a general word that includes the societal structure, reform of institutions and administration, and the establishment of an ideology that everyone seeks to achieve through which plans are built, sectors are supported, and prosperity is one of its outcomes. This requires the advancement of education, support for general culture, and aspirations towards movement without obstructive limitations. Other than this, everything we say or will say becomes mere wishes and desires that have no means or institutions to achieve them .

Stability and the crystallization of the character of the state and its institutions will be built accordingly, and it is the same path of progress that expands and opens up the fields of renaissance by forming the nation and then by forming the stable state .

1.Relying on oil without investing it will not improve the economy or increase the strength of the dinar. Rather, it is an invisible deterioration, and everything that is treated with it is like wood dye that is eaten by termites. For this reason, oil and other resources such as customs revenues and taxes must be invested, not by increasing taxes and exhausting the citizen, but by making it flow in a way that makes the citizen comfortable, so that it is in harmony with the state and its plans and is part of its plan, and the state is not considered a feudal lord or a squire who wants to stray from its paths. 

(This is why Saleh keeps pushing for a Soveirgn fund for the Iraqi DFI Fund money that sits in the banks in the USA. It needs to be invested along with more future monies.)

2.Taking care of the countryside and returning people to it with plans, projects, industries and factories for agriculture and raising poultry, cows and sheep to produce meat and other things, with managing the land to grow fodder, and establishing fodder factories in strategic areas, and factories for animal products and canning them. As for the citizen’s return without a plan, it will be a matter whose feasibility will weaken unless capital enters from somewhere as capital for those who have money and find a way to operate it. This will be practical and realistic after stability .

3. Stopping government appointments with the absence of projects and the increase in colleges and universities means producing a cadre that is not good at taking care of itself or doing any work in order to live. It is necessary to establish private projects and companies and the state encourages their stability and facilitates their establishment with the establishment of a retirement guarantee similar to the state retirement system, and thus the momentum for work in government jobs is reduced. This may come through partnerships with companies in industrialized countries to localize major factories and food and mechanical industries such as cars and machinery and support them with oil at cost price, in exchange for social care supervised by the state and looked into by the state so that those who work in these companies, facilities or industries are not harmed if one of the companies decides to abandon work. This means establishing contract models that specify the workforce, job positions and expertise and developing them through continuous education 

Regional environment

4.Establishing interest-based relations with the regional environment, and establishing water agreements in a way that realistically looks at everyone’s interests, and through cooperation in water management, investment, and joint planning as management and facilities so that there is no clear gap between desires and reality, and between proposals that have not entered the logical filters, as climate change is likely and to a large extent, but its results cannot be determined, so confronting it today through projects that do not put the country in a state of death and are capable of supplying economic and human movement is very important 

.

5.Desalination of Gulf water and engineering its pumping so that it covers and revives every inch of Iraq, and the rapid transformation to modern and economic agriculture will reduce pollution.

The marshes will not be relied upon as water bodies, but rather as tourist investment areas such as winter resorts and fish farms, as is suitable for them.

The dinar and the economy need real work and confidence in the currency is confidence in the economy of the countries, which expresses confidence in the management of the country itself. What we write here is the salt in the perspective of the reality of the situation, so that the effort of the meetings is not wasted and becomes air in the net, as they say. It is certain that there are specialists in the country, but they should not look at the experiences of others and transfer them as templates. Capitalism is not a fragmentation system, but rather a system that built itself for hundreds of years until it settled in the situation we see, and those who live in it will not see it as an option. Likewise, socialist systems do not have direct scientific applications. We need to benefit from these systems in making a suitable system successful, as China did, which has a strong economy that does not look at the exchange rate of its currency, but is strong in its global dealings. Perhaps if the countries of the region united to create their own currency and trade, they would gain a position in managing the global economy. All of this requires effort and time, and before that, determination in understanding and preparation and a will to implement.

LATEST FROM MARKZ, 31 AUGUST

 MarkZ 

  [via PDK]   “Iraq’s Prime Minister Mohammad Shia Al Sudani chaired a meeting of the high committee for tax reform” 

 So when they reviewed it they found there was a 22 % growth in tax revenues. This means the economic reforms they are working on are working . This one is really big news.

 The chatter out of Iraq stays fantastic …we keep hearing stories about lower denominations in the streets but, people who are physically there say no - not yet…but that they are physically prepared for them ...There has been a grinding juggernaut of progress in Iraq. Things do continue to move.

 The silence in the news is eerie…It definitely feels like the calm before the storm...I’m still praying August is our month.  Most of what I am being told right now is to expect it anywhere from last Monday until September 4th- somewhere in there to see us actually with appointments…we will see...I think the quiet is purposeful. 

IRAQ'S INVESTMENT MAP/GUIDE 2024: YOUR ULTIMATE GUIDE!

DINAR REVALUATION REPORT: Iraq's Trade Exchange Development Path in 2024: A Qualitative Shift in Global Trade, 31 AUGUST

 Iraq's Trade Exchange Development Path in 2024: A Qualitative Shift in Global Trade

In the realm of international trade, Iraq has embarked on a transformative path that aims to redefine its global economic relationships and strengthen its trade exchange mechanisms. As of August 30, 2024, the country's strategic moves are underpinned by a commitment to modernization, transparency, and enhanced cooperation with international partners. 1

Digital Customs: A Game-Changer for Trade

A pivotal step in Iraq's trade development has been the adoption of digital customs processes through the ASYCUDAWorld software, which has been rolled out since 2023 with support from the United Nations Conference on Trade and Development (UNCTAD). This advanced digital platform has streamlined customs clearance, reduced fraud, and facilitated smoother cross-border transactions. 1 The implementation of ASYCUDAWorld has been particularly significant at Baghdad International Airport, where customs revenue surged by over 215% between January and May 2024, compared to the same period in 2023. Import transactions at this airport also witnessed a 120% increase in the first quarter of 2024, compared to the same quarter of 2023, marking a decade-high.

Enhancing Economic Stability and Diversification

The digital customs initiative is one facet of a broader strategy to stabilize and diversify Iraq's economy. The country has long been reliant on oil, which accounts for nearly all of its state revenue.  4 Recognizing the volatility of oil markets, Iraq is taking steps to strengthen other sectors and enhance its export capacity, particularly in agriculture. Despite challenges, including political dynamics that hinder economic diversification and financial sector modernization, efforts are underway to boost the private sector and attract foreign direct investments. 2

Bilateral Cooperation and International Engagement

Iraq's trade development strategy also emphasizes enhanced bilateral cooperation with key partners. The Iraqi Parliament's Finance Committee has highlighted the importance of strengthening ties with countries like Germany, focusing on areas such as the energy sector and financial systems to achieve sustainable development. 6 Political and security stability in Iraq has made it a more attractive destination for investment, with major international companies entering the market as a testament to this improved climate.

Toward a Qualitative Shift

The development path Iraq is following is expected to achieve a qualitative shift in its trade exchange with the world. By shortening transaction times and providing enhanced security through digital customs, Iraq aims to streamline its trade processes and improve its global economic standing. 6 The participation of European countries, including Germany, in Iraq's development path is a positive sign that the country's efforts are garnering international support and recognition.

In summary, Iraq's embrace of digital customs, efforts to diversify its economy, and focus on international cooperation are setting the stage for a transformative period in its global trade relationships. As of August 30, 2024, the country is poised to achieve a significant qualitative shift in its trade exchange mechanisms, enhancing its role in the international economic landscape.