Comment: ...13 Iraqi banks now trading international currency. MarkZ: I think that one is very important. They can now exchange back and forth in different currencies. The mechanism to exchange foreign currencies went live…I think this one is huge.
I did get an update this morning from a redemption center contact. They very much still expect to be called into work this weekend. Their chain of command said to expect to work before Tuesday. This is excellent news.
...my redemption folks...are on call…but they have been told to expect to work at some point over this long weekend. Since its Labor Day Weekend…This is unusual.
Central Bank of Iraq's High-Level Delegation Achieves Notable Outcomes in US Visit
On a mission to enhance Iraq's banking sector and strengthen international financial ties, the Central Bank of Iraq (CBI) dispatched a high-level delegation to the United States. The visit, spanning from August 26 to 29, 2024, was led by Governor Ali Mohsen Al-Alaq, accompanied by senior officials from the CBI.
Intensive Meetings and Strategic Engagements
During their stay in New York City, the delegation engaged in a series of intensive meetings with key entities in the US financial sector. These included the US Treasury Department, the Federal Reserve Bank, and prominent financial institutions such as Visa, Mastercard, and MoneyGram.
Discussions with US Treasury and Federal Reserve
The talks with the US Treasury Department and the Federal Reserve Bank centered on the evolving landscape of Iraq's banking industry. The CBI sought insights and guidance on regulatory frameworks and best practices to bolster the Iraqi banking sector's resilience and compliance with international standards.
Meetings with Financial Institutions and Auditing Firms
The delegation also convened with representatives from major banks such as Citi Bank and JP Morgan, as well as international auditing firms including KPMG, E&Y, K2i, and Oliver Wyman. These meetings aimed to explore opportunities for collaboration, improve financial oversight, and streamline processes for international transactions.
Major Transformations and Enhancements
The participants in the meetings lauded the significant progress made by the CBI in recent years. Notable achievements included: Improved monitoring of foreign transfers and cash sales of the US dollar. Alignment of systems, policies, and procedures with international and local standards. Enhanced transparency in covering foreign trade. Strengthened protection for the banking and financial sector against money laundering, terrorist financing, and financial crimes.
Upcoming Shift in Foreign Transfer Mechanisms
A pivotal development announced during the visit was the planned shift from the current electronic platform for foreign transfers to direct banking relations between Iraqi banks and international correspondent banks.
This transition is expected to: Stabilize exchange rates. Enhance the overall efficiency of Iraq's financial system. Facilitate financial transactions involving US dollar transfers.
A year-end meeting is scheduled between CBI officials and international partners to further discuss and implement this strategic shift.
Conclusion
The Central Bank of Iraq's visit to the United States in August 2024 marked a significant step forward in modernizing Iraq's banking sector and aligning it with global financial standards. Through strategic meetings and negotiations, the CBI demonstrated its commitment to enhancing financial transparency, stability, and international cooperation.
You didn't have anybody talking about privatizing the banks 20 years ago...It wasn't in the pipeline. It's obviously different from 2016. We don't have ISSI anymore. It's obviously different from 2018.
Why would they print all that currency in 2018 and then just stop doing it?
...It's really a complex situation. It's more than just pushing a button... There was a component of corruption...We all know they're going to have transparency and accountability...With the likes of Ernst & Young involved the world will find confidence...You're going to find big things are underway for this country.
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Article: "The Central Bank announces the participation of 13 Iraqi banks in foreign transfer in multiple currencies"
Friday afternoon...10pm in Baghdad, article hits the wires.
Quote: "Delegation in New York announces the start of the new phase of external transfers...facilitating international transfers"
If Iraq is going to be dealing with the Euro, the Chinese Yuan, Indian Rupee, the UAE Durham they're probably going to have to have Article VIII compliant currency that's acceptable globally, traded on the Forex... This is big.
A high-level negotiating delegation from the Central Bank in New York City, USA
The Central Bank of Iraq announced the results of the visit of the delegation headed by His Excellency the Governor of the Central Bank, Mr. Ali Mohsen Al-Alaq, to the United States of America, which lasted from August 26 to 29, 2024.
The Central Bank of Iraq confirmed that a high-level negotiating delegation headed by His Excellency the Governor, Ali Mohsen Al-Alaq, held a series of intensive meetings in New York City, USA, which included discussions with the US Treasury Department and the Federal Reserve Bank, in addition to meetings with a group of companies (Visa, Mastercard and MoneyGram) as well as banks (Citi Bank and JP Morgan) as well as international auditing firms (KPMG, E&Y, K2i and Oliver Wyman).
Adding that the participants in the meetings praised the major transformations accomplished by the Central Bank of Iraq, which represent an unprecedented achievement at the country level, as the bank has achieved remarkable progress in the procedures for monitoring foreign transfers and cash sales of the US dollar, which has led to improving systems,
policies and procedures in accordance with international and local standards, enhancing transparency in covering foreign trade and providing protection for the banking and financial sector from the risks of money laundering, financing terrorism and financial crimes.
Announcing a meeting between officials of the Central Bank of Iraq and its international partners at the end of this year regarding the major transformation in ending the work of the electronic platform for foreign transfers and replacing it with direct banking relations between Iraqi banks and the network of international correspondent banks, according to the plan developed by this bank, and implemented internationally
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which will allow the Central Bank of Iraq and the Federal Reserve Bank to exercise their supervisory roles away from executive procedures, as this transformation will have important repercussions in the stability, fluidity and transparency of the country's foreign trade financing operations, indicating that it aims to achieve the required stability in exchange rates,
which in turn will lead to enhancing the efficiency of the financial system in Iraq. Noting that the meetings in New York City also addressed mechanisms for expanding the network of international correspondent banks and qualifying Iraqi banks to meet the necessary requirements to open their accounts with international correspondent banks, with the aim of enabling them to complete their financial transactions, whether through external transfers in US dollars or other foreign currencies.
Fouad Hussein's Engagement with the US on the International Coalition Against ISIS
On September 1, 2024, Iraqi Deputy Prime Minister and Foreign Minister Fouad Hussein met with the US Ambassador, Alina Romanowski, in Washington to discuss the international coalition conference against ISIS. The conference aimed at assessing the ongoing efforts and future strategies in combating the remnants of the Islamic State group in the region.
The conference was part of a broader dialogue between Iraq and the US, reflecting the strategic relationship and mutual interests in maintaining security and stability in Iraq and the broader Middle East. The discussions also touched upon the future of the US military presence in Iraq, with the Biden administration signaling an openness to redefine the strategic relationship between Baghdad and Washington.
Key Points of Discussion
While details of the conference discussions were not fully disclosed, a senior Iraqi diplomatic source revealed that the talks centered around three main points. First, the potential announcement of an end to the international mission to fight ISIS, which would necessitate a reevaluation of the strategic relationship between Iraq and the US. Second, the US military withdrawal from Iraq was discussed, with the understanding that it would depend on certain conditions and outcomes from the conference.
Implications for Iraq-US Relations
The meeting between Fouad Hussein and the US Ambassador highlighted the ongoing negotiations and the evolving nature of Iraq-US relations. It underscored the importance of cooperation in addressing security challenges and the role of the international coalition in combating terrorism.
