DINAR REVALUATION REPORT: Recent Advancements in Iraq's Banking Systems and Economic Growth 2024, 4 SEPT

Banking Innovations and Expo Success

Banking Systems Integration

Recent Advancements in Iraq's Banking Systems and Economic Growth 2024

Iraq's economic landscape has seen significant advancements in recent times, particularly within the banking sector and broader economic growth. This article delves into the key developments, including the integration of advanced banking systems, the success of global expos, the focus on non-oil revenues, and the establishment of global partnerships, all contributing to Iraq's ongoing economic transformation. 

A notable achievement has been the successful integration of over 500,000 workers into advanced banking systems. 1 This move not only modernizes financial infrastructure but also enhances the efficiency of financial transactions and boosts public trust in the banking sector. 5

HEEX 2024: A Global Showcase

The HEEX 2024 expo, held in Iraq, attracted extensive global participation. 2This event highlighted Iraq's readiness to engage with international markets and provided a platform for showcasing the country's economic potential and investment opportunities.

Economic Growth Beyond Oil

Focus on Non-Oil Revenues

Iraq has made strides in enhancing non-oil revenues, demonstrating a strategic shift away from overreliance on oil. 3 This diversification effort is crucial for long-term economic stability and growth.

Budget Allocation for Development

The allocation of a substantial budget for the period 2023-2025, totaling USD 150 billion, has enabled significant investment in infrastructure projects and public spending. 1 This includes the reconstruction of critical facilities like Mosul airport, which was partially destroyed during the conflict with Daesh. 1

Global Partnerships and Auditing Transparency

Shipping Gas to Europe

Iraq's decision to ship gas to Europe indicates a strategic move to expand its economic footprint globally. 4 This partnership is a testament to Iraq's growing influence in the international energy market.

Auditing Firms and Financial Integrity

The involvement of multiple auditing firms in Iraq's financial sector ensures a higher level of transparency and integrity. 4 These measures are crucial for building trust among investors and the public.

In conclusion, Iraq's recent advancements in banking systems, the success of global expos, and a growing focus on non-oil revenues are indicative of a country on the rise. These developments, coupled with strategic global partnerships and efforts to enhance financial transparency, position Iraq as an emerging economic player in the global arena.

DINAR REVALUATION : UPDATE ABOUT ADVANCEMENTS IN IRAQ , 4 SEPT

DINAR REVALUATION : UPDATE ABOUT ADVANCEMENTS IN IRAQ 

Summary 

Iraq update reveals advancements in banking systems, integration of workers, and ongoing efforts for wealth transfer amidst challenges.

Highlights

• 💡 Banking Innovations: 500,000 workers integrated into advanced banking systems.
• 🏇 Expo Success: The HEEX 2024 expo attracts global participation.
• 📈 Economic Growth: Focus on enhancing non-oil revenues shows progress.
• 🌍 Global Partnerships: Iraq shipping gas to Europe indicates economic movement.
• 🔍 Auditing Transparency: Multiple auditing firms ensure financial integrity.

Key Insights

• 🚀 Technological Progress: The integration of a high-tech banking system signifies Iraq’s move towards modernization, allowing for efficient salary disbursement and financial management. This transition is pivotal for economic stability.
• 🌟 International Engagement: The HEEX 2024 expo highlights Iraq’s growing presence on the global stage, showcasing its potential to attract international investments and partnerships that can bolster the economy.
• 💰 Diversification Strategy: The Iraqi government’s focus on enhancing non-oil revenues indicates a strategic shift towards a more diversified economy, reducing dependence on oil and fostering sustainable growth.
• 🌐 Energy Exports: Iraq’s initiative to ship gas to Europe demonstrates its commitment to international trade and economic resilience, positioning itself as a vital player in global energy markets.
• 🧾 Audit Confidence: The involvement of reputable auditing firms increases transparency and builds trust in Iraq’s financial systems, essential for investor confidence and economic reform.

Is SWIFT Being Replaced? Exploring New Banking Networks

DINAR REVALUATION REPORT: Exploring the Proposal to Replace SWIFT with International Banking Network Relations, 4 SEPT

 Exploring the Proposal to Replace SWIFT with International Banking Network Relations

In an evolving financial landscape, the proposal to cancel the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and replace it with relations within the international banking network has sparked significant debate. 1  3 Established in 1973, SWIFT has long been the backbone of global financial messaging and transactions, facilitating cross-border payments and communications among financial institutions. 4 However, recent geopolitical tensions and technological advancements have prompted discussions about alternatives. 5

Understanding SWIFT's Role and Challenges

SWIFT's Dominance

SWIFT has been instrumental in standardizing financial messaging, ensuring secure and efficient communication between banks worldwide. 4 It has been the preferred system for high-value cross-border payments, with half of all such transactions utilizing the SWIFT network as of 2018.  4

Criticisms and Limitations

Despite its widespread use, SWIFT has faced criticisms for its high fees, slow transaction times, and lack of transparency. 1 Moreover, its role as a central hub has raised concerns about systemic risk and vulnerability to cyber threats. 3Additionally, the exclusion of certain countries from the SWIFT network due to sanctions has highlighted its susceptibility to political influence. 5

The Shift to International Banking Network Relations

Emerging Alternatives

In response to SWIFT's limitations, countries like Russia and Iran have moved towards establishing direct interbank transfer mechanisms, bypassing the SWIFT system. 6 These alternatives allow for trade in national currencies, reducing reliance on dominant global currencies like the dollar or euro.

Advantages of Alternative Systems

Alternative systems such as Russia's SPFS (System for Transfer of Financial Messages) offer a domestic payment system that facilitates financial messaging and transactions.  6 These systems aim to provide faster, more secure, and cost-effective transactions, potentially addressing the issues associated with SWIFT.

Challenges and Considerations

While alternative systems promise benefits, they also face challenges such as limited interoperability with existing financial networks and potential resistance from established financial institutions. 3 Furthermore, the transition to a new system requires significant coordination and investment, presenting a barrier to widespread adoption.

The Future of International Banking Relations

The proposal to replace SWIFT with international banking network relations is indicative of a broader shift towards decentralized financial systems. As countries seek to assert more control over their financial transactions and mitigate geopolitical risks, the development of alternative payment systems is likely to continue. 6

Conclusion

The ongoing debate over the future of SWIFT reflects deeper concerns about the global financial system's structure and governance. While alternatives may offer potential improvements, the complexity of transitioning to new systems should not be underestimated. As the financial landscape evolves, the balance between innovation, security, and international cooperation will remain a critical consideration for policymakers and financial institutions alike.

Proposal to cancel SWIFT and replace it with relations with the international banking network, 4 SEPT

  Proposal to cancel SWIFT and replace it with relations with the international banking network

US Treasury praises Iraq's progress in monitoring transfers and selling dollars

 The US Treasury Department praised the remarkable progress made by the Central Bank of Iraq in strengthening control procedures over foreign transfers and cash sales of the dollar, while considering that these steps contribute to strengthening financial and economic stability in the country .

Auditing companies

A statement by the bank received by (Al-Zaman) yesterday said that (a high-level negotiating delegation headed by 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, including international auditing companies, who praised the major transformations achieved by the Central Bank, represented by the remarkable progress in the procedures for monitoring foreign transfers and cash sales of the dollar currency).

Adding that (this 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)

And pointed out that (a meeting will be held between bank officials and its international partners by 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, which will allow the Central Bank and the Federal Reserve Bank to exercise their supervisory roles Away from the executive procedures

This transformation will have important repercussions on the stability, fluidity and transparency of the country’s foreign trade financing operations,” he continued, adding that “this step will contribute to achieving the required stability in exchange rates, which in turn will lead to enhancing the efficiency of the financial system in Iraq.”

The statement stressed that “the meetings also addressed the mechanisms for expanding the network of international correspondent banks and qualifying Iraqi banks to meet the necessary requirements for opening 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 .”

A source had previously revealed an unannounced visit by the Central Bank to the United States of America to discuss developments in the Iraqi banking sector .

Banking sector

The source said in a statement yesterday that (a delegation from the Central Bank, led by Al-Alaq, and a number of general managers, visited the United States of America, since the 26th of last month, to discuss developments in the banking sector and the restrictions on the use of the dollar imposed on a large number of private banks)

And he continued that (the Central Bank delegation discussed canceling the platform at the beginning of next year, and relying on correspondent banks, which will increase the imposition of restrictions on Iraqi private banks, and completely eliminate competition in favor of Jordanian banks that have American correspondent banks), noting that (the Central Bank is close to signing a contract with Oliver Wyman, the consulting company for the Iraqi Development Road, to conduct a study on reforming the Iraqi banking sector, and in order for it to be approved by the bank as a roadmap for reforming the private banking sector ).

The dollar exchange rate rose slightly in the Baghdad and Erbil stock exchanges. Money exchange office owners said yesterday that “dollar prices rose with the opening of the Al-Kifah and Al-Harithiya stock exchanges to record 149,200 dinars for every hundred dollars.” They added that “selling prices in exchange offices in the local markets in Baghdad stabilized at a selling price of 150,000 dinars, while the purchase price reached 148,000 dinars for every hundred dollars. As for Erbil, the stock exchange does not trade on official holidays, but the dollar recorded a slight increase there .” link

A CONVERSATION WITH A BANK VICE PRESIDENT REVEALS INSIGHTS ABOUT THE IRAQI DINAR AND THE POTENTIAL RV, 4 SEPT

 A CONVERSATION WITH A BANK VICE PRESIDENT REVEALS INSIGHTS ABOUT THE IRAQI DINAR AND THE POTENTIAL RV

Summary

A conversation with a bank vice president reveals insights about foreign currencies, including the Iraqi dinar and the potential for currency revaluation.

Highlights

• 🤔 Discussed foreign currencies with a bank VP.
• 💵 Mentioned specific currencies: Iraqi dinar, Bolivar, Vietnamese dong.
• 🚫 Many consider these currencies a scam.
• 🏗️ Jamie Dimon is investing in Iraq, indicating potential.
• 🔔 VP hinted at readiness to act on currency notifications.
• 😊 Felt validated in discussing currencies with an expert.
• 📈 Signals of potential growth in foreign currency investments.

Key Insights

• 🌍 Foreign Currency Interest: The conversation highlights a growing interest in foreign currencies, particularly among investors seeking alternative assets.
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• 💳 Currency Skepticism: The skepticism surrounding currencies like the Iraqi dinar reflects broader concerns about investment risks and scams in the marketplace.
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• 🏦 Banking Involvement: The mention of a bank vice president signifies institutional interest and potential legitimacy in foreign currency investments.
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• 🌐 Economic Development: Jamie Dimon’s involvement in Iraq suggests that major financial players see potential in the region’s economic growth.
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• 🔍 Notification Readiness: The VP’s comment about waiting for a notification implies that significant changes in currency values may be imminent, raising investor interest.
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• ✔️ Validation in Expertise: Finding someone knowledgeable in foreign currencies can provide reassurance to investors feeling uncertain about the market.
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• 📊 Potential Growth Indicators: The conversation underscores the potential for growth in foreign currencies, encouraging investors to consider diversification strategies.

IRAQ PM CONFIRMS DINAR REVALUATION