Article: "Economist talks about new measures after stopping transfers"
Quote: "the Governor of the Central Bank of Iraq, Ali Al-Alaq, in New York over three days with US Treasury officials gave a new boost and confidence to the Iraqi banking system...
The Central Bank of Iraq will stop dealings with foreign correspondent banks in the future and reduce reliance on them, after developing the Iraqi banking relations network...and gradually ending work on the electronic platform for transfers and replacing it with direct banking relations between Iraqi banks and the network of international correspondent banks."
Article: "Central Bank of Iraq makes progress in reforming banking sector"
Quote: "US Ambassador to Iraq Alina Romansky confirmed [via tweet]...the Central Bank of Iraq has made progress in reforming the banking sector...
We commend the progress made by Iraq and the Central Bank of Iraq in reforming the Iraqi banking sector in partnership with the US Treasury and the Federal Reserve during recent meetings in New York,where the two parties discussed ways to cooperate to enhance transparency and integrity in the Iraqi banking sector."
Iraq’s economic progress is highlighted by the US Treasury’s praise for improved financial practices, signaling potential stability and investor confidence.
Highlights
🔍 US Treasury praises Iraq’s financial progress.
💵 New currency exchange mechanisms go live.
📈 Economic stability can attract foreign investments.
🏗️ Development Road Project to diversify Iraq’s economy.
🏦 Central Bank implements stricter oversight on transactions.
🌍 Improved financial management impacts the Middle East.
📊 Transparency in currency sales boosts investor trust.
Key Insights
🌟 US Treasury Recognition: The praise from the US Treasury emphasizes Iraq’s efforts to stabilize its economy through better financial practices, which can enhance international relations.
💳 Digital Banking Future: Iraq is moving towards digital payments and electronic banking, indicating modernization and improved efficiency in financial transactions.
🌱 Job Creation Potential: The Development Road Project is expected to create jobs and attract investments, showcasing Iraq’s potential to diversify beyond oil reliance.
🔒 Stricter Oversight: The Central Bank’s focus on stricter oversight of financial transactions may reduce corruption, enhancing economic stability.
🔑 Investor Confidence: Improved monitoring of currency transactions may build trust among investors, essential for economic growth and stability.
🌍 Regional Stability: A stable Iraq could reduce the need for US military presence, suggesting that economic stability has broader geopolitical implications.
📈 Long-term Economic Impact: Enhanced financial practices can lead to sustained economic growth, benefiting public services and overall quality of life in Iraq.
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Member: Good Evening Mark and mods, hope everyone had a great day.
Member: What do you know today Mark??
MZ: I am getting many reports today that payments have started. Reports that payments are rolling out to groups today….this afternoon…in the last 4 hours or so…... But I am staying calm because I have not been able to prove it yet. But I am looking for proof that this is accurate.
MZ: I am hearing this from any different sources….IF this is accurate…in the next day or two-you and I should find out when we can go in and exchange our currency. IF THIS IS ACCURATE.
MZ: I am getting blown up with contacts saying they have let things go. I have no idea if this is accurate or not. I cannot find anybody with cash in hand. I have heard this from a number of sources. I bet the dinar boards are exploding today. We are in hope that this is accurate.
MZ: STAY CALM….I am really trying to stay calm as well.
Member: JENTEL: said same thing with Mike Bara today!!
Member: I hope it's accurate. Them 2 nickels I been rubbing together 'bout wore out...
Member: I hope that what you are hearing MarkZ pans out!!!
Member: Stay grounded and focus on the $$ system being returned to all people
Member: Fiat money eventually returns to its intrinsic value - zero.
Member: If they are going through the levels before us, I would not be surprised for it to take a week or even two… think about it, no matter how many profess it will be all going at the same time, … That really wouldn’t be physically possible… My personal guess, maybe they get all of us through our appointments, so we All see the amount we will receive, then Release it All at the same time…
Mnt Goat ...Iraq told us all about how they fully intend to get back the “glory days of dinar” and so...Yes, simply put, they are doing it... at this point the pieces are all aligning so nicely...it’s all about implementing the Financial Reforms and then comes the Project to Delete the Zeros followed by the Reinstatement. You can’t do one without the other... it certainly “is not all done”... the path to the reinstatement is crystal clear... you can see the writing is on the wall. I don’t say this lightly either. We are just about there...
MZ: That may be the best message from Mnt Goat yet….It’s spot on …They have told us over and over again…..raise the vale, release the lower denoms , and get rid of the 3 zero notes.
Member: Mongolia is going to BRICS! That Tugrik may be worthwhile to add to the currancy pile?
Member: Turkey is going as well…..BRICS is growing by leaps and bounds….
Member: Thanks everyone ….God Bless
Mod: THANK YOU, MARK AND COMM FAMILY!! WE WILL SEE ALL OF YOU AT 10:00 AM EST TOMORROW, UNLESS SOMETHING HAPPENS, FOR ANOTHER GREAT PODCAST... OR AT W&W TONIGHT AT 8:00 PM EST.
THE CONTENT IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY&NOT INTENDED TO PROVIDE ANY PROFESSIONAL, FINANCIAL OR LEGAL ADVICE. PLEASE CONSIDER EVERYTHING DISCUSSED IN MARKZ’S OPINION ONLY
Iraq's Economic Strategies and the $3.22 Oil Valuation in 2024
Iraq, one of the most oil-dependent countries globally, has historically based its economy heavily on oil revenues, which have accounted for over 99% of exports, 85% of the government's budget, and 42% of gross domestic product (GDP) over the last decade. This reliance on oil has exposed the country to macroeconomic volatility. As of January 2021, Iraq's unemployment rate was more than 10 percentage points higher than its pre-COVID-19 level of 12.7 percentage points.
The IMF's $3.22 Oil Valuation
The International Monetary Fund (IMF) mentioned a $3.22 rate, which indicates a historical valuation of oil in Iraq, highlighting the need for renewed economic strategies. This valuation underscores the urgency for Iraq to diversify its economy beyond oil to secure fiscal and debt sustainability, advance economic diversification, and achieve sustainable, inclusive, and private sector-led growth.
Iraq's Economic Outlook in 2024
In 2024, Iraq's economy is expected to continue its recovery, supported by a large fiscal expansion. However, this expansion comes at the cost of further deterioration of fiscal and external accounts, increasing Iraq's vulnerability to oil price fluctuations. Without policy adjustment, the risk of medium-term sovereign debt stress is high, and external stability risks could emerge.
Key Downside Risks
Key downside risks include much lower oil prices or the spread of the conflict in Gaza and Israel. These risks could significantly impact Iraq's fiscal and external balances, necessitating a fiscal adjustment to stabilize debt over the medium term while protecting critical social and capital spending.
Strategies for Economic Diversification
To foster private job creation and ensure long-term external sustainability, Iraq needs to focus on private sector development and economic diversification. This includes containing the outsized public wage bill and mobilizing additional non-oil revenues through policy measures.
Conclusion
Iraq's reliance on oil for economic stability is a double-edged sword, offering significant revenues but also exposing the country to macroeconomic volatility. The IMF's mention of a $3.22 rate for oil valuation highlights the need for Iraq to diversify its economy and develop strategies that ensure fiscal and debt sustainability, advance economic diversification, and promote sustainable, inclusive, and private sector-led growth.
She discusses recent developments regarding the Iraqi dinar, emphasizing progress in economic reforms, security measures against money smuggling, and upcoming opportunities for currency exchange.
Highlights
📈 Iraqi satellite project discussions with UAE for economic ties.
💳 New electronic platform catching money smugglers.
🇸🇪 Swiss Embassy reopening in Baghdad boosts international relations.
💼 Enhancements in customs and tax revenues from bordering nations.
🤝 Focus on bilateral agreements with the US for economic growth.
📅 Notifications for tier 4B currency exchanges expected soon.
💰 Rates at redemption centers may be higher than banks.
Key Insights
🔍
Economic Reforms: Iraq is actively working on banking sector reforms, which are crucial for attracting foreign investments and improving economic stability. This can lead to increased confidence in the dinar.
⚖️ Security Measures: The implementation of an electronic platform is a significant step toward combating money smuggling, enhancing the integrity of the financial system in Iraq.
🌍 International Relations: The reopening of the Swiss Embassy signifies strengthened diplomatic ties, allowing for better cooperation and investment opportunities in Iraq.
💵 Revenue Generation: The focus on customs and tax enhancements reflects Iraq’s strategy to diversify its economy beyond oil dependency, which is vital for sustainable growth.
⏳ Upcoming Notifications: The anticipated notifications for tier 4B exchanges signal a potential shift in currency value, encouraging investors to remain vigilant and prepared for upcoming opportunities.
🏦 Redemption Centers: The possibility of higher exchange rates at redemption centers than banks indicates strategic planning to incentivize currency holders, emphasizing the importance of choosing the right exchange location.
