Iraq’s Prime Minister’s adviser confirmed a renewed agreement with the US Federal Reserve, enhancing Iraq’s banking relations and foreign trade financing.
Highlights
🤝 Renewed understanding with US Federal Reserve boosts Iraq’s banking market.
💼 Optimistic results from discussions between Iraq’s Central Bank and US banking authorities.
🌍 Establishes a clear path for international banking relations and foreign trade financing.
💳 Multiple currencies, including Euro and Yuan, will facilitate trade alongside the US dollar.
🏦 13 private commercial banks highlighted as key players in new banking mechanisms.
📈 Focus on compliance and governance for global correspondent banking entities.
🔄 Aims to rebuild Iraq’s domestic banking market on solid reform foundations.
Key Insights
🤝 Strengthened US-Iraq Relations: The renewed agreement fosters a collaborative framework between Iraq and the US, crucial for economic stability.
💼 Positive Banking Dialogue: The discussions reflect a commitment to aligning Iraq’s financial practices with international standards, enhancing confidence in its banking system.
🌍 Global Trade Facilitation: The establishment of precise banking paths will streamline foreign trade financing, crucial for Iraq’s economic growth.
💳 Diverse Currency Usage: Expanding payment options beyond the dollar, including the Euro and Yuan, mitigates currency risk and enhances trade flexibility.
🏦 Role of Private Banks: The involvement of 13 private banks indicates a strategic shift towards leveraging local expertise in international banking mechanisms.
📈 Compliance and Governance Focus: Emphasizing compliance ensures that Iraq’s banking operations meet global standards, attracting international partners.
🔄 Reconstruction of Domestic Banking: A focus on reform will stabilize and modernize Iraq’s banking sector, laying the groundwork for sustainable economic development.
Today, we are going to look at a CBI article from Iraq and one from the IVSC. The CBI article parallels what the US is doing in completing their final steps of the new digital economy.
Both countries, US and Iraq, are expected to complete their Banking Reforms by the end of this year. Iraq goes on to say in their CBI article that they do expect to be finished with their Banking Reforms, but they do not expect a new rate by the end of this year.
Two shifts are expected to happen by the end of this year:
* Iraq is expected to move from the Federal Reserve auditing and monitoring their Banking Protocols to Iraq having a direct relationship between banks around the world.
* Their anti-money laundering law is supposed to protect cross-border trades as well. This will enable Iraq to have more control over their finances going forward.
This will allow Iraq to become part of the process of new standard valuations being placed on their currency through the IVSC.
The International Standards Valuation Committee meets on January 31st, 2025. They are expected to begin the process of incorporatimg new valuation standards and assess their values including the new digital economy that will influence new Financial Instruments Valuation protocols.
Although the International Valuation Standards Council (IVSC) does not determine market values, it does provide standards for valuation that are used globally.
The International Valuation Standards (IVS) are a framework used by valuation professionals around the world to guide the valuation of assets and liabilities. The IVS helps to ensure that valuations are consistent, transparent, and comparable.
This process sets the stage for International Payment Systems to begin the process of determining currency values based upon supply and demand, governmental policies, exchange rate types such as fixed or floating rates, and/or pegging to another currency.
I will continue to monitor Iraq and the United States development of Banking Reforms as they reflect on new Quantum Technologies built to enhance Independence and Sovereignty of all countries around the world.
This is why I share with you information on these new rules and regulations from the Federal Register. I am noticing that what happens on the Federal Register with the new banking regulations taking place in the United States are also taking place in Iraq around about the same time.
The Central Bank of Iraq's Mechanism for Terminating the Electronic Platform for Foreign Transfers
In a significant development, the Central Bank of Iraq (CBI) has announced the mechanism for terminating the electronic platform it used for foreign transfers of hard currency. This move is part of a broader strategy to reorganize financial transfers with proactive oversight, replacing the subsequent review previously conducted by the Federal Reserve.
Transition to Direct Banking Relationships
The transition from the electronic platform to direct banking relationships between Iraqi banks and correspondent banks abroad was initiated in 2023 as a preliminary measure. By 2024, this transition has been nearly completed, with 95% of the process already achieved. The remaining 5% is expected to be finalized by the end of the year, ensuring a smooth and gradual shift.
Pre-Execution Audits and International Standards
An international auditing firm has been engaged to perform pre-execution audits of transfers before they are executed by correspondent banks. This aligns with international standards and anti-money laundering laws, aiming to maintain the official exchange rate as a true reflection of economic practices.
Impact on Exchange Rates and Transfer Operations
The CBI has assured the public that the termination of the electronic platform will not have any adverse effects on exchange rates or transfer operations. The bank emphasized that any potential impacts are unfounded, given the gradual nature of the transition and the close monitoring of the process.
New Channels for Currency Conversion
Recognizing that 70% of Iraq's foreign trade necessitates new channels for currency conversion, the CBI has already started implementing new pre-audit processes for currency transfers. This includes transactions involving the euro, Chinese yuan, Indian rupee, and UAE dirham, with 13 Iraqi banks already implementing this process.
Financial Reforms and International Engagement
In a related development, the CBI delegation led by Governor Ali Mohsen Al-Alaq held meetings in the U.S. with major financial institutions, including the U.S. Treasury, the Federal Reserve, Visa, Mastercard, and international auditing firms. These discussions highlighted advancements in monitoring foreign transfers and cash sales of U.S. dollars, aligning with international standards to enhance transparency and combat financial crimes.
Conclusion
The termination of the electronic platform for foreign transfers by the Central Bank of Iraq marks a significant step in the country's financial reforms. The move, which has been executed gradually and closely monitored, is expected to improve the stability, transparency, and efficiency of Iraq's foreign trade financing, contributing to a more stable exchange rate and a more robust financial system.
The electronic platform for external transfers managed by the Central Bank of Iraq began at the beginning of 2023 as the first stage of reorganizing financial transfers to ensure proactive supervision instead of subsequent supervision through the Federal Reserve’s audit of daily transfers.This was an exceptional measure as the Federal Reserve does not usually do so. A gradual shift towards building direct relations between banks in Iraq and correspondent and approved foreign banks was planned, in the middle of an international audit company to conduct pre-audit of remittances before implementing them by correspondent banks.During the year 2024 and until now, 95% of the transfer process has been achieved from the electronic platform to the mechanism of correspondent banks directly between it and Iraqi banks, which means that the remaining is only about 5% of it within the platform, which will be transferred by the same mechanism before the end of this year and according to the plan.
Thus, some expectations about possible effects on the exchange rate and transfers are unfounded, because the operation will not be unexpected or in one batch at the end of this year, but it was originally achieved during the past period with careful effort and follow-up, except for the remaining small percentage will be completed in the next few period.
The Central Bank of Iraq confirms that trade with the United Arab Emirates, Turkey, India and China represents about 70% of Iraq’s foreign traders as (imports), which called on the Central Bank of Iraq to find channels for transfer in euro, Chinese yuan, Indian rupee, UAE dirham, through approved correspondent banks in those countries, and (13) Iraqi banks have already started transferring operations with a pre-audit mechanism that has been agreed and approved in addition to transfers in dollar currency.
With the provision of personal transfer channels for legitimate purposes and foreign purchases through electronic payment channels, international money transfer companies, cash sales to travelers, and the payment of dollars of cash for incoming transfers to the entities and purposes specified in the published instructions of the Central Bank.
The Central Bank of Iraq stresses that it has put external transfers and meeting requests for the dollar in sound paths in line with international practices and standards and the Anti-Money Laundering and Terrorist Financing Law.
He explains that the provision of the aforementioned channels and for all purposes at the official price of the dollar, makes this price the true indicator of economic practices, which is proven by the reality of price stability and control of inflation, and any other price traded outside those channels is an unusual price that the people of non-fundamental or illegal practices who move away from official channels in their dealings, so that they alone bear the additional costs of buying higher than the official price for others for the difference between the official price and others.
From The Chosen Ones, Wolverine's official Telegram group:
PAYMENT OF OPERATIONS STARTS ON SEPTEMBER 4, 2024
We close the week with the following report:
World Bank and Peter Wong Platform auditors who arrived in Brazil on August 27, 2024 are packing their bags to return to the US tomorrow, August 31, 2024.
As Monday, September 2, 2024 is a holiday in the USA (Labor Day), there is no possibility of banking hours on the Reno Platform (Nevada/USA),
so what was decided in the meeting within the Central Bank on August 29, 2024 is that the global START will take place on September 3, 2024 (next Tuesday), when Brazil BR, the USA and the other countries that make up this project that covers 47 countries ( and their respective Central Banks), after several detailed tests and adjustments, will finally be able to proceed in a synchronized and simultaneous manner with the release and settlement of the financial operations of which they are part (I highlight that in Brazil BR The operations released and approved for payment They are LTN and TDA, which were unified within the same platform).
I also found out that the period to distribute the securities to the payrolls of the Managers who will receive them will begin on September 4, 2024 and will extend until September 13, 2024.
- Dr. Eduardo Tavares (August 30, 2024). EDUARDO TAVARES, Professor at CEA and Founding Partner of Mundo Financiero - Specialist in Corporate Finance and Investment Banking at FIA Business School.
Peter Wong Former CEO of Hong Kong and Shanghai Banking Corporation Mr. Peter TS Wong is Vice Chairman and CEO of Asia-Pacific of The Hongkong and Shanghai Banking Corporation Limited ("HSBC"). He is CEO of the Group and member of the Board of Directors of the HSBC Group. -----
Thanks RS for sharing 👍
It is good information and we know that even though tomorrow is a holiday in the United States, the staff involved have been working even on Sundays (said by Zorra).
Then we will see if this has to do with the T4B group since there are many platforms and groups with different payment schemes...
It's going slowly but surely...
TRANSLATION IN SPANISH
Desde The Chosen Ones, grupo oficial de Wolverine por Telegram:
PAGO DE OPERACIONES INICIA EL 4 DE SEPTIEMBRE DE 2024
Cerramos la semana con el siguiente informe: los auditores del Banco Mundial y de la Plataforma Peter Wong que llegaron a Brasil el 27 de agosto de 2024 están haciendo las maletas para regresar a los EE. UU. mañana, 31 de agosto de 2024.
Como el lunes 2 de septiembre de 2024 es feriado en los EE. UU. (Labor Day), no hay posibilidad de horario bancario en la Plataforma de Reno (Nevada/EE. UU.), por lo que lo que se decidió en la reunión dentro del Banco Central el 29 de agosto de 2024 es que el START global se realizará el 3 de septiembre de 2024 (próximo martes), cuando Brasil BR, EE. UU. y los demás países que componen este proyecto que abarca 47 países (y sus respectivos Bancos Centrales), después de varias pruebas y ajustes detallados,
finalmente podrán proceder de manera sincronizada y simultánea con la liberación y liquidación de las operaciones financieras de las que forman parte (destaco que en Brasil BR Las operaciones liberadas y aprobadas para pago son LTN y TDA, las cuales fueron unificadas dentro de una misma plataforma).
También me enteré que el plazo para distribuir los valores a las nóminas de los Gestores que los recibirán comenzará el 4 de septiembre de 2024 y se extenderá hasta el 13 de septiembre de 2024.
- Dr. Eduardo Tavares (30 de agosto de 2024). EDUARDO TAVARES, Profesor del CEA y Socio Fundador de Mundo Financiero - Especialista en Finanzas Corporativas y Banca de Inversión de FIA Business School.
Peter Wong Ex CEO de Hong Kong and Shanghai Banking Corporation El Sr. Peter TS Wong es Vicepresidente y CEO de Asia-Pacífico de The Hongkong and Shanghai Banking Corporation Limited ("HSBC"). Es CEO del Grupo y miembro del Consejo de Administración del Grupo HSBC. -----
Gracias RS por compartir 👍
Es buena información y sabemos que a pesar de que mañana es día festivo en Estados Unidos, el personal involucrado ha estado trabajando incluso los domingos (dicho por Zorra).
Entonces veremos si esto tiene que ver con el grupo T4B ya que hay muchas plataformas y grupos con diferentes esquemas de pago...