LATEST FROM FRANK26, 6 SEPT

 Frank26  

 Article:   "Two conditions to achieve it .. Al-Sudani's advisor rules out removing 3 zeros from the currency"

  This is what's happening right now.  This is called diversion tactics...slight of hand.  This was done with China and it was done with Kuwait...This is part of the monetary reform.  To put out disinformation that is a deterrent, maybe, that is putting

speculators at bay.  

Frank26   

I pray that this dream will come true for the both of us. 

 It is very close.

  There's no doubt about it. 

 All the indications are pointing that it's very close.  I just hope we get some good news when Alaq [returns from] New York...

Frank26 

 The new lower notes and the new exchange rate will revolutionize the whole Middle East, let alone the whole world...The monetary reform is the linchpin.  It's the trigger.  It's the button that will be pushed to change financial structures around the world ...We investors of the dinar have a backup for a backup in order to survive this global financial change... 

Frank26 

 Article:  "Iraq and America to resume negotiations on the banking sector next Monday" 

 ALAQ'S VISIT IS ON IRAQI BANKS... IRAQI BANKS ONLY CARE ABOUT A NEW EXCHANGE RATE.

Frank26 

  I don't care about the WTO and HCL because it only waits for one thing, the new exchange rate.  The only mechanism that everyone is waiting for is the new exchange rate.  

That is the simple fact.  This fact is real because Sudani is constantly reinforcing that idea...by constantly coming out on TV and talking to you [Iraqi citizens] about you're going to get purchasing power.

We found out the 3 zero notes are going to coexist with the lower notes for 10 years.

  Do you understand the power behind that?  

That means we're going to be able to participate in not only the float but the Real Effective Exchange Rate (REER)

 Frank26 

 The goal is what?  Retrieve those [Three zero notes].  

How? 

As soon as we raise the value, give them purchasing power, as soon as we drop the 3 zeros, they're going to bring in all that 80 something percent [still in Iraqi mattresses]...The monetary reform plan is brilliant...It is moving at a very fast pace.

DINAR REVALUATION 

ANALYSIS OF WHAT EDDIE TOLD TO FRANK26: 

"Then Saleh talking about oil being sold in dinars instead of dollars." 

 Economist back on tv saying it’s time to drop the zeros."

---It sounds like there's a couple of interesting economic discussions happening in Iraq right now!

1. Saleh and Oil Sales in Dinars: Saleh's suggestion to sell oil in dinars instead of dollars could be aimed at strengthening the Iraqi dinar and reducing dependence on the US dollar. This move could potentially stabilize the local economy and improve national financial sovereignty. However, it would also require significant adjustments in international trade agreements and currency exchange systems.

2. Dropping Zeros from the Dinar: The economist's call to drop zeros from the dinar is a common monetary policy strategy known as "currency redenomination." This involves introducing a new unit of currency that is worth a thousand or more times the old unit. It's often done to simplify transactions and improve the currency’s image after periods of high inflation or economic instability. For Iraq, this could be a step towards stabilizing the currency and restoring confidence in its value.

Both of these measures reflect efforts to address economic challenges and enhance the stability of Iraq's financial system. The success of these strategies will depend on how they are implemented and their impact on the broader economy.

SEEMS THAT WE ARE REALLY CLOSE TO OUR DESIRED RV!!!

https://dinarevaluation.blogspot.com/2024/08/dinar-revaluation-update-seems-that-we.html

Central Bank Governor's Crucial Visit to NYC: What It Means for Iraq's B...

NEWS HIGHLIGHTS : THE RENEWED AGREEMENT BETWEEN IRAQ AND THE US FEDERAL RESERVE" BY NADER FROM MID EAST, 6 SEPT

 Summary

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.

INSIGHTS FROM GOLDILOCKS, 6 SEPT

 INSIGHTS FROM GOLDILOCKS

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.

© Goldilocks

https://www.ivsc.org/ivs-to-become-freely-available-from-january-2025/

https://cbi.iq/news/view/2664

Iraq's Central Bank Ends Electronic Platform for Foreign Transfers

DINAR REVALUATION REPORT: The Central Bank of Iraq's Mechanism for Terminating the Electronic Platform for Foreign Transfers, 6 SEPT

 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. 1 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. 2

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. 3 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. 2

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. 3 This aligns with international standards and anti-money laundering laws, aiming to maintain the official exchange rate as a true reflection of economic practices.  2

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. 2 The bank emphasized that any potential impacts are unfounded, given the gradual nature of the transition and the close monitoring of the process. 3

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. 2 This includes transactions involving the euro, Chinese yuan, Indian rupee, and UAE dirham, with 13 Iraqi banks already implementing this process.  2

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. 5 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. 5

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. 5

The Central Bank of Iraq reveals the mechanism of terminating the electronic platform, 6 SEPT

 The Central Bank of Iraq reveals the mechanism of terminating the electronic platform

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.

Central Bank of Iraq

https://cbi.iq/news/view/2664