DINAR REVALUATION REPORT: Enhancing Iraq's Currency Value: Key Meetings and Economic Insights, 10 SEPT

 Enhancing Iraq's Currency Value: Key Meetings and Economic Insights

Iraq's currency, the Iraqi Dinar (IQD), has faced significant volatility, reflecting structural imbalances in the economy and external pressures. In 2024, several key meetings and economic insights have emerged as pivotal in efforts to enhance the IQD's value. 1

Overview of Iraq's Economic Landscape

Iraq remains heavily dependent on oil exports, which account for over 99% of its exports, 85% of the government's budget, and 42% of its gross domestic product (GDP). 2 This reliance exposes the economy to macroeconomic volatility and restricts fiscal space for countercyclical policies.

 Inflation has declined to 4% by the end of 2023, partly due to lower international food prices and the currency revaluation in February 2023. 5 

However, the large fiscal expansion initiated in 2023 has worsened imbalances and increased vulnerability to oil price fluctuations.

Key Meetings and Policy Adjustments

Central Bank of Iraq (CBI) Adjustments

In mid-November 2022, the CBI's implementation of global procedural requirements for cross-border payments led to a decrease in the volumes of its daily "Foreign Currency Selling Window," or USD auction. 

3 This decrease, in contrast to the high demand for USD, triggered a supply-demand mismatch and a depreciation of the IQD market price versus the USD.

 The CBI and the Iraqi government introduced measures to create domestic demand for the IQD and to accelerate banking adoption, crucial steps for de-dollarization and economic evolution . 3

IMF Article IV Consultation

On May 13, 2024, the International Monetary Fund (IMF) concluded its Article IV consultation with Iraq, endorsing the staff appraisal. 5 The IMF noted the strong economic rebound and declining inflation but highlighted the risks of a large fiscal expansion and dependence on volatile oil prices. Executive Directors emphasized the need for sound macroeconomic policies and structural reforms to ensure fiscal and debt sustainability, advance economic diversification, and achieve sustainable, inclusive, and private sector-led growth. 5

Economic Insights and Recommendations

Diversification and Structural Reforms

Experts agree that Iraq needs to address its economy's structural imbalances to halt the dinar's volatility. 3 This includes efforts to diversify the economy away from oil, modernize the financial and banking sectors, and tackle rampant corruption and lack of basic services. 1

Fiscal and External Stability

The ongoing fiscal expansion is expected to boost growth in 2024 but at the expense of further deterioration in fiscal and external accounts. 5 Policy adjustments are necessary to secure fiscal and debt sustainability and reduce vulnerability to external shocks.

Conclusion

Enhancing the value of Iraq's currency in 2024 requires a multifaceted approach, including policy adjustments, structural reforms, and a focus on economic diversification. Key meetings, such as the IMF's Article IV consultation, and insights from economic experts emphasize the need for sound macroeconomic policies and a shift towards a more sustainable, private sector-led growth model.

MELANIE HINDS CC NOTES HIGHLIGHTS, 10 SEPT

 Summary

Melanie Hines discusses recent developments regarding the Iraqi dinar, highlighting key meetings and economic insights aimed at enhancing the currency’s value.

Highlights

• 💼 Melanie Hines shares her expertise as a former auditor.
• 🏛️ Coordination framework meeting to address security and economic issues.
• 💰 Central Bank’s decisions aim to reduce inflation and strengthen the currency.
• 📺 Broadcasting plans for currency swap in Baghdad.
• 🚀 Investment initiatives involving major global players like China and the U.S.
• 💵 Expected rates discussed for the dinar and dong.
• 📈 Optimism about the currency’s future value and stability.

Key Insights

• 🧠 Expertise Matters: Melanie’s background in auditing provides a unique lens on Iraqi economic developments, emphasizing the importance of informed analysis.
• 🔒 Security and Economy: The coordination framework’s focus on security and economic matters highlights the interconnectedness of stability and currency valuation in Iraq.
• 💡 Central Bank’s Role: The Central Bank’s policies are crucial in stabilizing the dinar, indicating that sound monetary policy can foster economic growth and currency strength.
• 📺 Public Awareness: The planned broadcasts regarding currency swaps signify a push for transparency and education among citizens about the dinar’s future.
• 🌏 Global Investments: The involvement of major investors like China and U.S. figures suggests confidence in Iraq’s economic resurgence and the dinar’s potential.
• 💵 Rate Speculation: Ongoing discussions about exchange rates reflect market anticipation and the broader implications for dinar holders.
• 🔮 Future Outlook: The overall optimism surrounding the dinar’s revaluation indicates a significant potential shift in economic dynamics within Iraq.

Coffee with MarkZ. 09/09/2024

Thank you MarkZ for all your time, and encouragement daily….. PDK

MarkZ  Update- Some highlights by PDK-Not verbatim

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 Monday morning everyone. Hope you have a blessed day

Member: magical Monday you beautiful people

Member: What news do you have for us today Mark?

MZ: Well, a number of Iraqi sources are saying Iraq is now keeping their oil revenue meaning Chapter 7 Announcement soon that it is completely over, done and signed……They think this is an excellent sign and I think they are right. 

Member: There is so much positive news about Iraq being international that they can’t stay with 1310 much longer??

Member: I understand they have started showing the ads for the lower notes and Sudani came on the TV and said the educational phase is almost complete...(Frank 26)

MZ: I don’t know if they are showing ads yet…but they have certainly talked about it. I am trying to get pictures from some people over there that work in banking. They are educating people on them. Sudani made the comment at the end of last week that during his administration they expect to revalue and increase the purchasing power of the dinar. 

Member: i read that the CBI said the rate would change by end of 2024. 

Member: The question is how long will Iraq take to educate the citizens on the lower notes.

​​Member: Mark- MM had done a great job again last night and leading to our soon to be party.

Member: I heard Reno is on fire

MZ: Yes there are fires in the Reno area…I do not think it’s important to us or the RV…It is not unusual to see fires this time of year. 

Member: I can't even poke my head out the door becuz of wildfire smoke today...worst ever

MZ: The biggest piece I had over the weekend was more confirmations of continuing education of the lower denominations in Iraq. I had a couple more confirmations that Sudani announced on television that they are planning to raise the value of the dinar during his currency administration. I thought that was a great one. 

MZ: Another big one over the weekend is any folks are commenting from Iraq that they now have control over their own oil revenues. If this is a fact it means that bills have been paid and we are about to see the official announcement that Iraq is out of chapter 7. This is huge. We know they met all the requirements some time ago. But it now appears they now have full control of their oil revenues. This is a huge piece….We just need an official announcement…before we can set up the band and have a party. 

Member: I thought that happened months ago……hmmmm  Must have been fake news then 

Member:  mark last Saturday I walked into my bank to get cash and saw some pallets of what looked to be new equipment…. make me excited

MZ: Today is congress first day back to work and they are facing a government shutdown on Sept 30th. 

Member: Mark- Is your gut still screaming between the 11th and the 15th?

MZ: Yes it is….I know that chatter from Iraq has been fantastic. 

Member: Maybe 9-11 will be our big day?

Member: I’m afraid we have to wait until after elections. 

Member: I am still holding out hope for Oct. 1st which is the first day of the new fiscal year here in the US….

Member: I can’t wait until all of this is over.

MZ: I will be traveling back stateside tomorrow….for kids birthdays ect…..Zester will be hopefully filling in for e this week. 

Member: Thanks to all for the encouragement…..have a wonderful day. 

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

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Note from PDK: Please listen to the replay for all the details and entire stream….I do not transcribe political opinions, medical opinions or many guests on this stream……just RV/currency related topics.

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THANKS FOR JOINING. HAVE A BLESSED DAY! SEE YOU ALL THIS EVENING FOR NEWS @ 7:00 PM EST ~ UNLESS BREAKING NEWS HAPPENS!

DINAR REVALUATION REPORT: Potential Lifting of Ban on Iraqi Banks Within Six Months, 10 SEPT

 Potential Lifting of Ban on Iraqi Banks Within Six Months

As of September 9, 2024, a significant development in Iraq's financial sector is anticipated, with the possibility of lifting the ban on 14 Iraqi banks that were previously prohibited from conducting US dollar (USD) transactions. 1 The ban was initially imposed due to concerns over illicit activities, including money laundering and the potential redirection of US currency to sanctioned individuals or jurisdictions. However, recent assessments suggest that the banks' compliance mechanisms and regulatory oversight have improved, paving the way for a potential reversal of sanctions. 2

The Impact of the US Dollar Ban on Iraq

The imposition of the ban in recent years has had a significant economic impact on Iraq, affecting the Iraqi dinar's stability and leading to a tightening of wire transfer controls between the US Treasury and the Central Bank of Iraq. This, in turn, caused a decline in the value of the Iraqi currency.  1 The USD plays a crucial role in the Iraqi economy, and the ban's effects were felt across various sectors, particularly in trade and investment.

Iraq's Strides Towards Economic Stability

The financial advisor to Iraq's Prime Minister, Mazhar Muhammad Salih, has highlighted the role of the central bank's decisions in reducing inflation rates and enhancing the value of the national currency. 2 Salih emphasized that sustainable economic growth, driven by high productivity, good employment, real investment, and innovation, is essential for the currency's strength. Moreover, technology and innovation are seen as key factors in improving productivity and economic growth, which can, in turn, enhance the currency's value.

Reforms and the Future of Iraqi Banking

Despite ongoing challenges, including corruption within the banking sector. 3Iraq's financial system has shown signs of resilience and improvement. The potential lifting of the ban on Iraqi banks is a testament to the Iraqi government's efforts to reform and stabilize its economy. However, the effectiveness of these policies in confronting real economic challenges and the ability of the Iraqi economy to achieve sustainable growth remain subjects of ongoing debate and scrutiny.

Conclusion

The anticipated lifting of the ban on Iraqi banks within six months signifies a positive step forward in Iraq's economic recovery and financial stability. This development reflects the progress made in addressing previous concerns over illicit financial activities and underscores the importance of continued reforms and improvements in the banking sector.

Economist: The Ban On Iraqi Banks May Be Lifted Within Six Months, 10 SEPT

 Economist Ahmed Abd Rabbo revealed today, Sunday, that 

Oliver Wyman has conducted a comprehensive review of the conditions of Iraqi banks, and its report may be issued after six months.
 
Abd Rabbo said in a special statement to the Maalouma Agency,
 
“The decisions of that company regarding the sanctioned banks will be binding on the Central Bank of Iraq and the US Federal Reserve,” noting that
 
“reforming the banking system facilitates the process of economic reforms.”  He continued,
 
"The company's final report may lift the ban on Iraqi banks, while it was positive," pointing out that
 
"lifting the ban on Iraqi banks will help support the Iraqi economy."
 
It is noteworthy that America imposes several sanctions on Iraqi banks in an attempt to pressure the Iraqi government to pass various policies.    https://almaalomah.me/news/75810/economy/اقتصادي:-الحظر-على-المصارف-العراقية-قد-يرفع-خلال-ستة-اشهر   

GOLDILOCKS CC NOTES HIGHLIGHTS, 10 SEPT

Summary

New IRS Exchange Tax Law effective September 9, 2024, impacts cryptocurrency trading, international treaties, and currency valuations.

Highlights

• 🚨 New IRS Tax Law: Effective today, impacting cryptocurrency transactions.
• 🌍 International Treaties: Countries signing agreements affecting trade and currencies.
• 💱 Currency Backing: All currencies to be backed by national commodities.
• 📊 Digital Asset Regulations: New guidelines for reporting gains and losses.
• 🏡 Real Estate Tax Reporting: New requirements for real estate transactions.
• 🔄 Compliance Deadline: New regulations effective September 16, 2024.
• 📅 Future Updates: More changes expected in October regarding currency regulations.

Key Insights

• 📈 Impact of New Tax Regulations: The IRS now requires brokers to report cryptocurrency gains and losses, creating obligations for traders and affecting tax liabilities. This change emphasizes the growing scrutiny of digital assets.
• 🌐  Global Trade Agreements: As countries finalize international treaties, local currencies will replace the US dollar in trade, potentially reshaping global economic dynamics and currency stability.
• 🏦 Commodities-Backed Currencies: The trend of backing currencies with physical commodities like gold and silver increases their stability and trust, hinting at a return to more sound financial practices.
• ⚖️ Real Estate Transactions: New rules require detailed reporting for real estate purchases, reflecting an increased focus on transparency in asset transactions and potential tax revenue.
• 🔍 Regulatory Oversight: The integration of various financial regulatory bodies suggests a more cohesive approach to monitoring currency exchanges and trading practices, enhancing accountability.
• 📅 Upcoming Changes: Significant amendments to currency regulations are set for mid-September 2024, indicating a rapidly evolving financial landscape that investors should monitor closely.
• 💬 Community Engagement: Encouraging dialogue and questions among viewers fosters a supportive community, emphasizing the importance of staying informed during this period of change.

DINAR REVALUATION HIGHLIGHTS: " IRAQ IS IN THE FINAL STAGES OF THE MONETARY REFORMS