DINAR REVALUATION REPORT: THE REDUCTION IN INFLATION CONTRIBUTES TO STRENGTHENING THE VALUE OF THE IRAQI DINAR, 10 SEPT

Iraq's Economic Growth and Inflation Rates in 2024: The Role of Central Bank Decisions

In 2024, Iraq's economy continues to demonstrate resilience and growth, significantly influenced by the decisions of the Central Bank.

 A key figure in this context is Mazhar Mohammed Saleh, the financial advisor to the Prime Minister, who has explained that the Central Bank's decisions have played a pivotal role in reducing inflation rates in the country. 1

 This reduction in inflation not only benefits the general public by stabilizing prices but also contributes to strengthening the value of the local currency, offering a more stable economic environment.

Economic Growth and Fiscal Policies

According to the International Monetary Fund (IMF), economic growth in Iraq is projected to continue, supported by a fiscal expansion policy. 1 This expansion is critical in absorbing the rapidly growing labor force, boosting non-oil exports, and broadening the tax base. The authorities are advised to focus on enabling private sector development, including reforms in labor markets, modernization of the financial sector, and restructuring of state-owned banks, along with reforms in the pension and electricity sectors.

Inflation Rates and Central Bank's Role

Inflation rates in Iraq have been on the decline, dropping from 7.5% in January 2023 to more stable levels, as reported by the official spokesman for Iraq's Ministry of Planning, Abdul Zahra Al-Hindawi.  5 This decrease is credited to the effective decisions made by the Central Bank, which have contributed to stabilizing the economy. The Bank's strategies have not only reduced inflation but have also played a crucial role in strengthening the local currency, thereby enhancing the country's economic stability.

Outlook and Challenges

Despite the positive outlook, medium-term vulnerabilities associated with oil price volatility have increased significantly. 1 Reducing oil dependence and ensuring fiscal sustainability while protecting critical social and investment spending will require a significant fiscal adjustment. The focus should be on controlling the public wage bill and increasing non-oil tax revenues.

Conclusion

In summary, Iraq's economic growth and the stabilization of inflation rates in 2024 are attributed to the strategic decisions of the Central Bank. These decisions have not only reduced inflation but have also contributed to strengthening the local currency. However, challenges remain, particularly in diversifying the economy and ensuring fiscal sustainability.

LATEST FROM CLARE: " REDUCING THE INFLATION RATE CONTRIBUTES TO STRENGTHENING THE VALUE OF THE LOCAL CURRENCY" , 10 SEPT

 Clare 

  Article:  "Prime Minister's Advisor: Central Bank Decisions Contribute to Reducing Inflation Rates in the Country"   

Quote: "The financial advisor to the Prime Minister, Mazhar Mohammed Saleh, explained that the decisions of the Central Bank contribute to reducing inflation rates in the country, and pointed out that economic growth contributes to strengthening the value of the local currency"

 Article:  "Zaha Hadid Architects Unveils Construction Progress of Central Bank of Iraq Skyscraper in Baghdad"  

Quote: "The Central Bank of Iraq (CBI) headquarters...is a new landmark on the banks of the Tigris River in Baghdad. Now the tallest building in the city, the 170-meter-tall skyscraper aims to echo the values of the institution: solidity, stability, and sustainability."

DINAR REVALUATION HIGHLIGHTS: " IRAQ IS IN THE FINAL STAGES OF THE MONET...

Massoud Barzani to Baghdad’s economic delegation: Differences end with dialogue, 10 SEPT

 Shafaq News / Kurdish leader Massoud Barzani stressed on Monday that the best way to end the differences is to resort to dialogue and understanding between the Iraqi federal government and the Kurdistan Regional Government.

This came during the reception of Massoud Barzani, at the resort of Salah al-Din, a high-level delegation from the federal government, including Fouad Hussein, Deputy Prime Minister of the Iraqi Minister and Chairman of the Ministerial Council for Economy, Mohammed Tamim, Iraqi Deputy Prime Minister and Minister of Planning, Taif Sami, Iraqi Minister of Finance, Hamid Naim Al-Ghazi, Secretary-General of the Iraqi Council of Ministers, and Ali Mohsen Al-Alak, Governor of the Central Bank of Iraq, in addition to a number of officials in the Iraqi government from the Ministries of Foreign Affairs, Planning, Oil, Industry, Industry, Metals, Labor and Social Affairs, as well as the General Secretariat of the Council of Ministers, the Central Bank and the Iraqi Securities Commission, according to a statement received by Shafaq News.

The statement pointed out that “during the meeting, the members of the guest delegation expressed their happiness to visit the Kurdistan Region, praising the historical role of President Barzani in building the new Iraq and the struggle against the dictatorship. They also reviewed President Barzani the objectives of their visit to the Kurdistan Region and their talks with the relevant authorities in the regional government.

The guest delegation stressed, according to the statement, that their meetings and meetings with the regional government were fruitful, stressing the need to seek to reach a full understanding in an atmosphere of trust and through a transparent and constructive vision in order to solve outstanding problems and overcome obstacles.

For his part, Massoud Barzani expressed his warm welcome to the high-level delegation to the Iraqi Federal Government, and expressed his hope that this visit and meetings will have positive results for the benefit of all Iraq and the Kurdistan Region.

Barzani also highlighted the history of the struggle and sacrifices of the people of Kurdistan in the twentieth century, and reminded the audience that after 2003 there were aspirations to build a new Iraq that would be an example of coexistence, partnership, democracy and pluralism in the region.

He stressed that the struggle of the Kurdish people was to consolidate partnership and guarantee their rights, and it is not possible to try to limit the historical cause and the countless struggles and sacrifices of Kurdistan and to shorten them on the issue of salaries or seeking to spread division and division in the Kurdistan Region, instead of respecting the demands of the Kurdistan people and compensating for the bombings and chemical weapons bombings.

The Kurdish leader stressed that “the best way to end the differences is to resort to dialogue and understanding between the Iraqi federal government and the Kurdistan Regional Government,” stressing that “we should all of us refer to the constitution in order to settle the problems while adhering to the political agreements reached between the constituent parties of the State Administration Coalition.”

Barzani praised the role and efforts of Prime Minister Mohammed Shia Al-Sudani in removing obstacles and addressing differences, and stressed the importance of having good intentions and a real and sincere will, in addition to commitment to the constitution and political agreements in order to make the dialogue process successful and settle problems.

It is noteworthy that the meeting was held in the presence of a high-level delegation from the Kurdistan Regional Government, including the Ministers of Interior and Finance, the Chief of the Cabinet and a number of officials of the Kurdistan Regional Government.

https://www.shafaq.com/ar/كوردســتانيات/مسعود-بارزاني-لوفد-بغداد-الاقتصادي-بالحوار-تنتهي-الخلافات

TNT : RATES OF IQD- $3.81, DONG: $.47, RUPIAH :$1.08 AND ZIM $.30, 10 SEPT

 TNT UPDATE 

GOOD MORNING TNT TODAY IS MONDAY SEPTEMBER THE 9TH 2024Sep 9

 LOOOOONG WEEKEND FOR EVERYBODY - NOTHING HAS CHANGED - WHEN I SAY NOTHING - I MEAN NOTHING - THEY ARE STILL SAYING IT'S ALL DONE AND WE'RE JUST WAITING1:23 PM

SOME MAY HAVE BEEN PAID OVER THE WEEKEND -DIGNITARIES - AND BANKS HAD MEETINGS - DISCUSSED ISSUES - CHANGING A FEW THINGS -1:24 PM

TALKED ABOUT HOW YOU MOVE MONEY - HOW MUCH AND TIME FRAME - MAYBE WE DID TALK ABOUT IT - TALKED ABOUT MOVING OVER 1 MILLION DOLLARS - COULD TAKE 24-48 HRS - 

BIG ISSUE IS TO DECIDE WHERE YOU WANT YOUR MONEY AND HOW TO DIVIDE IT -1:24 PM

YOU WILL HAVE TO SIGN A DOCUMENT BEFORE YOU WALK OUT THE DOOR REGARDING TAKING MONEY OUT OF THE BAC WITH YOU - EVEN WITH THE SECURITY IN THE PARKING LOT - YOU COULD BE FOLLOWED HOME IF YOU TAKE A BUNDLE OF CASH OUT - THEY WILL NOT BE RESPONSIBLE FOR IT - YOU HAVE THE OPTION TO DO IT ALL ELECTRONICALLY Sep 9

ONCE YOU HAVE MONEY IN THESE ACCT'S, YOU CAN USE THE ATM - BE CAUTIOUS - BE SECURE - KNOW SURROUNDINGS -1:27 PM

THOSE WERE THE THINGS THEY WERE DOING - MAKING SURE ALL THE BANKS - IT'S BRAND NEW TO THEM- ALL BANKS ARE INTERLINKED - SYSTEMS CONNECTED TO MOVE MONEY FASTER 1:27 PM

TAKE THAT BACK - HOW TO EXPLAIN WITHOUT OVEREXPOSURE - THERE WILL BE A SYSTEM FOR HOW TO DO THAT - NOT NECESSARILY A SYSTEM BUT A PROCEDURE FOR THE BANK TO MOVE MONEY AND VERIFY - EVEN ABLE TO OPEN ACCT AT ANOTHER BANK -1:28 PM

ALL HANDS ON DECK AT 6AM THIS MORNING - SOME BANKS HAD PEOPLE IN THERE TILL 8PM LAST NIGHT - THEY ARE THERE RIGHT NOW - THEY ARE WAITING FOR THE GO - GOT CALL AT 5:20 AM THIS MORNING - SAYING IT'S ABOUT TO GO - CALLED RAY - IT'S ABOUT TO GO - BUT WE ARE STILL HERE1:29 PM

OK - JUST GOT TEXT - TELL YOU THEY ARE THERE WAITING - THOUGHT TODAY WAS A GOOD DAY AT THE BANK - THE IMF SAID TUE/WED BUT THE BANKS WERE TOLD TODAY1:29 PM

RATES 

-DINAR - 3,81 

- DONG .47 

-RUPIAH 1.08 

- ZIM, BELIEVE IT OR NOT - SIX ZEROES 30  - .00000030 IS THE LOWEST RATE - IT'S OPENING THERE - CANNOT WAIT TO SEE THE NEW HIGH RATE - I HEARD SOMETHING 5 YEARS AGO - IF THEY OPEN UP AT SIX ZEROES 30 ,THAT'S 30 MILLION PER 100T NOTE Sep 9

RATES ON THE BOARDS - CERTAIN BANKS HAVE THEM - YOU ALL RUN TO EVERY BANK IN THE CITY - AND THEY SAY NO..... I DIDN'T SAY EVERY BRANCH OF EVERY BANK - BUT THE EXCHANGE LOCATIONS WILL HAVE THE RATES - WILL NOT GIVE IT TO EVERY PERSON YET - NOT GOING TO FIND IT AT EVERY LOCATION -1:32 PM

 EVERY BRANCH ISN'T GOING TO EXCHANGE - YOU ARE ONLY DISAPPOINTING YOURSELF - THE SYSTEM DOESN'T WORK LIKE THAT - EVERYONE WON'T HAVE THE RATE TILL IT'S LIVE SO CALL THE 800 NUMBER AND GO TO A BANK ACCREDITATION CENTER.1:32 PM

WHAT ELSE??/ ANYTHING??? - .......ALRIGHT - BASICALLY IT - HOW TO MOVE MONEY - WHAT DOLLAR AMT TO MOVE W/O HOLD - WIRES STILL 500K TO 1 MILLION - SUPPOSEDLY AGAIN, ALL DONE AND SIGNED OFF

Has the Kurdistan Regional Government agreed with Baghdad on the distribution of salaries?, 10 SEPT

 Mawazine News_Baghdad

The Kurdistan Regional Government announced today, Monday, that an agreement has been reached regarding the distribution of salaries of the region’s employees.

“The Iraqi and Kurdistan Regional Governments’ Economic Councils have reached an agreement on the issue of salaries and all obstacles and problems have been resolved,” Kurdistan Regional Government spokesman Peshwa Hawrami said in a statement received by Mawazine News. He explained that “the agreement stipulates that the federal government will send monthly salaries to the Kurdistan Regional Government, in return, the regional government will resolve the technical problems of salaries by the end of this year.”

https://mawazin.net/Details.aspx?jimare=254676

EXCERPTS FROM MARKZ, 10 SEPT

 MarkZ 

  [via PDK]   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 current administration. I thought that was a great one.

  PM Sudani – in the news this week was asked if they are planning on revaluing the Iraq currency…and he answered yes they were…during his administration.  Not sure how much longer he has got…but this is a huge one. He is telling us the goal during his administration is adding value and removing the zeros from the Iraqi dinar. 

 Question:  What is your gut feeling for RV Mark?  MarkZ:   …nobody knows the timing…but my gut feeling is between the 11th and 15th…just a guess…