I was...told Wednesday in my conversation with my CBI contact that Baghdad now has installed the huge TV screens...They also told me that they are getting ready to broadcast the swap out of the currency video...they do not expect to conduct the swap out until late this year, after the US elections and my information tells me that January is most appropriate.
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...recently they have told us this electronic platform is going away at the end of 2024...
corruption and money laundering is now all ending and has to end or we will not see any reinstatement. T
he instrument to do this is the Electronic Banking practices...
Having the US Treasury inside of Iraq now helping with all these banking reforms is a VERY good thing not a negative issue. It is absolutely going to push the RV process for us...We might even say it is the LAST piece to put in place in the RV puzzle to clearly see the end to this RV saga.
FRANK26: "IRAQI CITIZENS OPEN BANK ACCOUNTS FOR THE MONETARY REFORM!!!"......F26
Barzani to Al-Alaq: The number of registered individuals in the “My Account” banking project has exceeded half a million
9/9/2024
- Baghdad
Kurdistan Regional Government Prime Minister Masrour Barzani confirmed today, Monday, that the number of people registered in the "My Account" project has exceeded half a million individuals.
A statement by the Central Bank, received by "Al-Eqtisad News", stated that "the Prime Minister of the Kurdistan Regional Government, Masrour Barzani, received the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq."
He explained that "during the meeting, the Prime Minister highlighted the reforms achieved in the banking sector in the Kurdistan Region, and touched on the (My Account) banking project, in which the number of registered public sector salary recipients has exceeded half a million individuals so far, as it is expected that the salaries of two hundred thousand newly registered people will be disbursed through (My Account) next month." He pointed out that "the two sides agreed on the importance of continuing the project, and supporting and following up with the Central Bank." The Prime Minister of the Region expressed his "thanks to the Governor of the Central Bank for his distinguished support for the (My Account) project, and for the banking reforms in the Regional Government," noting "the growing interest of local and international financial institutions in coordination, cooperation and support for the financial strategy of the Regional Government."
He continued, "The meeting discussed accelerating the achievement of financial inclusion in the Kurdistan Region, as part of the strategic goals of the Central Bank of Iraq and its steps towards digitizing the banking sector."
Kurdistan Finance: “My Account” Banking System Provides Loans Worth 15 Million Dinars to Employees
9/8/2024
The Minister of Finance and Economy in the Kurdistan Region, Awat Sheikh Janab Nouri, stated on Sunday that the "My Account" banking system will provide advances and loans of no less than 15 million dinars to employees who have deposited their salaries in this account.
The Ministry of Finance and Economy quoted Nouri as saying that the "Hisabi" system is an advanced banking system, adding that most salaried employees are expected to register in this system by the end of this year.
He added that through this system, employees can obtain advances and loans worth 15 million or more.
On Tuesday, September 3, Kurdistan Region Prime Minister Masrour Barzani described the banking system in the region as “more powerful and effective,” while stating that 500,000 public sector workers had been introduced to the “Hisabi” banking system approved by the regional government for the disbursement of salaries and financial dues.
They have to do something about that parallel market. The reason why it's so successful is because people prefer to get the US dollars if they can. If businesses and travelers want to get more bang for their buck, they don't have a problem with selling the US dollars for more Iraqi dinars, more than the official exchange rate. It puts Iraq in a pickle...Do they raise the rate of the Iraqi dinar or do they lower it?
Article: "The parallel market will be overturned. Sources: Upcoming decisions from he central bank that will confuse the markets and raise exchange rate."
It's interesting they don't say which exchange rate...
Quote: "He stated the decisions are likely to raise the dollar exchange rate in the parallel market..." When they say raise the dollar exchange rate, that's not good for us. That means the dollar is rising up against the dinar...On the black market people are getting 1505 dinars for every $1.00... which is much higher than the 1320 for every dollar, the official exchange rate...It's getting out of whack again. As it gets harder and harder to get the US dollar, you're going to see the black market really start to increase. I'm curious to see what kind of decisions the central bank is going to make...
Strategy to Eliminate the Black Market and Strengthen the Iraqi Dinar
In a bold move aimed at strengthening the Iraqi Dinar, the government is devising a strategy to eliminate the black market, a key factor in currency value depreciation [1]. As of September 11, 2024, the Iraqi government has identified the black market as a significant obstacle to economic stability and the Dinar's value [1].
The Bilateral Effect of Currency Exchange
One of the challenges Iraq faces is the smuggling of dollars to Iran, a problem exacerbated by pro-Iranian proxies [1]. Prime Minister Shia Al-Sudani's commitment to tackling this issue could be pivotal in restoring economic stability [1].
Navigating Currency Volatility
The Iraqi Dinar has experienced persistent exchange rate volatility, with noticeable discrepancies between the official Central Bank of Iraq (CBI) rate and the black market rate [6]. These fluctuations have caused uncertainty for businesses and consumers alike [6].
The Bold Strategy: Currency Flotation
Economists propose a daring strategy to address volatility and the black market premium: currency flotation [6]. This involves removing the Dinar's peg to the US dollar, allowing its exchange rate to be determined by market forces [6]. While this may lead to short-term depreciation, advocates argue it could establish greater long-term stability [6].
Control Measures
In response to these challenges, Iraqi authorities have implemented control measures including restrictions on foreign exchange transactions, mandating domestic transactions in Dinars, and increased scrutiny of international remittances [6]. However, the effectiveness of these measures is still under evaluation [6].
A Managed Float Approach
Some analysts suggest a more measured approach, advocating for a "managed float" system [6]. This would allow for market flexibility while maintaining a level of CBI control, potentially avoiding excessive volatility [6].
Conclusion
The Iraqi government's strategy to eliminate the black market and strengthen the Dinar is a critical step towards economic stability. By addressing currency volatility and implementing effective control measures, Iraq aims to reinforce its national currency and enhance its economic standing [6].
Iraqi Dinar updates reveal upcoming central bank decisions affecting the parallel market, potential increases in exchange rates, and comprehensive banking reforms.
Highlights
🛢️ Five oil and gas laws are being discussed in Parliament.
📉 Militia Man warns the parallel market may face upheaval.
💵 Central bank decisions could confuse markets and raise exchange rates.
📊 Mark Z predicts a significant shift in dollar-to-dinar exchange rates.
🏦 Central Bank announces a comprehensive banking reform roadmap.
🏴☠️ Fulu suggests eliminating the black market by raising currency value.
🔒 Frank 26 reports on mechanisms to secure funds from potential theft.
Key Insights
🛢️ Legislative Changes: The discussion of five oil and gas laws indicates a potential shift in Iraq’s economic landscape, impacting the Dinar’s value. 📈
🔄 Market Disruption: Militia Man’s concerns about the parallel market highlight the risks of illegal currency trading, signaling possible government intervention. ⚠️
📊 Exchange Rate Predictions: Mark Z’s forecast of a drastic change in exchange rates suggests volatility ahead, impacting investors holding Dinars. 💔
🏦 Banking Reforms: The Central Bank’s roadmap for comprehensive reforms aims to enhance foreign transfers, potentially stabilizing the economy. 🌐
💰
Black Market Elimination: Fulu’s strategy to raise currency value to eliminate black market profits presents a bold approach to strengthening the Dinar. 🏆
🛡️ Security Measures: Frank 26’s report on securing funds indicates a focus on financial stability and fraud prevention, crucial for investor confidence. 🔐
⏳ Revaluation Timing: With discussions of a revaluation this year, the current strategies may set the stage for a favorable environment for Dinar holders. ⌛
