Iraqi PM Al-Sudani: The Development Road Project will create a "different Iraq", 15 SEPT

 Shafaq News/ On Saturday, Iraqi Prime Minister Mohammed Shia Al-Sudani stated that the vital Development Road project "will transform Iraq from a landlocked country to an open one."

Speaking at a discussion seminar in Baghdad on the project and available investment opportunities, Al-Sudani emphasized that “the Development Road is not just a corridor for transporting goods as some might think; there will be projects along the entire route.”

"This project will help bring the sea into the heart of Iraq, reaching Turkiye and Europe.”

Al-Sudani also noted that the existing corridor, which is under design and study, includes routes for transporting oil and gas, connecting communications, and establishing industrial cities.

“Due to recent developments in the Red Sea, we have asked the World Bank to expedite the implementation of the Development Road project using the original route.” The PM said, highlighting that “several EU countries have shown interest in participating in the project.”

Job Creation

The Iraqi PM asserted that the Road project, along with Al-Faw Port and the new economic, industrial, residential, and city projects, as well as railways, roads, and industrial developments, will create “a different Iraq” and provide job opportunities for graduates and job seekers. 

Housing Needs

Al-Sudani noted that Iraq needs between 2.5 to 3 million housing units, which will require construction projects to meet this demand.

Reviving Iraq's Industry

The Prime Minister promised to restore Iraq's leadership role in local industry as it was in the 1960s and attract people to work in private sector projects.

$20B Road Project

The project, formally launched during Turkish President Tayyip Erdogan's visit to Baghdad in April, is estimated to be worth around $20 billion. It includes "a 1,275-kilometer (792-mile) rail and road network" designed to facilitate the movement of goods between Europe and the Gulf region.

"Iraq is home to roughly 10% of global oil reserves and accounts for 5% of global production. Energy will hence play a pivotal role in the scheme." Iraqi officials believe the project could dramatically reduce the cost of trade between China and Europe.

The project's investment budget is estimated at $17 billion, with $6.5 billion allocated for highways and $10.5 billion for the electrified railway. It will be implemented in three phases, with completion dates set for 2028, 2033, and 2050.

The Development Road Project is expected to create 100,000 jobs in its first phase and up to one million jobs once completed.

LATEST FROM MARKZ, 15 SEPT

MarkZ 

  [via PDK] 

 The key piece of news this morning is I finally found a bond person NOT under an NDA. A really big bond deal…I did a little poking and was informed there is a final bond contract getting paid on the 18th...it appears that starting on the 18th they are not making them sign an NDA on bond deals. 

What could this possibly mean? 

To me this is huge good news. To me this means they plan on having most bonds done by the 18th. Because then it won’t matter about the secrecy...Bonds and Currencies are connected.  The plan was to do historic bonds…then a revalue (RV) then a reset…So I am closely watching the next 4 days…

Remember though…no one knows the exact timing...Think about it.  Today is the 14th. If suddenly they don’t need NDA’s in 4 days…then to me we should go before that…I think this is huge…I am very excited with this news…. 

  Question:  ...are the redemption centers working the weekend?  

 MarkZ:  My banking crew have a “heightened alert“ for this weekend. I am hoping this means something, but we have seen this before. So stay hopeful but calm...The anticipation is palatable…all around the world…people know something is about to happen.   We can feel it.

QFS and Iraq: A New International System Unveiled

DINAR REVALUATION REPORT: Quantum Financial System Activation and Its Impact on Iraq's Currency Revaluation in 2024, 14 SEPT

 Quantum Financial System Activation and Its Impact on Iraq's Currency Revaluation in 2024

The activation of the Quantum Financial System (QFS) in 2024 marks a significant shift in global finance, with a notable impact on Iraq's currency dynamics [1]. As of September 14, 2024, the International Monetary Fund (IMF) has completed its Article IV consultation with Iraq, highlighting the country's economic progress and the challenges it faces due to fiscal expansion and oil price fluctuations [1].

Economic Progress and Challenges

Recovery and Fiscal Expansion

Iraq has experienced a strong recovery in its non-oil economy following the contraction in 2022, thanks to a large fiscal expansion initiated in 2023. This expansion supported by the QFS has been instrumental in boosting economic activities [1].

Fiscal and External Imbalances

However, the ongoing fiscal expansion has exacerbated imbalances, leading to a deterioration of fiscal and external accounts. The risk of medium-term sovereign debt stress is high, and external stability risks could emerge if policy adjustments are not made [1].

Currency Revaluation

Impact of Fiscal Policies

The currency revaluation in Iraq, effective as of February 2023, has played a crucial role in controlling inflation, which declined to 4 percent by the end of 2023 [1]. This stabilization was a direct result of lower international food prices and the normalization of trade finance, facilitated by the QFS.

Access to Dollars and Dinar's Value

In a separate development, the United States has restricted Iraq's access to its dollars, aiming to curb money laundering benefiting Iran and Syria [2]. This has led to a drop in the value of the Iraqi dinar, causing public unrest and impacting the dinar's exchange rate, which has jumped to around 1,750 to the dollar in some parts of the country [2].

Policy Adjustments and Structural Reforms

Need for Sound Policies

The IMF Executive Board has underscored the need for sound macroeconomic policies and structural reforms to secure fiscal and debt sustainability in Iraq [1]. These reforms are critical for advancing economic diversification and achieving sustainable, inclusive, and private sector-led growth.

Negotiations and Domestic Procedures

Iraqi officials are working to meet the requirements set by the Federal Reserve to reduce the scarcity of hard currency in the country [2]. New domestic procedures are being rolled out, and negotiations between Iraqi and U.S. officials are scheduled to address the currency issues [2].

Conclusion

The activation of the Quantum Financial System in 2024 has brought about a pivotal moment for Iraq's currency revaluation and financial readiness. While the initial impact has been positive, with improved domestic stability and economic recovery, the country faces significant challenges. Strategic policy adjustments and structural reforms are crucial to ensure long-term fiscal health and external stability [1].

DINARLAND HIGHLIGHTS : QFS ACTIVATED!!, 14 SEPT

Summary

QFS activated, Iraq Dinar revaluation updates suggest exciting developments this week. 

Highlights

• 🚀 QFS Activated: All systems go for currency revaluation this week!
• 💰 Dinar News: Anticipation grows for Iraq’s banking reforms and potential rate changes.
• 📈 Economic Renaissance: Iraq focuses on maximizing non-oil revenues and reducing debt.
• 🔮 Weekend Chatter: Increased speculation about significant announcements over the weekend.
• 📊 Financial Stability: Iraq’s foreign reserves can cover expenses for a year, indicating economic strength.

Key Insights

• 🔑 QFS Activation: The activation of the Quantum Financial System is seen as a pivotal moment for currency revaluation, indicating readiness for significant financial shifts.
• 🌍 Iraq’s Economic Reform: The focus on banking reforms and promises from leadership signal a strong commitment to economic stability and growth.
• 📉 Debt Reduction Focus: Iraq’s efforts to reduce debt and maximize non-oil revenues highlight a strategic shift towards sustainable economic practices.
• 📅 Market Anticipation: The buzz around potential announcements this weekend suggests a crucial period for investors in Iraqi Dinar.
• 💵 Foreign Reserves Strength: With $113 billion in foreign reserves, Iraq demonstrates a solid financial foundation, enhancing confidence in its currency’s future.
• 🤔 Viewer Caution: Emphasizing the need for personal research underlines the importance of informed investment decisions amidst speculation.

Iraq's Digital Banking Revolution: 2024 Conference Highlights

DINAR REVALUATION REPORT: Governor of the Central Bank of Iraq Foresees a Surge in Digital Banking, 14 SEPT

 Governor of the Central Bank of Iraq Foresees a Surge in Digital Banking

On September 14, 2024, the Governor of the Central Bank of Iraq (CBI), Ali Al-Allaq, made a significant prediction during the Electronic Payment Conference on Financial Stability in Baghdad. 1 Al-Allaq anticipated a substantial increase in the number of digital banks in Iraq, potentially surpassing the digital banking presence in neighboring countries. 1 This projection comes as Iraq moves toward embracing the digital transformation that is reshaping the banking sector across the Arab world. 3

Recognizing the Global Trend of Digital Banking

Ali Al-Allaq highlighted the global trend of digital banking, noting that digital banks are rapidly expanding worldwide, with annual financial transactions amounting to approximately 7 trillion by 2027. 1 Al-Allaq emphasized the importance of aligning with technological advancements and their application in various operational directions.  1

Iraq's Position in the Digital Banking Landscape

Al-Allaq stated that Iraq is expected to be one of the leading countries in digital banking, with a greater number of digital banks compared to its neighbors. 1 This prediction is based on the country's strategic efforts to stimulate and focus on the digital banking sector. 1

Regulatory Frameworks and Digital Banking in Iraq

Before launching the licensing round for digital banks, the CBI conducted extensive studies and reviewed experiences from other countries. 1 The bank has established the necessary rules and regulations for licensing this type of bank. 1 This approach is in line with the Arab Monetary Fund's emphasis on the importance of digital transformation in reshaping the banking sector in Arab countries. 3  The fund advocates for regulatory frameworks that balance stimulating digital transformation with managing and mitigating risks. 3

Digital Banking Regulations in Iraq

The CBI has launched a regulation for licensing digital banks in Iraq on March 28, 2024. 5 Digital banks operating in Iraq must understand and adhere to the regulatory requirements set by the CBI, including capital requirements, shareholder composition, and other licensing conditions. 5 Digital banks must also implement robust governance and risk management frameworks, comply with anti-money laundering and counter-terrorism financing regulations, and enhance cybersecurity measures. 5

Conclusion

The Governor of the Central Bank of Iraq's prediction of a rise in digital banks in Iraq, surpassing those in neighboring countries, is a testament to the country's strategic vision for the future of banking. 1 This projection is supported by the CBI's proactive approach to creating a conducive regulatory environment for digital banking. 1 As Iraq moves forward in its digital banking journey, it is poised to become a leader in the region, aligning with global trends and embracing the digital transformation that is reshaping the banking sector. 1