Shafaq News/ On Saturday, Iraqi Prime Minister Mohammed Shia Al-Sudani stated that his country “cannot continue” with its current policy of government sector appointments.
During a meeting with community leaders and farmers from the Al-Zubair district and areas west of Basra, Al-Sudani emphasized the need for Iraq “to diversify its economy and reduce its dependence on oil, which is the main source of revenue in the financial and economic sectors.”
He stressed that the government must protect national products, including agricultural ones, according to existing laws, calling on governors to support agricultural associations” and ensuring that association leaders “are involved in managing and resolving farmers' issues.
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The PM also proposed studying loans for agricultural associations or investors to establish agricultural product factories.
Additionally, Al-Sudani directed the formation of a committee to address issues with renewing farmers' contracts and to set guidelines for providing fuel for agricultural machinery.
"We must adhere to agricultural timing for border crossings, coordinate with security agencies to protect local products, and conduct a study on rural roads to improve them through service and engineering efforts."
The following insights were shared by Batman, Liberty Lounger Extraordinaire - pertaining to Bond movement. Very positive and encouraging info💥 9.14.24
💢 Batman: Thanks for your thoughts here, but no, it’s not crazy, as the payouts to the large bondholders will only take one week and not the 6-12 months you are stating. I know this as fact.
The redemption of the bonds will actually fund the GCR. This is how the gold will be transferred to back the new asset-backed currencies worldwide. Again, this is something I know as fact.
The facts I receive are not from another guru, or a Telegram channel or some other pundit. They come directly from the source. People can either accept that or dismiss it. If it helps some people, then great. If people don’t want to believe that or if they want to dismiss it then so be it.
Batman continued: Yes, payments being made this week will include instant liquidity. The percentage of the monetary value of the legitimate bonds outstanding I believe will be well over 90%
💢 Ginger adds: Yeah, it's a true fact that there are different codes at different stages of the GCR / RV Happy Camper Event. Certain codes can be input during T3 payout stages - but the most significant code activation step, in my humble opinion, is when Mike Cottrell inputs the key codes as the behest of the IMF which results in all the currencies of the world having asset backed value; and at which point all illegal banking derivatives are zeroed out instantaneously. What a day that will be!!! 🎉🕊️⭐🥰 9.14.24
Article: "Iraq buys nearly 52 tons of gold in three years" Quote: "According to the latest schedule published in September by the Council...Iraq bought 51.9 tons of gold during the previous years from 2022 until September2024...Iraq bought 33.9 tons of gold in 2022, 12.3 tons in 2023, and 5.7 tons in 2024, including 3.1 tons in February and 2.6 tons in May."
Clare
Article: "Iraqi state banks account for 88% of banking sector investments"
Quote: "The Prime Minister's Advisor for Economic Affairs, Mazhar Mohammed Salih, confirmed...government banks account for 88% of the banking system's investments, pointing out the necessity of reforming the banking system on the basis of market work, similar to international banks."
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."
ECONOMIC RENAISSANCE AND UNPRECEDENTED PROGRESS.. IRAQ MAXIMIZES ITS NON-OIL REVENUES AND REDUCES ITS DEBTS
The country has witnessed an unprecedented economic renaissance, as ambitious government plans have achieved remarkable successes, most notably food security, achieving self-sufficiency in grains, stimulating markets and creating competition between them, in addition to economic growth and reducing foreign debt to its lowest levels.
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, told the Iraqi News Agency (INA): “The government has worked to establish a solid food security system based on the successful integration of agricultural and financial policies,” indicating that “government support for grain producers has formed a safety valve in encouraging agricultural production of grain crops, which in turn has encouraged farmers to provide nearly 6 million tons of grains during the year 2024, which is the quantity that matches the country’s need for grains, and it has been considered one of the gateways to self-reliant food security.”
He explained that “these measures were accompanied by providing the food basket with types and quantities that affect the lives of 40 million citizens, in addition to the move to revive the markets, which is a type of competitive commercial investment.”
He pointed out that “the General Company for Central Markets is one of the formations of the Ministry of Trade, as it announced its new policy last March, that it will continue to refer its sites and markets to investment in accordance with the requirements of Investment Law No. 13 of 2006, as amended, in order to achieve economic balance and support the Iraqi consumer.”
He added that “the marketing policy of the General Company for Central Markets, through the strategy of partnership between the state and the private sector, has undertaken to activate a pattern of market stability by providing competitive marketing outlets that meet the needs of the poor and low-income classes, through the best consumer products in terms of quality assurance and price stability,” stressing that “this issue is consistent with the pivotal role played by the Competition and Anti-Monopoly Council issued under Law 14 of 2010, which aims to protect purchasing rights from monopoly and manipulation.”
He added, “The supervisory and regulatory role of the Ministry of Commerce in regulating central markets comes within the framework of what can be called (competitive central consumer markets), which are markets that witness strong competition between companies and sellers to provide consumer products and services, as companies compete to offer the best prices, and ensure product quality and quality services to attract consumers, which leads to improving the overall consumer experience.”
He added, “Competitive central markets that operate on the basis of investment by the private sector are characterised by the following:
1- Diversification of products, by providing a wide range of products and services from different brands.
2- Creating a sustainable climate of competitive prices and suppressing monopoly, as sellers will seek to offer price promotions and discounts to encourage customers to buy.
3- Providing logistical services to consumers, which are added services such as delivery services, loyalty programs, or after-sales services that increase the attractiveness of the market.
He added, “Companies displaying their products in competitive central markets will practice ‘innovation’ by offering new or innovative solutions to their products or how they are presented, to remain attractive in a new climate of competition in organized markets.”
He noted that “competitive central markets will rely on strong distribution systems to provide access to them, enabling consumers to easily access the products offered by central markets.”
He added, “Competitive investment-based central markets will enable companies with solid brands to benefit from the capacity and role of central markets throughout the country to always offer something distinctive that suits the lifestyle and ways of life by improving their products using the best technologies to increase their market share.”
As for indicators of stability and economic growth, Saleh stated that “growth in the non-oil GDP has reached 6 percent, in light of the very moderate price growth rate, and according to the latest figures, it has only exceeded 3.7 percent annually, which means that the country is witnessing high price stability and development.”
He pointed out that “Iraq’s external debts have fallen to their lowest level in the last forty years, not exceeding $10 billion, and the government is following a precise program to settle the external debt, which constitutes less than 9 percent of the country’s total foreign exchange reserves, which are close to $108 billion, and are the highest foreign reserves in the country’s monetary and financial history.”
For his part, researcher and specialist in financial and banking affairs, Mustafa Hantoush, confirmed that “the Iraqi economy during the past three years has witnessed a number of correct trends, including:
1- Supporting the private sector with Law No. 18 of 2023 (Workers’ Retirement), which will guarantee retirement rights for all workers in Iraq.
2- Supporting the culture of electronic payment that would provide high-level financial and banking services to the citizen, as well as determining the liquidity position and having a financial reading of the market.
3- Work seriously to complete the designs and requirements for starting the (Development Road) project, which is considered the basis for opening the transportation economy to Iraq, and which is a complementary project to the Faw Port.
4- Establishing the (Service Effort) Committee, which provided tangible services in the capital, Baghdad, after long years of neglect, which would stimulate the labor and construction market in the capital and reduce transportation costs and time.
5- Heading towards residential complexes (adjacent to cities) and renegotiating with the Korean Hano Company.
He pointed out that, “Despite these measures, the Iraqi economy still needs many steps, including:
-1Effective monetary policies (lending – attracting deposits – financing investment) that would create a cash cycle from surplus to deficit.
2- Building the private sector through an accelerated pace using models (private sector budget – loan budget) that will activate the infrastructure of the private sector (cities or industrial or agricultural or tourist areas – roads to serve investment – investment electricity) with an available and known loan budget with reasonable conditions.
3- Protecting the local product through (the state purchasing the local product – closing borders and unofficial outlets – industrial and agricultural dollars).
4- Effective international negotiation on files such as (producing 25 thousand megawatts of electricity on credit with Siemens – establishing the international company for the port of Faw – increasing Iraq’s share of oil production and export
5- Establishing a sovereign investment fund (domestic) in dollars after negotiating with the American side, to which part of the oil revenues in dollars will go and which will be invested in safe local investments such as (real estate – oil and gas investments) and others.
6- Establishing a real estate policy consisting of (real estate reconciliation with agriculture – supporting economic construction complexes – distributing land to those entitled to it – launching funding for well-studied housing initiatives).
In turn, researcher and academic Haitham Al-Khazaali explained that “the political stability that resulted from the government’s balanced policy, avoiding crisis management and focusing on achieving economic progress is what affected the stability of the security situation and then achieved economic stability.”
He added, “The economy is linked to security and reliance on political stability.”
Impact of Electronic Payments on Currency Revaluation
Enhancing Financial Transactions. 1
In the context of the potential revaluation of the Iraqi dinar in 2024, the role of electronic payments becomes a significant factor to consider. The revaluation of a currency involves adjustments to its official value, often in response to economic conditions and policy decisions. For the Iraqi dinar, discussions around revaluation have been tied to the country's economic reforms and its efforts to stabilize and strengthen its economy.
Electronic payments can facilitate smoother and more efficient financial transactions, which is crucial during a currency revaluation. They allow for real-time processing and settlement, reducing the risks associated with cash transactions and enhancing the overall liquidity of the currency.
Facilitating Central Bank Policies.
The Central Bank of Iraq can leverage electronic payments to implement monetary policies more effectively. This includes adjusting interest rates and managing the supply of money in circulation, which are essential during a revaluation.
Supporting Economic Reforms.
Electronic payments can support wider economic reforms by promoting transparency and reducing corruption. They can also improve access to financial services, which is particularly important in a country like Iraq, where economic recovery and stability are priorities.
Electronic Payments and the Iraqi Economy
Infrastructure Investments.
Iraq has been making significant investments in its infrastructure, including projects funded by international entities and governments. Electronic payments can streamline the disbursement and management of funds for these projects, contributing to the country's economic development.
Foreign Investment.
The revaluation of the Iraqi dinar could attract foreign investment, and electronic payment systems are essential for managing such investments. They enable quicker and more secure transactions, which can boost investor confidence in the Iraqi economy.
Challenges and Considerations
Cybersecurity.
The increased use of electronic payments necessitates robust cybersecurity measures to protect against fraud and cyber attacks. This is particularly important during a revaluation, when the financial system may be more vulnerable.
Access and Inclusion.
While electronic payments offer numerous benefits, ensuring that all segments of the population have access to these services is crucial. This includes addressing the digital divide and providing financial literacy training to promote inclusive economic participation.
Regulatory Framework.
A solid regulatory framework is necessary to oversee the implementation and use of electronic payment systems. This includes setting standards for transactions, consumer protection, and dispute resolution mechanisms.
Conclusion
The revaluation of the Iraqi dinar in 2024 could benefit significantly from the adoption and expansion of electronic payment systems. These systems can support economic reforms, enhance financial transactions, and attract foreign investment, all of which are critical for Iraq's economic recovery and stability. However, challenges such as cybersecurity, access, and regulatory frameworks must be addressed to ensure the successful integration of electronic payments.