DINAR REVALUATION REPORT: Central Bank of Iraq's Decision to Halt Currency Auctions, 15 SEPT

 Central Bank of Iraq's Decision to Halt Currency Auctions

In a significant move aimed at strengthening the Iraqi dinar and curbing illicit financial flows, the Central Bank of Iraq (CBI) has announced plans to stop the daily currency auctions. 1 The decision, expected to take effect by the end of 2024, marks a shift in Iraq's financial policy to combat corruption and financial crimes related to currency exchange. 4

Background on Currency Auctions

Historically, the CBI has conducted daily currency auctions to sell U.S. dollars to private banks and companies, converting oil revenues into Iraqi dinars. 5 This mechanism has been central to Iraq's foreign exchange market, but it has also been a source of concern due to potential misuse and illicit cash flows, particularly to neighboring Iran. 1

The Decision to Halt Auctions

The CBI's decision to halt the currency auctions is driven by a commitment to financial reform and integration into the global economy.  6 By terminating the electronic auction platform for international financial transfers, the CBI aims to prevent dollar leakage and money laundering while maintaining the stability of the Iraqi dinar against foreign currencies. 6

Impact on the Iraqi Economy

The cessation of the currency auctions is expected to have far-reaching effects on Iraq's economy. On one hand, it could lead to a reduction in the availability of Iraqi dinars, affecting the government's ability to pay public sector salaries and meet other financial obligations. 5 On the other hand, the move is anticipated to strengthen the dinar by reducing uncontrolled dollar outflows and enhancing the integrity of Iraq's financial system. 4

Future of Financial Transactions in Iraq

Following the closure of the currency auction window, Iraqi banks will be required to establish correspondent relationships with foreign banks for conducting international transactions.  6 This transition to direct commercial banking transactions is part of a broader effort to reform Iraq's financial and banking sectors. 6

Conclusion

The Central Bank of Iraq's decision to stop the currency auctions by the end of 2024 is a bold step toward financial reform and economic stability. While the move may present short-term challenges, it is anticipated to have positive long-term effects on the Iraqi dinar and the country's financial integrity. 1

IMPORTANT IRAQ NEWS: ARE THE CENTRAL BANK’S DECISIONS ENOUGH TO STOP INFLATION AND STRENGTHEN THE CURRENCY IN IRAQ? BY MNT GOAT, 15 SEPT

 ARE THE CENTRAL BANK’S DECISIONS ENOUGH TO STOP INFLATION AND STRENGTHEN THE CURRENCY IN IRAQ?

 As part of the Iraqi government’s efforts to improve the economic situation and stabilize the local currency, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed the role of the Central Bank’s decisions in reducing inflation rates and strengthening the value of the national currency.

While Saleh’s statements reflect the government’s commitment to achieving economic stability, many questions arise about the effectiveness of these policies in addressing real economic challenges.

The role of the Central Bank in stabilizing the currency: Saleh stressed that the monetary policies of the Central Bank, including decisions to raise or lower interest rates, play an important role in stabilizing the local currency. He explained that these policies aim to achieve a balance between the internal and external value of the currency, which is supposed to contribute to reducing inflation rates. While these measures are seen as economic stabilization factors, the question remains about the extent to which they will succeed in facing the challenges of rising inflation and other economic pressures.

Economic growth and strengthening the currency’s value: 

Saleh pointed out that sustainable economic growth strengthens the currency’s value and stability. He stressed that the real factors affecting the currency’s strength include high productivity, good employment, real investment, and innovation. In this context, many wonder about the Iraqi economy’s ability to achieve this sustainable growth, in light of the challenges it faces, such as low oil prices and political crises.

Technology and Innovation:

Stimulating Productivity and Economic Growth: Saleh noted that technology and innovation can play a crucial role in improving productivity and economic growth, which enhances the value of the currency. However, while innovation and technology are positive factors, achieving these goals requires a suitable environment for research and development, as well as effective investment support. In this regard, questions remain about the extent to which Iraq can meet these requirements amidst the current challenges.

The importance of political and administrative stability: 

Saleh also explained that political stability and the strength of the administrative system are important factors in enhancing confidence in the national currency. In this context, many people wondered about the extent of the political and administrative stability in Iraq, especially in light of the ongoing political crises and administrative challenges. Achieving political stability may be essential to achieving the desired economic goals.

DINARLAND HIGHLIGHTS!, 15 SEPT

Summary

Exciting updates on the Iraqi Dinar’s exchange rate reveal potential changes this weekend, alongside a shift towards diversifying economies away from oil reliance.

Highlights

• 🔥 Exciting Dinar updates may lead to exchange appointments starting Saturday!
• 🌍 Countries are diversifying their economies, moving away from oil dependence.
• 🌾 Agriculture and natural resources are becoming economic backbones.
• 📈 Infrastructure investments are crucial for export success.
• 💪 Reduced debt leads to sustainable economic growth.
• 🌱 Education and training are vital for success in new industries.
• 💬 Engage with local businesses to support economic shifts.

Key Insights

• 🔄 Economic Diversification: As countries shift from oil dependence, they are exploring agriculture and natural resources, paving the way for sustainable growth.
• 💡 Infrastructure Investment: Robust infrastructure is essential for exporting goods, making it a top priority for governments aiming to boost their economies.
• 🌱 Agricultural Innovation: Educating farmers in modern techniques enhances productivity, forming a crucial part of diversifying economies.
• 💰 Debt Reduction: By increasing non-oil revenue, countries can pay off loans faster, leading to healthier economies and reduced financial strain.
• 🌍 Global Interconnectedness: Economic shifts in one country can influence global markets, emphasizing the importance of collective growth strategies.
• 🎓 Skill Development: New industries require a skilled workforce; investing in education is essential for long-term success in diversified economies.
• 🤝 Community Engagement: Supporting local businesses and advocating for better policies can drive positive economic changes and foster community development.

Boosting Non-Oil Revenues: A Game-Changer for Economic Stability

PM Al-Sudani: Iraq must change government appointment policy, diversify economy, 15 SEPT

 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. ”

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."

INFO ABOUT BOND MOVEMENT FROM GINGER TELEGRAM ROOM , 15 SEPT

  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

DINARLAND HIGHLIGHTS: IRAQ'S RESERVES STRENGTHEN THE DINAR'S VALUE