DINAR REVALUATION REPORT: THE FISCAL DISCIPLINE OF IRAQ TO TAKE EXTERNAL BORROW, 15 SEPT

 Iraq's Financial Landscape: External Loans and Repayments in 2024

Iraq has indeed maintained a cautious approach to external borrowing, resulting in a relatively low level of external debt compared to its repayment obligations [1]. This fiscal discipline has been a strategic choice, influenced by the country's historical debt burden and a desire to avoid undue financial constraints [3].

Fiscal Policy and Economic Recovery

The Iraqi government's fiscal policy in 2024 has been centered around a three-year budget, the first of its kind [1]. This budget, marked by a significant fiscal expansion, played a crucial role in the country's economic recovery following a contraction in 2022 [1]. The budgetary expansion supported a robust non-oil sector, which was essential in stabilizing the economy [1]. Additionally, domestic inflation declined to 4 percent by the end of 2023, partly due to lower international food prices and the normalization in trade finance [1].

Oil Dependency and Fiscal Expansion Risks

Despite these positive developments, Iraq's fiscal and external balances have been strained due to the large fiscal expansion and lower oil prices [1]. The continued reliance on oil revenues, which account for nearly 96% of total income, has limited the government's ability to diversify the economy and address high poverty rates [3]. The fiscal expansion, while boosting growth in 2024, has also led to a deterioration of the fiscal and external accounts, increasing Iraq's vulnerability to oil price fluctuations [1].

Debt Sustainability and Economic Diversification

To address these challenges, the International Monetary Fund (IMF) has emphasized the need for sound macroeconomic policies and structural reforms that promote fiscal and debt sustainability [1]. Directors at the IMF underscored the importance of economic diversification and the advancement of a private sector-led growth model to secure Iraq's financial stability and promote inclusive economic growth [1].

Budgeting and Investment Strategies

In an effort to stimulate the economy and diversify income sources, Iraq has embarked on ambitious investment projects in the oil and gas sector [2]. A trilateral investment agreement worth USD 27 billion over 25 years was signed in July 2024, aimed at increasing oil production and improving the country's electricity supply [2]. This strategic move is expected to reduce Iraq's import bill and contribute to the gradual increase in oil production as OPEC+ quotas are phased out between September 2024 and December 2025 [2].

Challenges and Outlook

Despite these initiatives, Iraq faces significant challenges. The ongoing fiscal expansion and high dependence on volatile oil prices pose downside risks to the economy [1]. Moreover, the risk of medium-term sovereign debt stress is high, and external stability risks could emerge if policy adjustments are not made [1]. The government's ability to manage these risks will be critical for Iraq's long-term economic health [1].

In conclusion, Iraq's approach to external loans and repayments in 2024 is characterized by a careful balance between fiscal expansion and debt management. The country's fiscal policy and investment strategies aim to diversify the economy and address structural vulnerabilities, while the ongoing challenges related to oil dependency and fiscal imbalances require vigilant policy adjustments.

Al-Sudani's Advisor: The Government's Internal Debt Decreased By Two Trillion Dinars, 15 SEPT

 Al-Sudani's Advisor: The Government's Internal Debt Decreased By Two Trillion Dinars

Economy:  September 13 Information/Baghdad…  The Prime Minister’s Advisor for Economic Affairs, Mazhar Muhammad Salih, stated that the government’s internal debt has decreased by two trillion Iraqi dinars.

 Mazhar Muhammad Salih said, “Iraq is not among the countries with external debt at the present time,” indicating that “the external public debt is less than 10 billion dollars, and this will be paid over the course of time between now and 2028.”

 He explained that “there are allocations in the general budget to pay off debts, and this is what has made Iraq always in the credit rating and creditworthiness at level B, and it is stable like many countries such as Jordan, Egypt, Pakistan and others. ”

 Mazhar Muhammad Salih noted that “this debt has decreased, because Iraq has not borrowed and its external loans are few compared to its many repayments, especially during the past ten years on a regular basis.”    LINK

"THE RV. HAS STARTED" BY WOLVERINE, 15 SEPT

 Sat. 14 Sept. 2024 Wolverine

 “Guys, I’ve just been told that the RV has started as Iraq is officially live on the big screen. By tomorrow Mon. 16 Sept. we should have Tiers starting to receive payment, which is liquid money. Waiting to hear more later on. 

I’m very certain that notification should come any day now. Like I was told, September is the golden month. …I’m absolutely excited. Some people have been waiting for this for thirty years. 

We were told that this has started. It is liquid money. It is my opinion that notifications should be coming out today  Sun. 15 Sept, or tomorrow Mon. 16 Sept. at the latest. 

Take care. Have a beautiful day.” …Wolverine

Later Sat. 14 Sept. 2024 Wolverine

 “All banks have paid the transactions released yesterday in their accounts. Now they just need to send the notifications to those involved. 

You can celebrate because there is no turning back. They have up to 72 hours to finalize the transaction, with the risk of a fine of 20 billion per institution. The Hague Court entered this battle and brought order to this brothel.” https://www.in.gov.br/web/dou/-/resolucao-bcb-n-410-de-11-de-setembro-de-2024-584289886

IRAQI WILL HALT THE CURRENCY AUCTIONS TO COMBAT CORRUPTION @DINARREVALUATION

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.