Iraq is currently receiving applications from their banking system to transition into the new digital economy. Between 60 to 70 banks have sent in their application to transition into International electronic platforms. This pretty much covers all of their Banks except for a handful.
They're still telling us that this aspect of their banking reforms will take till the end of the year, but we are seeing progress and lots of confidence in their new electronic banking system.
This article goes on to tell us that they are in an accelerated stage and moving forward with intention and purpose.
The hydrocarbon sector in Iraq witnesses a significant milestone as the country finalizes the Hydrocarbon Law (HCL) in 2024, a move aiming to boost the oil and gas industry and attract international investments.
Enhancing Investment and Production
The updated HCL introduces a new framework allowing foreign companies to share in oil output when in partnership with the Iraqi government. This shift from the previous fee-per-barrel contracts to production-sharing agreements and service contracts is expected to create a more investor-friendly environment.
Legal Framework for Oil and Gas Contracts
Iraq also finalizes the fifth-plus and sixth rounds of oil and gas contracts, attracting over 20 companies from around the globe. These contracts yield over 30% profit for participating companies, with Chinese firms and a single Iraqi-Kurdish company securing the deals.
Impact on Kurdistan Region
The Kurdistan Region's oil sector, already impacted by the closure of its main pipeline to Turkey, faces further challenges. The new federal budget law calls for a quota of 400,000 barrels per day (b/d) to be handed over to the federal oil marketer SOMO in exchange for 12.6% of federal funding.
Political and Economic Ramifications
The new HCL and budget law have political and economic implications for Iraq's social and political stability. Successful implementation could help calm violence and reflect a spirit of compromise, while failure could have negative repercussions.
Enhanced Table: Key Provisions of the Hydrocarbon Law
Recent developments in Iraq suggest potential changes to the Iraqi Dinar exchange rate, with optimism for upcoming currency exchanges and finalized salary agreements.
Highlights
💼 Significant meeting between Mbal and Baghdad finalizes the HCL hydrocarbon law.
💰 Salaries across regions to be equal, expected payments on Sunday.
📈 Potential currency exchange appointments may begin after market closes Friday.
📊 Analysts debate realistic IQD valuation; even a shift to 10 cents per IQD would be positive.
🏦 Major cross transactions in Iraqi banking sector show active market engagement.
📅 Iraqi banks announce dividend distributions for fiscal year 2023.
🔝 High contract rate for Iraqi Dinar linked to oil prices, favorable for holders.
Key Insights
📜 The finalization of the HCL hydrocarbon law is a crucial step for Iraq’s economic stability, indicating progress in governance and resource management.
🎉 Equal salary distribution across regions could enhance social equity and boost consumer confidence, fostering economic growth.
🔄 Anticipated currency exchange appointments signify a shift towards a more active and potentially profitable exchange market for the Iraqi Dinar.
💵 While some analysts suggest a more conservative valuation, any increase in the Dinar’s worth could yield significant returns for investors.
🏦 The volume of cross transactions in the banking sector indicates a robust economic activity, reflecting investor confidence and market liquidity.
📈 Dividend distributions from banks illustrate a positive financial outlook and provide incentives for local and foreign investments in the Iraqi economy.
📊 The connection between the contract rate and oil prices suggests that fluctuations in global oil markets will directly impact the value of the Iraqi Dinar, benefiting currency holders.
Iraqi Central Bank's Strategic Shift: Direct Relations with Correspondent Banks
In a pivotal move, the Central Bank of Iraq (CBI) has embarked on a transformative phase, transitioning from its current electronic platform for foreign transfers to direct banking relationships with international correspondent banks. This strategic shift, set to be implemented by the end of 2024, aims to enhance the stability, transparency, and efficiency of Iraq's foreign trade financing.
Strengthening Financial Reforms
The CBI's high-level delegation visit to the United States, from August 26 to 29, 2024, played a crucial role in this development. The delegation, led by Governor Ali Mohsen Al-Alaq, held extensive meetings in New York with key financial institutions. These included discussions with the U.S. Treasury, the Federal Reserve, Visa, Mastercard, MoneyGram, Citi Bank, JP Morgan, and major auditing firms such as KPMG, Ernst & Young, K2i, and Oliver Wyman.
Enhancing Transparency and Compliance
The meetings highlighted the CBI's advancements in monitoring foreign transfers and cash sales of U.S. dollars, aligning with international standards. These efforts have significantly improved transparency in foreign trade financing and fortified defenses against money laundering, terrorism financing, and other financial crimes.
Transition to Direct Relations
The transition to direct banking relationships is a crucial step towards centralizing oversight and regulation, aligning Iraq with global banking standards. Governor Al-Alaq confirmed that transfers through correspondent banks already accounted for 60% of the total (outside the CBI's electronic platform) with a realization rate surpassing 95%.
Phased Approach and Currency Diversification
This initiative is part of a phased effort to open direct communication channels for Iraqi banks with their foreign counterparts in correspondence and trade exchanges. The ongoing process will facilitate transfer channels in various currencies, including the Emirati Dirham, Turkish Lira, Indian Rupee, and Euro.
Impact on Exchange Rates and Financial System
The new system is expected to contribute to a more stable exchange rate and a more robust financial system. It offers comprehensive risk protection for all transaction parties and aligns with anti-money laundering and counter-terrorist financing laws.
Compliance Rules and Financial Reputation
The Iraqi banking sector's commitment to international compliance rules further enhances Iraq's financial position globally. The measures implemented by the CBI have received international praise from entities such as the US State Department and the International Monetary Fund.
Dynamic Financial Landscape
The CBI's Governor acknowledges the ongoing challenges but emphasizes that the financial situation in Iraq is progressing as planned. High coordination between the CBI, the Prime Minister, and the Ministry of Finance ensures financial stability and sustainability.
Reorganization of External Transfers
A major transformation is underway in reorganizing foreign trade management to achieve transparency and multiple goals simultaneously. This includes ensuring the accuracy of external transfer operations and verifying the source and final recipient.
Visualizing the Transition
To illustrate the significant shift in Iraq's financial operations and the reorganization of external transfers, a flowchart can be used to depict the flow of transactions from the current system to the direct banking relationship model.
Economic expert Abdul Karim Al-Issawi said: “Today, in fact, the Central Bank of Iraq has already moved to the stage of direct relations with correspondent banks, and it is in the experiment stage while monitoring the changes that occur in all the process for the purpose of fortifying the transformation.
Al-Issawi told Mawazen News: The platform was aimed at enhancing transparency and ensuring compliance with international laws, especially with regard to combating money laundering and terrorist financing.
He pointed out that:
**Potential benefits: 1. *Facilitating transfers*: Direct relationships may make transfers faster and more flexible. 2. *Reduce remittance costs*: Relying on a platform may require additional costs that may be retreated with the new system. 3. *Enhancing international confidence*: If these relations are well managed, it may help boost the confidence of the international community in the Iraqi banking system.
As for the potential challenges: “ 1. Compliance risks: Easing controls can increase the risk of money laundering and terrorist financing, which could damage Iraq’s reputation internationally. 2. Complexity of banking operations: Some banks may face difficulties in managing complex international relations directly without mediation from the central bank. 3. Impact on monetary policy: The central bank may lose some control over external money flows, which may affect monetary policy.
It is important that this transition (if it takes place) takes place gradually and deliberately, while ensuring that strong control mechanisms are in place to ensure that the Iraqi banking system is not exploited for illicit purposes. The final decision will require a balance of benefits and risks, and will certainly have a significant impact on the Iraqi economy and international relations.
The economist stated that the Central Bank of Iraq is negotiating with the US Federal Reserve regarding the termination of the electronic platform for foreign transfers and replacing it with direct banking relations between Iraqi banks.
Sat. 14 Sept. 2024: JPMorgan Chief Jamie Dimon has warned US economy faces an outcome worse than a recession.
Many years ago a politician exposed the Central Bank Scam to Congress: “All banks across the Globe are presently broke because of their practice of Fractional Banking where they have lent money that they don’t have. They print and use money that has no backing. If any of us did that we would go to prison.”
Sat. 14 Sept. 2024 Canada: Hey folks. Your neighbor here, figured I’d share some info with you. I’m Canadian. Walmart here will stop accepting USD on September 23rd. I’ve been digging trying to find out why. No one seems to know, I’ve had people dance around the question. If been left on hold for more than 20 mins until I’ve had to hang up. The closest thing I got to an answer was from a manager that said “It has something to do with new security features on the bills, and our machines can’t recognize it or accept it.” Anyone have any idea what’s going on? …Jay Rider on Telegram
Sat 14 Sept. 2024 Dollar Collapse Imminent! How GESARA and NESARA Will Trigger the Largest Wealth Redistribution in History! …NESAR/GESARA on Telegram
The current financial system, a puppet show controlled by elites, is collapsing under its own c********n. We are not just facing an economic downturn but a global upheaval poised to dismantle the status quo.
The collapse of the U.S. dollar signals the end of an era and ushers in the transformative promise of GESARA and NESARA—legislation that heralds the greatest wealth transfer in history, ensuring prosperity and financial freedom for all.
This collapse has been engineered by financial elites, using the dollar as their tool to amass wealth while the masses suffer. As their system crumbles, GESARA and NESARA will reset the financial landscape, replacing c********n with equity and transparency, igniting the largest wealth redistribution the world has ever seen.
The 2008 Crisis Was Just a Warning: Looking back at the 2008 crisis, it’s clear the so-called recovery was a lie. The elites used the crisis to pilfer wealth under the disguise of economic recovery, with the Federal Reserve protecting their every move. But today’s impending collapse is far worse. The reckless monetary manipulations have led us here, with global debt levels exploding. What we are facing isn’t just economic mismanagement—it’s sabotage.
The Financial Apocalypse Is Here: The catastrophic policies of excessive liquidity and artificially low interest rates have destroyed the system from within. The dollar is dying, and as faith evaporates, a new gold-backed currency could rise, following the principles of GESARA and NESARA. This isn’t just about economics—it’s about the end of financial tyranny. We’re entering an era where power returns to the people and economic justice prevails.
Preparing for the Inevitable: As the old system implodes, the principles of GESARA and NESARA offer a path forward. It’s time to secure tangible assets and support the systemic changes that will restore dignity to the financial world. This is about more than survival—it’s about rebuilding an economy that works for everyone.
A Call to Arms: This isn’t just a collapse—it’s a controlled demolition. The elites have played their final hand, and now it’s our turn. The collapse of the dollar is inevitable, and GESARA’s promise is the only solution. The time for passivity is over. We must rally behind these reforms, tear down the old system, and usher in a new age of economic fairness.
This is our moment. The financial apocalypse is upon us, but so is the opportunity to create a new legacy. Will you stand by, or will you fight for the future GESARA and NESARA promise? The time to act is now.
