FIREFLY:Mr Sammy [Iraqi bank manager friend] says we are in charge of our own money. It's not being overseen by the US Treasury.
FRANK: This is the most powerful thing I can share with you tonight...IMO when Alaq came back he told everybody there's no more sanctions on the banks of Iraq...That means your program rate does not exist anymore
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FIREFLY: Mr Sammy says they are running the new system...This new system will remain for the rest of the year...This monetary reform education phase we're in right now will last for this whole year...
FRANK: Mr. Sammy and I are on the same page. The only difference is he's turning the page a little slower than I am. I do not see this going into next year. Actually it's impossible. I see the monetary reform education...commercials...US Treasury revealing to you all sanctions have been release, which tells me we are extremely close...Mr Sammy...tells you it's coming at the end of the year or beginning, I tell you it's now...
Iraq's Integration into the International Financial System: Central Bank's Role in Maintaining a Stable Exchange Rate
Iraq's journey towards a stable exchange rate and integration into the international financial system has been marked by significant reforms and challenges.
In 2024, Iraq has taken notable steps to stabilize its exchange rate and participate more effectively in global financial markets.
The Dual Exchange Rate: An Unusual Phenomenon.
Iraq's dual exchange rate system is a result of several factors, including excessive demand for US dollars internationally and internal demand for dollars within Iraq. Countries like Iran and Syria, with devalued local currencies, have driven up demand for US dollars, impacting Iraq's currency system and contributing to the existence of dual exchange rates.
Central Bank's Strategies for Stabilization.
The Central Bank of Iraq (CBI) has been pivotal in implementing measures to stabilize the exchange rate and integrate Iraq into the international financial system. The CBI's strategies include:
Phasing Out the Dollar Auction
By the end of 2024, the CBI plans to close the currency sale window, marking the end of a two-decade-long operation. This move is part of a broader plan to integrate Iraq into the global economy by shifting to direct commercial banking transactions.
Increasing Regulated Dollar Transactions
Iraq has increased overseas dollar transactions through the official SWIFT system, which helps combat money laundering and ensures compliance with international sanctions.
New Restrictions on Dollar Use.
Starting in 2024, the CBI has banned cash withdrawals and transactions in US dollars, focusing on the Iraqi Dinar for internal trade. Foreign trade can be settled in other currencies like the Euro, Emirati Dirham, Turkish Lira, and Indian Rupee.
Conclusion
Iraq's efforts to stabilize its exchange rate and integrate into the international financial system are multifaceted, involving a range of measures from the CBI. By phasing out the dollar auction, increasing regulated dollar transactions, and implementing new restrictions on dollar use, Iraq is moving towards greater financial stability and global participation.
They're talking about Iraq as going global and to the international financial system.
With that has responsibility and that responsibility will be defended by the central bank. That responsibility is to have a stable exchange rate and to provide commerce throughout the country in and out and across borders, with efficiency and transparency.
That's what they're going to have and that's what they're doing. There's looking to be no stopping it. It's brilliant.
Militia Man
The IMF Article IV 2024 consultation, one of the most important things was for [Iraq] to accelerate accession to the WTO.
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Summary
Iraq’s Ministerial Council of Economy is advancing economic unity between the federal government and Kurdistan, focusing on financial reforms and salary equivalency.
Highlights
🤝 Collaborative Meetings: Recent meetings between the federal government and Kurdistan aim for economic unity.
💰 Salary Equivalency: Discussions include ensuring salary parity for regional employees.
🔍 Budget Reforms: Emphasis on addressing financial issues like oil, energy, and border revenues.
📈 Private Sector Growth: Plans to enhance the private sector’s role in the economy.
🌍 Global Attention: Iraq’s economic strategies are gaining international interest.
📊 Unified Treasury Accounts: Establishing a unified treasury for better financial management.
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Constitutional Rights: Ensuring all citizens benefit from new economic policies aligned with constitutional rights.
Key Insights
🌐 Economic Integration: The meetings signify a critical step towards integrating Kurdistan’s economy with the federal framework, promoting a cohesive financial strategy.
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Private Sector Engagement: By focusing on private sector involvement, Iraq aims to diversify its economy and reduce dependency on oil revenues, fostering sustainable growth.
🔗 Unified Financial Framework: The establishment of a unified treasury account reflects a commitment to transparent financial management and accountability, which is vital for investor confidence.
📈 Revenue Streams: The focus on oil, energy, and border revenues indicates a strategic approach to harnessing Iraq’s natural resources for economic stability.
🤔 Constitutional Compliance: The emphasis on constitutional rights in financial discussions demonstrates a commitment to equitable governance and fair resource distribution.
🏛️ Political Dynamics: The support for Prime Minister Al Sudani highlights the political backing necessary to implement these reforms, ensuring stability during transitions.
🚀 Future Prospects: The positive atmosphere in these meetings suggests potential for significant economic progress in Iraq, attracting global attention and investment opportunities.
Economist: Lower oil prices will not affect dollar exchange rate and salaries in Iraq - Urgent
Economic expert Mustafa Akram Hantoush explained today, Saturday (September 14, 2024), that the decline in oil prices will not affect the exchange rate of the dollar and salaries in Iraq.
Hantoush said in an interview with Baghdad Today, "The dollar exchange rates in Iraq will not be affected by the decline in oil prices, as this issue depends on supply and demand in the local market, and has no relation to the oil file and oil revenues."
He explained that "in terms of operating expenses, including salaries, they will not be affected by the crisis, even if oil prices reach $50, as the state is able to pay salaries and governing expenses."
Hantoush added that "the impact of fluctuations in oil prices will greatly affect investment programs, and that oil prices may threaten the state's investment side, as happened in the past years, including 2015, 2016, and 2017, when projects suffered from significant delays in those years."
These financial concerns reflect the challenges facing the global oil market, as oil prices have fallen significantly in recent weeks due to weak global demand, especially from China, which is the world's largest oil importer.
Every now and then, fears are circulated in Iraq about the government’s inability to pay employees’ salaries due to financial liquidity, especially since the country’s oil imports, which constitute more than 90% of the Iraqi economy, are in Iraq’s account at the US Federal Reserve. link
[via Judy Byington] Like I was told, September is the golden month. …I’m absolutely excited...We were told that this has started...It is my opinion that notifications should be coming out today Sun. 15 Sept, or tomorrow Mon. 16 Sept. at the latest...Have a beautiful day.
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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. Bytomorrow 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 todaySun. 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.