Tuesday, September 17, 2024
DINAR REVALUATION REPORT: Scenarios for the Iraqi Central Bank's Strategies in 2024, 17 SEPT
Scenarios for the Iraqi Central Bank's Strategies in 2024
As of September 17, 2024, the Iraqi Central Bank has been focusing on several strategic scenarios to enhance its operations and improve the country's financial stability.
Negotiations with the US Federal Reserve
The Central Bank of Iraq is in the process of negotiating with the US Federal Reserve to end the use of the electronic platform for foreign transfers and transition to direct banking relations between Iraqi banks and their international counterparts. This move aims to streamline the foreign exchange process and reduce the dependency on electronic platforms that may have limitations or vulnerabilities.
Digitization of Ports
The Iraqi government is intensifying efforts to digitize all its ports, a move that signals the potential introduction of a new exchange rate for the Iraqi dinar. The completion of digitization is expected to facilitate trade, improve efficiency, and enhance transparency in the economic activities at the ports.
Development Road Project
Iraq's Prime Minister, Al-Sudani, announced the establishment and implementation of the development road project, which is expected to transform Iraq into an open country. This initiative aims to boost the country's GDP and gross domestic product, potentially leading to an increase in the currency's value. The project is also anticipated to make Iraq an international transportation hub, attracting investors to the dinar market.
Tax and Banking System Reforms
Iraq has embarked on real reforms in the tax and banking system. These reforms are essential for fostering a stable and competitive financial environment that can attract foreign investment and support the country's economic growth.
Security and Control
The Iraqi government has claimed that there is no spot on Iraqi territory outside the control of security forces. This statement indicates a level of stability that could positively impact the economy, as a secure environment is conducive to economic development and investor confidence.
Recovery and Stability
Iraq is witnessing signs of recovery and stability, with capitals expressing interest in investing in the country. The government has directed the preparation of a comprehensive plan to secure the path of development, suggesting a strategic approach to economic revival.
The Central Bank of Iraq is in the process of negotiating with the US Federal Reserve to end the use of the electronic platform for foreign transfers and transition to direct banking relations between Iraqi banks and their international counterparts. 1
This move aims to streamline the foreign exchange process and reduce the dependency on electronic platforms that may have limitations or vulnerabilities.
Digitization of Ports
The Iraqi government is intensifying efforts to digitize all its ports, a move that signals the potential introduction of a new exchange rate for the Iraqi dinar. 4
The completion of digitization is expected to facilitate trade, improve efficiency, and enhance transparency in the economic activities at the ports.
Development Road Project
Iraq's Prime Minister, Al-Sudani, announced the establishment and implementation of the development road project, which is expected to transform Iraq into an open country. 4
This initiative aims to boost the country's GDP and gross domestic product, potentially leading to an increase in the currency's value. The project is also anticipated to make Iraq an international transportation hub, attracting investors to the dinar market.
Tax and Banking System Reforms
Iraq has embarked on real reforms in the tax and banking system. 4
These reforms are essential for fostering a stable and competitive financial environment that can attract foreign investment and support the country's economic growth.
Visualization: Iraqi Central Bank's Strategic Scenarios in 2024
To illustrate the strategic scenarios outlined by the Iraqi Central Bank, the following tree diagram represents the hierarchical structure of these initiatives:
Iraqi Central Bank's Strategic Scenarios
Iraqi Central Bank's Strategic Scenarios
Negotiations with US Federal Reserve
End electronic platform for foreign transfers
Direct banking relations
Digitization of Ports
Completion of digitization
New exchange rate
Development Road Project
Transformation into open country
Increase in GDP and currency value
Tax and Banking System Reforms
Stable financial environment
Foreign investment attraction
Security and Control
Control by security forces
Economic stability
Recovery and Stability
Investor interest
Comprehensive development plan
The tree diagram above highlights the interconnected nature of the scenarios and their potential impacts on Iraq's economy. By addressing these areas, the Iraqi Central Bank is positioning the country for financial recovery and stability.
In conclusion, the Iraqi Central Bank's strategic scenarios for 2024 encompass negotiations with the US Federal Reserve, digitization of ports, the development road project, reforms in the tax and banking system, security and control, and efforts towards recovery and stability. These initiatives are crucial for Iraq's economic growth and development.
6 Scenarios That The Iraqi Central Bank Will Work On, Narrated By Al-Issawi, 17 SEPT
Mawazine News – Baghdad Economic expert Abdul Karim Al-Issawi said: “Today, the Central Bank of Iraq has actually moved to the stage of direct relations with correspondent banks, and it is in the experimental stage with monitoring the changes that occur in all the processes for the purpose of fortifying the transformation.”
Al-Issawi Told Mawazine News Agency: The Platform Aimed To Enhance Transparency And Ensure Compliance With International Laws, Especially With Regard To Combating Money Laundering And Terrorist Financing.
He pointed out that:
**Potential Benefits:
1. *Facilitating remittances*: Direct relationships may make remittances faster and more flexible.
2. *Reducing remittance costs*: Relying on a platform may require additional costs that may decline with the new system.
3. *Enhancing international confidence*: If these relationships are managed well, this may help enhance the international community’s confidence in the Iraqi banking system.
As for the potential challenges: He said: “
1. Compliance risks: Easing oversight could increase the risks of money laundering and terrorist financing, which could harm Iraq’s international reputation.
2. Complexity of banking operations: Some banks may face difficulties in managing complex international relationships directly without the mediation of the Central Bank.
3. Impact on monetary policy: The Central Bank may lose some control over external capital flows, which could impact monetary policy.
It is important that this transition (if it occurs) be done gradually and thoughtfully, while ensuring that strong oversight mechanisms are in place to ensure that the Iraqi banking system is not exploited for illicit purposes.
The final decision will require a balance between benefits and risks, and will certainly have a significant impact on the Iraqi economy and international relations.
The economic expert stated that the Central Bank of Iraq is negotiating with the US Federal Reserve regarding ending the work of the electronic platform for foreign transfers and replacing it with direct banking relations between Iraqi banks. https://www.mawazin.net/Details.aspx?jimare=254919
MILITIAMAN CC NOTES HIGHLIGHTS, 17 SEPT
Summary
The Iraq Dinar update discusses political developments, economic reforms, and the potential strengthening of the dinar, emphasizing hope and confidence for investors.
Highlights
- 📈 Al Sudani and Sadr’s collaboration aims for development and prosperity.
- 💰 Federal Court orders salary localization, hinting at currency changes.
- 📊 Electronic payments are transforming Iraq’s economy.
- 🗞️ Citizens expect a stronger dinar as reforms progress.
- 🔍 Increased public demonstrations reflect societal expectations.
- ⚖️ Legislative efforts focus on justice and economic stability.
- 🌍 Iraq is enhancing its global financial integration through technology.
Key Insights
- 🔗 The partnership between Al Sudani and Sadr is crucial for implementing reforms that benefit citizens, indicating a unified approach to governance.
- 💵 The Federal Court’s ruling on salary localization suggests that a currency reevaluation may be imminent, which could strengthen the dinar against the dollar.
- 💻 The shift to electronic payments signifies a move towards a digital economy, improving efficiency and transparency in financial transactions.
- 📈 Public sentiment is leaning towards optimism, as many believe in the potential appreciation of the dinar as economic reforms take effect.
- 📢 Growing public demonstrations indicate rising expectations among citizens regarding timely salary payments and economic changes.
- 📜 Legislative discussions around amnesty and personal status laws reflect a commitment to addressing past injustices, which can foster social stability.
- 🌐 Iraq’s efforts to adopt advanced technologies like blockchain and QR codes position it for better integration into the global financial system, enhancing trade and investment opportunities.
DINARES GURUS/ DINAR REVALUATION HIGHLIGHTS!: STATUS OF IRAQ , 17 SEPT
Summary
Iraqi currency may face devaluation risks if oil prices remain low, while banking reforms aim to enhance financial transactions.
Highlights
- 💰 Potential devaluation discussed if oil stays under $70.
- 🏦 Central Bank negotiating direct banking relations with the US.
- 📺 Iraqi TV updates highlight digitization efforts at ports.
- 📈 Positive news hints at changes in market prices soon.
- 🚀 Prime Minister Al Sudani cites progress and investment interest.
- 📊 Stable USD/IQD exchange rates reported in Baghdad and Kurdistan.
- 🔔 Continuous reforms in tax and banking systems noted.
Key Insights
- 📉 Devaluation Risks: The reliance on oil revenues makes the Iraqi dinar vulnerable; sustained low oil prices could trigger currency devaluation, impacting the economy.
- 🤝 Banking Reforms: The Central Bank’s initiative to establish direct banking relations with foreign institutions indicates a move towards greater financial independence and efficiency.
- 🌐 Digital Transformation: The ongoing digitization efforts at ports reflect Iraq’s commitment to modernizing its infrastructure, which could enhance trade and economic stability.
- 🏗️ Investment Climate: The Prime Minister’s remarks on investment interest highlight a positive shift towards economic recovery and development in Iraq.
- 📊 Exchange Rate Stability: The stable exchange rates in Baghdad and the Kurdistan region suggest a measure of economic resilience despite global fluctuations.
- 📈 Market Price Changes: Anticipated adjustments in market prices for essential goods indicate potential improvements in living standards tied to the currency’s valuation.
- 🔒 Security and Stability: The government’s emphasis on security reinforces investor confidence and supports long-term economic growth strategies in Iraq.
This Is How The Citizen Gets The Dollar, 17 SEPT
This Is How The Citizen Gets The Dollar
Economy | 09/16/2024 Mawazine News – Baghdad The Trade Bank of Iraq announced today, Monday, the mechanism for obtaining the dollar currency for the purposes of traveling abroad.
The bank stated in a statement that "the requirements for obtaining the dollar currency for the purposes of traveling abroad are:
1. A valid Iraqi passport with a valid visa or residence.
2. A civil status ID and a certificate of nationality or a unified national card.
3. A residence card.
4. A valid travel ticket.
5. A pledge not to purchase foreign currency from another party inside Iraq for a period of (one month).
6. The traveler must be of Iraqi nationality and over (18) years of age.
Purchase mechanism:
1. An amount must be deposited in dinars at the bank branch exclusively, provided that the amount in dinars is equivalent to the value of the share of the same amount in dollars allocated for travel.
2. The dollar share shall be received from the outlet of the Iraqi Trade Bank at Baghdad International Airport (Babylon Hall) exclusively and by handing over the deposit slip granted to the customer when he deposited the amount in dinars.
3. The maximum period for depositing before the travel date is three days.
4. The dollar shall not be delivered to the traveler until after completing the travel procedure (Boarding pass) and after completing the passport stamping procedures.
5. The bank outlet at Baghdad International Airport will be designated For delivery purposes, the Travelers Dollar is available 24 hours a day, 7 days a week. ttps://www.mawazin.net/Details.aspx?jimare=254964
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