Wednesday, September 18, 2024
DINAR REVALUATION REPORT: Steps Iraq Needs for Dinar Reinstatement, 18 SEPT
Steps Iraq Needs for Dinar Reinstatement
Iraq's aspirations to reinstate the Iraqi Dinar to its former rate of $3.22 against the US dollar requires a series of strategic monetary and economic reforms.
Monetary Reforms
Enhancing Monetary Policy
Iraq must implement robust monetary policies to stabilize its economy and control inflation. This includes adjusting interest rates and conducting open market operations to influence the money supply and stabilize the Dinar's value.
Currency Reforms
Iraq should consider currency reforms, such as redenomination or deleting zeros from the currency, to simplify transactions and reduce the volume of cash in circulation.
Economic Diversification
Decreasing Oil Dependency
Iraq needs to reduce its heavy reliance on oil revenues by diversifying its economy. This involves developing other sectors like agriculture, manufacturing, and services to create a more balanced economic structure.
Improving Trade Balance
Enhancing exports and reducing unnecessary imports can support a stronger Dinar by improving the country's trade balance.
Internal Stability
Inflation Monitoring
Maintaining internal stability involves monitoring and managing inflation rates to ensure that the Dinar's purchasing power is not eroded.
Political Stability
Political stability is crucial for economic confidence and foreign investment. A stable government can implement and enforce necessary reforms.
International Relations
IMF and World Bank Support
Cooperation with international financial institutions like the IMF and World Bank can provide technical assistance and financial support for economic reforms.
Foreign Investment
Iraq should attract foreign investment by improving its business environment, offering incentives, and ensuring the rule of law.
Strengthening Trade Ties
Developing stronger trade relationships with other countries can enhance Iraq's economic stability and Dinar's value.
Conclusion
Reinstating the Iraqi Dinar to its historical rate of $3.22 is a complex endeavor that necessitates comprehensive reforms in monetary policy, economic diversification, internal stability, and international relations. Iraq must balance these factors to create a conducive environment for the Dinar's value to strengthen.
PIMPY: "What does Iraq need to do right now to reinstate their old rate of $3.22?, 18 SEPT
Pimpy
Question: "What does Iraq need to do right now to reinstate their old rate of $3.22?"
Professor Boskin [of economics] graciously shared the following information which I am pleased to relay to you...It should be able to give you an idea of how far away this thing might be...
The first thing he's talking about is implementing monetary reforms.
PIMPY: We've been hearing about that for years so we know they definitely are implementing monetary reforms.
PROFESSOR: ...The Central Bank of Iraq may consider removing zeros..
. PIMPY: Obviously if they're going to remove the zeros off the currency, they're going to re-denominate and print new bank notes.
PROFESSOR: Establish a currency basket system...the value of the dinar would be determined against a weighted average of several currencies...
Reduce their dependency on the dollar.
PIMPY: At the beginning of this year they were not supposed to use the US dollar anymore.
PROFESSOR: ...Focus on diversifying its economy beyond oil dependency...
PIMPY: Right now...only 89% of [the budget] is dependent on oil sales. A lot better than where it was.
PROFESSOR: Improve trade balance...Enhancing exports...Reducing unnecessary imports ...thereby supporting a stronger dinar.
PIMPY: They have things to trade but not a whole lot of options.
PROFESSOR: Maintain internal stability...Monitor inflation rates...
PIMPY: Right now Iraq is somewhere around 5%...He's saying if they want to reinstate the $3.22 rate these things have to be taken care of. I do find it interesting we've been listening to them talk about deleting the zeros and he's put that in here...A lot of this stuff Iraq has already started...Kudos to Al-Sudani.
Is the decline in oil prices related to the rise in exchange rates? An "important" clarification from Al-Alaq, 18 SEPT
9/18/2024 Baghdad
The Governor of the Central Bank of Iraq, Ali Al-Alaq, announced today, Wednesday, that all transfers are subject to auditing processes, while he indicated that the decline in oil prices has nothing to do with the rise in the exchange rate.
Al-Alaq told the official agency, which was followed by "Al-Eqtisad News", that "the Central Bank provides the dollar at the official price to all commercial and personal channels, travelers, and all types of operations that represent legitimate activities, operations, and requests."
He pointed out that "any price outside the country is a price that only indicates the existence of abnormal operations that attempt to deviate from the official and legal system and the correct fundamental channels," stressing the need to "focus on the amount of sales carried out by the Central Bank at the official price and those seeking the dollar, whether they are traders, importers, individuals or travelers."
He pointed out that "methods have been put in place for each channel to secure the provision of dollars on the one hand, and a very large degree of oversight to verify the integrity of the pre-operations before they are implemented," noting that "this is a major shift in foreign transfer operations, as they were previously audited at a later stage, and today all transfer operations are not carried out or implemented except after they are subject to the auditing process."
He explained that "the decline in the price of oil has nothing to do with the rise in the exchange rate because Iraq has foreign currency reserves that enable it to defend the exchange rate." LINK
Coffee with MarkZ. 09/18/2024
TNT UPDATE, 18 SEPT
TNT UPDATE
GOOD MORNING TNT. TODAY IS WEDNESDAY SEPTEMBER THE 18TH 2024
I WAS THINKING WE WOULD DO THIS A LITTLE BIT DIFFERENT; BUT I DIDN'T TELL RAY
HERE IS THE GOOD NEWS.............THE TECHNICAL SITUATION HAS BEEN RESOLVED.Sep 18
BANKS GOT MEMOS YESTERDAY- THEY WERE SUPPOSED TO GET READY AND BE THERE -THIS MORNING, THE MESSAGE WAS GET READY BECAUSE IT WAS SCHEDULED FOR THIS MORNING
BETWEEN NOW AND FRIDAY - WE ARE NOW WAITING FOR THIS BIG ANNOUNCEMENT ON THE FED RATE AND WHAT IT WILL DO FOR THE ECONOMY
IT COULD GO WHILE WE ARE ON THIS CALL OR RIGHT AFTER - BUT THE RV ANNOUNCEMENT SHOULD BE TOMORROW MORNING; NOT FRIDAY
THERE IS A SCHEDULED TIME BUT NO ONE WANTED TO PUT IT OUT THERE
THE MARKETS SHOULD CHANGE IMMEDIATELY AFTER THE RATE CHANGE WHICH IT NORMALLY DOES Sep 18
MARKET WILL CHANGE WITH THE FED ANNOUNCEMENT. THEY WANT THINGS TO SETTLE DOWN AND THEN LET THE RV GO
WE WILL SEE AND WE ARE LIVE. THINGS GOING MINUTE BY MINUTE - I'VE GIVEN YOU ALL THE INFORMATION. THE RATES ARE OUT, THE BANKS ARE READY. HOPEFULLY, YOU ARE ALL READY
THE TEXTS AND THE EMAILS WILL GO OUT; YOU SHOULD BE PREPARED
I WAS TOLD WE WILL BE THE FIRST ONES TO GET THE INFORMATION FROM THE BANKING SIDE SOMEONE ELSE WILL ALSO GET IT - ANOTHER GURU.
SO THIS SHOULD BE OUR FINAL CALL
Germany: Iraq is witnessing progress towards economic stability, 19 SEPT
Economy News – Baghdad The director of the offices of the German Agency for International Cooperation (GIZ) in Iraq, Christopher Flocter, c...
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Walkingstick All these meetings that the CBI had with all these agencies that were helping them with their monetary reform are done. Al...
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Bank appointment for Currency EXCHANGE Instructions/Checklist Bank Name_________________________________________ Bank 800#____________...
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RayRen98 BANK STAFF RECEIVED "GET READY" MEMOS THIS MORNING, THEY'VE BEEN EXCITED ALL DAY! Nader From The Mid East Y...