Summary of "Iraqi Dinar Guru News Highlights (9/23/24)"
HERE ARE various updates from Dinar Gurus are discussed regarding the Iraqi Dinar and recent developments surrounding its exchange rate.
Key Points:
Leadership Update: Ali Al Alak remains the acting director of the Central Bank of Iraq (CBI), despite submitting his resignation, as confirmed by a CBI contact.
Currency Goals: The focus is on eliminating black market corruption related to the dollar. Initial plans aim to set the Dinar at par with the official CBI exchange rate before any further adjustments.
Recent Articles: There were four articles in the news about removing zeros from currency, signaling that an exchange rate change could happen soon.
Budget Changes: Militia Man shared insights that important budget contents, which include Article 140 and the hydrocarbon law, necessitate a new official exchange rate.
Ground Reports:Frank 26 highlighted that there is a three-year budget in progress, emphasizing the need for a new exchange rate to support citizen purchasing power.
Exchange Process: It’s suggested that once the exchange of larger bills occurs, individuals will have a three-week window to convert to smaller denominations.
Banking Regulations:Fulu mentioned the importance of having uniform exchange rates across banks to comply with the law of One Price.
Supplemental Budget: Jeff pointed out that the actual operating budget is ready but requires amendments to include supplementary funding for development plans.
Public Sentiment:Frank noted that there's growing public discussion indicating negative views about changing the exchange rate, primarily driven by individuals aware of imminent changes.
Banking Growth: Al Alak reported a significant increase in the number of bank cards, totaling approximately 19.75 million, reflecting growth in banking activity.
This summary encapsulates the main discussions and highlights potential upcoming changes in Iraq's currency management and economic policies.
The Governor of the Central Bank, Ali Al-Alak, signed an agreement with the International Finance Corporation (IFC) on (Financial Sustainability Roadmap).
“We are addressing this day as an important and fundamental aspect in the development of the banking sector in Iraq, as the term environmental, social and governance standards and governance has witnessed turbulent growth since its launch for the first time in 2005,” Al-Alak said in a speech during the launch ceremony of the financial sustainability project and the manual for banking, indicating that “environmental aspects and response related to climate change are key factors driving the development of environmental, social and governance standards, in addition to the growing importance of other basic elements, especially social ones.”
He added, “If these standards are important for any economic entity or company, regardless of their activity, mission and products, their importance to the financial sector is a very important issue, as the social and environmental changes represent a significant impact on the reality of this sector and what is required to manage it according to regulatory, supervisory and technical rules that avert the risks to ensure the rights of shareholders and stakeholders in a framework of transparency, disclosure, and above all, contributing to achieving financial stability, which reflects the repercussions of the crises on the economic, social environment and general stability, as well as the environmental and social repercussions on stability.”
“We are pleased to announce a roadmap for the financial sustainability of the banking sector in Iraq for the years 2023 to 2029 and social and institutional standards,” he said, pointing out that “this project is part of the ongoing efforts of the Central Bank of Iraq to improve the banking sector based on international best practices as well as keep pace with developments in the banking industry.”
He stated that “with this announcement, the Central Bank of Iraq is the first in the region by applying this guide.”
Al-Alak praised “the role played by the international experts in the International Finance Corporation of the World Bank Group and their active contribution in preparing the road map for the financial sustainability of the banking sector in Iraq,” appreciating “the effective and continuous partnership and fruitful cooperation with the institution.”
He thanked “for the fruitful and distinguished efforts of the Central Bank team as well as for the support provided by the Kingdom of the Netherlands in this context to push towards helping Iraq implement these necessary important programs.”
Alaq is stating, 'we are constantly reviewing the deletion of the zeros from the dinar and there are no restrictions on our balances in America.'
So here again he's talking about deletion of the zeros in September 2024 just like he did back in July of 2023.
Quote: "The Central Bank of Iraq has reduced reliance on the US dollar in commercial transactions according to the governor of the Central Bank...adding that the project to remove the zeros in Iraq is under continuous review and study at the bank." It's fascinating to see he's back beating the drum about deletion of the zeros.
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Purchasing power is deserved by this country. They have assets that are phenomenal. The non-oil revenues... gold reserves, foreign reserves and other sources of income through taxes and tariffs etc is going to be phenomenal.
Prime Minister: Committed to supporting multilateralism in addressing global challenges
9/22/2024 Baghdad
Prime Minister Mohammed Shia Al-Sudani affirmed, on Sunday, the commitment to work with the international community to find common solutions and cooperate in building a better and more sustainable future for all, while calling for strengthening international cooperation in the fields of land, maritime, cyber, and outer space security, in order to ensure comprehensive security.
The Prime Minister's Media Office stated in a statement, which was reviewed by "Al-Eqtisad News", that the Prime Minister participated in the Future Summit held in New York on the sidelines of the 79th session of the United Nations General Assembly.
He pointed out that "the summit aims to enhance cooperation on key challenges, bridge gaps in global governance, reaffirm existing commitments to the Sustainable Development Goals (Global Goals) and the United Nations Charter, and lay the foundations for more effective global cooperation that can deal with today's challenges and any new threats that may arise in the future."
He explained that "the Prime Minister delivered Iraq's speech at the summit, during which he stressed the pursuit of serious steps towards achieving sustainable development and effectively responding to the goals of the National Development Plan (2024-2028), by adopting comprehensive strategic reforms."
The following are the most prominent points made in the Prime Minister's speech at the Future Summit:
• We are working to enhance economic reform and improve the conditions of the most vulnerable groups.
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We have adopted a strategy that advances vulnerable groups in terms of social justice, and builds human resource capacities through developing education and health, and caring for youth and women.
• Committed to establishing the concepts of climate justice, especially in combating drought and desertification and ensuring the sustainability of water resources and food security.
• Confronting climate challenges requires effective international cooperation within the framework of the United Nations Framework Convention and the Paris Agreement.
• We stress the need to give Iraq priority in climate finance, as it is one of the most affected countries, and we have begun implementing our commitments set forth in the National Contributions Document.
• We support investments aimed at diversifying the economy away from oil, with a focus on the role of the private sector in providing job opportunities.
• Sustainable development requires ambitious investments, and we are keen to provide incentives to the private sector and invest in renewable energy projects.
• We strengthen our international relations on the basis of mutual respect and common interests, and commitment to the principle of not allowing our territories to be used to attack other countries.
• We support all efforts to promote human rights and involve civil society organizations in achieving development goals.
• Achieving peace requires a joint international effort, and diplomacy and dialogue are key to achieving stability.
• We call for strengthening international cooperation in the areas of land, maritime, cyber, and outer space security, to ensure comprehensive security.
• Science and technology are the basis of sustainable development, and we are working to transition to a digital economy and provide an integrated database to support decision-making.
• We seek to enhance international cooperation in the field of technology transfer and capacity building, while supporting Iraqi inventors in every forum.
• We encourage scientific research in clean oil and gas technologies, and work to enhance technical education to provide young people with the skills required for the modern labor market.
• Enhancing international cooperation is essential to ensure that countries have access to the necessary tools and capabilities to benefit from artificial intelligence in a responsible and ethical manner.
• We emphasize the importance of adopting clear strategies for using artificial intelligence safely and responsibly to serve humanity.
• We seek to provide a supportive environment for youth by holding workshops to enhance their role in development.
• We are keen to provide advanced educational opportunities and training programs, and cooperate with the United Nations to develop indicators to measure youth development.
• We call for reforming international institutions to enhance their representation and ability to address global challenges.
• We are committed to public sector governance, combating corruption, removing obstacles to private sector growth, and focusing on accelerating digital transformation and activating laws to hold violators accountable.
• Iraq is committed to working with the international community to find common solutions, and our cooperation will contribute to building a better and more sustainable future for all.
• We stress the need to end the ongoing aggression on Gaza and Lebanon, and work to establish security and stability in the region and the world. LINK
Institute the reforms the “Pillars of Financial Reform” – Banking, Insurance, Stock Market;
Get rid of the parallel market and demand for the dollar through the black market;
Realize the Central Bank “official” rate of the dinar and overcome the dollar crisis.;
Be able to raise the “official” rate of the dinar against to dollar to a sustainable, realistic rate that reflects the true economy of Iraq (just over a dollar in-country)
;
Conduct the Project to Delete the Zeros: decrease the monetary mass by collecting these large three zero notes,stashes/hoards of dinars and dollars.
Swap out the currency; Watch/monitor for inflationary pressures on the process;
Reinstate the IQD back to the global currency exchanges ie. FOREX. Not just a placeholder on FOREX pointing to ISX but the ability of tradable buy and sell options.
