HERE ARE significant developments concerning the Iraqi Dinar and the potential for its revaluation (RV).
The focus is on ongoing high-level meetings scheduled through the 25th of September, which many believe could lead to crucial announcements regarding the currency.
Key Highlights:
Reformation Process: Various financial reforms are being addressed to stabilize the dinar, including eliminating the parallel market and solidifying the bank’s role in establishing a realistic exchange rate.
Deletion of Zeros: There's increasing speculation about the "deletion of zeros" from the dinar, similar to past actions taken by Kuwait. This process aims to modernize the currency and enhance its value.
Intel Reports: Contributors share optimistic insights indicating that Iraq is making substantial progress toward reinstating the dinar's value while reducing reliance on the US dollar. There are ongoing discussions about the future currency structure and how existing large denominations will transition to smaller notes.
Economic Diversification: The Prime Minister emphasizes support for investments that aim to diversify Iraq's economy beyond oil, further indicating proactive economic strategies.
Regional Tensions: WE have concerns related to regional security issues, particularly regarding threats from Iranian-backed militias targeting Israel, which may impact Iraq's stability and economic initiatives.
FRANK26: "THE MONETARY REFORM IS THE MAP PROJECT IN ORDER TO SUCCEED.".........F26
Central Bank of Iraq launches Financial Sustainability Map Project
September 23, 2024
The Central Bank of Iraq launched the Financial Sustainability Map Project and the Environmental, Social and Governance Guide for Banks in cooperation with the International Finance Corporation (IFC). His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, said on the sidelines of the launch ceremony: The Central Bank plays an important role in supporting the development, growth and financial stability of Iraqi banks, while ensuring that their environmental, social and governance performance is consistent with international standards.
The Governor stressed that the Central Bank is implementing this guide, which is unique in the Middle East region, praising the role of the International Finance Corporation and the Kingdom of the Netherlands in helping Iraq implement these programs. In turn, Fawaz Al-Bilbeisi, Director of the International Finance Corporation in the Kingdom of Saudi Arabia, Iraq and Lebanon, said that this partnership represents a milestone in Iraq's strategic approach to sustainable financing, and demonstrates the IFC's commitment to partnering with the Central Bank and the banking sector in Iraq to strengthen the country's financial infrastructure and increase the competitiveness of its banks. He noted that the Environmental, Social and Governance Regulation will help banks improve their performance. The first session witnessed the strengthening of the Iraqi banking sector for a sustainable future and investment, which addressed the bank’s journey to prepare a roadmap for financial sustainability, while the second session witnessed the possibility of managing environmental and social risks as a focus for change in the Iraqi banking sector.
Central Bank of Iraq Media Office September 23, 2024
We had five of these articles talking about deleting the zeros...and then one today, so six total within 3 days. Very amazing ...
Removing zeros is getting rid of the large 3-zero notes and replacing them with smaller size currency notes but at an increased value. So when the rate changes the large notes have the same purchase power before the rate change as the smaller notes after the rate changes. They would have to increase the value for the currency, strengthen it, to delete the zeros...
WHAT DOES IT MEAN TO REDUCE DEPENDENCE ON THE DOLLAR AND REMOVE ZEROS FROM THE DINAR?
(My CBI contact told me to expect this article soon and so here it is…remember I told you it was coming. This is part of the education for the citizens.)
Countries remove zeros from their currency to revalue the national currency and simplify financial transactions. This is done by removing a specific number of zeros from the nominal value of the currency, making it appear less inflationary and more stable. This is how the Governor of the Central Bank of Iraq, Ali Al-Alaq, summarized the issue.
Al-Alaq confirmed yesterday the reduction of reliance on the US dollar in commercial transactions, adding that the project to delete zeros in Iraq is subject to continuous review and study at the bank.
Al-Alaq said, in a statement followed by the “Iraq Observer” agency, that “the Central Bank responded to global economic challenges such as rising energy and raw material prices, by amending some monetary policies in line with the international situation and to enhance confidence in the Iraqi dinar and prevent a sharp decline in its value.”
He added, “The Central Bank of Iraq has increased its holdings of foreign exchange and gold reserves to strengthen the country’s financial position and financial stability in order to enhance its ability to confront potential economic crises.”
Local bank accounts
Regarding the steps taken to address the dollar’s rising crisis, Al-Alaq said, “The Central Bank of Iraq has created new mechanisms to cover local banks’ accounts with their senders in other currencies (Chinese yuan, Indian rupee, euro, and UAE dirham) in addition to the dollar, which has reduced reliance on the US currency in commercial transactions for these banks’ clients, while the Central Bank seeks to withdraw excess liquidity in the economy that puts pressure on the exchange rate and to prevent the exported currency from growing in an undesirable manner.”
Regarding the country’s foreign reserves, the Central Bank Governor explained that “foreign exchange reserves are the tool used by all central banks to maintain the stability of the local currency exchange rate against foreign currencies, as well as to reduce exposure to external crises by maintaining liquidity in foreign currency to absorb shocks in times of crisis.”
“According to the latest data on the level of foreign reserves adequacy, the Central Bank of Iraq’s foreign reserves cover 83.62% of the broad money supply, i.e. covering the cost of importing 15 months, while the global standard rate is 20%, covering 6 months of importing,” according to Al-Alaq.
He pointed out that “the sanctions imposed on banks are related to the decision to ban dealing in dollars, as the banks were not included in the sanctions list issued by the Office of Foreign Assets Control, and therefore the banks’ activities continue, according to the applicable procedures and in all currencies except the dollar.”
Regarding the situation of the Iraqi banking sector, Al-Alaq said that it “is experiencing a state of stability, as government banks still control approximately 79% of the assets of the total banking sector, compared to 21% for private banks.”
Private sector
While observers believe that the development road project needs 5 years to complete, they pointed out that Iraq will end the unemployment problem and provide jobs for graduates and the unemployed alike. They said: “The most important thing is for Iraq to move away from the rentier economy that has frozen other sectors despite the abundance of local production and the wheel of reconstruction turning in all of Iraq, which means that the government is taking the right step in diversifying sources of income.”
Economic expert Abdul Rahman Al-Shaikhli said: “Our economy will not see the light of day as long as its two components, “oil and monetary,” are held hostage by the US Treasury and the Federal Reserve Bank. He considered that in order not to jump over the reality, we must look at things as they are, without hanging them on any scapegoat of truth. ”
Al-Sheikhly told the “Iraq Observer” agency: “In order to get rid of this dominance, we must work on diversifying the sources of funding for the budget, giving free rein to the “clean” private sector, and limiting economic activities “financial and monetary” to honest hands under strict supervision, especially Iraq’s revenues from customs, taxes and fees, and preventing their exploitation by the corrupt.”
The financial and economic expert explained: “All of this is possible and it is possible to reform our economic system naturally if we can get rid of foreign hegemony.”
Keeping up with developments
On the sidelines of the electronic payment conference in the middle of this month: “The Governor of the Central Bank, Ali Al-Alaq, confirmed that the number of applicants to establish digital banks “exceeded 70 banks,” noting that “digital banks are widely spread in the world and the volume of financial transactions in them is around 5 trillion dollars annually.”
Al-Alaq said: “Digital banks are widespread in the world, and their volume of funds ranges from 5 to 7 trillion annually.” He added: “We conducted in-depth studies until we reached the point of setting rules for licensing these digital banks.”
He pointed out: “We were surprised by the number of applicants to digital banks, which reached 60 to 70 banks, and we are in the process of studying the applicants’ requests.”
He continued: “We are keeping up with developments and moving towards progress, and there is communication with many external and internal parties, and it is on two levels that depend on the banking sector and the capabilities of the Central Bank to keep up with development and contribute to developing various programs and applications,” stressing that “the Iraqi cadre is distinguished by its ability to adapt and develop.”
He pointed out that “the Central Bank has important contracts with specialized companies, and chooses international companies to develop and set up programs, in addition to international cooperation,” noting that “the Central Bank has effective relations with international and global banks, in addition to electronic payment companies, as well as its relationship with central banks, and it has continuous movement in cooperation with important banks.”
It's GETTING HOT IN HERE...!!! BANKS ARE VERY EXCITED...SEEING DINAR @ $3.57.
THEY SAY THEY'RE JUST AWAITING AUTHORIZATION...
THE $3.57 RATE ON THE BANK SCREENS WILL BE HIGHER WHEN WE GO IN... EVEN THOUGH SOME ARE EXPECTING IT TODAY, I AM FOCUSING MORE ON TOMORROW... DEFINITELY "GOOD NEWS"...IF IT HOLDS TRUE.
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RayRen98
...MORE US BANK STAFFERS ARE REPORTING SIGNING "NDA'S" ARE CLAMMING UP... ANOTHER PROVINCE HAS BEEN REPORTED HAVING "LOWER DENOMS" BEING DISTRIBUTED IN SOME MANNER, AWAITING FURTHER COMPLETE DETAILS, IF ANY....
IF WHAT THEY'RE TELLING ME IS TRUE...SOME OF YOU ARE GONNA GO TO SLEEP WEALTHY $$$$$$...IT'S YOUR SEASON....TO BE BLESSED!!
RayRen98
[via Twitter/X]
...Verified lower denom locations...Province 8 Baghdad, Province 11 Najaf, AND possibly Province 1 Duhok up near Turkey.
RayRen98
[via Twitter/X]
Community Comment: Just informed that lower denoms are being released to the streets right now. ...It’s on the way.
RayRen98
THE WORLD COURT RECEIVES DISPUTES (AND SEEKS RESOLUTION) BETWEEN NATIONS. THE DETAILS ARE INSIGNIFICANT, THE RV IS SLATED TO MOVE FORWARD NOW.
I'M BEING TOLD THE WORLD COURT "CLEARED" A FORMAL COMPLAINT TODAY AND TOMORROW IS A DEFINITE POSSIBILITY.
