Friday, September 27, 2024
: "Do you know how long people have been waiting for this news? " IRAQI NEWS UPDATE BY ARIEL, 27 SEPT
ARIEL
Iraqi News Update 🇮🇶
Recent historical moves in Iraq's financial sector indicate a significant stride towards modernizing banking operations.
According to the latest info. Iraq is poised to complete its transition to an advanced banking system, aligning with international financial standards. This overhaul, which is approximately 95% complete, aims to conclude by the end of 2024, marking a critical moment in Iraq's economic reform.
The core of this transformation involves moving away from the wire auction system to direct correspondent banking relationships. This shift aims to not just an upgrade in operational efficiency but also aims at combating corruption and fostering transparency in financial transactions. Which will create Security & Stability in all Iraq.
You all should be jumping around your home & office at this news.
You were just told by the CBI that they only have 5% left to do and you will be able to cash in your currency.
Do you know how long people have been waiting for this news?
Can you imagine that on that day it will be your last time being broke? And you will have the opportunity to start the year off with a bang.
This comprehensive banking reform is not just about operational changes but represents a broader vision for Iraq's economic renaissance. By integrating with the global financial network more seamlessly, Iraq is setting the stage for a future where its economy is not only resilient but also a key player in regional financial dynamics.
PIMPY: Kuwait is not the same damn thing that's happening in Iraq., 27 SEPT
Breaking Down the Latest News on the Iraqi Dinar: What You Need to Know
Mark Z's Announcement: What Was Said?
Recently, Mark Z delivered some exciting news concerning the Iraqi Dinar, which has sparked renewed interest in the currency. According to Mark Z, the deletion of zeros from the Iraqi Dinar is under active consideration. This type of currency reform could significantly impact the Dinar's value and the broader Iraqi economy.
Reviewing the Deletion of Zeros
Mark Z mentioned that the Central Bank of Iraq (CBI) is constantly reviewing the deletion of zeros. For those unfamiliar, this means that the CBI is contemplating removing three zeros from the currency — transforming a 25,000 Dinar note into a 25 Dinar note. Similar reforms have been implemented by other countries to stabilize their economy and curb inflation.
This is not the first time such discussions have been on the table. In his analysis, Mark Z likened this review process to what occurred in Kuwait post-hyperinflation, implying that Iraq was following a similar path.
Setting the Record Straight: Misconceptions About the Kuwaiti Dinar
Mark Z's comparison to Kuwait's economic reforms has been met with skepticism. Pimpy, provided a counter-narrative to debunk the inaccuracies in Mark Z's claim. According to Pimpy:
- **Kuwait’s Situation**: The Kuwaiti Dinar was never inflated to the extent of the Iraqi Dinar. Kuwait did not have high-denomination banknotes such as Iraq's 25,000 notes.
- **Currency Reform in Kuwait**: Instead of removing zeros, Kuwait changed the appearance of their notes to prevent their currency from being stolen or used illegitimately post the Iraq invasion. The value was restored once the situation was stabilized, but there was no direct correlation to deleting zeros.
Pimpy emphasized that Iraq's situation is distinct from Kuwait's. The current discussion surrounding the deletion of zeros mainly aims to simplify transactions and help stabilize the economy, rather than copying a historical precedent incorrectly understood.
The Role of Restrictions
Another critical point mentioned in the discussion was about the "no restrictions on our balances in America." This statement refers to the accessibility of Iraqi financial assets held in the United States. Essentially, it means that Iraq can now utilize its funds without restrictions imposed by US regulations or sanctions, allowing for better economic management and flexibility in international trade.
What Does This Mean for Investors?
Investors should be aware of several key points when considering the impact of these discussions on the Iraqi Dinar:
Ongoing Review by the Central Bank of Iraq
The fact that the CBI is actively contemplating the deletion of zeros suggests that the authority is looking for ways to stabilize and enhance the currency's value. This ongoing analytical process indicates that changes could be on the horizon, but the exact timeline and implications remain uncertain.
Economic Indicators
Several economic indicators need to be analyzed to understand the potential impact better:
- **Inflation Rates**: The deletion of zeros could help manage inflation by making the currency more manageable.
- **Currency Stability**: Removing zeros could also make transactions simpler and restore confidence in the Iraqi Dinar.
- **Economic Health**: Achieving economic stability requires a holistic approach, encompassing various reforms beyond currency adjustments.
Public Perception and Market Reactions
The success of such a policy also depends on public perception and market reactions. If not handled correctly, it could lead to confusion and lack of trust in the currency.
The Truth Behind the Prospects
Despite the excitement and speculation, investors must remain grounded. Pimpy's investment chat stresses the importance of scrutinizing the information being shared. While the news sounds promising, the realities of economic reform are complex and multifaceted.
How Should You Respond?
If you are contemplating investment based on these developments, consider the following steps:
Do Your Research
Understand the broader implications of the announcements. Look into historical precedents, but also understand the unique circumstances that differentiate Iraq from other countries like Kuwait.
Evaluate the Risks
Investments, particularly in foreign currencies, carry inherent risks. Evaluate your risk tolerance and understand the potential volatility associated with such investments.
Stay Informed
Follow reliable sources and updates from financial news and the Central Bank of Iraq. Staying informed will help you make better decisions based on accurate information.
Diversify Your Portfolio
Rather than putting all your eggs in one basket, diversify your investments to spread out risk. This strategy will help mitigate potential losses in any single investment.
Final Thoughts
The discussions around the Iraqi Dinar and the potential deletion of zeros are significant for those holding or considering holding the currency. While the news presents an optimistic outlook, it is crucial to approach it with caution and thorough consideration. Scrutinize information, understand the broader economic context, and make informed decisions. Remember, investments are not just about potential gains but also about managing risks and staying grounded amid speculation.
Al-Sudani concludes his visit to New York with a meeting with Guterres, who praised the discussions on ending UNAMI’s work in Iraq, 27 SEPT
Shafaq News / Prime Minister Mohammed Shia Al-Sudani ended his visit to New York with a meeting with the Secretary-General of the United Nations “António Guterres”.
Al-Sudani had concluded his participation in the work of the United Nations General Assembly on its 79th session, leaving the United States of America for Iraq at dawn on Friday Baghdad time.
A statement issued by the Sudanese media office said that the latter’s meeting with Guterres witnessed the review of all the files of constructive cooperation between Iraq and the United Nations, and the issues of joint work, as well as discussing the developments in the Middle East and the continuation of aggression against Lebanon and Palestine, and the great threat it poses to regional and international security and stability.
Al-Sudani expressed his appreciation for the principled positions expressed by the Secretary-General of the United Nations on the issue of “aggression” on Gaza, and condemning the “crimes” against humanity committed against the Palestinian people, as well as the attacks on Lebanon, describing these positions as respecting the foundations on which the international organization was built.
He reiterated Iraq’s thanks for the cooperation and support that United Nations agencies have always plaid in order to consolidate stability in Iraq, support the Iraqis in confronting ISIS, promoting the victory achieved thanks to the cohesion of the Iraqi people, and the assistance of friends and the international community.
According to the statement, the Prime Minister submitted to the Secretary-General of the international organization an invitation to visit Iraq and participate in the work of the Arab summit to be hosted by Baghdad in May 2025.
For his part, Guterres praised the relations between Iraq and the United Nations, describing them as ideal and excellent relations, and that the United Nations is interested in consolidating prosperity and progress, and achieving sustainable development for the Iraqi people.
He also expressed his gratitude for the joint constructive discussions that led to the termination of the work of the UNAMI mission in Iraq, and opening the horizons for cooperation in several fields with the competent UN agencies, the most important of which is supporting Iraq in facing the challenges of climate change, the rest of the economic challenges and social and service development programs that Iraq has made an important strides.
PROOF OF IRAQ MOVING FORWARD: " IRAQ WAS NEVER INTENDED TO STAY ON THESE LARGER 3 ZEROS NOTES FOREVER" BY MNT GOAT, 27 SEPT
PROOF OF IRAQ MOVING FORWARD
Then another article goes on to say “The Prime Minister stressed that the government has made great strides in the financial and banking reform file, and 95% of bank transfers have been completed through the electronic platform, and less than 5% remains to be completed by the end of this year, after which the transition to the correspondent banking system will take place”,
Does this mean the currency auctions as we know them today will end? Yes, I believe they are telling us they will end and the Central Bank will no longer support paying for imports in US dollars paid out of the CBI reserves.
So the conversion of dinars to US dollars for this purpose WILL END.
Instead, the Iraqi banks will work with “correspondent” banks in the countries they are doing trade with to pay for the goods and services.
Looks to me that Iraqi merchants will take their Iraqi dinars and pay for the imports. The “corresponding” banks will then take the dinars and convert them to the currency used within the country of origin to pay for them.
EXAMPLE:
Let me give an example of the upcoming situation they just told us will begin in early 2025:script async="" crossorigin="anonymous" src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-6009082504355829">
An Iraqi merchant buys a ship load of German beer. He then goes to an Iraqi bank and electronically pays for the beer in his dinars in his account.
Dinars are then electronically sent to a German bank in Munich, Germany, as requested by the vender in Germany. The German bank converts the dinars to Euros and places them into the account of the vender (the brewery or wholesaler of the beer).
Is this not exactly what we all hoped and wished to see for the last 2 decades? Yes, this normal international trade practices like all other countries and acceptance of the dinar globally.
This is the final straw to ending the sanction like practices imposed upon Iraq due to the war.
We all know that all provisions of Chapter VII were completed and Iraq FULLY released from the UN Chapter VII in December 2022.
So it has taken this long to work out the process and finally get back to normal trade relations with the world. Part of this process is also to get back to normalizing their currency which also has to be set back to normal denomination of lower denominations on the face of the currency.
Iraq was NEVER intended to stay on these larger 3 zero notes forever. Get it? It was part of the sanction process. Now the sanctions are over.
https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/TIDBIT FROM CLARE, 24 NOV
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