Then the news media from Iraq tells us about the “cash center”that recently opened in Karkh.
It is used solely for the intake of the three zero dinar notes or dollars.
Folks they are already sucking in the three zero notes.
What more do you want? It’s mid-October already just 14 days to the US elections. With the electronic banking and the reorganization of the banks, the citizens seem to have regained confidence in their banking system.
The reason why they had to open this new cash only center, according to my CBI contact, is that there was a huge response to ditch these three zero notes before they may become obsoleted and the lower notes replace them. Citizens remember what happened in 2004, when they had to turn in their Saddam Hussien notes by a deadline.
Many people got stuck with these notes, as they forgot or did not trust the banks.
They lost millions when the deadline came and they were obsoleted/voided. The CBI has not yet announced a deadline but still the citizens remember what happened back 20 years ago. So in reality, unofficially, the process of deleting the zeros has already begun. Yes, it is underway according to my CBI contact.
If you remember a couple months ago, at just about this timeframe, the Iraqi economist Yasser Al-Mutawali asked the question to the Finance Ministry and to the general public – “Is It Time To Remove The Zeros” ?
So, another month has passed and we still didn’t see this project executed.
But should we?
We have been since told by my CBI contact on the committee that we should expect to see the ramped-up Project to Delete the Zeros sometime soon after the U.S. election period is over sometime in November.
This period of time through December will begin the process for the swap out with the newer lower denominations.
To me this also means about a 1:1 at par rate of the IQD with the US dollar. But remember this is IN-COUNTRY only.
Also remember these actions ALWAYS have dependencies. Nothing is a guarantee! I want to make this VERY CLEAR to you today.
Three Obstacles Preventing Iraq From Joining The BRICS Group
Economy | |Baghdad today – Baghdad, Tuesday (October 22, 2024), Professor of International Economics Nawar Al-Saadi revealed the reasons for Iraqnot joining the BRICS group. Al-Saadi told “Baghdad Today” that “Iraq has not joined the BRICS group yet for several reasons related to the current economic and political situation, in addition to the fact that Iraqdid not meet the conditions for joining, and the most prominent of these conditions is that it be among one of the economies.”
"But Iraq has a rentier economy par excellence and depends only on the export of oil as a main source of income, which makes its economy less diversified compared to the founding countries of the group, such as
China and India." He added: "The second important question is that Iraqshould have absolute financial sovereignty over its economy and not as it is now, where it is subject to the rules and conditions of the US Federal Reserve in granting financial shares." He explained, "Also, Iraq'strade relations with some BRICS members, such as Brazil and South Africa, are not strong enough to support it in this direction. In addition,
Iraqi foreign policy is still balanced between competing global powers, including the United States, which looks warily at... The expansion of BRICS and its geopolitical influence,” pointing out that “in the future, these dynamics may change, especially if economic diversification is strengthened and
internal political stability and absolute financial sovereignty are achieved.” He noted, "If Iraq joins, it may benefit from expanding economic cooperation opportunities with countries such as China and Russia, including investments in infrastructure and non-oil sectors, and this may help reduce dependence on oil and diversify sources of income."
The professor of international economics concluded his statement by noting that “there are some potential harms to Iraq joining BRICS, and entering into a bloc that challenges Western hegemony, especially the United States, which may lead to diplomatic or economic tensions with the West, which negatively affects Iraq’s current commercial and political relations.” With
Western countries, and dealing with some of the BRICS founding countries, such as Russia, which faces international sanctions, may put Iraq in sensitive positions on the international scene.”
The Republic of Iraq has achieved a key milestone with the signing of the Guarantee Agreement between the General Authority of Customs and the TIR national association. This agreement will pave the way for the implementation of the United Nations TIR transit system in Iraq."
A key requirement for joining the WTO is consistent trade policies throughout the country, including tariff rates and customs procedures.
The signing of this agreement will go a long way in the accession process for Iraq early next year through the WTO.
The United Nations TIR transit system in Iraq offers significant benefits by significantly reducing border crossing times, streamlining customs procedures, boosting trade potential, and promoting economic development within the region by enabling faster and more secure movement of goods across borders through a globally recognized system, essentially minimizing delays at customs checkpoints and facilitating efficient trade flows.
In March 2023, Iraq became the 78th country to join the United Nations (UN) Transports Internationaux Routiers (TIR) Convention. Key benefits of the (TIR) system in Iraq:
Reduced border waiting times:
TIR allows trucks to cross borders quickly with sealed load compartments, eliminating the need for lengthy customs checks at each border crossing, leading to faster transit times.
Simplified customs procedures:
The TIR carnet acts as a single document that guarantees the customs duties throughout the transit journey, reducing paperwork and bureaucratic hurdles.
The United Nations and the International Road Transport Union (IRU) have joined efforts to fully computerize the TIR procedure. This is called eTIR, and it allows associations to issue electronic TIR carnets to authorized holders online.
Increased trade potential:
By facilitating easier movement of goods, the TIR system can stimulate trade between Iraq and other countries in the region, boosting economic growth.
Enhanced security:
The sealed load compartments and strict customs controls under the TIR system provide greater security for goods during transit, minimizing the risk of smuggling or diversion.
Cost reduction:
Reduced border delays and simplified customs procedures can lead to lower transportation costs for businesses.
Improved regional integration:
By joining the TIR system, Iraq aligns itself with international standards, promoting smoother trade interactions with other countries in the region.
Yes, trade agreements and customs can affect exchange rates:
Trade agreements
Trade agreements can lead to more stable exchange rates. When countries trade more, their economies become more aligned, which can reduce the risk of exchange rate volatility.
Tariffs
Tariff increases can lead to real exchange rate appreciation. Tariffs are a type of trade barrier that can raise the relative prices of imported products.
Exchange rates and FTAs
Exchange rates can play a significant role in the utilization of free trade agreements (FTAs). For example, if an exporter's currency depreciates against the importer's currency, it can enhance FTA utilization.
Exchange rates can be volatile and can adjust when central banks make economic and political decisions, or attempt to control inflation or adjust interest rates.
Although Iraq is expected to have a rate for the United Nations TIR (Transit International Road) system to trade. There is no indication in these articles that one has been decided upon.
👆 TIR is a Regional Expansion - next stop - Global with the WTO
