We see this in today’s articles too when they called the CBI policies regarding the interest rates as “INCOMPREHENSIBLE” and so obviously they don’t care for the flexible “HYBRID MONETARY POLICY” of the CBI.
We have to remember that sometimes there are moments when desperate times brings desperate measures.
They might not be in line with things done in the past, but they work and so this measure of interest rate reduction did work regardless of the author’s OPINION that it did not work. As said in the article that 80% of the issued dinar is outside the banking system. But either the translation got messed up or this author is really off key.
I quote from the article;“As for (Iraq), the previous interest rates of 7.5% did not succeed in (withdrawing the hoarded cash) out of the banking system, which exceeds 80% of the issued dinar”.
So, what is wrong with this statement in the article?
First, much of the 80% of the hoarded cash is outside the banking system and we as investors physically hold it. Since the initial issue of the three zero notes the CBI has more than tripled the issued monetary mass. They must shrink it back by 2/3. There are no other measures that will get this money into the banks unless they revalue it and exchange our currency to bring it back to Iraq through the central banking system.
Secondly, the CBI is attempting to bring this money “into” the banking system not “out” of it, as the article tells us (but this could just be a translation issue too).
Third, the CBI Hybrid Monetary Policy is working and has successfully withdrew much of the cash back and is still withdrawing much of this hoarded cash back to the banks and so I don’t know why the author is saying this. I have coordinated already with my CBI contact and verified the success of the program so far. There is still more to come. They need more time. But they have a figure and know an amount they need to get.
The Dinar Under Siege: How Do Smuggling Mafias Strike the Cash Reserve?
Reports indicate a worrying increase in the activity of currency smuggling mafias in Iraq, which has raised widespread questions about the serious repercussions of this activity on the Iraqi economy.
Such operations that aim to transfer money abroad illegally lead to huge losses in the cash reserve and affect the state’s ability to finance basic needs, and contribute to the exacerbation of inflation and the deterioration of the value of the Iraqi dinar.
One economic analysis states that: “Currency smuggling operations weaken Iraq’s foreign exchange reserves, increasing the country’s inability to meet its basic import needs, and leading to a deterioration in the balance of payments. This illegal outflow of funds not only leads to weak domestic investment, but also creates an unstable economic environment, raising concerns among foreign and local investors alike.”
Another aspect of the negative effects of these operations appears in the financing of illegal activities such as drug trafficking and support for armed groups, indicating that currency smuggling is not only an economic issue, but a security problem that affects the stability of Iraq more deeply.
The various methods used to smuggle money include foreign imports that take place outside the official platform of the Central Bank, which is a violation of the laws and increases chaos in the market.
Reports indicate that some parties are deliberately seeking to weaken the national currency by raising the price of the dollar in an exaggerated manner, which raises questions about the possibility of internal parties colluding with smuggling networks to increase their profits at the expense of the national economy.
Expert Mohammed Al-Kubaisi explains that currency smuggling mafias exploit political and economic crises to increase their activities, taking advantage of weak government oversight and financial turmoil to achieve huge profits.
The problem seems to go beyond the economy to include deeper issues related to weak legislation and government control, which is prompting some analysts to call on the government to take strict measures, including imposing strict controls on financial transactions and setting policies that encourage local investment to limit the flow of money abroad.
link
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Lilfish:IMF Touts US Economy the Growth Engine of the World
WASHINGTON, Oct 22 (Reuters) - The U.S. economy will continue to provide most of the thrust for global growth through the balance of this year and in 2025, led by robust consumer spending that has held up through a wrenching bout of inflation and the high interest rates used to tame it, the International Monetary Fund said on Tuesday.
In its latest World Economic Outlook, the IMF raised its 2024 and 2025 economic growth forecasts for the U.S. - the only developed economy to see its outlook marked up for both years - and its chief economist said the "soft landing" sought by the Federal Reserve in which inflation eases without big damage to the job market had largely been achieved.
Emerging market powerhouses India and Brazil also stood out on the upside of the IMF forecasts, while it dialed back growth expectations for China for this year and left next year's forecast for the world's No. 2 economy at a below-trend 4.5%.
Still, it warned that risks abound from armed conflicts, potential new trade wars and the hangover from the tight monetary policy employed by the Fed and other central banks to rein in inflation.
"Today, the IMF reported that the United States is leading the advanced economies on growth for the second year in a row," Lael Brainard, the director of the White House's National Economic Council, said in a statement.
The IMF's latest World Economic Outlook said the shifts will leave 2024 global GDP growth unchanged from the 3.2% projected by the global lender in July, setting a lackluster tone for growth as world finance leaders gather in Washington this week for the IMF and World Bank annual meetings.
Global growth is projected to be 3.2% in 2025, one-tenth of a percentage point lower than forecast in July, while medium-term growth is expected to fade to a "mediocre" 3.1% in five years, well below its pre-pandemic trend, the report showed.
Nonetheless, the IMF's chief economist, Pierre-Olivier Gourinchas, said some countries, including the U.S., were showing resilience.
"The news on the U.S. is very good in a sense," Gourinchas said at a press conference in Washington. "The labor market picture remains one that is fairly robust, even though it has cooled off."
"I think the risks of a recession in the U.S. in the absence of a very sharp shock would be somewhat diminished," he said.
Although Gourinchas said it looked as if the global inflation battle had largely been won, he told Reuters in an interview there is a risk that monetary policy could "mechanically" become too tight without interest rate cuts in some countries as inflation subsides, weighing on growth and jobs.
CONSUMER STRENGTH
The IMF revised its 2024 U.S. growth forecast upward by two-tenths of a percentage point to 2.8% due largely to stronger-than-expected consumption fueled by rising wages and asset prices. The global lender also upgraded its 2025 U.S. growth outlook by three-tenths of a percentage point to 2.2%, slightly delaying a return to trend growth.
The Central Bank republishes controls for declaring funds and bringing them in or out of Iraq
Today, Tuesday (October 29, 2024), the Central Bank of Iraq republished the controls for declaring funds, while indicating that it allows the entryor exit of amounts less than $10,000.
The bank said, according to a statement received by "Baghdad Today", that "in order to reduce the risks of bringing in and out money across the Iraqi borders and exploiting this in money laundering or terrorist financing operations, and based on the Anti-Money Laundering and Terrorist Financing Law No. 39 of 2025, and the provisions of Controls No. 1 of 2029 (amended Controls No. 1 of 2017), the following must be adhered to:
1. It is permitted to bring in or take out amounts less than (10,000) dollars (ten thousand US dollars) or its equivalent in other currencies without declaring them.
2. It is permitted to bring in or take out amounts exceeding (10,000) dollars (ten thousand US dollars) to 20,000 dollars (twenty thousand US dollars) provided that they are declared, with the necessity of presenting evidence supporting the purpose of bringing in or taking out these amounts. In the event that supporting documents are not available, the traveler must submit a pledge to bring these documents after (30) days from the date of declaration.
3. It is prohibited to bring in or take out amounts exceeding (20,000) dollars (twenty thousand US dollars) or its equivalent in other currencies, and the process of bringing in or taking out these amounts shall be exclusively through financial institutions.
4. It is prohibited to bring in or take out amounts exceeding (1,000,000) dinars (one million Iraqi dinars) even if they are declared, and the amount will be seized and legal measures will be taken against it. 5. Declaration of precious stones and metals if their value exceeds (10,000) ten thousand US dollars. 6. Declaration of financial instruments that are negotiable to bearer or are transferred inside or outside Iraq by a person, postal service, shipping service or any other means and whose value exceeds (1,0000) ten thousand US dollars link
I wanted to tell everyone to prepare. I wanted you to know that THIS IS THE TIME! IT'S DEFINITELY COMING. This is the week we are waiting for! Mauricio is ready to leave, and when he leaves, everyone will leave.
Precatorias is waiting for Mauricio. So when he leaves, then everyone will leave.
I got a call from private contractors and everything is signed with the general payers. We were going to go today, but tomorrow those people will get paid. I'm not sure of the triggers. They said they got paid, I'm trying to confirm that.
Everything is coming and get ready. I agree with Bruce. President Trump wants this done by October 31. Rumors say there may not be an election, they can come out and say 2020 was a fraud and reinstate President Trump as the legitimate president and those people will be arrested.
Bruce's information on Iraq is correct, they started and the template for the foreign exchange market was laid. It will be exciting when we get the opera call. I will be ready at any time of the day or night, I will put on my operatic voice and sing for you live. I wanted to share this with you so that you don't think that it will be a year, as some say, that is not true.
Have a beautiful day or night and look forward to it happening this week.
You should receive notifications in your emails tomorrow. They will be very excited and happy! Love you guys, Wolverine (transcribed by Carpathia)
LISTEN TO CARPATHIA'S IMPROVISED SPEECH at the end of the audio…
TRANSLATE IN SPANISH
Quería decirles a todos que se preparen. Quería que supieran que ¡ESTE ES EL MOMENTO! DEFINITIVAMENTE VIENE. ¡Esta es la semana que estamos esperando! Mauricio está listo para irse, y cuando se vaya, todos se irán.
Precatorias está esperando a Mauricio. Entonces, cuando se vaya, entonces todos se irán.
Recibí una llamada de contratistas privados y todo está firmado con los pagadores generales. Íbamos a ir hoy, pero mañana a esas personas se les pagará. No estoy seguro de los factores desencadenantes. Dijeron que les pagaron, estoy tratando de confirmarlo.
Todo está llegando y prepárense. Estoy de acuerdo con Bruce. El presidente Trump quiere que esto se haga antes del 31 de octubre. Los rumores dicen que puede que no haya elecciones, pueden salir y decir que 2020 fue un fraude y restablecer al presidente Trump como presidente legítimo y esas personas serán arrestadas.
La información de Bruce sobre Irak es correcta, empezaron y se colocó la plantilla para el mercado de divisas. Será emocionante cuando recibamos la llamada de ópera. Estaré listo en cualquier momento del día o de la noche, pondré mi voz de ópera y cantaré para ustedes en vivo. Quería compartir esto con ustedes para que no piensen que pasará un año, como dicen algunos, eso no es verdad.
Que tengan un hermoso día o noche y esperen a que suceda esta semana.
Deberían recibir notificaciones en sus correos electrónicos mañana. ¡Estarán muy emocionados y felices! Los quiero, chicos, Wolverine (transcrito por Carpathia)
ESCUCHE EL DISCURSO IMPROVISADO DE CARPATHIA al final del audio…
