Walkingstick
This base currency they are now teaching the Iraqi citizens about in the hybrid monetary plan is considered the domestic currency which is the IQD.
In this case the lower notes that will be coming out. Base currency means the Iraqi dinar it is a first currency in a currency pairing...
The IQD will be the dominant currency in Iraq and on the Forex due to its pairing. That step is the float to reach the real effective exchange rate.
The Central Bank reveals the value of the cash reserves that Iraq possesses
Baghdad-Mil
The Governor of the Central Bank, Ali Al-Alaq, revealed today, Wednesday, the value of the cash reserves that Iraq possesses.
Al-Alaq said during the second day of the “Miri 2024” forum in Erbil, which was followed by “Mil”, that “the role of the Central Bank cannot be reduced by looking at the currency selling window only,” stressing that “the Central Bank represents a fundamental pillar of economic and financial stability in the country.”
He added, “Iraq started in 2003 with reserves of nothing,” adding, “We now have more than 100 trillion dinars in circulation, and foreign currency reserves exceed 140% of the issued currency, which constitutes a great guarantee for monetary stability.”
Al-Alaq continued: “We have licensed 16 companies for electronic payment, and the Central Bank is working on licensing digital banks,” noting that “the Central Bank is establishing a national company that will organize electronic payment, using the best technologies and methods, and it has reached advanced stages.”
He explained: “We have a plan to reform government banks and a plan to reform private banks. In the coming year, we will witness major transformations in government banks and their restructuring, or as for private banks, their licenses will be re-established according to the foundations and standards of governance and transparency and will be consistent with international standards.”
Al-Alaq said that “about 40% of the banks in the world play a direct role in stimulating the economy, and Iraq is among these banks,” noting that “confronting the financial deficit in the budget is through public debt, and this matter requires control coming from the structure of the state’s public finances.”
He pointed out that “it comes from the deficit, and the large deficit in the budget comes from the continuous increase in expenditures that is not matched by growth in revenues, especially local revenues.”
Al-Alaq pointed out that “there are now binding and inflexible expenses in the state’s general budget, and Iraq still depends on oil revenues to cover its expenses almost entirely, and any fluctuation in the price of oil affects the coverage of expenses,” according to Al-Alaq, who saw that this “indicates the existence of a structural defect in the structure of the Iraqi economy.”
As for inflation, he said that “it was about 7.5% in 2023, so the bank had to work on withdrawing part of the money supply to reduce inflation.”
Al-Alaq added, “In 2020, the size of the money supply was 46 trillion dinars, and it jumped at the end of 2023 to 100 trillion dinars .”
The Central Bank Governor stated that “the level of the money supply did not increase during the year, and remained the same, and this indicates that this interest has achieved its goal,” revealing that “the external debt is less than 20 billion dollars.”
Militia Man
As far as the Hydrocarbon Law is concerned I think we need the financial side of things first.
Article 140, they're going to need the financial side done first. I think that's where they're at.
The black market is having pressure put on it now and it's going to cease in the near future. They said by the end of the year.
The dollar auctions will be gone anyway. But between now and then they've reduced it.
Well over 95% of all transactions are done outside of the black market...The black market is relatively insignificant but it's still affecting the citizens.
Central Bank Governor reveals important figures about Iraq’s economy and foreign reserves
The Governor of the Central Bank of Iraq revealed important figures about the Iraqi economy and its foreign currency reserves.
Ali Al-Alaq said during his participation in the Middle East Forum 2024 (Miri) session in Erbil, that “the volume of currency issued in circulation is approaching 100 trillion dinars,” indicating that “the cash reserve of foreign currency exceeds 100 billion dollars.”
He explained that “next year will witness major transformations in the restructuring of government and private banks. ”
He pointed out that “the growth rate of the money supply rose from 46 trillion to 100 trillion within two years,” noting that “the external debt does not exceed 20 billion dollars.”
Al-Raqqa confirmed that “the inflation rate currently stands at 3.8%, which is a typical rate,” revealing that “the Central Bank has granted a license to 16 electronic payment companies.”
Frank26
[Iraq boots-on-the-ground report]
FIREFLY: Mr Sammy
[FRANK: Who runs one of the banks in Iraq]
said all that is needed at this point is a new rate to push forward the remaining things.
The budget has not been released yet but it will be. Then the HCL also needs to be voted and we need the Speaker of the House.
All of these things are working together. To see that budget and the HCL we're going to need to see the Real Effective Exchange Rate.
FRANK: The Real Effective Exchange Rate will come when it starts to float. That's part two of the 'hybrid monetary reform plan'. Part One is to give you purchasing power. I agree with Mr. Sammy...
there are major events that are coming to an intersection that will collide with great force for your new exchange rate and currency.
