Article: "AL-ALAQ: THE VOLUME OF CURRENCY IN CIRCULATION EXCEEDS 100 TRILLION DINARS"
Quote: “Today, we have more than 100 trillion dinars in circulation (issued currency), not all of the money supply, and reserves of more than 100 billion dollars, which means that the Central Bank has achieved an important basis for monetary stability,”
explaining that “inflation is the basic measure of the Central Bank’s ability to perform its mission and basic function. It is less than 3.8%, which is considered a typical percentage that actually achieves stability and prosperity.”
On November 3, 2024, significant progress has been made in Iraq's bid to join the World Trade Organization (WTO). After a 16-year hiatus, Iraq has resumed its negotiations to become a member of the WTO, a move that could have substantial economic benefits for the country. Here's a detailed overview of the recent developments:
Resumption of Negotiations
Iraq announced on July 18, 2024, that it has resumed negotiations to join the WTO after a 16-year pause. The Iraqi Trade Minister, Athir Dawood Al-Ghurairi, stated that Iraqi negotiation teams have started preparatory meetings at the WTO headquarters in Geneva. These meetings are crucial for the third working group meeting on Iraq's accession.
Key Challenges and Support
Technical and Legal Preparations
Iraq faces significant challenges in its accession process, primarily due to the need for comprehensive legislative and regulatory reforms. The country must align its trade-related legal and institutional frameworks with GATT/WTO rules. This includes addressing a wide range of questions from WTO member countries regarding Iraq's foreign trade regime and initial offers in goods and services.
International Support
Several international organizations and countries are providing support to Iraq in its accession process: United States: The US has pledged support for a series of projects aimed at helping Iraq join the WTO and protect intellectual property rights. International Trade Centre (ITC): The ITC has organized training programs to provide in-depth insights and practical tools for Iraqi policymakers. The training focused on project management and value chain analysis.
United Nations Conference on Trade and Development (UNCTAD): UNCTAD will undertake an advisory mission to Baghdad from October 6 to 9, 2024, to guide and support Iraqi officials and negotiators in their technical preparatory work.
Benefits and Implications
Economic Benefits
Joining the WTO could bring several economic benefits to Iraq, including increased trade, improved market access, and enhanced investment opportunities. The WTO provides a platform for governments to negotiate trade rules and disputes, which can help Iraq integrate more effectively into the global economy.
Regional Stability
Iraq's accession to the WTO could also contribute to regional stability by fostering economic cooperation and reducing tensions. The process of aligning with international trade standards can help Iraq build stronger economic ties with its neighbors and the global community.
Timeline and Next Steps
Third Working Party Meeting: The third meeting of the Working Party on Iraq's accession to the WTO was held on July 18, 2024. Advisory Mission: UNCTAD will conduct an advisory mission to Baghdad from October 6 to 9, 2024. Future Meetings: Additional meetings will be held to review Iraq’s accession to the WTO, with the next meeting date yet to be specified.
Conclusion
Iraq's renewed efforts to join the WTO mark a significant step towards economic reform and international integration. Despite the challenges, the support from international organizations and countries like the United States is crucial in helping Iraq navigate the complex accession process. As Iraq continues to align its trade policies with international standards, the potential economic and regional benefits are substantial.
They're maintaining control of the general level of pricing, they're controlling inflation, reducing both in the management of monetary mass.
Reducing the monetary mass, what does that do?
If you take money out of the system, there's less of it...You have more value. They're reducing the money supply.
Inflation rate was at 7.5% now it's down about half of that 3.8%. If they reduced inflation by almost 50%, then wouldn't that likely be reasonable to presume that they reduce the monetary mass about the same amount? It sure seems like it.
Shafaq News/ The Iraqi Trade Bank (TBI) announced, on Sunday, the signing of a contract for the "My Account" (Hisabi) project, aimed at domiciling salaries for employees in the Kurdistan Region in partnership with the Regional Government (KRG).
According to TBI's statement, the agreement was established "in line with the Federal Supreme Court's decisions and under directives from Prime Minister Mohammed Shia Al-Sudani, who emphasized TBI's essential role in facilitating salary domiciliation for citizens employed within the Region."
The Hisabi project gives employees the flexibility to choose their preferred bank to open an account, whereas the domiciliation initiative assigns a specific bank per agreements between the ministry, the accounting unit, and the designated bank. Hisabi includes six private banks, while the broader domiciliation project encompasses five state-owned banks and 38 private institutions.
The "My Account" initiative, launched by the Kurdish Government under Prime Minister Masrour Barzani, is modernizing employee financial services in the Region. For a monthly fee of 2,500 IQD, it provides employees access to over 19 banking services, including salary transfers, loans, and more.
Supported by the Central Bank of Iraq (CBI), this program aims to integrate all regional employees by the close of 2024, bolstering transparency and reducing corruption while promoting economic stability. By decreasing reliance on cash transactions, the initiative strives to make payment processes more efficient and secure.
Article: "Qusay Saddam seized $900 million and loaded it in trucks in 2003 - Central Bank Governor" Quote: "After 2003, we inherited an abnormal situation devoid of any real basis for stability.
Our reserves that year were $900 million, and they were seized by Qusay Saddam Hussein and loaded onto a truck. This is documented by dates and numbers.
So we started from scratch. The money supply in circulation was only 4 trillion dinars. Today, the volume in circulation exceeds 100 trillion dinars, and our reserves have exceeded 100 billion dollars."
