Wednesday, November 6, 2024
2025 Strong National Economy And Sound Banks, 6 nov
2025 Strong National Economy And Sound Banks
Samir Al-Nusairi In an important presentation before the MERI Conference on Economic, Financial and Banking Reform, the Governor of the Central Bank, Mr. Ali Mohsen Al-Alaq, explained the indicators of the recovery of our national economy and the major transformations in the structure of government and private banks achieved in 2023 and 2024 and expected in 2025.
These are standard indicators that are relied upon to evaluate the strength of the economy and the soundness of the banking sector.
The most prominent of these indicators are the sufficiency of foreign cash reserves, the local currency issued, the inflation rate and the external debt, while emphasizing that the objectives of the monetary policy of the Central Bank stipulated in its applicable law are to achieve economic growth and stability,
and that one of its main objectives is to achieve stability in the financial and monetary system, reduce inflation rates and stabilize the prices of goods and services in extremely complex economic, security and political conditions that Iraq suffered from in 2023 and 2024 and that the world is currently going through, especially the countries of the geographical region, which our country is negatively and positively affected by.
These conditions have been suffered by our economy for decades, and the reason is the rentier economy and the dependence of 95% of the general budget revenues on oil, which constitutes approximately 60% of the gross domestic product.
The government is making clear efforts to revolutionize the active economic sectors, namely agriculture, industry, tourism, customs and tax services fees, and to increase their share in the general budget revenues to 20%.
The low contribution of these sectors to the gross domestic product has led to the absence of local production that covers the consumption needs of citizens for food and other basic materials.
Therefore, there was almost complete dependence on imports for the private commercial sector from different sources. Successive governments were unable to control internal trade and regulate foreign trade, and the weak control over illegal trade and unofficial border crossings, which led to the impact on the monetary and commercial market.
Therefore, this indicator was the most prominent challenge facing monetary policy and directly affected the stability of the exchange rate, which led the Central Bank to take many measures in cooperation with the government to regulate foreign trade, control foreign transfers, regularity in the global financial and banking system, compliance with international standards, digital transformation in the banking sector, and work on preparing and launching its new strategy for banking reform
and classification in all its basic links at the level of internal and external banking transactions, the most prominent of which is securing the US dollar for major and registered traders and for every trader, regardless of his classification, at the official price exclusively through the electronic platform.
This was achieved through analyzing the indicators of the annual inflation rate, which amounted to 3.8% after it was 4.4%, and by comparing it with the annual inflation rates of regional and neighboring countries. Inflation rates in most of these countries reached very high rates, reaching 80.2% in Turkey, 117.4% in Sudan, 40.0% in Iran, and in the Maghreb countries with relative economic stability in Tunisia 9.3%, Algeria 9.0%, Morocco 5.0%, and in Egypt 37.4%, and in the Gulf countries with stable and oil-rich economies, they ranged between 2.4% and 4.8%.
This confirms, without a doubt, that the strategy of the Central Bank and its procedures during the years 2023 and 2024 achieved one of the basic objectives of monetary policy, which is to reduce the inflation rate and maintain the general level of prices of goods and services.
It is currently working to achieve other objectives, which are the stability of the exchange rate and maintaining a foreign reserve that covers the local currency in circulation and imports, which exceeded $100 billion, with a sufficiency of 140%, which covers the local currency in circulation.
Therefore, the economic results and outputs confirm that the policies and procedures undertaken by the Central Bank in cooperation with the government have achieved an important objective of monetary policy, to achieve stability in the monetary system, which is an important step in achieving the other objectives of monetary policy.
It must be noted that one of the most prominent indicators of the strength and recovery of our economy is what the International Monetary Fund recently predicted, that the expected economic growth rate in 2025 will be 5.3%, while it contracted by 2.2% in 2022.
The expected rate is higher than the growth rates in Morocco, Kuwait, Bahrain, Oman, Algeria, Jordan and Qatar. It is an indicator of the strength of our economy and is an inevitable result of the economic and financial reform programs implemented by the government and the Central Bank since 2023. https://economy-news.net/content.php?id=49540
Coffee with MarkZ and Andy Schectman. 11/06/2024
😊PILLARS OF FINANCIAL REFORMBY MNT GOAT, 6 NOV
😊PILLARS OF FINANCIAL REFORM
WOW! WOW! WOW! I know, I know you are also a bit sick of hearing about these three major reforms groups from the White Paper. But haven’t we also seen so much progress on these reforms too? I have been showing all the articles on these Insurance but especially the Banking and Stock Market reforms. I have been emphasizing them whenever we see them. Remember? They are still ongoing and probably will be even after the reinstatement is done.
- Consolidation of banks, mandating only “official” CBI rates, ending corruption
- Assignment of banks to foreign banks to replace the currency auctions
- Reforms of the Iraqi stock market. Implementing a new investor interface to trade
In an article today titled “FOCUS ON THE BANKING SECTOR’, and I quote from it “Yasser Al-Mutawali notes these days a growing interest in the banking sector in general, both governmental and private. What does this trend mean? This comes amidst a noticeable shift in attention towards the banking sector, through the government allocating significant time in light of its great responsibilities, which means its awareness that all economic activities, including the implementation of strategic projects and means of encouraging investment, require a solid banking sector to implement its economic programs.”
Now you heard it from Yasser and so isn’t this what I have been telling you. Now that many of these banking reforms are working the government shifts its attention and focus more to the 2024 and 2025 budgets to the “implementation of strategic projects and means of encouraging investment”. Basically, now Iraq’s attention moves away from the banking and stock market sectors, the reforms and now to goes to the economy. All I can say is “I told you so” lol..lol..lol..!😊
WOW! WOW! WOW! Okay, so today in a very recent from a Nov 3rd article titled “IMPORTS AND DEPENDENCE ON OIL ARE OBSTACLES TO IRAQ’S ACCESSION TO THE WORLD TRADE ORGANIZATION” we read about “the financial advisor to the Prime Minister, Dr. Mazhar Mohammed Salih, said: The Iraqi economy lacks regulatory and supervisory regulations in the scope of trade relations and international requirements according to internationally approved standards”. Is this the hold up then?
Oh. But wait a second, hold your horses…. in an article from my Oct 10th Newsletter titled “THE GOVERNMENT COMPLETES THE FILE TO JOIN WTO”, in it we read that “Iraq has become an economic power that should not be underestimated, and has all the qualifications and capabilities to join the World Trade Organization (WTO) after completing all preparations for that”. So, what the hell is this recent article by Salih anyhow? What is Salih trying to tell us? Is he just trying to justify somehow the delay in the WTO full accession announce letting us think there is still much work to be done as the holdup? We are not stupid. We can read. Why is this announcement delayed? Put your thinking caps on for this one…. hint, hint GO RV!
In would like to tell you my “opinion” but if I did and I was wrong many would criticize me and bash me. So, I bring you just the FACTS and so let the FACTS lead us to the future and see how it all plays out between now and the end of the year culminating in early 2025 with the surprise we all pray for. Today is election day and so we begin this journey now that my CBI contact told me is planned to conduct the Project to Delete the Zeros.
https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/Parliamentary consensus to pass controversial laws soon - Urgent, 6 NOV
Parliamentary consensus to pass controversial laws soon - Urgent
Member of the House of Representatives, Muhammad Al-Ziyadi, confirmed today, Tuesday (November 5, 2024), that the politically disputed laws will soon be passed during the next stage.
Al-Ziyadi said in an interview with Baghdad Today, "There is a parliamentary consensus on passing the controversial laws that were postponed for more than one session due to political differences, especially since those laws were postponed by some parties under the pretext of the absence of a parliament speaker who represents a major component of the Iraqi people."
He said, "The upcoming sessions will witness the passing of these laws, and there is a parliamentary consensus on this. There is also the possibility of extending the legislative session for one month in order to decide on these laws."
Al-Zaydi explained that "these laws require dialogues and consultations to put the final touches on them at the legal and political levels."
Last Thursday, the House of Representatives settled the issue of the position of the Speaker of the House, granting confidence to Mahmoud Al-Mashhadani after two rounds of voting.
According to observers, the Iraqi parliament, in its current session and the last three sessions, is facing accusations of repeated negligence in completing the voting on dozens of important laws that affect the lives of citizens.
Some of these laws relate to important economic issues, the distribution of wealth, and freedom of expression, by postponing these laws to later sessions, for reasons that can be summed up as disagreements between parties on the one hand, and the repeated absences of representatives on the other hand, in addition to the fact that some of these laws do not conform to the interests of different political parties and factions. link
😊DE-DOLLARIZATION BY MNT GOAT, 6 NOV
😊DE-DOLLARIZATION
WOW! WOW! WOW! How much more evidence do I have to show you that we are on now course with the process, the first step of it? The Dr Shabibi plan says they must de-dollarize and so haven’t we seen this effort already?
Unfortunately, they will NEVER get to the point of eliminating the parallel market until they can get more of the major global banks to accept the dinar and convert it to dollars to pay merchants to pay their importers.
We read articles that so far arrangements have been made with only 4 major US banks for this purpose. There will have to be many more, especially Chinese, Eurpean and middle eastern banks. Many importers to Iraq simply still do not want to deal in the dinar.
They still want US dollars. Why is this? I have to tell you I have asked this to my CBI contact and I was told its solely because the dinar is still not recognized on the global currency exchanges it is felt is it is still “play money”. Their words not mine! So, knowing this we can now connect the dots and see just why Dr. Shabibi want the reinstatement first, if even at a lower rate, then the needed banking reforms to come later. His experience told him this was the case. We now see why he felt this way. But the IMF and global powers said yes originally to his plan to RV but behind the scenes covertly sabotaged his plan.
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