Thursday, December 5, 2024
FRANK26: "YES... BECAUSE OF A NEW EXCHANGE RATE NO OTHER REASON", 6 DEC
KTFA
FRANK26: "YES... BECAUSE OF A NEW EXCHANGE RATE NO OTHER REASON".......F26
Monetary stability achieves economic stability and sustainable development
12/1/2024
On the sidelines of the participation of the Governor of the Central Bank in the opening of the activities of the Arab Sustainable
Development Week Forum in its fifth edition, which was held in the Egyptian capital, Cairo, this week, he confirmed that the monetary situation in Iraq is very excellent through the achieved indicators and basic goals on which the monetary policy is based in supporting the government’s orientations to diversify, stimulate and strengthen the national economy, and exit the circle of the rentier economy dependent on oil revenues, which constitutes a major flaw in the structure of the economy.
When there is no diversified production base in the important productive economic sectors, namely agriculture and industry, this cannot be achieved without a strong, solid, and developed banking sector capable of forming the main financing and investment link in financing, qualifying, and developing projects with a productive dimension and increasing the revenues of the general budget by rates exceeding 30% during the years of the National Development Plan 2024-2028.
This requires the necessity of activating the banking sector and stabilizing the pillars of the monetary position, which is in building “foreign reserves, which amounted to more than 100 billion dollars and 153 tons of gold, and constitute an adequacy ratio of 140% to enable the Central Bank to cover and support the defense of the exchange rate, achieve monetary stability, and cover imports, despite the difficult and complex circumstances surrounding the countries of the geographical region.
This enabled the Central Bank to control the general level of prices and inflation, which decreased from 7.5% in January 2023 to 3.8% currently, which is the lowest rate compared to inflation rates in Arab and regional countries, as the Central Bank continues to provide dollars for trade at the official price. It achieved a qualitative shift to regulate foreign trade financing.
New channels have also been opened for transfers using other currencies, such as Turkey, India and China, in addition to European countries. This will make the process of foreign transfers more flexible, streamlined, transparent, controlled and compliant with international standards that enhance confidence and credibility in the operations we carry out.” This means that the Central Bank is moving steadily towards achieving the objectives of monetary policy and achieving economic stability in accordance with Law No. 56 of 2004.
TIDBITS FROM FRANK26, 6 DEC
Frank26
Everything is in place for the monetary reform to be given to the Iraqi citizens. The Prime Minister and Alaq are telling the citizens we are 95% done with the monetary reform.
We also know at the end of this year, December 31st, the auctions come to an end...It was the dollar that was keeping the Iraqi dinar stable.
What are you going to do when you don't have the auction? When you cannot use the dollar anymore in your country?
...You gave the dollar because the dollar had a very good exchange rate. Now the dollar is taken away you need a very good exchange rate. That is exactly what they are doing in my very strong opinion.
They're saying we're at 95%. Where's the 5%? IMO it's an awful lot of different things being requested by Donald Trump by Iraq...
FRANK26: "ALL THAT ABUSE THE USD... ARE YOU LISTENING?", 6 DEC
KTFA
FRANK26: "ALL THAT ABUSE THE USD... ARE YOU LISTENING?".......F26
Trump warns BRICS against replacing dollar with other currencies
11/30/2024
US President-elect Donald Trump threatened to impose 100 percent customs duties on BRICS countries if they undermine the US dollar.
“We are asking for a commitment... that they will not create a BRICS currency, nor support any other currency to replace the great US dollar, or face 100% tariffs,” Trump wrote on his Truth Social social media platform, referring to the group of countries that includes Brazil, Russia, India, China, South Africa and others.
"They need to find another idiot," Trump added. "BRICS cannot replace the dollar in world trade, and any country that tries will have to say goodbye to the US market."
The statement comes after last month's BRICS summit in Kazan, Russia, where member states discussed boosting transactions in non-dollar currencies and strengthening local currencies.
BRICS has expanded since its inception in 2009, and now includes countries such as Iran, Egypt and the UAE. The BRICS alliance represents a minority of the world’s economic output.
At the Kazan summit, Moscow included a joint declaration encouraging “strengthening correspondent banking networks within BRICS countries and enabling payments in local currencies.”
But at the end of the summit, Russian President Vladimir Putin noted that little progress had been made in launching a potential competitor to the Belgium-based international SWIFT system.
DINARLAND UPDATE HIGHLIGHTS, 6 DEC
DINARLAND UPDATE HIGHLIGHTS
Showcasing a Stronger Economy
Iraq's government aims to present a strong and disciplined national image by introducing a new currency and effective exchange rates, which may attract positive attention from foreign countries.
End of Currency Auctions
The video mentions that the current currency auctions, established in 2003 to stabilize the dinar's exchange rate, will be phased out by December 31, prompting the need for a new framework, potentially involving a basket of currencies.
New Currency Exchange Policies
Future currency stability may rely on the dinar being convertible against a basket of foreign currencies, allowing for unrestricted conversion, which is a significant shift from the current auction system.
Banking Policies for Currency Exchange
Details are shared about an American First Credit Union providing opportunities for currency exchange without traditional restrictions, including a flat fee structure for transactions involving foreign currencies.
Celebrations and Government Work Suspension
The Iraqi Council of Ministers plans to suspend official work in celebration of Victory Day, highlighting national pride and achievements.
International Partnerships
The Central Bank of Iraq has signed a memorandum of understanding with the European Union and Germany to enhance financial markets, signaling international cooperation and financial development.
Tax Implications on Currency Transactions
Discussion around tax rates on currency transactions, emphasizing the importance of maintaining receipts for tax purposes, as short-term investments incur around 37% tax and long-term around 20%.
Achievements Under Sudani's Leadership
Prime Minister Sudani's government has been noted for methodical progress and achievements in various sectors over the past two years.
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Walkingstick All these meetings that the CBI had with all these agencies that were helping them with their monetary reform are done. Al...