DINAR GURUS UPDATES, 28 DEC

 DINAR GURUS UPDATES

Summary

In the recent Dinar Guru updates, key discussions revolve around the potential changes in the Iraqi dinar’s valuation and the implications of the Central Bank of Iraq’s (CBI) policies.

 The updates highlight an official announcement about the cessation of a currency conversion platform by the end of the year, which has raised questions about the future exchange rates. Mark Z, a prominent figure in this discourse, emphasizes that when the revaluation (RV) occurs, fluctuations in rates will be minimal, suggesting a narrow window for currency exchange. This cautionary note contrasts with the more optimistic views of some investors who believe they can capitalize on rate increases.

Frank 26 contributes to the conversation by indicating that the presence of lower notes in circulation is a preparatory step towards a potential RV. 

He suggests that the discussions surrounding a new exchange rate are gaining traction, particularly as the cessation of currency auctions approaches. 

The sentiments expressed by various commentators convey a mix of cautious optimism and skepticism regarding the prospects of the Iraqi economy. 

Ceroni emphasizes that any increase in currency value must be tied to Iraq’s economic growth and diversification efforts, particularly beyond oil dependency. Overall, while there is some hope for the future of the Iraqi dinar, the pathway to significant valuation improvements appears to be gradual and contingent upon broader economic reforms.

Highlights

• 📉 Currency Conversion Platform Ending: The CBI has officially announced that the currency conversion platform will cease operations at the end of the year, raising concerns about future exchange rates.
• 💸 Minimal Rate Fluctuations: Mark Z states that upon RV, rates are unlikely to fluctuate significantly, cautioning against holding onto currency for potential increases.
• 📈 Optimistic Contacts: Mark Z reports that his Iraqi contacts are optimistic about imminent changes, suggesting readiness for potential RV developments.
• 📊 Iraq Stock Exchange Growth: The Iraq Stock Exchange has been recognized for achieving the highest trading volume growth in the Arab world, indicating positive trends in the financial market.
• 🏦 New Exchange Rate Discussions: Frank 26 mentions ongoing discussions about adjusting the exchange rate, which are gaining attention in Parliament.
• 🏗️ Economic Diversification Efforts: Ceroni stresses that the value of the currency is inherently linked to Iraq’s economic growth, particularly through diversification away from oil.
• ⌛ Limited Exchange Window: There is a warning that individuals must act quickly in exchanging currency as there may be a limited time frame before certain bills are no longer accepted.

Key Insights

• 📉 Implications of Stopping the Conversion Platform: The announcement regarding the cessation of the currency conversion platform by the CBI raises significant questions about liquidity and accessibility for currency exchange. The end of this service could lead to increased pressure on the market and may limit the options available to both investors and everyday citizens looking to exchange their dinar. This development could create volatility in the market as traders and investors scramble to adjust to the new reality.

• 💱 Cautious Approach to Currency Holding: Mark Z’s assertion that rates may not fluctuate more than 1 to 2% upon RV serves as a critical reminder for investors. The idea that holding onto currency in hopes of riding a float may result in missed opportunities emphasizes the need for strategic planning and timely action in currency exchange. Investors should be wary of falling into the trap of speculation without a solid understanding of the market dynamics at play.

• 📈 Positive Market Indicators: The Iraq Stock Exchange’s remarkable growth of 131.24% in November indicates a budding financial market that could provide a foundation for future economic stability. Such growth in trading volume suggests increased investor confidence and may reflect broader economic recovery efforts underway in Iraq. This positive trend could be a precursor to more favorable conditions for the dinar, contingent upon sustained growth and reform.

• 🌍 Economic Growth as a Currency Driver: Ceroni’s perspective that a currency’s value is intrinsically linked to the economic success of a country highlights the importance of solid economic fundamentals. The focus on rebuilding Iraq and diversifying its economy away from oil dependency signifies a commitment to long-term growth and stability. As the government continues to implement necessary reforms, the potential for a more robust currency valuation may gradually materialize.

• ⏰ Urgency in Currency Exchange Decisions: The warning about a limited window for exchanging currency underscores the importance of acting swiftly. Investors and holders of the dinar must stay informed and prepared to exchange their currency before it potentially loses acceptance. This urgency could drive market activity as individuals scramble to take advantage of the situation before it changes.

• 🏛️ Parliament’s Role in Economic Adjustments: The discussions in Parliament about a new exchange rate reflect the complexities involved in monetary policy and economic management. The government’s responsiveness to market conditions and its willingness to adjust policies will be critical in navigating the upcoming changes. The involvement of legislative bodies in economic discussions is essential for establishing a stable financial environment.

• 💡 Gradual Progress in Currency Value: The insights presented suggest that while there is potential for the dinar to appreciate in value, this will likely occur gradually rather than through a sudden RV. A focus on economic reforms, diversification, and sustained growth is vital for fostering an environment where the dinar can gain strength. Investors should remain patient and vigilant as the situation develops, understanding that meaningful changes may take time to materialize.

In conclusion, the updates from Dinar Guru reflect a complex interplay of optimism and caution surrounding the Iraqi dinar’s future. The landscape is influenced by forthcoming monetary policy decisions, the performance of the Iraqi economy, and broader market trends. Stakeholders must remain informed and prepared to act as the situation evolves.

FIREFLY:ON TV ARE TALKING ABOUT THE ADJUSTMENT NEEDED TO HAVE A NEW EXCHANGE RATE!‪@DINARREVALUATION‬

 

Al-Sudani: We respect the will of the Syrians and look forward to a comprehensive political process, 28 DEC

 Al-Sudani: We respect the will of the Syrians and look forward to a comprehensive political process

Baghdad / NINA /- Prime Minister, Mohammed Shia al-Sudani stressed: "Iraq respects the will of the Syrians and looks forward to a comprehensive political process, and will not allow the entry of armed groups and weapons into Syria." 

Al-Sudani said in statements to Al-Arabiya Al-Hadath channel: "We informed the administration in Syria of our vision regarding the current situation, and we will not interfere in Syria's affairs and will not be part of tampering with its security." 

He added: "We are keen to coordinate with Syria to control the borders, and any disruption in Syria's prisons will push us to confront terrorism," noting: "The conflict between Turkey and the SDF poses a real danger." 

The Prime Minister continued: "The Assad regime did not ask Iraq to intervene militarily, and Maher al-Assad did not enter Iraq after the fall of the regime." / End

TIDBIT FROM CLARE, 28 DEC

 Clare

   Article: “Iraqi dinar falls a week before dollar selling platform closes"

 Quote:  "For days now, the Iraqi markets have witnessed a noticeable decline in the value of the Iraqi dinar against the US dollar...expected the rise to be temporary for a period of time, after getting used to stopping the platform and adopting the normal thing.. .

The Central Bank of

Iraq has expanded the basket of foreign currencies that can be dealt with and ended reliance on the dollar only, and this diversity will reduce the dollar exchange rate in the parallel market and raise the value of the Iraqi dinar in the future."

REINALDO JC: CBI can We international investors along with the Iraqi citizens celebrate with you!

 

Prime Minister's Advisor: Government Program Seeks To Raise Non-Oil Revenues To 20%, 28 DEC

 Prime Minister's Advisor: Government Program Seeks To Raise Non-Oil Revenues To 20%

Advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed today, Saturday, that non-oil revenues have witnessed a significant change in their contribution to budget resources, while he indicated that the government program seeks to raise them to 20%.

Saleh told the Iraqi News Agency (INA): "There are two tracks in the increase in non-oil revenues, which witnessed a significant change in their contribution to the federal general budget resources, as indicated by Prime Minister Mohammed Shia al-Sudani," indicating that "the first track is the increase in the growth rate of non-oil GDP to touch 6% annually, 

which is a leap in the development of productive activities for non-oil economic sectors, headed by the transportation sector, digital communications technology, housing, construction, infrastructure, agriculture and the clear industrial transformation." 

He added that "the other track is the development in the general budget resources other than oil resources as a result of the high discipline in tax and customs collection after introducing digital operations, automation and expanding the contact with neglected tax vessels," noting that "the progress achieved is consistent with the government program to seek to raise the share of non-oil revenues over time and within the economic reform packages by making it 20% instead of less than 10%." 

Saleh explained that “this issue is related to the growth of non-oil GDP on the one hand and maximizing budget resources financially from traditional revenue sources, whether direct and indirect taxes and various related government revenues, which creates an integrated relationship between financial sustainability and economic sustainability over time, which is a supreme goal of the government program.” 
Prime Minister Mohammed Shia al-Sudani had confirmed in a special interview on Al-Iraqiya News Channel, followed by the Iraqi News Agency (INA), that “non-oil revenues reached 14 percent after they were 7 percent,” indicating that “unemployment decreased from 16.5 to 14.4, and the poverty rate decreased from 23 percent to 17 percent.”

MILITIAMAN CC HIGHLIGHTS NOTES, 28 DEC

 MILITIAMAN CC HIGHLIGHTS NOTES

Summary

In a recent video, the host discusses significant developments in Iraq’s economy, particularly focusing on the establishment of a sovereign wealth fund, the stabilization of the national currency, and the growth of the Iraqi Stock Exchange (ISX). The video highlights Iraq’s progress in overcoming foreign debt, diversifying its revenue sources, and enhancing transparency in real estate transactions. The host emphasizes the importance of these initiatives in attracting foreign investment, increasing economic stability, and fostering growth in various sectors such as energy and tourism. Additionally, the discussion touches on the activation of a verification system for foreign agencies, the ongoing efforts to address the black market for currency exchange, and the government’s collaboration with the Kurdistan region regarding oil exports. The video concludes with optimism about Iraq’s economic future, urging viewers to subscribe and stay engaged with ongoing developments.

Highlights

• 🚀 Sovereign Wealth Fund Initiative: Iraq is taking steps to establish a sovereign wealth fund, aimed at diversifying its investments and stabilizing the national budget.

• 🌍 Improving Foreign Debt Situation: The country has successfully extinguished about $100 billion of its pre-1990 foreign debts, paving the way for future economic growth .

• 💹 Iraqi Stock Exchange Growth: The ISX has experienced a remarkable trading volume increase of 131% in November, leading Arab financial markets in growth rates.

• 🔗 Transparency in Real Estate: A new electronic verification system is being implemented to enhance transparency in real estate transactions and reduce risks of forgery.

• 🌱 Non-Oil Revenue Expansion: Iraq is making strides in leveraging non-oil revenues, particularly through energy self-sufficiency and tourism, which are expected to substantially boost economic growth.

• 💵 Addressing Black Market Issues: The government acknowledges the impact of the black market on currency exchange rates and is taking measures to stabilize the situation.

• 🛢️ Oil Export Agreements: An initial agreement between Baghdad and the Kurdistan region has been reached to resume oil exports, which is crucial for the national economy.

Key Insights

• 📈 Establishment of the Sovereign Wealth Fund: Iraq’s move to create a sovereign wealth fund reflects a broader trend among resource-rich nations to utilize surplus revenues for long-term economic stability. By investing in diversified portfolios, the government aims to secure a more sustainable financial future, similar to successful models in Norway and the Gulf states. The introduction of blockchain technology may enhance transparency and efficiency in fund management, making it more attractive to investors.

• 🌐 Foreign Debt Extinguishment: The eradication of approximately $100 billion in foreign debts not only alleviates financial burdens but also signals to potential investors that Iraq is committed to fiscal responsibility. This step is crucial for attracting foreign direct investment (FDI) as it demonstrates economic stability and a shift toward a more business-friendly environment, which is essential for recovery and growth.

• 📊 Iraqi Stock Exchange Performance: The ISX’s 131% increase in trading volume shows increased investor confidence and interest in the Iraqi market. This surge is indicative of a robust financial environment, potentially leading to more IPOs and investment opportunities. The government’s ongoing efforts to improve market infrastructure and regulatory frameworks will be pivotal in retaining this momentum and attracting international investors.

• 🔍 Real Estate Transparency Initiatives: The activation of a verification system for foreign agencies marks a significant step toward enhancing transparency in real estate transactions. This system reduces the risk of fraud, thereby boosting investor confidence. As foreign investors are often wary of corruption and lack of transparency, these measures are crucial for fostering a secure investment climate in Iraq.

• 💡 Diversification Beyond Oil: Iraq’s focus on non-oil revenues, especially in sectors like tourism and energy, is a strategic move to build a more resilient economy. As the country works to become self-sufficient in energy production, the reduction of fuel imports will free up capital for other investments. This diversification is essential for reducing dependency on oil revenues, particularly in a volatile global market.

• ⚖️ Government Measures Against Black Market Activity: The government’s acknowledgment of the black market’s influence on currency exchange rates and the subsequent measures to combat it indicate a proactive approach to economic stabilization. By reinforcing regulations and increasing transparency in currency transactions, Iraq is likely to create a more stable economic environment, which is crucial for long-term growth.

• 🤝 Oil Export Agreements with Kurdistan: The agreement to resume oil exports between Baghdad and the Kurdistan region is a significant development that underscores the importance of collaboration in Iraq’s economic recovery. This partnership not only facilitates oil production but also serves as a step toward resolving long-standing disputes over revenue sharing, which can enhance overall national stability and economic growth.

In conclusion, the video encapsulates a transformative period in Iraq’s economic landscape, characterized by strategic initiatives aimed at fostering growth, stability, and investor confidence. The host’s insights reflect a cautious optimism about the future, emphasizing the importance of continued reforms and transparency in attracting foreign investment and promoting sustainable economic development. Viewers are encouraged to stay informed and engaged as these developments unfold, highlighting the potential for Iraq to emerge as a significant player in the regional and global economy..