The economic adviser to the prime minister, Mazhar Mohammed Saleh, revealed a new vision for investing materials in Iraq.
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Saleh said {Al-Furat News} that: “What economic policy in our country is looking for thinking from outside the fund and providing sustainability in the surplus of the current account of the Iraqi balance of payments by expanding investment in natural resources and manufacturing them and making them prepared for export, which provides returns that help to establish a sovereign wealth fund.”
He added, “The most suitable model is to generate a sovereign wealth fund {directs its investments towards internal opportunities} and according to a different vision; because our country is the ninth globally in terms of diversity of its natural wealth in the subsoil and the first globally in terms of the concentration of wealth in one square kilometer.”
Fri. 27 Dec. 2024 How will XRP be used in foreign currency exchange? …Goldilocks on Telegram
XRP, the native cryptocurrency of the Ripple network, functions as a “bridge currency” in foreign currency exchange, allowing for fast and efficient conversion between different fiat currencies during cross-border transactions by acting as an intermediary currency, thus reducing the need for multiple intermediary banks and lowering transaction costs.
Key points about XRP in foreign exchange:
Bridge currency: Instead of directly converting one fiat currency to another, users can convert to XRP first, which facilitates faster and cheaper transfers.
Real-time settlement: The Ripple network allows for near-instant settlement of transactions, making it ideal for time-sensitive international payments.
Low transaction fees: Compared to traditional bank wire transfers, XRP transactions have significantly lower fees.
Liquidity: Due to its widespread adoption by financial institutions, XRP offers readily available liquidity for currency conversions.
How it works:
Sender converts currency to XRP: When someone wants to send money overseas, they first convert their local currency to XRP in their digital wallet.
Transferring XRP: This XRP is then sent to the recipient’s wallet address on the Ripple network.
Recipient converts back to local currency: Upon receiving the XRP, the recipient can convert it back to their local currency.
Essentially, users can convert their source currency to XRP, send it across borders, and then convert it back to the destination currency upon receipt.
Is it becoming clearer now that two RVs are taking place? One in crypto currency, and one in fiat currency.
Investment Authority: A five-year plan to attract foreign investments
Economy News – Baghdad
The National Investment Authority announced on Saturday a five-year plan to attract foreign investments, while stating that the amendment of the Investment Law ensures that the problems and obstacles of the investment process are addressed.
The Authority’s spokeswoman Hanan Jassim said, in a statement reported by the official news agency, and seen by “Economy News”, that “the Authority has developed a five-year plan to attract foreign investments by increasing the exemptions, facilities and benefits stipulated in the legislation regulating investment, such as joining international agreements that provide protection for the foreign investor by allowing him to resort to international arbitration centers as an intermediary for the settlement of disputes arising from the application of investment contracts, and proceeding with the amendment of the Investment Law No. (13) of 2006, as amended by the regulations issued by the law, which resulted in the second amendment to Investment Law No. 2 of 2009, which regulated the investment process and the powers of investment authorities.”
She added that “the Authority sought to develop regulatory investment controls to ensure the equality of the foreign investor with the local investor, and to activate the single window system and investor services in a way that facilitates the work of investment companies and gives them the necessary flow in obtaining sectoral approvals for investment projects in accordance with the time periods stipulated in the law.”
Regarding the third amendment to the Investment Law No. (13) of 2006, as amended, Jassim explained that “this amendment would ensure the treatment of some of the problems and obstacles that stand in the way of the investment process by increasing the powers of investment authorities in the governorates in accordance with the Constitution, in addition to increasing the advantages and guarantees granted to investors and facilitating the subject of concluding investment contracts between owners and investors.”
Regarding investment in the tourism sector, Jassim pointed out that “Baghdad and a number of governorates are witnessing a remarkable growth in the number and type of hotels completed due to the increase in tourist traffic and delegations, but the volume of investment in this sector is still average and does not meet the ambition decreed for it,” noting that “the authority is continuing to cooperate with the authorities concerned with the establishment of major tourism investment cities in tourist areas such as (the city of Babylon, Ur, Nasiriyah, and the city of Mosul), in addition to encouraging religious tourism in the governorates of Najaf Al-Ashraf, the holy Karbala and the city of Samarra.”
Regarding the most important sectors targeted for investment in Iraq, she pointed out that “a number of sectors had the best luck in the number of investment licenses granted, including (transport, oil industry, electricity, health, education, housing, telecommunications, agriculture, youth and sports) that would contribute to the implementation of the objectives of the government program and the national development plan.”
Regarding the implementation of the Authority’s axes in the government program, she indicated that “the Authority is working to open all ministries, sectoral entities and governorates to provide land suitable for investment; for the purpose of announcing it as real investment opportunities, in addition to starting to open investment bodies in the governorates based on the approval of the Council of Ministers on the importance of determining the economic and administrative identity of each governorate in a way that is consistent with its population, needs and elements and helps to attract capital and international companies.”
-- He's quoting Dr Shabibi, the original financial architect of Iraq's financial reforms. Pay attention. This isn't "pie in the sky" fluff. It's based on logic & reasoning ~
💢 Ariel on X: 🇮🇶The news is just coming out at rapid rates. Speaking of rates. I need to reiterate something. If $3.22 in 1980 was equivalent to $12.34, that’s a 283% increase due to inflation 12 years ago when Dr. Shabibi first brought this up.
If the exchange rate reflects the cumulative inflation from 1980 to now, Iraq cannot simply restore their currency to pre-2003 levels without adjusting for inflation over those decades.
The baseline value of the dinar must reflect the erosion of the dollar’s purchasing power over time, which suggest that a direct reinstatement at older rates would undervalue Iraq’s economic position.
If $3.22 in 1980 is now $12.34, applying a similar inflation multiplier (around 3.8x) to the pre-2003 exchange rate of 1 IQD = $3.22 would place the new rate between $12 and $16 per IQD.
However, geopolitical factors, resource control (oil), and economic growth could justify rates exceeding even $16 per IQD to reflect Iraq’s current reserves and output.
Do you know what that means if you just have only 100,000 IQD? That is atleast 1.6 million. People this is just basic economics. Not throwing some dream rates out there for a dopamine fix. Just something to think about.
Announcement from Central Bank of Iraq – Dec 26 2024 Delegation from US department of treasury visited the central bank of Iraq, the delegation expressed their gratitude and appreciation for the procedures taken by the CBI during last year in the operations of combating the financing of terrorism and money laundering.
The delegation “”praised CBI’s electronic programs that was used for the first time and showed their astonishment for the speed and competency in using those programs also their admiration with the criteria placed by the bank with the help of international audit office (KPMG) which related to organizing Dollar selling operations and its monitor during the compliance of all banks to rules of combating the financing of terrorism and money laundering”” No. 39 for the year 2015.
Also the delegation listened to detailed explanation on the electronic system which applied by the CBI to monitor sold Dollar movement, and discussed CBI’s vast training program which will start soon and aims to train and qualify CBI’s employees working in monitoring and supervising field.