Central Bank records 'significant growth' in Iraq's gold reserves, 31 DEC

  Central Bank records 'significant growth' in Iraq's gold reserves

The Central Bank announced, on Sunday, that it recorded a significant growth in the country's gold reserves, while it considered the inflation rates in Iraq to be the lowest in the region during the months of August and September, of the year 2024, which is about to end.

This came in a statement issued by the bank regarding the positive indicators it achieved for the third quarter of 2024 compared to the same quarter in 2022 and 2023, considering that this reflects the success of the monetary policy adopted by the bank during 2024.

The Central Bank of Iraq confirmed that the total deposits in banks operating in Iraq recorded a growth of (4.2%) in the third quarter of 2024, as their value amounted to (127.6) trillion dinars, compared to their value of (122.4) trillion dinars in the third quarter of 2023. In contrast, the cash credit granted by public banks recorded a growth of (11.6%) in the third quarter of 2024, as its value amounted to (72.7) trillion dinars, compared to its value of (65.1) trillion dinars in the third quarter of 2023.

The bank stated that deposits in private banks operating in Iraq recorded a growth of (14%) in the third quarter of 2024, as their value amounted to (18.7) trillion dinars, compared to their value of (16.4) trillion dinars in the third quarter of 2023. In contrast, cash credit granted by private banks achieved a growth of (15.1%) in the third quarter of 2024, as its value amounted to (12.2) trillion dinars, compared to its value of (10.6) trillion dinars in the third quarter of 2023, noting that these rates reflect the increased confidence of economic units in private banks operating in Iraq.

The statement added that private sector deposits in banks operating in Iraq recorded a growth of (3%) in the third quarter of 2024, as their value amounted to (56.1) trillion dinars, compared to their value of (54.4) trillion dinars in the third quarter of 2023, indicating that cash credit granted to the private sector by banks operating in Iraq achieved a growth of (8.6%) in the third quarter of 2024, as its value amounted to (42.8) trillion dinars, compared to its value of (39.4) trillion dinars in the third quarter of 2023, stressing that this increase reflects the increased confidence of the private sector in banks operating in Iraq.

The bank revealed that the narrow money supply in Iraq recorded a growth of (4.1%) in the third quarter of 2024, as its value reached (158.6) trillion dinars, compared to its value of (152.4) trillion dinars in the third quarter of 2023. In contrast, the broad money supply in Iraq recorded a growth of (3.3%) in the third quarter of 2024, as its value reached (179.8) trillion dinars, compared to its value of (173.9) trillion dinars in the third quarter of 2023.

He added that the gold reserves of the Central Bank of Iraq recorded a significant growth of (57%) in the third quarter of 2024, as their value reached (16.8) trillion dinars, compared to their value of (10.7) trillion dinars in the third quarter of 2023.

The Central Bank noted that the annual inflation rates in Iraq are among the lowest annual inflation rates in the countries of the region for the months of August and September of 2024, as the rest of the percentage is acceptable at (3.7%) and (3.1%) respectively, which reflects price stability and the success of monetary policy in Iraq.  link

MILITIAMAN CC HIGHLIGHTS, 31 DEC

MILITIAMAN CC HIGHLIGHTS

Summary

In this video, the host discusses various significant developments in Iraq’s financial landscape, particularly the impending changes in currency issuance and management. 

He emphasizes the importance of understanding the transition from the current dollar auction system to a more regulated electronic platform for currency transactions, expected to be fully implemented by the end of 2024. 

The conversation also touches on Iraq’s dependence on international coalition forces for security, the potential for significant changes in currency value, and the introduction of new currency mechanisms, including the minting of metal coins.

 The host stresses that these developments are not just administrative changes but are indicative of broader economic shifts, including the necessity for Iraq to bolster its financial sovereignty and stability. He concludes with a call for viewers to engage with the content and join the community for further discussions.

Highlights

• 💰 Transition from Dollar Auctions: Iraq plans to permanently end its controversial dollar auction by the end of 2024, transitioning to a new electronic currency management system.
• 🔒 Security Needs: The ongoing presence of coalition forces in Iraq highlights the country’s current security vulnerabilities, necessitating international support.
• 📅 Key Dates: January 2, 2025, is a critical date as it marks the ending of direct currency sales by the Central Bank for external transactions.
• ⚖️ Currency Mechanism Changes: Significant changes to Iraq’s currency mechanisms are anticipated, potentially affecting exchange rates and trade.
• 🪙 Introduction of Metal Coins: For the first time in over 20 years, discussions around minting metal coins signal potential changes in currency valuation.
• 📈 Market Adaptation: The majority of traders have already adapted to the new currency systems, which will help mitigate risks associated with foreign currency manipulation.
• 🔄 Regulatory Compliance: New requirements for currency transactions will necessitate compliance with international financial regulations, reducing the risk of sanctions.

Key Insights

• 📊 End of Dollar Auctions: The planned discontinuation of the dollar auction is a strategic move to stabilize Iraq’s economy. This transition signifies a shift towards greater financial autonomy and a reduced reliance on foreign currency, which has historically exposed the economy to volatility and manipulation. By implementing a new electronic platform, Iraq aims to enhance the transparency and efficiency of currency transactions, which could foster investor confidence and stimulate economic growth.

• 🌍 International Security Dynamics: The mention of coalition forces underscoring Iraq’s security needs reflects the ongoing geopolitical complexities in the region. The host points out that despite Iraq’s advancements, it still requires external military support to maintain stability. This dependency on international allies highlights the challenges Iraq faces in establishing a fully sovereign defense capability, which is crucial for a thriving economy and investor confidence.

• 🔄 Future Currency Mechanisms: The anticipation of a significant change in currency mechanisms suggests that Iraq is preparing for an adjustment in its exchange rate policy. The discussion hints at a potential reevaluation of the Iraqi dinar’s value, which could be pivotal for international trade and investment. The host emphasizes that such changes are not merely speculative but are backed by governmental discussions and planned regulatory adjustments.

• 💼 Impact of Compliance on Trade: The requirement for traders to deposit funds in Iraqi dinars at local banks with established foreign correspondent relationships indicates a move towards stricter regulatory compliance. This change is designed to eliminate the black market and enhance the integrity of financial transactions. The implications of this shift may lead to a more robust and legally compliant trading environment, which could attract foreign investments.

• 💡 Metal Coins and Currency Value: The reintroduction of metal coins after a two-decade absence raises questions about Iraq’s monetary policy and the potential need for a currency revaluation. The host suggests that the need for coins indicates a forthcoming adjustment in currency dynamics. This could imply that the Iraqi dinar may be positioned for a stronger valuation, requiring a broader range of denominations to facilitate everyday transactions.

• ✍️ Regulatory Framework for Currency Management: The new instructional standards for banknote trading and replacement signify a structured approach to currency management in Iraq. The establishment of clear guidelines indicates a proactive measure to prepare for future economic transactions and to ensure that the currency remains stable and functional within the market. This regulatory framework is essential for fostering a reliable economic environment.

• 🔍 Economic Expectations and Preparations: The discussions surrounding the expected influx of currency into Iraqi banks suggest an optimistic outlook for the economy. The host expresses confidence that the new mechanisms will facilitate smoother financial operations, thereby enhancing economic resilience. The anticipation of increased currency circulation implies that Iraq is gearing up for a more robust economic phase, which could lead to long-term stability and growth.

Overall, the video presents a thorough examination of the current and future state of Iraq’s currency management and economic strategies, highlighting the essential interplay of security, regulatory compliance, and market confidence. The outlined changes are positioned not just as administrative updates but as critical components of Iraq’s broader economic vision for the coming years.

JEFF: The CBI would have to post and say, 'hey we're going to be ending the currency auctions #iqd

 

Economic Advisor: Our country is ranked ninth in the world in natural resources, 31 DEC

  Economic Advisor: Our country is ranked ninth in the world in natural resources

The economic advisor to the Prime Minister, Mazhar Mohammed Salih, said, “What the economic policy in our country aspires to is thinking outside the box and providing sustainability in the current account surplus of the Iraqi balance of payments.”

He added, “This comes through investment expansion in natural resources, manufacturing them, and preparing them for export, which provides returns that help establish a sovereign wealth fund. ”

Saleh pointed out in a press statement followed by (Al-Masry - Today, Sunday), that "the most appropriate model is to generate a sovereign wealth fund {directing its investments towards internal opportunities} and according to a different vision; because our country is ninth in the world in terms of the diversity of its natural resources in the earth's interior and first in the world in terms of the concentration of wealth in one square kilometer."  link

TIDBIT FROM JEFF,, 30 DEC

 Jeff 

 Iraq's been saying through the course of this year that they're going to by the end of this year end the use of the dollar ...Iraq is stating they're going to end the currency auctions starting January 2nd.

..If we don't see more than one outlet stating something, it doesn't hold a lot of credibility...

The Central Bank would have to post and say, 'hey we're going to be ending the currency auctions.'  That isn't posted anywhere on the Central Bank's website. 

 So far just one news outlet stating it's going to end and will be done as of January 2nd in print.  Only one.  That make the credibility of that news very questionable especially with the Central Bank not posting it.

JULIAN ASSANGE: Global Currency Reset: Zimbabwe Dollar, Iraqi Dinar, and Vietnamese Dong

 

Sudanese advisor reveals government’s philosophy for future of national economy, 31 DEC

 Sudanese advisor reveals government’s philosophy for future of national economy

 The economic advisor to the Prime Minister, Mazhar Muhammad Salih, revealed the government’s philosophy for the future of the national economy, represented by the idea of ​​establishing a sovereign wealth fund.

Saleh told {Euphrates News} that: “The initiation of the idea of ​​a sovereign wealth fund is essential and is consistent with the renaissance of natural resources and undoubtedly comes in parallel with the development path strategy and its outcomes in generating a leading industrial renaissance in the national economy. This is Iraq’s outline in building the future of its economy for the twenty-first century and in two directions {the export-oriented development model and the other, and the development model directed towards maximizing the input-output tables and replacing imports within the national economy}.

He added, “Therefore, the sovereign wealth fund will adopt a vision that expresses the strength and basis of the interconnections between the outputs of national wealth from natural resources and the inputs of the production function in the national economy, which requires another model in managing sovereign wealth funds directed towards the interior.”
Saleh explained that “the sovereign fund will work to accelerate the diversification of the three basic sectors, which are the manufacturing industry, agriculture and services, in an advanced digital age. This is what the government program aspires to in its philosophy for the future of the national economy, which did not neglect the idea of ​​partnership between state activity and market activity in sustainable development.”