IRAQ UPDATE, 31 DEC

IRAQ UPDATE

Summary

Here are  the recent developments surrounding the Iraqi Dinar and the Vietnamese Dong, highlighting the implications of potential higher exchange rates for both currencies.

Highlights

• 🌍 Iraq’s Natural Resources: Iraq ranks first globally in natural resource density, offering a promising landscape for investment.
• 💵 Dollar Exchange Rates: The closure of U.S. Dollar auctions could lead to spikes in parallel market rates, affecting the value of the Iraqi Dinar.
• 🔍 Positive Outlook: Recent reports indicate that the Iraqi Dinar may have a higher exchange rate than previously anticipated, suggesting economic improvement.
• 📈 Investment Opportunities: Increased currency valuation for the Dinar and Dong could lead to new investment opportunities for international investors.
• 📊 IMF Articles Explained: The video discusses key IMF Articles (8, 12, and 14) that regulate currency exchange and their significance for economic stability.
• 💼 Due Diligence in Investing: Viewers are advised to conduct thorough research and consult financial advisors before making investment decisions.
• ✍️ Engagement with Audience: The narrator encourages viewer interaction by inviting comments and feedback on the potential changes in currency rates.

Key Insights

• 🌐 Economic Health Reflected in Currency Value: A higher value of the Iraqi Dinar not only signifies a stronger economy but also enhances the purchasing power of Iraqi citizens. This positive shift can lead to increased consumer confidence and spending, ultimately fostering economic growth. For international investors, a robust currency indicates a healthier market, making investments in Iraq more appealing .

• 💸 Impact on Investment Strategy: The potential increase in the Dinar and Dong’s exchange rates signifies a pivotal moment for investors holding these currencies. A higher valuation could result in greater returns on investments, encouraging investors to maintain their positions and explore further investment opportunities. This creates a scenario where strategic trading could lead to significant financial gains.

• 📉 Challenges of Currency Valuation: While higher currency valuations can boost exports, they also pose challenges for imports, potentially making them cheaper. This creates a delicate balance that countries like Iraq and Vietnam must navigate to ensure long-term economic stability. If not managed properly, reliance on exports could lead to economic vulnerabilities.

• 🏦 Importance of Central Bank Actions: The visit from the U.S. Treasury delegation to the CBI showcases international recognition of Iraq’s efforts to stabilize its economy and combat issues such as money laundering. This acknowledgment can instill confidence among investors, suggesting that Iraq is taking significant steps towards economic reform.

• 📉 Understanding IMF Regulations: The IMF’s stipulations regarding currency movement under Articles 8, 12, and 14 highlight the importance of flexible exchange rates for economic stability. Countries that can manage their currency valuations in response to economic conditions are better positioned to attract foreign investment and sustain growth.

AJ: "Here we are Jan 2nd 2025 done" @DINARREVALUATION #iraqidinar

 

The Central Bank announces the positive indicators achieved in the third quarter of 2024, 31 DEC

  The Central Bank announces the positive indicators achieved in the third quarter of 2024

The Central Bank of Iraq announced, today, Sunday, the positive indicators achieved in the third quarter of 2024.

A statement by the bank, received by the Iraqi News Agency (INA), stated 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, while 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, while 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."

He added, "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, according to the statement, 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, while 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, "The gold reserves of the Central Bank of Iraq recorded a significant growth of (57%) in the third quarter of 2024, as their value amounted to (16.8) trillion dinars, compared to their value of (10.7) trillion dinars in the third quarter of 2023," stressing 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 rate remained acceptable at (3.7%) and (3.1%) respectively, and this reflects price stability and the success of monetary policy in Iraq."  link

TIDBIT FROM TEXAS SNAKE, 31 DEC

 TEXAS SNAKE

Chat owner Everyone please pay attention to the currency exchange when it opens in the morning, Iraq is going to deal only with commercial banks which could very well be our beginnings to exchanges. 14 10:24 p. m.

MAJEED: “the CBI has canceled It’s 20 years controversial auction!! @DINARREVALUATION #iraqidinar

 

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.