In support of Mr. Al-Hakim’s proposal.. Advisor to Al-Sudani: Iraq strengthens its sustainable economic partnerships
1/3/2025
The economic advisor to the Prime Minister, Mazhar Muhammad Salih, announced that the current Iraqi government seeks to strengthen sustainable economic partnerships with major countries.
Saleh told {Euphrates News}: "Iraq has left behind the legacy of isolation and regional and international conflicts since 2003, and our country is currently experiencing a very high level of stability with the international economic community and building economic relations that achieve common interests, led by openness to an international strategic investment environment based on the path of development, which is led by central infrastructure in improving transportation, energy and port networks."
He added, "In addition to establishing free industrial and economic zones to attract real foreign direct investment with high added value."
Saleh continued, "Also, continuing the strength of traditional trade tributaries, especially in crude oil trade and traditional trade, will remain important factors in building our country's interests with the world, by dealing with Iraq's international partners, led bymajor friendly countries, namely India, Turkey, China, Korea, the United States, Japan, and sister and friendly countries such as the Emirates, Saudi Arabia, Iran and the rest of the neighboring countries."
The head of the National State Forces Alliance, Mr. Ammar al-Hakim, stressed during his speech at the mass gathering in Najaf on the anniversary of the martyrdom of the Martyr of the Mihrab, Grand Ayatollah Sayyid Muhammad Baqir al-Hakim {may his secret be sanctified} that combating corruption, establishing security, and building a balanced economy are our gateway to building a strong state, while calling for striving through Iraq to establish long-term economic ties and common interests that our peoples and the peoples of our Arab and Islamic region enjoy.
Mr. Ammar al-Hakim also stressed the importance of focusing on reconstruction projects, economic development, and increasing investments in the country. Raghad LINK
MZ: Historic Bond news is still mostly MIA. I did get 2 check ins and both have said they expect their funding on the 7th. Most have previously said between the 2nd and the 9th. I think we are under way and watching the roll out.
Member: Trumps presidential certification is on Jan 6th…Maybe they are waiting on that???
Member: Mark…were these bond contacts who are receiving funds on the 7th the same bond guys who went to Zurich a few days ago? Wondering if they did their paperwork and their money is just liquid on 7th.
Member: Rumor: The new recalculated dinar rate was given to the US Treasury. The United States has been paid in full by Iraq. The US has lifted all remaining sanctions on Iraqi banks
MZ: That is certainly the rumor floating out there. I am trying to pin it down 100% so we sll feel good about it.
Member: Frank 26 saying Iraq is in DC and paid the United States of America
Member: I read that Iraq was in Washington yesterday or Wednesday, and met with Treasury and Trump.! Made sure we were paid, for our part ,you know the 35 Billion !!!
MZ: That’s the rumor….pinning it down has been tough.
Mr. Al-Hakim: We will not allow anyone who wants to bring back the days of conflict, and Iraq today is stronger with its forces and its mobilization.
1/3/2025
The head of the National State Forces Alliance, Mr. Ammar Al Hakim, confirmed his rejection of attempts to return Iraq to “disagreement and conflict.”
In his speech at the mass gathering in Najaf on the anniversary of the martyrdom of the Martyr of the Mihrab, Grand Ayatollah Sayyid Muhammad Baqir al-Hakim {may his secret be sanctified}, Mr. Al-Hakim said: “There will be no compromise on the security and stability of our country, and we will not allow anyone who wants to return the scene to the days of disagreement and conflict and to play on the feelings and unity of the Iraqis.
Iraq today is stronger with its men, government, leaders, army, federal police, crowd, Peshmerga, and all branches of our armed forces, which are rising with the arms of its zealous sons.” LINK
😊By the way there is yet another new article talking about the establishment of these funds for Iraq it is titled “SUDANESE ADVISOR REVEALS GOVERNMENT’S PHILOSOPHY FOR FUTURE OF NATIONAL ECONOMY”.
😊 However there is one article in the news this period that really intrigued me and gets my goat. It is titled “STARTING TO IMPLEMENT ASYCUDA GLOBAL SYSTEM FOR AUTOMATING CUSTOMS OPERATIONS”.
Really? The Prime Minister’s Media Office announced on Tuesday the start of using modern automation systems to facilitate the entry of goods into border crossings and monitor them centrally, and the agreement to implement the global ASYCUDA system to automate customs operations. Okay so are they telling us this is already implemented and now underway or to expect it in the very near future, thus the purpose of the articl
e?
Oh… but let me add that I have talked about this customs system before many years ago, remember? What did I say then?
I told you that I learned that this new technology has a link into the foreign currency markets and must go to FOREX to obtain the most current rates of the currencies in order to conduct the proper fees and convert the fees appropriately in the needed currency value amounts. In other words, it will need the IQD on FOREX to properly conduct the customs collection service through ASYCUDA.
In today’s news from this article, it is telling us that and I quote “the meeting witnessed the announcement of the
completion of the necessary infrastructure to link all border ports with the latest technologies,
and the start of the use of modern automation systems to facilitate the entry of goods into border ports and monitor them centrally. It was also agreed to implement the global ASYCUDA system for automating customs operations, enhanced with electronic payment services starting from January 1, 2025.”
Oh… WOW! So they are telling us they have not yet previously started the system.
But in the past they told us they did? Why haven’t they then? But how could they without the IQD on FOREX.
But in this article they are telling us the system will start on Jan 1st 2025. How could this be without the IQD on FOREX for a reference rate? Get it?
Do you know what I think is happening? Yes, do you really want to know my take on this? Ok, so its my opinion but an educated opinion…. Lol…lol… 😊
I believe that this ASYCUDA system will NOT yet be online since the IQD is not yet on FOREX. It was postponed for years just as many other projects are not on time in Iraq. Yes, no SPEEDY GONZALES for Iraq. This will be of course not good and cost Iraq major revenue streams.
So, this to me is yet more evidence and pressure that they fully intended to go ahead with the ASYCUDA system way before now, and now wanted to go in Jan 2025 too along with the reinstatement.
But we all know this too will be postponed again since the IQD is not yet on FOREX.
Get it? So again I keep asking what element is in the way and not allowing them to go forward to the end?
This article also suggests to us that probably in December, in fact they did intend to conduct the Project to Delete the Zeros, as my CBI contact told us was planned, but it didn’t happen. Why didn’t it happen?
I do not have all the answers and I can not again tell you. I do not want to speculate. But my analytical thinking mind tells me something was held up again. It sounds too fishy to have multiple events being targeted around the same period (beginning of Jan 2025), and all of them relying on the IQD getting to FOREX. Do you see it too?
Come ‘on folks this is exciting not a disappointment! 😊 Right now I have more questions than answers. However, you know me and I will dig for answers and to get to the bottom of the TRUTH as to what is actually going on in Iraq and what is holding up the Project to Delete the Zeros now.
WITH THE BEGINNING OF THE NEW YEAR, THE US DOLLAR ENTERS A NEW PHASE IN IRAQ
(Mnt Goat:The CBI must kill the parallel market to get its rate equal to the “official” CBI rate.)
US dollar dealers in Iraq are awaiting the arrival of the new year 2025, which is now approaching and will end the work of the electronic platform for monitoring the movement and transfer of currencies outside the country, according to what the Central Bank of Iraq announced.
Financial and banking experts consider the suspension of the dollar selling platform by the Central Bank of Iraq a “bold step” as it has multiple economic and regulatory dimensions, but on the other hand, the suspension of the platform may open the door to new challenges.
Experts confirm that the success of this decision depends largely on how it is implemented. If the Central Bank is able to provide strong regulatory alternatives and ensure comprehensive awareness for traders and importers, it may be able to achieve the desired goals of this step.
However, if the process is not managed carefully, it could have negative effects on the stability of the financial market and the overall economy of Iraq, according to experts.
In detail, Kazem Al-Shammari, a member of the Economic Committee in the Iraqi Council of Representatives, says, “The job of the Central Bank is to maintain the cash reserve and the unified exchange rate, so it is not its job to sell the dollar, but rather it is the job of the banks, but because of the economic situation and legal chaos, the Central Bank has taken control of selling the currency.”
Al-Shammari confirmed to Shafaq News Agency, “The committee is in favor of banks selling the currency, but it must be subject to strict restrictions and monitoring, as there are many uses for the currency, and the US administration has imposed sanctions on many banks because of this matter.”
Al-Shammari believes that “there are Arab or foreign banks that receive more than 40 to 50% of currency sales, and this causes great harm to the Iraqi economy. Therefore, we must focus on Iraqi banks that are not sanctioned and are able to deliver the dollar to those who deserve it, including traders and industrialists.”
He pointed out that “the House of Representatives is currently in legislative recess, and after the resumption of the House’s work, the Governor of the Central Bank will be hosted in this regard, and work will be done to impose strict control over currency exchange and purchase entities.”
Fear of unexpected obstacles
For his part, the head of the Iraqi Economic Alliance, Adi Al-Alawi, says, “Transfers, whether buying dollars for travel or otherwise, were made through a platform linked between the Central Bank of Iraq, the US Federal Reserve, another company for auditing accounts and information, and the Iraqi banking authority. When any of these four entities stops working, the entire process stops.”
Al-Alawi explained the platform’s working method to Shafaq News Agency, saying, “The transfer goes through a series of stages starting with submitting invoices to the bank, which in turn submits them to the platform, then to the Central Bank, the auditing company, and then the US Federal Reserve, to decide whether to proceed with it or return it. If it approves it, it goes to an intermediary bank, which sends the amount to the beneficiary.”
He added, “These stages have been shortened and the new process has become much easier, as the bank sends the transfer directly to the intermediary bank without going through the Central Bank of Iraq and the US Federal Reserve, while the auditing company remains. Thus, the bank that raises the transfer is the decision-maker and responsible before the Central Bank of Iraq and before the entire global financial sector.”
He points out, “But the problem is that the Iraqi banks that have correspondents are only five out of 60 to 70 banks, so only five banks will operate in the next phase, which may cause congestion in withdrawals until things are arranged and organized.”
(Mnt Goat: This is the backlog I tried to explain to you weeks ago that could cause inflation to rise. They have to let it run for a while and monitor it closely for these challenges. So far, so good! )
Al-Alawi points out that “the Central Bank’s step is correct and we support it, but the Central Bank does not have real tools and a supervisory authority to rely on, so there is a fear of unexpected obstacles that usually arise during practical application, which requires quick measures and a response to the requirements of reality, which the Central Bank lacks based on previous experiences.”
Pros and Cons
In turn, international economic expert, Nawar Al-Saadi, says, “The suspension of the dollar selling platform by the Central Bank of Iraq is a bold step as it has multiple economic and regulatory dimensions.”
Al-Saadi told Shafaq News Agency, “The main goal of this measure, as stated by the Central Bank, is to enhance transparency in financial transfer operations, and reduce reliance on a platform that was considered a primary tool for monitoring the flow of dollars.”
He added, “For years, the platform has provided an effective means of regulating dollar sales and ensuring that they are directed to authorized purposes, such as imports and supporting the Iraqi economy, while trying to limit money laundering or smuggling of dollars abroad.”
He believes that “this decision is supposed to be part of efforts to improve compliance with international banking standards, by moving to a more direct system in dealings between local banks and foreign correspondent banks, reducing bureaucracy and simplifying financial operations.”
Al-Saadi added, “Also, this decision could help reduce the operational costs associated with maintaining and managing the platform itself, which could be interpreted as a positive economic step towards rationalizing resources.”
But on the other hand, stopping the platform “may open the door to new challenges, such as the possibility of increasing reliance on the black market to obtain dollars, especially if there are no clear mechanisms to ensure that dollars reach traders and importers,” says Al-Saadi.
(Mnt Goat: But where will the black market get their dollars now since the currency sales is not all electronic to correspondent banks outside Iraq.)
“This could lead to a rise in the exchange rate of the dollar against the Iraqi dinar, which would put pressure on local prices and raise inflation rates. In addition, small traders may find themselves in a difficult situation, as their reliance on the platform provided them with easy access to foreign currency,” he added.
Another challenge that may arise, according to Al-Saadi, is “the issue of the lack of strict oversight that the platform used to provide, as the platform allowed for close monitoring of financial transfers, thus reducing illegal activities such as money laundering or terrorist financing.”
“In the absence of an effective alternative, there may be a risk of these activities increasing, putting Iraq in a sensitive position on the international financial scene,” Al-Saadi said.
The international economic expert confirms that “the success of this decision depends largely on how it is implemented. If the Central Bank can provide strong regulatory alternatives and ensure comprehensive awareness for traders and importers, it may be able to achieve the desired goals of this step.”
“However, if the process is not managed carefully, it could have negative effects on the stability of the financial market and the overall economy of Iraq,” Al-Saadi said.
Potential damage to the economy. The financial and economic researcher, Diaa Al-Mohsen, agrees with what Nawar Al-Saadi said about the potential damages, whether to Iraqi traders or to the Iraqi economy in general, as a result of stopping the platform.
Regarding the most prominent damages, Al-Mohsen explained to Shafak News Agency, “It is likely that the suspension will lead to an increase in demand for the dollar in the parallel market, which will push its price to rise significantly.”
He added, “There is also a negative impact on the economy, which may lead to an increase in the prices of imported goods and services, which in turn leads to an increase in the inflation rate and a reduction in the purchasing power of citizens.”
(Mnt Goat: But this is only the case if the black market continues somehow to obtain dollars and sell them higher than the official CBI rate. I mentioned above the other issue that could arise too.)
He added, “In addition to the decline in commercial activity resulting from traders’ reluctance to import due to high shipping costs, which leads to a shortage of goods in the markets and an increase in their prices.”
“There may also be difficulty in obtaining the dollars needed to import goods, which affects their business,” Al Mohsen added. Al-Mohsen points to the possibility of “an increase in unemployment rates as well, given that any slowdown in business activity results in increased unemployment, especially in sectors that depend on imports, which may generate social unrest such as protests and demonstrations.”
He points out that “the damages may not appear immediately, and may take some time to fully appear, noting that the severity of these damages depends on many factors, such as the duration of the suspension, the economic policies followed, and the general economic situation of the country.”
To avoid damage to the monetary authority, the financial and economic researcher calls for the importance of “taking alternative measures, such as gradually increasing the supply of dollars in the market, facilitating procedures for traders to obtain dollars, and supporting the affected economic sectors.
”
The possible reasons for stopping the platform, according to Al-Mohsen, are “an attempt to control the parallel market, as the Central Bank wants to reduce the difference between the official and market exchange rates by reducing the supply of dollars in the market.”
(Mnt Goat: NO! Not a possible reason, it is the MAIN reason! Here are the other 3 important reasons below. These benefits far outweigh any “possible” negative effects because they are certain not possible. In other words the risk is grossly mitigated in doing this move by the CBI.)
Al-Mohsen adds that it also “represents a step to reduce corruption and tax evasion, and the Central Bank of Iraq is also trying to protect foreign reserves from depletion.”
Platform Termination Statement
According to a statement by the Central Bank on September 4, the electronic platform for foreign transfers began at the beginning of 2023 as a first phase to reorganize financial transfers in a way that ensures proactive oversight of them instead of subsequent oversight by the Federal Reserve auditing daily transfers.
The statement added that this was “an exceptional measure, as the Federal Reserve does not usually do this, and a gradual shift was planned towards building direct relationships between banks in Iraq and foreign correspondent and approved banks, mediated by an international auditing company to conduct a preliminary audit of the transfers before they are executed by correspondent banks.”
He continued: “During the year 2024 and until now, 95% of the transfer process from the electronic platform to the correspondent banks mechanism directly between it and Iraqi banks has been achieved, which means that only about 5% of it remains within the platform, which will be transferred using the same mechanism before the end of this year and according to the plan.”
(Mnt Goat: we were told that this 5% is now only 3% and will be 0% shortly in 2025. So where is the risk? Folks, it all electronic and its all audited constantly.)
The statement of the Central Bank of Iraq indicated that “some expectations about possible effects on the exchange rate and transfer operations are baseless, because the process will not be sudden or in one payment at the end of this year, but rather it was achieved in the past period with effort and careful follow-up, except for the remaining small percentage that will be accomplished in the coming short period.”
The Central Bank of Iraq confirmed that trade with the UAE, Turkey, India and China represents about 70% of Iraq’s foreign trade as imports, which prompted the Central Bank of Iraq to find channels for transfer in euros, Chinese yuan, Indian rupees and UAE dirhams, through approved correspondent banks in those countries.
He added in this regard that 13 Iraqi banks have actually started conducting transfer operations with the prior audit mechanism that has been agreed upon and approved, in addition to transfers in dollars, with the provision of channels for personal transfers for legitimate purposes and external purchases through electronic payment channels and international money transfer companies and cash sales to travelers, and the payment of cash dollars for incoming transfers to the parties and purposes specified in the Central Bank’s published instructions.”
(Mnt Goat: Remember I told you a month ago as per my CBI contact that there were about 10 more banks that were coming onboard as Iraqi banks in conducting transfers with the correspondent banks. Well here they are now.)
The bank noted that it has placed foreign transfer operations and fulfilled dollar requests on sound paths consistent with international practices and standards and the Anti-Money Laundering and Terrorist Financing Law.
The Central Bank’s statement concluded that “providing the aforementioned channels for all purposes at the official dollar price makes this price the true indicator of economic practices, which is proven by the reality of price stability and control of inflation. Any other price traded outside of these channels is an abnormal price that those with unorthodox or illegal practices resort to, who avoid official channels in their dealings, and bear the additional costs alone by purchasing at a higher price than the official price to deceive others about the difference between the official price and the other.”
(Mnt Goat: WOW! This last paragraph says it all. Yes, Iraq has now moved to “normal” ways of doing business with the outside world. This is nothing new only Iraq had stayed on the currency auctions with the CBI supplying the dollars way too long (20 years). They were not supposed to stay on that mechanism that long. This was never Dr Shabibi’s plan but they were forced to do to the newer Obama plan of paying off the war reparations first than moving ahead with the currency reforms, which we have now witnessed aggressive movemens in this direction since the beginning of 2023.)
