EXCERPTS FROM MARKZ, 5 JAN

 EXCERPTS FROM MARKZ

MZ: What I am hearing on the bond side is they are expecting their payments on the 7th, 8th and 9th. This is from the majority of my bond contacts. We are hopeful this time it will actually occur.

Member: Those poor historic bond folks ….They are victims of “the boy who cried wolf” just like us.

MZ: Seems like a lot of scheduled to start on the 7th after the certifications on the 6th. Maybe it’s a coincidence and maybe it’s not.

Member: Maybe things are positioned for a “shotgun start” after the 6th???

MZ: Still quiet on CMKX …but there are a number of groups who are also positioning for this week. Hopefully for actual payments. They were told to “be prepared to execute” meaning  to make sure accounts are ready and know the exact figures.

MZ: I am hopeful and think that at the bare minimum…information will start to get much better….starting midday on Monday. The holidays really cut into getting information.

MZ: In Iraq-It appears the final step in de-dollarization is happening..…that is what I was told…although my one contact told me to not worry and this is de-dollarization before the change. …but,  The central Bank of Iraq is claiming they sold one billion in 4 days. They keep saying auctions have stopped but we are seeing evidence they are still moving foreign currency. We are not sure what is going on – but we are watching it. Things are quite confusing.

FIREFLY: New Money Exchange Centers! WE WILL MUST RETURN THE 3 ZEROS NOTES! #iqd #iraqidinar

 

Iraq Stock Exchange reports record growth in 2024 as key economic indicators surge, 5 JAN

 Iraq Stock Exchange reports record growth in 2024 as key economic indicators surge

Shafaq News/ On Saturday, the Iraqi Securities Commission (ISC) announced significant financial and economic milestones for 2024, citing notable growth in the Iraqi stock market and an expansion of its activities.

According to the ISC's annual report, the number of registered companies reached 112, categorized as follows:

- Listed Companies: 104 companies across regulated and secondary trading platforms, including non-disclosing entities.

- Unlisted Platform (ISX-OTC): 8 companies.

Government Bonds Activity

The market facilitated trading in several government bond types, including:

- Construction Bonds: Two issues in two categories.

- Reconstruction Bonds: Three issues in two categories.

- Completion Bonds: Two issues in two categories.

Bond Trading Highlights

1. Construction Bonds (Issue 2): 25,000 bonds traded, valued at 24.12 billion Iraqi dinars.

2. Reconstruction Bonds (Issue 1): 5 bonds traded, valued at 4.92 million dinars.

Stock Market Indicators for 2024

The ISC reported robust activity in stock trading:

1. Total Shares Traded: 809.7 billion shares, marking a 17% increase from 2023.

2. Trading Value: 690.4 billion dinars, a 3% rise year-on-year.

3. Executed Contracts: 182,967 contracts, reflecting a 17% growth.

Market Indexes

- ISX60 Index: Closed December at 1,073.84 points, a 20.23% increase from the previous year.

- ISX15 Index: Closed at 1,174.65 points, up 10.12% since its launch.

- Market Capitalization: Reached 22.33 trillion dinars, up 19% from 2023. 

ISX-OTC Platform Activity

The unlisted platform (ISX-OTC) reported:

- Shares Traded: 5.98 billion shares.

- Trading Value: 2.59 billion dinars across 2,295 transactions involving three companies (Al-Warka Bank, Rabee Brokerage, Al-Karmal Brokerage).

- Market Capitalization: 105.7 billion dinars.

Updates from Listed Companies

- Annual General Meetings: 72 companies held meetings.

- Financial Reporting: 80 companies submitted annual reports for 2023.

- Capital Increases: 17 companies raised capital under corporate law.

- Dividend Distribution: 22 companies distributed dividends.

Optimism for the Future

Faisal Al-Haimus, the President of ISC, highlighted the positive outcomes achieved in 2024. "The strong indicators demonstrate our ongoing efforts to regulate the market, enhance transparency, and build investor confidence," he stated.

"Our goal is to establish the stock market as a cornerstone of Iraq’s national economy while attracting local and international investments."

Looking ahead, Al-Haimus pledged to enhance the market infrastructure and broaden public and private sector participation.

Upcoming Trading Session

The ISC announced that the first trading session for 2025 is scheduled for Tuesday, January 7, 2025, adhering to the official trading schedule.

FIREFLY: It's like they are telling exchangers a lot of the 3-zero notes are about to be returned. , 5 JAN

 Frank26 

  [Iraq boots-on-the-ground report]  

 FIREFLY:Television is doing 11-page document, we've seen it before but they're reshowing it to us. 

 It's instructions to all the new money exchange centers that have been opened up on what they can accept and how much to give on damaged notes being returned by citizens.  It's like they are telling exchangers a lot of the 3-zero notes are about to be returned. 

 FRANK:  That's exactly what they're doing.  Like I told you, these banks would be very essential...Collecting the 3-zero notes is going to be massive...

MAJEED: THEY HAVE ALREADY ADJUSTED THE PAYROLL ON THE NEW RATE!! @DINARREVALUATION

 

12% non-oil revenues in 2024: how can Iraq overcome the oil curse?, 5 JAN

12% non-oil revenues in 2024: how can Iraq overcome the oil curse?

Shafaq News/ Iraq recorded a significant rise in non-oil revenues by the end of 2024, reaching 12% of total public revenues, compared to 7% in 2023. However, economic experts argue that this figure falls short of the government’s planned target.

In an interview with Shafaq News agency, economist Nabil Al-Marsoumi stated that "the total non-oil revenues achieved in Iraq as of October amounted to 14.438 trillion dinars (more than 39 billion USD), representing 12% of total public revenues, compared to 7% in 2023."

The government had aimed for 27 trillion dinars in non-oil revenues or 20% of total public revenues, but this goal has not yet been met, with only half of the target achieved so far.

Al-Marsoumi confirmed that "Prime Minister Al-Sudani planned to achieve 20% of public revenues from non-oil sources, but this has not been realized either, with only 12% achieved so far, just exceeding half the target."

The rise in non-oil revenues, which include taxes, fees, state-owned enterprise profits, and other financial sources, is vital for Iraq's economy. Experts emphasize that the main objective is to reduce the country’s dependence on volatile oil revenues due to fluctuating prices.

The biggest challenge Iraq faces in boosting non-oil revenues is the lack of economic diversification. Al-Marsoumi urged the government to "increase agricultural, industrial, and other economic activities within the GDP, by creating an internal economic cycle that secures job opportunities for citizens."

Oil contributes to about half of Iraq's GDP. Experts stress that Iraq still lacks a clear developmental plan supported by legal frameworks.

Al-Marsoumi noted, "When production diversifies, we need an efficient tax system capable of channeling tax revenues into the public treasury. In reality, we are far from this."

Doubling Non-Oil Revenues

Economic expert Mustafa Hantoush believed that one of the key factors behind the increase in non-oil revenues in Iraq during 2024 is the success of the United Nations’ SCOD program. This initiative has led to a significant shift, with many containers now coming through "regulated customs" rather than entering haphazardly, which has helped double customs and border revenues.

In his remarks to Shafaq News, Hantoush added, "Some self-financing companies have contributed to higher non-oil revenue rates. The state has also been able to withdraw part of these companies' revenues and return them as needed."

However, non-oil revenues suffer from two key challenges: the lack of legal frameworks that allow the state to claim revenues from various sectors, and the absence of electronic systems. For example, when the Central Bank transfers $65 billion for purchasing goods, customs and taxes worth $6 billion should be collected from these amounts. However, only about $1.5 billion has been collected to date.

Hantoush believed that "linking the Central Bank’s operations with remittances, credits, and customs processes, and collecting fees in advance, could significantly increase non-oil revenues." Examples of this include collecting insurance and tax fees on goods upfront, as well as automating tax and traffic revenue systems.

Experts agree that increasing non-oil revenues would allow the government to operate with a broader financial space. There are many potential sources of non-oil revenue, including fees from the Ministry of Oil, Electricity, Transport, and Communications, as well as the full utilization of these sectors' capabilities.

Hantoush also pointed to state-owned facilities with massive untapped wealth, such as the Baghdad Municipality and other municipalities with significant property holdings, urging the government to exploit these assets through specialized committees to help boost state revenues.

TIDBITS FROM JEFF, 5 JAN

  Jeff 

 One of the things the central bank is stating they're going to do is...end that old electronic transfer system that exclusively works with the dollar and transition to a different type of banking system where the local Iraqi banks can start...

doing their own sending of foreign currencies and no longer just the dollar, multiple different foreign currencies abroad. 

 It's called Direct Banking...But to do that the US sanctions need to be lifted off of Iraq.  That's why this whole time they've only been able to exclusively work with the US dollar.