PM: Restructuring government banks to ensure the availability of capabilities and openness with global specifications, 10 JAN

 PM: Restructuring government banks to ensure the availability of capabilities and openness with global specifications

Baghdad - INA

Prime Minister Mohammed Shia Al-Sudani confirmed, today, Thursday, that government banks with their current structures are unable to open up and address problems, indicating, therefore, they were restructured in a way that ensures the availability of all capabilities and openness with modern global technical specifications.

The Prime Minister's media office said in a statement - received by the Iraqi News Agency (INA): "Prime Minister Mohammed Shia Al-Sudani chaired a special meeting to discuss the development of the work of government banks, in the presence of representatives of Ernst & Young for Auditing and Financial Consulting."

The statement added, "The Prime Minister was briefed on the plan for the restructuring project of Al-Rasheed and Al-Rafidain Banks, and the technical and administrative procedures related to the project, which includes a comprehensive review and structural administrative reforms to provide integrated banking services to citizens and companies."

The Prime Minister explained - according to the statement - that "the completion rate of the project to restructure Rafidain Bank has reached its final stages", stressing "its entry into force within the next few days, within the framework of a plan that has been studied and implemented according to the established standards and specifications". Al-Sudani added that "government banks with their current structures are unable to open up and address the problems, and for this reason, they have been restructured in a way that ensures the availability of all capabilities and openness with modern global technical specifications".

TIDBIT FROM MARKZ, 10 JAN

 MarkZ  

  Things are looking good and there has been a lot of activity...Suddenly a lot of banking contacts have been checking in. Which is exciting.

 I have had 4 confirmations...from banking contacts that I have known for years…they are telling me now to prepare for new rates. 

 One of them said “It looks like that thing you are expecting is happening by Saturday…New rates by or on Saturday”... Stay calm though.

MNT GOAT : the Project to Delete the Zeros is still set for late Decembe...

Economist: Electronic financial transactions save Iraq from cash shortage, 10 JAN

 Economist: Electronic financial transactions save Iraq from cash shortage

monetary researcher Diaa Abdul Karim stated on Thursday that the shift closer to digital economic transactions and generalizing this to all authorities and personal transactions will keep the u . s . from a scarcity of coins.

Abdul Karim instructed, “maximum international locations within the international, and Europe especially, have moved towards digital monetary transactions, such that the subculture of managing digital playing cards in buying and promoting in various sectors has been created in society, or even with the decline of its economy, it will no longer suffer financially due to the fact its financial transactions are electronic.”

He added, “these transactions make it pointless for governments to print foreign money continuously, as this manner is financially high priced. Iraq prints a few denominations regionally and other denominations of currency are revealed abroad, and printing them fees the monetary fee of this currency.”

He explained that “the circulate toward digital transactions calls for in depth education with the intention to withdraw the cash mass from the road and to transform transactions, in particular big amounts, thru electronic cards. consequently, the citizen will now not be forced to withdraw big quantities from banks so as to buy a property, a car, and so forth., but will use his card to switch money to the other birthday party, which ensures the safety of financial transactions and stops the coins mass from being wasted and taken out of the banking framework.”

IRAQ UPDATE: The significant economic reforms being implemented by Al Sadani, which aim to transform the nation’s financial landscape, 10 JAN

 IRAQ UPDATE: The significant economic reforms being implemented by  Al Sadani, which aim to transform the nation’s financial landscape

Highlights

• 🌟 New Economic Strategy: Prime Minister Al Sadani introduces a transformative plan for Iraq’s financial future.
• 💰 Reinforcement Mechanism: The controversial dollar auction system is being replaced to enhance economic stability.
• 📈 Record Revenues: Iraq reports exceptional economic growth in 2024, largely due to favorable global oil prices.
• 🏦 Increased Bank Deposits: A surge in bank deposits indicates rising public confidence in the financial system.
• 📊 Growing Gold Reserves: Iraq’s gold reserves rank third in the Middle East, providing a hedge against economic instability.
• 🏗️ Infrastructure Investments: The government is prioritizing investments in various sectors to diversify the economy.
• 🌍 Regional Influence: Iraq positions itself as a regional powerhouse with its growing economic resilience and gold holdings.

Key Insights

• 🏦 Shift from Dollar Auctions: The transition from dollar auctions to the reinforcement mechanism represents a significant departure from Iraq’s traditional economic practices. This new approach aims to minimize corruption and ensure that financial resources are utilized for the benefit of the Iraqi people, thereby fostering greater transparency and accountability within the financial system.

• 🌍 Impact of Oil Prices: Iraq’s economy has historically been dependent on oil exports, and the current surge in global oil prices has played a critical role in generating record revenues. However, this dependence also underscores the need for economic diversification to protect against market fluctuations and promote sustained growth.

• ⚖️ Public Trust in Banking: The rise in bank deposits indicates a growing willingness among Iraqis to engage with formal financial institutions. This trend is vital for reducing the reliance on cash transactions, which can often be associated with illicit activities, and for creating a more stable and secure economic environment.

• 📈 Gold as a Safeguard: The significant increase in Iraq’s gold reserves serves as a strategic move to safeguard the nation’s wealth against economic uncertainties. With gold traditionally being viewed as a stable asset, its accumulation signals a larger effort to enhance financial security for future generations.

• ⚒️ Infrastructure and Diversification: The government’s focus on investing in sectors such as energy, transportation, and technology is crucial for moving away from oil dependency. By creating jobs and fostering economic diversification, Iraq can build a more resilient economy capable of withstanding external shocks.

• 📉 Challenges Ahead: Despite the positive developments, Iraq faces ongoing challenges, including political instability and security concerns. The government needs to ensure that reforms are not only enacted but also sustained over the long term to realize the full potential of its economic strategy.

• 🌟 Potential for Regional Influence: With its growing gold reserves and improving economic indicators, Iraq is positioning itself as a significant player in the Middle East. This newfound influence can lead to greater opportunities for collaboration and investment within the region, potentially reshaping Iraq’s economic narrative from one of conflict to one of resilience and renewal.

Currency Reset & Decentralised Systems - Jon Dowling & Lynette Zang

EXCLUSIVE: Iraq, Jordan forge stronger ties to boost regional stability and economic growth, 10 JAN

 EXCLUSIVE: Iraq, Jordan forge stronger ties to boost regional stability and economic growth

Shafaq News/ Former Jordanian government spokesperson Mohannad Mubaidin affirmed, on Thursday, the ongoing collaboration between Iraq and Jordan to maintain security and stability in the region, particularly in light of last year’s rapid developments.

"King Abdullah II is committed to ensuring that Jordan’s relationship with Iraq is both impactful and geared towards achieving stability and security in the Middle East,” Mubaidin said in an exclusive statement to Shafaq News, adding that "several meetings have been held between the two sides, focusing on key areas, including bolstering security systems and combating terrorism."

High-Level Visits Cement Relations

Iraqi Prime Minister Mohammed Shia Al-Sudani visited Jordan on Dec. 11, 2024, meeting with King Abdullah II to discuss Arab and regional strategies amid ongoing developments in the region, particularly in Syria. This visit underscored Iraq’s strong interest in its ties with Jordan.

On Dec. 15, 2024, Iraqi Parliament Speaker Mahmoud Al-Mashhadani traveled to Amman, where he met King Abdullah II, Jordanian Parliament Speaker Ahmed Safadi, and Senate President Faisal Al-Fayez. According to a statement from Al-Mashhadani’s office, his meeting with Jordanian Prime Minister Jaafar Hassan focused on strengthening bilateral cooperation across political, economic, and security domains, aiming to support stability and development in both nations.

Economic and Trade Ties Flourish

Jordanian officials have emphasized the strategic importance of their partnership with Iraq. Mubaidin reiterated, "Jordan recognizes the depth and significance of its relationship with Iraq and consistently advocates for joint efforts to ensure Iraq’s security and stability while fostering a comprehensive partnership that benefits both nations."

Economic ties between the two countries also remain robust. On Tuesday, the Jordanian Chamber of Commerce announced that Iraq ranked as Jordan’s largest importer in 2024, with total imports valued at 691 million Jordanian dinars.

The oil trade is another vital pillar of cooperation. According to statistics released by Iraq’s State Oil Marketing Organization (SOMO) on Dec. 28, 2024, Iraqi oil exports to Jordan rose by 7.45% over the first 11 months of 2024, reaching 3.56 million barrels compared to 3.31 million barrels during the same period in 2023. SOMO further reported that Jordan imported approximately 3.8 million barrels of Iraqi oil last year under a renewed agreement signed in mid-2024.

Expanded Energy Cooperation

In August 2024, Iraq and Jordan agreed to increase monthly oil exports from 10,000 barrels to 15,000 barrels, raising the annual total from 300,000 barrels to 450,000 barrels. This expansion now covers approximately 10% of Jordan’s crude oil needs, reflecting the strengthening economic ties between the two nations.

Through mutual commitments to security, economic development, and energy collaboration, Iraq and Jordan continue to set an example of regional partnership, working together to promote stability and prosperity for their citizens.