CBI SIGNIFICANT REFORMS, 11 JAN

 CBI SIGNIFICANT REFORMS

The Central Bank of Iraq has implemented significant reforms in its foreign transfer mechanisms to modernize and align with international banking standards:

1️⃣ Closure of the Electronic Platform:

• The platform, used to ensure transparency and prevent money laundering, was retired on December 31, 2024.

• This change reflects a transition to more efficient direct relationships between Iraqi banks and international correspondent banks.

2️⃣ Improved Mechanisms:

• Iraqi banks can now conduct foreign transfers using non-American correspondent banks in countries like China, Turkey, the UAE, and Europe, reducing dependency on U.S. banks.

• This approach enhances operational fluidity and expands the number of Iraqi banks participating in foreign transactions.

3️⃣ Exchange Rate Stability:

• The parallel exchange rate does not reflect market conditions but is controlled by the Central Bank.

• Official dollar sales support legitimate purposes, such as imports and personal transfers, ensuring price stability with inflation at 3.1%, below regional averages.

4️⃣ Economic Implications:

• These reforms aim to strengthen Iraq's financial infrastructure, improve global integration, and curb black-market speculation.

• The Central Bank ensures compliance with international laws and secures foreign currency for national and citizen needs.

The reforms implemented by the Central Bank of Iraq represent a significant step forward in modernizing the country's financial system and aligning it with international standards. By streamlining foreign transfer mechanisms, reducing dependency on specific banking systems, and ensuring exchange rate stability, Iraq is building a more resilient and transparent financial infrastructure. These measures not only foster trust in the Iraqi dinar but also create a strong foundation for sustained economic growth, enhanced global integration, and improved financial opportunities for both businesses and citizens. The Central Bank’s proactive approach demonstrates a commitment to economic stability and progress, paving the way for a more prosperous future.

MNT GOAT: The next stage is full sovereignty promised to the Iraqi people!! @DINARREVALUATION

 

Including the budget, intelligence, and minorities... Learn about the laws included in the parliament session on Sunday, 11 JAN

  Including the budget, intelligence, and minorities... Learn about the laws included in the parliament session on Sunday

1/10/2025

 The media department of the House of Representatives announced, on Thursday, the agenda of the parliament session next Sunday, including voting and reading of draft laws, including the 2025 budget schedules and others related to minorities and security.

According to the agenda, which was received by Shafaq News Agency, the parliament session next Sunday, January 13, includes 10 paragraphs, distributed between voting on draft laws, including the National Intelligence Service Law and mental health .

The session will also include reading draft laws, including the Yazidi genocide, the protection of minorities, and the federal budget schedules for 2025  LINK

EXCERPTS FROM MNT GOAT: Timeframe of when we could expect all this to happen?, 11 JAN

 EXCERPTS FROM MNT GOAT

Timeframe of when we could expect all this to happen?

A VERY HIGH-LEVEL MEETING WITH THE U.S. IN JANUARY

She said there is going to be a very high-level meeting with the U.S. in January to review Iraq progress and she is certain of the outcome, it must be the conclusion that Iraq is stable, secure and can advance to the next stage, which is what we look for as investors.

THERE IS ANOTHER PEG ESTABLISHED THAT WILL BE ANNOUNCED SOON

 She told me it is the goal of the CBI to get off the sole peg to the US dollar (the de facto sanction peg) of the past and the CBI is working to do this. There is another peg established and is waiting for announcement soon.

IRAQ IS NO LONGER A WAR-TORN COUNTRY

She said don’t you realize the magnitude of what is happening in Iraq?

 She said it is no longer a war-torn country. It will soon be a global tourism destination. There is much progress still to be done in cleaning up many neighborhoods to provide housing and shops. It is all planned out. But first they must secure an economy to provide for all this.

JEFF: For them to approve the oil and gas law is absolutely waiting for the rate to change!! #iqd

 

FRANK26: "THE NEXT STEP OF THE MONETARY REFORM HAS 2 OPTIONS.", 11 JAN

 KTFA

FRANK26:  "THE NEXT STEP OF THE MONETARY REFORM HAS 2 OPTIONS.".....F26

Al-Nusairi: Explains the new mechanism for external transfers after the platform is closed

1/9/2025

 

 Baghdad
 

Economic and banking advisor Samir Al-Nusairi explained that closing the electronic platform on 12/31/2024, which was used by the Central Bank for prior auditing and controlling the transparency of foreign transfers and ensuring their arrival to the final beneficiary and overcoming suspicions of money laundering and terrorist financing, is not, as some believe, closing the platform is a closure of foreign transfers, but rather a change in the mechanisms to achieve fluidity and speed by reducing the links.

Al-Nusairi said in a televised interview that it is not normal for the Central Bank or the US Federal Reserve to carry out executive procedures, but rather the task of central banks is supervision and control, and the electronic platform was a stage in this direction, and now we have reached the stage that is practiced in the countries of the world according to international banking standards through the direct relationship between local banks and correspondent banks.

He added that transfers in other currencies will enable Iraqi banks that do not have correspondents in American banks to conduct their transfers through correspondent banks in other countries such as China, Turkey, the United Arab Emirates, India, Europe, Jordan and Saudi Arabia. This will lead to expanding the number of Iraqi banks that participate in foreign transfers and reduce pressure on other banks.

He stressed that the exchange rate announced as the parallel rate does not reflect the price reality, firstly because Iraq does not have the parallel market situation, which is only achieved when it has sources of dollars and currencies other than the Central Bank, such as private sector exports, remittances from residents abroad, tourism, etc., so it has exchange rates that correspond to the official exchange rate at the Central Bank, and that speculation in dollars on the black market is punishable by law.  Secondly, limiting the sale of cash dollars to travelers and through a strict mechanism has made cash dollar sales at a minimum level, and therefore what is in circulation is what remains with travelers. We should look at the price at which the Central Bank covers all external operations, including imports and personal transfers for the purposes of study and treatment abroad and legitimate purposes, which explains the stability of prices in light of the current inflation rate, which is about 3.1% less than the inflation rates in Arab, regional and neighboring countries. This means that the Central Bank has achieved a basic objective of monetary  policy. ( PROFITEERING HAS ENDED ALLOWING THE MONETARY POLICY TO FLORISH -F26)

Al-Nusairi expressed his surprise that some people calculate the banks’ revenues from selling the dollar by measuring the difference between the market price and the official price, which is a big mistake because the banks do not transfer at the market price but at the official price monitored by the Central Bank. He explained that the foreign currency selling window is dedicated to securing the Iraqi dinar for the purposes of the Ministry of Finance’s operating budget and to enhance the banks’ balances in foreign currencies for external transfers and to cover the cash dollar for travelers and for other legitimate needs of citizens.

LINK

 

CBI CONTACT INTEL BY MNT GOAT, 11 JAN

 CBI CONTACT INTEL 

So now we must discuss this article in the terms as my contact and I discussed yesterday. I have put my comments in the article I pulled from my Mnt Goat personal archives of past articles. I was told to note this part in the article and I quote – ““There is a high committee formed within the Central Bank that is continuing discussions and studying the deletion of zeros from the local currency of Iraq,” indicating that “the numbers on the currency have become very large, which is the main reason behind this process.” 

So, you see, she said this referenced committee is real and is her committee and she is  part of it working on this effort. But I told her I already knew this. She told me this statement today was not for me but for the people reading my blog. 

They need to understand that the CBI is working on this subject matter the best we can. They set time tables and expectations. When other events don’t happen or don’t happen on the timetable, they we have a rippling effect. 

She said she did not want to mislead me about the December Project to Delete the Zeros and was only telling me what the timetable then was. I thanked her for her continued relay of information to me. I told her I understand and want all my blog readers now to also understand what she just told us. Thus I am telling you this part today.

Next she pointed out in the article and I quote “linking the Iraqi currency’s evaluation completely to the dollar through negotiations with the US Federal Reserve will allow for improving the strength of the Iraqi dinar,” stressing that this step will make the Iraqi dinar “stronger than the Jordanian dinar . ”

 She told me it is the goal of the CBI to get off the sole peg to the US dollar (the de facto sanction peg) of the past and the CBI is working to do this. There is another peg established and is waiting for announcement soon. Do not believe everything you read, she said as these article could be misstating older past policies and not up to date.

I then asked for some sort of timeframe of when we could expect all this to happen.

 I was told that negotiations with the new incoming U.S. administration are informally taking place now with the new Treasury secretary. 

She said there is going to be a very high-level meeting with the U.S. in January to review Iraq progress and she is certain of the outcome, it must be the conclusion that Iraq is stable, secure and can advance to the next stage, which is what we look for as investors.

I want everyone to remember that although we seek the FACTS and TRUTH about this reinstatement in my blog we are all still speculators and the CBI frowns upon speculators of the dinar. 

However, the flip side is they sold us these dinars through the global brokers in a desperate time for Iraq and they know we have them. She said the CBI knows that they must make good for us investors or future investors in the dinar will not come to the market and play.

She also told me the diversification of the Iraqi economy under Al-Sudani is amazing and they are now doing what they planned to do a decade ago and could not due to either funding or the political will to act. 

We exchanged ideas of the past and present and we agreed on the enormous changes taking place.

 This reminded me of my past Newsletters from years ago, when I talked about all these changes and projects to increase the non-oil revenues and now, we can see it all happening. She said don’t you realize the magnitude of what is happening in Iraq?

 She said it is no longer a war-torn country. It will soon be a global tourism destination. There is much progress still to be done in cleaning up many neighborhoods to provide housing and shops. It is all planned out. But first they must secure an economy to provide for all this.

So, this was from the notes of my recent conversation with my CBI contact. I realize I did not get a firm timeframe or window for the Project to Delete the Zeros. I can’t pressure my contact too much as I do not want to lose her. I am certain that when she is notified to go ahead, she will let me know.

Please let’s all just relax and pray. Praying now is the best thing we can do.