DINAR REVALUATION

Tuesday, January 14, 2025

WALKINGSTICK: IRAQI BANK FRIEND AKI : THEY'RE DE-DOLLARIZING THE WHOME MIDDLE EAST! @DINARREVALUATION

Cabinet approves establishment of new bank, 14 JAN

Cabinet approves establishment of new bank

Fourth – Baghdad

Today, Monday, the Council of Ministers approved the establishment of a new bank in the form of a joint-stock company.

Al-Sudani’s office stated in a statement received by (Al-Rabia), that “within the banking reform procedures, the Council of Ministers approved in today’s session the following:

1. Establishing a new joint-stock bank that relies on the latest technologies, and aims to be a partner with companies and businessmen, whether inside or outside Iraq, and to provide financial and banking services to individuals through an integrated digital experience, and to be a leading bank at the regional level…

https://www.faceiraq.org/article/250230/%D9%85%D8%AC%D9%84%D8%B3-%D8%A7%D9%84%D9%88%D8%B2%D8%B1%D8%A7%D8%A1-%D9%8A%D9%88%D8%A7%D9%81%D9%82-%D8%B9%D9%84%D9%89-%D8%AA%D8%A3%D8%B3%D9%8A%D8%B3-%D9%85%D8%B5%D8%B1%D9%81-%D8%AC%D8%AF%D9%8A%D8%AF

MILITIAMAN CC HIGHLIGHTS NOTES, 14 JAN

MILITIAMAN CC HIGHLIGHTS NOTES

Summary

In this detailed discussion, the speaker, associated with the Militia Man and Crew, delves into the evolving economic landscape of Iraq, particularly highlighting the developments surrounding its currency, the Iraqi dinar, and the broader economic reforms spearheaded by the Iraqi government.

A key focus is the relationship between the Kurdistan Regional Government and the central government in Baghdad, especially regarding budget allocations for the upcoming years.

The speaker underscores the strategic importance of Iraq’s engagement with international partners, particularly China, as trade transactions rise to $50 billion, and how this is set to enhance Iraq’s economic stability.

The speaker also emphasizes the significant advancements made by the Central Bank of Iraq, particularly in transitioning to more modern banking practices and strengthening its global standing. Automation of customs processes and improvements in financial governance are crucial steps mentioned, which aim to facilitate trade and enhance the business environment in Iraq. Furthermore, the speaker discusses the implications of these developments on the exchange rate of the dinar and the long-term prospects for investment and economic growth in the region. The overarching theme is one of optimism and anticipation for a more stable and prosperous Iraqi economy, driven by strategic initiatives and international collaboration.

📊 Kurdistan Budget Dynamics: The Kurdistan region’s share of the federal budget has increased, indicating a significant shift in fiscal relations between the Kurdistan Regional Government and Baghdad.
🇨🇳 $50 Billion Trade with China: Iraq is entering into substantial trade agreements with China, marking a pivotal moment in its economic landscape.
🚢 Port Automation Initiatives : The launch of an automated customs system is set to enhance efficiency in Iraq’s port operations, aligning with international trade standards.
💳 Electronic Banking Revolution: The Central Bank of Iraq is modernizing banking practices by adopting electronic platforms for international transactions, boosting global integration.
🌍 Globalization of Iraqi Banks: The Central Bank is working towards the globalization of Iraqi banks, enabling them to operate on international platforms effectively.
🔄 Fiscal Controls and Transparency: New measures are being implemented to ensure transparency in financial operations, crucial for building investor confidence.
🚀 Investment in Infrastructure: Ongoing infrastructure projects are expected to attract foreign investment, especially with improved security and stability in the region.

Key Insights

📈 Kurdistan’s Budget Share: The increase in the Kurdistan region’s budget share signifies a potential shift in regional power dynamics and financial stability. This could foster better cooperation between the Kurdistan Regional Government and the central government, ultimately leading to a more unified national policy framework.
💹 China’s Economic Involvement: The $50 billion trade initiative with China illustrates Iraq’s strategic pivot towards strengthening economic ties with major global players. This partnership could serve as a catalyst for economic growth, providing much-needed capital and resources to support infrastructure development.
⚙️ Impact of Customs Automation: The implementation of automated customs systems is expected to significantly improve the efficiency of trade operations in Iraq. This modernization will not only streamline processes but also reduce corruption and increase revenue collection, essential for funding public services and development projects.
📲 Shift to Electronic Banking: The transition to electronic banking and international correspondent banking is a critical step for Iraq. This will enhance the ability of local banks to conduct transactions globally, instilling confidence among international investors and facilitating smoother capital flows.
🌐 International Standards Compliance: As the Central Bank of Iraq aligns its policies with international standards, it paves the way for greater foreign investment. This compliance will help in establishing trust between Iraqi banks and their international counterparts, essential for economic stability.
🏗️ Infrastructure as an Investment Magnet: The ongoing infrastructure initiatives indicate a long-term vision for economic revitalization. As security improves, Iraq is likely to attract more foreign investment, particularly in sectors like energy, construction, and logistics.
🔍 Future of the Iraqi Dinar: The discussions surrounding the Iraqi dinar’s exchange rate suggest that a revaluation may be on the horizon. This potential change could significantly impact the economic landscape, increasing the purchasing power of the dinar and stimulating local and foreign investment.

Conclusion

The various developments discussed by the speaker outline a transformative period for Iraq, marked by strategic partnerships, economic reforms, and a clear commitment to improving the financial landscape.

The emphasis on automation, electronic banking, and international trade underscores a proactive approach to integrating Iraq into the global economy.

The speaker’s insights reflect optimism regarding the future of the Iraqi dinar and the potential for a more robust economic framework that could benefit citizens and investors alike.

As Iraq navigates these changes, the importance of transparency, security, and compliance with international standards will be crucial for sustaining momentum and attracting foreign investment. The unfolding narrative suggests that Iraq is on the cusp of a significant economic evolution, driven by deliberate policy choices and engagement with global partners. The community of stakeholders, including investors and citizens, appears poised to benefit from these positive developments, heralding a new era of growth and opportunity in Iraq.

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

Parliamentary-Kurdish agreement to amend the budget law to guarantee salaries of Kurdistan employees, 14 JAN

Parliamentary-Kurdish agreement to amend the budget law to guarantee salaries of Kurdistan employees

Economy News – Baghdad

On Monday, the President of the Kurdistan Region, Nechirvan Barzani, agreed with the head of the Al-Asas Alliance to amend the budget law to guarantee the rights and entitlements of the region and the salaries of its employees.

The media office of the presidency of the region said in a statement, which was reviewed by “Al-Eqtisad News”, that “the President of the Kurdistan Region, Nechirvan Barzani, met this evening with Mohsen Mandalawi, head of the Foundation Alliance.”

He pointed out that “the meeting discussed the political situation in Iraq and the Kurdistan Region’s relations with the federal government, as both sides stressed the importance of cooperation between the political parties to enhance stability and achieve development in Iraq.”

The statement explained that “the two sides agreed to amend the 2025 budget law to guarantee all the rights and entitlements of the Kurdistan Region and the salaries of employees without problems or obstacles.”

In another aspect of the meeting, the situation in the region and its effects on Iraq were discussed, and the two sides stressed, according to the statement, the “necessity of joint action to confront challenges and keep Iraq away from conflicts.”

TIDBIT FROM MILITIAMAN, 14 JAN

Militia Man

In my view this reeks of a need to change the exchange rate for the Iraqi dinar or they would have already done it.

If they're going to an international state, they should have already done it by now if it was going to stay the same exchange rate...

Everybody that's been involved with the dinar should [ask], 'Well they've been at 1310 for a year or more, why haven't you done it yet?' That's because they're looking for an exchange rate change because that's what's going to happen.