Wednesday, January 15, 2025

MAJEED:THE CBI INFORMED THAT THE ELECTRONIC PAYMENT WILL STOP TODAY FOR MAKE UPDATE TO THEIR SYSTEMS

IMPORTANT IRAQ NEWS: ECONOMIST: THE CENTRAL BANK’S POLICY IS MOVING TOWARDS GLOBALIZING IRAQI BANKS, 15 JAN

ECONOMIST: THE CENTRAL BANK’S POLICY IS MOVING TOWARDS GLOBALIZING IRAQI BANKS

Economic expert “Safwan Qusay” confirmed that the Central Bank’s policy is moving towards globalizing Iraqi banks, while stressing that it will contribute to raising the status of these banks globally.

Qusay said in an interview: “The Central Bank’s policy is moving towards consolidating the issue of globalizing Iraqi banks, and the process of ending dealings with the electronic platform will contribute to accepting local banks that have the ability to provide guarantees and international compliance conditions with international correspondent banks.”

He added that “these correspondent banks can carry out the process of changing the Iraqi dinar to any global currency immediately, and for more than a million banks around the world, and there is a possibility to develop the performance of other banks in order to succeed in the international acceptance process, and there is still a possibility to import capital from different countries of the world and re-inject it into the local environment in the form of grants in different investment portfolios, and thus the possibility of achieving the goals of the Central Bank in the matter of development.”

He pointed out that “the Central Bank will move from the issue of accepting local banks internationally to the issue of participating in the development process, and this will certainly contribute to achieving part of the government program’s goals in employing the unemployed, and in forming productive Iraqi capital, especially since a portion of Iraqis own Iraqi dinars outside the banking system, and whenever we start the issue of convincing them to trust Iraqi banks, we will have new doors to operate this monetary mass.”

He stressed that this step will contribute to raising the status of Iraqi banks globally, “meaning that they will succeed in the process of having a name in international financial transfer operations, and gradually confidence between banks will be strengthened, and there is what is called credit cover between Iraqi banks and international banks, and the level of confidence will be reflected in the credit cover.”
He pointed out, “Whenever there are transfers and coverage at acceptable credit levels, this level may rise so that we succeed in the process of having Iraqi banks that are accepted internationally – and this is a step that does not exist – as Iraqi banks, especially public ones such as Rafidain and Rashid, have withdrawn from international financial transfers since the eighties of the last century.”

Pointing out that “rehabilitating these banks, especially TPI Bank, can contribute to our having international acceptance for international correspondents for these banks.”

IRAQ STATUS UPDATE: HIGHLIGHTS NOTES, 15 JAN

IRAQ STATUS UPDATE

Highlights

Summary

In the latest update on Iraq’s economic and political landscape, significant discussions and decisions surrounding the national budget are underway.

The budget’s current state is likened to a car with only one tire—ineffective and unable to drive forward without comprehensive approval of all budget amendments.

The Iraqi Parliament has only completed the second reading of Article 12, which pertains to transport cost reimbursements for Kurdish oil transport, leaving the broader budget schedules in limbo, awaiting the necessary changes to proceed.

Key players in Iraq’s political framework, including the Coordination Framework and the Finance Committee, are emphasizing the need for a holistic approach to budget amendments beyond Article 12 to ensure a functioning government and effective financial operations.

The meeting outcomes from the Finance Committee highlight discussions on the Kurdistan Regional Government (KRG) salaries, tax reform, and the need for a strategic approach to the financial disputes between Baghdad and Erbil.

Furthermore, Iraq is making strides in international engagements, as evidenced by its recent assumption of the presidency of the Group of 77 and China, which could elevate its global economic standing. Amidst these developments, there is also a focus on critical reforms, including the restructuring of state-owned banks and the implementation of a three-year budget plan aimed at equitable resource distribution across the country.

🚗 Budget Ineffectiveness: The current state of Iraq’s budget is compared to a car with only one tire, indicating a lack of functionality until all amendments are approved.
📜 Article 12 Reading: Parliament has completed the second reading of Article 12, focusing solely on Kurdish transport reimbursements, leaving broader budget issues unresolved.
🏛️ Coordination Framework’s Role: The Coordination Framework is pushing for a comprehensive review of budget amendments, highlighting multiple necessary changes beyond Article 12.
💼 Financial Disputes with KRG: Ongoing discussions revolve around resolving financial disputes between Baghdad and the Kurdistan Regional Government, with a focus on salary payments and budget compliance.
🌍 International Standing: Iraq has assumed the presidency of the Group of 77 and China, a significant diplomatic achievement that may enhance its negotiating power on global economic issues.
🏦 Banking Reforms: There is a strong emphasis on reforming state-owned banks, which is crucial for Iraq’s financial growth and stability.
🔄 Implementation of a Three-Year Budget Plan: The Ministry of Finance is committed to executing a three-year budget plan aimed at ensuring justice and equality in financial allocations across Iraq.

Key Insights

🚗 Ineffective Budget Framework: The analogy of the budget being like a car with only one tire illustrates Iraq’s current financial paralysis. The failure to approve necessary budget amendments keeps the country from advancing economically and socially. This situation underlines the importance of a fully functional governance structure that can enable effective financial management, essential for national development.
🏛️ Parliamentary Processes and Delays: The focus on Article 12, while important, highlights a significant delay in addressing broader financial issues. The lack of urgency in approving comprehensive budget schedules indicates a potential political stalemate that could further hinder economic progress. This delay may also exacerbate public dissatisfaction with the government’s responsiveness to economic challenges.
💼 KRG’s Financial Struggles: The emphasis on resolving financial disputes with the KRG reflects the ongoing tensions between regional and federal governments in Iraq. The KRG’s financial health is not only essential for its employees but also for maintaining stability within the region. Failure to address these issues could lead to increased unrest and a further breakdown in relations between Erbil and Baghdad.
🌍 Global Economic Engagement: Iraq’s presidency of the Group of 77 and China signifies its growing role in international diplomacy and economic discussions. This position could provide Iraq with a platform to advocate for its interests in global economic forums. However, to leverage this position effectively, Iraq will need to establish a tradeable currency, which remains a key hurdle.
🏦 Need for Banking Reform: The focus on restructuring state-owned banks is critical for improving Iraq’s financial standing. Effective banking reform can enhance access to finance for businesses and individuals, promote investment, and ultimately contribute to economic growth. The emphasis on international partnerships, such as with Ernst and Young, indicates a commitment to modernizing Iraq’s financial systems.
🔄 Three-Year Budget Plan and Social Justice: The Ministry of Finance’s commitment to a three-year budget plan that prioritizes justice and equality in financial allocations is a positive step forward. This approach aims to address systemic inequalities in resource distribution, which is vital for long-term stability and development in Iraq. It reflects an understanding that economic growth must be inclusive to foster national unity.
📜 Legislative Challenges: The ongoing legislative challenges in approving budget amendments demonstrate the complexities of governance in Iraq. The opposition’s resistance to bundled voting on multiple laws highlights the need for a more transparent and democratic legislative process. Ensuring that all voices are heard in Parliament is crucial for building trust and fostering a collaborative political environment.

In conclusion, Iraq faces a complex array of challenges regarding its budget and governance.

The current political landscape requires urgent attention to implement comprehensive reforms and facilitate productive discussion between various stakeholders. The outcomes of these discussions will have lasting impacts on the nation’s economic trajectory and political stability.

MZ: the dinar is popping up on different aps and pairing with different crypto pairing.this is big!!

ISX trades $51 million worth of shares in December, 15 JAN

ISX trades $51 million worth of shares in December

Shafaq News/ On Tuesday, the Iraq Stock Exchange (ISX) announced the trading of 57 billion shares worth over 55 billion dinars (about $42 million) in December.

ISX reported that it conducted 20 trading sessions in December, with 74 out of 104 listed companies participating in the trades.

“The total shares traded were 57,862,320,000, valued at 55,652,595,000 dinars ($42,726,177), through 15,136 transactions. The ISX60 price index closed at 1,073 points, reflecting a 4% increase compared to its closing in the previous session.”

The Iraq Stock Exchange operates five trading sessions weekly from Sunday to Thursday and lists 104 joint-stock companies representing sectors including banking, telecommunications, industry, agriculture, insurance, financial investment, tourism, and hotels.

TIDBIT FROM FRANK26, 15 JAN

Frank26

They told the Iraqi citizens we are in the process of adding a mechanism to add purchasing power to your currency.

Sudani constantly kept talking about it in November and December last year - 'I promise I'm going to do it. I promise you'll have more purchasing power than the dollar.'...He actually kept his promise because there is no dollars in the country of Iraq.

The only currency in Iraq right now is the Iraqi dinar...It has more value than the American dollar that has zero value inside of Iraq, therefore the Iraqi dinar now seeks a door...

We have security and stability in order to introduce the new exchange rate that Dr. Shabibi and the US Treasury have been protecting for a long time. There are no more CBI auctions. It is now called... remittance, just like the American banks do...The CBI is now functioning exactly like international banks, exactly like American banks..

DINAR REVALUATION