IMPORTANT IRAQ NEWS: FORMER MP: IRAQ IS FACING AN ECONOMIC DISASTER AND THE SOLUTION LIES IN TWO URGENT STEPS , 15 JAN

 FORMER MP: IRAQ IS FACING AN ECONOMIC DISASTER AND THE SOLUTION LIES IN TWO URGENT STEPS 

(from a VERY conservative former politician and not even an economists)

Former MP Ahmed Al-Hajj called on the government and parliament on Sunday to take urgent measures to prevent an imminent economic disaster that Iraq may face. 

Al-Hajj said in an interview with Al-Maalouma Agency, “Iraq is facing a financial crisis whose signs have appeared in the past few days and have affected the state’s financial obligations towards its employees and other groups. This crisis is caused by:

1.the decline in oil prices, which represent the most important source of financial resources for the state,

2.as well as the gap between revenues and expenditures that has widened in recent years.” 

He indicated that “many warnings have been issued in the past that the country is heading towards such a crisis unless appropriate solutions are put in place.” 

He added, “The government must quickly adopt administrative streamlining and not inflate the financial budget due to the demands of some political parties that benefit from the budget as an investment or as a source of income,” indicating that “administrative streamlining leads to a decrease in government expenditures and we avoid the disaster that Iraq faces if oil prices and the quantity of exported oil do not decrease.” 

It is noteworthy that the Parliamentary Finance Committee hosted, on Monday, the Minister of Finance, Taif Sami, to discuss amending the budget law for the current year, while the head of the Rights Bloc, MP Hussein Mounes, called after the hosting to reduce spending and maximize revenues.

DINAR GURUS UPDATE, 15 JAN

 DINAR GURUS UPDATE

Highlights

• 📈 Speculative Timeline for Revaluation: Mark Z indicates a potential revaluation of the Iraqi Dinar could occur between now and January 22nd.
• 🔒 Security and Stability: Frank 26 emphasizes that security and stability are crucial for the introduction of a new exchange rate.
• 🌍 Global Banking Integration: Jeff highlights the need for an internationally convertible currency to access global banking markets.
• ⚖️ Islamic Finance Concerns: Sandy Ingram discusses the limitations on trading the IQD, linked to Islamic financial principles and potential sanctions.
• 📜 Legislative Progress: Recent legislative changes, including amendments to the passport law and budget law, have been made to support economic reforms.
• 💰 Purchasing Power Promises: Iraqi officials, including Sedani, have promised to enhance the purchasing power of the Dinar, which is reportedly more valuable than the dollar within Iraq.
• 🏦 Transition to Asset-Backed Currency: Mark Z mentions that financial institutions recognize a shift toward an asset-backed currency system, incorporating gold.

Key Insights

• 📅 Speculation vs. Reality: The speculative nature of predictions regarding the Dinar revaluation raises questions about reliability. Although Mark Z’s timeline provides a sense of urgency and excitement, such forecasts often lack concrete evidence and could mislead investors. Understanding the broader economic context and waiting for official announcements might yield better insight into the actual timing of any changes.

• 🔒 Foundation of Stability: Frank 26’s assertion about the necessity of security and stability for currency reform underscores a critical factor in economic growth. Without a secure environment, financial markets struggle to thrive. This point suggests that for Iraq to effectively transition to a new exchange rate, both political stability and overall security must be prioritized, potentially requiring international support and investment.

• 🌐 International Recognition: Jeff’s focus on the need for an internationally recognized currency highlights a significant barrier for Iraq’s economic development. The implications of not having a convertible currency include limited access to foreign investments and challenges in engaging with global markets. The path to recognition may involve comprehensive economic reforms and increased transparency in Iraq’s financial systems.

• ⚖️ Ethical Considerations in Trading: Sandy Ingram’s discussion regarding the limitations on trading the IQD due to Islamic finance principles emphasizes the complexities of integrating modern financial practices with traditional values. This aspect of finance could create challenges for both local investors and international entities looking to engage with Iraq, necessitating tailored approaches that respect cultural values while fostering economic growth.

• 📜 Legislative Framework: The mention of legislative changes, such as amendments to the passport law and budget law, reflects a proactive stance by the Iraqi government towards economic reform. These changes may facilitate smoother economic operations and enhance investor confidence. A stable legislative environment is vital for fostering trust among both domestic and international stakeholders.

• 💵 Purchasing Power Dynamics: The assertion that the Iraqi Dinar is currently more valuable than the US dollar within Iraq raises intriguing questions about local economic conditions. If true, this could signal a substantial shift in economic dynamics, potentially positioning the Dinar as a stronger currency in the region. However, the sustainability of this purchasing power will depend on various internal and external factors, including inflation rates and international trade policies.

• 🏦 Shift to Asset-Backed Currency: Mark Z’s commentary on the transition to an asset-backed currency system aligns with global trends in financial markets that seek stability and trust through tangible assets. This shift could enhance the Dinar’s credibility, attract foreign investments, and stabilize Iraq’s economy. However, successful implementation would require robust regulatory frameworks and transparency to ensure the backing assets are managed effectively.

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

 

IMPORTANT IRAQ NEWS: BIRTH OF A NEW BANKING ENTITY IN IRAQ., 15 JAN

 BIRTH OF A NEW BANKING ENTITY IN IRAQ.. A GOVERNMENT ADVISOR REVEALS THE DETAILS TO {EUPHRATES NEWS}

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed a study being conducted by a global consulting firm, commissioned by the state, to restructure Rafidain and Rashid Banks, which constitute 85% of the banking market in the country.

Saleh explained to Al Furat News Agency that “the two banks suffer from a historical legacy of challenges, which requires a comprehensive reform plan to reposition them within the map of effective and efficient banking work.”

Saleh added, “The study aims to establish a new banking entity specializing in government banking operations, to meet the government’s needs exclusively. This entity will contribute to achieving the goals of the unified treasury account, which is a crucial tool for regulating cash flows for public finances.”

He pointed out that “the study focuses on evaluating the legal status of the two banks, including property rights, evaluating assets and liabilities, and studying the requirements of a strategic partner if necessary, with a focus on developing the two entities to operate according to advanced financial technology that meets the requirements of the national banking market.”

He stressed that “the structural reform also aims to enhance the integration of the two banks into the national banking market and enable them to expand into global financial markets, especially in the areas of trade and investment financing for the private sector.”

He added that “the two potential entities will rely on modern systems in compliance, governance and risk management, with a focus on digital payments.”

He concluded by saying: “The study is expected to be submitted to the higher official authorities in the coming months, within the framework of implementing the government’s financial and banking reform program, which aims to achieve a comprehensive economic renaissance and build modern financial institutions.”

Earlier today, Thursday, Prime Minister Mohammed Shia Al-Sudani chaired a special meeting to discuss developing the work of government banks, in the presence of representatives of Ernst & Young for auditing and financial consulting.

The Prime Minister explained that the percentage of completion of the project to restructure Rafidain Bank has reached its final stages, stressing that it will enter 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.

TIDBIT FROM MILITIAMAN, 15 JAN

 Militia Man  

If you're doubting your investment hang in there because what they're saying is truly something I've never seen in my 15 years of being here and the evidence is not from me and it's not from anybody else on the internet, it's directly...

from an economist and the central bank...I think it's huge guys.  It's exciting times...The stage is set.

 The cash cow is seriously coming to an end.  We already saw that the black market/parallel market/dollar auctions they're bye-bye...It's true.  It's in writing...Those that are out there suggesting that it wasn't going to happen, it already did...

Jon Dowling: Iraq is totally timing this for President Trumps return in one week!! @DINARREVALUATION

 

IMPORTANT IRAQ NEWS: The Central Bank Successfully Completes Its External Transformations.. Statement on Strengthening Balances and Stability, 15 JAN

 The Central Bank Successfully Completes Its External Transformations.. Statement on Strengthening Balances and Stability

The Central Bank of Iraq has succeeded in adhering to its program related to the transition from foreign transfers via the electronic platform to the work of Iraqi banks through their foreign correspondent banks.

 In a statement by the Central Bank, which Al-Masry reviewed today, Sunday, “The transition took place through stages that the external transfer process went through, starting with the window for buying and selling foreign currency and moving to the stage of the electronic platform for external transfers, and ending with operations to gradually enhance balances during the year 2024 and was fully achieved in the last week of this year.”

The Central Bank promised “the achievement of a radical transformation in line with the best international standards and practices to achieve a stable and secure financial system, and this work received international support and praise throughout the stages of its implementation.”

The statement stressed that “the new transfer methodology is consistent with international practices followed in this field, which separate the responsibilities and duties of the Central Bank from the obligations, responsibilities and role of commercial banks. From this standpoint, the Central Bank of Iraq will continue to enhance the balances of Iraqi banks with their correspondent banks in the US dollar, in addition to a group of other currencies, such as (the Indian rupee, the Chinese yuan, the euro, the Emirati dirham, the Saudi riyal, and the Jordanian dinar), and that this achievement has enhanced the efficiency and safety of foreign transfer operations, and their transition to the method followed in all countries of the world, which will make Iraq approach a new stage in its financial relations regionally and internationally and enhance the government’s orientations in expanding its economic relations and enhancing investment opportunities.”

He pointed out that “the efforts in this important achievement came through a series of ongoing detailed technical procedures and agreements, and great support from the Iraqi government, and that the bank will continue to follow modern methods in managing monetary policy in Iraq, in line with its essential role in achieving financial stability, and its position among central banks in the region and the world, which will be positively reflected in the confidence and support of the external financial sector of Iraq and international financial and economic organizations.”

The statement explained that the management of the Central Bank of Iraq seizes this important opportunity to express its thanks and appreciation to everyone who contributed to achieving this great accomplishment, first and foremost the cadres of the Central Bank of Iraq, the banking sector in Iraq, and all international partners.

The statement concluded by saying, “The Central Bank of Iraq expresses its full readiness to support all Iraqi banks that work to develop and enhance their performance in the field of governance, compliance, and combating money laundering in a way that positively reflects on the confidence of international and regional banks in them to contribute to strengthening the Iraqi banking system and the Iraqi economy in general.”