ECONOMIST: TECHNOLOGY HAS TRIUMPHED… 12 DAYS THAT RESHAPED THE MIDDLE EAST

ECONOMIST: TECHNOLOGY HAS TRIUMPHED… 12 DAYS THAT RESHAPED THE MIDDLE EAST

Economic expert Munar Al-Abidi said on Tuesday that the sole victor in the twelve-day battle was technology. It tipped the scales of the conflict, granted superiority, and whoever possessed it possessed the initiative and the ability to persevere and endure.

Al-Abidi stated in a blog post that in just twelve days, the face of the Middle East has changed in ways not seen in half a century, and may never be the same again.

It was not just a few days of escalation or tension, but a watershed moment that redrawn the map of influence and the balance of power in the region, and forced everyone—countries and peoples alike—to reconsider their positions, their alliances, and the way in which nations should be rebuilt.

He added, “These days have proven that no one emerges victorious from battles that rely less on reason than on emotions. The only victor in the twelve-day battle was technology; it tipped the balance of the conflict, it granted superiority, and whoever possessed it possessed the initiative and the ability to persevere and endure.”

The message is clear: It is no longer enough to raise slogans or feed our people with wishes. What we need today, Al-Obaidi said, more than ever is to rebuild our nations on the foundations of science, knowledge, and culture, to leave the arenas of futile conflict and the circles of internal division, and to believe in hard work as the only path to salvation and progress.

He continued, “These few days have held for us a true mirror in which we see our image clearly: Who are we? Where do we stand? What is our position in the new Middle East, which is now being reshaped by ideas and visions completely different from those that have dominated the region over the past five decades? It is a call to awaken, to understand the transformations around us, and to begin, with seriousness and awareness, to establish strong homelands that will not be broken by the winds of change.”

 

AJ : IRAQ's PARALLEL MARKET, PART . 1: "Iraq’s Parallel Market & Currency Reform: Why Unifying Exchange Rates Is Crucial"

 AJ

IRAQ's PARALLEL MARKET. I'm going to make this post into 2 parts... Here is Part 1 I'll post Part 2 tomorrow. The frist thing to know is the central bank of Iraq sets the exchange rate for the Iraqi Dinar, On February 7, 2023, Iraqi Central Bank adjusted the exchange rate of the dollar against the dinar, as follows: 1300 dinars per dollar, the purchase price from Ministry of Finance. 1,310 dinars per dollar is the selling price for banks. 1,320 dinars per dollar is the selling price by banks and non-banking financial institutions to the final beneficiar How this works The Ministry of Finance gets a preferential rate 1300 IQD/USD to facilitate government transactions. Banks buy dollars at 1310 IQD/USD and sell at 1320 IQD/USD, allowing a small profit margin to cover operational costs.Sell at 1320 IQD/USD to the public. So the offical rate to the public is 1320 IQD/USD 1. The CBI, led by Governor al-Allaq and its Board of Directors, analyzes the economy and proposes a new exchange rate 2. Then Iraqi Council of Ministers vote on the CBIs decison of a new exchage rate. This is the government’s executive body, led by PM al-Sudani and composed of his cabinet ministers. It sets national policy, including fiscal and economic policies, and has authority over major decisions impacting the economy, such as currency revaluation. 3. After it is approved by the Iraqi Council of Ministers The CBI’s management, led by its governor, implements the new rates and ensures they are enforced across the financial system. 4. The CBI announces the new rate. April 15th 2024 the WhiteHouse put out this joint statement. This was when PM Al-Sudani visted the Whitehouse in 2024 The United States and Iraq commit to strengthen their cooperation to achieve greater transparency and collaboration against money-laundering, financing terrorism, fraud, corruption, and sanctionable activity that could undermine the integrity of both countries’ financial systems. The two sides also committed to support the Central Bank of Iraq to fully wind down the wire auction mechanism by the end of 2024 and transition to direct correspondent relationships between Iraqi and international banks, a transformation that will connect Iraqi people and businesses with the international economy. The wire auction ended on December 29, 2024. Iraq banks transition to direct correspondent relationships between Iraqi and international banks for transfers abroad remittance, credits. However, the parallel market continued. Ending the parallel market first is considered essential to unify exchange rates, stabilize the economy, and restore government control over monetary policy. This step is to prevent distortions in trade, money smuggling investment, and public spending, ensuring economic reforms. From a past article... banking consultant Abdul Rahman Al-Shaikhli Explains Regarding the implementation of the project to remove zeros from the Iraqi currency, banking consultant Abdul Rahman Al-Shaikhli "the first factor that stood in the way of the project was the discrepancy between the official exchange rate (now 1332 dinars per dollar) and the parallel market exchange rate (now rising above 1500 dinars), which constituted an obstacle to the implementation of the project to remove zeros from the Iraqi currency" Below is "Quotes" from IMF Report Introducing a new currency is a complex process, one that Turkmenistan completed successfully For example, Turkmenistan redenominated its currency to introduce lower denomination notes. The first step in the Turkmen currency reform was to unify the exchange rate. In the past, because of a shortage of foreign exchange, there had been a dual exchange rate system made up of an official rate pegged at 5,200 manat per U.S. dollar and an informal parallel market rate of about 23,000 manat per U.S. dollar. A major gap between the official exchange rate and the informal or market rate meant that Turkmenistan's price system had become complex and inefficient. This, in turn, created complexities in accounting and statistical reporting. So the government decided to introduce a new currency before launching market-oriented reforms. Currency reform was regarded as the foundation for further strengthening the macroeconomic framework, particularly monetary transmission: the more the population relies on the local currency rather than U.S. dollars, the more control the government and Central bank has over macroeconomic policy. I know this is a long post... so, I'll post the next part, in Part 2 tomorrow. Here is a link to the the full IMF Report. I've posted this before. If you want to know how a country redenominated its currency. Check it out https://imf.org/external/pubs/ft/fandd/2013/12/lonnberg.htm

AL-SUDANI: “MADE IN IRAQ” IS A NATIONAL PROJECT WE ARE COUNTING ON

AL-SUDANI: “MADE IN IRAQ” IS A NATIONAL PROJECT WE ARE COUNTING ON

Prime Minister Mohammed Shia al-Sudani inaugurated, on Wednesday, the Construction Cooperation Center (Construction Basket), which was implemented by the General Company for Construction Materials Trade at the Ministry of Trade, in partnership with the private sector.

During the opening ceremony, Al-Sudani emphasized that the project contributes to providing building materials at competitive prices and convenient installments to citizens, particularly targeted groups such as retirees, those covered by the social security network, martyrs’ families, and employees.

The Prime Minister praised the efforts of the Ministry of Trade and those behind the project, considering the “Made in Iraq” concept a working method for restoring prestige to national industry, given the “real revolution” the construction sector is witnessing, both through state projects and at the investment level. Al-Sudani directed a coordination workshop to be held among relevant authorities to establish a mechanism enabling citizens to obtain loans and building permits, while also securing the construction materials they need to build a home.

He pointed out that the government has adopted a cooperative approach, with public sector participation, to control commodity prices, starting with food items through the “hypermarket” project, and now in the construction sector through the “construction basket.”

He explained that the project provides construction materials in accordance with Iraqi standard specifications and supports housing projects by granting investment licenses for approximately one million housing units, in addition to initiatives by the Housing Fund and the Real Estate Bank.

He explained that sovereign guarantees for the private sector focused on industrial sectors, with facilities for investors in constructing various factories. He emphasized the continuation of work with the Federation of Industries and Contractors, and the empowerment of the private sector as a partner in meeting market needs and providing job opportunities.

Al-Sudani concluded by pointing out the need to extend this experience to other governorates, starting with Nineveh and Basra.

KERRIE ANN THORNTON:Just get ready, review your projects, get your clothes out!! #iqd #iraqidinar

 

SUDANESE ADVISOR REVEALS THE SECRET OF PRICE STABILITY: THREE EFFECTIVE GOVERNMENT TOOLS

SUDANESE ADVISOR REVEALS THE SECRET OF PRICE STABILITY: THREE EFFECTIVE GOVERNMENT TOOLS

The Prime Minister’s financial and economic advisor, Mazhar Mohammed Salih, revealed the main reasons behind price stability in Iraq despite global economic challenges.

Saleh told Al-Furat News that: “Iraq enjoys a high level of price discipline, as the government has adopted three effective tools to manage the economic and price file in a precise and harmonious manner, represented by fiscal policy, direct support for goods and services, and coordinated management between state institutions. ”

He explained that “fiscal policy, in particular, contributes to supporting prices through the general budget by a percentage exceeding 13% of the gross domestic product, which is one of the highest support rates in the world,” indicating that this “is positively reflected in the general price level and contributes to a decline in annual inflation growth rates.”

Saleh pointed out that “this support includes vital areas that affect the lives of citizens, including fuel subsidies, support for farmers, as well as other forms of support in the food and medicine basket and basic government services.”

TIDBIT FROM MARKZ: THE Dinar is on Forex and Bloomberg !!!

 MarkZ   

via PDK]  

Comment: So is it true the Dinar is on Forex and Bloomberg at this point? 

Yes still at 1310 but being up and live for the first time in 22 years would be an incredible preemptive step towards the RI and REER!  

 MarkZ:  I know there are lots of rumors out …and yes we have seen some crazy rates popping again overnight last night.   A systems test of some sort?

FIREFLY: There was a reason why the rate was protected in the Gazette for so long!! #iqd