Recently, we have been receiving several pieces of news that give indication that currencies will begin to float up this year.
Will they float to their real value in 2024?
This remains to be seen. It is more important that this year of transition be one whereby exchange rates are tested on the markets and weigh in their worth through the banking system against other currencies.
It is a process whereby the synchronization of the entire Global Economy is currently in play.
We already know that the Indian Rupee has come out and voiced that they expect their currency to trade against the US dollar at 80 to 82 cents by the end of the year. Many countries are expected to bring in their projections soon.
It is important that we develop strategies on what to do in exchanging our currencies as more news develops.
The Finance Committee headed by Atwan Al-Atwani and the presence of its members hosted on Sunday, 21/1/2024, Minister of Finance Taif Sami to discuss a number of important financial files based on the regulatory aspect.
Al-Atwani welcomed, according to the statement, {Al-Furat News} received a copy of it, at the beginning of the hosting of the Minister of Finance, stressing: “The importance of holding the meeting to discuss financial issues, spending, and completing the tables for the budget of 2024, in addition to the topics of added amounts for the purchase of energy, compensation of employees, examiners, and the implementation of projects included within the government plan,” adding that “there are meetings and field visits to institutions to see all the details.”
“The Finance Committee also discussed the possibility of diversifying non-oil revenues and not relying on oil revenues, and the need to move towards multiple revenues to achieve self-sufficiency and end the deficit, as well as the financial amounts for the year 2023,” the statement added.
For her part, the Minister of Finance presented an explanation on the procedures for financing institutions and implementing the tripartite budget after its publication in the Official Gazette, as well as the project financing and opening accounts to state departments, explaining that the financing of projects is carried out according to the allocations and listing requirements, stressing the importance of modifying the components and abuses, in coordination with the Ministry of Planning in addition to the subject of the region’s revenues.
The committee also listened to the problems facing the ministry in preparing the budget schedules for 2024, the plan to fill the deficit, paying foreign debts, financing institutions, and provincial projects, discussing the development of appropriate solutions, and the ministry took its role in finding alternatives.
The interventions of the members of the Finance Committee included the allocations of the provincial projects and how to include them in the tables of the budget 2024, in addition to the subject of the customs tariff, and the estimated price of oil according to the estimates, with the verification of non-oil revenues for the budget.
At the end of the meeting, the committee requested all data and details of the actual expense and deficit, through official letters, stressing the speedy preparation of budget schedules and sending them to the committee for review and vote.
"NPCI launches ASBA-like facility for secondary market"
The National Payments Corporation of India will begin it's beta testing of their new foreign currency exchange mechanism and more in their Secondary Market on January 1st, 2024.
This means that the actual transaction will only be completed when confirmation on both sides of a trade are confirmed. T+1 settlement processing will take place all in one day.
Only a select few countries have been chosen to test this Secondary Market. The US, Indonesia, Iraq, Vietnam, and a few other countries will be processing their new local currencies on this new digital payment system.
This new digital payment settlement mechanism will support the following:
* key stakeholders
* clearing corporations
* stock exchanges
* depositories
* stockbrokers
* banks
* UPI app providers
* And much more...
Now, we are expanding and testing the new system with several countries in January 2024.
Earth News / The head of the State of Law Coalition, Nuri al-Maliki, received in his office on Sunday, the Ambassador of the United States of America to Iraq Elena Romansky.
The two sides reviewed, according to a statement by Al-Maliki’s office and received by Earth News, “the future of bilateral relations between the two countries, as well as the escalation of tensions in the region and the repercussions of the Al-Aqsa Flood operation and Baghdad’s keenness on the need to end the Zionist aggression and open humanitarian corridors to enter aid.”
The head of the State of Law Coalition stressed “the importance of strengthening relations of friendship and cooperation, and continuing to sustain and develop them to serve the interests of the two friendly peoples,” pointing to “the need to activate the agreements concluded between the two countries, especially the Strategic Framework Agreement, which is consistent with the importance of the current stage.”
Nuri Al-Maliki referred to “the many crises facing the region, especially the events in occupied Palestine, Lebanon, the Red Sea, northern Syria and Iraq,” calling for “the speed of action to ease tension and end mutual attacks that may threaten the widening of the war.”
In turn, the US ambassador renewed her country’s support for the stability of Iraq, stressing “continuing dialogues between the two countries in order to promote partnership projects in various important and vital sectors.”
The IMF just recently ended their latest consultation with Iraq. They have been given a year-long assessment of their findings and follow-up procedures regarding their new economic reforms enacted earlier this year of 2023.
At this time, they have been given the green light to do the following:
"passthrough from the exchange rate revaluation"
Let's take a closer view as to what this means. "Exchange-rate pass-through (ERPT) is a measure of how responsive international prices are to changes in exchange rates. Formally, exchange-rate pass-through is the elasticity of local-currency import prices with respect to the local-currency price of foreign currency."
Let's put this in more simple terms. Iraq is about to allow the markets to determine their new exchange rates. And, they are about to execute this new declaration beginning the first of January in 2024 in the use of Dinar currency only in the International trade.