AL-SUDANI ANNOUNCED PLANS TO ENHANCE THE VALUE OF THE DINAR@DINARREVALUA...

Prime Minister arrives in New York, 23 SEPT

  Prime Minister arrives in New York

Prime Minister Mohammed Shia Al-Sudani arrived in New York.

The Prime Minister's Media Office stated in a statement received by the Iraqi News Agency (INA), that "Prime Minister Mohammed Shia al-Sudani arrived in New York to participate in the meetings of the 79th session of the United Nations General Assembly."

The Prime Minister's Media Office stated in a statement issued earlier that the Prime Minister will deliver Iraq's speech before the General Assembly, and will also deliver a speech at the Future Summit, in which many heads of state and presidents will participate, and which is concerned with enhancing cooperation, facing challenges, and affirming commitments.

He continued, "He will also hold a series of meetings and dialogues with a number of leaders and presidents of sisterly and friendly countries, and heads of participating delegations, in addition to meeting with the Secretary-General of the United Nations, and a number of officials of international and UN organizations and bodies."  link

MILITIAMAN: ABOUT THE GAZETTE CONTAINING THE NEW BUDGET IS NOT THERE !!!, 23 SEPT

  Militia Man  

[Gazette Issue] 4782 [supposedly containing the new budget in June] is not there you guys...If they're going to do Article 140 and you're going to have a hydrocarbon law you're going to need to have an official exchange rate...

  Iraq's going to be going international in the near future.  They are already under the process 100% as far as I'm concerned...  . 

 I looked today on the Ministry of Judiciary, their official gazette, and 4782 [The skipped issue that's potentially holding the budget] is not there.  Again, there's a reason for it it. Does it mean it's not done?  I don't know.  But it's not there...It doesn't mean it's not going to be.

NOVEMBER 2024 TARGET DATE! FOR BEGIN THE PROJECT DELETE ZEROS

DINAR REVALUATION REPORT: Reducing Dependence on the Dollar and Removing Zeros from the Dinar: Iraq's 2024 Strategy, 23 SEPT

 Reducing Dependence on the Dollar and Removing Zeros from the Dinar: Iraq's 2024 Strategy

Iraq's Central Bank Governor, Ali Al-Alaq, has emphasized the bank's ongoing review of the deletion of zeros from the Iraqi dinar. 1 This move is part of a broader strategy to revalue the national currency and simplify financial transactions. 2 By removing specific zeros from the nominal value of the currency, Iraq aims to make its dinar appear less inflationary and more stable. 3

The reduction of reliance on the US dollar in commercial transactions is a key aspect of this strategy. 3 By increasing holdings of foreign exchange and gold reserves, the Central Bank of Iraq is strengthening the country's financial position and stability, enhancing its ability to confront potential economic crises. 2

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Removing Zeros: A Closer Look

Removing zeros from the currency involves a redenomination process that adjusts the face value of banknotes. This process is not merely cosmetic; it reflects the Central Bank's effort to combat inflation and improve the dinar's standing in the international market. 1 The goal is to create a more efficient monetary system, where transactions are easier to conduct and the currency's value is more stable. 2

Enhancing Confidence in the Iraqi Dinar

Al-Alaq has confirmed that the Central Bank has responded to global economic challenges by amending monetary policies in line with the international situation. 3These adjustments are designed to enhance confidence in the Iraqi dinar and prevent a sharp decline in its value. By ensuring the dinar's stability, the Central Bank is working to maintain economic stability and improve the country's financial health.

In summary, Iraq's strategy to reduce dependence on the dollar and remove zeros from the dinar reflects a proactive approach to enhance the country's financial stability and improve the dinar's international standing. By simplifying financial transactions and revaluing the currency, Iraq is positioning itself for stronger economic growth and resilience in the face of global economic challenges.

What does it mean to reduce dependence on the dollar and remove zeros from the dinar?, 23 SEPT

 Countries remove zeros from their currency to revalue the national currency and simplify financial transactions. This is done by removing a specific number of zeros from the nominal value of the currency, making it appear less inflationary and more stable. This is how the Governor of the Central Bank of Iraq, Ali Al-Alaq, summarized the issue.

Al-Alaq confirmed yesterday the reduction of reliance on the US dollar in commercial transactions, adding that the project to delete zeros in Iraq is subject to continuous review and study at the bank.

Al-Alaq said, in a statement followed by the “Iraq Observer” agency, that “the Central Bank responded to global economic challenges such as rising energy and raw material prices, by amending some monetary policies in line with the international situation and to enhance confidence in the Iraqi dinar and prevent a sharp decline in its value.”

He added, "The Central Bank of Iraq has increased its holdings of foreign exchange and gold reserves to strengthen the country's financial position and financial stability in order to enhance its ability to confront potential economic crises."

Local bank accounts

Regarding the steps taken to address the dollar’s ​​rising crisis, Al-Alaq said, “The Central Bank of Iraq has created new mechanisms to cover local banks’ accounts with their senders in other currencies (Chinese yuan, Indian rupee, euro, and UAE dirham) in addition to the dolla r, which has reduced reliance on the US currency in commercial transactions for these banks’ clients, while the Central Bank seeks to withdraw excess liquidity in the economy that puts pressure on the exchange rate and to prevent the exported currency from growing in an undesirable manner.”

Regarding the country's foreign reserves, the Central Bank Governor explained that "foreign exchange reserves are the tool used by all central banks to maintain the stability of the local currency exchange rate against foreign currencies, as well as to reduce exposure to external crises by maintaining liquidity in foreign currency to absorb shocks in times of crisis."

“According to the latest data on the level of foreign reserves adequacy, the Central Bank of Iraq’s foreign reserves cover 83.62% of the broad money supply, i.e. covering the cost of importing 15 months, while the global standard rate is 20%, covering 6 months of importing,” according to Al-Alaq.

He pointed out that "the sanctions imposed on banks are related to the decision to ban dealing in dollars, as the banks were not included in the sanctions list issued by the Office of Foreign Assets Control, and therefore the banks' activities continue, according to the applicable procedures and in all currencies except the dollar."

Regarding the situation of the Iraqi banking sector, Al-Alaq said that it “is experiencing a state of stability, as government banks still control approximately 79% of the assets of the total banking sector, compared to 21% for private banks.”

Private sector

While observers believe that the development road project needs 5 years to complete, they pointed out that Iraq will end the unemployment problem and provide jobs for graduates and the unemployed alike.

They said: “The most important thing is for Iraq to move away from the rentier economy that has frozen other sectors despite the abundance of local production and the wheel of reconstruction turning in all of Iraq, which means that the government is taking the right step in diversifying sources of income.”

Economic expert Abdul Rahman Al-Shaikhli said: “Our economy will not see the light of day as long as its two components, “oil and monetary,” are held hostage by the US Treasury and the Federal Reserve Bank. He considered that in order not to jump over the reality, we must look at things as they are, without hanging them on any scapegoat of truth.”

Al-Sheikhly told the “Iraq Observer” agency: “In order to get rid of this dominance, we must work on diversifying the sources of funding for the budget, giving free rein to the “clean” private sector, and limiting economic activities “financial and monetary” to honest hands under strict supervision, especially Iraq’s revenues from customs, taxes and fees, and preventing their exploitation by the corrupt.”

The financial and economic expert explained: “All of this is possible and it is possible to reform our economic system naturally if we can get rid of foreign hegemony.”

Keeping up with developments

On the sidelines of the electronic payment conference in the middle of this month: “The Governor of the Central Bank, Ali Al-Alaq, confirmed that the number of applicants to establish digital banks “exceeded 70 banks,” noting that “digital banks are widely spread in the world and the volume of financial transactions in them is around 5 trillion dollars annually.”

Al-Alaq said: “Digital banks are widespread in the world, and their volume of funds ranges from 5 to 7 trillion annually.”

He added: “We conducted in-depth studies until we reached the point of setting rules for licensing these digital banks.”

He pointed out: “We were surprised by the number of applicants to digital banks, which reached 60 to 70 banks, and we are in the process of studying the applicants’ requests.”

He continued: “We are keeping up with developments and moving towards progress, and there is communication with many external and internal parties, and it is on two levels that depend on the banking sector and the capabilities of the Central Bank to keep up with development and contribute to developing various programs and applications,” stressing that “the Iraqi cadre is distinguished by its ability to adapt and develop.”

He pointed out that “the Central Bank has important contracts with specialized companies, and chooses international companies to develop and set up programs, in addition to international cooperation,” noting that “the Central Bank has effective relations with international and global banks, in addition to electronic payment companies, as well as its relationship with central banks, and it has continuous movement in cooperation with important banks.”  link

IRAQ BOOTS ON THE GROUND REPORT BY FIREFLY

  Frank26 

  [Iraq boots-on-the-ground report] 

FIREFLY: Sudani back on TV talking about he has formed committee to align Iraqi banks with international standards.  

FRANK:  Why would you  be aligned with International standards?  You're a program rate.  

  FIREFLY:Alaq on TV now.  He says even with the low oil prices we are stable and inflation in our county is low because we have strong reserves and we have non-oil revenues efficient enough now to also contribute...Then he talked again that the oil price drops have nothing to do with a high exchange rate...  

FRANK:  ...He's trying to reassure you that the American dollar is not coming back in any shape or form into your country...Your currency is the future and its new exchange rate has been a success.  That's why you're about to explode with your economic reforms...