DINAR REVALUATION REPORT: Redemption Centers in Iraq to Collect Three Zeros Bill Notes 2024, 8 NOV

 Redemption Centers in Iraq to Collect Three Zeros Bill Notes 2024

The Central Bank of Iraq has announced plans to re-denominate the Iraqi Dinar by removing three zeroes from the currency. This strategic move aims to reduce transaction costs and make it easier for people to carry and use money. The re-denomination project, which has been in the works for several years, is close to completion and is expected to be passed to the ministerial council and Parliament for final approval. 1

Purpose and Benefits

The primary purpose of the re-denomination is to simplify financial transactions and improve the overall efficiency of the monetary system. By removing three zeroes, the Central Bank aims to: Reduce Transaction Costs: Making transactions more manageable and cost-effective. Ease of Use: People will find it easier to carry and use smaller denominations. Stabilize the Economy: The bank has already managed to reduce inflation rates from 34% to 3-4% and stabilize the exchange rate of the Iraqi Dinar over the past few years. 1

Redemption Centers

To facilitate the transition, the Central Bank will establish redemption centersacross Iraq. These centers will allow individuals and businesses to exchange their old three-zeros bill notes for the new denominations. The exact locations and operational details of these centers will be announced closer to the implementation date.

Impact on the Economy

Economists believe that the re-denomination will not significantly affect the purchasing power of the Iraqi Dinar. However, it is expected to bring several long-term benefits, such as: Enhanced Financial Stability: By reducing the money supply, the move can help maintain low inflation rates. Improved Payment Systems: The Central Bank is also moving towards an electronic payment system, which includes six banks and electronic deeds exchange. This will further modernize the financial infrastructure. 1

Timeline and Implementation

While the exact timeline for the re-denomination has not been officially announced, the project is in its final stages. The Central Bank is expected to provide more detailed information and guidelines soon. The transition will likely be gradual to ensure a smooth and orderly process.

Conclusion

The re-denomination of the Iraqi Dinar by removing three zeroes is a significant step towards modernizing Iraq's financial system. By establishing redemption centers and implementing electronic payment systems, the Central Bank aims to improve the efficiency and stability of the economy. This move is part of a broader strategy to enhance the purchasing power and international standing of the Iraqi Dinar.

TIDBIT FROM PIMPY, 8 NOV

  Pimpy  

The dinar is not going to happen today or the next week as far as I know but this is a pretty big step [the restrictions removed from foreign currency exchange] for them because this allows a lot of liquidity which is necessary inside of Iraq. 

 Liquidity has always been an issue for Iraq.  This will change that. 

 That means more businesses/people doing exchanges with the currencies.  A lot of liquidity in Iraq is what they need.

RV, Zim Bonds BY JULIAN ASSANGE: ' RATES ARE EXTREMELY HIGH" @DINARREVAL...

DINAR REVALUATION REPORT: Five Economic Pillars of Iraq in 2024, 8 NOV

 Five Economic Pillars of Iraq in 2024

Iraq, a country rich in natural resources but long affected by conflict and political instability, has been making strides to stabilize and diversify its economy. As of November 7, 2024, the five key economic pillars that define Iraq's status are:

Oil and Gas

Dominant Economic Sector

Oil remains the backbone of Iraq's economy, accounting for over 99% of exports, 85% of the government’s budget, and 42% of gross domestic product (GDP). 6 The sector's dominance exposes the country to macroeconomic volatility, but it also provides a significant revenue stream that has been crucial for recovery efforts.

Recent Developments

In 2021, government revenues surged by 73% year-over-year, driven by higher oil prices averaging $68.3/barrel. 6 These gains have helped turn the overall fiscal balance to a surplus of 5.3% of GDP in 2021, providing a buffer for economic stabilization and development initiatives.

Non-Oil Economy

Diversification Efforts

Despite the dominance of oil, Iraq has been making efforts to diversify its economy. The non-oil sector grew by over 6% in the first nine months of 2021, driven by the services sector as COVID-19 restrictions eased.  6 This growth highlights the potential for non-oil sectors to contribute to economic stability and job creation.

Challenges

However, attempts to diversify the economy and modernize the financial and banking sectors are hampered by political dynamics and corruption. 5 The private sector and foreign direct investment (FDI) remain underdeveloped, and the country struggles to enhance its export capacity, particularly in agriculture.

Labor Market and Social Protection

New National Strategy

Iraq has launched a new national strategy to reduce inequalities in the world of work, emphasizing inclusivity, equal opportunity, and social protection. 3 This strategy aims to create a more equitable and prosperous future by addressing issues such as unemployment, particularly among displaced populations, women, and informal workers.

Unemployment

As of January 2021, Iraq's unemployment rate was more than 10 percentage points higher than its pre-COVID-19 level of 12.7%. 6 The strategy seeks to reduce these high unemployment rates by fostering a more inclusive and equitable labor market.

Humanitarian and Development Needs

Protracted Needs

Iraq still faces significant humanitarian and development needs, including a complex political environment and a volatile security situation. 2 The country hosts over 300,000 refugees and asylum-seekers, primarily from Syria, and has an internally displaced population (IDPs) of 1.14 million. These populations face barriers to return and integration, including insecurity, lack of livelihood opportunities, and damaged housing.

Crisis Response

The Iraq Crisis Response Plan 2024 aims to support the government in developing inclusive strategies for recovery, peacebuilding, and stabilization. 6 The plan targets 670,000 people and requires $144.7 million in funding, highlighting the ongoing need for international support and collaboration.

Digital Media and Community Resilience

Digital Engagement

The Iraq Community Resilience Initiative (ICRI), funded by USAID, aims to support inclusive and stable communities through digital media. 1 With over 31 million digital media users in Iraq, there is a significant opportunity to bring communities together, encourage collaboration, and share positive narratives.

Grassroots Initiatives

Despite the challenges, grassroots initiatives and media activists have emerged, working to tell positive stories and counteract disinformation. 1 ICRI has awarded grants to local media activists and organizations, enabling the establishment and sustainability of credible social media channels.

TIDBIT FROM MARKZ, 8 NOV

 MarkZ 

  [via PDK] 

 Article: “Sudani congratulates Trump and vice President on winning the White House race”  Sudani believes it will bring stability to the middle east.

 “The election of the new speaker of Parliament will contribute to the legislation of important and obstructed laws”  I have a few folks in Iraq that are convinced that sitting the new speaker was important and now I know why. They specifically name the HydroCarbon Law in this article…The HCL!!!  There was a lot of meat to go with those potatoes.

MIKE BARA: "WE'VE GOT THE GREEN LIGHT" @DINARREVALUATION

Rafidain Bank: Implementing the comprehensive banking system in 48 branches, 8 NOV

 Rafidain Bank: Implementing the comprehensive banking system in 48 branches

11/7/2024

Baghdad /  Rafidain Bank announced the operation of 48 branches, so far, within its comprehensive banking system.

The bank stated in a statement: "The comprehensive banking system is a qualitative leap in the bank's path, as it supports digital transformation and enhances the bank's ability to efficiently meet the needs of wide segments of customers." He stressed

: "This continuous expansion will include more branches in the future, as part of a well-thought-out plan aimed at providing a modern banking experience that contributes to supporting the national economy and meeting the needs of society with distinguished and comprehensive banking services." LINK