Monday, November 18, 2024

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FINANCIAL INCLUSION AND BANKING RESTRUCTURING, 19 NOV

 FINANCIAL INCLUSION AND BANKING RESTRUCTURING

The current government ‘s interest in the banking sector has become striking to the point that it can be said that the government is actually undertaking the “financial inclusion program, whose founders aim to deliver services to all regions of the country and include all societal and age groups with these services with the aim of encouraging all citizens to open bank accounts, and then withdraw the cash mass hoarded by the public, which the Central Bank estimates at about 70 percent of the issued cash, and circulate it in the banking arena activities, with the aim of raising credit rates and contributing to creating real development.

On this basis, the Prime Minister’s Office’s statement came in this regard recently, which referred to some of the challenges facing the efforts to reform the financial and banking system, as one of the priorities of the government program, while the statement identified a number of steps with the aim of confronting these challenges and ensuring the strengthening of confidence in the financial and banking sectors, facilitating the process of economic development, and raising indicators of financial inclusion.

However, the clear intersection between the government’s direction and the banking restructuring program indicates a number of observations that are directly related to these steps, such as the contradiction between what was stated in the content of these government steps, and the banks’ procedures regarding restructuring, as some government banks have taken steps.

The issue of restructuring, which was apparently limited to the merger of large numbers of branches of operating government banks, included branches on the outskirts of governorate centers and in the middle of them, which undermined the service area in which these banks operate. This completely intersects with the financial inclusion program, one of the tools of which the statement specified is “providing banking services to different segments of society, including districts and sub-districts in villages and rural areas.”

The steps mentioned in the statement, which are in the process of intensifying efforts, did not indicate the issue of the conditions previously set regarding raising the capital rates of banks to about 450 billion dinars by the end of December 2024, which obligated all private and government banks in this regard, otherwise these banks will be merged or liquidated, if we know that some government banks whose many branches have been merged still have a large number of branches, and these branches still provide their daily services to large numbers of the public, while they are exposed to merger or liquidation, even some administrations are unable to make some decisions related to developing services, because they realize that the fate of their banks will end in merger or liquidation, and this is what makes the intersection clear in the government’s direction regarding developing the performance of banks and expanding the scope of services with the restructuring program implemented by the relevant authorities.

MARKZ: DISCUSSION ABOUT THE PROJECT DELETE ZEROS IN IRAQ, 19 NOV

 DISCUSSION ABOUT THE PROJECT DELETE ZEROS IN IRAQ

MZ: In Iraq: “ Al Sayoud : A gathering of generations and political blocs will adopt a project from which a national government will emerge capable of crossing the country to safety” If you follow the theme of the articles in Iraq this weekend. They are making all the necessary moves to move into a new era in Iraq…..They are talking about how great and hopeful it is. 

MZ: Then there is a great discussion in Iraq about “The Deletion of zeros and the evaluation of the dinar”  He talks about how the delete the zeros works and how it can increase the value!!!. Here is an example they used to try to keep it really simple   

MZ: For example, suppose a foreign government has set 10 units of its currency to equal one US dollar. To revalue its currency, the government might change the rate to 5 units per dollar, making its currency twice as expensive when valued in US dollars as it was before. If the above-mentioned currency revaluation occurs, any assets held by a U.S. corporation in the foreign economy must be revalued. If the value of the asset held in a foreign currency was previously valued at $100,000 based on the old exchange rate, the revaluation requires a change of $200,000. This change reflects the new value of the foreign asset in the local currency by adjusting the revaluation of the relevant currency.

MZ: the project to delete the zeros is to raise the value. Thus needing lower denomination bills. They are spelling it out for us. 

MARKZ: yesterday’s test rates ( test rates popping up on dinar and dong...

AL-ALAQ DISCUSSES WITH HIS TURKISH COUNTERPART THE LAUNCH OF NEW MECHANISMS FOR TRADE TRANSFERS BETWEEN THE TWO COUNTRIES, 19 NOV

AL-ALAQ DISCUSSES WITH HIS TURKISH COUNTERPART THE LAUNCH OF NEW MECHANISMS FOR TRADE TRANSFERS BETWEEN THE TWO COUNTRIES

The Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, discussed with his Turkish counterpart, the Governor of the Central Bank of Iraq, Fatih Karahan, the launch of new direct mechanisms for trade transfers between the two countries.

The Central Bank’s media stated in a statement received by “Al-Eqtisad News” that “Al-Alaq and the accompanying delegation met with his counterpart, the Governor of the Turkish Central Bank, Fatih Karahan, in Istanbul.”

The two parties discussed “the launch of new direct mechanisms for trade transfers between Iraq and Türkiye, marking the beginning of a new phase in strengthening banking relations between the two neighboring countries.”

During the meeting, the governor stressed “cooperation in the field of settlements for users of Iraqi cards in Turkey, and urging Turkish banks to open accounts for Iraqi banks to expand financing channels for importing goods and services from neighboring Turkey.”

EXCERPTS FROM MARKZ

 EXCERPTS FROM MARKZ

Member: Mark, isn't it an insanely good sign that the Rupiah, Rial, and Dong had visible rates to us plebains?  I wonder why we see it on some sites and not on forex/others?

MZ: It’s an extremely good sign…and I have had some feedback from some in high levels who say “Foreign officials in Iraq have confirmed that yesterday’s test rates (Referring to Saturdays test rates popping up on dinar and dong) are 100% legit. “  I am starting to get excited. 

MZ: is it showing on some exchanges? Yes. Is it fully released? No   So it is showing there but not compete yet. 

Member: Nader says the IQD is on forex.  He said that the dinar is on forex and soon we can buy and sell in Banks

Member: What were the test rates they saw?

MZ:one of them was $.39 cents for dong and most saw rates of upper $3’s to lower $4’s on dinar. 

Member: We are hearing that the Bolivar will be about .30.

FIREFLY: THE IRAQI DINAR WILL SURPASS THE VALUE OF THE KUWAIT DINAR @DIN...