A Reading Of The Financial And Monetary Policies Of The International Monetary Fund Report - May 2024

A Reading Of The Financial And Monetary Policies Of The International Monetary Fund Report - May 2024
 
Ali Daadoush  Economy News – Baghdad  The report showed important data for the Iraqi economy during the period (2020-2023), actual and forecasts for the year 2024, and then predictions of the course of economic policy during the period (2025-2029), and
 
according to the data of the main table listed below, the data for Special Drawing Rights (SDR), inflation, and crude oil production were stable. To some extent,
 
but the other data were unstable, and some of them even portend danger in the coming years, especially for financial policy, in which the extent of the government’s intervention in the economy became apparent in terms of large expenditures, specifically the salaries, wages, and retirement sections, as well as the rise in public debt to levels of the danger zone, which are extremely high. (60%) of the gross domestic product.
 
Although oil output represents about 40% of the real gross domestic product, non-oil output represents only a small portion of total revenues and exports, making Iraq highly vulnerable to fluctuations in oil prices.
 
Moreover, the public sector wage bill (under increasing pressure from compulsory employment policies) remains the highest in the region.

This challenge is exacerbated by the lack of development in the private sector, which is hampered by factors including a large state footprint, corruption, bureaucracy, underdeveloped infrastructure, and poor access to credit.
 
Unemployment rates remain high and labor force participation levels are low, especially among youth and women, and although domestic stability has improved, public reforms still lag in key areas.
 PIC

 
*The red color indicates a danger facing the Iraqi economy, the
yellow color indicates relative stability, and the
green color indicates economic growth.
 

First: economic policy discussions
 
Current policies significantly increase the dependence of the Iraqi economy on oil prices, and
 
to protect macroeconomic stability and sustainability, there must be financial reform (adjustment) that focuses on controlling the wage bill and mobilizing non-oil tax revenues while protecting vital social and investment needs, and this must be complemented by accelerating structural reforms. To stimulate private sector development, including through labor market reforms, restructuring of state-owned banks (Rafidain and Al-Rasheed in particular) and continued anti-corruption efforts.
 
Second: Financial policy
 
The fiscal situation is expected to deteriorate in 2024 and beyond, increasing vulnerabilities, and
 
although IMF staff expect only partial implementation of the investment budget due to capacity constraints, total government spending is expected to remain increasing by 3.8% of GDP in 2024, of which 3.4% is due to higher salaries and pensions (including transfers to the KRG).
 
Therefore, the deficit is expected to rise to about 7.6% of GDP in 2024 due to the increase in government expenditures, and
 
in light of the weakness of non-oil revenues and the continued dependence on oil revenues, it is expected that the fiscal deficit will deepen further under the assumption that there are no changes in fiscal policy,
 
Which forces the government to rely on cash financing, which means the central bank financing government expenditures in exchange for securities (discounting treasury transfers).
 
This increases government debt from 44% of GDP at the end of 2023 to more than 86% by 2029, resulting in a high risk signal in the medium term.
 
Fiscal policy reform requires a number of the following measures, including
 
     (mobilizing non-oil revenues and
     restrictions on current expenditures, while
     protecting capital investment and perhaps
     expanding targeted social transfers).
 
Provisional return estimates indicate that the following list of measures could provide sufficient savings:
 
A - The focus of any adjustment strategy should be to find savings in the wage bill.
 
Savings could start with phasing out mandatory staffing requirements, and could be followed up with an attrition-based strategy to adjust the size of government staffing.

Given the role of public sector employment in the Iraqi social contract and the large existing gender employment gaps, such measures must be gender balanced and supported by labor market reform to expand private sector employment opportunities.
 
B- It must be a mobilization of additional non-oil revenues.
 
By removing tax exemptions on profitable state institutions, reforming the salary tax and reviewing customs duties in the near term.
 
Material increases in revenues can be achieved by making payroll taxes more progressive, subjecting public sector allowances to tax, which can be as large as salaries, and personal income tax being withheld at source.
 
A review of the customs tariff structure, along with unification of customs regulations with the KRG, and the imposition of new duties (for example, on cigarettes) and sales taxes on luxury goods could also contribute to non-oil revenues.
 
Targeted technical cooperation in tax policy can help enrich and develop the design of these revenue mobilization measures.
 
Further improvements in revenue and customs administration could also bring in additional revenue.
 
The authorities should build on the remarkable progress achieved in the ASYCUDA system trial by expanding its use at other border control points and adjusting customs operations in accordance with the new system.
 
In the medium term, imposing a general sales tax or value-added tax could boost non-oil revenues.
 
Third: Monetary policy
 
The Central Bank of Iraq has resorted to using a tight monetary policy to improve the liquidity management framework, and
 
further liquidity absorption may be needed to support the monetary policy transition.
 
In response to the sharp increase in excess liquidity, the central bank raised the policy rate from 4% to about 7.5% and reduced funds for subsidized lending initiatives in mid-2023.
 
However, the penetration of the policy rate was weak due to excess liquidity and lack of market incentives in financial intermediaries. Especially in government banks.

The reserve requirement was also increased from 15% to 18% and the 14-day CBI billing facility was introduced.
 
After these measures by the monetary authority, the liquidity surplus decreased initially, but it rose again in August 2023 as a result of the implementation of the general budget,
 
which means the need for more measures to absorb the liquidity surplus, including improving coordination between fiscal and monetary policy towards achieving The goal of price stability.
 
As the fiscal policy is expansionary through the huge volume of expenditures, it is offset by a contractionary monetary policy through raising interest rates to confront the surplus liquidity in the economy.
 
Therefore, consideration can be given to increasing reserve require :heart: ments on government deposits, which will help absorb excess liquidity in government banks without harming private banks.
 
Organizing and securing correspondent banking relationships is crucial to ensuring an easy transition to the new trade finance system.
 
The authorities must intensify efforts to modernize the banking sector to facilitate the establishment of correspondent banking relationships.
 
Trade financing before 2023 was done through financial consolidation, but
 
after the introduction of the compliance platform, trade financing changed, and the
 
Iraqi Central Bank pre-financed dollar accounts abroad for local commercial banks that had correspondent banking relationships with Citi Bank for trade financing.
 
This allowed an increase in the share of cross-border payments settled through commercial banks.
 
At the beginning of 2025, the Central Bank of Iraq plans to fully transition to a supervisory role in settling cross-border payments (import financing).
 
To facilitate this transition, the Central Bank of Iraq has assisted private banks in securing correspondent banking relationships, including providing guidance on accrediting and evaluating banks in line with best practices. International.
 
As of the writing of the article, (6) banks have established correspondent relationships with American banks, and
 
many others have correspondent banking relationships with non-American banks.  

Strengthening these efforts is essential to ensure a successful transition to the new trade finance system.
 
In addition, monetary policy has achieved an important breakthrough in expanding the scope of digital payments, as
 
many measures have been taken to promote digital payments, including
 
     expanding the use of point-of-sale devices,
     obligating the use of electronic payment cards in certain transactions such as purchasing fuel, and
     raising transaction ceilings at ATMs.
     Automated bank cards and
     reduced bank fees.
 
These efforts are welcome and will help reduce Iraq's dependence on cash and improve financial inclusion, especially for women whose access to financial services may be restricted due to limited mobility and other obstacles.
 
Monetary policy also worked to integrate the banking sector, as the
 
Central Bank took a decision to increase the minimum banking capital requirements from 250 to 400 billion Iraqi dinars.
 
Banks (many of which are small) will either have to inject more capital or submit an M&A plan by the beginning of 2025, and
 
careful planning and public communication will be critical to achieving the reform goal of improving the efficiency and competitiveness of the private banking sector without creating a From uncertainty about the banks' viability.
 
However, the implementation of core banking systems, certification of previous financial statements and amendment of regulations to strengthen the governance of state banks remain weak, and the
 
slow progress in reforming state banks hampers the effective allocation of credit and transmission of monetary policy.
 
The authorities must continue to strengthen the AML/CFT framework and its effectiveness, including in the banking sector.
 
These efforts should be guided by the priority actions emerging from the MENAFATF Mutual Evaluation which will conclude in the third quarter of 2024.
 
Once key areas for further improvement have been identified, seeking more targeted technical assistance can Helps support these efforts.
 
views 621   05/17/2024 - https://economy-news.net/content.php?id=43504   

To read more current and reliable Iraqi news please visit :  https://www.bondladyscorner.com/

“Tidbits From TNT” Sunday 5-19-2024

TNT:

Tishwash:  Al-Sudani will visit Doha tomorrow to participate in the World Security Forum

A political source reported today, Sunday (May 19, 2024), the visit of Prime Minister Muhammad Shiaa Al-Sudani to the Qatari capital, Doha.

The source told "Baghdad Al-Youm", "Prime Minister Muhammad Shiaa Al-Sudani will head tomorrow, Monday, to the Qatari capital, Doha."

He added, "The reason for the visit is to participate in the 2024 World Security Forum."

The activities of the Global Security Forum will begin tomorrow in Doha, and will continue until the 22nd of this month with broad participation from officials, decision makers and policy makers.

The forum witnesses in-depth discussions on many sensitive issues related to global security, with the aim of addressing and discussing the challenges and opportunities posed by the interconnected world   link

Tishwash:  Iraqi Parliament adjourns amid chaos: Failure to elect Speaker leads to physical altercations

As speculated, and in a recurring scenario, the Iraqi Parliament adjourned its session on Saturday evening to an unspecified date after failing to reach a decisive third round in the election of its president.

The competition remained intense between the Siyada bloc’s Salem Al-Issawi and the Taqadum Bloc-backed Mahmoud Al-Mashhadani.

The scene did not differ much from January 3, 2024, as leaked by MPs about today's session, marked by verbal altercations, and physical scuffles, reminiscent of events witnessed and reported five months ago, orchestrated by members of the Taqadum Party under the leadership of Mohammed Al-Halbousi.

MPs' smartphones captured heated verbal exchanges and physical confrontations between members of the Taqadum Party and colleagues from other blocs over the election of the parliament's president.

Mishaan al-Jubouri, a leader in the Siyada Party, posted on the X, " When the quorum reached 190 deputies, Taqadum’s MPs set up a barrier between the seats and the presidency platform."

Al-Jubouri added that "MP Haibat Al-Halbousi from Taqadum assaulted Muthanna Al-Samarrai, the head of the Azm bloc, prompting MP Ahmed al-Jubouri to strike Haibat."

This incident highlights the tensions and physical confrontations that marred the proceedings during the parliament's session.

Prior to this, MPs from Taqadum demanded amendments to the parliament's internal regulations before proceeding with the voting round, fearing Salem Al-Issawi's potential victory in the third round, according to a parliamentary source.

While the quorum was complete, several Taqadum MPs opposed proceeding with the vote unless the internal regulations of the parliament were amended.

These demands led to chaos inside the council, escalating later into physical brawls and verbal abuse between MPs from the Taqadum Party and others from different blocs, as shown in leaked footage.

Yet again, the Iraqi Parliament failed to elect a new president in its second round of voting, which saw intense competition between Al-Issawii and Al-Mashhadani. The former garnered 158 votes while the latter received 137 votes.

Against the backdrop of this vote convergence, a state of division prevailed among political blocs. The Siyada and Al-Azm, alongside others aligned with them, as well as MPs supporting Salem Al-Issawi, insisted on continuing the session and initiating a third round to elect a new parliament president.

However, other blocs, including the State of Law, Taqadum, and Al-Sadara, supporting Mahmoud Al-Mashhadani for the parliament presidency, pushed for postponing the session to a later date, according to a parliamentary source.

Notably, on November 14, 2023, the Federal Supreme Court, the highest judicial authority in Iraq, decided to end the membership of Parliament Speaker Mohammed al-Halbousi. Then, the Iraqi Parliament officially terminated his membership on November 21, 2023.

On January 13, the Iraqi Parliament held an extraordinary session to choose the new Speaker. However, due to verbal altercations inside the council hall, the session was adjourned without completing the election process.

Nearly half a year after the dismissal of Al-Halbousi, the parliamentary council has again failed, for the fifth time, to settle the issue, thereby stalling the enactment of crucial legislation. link 

************

CandyKisses:  Cabinet holds extraordinary session to discuss budget tables for 2024

Shafaq News / The Council of Ministers held, on Sunday, an extraordinary session chaired by Prime Minister Mohamed Shia Al-Sudani to discuss the tables of the federal budget for the year 2024.

This session comes as Al-Sudani is scheduled to head tomorrow, Monday, to the Qatari capital, Doha, to participate in the Global Security Forum for the year 2024.

At the end of April, Acting Speaker of the House of Representatives Mohsen al-Mandalawi agreed with Prime Minister Mohamed Shia al-Sudani on the need to complete the schedules of the 2024 budget law and expedite sending them to the House of Representatives for discussion and voting, as they are related to the lives of citizens and focus on investment spending for new projects.

In the meantime, the Ministry of Finance referred to the controls contained in the circular of the Budget Department No. 69333 on 24/4/2024 to all ministries, which must be taken into account when approaching the department for the following purposes:

● Transfer of services from one destination to another.

• Request for a grade and job title on political segregation.

● Change job titles.

● Change the address of the unauthorized certificate upon appointment.

● Marking variables: (promotion / calculation of the certificate in accordance with Law No. 103 of 2012 / calculation of the duration of the contract and wage / previous services, press service and service of practicing the legal profession).

● Indication of the period of calculation of the political chapter.

● Promotion to the position of expert.

● Marking of variables of self-financing circles.

************

Tishwash:  Paying off external debt is a step to promote stability and recovery

Experts in the field of economics expressed their confidence in the economic and financial reform steps undertaken by the current government under the direct supervision and guidance of Prime Minister Muhammad Shiaa Al-Sudani, and while they pointed out that Iraq’s payment of its foreign debts is a supportive step for financial and economic stability and moving towards recovery, they called for Accelerating the steps to move away from the framework of the “mono-rentier economy” towards a multi-resource economy.

The head of the “Osoul” Foundation for Economic and Sustainable Development, Khaled Al-Jabri, said in an interview with “Al-Sabah”: “Iraq’s payment of all its debts to the International Monetary Fund is a positive step towards enhancing economic stability and improving the country’s financial situation,” indicating that “this achievement has implications.” “There are multiple impacts on the Iraqi economy, in terms of improving the credit rating, as repaying debt enhances Iraq’s credit rating, which may reduce borrowing costs in the future, and it also reflects the country’s ability to fulfill its financial obligations, which increases the confidence of international lenders and investors.”

He added, “Enhancing international confidence confirms Iraq’s commitment to financial and economic reforms and can attract more foreign investments, as investors see that the financial environment has become more stable, and that the financial resources (money) that were used to repay debts can now be allocated to development projects.” And infrastructure, and can contribute to improving public services and increasing spending on health and education.”

Today, Thursday, the Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, announced that Iraq has fully repaid all loans provided by the International Monetary Fund since 2003, noting that their total did not exceed 8 billion dollars.
The head of the Al-Sharq Center for Strategic Studies and Information, Ali Mahdi Al-Araji, explained in an interview with “Al-Sabah” that “Iraq’s total debt amounts to about 70 billion dollars, divided into an internal debt worth 50 billion dollars scheduled between the Iraqi banking system and the three government banks (Al-Rasheed, Al-Rafidain, and Al-Basra). Iraqi Trade), and the other part is an external debt amounting to 20 billion dollars, meaning that in total it constitutes only 35 percent of the country’s gross domestic product.

He explained, “Iraq - as it is known - is a rentier country that depends on oil, and this is offset by a significant real exhaustion of the state budget estimated at $42 billion that goes annually between job salaries, retirement, and social care. Perhaps we will face in the future what is called (the Dutch disease), where reliance on... Natural resources and the collapse or decline of the industrial side.

Al-Araji expressed his confidence in “the great efforts of Prime Minister Muhammad Shiaa Al-Sudani to resolve the financial crises in Iraq,” stressing that “we find them to be good steps. There must be a wise administration that controls the country’s cash reserves and seeks to achieve harmony and balance between operational and investment expenses and... Its imports, and repairing the deficit in the trade balance, budget, and payments, to avoid any financial crisis that may afflict the country.”  link

Mot: .... Finally!! --- Here Weeeeee - Goooooooooo!!! ((( I Hope )))

Iraq Economic News and Points to Ponder Late Saturday Evening 5-18-24

Iraq Economic News and Points to Ponder Late Saturday Evening  5-18-24

An economist warns of the worsening of Forex trade.. “It is being exploited to smuggle the dollar.”

May 16   Information/private..   Economic expert Nabil Al-Marsoumi stressed today, Thursday, the  necessity of adopting legal legislation to regulate the worsening Forex trade in Iraq, adding that it could be used to smuggle hard currency abroad.  Al-Marsawi said in an interview with the Maalouma Agency,

“There are many segments of society that have begun to use it after opening public Forex trading offices,” noting that “leaving things loose in this way will make them exploited in the file of money laundering and corruption.”  He continued, "The operation is large and has included trade in gold, oil, and the dollar, and there are no accurate statistics for it yet," pointing out that  "the matter is not limited to large capitals, but even employees and people with middle income." 

He continued,  "The escalation of such operations will contribute to the depletion of the country's financial and economic situation," pointing out that  "it is possible that this trade will be used to smuggle hard currency abroad."

 In an interview with the Al-Ma’louma Agency, Ali Al-Zubaidi, a member of the Al-Fateh Alliance, called for the need for the government and the central bank to control the currency selling platform and not other countries, while he stressed that the  high rates of remittances through Forex trading represent the other side of money laundering. Ended 25/Y  

 https://almaalomah.me/news/64733/economy/اقتصادي-يحذر-من-تفاقم-تجارة-الفوركس-تستغل-لتهريب-الدولار

Forex Trading"... A Gateway To Money Laundering And Corruption Or Smuggling Of Green Currencies? 

 May 16   Information / private..   In light of the lack of financial oversight and excessive openness in many files,

Forex trade is entering forcefully, with frightening numbers of digital money transfers reaching billions of dollars annually, according to actual economic reports and studies, amid warnings of its deterioration to greater proportions that contribute to the smuggling of hard currency abroad.

 According to observers, this trade was not limited only to those with huge capital, but also reached middle-income people and employees, and

it could be exploited for money laundering and corruption given the lack of clear legislation and legal materials for it.

 *Money Laundering!

Speaking about this file, Ali Al-Zubaidi, a member of the Al-Fateh Alliance, calls for the

 need for the government and the central bank to control the currency selling platform and not other countries, while he stressed that the

 high rates of remittances through Forex trading represent the other side of money laundering.

 Al-Zubaidi said in an interview with the Maalouma Agency,

“The continued entry and exit of money without oversight or accountability affects political and societal stability,” noting that “tightening control over transfers to banks will end many financial violations.” 

He continues,  "We do not know if there are legal provisions that allow making external transfers through Forex trading,"

calling on "the government to impose its control over the border crossings and prevent the smuggling operations that occur there."

Al-Zubaidi continues his speech:

 “Most of the illegal and criminal transactions are carried out through the Forex transfer system,” pointing out that

 “the high rates of transfers through Forex represent the other side of money laundering.”

 *Dollar Smuggling

In addition, economic expert Nabil Al-Marsoumi stresses the

necessity of adopting legal legislation to regulate the worsening Forex trade in Iraq, adding that it could be used to smuggle hard currency abroad.

 Al-Marsawi said in an interview with the Maalouma Agency,

“There are many segments of society that have begun to use it after opening public Forex trading offices,” noting that

 “leaving things loose in this way will make them exploited in the file of money laundering and corruption.” He continues,

"The operation is large and has included trade in gold, oil, and the dollar, and

there are no accurate statistics for it yet," pointing out that

 "the matter is not limited to large capitals, but even employees and people with middle income."

He added,

 "The escalation of such operations will contribute to the depletion of the country's financial and economic situation," pointing out that

 "it is possible that this trade will be used to smuggle hard currency abroad."

 A report confirms, according to studies conducted, that Forex trade in Iraq amounts to more than $100 billion annually with money far from state control, marred by fraud, money laundering, and illegal operations that link young people to illusory dreams of quick and easy wealth. Ended 25/Y    

https://almaalomah.me/news/64735/economy/تجارة-الفوركس-باب-لغسيل-الاموال-والفساد-ام-تهريب-العملة-الحض    

Disclosure Of Draft Laws To Develop The Banking Sector

  May 16 Information / Baghdad..   Representative Mahma Khalil revealed today, Thursday, the

 imminent enactment of several laws to develop the banking system in Iraq. Khalil told Al-Maalouma, “The

 banking sector suffers from neglect compared to international banks, indicating that

rehabilitating the banking sector needs more legislation.” He added,

"Iraqi banks have lagged far behind international banks, which are witnessing major developments day after day in their use and reliance on modern technological means." He pointed out that

 “complying with international laws and controlling dollar smuggling are not sufficient steps to reach the level of ambition and help compete with developed countries.” Ended / 25h  

https://almaalomah.me/news/64684/economy/الكشف-عن-مشاريع-قوانين-لتطوير-القطاع-المصرفي

To read more current and reliable Iraqi news please visit :  https://www.bondladyscorner.com/

Provoking Thoughts and Points to Ponder on Advice :

Don't fight forces; use them.  - Buckminster Fuller

Drink nothing without seeing it; sign nothing without reading it.  - Spanish proverb

What is important is to keep learning, to enjoy challenge, and to tolerate ambiguity. In the end there are no certain answers.  - Marina Horner

Simplicity, simplicity, simplicity. I say, let your affairs be as two or three, and not a hundred or a thousand; instead of a million count half a dozen, and keep your accounts on your thumbnail.  - Henry David Thoreau

You must not think, sir, to catch old birds with chaff.  - Cervantes

http://famousquotesandauthors.com/topics/advice_quotes.html

http://famousquotesandauthors.com/quotes_by_topic.html

Goldilocks' Comments and Global Economic News Saturday Evening 5-18-24

Goldilocks' Comments and Global Economic News Saturday Evening 5-18-24

Good evening Dinar Recaps,

"Last week, in a letter to the council, Iraqi Prime Minister Mohamed Shia al-Sudani called for the United Nations Assistance Mission for Iraq (UNAMI), which has been operational since 2003, to end by December 31, 2025."

Resolution 1770 (2007) was devised to give guidance for Iraq on internal protocols that would enable them to secure a safe environment for their people and become prosperous in the world around them.

The resolution was co-sponsored by:
* United Kingdom
* United States
* Italy
* Slovakia

There will be a meeting at the end of May to discuss the gradual removal of the United Nations' involvement with Iraq. It is believed that they have achieved their goals with Iraq, and they believe Iraq's ability to move forward on their own is showing consistent progress.

The UN's involvement with Iraq has been taking place since 2003. It has been a team of leaders from several Nations engaged in helping Iraq "transition" their political and economic economy into a place whereby their contribution to the world is capable of moving to a level of Independence.

Starting early June, Iraq will be gradually moving into their own. These stages of the independence will be monitored, but their control over their own Nation will increase with each passing day. Kurdistan24 Iraq UN

© Goldilocks

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Hong Kong officially launches pilot for digital yuan payments | Business Times

"HONG Kong launched a pilot programme enabling digital yuan payments through major Chinese banks, the first example of China’s currency project being deployed beyond the mainland.

Residents of the city can now open digital yuan wallets with Bank of China, Bank of Communications, China Construction Bank and Industrial and Commercial Bank of China to pay merchants in mainland China directly, Hong Kong’s de facto central bank said in a statement on Friday (May 17)."

Hong Kong has officially launched a pilot program that will allow them to utilize the Yuan as a form of payment.

Users can use the FPS payment system. FPS stands for Faster Payments Service. FPS is a UK banking initiative allowing real-time electronic fund transfers between banks.

© Goldilocks

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Resolution 1770 (2007) / adopted by the Security Council at its 5729th meeting, on 10 August 2007  |   United Nations Digital Library System

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Silver Daily Forecast and Technical Analysis for May 17, 2024, by Chris Lewis for FX Empire | Youtube

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The days of shorting the silver market are coming to an end.

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SEC Adopts Rule Amendments to Regulation S-P to Enhance Protection of Customer Information |  SEC

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Kraken ‘Actively Reviewing’ Tether’s Status Under New EU Rules | BloombergLaw

New regime for digital assets set to take effect in July

Tether says it plans to continue its dialog with regulators

Kraken is “actively reviewing” plans that may include removing support for the world’s most-traded cryptocurrency on its exchange in the European Union, under a new regime for digital assets that’s set to take effect in the bloc in July.

Tether Holdings Ltd.’s USDT, a stablecoin that aims to maintain a one-to-one value with the dollar, is expected to be impacted by upcoming EU rules known as MiCA.

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Standard Chartered completes first Euro transactions on Partior Platform – Trade Finance Global

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Eurosystem completes first DLT experiment - Central Banking

The Eurosystem completed its first experiment using distributed ledger technology (DLT), the European Central Bank (ECB) announced on May 14.

This is the first of three experiments the ECB plans to carry out. All three experiments will test interoperability-type solutions for central bank money settlement of wholesale financial transactions recorded on DLT platforms.

This experiment covered tokenization and simulated the deliver-versus-payment (DvP) settlement of government bonds in a secondary market transaction against central bank money.

The DLT platform for the experiment was provided by the National Bank of Austria. Other participants include the central banks of Germany, France, Italy and Luxembourg.

👆  Goldilocks pointed to this article

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Is Blockchain the Key to Transforming the Global Tourism Industry? |  Analytics Insight

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‘All UAE banks have to launch Jaywan debit cards’: Rollout to happen in phases - News | Khaleej Times

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 WATCH & LISTEN HERE Video on XRP

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They Are Dumping Our TREASURIES - The Economic Ninja | Youtube

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Miners Eye Middle East as Next Region for Growth | Coindesk

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Iraq Going for the International Investment Platform? | Youtube

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Join the Seeds of Wisdom Team SNL call with Freedom Fighter breaking down Goldilock's weekly posts!  Jester will be joining too!   SNL Call Link

9 pm EDT / 8 pm CDT / 6 pm PDT

The SNL Q & A room will be open at 8 pm ET, 7 pm CT, and 5 pm PT to ask questions that will be answered on the call!

The call will be recorded and you can find it in the Archive Call Room after the call is over.

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UNDP endorses Iraq’s electronic payment services system | Search4Dinar

Today, the United Nations Development Programme (UNDP) approved the electronic payment system in Iraq.

© Goldilocks

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Floating the dinar... Will it achieve monetary stability in Iraq?

KTFA:

Clare: Floating the dinar... Will it achieve monetary stability in Iraq?

Moaz Fraihat - Washington May 17, 2024
 
The stability of the Iraqi dinar in recent years has always faced major challenges, as it witnesses price fluctuations, not to mention a gap between what the central bank determines and what is sold in the parallel market.

In order to avoid the “volatility” syndrome and the “gap” in the price of the Iraqi dinar against foreign currencies, some experts believe that the solution lies in a kind of “surgical” operation for the country’s monetary system that may be painful, but it achieves long-term monetary stability for the national currency through... "float".

The cash selling price, according to the Central Bank, is 1,305 dinars per dollar, while the price for transfers abroad is 1,310 dinars per dollar, and the price in the parallel market is about 1,450 dinars per dollar in mid-May, according to local media , while it reached levels of 1,600 dinars per dollar in previous periods.

For months, the Iraqi authorities have imposed restrictions in their efforts to control exchange rates, restricting all commercial transactions within the country to the Iraqi dinar, and established a new mechanism that subjects external transfers to greater scrutiny.

Iraqi economic analysts who spoke to Al-Hurra website, some of them warned against taking a decision that would lead to floating the dinar, while some of them believe that a moderate policy could be taken that suits the Iraqi economy, based on “floating” and “stabilization” at the same time.

Is the flotation policy compatible with the Iraqi economy?

Advisor to the Prime Minister for Financial Affairs, Mazhar Salih, believes that floating the currency price does not suit the Iraqi economy, especially since it is a "rentier economy, dominated by foreign currency reserves."

He explains in statements to the “Al-Hurra” website that “the economic vision that wants to float the Iraqi dinar to end the gap between the official price and the parallel price may be possible in an economy in which the free market alone influences the movement of the balance of payments, and not in an economy in which the rentier government sector is dominant and generates reserves.” Foreign currency".

He added, "The monetary authority in Iraq alone is the main source of supply of foreign currency that meets the desired demand for foreign exchange in the local market."

Saleh believes that the demands for flotation inevitably mean “adopting the prevailing exchange rate in the parallel market, in order to achieve the goal of stability and balance in the official exchange rate itself at a new exchange point that the market will reach at the end of the assumed flotation policy and return to stability again.”

The flotation scenario also means “the withdrawal of the monetary authority as the main central offerer of foreign currency, and its replacement by new forces of free market makers, which certainly have only a weak, limited supply of foreign exchange,” according to Saleh.

He points out that these forces carry “an uncontrolled package of inflationary expectations, and are called in the economic literature (the forces generating inflationary expectations), which will give dominance to the supply forces of speculators” who own limited amounts of foreign exchange, matched by “an open demand for foreign currency from The market side" exceeds what is offered by "at least more than ten times in our estimate."

Chancellor Saleh described this policy as “unruly,” as as long as “the central government supply of foreign currency will be absent from the market, we will not obtain any equilibrium point in the exchange rate that flotation seeks except with a widespread deterioration of the exchange rate as long as it is carried out by forces generating inflationary expectations in a severe rentier economy.” "unilateralism."

He warns that if the exchange rate moves in “a market that is incomplete, in terms of productivity, in its compensation for the required supply of goods and services,” no one “will know how much the new exchange rate resulting from the flotation will be,” which will be accompanied by “a prior wave of inflationary expectations,” the trends of which are difficult to control. , which may push monetary policy makers to “intervene with excessive foreign reserves and unjustified extravagance in foreign exchange to impose a state of stability.”

According to the World Bank, Iraq has 145 billion barrels of proven oil reserves, which are among the largest crude oil reserves in the world.

But Iraq hopes that the country's oil reserves will exceed 160 billion barrels, according to what the Minister of Oil, Hayyan Abdul Ghani, recently announced.

What if the Iraqi dinar was floated?

The claims that have appeared every now and then for years calling for floating the exchange rate of the Iraqi dinar are “strange,” and most of them are made by people who are “not specialized in economics or monetary policy,” according to what Professor of International Economic Relations, Abdul Rahman al-Mashhadani, confirms to the Al-Hurra website.

He asserts in a decisive tone, "Iraq cannot proceed with floating the dinar's exchange rate. The evidence for this is all the agreements concluded with the International Monetary Fund since 2004, and the reviews praised the stabilization of the exchange rate by the Central Bank of Iraq."

Al-Mashhadani added that there was a study by experts at the World Bank during the past years that recommended “raising the exchange rate,” noting that even then, “these recommendations cannot be taken into account because the World Bank is concerned with what is related to economic development, but following up on the recommendations for monetary policies is taken into account if It was from the International Monetary Fund.

In its latest review on Thursday, the International Monetary Fund praised the efforts of the Central Bank of Iraq to tighten monetary policy and strengthen its liquidity management framework.

He explains that “the real gap is in the wheel of production in the Iraqi economy, as the majority of goods are imported from abroad, which means that the flotation will cause a spiral in price rates to become significantly high and affect the marginalized classes,” indicating that such a decision cannot be taken “as a matter of politics.” “Cash” only, as we must “consider the burdens it will impose on citizens.”

Al-Mashhadani confirms that what has been applied in other Arab countries does not “mean that it can be applied to the Iraqi economy,” suggesting that “the exchange rate will become at the levels of 5,000 dinars to the dollar,” as “the Central Bank has lost control over exchange rates, leaving them to float.”

There is a fear that “floating” will cause “social” problems, as “salaries will erode significantly,” which may threaten “new classes to slide into poverty,” while “a class of merchants, politicians, and businessmen will benefit, who will benefit from the state of instability that will result from... This matter".

Al-Mashhadani agrees that floating in the end means “that the parallel market will control exchange rates,” but it will not achieve “the desired monetary stability,” as the central bank will then need to “print more local currency to keep up with demand in the markets,” and the government will need to increase salaries and allocations for aid packages. Social.

"Float with controls" for full "editing".

The economic expert, Manar Al-Obaidi, recommends following a “currency float” policy, but with controls such that a “managed float policy is used to gradually liberalize the currency until complete liberalization of the exchange rate is reached.”

He said in a post on his Facebook account, "Such a policy could be a successful alternative in Iraq by following a managed float policy where the central bank controls the range of volatility and works to gradually increase it until the currency is completely liberalized."

Al-Obaidi gave the example of “the managed flotation policy followed by Morocco in 2018,” noting that it was accompanied by the abolition of customs tariffs on basic materials and “supporting funds for vulnerable classes,” stressing that this experience can be used to influence “inflation.”

"Reasons for the exchange rate “gap”.

The Iraqi government advisor, Saleh, attributes the reason and existence of a “gap” in the dinar’s exchange rates against the dollar between the official and parallel markets to “external factors imposed by the compliance platform and auditing administrative restrictions on external transfer movements, which is not related to the deficit in the authority’s monetary reserves,” noting that the reserve Iraq's foreign currency is considered the highest in the country's history, as it touches the levels of import coverage for 16 months, compared to the global standard, which does not exceed three months of import coverage.

Financial transfers in dollars through official channels have increased significantly in Iraq, while Iraq continues its reforms of the financial sector in line with international standards, according to a previous report by Agence France-Presse.

In late 2022, the Iraqi banking sector adopted the SWIFT electronic transfer system with the aim of providing better control over the use of the dollar, ensuring compliance with US sanctions on Tehran, and also in order to limit the prosperity of the informal economy. 

The financial standards that were adopted encouraged the emergence of a parallel market for currencies, attracting those seeking to obtain dollars outside official channels.

Saleh pointed out that there is a distortion in support for the prices of some commodities “on the part of financial policy, which is support in which the rich and poor mostly enjoy it equally without discrimination, and it represents an added, imperceptible real income, and it is the product of a financial policy inherited from the consumer welfare state for the rentier resource.”

He continued, "It is inconceivable until this moment that 90 percent of Iraq's population is receiving support for food supplies provided by the state as an extension of the economic blockade phase of the 1990s in light of the changing standards of living and lifestyle, the increasing number of affluent people, and the growth of the middle class."

In mid-May, the Iraqi authorities announced the purchase of 1.5 million tons of wheat since the beginning of the year.

According to the Ministry of Agriculture, Iraq, with a population exceeding 43 million people, needs between 4.5 million and five million tons of wheat annually.

The International Monetary Fund said Thursday that Iraq's internal imbalances have been exacerbated by significant fiscal expansion and low oil prices.

The Fund added that Iraq needs to gradually correct public financial conditions in Iraq to achieve debt stability in the medium term and rebuild financial reserves.

To ensure compliance with US standards regarding money laundering and sanctions on Iran, about 20 Iraqi banks were prevented from making dollar transfers.

Last September, the Iraqi government decided that merchants who deal with Iran are forced to turn to the parallel market to obtain currency, given that Tehran is subject to sanctions and “is not allowed to conduct financial transfers,” according to Agence France-Presse.

"A positive step for the "economy" but!!

The Iraqi economic academic, Nabil Al-Marsoumi, believes that the solution to addressing the discrepancy in the currency exchange rate through “free floating of the Iraqi dinar” may have “some economic positives.”

He added in an interview with Al-Hurra website that "the economy should not be taken in its abstract aspect, but rather in terms of its relationship to people, especially the poor among them."

Al-Marsoumi warns that "the Iraqi dinar may witness a violent collapse and rampant inflation that will cause prices in the Iraqi market to rise to record levels that will harm citizens, especially the low-income classes."

He explains that Iraq lacks "a national private sector that could contribute to increasing the supply of dollars in the local market, and because of the large volume of imports, which reach 67 billion dollars annually, the government is the only party that owns the dollar."

He notes that "if the government decides not to intervene in the exchange market, we are expected to witness consequences that will cause severe damage to citizens' living standards, making the poor even more miserable, and may lead to social tensions and a major rift in the social peace."

For his part, the economic expert Al-Obaidi defined the primary goal of liberalizing the currency as “creating an economy capable of withstanding various economic shocks, and reducing reliance on reserves that are greatly depleted in order to maintain a fixed exchange rate, which could stop once the reserves run out.” .

He added that this also "contributes to supporting the domestic product and changing the consumption pattern, and thus reducing the import bill for Iraq, which rises annually as an indirect reason as a result of the attempt to maintain a fixed exchange rate."

Not to mention, “continuing to try to maintain a fixed exchange rate depletes reserves,” which will lead at a certain stage, “accompanied by a decrease in reserves, followed by either a complete liberalization of the currency or a significant reduction in the price rate, which will have major repercussions on the citizen, and will cause great confusion in "A market that already suffers from a lack of economic stability."

"What is the alternative to floating the currency?

The Iraqi economic expert, Mahmoud Dagher, confirms to Al-Hurra website that what may be the solution for Iraq is a system “between floating and stabilization,” to help stabilize currency exchange rates.

The expert, Dagher, a former official at the Central Bank of Iraq, explains that “the origin of the exchange system is floating, which is what free countries adopt.”

He explains that "the continuity of the gap requires reaching a middle system that solves the problem between free floating and stabilization. This is a system that many developing countries follow, and it helps solve the problems of currency fluctuation."

Financial expert Saleh proposes alternatives to floating, in a way that serves the objectives of monetary policy and limits inflationary risks, through the use of financial tools such as “taxes and customs duties that act as an intermediary to influence the exchange rate to achieve balance and price stability.”

He added, "Instead of resorting to lowering the exchange rate to harmonize the market through flotation, it would be through amending customs tariff schedules and imposing careful, thoughtful controls to protect the national economy."

Saleh called for correcting the defect in the structure of the Iraqi economy as a whole, as it is not possible to continue with “high operating spending in annual public budgets, which has always generated cash income from rentier sources that are matched only by very limited productivity of commodity and service flows, which has made the country It relies mainly on large-scale imported consumer goods.”

Counselor Saleh revealed, on Thursday, that the loans provided by the International Monetary Fund to Iraq since 2003 totaled no more than $8 billion, confirming that they had been paid in full, according to a report published by the “ INA ” agency.

Last March, the International Monetary Fund stressed “the Iraqi economy’s need for broad structural measures to enhance private sector development and economic diversification, and to raise growth rates in the non-oil sector in a sustainable manner to accommodate the rapidly increasing workforce, and to increase non-oil exports and government revenues, in addition to Reducing the economy's exposure to oil price shocks.

He called for "accelerating the pace of reforms in the financial sector to improve access to financing, by modernizing the banking sector and supporting the ability of banks to establish banking relationships with other banks, and taking steps aimed at merging small-sized private banks," not to mention the need "to restructure the two largest government banks." ".

The Governor of the Central Bank, Ali Al-Alaq, announced in statements in early May that “the banking sector is witnessing major qualitative developments, while calling for cooperation and coordination between Arab central banks, banks and non-banking financial institutions to achieve stability and economic growth,” according to the “ Inaa ” agency.

He continued, "Central banks face new challenges in the interaction between financial and monetary stability, in light of the dominance of general financial policy and the necessity of central banks to facilitate excessive government debts, according to financial control, which requires reducing spending or increasing domestic revenues, or both."

Iraq has begun to recover relatively after years of wars, occupation, and sectarian violence that followed the US-led invasion in 2003, according to an Agence France-Presse report.   LINK

Iraq Economic News and Points to Ponder Saturday AM 5-18-24

Iraq Economic News and Points to Ponder Saturday AM 5-18-24

The International Monetary Fund Calls On Iraq To Cancel The “Appointments” And Correct Its Financial Conditions
 
Economy     Iraq     International Monetary Fund     Debts in Iraq     Iraq's debts     Appointments file
2024-05-16 10:33
 
Shafaq News/ The International Monetary Fund stressed, on Thursday, the need for Iraq to gradually correct its financial conditions to achieve debt stability in the medium term and rebuild financial reserves.
 
This comes after the Executive Board of the International Monetary Fund (IMF) concluded Article IV consultations with Iraq and studied and approved the employee evaluation, before recommending control over public wages and the gradual abolition of compulsory employment, according to a Fund report seen by Shafaq News Agency.

It is expected that the next Article IV consultations with Iraq will be held in the standard 12-month cycle, according to the International Monetary Fund report and schedules.
 
In its statement, the Fund welcomed the strong economic recovery, the decline in inflation in Iraq to 4% by the end of 2023, and the improvement in domestic conditions that led to the implementation of the first 3-year budget. He stressed the
 
necessity of sound economic policies and structural reforms in Iraq to secure public finances and debts, given the regional disputes that may affect oil prices. He pointed to
 
the strong recovery in the non-oil economy in Iraq after a contraction in 2022-23, and that
 
Iraq was “largely” unaffected by the conflict in the region, pointing to the revaluation of the currency as of February 2023, and the return of trade financing to normal.
 
However, the imbalances were exacerbated by the significant fiscal expansion and falling oil prices.”
 
The Fund's report expected that the continued fiscal expansion would enhance growth in 2024,
 
     at the expense of further deterioration in financial and external accounts and
     Iraq's vulnerability to oil price fluctuations.
 
Without policy adjustment, the risk of medium-term sovereign debt stresses is high and external stability risks could arise.
 
Key downside risks include a significant decline in oil prices or the spread of conflict in Gaza and Israel.”
 
The executive directors agreed, according to the report, “with the thrust of the staff assessment, and welcomed the
 
     strong economic recovery,
     low inflation, and
     improved domestic conditions
 
that led to the implementation of the first-ever three-year budget.

They noted that  the risks were tilted towards the downside, given regional disputes and high dependence.” on the volatile oil prices, and that
 
a major financial expansion could lead to financial and external imbalances.” The directors also stressed “the
 
need for sound macroeconomic policies and structural reforms to
 
     secure public finances and debt,
     sustainability,
     promote economic diversification, and
     achieve sustainable and inclusive growth led by the private sector.” The Directors stressed that
 
 “a gradual but significant fiscal adjustment is needed to stabilize debt in the medium term and rebuild fiscal safety margins.”
 
They encouraged the authorities to focus on
 
     controlling public wage rolls,
     phasing out compulsory employment policies, and
     mobilizing non-oil revenues, with
    Better targeting of social assistance. Directors agreed that
 
 “immediate implementation of
 
     Customs and Revenue Administration reforms,
     full implementation of the Single Treasury Account,
     strict oversight and limiting the use of extra-budgetary funds and
     government guarantees
 
are essential to support fiscal consolidation.
 
Reducing cash financing and reforming the pension system are also important.”". 
 
https://shafaq.com/ar/اقتصـاد/النقد-الدولي-يدعو-العراق-ل-لغا-التعيينات-وتصحيح-وضاعه-المالية   

To read more current and reliable Iraqi news please visit :  https://www.bondladyscorner.com/

Provoking Thoughts and Points to Ponder on Advice :

It is well enough, when one is talking to a friend, to lodge in an odd word by way of counsel now and then; but there is something mighty irksome in its staring upon one in a letter, where one ought to see only kind words and friendly remembrances.  - Mary Lamb

Men of much depth of mind can bear a great deal of counsel; for it does not easily deface their own character, nor render their purposes indistinct.  - Arthur Helps

Have more than thou showest, Speak less than thou knowest.  - William Shakespeare

What you don't see with your eyes, don't invent with your tongue.  - Jewish proverb

If you keep your mind sufficiently open, people will throw a lot of rubbish into it.  - William A. Orton

http://famousquotesandauthors.com/topics/advice_quotes.html

http://famousquotesandauthors.com/quotes_by_topic.html

“Tidbits From TNT” Saturday 5-18-2024

TNT:

Tishwash:  Al-Mandalawi opens the House of Representatives session today

 The Speaker of the Parliament, Mohsen Al-Mandalawi, opened the work of Session No. (25) today, Saturday, in the presence of 183 representatives

Our correspondent: The bell of the House of Representatives rings a second time, marking the opening of the session to elect the Speaker of the House

 The Presidency of Parliament decided to devote today’s session to electing the president only

The House of Representatives votes to extend its legislative term for 30 days 

Our correspondent: The number of attendees during the House of Representatives session exceeded 218 deputies

 Urgent | Members of the House of Representatives head to the Great Hall for the purpose of initiating the procedures for electing the Speaker of the House of Representatives    link

Tishwash:  The Sudanese advisor issues a clarification regarding the discussion of budget schedules in an extraordinary session 

 Today, Saturday, the financial advisor to the Prime Minister, Mazhar Muhammad Saleh, clarified the discussion of the budget schedules in the extraordinary session of the Council of Ministers.

Saleh said, in an interview followed by Al-Iqtisad News, that “during the extraordinary session of the Council of Ministers, the financial tables will be discussed,” pointing out that “these tables will be approved by a decision of the Council of Ministers and then referred to the House of Representatives for approval, in implementation of the provisions of Article 77/ Secondly, from the Tripartite Federal General Budget Law No. 13 of 2023.”

During the last cabinet session, Prime Minister Muhammad Shiaa Al-Sudani directed that an extraordinary session of the council be held on Sunday to discuss the budget schedules  link

*************

CandyKisses:  The Regional Government announces the payment of employees' salaries through "My Account"

Baghdad - Iraq Today:

The Kurdistan Regional Government announced that more than 25,000 government employees have received their salaries through the "My Account" project.

The Information and Information Department of the Kurdistan Regional Government said in a statement that "employees who have bank cards that enable them to receive their salaries through ATMs, will receive their salaries successively until the end of next week."

The President of the Kurdistan Regional Government, Masrour Barzani, had previously confirmed that one million employees will be able to access banking services by the end of this year, and that access to financial services in the region will rise to 35% until late 2024.

************

CandyKisses:  Al-Hakim calls on Canadian companies to invest in the Iraqi market

Baghdad today - Baghdad

Today, Saturday (May 18, 2024), the head of the National State Forces Alliance, Ammar al-Hakim, called on Canadian companies to invest in the Iraqi market.

Al-Hakim's office said in a statement received by "Baghdad Today", "The head of the National State Forces Alliance met, today, Saturday, with Cathy Banka, Canada's new ambassador to Iraq," noting that "the meeting discussed developments in the political scene in Iraq and the region."

Al-Hakim stressed, according to the statement, "the importance of the achieved stability and its positive impact and repercussions on the security of Iraq and the region," stressing "the necessity of perpetuating this stability and transforming it into permanent stability, and we hold everyone responsible for achieving this goal."

He called for "noticing popular satisfaction with the government and the political forces supporting it," noting that "this satisfaction is the result of the government's vision and its service and development projects that citizens have begun to feel and live the details of their achievement. "

He stressed "the importance of developing relations with Canada," noting that "Iraq offers promising opportunities in the field of construction and reconstruction," calling for "investing these opportunities through the presence of companies in the Iraqi market."

Mot:  . What in the World !!!!????? 

Greatest Marriage Proposal EVER!!!........................

https://www.youtube.com/watch?v=pnVAE91E7kM

MilitiaMan:Iraq Dinar - Iraq Central Bank - IMF - UNAMI - World Bank - Key Votes Tabled - WTO - Ready- Oil Flow

Iraq Dinar - Iraq Central Bank - IMF - UNAMI - World Bank - Key Votes Tabled - WTO - Ready- Oil Flow

MilitiaMan:  5-17-2024

The Crew:  Samson, PompeyPeter, Petra, Daytrader, Sunkissed, GIGI and Militia Man

Be sure to listen to full video for all the news……..

https://www.youtube.com/watch?v=2xdIR28lRgY

Iraq Economic News and Points to Ponder Friday Evening 5-17-24

Iraq Economic News and Points to Ponder Friday Evening 5-17-24

New American Positions Towards Resuming The Export Of Kurdistan Oil... And Foreign Companies Set A Condition

05-17-2024 |  4,488 views  Alsumaria News – Economy  The US State Department confirmed the continuation of its contacts with officials in Baghdad, Ankara, Erbil and American companies, to resume oil exports from Kurdistan through the Turkish port of Ceyhan, while foreign companies operating in Kurdistan confirmed that they are ready to resume exports on the condition that their funds related to previous and future exports are guaranteed.

Deputy Spokesman for the US State Department, Vedant Patel, said in a press conference held in Washington, “Developing different ways to deliver Iraqi energy to global markets is in the interest of Iraq and the United States,” noting that “we are in direct and continuous contact with officials in Baghdad, Ankara, and Erbil.” And American companies affected by the cessation of oil exports, in relation to the opening of the Iraqi-Turkish oil pipeline.”

Meanwhile, Assistant Secretary of State for Energy Affairs Jeffrey Pyatt was visiting Erbil, and he said during his visit that today’s visit left a strong impression on me regarding the abundance of energy in this region, its importance for achieving energy self-sufficiency in all of Iraq, as well as the extent to which we face... They all have some of the same challenges.”

For its part, the Federation of Foreign Petroleum Companies Operating in Kurdistan said that it welcomes the visit of the US Assistant Secretary of State for Energy Affairs, and that the companies are ready to resume exports, provided that agreements are reached that provide for ensuring payment for previous and future exports and maintaining commercial and economic conditions.

Miles B. Caggins, the official spokesman for the Kurdistan Oil Industry Association, said: “Ambassador Bayat’s visits to both Baghdad and Erbil underscore the importance of immediate and cooperative action by all stakeholders to restore exports through the Iraq-Turkey pipeline.” He

stressed that “the companies remain members .” APICOR is keen to resolve the export impasse and would welcome the invitation to participate in this process.”   LINK

Railways: Installing Electronic Payment Devices At Passenger Ticket Reservation Stations

Time: 05/17/2024 Read: 754 times   {Local: Al-Furat News} The Ministry of Transport announced today, Friday, the installation of electronic payment devices at passenger ticket reservation stations.

The Director General of the General Company for Iraqi Railways, Younis Al-Kaabi, said in a statement, a copy of which was received by {Al-Furat News}, that “according to the directives regarding the transition from cash payment to electronic payment and the confirmations of the Minister of Transport on the application of the electronic payment system in all formations of the ministry, payment devices have been installed and activated.”

Electronic exchange by the exchange company and the Arab company, by providing one or two devices in fourteen stations to reserve passenger train tickets.

He added: "Electronic payment has been activated for eleven administrative regions (the cashier unit), and workers within the cashiers and employees of the ticket reservation units have been trained on the devices by the electronic payment team at the Railways and the teams of the exchange and Arab electronic payment companies."   LINK

A Delegation From The Retirement Authority Discusses With The World Bank Reform Of The Retirement System In Iraq

Friday 17, May 2024 14:12 | Economical Number of readings: 164  Baghdad / NINA / The Retirement Authority delegation discussed with the World Bank reform of the retirement system in Iraq.

A statement by the Ministry of Finance stated that, within the framework of providing technical assistance to reform the retirement system in Iraq, a delegation from the National Retirement Authority headed by the head of the authority, Maher Hussein Rashid, attended the coordination meeting with a group of members of the World Bank in Istanbul to discuss the issue of reforming the retirement system in Iraq, in an important step towards... Ensuring its sustainability and improving future opportunities for citizens,

he explained that during the meeting technical, technical and technical assistance was provided by the bank to facilitate the process of providing services to retirees./End 9 https://ninanews.com/Website/News/Details?key=1127090

Oil Prices Are Heading For Their First Weekly Increase In 3 Months

Money  and business  Economy News - follow up  Oil prices rose today, Friday, with Brent crude, the global benchmark, heading for its first weekly increase in three weeks thanks to signs of improving global demand amid stronger economic indicators from major consumers China and the United States.

Brent crude prices rose 21 cents, or 0.25 percent, to $83.48 a barrel by 0314 GMT. we. West Texas Intermediate crude futures rose seven cents, or 0.09%, to $79.30 a barrel.

Markets were also boosted by Chinese industrial output growing by 6.7% year-on-year in April as the pace of recovery in the manufacturing sector accelerated, indicating the potential for increased demand in the future.

The decline in oil and refined product inventories in major global trading centers also created optimism about oil demand growth, reversing the trend of rising inventories that had severely impacted crude oil prices in previous weeks.

Recent economic indicators from the United States have fueled optimism about global demand. we. Data on Wednesday showed that consumer prices rose less than expected in April, boosting expectations of lower interest rates in the country.

These expectations were further strengthened by data on Thursday, which showed the stability of the US economy.

Lower interest rates could help ease the US economy. dollar, which would make oil cheaper for investors holding other currencies and boost demand. Views 85 05/17/2024 - https://economy-news.net/content.php?id=43493

New American Positions Towards Resuming The Export Of Kurdistan Oil... And Foreign Companies Set A Condition

 Economy     2024-05-17 | 2,424 views  Alsumaria News-Economy   The US State Department confirmed the continuation of its contacts with officials in Baghdad, Ankara, and Erbil and American companies, to resume oil exports from Kurdistan through the Turkish port of Ceyhan,

 while foreign companies operating in Kurdistan confirmed that they are ready to resume exports on the condition that their funds related to previous and future exports are guaranteed.

 Deputy spokesman for the US State Department, Vedant Patel, said in a press conference held in Washington,

 “Developing different ways to deliver Iraqi energy to global markets is in the interest of Iraq and the United States,” noting that

 “we are in direct and continuous contact with officials in Baghdad and Ankara.” And Erbil and American companies affected by the cessation of oil exports, regarding the opening of the Iraqi-Turkish oil pipeline.”

Meanwhile, Assistant Secretary of State for Energy Affairs Jeffrey Pyatt was visiting Erbil, and

 he said during his visit that today’s visit left a strong impression on me regarding the abundance of energy in this region, its importance for achieving energy self-sufficiency in all of Iraq, as well as the extent to which we face... "They all have some of the same challenges."

For its part, the Union of Foreign Petroleum Companies Operating in Kurdistan said that

it welcomes the visit of the US Assistant Secretary of State for Energy Affairs, and that

 the companies are ready to resume exports, provided that agreements are reached that provide for ensuring payment for previous and future exports and maintaining commercial and economic conditions.

 Miles B. Caggins, spokesman for the Kurdistan visits Oil Industry Association, said:

 “Ambassador Bayat’s to both Baghdad and Erbil underscore the importance of immediate and cooperative action by all stakeholders to restore exports through the Iraq -Turkey pipeline.” He stressed that

 "APIKOR member companies are still keen to resolve the export impasse and will welcome the invitation to participate in this process."  https://www.alsumaria.tv/news/economy/488845/مواقف-أمريكية-جديدة-تجاه-استئناف-تصدير-نفط-كردستان-والشركات-الأجنبية-ت      

To read more current and reliable Iraqi news please visit :  https://www.bondladyscorner.com/

Provoking Thoughts and Points to Ponder on Advice :

Fewer things are harder to put up with than the annoyance of a good example.  - Mark Twain

The only thing to do with good advice is to pass it on. It is never of any use to oneself.  - Oscar Wilde

A good scare is worth more to a man than good advice.  - Edgar Watson Howe

There is little serenity comparable to the serenity of the inexperienced giving advice to the experienced.  - Anonymous

Advice is seldom welcome; and those who want it the most always like it the least.  - Lord Chesterfield

http://famousquotesandauthors.com/topics/advice_quotes.html

http://famousquotesandauthors.com/quotes_by_topic.html

Goldilocks' Comments and Global Economic News Friday Evening 5-17-24

Goldilocks' Comments and Global Economic News Friday Evening 5-17-24

Good Evening Dinar Recaps,

Iraq: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Iraq  

Domestic stability has improved since the new government took office in October 2022. This has facilitated the passage of Iraq’s first three-year budget, which entailed a large fiscal expansion starting in 2023. The non-oil economy has rebounded strongly in 2023 after stalling in 2022 and was largely unaffected by the ongoing conflict in the region.

Nonetheless, Iraq remains highly vulnerable to oil price fluctuations, and private sector activity is hindered by the large state footprint—including as an employer of first resort—corruption, red tape, underdeveloped infrastructure, and poor access to credit.    IMF

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DTCC explores posting fund NAV data on blockchain with JPM, BNY Mellon, Chainlink - Ledger Insights

The Depository Trust and Clearing Corporation DTCC just made public the result of a proof of concept (PoC) test exploring the posting of tokenized funds by setting net asset values (NAV) data onto a blockchain.

In order to reach a real value on an asset, the value of an asset is reached by deducting the asset's liabilities from the market value of all of its shares. Then, you divide that number by the number of issued shares.

This is what happens in a reset when values across the board on the market have been inflated beyond their actual worth.

Until these calculations are completed across the board of the markets, it's hard to say we are going to have a crash or a rise in values of these new assets that are being tokenized and supported by gold and other commodities.

Forex will go into these equations as well finding representations of a real value for currencies giving them a Level Playing Field in the purchasing power of Global currencies around the world. This will give us a Global Currency Reset.

These correlated calculations will link themselves to the banking system causing the reformation of new values inside our new digital asset-based trading system.

This is the credit valuation adjustment we spoke of about a month ago that was going to start taking place. We are in the testing phase, but these assets will soon be interfaced onto the QFS reflecting new values in the new Financial System.

"The ten participants in the Smart NAV trial were American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JP Morgan, MFS Investment Management, Mid Atlantic Trust d/b/a American Trust Custody, State Street and U.S. Bank."      Ledger Insights
© Goldilocks

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CME Stock Exchange is planning to launch Bitcoin trading. This is currently in the discussion phase, but if it does go any further it will connect CME and the Swiss EBS.

The Chicago Mercantile Exchange is a global derivatives marketplace based in Chicago. The Swiss Electronic Bourse (EBS) is a "computer linking system between the former stock exchange trading floors in Zurich, Geneva, and Basel, Switzerland."

The connection would allow trades to be executed on all three of these trading floors onto Digital Ledger Technologies.

This is why it is so important to complete the MICA regulations. Currently, the integration at the full QFS is being set into motion.   Cryptonomist    Nasdaq  

© Goldilocks

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China Sells Record Sum of US Debt Amid Signs of Diversification | Finance Yahoo 

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Rep. Massie Introduces Federal Reserve Board Abolition Act to "End the Fed" | U.S. Representative Thomas Massie

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Trafigura, IXM caught in COMEX copper short squeeze as prices hit record | StreetInsider

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The state of play and what’s to come with CBDCs | London Blockchain Conference | Youtube

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Final Rules on Measuring Domestic Control of REITs | FTI

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Palo Alto Networks and IBM on Wednesday announced a significant partnership in which the two companies will jointly provide cybersecurity solutions, and IBM will deliver consulting services across Palo Alto’s platforms.

Palo Alto Networks is an American multinational cybersecurity company with headquarters in Santa Clara, California. The core product is a platform that includes advanced firewalls and cloud-based offerings that extend those firewalls to cover other aspects of security. The company serves over 70,000 organizations in over 150 countries, including 85 of the Fortune 100. It is home to the Unit 42 threat research team and hosts the Ignite cybersecurity conference. It is a partner organization of the World Economic Forum.   SecurityWeek   Wikipedia

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World Bank to issue Swiss digital bond settled in wholesale CBDC - Ledger Insights

Yesterday the World Bank announced it has priced a CHF 200 million digital bond to be issued on June 11 on the SIX Digital Exchange (SDX) and settled using the Swiss Franc wholesale central bank digital currency (wholesale CBDC).

The Swiss National Bank (SNB) is currently in pilot mode for its wholesale CBDC on the SDX DLT platform as part of Project Helvetia. Several digital bonds have used it for settlement. However, the World Bank, or rather the International Bank for Reconstruction and Development (IBRD), is the first international issuer to use the wCBDC. 

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We are beginning to witness how Digital Ledger Technologies, Tokenized Assets, and Stablecoins are currently being tested and regulated to go into law by the end of June 2024.

Do you see how these three networks work together to complete the functionality of the QFS?

Once these functionalities are complete, we will move into credit valuation adjustments to determine real values going forward.

The system will be tweaked during this time as the rest of the world catches up and interfaces their assets onto the system.

© Goldilocks

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Regulators Preparing to Finalize Basel IV | Insights | Mayer Brown

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Visa Reinvents the Card, Unveils New Products for Digital Age | Visa

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Press release: Basel Committee publishes report on the digitalisation of finance | BIS

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URGENT NEWS: Emergency Meeting on Iraq 2024 Budget #iqd  Rate in Budget | Youtube

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The modern CEO job is completely broken — but AI could make executives useful again | Business Insider

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Overview | World Bank

Iraq has a mixed economic system with some private freedom, but weak centralized economic planning and government regulation. The country's economy is dominated by oil exports, which serve as the basis of its GDP. Successive governments have done little to wean Iraq off this heavy dependency on oil rents and diversify the economy. 

However, non-oil growth has rebounded strongly in 2023, while inflation has receded. The World Bank has highlighted the importance of banking reforms and promoting digital financial services to increase financial intermediation and promote financial inclusion. 

The Iraq Vision 2030 plan includes diversifying the economy, reducing dependence on oil, promoting innovation, supporting SMEs, and attracting foreign investment. The plan also promotes sectors such as agriculture, tourism, manufacturing, and technology. 

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How Gold Affects Currencies | Investopedia

Gold can add value to a country's currency. Gold is used as a standard of value for currencies worldwide, and the price of gold can influence a country's currency value. For example, if a country exports gold, the value of its currency will increase when gold prices increase.

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BIS DROPS A BOMBSHELL! They Referenced Ripple/XRP On Their Panel!  You Will Regret Not Owning XRP! | Youtube

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14 Fireside chat - Technological innovation to enhance existing infrastructures | Youtube

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“Tidbits From TNT” Friday 5-17-2024

TNT:

Tishwash:  Among them are Russia and China... Members of the Security Council support ending the mission of the UNAMI mission in Iraq

 Yesterday, Thursday, a number of members of the UN Security Council, including Russia and China, supported Baghdad’s request to end the mission of the United Nations mission in Iraq by next year, but Washington did not immediately provide its support for this step.

Last week, the Iraqi government asked the United Nations to end, by the end of 2025, its political mission that it has been performing in the country for more than 20 years, considering that it is no longer necessary.

Iraq's Deputy Representative to the United Nations, Abbas Kadhim Obaid Al-Fatlawi, repeated the request before the Council, yesterday, Thursday, saying, "The mission achieved its goals."

Russian envoy Vasily Nebenzia supported this view, saying: “Iraqis are ready to take responsibility for the political future of their country.”

He added: "The remaining problems must not become an excuse for the United Nations mission to remain in the country indefinitely."

China's Deputy Representative to the United Nations, Geng Shuang, noted that within the framework of the annual renewal of the mission, whose mandate expires at the end of May, the Council must "propose a plan in order to ensure gradual withdrawal and a smooth transition towards final withdrawal."

Given that UN missions can only operate with the consent of the host country, Britain and France have also expressed their support for the shift in the partnership between Iraq and the UN.

The position of the United States was more ambiguous, as Ambassador Linda Thomas-Greenfield said that the United Nations Mission (UNAMI) still had “important work to perform,” and did not address Baghdad’s request.

She emphasized the mission's key role in many important political issues, such as supporting the organization of elections and promoting human rights, although Iraq clearly requested that the mission focus more directly on economic issues.

In an assessment requested by the council, German diplomat Volker Perthes said in March that UNAMI, which had more than 700 staff as of late 2023, “appears in its current form to be too large.”

Perthes called on the mission to "begin transferring its tasks to the national institutions and the United Nations team in the country in a responsible, organized and gradual manner within an agreed upon time frame."  link

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CandyKisses:  Gold prices are heading for gains for the second week in a row

Economy News - Baghdad

Gold prices looked poised for a second straight weekly gain on Friday, following recent U.S. gains.

Inflation data reinforced expectations that the Federal Reserve may cut interest rates this year.

By 0236 GMT, spot gold was up 0.1 percent at $2,379.14 an ounce.

Bullion prices are up 0.7% so far this week.

Gold futures settled at $2,383.20.

The dollar index fell (. DXY), down 0.6% for the week so far, against its rivals, making gold less expensive for holders of other currencies.

Data this week showed signs of slowing inflation in the United States. The Federal Reserve is good news, but policymakers have yet to publicly change their views on the timing of the interest rate cuts that investors believe will begin this year.

Bullion is known as an inflation hedge, but higher interest rates increase the opportunity cost of holding non-yielding gold.

Spot silver fell 0.2 percent to $29.53 an ounce after hitting a three-year high in the previous session, and palladium fell 1.1 percent to $982.77.

Platinum rose 0.3% to $1,060.15, after hitting its highest level since May 12, 2023 in the previous session. The metal has gained about 7% since the beginning of the week.

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CandyKisses:  Monetary Fund’: ‘Internal stability has improved since the new government took office in October 2022’

Economy News-  Washington, D.C. – On May 13, 2024, the Executive Board of the International Monetary Fund (IMF) concluded Article IV consultations with Iraq and examined and approved staff assessment.

Internal stability has improved since the new government took office in October 2022, facilitating the adoption of Iraq’s first three-year budget, which necessitated a major financial expansion starting in 2023, supporting that strong recovery in Iraq’s non-oil economy after a contraction in 2023. 2022.

Iraq has largely not been affected by the conflict in the region, and domestic inflation fell to 4% by the end of 2023, reflecting lower international food prices, the currency’s revaluation as of February 2023, and the return of trade finance to normal.

Continued financial expansion is expected to boost growth in 2024.

*Evaluation of the Executive Board*:

Executives approved the content of the staff assessment, welcoming the strong economic recovery, low inflation, and improved local conditions that led to the implementation of the first-ever three-year budget.

The managers agreed that the immediate implementation of customs and revenue management reforms, the full implementation of the unified Treasury account, strict control and the limitation of the use of extrabudgetary funds and government guarantees, are essential to support fiscal consolidation.

Managers praised the central bank’s efforts to tighten monetary policy and strengthen the liquidity management framework.

Better coordination between financial and monetary operations would help absorb excess liquidity and promote the transition of monetary policy.

Directors agreed that accelerating the restructuring of large state-owned banks is essential. They were supported by the modernization of the private banking sector, by facilitating the establishment of correspondent banking relationships, reducing regulatory uncertainties, and enhancing the efficiency and competitiveness of private banks.

The directors agreed that improving governance and anti-corruption are also essential, and encouraged further strengthening the anti-money laundering and terrorist financing framework, strengthening public procurement and business systems, and addressing shortcomings in the electricity sector.

Directors welcomed renewed efforts towards WTO accession and encouraged authorities to improve coverage and timing of statistics.

Directors welcomed the authorities’ request to create a policy coordination tool.

The next Article IV consultations with Iraq are expected to take place in the standard 12-month session.

Mot: .. Yeppers... They Have Come Up with the Perfect Treatment!!!! 

Mot:  ..... I fought the lawn & the lawn won!