Rob Cunningham: A New Monetary Era is here

Rob Cunningham: A New Monetary Era is here

9-4-2026

RIPPLE: THE CONNECTIVE INFRASTRUCTURE OF PROGRAMMABLE GLOBAL FINANCE

A new monetary era has taken form.

The G20 is advancing financial modernization, digital assets, ISO 20022 harmonization, longer payment-system operating hours and better cross-border payments.

DTCC is bringing tokenization into production across an infrastructure responsible for more than $114 trillion in assets.

Ripple Prime now extends Ripple directly into institutional brokerage, clearing, financing and fixed-income markets.

These forces converge around one requirement:

Capital must become programmable, interoperable, liquid and globally mobile.

Ripple built for this moment.

ONE COMPANY. SEVEN INSTITUTIONAL CAPABILITIES.

1 Ripple Prime — Brokerage • Clearing • Financing
2 Ripple Custody — Institutional Asset Control
3 RLUSD — Stable Settlement Liquidity
4 XRP — Neutral Bridge Liquidity
5 XRPL — Issuance • Exchange • Ledgering
6 Ripple Payments — Global Value Movement
7 Ripple Treasury — Enterprise Cash & Liquidity Management

Together they create one connected economic loop:

ORIGINATE → TOKENIZE → CUSTODY → FINANCE → TRADE → COLLATERALIZE → CONVERT → SETTLE → RECONCILE

That integration is Ripple’s competitive advantage.

Ripple does not merely provide another payment rail, stablecoin, blockchain, custody platform or prime broker.

Ripple connects the entire institutional value chain.

$114 TRILLION BECOMES MORE PRODUCTIVE

Tokenization changes what assets can do.

AI changes how frequently they can do it.

As markets move toward continuous trading, collateral optimization, liquidity sourcing and settlement, the same capital can work harder:

50× turnover → $5.7 quadrillion annually
60× turnover → $6.84 quadrillion annually
70× turnover → $7.98 quadrillion annually

The transformation is not simply more money.

It is more utility from every dollar of existing value.

More velocity.
More liquidity.
More collateral mobility.
More transactions.
More settlement.
More interoperability.

RIPPLE NEEDS A FRACTION TO BUILD AN EMPIRE

At $6–$8 quadrillion of modeled annual institutional flow:

0.01% connected → $600–$800 billion
0.10% → $6–$8 trillion
0.50% → $30–$40 trillion
1.00% → $60–$80 trillion

Every additional institutional connection can strengthen the utility of Ripple Prime, Custody, RLUSD, XRP, XRPL, Payments and Treasury.

Each product strengthens the others.

Each new customer expands the network.

Each new asset creates another potential liquidity relationship.

Each new market creates another pathway through the stack.

2026–2031: THE RIPPLE MOMENT

The financial system is becoming programmable.

• Securities become programmable.
• Cash becomes programmable.
• Collateral becomes programmable.
• Treasury becomes programmable.
• Liquidity becomes programmable.
• Markets become continuous.

Ripple sits at their intersection.

The opportunity is no longer simply moving money across borders.

It is connecting assets, institutions, currencies, liquidity and ledgers across borders and markets.

That is the 5-year Ripple future:

ONE CONNECTED STACK.
ONE GLOBAL VALUE NETWORK.
INSTITUTIONAL FINANCE, MADE PROGRAMMABLE.

The world is building the new financial system.

@Ripple is built to connect it all.

Source(s):
• https://x.com/KuwlShow/status/2095579424884400399

https://dinarchronicles.com/2026/09/03/rob-cunningham-a-new-monetary-era-is-here/

History Makes a STRONG Case For A Dinar Revaluation

History Makes a STRONG Case For A Dinar Revaluation

The Dinar Den:  9-3-2026

Global monetary systems are rarely static, continuously evolving through cycles of restructuring, technological innovation, and geopolitical readjustments.

Among the most discussed topics in modern currency analysis is the long-term trajectory of the Iraqi dinar and the broader economic framework supporting its potential revaluation. Rather than viewing currency shifts as isolated financial events, expert analyses suggest that significant monetary adjustments are part of a larger historical continuum.

By examining historical precedents, modern banking standards, and digital infrastructure rollouts, macroeconomists and currency observers gain a clearer perspective on how post-conflict nations rebuild their fiscal sovereignty and integrate into the international financial ecosystem.

Looking back at twentieth-century economic history provides essential context for understanding modern monetary resets. Countries like post-war Germany, Japan, and South Korea underwent extensive financial and structural overhauls following severe geopolitical disruptions.

In each instance, international stabilization programs, backed by major economic powers and multilateral institutions, helped transition shattered local currencies into stable mediums of exchange. These historical precedents demonstrate that rebuilding national balance sheets often involves severe currency devaluations followed by multi-phase stabilization strategies, institutional reforms, reserve accumulation, and eventual revaluation to reflect real economic value.

In the case of Iraq, the post-2003 financial architecture was heavily shaped by direct international and United States institutional involvement. The initial focus centered on stabilizing the domestic market, establishing a new sovereign currency framework, and controlling hyperinflation through regular currency auctions. Over the past two decades, this relationship has evolved from immediate post-conflict stabilization toward long-term modernization.

Integrating Iraq’s banking system into the global swift network and standardizing international correspondent banking relations have established a foundation where the foreign exchange environment can gradually shift away from strict capital controls toward broader market-oriented flexibility.

A notable aspect of Iraq’s contemporary economic strategy is its aggressive push toward monetary digitization and electronic banking solutions. While many developed nations are still deliberating the domestic deployment of Central Bank Digital Currencies, developing markets often serve as efficient testing environments for rapid digital transformation.

 Iraq’s central bank has prioritized financial inclusion, point-of-sale terminal adoption, and core banking technology modernization. This accelerated push toward a cashless framework reduces the reliance on paper physical currency, minimizes informal market leakages, and establishes the precise tracking mechanisms necessary for a controlled currency adjustment.

Behind these domestic reforms lies a strict adherence to global regulatory standards, specifically those governed by the International Monetary Fund and international banking guidelines like Basel III.

Under the Basel III capital adequacy framework, sovereign central banks have renewed their focus on physical gold reserves, reclassifying unencumbered gold as a primary reserve asset.

Iraq’s deliberate accumulation of sovereign gold reserves serves a dual purpose: it fortifies the nation’s balance sheet against inflationary pressures and aligns its banking sector with top-tier international settlement standards, signaling to global markets that its currency is increasingly backed by verifiable wealth.

Despite optimistic analyses regarding monetary adjustments, economic restructurings of this scale are inherently gradual processes. Complex monetary coordination involves balancing exchange rate mechanisms, managed floats, cash turn-in periods, and regional political dynamics, meaning timeline estimates must be met with analytical patience. Sovereign nations prioritize systemic stability over rapid market shifts, ensuring that domestic industries and fiscal policy can sustain new currency values.

https://www.youtube.com/watch?v=6lcst2EJ5Nw

Seeds of Wisdom RV and Economics Updates Friday Afternoon 9-4-26

Good Afternoon Dinar Recaps,

GLOBAL INVESTORS MOVE $46 BILLION INTO CASH: JOBS SHOCK REIGNITES RATE RISKS AND REPRICES GLOBAL CAPITAL

Global investors are moving billions toward money-market funds and shorter-duration assets as a stronger-than-expected U.S. jobs report, elevated oil prices and bond-market stress increase the risk that interest rates will remain higher for longer.

OVERVIEW

• $46.1 Billion Into Money Funds: Global money-market funds attracted $46.1 billion in net inflows through September 2, the largest weekly inflow since early August, as investors became more cautious amid bond-market and geopolitical stress.

• Jobs Shock Changes the Fed Equation: U.S. employers added 162,000 jobs in August, nearly three times the expected gain, while unemployment remained at 4.1%, putting a September Fed rate hike firmly back on the table.

• Capital Is Being Repositioned: Higher Treasury yields and uncertainty over inflation and interest rates are encouraging investors to favor liquidity and shorter-term assets, creating another measurable shift in global capital allocation.

KEY DEVELOPMENTS

1. $46.1 Billion Moves Toward Cash

Global money-market funds recorded $46.1 billion in net inflows during the week ending September 2.

Reuters reported that this was the largest weekly inflow since August 5, reflecting investor caution as global bonds sold off and U.S.-Iran tensions increased.

Money-market funds provide investors with liquidity and relatively short-duration exposure. The movement therefore offers a measurable indication that investors were becoming more defensive.

The significance is not simply the amount of money involved.

It is where investors chose to put it.

2. Investors Are Reducing Long-Duration Exposure

Bond-fund inflows slowed to approximately $10 billion, their lowest level in five weeks, while short-term bond funds experienced their strongest inflows since July.

At the same time, government and corporate bond funds experienced outflows.

This suggests that investors are not necessarily abandoning fixed income altogether.

Instead, they are becoming more cautious about locking money into longer-term securities while the direction of inflation and interest rates remains uncertain.

That distinction is important.

3. The U.S. Jobs Report Delivered a Major Surprise

Today's employment report changed the financial picture again.

The U.S. economy added 162,000 jobs in August, far above the approximately 56,000 jobs economists had expected.

The unemployment rate remained at 4.1%, while labor-force participation increased to 61.6% from 61.4% in July.

The report indicates that the U.S. labor market was considerably stronger than investors had anticipated.

That matters because a resilient labor market gives the Federal Reserve less reason to quickly ease monetary policy if inflation remains elevated.

4. Rate-Hike Expectations Returned

The stronger jobs data immediately changed expectations for the Federal Reserve's September meeting.

Reuters reported that markets increased the probability of a September rate hike to approximately 61%, reversing some of the easing in expectations that followed Fed Governor Christopher Waller's comments on Thursday.

That creates a significant shift from just one day earlier.

Yesterday: markets were becoming more confident that the Fed could hold rates.

Today: stronger employment data have put another rate increase firmly back into consideration.

The next major test will be the upcoming inflation data, which will help determine whether the Fed can justify another increase.

5. Treasury Yields Rose as the Cost of Money Was Repriced

The jobs report immediately pushed Treasury yields higher.

Reuters reported that the 10-year Treasury yield moved toward 4.80%, while the stronger employment data reinforced expectations for potentially tighter monetary policy.

This is significant because the Treasury market is already dealing with several pressures:

Large U.S. deficits + heavy Treasury issuance + elevated inflation risks + higher oil prices + changing Fed expectations.

Today's jobs report adds another factor:

A stronger economy may allow interest rates to remain higher for longer.

6. Oil Adds Another Inflationary Pressure

The employment shock is occurring against a backdrop of elevated energy prices.

Renewed U.S.-Iran tensions have pushed Brent crude toward $100 per barrel, increasing the possibility that higher energy costs could slow the progress of disinflation.

This creates a difficult environment for the Federal Reserve.

A strong labor market argues against rapid monetary easing, while higher energy prices create another potential source of inflation.

For investors, that combination makes liquidity and shorter-duration investments more attractive.

WHY IT MATTERS

• Economy

Higher interest rates increase financing costs for households, businesses and governments.

A stronger labor market could support economic activity, but sustained high borrowing costs can eventually weigh on investment and consumption.

• Markets

The movement of $46.1 billion into money-market funds shows that investors are actively repositioning capital.

Today's jobs report adds another reason for that caution by increasing uncertainty about the future path of interest rates.

• Policy

The Federal Reserve now faces a difficult combination of stronger employment, elevated oil prices and persistent inflation risk.

The September policy decision will depend heavily on whether upcoming inflation data confirm or contradict today's employment signal.

• Global System

U.S. interest rates influence borrowing costs and capital flows around the world.

When investors can earn attractive returns from relatively liquid dollar assets, capital can move toward the United States and away from riskier or lower-yielding markets.

That can place additional pressure on emerging-market currencies, sovereign debt and global liquidity.

WHY IT MATTERS TO FOREIGN CURRENCY HOLDERS

• Dollar strength: Higher U.S. rates can increase demand for dollar-denominated assets and support the dollar relative to some other currencies.

• Exchange rates: A change in Fed expectations can produce rapid currency movements.

• Capital flows: The $46.1 billion money-market inflow demonstrates that global investors are actively changing their allocation toward liquidity.

• Emerging-market currencies: Higher U.S. yields can make it more expensive for emerging economies to attract and retain foreign capital.

• Purchasing power: Higher oil prices combined with currency movements can increase the cost of imported energy and other internationally traded goods.

For foreign-currency holders, the important signal is not one day's dollar movement.

It is whether higher U.S. yields begin creating a sustained change in global capital allocation.

IMPLICATIONS FOR THE GLOBAL RESET

• Pillar 1: Assets

The movement of $46.1 billion into money-market funds is evidence that investors are reassessing duration and liquidity.

If the market increasingly expects higher rates to persist, capital may continue moving away from long-duration assets and toward cash, short-term securities and other liquid instruments.

That represents a change in how global capital is being positioned.

• Pillar 2: Debt

Higher interest rates create greater pressure on highly indebted governments, companies and households.

The issue is particularly important for governments because every refinancing cycle can occur at a different—and potentially higher—cost.

Today's jobs report therefore matters beyond employment.

A stronger economy can give the Fed more room to keep rates elevated, while higher rates increase the cost of financing an already heavily indebted global system.

CONCLUSION

The $46.1 billion flow into global money-market funds was already an important signal that investors were becoming more cautious.

Today's employment report gives that capital movement a new context.

• The U.S. economy added 162,000 jobs—nearly three times expectations—while unemployment remained at 4.1%, forcing markets to reconsider the possibility of another Federal Reserve rate increase.

• At the same time, Treasury yields moved higher and oil remained elevated because of the continuing conflict surrounding Iran and the Strait of Hormuz.

• The result is a financial system facing stronger-than-expected U.S. employment, elevated energy prices, higher Treasury yields and investors actively shifting toward liquidity.

• That combination matters because the global financial system is highly sensitive to the price of money.

For foreign currency holders, the next phase may be determined less by whether the Fed cuts or raises rates at one particular meeting and more by whether higher U.S. yields begin producing a sustained redistribution of global capital.

When investors move billions toward liquidity while the cost of money rises, the movement of capital itself becomes a signal that the global financial system is repricing risk, return and duration.

Seeds of Wisdom Team
Newshounds News™ Exclusive

SOURCES

• Reuters — “Global money funds draw biggest inflow in nearly a month as investors turn cautious”

• Reuters — “US nonfarm payrolls surge in August; unemployment rate steady at 4.1%”

~~~~~~~~~~

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Thank you Dinar Recaps

MilitiaMan & Crew: Iraq's Quiet Build: Why everyone is watching the new cabinet

MilitiaMan & Crew: Iraq's Quiet Build: Why everyone is watching the new cabinet

9-4-2026

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

No drama. No intrigue. No songs and dances. Just straight, factual news that I read and interpret to the best of my ability after being an avid Dinar investor and insanely obsessed Dinarian for over 15 years.

Follow MM on X == https://x.com/Slashn

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

https://www.youtube.com/watch?v=FMCYCH1RAt8

Iraq Economic News and Points To Ponder Friday Morning 9-4-26

The Budget Comes First... Parliament Pledges To Cooperate With The Government To Approve It Quickly, And The Parliamentary Finance Committee Reveals To NINA The Size Of Iraq's Debt

Baghdad / NINA / The Parliamentary Finance Committee has tallied Iraq's external and internal debts, while affirming that the Parliament will cooperate with the government to pass the general budget law as quickly as possible.

Committee member, MP Ahmed Hama Rashid, stated to the National Iraqi News Agency ( NINA ) that "the Financial Management Law stipulates that the general budget be submitted by the government to Parliament annually by mid-October," noting that "the general budget law in each parliamentary session reflects the government's vision, and Parliament's role is limited to oversight and ratification."

He added that "Parliament will cooperate with the government to pass the general budget law as quickly as possible," explaining that "the program-based budget does not require much time for approval, and Parliament can pass it in less than two months."

Regarding the debt issue and spending limits, the Finance Committee member emphasized that "Iraq needs to diversify its revenue sources, while austerity and cost-cutting measures require a bold step from the government."

He added, "The value of Iraq's outstanding external debt has reached $10 billion, and internal debt has exceeded 90 trillion dinars, in addition to accumulated debts from the era of the former regime amounting to another $41 billion, most of which are debts to Gulf countries, some in cash and others in logistical support." /End 5

http://ninanews.com/website/Uploads/Images/2026/9/1312900-c38491e1-2952-4775-8a90-622fa03f12ff.jpeg?v=202609031910‍ ‍

http://ninanews.com/website/Uploads/Images/2026/9/1312900-1dc4b170-67b9-4eb5-b251-4299c947c879.jpeg?v=202609031910

http://ninanews.com/website/Uploads/Images/2026/9/1312900-44f59c0e-15ad-4b6b-972d-4095ca486d24.jpeg?v=202609031910

https://ninanews.com/website/News/Details?Key=1312900

Positive Understandings Reached Between Erbil And Baghdad Regarding The 2027 Budget And The Resolution Of The Contract Employees Issue

Erbil (Kurdistan 24) - The finance committees from Erbil and Baghdad held a joint meeting on Thursday, September 3, 2026, chaired by the Federal Minister of Finance, Faleh al-Sari, to discuss the Kurdistan Region’s share in the draft federal general budget law for 2027.

The meeting, which lasted for about three hours, witnessed "positive and constructive" discussions that resulted in pledges from the Federal Ministry of Finance to resolve the issue of teachers and employees on contracts throughout Iraq, including the Kurdistan Region, by converting them to permanent staff within the draft budget law for next year.

A member of the negotiating delegation told Kurdistan 24 that the new draft budget will also include a clause related to "job promotions" for employees, stressing that employees of the Kurdistan Region will be included in this decision, just like their counterparts in the rest of the federal institutions.

The relevant authorities are scheduled to begin drafting the budget bill next Saturday, with the aim of completing it by September 15th for submission to the Federal Cabinet. The Cabinet will then have one month to review and approve the bill before sending it to the Federal Parliament in October for the necessary legislative procedures.

https://www.kurdistan24.net/ar/story/937028/تفاهمات-إيجابية-بين-أربيل-وبغداد-بشأن-موازنة-2027-وحسم-ملف-موظفي-العقود

Oil Heads For Sharp Weekly Gain On US-Iran Tensions

2026-09-04 Shafaq News   Oil prices rose on Friday, heading for their steepest weekly gain since mid-July, as rising tension and renewed U.S.-Iran hostilities heightened ​concerns over Middle East supply risks.

Brent crude futures rose 54 cents, or ‌0.6%, to $96.06 a barrel by 0100 GMT, while U.S. West Texas Intermediate crude futures climbed 80 cents, or 0.9%, to $92.10.

On a weekly basis, Brent rose 7.6% and WTI was 10.4% higher, set ​for the highest gains since the week ended July 20.

U.S. attacks this ​week that killed and wounded dozens, including Iranian civilians, marked the ⁠fiercest clashes between the two countries since July. The war, which began with U.S.-Israeli ​strikes in late February, is now in its seventh month.

Israeli Defence Minister Israel Katz renewed ​warnings that Israel would "cripple" Iran's military and civilian infrastructure, including energy facilities.

ANZ analysts raised their Brent crude forecast on Friday to $95 a barrel in the short term, with upside risk if the ​Middle East conflict intensifies.

"The market is entering a delicate adaptation phase. Elevated inventories helped ​absorb the initial supply crisis, but the challenge is now to keep the market balanced as ‌those ⁠buffers diminish," the analysts said.

U.S. Vice President JD Vance told reporters on Thursday that Washington does not plan to hold talks with Iran unless Tehran stops attacking commercial shipping in the Strait of Hormuz.

Capping oil's advance, however, Russian President Vladimir Putin said there ​remained a path to ​a deal to ⁠end the war in Ukraine, adding that both the U.S. and China were prepared to support a peace settlement.

Meanwhile, Iran expanded its list ​of vessels it deems non-compliant and subject to fines, confiscation or ​detention if ⁠they attempt to transit the strait. Iraqi ships remain among the few vessels Tehran has cleared to pass through Hormuz.

Iraq increased its oil exports to around 2.34 million barrels ⁠per ​day in August from about 1.35 million bpd in ​July, two Iraqi energy officials said on Wednesday, with September exports also expected to increase as heavy discounts ​and Iranian approvals for Iraqi tankers encouraged buyers.   (REUTERS)

https://www.shafaq.com/en/Economy/Oil-heads-for-sharp-weekly-gain-on-US-Iran-tensions

Gold Holds Steady Ahead Of US Payrolls Data

2026-09-04 Shafaq News Gold prices were steady on Friday and poised for a modest weekly gain, as ‌traders' attention turned to key U.S. payrolls data for clues on the Federal Reserve's next interest rate decision.

Spot gold held its ground at $4,469.26 per ounce, as of 0633 GMT. Prices jumped 2% on Thursday as traders scaled back expectations for a September rate hike after Fed Governor Christopher Waller said he would support leaving rates ⁠unchanged if data continued to show inflation pressures moderating.

U.S. gold futures for December delivery fell 0.5% to $4,515.70.

Traders are pricing in an about 50% chance of a Fed rate hike later this month, according to the CME FedWatch Tool.

The U.S. nonfarm payrolls report is due at 1230 GMT.

"Weak figures and a rise in unemployment could weaken the case for a rate hike. In this case, gold could recover. However, the metal could remain exposed to changing sentiment, with inflation data releases coming next week," said Ross Maxwell, global ‌strategy ⁠operations lead, VT Markets.

"The market continues to benefit from central bank demand, which could limit the extent of any decline."

Though gold is often viewed as an inflation hedge, elevated interest rates tend to weigh on the non-yielding asset.

Data on Thursday showed the number of Americans filing claims for unemployment ⁠benefits rose marginally last week amid low layoffs, pointing to stable labour market conditions.

Meanwhile, U.S. Vice President JD Vance said the fighting between Washington and Tehran was not a war and declined to provide ⁠a timeline for when the conflict would be over, underscoring the challenge the Trump administration faces as the hostilities enter their seventh month and mid-term elections loom.

Among other ⁠metals, spot silver fell 0.5% to $66.59 per ounce. Platinum lost 1.2% to $1,803.53 and palladium declined nearly 1.3% to $1,403.03, with both metals on track for slight weekly declines.    (REUTERS)

https://www.shafaq.com/en/Economy/Gold-holds-steady-ahead-of-US-payrolls-data

Seeds of Wisdom RV and Economics Updates Friday Morning 9-4-26

Good Morning Dinar Recaps,

CHINESE BANKS RETURN TO U.S. TREASURIES: DOLLAR DEPOSITS REVEAL A SHIFT IN GLOBAL CAPITAL FLOWS

Chinese commercial banks are increasing purchases of U.S. Treasuries after attracting more dollar deposits, highlighting the complicated relationship between de-dollarization, dollar liquidity and global demand for U.S. government debt.

 OVERVIEW

• Chinese Bank Shift: Chinese commercial banks have been buying U.S. Treasuries after raising interest rates on U.S. dollar deposits, according to sources cited by Reuters.

• Dollar Liquidity Is Rising: China's foreign-exchange deposits reached approximately $1.18 trillion by the end of July, up 17.9% from a year earlier as exports and trade surpluses generated more dollar liquidity.

• A Complicated Dollar Story: The development shows that China's financial system can pursue greater use of the yuan while Chinese banks simultaneously find U.S. dollar assets attractive, particularly when Treasury yields exceed returns available in China's domestic bond market.

KEY DEVELOPMENTS

1. Chinese Banks Are Buying Treasuries Again

Chinese commercial banks have increased purchases of U.S. Treasury securities in recent months, according to people familiar with the transactions.

The purchases follow an increase in the interest rates banks are offering customers on U.S. dollar deposits.

That represents an important shift in behavior because the banks are effectively attracting dollar liquidity from customers and then putting some of those dollars into U.S. government securities.

The development does not mean China has reversed its longer-term reduction in official Treasury holdings. Instead, it shows that commercial banks can respond to market incentives even while China's broader financial strategy continues to diversify.

2. Dollar Deposits Are Becoming More Attractive Inside China

Chinese banks have been raising rates on dollar deposits, with some smaller and foreign banks offering rates above 3% and in some cases approaching 4%, according to Reuters sources.

That compares with yuan deposit rates of roughly 0.95% at major state-owned banks.

The difference creates an incentive for Chinese customers to retain or increase dollar balances rather than immediately converting those funds into yuan.

For banks, those deposits also provide a pool of dollar funding that can be invested in relatively high-yielding U.S. Treasury securities.

3. China's Dollar Liquidity Has Increased Sharply

China's foreign-exchange deposits reached $1.18 trillion at the end of July, representing a 17.9% increase from a year earlier.

Reuters attributed the increase partly to China's strong exports and record trade surpluses.

That means a significant amount of dollar liquidity is accumulating within China's financial system—even as policymakers continue to manage the yuan and encourage development of alternatives to dollar-based finance.

This is one of the most important aspects of the story.

Dollar diversification does not necessarily mean immediate dollar disappearance.

Global financial systems can become more diversified while still maintaining substantial demand for dollars.

4. China's Official Treasury Holdings Tell a Different Story

1. The latest official Treasury data provide an important counterpoint.

2. China's reported holdings of U.S. Treasuries fell to approximately $633.4 billion in June, down from $659.3 billion in May and the lowest level since September 2008.

3. China remained the third-largest foreign holder of Treasuries, but its official holdings were down more than 13% from a year earlier.

4. Therefore, the new commercial-bank purchases should not be interpreted as proof that China's government has begun rebuilding its official Treasury position.

5. The more significant development is that private banking flows are responding to Treasury yields and dollar liquidity even while official Chinese Treasury holdings remain substantially below their historical levels.

5. The Global Capital-Flow Picture Is Becoming More Complex

This development comes at a time when the Treasury market itself is undergoing significant repricing.

U.S. Treasury yields have risen sharply, while Chinese domestic bond yields remain comparatively low. That makes dollar-denominated U.S. government securities more attractive to financial institutions seeking yield on their dollar assets.

The result is an increasingly complicated global capital picture:

China accumulates dollar liquidity → banks attract dollar deposits → some dollars move into Treasuries → Treasury demand receives support.

At the same time:

China continues developing alternative payment and reserve arrangements → official Treasury holdings remain below historical levels → global financial diversification continues.

These developments can happen simultaneously.

WHY IT MATTERS

• Economy

China's enormous trade surplus generates substantial foreign-exchange liquidity.

How that liquidity is held and invested can influence both China's currency management and the international financial system.

• Markets

The development demonstrates that Treasury demand does not come only from foreign governments and central banks.

Commercial banks, corporations, investment funds and private investors can also become important channels through which international dollars ultimately flow into U.S. government debt.

• Policy

Chinese policymakers face a delicate balance.

A stronger yuan can reduce the cost of imports and increase purchasing power, but rapid appreciation can create challenges for exporters and domestic economic conditions.

Encouraging dollar deposits can help banks manage dollar liquidity while potentially reducing pressure for those dollars to be immediately converted into yuan.

• Global System

The most important takeaway may be that the global monetary system is becoming more complex rather than simply moving from one currency to another.

China can promote yuan internationalization and alternative financial infrastructure while Chinese financial institutions continue using dollars and U.S. Treasury securities when market conditions make them attractive.

WHY IT MATTERS TO FOREIGN CURRENCY HOLDERS

• Dollar demand: Rising dollar deposits in China demonstrate that international demand for dollars can remain strong even while countries pursue currency diversification.

• Treasury yields: Higher U.S. yields can attract foreign financial institutions seeking better returns on dollar assets.

• Currency values: Capital moving between dollars, yuan and other currencies can influence exchange rates and the relative purchasing power of currencies.

• Capital flows: Foreign-currency holders should watch where international dollar liquidity is moving—not simply whether a country officially increases or decreases its Treasury holdings.

• Diversification:The larger trend is toward a more complicated currency system in which multiple currencies and financial assets can coexist rather than one immediately replacing another.

IMPLICATIONS FOR THE GLOBAL RESET

• Pillar 1: Assets

The Treasury market remains a major destination for global capital even as countries diversify their reserve and payment systems.

China's commercial-bank activity demonstrates that dollar assets can continue attracting capital because of yield and liquidity, even while official institutions reduce their exposure.

That makes the future of the Treasury market a key indicator of how global investors are reallocating capital.

• Pillar 2: Trade

China's expanding dollar liquidity is closely connected to its export strength and trade surplus.

Trade generates the foreign currency that financial institutions must ultimately hold, convert or invest.

As global trade becomes more diversified geographically and financially, the question is increasingly not simply which currency dominates trade, but where the resulting foreign-currency liquidity is ultimately invested.

CONCLUSION

The latest Chinese banking activity challenges the idea that global financial diversification is a simple story of “China abandoning the dollar.”

The evidence points to something considerably more complicated.

China's official Treasury holdings have fallen dramatically from their historical highs, yet Chinese commercial banks are now attracting more dollar deposits and purchasing U.S. Treasuries because the returns can be attractive relative to China's domestic bond market.

That creates an important distinction between de-dollarization and reduced dollar usage.

The global financial system may be moving toward greater currency diversification without eliminating the dollar's role in trade, banking, liquidity and investment.

For foreign currency holders, that is an important distinction. The next phase of the global monetary system may be defined less by one currency replacing another and more by competing currencies operating within a more diversified global capital structure.

China's relationship with the dollar is not simply disappearing—it is changing, and the movement of those dollars may tell us more about the future financial system than official reserve headlines alone.

Seeds of Wisdom Team
Newshounds News™ Exclusive

SOURCES

1. Reuters — “Chinese banks purchasing Treasuries after wooing dollar deposits, sources say”

2. U.S. Department of the Treasury — “Treasury International Capital Data for June”

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 🌱 A Message to Our Currency Holders🌱

If you’ve been holding foreign currency for many years, you were not foolish.
You were not wrong to believe the global financial system would change.

What failed was not your patience — it was the information you were given.

For years, dates, rumors, and personalities replaced facts, structure, and proof. “This week” predictions created cycles of hope and disappointment that were never based on how currencies actually change.

That is not your failure.

Our mission here is different:   • No dates • No rates • No hype • No gurus

Instead, we focus on:
• Verifiable developments • Institutional evidence
• Global financial structure • Where countries actually sit in the process

Currency value changes only come after sovereignty, trade, banking, settlement systems, and fiscal coordination are in place. History and institutions confirm this sequence.

You will see silence. You will see denials. That is not delay — that is discipline.

Protect your identity. Organize your documents.    Verify everything.
Never hand your discernment to anyone who cannot show proof.

You deserve truth — not timelines.

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Iraq Economic News and Points To Ponder Thursday Evening 9-3-26

A silent crisis is hitting private banks... and a source warns: "Al-Taif" may not be the last.

Last updated: September 3, 2026    Al-Mustaqilla / Special / - Iraqi private banks are entering a very sensitive phase, amid warnings of widening liquidity problems and the inability of some banking institutions to meet their obligations to their depositors, at a time when the sector is undergoing a broad restructuring and evaluation process led by the Central Bank of Iraq.

An informed banking source revealed to Al-Mustaqila that the situation within a part of the private banking sector is going through one of its most difficult phases in recent years, warning that the problems that have appeared in Al-Taif Islamic Bank may not be an isolated case, according to his assessment.

The source said that there are other private banks facing varying degrees of financial and liquidity pressures, noting that there are complaints from depositors about delays in receiving their money or difficulty in withdrawing amounts from their accounts at some banks.

He added that “there are cases whose details have not been officially announced to the public yet,” calling on the Central Bank of Iraq to intensify its scrutiny of the financial solvency and actual liquidity of private banks, and to ensure their ability to return depositors’ money on demand.

Is "The Spectrum" The Beginning Of A Bigger Project?

These warnings come after the Central Bank of Iraq’s decision on September 2, 2026, to place Al-Taif Islamic Bank for Investment and Finance under receivership for 18 months, after confirming the existence of “serious violations” that affected the bank’s financial position and depositors’ funds.

This decision gives an indication that regulatory authorities are becoming more stringent in dealing with banks whose financial situations may pose a risk to depositors' funds or to the integrity of banking operations.

But the source from “Al-Mustaqilla” goes further, as he believes that the need today is not to address the situation of just one bank, but rather to conduct a comprehensive review of the conditions of private banks that show signs of weakness in liquidity or failure to meet their obligations towards customers.

Depositors Are Waiting For Their Money.

According to information obtained by “Al-Mustaqila”, one of the most prominent indicators that warrants regulatory investigation is the existence of complaints related to the difficulty of some depositors obtaining their full funds immediately in a number of banks.

The source emphasizes that any repeated delays or unjustified restrictions on withdrawals should prompt regulators to check the bank’s financial position and match the amount of liquidity available with its obligations to the public.

Al-Mustaqilla cannot currently confirm the number of banks facing such problems independently, and the Central Bank of Iraq has not yet issued an official statement indicating that “dozens of banks” are suffering from conditions similar to Al-Taif Bank.

Therefore, this information remains within the framework of what the banking source revealed to “Al-Mustaqila” and requires regulatory scrutiny and official disclosures that determine the true extent of the problem.

Banking Reform Could Change The Landscape Of The Sector

The current concerns come in conjunction with the largest private banking sector reform program in Iraq in recent years.

The Central Bank had announced that Iraqi banks were required to choose one of three paths within the reform program: to continue as an independent banking institution, to merge with other banks, or to exit the market, with the banks subject to assessments related to minimum requirements, governance, compliance and financial performance.

This means that the current Iraqi banking landscape may not remain the same in the coming period, especially with the continuation of auditing processes and the identification of banks capable of meeting the new requirements.

The Central Bank previously confirmed that the reform process aims to raise the levels of compliance, governance and transparency, improve institutional performance and enhance the resilience of the banking sector.

The Decline In Deposits Increases The Sensitivity Of The Current Phase.

The issue becomes more sensitive with the decline in total bank deposits during the first months of the year.

According to official data published in August, total deposits in Iraqi banks amounted to about 104.296 trillion dinars by the end of May 2026, down from 104.727 trillion in April and 105.090 trillion in March, meaning that deposits recorded a decline for three consecutive months.

This decline in itself does not mean there is a full-blown banking crisis, but it makes the issue of confidence, liquidity, and the ability of banks to meet withdrawal requests more important for regulators.

Source To Al-Mustaqilla: Protecting Depositors Must Be The Priority

The source calls on the Central Bank of Iraq to take clearer steps towards banks that prove unable to meet their obligations, stressing that protecting citizens’ money must take precedence over any other consideration.

He added that addressing problems in their early stages can prevent the crisis from spreading from a single bank to a wider loss of confidence in the private banking sector.

The source stresses that the anticipated measures, in his opinion, should include a review of the actual liquidity size, the ratio of deposits to liquid assets, non-performing loans, transfers and transactions with parties related to the bank, in addition to each bank’s ability to meet customer withdrawals without delay.

The Most Serious Question Is: How Many Banks Might Face The Same Fate?

So far, there is no official list of other banks that will be placed under guardianship or liquidation, and it cannot be said with certainty that the situation of Al-Taif Bank applies to other banking institutions.

But the guardianship decision, in parallel with the reform program that presents banks with options to continue, merge or exit, makes the next stage open to decisions that may completely redraw the map of the Iraqi banking sector.

The Questions That Remain Are:

Are there really other banks that are unable to meet the demands of their depositors?

What is the amount of money that might be at risk?

Will the central bank announce the results of its evaluation of banks transparently to the public?

Will the guardianship of Al-Taif Bank be an isolated case, or the beginning of a series of broader banking measures?

https://mustaqila.com/أزمة-صامتة-تضرب-المصارف-الأهلية-ومصدر/

The Disappearance Of Small Denomination Coins Is Causing "Daily Disruption" In Iraqi Markets.

2026-09-03 Shafaq News - Kirkuk     Local markets in Kirkuk Governorate are experiencing increasing difficulty in obtaining small denomination banknotes of 250, 500 and 1000 dinars, amid complaints from traders and citizens about their scarcity in daily transactions.

Shop owners say that what is available is often old, worn out or torn, which makes it more difficult to use in buying and selling operations   

At first glance, the problem seems to contradict the available figures on the volume of small banknotes in Iraq, as recent data indicates the existence of hundreds of millions of banknotes of these denominations.

However, their presence in the monetary data does not necessarily mean that all of them are actually available for circulation or in good condition, which raises questions about the cash cycle and the mechanisms for withdrawing damaged banknotes, replacing them, and injecting new alternatives into the markets.    

Daily Confusion    

Abbas Ahmed, a shop owner in the Doctors Street market in Kirkuk, told Shafaq News Agency, "Obtaining 250, 500, and 1000 dinar notes has become more difficult than before, and the problem becomes clear when a customer pays their bill in large denominations, forcing us to ask the customer to buy another item with the remaining amount."    

He points out that some of the small bills that arrive at the shops are in poor condition, as they are torn, dirty, or worn out as a result of frequent handling, which makes it difficult for some merchants and citizens to accept them.    

He adds: "The continuation of this creates daily confusion in the markets, especially for shops that deal with large numbers of customers," stressing that the problem is not related to the value of the small banknote as much as it is related to its role in completing commercial transactions.    

For his part, Samir Abdullah, the owner of a currency exchange shop on Al-Jumhuriya Street in Kirkuk, told Shafaq News Agency that the demand for small denominations has increased significantly, while it is difficult to provide them in the quantities needed by the market.    

It shows that citizens and merchants resort to exchange shops to obtain small denominations, but the available quantities are not stable, and the problem increases when the papers offered for exchange are in a damaged condition.    

He adds that small banknotes are passed between large numbers of people in a short period, which makes them more susceptible to damage compared to larger denominations, noting that some of the banknotes that reach the banking system need to be replaced instead of being put back into circulation.    

Abdullah believes that the solution is not limited to injecting new banknotes only, but also requires withdrawing damaged banknotes from circulation on a regular basis, because their continued existence reduces the amount of usable cash even if official figures indicate the existence of large numbers of these denominations.    

In the Citadel market in Kirkuk, wholesalers face the same problem. Hamza al-Jabari, the owner of a wholesale shop, told Shafaq News Agency that the shortage of small denominations has become part of daily transactions in the market.    

He adds: "Wholesale and retail sales sometimes require returning small amounts to customers, but the lack of these amounts leaves the merchant with limited options, including rounding the price or adding another item instead of the remaining cash amount."    

He points out that some traders keep the 250, 500 and 1000 dinar notes they receive and do not use them in other transactions except when necessary, for fear that they will not be able to obtain them again, which in turn leads to a reduction in the movement of these denominations within the market.    

He points out that "the problem seems simple from a financial standpoint, but its effects expand when it is repeated thousands of times daily, especially in popular markets, food stores, bakeries, transportation, and other activities that depend on direct cash transactions."    

Hundreds Of Millions Of Papers    

The latest estimates published in 2026 indicate that the volume of small denomination banknotes does not necessarily reflect what the average citizen sees in the market.    

According to Shafaq News Agency’s monitoring of cash issuance data, the number of 1000 dinar notes increased from 718 million notes in 2022 to 775 million notes in 2026, while the number of 250 dinar notes increased from 795 million notes to 818 million notes during the same period, while the 500 dinar note decreased slightly from 147 million notes to 145.4 million notes.   

Thus, the total number of banknotes of the three categories amounts to approximately 1.738 billion banknotes according to these estimates for 2026, compared to approximately 1.660 billion banknotes in 2022, an increase of approximately 78.4 million banknotes.    

The figures show that the 1,000 dinar denomination recorded an increase of about 57 million notes, while the 250 dinar denomination increased by about 23 million notes, while the 500 dinar denomination decreased by about 1.6 million notes.    

However, these figures do not mean that all 1.738 billion banknotes are in citizens' pockets or store safes and in good condition for circulation.

They reflect the number of banknotes within the monetary issuance data and do not represent a field survey of the actual quantity of banknotes in circulation or the percentage of damaged ones. This is a crucial point when explaining the problem of the shortage of small denominations.    

The Central Bank of Iraq still includes the 250, 500 and 1000 dinar denominations among the officially circulating banknotes, confirming when issuing the second edition of banknotes that the previous banknotes will continue to circulate alongside the new issues, without any intention of withdrawing them from circulation.    

Damaged Problem    

Economic expert Ali Khalil told Shafaq News Agency that the problem of small denominations should not be measured only by the number of notes issued by the Central Bank, but by the number of notes that are actually valid for circulation.    

He says that small batches are subject to high rates of consumption and damage due to their frequent transfer between individuals, and therefore part of the exported quantity may have gone out of circulation or become in need of replacement.    

He adds that "the presence of more than one billion banknotes of the three categories within the monetary data does not necessarily mean that there is a surplus of them in the markets, because a banknote that becomes damaged loses its practical ability to perform its function, even if it remains counted within the number of banknotes that were issued."    

He points out that addressing the problem requires strengthening mechanisms for replacing damaged banknotes, ensuring that new banknotes reach the markets continuously, and monitoring the movement of cash between banks, exchange offices, and merchants.    

Khalil confirms that "the shortage of small denominations is reflected in daily pricing, and may lead to inaccurate approximation of prices, which can sometimes burden the consumer with small additional amounts, but it becomes significant when it is repeated continuously"    

Central Bank Instructions    

Official data indicates that the Central Bank of Iraq already has specific mechanisms for dealing with damaged banknotes, as it has published official standards for their replacement, which include different conditions and procedures depending on the nature of the damage to the banknote.    

An official electronic service is also available through the Ur portal for submitting requests to replace damaged banknotes at the Central Bank of Iraq, allowing citizens to submit their requests according to the approved procedures.    

These procedures indicate that dealing with damaged banknotes is not the responsibility of the citizen alone, but is part of the cash management system that includes banks, the central bank, and mechanisms for withdrawing invalid banknotes and replacing them with banknotes that are negotiable.    

In 2020, the Central Bank issued a decision to reinstate the penalty for shortages on small denominations, namely 1000, 500 and 250 dinars, effective from October 1, 2020, in accordance with the instructions on standards for the circulation and exchange of banknotes and counting and sorting mechanisms.    

This reflects the monetary policy's interest in providing small denominations in the monetary system, given their widespread use in daily transactions.    

Citizens Face A "Change" Crisis    

Suhad Ibrahim, an employee, told Shafaq News Agency that citizens are the most affected by the problem because they cannot control the availability of small denominations when they buy their daily needs.    

She adds that the customer may pay more than the value of the item, but sometimes does not receive the full change, or is forced to buy something else so as not to lose the remaining amount, noting that this problem is repeated in shops, markets and means of transportation.    

She explains that providing small change in good condition will make everyday transactions easier, especially for employees and low-income earners who deal with small amounts frequently.  

Between Numbers And Reality    

The problem of small change reveals a potential gap between the amount of cash recorded in the monetary issuance data and the cash actually available for daily circulation in good condition.    

Available figures indicate that there are hundreds of millions of banknotes in denominations of 250, 500 and 1000 dinars, but traders in Kirkuk say they are having difficulty obtaining them, while money changers confirm that part of what they receive is damaged or worn out.    

Therefore, the question that arises is not only about the number of notes issued, but also about the volume of notes that are actually valid for trading, the amount that was withdrawn from the market due to damage, and how quickly it was replaced with new notes.    

Economists believe that addressing the problem requires more detailed data on the number of damaged banknotes withdrawn annually, the quantities of new banknotes injected into each denomination, and their geographical distribution among the governorates.  

With a large segment of Iraqis continuing to rely on cash transactions, small denominations remain an essential part of daily economic life, despite their low nominal value.  

While available data shows an increase in the number of 250 and 1000 dinar notes since 2022, and a slight decrease in the 500 dinar note, market complaints indicate that the real challenge lies in the availability of these notes in good condition and in the right place and time.    

Hence, there seems to be a need to strengthen the cycle of replacing damaged currency, and to ensure that small denominations have access to banks, exchange offices and markets, in order to prevent the problem of "change" from turning into a daily crisis for both the citizen and the merchant.    

https://www.shafaq.com/ar/تقارير-وتحليلات/اختفا-العملات-النقدية-الصغيرة-يتسبب-بـ-رباك-يومي-في-ال-سواق-العراقية

The Candlestick Makers Are Back, and This Time They're Not Joking

The Candlestick Makers Are Back, and This Time They're Not Joking

Notes From the Field By James Hickman (Simon Black / Sovereign man)  September 3, 2026

In 1845, the French economist Frédéric Bastiat petitioned parliament on behalf of the nation's candlestick makers. They were being ruined, he wrote, by an unscrupulous rival that was flooding the market with light at a price no honest candlestick maker could match.

This light-producing rival, of course, was the sun.

And Bastiat satirically demanded "a law requiring the closing of all windows, dormers, skylights, inside and outside shutters, curtains… in short, all openings, holes, chinks and fissures" to ensure that no sunlight could enter French homes.

Think of the jobs this would create. "If more tallow [curtains] be consumed, there will arise a necessity for an increase of cattle and sheep," the petition argued. "Thousands of vessels would soon be employed in the whale fisheries [for oil]."

Bastiat, one of history's most famous proponents of free markets, was obviously joking. He wrote the petition to mock the tariff wall that sheltered France's industries from cheap foreign goods— block the cheaper competitor, protect the domestic producer, count the jobs saved.

No one counted the cost of protectionism: everyone else paying more for everything, and the whole country became poorer.

Yet decade after decade since, every new innovation has been met with exactly this kind of uproar. And nobody is joking.

It wasn't so long ago that taxi drivers were up in arms over Uber undercutting their prices. In June 2015, nearly 3,000 of them shut down parts of Paris, burning tires and blocking airport roads, because Uber's cheap service didn't require the professional taxi license that could cost $270,000.

The French government caved within a day, ordering police to seize the unlicensed Uber drivers' cars.

Now the wheel has turned. Waymo's robotaxis launched in Atlanta in June 2025, bookable through the Uber app of all places. And Uber drivers say the competition is cutting their pay.

Naturally the Atlanta Rideshare Drivers Union wants the city to slap a $0.50 to $1.00 fee on every robotaxi ride, paid into a "driver transition fund," plus a ban on robo pickups at the Atlanta airport.

If only they could tax the sun for the candlestick makers.

The federal government runs the same play, just bigger.

In January 2025, the Commerce Department finalized its ‘Connected Vehicle Rule’, which bans cars with Chinese-linked software from the US market, starting with the 2027 model year.

The stated reason is national security: keeping foreign adversaries out of the cameras, microphones, and GPS units on American streets.

That's a real concern, to be fair. But then came the carve-outs.

Volvo, majority-owned by China's Geely, got authorization in May to keep selling. Ford, after talks with the department, decided its China-built Lincoln Nautilus doesn't need an exemption at all.

But Polestar— owned by the same Chinese parent as Volvo— was shut out and is leaving the US market.

The Commerce Department doesn't publish these decisions or its reasoning, so nobody outside the building knows why one Geely brand got a green light and the other got kicked out of America.

Let’s be honest: if these Chinese cars were really a security threat, there would be no carve-outs to negotiate. There would be a flat ban. No exceptions.

The real threat of cheap Chinese cars is to the profits of American automakers; Chinese cars are very inexpensive— like a decent quality mid-size SUV for around $20k. So many US buyers would start driving Chinese that the American automakers would either have to adapt and compete... or suffer catastrophic losses.

The end result of these bans is less competition, meaning Americans end up paying more for their vehicles.

Just add this to the long list of things which governments, from city councils to federal regulators, make more expensive.

Yesterday we wrote about how federal influence over local building codes adds $132,000 to the average new home.

Today it's how they're making buying a car and taking a quick trip more expensive.

Ask California how it's doing on that nonexistent high-speed rail… $15 billion and 18 years in, without a mile of track. Or ask Europeans, where climate fuel mandates are already tacking surcharges onto every plane ticket.

The receipts are everywhere: everything the government touches becomes more expensive.

College tuition is up about 1,200% since 1980— the surge began as soon as the federal government made itself the nation's student lender.

Since Obamacare passed, the average family health insurance premium has nearly doubled.

Even junk food became more expensive due to government  food subsidies; in fact the moment 18 states pulled soda and snacks off the food stamp list, PepsiCo cut prices on Doritos and Lay's by up to 15%.

Housing, transportation, food, healthcare, education— all swamped by government interference, all quickly became less affordable.

And underneath all of it, bringing the whole pot to a boil, is the inflation that politicians and regulators caused with their own spending.

Yet who do they blame? Greedy corporations.

Inflation has nothing to do with greed. It has everything to do with incompetence and irresponsibility.

Bastiat's joke was that nobody would ever actually file the candlestick makers' petition. Yet 181 years later, what started as satire is taking place every single day.

A political class that treats cheaper goods and services as a threat is deliberately choosing to make the country poorer.

To your freedom,   James Hickman    Co-Founder, Schiff Sovereign LLC

PS: A government that treats cheaper as a threat isn't going to start choosing growth anytime soon. That's exactly why we publish Plan B Confidential— our flagship research on legal, practical ways to diversify your savings, your income, and even your residency beyond any single government's bad decisions.

https://www.schiffsovereign.com/trends/the-candlestick-makers-are-back-and-this-time-theyre-not-joking-155789/?inf_contact_key=b0ef6370a6dded2c719cd076e817921372bed8fb19cd27e28b7566817f14a196

Reset Intelligence: Level Playing Field

Reset Intelligence: Level Playing Field

9-3-2026

Level Playing Field

By Reset Intelligence | @EXIT_FIAT

The G20 closed in Asheville with the loudest clips doing the least work. The US Treasury Secretary put exchange rates on the official record as a policy-choice cause of global imbalances, and the word he used for the destination was equilibrium.

Within the same 48 hours, his department told Japan its currency sits below its fundamentals and should rise, and told Iran its money is finished.

The Three Lines

Hosting the world’s 20 largest economies, Scott Bessent read a negotiated text into the record. Global imbalances do not arise by accident. They are the cumulative result of policy choices on savings, consumption, investment, subsidies, market access, and exchange rates. They matter most when they are excessive, persistent, and larger than the fundamentals warrant. And the objective of the whole G20 workstream is to identify which policy choices can restore equilibrium.

The members agreed the test, agreed the harm hits surplus and deficit economies alike, and handed the IMF and the OECD the job of watching for the gaps. The Chair’s Statement also wrote free, safe and predictable navigation through the Strait of Hormuz into the G20’s own record.

The Loud Half of the Same Treasury

The clips that traveled were about Iran. Bessent told the regime on worldwide television that Treasury knows its British Virgin Islands trust accounts and its $100 million houses, promised a bank sanction this week and another the week after, and said the regime’s stolen assets go back to the Iranian people or to the victims of its terror. He also said the sentence printed on the cover of our book: we are burying the head of the Iranian snake.

The Board Kept Moving

• Kurdistan payroll – public salaries came off cash on September 1, routed onto bank cards through the MyAccount system

• Parliament – the new legislative term is set to open within days, with the vote on the 9 remaining cabinet posts to follow

• The central bank – Tuesday’s deposit auction ran routine at 5.25%, the quiet posture that holds until the day it does not

• The 2027 budget – the paper that writes the dinar’s value into law stays on schedule for parliament by mid-September

• Venezuela – the National Assembly backed the US oil arrangement as Energy Secretary Wright arrived in Caracas to advance it

That is the short version. The full briefing walks the three lines of the speech, the yen precedent, what the 20 signed, and why a currency held below its fundamentals for 2 decades is the textbook entry under the test the referees just agreed – with every source verified.

The referees just published the rule. The only question left is who is positioned when the whistle blows.

Read the full daily briefing free for 5 days. Sign up here: resetintelligence.com

https://dinarchronicles.com/2026/09/03/reset-intelligence-level-playing-field/

Iraq Economic News and Points To Ponder Thursday Afternoon 9-3-26

Small Banknote Shortage Causes Daily Disruption In Kirkuk Markets

2026-09-03 Shafaq News- Kirkuk   Merchants and residents in Kirkuk, northern Iraq, are increasingly struggling to obtain 250-dinar ($0.19), 500-dinar ($0.38) and 1,000-dinar ($0.76) banknotes, with traders reporting shortages of small denominations and growing difficulties using worn or damaged notes in daily transactions.

Abbas Ahmed, a shopkeeper in Kirkuk’s Doctors Street market, told Shafaq News that obtaining the three denominations has become increasingly difficult. “When customers pay with larger notes, some shops ask them to buy another item rather than give them their change.”

Some small-denomination notes reaching shops are also torn, dirty or heavily worn, making merchants and customers reluctant to accept them.

Samer Abdullah, a currency exchanger on Republic Street, noted a sharp increase in demand for small denominations, while supplies remain inconsistent.

Residents and merchants often turn to exchange shops for smaller notes, but the quantities available fluctuate. Some notes brought in for exchange are already damaged and need to be replaced rather than returned to circulation.

Small-denomination notes change hands more frequently than larger ones, making them more vulnerable to wear and tear, Abdullah explained.

Describing the shortage as a daily problem, Hamza al-Jubouri, a wholesaler in Kirkuk’s Citadel Market, told Shafaq News that small amounts of change are often needed in wholesale and retail transactions, leaving merchants with limited options when the required denominations are unavailable.

Some traders hold on to 250-dinar, 500-dinar, and 1,000-dinar notes rather than spend them, fearing they will be unable to replace them later. This further reduces the number of these notes circulating in the market.

Shafaq News’ review of currency issuance data shows that the number of 1,000-dinar notes rose from 718 million in 2022 to 775 million in 2026. The number of 250-dinar notes increased from 795 million to 818 million, while 500-dinar notes fell slightly from 147 million to 145.4 million.

Together, the three denominations accounted for about 1.738 billion notes in 2026, compared with roughly 1.660 billion in 2022, an increase of about 78.4 million notes.

The figures do not indicate how many of those notes are physically available in shops or remain in good enough condition for daily use. They reflect issuance data rather than the number of notes actually circulating or the proportion that has become damaged.

The Central Bank of Iraq (CBI) continues to list 250-dinar, 500-dinar and 1,000-dinar notes among the country’s officially circulating denominations. It has also stated that older notes remain legal tender alongside newer issues.

In an interview with Shafaq News, Economist Ali Khalil said the availability of small denominations should be measured not only by the number of notes issued but also by the number that remain fit for circulation.

Frequent handling makes small-denomination notes particularly vulnerable to damage, meaning some of the issued supply may have been removed from circulation or require replacement.

Khalil pointed out that the existence of more than one billion notes across the three denominations does not necessarily indicate a surplus in the market. “Damaged notes may no longer be usable even if they remain part of the official issuance figures.”

He called for stronger mechanisms to replace damaged notes, ensure a steady supply of new notes and monitor the movement of cash through banks, exchange shops and merchants.

The CBI has procedures for handling damaged banknotes, including criteria for their replacement depending on the type and extent of damage. An electronic service is also available through the Ur platform to submit requests for the replacement of damaged banknotes.

In 2020, the central bank reinstated penalties related to shortages of 1,000-dinar, 500-dinar, and 250-dinar notes, effective Oct. 1 of that year, under rules governing the circulation and replacement of banknotes and their counting and sorting.

Office worker Suhad Ibrahim told Shafaq News that consumers are among those most affected because they have little control over the availability of small denominations when making everyday purchases.

Customers who pay more than the price of an item sometimes do not receive their full change or are asked to buy another item to avoid losing the remaining amount.

The shortage is particularly noticeable in shops, markets and public transportation, where small cash payments are common.

Despite their low face value, 250-dinar, 500-dinar and 1,000-dinar notes remain an important part of Iraq’s cash-based economy. While official figures show an increase in the number of 250-dinar and 1,000-dinar notes since 2022 and a slight decline in 500-dinar notes, merchants in Kirkuk continue to report difficulty obtaining small denominations in usable condition.

https://www.shafaq.com/en/Economy/Small-banknote-shortage-causes-daily-disruption-in-Kirkuk-markets

USD/IQD Edges Higher In Baghdad, Steady In Erbil

2026-09-03 Shafaq News- Baghdad/ Erbil   The US dollar opened Thursday’s trading mixed in Iraq, hovering around 154,500 dinars per 100 dollars.

According to a Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya central exchanges at 154,650 dinars per 100 dollars, up from yesterday's session’s 154,400 dinars.

In the Iraqi capital, exchange shops sold the dollar at 155,000 dinars and bought it at 154,000 dinars, while in Erbil, selling prices stood at 154,600 dinars and buying prices at 154,500 dinars

https://www.shafaq.com/en/Economy/USD-IQD-edges-higher-in-Baghdad-steady-in-Erbil

Iranian Rial Falls To Record 2.2M Per US Dollar

2026-09-02 Shafaq News- Tehran   Iran’s currency fell to a record low on Wednesday, with the US dollar trading above 220,000 tomans, equivalent to 2.2 million rials, on the free market, from just over 210,000 tomans two days earlier.

Market data showed the dollar at about 220,300 tomans, the euro near 255,000, and the British pound around 297,000. The Imami gold coin, a widely followed domestic store of value, rose to about 226 million tomans.

US Treasury Secretary Scott Bessent unveiled “Operation Economic Outcast” on August 24, targeting nearly 60 Iran-linked individuals, entities, and vessels and widening potential secondary sanctions across sectors including digital assets, technology, gold, aviation, and shipping.

Renewed US-Iran military exchanges and a US blockade have since added pressure on Iran’s economy and crude exports. Iranian loadings fell to about 220,000 to 255,000 barrels per day in August from roughly 2 million bpd in March, according to industry data cited by Reuters.

Central Bank Governor Abdolnaser Hemmati said on September 1 that Iran had sufficient foreign-currency reserves and was prepared to inject up to $2 billion into the market to curb volatility.     One Iranian toman = 10 rials

https://www.shafaq.com/en/Economy/Iranian-rial-falls-to-record-2-2M-per-US-dollar

Basrah crude prices jump nearly 6%

2026-09-03 Shafaq News- Basrah   Iraq’s Basrah crude prices climbed sharply on Thursday, with Basrah Heavy rising $4.81, or 5.99%, to $85.15 per barrel, while Basrah Medium gained $4.81, or 5.75%, to $88.45.

Other regional grades also advanced. The OPEC basket rose 3.63% to $95.32 per barrel, while Oman crude gained 5.16% to $99.18.

Saudi Arab Light climbed 6.70% to $91.78 per barrel, while Kuwait Export crude rose 7.21% to $96.11.

Benchmark futures moved more narrowly. Brent slipped 0.30% to $95.34 per barrel, while US West Texas Intermediate eased 0.11% to $90.91. Murban crude edged higher to $106.10.

https://www.shafaq.com/en/Economy/Basrah-crude-prices-jump-nearly-6

Gold Jumps 1% As Dollar, Yields Ease Ahead Of US Jobs Data

2026-09-03 Shafaq News Gold rose more than 1% on Thursday as the U.S. ​dollar and Treasury yields eased, while investors strapped in for U.S. nonfarm ‌payrolls data that could help shape expectations for the Federal Reserve's next policy move.

Spot gold rose 1.1% to $4,434.70 per ounce by 0425 GMT after hitting a near one-month low in the previous session.

U.S. ​gold futures gained 1.5% to $4,480.10.

The U.S. dollar was under pressure while U.S. Treasury yields ​slipped from multi-year highs. A softer dollar makes greenback-priced metals less ⁠expensive for holders of other currencies.

Key U.S. nonfarm payrolls data is due on Friday. ​Meanwhile, the ADP National Employment Report showed U.S. private payrolls increased moderately in August.

"The payrolls ​report will probably be the biggest defining moment of the week. If the jobs report misses expectations, and September rate hike bets decline, that could see gold move higher," said Ilya Spivak, head ​of global macro at Tastylive.

"If prices get over the $4,400 level they're currently in, we ​are going back in the direction of $4,500 and then $4,700."

Markets are currently pricing in a 62% probability ‌of ⁠a U.S. rate hike this month, the CME FedWatch Tool showed.

U.S. economic activity increased modestly, employment rose slightly, and prices increased moderately in recent weeks, according to a mixed report published on Wednesday by the Fed that may do little to convince central bank ​policymakers one way or ​another as they ⁠weigh whether to raise interest rates at their September 15 to 16 meeting.

Gold is traditionally seen as an inflation hedge, but ​higher rates increase the opportunity cost of holding the non-yielding asset.

On ​the geopolitical ⁠front, top aides to U.S. President Donald Trump are pushing to keep the Iran war from escalating before November's midterm elections to staunch Republican electoral losses, four people familiar with ⁠the discussions ​said. White House officials will consider ramping up ​military action after the November 3 vote, the sources said.

Among other metals, spot silver rose 1.2% to $66.08, platinum climbed 1% to $1,777.79 ​and palladium firmed 0.8% to $1,356.50. (REUTERS) https://www.shafaq.com/en/Economy/Gold-jumps-1-as-dollar-yields-ease-ahead-of-US-jobs-data

Seeds of Wisdom RV and Economics Updates Thursday Afternoon 9-3-26

Good Afternoon Dinar Recaps,

U.S. TREASURIES LOSE THEIR “SAFETY PREMIUM”: FED WARNING SIGNALS A STRUCTURAL REPRICING OF GLOBAL CAPITAL

Federal Reserve Governor Christopher Waller says the traditional safety premium attached to U.S. Treasuries has largely disappeared, raising important questions about future borrowing costs, the dollar and the global flow of capital.

 OVERVIEW

• Treasury Repricing: Fed Governor Christopher Waller says the historical safety premium on U.S. Treasury debt has largely disappeared, contributing to a higher estimated neutral interest rate.

• Debt Meets Higher Rates: Waller pointed to America’s roughly $40 trillion debt load and deficits near 6% of GDP, warning that substantially greater fiscal adjustment is needed to put debt on a sustainable path.

• Global Capital Impact: If investors demand more compensation to hold Treasury debt, the consequences can extend beyond Washington—affecting global interest rates, capital flows, currencies and asset valuations.

KEY DEVELOPMENTS

1. The Treasury “Safety Premium” Is Under Pressure

For decades, U.S. Treasuries have benefited from their reputation as one of the world's safest and most liquid assets.

That advantage has allowed the U.S. government to borrow on terms that reflect not only the creditworthiness and liquidity of Treasury securities, but also their safe-haven status.

Waller's warning is significant because he says that premium has largely disappeared.

That does not mean Treasuries are no longer considered safe. Rather, investors may no longer be willing to accept as much of a yield discount simply because the securities are issued by the U.S. government.

2. A Higher “Neutral Rate” Could Become Structural

Waller's argument goes beyond today's interest-rate decision.

If investors require higher returns to hold government debt, the interest rate consistent with a normally functioning economy—the neutral rate—could be higher than previously estimated.

That matters because even if the Federal Reserve eventually lowers its policy rate, long-term Treasury yields could remain elevated if fiscal conditions and investor demand continue to push borrowing costs higher.

In other words, the cost of money may increasingly be influenced by market forces outside the Fed's direct control.

3. America’s Debt Load Is Becoming Part of the Interest-Rate Equation

Waller specifically connected the Treasury-market issue to the U.S. fiscal position.

He noted that the federal debt has reached approximately $40 trillion, while the budget deficit remains around 6% of GDP. Waller argued that reducing the deficit toward zero would be necessary to place the debt trajectory on a more sustainable footing.

This creates a difficult feedback loop:

Large deficits → greater Treasury issuance → more borrowing → investor demand becomes more important → higher required yields can increase government interest costs.

The larger the debt stock becomes, the more consequential even relatively small changes in borrowing costs can become.

4. The Fed Can Influence Short-Term Rates—but Not Everything

Waller also indicated that he could support leaving rates unchanged at the September meeting if inflation continues to cool. Markets subsequently reduced expectations for an immediate rate increase.

But that is precisely what makes the Treasury warning important.

The Federal Reserve controls the short-term policy rate. It does not directly control the yield investors demand on 10-, 20- or 30-year Treasury securities.

Those longer-term yields reflect inflation expectations, fiscal conditions, Treasury supply, investor demand, economic growth and the compensation investors require for holding longer-duration debt.

This means the U.S. could experience lower short-term Fed rates while long-term government borrowing costs remain relatively high.

5. Treasury Repricing Is Already Reaching Households and Global Markets

The effects are not confined to government finance.

Reuters reported today that the average U.S. 30-year mortgage rate has risen to 6.71%, its highest level since July 2025. Mortgage rates tend to move with Treasury yields, meaning elevated long-term government borrowing costs can feed into household financing conditions.

The implications also extend internationally.

U.S. Treasury yields serve as a major reference point for global borrowing costs and asset pricing. If investors demand higher yields from the world's largest government bond market, other sovereign and corporate borrowers can face pressure to offer competitive returns as well.

That connects directly to the IMF warning from this morning: rising yields in advanced economies can transmit higher borrowing costs into developing economies.

WHY IT MATTERS

• Economy

Higher long-term borrowing costs can affect mortgages, business investment, government interest expenses and economic growth.

The key issue is that borrowing costs can remain elevated even when the Fed is no longer actively tightening policy.

• Markets

Treasury securities sit at the foundation of global financial markets.

A change in the return investors require from Treasuries can influence stocks, corporate bonds, currencies, commodities and emerging-market assets.

• Policy

The Federal Reserve can adjust monetary policy, but fiscal policy determines how much debt the government must finance.

Waller's comments therefore highlight a growing tension between monetary policy and fiscal sustainability.

• Global System

The Treasury market has historically functioned as a core safe-haven destination for global capital.

If that advantage becomes smaller, investors may increasingly reassess where capital should be held, what currencies should be used and what assets deserve a premium valuation.

WHY IT MATTERS TO FOREIGN CURRENCY HOLDERS

• Treasury yields: Sustained higher U.S. yields can influence the relative attractiveness of dollar-denominated assets.

• Dollar value: Changes in Treasury demand and Fed expectations can produce significant shifts in the dollar against other currencies.

• Capital flows: If investors diversify more broadly because the Treasury safety premium has weakened, capital could move differently between the dollar, other major currencies, emerging markets and alternative assets.

• Purchasing power: Currency values ultimately affect the cost of imported goods, energy and other internationally traded products.

• Global risk: Currency holders should watch not just the Fed's next decision, but whether long-term Treasury yields remain elevated even when short-term policy expectations change.

IMPLICATIONS FOR THE GLOBAL RESET

• Pillar 1: Debt

The debt story is moving beyond the question of how much debt exists to the question of what investors require to finance it.

If the world's largest sovereign borrower must consistently offer higher yields to attract capital, the cost of maintaining the existing debt structure becomes increasingly important.

• Pillar 2: Assets

Treasuries occupy a central position in the global asset-pricing system.

A diminished safety premium could encourage investors to reconsider the traditional hierarchy of government bonds, currencies, commodities and other stores of value.

That does not mean the dollar or Treasury market is being replaced. It means the risk-return calculation surrounding the existing system may be changing.

CONCLUSION

The significance of Waller's comments is not simply whether the Federal Reserve raises or holds rates in September.

The bigger issue is whether the long-term cost of U.S. government borrowing is undergoing a structural repricing.

If the traditional Treasury safety premium has weakened, Washington may have less ability to rely on historically low borrowing costs simply because Treasury securities are viewed as the world's premier safe asset.

That creates a new financial-system question: What happens when the world's benchmark safe asset must increasingly compete for capital on the basis of yield rather than safety alone?

For global markets, currencies and debtors, that question may ultimately matter more than the next quarter-point Fed decision.

The next major shift may not come from the Federal Reserve alone—it may come from the interaction between U.S. debt, Treasury yields and the global demand for capital.

Seeds of Wisdom Team
Newshounds News™ Exclusive

SOURCES

• Reuters — “Fed's Waller says safety premium for Treasuries is gone, pushing neutral rate higher”

• Reuters — “US fixed 30-year mortgage rate rises to highest since July 2025”

~~~~~~~~~~

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Thursday Iraq News Posted by Tishwash at TNT 9-3-2026

TNT:

Tishwash:  With the participation of local and foreign investors, Erbil will host an international economic forum this month.

The Erbil Chamber of Commerce and Industry announced on Tuesday its readiness to host an international economic forum with the participation of traders and investors from Iraq, Turkey, and Azerbaijan. The Chamber indicated that the forum aims to strengthen trade and economic relations among the three countries.

Ibrahim Agha Gerdi, a member of the Erbil Chamber of Commerce and Industry, told the Iraqi News Agency (INA): “An agreement was reached to hold an international economic conference in Erbil on September 20th, following our visit to Azerbaijan with the head of the Baghdad Chamber of Commerce, and in coordination with the Iraqi Chambers of Commerce.”

He added that “the conference is expected to see broad participation from economic and commercial entities, with the goal of exploring prospects for economic cooperation and strengthening trade and investment relations.”

He explained that “the forum will include more than 130 participants from the central and southern provinces of Iraq and the Kurdistan Region, in addition to approximately 150 traders and business owners from Turkey and Azerbaijan,” noting that “its objective is to develop economic and trade relations among the three countries.”  link

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Tishwash:  The Minister of Transport discusses with the World Bank and the Asian Bank support for strategic projects and the development path

Minister of Transport Wahab al-Hassani met on Tuesday with representatives from the World Bank and the Asian Infrastructure Investment Bank (AIIB) to discuss support for strategic projects and the requirements of the Development Road Project.

A statement from the Ministry of Transport, received by the Iraqi News Agency (INA), indicated that "Minister of Transport Wahab al-Hassani received delegations from the World Bank and the AIIB at the ministry headquarters in two separate meetings, a step that underscores the ministry's commitment to strengthening cooperation with international financial institutions and supporting its strategic projects."

The statement continued, "The minister discussed with the two bank delegations opportunities to finance and develop a number of transport projects, particularly in the railway, port, airport, and road sectors, which would contribute to accelerating the implementation of priority projects, enhancing the readiness of the Iraqi transport system, and supporting the requirements of the Development Road Project."

According to the statement, the minister expressed his welcome to the delegations and the ministry's keenness to develop partnership and cooperation, emphasizing the importance of securing suitable funding sources to advance priority projects. Representatives of the two banks expressed their readiness to explore financing opportunities for the ministry's projects in accordance with established procedures and studies.  link

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Tishwash:  During his meeting with the Minister of Finance, the Asian Development Bank affirmed its readiness to support and finance priority projects in Iraq.

Finance Minister Faleh Sari emphasized to a delegation from the Asian Infrastructure Investment Bank (AIIB) on Wednesday the importance of strengthening cooperation with international financial institutions and benefiting from their expertise.

The delegation in turn, indicated its readiness to support and finance priority projects in Iraq. The Ministry of Finance stated in a press release received by the Iraqi News Agency (INA) that "Finance Minister Faleh Sari discussed on Wednesday with a delegation from the Asian Infrastructure Investment Bank, headed by Konstantin Lemitovsky, prospects for cooperation in financing infrastructure projects and supporting development priorities in Iraq.

The meeting was also attended by the Undersecretary of the Ministry and the Directors General of the Iraqi Fund for External Development and the Public Debt Department." The statement added that "the head of the delegation reviewed the nature of the bank's work and the projects it contributes to financing in the region and globally in the transport, energy, water, and digital infrastructure sectors."

According to the statement, the Minister stressed "the importance of strengthening cooperation with international financial institutions and benefiting from their expertise and capabilities in supporting the development process and infrastructure development in Iraq." He emphasized that "proposed projects for financing are subject to careful study to ensure the selection of the best options for Iraq in terms of economic feasibility, financing efficiency, and cost, in a way that achieves the national interest, meets development priorities, and maintains the soundness of the state's financial position."

For its part, the Asian Development Bank delegation affirmed its readiness to support and finance priority projects in Iraq, particularly strategic infrastructure projects, foremost among them the Development Road project, in order to contribute to enhancing the country’s economic development.   link

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Tishwash:  Living costs squeeze savings for Iraqi households

For many salaried Iraqis and retirees, a month's pay is largely spent the moment it arrives, leaving little room for savings or investment as rent, utilities, food and transportation take a growing share of household income.

Abu Ahmed, a Baghdad resident, said his salary is "gone as soon as I receive it," with rent, bills, food and transportation taking priority before any money can be set aside. What remains, he said, is too little to save in any meaningful way.

The timing of salary payments adds to the strain. Hassan Hadi, another Baghdad resident, said household expenses continue regardless of whether salaries arrive on schedule, with school fees, clothing, private generators, food and transportation consuming much of his income.

What The Essentials Cost

The pressure is reflected in the cost of basic goods and services. Regular gasoline is priced nationally at 450 dinars per liter, about $0.35, under decisions issued by the Council of Ministers.

Many Baghdad households also rely on neighborhood generators during outages in the national grid. The Baghdad Provincial Council sets monthly generator rates; in June 2026, it priced an ampere at 12,000 dinars ($9) for round-the-clock service, 8,000 dinars ($6) for night-only supply and 6,000 dinars ($4.60) in privatized areas linked to the national grid.

Against those costs, Iraq's statutory minimum wage has remained at 350,000 dinars a month, about $269, since a 2017 cabinet decision. That is about 30% below the roughly 500,000 dinars ($385) that labor unions cite as an estimated monthly poverty line.

Education can add substantially to household expenses. Annual fees at Iraq's private colleges range from about 1.2 million to 8 million dinars ($920 to $6,150), rising above 10 million dinars ($7,690) for some medical and dental programs, according to government figures.

A Low Rate Of Saving

Mudhhir Mohammed Salih, financial adviser to the prime minister, told Shafaq News that Iraq's gross national savings average 12% to 15% of GDP, with the rate fluctuating according to oil prices, income, consumption and investment.

Using a measure focused on individuals rather than national savings, economist Hilal al-Taan said about 9.7% of Iraqis saved money in 2024, well below the global average. He attributed the low rate to limited incomes, high spending on food and housing, weak confidence in banks and rising living costs.

Inflation And The Shrinking Dinar

Najm Abdul-Tarish, an academic at the University of Dhi Qar, said much of a household's income goes toward housing, education and healthcare, while inflation erodes the dinar's purchasing power. In practical terms, the money in a worker's pocket buys less even when its face value remains unchanged.

"Higher inflation can therefore erode savings while raising household expenses, putting additional pressure on both saving and investment," Abdul-Tarish told Shafaq News.

Exchange-rate pressures add another dimension. While the Central Bank of Iraq sets the official rate at 1,300 dinars to the dollar, the currency has traded weaker on the parallel market. In May 2026, $100 sold for about 153,750 dinars in Baghdad, equivalent to roughly 1,538 dinars to the dollar, according to exchange-shop data.

Cash Outside The Banks

Salih said a large amount of cash circulates outside Iraq's banking system, although he cautioned that money held outside banks should not be treated entirely as savings because much of it is used for everyday purchases, trade and other transactions.

Moving a larger share through banks could strengthen their capacity to finance economic activity, he said.

"A larger share of savings moving through banks would strengthen their ability to mobilize domestic resources for lending and investment," Salih said, pointing to the need for better banking services, greater public confidence in financial institutions and wider use of electronic payments.

Central Bank figures illustrate the challenge. Total deposits at operating banks fell from 133.50 trillion dinars ($102.7 billion) in 2023 to 122.88 trillion dinars ($94.5 billion) in 2024. Over the same period, bank credit increased from 95.66 trillion dinars ($73.6 billion) to 102.24 trillion dinars ($78.6 billion), increasing the importance of attracting deposits to support lending.

Economist Dhergham Mohammed Ali linked weak savings to the limited use of banks, calling for wider adoption of electronic payments and more point-of-sale terminals and cash facilities across retail businesses and transportation.

By the CBI's latest reading, currency in circulation totaled 111.189 trillion dinars ($85.5 billion), of which 101.966 trillion dinars ($78.4 billion) circulated outside the banking system — about 91.7% of the total.

That does not mean the money represents untapped household savings; much of it finances everyday transactions. But the scale highlights the challenge facing Iraq's banking sector: drawing more economic activity into formal financial channels while many households have increasingly little income left to save.  link

Iraq Economic News and Points To Ponder Thursday Morning 9-3-26

Reforming The Iraqi Economy

Economic  2026/09/03   Zuhair Kazem Aboud   The Iraqi state is constitutionally obligated to reform the Iraqi economy according to modern economic principles, ensuring the full utilization of resources, diversification of income sources, and the encouragement and development of the private sector.

This obligation is stipulated in Article (25) of the Constitution. If this obligation rests with the state, what is the role of the people in supporting the government to improve the Iraqi economy and expedite overcoming the crisis inherited from the previous era?

The Iraqi economy is currently experiencing a multifaceted crisis. Its reliance on oil revenues makes the government vulnerable to fluctuations in global prices, compounded by US restrictions on dollar transactions and the damage inflicted on the Iraqi treasury by the expansion of sanctions on commercial and financial networks.

The difficulties are most evident in managing public spending and ensuring the continued payment of salaries to employees and retirees. The government also faces obstacles that discourage investment across all sectors, in addition to the volatile exchange rates used to import food.

The government is facing debts that are burdening the treasury, and it is trying, as much as it can, through plans and foundations that are capable of reducing or controlling those debts.

 It warns against relying on loans and borrowing, given the existence of a parasitic economic class that has benefited and continues to benefit from the fragile financial situation that the country is going through.

In light of all this, it is incumbent upon any group that takes responsibility for the course of executive power to exert all efforts to repair and reform the foundations of the Iraqi economy, and to elevate it in a way that enables it to control and monitor the economic and financial affairs of the country.

However, the government's confrontation with this dilemma, which concerns the lives and future of Iraqis, requires support and national stances from all sectors of the Iraqi people.

The confrontation cannot be completed through mere wishes and solidarity, nor by finding ways to impose taxes that burden citizens or hinder investment. Everyone here is responsible for playing a positive role in curbing the corruption that is draining the state's vast resources.

This is what the government has begun to do, supported by the judiciary, to shoulder the burden of a national stance that supports Iraqi agriculture and industry.

It is also crucial to navigate the critical phase Iraq is going through without resorting to disrupting stability or security, sabotage, or road blockades.

 Furthermore, it is essential to contribute to diversifying the structure of the Iraqi economy by engaging in the productive private sector as an alternative to reliance on public sector jobs.

This includes expanding savings, restoring confidence in Iraqi banks, and promoting digital transactions as much as possible instead of cash transactions. It also involves controlling tax revenues, border crossings, and customs.

 Simply put, the problem is not merely a passing liquidity crisis or a lack of confidence in Iraqi banks among Iraqi citizens, but rather the anxiety they experience as a result of rumors and news spread by biased media outlets.

 Iraq is a productive and economically capable country whose governments have inherited a legacy of destruction and violations. Economically, he has further distorted his economy, which requires interaction between government reform and popular support.

We do not suffer from a lack of resources, but rather from poor management of these resources and their conversion into production and job opportunities.

In addition, oil should not be relied upon and treated as a source of funding for salaries and current expenses, but rather it should be considered as capital for building a diversified economy that contributes to raising growth potential.

https://alsabaah.iq/137631-.html

85% Of Iraqis' Money Is Outside Banks... TBI Reveals The Sector's Challenges And Its Upcoming Transformation Plan.

Last updated: September 2, 2026   The Independent - The Iraqi banking sector is facing one of its most complex problems, with more than 85% of the cash mass remaining outside the banking system, at a time when pressures related to compliance, sanctions, digital transformation and rebuilding citizens’ trust in financial institutions are increasing.

Ali Abdul-Ridha Alwan, director of the Trade Bank of Iraq (TBI), revealed that the large percentage of funds outside banks poses a real challenge to the economy, because it reduces the banking sector’s ability to circulate liquidity, finance projects, and expand lending and investment operations.

Alwan explained, during a dialogue session with a number of media professionals, that a large part of Iraqi funds is still being held outside official banking channels, including the liquidity that citizens have in their homes, which limits the effectiveness of banks in supporting economic activity.

According to Alwan, this reality is linked to a long accumulation of political and economic crises that have affected citizens’ confidence in banking institutions, making the restoration of this confidence one of the basic priorities of any real financial reform process.

Dealing With Iran Under Multiple Oversights

Regarding the financial and commercial transactions with Iran, Alwan stressed that this file is not subject to a single banking decision, but is managed through several governmental and regulatory bodies, including financial authorities, the Ministry of Foreign Affairs, the Central Bank of Iraq, and the Iraqi Trade Bank.

He explained that TBI plays a supporting role in implementing the approved procedures and clarifying their nature to banks and global financial institutions, stressing that these procedures are not directed against customers, but rather come within the framework of compliance with international rules and requirements for financial control and supervision.

This issue is becoming increasingly sensitive as international financial institutions tighten their control over the movement of funds and transfers, especially those related to countries and entities subject to sanctions.

International Tests For Iraqi Banks

Alwan pointed out that a number of international banks have conducted tests and surveys of Iraqi banking institutions in recent years to measure the level of compliance and adherence to international standards.

He indicated that the results showed the need for further development in the Iraqi banking sector, whether in control systems, compliance, or risk management, in order to strengthen its relationships with international banks and financial institutions.

Regarding the US sanctions on some Iraqi banks, Alwan ruled out that media coverage alone was the reason for taking these decisions, stressing that the US authorities rely on a wide system of information and sources before imposing any measures.

Battle to Restore Trust

The statements of the director of “TBI” indicate that the most prominent challenge facing the banking sector is not only related to sanctions or external measures, but also to convincing Iraqi citizens to deposit their money in banks.

The more money there is outside the banking system, the less able banks are to use it for lending, financing and investment, which directly impacts market activity and economic growth opportunities.

Therefore, addressing the problem of cash outside banks requires, in addition to regulatory reforms, improving services and transaction speeds, providing more advanced digital tools, and ensuring higher levels of security and trust.

Debts And A Plan To Recover Funds

On another note, Alwan confirmed that the Iraqi Trade Bank continues to work on recovering debts and amounts owed to it through legal frameworks.

He explained that the goal is to protect the bank’s funds, public funds, and the funds of customers and merchants, while maintaining a balance between TBI’s role in supporting the private sector and the government and protecting its financial position.

Roadmap Until The End Of The Year

Al-Alwan revealed the existence of a roadmap to develop the bank’s work and address its strengths and weaknesses, expecting its results to begin appearing within the next three months and its implementation to continue until the end of the year.

The plan includes developing a range of banking products, including remittances, cards, advances and loans, along with expanding the scope of electronic services and internet banking.

This comes at a time when the use of digital banking services in Iraq is still limited compared to other countries in the region, making digital transformation one of the most prominent reform issues in the coming phase.

Infrastructure Is An Additional Obstacle

Al-Alwan stressed that the expansion of digital services does not depend on banks alone, but requires an integrated infrastructure, modern systems and programs, and greater flexibility in contracting and purchasing procedures.

He pointed out that some government procedures for purchasing systems and software sometimes limit the speed of banking institutions in implementing development projects, which represents an additional challenge to digital transformation.

In conclusion, the statements of the Director of TBI reveal that reforming the Iraqi banking sector involves four main issues: bringing funds back into the banking system, enhancing international compliance, restoring citizens’ confidence, and accelerating digital transformation.

The success of these initiatives appears to be a crucial factor in determining the ability of Iraqi banks to play a larger role in financing the economy and reducing reliance on traditional cash transactions in the coming period.

https://mustaqila.com/85-من-أموال-العراقيين-خارج-المصارف-tbi-يك/