Iraq Economic News and Points To Ponder Saturday AM 7-27-24

The US Federal Reserve Adopts A New Strategy Towards Iraq.. The Dollar Is Threatened To Rise To Unprecedented Levels
 
Economy     2024-07-25 | 7,697 views  Alsumaria-special   Economic researcher Ziad Al-Hashemi revealed new information about the US Federal Reserve’s policy towards Iraq, anticipating a rise in the dollar against the dinar, which will generate great pressure on the Iraqi banking system.  Al-Hashemi told Al-Sumaria News,
 
“Some information from within the corridors of the Central Bank of Iraq indicates that the US Federal Reserve has adopted a strategy different from its previous strategies towards the Iraqi economy,” noting that  “this strategy will be more stringent and depend on three axes:

The first axis: The continuation of punishing the previous banks, and
 
there is no lifting of the sanctions against them, meaning that
 
these banks will continue to be prevented from trading in the dollar indefinitely.
 
The second axis: closing banks that continue to violate federal controls related to money laundering and dollar smuggling, and supporting sanctioned entities and countries.
 
The third axis: Preventing the Iraqi government from interfering in the dollar file, and that
 
this file be in the hands of the Central Bank of Iraq only.  He stressed that
 
"the last axis explains that the Federal Bank monitored the presence of political influences from the Iraqi government," pointing out that
 
"the Iraqi Central Bank today is in a very embarrassing situation and is almost in trouble through internal pressures on it to obtain a larger space for the dollar and its circulation."  He stressed,
 
"The Central Bank will only have the ability to delay and postpone federal procedures for the longest possible period of time, while achieving temporary protection for the Iraqi banking system and the Iraqi dinar."  He stated,
 
"The American Federal Reserve will not be able to wait forever, and
 
it is expected that there will be federal measures that may occur at any moment, and
 
there will be a sudden and large demand for the dollar, which will lead to a decrease in the value of the Iraqi dinar against the dollar, which will generate great pressure on the banking system." "The Iraqi economy, the Iraqi economy, and the formal political system."    https://www.alsumaria.tv/news/economy/494898/الفدرالي-الأميركي-يتبنى-ستراتيجية-جديدة-تجاه-العراق-الدولار-مهدد-بالار   

Adviser To The Prime Minister: (Injaz Bonds) Encouraged Safe Investment Of Public Funds
 
Economy     Baghdad - IA - Nassar Al-Hajj   Thursday, Advisor to the Prime Minister Mazhar Muhammad Saleh identified the importance of Injaz bonds, while clarifying the nature of government borrowings. Saleh told the Iraqi News Agency (INA):
 
 “The annual general budget usually hedges during implementation against some slowdown in cash flows for temporary and emergency reasons,” indicating that
 
“on this basis, the budget is hedged by resorting to short-term borrowing by issuing annual treasury transfers.”
 
With a specific interest rate, commercial banks invest their money mostly in holding these sovereign bonds to ensure the sustainability of cash flows to the general budget.  He added,
 
"Short-term government borrowings are called bridge loans and are practiced by the financial authorities in accordance with the budget law at all times and places," noting that
 
"the general budget policy today, in its investment aspect, is moving towards ensuring the availability of a stable financing lever that guarantees the continued implementation of the country's investment budget items from non stop".  Saleh continued,
 
 “The announced issuance of the (Injaz Bond) amounting to 1.5 trillion dinars  targets the public’s savings, 
especially those dormant balances that lie outside the banking system and outside the mechanisms of the national savings cycle, 
which is consistent with encouraging the virtue of the public’s safe investment of its cash balances and with high-guarantee and high-yield sovereign debt instruments.”
 
At the same time, it facilitates the trading of these financial instruments (the completion bond),
 
     buying and selling in the secondary financial markets, and
 
     provides the bond holder with the ability to convert the debt instrument (the completion bond) into cash at all times when needed, with ease and high guarantee.”   
 
https://www.ina.iq/213372--.html   

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