“Tidbits From TNT” Tuesday 8-13-2024

TNT:

Tishwash:  500 electronic payment cards used to transfer money outside Iraq were seized and their holders were arrested in Baghdad

The Intelligence Agency announced the seizure of 500 electronic payment cards used to transfer money outside Iraq and the arrest of their holders in Baghdad.

The agency stated in a statement received by (Today News), that "its detachments specialized in combating organized crime in Baghdad/Karkh monitored information indicating the existence of an illegal network that transfers money outside Iraq through electronic payment cards."

It added, "Immediately, an intelligence team was formed and the locations of the accused were identified, where the place was raided and the accused, numbering (6), were arrested with (500) electronic payment cards in their possession that they use to transfer money outside Iraq illegally."
It indicated that "a light weapon (2 pistols and 2 rifles) and other materials used in transferring money were seized."

It continued, "This operation came after obtaining the necessary judicial approvals, and the accused were referred to the competent investigative authorities to receive their just punishment."  link

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Nearly 200 billion dinars in "fines" from the Central Bank of Iraq on banks and exchange companies

The Central Bank of Iraq announced on Tuesday that fines imposed on banks and non-banking institutions (exchange companies) amounted to more than 181 billion Iraqi dinars during the past six months.

A table of the bank, which Shafaq News Agency has reviewed, showed that "the fines imposed on banks and financial companies during the past six months, starting from January until the end of last June, amounted to 181 billion, 842 million, 854 thousand, and 458 dinars," indicating that "the fines also included 151 administrative penalties for these banks and non-banking institutions, distributed between warnings, alerts, and grace periods."

The table showed that "January witnessed the highest fines on banks and non-financial institutions, as these fines reached 98 billion, 277 million, 722 thousand, and 62 dinars, with 17 administrative penalties, while June witnessed the lowest fines, reaching 2 billion, 829 million, 157 thousand, and 288 dinars, with 30 administrative penalties."

The table did not show the names of the banks that were fined and subjected to administrative penalties.

The Iraqi Stock Exchange Investors Association had criticized the Central Bank of Iraq’s increase in fines on banks, noting that it would affect the profitability of investors in the shares of these banks.  link

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Washington orders the acceleration of the arrival of one of its aircraft carriers in the Middle East

 Erbil (Kurdistan 24)- US Defense Secretary Lloyd Austin has ordered the aircraft carrier USS Abraham Lincoln to "expedite its arrival" to the Middle East, the Pentagon announced on Sunday, as military escalation threatens the entire region amid the war between Israel and Hamas in the Gaza Strip.

Pentagon spokesman Pat Ryder said Austin had ordered the fleet, led by the USS Abraham Lincoln and including F-35C fighter jets, to move more quickly, in the face of the threat of a large-scale attack by the Lebanese Hezbollah, backed by Tehran, or by Iran itself against Israel.

Ryder added that Austin held a conversation with his Israeli counterpart, Yoav Galant, on Sunday, and also ordered the deployment of the missile submarine "USS Georgia" in the same area.

The two men discussed "the importance of limiting harm to civilians, making progress toward a ceasefire and releasing hostages held in Gaza," as well as deterring Iranian-backed groups from launching attacks, he said.

Tensions have risen recently after the assassination of Hamas political bureau chief Ismail Haniyeh in Tehran and Hezbollah's senior military commander Fouad Shukr in Beirut's southern suburbs.

Last week, Washington announced that it would strengthen its military presence in the Middle East by deploying more warships and fighter jets.

The aircraft carrier Abraham Lincoln is scheduled to join another US aircraft carrier in the region, the USS Theodore Roosevelt.  link

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Joint Operations: We will not allow Iraq to be an arena for any international or regional conflict - Urgent

The Joint Operations Command confirmed, on Tuesday (August 13, 2024), that it will not allow Iraqi lands to become an arena for any international or regional conflict, while indicating that Iraq will not be a starting point for attacking others.

The spokesman for the command, Major General Tahseen Al-Khafaji, said in an interview with "Baghdad Today", "According to the directives of the Commander-in-Chief of the Armed Forces, Mohammed Shia Al-Sudani, Iraq cannot allow itself to be an arena for settling scores and does not accept attacks from within or from without."

He added, "The Iraqi position is clear, which is to prevent it from being used as an arena for any regional or international conflict in any way, and it will not be a starting point for attacking others."

The Iraqi arena has recently witnessed security incidents represented by the bombing of aircraft that the Popular Mobilization Authority said were American, on units in the Jurf al-Sakhar district, north of Babil Governorate, while the Ain al-Assad base in Anbar Governorate was subjected to a missile attack that resulted in injuries among the American forces stationed inside the base.

These developments come in light of the war waged by the Zionist entity against civilians in Gaza, which has been reflected in the rest of the countries that have entered the war against the entity, including Iraq, where armed factions in Iraq announce from time to time the implementation of operations targeting the entity with drones at times and missiles at other times, in addition to participating with the Houthi Ansar Allah in Yemen to carry out these operations.

The world is currently waiting for Iran to respond to the assassination of the head of the political bureau of Hamas, Ismail Haniyeh, in the heart of the capital, Tehran, but it has not yet implemented the response.

Observers expect that Iran will carry out a devastating strike targeting Tel Aviv in cooperation with the Lebanese Hezbollah, which also vowed to respond to the assassination of the leader Fouad Shukr in Lebanon.  link

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Mot:  hhhhheeeeyyyyy ----- Macarena ~~~   https://www.youtube.com/watch?v=MMRVbhbIkjk

Mot:  . Not to Fool with Mother Nature-- So I must Follow ~~~

MilitiaMan: IQD Update - Iraq Dinar News - Currency Value - Stock Exchanges - Ministerial Council of Economy

IQD Update - Iraq Dinar News - Currency Value - Stock Exchanges - Ministerial Council of Economy

Militiaman and Crew: 8-12-2024

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

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

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

Seeds of Wisdom RV and Economic Updates Tuesday Morning 8-13-24

Good Morning Dinar Recaps,

Kenya to introduce digital asset ETPs

Kenyan investors will soon access digital asset exchange-traded products (ETPs) on the country’s main equities exchange.

DeFi Technologies, a Canada-based company, has struck a new partnership with the Nairobi Stock Exchange (NSE) to facilitate the issuance and trading of digital asset ETPs in the East African country.

NSE signed the Memorandum of Understanding (MoU) with Valour, a subsidiary of DeFi Technologies, this week. Established in 2019, Valour offers 33 ETPs in Europe, including in Börse Frankfurt, Euronext Paris, Euronext Amsterdam, and the Nordic Growth Market.

The MoU, which also includes market liquidity provider SovFi, allows Valour to deploy its ETPs on the Kenyan stock exchange, develop market infrastructure for digital assets, and eventually expand to tokenizing real-world assets.

@ Newshounds News™

Source:  CoinGeek

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Dragonfly, Crypto.com Weigh in on CFTC's Proposed Prediction Market Rules

Both parties argue the CFTC's move to regulate prediction markets is an overreach, with Dragonfly arguing that the recent 'Chevron' court ruling limits its power.

▪️ The CFTC's notice of proposed rulemaking for prediction markets drew various comments from the public, including the crypto industry.

▪️ Crypto industry stakeholders say the rules are too broad and would constitute an overreach, considering the recent 'Chevron court decision.

Dragonfly Digital Management and Crypto.com have joined crypto exchange Coinbase (COIN) in criticizing the Commodities Futures Trading Commission's (CFTC) proposed rules on prediction markets.

Critics say that the CFTC's proposed rules broadly categorize and ban certain event contracts, including those related to gaming – with Coinbase calling the CFTC's proposed definition of gaming too ambiguous – and elections, raising concerns that this overreach exceeds statutory authority, stifles innovation, and neglects the economic benefits these contracts provide.

"Political event contracts should not be equated with gambling on games of chance like the Super Bowl. Rather, elections have significant economic implications," Dragonfly's Jessica Furr and Bryan Edelman, its counsel, wrote in a letter to CFTC.

 "These contracts were designed to serve crucial risk hedging functions, aligning with the requirements of the Commodity Exchange Act (CEA), and offer valuable predictive data to the public."

Dragonfly also argues that the CFTC's proposed rule overreaches by broadly banning prediction markets without proper evaluation, especially given the Supreme Court's recent 'Chevron' decision, which limits the agency's interpretive authority without a Congressional mandate.

Crypto.com's Steve Humenik, its Special Vice President in charge of Capital Markets, argues that the CFTC's attempt to ban prediction markets violates a rulemaking process dictated by the CEA, which involves a three-step approach.

According to the CEA, the three-step process requires the CFTC to assess whether a contract involves an excluded commodity, whether it engages in specified activities, and whether it's contrary to the public interest before banning it.

"The CFTC must articulate its justification for determining that a given contract has an underlying excluded commodity. This should not be a foregone conclusion," Humenik wrote.

"We urge the CFTC not to sidestep its obligations to undergo a three-step review process with respect to these types of event contracts, and to eliminate this aspect of the Event Contracts NOPR [notice of proposed rulemaking]."

@ Newshounds News™

Source:  CoinDesk

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Iraq Economic News and Points To Ponder Monday Afternoon 8-12-24

Exporting Economic Crises
 
Economical 08/12/2024  Yasser Al-Metwally  Anyone who follows global economic trends notices from time to time the occurrence of a financial crisis here and there.
 
These crises lead to the occurrence of transitional economic crises that are clearly visible in some countries and hidden in other countries, and
 
the effects differ here and there depending on the fragility of the economy of the countries in which the crisis appears clearly and the strength of the economy of other countries in which its effects are hidden.
 
Perhaps money is the root of the problem, as its interactions crystallize and are reflected in the economy.

I am referring only for the purposes of analysis and clarification of the mechanism of financial crises occurring in major capitalist centers and then their transition to global economic crises,
 
as I previously mentioned in the previous article titled: The global economic paths are single (Monetary chaos) and
 
by that I meant that this chaos has a major role in the occurrence of obvious crises, as fragile economies complain of the occurrence of continuous economic crises, at the very least during the economic cycle, which is known as follows (they are fluctuations that occur in economic activity, moving from a state of recovery and growth to a state of recession and recession, where growth declines and unemployment increases, and then the cycle continues until recovery occurs.
 
Experts in economics attribute the causes of economic crises to the fact that they are crises exported from advanced economies (from abroad) to developing economies, and
 
they are a product of globalization, which has opened borders wide with international agreements binding on countries, and the arms of globalization have helped in deepening them, especially the International Monetary Fund, the World Bank, the World Trade Organization, and the Organization.

 USAID in imposing their strict, binding conditions, whether in the field of financing and granting loans or aid that countries need, and the necessity of applying them to the policies of those countries in a way that achieves a high degree of economic liberalism.
 
Here the picture becomes clear regarding the export of crises that are at the forefront of the financial markets, as money is the basis.
 
As for the meaning and concept of deportation, with a simple definition,
 
it is the deportation of economic crises internally by countries receiving funding and aid, so the solutions are patchwork, so you find crises continuing in some countries.
 
The monetary chaos left behind by the world’s decision to abandon the gold standard as a standard for evaluating currencies in 1971, liberalize exchange systems, and liberalize capital movements is behind the occurrence of economic and financial crises without radical solutions.
 
Thus, money is the basis of economic affliction, especially in countries that do not manage it well..

Naturally, monetary chaos causes exchange rates to fluctuate and differences between the official rate and the parallel rate.
 
It is a prominent phenomenon in emerging and weak economies.
 
Examples include, but are not limited to, the Turkish, Iranian, Egyptian, Iraqi, and many others, along with other reasons, of course, which are the reason for the occurrence of financial crises.
 
Crises are a phenomenon that originates from abroad and is transmitted through solutions faced from within, which causes continuous financial crises in the countries where their crises are resolved, and this is what must be paid attention to.
 
Hence my choice of the title of the article: Financial crises between export and deportation.

https://alsabaah.iq/100870-.html   

 For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

Seeds of Wisdom RV and Economic Updates Monday Afternoon 8-12-24

Good Afternoon Dinar Recaps,

ISO 20022 Crypto: List of Compliant Coins & Tokens in 2024

Cryptocurrency projects that are ISO 20022 compliant can seamlessly integrate into traditional financial systems and introduce blockchain immutability and data decentralization to the financial sector.

It is worth noting that not all institutions have adopted the requirements to be ISO 20022 ready yet – according to a Forbes report from earlier this year, about 72% of banks are ISO 20022 compliant. The institutions that haven’t yet taken the necessary steps to become ISO 20022 compliant will have until 2025 to do so.

It is also worth mentioning that “ISO 20022 compliant coin” could be considered a misnomer, as the coin or token itself is not compliant. Instead, what we mean when referring to a project as ISO 20022 compliant is that it leverages some of the messaging language defined by the standard to more easily communicate and exchange data between the project’s own solutions (for example, Ripple’s payment network) and external financial systems (for example, SWIFT).

XRP KEY FEATURES
1. Fast and cheap cross-border payments
2. The XRP ledger can handle up to 1,500 transactions per second
3. Uses the cost and energy-efficient XRP Ledger Consensus Protocol
4. Ripple has established partnerships with numerous traditional financial institutions, including Bank of America, Santander Bank, and Intesa Sanpaolo

CARDANO ADA
1. Smart contract support
2. Rappidly expanding DeFi ecosystem
3. Specially designed proof-of-stake (PoS) consensus algorithm called Ouroboros

QUANT QNT
1. A blockchain interoperability protocol, allowing different blockchains to communicate with each other
2. It can handle a large number of transactions without sacrificing performance
3. Governed by a decentralized body of stakeholders

ALGORAND ALGO
1. Algorand can be used to send and receive payments quickly and easily
2. Can be used to create and deploy smart contracts
3. Supports decentralized applications (dApps)
4. Uses a proof-of-stake consensus mechanism, which is very energy-efficient

STELLAR XLM
1. Fast and cheap transactions
2. Uses a unique consensus mechanism called the Stellar Consensus Protocol (SCP)
3. Stellar transactions are cheaper than traditional remittance methods, such as wire transfers
4. Stellar can be used to build decentralized applications

HEDARA HBAR
1. Heder HashGraph supports smart contracts and dApps
2. Very energy efficient and suitable for high-volume applications

IOTA (MIOTA)
1. IOTA transactions do not require any fees
2. Designed to be data-oriented, meaning that it can be used to transfer data as well as value
3. IOTA is designed to be quantum-resistant, meaning that it is secure against attacks from quantum computers
4. Uses a unique consensus mechanism called the Tangle

XDC NETWORK XINFIN (XDC)
1. The XDC Network is a hybrid blockchain, meaning that it combines the benefits of both public and private blockchains
2. Can handle up to 2,000 transactions per second
3. Designed to be compliant with regulatory requirements
4. Can be used to track the movement of goods and materials through a supply chain

"ISO 20022’s primary aim is to modernize the traditional financial sector, making it easier for institutions to handle data. The standard could help cryptocurrencies integrate with the traditional sector in ways that were previously impossible."

@ Newshounds News™

Source:  CoinCodex

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TEN SECOND MONEY TRANSFERS

European Council adopts regulation on instant payments:
"The instant payments regulation will allow people to transfer money within ten seconds at any time of the day, including outside business hours, not only within the same country but also to another EU member state. The regulation takes into consideration particularities of non-euro area entities."

"Payment service providers such as banks, which provide standard credit transfers in euro, will be required to offer the service of sending and receiving instant payments in euro."

"The new rules will come into force after a transition period that will be faster in the euro area and longer in the non-euro area, that needs more time to adjust."

@ Newshounds News™

Read more:  Consilium

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Bitcoin price 12 Months after each halving event :
 
2012 HALVING - $182  
12 Months later- $510
 
2026 HALVING- $661
12 Months later- $2,600
 
2020 HALVING- $8,600
12 Months later- $58,000
 
2024 HALVING-$63,870
12 months later- _?

Where you think Bitcoin price will be 12 months after this halving?

@ Newshounds News™

Source:  Twitter

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@ Newshounds News™

Source:  

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You are here in 2024.

#XRP Tokenization of Everything

@ Newshounds News™

Source:  Twitter
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BRICS countries no longer attaching much importance to DOLLAR — Indian expert

"Sameep Shastri also underscored that he completely disagrees with the assertions that Western countries are the strongest economies in the world

NEW DELHI, August 12. /TASS/. The BRICS member states are no longer attaching much importance to the dollar and successfully using national currencies, Vice Chairman of BRICS Chamber of Commerce and Industry, Sameep Shastri, told TASS."

""I think we are going to see de-dollarization soon. We have already started our trade using rubles and rupee and yuan and rupee, our own currencies, and we do not attach much value to dollar anymore. And I think that is important for each and every country that we should not be dependent on one single currency. We should be dependent on our own currency, and we should make it strong and make our economy strong," he said."

@ Newshounds News™

Source:  TASS

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Thailand launches crypto regulatory sandbox to kick-off adoption

The initiative is designed to support the testing and development of services related to digital assets,

The Securities and Exchange Commission of Thailand (SEC Thailand) has launched a Digital Asset Regulatory Sandbox.

The initiative is designed to support the testing and development of services related to digital assets, providing a structured environment where businesses can explore innovative solutions within a regulated framework.

The sandbox aims to facilitate the integration of new financial technologies while maintaining a flexible regulatory approach that addresses the specific risks associated with digital asset transactions.

The term “digital asset” is often usually broadly, but has a specific meaning in Thailand. It includes both cryptocurrencies and digital tokens. Cryptocurrencies are classified as being used as a medium of exchange. In contrast, the feature of a digital token is it grants rights.

It might be an investment token that provides rights in a project or business or a utility token used to receive goods, services or other rights. Thailand has specific rules for real estate tokens.

The sandbox covers both types of tokens and six roles:

Digital Asset Exchange
Digital Asset Broker
Digital Asset Dealer
Digital Asset Fund Manager
Digital Asset Advisor
Digital Asset Custodial Wallet Provider

In order to take part in the sandbox, applicants have to have sufficient capital and adequate management and systems in place.

@ Newshounds News™

Source:  CryptoSlate,  Ledger Insights

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Japan: SBI-backed ODX to list digital bonds following release of START

Osaka Digital Exchange is set to begin listing digital bonds that meet its strict requirements of complying with Know Your Customer and anti-money laundering rules.

Barely one year after Osaka Digital Exchange (ODX) rolled out a digital securities platform for trading security tokens, several reports have emerged that the exchange is set to begin listing digital bonds.

The SBI-backed digital exchange confirmed that ODX’s START platform will host digital bonds that meet the listing criteria. Since START’s launch in late 2023, real estate security tokens have been the most common issuances on the platform, given their innate popularity in Japan.

ODX will open its doors to three digital bonds in the coming months but specifics were not disclosed to the public. The successes of digital bonds in Europe may have played a role in ODX’s decision to expand the scope of its offering, with its backers reportedly giving the nod to the move.

SBI, the largest shareholder in the exchange, has approved the decision to list digital bonds while Nomura (NASDAQ: NRSCF), SMBC, and Daiwa Securities (NASDAQ: DSECF) have also given the green light to the move.

Armed with the raft of approvals, ODX appears set to begin listing digital bonds that meet its stringent requirements. The exchange will look for bonds that are regulatory compliant and meet relevant Know Your Customer (KYC) and anti-money laundering (AML) rules.

The incoming digital bonds will be approved for secondary trading if they possess smart contract functionality to automate redemption processes and highly secure systems. Other perks to speed up the listing process include interoperability, high liquidity levels, and proper risk management.

It appears that the exchange will stick to its policy of discounting seller fees to improve adoption, but it remains unclear whether the firm will bring back zero fees for users.

“We will dedicate our best efforts to collaborate with our participants and supporters so that the secondary market “START” can contribute to the further development of the security tokens market,” ODX said in December.

@ Newshounds News™

Read more:  CoinGeek

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JP Morgan Documentation on Banks’ Involvement in Blockchain acknowledges Ripple’s potential to disrupt cross border payments GLOBALLY.

Major nod to Ripple from the worlds largest bank.

But more importantly, note the text at the bottom of the document.

“This document is being provided for the EXCLUSIVE USE of Mihail Turlakov at Sberbank of Russia”

Exclusive use.🧩

This document was crafted specifically to present relevant initiatives in blockchain to the largest Commercial bank in Russia while citing Ripple as a prominent example.

Russia + JP Morgan + Ripple
Plans on Plans

@ Newshounds News™
Source:  Twitter

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Epic Economist: This is What the Final Stages of a Bubble Economy Looks Like Just Before a Collapse

Epic Economist: This is What the Final Stages of a Bubble Economy Looks Like Just Before a Collapse

Monday, 12 August 2024, 1:08 AM

As we navigate the complex landscape of our economy today, it feels like we are precariously perched on the edge of a giant bubble ready to burst. The sensation is akin to standing on the precipice of a high cliff, where the view is breathtaking yet terrifying.

Ever since the Great Recession crashed down upon us, our leaders have resorted to extreme measures never before witnessed in modern economic history. The cumulative impact of these actions casts long shadows on our financial future, leaving us to wonder: how long can this bubble hold?

In the years following the Great Recession, the Federal Reserve embarked on a bold policy of quantitative easing, effectively creating trillions of dollars out of thin air to inject liquidity into the financial system. While designed to stave off a more profound crisis, this widespread injection of capital has consequences that reverberate through the economy. Initially, it seemed like a necessary remedy; stock markets soared, and optimism flourished. However, there’s an underlying tension that accompanies that rise—an awareness that such hyperinflation of currency cannot last indefinitely.

As individuals, we feel this dissonance in various ways. On one hand, we celebrate record-low unemployment rates and much-needed support for struggling households; on the other, alarming signals emerge from the depths of the financial system. The feeling is like riding a roller coaster: exhilarating yet unnerving, as we rise higher and higher, the anticipation of a steep plunge lurking just around the corner.

Compounding our economic anxiety is the sheer scale of our national debt, which has surged to a staggering $35 trillion and continues to climb at an alarming pace. This debt—larger than the economies of many nations—stands as a testament to our governing bodies’ willingness to incur liabilities with seemingly little regard for future implications.

Politicians in Washington appear locked in a cycle of spending, often prioritizing short-term gains over long-term stability. As they crawl into increasingly uncharted territories of fiscal policy, there exists a genuine fear within us: what happens when the weight of this debt becomes untenable? What will the burden of repayment mean for future generations? The anxiety of living at the edge of a bubble is exacerbated by the constant hum of pessimism about potential inflation, interest rate hikes, or worse, another financial collapse.

Beyond spreadsheets and stock prices, we must not forget the human element of these financial machinations. The everyday worker, the small business owner, the college graduate forging a path through adulthood—these individuals feel the weight of economic uncertainty most acutely. As wages stagnate and living costs rise, we find ourselves caught in a cycle of disappointment and disillusionment. The optimistic images projected by the media often clash with our lived realities where the prospect of homeownership becomes less attainable, and aspirations are shelved for more immediate needs.

In this environment, we become both wary and resilient. We adapt, find creative solutions to our challenges, and hold tight onto hope, even as we stand teetering at the brink of unpredictability. The social fabric stretches thin, yet pockets of community resilience emerge, offering solace amid chaos.

So, how does it feel to live on the edge of a bubble? It feels like a rushing river of uncertainty where the future is unknown and precarious. It’s a place where we balance hope for economic recovery against the looming fears of another collapse. As we look forward to what policymakers will do next—whether it’s dialing back fiscal aggression or making more radical choices—we can only brace ourselves for the consequences that lie ahead.

The bubble may one day burst, leaving us to reckon with the fallout. The feeling of living in this moment is one of shared anxiety, yes, but it’s also an opportunity to prepare for what comes next. As we reflect on the lessons from the past, we must advocate for a more sustainable future, where radical solutions don’t come at the expense of economic stability. Only then can we hope to find a balance that helps maintain our footing on this unstable ground.

Watch the video from Epic Economist for more information.

https://dinarchronicles.com/2024/08/12/epic-economist-this-is-what-the-final-stages-of-a-bubble-economy-looks-like-just-before-a-collapse/

https://youtu.be/APDlELtC6To

“Tidbits From TNT” Monday 8-12-2024

TNT:

Tishwash:  Government Advisor: Increased Export Capacity Boosts Currency Value

The financial advisor to the Prime Minister, Dr. Mazhar Mohammed Saleh, stated that the global currency rates are determined in two main ways: floating and fixed prices, indicating that there are many local and international factors that control the strength of the currency, such as supply and demand, interest rates, inflation, growth in the local economy, trade balance, and others.

While he pointed out that the strength of the national currency is linked to its external value, specifically the exchange rate, as the external value of money is directly linked to the stability of the current account of the balance of payments, especially in the long term.

Saleh said in an interview with “Al-Sabah” followed by “Al-Eqtisad News”, that “the stability of the external value of the currency requires a balance or surplus in the current account of the balance of payments relative to the gross domestic product, which should indicate a stable state at a minimum of no less than 4 percent annually, and that achieving this goal certainly depends on a sustainable increase in the annual growth rate of the gross domestic product, and exports exceeding imports within the country’s trade balance.”

Dr. Saleh pointed out that if “the country has the capacity to export goods and services more than it imports, this enhances the value of the national currency, especially the external value of the currency itself, and here the economy indicates a positive state, in addition to the availability of supporting foreign reserves that represent the main buffer against potential external factors and their effects on the overall economic situation.”

The government advisor also explained that “foreign reserves express the ability to maintain the stability of the external value of money, i.e. the stability of the exchange rate, including the strength of the commercial efficiency of reserves, which should cover the money supply in the broad sense, and more than 75 percent of that supply, noting at the same time that high sovereign and private debts can weaken the business, unless there is good financial management of debts that always leads to strengthening confidence in the national currency.”

Saleh pointed out that “the other aspect that is linked to the value and stability of the currency is the internal value of the national currency. Just as we talk about the stability of the external value of the currency, i.e. the exchange rate and its exchange power with other currencies, the internal value of the currency is the other aspect of the stability and strength of the currency. Here, the value of the national currency is directly linked to the general level of prices, i.e. the inflation index.” He explained, “If the general level of prices means the strength of goods and services expressed in money, then there is a correlation between price stability and the value of the national currency itself. This requires the availability of a wise monetary policy undertaken by central banks that makes the growth in the money supply commensurate with the growth in the gross domestic product or national income.”

The speaker noted that “the quantity theory of money is based on the principle of the neutrality of money, which holds that the cause of inflation in the long run is money itself, as growth in the money supply that is not proportional to growth in the gross domestic product leads to either inflation or contraction in the growth of the general price level. Therefore, the effect of money on the overall economy, as addressed by the quantity theory of money, means that if the amount of money in the economy increases, and there is no parallel increase in economic output, this will lead to an increase in the general price level.”  link

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Tishwash:  Due to financial violations, a representative demands that Sudanese terminate the assignment of governor of the Central Bank

Today, Monday, member of the Parliamentary Integrity Committee, Hadi Al-Salami, called on the Prime Minister to end the assignment of the Governor of the Central Bank, Ali Al-Alaq, stressing that he will direct oral questions to the Governor of the Central Bank. 

He told Al-Maalouma Agency, “There are parliamentary demands to end the assignment of the Central Bank Governor due to his failure to control the official dollar exchange rate and the parallel price.” 

He added, "There are many observations on the performance of the Central Bank Governor, in addition to his reaching the legal age, indicating that he directed questions to the Central Bank Governor and is waiting for a date to be set by the Presidency of the House of Representatives to host him inside the House of Representatives.”

He stressed that “the reason for the hosting request is the presence of a major defect in the bank’s work and the existence of financial violations estimated at approximately $120 million per month.”   link

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Tishwash:  Signing a cooperation protocol between the Iraqi and Egyptian stock exchanges...aims at this matter

Today, Monday, the Chairman of the Board of Governors of the Iraq Stock Exchange, Thaer Adnan Hashem, signed a cooperation protocol to enhance joint work with the Egyptian Stock Exchange management.

The media office of the Iraq Stock Exchange stated in a statement received by "Al-Eqtisad News" that "the Chairman of the Board of Directors of the Egyptian Stock Exchange, Ahmed Al-Sheikh, signed a cooperation protocol between the stock exchanges of the two countries with Thaer Adnan Hashem, Chairman of the Board of Governors of the Iraq Stock Exchange (Iraqi Stock Exchange), in the presence of Faisal Al-Haimus, Chairman of the Iraqi Securities Commission, and Hiba Al-Sayrafi, Vice Chairman of the Egyptian Stock Exchange."

He added that "the protocol aims to strengthen cooperation ties and raise the level of coordination between the two parties, increase prospects for joint work and exchange of expertise and information in all aspects of investment and develop existing legislative procedures for both parties, in addition to working to increase investment awareness and attract mutual investments between the two countries and direct savings towards investment in securities, as well as support the transition to the digital economy to increase the competitive capabilities of both stock exchanges."

In turn, the Chairman of the Egyptian Stock Exchange, Ahmed El Sheikh, confirmed that "the protocol aims to develop joint cooperation between the two parties and exchange expertise and information regarding updating legislation, regulations, procedures, work programs and methodologies related to trading in securities, as well as exchanging periodic and annual bulletins issued by both stock exchanges, as well as exchanging periodic information related to companies registered and traded in the two markets."

He added: "We are working to provide the basic information that investors in both countries need to increase mutual investments in the two stock markets."

He pointed out that "the two parties will discuss mechanisms to support and diversify the financial products available to investors and increase liquidity in both markets," stressing that "the two parties will work to encourage capacity building and training between brokerage firms and companies listed on the two stock exchanges in a way that serves the achievement of the goals of spreading awareness and exchanging expertise."

He explained that "signing this protocol comes within the framework of implementing Article (58) of the Egyptian Stock Exchange's development strategy, which falls under the sixth axis related to "promoting and spreading financial culture, training and international relations." 

In this context, Faisal Al-Haimus, Chairman of the Iraqi Securities Commission, stressed that “signing this protocol represents a vital step towards deepening cooperation between the stock markets in Iraq and Egypt, which reflects our common keenness to strengthen economic relations between the two countries,” noting that “this agreement does not only aim to exchange expertise and information, but also seeks to develop the infrastructure of the financial markets in both countries by adopting the latest technologies and applying the best international practices.”

Al-Haimas added: “We realize that financial markets represent the cornerstone of developing the national economy, and therefore strengthening the partnership between the two markets will directly contribute to achieving sustainable economic growth and attracting foreign investments. We also believe that this protocol will open new horizons for cooperation in various fields, such as financial innovation and the development of new financial products, which will help enhance the competitiveness of both markets.”

Al-Haimas stressed the “commitment of the Securities Commission to provide full support for the success of this cooperation, noting that the Commission will work to provide the appropriate regulatory environment to implement the provisions of the protocol effectively,” expressing his “confidence that this cooperation will enhance the efficiency of the two markets, and increase levels of transparency and disclosure, which will enhance investor confidence and contribute to achieving the goals of joint economic development.”

For his part, Thaer Adnan Hashim, Chairman of the Board of Governors of the Iraq Stock Exchange (Iraqi Stock Exchange), stated: “The signing of this protocol, which was sponsored by the Chairman of the Securities Commission / Faisal Al-Haims, is an important step towards enhancing joint cooperation between Iraq and Egypt in the field of securities markets, as this agreement aims to exchange expertise and information between the two markets, especially with regard to updating the legislation, regulations and procedures related to securities trading.”

He explained that "this protocol is an opportunity to develop the infrastructure of financial markets, increase investment awareness, and attract mutual investments between the two countries. We will also work to support the transition to the digital economy, enhance the competitive capabilities of both stock exchanges, and encourage capacity building and training between brokerage firms and listed companies."  link

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Mot: ..... Just Wondering ~~~~

Mot . Reality Hitting Home!!! – siiggghhhhh  

Iraq Economic News and Points To Ponder Monday AM 8-12-24

Government Advisor: Increased Export Capacity Enhances The Value Of The Currency
 
Economical 08/12/2024 Baghdad: the mainstay of the emirate
 
The financial advisor to the Prime Minister, Dr. Mazhar Muhammad Saleh, stated that currency prices are determined globally in two main ways: floating and fixed rates, indicating that
 
there are many local and international factors that control the strength of the currency, such as

     supply and demand,
     interest rates,
     inflation,
     growth in the local economy, the
     trade balance, and
     others.  

While he pointed out that  the strength of the national currency is linked to its external value, specifically the exchange rate, as the
 
external value of money is directly linked to the stability of the current account of the balance of payments, especially in the long term. Saleh told Al-Sabah that
 
“stability of the external value of the currency requires a balance or surplus in the current account of the balance of payments relative to the gross domestic product,
 
which should indicate a stable state at a minimum of no less than 4 percent annually, and that
 
achieving that goal certainly depends on The annual growth rate in GDP is sustainable and high, and
 
exports outweigh imports within the country’s trade balance.” Dr. Saleh pointed out that
 
If “the country has the ability to export more goods and services than it imports, this enhances the value of the national currency, especially the external value of the currency itself, and
 
here the economy indicates a positive state, in addition to the availability of supportive foreign reserves that represent the main buffer against potential external factors and their effects.” In the overall economic situation.”  The government advisor also explained that
 
“foreign reserves express the ability to maintain the stability of the external value of money, that is, the stability of the exchange rate, including the strength of the commercial efficiency of the reserves, which foreign reserves should cover the money supply in the broad sense, and more than 75 percent of that supply,” pointing out.
 
At the same time, high sovereign and private debts could weaken business, unless there is good financial management of debts that always leads to enhancing confidence in the national currency.  Saleh pointed out that
 
 “the other aspect that is linked to the value of the currency and its stability is the internal value of the national currency.

Just as we talk about the stability of the external value of the currency, that is, the exchange rate and its exchange strength with other currencies, the internal value of the currency is the other aspect of the stability and strength of the currency, and here the value of the currency is linked.”
 
Nationalism is directly linked to the general level of prices, that is, the inflation index,” indicating,
 
“If the general level of prices means the strength of goods and services expressed in money, then there is a correlation between price stability and the value of the national currency itself, and
 
this matter requires the availability of a wise monetary policy undertaken by central banks that makes growth In the monetary mass is proportional to the growth in gross domestic product or national income.”  The spokesman noted that
 
 “the quantitative theory of money depends on the principle of money neutrality, which believes that the cause of inflation in the long run is money itself, as
 
growth in the money supply in a way that is not proportional to growth in the gross domestic product leads to either inflation or contraction in the growth of the general level of prices.
 
Therefore, the effect of money in the overall economy, as addressed by the quantity theory of money, means that if the quantity of money increases in the economy, and there is no parallel increase in economic output, this will lead to an increase in the general level of prices.     https://alsabaah.iq/100869-.html 

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

MilitiaMan: Iraq Dinar News-IQD Dinar-No Debt-CBI Gov in Place-Digitization-Show Cased-to Raise Value of the IQD

Iraq Dinar News-IQD Dinar-No Debt-CBI Gov in Place-Digitization-Show Cased-to Raise Value of the IQD

MilitiaMan and Crew:  8-11-2024

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

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

https://www.youtube.com/watch?v=8nPCIBAmO24

Seeds of Wisdom RV and Economic Updates Monday Morning 8-12-24

Good Morning Dinar Recaps,

Putin signs law allowing FOREIGN BANKS to OPEN BRANCHES in Russia

"Russian President Vladimir Putin signed a law that allows foreign banks to open branches in Russia but also provides for a number of restrictions on their activities. The document was published on the official portal of legal information."

"The goal is to create conditions for the development of a system of international settlements and attracting foreign investment, the explanatory note says."

"The work of branches of foreign banks will be aimed precisely at this. That is why they will not be able, like ordinary banks, to open deposits for individuals and companies, accounts in precious metals, engage in trust management of money and other property."

"Foreign banks will have the right to work in the securities market through a branch created in Russia. Each bank will be allowed to establish only one branch. The law also provides for setting requirements for the qualifications and business reputation of the banks’ officials."

"The law will come into force on September 1, 2024."

@ Newshounds News™

Source: TASS

~~~~~~~~~

How to Protect Your Cryptocurrency Holdings

THIS ARTICLE IS FOR THOSE WHO MAY BE INTERESTED IN STORING THEIR DIGITAL CURRENCY IN AN OFFLINE WALLET

"The first step to protect your cryptocurrency is picking the right wallet type. Wallets are divided into various categories like hardware wallets, software wallets, and paper wallets. "

Hardware wallets which can be put on USB devices offer robust security as they store private keys offline where possible online dangers cannot access them.

Software wallets can be used for handling keys and carrying out transactions, as they are simple to use in desktop or mobile applications. But, they do not offer very high security because they can be influenced by malware or hacking.

Paper Wallets are created by printing private keys and public addresses on physical paper, which gives a physical dimension to the concept of safety.
Every wallet type has advantages and restrictions, so choose one that matches your security needs and how frequently you use it.

1. Use powerful passwords that are unique to the wallet and any associated accounts.

2. Avoid using simple passwords or ones that have been used before on other accounts.

3. Use two-factor authentication (2FA) as a second layer of security, which will ask for a different verification like a code sent to your mobile.

4. Always make sure that you are updated with the latest updates on your software and wallet firmware – this is important so as to have all security fixes in place and safeguard against any known vulnerabilities.

5. When linking up with your wallet from public or unsecured networks, do it cautiously as this could let potential threats get access into contact with the stored assets within it.

Backing Up Your Wallet

Nearly all wallets include a backup feature that provides you with a recovery phrase, often called a seed phrase. It’s basically a list of words which can be utilized to restore your wallet if anything happens to it. Ensure you keep this recovery phrase somewhere safe. Having several copies stored in different locations

"By choosing the right type of wallet, using strong safety methods, backing up your wallet, and taking additional security steps; you can greatly reduce the risk of losing digital assets. 

If you do these careful actions, then it is certain that your cryptocurrency will remain safe but also simple to access. This allows for confident management and improvement of investments. "

@ Newshounds News™

Source: CryptoTimes

~~~~~~~~~

Ripple XRPL and Dubai
 
"Ripple plans to strengthen its global presence by partnering with the Dubai International Financial Center (DIFC). The DIFC is a special economic zone in the city established as a financial hub for businesses operating throughout the Middle East, Africa, and South Asia."

" Speaking on the matter was Ripple’s CEO – Brad Garlinghouse – who described the UAE as “one of the most advanced jurisdictions globally” when it comes to offering regulatory clarity for licensed companies to offer crypto services.

“Our partnership with the DIFC Innovation Hub promises to drive the adoption of blockchain technology in the region as the XRPL continues to be a leading blockchain for the region’s start-ups and scaleups building real use cases,” he added.

"Arif Amiri – CEO of the DIFC – highlighted the deal with Ripple as a “significant milestone” that “further cements DIFC’s role as a leading global hub for talent, tech, and innovation.”

"It is interesting to note that Ripple’s Middle East and Africa (MEA) regional office is located within the Dubai International Financial Center. 

Less than a year ago, the zone approved XRP for use, meaning licensed crypto firms operating within can incorporate the token into their services. "

@ Newshounds News™

Source:   CryptoPotato

~~~~~~~~~

Venezuelan Government Blocks Binance, Cutting P2P Market Access for Thousands

THIS ARTICLE REVEALS HOW VULNERABLE DIGITAL ASSETS CAN BE IF A ROGUE GOVERNMENT BEGINS TO RESTRICT ACCESS TO YOUR CRYPTO EXCHANGE.

THIS RE-ESTABLISHES THE NEED FOR SOLID LAWS AND REGULATIONS TO PROTECT THE PUBLIC

"Venezuelan Government Cuts Access to Binance Users Connecting Through State-Owned ISP"

"The censorship actions of the Venezuelan government have reached the cryptocurrency sector. According to local media, state-owned telecom and internet service provider (ISP) CANTV has blocked access to Binance, the world’s largest cryptocurrency exchange."

"CANTV, a Venezuelan state-owned ISP, has reportedly started blocking traffic to Binance, one of the largest cryptocurrency exchanges in the world.

The company, which controls a significant portion of the Venezuelan broadband market, has left thousands of Venezuelans without access to their savings and even P2P markets, which are popular among those using crypto as a savings tool."

 @ Newshounds News™

Source:  Bitcoin

~~~~~~~~~

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Thank you Dinar Recaps

Economist’s “News and Views” Sunday 8-11-2024

“Dedollarisation?” THIS is what EVERYONE is MISSING | George Gammon

Jay Martin:  8-11-2024

In this episode of The Jay Martin Show, Jay sits down with George Gammon, a renowned macro-finance educator and investor, to delve into the most pressing economic issues of our time.

 The discussion kicks off with an analysis of the recent market correction and its implications for the medium-term economic outlook. George provides deep insights into the significance of the yield curve inversion and its historical correlation with recessions, explaining why this indicator is often a harbinger of economic downturns.

The conversation then shifts to the global trend of de-dollarization, where George breaks down the mechanics of how the U.S. dollar's dominance could be threatened and what this could mean for the global financial system.

 The episode also covers the potential impacts of the unwinding of the yen carry trade and its ripple effects across global markets.

As the discussion progresses, George offers his perspective on the likelihood and potential severity of a looming recession, drawing parallels to past economic crises.

He emphasizes the importance of understanding these cycles and being prepared for what might come next. To conclude, George shares his personal strategies for building a resilient investment portfolio designed to withstand economic turbulence, offering actionable advice for viewers looking to protect their wealth in uncertain times.

This episode is a must-watch for anyone interested in understanding the forces shaping the global economy and how to navigate the challenges ahead.

https://www.youtube.com/watch?v=Uh6IuI8oMnk

Central Banks Show Us The TRUTH...

Lynette Zang:  8-11-2024

Today we are discussing the central banks around the world repatriating their gold and what that means for you...

https://www.youtube.com/watch?v=z2kPbERDftM

BRICS To Leave UN: What's going on?

Fastepo:  8-11-2024

Countries within the BRICS group and other Global South nations have voiced growing dissatisfaction with the United Nations, citing several key issues.

Chief among these is the undue influence that Western nations wield in major international organizations and decision-making bodies.

These nations contend that the current UN structure does not adequately reflect their interests or perspectives, leading to calls for a more democratic and inclusive approach.

 During a recent BRICS summit, leaders highlighted the need for comprehensive reforms within the UN, emphasizing the importance of enhancing the participation of emerging nations.

Central to their demands is a reevaluation of the Security Council's composition and the reconsideration of the veto power held by its permanent members.

 This dissatisfaction has sparked numerous calls for significant reforms, or even a complete overhaul of the UN, with the goal of establishing a more equitable and representative system of global governance.

In this video, we will explore these proposed changes and the motivations behind them.

https://www.youtube.com/watch?v=cwlq1qC93BM

Iraq Economic News and Points To Ponder Sunday Afternoon 8-11-24

Parliamentary Committee To Nina: A Government Team Is Preparing A New Draft Of The Oil And Gas Bill

Sunday 11 August 2024 | Economic Number of readings: 127  Baghdad / NINA / The Parliamentary Oil, Gas and Natural Resources Committee revealed the fate of the oil and gas bill that has been stalled since successive parliamentary sessions.

The Vice Chairman of the Committee, Nahro Mahmoud Qader, stated in a statement to the National Iraqi News Agency ( NINA ): "The oil and gas bill has not reached the corridors of the House of Representatives yet, and has not been presented for discussion within the Council of Ministers yet."

He added: "No new draft of the bill has reached the House of Representatives at the present time," indicating that "Prime Minister Mohammed Shia al-Sudani has assigned a" tripartite ministerial team "to prepare a new final draft that will be presented first within the Council of Ministers for approval, and then sent to the House of Representatives later," ruling out at the same time that this law will be legislated during the current legislative session of the House of Representatives. /End5

https://ninanews.com/Website/News/Details?Key=1147107

Gold Prices Stabilize As Dollar Falls In Baghdad

Stock Exchange  Economy News – Baghdad  The prices of "foreign and Iraqi" gold stabilized in the local markets in the capital, Baghdad, today, Sunday (August 11, 2024).

Gold prices in the wholesale markets on Al-Nahr Street in the capital, Baghdad, this morning recorded a selling price for one mithqal of 21 karat Gulf, Turkish and European gold of 516 thousand dinars, and a purchase price of 512 thousand dinars.

The selling price of one mithqal of 21-karat Iraqi gold reached 486 thousand dinars, and the purchase price was 482 thousand.

As for gold prices in goldsmiths’ shops, the selling price of a mithqal of 21-karat Gulf gold ranges between 520,000 and 530,000 dinars, while the selling price of a mithqal of Iraqi gold ranges between 490,000 and 500,000 dinars.

The exchange rate of the US dollar fell against the Iraqi dinar on Sunday morning in Baghdad markets.

The dollar prices recorded a decrease with the opening of the Al-Kifah and Al-Harithiya stock exchanges, at 149,750 dinars, while yesterday, Saturday, it recorded 150,150 dinars for every 100 dollars. 125 views  2024/08/11 - https://economy-news.net/content.php?id=46151

Oil Announces A Decrease In The Percentage Of Product Imports To More Than 50 Percent

 Energy  Economy News – Baghdad  The Ministry of Oil announced, on Sunday, that the import of petroleum products has decreased by more than 50% during the past two years, while indicating that local production is sufficient to absorb cars, generators, and everything related to power stations.

The media manager of the Oil Products Distribution Company, Rafid Sadiq, said in a statement reported by the official news agency, and seen by "Al-Eqtisad News", that "the oil company can talk about the daily consumption rates of oil derivatives, but the production rates are the tasks of the refining sector, and the Ministry of Oil has multiple sectors, including (refining, gas, extraction and distribution) isolated from each other."

He added, "The current production of gasoline and kerosene is about 30,000,000 liters per day, in addition to the increase in the past two months in kerosene for private generators," noting that "the consumption and import rate two years ago for kerosene and white oil reached 50%, and after the Prime Minister's government came to power, it declined to zero.

As for gasoline, the rate decreased from 50% to 25%, and these rates helped bring the Karbala refinery into service and expand the refineries in Dora, Haditha and Basra, and return the Baiji refinery to work at almost full capacity."

He pointed out that "these factors helped reduce the level of imports from 16 million of gasoline per day to about 7 million, and the numbers were similar for kerosene and white oil, and now there is no import of these two materials," indicating that "local production is sufficient to absorb cars, generators and everything related to power stations, but limited imports of gasoline remained due to the entry of some projects that are counted on in the FCC unit in Basra and the gasoline improvement unit in Dora, according to what is planned to reach zero imports of all petroleum derivatives."

He explained, "There is no specific number for the production, but last year more than 360,000 barrels were added to the refining capacity of the Ministry of Oil." 115 views  Added 2024/08/11 - https://economy-news.net/content.php?id=46159

Iraq's Oil Exports To The United States Fell Last Week

Sunday 11 August 2024 11:09 | Economic Number of readings: 187  Baghdad / NINA / The US Energy Information Administration announced today, Sunday, that Iraq's oil exports to the United States decreased during the past week.

The administration said in a table, "The average US imports of crude oil during the past week from 9 major countries amounted to 4.198 million barrels per day, down by 1.356 million barrels per day from the previous week, which amounted to 5.554 million barrels per day."

It added that "Iraq's oil exports to America amounted to 143 thousand barrels per day last week, down by 35 thousand barrels per day from the previous week, which amounted to 178 thousand barrels per day."

The  largest oil revenues to America during the past week came from Canada, followed by Saudi Arabia, then Brazil, Ecuador and Mexico, as US imports of crude oil continued from Colombia, Nigeria and Libya.   https://ninanews.com/Website/News/Details?key=1146988

Oil Heads For Weekly Gains Amid Rising Mideast Tensions, Improving US Outlook

Saturday 10 August 2024 09:34 | Economic Number Of Readings: 170  Baghdad / NINA / Oil prices fell slightly in early Asian trading on Friday, but are on track to achieve gains of more than 3% this week after US jobs data eased demand concerns, as well as continued concerns about the spread of the conflict in the Middle East.

Brent crude futures fell nine cents, or 0.11%, to $79.07 a barrel by 00:30 GMT, while US West Texas Intermediate (WTI) crude futures fell one cent to $76.09 a barrel.

However, both crudes are on track to record gains of more than 3% on a weekly basis, according to Reuters.

"Crude oil continued to recover from its latest decline as markets focus on escalating geopolitical risks," said Daniel Hynes, an analyst at ANZ.

Libya's National Oil Corporation also provided some support when it declared force majeure at the Sharara oilfield effective Wednesday, stating that the field's production was being gradually reduced due to protests.

Prices rose after data showed the number of Americans filing new claims for unemployment benefits fell more than expected last week, suggesting concerns about a deteriorating labor market were overblown.

The dollar rose after the jobs data. A stronger dollar typically weighs on oil prices because buyers using other currencies have to pay more for dollar-denominated crude. https://ninanews.com/Website/News/Details?key=1146792

Foreign Remittance Sales Rise At Central Bank Of Iraq Auction

Time: 2024/08/11 15:28:13 Reading: 897 times   {Economic: Al Furat News} Foreign remittance sales rose in the Central Bank auction on Sunday by 93% over cash sales, reaching more than $257 million.

Today, the Central Bank sold during its auction for buying and selling the US dollar 274 million, 469 thousand, and 407 dollars, covering it at a basic exchange rate of 1310 dinars per dollar for documentary credits and international settlements for electronic cards, and at a rate of 1310 dinars per dollar for foreign transfers, and at a rate of 1305 dinars per dollar in cash.

Most of the dollar sales went to boost balances abroad in the form of transfers and credits, which amounted to $257,110,407, up 95% from cash sales of $17,350,000.

The number of banks that purchased cash dollars was two, while the number of banks that met requests to enhance balances abroad was 16 banks, and the total number of exchange companies participating in the auction was 13 companies.   LINK

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

Seeds of Wisdom RV and Economic Updates Sunday Morning 8-11-24

Good Morning Dinar Recaps,

What Was the Bretton Woods Agreement and System?

The Bretton Woods agreement was negotiated in July 1944 by delegates from 44 countries at the United Nations Monetary and Financial Conference held in Bretton Woods, New Hampshire.

Federal Reserve History. "Creation of the Bretton Woods System."

Under the Bretton Woods system, gold was the basis for the U.S. dollar, and other currencies were pegged to the U.S. dollar’s value.

The Bretton Woods system effectively came to an end in the early 1970s when President Richard M. Nixon announced that the U.S. would no longer exchange gold for U.S. currency.

Key Takeaways

▪️The Bretton Woods agreement and system created a collective international currency exchange regime that lasted from the mid-1940s to the early 1970s.

▪️The Bretton Woods system required a currency peg to the U.S. dollar which was in turn pegged to the price of gold.

▪️The Bretton Woods system collapsed in the 1970s but had a lasting influence on international currency exchange and trade through the development of the International Monetary Fund and the World Bank.

The Bretton Woods Agreement and System Explained

Approximately 730 delegates representing 44 countries met in Bretton Woods in July 1944 with the principal goals of creating an efficient foreign exchange system, preventing competitive devaluations of currencies, and promoting international economic growth. 

The Bretton Woods agreement and system were central to these goals. The agreement also created two important organizations—the International Monetary Fund (IMF) and the World Bank. 

 While the Bretton Woods system was dissolved in the 1970s, both the IMF and World Bank have remained strong pillars for the exchange of international currencies.

Though the Bretton Woods conference itself took place over just three weeks, the preparations for it had been going on for several years. 

The primary designers of the Bretton Woods system were the famous British economist John Maynard Keynes and chief international economist of the U.S. Treasury Department Harry Dexter White.

Keynes’ hope was to establish a powerful global central bank to be called the "Clearing Union" and issue a new international reserve currency called the bancor.

White’s plan envisioned a more modest lending fund and a greater role for the U.S. dollar, rather than the creation of a new currency. In the end, the adopted plan took ideas from both, leaning more toward White’s plan.

It wasn't until 1958 that the Bretton Woods system became fully functional. Once implemented, its provisions called for the U.S. dollar to be pegged to the value of gold. Moreover, all other currencies in the system were then pegged to the U.S. dollar’s value. The exchange rate applied at the time set the price of gold at $35 an ounce.

Benefits of Bretton Woods Currency Pegging

The Bretton Woods system included 44 countries. These countries were brought together to help regulate and promote international trade across borders.

As with the benefits of all currency pegging regimes, currency pegs are expected to provide currency stabilization for the trade of goods and services as well as financing.

All of the countries in the Bretton Woods system agreed to a fixed peg against the U.S. dollar with diversions of only 1% allowed. 

Countries were required to monitor and maintain their currency pegs which they achieved primarily by using their currency to buy or sell U.S. dollars as needed. 

The Bretton Woods system, therefore, minimized international currency exchange rate volatility which helped international trade relations. 

More stability in foreign currency exchange was also a factor in the successful support of loans and grants internationally from the World Bank.

The IMF and World Bank

The Bretton Woods agreement created two institutions, the IMF and the World Bank. Formally introduced in December 1945, both institutions have withstood the test of time, globally serving as important pillars for international capital financing and trade activities.

The purpose of the IMF was to monitor exchange rates and identify nations that needed global monetary support. 

The World Bank, initially called the International Bank for Reconstruction and Development, was established to manage funds available for providing assistance to countries that had been physically and financially devastated by World War II.

 Today, the IMF has 190 member countries and still continues to support global monetary cooperation.

 In tandem, the World Bank helps to promote these efforts through its loans and grants to governments.

The Bretton Woods System Collapse

In 1971, concerned that the U.S. gold supply was no longer adequate to cover the number of dollars in circulation, President Richard M. Nixon devalued the U.S. dollar relative to gold. After a run on gold reserve, he declared a temporary suspension of the dollar’s convertibility into gold.

 By 1973 the Bretton Woods system had collapsed. Countries were then free to choose any exchange arrangement for their currency, except pegging its value to the price of gold.

They could, for example, link its value to another country's currency, or a basket of currencies, or simply let it float freely and allow market forces to determine its value relative to other countries' currencies.

The Bretton Woods agreement remains a significant event in world financial history. 

The two Bretton Woods institutions it created in the International Monetary Fund and the World Bank played an important part in helping to rebuild Europe in the aftermath of World War II.

 Subsequently, both institutions have continued to maintain their founding goals while also transitioning to serve global government interests in the modern-day.

Is the Bretton Woods Agreement Still in Effect?

The Bretton Woods system—which required a currency peg to the U.S. dollar and linked the value of the dollar to gold—is no longer in effect.

In the 1960s, the dollar had struggled within the system set up under the Bretton Woods agreement. In 1971, President Nixon suspended its convertibility into gold. Today, currencies float against each other, rather than keeping at firm pegs.

What Is the Difference Between the Gold Standard and the Bretton Woods System?

The gold standard refers to any monetary system in which the value of currency is linked to gold. Currently, there are no countries that use the gold standard.

Under the Bretton Woods system, the U.S. was originally convertible to gold at a rate of $35 per ounce. By 1971, this convertibility was severed.

What Backs the U.S. Dollar?

Previously, the U.S. dollar was backed by gold. Today, the U.S. dollar isn't backed by anything, other than the U.S. government's own ability to generate revenue.

The Bottom Line

The Bretton Woods agreement established a currency exchange regime system in 1944, following years of negotiations among 44 nations.

This system required a currency peg to the U.S. dollar which was in turn pegged to the price of gold. The Bretton Woods system ultimately would go on to collapse in the 1970s. 

The Bretton Woods agreement also established institutions such as the International Monetary Fund and the World Bank, both of which continue to play an important role in the financial world today.

@ Newshounds News™

Source:  Investopedia

~~~~~~~~~

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Seeds of Wisdom Team™ Website

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