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Seeds of Wisdom RV and Economics Updates Monday Afternoon 8-3-26
Good Afternoon Dinar Recaps,
Federal Reserve Outlook and Rising Treasury Yields Continue to Pressure Families and Global Markets
Uncertainty surrounding future Federal Reserve policy and rising Treasury yields are keeping financial markets on edge, influencing borrowing costs, investment decisions, and the broader outlook for the global economy.
Good Afternoon Dinar Recaps,
Federal Reserve Outlook and Rising Treasury Yields Continue to Pressure Families and Global Markets
Uncertainty surrounding future Federal Reserve policy and rising Treasury yields are keeping financial markets on edge, influencing borrowing costs, investment decisions, and the broader outlook for the global economy.
Overview
Federal Reserve officials remain divided over the next interest rate move, with some policymakers arguing inflation may require tighter monetary policy.
Treasury yields have continued to rise, reflecting expectations that interest rates could remain elevated for longer than previously anticipated.
Higher borrowing costs continue affecting households, businesses, governments, and global financial markets, making Federal Reserve policy one of the most closely watched drivers of the world economy.
Key Developments
1. Fed Officials Signal Inflation Remains a Concern
Several Federal Reserve officials continue to emphasize that inflation remains above the central bank's long-term 2% target, leading some policymakers to advocate for maintaining a restrictive policy stance. While no immediate rate increase has been announced, markets continue evaluating whether additional tightening could become necessary if inflation proves more persistent.
2. Treasury Yields Reflect Expectations for Higher Rates
U.S. Treasury yields have remained elevated as investors reassess the outlook for monetary policy. Rising yields generally signal expectations that interest rates may stay higher for longer, increasing financing costs throughout the economy while influencing bond markets, mortgage rates, and corporate borrowing.
3. Families Continue Feeling the Impact
For many Americans, elevated interest rates continue to translate into higher mortgage payments, more expensive auto loans, increased credit card interest, and higher costs for personal borrowing. Businesses also face higher financing expenses, often leading companies to delay expansion plans, reduce investment, or pass increased costs along to consumers.
4. Global Markets Closely Watch Every Fed Signal
Because the U.S. dollar remains the world's primary reserve currency, Federal Reserve decisions extend well beyond the United States. Changes in U.S. interest rates influence global capital flows, government borrowing costs, currency valuations, commodity prices, and international investment decisions, making every Fed communication significant for financial markets worldwide.
Why It Matters
Federal Reserve policy determines the price of money throughout much of the global economy. When borrowing costs remain elevated, economic activity often slows as consumers spend less, businesses invest more cautiously, and governments devote larger portions of their budgets to servicing debt.
Although inflation has moderated from previous highs, many families continue waiting for meaningful relief in the cost of housing, food, transportation, and everyday living expenses. Lower inflation alone does not immediately reduce prices; rather, it slows the pace at which prices continue rising.
Why It Matters to Foreign Currency Holders
Foreign currency holders closely monitor Federal Reserve policy because U.S. interest rates influence the strength of the dollar and global liquidity. Decisions made in Washington frequently affect currency markets worldwide, shaping investment flows and the relative value of many international currencies.
Implications for the Global Reset
Pillar 1: Debt
Higher interest rates increase borrowing costs for households, businesses, and governments, placing greater pressure on debt sustainability while reinforcing the importance of sound fiscal management.
Pillar 3: Assets
Treasury yields influence the pricing of stocks, bonds, gold, cryptocurrencies, and other financial assets. Shifting expectations for future Federal Reserve policy continue to drive capital flows across global markets.
This is about much more than the next Federal Reserve meeting—it highlights how the cost of money influences every level of the global economy, from family budgets to government finances, and remains a central force shaping the evolution of the international financial system.
Seeds of Wisdom Team
Newshounds News™ Exclusive
Sources
CryptoBriefing — Treasury Yields Rise as Fed Officials Back Rate Hike
CryptoBriefing — Fed Dissenters Push for Rate Hike Amid Inflation Concerns: MarketWatch
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Iraq Economic News and Points To Ponder Monday Afternoon 8-3-26
Sulfur Shortage Pushes Global Prices Up 134%
2026-08-02 Shafaq News- Baghdad Sulfur prices surged 134% since the outbreak of the US-Iran war in February 28, driving up global food production costs due to sulfur's key role in fertilizer manufacturing, Bull Theory media outlet reported on Sunday. The Strait of Hormuz is a vital route for global seaborne sulfur trade, handling about half of worldwide shipments.
Sulfur Shortage Pushes Global Prices Up 134%
2026-08-02 Shafaq News- Baghdad Sulfur prices surged 134% since the outbreak of the US-Iran war in February 28, driving up global food production costs due to sulfur's key role in fertilizer manufacturing, Bull Theory media outlet reported on Sunday. The Strait of Hormuz is a vital route for global seaborne sulfur trade, handling about half of worldwide shipments.
During three and a half months of conflict, only 80,000 metric tons of sulfur passed through the strait, compared with 640,000 metric tons after a de-escalation agreement was reached, according to Reuters.
https://www.shafaq.com/en/Economy/Sulfur-shortage-pushes-global-prices-up-134
Oil Prices Drop On US-Iran Deal Talks
2026-08-03 Shafaq News Oil prices tumbled more than $4 a barrel on Monday after U.S. President Donald Trump held off on a fresh attack on Iran, seeking to reach a quick deal that would halt Tehran's nuclear ambitions and reopen the Strait of Hormuz.
Brent crude futures slid $4.49, or 5.11%, to $83.44 by 0408 GMT while U.S. West Texas Intermediate crude was at $79.77 a barrel, down $4.90, or 5.79%.
Both contracts jumped more than 20% last month after fighting between the U.S. and Iran resumed and as attacks on several tankers around Oman heightened security concerns, deterring shippers from entering the Gulf to load oil.
In a sign of de-escalation, Trump said late on Saturday on his Truth Social platform that Iran and other Middle Eastern countries had asked for time to complete a deal that would lead to "the Immediate, Complete and Total" reopening of the vital strait and "an end to Iran's nuclear threat".
"The bigger focus is whether this week turns into a rinse and repeat of last week — with hopes of a deal collapsing as Iran digs in its heels and continues to leverage its control over the Strait, potentially through an attack on a U.S. base or a tanker transiting the waterway," IG market analyst Tony Sycamore said.
Two tankers laden with Saudi oil crossed the Bab el-Mandeb Strait out of the Red Sea over the weekend while traffic in the Strait of Hormuz slowed following reports of vessel attacks, shipping data showed on Monday.
The United Kingdom Maritime Trade Operations has reported three more tanker attacks since Saturday.
On Sunday, OPEC+ approved an oil production quota increase of around 188,000 barrels per day from September, the producer group said, in a move that completes the unwinding of a layer of voluntary output cuts.
Due to export disruptions from the Gulf, Russia and Kazakhstan caused by the Iran and Ukraine wars, successive monthly OPEC+ hikes over most of this year have remained largely on paper with little impact on the market. (Reuters)
https://www.shafaq.com/en/Economy/Oil-prices-drop-on-US-Iran-deal-talks
Iraq’s Public Borrowing Climbs To $78B In May
2026-08-03 Shafaq News- Baghdad Iraq’s domestic public debt rose above 103 trillion Iraqi dinars ($78.8B) by the end of May 2026, extending its upward trend from the previous month, according to data from the Central Bank of Iraq (CBI).
Domestic public debt reached 103.179 trillion dinars ($78.8B), up from 95.679 trillion dinars ($73.0B) at the end of April and 90.515 trillion dinars ($69.1B) at the close of 2025.
The total included 63.199 trillion dinars ($48.2B) in Ministry of Finance claims held by the CBI, 20.270 trillion dinars ($15.5B) in loans, 10.868 trillion dinars ($8.3B) in bonds, and 8.842 trillion dinars ($6.7B) in treasury bills, which remained unchanged from the previous month.
The data also showed a continued decline in Iraq’s external debt, which fell to $54.101B in 2025 from $54.601B in 2024 and $56.207B in 2023, marking a reduction of more than $2.1B over two years.
https://www.shafaq.com/en/Economy/Iraq-s-public-borrowing-climbs-to-78B-in-May
Dollar Slips In Erbil As Baghdad Exchanges Halt
2026-08-03 Shafaq News- Baghdad/ Erbil The US dollar edged lower in Erbil as trading opened on Monday, while Baghdad's Al-Kifah and Al-Harithiya currency exchanges were closed due to the Arbaeen holiday.
According to Shafaq News market survey, some exchange shops in Baghdad sold the US dollar at 152,250 dinars per 100 dollars and bought it at 151,250 dinars.
In Erbil, the dollar sold for 152,100 dinars per 100 dollars and bought for 152,000 dinars.
The official exchange rate set by the Central Bank of Iraq stands at 132,000 dinars per 100 dollars.
https://www.shafaq.com/en/Economy/Dollar-slips-in-Erbil-as-Baghdad-exchanges-halt
Gold Trading Slows In Baghdad, Rises In Erbil
2026-08-03 Shafaq News- Baghdad/ Erbil Gold trading was limited in Baghdad on Monday during the Arbaeen holiday, while 21-carat gold reached 869,000 Iraqi dinars per mithqal (about five grams) in Erbil, according to a Shafaq News survey.
In Baghdad gold shops that remained open, imported 21-carat gold from the Gulf ranged from 870,000 to 880,000 dinars per mithqal, while Iraqi gold traded between 840,000 and 850,000 dinars.
In Erbil, where markets operated normally, 22-carat gold sold for 910,000 dinars per mithqal, 21-carat gold for 869,000 dinars, and 18-carat gold for 745,000 dinars.
* Observed this year on Aug. 4, Arbaeen marks the 40th day after the martyrdom of Imam Hussein, the third Shia Imam and grandson of the Prophet Muhammad, and draws millions of Shiite Muslims to Karbala annually, making it one of the largest religious gatherings in the world. https://www.shafaq.com/en/Economy/Gold-trading-slows-in-Baghdad-rises-in-Erbil
New Najaf Depot Adds 3K M³ To Iraq LPG Storage
2026-08-03 Shafaq News- Najaf Iraq on Monday began trial operations at a liquefied petroleum gas depot in Najaf province with 3,000 cubic meters of storage capacity, aiming to strengthen strategic reserves and stabilize supplies across central and other provinces.
Oil Ministry Undersecretary for Gas Affairs Izzat Saber Ismail explained that the depot will receive LPG through pipelines instead of tanker trucks, improving safety and supporting stable deliveries to production and service facilities.
The project is part of wider plans to expand Iraq’s LPG storage, transportation, and distribution network, with technical procedures for full operation expected to be completed “within days.”
The trial was completed successfully under approved technical and operating requirements, Director General of the State Company for Gas Filling and Services Anmar Ali Hussein said, adding that the company is developing additional depots across Iraq to increase storage capacity and meet rising demand.
Iraq produces about 4,500 tons of LPG per day against consumption of roughly 4,700 tons, while strategic reserves stand at around 50,000 tons, according to Oil Ministry figures. Nearly 95,000 vehicles across Iraq were operating on LPG by July, up from more than 70,000 in March, further increasing demand for storage and distribution infrastructure.
Read more: Iraq's energy vulnerability: When a petro-state has no buffer
https://www.shafaq.com/en/Economy/New-Najaf-depot-adds-3K-m-to-Iraq-LPG-storage
Iraq Economic News and Points To Ponder Monday Morning 8-3-26
Shafaq News Investigates: The Government Is Moving Towards Borrowing 3 Trillion And The Internal Debt Is "Exploding"
2026-08-02 03:26 Shafaq News - Baghdad The Iraqi government is entering a financial phase that is considered one of the most sensitive in years, after the salaries of millions of employees and retirees turned into the biggest challenge facing the public treasury.
Shafaq News Investigates: The Government Is Moving Towards Borrowing 3 Trillion And The Internal Debt Is "Exploding"
2026-08-02 03:26 Shafaq News - Baghdad The Iraqi government is entering a financial phase that is considered one of the most sensitive in years, after the salaries of millions of employees and retirees turned into the biggest challenge facing the public treasury.
With shrinking liquidity and declining oil revenues, pressure on public finances has increased, and the government is increasingly resorting to exceptional financing tools to provide the necessary liquidity to cover its monthly obligations, primarily salaries, which account for the largest share of public spending.
These indicators come at a time when financial pressures are expected to increase in the coming months, with the expansion of government obligations and a decline in the margin of financial maneuvering, due to the disruption of oil exports through the Strait of Hormuz to global markets, which in turn is witnessing military tensions that may extend for months to come.
Crisis Figures
Shafaq News Agency learned from three high-ranking sources in the Ministry of Finance, and a source close to Iraqi Prime Minister Ali al-Zaidi, that the Iraqi government is facing increasing financial pressures that may prevent it from securing the salaries of state employees for the month of August from the currently available liquidity.
According to the sources, the government is moving towards resorting to internal borrowing during this month from a number of private banks, confirming that it will borrow more than three trillion dinars, with the aim of providing the necessary funds to pay the salaries of employees during this month.
She pointed out that the annual interest rate on government borrowing instruments is 5.25%, indicating that the size of the internal debt owed by the government currently ranges between 106 trillion and 125 trillion dinars.
The sources added that Iraq lost $30 billion during the past five months as a result of the disruption of oil exports through the Strait of Hormuz, which directly affected public revenue flows and the liquidity available to finance operating expenses.
This comes at a time when Iraqi economic researcher Ziad al-Hashemi has warned that Iraq has entered a phase of "financial hardship," with the government acknowledging a shortage of liquidity after months of denying the existence of a crisis.
Al-Hashemi said in a post on the “X” platform that the current crisis is not only related to the decline in oil revenues, but reflects years of mismanagement of resources and uncontrolled spending, noting that revenues are depleted before they reach the state treasury due to corruption, waste and accumulated financial obligations.
He also explained that overcoming the crisis requires radical financial reforms that include reducing waste, combating corruption, controlling the payroll, and developing non-oil revenues, warning that financial reserves will not be able to protect the state from recurring crises if current policies continue.
Government Vision
Regarding how Iraq reached this stage, and the urgent measures required to reduce the effects of the liquidity crisis on citizens and the economy, the Iraqi Prime Minister’s economic advisor, Mazhar Muhammad Salih, said that what Iraq is going through does not represent a sudden financial crisis, but rather is the result of accumulated structural imbalances in public finances that became clearly apparent with any disruption to the oil market or export activity.
Speaking to Shafaq News Agency, Saleh said that the Iraqi budget’s reliance on oil revenues by more than 90% has made public finances extremely sensitive to any decrease in prices or exports, at a time when current spending has expanded over the past years, especially in the area of salaries, wages and social assistance, compared to the limited contribution of non-oil sectors to financing the state.
According to the government advisor, weak economic diversification, low efficiency in tax and customs collection, delays in financial and administrative reforms, as well as high fixed budget obligations, have all reduced the government's ability to maneuver when revenues decline.
He added that the solution should not be limited to overcoming the current crisis, but should turn into an opportunity to restructure the economy by rationalizing public spending, postponing unnecessary projects, and improving the efficiency of the use of funds, while maintaining salaries, basic services, and social safety nets.
Saleh also warned that borrowing, although a tool available when needed, must remain within carefully considered limits and not become a permanent means of financing operating expenses, as this could increase debt burdens and affect the private sector’s ability to obtain financing.
These statements coincide with the admission by the Iraqi Minister of Health, Abdul Hussein Al-Moussawi, last Thursday, that the government is facing a liquidity crisis that has made securing salaries its priority, while he confirmed that the General Company for Marketing Drugs and Medical Supplies (Kimadia) has received only 15% of its budget, which has led to its bankruptcy, the disruption of new contracts, and the threat to drug supplies.
Following the statements of the Minister of Health, the Minister of Finance, Faleh Al-Sari, made another statement confirming the existence of a real financial deficit that hinders the completion of the disbursement of salaries for employees, retirees and social welfare beneficiaries, noting that the total monthly obligations for salaries amount to about 7 trillion and 800 billion dinars.
Loan To Guarantee Salaries
In contrast, Samir Al-Nassiri, an advisor to the Association of Iraqi Private Banks, believes that the government has managed to provide liquidity through internal borrowing over the past months, stressing that employee salaries are still secured and will not be interrupted.
Al-Nassiri explained to Shafaq News Agency that the borrowing mechanism involves the Ministry of Finance issuing treasury bills, which the Central Bank then rediscounts, thereby bolstering bank reserves and providing the government with necessary liquidity. He emphasized that this process does not entail using citizens' deposits or withdrawing depositors' funds, but rather represents a financial tool used by the state to cover its temporary needs.
He added that the decline in oil revenues has led to a widening fiscal deficit, prompting the government to rely on domestic borrowing tools to ensure continued funding of spending, primarily salaries. He explained that the ability to borrow domestically may continue until the end of the year if the current conditions remain unchanged.
Al-Nassiri concluded by saying that the government may have to take additional measures, including rationalizing spending, resorting to other financing options, passing legislation related to loans and grants, as well as working to increase oil exports through alternative outlets to the Strait of Hormuz.
But economic researcher Ahmed Eid believes that private banks cannot be the main solution to the liquidity crisis, pointing out that they already suffer from a weak deposit base due to low public confidence in the banking sector and the reliance of a large segment on keeping money outside the banking system.
Eid told Shafaq News Agency that the banks' ability to finance the economy or expand lending remains limited unless deposits increase and financial inclusion and electronic payment tools expand.
He warned that increasing the government’s reliance on borrowing from banks could deplete the liquidity available to the banking system and reduce its ability to finance the private sector and productive projects, which would raise the cost of financing and weaken economic activity. He indicated that the priority should be to build a banking sector that is more capable of mobilizing savings, enhancing confidence in banks, and diverting their resources from financing the government deficit to supporting development and investment.
Iraqi government spokesman Haider al-Aboudi had previously confirmed that Iraq is facing "severe" financial challenges, noting that the government needs about 10.8 trillion dinars per month to cover employee salaries and public expenditures, while the country's oil revenues do not exceed 2.5 trillion dinars.
Al-Aboudi acknowledged in a televised statement that this financial crisis directly affected the salary distribution schedule, leading to delays and irregularities in their disbursement as was the practice.
The Fragility Of The Oil Model
Professor of International Economics, Nawar Al-Saadi, believes that the current crisis has revealed the fragility of the Iraqi economic model in an unprecedented way.
Al-Saadi confirmed in his interview with Shafaq News Agency that Iraq relies on oil to secure the largest part of its budget revenues, while a large percentage of its oil exports pass through the Strait of Hormuz, which means that any disruption in this route directly affects the state’s ability to finance its obligations.
He pointed out that the monthly operating expenses exceeding ten trillion dinars, most of which goes to salaries, pensions and social welfare, created a financial gap that quickly appeared in the form of delays in salary payments, adding that the current crisis is not just an oil price crisis, but a cash flow and revenue crisis.
Al-Saadi pointed out the need to move along three parallel tracks:
First, ensure the continued payment of salaries by reprioritizing spending and postponing unnecessary expenses.
Secondly, to expedite the activation of alternative export outlets through Türkiye, Syria and others to reduce dependence on a single outlet.
Third, providing temporary liquidity through domestic debt instruments and managing reserves prudently, while avoiding any financing that could lead to increased inflation and harm the purchasing power of citizens.
The Economic Affairs Observatory “Eco Iraq” announced on July 19 that Iraq extracted about 440.3 million barrels of oil during the first half of 2026, while the loss in production amounted to about 302.8 million barrels compared to the normal rate, as a result of the repercussions of security and military tensions in the region.
It is worth noting that analysts in the energy and geopolitics sectors have warned that Iraq will be among the countries most affected if the disruption to navigation in the Strait of Hormuz continues, given that oil flows from the Gulf remain at about 50% of pre-war levels, equivalent to a decrease of at least 10 million barrels per day from regional supplies.
An Economist Reveals The Real Reasons Behind The Financial Deficit And The Shortage Of Cash Liquidity.
Information / Baghdad On Sunday, economist Faleh al-Zubaidi revealed the real reasons behind the financial deficit and cash shortage facing the Iraqi government, while issuing a strong warning against resorting to external borrowing.
Al-Zubaidi told Al-Maalomah News Agency that “the government is currently suffering from a clear shortage of financial liquidity as a result of the sharp decline in oil revenues, which came as a direct consequence of the closure of the Strategic Strait of Hormuz.”
He added that “85% of Iraq’s oil exports depend entirely on passing through the Strait of Hormuz, while the remaining percentage flows through the Turkish port of Ceyhan,” explaining that “this stoppage has temporarily paralyzed the government’s ability to provide the necessary cash liquidity,” noting that “this shortage will not last long in light of the indicators of political and security calm in the region, especially after Iran’s agreement to a ceasefire, which means that financial revenues will return to normal as soon as the strait is reopened.”
Al-Zubaidi explained that “the government has effective local solutions, which are the issuance of bonds and discounting of remittances through the Central Bank, through the Ministry of Finance issuing short-term bonds and selling them to the Central Bank of Iraq.”
He warned of the "dangers of Baghdad resorting to external borrowing from international entities," stressing that "these entities will impose unfair and harsh conditions, including a strict repayment schedule, exorbitant interest rates, and a dangerous clause allowing them to seize and confiscate some Iraqi state assets in case of default." End/25m
Al-Mashhadani: The Increase In Employee Salaries To 100 Trillion Dinars Annually Puts The Government In A Predicament.
Information/Special... Financial expert Abdul Rahman Al-Mashhadani ruled out on Sunday the government resorting to austerity measures and salary cuts for employees and retirees, stressing that the only solution to confront this crisis is external borrowing.
Al-Mashhadani explained to the Information Agency that "the size of employee salaries has worsened in recent years, with social welfare and retiree payments reaching approximately 28 trillion dinars annually, while employee salaries amount to around $67 billion annually,
equivalent to 96 trillion dinars annually." He emphasized that "the Ministry of Finance is obligated to provide 8 trillion dinars monthly to pay salaries to the beneficiaries."
He continued, “The government has no option to confront this crisis other than external borrowing, which necessitates Parliament enacting a law on external borrowing and grants as quickly as possible to provide the government with the necessary liquidity.”
He clarified that Iraq needs 10.5 trillion dinars monthly, distributed between salaries, payments to oil companies, and support for the food ration program.
He pointed out that "austerity measures such as cutting employee salaries or even abolishing or merging some ministries and government institutions are no longer effective in the current circumstances, as they are merely stopgap measures that offer nothing." End 25
Seeds of Wisdom RV and Economics Updates Monday Morning 8-3-26
Good Morning Dinar Recaps,
Iran–Oman Shipping Agreement Raises Hope for Lower Energy Costs and a New Era in Global Trade
Diplomatic progress between Iran and Oman, combined with renewed U.S.–Iran negotiations, is easing pressure on global energy markets while highlighting how trade routes and payment systems may be evolving as part of the next generation of the international financial system.
Good Morning Dinar Recaps,
Iran–Oman Shipping Agreement Raises Hope for Lower Energy Costs and a New Era in Global Trade
Diplomatic progress between Iran and Oman, combined with renewed U.S.–Iran negotiations, is easing pressure on global energy markets while highlighting how trade routes and payment systems may be evolving as part of the next generation of the international financial system.
Overview
Iran and Oman are reportedly nearing an agreement to jointly manage commercial shipping through the Strait of Hormuz, one of the world's most important energy corridors.
President Donald Trump confirmed that U.S.–Iran negotiations are scheduled to begin Monday, helping calm markets and contributing to a sharp decline in oil prices.
The combination of diplomatic progress and improved maritime security could reduce inflationary pressures while supporting more stable global trade and energy markets.
Key Developments
1. Strait of Hormuz Agreement Moves Closer
Iranian officials reported that negotiations with Oman are in the final stages of establishing a cooperative framework for managing commercial shipping through the Strait of Hormuz, which carries approximately 20% of the world's daily oil supply. While details are still being finalized, the agreement is intended to improve navigation and reduce tensions in one of the world's most strategically important maritime corridors.
2. Diplomacy Replaces Immediate Military Escalation
President Donald Trump confirmed that formal negotiations with Iran are expected to begin Monday, emphasizing that he would prefer reaching an agreement rather than expanding military operations. According to Trump's public remarks, discussions are expected to address both the future of the Strait of Hormuz and broader issues surrounding Iran's nuclear program.
Although reports have circulated suggesting possible military contingency plans remain available if diplomacy fails, today's developments indicate that negotiations—not military action—are currently the primary focus.
3. Oil Prices Fall as Markets Respond
Financial markets reacted quickly to the diplomatic developments. Oil prices fell more than 6%, dropping below $80 per barrel, while U.S. stock futures advanced as investors reduced expectations of a prolonged disruption to Middle East energy supplies.
Lower oil prices have the potential to ease inflation pressures throughout the global economy by reducing transportation, manufacturing, and energy costs.
4. Alternative Payment Systems Remain Under Discussion
Earlier drafts of the Iran–Oman shipping proposal reportedly included provisions that could allow digital assets or yuan-denominated payment mechanisms for certain shipping-related transactions. Although no final agreement has confirmed these payment methods, the discussions reflect a broader global trend toward exploring alternatives to traditional dollar-based settlement for international commerce.
Why It Matters
The Strait of Hormuz remains one of the world's most important gateways for global energy supplies. Progress toward greater stability not only supports energy security but may also reduce inflation pressures that affect families, businesses, corporations, and governments worldwide.
For consumers, sustained lower oil prices can gradually reduce gasoline prices, transportation expenses, and some supply-chain costs. While grocery prices and many household expenses typically adjust more slowly, continued stability in energy markets often helps ease inflation over time.
Why It Matters to Foreign Currency Holders
Foreign currency holders continue watching developments that strengthen international trade and financial stability. Although the U.S. dollar remains the world's primary reserve currency, discussions surrounding alternative payment mechanisms demonstrate that countries continue exploring more diversified methods of settling cross-border trade.
Implications for the Global Reset
Pillar 2: Trade
Greater stability in the Strait of Hormuz would improve the flow of global commerce, reduce shipping risks, and support more efficient international trade.
Pillar 3: Assets
Ongoing discussions surrounding digital asset and alternative payment mechanisms illustrate the continued modernization of international financial infrastructure, even though no final payment framework has yet been adopted.
This is about far more than easing Middle East tensions—it reflects how diplomacy, secure trade routes, and evolving payment systems can work together to strengthen the global economy while gradually reshaping the future of international finance.
Seeds of Wisdom Team
Newshounds News™ Exclusive
Sources
~~~~~~~~~~
🌱 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.
Seeds of Wisdom Team
Newshounds News
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Thank you Dinar Recaps
Seeds of Wisdom RV and Economics Updates Sunday Afternoon 8-2-26
Good Afternoon Dinar Recaps,
Iran Pursues Strait of Hormuz Shipping Deal as Red Sea Tensions Keep Global Trade on Edge
New negotiations over the Strait of Hormuz and continued military tensions in the Red Sea highlight how energy security, shipping routes, and alternative payment systems are becoming increasingly important to the future of the global financial system.
Good Afternoon Dinar Recaps,
Iran Pursues Strait of Hormuz Shipping Deal as Red Sea Tensions Keep Global Trade on Edge
New negotiations over the Strait of Hormuz and continued military tensions in the Red Sea highlight how energy security, shipping routes, and alternative payment systems are becoming increasingly important to the future of the global financial system.
Overview
Iran and Oman are negotiating a new framework to manage commercial shipping through the Strait of Hormuz, one of the world's most critical energy corridors.
An earlier draft proposal reportedly included the possibility of crypto- or yuan-based toll payments, signaling continued efforts to reduce reliance on the U.S. dollar in international trade.
Meanwhile, rising U.S.–Iran tensions in the Red Sea continue to threaten maritime security, keeping global energy markets and supply chains on alert.
Key Developments
1. Iran Nears Shipping Management Agreement with Oman
Iran announced it is close to reaching an agreement with Oman on managing commercial shipping through the Strait of Hormuz, the narrow waterway that carries approximately 20% of the world's oil supply. Negotiations remain focused on how shipping lanes would be administered while balancing regional security concerns and maintaining the flow of international commerce.
2. Digital Payments Could Enter Global Maritime Trade
One of the most closely watched aspects of earlier negotiations is a reported proposal allowing crypto assets or yuan-based payment systems to be used for transit tolls. While no final agreement has been announced, such a framework would represent one of the first instances of digital assets being integrated into the operation of a major global trade corridor.
3. Red Sea Becomes the Latest Strategic Flashpoint
At the same time, U.S.–Iran tensions continue to shift toward the Red Sea, where Iran-backed Houthi activity has increased risks to commercial shipping. Continued instability near both the Bab el-Mandeb Strait and the Strait of Hormuz has reinforced concerns over the security of global maritime trade routes.
4. Markets Continue Watching Oil and Shipping Risks
Prediction markets continue to reflect uncertainty regarding when normal shipping traffic may fully resume through the Strait of Hormuz. Investors remain focused on the possibility that renewed military escalation—or successful diplomacy—could quickly influence oil prices, freight costs, and global inflation.
Why It Matters
The Strait of Hormuz is one of the world's most strategically important maritime chokepoints. Any changes to how shipping is managed—or how transit fees are paid—could influence global energy markets, international trade, payment systems, and geopolitical alliances well beyond the Middle East.
The reported discussion of digital asset or yuan-based toll payments also reflects the broader global trend toward exploring alternatives to traditional dollar-denominated settlement for cross-border commerce.
Why It Matters to Foreign Currency Holders
Foreign currency holders continue monitoring developments that could gradually reshape international payment systems. While the U.S. dollar remains the dominant global reserve currency, growing experimentation with alternative settlement mechanisms demonstrates how geopolitical events are increasingly influencing the evolution of global finance.
Implications for the Global Reset
Pillar 2: Trade
The Strait of Hormuz remains one of the world's most important trade corridors. Any changes to shipping management or maritime security could significantly affect global commerce, transportation costs, and supply chain resilience.
Pillar 3: Assets
The reported consideration of digital assets and alternative payment mechanisms highlights the continuing evolution of financial infrastructure and the growing role that tokenized and digital settlement systems may play in future international trade.
This is not simply another Middle East geopolitical story—it illustrates how global trade routes, energy security, and evolving payment systems are becoming increasingly interconnected as the international financial system continues to modernize.
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Iraq Economic News and Points To Ponder Sunday Afternoon 8-2-26
Iraq Faces ‘Cash-Flow’ Strain, Not Bankruptcy
2026-08-02 Shafaq News- Baghdad Iraq’s financial situation reflects difficulties managing cash flows under exceptional uncertainty, rather than a lack of resources or risk of bankruptcy, Prime Minister Ali Al-Zaidi’s financial and economic adviser Mudher Mohammed Saleh told Shafaq News on Saturday.
Saleh stated that the government could continue paying salaries and meeting essential obligations if it managed its fiscal and monetary tools efficiently, but if the war continues into early next year and further affects oil exports, Baghdad may rely on domestic and external borrowing alongside reordered spending priorities.
Iraq’s foreign reserves are a “safeguard” for stable financial flows, he said, arguing that effective crisis management and faster economic reforms could preserve budget financing despite regional disruption.
The country relies heavily on crude exports to finance public spending, earning over $18 billion from the sale of 268.09 million barrels during the first half of 2026, according to the State Organization for Marketing of Oil (SOMO), less than the revenue reported for only four months of the same period last year. Shipping disruptions through the Strait of Hormuz sharply reduced exports from Iraq’s southern terminals, tightening government liquidity while salaries and other recurrent obligations continued to fall due.
Finance Minister Faleh Al-Sari said monthly payments to public employees, pensioners, and social-welfare recipients total about 7.8 trillion dinars ($5.95B). The ministry had disbursed around 3 trillion dinars ($2.29B) and held about 1.5 trillion dinars ($1.15B) in available liquidity, leaving an estimated funding gap of 3.3 trillion dinars ($2.52B).
The shortage has also affected essential services, with Health Minister Abdul Hussein Al-Mousawi saying salaries had become the government’s priority.
Read more: No exit but Hormuz: Iraq's economic vulnerability exposed
https://www.shafaq.com/en/Economy/Iraq-faces-cash-flow-strain-not-bankruptcy
US Extends Streak Of Zero Iraqi Oil Imports
2026-08-02 Shafaq News- Baghdad/ Washington The United States imported no crude oil from Iraq for the fifth consecutive week, according to data released by the US Energy Information Administration (EIA).
Canada remained the largest foreign supplier of crude to the United States during the week, exporting 3.62 million barrels per day (bpd), followed by Venezuela (673,000 bpd), Brazil (269,000 bpd), and Ecuador (230,000 bpd). The EIA data showed no crude imports from either Iraq or Saudi Arabia during the reporting period.
Iraq last exported crude to the United States during the week ending June 19, when shipments averaged 71,000 bpd.
The country lost an estimated 302.8 million barrels of oil production during the first half of 2026 as the US-Iran war disrupted extraction and exports through the Strait of Hormuz. As OPEC’s second-largest producer, Iraq relies on crude sales for about 90% of state revenue, leaving its economy highly vulnerable to disruptions in the Strait, which carries roughly one-fifth of global oil supplies.
Read more: No exit but Hormuz: Iraq's economic vulnerability exposed
https://www.shafaq.com/en/Economy/US-extends-streak-of-zero-Iraqi-oil-imports
USD/IQD Exchange Rates Climb In Baghdad, Erbil
2026-08-02 Shafaq News- Baghdad/ Erbil The US dollar strengthened against the Iraqi dinar in Baghdad and Erbil on Sunday, hovering around 152,000 dinars per $100 across local currency markets.
According to Shafaq News market survey, the dollar traded at 151,800 Iraqi dinars per $100 on Baghdad’s al-Kifah and al-Harithiya central exchanges, up from 150,850 dinars on Saturday.
In Baghdad’s retail market, exchange offices sold dollars at 152,250 dinars per $100 and bought them at 151,250 dinars.
In Erbil, the dollar sold at 152,200 dinars per $100 and was bought at 152,100 dinars.
https://www.shafaq.com/en/Economy/USD-IQD-exchange-rates-climb-in-Baghdad-Erbil-5-3
OPEC Eyes 185K+ Bpd Output Boost Before Year-End Freeze
2026-08-02 Shafaq News- Vienna OPEC will raise its oil production targets by about 188,000 barrels per day (bpd) in September before pausing further output increases for the rest of the year, Reuters reported on Sunday.
Citing sources familiar with the matter, the outlet noted that the alliance is tying the adjustment to its plan to gradually return more supply to the market after years of production cuts designed to support oil prices.
At its meeting on Sunday, OPEC will also assess market conditions and discuss production quotas for 2027.
OPEC output climbed to 19.34 million bpd in June, rising by 3.3 million bpd from the previous month, as Gulf producers restored supplies following disruptions linked to the effective closure of the Strait of Hormuz.
The strategic maritime gateway, which carries about 20% of global oil supplies, has remained largely closed since Feb. 28 after Iran restricted maritime traffic in response to the conflict involving Washington and Tehran.
Read more: No exit but Hormuz: Iraq's economic vulnerability exposed
https://www.shafaq.com/en/Economy/OPEC-eyes-185K-bpd-output-boost-before-year-end-freeze
Gold Prices Inch Higher In Baghdad, Erbil
2026-08-02 Shafaq News- Baghdad/ Erbil Gold prices rose in Baghdad and Erbil on Sunday, with 21-carat gold hovering around 870,000 Iraqi dinars per mithqal (about five grams) in local markets, according to Shafaq News survey.
In Baghdad’s wholesale market on Al-Nahr Street, imported 21-carat gold from the Gulf, Turkiye and Europe sold for 870,000 dinars per mithqal and was bought at 866,000 dinars, up from 866,000 dinars on Saturday.
Iraqi 21-carat gold sold for 842,000 dinars per mithqal and was bought at 836,000 dinars.
In jewellery shops, imported 21-carat gold ranged from 870,000 to 880,000 dinars per mithqal, while Iraqi gold traded between 840,000 and 850,000 dinars per mithqal.
In Erbil, 22-carat gold sold for 905,000 dinars per mithqal, 21-carat gold for 865,000 dinars, and 18-carat gold for 740,000 dinars. https://www.shafaq.com/en/Economy/Gold-prices-inch-higher-in-Baghdad-Erbil-3-1
Weekly Trading Value On Iraq Bourse Plunges 63%
2026-08-02 Shafaq News- Baghdad Trading activity on the Iraq Stock Exchange (ISX) slowed sharply, with the value of transactions falling more than 63% from the previous week to 17.46 billion Iraqi dinars ($13.3M).
According to the exchange's weekly report, trading took place over five sessions involving 69 listed companies. Shares of 26 companies were not trade because buy and sell orders failed to match, while eight companies remained suspended for failing to meet disclosure requirements.
The ISX15 index closed at 1,267.67 points, down 0.17% from the previous week, while the broader ISX60 index slipped 0.30% to 1,041.07 points.
Weekly trading volume dropped 67.90% from the previous week, and the total value of trades declined 63.62%. By contrast, the number of executed transactions rose 3.41%.
Foreign investors bought 65.596 million shares worth 55.461 million Iraqi dinars ($42.3K) in 102 transactions and sold 32.742 million shares valued at 282.051 million Iraqi dinars ($215.3K) through 150 transactions.
The Iraq Stock Exchange holds five trading sessions each week, from Sunday to Thursday, and includes 104 listed Iraqi joint-stock companies representing the banking, telecommunications, industry, agriculture, insurance, financial investment, tourism, hotel, and service sectors. https://www.shafaq.com/en/Economy/Weekly-trading-value-on-Iraq-bourse-plunges-63
Sunday Iraq News Posted by Tishwash at TNT 8-2-2026
TNT:
Tishwash: US forces begin withdrawal from military compound in Erbil
The Monitor website revealed that the US military has begun withdrawing its remaining forces from the military complex near Erbil International Airport in the Kurdistan Region of Iraq.
Al-Monitor, citing informed sources, reported that "the US military has begun withdrawing its remaining forces from the military complex near Erbil International Airport in the Kurdistan Region, after dismantling and redeploying Patriot air defense systems."
TNT:
Tishwash: US forces begin withdrawal from military compound in Erbil
The Monitor website revealed that the US military has begun withdrawing its remaining forces from the military complex near Erbil International Airport in the Kurdistan Region of Iraq.
Al-Monitor, citing informed sources, reported that "the US military has begun withdrawing its remaining forces from the military complex near Erbil International Airport in the Kurdistan Region, after dismantling and redeploying Patriot air defense systems."
According to the sources, "the troop reduction process began last week, and the process is continuing in line with the United States' commitment to complete its withdrawal from Iraq by the agreed deadline with Baghdad on September 30." link
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Tishwash: Al-Zaydi chairs a meeting dedicated to approving the final version of the government program.
Prime Minister Ali al-Zubaidi chaired a meeting on Saturday dedicated to reviewing and approving the final draft of the government program.
The Prime Minister's Media Office stated in a press release received by Al-Ghad Press that "the Prime Minister chaired a meeting on Saturday dedicated to reviewing and approving the final draft of the government program, in the presence of the Secretary-General of the Council of Ministers and a number of relevant advisors."
The statement added that "the meeting included a comprehensive review of the program's axes and priorities, and a discussion of final observations to ensure the integration of visions and objectives, in preparation for its final approval and submission to the Council of Representatives, reflecting the government's commitment to implementing its program, achieving reforms, accelerating the pace of development, and improving the level of services provided to citizens." link
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Tishwash: Al-Fahdawi: All blocs agree on finalizing the cabinet formation.
Member of the United Anbar Alliance, Muhammad al-Fahdawi, confirmed that there is an agreement between the political blocs to expedite the resolution of al-Zidi’s ministerial cabinet during this month, noting that everyone agrees to pass the cabinet and the remaining positions despite the existence of some disagreements between the political blocs.
Al-Fahdawi told Al-Maalouma, “The data on the ground and what resulted from the meeting of the coordination framework have given the green light to hold a parliamentary session at the beginning of August in order to decide on the ministerial cabinet.”
He added that "everyone is still in agreement on what was agreed upon in previous meetings regarding the government cabinet, despite some disagreements, but it is possible to ease the atmosphere and resolve the disagreements to ensure the passage of the remainder of Al-Zaidi's cabinet."
He explained that "Prime Minister Ali al-Zaidi is pressing and emphasizing the importance of finalizing and completing the cabinet in order for his government to succeed by securing votes on the remaining positions so that there can be a fully empowered and legitimate government." link
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Tishwash: An economic expert says: Iraq has entered a phase of financial hardship, and radical reforms have become an urgent necessity.
Economic expert Ziad Al-Hashemi confirmed that Iraq has officially entered a phase of "financial hardship," noting that the government is facing complex financial challenges at a time when citizens and employees are waiting for their financial entitlements to be disbursed.
Al-Hashemi explained that the essence of the crisis is not related to the size of the available dollar reserves, but rather to the way public revenues and government spending are managed, indicating that a large part of the oil revenues is depleted before reaching the state treasury as a result of corruption and various financial obligations, while the priority of meeting the needs of employees and basic services is declining.
He added that the current crisis is not just a result of the drop in oil prices, but rather the result of accumulated problems that have lasted for years due to uncontrolled spending and mismanagement of financial resources.
He called for the adoption of a comprehensive reform package that includes reducing waste in public spending, controlling the payroll, combating cases of fictitious employment, recovering looted funds, dismantling economic offices, as well as developing non-oil revenues and strengthening alternative state resources.
Al-Hashemi stressed that financial reserves, despite their importance, will not be able to protect the Iraqi economy in the long term unless genuine financial and administrative reforms are implemented that address the structural causes of the crisis and establish the sustainability of public resources. link
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Tishwash: The Iraqi market is attracting the attention of the American private sector.
The visit of Prime Minister Ali Faleh al-Zaidi and his accompanying delegation to Washington confirmed that there is a clear shift in the nature of the relationship between the two countries. After the previous security and military cooperation between Baghdad and Washington, the recent visit led to a shift in that relationship from focusing on security and military files to building a long-term economic and investment partnership based on common interests and promoting sustainable development.
Experts who accompanied the Iraqi delegation during the Washington visit confirm that American companies view the Iraqi market as a promising market and are eager to invest in various productive sectors.
Major American companies
Kamil Abdullah Al-Hamdani, a member of the Iraqi delegation participating in the Washington meetings and representative of the private sector, stated that the official visit to the United States achieved important results in terms of strengthening bilateral economic partnerships and opening direct communication channels with major American and international companies, noting that the delegation held a series of intensive meetings in Boston and other American cities.
Others were included in the visit.
Government will Al-Hamdani told Al-Sabah newspaper that the meetings were characterized by clarity and transparency, and witnessed intensive dialogues with representatives of companies and economic institutions. This contributed to presenting a realistic picture of the investment environment in Iraq and the economic reforms being implemented by the government. He emphasized that the delegation sensed a genuine desire among many American companies to enter the Iraqi market and invest in various sectors, a desire reinforced by the government's will, led by the Prime Minister, to provide An attractive environment for investment.
He explained that the agreements and memoranda of understanding signed during the visit were not merely protocol-based, but were formulated on practical foundations that make them implementable and establish long-term partnerships, and that the American Chamber of Commerce expressed a clear conviction in the feasibility of working in Iraq in light of the stability and economic reforms it is witnessing.
Transfer of global expertise
Al-Hamdani stated that the delegation did not limit itself to holding economic meetings, but also reviewed the latest experiences in the fields of technology, industry, innovation and business management, with the aim of transferring global expertise to Iraq and benefiting from it in supporting the private sector and enhancing the economic development process, stressing that the next stage requires translating the outcomes of the visit into projects and investments that contribute to diversifying the economy and creating new job opportunities.
Project financing programs
The head of the Iraqi Economic Council, Ibrahim al-Baghdadi, said: On the economic and financial side, the Prime Minister held a meeting with the Executive Director of the US International Development Finance Corporation (DFC), and also met with the President of the World Bank Group, Ajay Banga, and the President of the International Finance Corporation, Mukhtar Diop, in the presence of the Minister of Finance, the Governor of the Central Bank, and a number of senior Iraqi officials, where they discussed project financing programs, financial and banking reform, developing the investment environment, and strengthening cooperation with international financial institutions.
He added that the most important part of the visit was the meeting with the CEOs of major American companies, as part of the work of the American Chamber of Commerce conference in Washington, including GE Vernova, Google, HKN, Vantive and others, where the Iraqi side presented promising investment opportunities in the energy, electricity, industry and technology sectors, stressing the government’s readiness to provide the appropriate environment for investors.
Encouraging joint investments
In support of the private sector, Al-Baghdadi noted that the Iraqi delegation participated in the ceremony announcing the establishment of the American-Iraqi Chamber of Commerce, headed by businessman Ammar Shaker Al-Khafaji, which represents a new platform to enhance relations between businessmen in the two countries and encourage joint investments. He pointed out that the Prime Minister met with a number of Iraqi businessmen and the Iraqi community in the United States and the importance of this meeting, and listened to their opinions and suggestions regarding enhancing the contribution of Iraqi talents to development projects within Iraq.
Providing financial cover
For his part, the head of the Association of Iraqi Private Banks, Wadih Al-Hanzal, explained that the strategic memorandum of understanding signed in the American capital, Washington, with the Association of Energy Engineers (AEE), on the sidelines of the visit of the Prime Minister, Mr. Ali Al-Zaidi, aims primarily to provide the necessary financial and technical cover to solve the electricity crisis in Iraq through the gateway of sustainable development.
He stated that the core objective of this partnership is to provide the necessary funding to support the construction of advanced power plants that rely entirely on solar energy, as well as to provide financial facilities for converting homes to operate on clean energy systems.
He explained that “directing bank financing towards these projects will contribute directly and effectively to finding radical solutions to the problem of electricity shortages, and relieving the great pressure on the national grid, which will positively impact the lives of citizens and sectors.” All economic sectors.
American companies and investors
For his part, Dr. Abdul Aziz Al-Khudairi, Chairman of the Board of Directors of the Al-Khudairi Group and an expatriate economist in the United States, who participated in the Washington meetings, said: The visit achieved positive results in terms of communication with the American business community, and the presence of the Prime Minister and the Iraqi delegation contributed to attracting the attention of American companies and investors, especially with the broad participation of major companies and economic institutions.
Al-Khudairi said that the visit could be described as successful because it presented a different image of Iraq as a promising market for investment, and that the meetings held with representatives of American companies revealed an increasing interest in entering the Iraqi market, especially in the energy, infrastructure and services sectors.
joint projects
He noted that the Houston station, known globally as the “Energy City,” was one of the most prominent stops on the visit, as it witnessed intensive meetings with companies specializing in oil, gas and energy, which sent positive messages about the availability of real job opportunities and great potential for implementing joint projects within Iraq.
Al-Khudairi explained that the Al-Khudairi Group participated in all the meetings held with American companies, during which a number of memoranda of understanding were signed, which he described as good, stressing that these memoranda represent a first step towards turning them into investment and implementation contracts during the next stage, after completing the technical and legal aspects.
American Chamber of Commerce
Al-Khudairi stated that he participated in the expanded business conference organized by the American Chamber of Commerce in Washington, D.C., in the presence of the Prime Minister and a number of Iraqi ministers and officials, including the Ministers of Oil, Electricity, Finance and Foreign Affairs, along with the Chairman of the Iraqi Trade Bank, the Director of Baghdad Bank, the Director General of Basra Oil Company, as well as representatives of major American companies, financial and investment institutions and industrial and technological sectors.
Economic reform programs
The conference witnessed extensive discussions that addressed ways to enhance the economic partnership between Iraq and the United States, reviewing available investment opportunities, supporting economic, financial and banking reform programs, in addition to developing the business environment in line with the requirements of international investors and enhancing Iraq’s ability to attract capital.
Al-Khudairi emphasized that the next phase requires following up on the outcomes of the meetings and translating the understandings into practical agreements. He stressed that the success of any economic visit is measured by the resulting projects, job opportunities, and technology transfer, which is what the Iraqi government, in cooperation with the national private sector and international partners, is striving for. The visit yielded tangible results, including the signing of a large number of agreements and memoranda of understanding. The most prominent of these were agreements in the oil and electricity sectors, with projects exceeding 30,000 megawatts, most notably the agreement with GE Vernova, in addition to strategic projects for developing the energy sector.
The agreements also included the rehabilitation and operation of the Basra-Haditha-Banias pipeline with a capacity of one million barrels per day, and the Basra-Haditha-Ceyhan pipeline with a capacity of 750,000 barrels per day, which contributes to raising Iraq’s export capacity to more than two million additional barrels per day, as well as diversifying oil export outlets and reducing dependence on a single outlet, which enhances Iraq’s economic security in light of the geopolitical challenges facing the region. link
Iraq Economic News and Points To Ponder Late Saturday Evening 8-1-26
Concerns About Passing The Borrowing Law... Hamdoun: It Will Raise The Debt To $150 Billion
Information/Special.. Former Member of Parliament, Mahasin Hamdoun, warned on Saturday against passing the 2026 External Borrowing and Grants Law to ensure the payment of salaries for employees in Parliament, stressing that passing this law will raise Iraq's external debts to more than one hundred and fifty billion dollars.
Concerns About Passing The Borrowing Law... Hamdoun: It Will Raise The Debt To $150 Billion
Information/Special.. Former Member of Parliament, Mahasin Hamdoun, warned on Saturday against passing the 2026 External Borrowing and Grants Law to ensure the payment of salaries for employees in Parliament, stressing that passing this law will raise Iraq's external debts to more than one hundred and fifty billion dollars.
Hamdoun told Al-Maalouma Agency that “the volume of internal and external debts has reached more than one hundred billion dollars at the present time,” adding that “passing the external borrowing law within the House of Representatives requires more than a month, as it requires study and review by the Finance Committee and the competent authorities before voting on it.”
She added that "continuing with the current borrowing mechanism at this pace will raise the debt to more than $150 billion," noting that "new mechanisms must be explored to support the budget, moving away from borrowing which burdens the state, such as combating corruption, collecting outstanding debts owed by companies, and finding new outlets for oil exports." (End of 25 words)
In Preparation For Sending It To Parliament, Al-Zaydi Chairs A Meeting To Approve The Final Version Of The Government Program
latest news Saturday, August 1, 2026 Baghdad - One News - 8/01/2026 Prime Minister Ali Faleh al-Zaidi chaired a meeting on Saturday dedicated to reviewing and approving the final version of the government program, in the presence of the Secretary-General of the Cabinet and a number of relevant advisors.
The Prime Minister’s Media Office stated in a statement that the meeting witnessed a comprehensive review of the axes of the government program and its priorities, as well as a discussion of the final observations related to its objectives and implementation mechanisms.
The statement added that the meeting focused on ensuring the integration of government visions and the unification of priorities, in line with the government’s commitments to implement reforms, accelerate the pace of development, and improve the level of services provided to citizens.
He indicated that the government program will be submitted to the House of Representatives, after its final approval, to complete the constitutional and legal procedures related to it, in preparation for starting to implement its provisions according to the approved schedules and plans.
The approval of the government program comes as the executive framework that the government will adopt in managing its files during the next stage, and in determining its priorities in the service, economic and reform fields, in addition to establishing clear mechanisms to monitor progress rates and evaluate the performance of government institutions. https://1news-iq.net/تمهيداً-لإرساله-إلى-البرلمان-الزيدي-ي/
Escalating Tensions Between Saudi Arabia And The Factions Threaten Rapprochement Between Baghdad And Riyadh. The Washington Institute Warns That Failure To Contain The Factions' Activities Could Push The United States To Target Their Top Leadership
Baghdad - One News - 8/01/2026 A report issued by the Washington Institute for Near East Policy warned that the recent escalation between Saudi Arabia and Iranian-backed armed factions inside Iraq threatens the rapprochement between Baghdad and Riyadh, and puts the government of Iraqi Prime Minister Ali al-Zubaidi before a very complex security and political test, at a time when it seeks to implement its pledge to restrict weapons to the state before the end of next September.
The report explained that the strikes carried out by the United States and Saudi Arabia against sites in Iraq, which the US Central Command (CENTCOM) described as “logistical sites and weapons depots used by Iranian-backed factions,” came in response to repeated drone attacks launched from Iraqi territory targeting Saudi Arabia, including the attack on the Abqaiq oil facility, the world’s largest oil processing facility.
The report indicated that the exchange of blows led to the postponement of the visit that al-Zaidi was scheduled to make to Saudi Arabia, considering that this development serves the interests of Tehran, which, according to it, seeks to weaken the Iraqi-Gulf rapprochement and isolate Baghdad from its Arab surroundings by using armed factions to put pressure on Saudi Arabia and the Gulf states.
He explained that the Iranian-backed Iraqi factions had previously targeted oil facilities and infrastructure in Saudi Arabia and the UAE in recent years, and had intensified their attacks in recent months against US bases and sites in the Gulf, noting that Riyadh responded, in coordination with Washington, by carrying out strikes inside Iraq, after official warnings confirmed that it would not leave those attacks unanswered.
According to the report, the strikes targeted locations in the Nineveh Plain, Amerli, and Dibis in northern Iraq, as well as Camp Ashraf in Diyala, and sites in Karbala, south of Baghdad, and north of Basra.
While the Popular Mobilization Forces announced the deaths of 20 members and injuries to 32 others, the report suggested that members of the Iranian Revolutionary Guard were among the dead, following the appearance of coffins draped in Iranian flags in Iranian media.
The report linked these developments to a broader regional escalation, which included attacks carried out by the Yemeni group against Saudi facilities, ports and oil tankers, as well as Iranian attacks targeting ships in the Strait of Hormuz and an American base in Jordan, considering that what is known as the “axis of resistance” has transferred part of its pressure to the Saudi arena with the aim of pushing the United States to ease its pressure on Iran.
The report stressed that the administration of US President Donald Trump finds itself facing a complex equation of maintaining its partnership with the new Iraqi government, while at the same time continuing to provide a security umbrella for its Gulf allies, noting that US officials warmly received al-Zaidi during his recent visit to Washington, but his government is now facing the repercussions of the return of US strikes to Iraqi territory.
The report suggested that Iran would likely continue to use Iraqi factions to target Saudi Arabia and the Gulf states in order to undermine the Arab support that the al-Zaidi government needs to complete its project of restricting weapons to the state by September 30, the same date expected for the completion of the withdrawal of US combat forces from Iraq.
The report called on the US administration to work on arranging an Iraqi-Saudi summit in the coming months, in parallel with launching a permanent security dialogue between the intelligence agencies in Baghdad and Riyadh, to prevent further escalation, stressing that the success of the relationship between the two countries is in the interest of regional stability and limits the opportunities for the expansion of Iranian influence.
He also recommended supporting the Iraqi government in carrying out precise operations targeting the storage, assembly, and maintenance sites of armed factions’ drones, based on US intelligence information, and taking advantage of the existing cooperation between Prime Minister Ali al-Zaidi and the head of the Supreme Judicial Council, Faiq Zaidan, with the aim of cutting off the supply chains for these drones.
He added that Baghdad’s failure to contain the activities of the factions may push Washington to target their top leaders, considering that past experiences have shown that targeting leaders is more effective in reducing attacks against American interests than targeting field operatives or weapons depots.
On the economic and security front, the report called for accelerating the provision of anti-drone defense systems to Western companies operating in Iraq, and facilitating their import to protect oil facilities and their workers, as well as giving the Iraqi government priority in obtaining these systems if it demonstrates actual cooperation in reducing the activity of armed factions.
The report concluded that the success of al-Zaidi's government in implementing its security program requires continued Arab and international support, warning that continued attacks could complicate Baghdad's efforts to impose state authority and give Iran a greater opportunity to derail the rapprochement between Iraq and the Gulf states.
Seeds of Wisdom RV and Economics Updates Sunday Morning 8-2-26
Good Afternoon Dinar Recaps,
Federal Reserve Holds Rates Steady, but Americans Still Face High Borrowing Costs as Inflation Fight Continues
While financial markets welcomed signs of stability, the Federal Reserve's decision to keep interest rates unchanged means the effects of higher borrowing costs will continue to ripple through households, businesses, and the global economy.
Good Afternoon Dinar Recaps,
Federal Reserve Holds Rates Steady, but Americans Still Face High Borrowing Costs as Inflation Fight Continues
While financial markets welcomed signs of stability, the Federal Reserve's decision to keep interest rates unchanged means the effects of higher borrowing costs will continue to ripple through households, businesses, and the global economy.
Overview
The Federal Reserve left its benchmark interest rate unchanged, signaling that inflation remains a concern despite recent progress.
Higher interest rates continue to affect mortgages, auto loans, credit cards, and business financing, placing ongoing pressure on consumers and employers.
Markets are increasingly focused on when meaningful rate cuts might begin, as future Fed decisions will influence global capital flows, the U.S. dollar, and economic growth.
Key Developments
1. The Cost of Borrowing Remains Elevated
Although the Fed chose not to raise rates, borrowing costs remain near multi-year highs. Families looking to purchase homes or vehicles, refinance debt, or carry credit card balances are still facing significantly higher monthly payments than they did just a few years ago.
2. Businesses Continue to Feel Financial Pressure
Higher financing costs are making expansion projects, equipment purchases, hiring, and commercial real estate investments more expensive. Many companies remain cautious about new investments until borrowing conditions improve.
3. Inflation Is Easing—but Not Fast Enough
Inflation has moderated from its peak, but it remains above the Federal Reserve's long-term 2% target. Policymakers continue balancing the need to reduce inflation without pushing the economy into recession.
4. Relief for Families May Come Gradually
Consumers hoping for immediate reductions in grocery prices, housing costs, insurance premiums, and everyday expenses may need to remain patient. Even after inflation slows, prices generally stabilize rather than return to previous levels, meaning households typically experience slower price increases rather than widespread price declines.
5. Global Markets Remain Focused on Future Fed Decisions
Because the U.S. dollar remains the world's primary reserve currency, Federal Reserve policy influences global borrowing costs, government debt servicing, international investment flows, commodity prices, and currency values. Every future rate decision will continue to shape financial conditions well beyond the United States.
Why It Matters
Federal Reserve policy affects nearly every sector of the economy. Higher interest rates influence household budgets, corporate investment decisions, government borrowing costs, and global capital markets. Even without additional rate increases, today's elevated borrowing costs continue to slow economic activity while the Fed works toward restoring price stability.
Why It Matters to Foreign Currency Holders
For those following the evolution of the international monetary system, Federal Reserve policy remains one of the most influential drivers of global liquidity. Interest rate decisions affect the strength of the U.S. dollar, international capital flows, sovereign debt markets, and the pace at which alternative payment systems and reserve assets continue to develop.
Implications for the Global Reset
Pillar 1: Debt
Higher interest rates increase borrowing costs for households, businesses, and governments, placing additional pressure on debt sustainability and long-term fiscal stability.
Pillar 3: Assets
Federal Reserve policy directly influences the value of stocks, bonds, real estate, gold, and other investment assets as investors continually adjust portfolios based on expectations for future interest rates.
Looking Ahead
Many economists now expect the Federal Reserve to keep monitoring inflation, employment, consumer spending, and energy prices before making its next move. If inflation continues to cool, borrowing costs could begin easing in the coming months, providing gradual relief for families and businesses. Until then, higher interest rates are likely to remain one of the defining forces shaping both the U.S. economy and the broader global financial system.
This is not simply about interest rates—it reflects the ongoing transformation of the global financial system as central banks balance inflation, debt, and economic growth while markets adapt to a new era of higher capital costs.
Seeds of Wisdom Team
Newshounds News™ Exclusive
Sources
Reuters — Federal Reserve holds interest rates steady as policymakers weigh inflation and growth
Federal Reserve — FOMC Statement and Monetary Policy Decisions
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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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Newshounds News
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The Bust Has Already Begun – Most Investors Just Don’t See It | Mark Thornton & Andy Schectman
The Bust Has Already Begun – Most Investors Just Don’t See It | Mark Thornton & Andy Schectman
Miles Franklin Media: 8-1-2026
Andy Schectman, Founder & CEO of Miles Franklin Precious Metals, interviews Mark Thornton, Senior Fellow at the Mises Institute, to discuss why he believes the global economy is approaching a critical turning point driven by mounting debt, declining trust, and years of monetary distortion.
Thornton explains why the bond market may be sending a warning investors shouldn't ignore, how decades of easy money have distorted markets, and why private credit could become the next major financial risk.
The Bust Has Already Begun – Most Investors Just Don’t See It | Mark Thornton & Andy Schectman
Miles Franklin Media: 8-1-2026
Andy Schectman, Founder & CEO of Miles Franklin Precious Metals, interviews Mark Thornton, Senior Fellow at the Mises Institute, to discuss why he believes the global economy is approaching a critical turning point driven by mounting debt, declining trust, and years of monetary distortion.
Thornton explains why the bond market may be sending a warning investors shouldn't ignore, how decades of easy money have distorted markets, and why private credit could become the next major financial risk.
He also shares why central banks continue accumulating gold while reducing their reliance on government debt.
The discussion also explores the growing role of gold and silver in wealth preservation, the risks facing the global financial system, and why Austrian economics offers a different perspective on today's macroeconomic challenges.
In this episode of Little by Little:
Warning signs from the bond market
The risks building in private credit
How easy money fueled today's debt bubble
Why central banks keep buying gold
Gold and silver for wealth preservation
Austrian economics and today's markets
00:00 Coming Up
01:21 Introduction
03:01 Boom or Bust Now
03:40 War Oil and China
06:43 Hidden Inflation Pain
08:58 Balance Sheets Near Break
11:05 Bond Market Distrust
16:59 Real Inflation Debate
18:41 Private Credit Black Swan
25:29 Central Banks Buy Gold
32:49 AI Bubble and Surveillance
39:23 Advice for Young People
44:35 Mises Resources and Metals
46:09 Closing Thanks and Outro
Bond Market Rejects The Fed: Why The Rules Just Changed For Gold
Bond Market Rejects The Fed: Why The Rules Just Changed For Gold
Kitco News: 7-31-2026
The bond market just delivered a sharp rejection to the Federal Reserve’s latest rate decision, pushing 30-year Treasury yields to 19-year highs as inflation fears persist.
Meanwhile, three top macro strategists—Gareth Soloway, Willem Middelkoop, and Mike McGlone—issue three completely conflicting calls on where gold, bonds, and energy go from here.
Bond Market Rejects The Fed: Why The Rules Just Changed For Gold
Kitco News: 7-31-2026
The bond market just delivered a sharp rejection to the Federal Reserve’s latest rate decision, pushing 30-year Treasury yields to 19-year highs as inflation fears persist.
Meanwhile, three top macro strategists—Gareth Soloway, Willem Middelkoop, and Mike McGlone—issue three completely conflicting calls on where gold, bonds, and energy go from here.
In this episode of "This Week in Focus," Senior Anchor Jeremy Szafron breaks down the breakdown in traditional market correlations.
From the World Gold Council's latest Q2 demand report showing central bank buying surging 62% year-over-year to Big Tech's massive earnings divergence and breaking developments in currency markets, we analyze what this means for your portfolio.
00:00 - Cold Open: The Old Market Rules Stopped Working
01:10 - Fed Rate Hold & The 30-Year Treasury Yield Surge
03:30 - Gareth Soloway on Bond Market Signals
06:15 - Willem Middelkoop: The Quiet Monetary Reset & China's Gold
09:45 - Gareth Soloway: The $13,000 Gold Model Target
13:20 - Mike McGlone: Is Gold's Cycle High Already In?
16:50 - WGC Q2 Report: Central Banks Buy 289 Tonnes vs. ETF Outflows
20:15 - Credit Market Stress, KOSPI & Big Tech Earnings Split
23:40 - Soloway's S&P 500 Technical Level Tested 26:15 - Physical Gold & Silver Positioning Strategy
28:10 - Market Scoreboard & What to Watch Next Week
Iraq Economic News and Points To Ponder Saturday Afternoon 8-1-26
CBI Reserves Slide $7B+ In H1 2026
2026-08-01 Shafaq News- Baghdad Iraq’s foreign reserves fell by $7.4 billion during the first five months of 2026, while the country’s gold holdings increased by 5.7% from their level at the end of last year, according to data from the Central Bank of Iraq (CBI).
Foreign reserves stood at $93.673 billion at the end of May 2026, down from $101.082 billion in January, marking a decline of $7.409 billion, or 7.3%, over the five-month period.
CBI Reserves Slide $7B+ In H1 2026
2026-08-01 Shafaq News- Baghdad Iraq’s foreign reserves fell by $7.4 billion during the first five months of 2026, while the country’s gold holdings increased by 5.7% from their level at the end of last year, according to data from the Central Bank of Iraq (CBI).
Foreign reserves stood at $93.673 billion at the end of May 2026, down from $101.082 billion in January, marking a decline of $7.409 billion, or 7.3%, over the five-month period.
In Iraqi dinar terms, foreign reserves totaled 121.775 trillion dinars ($93.673B) at the end of May, compared with 131.407 trillion dinars ($101.082B) in January. The difference amounted to 9.632 trillion dinars ($7.409B).
Meanwhile, Iraq’s gold holdings increased in value compared with the end of 2025, reaching 33.295 trillion dinars ($25.612B) at the end of May, up from 31.488 trillion dinars ($24.221B) at the close of last year.
The rise amounted to 1.807 trillion dinars ($1.391B), or 5.7%, although the value of Iraq’s gold reserves remained below the record level reached in March 2026, when they climbed to 38.386 trillion dinars ($29.532B).
The CBI’s total assets also declined to 88.114 trillion dinars ($67.780B) at the end of May, compared with 94.380 trillion dinars ($72.600B) in January. The decrease totaled 6.266 trillion dinars ($4.820B), or 6.6%. https://www.shafaq.com/en/Economy/CBI-reserves-slide-7B-in-H1-2026
Oil Minister to Turkiye to expand Iraq's export routes
2026-08-01 Shafaq News- Baghdad Iraq's Oil Minister Basim Mohammed Khudair al-Abbadi travelled to Turkiye on Saturday at the head of a senior delegation to finalise talks and sign an agreement on the transport and loading of Iraqi crude oil through the Iraq-Turkiye pipeline to the port of Ceyhan, according to an official statement.
Al-Abbadi said the visit aims to expand Iraqi crude export outlets and maximise financial revenues from exports to support the state budget, coinciding with disruptions at the Strait of Hormuz that have strained global energy supply chains.
The visit falls within broader ministerial efforts to strengthen cooperation with Turkiye on the export agreement, increase export capacity, and reduce dependence on traditional transit routes by securing alternative options, the statement added.
The two sides are also set to discuss joint project development and expanded cooperation in oil, gas, and infrastructure, to advance shared interests and enhance economic stability for both countries.
The trip follows the expiry of the previous pipeline agreement on July 27, and comes as both governments work to ensure continued crude flow and deepen energy sector ties.
Al-Abbadi had discussed the agreement with Turkish Energy and Natural Resources Minister Alparslan Bayraktar in Baghdad on July 9. Prime Minister Ali al-Zaidi visited Turkiye last week at the head of a senior government delegation and met with President Recep Tayyip Erdogan, with talks covering security, economic, and investment cooperation, as well as oil, energy, and trade.
A senior official at the state-owned North Oil Company disclosed to Shafaq News on June 24 that the Iraq-Turkiye pipeline running from Kirkuk to Ceyhan had been fully prepared, with a test pumping phase set to begin within two weeks ahead of a stable resumption of exports.
https://www.shafaq.com/en/Economy/Oil-Minister-to-Turkiye-to-expand-Iraq-s-export-routes
Iraq, Turkiye To Begin Ceyhan Oil Exports Under New Deal
2026-08-01 Shafaq News- Baghdad Iraqi and Turkish companies will begin operations under a new agreement to transport crude oil exports through the Iraq-Turkiye pipeline to the Port of Ceyhan, Prime Minister Ali Al-Zaidi announced on Saturday.
Al-Zaidi called the deal a “strategic milestone” for restoring Iraqi crude flows through the pipeline and expanding economic cooperation with Turkiye. Baghdad and Ankara, he added, are finalizing a broader framework covering oil, electricity, water resources, and other areas of mutual interest.
Earlier today, Oil Minister Bassem Mohammed Khudair Al-Abadi signed the one-year agreement with the Turkish side to transport Iraqi crude through the pipeline at a minimum rate of 750,000 barrels per day pending the completion of the wider framework.
https://www.shafaq.com/en/Economy/Iraq-Turkiye-to-begin-Ceyhan-oil-exports-under-new-deal
Basrah Crude Posts Sharp Weekly Losses
2026-08-01 Shafaq News- Basrah BasraH Heavy and Medium crude posted steep weekly losses even as global oil prices rose at the close of the week, following a stretch of volatility across markets in recent days.
BasraH Heavy fell $1.89 a barrel, or 3.25%, in the final trading session to settle at $56.21, marking a weekly loss of $9.61, or 14.60%, from its level at the start of the week.
BasraH Medium also slipped $1.89 a barrel, or 3.13%, to close at $58.51, posting a weekly loss of $9.61, or 14.11%, compared with the start of the week.
Global oil futures, by contrast, ended the week higher. Brent rose $0.98, or 1.10%, to $90.01 a barrel, while West Texas Intermediate climbed $1.22, or 1.46%, to $84.81 a barrel.
https://www.shafaq.com/en/Economy/BasraH-crude-posts-sharp-weekly-losses
Baghdad And Ankara Pursue 750K Bpd Deal
2026-08-01 Shafaq News- Ankara Iraq and Turkiye on Saturday discussed a one-year agreement setting a minimum Iraqi crude export volume of 750,000 barrels per day through the Iraq-Turkiye pipeline to Ceyhan.
The Ankara talks were led by Iraqi Oil Minister Basim Al-Abbadi and Turkish Energy and Natural Resources Minister Alparslan Bayraktar. Iraq’s Oil Ministry stated that the temporary deal would remain in force while both sides develop a broader framework covering oil, electricity, and water resources
The previous bilateral pipeline framework expired on July 27. The route, Iraq’s only active crude export outlet outside its southern terminals, reopened in September 2025 after a two-and-a-half-year shutdown linked to an international arbitration dispute over Kurdistan Region crude exports.
Read more: Iraq–Turkiye pipeline restart reshapes energy balance
https://www.shafaq.com/en/Economy/Baghdad-and-Ankara-pursue-750K-bpd-deal
Dollar Edges Higher In Baghdad And Erbil
2026-08-01 Shafaq News- Baghdad/ Erbil The US dollar closed Saturday’s trading higher in Iraq, hovering around 150,000 dinars per 100 dollars.
According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 152,000 dinars per 100 dollars, up from the morning session’s 150,850 dinars.
In the Iraqi capital, exchange shops sold the dollar at 152,500 dinars and bought it at 151,500 dinars, while in Erbil, selling prices stood at 152,100 dinars and buying prices at 152,000 dinars.
https://www.shafaq.com/en/Economy/Dollar-edges-higher-in-Baghdad-and-Erbil-8-7
Seeds of Wisdom RV and Economics Updates Saturday Afternoon 8-1-26
Good Afternoon Dinar Recaps,
Global Digital Money Framework Accelerates as Stablecoin Rules and Financial Oversight Advance
Governments and international financial institutions are accelerating efforts to modernize the global monetary system through digital asset regulation, stablecoin oversight, and next-generation payment infrastructure. While individual countries are moving at different speeds, the overall direction points toward a more regulated, technology-driven financial system with significant implications for global commerce and cross-border payments.
Good Afternoon Dinar Recaps,
Global Digital Money Framework Accelerates as Stablecoin Rules and Financial Oversight Advance
Governments and international financial institutions are accelerating efforts to modernize the global monetary system through digital asset regulation, stablecoin oversight, and next-generation payment infrastructure. While individual countries are moving at different speeds, the overall direction points toward a more regulated, technology-driven financial system with significant implications for global commerce and cross-border payments.
Overview
Digital asset regulation continues advancing as governments seek clearer rules for stablecoins, tokenized assets, and cryptocurrency markets.
International financial institutions are emphasizing the need to preserve confidence in money while embracing financial innovation.
The modernization of payment systems is increasingly viewed as a key component of the future international monetary system.
Key Developments
1. Stablecoin Regulation Continues to Gain Momentum
Momentum continues behind legislation and regulatory initiatives designed to establish clearer rules for stablecoins and digital assets. Policymakers increasingly view regulatory certainty as essential for encouraging innovation while protecting investors and maintaining financial stability.
Several jurisdictions are moving toward comprehensive frameworks that define issuer responsibilities, reserve requirements, and market oversight.
2. BIS Calls for Trust to Remain the Foundation of Digital Money
The Bank for International Settlements (BIS) recently emphasized that innovation alone is not enough. According to the BIS, future payment systems must continue to preserve trust in money, financial integrity, and interoperability as digital finance expands.
The BIS acknowledged the efficiency benefits of tokenization and programmable payments but warned that current stablecoin structures still present risks if widely adopted without appropriate safeguards.
3. IMF Highlights Stablecoins' Growing Global Influence
Recent International Monetary Fund (IMF) research shows that stablecoins are becoming increasingly important in cross-border payments and international capital flows.
The IMF notes that while stablecoins can improve payment efficiency, they may also affect exchange rates, monetary policy transmission, and financial stability—particularly in emerging economies where dollar-denominated digital assets are growing rapidly.
4. Financial Infrastructure Continues Modernizing
Banks, payment providers, and financial regulators are steadily moving toward tokenized financial infrastructure, programmable settlement systems, and faster cross-border payment networks.
Although implementation will likely occur over several years, these initiatives reflect a broader transition toward a more digital and interconnected global financial architecture.
Why It Matters
The global financial system is evolving beyond traditional banking infrastructure. Digital assets, tokenized payments, and regulated stablecoins are becoming increasingly integrated into mainstream finance, with governments working to balance innovation against financial stability.
For businesses and consumers, these developments could eventually improve payment speed, reduce settlement costs, and expand access to digital financial services while operating within clearer regulatory frameworks.
Why It Matters to Foreign Currency Holders
Those monitoring international monetary developments continue to watch digital payment infrastructure because changes in cross-border settlement, reserve management, and regulated digital assets may influence the long-term evolution of the global financial system. While these initiatives do not signal an immediate currency revaluation, they represent structural changes that could reshape international finance over time.
Implications for the Global Reset
Pillar 2: Trade
Modernized digital payment systems and regulated stablecoins have the potential to improve cross-border settlement, increase efficiency, and reduce friction in international commerce.
Pillar 4: Technology
Tokenization, programmable money, and digital payment infrastructure continue to reshape financial markets as governments and central banks prepare for the next generation of monetary systems.
Closing Thought
This is not simply about cryptocurrency—it reflects the continuing modernization of global finance as regulators, central banks, and financial institutions work to build a more digital, interoperable, and resilient international monetary system.
Sources
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Seeds of Wisdom Team RV Currency Facts Youtube and Rumble
Newshound's News Telegram Room Link
RV Facts with Proof Links Link
RV Updates Proof links - Facts Link
Start Here room with Most Asked Questions Link
Follow the Gold/Silver Rate COMEX
Follow Fast Facts
Seeds of Wisdom Team™Website
Thank you Dinar Recaps