KTFA Members "News and Views" Thursday 1-18-2024
KTFA:
Frank26: "ATTENTION IRAQI CITIZENS... MORE OF YOUR MONETARY REFORM EDUCATION!!!"......F26
Clare: An economic expert calls for using a basket of currencies to evaluate the Iraqi dinar
1/17/2024
Economic affairs expert, Raad Tawij, called today, Wednesday, for the use of a basket of currencies, whether the euro, the Chinese yuan, or the UAE dirham, in valuing the Iraqi dinar in a way that competes with its valuation in the dollar.
Tawij said in a statement to the National Iraqi News Agency ( NINA ): “As a result of the high competitiveness of the Iraqi economy in the field of monetary and commodity use in its trade exchange with other countries, and as a result of its use of the dollar at a rate of 95% within the framework of the Iraqi electronic platform and for the most diverse monetary exchange and to prevent the monopoly of a country’s currency.”
One on the platform, so a basket of currencies, whether the euro, the Chinese yuan, or the UAE dirham, must be used to value the Iraqi dinar in a way that competes with its value in the dollar.”
He stressed, "Allowing users of this basket of currencies to use the electronic platform will contribute to creating monetary balance and addressing any deficit in other currencies." LINK
Frank26: "THE WHOLE INTERNATIONAL WORLD IS AWARE OF SUDANI'S MONETARY REFORMS & THEY ALL WANT A PART OF IT!!!".........F26
International Finance Corporation: We want to expand our business in Iraq as an investment region
1/17/2024 Baghdad
The International Finance Corporation announced, on Wednesday, its desire to expand its work in Iraq as an attractive region for investment.
The Prime Minister’s media office said in a statement, seen by Al-Iqtisad News, that “Al-Sudani met in Davos with a delegation from the International Finance Corporation/IFC, headed by Executive Vice President Mokhtar Diop.”
The statement added, "The meeting witnessed a review of the prospects for cooperation between Iraq and the international institution, a member of the World Bank Group, in light of the Iraqi government moving forward with economic reforms and implementing major strategic and investment projects."
Al-Sudani confirmed, according to the statement, “the government’s readiness to develop the scope of cooperation and partnership with the international institution, especially after the signing of a contract between the Civil Aviation Authority and the international institution to prepare an investment portfolio regarding the Baghdad International Airport development project to be on the same level as international airports, and compatible with international standards in a comprehensive manner.”
For its part, the International Finance Corporation delegation expressed its desire to expand its work in Iraq as an attractive region for investment, as well as to participate in the Strategic Development Road project and the major projects attached to it. LINK
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KTFA Wednesday Night CC: https://youtu.be/B4diqPc1bAg
JJimmyJJ: I’ve been thinking about these commodity futures that Frank mentioned at the end of the call last night.
Disclaimer: In my business career, I usually sold services, not manufactured goods, so I’ve never dealt with commodity futures. In addition, we don’t know what commodities were traded, the expiration dates of the contracts, if the differing amounts were for different length contracts, or even if these contracts are for imports or exports.
Or, in other words, there are too many unknown variables for this to be anything other than a thought exercise for fun. But, while we’re waiting for the announcement, we certainly have time. So, let’s have fun with this. All IMO…
A commodities futures contract is a contract between too large entities to purchase the commodity at a set price at a future date. And usually for a set amount. Frank mentioned, as an aside, exporting something from Iraq. So, let’s assume these contracts were exporting a commodity out of Iraq. As their major export is oil, let’s assume these are futures contracts for oil. Frank also said these contracts are in dinar, which means that, if our assumptions are true, Iraq is going against the petro-dollar and getting paid directly in dinar. Also, if these are oil futures, we can confidently assume that the Ministry of Oil worked very closely with the PM’s office and the CBI on these contracts, so they aren’t guessing. This has to be based on information.
Frank also mentioned that there were at least two different contracts: 1 at an exchange rate of $1.68 per dinar, and another at $3.04 per dinar.
Let’s assume that some entity isn’t getting a deal at almost half the rate of another entity, so the most likely cause of this discrepancy would be differing expiration dates on the contract. Perhaps the $1.68 contract expires earlier, and the $3.04 contract expires later. That would likely mean a float changing the rate.
I sure would like to see the dates on those contracts. If all these assumptions are right (and they probably aren’t), this could show both the timetable the CBI is expecting for the float, AND that the CBI is at least looking at a rate over $3.00 per dinar.
Boys and girls, this is more a WAG than a prediction, but the expectations for this RV to finally get announced have just ramped up even more. It’s getting pretty hot in this waiting room of ours!
Holy smokes and Hallelujah!
Clare: Al-Sudani: We are facing a new Iraq economically
1/18/2024
Prime Minister Muhammad Shiaa Al-Sudani expressed, on Thursday, his optimism about the general economic situation in Iraq during the next twenty years.
This came in statements he made during the dialogue session within the work of the Davos Economic Forum held in Switzerland.
He was asked about his vision of the Iraqi economic future during the next twenty years, and he replied: Yes, Iraq will be completely different for the better.
He added that Iraq is moving at a steady pace, and I believe it benefits from the support of the people of all its components and sects, and this is the source of its strength until now,” stressing, “We build our plans and programs in the spirit of partnership, understanding and consensus among the people and through its constitutional institutions we create a new economic vision, and we are facing a new Iraq economically.” Through various activities and projects, we invest in the natural materials we have, and we invest in the heritage and civilization that we carry, enabling us to move with confidence towards a better future in a strong, united, independent, and stable Iraq.”
On a parallel level, Al-Sudani met with the Director General of the International Monetary Fund, Ms. Kristalina Georgieva, on the sidelines of his participation in the Davos Economic Forum held in Switzerland.
The Sudanese media office stated in a statement that, during the meeting, financial cooperation relations between Iraq and the International Monetary Fund were discussed, within the framework of supporting the development path in Iraq.
Al-Sudani referred to the government’s plans in the field of economic and financial reform, as a gateway and basis for all the reforms that the government plans in all vital sectors.
In turn, Georgieva welcomed Iraq's accession to a non-financing program to support economic reforms, as meetings with the Fund will begin next month to implement this program.
She also praised the steps taken by the government in the field of the financial and banking system, and improving the business and investment environment, expressing its understanding of Iraq's uniqueness and the challenges it faces. LINK