KTFA Thurs.Night CC: “FRANK26….5-30-24…..M R BREAKDOWN”

KTFA

Thursday Night Conference Call

FRANK26….5-30-24…..M R BREAKDOWN

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

https://www.youtube.com/watch?v=4VdXtxIH-T4

Some “Iraq News” Posted by Clare at KTFA 5-30-2024

KTFA:

Clare:  Professor Frank Gunter launches a new white paper on de dollarisation of Iraqi economy.

29th May 2024

‘Two Cheers for Iraq: The Dinar – Dollar Exchange Rate Challenges’

Professor Frank Gunter publishes a new paper commissioned as part of a series by IBBC’s advisory council on the challenges of de-dollarisation for Iraq. 

The Advisory Council members and IBBC members have actively contributed to the paper in the past 4 months. It will be presented online on the 18th June in a webinar and in person at the Spring Conference on 2nd July. The Arabic translation will be published soon.

Professor Gunter provides an analysis of the drivers of impact on the dinar exchange rate and examines how best to deal with the parallel market of dinars to dollars. He outlines the practical policy initiatives that should reduce the gap between the official and parallel exchange rates in the medium-term.

In particular he lauds the Government of Iraq on its commitment to tackle corruption and to modernise the banking system in one fell swoop but warns of the pressure on the dinar exchange rate as budgets are overstretched and the new banking recipients (state banks) receive the liquidity to enable the economy to perform.

He writes ‘All three of these forces – the anti-corruption effort, the banking liberalization, and the lavish 2023-2025 budget – will create challenges for the management of the dinar exchange rate. One could argue that over the last two decades the Government of Iraq (GoI) had little control over its exchange rate; that exchange rate policy was determined by other sectors of the political economy in Iraq. But even if this is true, the level of the exchange rate and changes in that level are believed by many Iraqis and foreigners as providing valuable insight into the quality of economic management in Iraq.

This importance is exemplified by the current efforts to de-dollarize the Iraqi economy while there is excess demand for dollars. This excess demand is shown by a parallel exchange rate of roughly 1500 dinars per dollar compared to the official exchange rate of 1310 dinars per dollar.

An important cause of this exchange rate gap is that the GoI, with the strong encouragement of the U.S. Federal Reserve, is attempting to reduce the use of the U.S. dollar in both Iraq’s internal economy and its external transactions.

Since 2003, the U.S. dollar has facilitated economic growth in Iraq by providing a widely accepted medium of exchange for purchases as well as a reliable store of value for savings. In the long run, whether de-dollarization will have a significant adverse impact on the Iraq economy will depend on how rapidly the GoI can increase both the efficiency of alternative mediums of exchange and the perceived security of alternative stores of value.’

The report is available here to download.

https://iraqbritainbusiness.or.....qi-economy

Together we build Iraq

The Iraq Britain Business Council brings together business, trade and investment from the UK and International companies, for the benefit of the Republic of Iraq and its members.

Committed to a free, prosperous and diverse Iraq, IBBC creates strong relationships with Iraq, from Government to private companies, to benefit business, industry and the people of Iraq.

IBBC 

 ************

Clare:  Al-Sudani announces the opening of 48 electrical power transmission stations throughout Iraq

5/30/2024

Today, Thursday, Prime Minister Muhammad Shiaa Al-Sudani announced the opening and operation of 200 electrical stations throughout Iraq’s regions and cities.

Al-Sudani’s media office stated in a statement that the latter opened and operated “48 electrical power transmission stations for ultra-high and high pressure, and 152 electricity distribution stations throughout all governorates of Iraq, within the first phase of a package of projects to resolve bottlenecks in electricity transmission and distribution networks in Baghdad and a number of governorates.”  LINK

Clare:  Hisham Al-Rikabi confirms the government's interest in restoring Iraq's status on the Arab and international levels

5/30/2024

Member of the Board of Commissioners of the Media and Communications Commission, Hisham Al-Rikabi, confirmed today, Thursday, the government’s interest in restoring Iraq’s status on the Arab and international levels.

Al-Rikabi said in a blog post on the “X” platform: “The decision to choose Iraq to head the Council of Arab Information Ministers and to host Baghdad for its fifty-fifth session came as a result of the government’s interest in restoring Iraq’s position on the Arab and international levels and the keenness of the Media and Communications Commission to develop this sector and continue consolidating the foundations of freedom of opinion and expression.” In the country."  LINK

***********

Clare:  Sudani: Receiving international events reflects the state of stability in Iraq

5/30/2024

Today, Thursday, Prime Minister Muhammad Shiaa Al-Sudani expressed his appreciation for the distinguished results of Iraq in the West Asian Athletics Championships held in Basra, stressing that the reception of international events reflects the state of stability in the country.

Al-Sudani said in a tweet on his website on the “X” platform: “Greetings to the athletics champions as they reap distinguished results in the West Asian Championship for women and men, which is hosted by Basra Governorate with the participation of several Arab and Asian countries.”

He added, "Hosting Arab and international sports events, in Baghdad, Basra, and our beloved governorates, reflects the state of stability that our country is witnessing in various fields, and enhances government support for the plans and programs that we have directed to advance the sports sector in general."   LINK

************

Clare:  Iraq executes 8 terrorists

5/30/2024

A security source led by the Dhi Qar Governorate Police said today, Thursday, that the Ministry of Justice carried out the death sentence against 8 terrorists in Nasiriyah Central Prison, known as “Al-Hout” Prison.

The source stated, "Today, a team from the Ministry of Justice supervised the execution of the death sentence against 8 ISIS terrorists in Nasiriyah Central Prison (Al-Hout)," pointing out that "among those carrying out the death sentence was a terrorist nicknamed (Al-Sumaidaie)."

The source stated, "The implementation of the death sentence against the terrorists came after their rulings became final and were approved by the President of the Republic." LINK

************

Clare:  Customs explains the importance of implementing the single window system

5/30/2024   Baghdad - IA - Hassan Al-Fawaz

The General Authority of Customs confirmed today, Thursday, that work is underway to implement the single window system, while indicating that the system simplifies procedures for the importer and exporter, and contributes to facilitating the movement of legitimate trade.

The head of the authority, Hassan Al-Ugaili, told the Iraqi News Agency (INA): “The authority works with two systems, the developed electronic declaration system that is applied in 6 centers, and the Asycoda system, which will replace the electronic declaration system.”

Al-Ugaili explained, “The Authority has begun implementing the ASYCUDA system, which is an international system, more reliable and more robust, and therefore it will replace the electronic declarations system in all those centers, but it will be implemented successively.”

He added, "The authority is working on a single window system, which is linking all state institutions concerned with customs work in one window, so the work will be completed faster and more accurately."

He stated that "the system will simplify procedures for the importer and exporter, and will contribute to facilitating the movement of legitimate trade," adding, "This is one of the stages of the ASYCUDA system, which is access to the single window for trade."  LINK

KTFA Tues. Night CC: “FRANK26…5-28-24…….FX”

KTFA

Tuesday Night Conference Call 

FRANK26…5-28-24…….FX

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

https://www.youtube.com/watch?v=pwkZkjYhLB4

KTFA Sun. Night CC: “FRANK26….5-26-24….DID YOU MISS ME?!”

KTFA

Sunday Night Conference Call

FRANK26….5-26-24….DID YOU MISS ME?!

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

https://www.youtube.com/watch?v=3pX3tE09dCo

Some “Iraq News” Posted by Clare at KTFA

KTFA:

Clare:  The government sees clear indicators: the parallel dollar will be equal to the official one

5/26/2024   Baghdad

Today, Saturday (May 25, 2024), Mazhar Muhammad Saleh, the economic advisor to the Prime Minister, confirmed that the dollar exchange rate in the parallel market is close to matching the official price, in conjunction with the increased capacity of banks to meet requirements.

Saleh said in a press statement followed by “Baghdad Today” that “the price of the dollar will be 1320 dinars in the coming days,” noting that “the important factors that work to reduce the value of the US dollar against the Iraqi dinar in the parallel exchange market will remain centered on two important variables, the first of which is the rise Abilities of operating banks to comply with external transfer rules.

He explained that "the indicators are witnessing a cumulative rise, according to which the percentage of requested and executed requests in foreign currency for the benefit of financing foreign trade for the private sector through official transfer ports has increased, which has increased to more than 85%."

For more than two months, the exchange rates of the dollar against the Iraqi dinar have stabilized around 145 thousand dinars per 100 dollars, after it was between 155 and 160 thousand dinars per 100 dollars, while the decline in the exchange rate coincided with an increase in the amount of the Central Bank’s sales of dollars.    LINK

***************

Clare: Al-Haims announces joint cooperation to list government bonds on the Iraq Stock Exchange

5/26/2024

Baghdad - IA - Wissam Al-Mulla

Today, Sunday, Chairman of the Securities Commission, Faisal Al-Haims, announced joint cooperation with the Central Bank and the Ministry of Finance to list government bonds on the Iraq Stock Exchange.

Al-Haimas told the Iraqi News Agency (INA): “The authority is independent and affiliated with the Council of Ministers. Its work is to monitor the trading of bank shares to complete their requirements and list them in the Iraq Stock Exchange, by submitting financial statements according to the required timelines.”

He pointed out, "There has been great cooperation during the recent period with the Central Bank and the Ministry of Finance to list  government bonds in the Iraq Stock Exchange."   LINK

 ****************

Clare:  Iraq and Iran are discussing ways to strengthen relations in the oil and energy sector

5/26/2024

The Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayyan Abdul Ghani, met on Sunday with the Ambassador of the Islamic Republic of Iran to Iraq, Muhammad Kazem Al-Sadiq.

The Ministry of Oil stated in a statement, “During the meeting, they discussed bilateral relations between the two countries in the oil and energy sector, and ways to enhance them in service of common interests.”   LINK

****************

Clare:  The Prime Minister confirms the government’s aspiration towards consolidating joint cooperation with Oman

5/26/2024  Baghdad
 
Prime Minister Muhammad Shiaa Al-Sudani confirmed today, Sunday, the government’s aspiration towards consolidating joint cooperation with Oman.

A statement issued by the Prime Minister’s Media Office, received by the Iraqi News Agency (INA), stated that “Prime Minister Muhammad Shia’ al-Sudani received today the Ambassador of the Sultanate of Oman to Iraq, Hamid bin Ahmed Aidaroos, on the occasion of the end of his work duties.”

According to the statement, Al-Sudani appreciated “the efforts made by the Omani ambassador during his tenure in Iraq,” expressing his “wishes for success in his future duties.”

He stressed "the importance of bilateral relations between the two countries, and the government's aspiration towards consolidating and developing joint cooperation at various levels," noting "the importance of coordinating efforts to confront the challenges in the region as a result of the continued aggression against Gaza and the expansion of the conflict, which has been reflected in the security and stability of the region."

For his part, Aidaroos expressed his "appreciation for the extent of the cooperation he received during his work in Iraq," stressing "his country's government's keenness to strengthen bilateral relations and raise the level of cooperation in several fields, in order to achieve the interests of the two countries and the prosperity of their people." LINK

Clare: Nechirvan Barzani: The environment is suitable for Qatari investment in Iraq and the region

5//26/2024

The President of the Kurdistan Region, Nechirvan Barzani, received today, Sunday, the Secretary-General of the Qatari Ministry of Foreign Affairs, Ahmed bin Hassan Al-Hammadi.

The Presidency of the Region said, in a statement received by Shafaq News Agency, that the meeting was attended by the Ambassador of Qatar to Iraq and the Consul General of the State of Qatar in Erbil, indicating that the two sides stressed the development of Qatar’s relations with Iraq and the Kurdistan Region, and they also talked about Qatari investment opportunities in Iraq and the Region.

The Qatari delegation affirmed its confidence in Iraq and the Kurdistan Region, and its desire to develop relations in the economic and commercial fields that Qatar is opening in Erbil. 

The delegation also expressed its willingness to invest in the fields of energy, tourism, agriculture, education, health and many other fields.

Barzani congratulated the Qatari delegation on the opening of the Consulate General in the Kurdistan Region, and stressed that the environment is suitable for Qatari investment in Iraq and the Kurdistan Region, especially in infrastructure projects.

 He also expressed his gratitude for the support of the State of Qatar and its assistance to Iraq and the Kurdistan Region, noting that Iraq and the Kurdistan Region have many partnerships with Qatar.

During the meeting, the situation in the region and a number of issues of common interest were also discussed.   LINK

KTFA Thurs. Night CC: “FRANK26…5-23-24….SOUP’S ON”

KTFA

Thursday Night Conference Call

FRANK26…5-23-24….SOUP’S ON

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

https://www.youtube.com/watch?v=4K5i9hez2_4

KTFA Wed. Night CC: “FRANK26….5-22-24……..IT’S GUARANTEED”

KTFA

Wednesday Night Conference Call

FRANK26….5-22-24……..IT’S GUARANTEED

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

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

KTFA Tues. Night CC: “FRANK26….5-21-24……..BOOK…KEEPING”

KTFA

Tuesday Night Conference Call

FRANK26….5-21-24……..BOOK…KEEPING

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

https://www.youtube.com/watch?v=165WRQQ6ojc

KTFA Sunday CC: “!FRANK26…..5-19-24….PRAY FOR IRAN”

KTFA

Sunday Conference Call

!FRANK26…..5-19-24….PRAY FOR IRAN

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

https://www.youtube.com/watch?v=UHWI7Qv7JSU

Clare:  Watch...the first shots of rescue teams heading to the site of the Iranian president's helicopter crash

5/19/2024

Iranian TV: Bad weather conditions in the west of the country hinder relief teams from reaching the Iranian president's helicopter

Iranian TV: The helicopter carrying the country's president has not yet been found and there is no detailed information about the accident

Iranian Emergency Authority: Sending Red Crescent rescue teams and marches to the site of the accident

Iranian Emergency Authority: We have not yet received any reports of the Iranian President’s helicopter crashing

Iranian Interior Minister: Rescue teams have not yet arrived at the scene of the accident, due to bad weather and fog. The president’s plane made a difficult landing.

Iranian Minister of Interior: We do not yet have information about the condition of the Iranian President due to weather conditions and the difficulty of reaching him.

The government IRNA agency: The Iranian president’s plane crashed in the “Dezmar Forest” in the general area between Farazgan and Julfa in East Azerbaijan province.

-It is not possible to communicate with the helicopter crew due to bad weather conditions.

Iranian Red Crescent: We sent a helicopter and rescue teams from 4 provinces, namely West Azerbaijan, East Azerbaijan, Zanjan, and Adrebil, to the difficult landing site of the helicopter that was carrying the president and his accompanying delegation.

IRNA: About an hour after the news of the accident involving the Iranian president’s helicopter was announced, rescue teams arrived at the announced location and began search operations.

IRNA: 20 rescue teams and drones were sent to the area, but due to the inability to cross the area and its mountainous and forested conditions, as well as unfavorable weather conditions, especially dense fog, the search and rescue operation will take time.

Fars Agency calls on Iranians to pray for President Raisi following reports of the crash of the helicopter in which he was traveling.  LINK

************

Clare:  Iraq offers assistance to Iran to search for the missing president

5/19/2024   Baghdad – 

Today, Sunday, Prime Minister Muhammad Shiaa Al-Sudani directed the Ministry of Interior, the Iraqi Red Crescent, and other competent authorities to present the capabilities available on the Iranian side to assist in the search for the Iranian president’s missing plane.

A statement from the media office, a copy of which was received by 964 Network , stated :

Prime Minister Muhammad Shiaa Al-Sudani directs the Ministry of Interior, the Iraqi Red Crescent, and other competent authorities to present the capabilities available to the Islamic Republic of Iran to assist in the search for the Iranian president’s plane that went missing in northern Iran.

Rescue teams are still searching for the Iranian president’s helicopter, which disappeared from radars. The authorities in Iran do not provide much information about what happened, but Iranian Interior Minister Ahmed Vahidi used the phrase “hard landing” to describe what happened to the president’s helicopter.

The Iranian Red Crescent said that the last appearance of the president’s helicopter, according to monitoring devices, was near a copper mine located in the “Dizmar” forest area between the villages of “Uzi and Pir Daoud” in East Azerbaijan province, while an Iranian official told Reuters, “We still have hope of finding the president, but “The information from the accident site is very disturbing.”

Rescue teams say that they were forced to stop aerial search operations, due to the intensity of fog in the area, and that they will continue operations by land, in rugged areas and within forests.

At the shrine of Imam Ali Ibn Musa al-Rida, in the city of Mashhad, northeast of the country, worshipers raised their hands to pray for the safety of their president, as well as at the shrine of Lady Masoumeh in the city of Qom in the center of the country.  LINK

Floating the dinar... Will it achieve monetary stability in Iraq?

KTFA:

Clare: Floating the dinar... Will it achieve monetary stability in Iraq?

Moaz Fraihat - Washington May 17, 2024
 
The stability of the Iraqi dinar in recent years has always faced major challenges, as it witnesses price fluctuations, not to mention a gap between what the central bank determines and what is sold in the parallel market.

In order to avoid the “volatility” syndrome and the “gap” in the price of the Iraqi dinar against foreign currencies, some experts believe that the solution lies in a kind of “surgical” operation for the country’s monetary system that may be painful, but it achieves long-term monetary stability for the national currency through... "float".

The cash selling price, according to the Central Bank, is 1,305 dinars per dollar, while the price for transfers abroad is 1,310 dinars per dollar, and the price in the parallel market is about 1,450 dinars per dollar in mid-May, according to local media , while it reached levels of 1,600 dinars per dollar in previous periods.

For months, the Iraqi authorities have imposed restrictions in their efforts to control exchange rates, restricting all commercial transactions within the country to the Iraqi dinar, and established a new mechanism that subjects external transfers to greater scrutiny.

Iraqi economic analysts who spoke to Al-Hurra website, some of them warned against taking a decision that would lead to floating the dinar, while some of them believe that a moderate policy could be taken that suits the Iraqi economy, based on “floating” and “stabilization” at the same time.

Is the flotation policy compatible with the Iraqi economy?

Advisor to the Prime Minister for Financial Affairs, Mazhar Salih, believes that floating the currency price does not suit the Iraqi economy, especially since it is a "rentier economy, dominated by foreign currency reserves."

He explains in statements to the “Al-Hurra” website that “the economic vision that wants to float the Iraqi dinar to end the gap between the official price and the parallel price may be possible in an economy in which the free market alone influences the movement of the balance of payments, and not in an economy in which the rentier government sector is dominant and generates reserves.” Foreign currency".

He added, "The monetary authority in Iraq alone is the main source of supply of foreign currency that meets the desired demand for foreign exchange in the local market."

Saleh believes that the demands for flotation inevitably mean “adopting the prevailing exchange rate in the parallel market, in order to achieve the goal of stability and balance in the official exchange rate itself at a new exchange point that the market will reach at the end of the assumed flotation policy and return to stability again.”

The flotation scenario also means “the withdrawal of the monetary authority as the main central offerer of foreign currency, and its replacement by new forces of free market makers, which certainly have only a weak, limited supply of foreign exchange,” according to Saleh.

He points out that these forces carry “an uncontrolled package of inflationary expectations, and are called in the economic literature (the forces generating inflationary expectations), which will give dominance to the supply forces of speculators” who own limited amounts of foreign exchange, matched by “an open demand for foreign currency from The market side" exceeds what is offered by "at least more than ten times in our estimate."

Chancellor Saleh described this policy as “unruly,” as as long as “the central government supply of foreign currency will be absent from the market, we will not obtain any equilibrium point in the exchange rate that flotation seeks except with a widespread deterioration of the exchange rate as long as it is carried out by forces generating inflationary expectations in a severe rentier economy.” "unilateralism."

He warns that if the exchange rate moves in “a market that is incomplete, in terms of productivity, in its compensation for the required supply of goods and services,” no one “will know how much the new exchange rate resulting from the flotation will be,” which will be accompanied by “a prior wave of inflationary expectations,” the trends of which are difficult to control. , which may push monetary policy makers to “intervene with excessive foreign reserves and unjustified extravagance in foreign exchange to impose a state of stability.”

According to the World Bank, Iraq has 145 billion barrels of proven oil reserves, which are among the largest crude oil reserves in the world.

But Iraq hopes that the country's oil reserves will exceed 160 billion barrels, according to what the Minister of Oil, Hayyan Abdul Ghani, recently announced.

What if the Iraqi dinar was floated?

The claims that have appeared every now and then for years calling for floating the exchange rate of the Iraqi dinar are “strange,” and most of them are made by people who are “not specialized in economics or monetary policy,” according to what Professor of International Economic Relations, Abdul Rahman al-Mashhadani, confirms to the Al-Hurra website.

He asserts in a decisive tone, "Iraq cannot proceed with floating the dinar's exchange rate. The evidence for this is all the agreements concluded with the International Monetary Fund since 2004, and the reviews praised the stabilization of the exchange rate by the Central Bank of Iraq."

Al-Mashhadani added that there was a study by experts at the World Bank during the past years that recommended “raising the exchange rate,” noting that even then, “these recommendations cannot be taken into account because the World Bank is concerned with what is related to economic development, but following up on the recommendations for monetary policies is taken into account if It was from the International Monetary Fund.

In its latest review on Thursday, the International Monetary Fund praised the efforts of the Central Bank of Iraq to tighten monetary policy and strengthen its liquidity management framework.

He explains that “the real gap is in the wheel of production in the Iraqi economy, as the majority of goods are imported from abroad, which means that the flotation will cause a spiral in price rates to become significantly high and affect the marginalized classes,” indicating that such a decision cannot be taken “as a matter of politics.” “Cash” only, as we must “consider the burdens it will impose on citizens.”

Al-Mashhadani confirms that what has been applied in other Arab countries does not “mean that it can be applied to the Iraqi economy,” suggesting that “the exchange rate will become at the levels of 5,000 dinars to the dollar,” as “the Central Bank has lost control over exchange rates, leaving them to float.”

There is a fear that “floating” will cause “social” problems, as “salaries will erode significantly,” which may threaten “new classes to slide into poverty,” while “a class of merchants, politicians, and businessmen will benefit, who will benefit from the state of instability that will result from... This matter".

Al-Mashhadani agrees that floating in the end means “that the parallel market will control exchange rates,” but it will not achieve “the desired monetary stability,” as the central bank will then need to “print more local currency to keep up with demand in the markets,” and the government will need to increase salaries and allocations for aid packages. Social.

"Float with controls" for full "editing".

The economic expert, Manar Al-Obaidi, recommends following a “currency float” policy, but with controls such that a “managed float policy is used to gradually liberalize the currency until complete liberalization of the exchange rate is reached.”

He said in a post on his Facebook account, "Such a policy could be a successful alternative in Iraq by following a managed float policy where the central bank controls the range of volatility and works to gradually increase it until the currency is completely liberalized."

Al-Obaidi gave the example of “the managed flotation policy followed by Morocco in 2018,” noting that it was accompanied by the abolition of customs tariffs on basic materials and “supporting funds for vulnerable classes,” stressing that this experience can be used to influence “inflation.”

"Reasons for the exchange rate “gap”.

The Iraqi government advisor, Saleh, attributes the reason and existence of a “gap” in the dinar’s exchange rates against the dollar between the official and parallel markets to “external factors imposed by the compliance platform and auditing administrative restrictions on external transfer movements, which is not related to the deficit in the authority’s monetary reserves,” noting that the reserve Iraq's foreign currency is considered the highest in the country's history, as it touches the levels of import coverage for 16 months, compared to the global standard, which does not exceed three months of import coverage.

Financial transfers in dollars through official channels have increased significantly in Iraq, while Iraq continues its reforms of the financial sector in line with international standards, according to a previous report by Agence France-Presse.

In late 2022, the Iraqi banking sector adopted the SWIFT electronic transfer system with the aim of providing better control over the use of the dollar, ensuring compliance with US sanctions on Tehran, and also in order to limit the prosperity of the informal economy. 

The financial standards that were adopted encouraged the emergence of a parallel market for currencies, attracting those seeking to obtain dollars outside official channels.

Saleh pointed out that there is a distortion in support for the prices of some commodities “on the part of financial policy, which is support in which the rich and poor mostly enjoy it equally without discrimination, and it represents an added, imperceptible real income, and it is the product of a financial policy inherited from the consumer welfare state for the rentier resource.”

He continued, "It is inconceivable until this moment that 90 percent of Iraq's population is receiving support for food supplies provided by the state as an extension of the economic blockade phase of the 1990s in light of the changing standards of living and lifestyle, the increasing number of affluent people, and the growth of the middle class."

In mid-May, the Iraqi authorities announced the purchase of 1.5 million tons of wheat since the beginning of the year.

According to the Ministry of Agriculture, Iraq, with a population exceeding 43 million people, needs between 4.5 million and five million tons of wheat annually.

The International Monetary Fund said Thursday that Iraq's internal imbalances have been exacerbated by significant fiscal expansion and low oil prices.

The Fund added that Iraq needs to gradually correct public financial conditions in Iraq to achieve debt stability in the medium term and rebuild financial reserves.

To ensure compliance with US standards regarding money laundering and sanctions on Iran, about 20 Iraqi banks were prevented from making dollar transfers.

Last September, the Iraqi government decided that merchants who deal with Iran are forced to turn to the parallel market to obtain currency, given that Tehran is subject to sanctions and “is not allowed to conduct financial transfers,” according to Agence France-Presse.

"A positive step for the "economy" but!!

The Iraqi economic academic, Nabil Al-Marsoumi, believes that the solution to addressing the discrepancy in the currency exchange rate through “free floating of the Iraqi dinar” may have “some economic positives.”

He added in an interview with Al-Hurra website that "the economy should not be taken in its abstract aspect, but rather in terms of its relationship to people, especially the poor among them."

Al-Marsoumi warns that "the Iraqi dinar may witness a violent collapse and rampant inflation that will cause prices in the Iraqi market to rise to record levels that will harm citizens, especially the low-income classes."

He explains that Iraq lacks "a national private sector that could contribute to increasing the supply of dollars in the local market, and because of the large volume of imports, which reach 67 billion dollars annually, the government is the only party that owns the dollar."

He notes that "if the government decides not to intervene in the exchange market, we are expected to witness consequences that will cause severe damage to citizens' living standards, making the poor even more miserable, and may lead to social tensions and a major rift in the social peace."

For his part, the economic expert Al-Obaidi defined the primary goal of liberalizing the currency as “creating an economy capable of withstanding various economic shocks, and reducing reliance on reserves that are greatly depleted in order to maintain a fixed exchange rate, which could stop once the reserves run out.” .

He added that this also "contributes to supporting the domestic product and changing the consumption pattern, and thus reducing the import bill for Iraq, which rises annually as an indirect reason as a result of the attempt to maintain a fixed exchange rate."

Not to mention, “continuing to try to maintain a fixed exchange rate depletes reserves,” which will lead at a certain stage, “accompanied by a decrease in reserves, followed by either a complete liberalization of the currency or a significant reduction in the price rate, which will have major repercussions on the citizen, and will cause great confusion in "A market that already suffers from a lack of economic stability."

"What is the alternative to floating the currency?

The Iraqi economic expert, Mahmoud Dagher, confirms to Al-Hurra website that what may be the solution for Iraq is a system “between floating and stabilization,” to help stabilize currency exchange rates.

The expert, Dagher, a former official at the Central Bank of Iraq, explains that “the origin of the exchange system is floating, which is what free countries adopt.”

He explains that "the continuity of the gap requires reaching a middle system that solves the problem between free floating and stabilization. This is a system that many developing countries follow, and it helps solve the problems of currency fluctuation."

Financial expert Saleh proposes alternatives to floating, in a way that serves the objectives of monetary policy and limits inflationary risks, through the use of financial tools such as “taxes and customs duties that act as an intermediary to influence the exchange rate to achieve balance and price stability.”

He added, "Instead of resorting to lowering the exchange rate to harmonize the market through flotation, it would be through amending customs tariff schedules and imposing careful, thoughtful controls to protect the national economy."

Saleh called for correcting the defect in the structure of the Iraqi economy as a whole, as it is not possible to continue with “high operating spending in annual public budgets, which has always generated cash income from rentier sources that are matched only by very limited productivity of commodity and service flows, which has made the country It relies mainly on large-scale imported consumer goods.”

Counselor Saleh revealed, on Thursday, that the loans provided by the International Monetary Fund to Iraq since 2003 totaled no more than $8 billion, confirming that they had been paid in full, according to a report published by the “ INA ” agency.

Last March, the International Monetary Fund stressed “the Iraqi economy’s need for broad structural measures to enhance private sector development and economic diversification, and to raise growth rates in the non-oil sector in a sustainable manner to accommodate the rapidly increasing workforce, and to increase non-oil exports and government revenues, in addition to Reducing the economy's exposure to oil price shocks.

He called for "accelerating the pace of reforms in the financial sector to improve access to financing, by modernizing the banking sector and supporting the ability of banks to establish banking relationships with other banks, and taking steps aimed at merging small-sized private banks," not to mention the need "to restructure the two largest government banks." ".

The Governor of the Central Bank, Ali Al-Alaq, announced in statements in early May that “the banking sector is witnessing major qualitative developments, while calling for cooperation and coordination between Arab central banks, banks and non-banking financial institutions to achieve stability and economic growth,” according to the “ Inaa ” agency.

He continued, "Central banks face new challenges in the interaction between financial and monetary stability, in light of the dominance of general financial policy and the necessity of central banks to facilitate excessive government debts, according to financial control, which requires reducing spending or increasing domestic revenues, or both."

Iraq has begun to recover relatively after years of wars, occupation, and sectarian violence that followed the US-led invasion in 2003, according to an Agence France-Presse report.   LINK

KTFA Thurs. Night CC: “FRANK26….5-16-24……STORM FRONT”

KTFA

Thursday Night Conference Call

FRANK26….5-16-24……STORM FRONT

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

https://www.youtube.com/watch?v=Z0pzEEkMIgE