Iraq Economic News and Points To Ponder Monday Evening 7-22-24

 Is The Central Bank Leading Iraq Towards An Economic Crisis?
 
July 22, 2024 Last updated: July 22, 2024

A Financial Report Reveals And Reality Confirms... Is The Central Bank Leading Iraq Towards An Economic Crisis?
 
Al-Independent/- Informed sources said that the financial policy of the Central Bank of Iraq faces sharp criticism from financial experts and economic observers, amid a continuous rise in operational costs and a noticeable increase in expenditures.
 
According to the financial situation tables as of 6/30/2024 published on the Central Bank’s website, the financial statements show that there is a clear imbalance.
 

The financial report revealed a slight increase in total assets, which reflects an apparent stability in the bank’s financial performance.
 
However, the financial statements showed some points that call for criticism and questioning the effectiveness of the financial management of the Central Bank of Iraq.
 
The report indicated that gold reserves rose to 14,672,164,921 thousand Iraqi dinars from 14,475,189,559 thousand Iraqi dinars.
 
Although this strengthens the bank's position, the question remains about the adequacy of these reserves in the face of potential economic crises.
 
As for the bank’s balances with banks outside Iraq, they increased to 2,011,145,122 thousand Iraqi dinars from 1,827,075,442 thousand Iraqi dinars, which reflects a diversification of assets, but the question remains about the risks associated with relying on foreign banks.
 
Foreign currencies witnessed a noticeable increase to 24,688,182,816 thousand Iraqi dinars from 23,838,913,348 thousand Iraqi dinars, which enhances foreign exchange reserves, but how these reserves are managed effectively must be monitored.
 
In terms of expenses, currency issuance expenses increased to 10,588,686 thousand Iraqi dinars from 9,897,229 thousand Iraqi dinars, raising questions about the effectiveness of managing issuance costs.
 
Foreign currency valuation differences also increased significantly to 188,168,707 thousand Iraqi dinars from 151,874,481 thousand Iraqi dinars, which indicates fluctuations in the value of foreign currencies that may negatively affect financial stability.
 
Also, general administrative expenses increased to 52,643,698 thousand Iraqi dinars from 39,692,228 thousand Iraqi dinars, which reflects an increase in operational costs that need to be carefully reviewed to ensure that resources are not wasted.
 
In terms of profits and losses, interest and commission income increased to 2,968,280,621 thousand Iraqi dinars from 2,495,021,601 thousand Iraqi dinars, which reflects a good performance,
 
but the question remains about the sustainability of these revenues in light of the economic challenges.

Total interest expenses increased to 2,684,950,171 thousand Iraqi dinars from 2,271,995,595 thousand Iraqi dinars, which indicates an increase in interest costs that need better management.
 
As for the final budget, the exported currency rose to 102,311,666,715 thousand Iraqi dinars from 100,791,930,154 thousand Iraqi dinars, which may indicate inflationary pressures if not properly monitored.
 
Bank deposits increased to 54,434,578,910 thousand Iraqi dinars from 47,851,676,798 thousand Iraqi dinars, which reflects an increase in deposits,
 
but the stability of these deposits in the long term must be verified.
 
strength point:
 
The report showed an increase in total assets, reflecting the central bank's apparent financial stability.
 
Gold reserves and external bank balances also increased, which significantly strengthens the bank's monetary position. In addition,
 
interest and commission income witnessed a significant increase, reflecting a good performance in the bank's financial returns.
 
Weaknesses and doubts:
 
Despite the apparent stability, outstanding outstanding debts amounting to 530,499,124 thousand Iraqi dinars did not change, indicating challenges in debt collection.
 
Administrative expenses also increased to 52,643,698 thousand Iraqi dinars, which may indicate poor management of operational costs.
 
In addition, Central Bank transfers decreased to 0 from 5,110,240,000 thousand Iraqi dinars, raising questions about the efficiency of liquidity management.
 
Finally, the balances of government institutions decreased to 10,750,719,726 thousand Iraqi dinars from 13,353,688,408 thousand Iraqi dinars, indicating challenges in government financing.

Recommendations:
 
To improve the financial position of the central bank, it is important to develop effective plans to collect outstanding debts to reduce financial risks.
 
Operational costs must also be reviewed and controlled to avoid any unjustified increase in expenses.
 
It is necessary to establish policies to monitor currency issuance to ensure that unwanted inflation does not occur.
 
Finally, the reasons behind the decline in the balances of government institutions must be studied and the necessary measures taken to strengthen government financing.
 
Based on this analysis, it is clear that the central bank needs improvements in several aspects to ensure actual financial stability and effectiveness in resource management.
 
To view the financial situation table, click here: Central Bank of Iraq       
                 https://mustaqila.com/wp-content/uploads/2024/07/البنك-المركزي-العراق.pdf
 
https://mustaqila.com/تقرير-مالي-يكشف-والواقع-يؤكد-هل-يقود-ا/   

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

The World Trade Organization opens its doors to it.. The Iraqi economy returns strongly to international competition

KTFA:

Clare: The World Trade Organization opens its doors to it.. The Iraqi economy returns strongly to international competition

7/22/2024

The World Trade Organization has accelerated Iraq's steps to join it, following the resumption of negotiations that had been suspended for more than 16 years. The Iraqi delegation is preparing for the next round of negotiations that are expected to resolve this issue, which will open up global trade horizons for Iraq and return it to strong economic competition, in the region and the world, under a multilateral economic system.

According to official officials, the government of Mohammed Shia al-Sudani has only addressed all the previous obstacles that prevented Iraq from joining the international organization, as for the first time the import program was voted on, which includes setting controls for chaos and identifying real traders, in addition to other details related to customs tariffs as well as the necessary legislation for it.

Economic reform and exchange rate adjustment

 Economic expert Naji Al-Obaidi, in an interview with Al-Ahd News, believes that Iraq’s accession to the World Trade Organization will have positive effects, attributing this to the fact that “it will increase pressure on the government to initiate the long-awaited economic reforms.”

Al-Obaidi added that "the World Trade Organization usually intervenes in the exchange rate policy when the concerned country deliberately keeps the value of its local currency low in order to improve the competitiveness of local production and encourage exports at the expense of foreign goods," indicating that "this does not apply to Iraq, where previous governments resorted to raising the exchange rate of the dinar in an artificial and arbitrary manner with the aim of gaining political and popular support."

He pointed out that joining the international organization would contribute to controlling this file.

Customs restrictions and agricultural support

In this regard, the financial advisor to the Prime Minister, Mazhar Mohammed Salih, stated in an interview with “Al-Ahd News” that Iraq has adopted broad open policies towards the world since 2003 and has sought to establish important economic and legislative rules that operate according to the mechanisms of the market system

Most of which have helped improve Iraq’s foreign trade, after an economic blockade that lasted for more than a decade and led to Iraq’s marginalization on the map of the global economic system and deprived it of investment opportunities, progress, development and technological knowledge that should have helped it confront the rapid developments and changes that international markets have witnessed and whose competitive capabilities have changed
dramatically over the past two decades at least.

Saleh pointed out that "the World Organization imposes on the new members of the developing countries group to work under conditions, the first of which is to reduce customs restrictions by 24% and cancel non-customs restrictions for a period of 6 years from the date of joining, and the second is to reduce agricultural support by 13.3% over a period of ten years from joining."

 Saleh explained that "these regulatory conditions of the World Trade Organization clash with the conditions and situations of the agricultural market and the global food stock exchange itself. If we look at the agricultural monopolies in the world in light of the deterioration of agricultural development in Iraq, we find a real threat to national food security that restricts the country in the event of joining the organization unless it is preceded by starting or following an agricultural program for self-sufficiency immediately.

We will really need a green revolution similar to what Mexico and many Latin American countries have done, especially if we know that there are between 3 and 6 major monopolistic companies in the world that control 80 to 90% of agricultural crop trade and control prices and quantities such as wheat, sugar, tea, coffee, cotton and jute, at a time when ten multinational companies still dominate a third of the production and trade of seeds and pesticides in the world."

Breaking international isolation

Saleh pointed out that "despite the above, Iraq's entry and integration into the global economic space through the World Trade Organization and its dealings with international groups on terms that apply to everyone from a formal standpoint at a time when the world is still divided between the countries of the North and the South or the countries of the advanced industrial center and the developing periphery, Iraq has no choice but to leave its international isolation that it inherited since the siege and placing Iraq under the burden of Chapter Seven, the effects of which still provide a negative economic environment hostile to development and perhaps obstructing natural integration into the global market."

Accelerate joining steps

For his part, Minister of Trade Athir Dawood Al-Ghariri confirmed the resumption of negotiations for Iraq’s accession to the World Trade Organization and the acceleration of its steps, which is a qualitative event and a confirmation of what the government promised through its program to reform the economic situation, considering the private sector an essential part and the backbone of the Iraqi economy.

Al-Ghariri said in a statement followed by "Al-Ahd News" that the fourth round of negotiations will be held during the first quarter of next year, stressing that this acceleration means that the negotiations are proceeding very quickly towards Iraq's accession to the World Trade Organization, considering Iraq an important economic bloc and all countries keen for Iraq to return as an economic player in a multilateral system.

For his part, the Saudi Ambassador to the World Trade Organization, Saqr Abdullah Al-Muqbil, said that there is a positive view that we will find Iraq joining the multilateral trading system as it is one of the largest economies outside this organization, and Al-Muqbil confirmed that "the Kingdom of Saudi Arabia has a priority that Iraq's desires to join the organization be fulfilled.  LINK

Seeds of Wisdom RV and Economics Updates Monday Afternoon 7-22-24

Good Afternoon Dinar Recaps,

Seven-State Coalition Opposes SEC’s Cryptocurrency Regulation

The Office of the Attorney General of Iowa announced earlier this month that Iowa Attorney General Brenna Bird led a seven-state coalition in filing an amicus brief opposing the U.S. Securities and Exchange Commission’s (SEC) attempt to regulate cryptocurrencies. The amicus brief, supported by Arkansas, Indiana, Kansas, Montana, Nebraska, and Oklahoma, was filed on July 10 to challenge the SEC’s overreach.

“SEC’s power grab may stop states from protecting their citizens from scams, and it hurts the free market,” the announcement details, adding:

SEC’s policing of cryptocurrency will stifle innovation and devastate the cryptocurrency industry.

States like Iowa, which have been at the forefront of protecting scam victims and prosecuting scammers, view the SEC’s actions as a significant overreach.

“The Biden SEC is trying to prevent states like Iowa from doing their job to hold robbers to the law and protect families from the dangers of cryptocurrency scams. This power grab will also hurt the free market and allow the SEC to take the regulatory reins over the cryptocurrency industry with no accountability,” the announcement continues.

Noting that the SEC’s “bypassing Congress to give itself new power is illegal, stifles innovation, and will let scammers off the hook,” the Iowa Attorney General’s Office noted, emphasizing:

The Biden SEC is attempting to abuse its power and put itself in charge of regulating cryptocurrency, bypassing state consumer-protection laws.

“Congress never gave the SEC power to regulate cryptocurrency, and there is no accountability to ensure the actions the SEC takes are legitimate and necessary,” the Iowa Attorney General’s Office stressed.

The amicus brief explains that the SEC is violating the Administrative Procedure Act and the Major Questions Doctrine by bypassing Congress. The states argue that typical cryptocurrencies are not investment contracts under the Securities Act of 1934, urging the court to prevent the SEC from exceeding its authority.

@ Newshounds News™

Read more:  Bitcoin 

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Japan’s Fast And Early Approach To Crypto Regulation Is Paying Off

Japan was a rare exception when it came to regulating crypto. Following the catastrophic collapse of Mt.Gox in 2014 – a Japan-based company – the government moved fast and early to clamp down on what was seen as an excessively risky industry. It introduced strict rules for operators, putting them under the oversight of the country’s financial regulator.

That decision means that ten years on, Web3 in Japan is evolving quite differently compared to the startup culture that’s characterized the sector in other countries. Instead, we’re seeing a more prevalent trend of large corporations levering their way into Web3 via strategic M&A and investment activities.

To date, banking giant Softbank has been one of the
most active players, acquiring a controlling stake in crypto trading platform BITPoint in 2022 and becoming a key investor in a dedicated Web3 venture fund initially set up by Deutsche Bank.

However, the latest news, that Sony is gearing up to launch a rebranded crypto exchange called. S.BLOX, as a result of a 2023 acquisition of local platform Whalefin, has created a froth in the crypto community.

I recently spoke to Mai Fujimoto, co-founder of INTMAX, who was fresh from the Japan Blockchain Week Summit which she hosted in early July. She confirmed that, based on the lineup of this year’s event, the corporate move into Web3 is becoming a trend:

“This [Sony] is just one such example. We just hosted many speakers from large corporations [at Japan Blockchain Week], which stood out on the Web3 conference circuit. I believe this is unique to Japan. In the United States, Coinbase and Base

Chain have significantly contributed to the penetration of Web3 in the country, so we can expect similar synergies to occur in Japan as well.”

@ Newshounds News™

Read more:  Forbes

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IOTA’s Product Passport Could Be Used by Tesla, Audi, Porsche, BMW, and VW After Eviden Partnership

—IOTA’s Product Passport with Eviden enhances transparency for Tesla, Audi, Porsche, BMW, and VW, letting consumers track vehicle history and build trust.

—IOTA’s Digital Product Passports optimize production, maintenance, and recycling, improving supply chains for major automotive brands.

When it comes to cutting-edge data solutions while securing privacy to the highest level, IOTA is at the forefront as highlighted in one of our previous coverages. 

According to the latest update from IOTA on the newly established partnership, the IOTA Foundation and Eviden, a subsidiary of Atos, are collaborating on the Eviden Digital Passport Solution (EDPS), which is “Powered by IOTA.”

EDPS is one of the first ready-to-use, DLT-based Digital Product Passports (DPPs) on the market and the first at this scale to utilize IOTA technology.  

This upgrade provides detailed lifecycle information about products, enhancing transparency, traceability, and sustainability. Dominik Schiener, Co-Founder and Chair of the IOTA Foundation, stated:

This partnership leverages our unique joint benefits and creates a strong combination of capabilities, ready for the market to use. This is a long-term collaboration between Eviden and the IOTA Foundation, and we will work closely together to explore further use cases in domains such as construction materials, textiles, and consumer electronics, amongst others. We expect millions of passports to be registered on the IOTA network by the end of the decade.

IOTA and Eviden Enhancing Transparency and Traceability for Major Automakers

Eviden, with leading positions in computing, security, AI, and digital platforms, provides expertise across various industries in more than 47 countries. Importantly, the collaboration with the IOTA Foundation is expected to significantly impact major automakers, including Tesla, Audi, Porsche, BMW, and Volkswagen.

This partnership will enhance transparency and traceability throughout their supply chains, allowing consumers to track the origin and history of their vehicles, building trust in these brands. At the same time, manufacturers can optimize production processes, streamline maintenance, and improve recycling efforts.

At the time of writing, IOTA is trading at $0.1769, with a decrease of 0.43% and a surge of 7.48% in the past week.

@ Newshounds News™

Read more:  Crypto News Flash

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WHAT IS A CURRENCY RE-DENOMINATION?

"Redenomination is the recalibration of a country's currency, typically due to hyperinflation and currency devaluation, whereby an old currency is exchanged for a new one at a fixed rate. "

"While significant inflation is the main reason for a country to redenominate its currency, other reasons include decimalization or joining a currency union. When redenomination occurs, old banknotes and coins are typically taken out of circulation and a new currency is issued. Sometimes, the old currency continues to circulate at a fixed value against the new notes. "

"When redenomination occurs, a new value is established for the new banknotes and coins. For example, in 2006, Zimbabwe redenominated its currency at a rate of 1,000 old Zimbabwe dollars to one new Zimbabwe dollar."

"When hyperinflation is involved, redenomination becomes necessary because it requires too many old notes to facilitate commerce. Small bills essentially become useless if you need a wheel barrel of them to buy a loaf of bread. "

" Probably the most famous redenomination has been the Zimbabwean dollar, which circulated in Z$100 trillion bills—the largest denomination of currency ever issued—thanks to an annual inflation rate of more than 231 million percent.

The Zimbabwe government redenominated its currency several times starting in 2006. In that year, the country's first currency reform was launched in an effort to contain inflation. The Zimbabwean dollar was redenominated at a rate of 1,000 to one."

" In August 2008, the government launched another redenomination. Old notes could be exchanged for new ones at a rate of 10 billion to one. Inflation continued unabated, and new issues of currency with staggering face amounts continued to appear. In January 2009, Z$10 trillion, Z$20 trillion, Z$50 trillion, and Z$100 trillion notes were issued.

In February 2009, the government redenominated a third time. Old currency could be exchanged for new currency at a rate of one trillion to one. By then, most people had quit the Zimbabwe dollar in favor of the U.S. dollar and South African rand."

@ Newshounds News™

Read more:  Investopedia

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CFTC Chairman Behnam Urges Congress For Increased Crypto Regulation: We Are 'On The Front Lines' |  Youtube

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Iraq Economic News and Points To Ponder Monday Afternoon 7-22-24

Al-Sudani's Advisor: Auditing Foreign Transfers Enhances Dollar Stability And Strengthens Monetary Policy

Economy |07/22/2024  Mawazine News – Baghdad  The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed today, Monday, that the approval of an auditing company for foreign transfers is an important step to enhance the stability of the dollar and achieve the objectives of monetary policy.

Saleh explained, in a statement to the official agency, that "the accreditation of an auditing company for foreign transfers will provide additional guarantees for the integrity of compliance processes and the speed of functional performance in market transactions, especially foreign transfers."

He added that this will enhance the efficiency of the money market thanks to the clear information it provides, which contributes to the stability of transactions and raises the level of certainty in the market.

Saleh pointed out that this step will achieve two main objectives of monetary policy: first, improving control over local liquidity and controlling money supply growth rates; and second, stabilizing the exchange market by strengthening the role of the official market and outweighing its positive effects on the parallel market.

He added that the two objectives are linked to the role of monetary policy in stabilizing prices and containing inflationary expectations, which ensures stable real flows through the stability of the external value of money and its compatibility with the stability of the velocity of money circulation internally and the general function of the demand for money in the national economy.

https://www.mawazin.net/Details.aspx?jimare=251709

Al-Nusairi: Implementing Banking Reform Strategies Is The Main Pillar For Reforming The National Economy

Banks  Economy News – Baghdad  The advisor to the Iraqi Private Banks Association, Samir Al-Nusairi, confirmed today, Monday, that the banking reform and development strategy is the main pillar for reforming the comprehensive national economy.

Al-Nusairi said in a special interview with “Al-Eqtisad News” that “the strategy of banking reform and development is the basic pillar for comprehensive and radical reform of the national economy in line with what is stated in Article Twelve, Paragraph (7) of the government program, which clearly and accurately stated that (banking reform, with what it provides of a real and effective basis for the advancement of the Iraqi economy and the activation of investment through the restructuring and mechanization of government banks, reviewing their work, and stimulating and enabling private banks to be able to support investment and development in a real way).”

Al-Nusairi touched on the "importance of the banking sector, as it occupies a vital position within the financial structure of the economy in mobilizing savings and financing development through its ability to flow money between the categories of the national economy, which is the basic step for economic reform."

He pointed out "the measures currently taken by the Central Bank with the support of the government to launch its new third strategy for reforming and developing the banking sector for the years 2024-2026 according to seven main objectives, 24 sub-objectives and 75 initiatives to implement the objectives focusing on achieving monetary and financial stability, strengthening the banking sector, enhancing digital transformation, activating electronic payment, enhancing financial inclusion, maintaining a sound financial system, developing the organizational structure and human resources, strengthening the internal and external relations of the Central Bank, and the banking sector's compliance with international standards."

Al-Nusairi pointed out that "a national strategy for bank lending in Iraq for the years 2024-2029 was launched, aiming to increase credit granted to the private sector by 4% of the non-oil GDP, which is equivalent to approximately 7 trillion dinars, and the second goal is to increase credit to small and medium enterprises by 3% of the non-oil GDP, which is equivalent to approximately 5 trillion dinars."

He stressed that "the new mechanisms depend on organizing the granting of loans to develop small, medium and micro enterprises by relying on and relying on a new approach to determine the basic objectives of economic development, evaluating the current situation of private sector financing, and benefiting from international experiences in this field, as well as continuing the procedures and using monetary policy applications to control the exchange rate and reduce the gap between the official rate and the parallel rate towards reaching the targeted and balanced exchange rate."

Al-Nusairi explained that, "If it were not for the many services provided by the banking system in developed countries, these countries would not have been able to achieve the progress and economic growth they have achieved."

He explained that "the strength of the banking structure has become a necessity for building a prosperous economy that adopts modern systems and sound sustainable development. The development of banking habits and awareness of the importance of developing banking institutions in a way that ensures the building of a national savings base and develops the financial resources necessary to build the economy have become priorities for decision-makers."

The advisor to the Private Banks Association continued: “The soundness of the banking system and the mobilization of sound decisions in the field of economic policies towards developing and modernizing banking systems ensures the achievement of momentum in the world of real and financial investment, which stimulates financial and monetary markets, which leads to attracting foreign capital seeking profit.

Therefore, the decision-maker should take the necessary measures to fortify and strengthen local banking systems in a way that makes them capable of facing the challenges of transferring capital to and from abroad without causing money laundering or smuggling foreign currency, and then increasing the profitability of financial and banking institutions and strengthening the structure of the gross domestic product, which is what the government and the Central Bank are currently active in.”

254 views 07/22/2024 https://economy-news.net/content.php?id=45452

Iraq, US Discuss Future Of International Coalition Mission In Washington

July 22, 2024  Baghdad - Al-Zaman  US Ambassador to Baghdad Alina Romanowski announced on Monday the start of discussions between Iraq and America regarding the future of the international coalition mission.

“Today, the US-Iraq Joint Security Dialogue begins in Washington, DC,” Romanowski wrote in a post on the X platform.

She added, "Security officials from the United States and Iraq will discuss the future of the international coalition mission and strengthening security cooperation between our two countries."  LINK

Prices Have Risen 95% In The Past 16 Years.. Iraq Rethinks The “Poverty Line” Standard

Economy  2024-07-22 | 2,090 views  Alsumaria News – Economy  The Ministry of Planning is looking into reconsidering the poverty line in Iraq, based on the poverty line survey that began a year ago and is supposed to end at the end of this month, at a time when the prices of all types of goods, services and real estate in Iraq have differed from 2007 until now by about 95%.

The spokesman for the Ministry of Planning, Abdul Zahra Al-Hindawi, said, "The survey that the ministry began in July of last year is expected to end by the end of this month, so that we will have new results to update the poverty line annually in light of inflation indicators and the results of the ongoing annual surveys of the social and economic status of the family."

He pointed to "preparing a national map that highlights the geographical pockets of poverty at the level of the smallest administrative unit and updating it," noting that "the ministry is preparing to prepare a new five-year strategy 2024-2028, in addition to awaiting the results of the survey to be a vision based on realistic principles," according to Al-Sabah newspaper.

Data and annual reports indicate that overall prices in Iraq have increased by about 95% from 2007 to 2023, as food prices increased by about 84%, and rents by 78%, according to the Iraq Future Foundation for Strategic Studies.  LINK

More Than $279 Million.. Central Bank Sales Today

Monday 22 July 2024 | Economic Number of readings: 172 Baghdad / NINA / The Central Bank of Iraq announced, on Monday, the total sales of foreign currency through the electronic window.

The window recorded the total amounts of transfers abroad (remittances, credits) of $ 266,511,934, while the total cash sales amounted to $ 13,300,000, and the total sales amounted to $ 279,811,934.

The sale was assigned to transfers and cash at a price of 1310 dinars per dollar, while the price for bond credits and international settlements for the electronic card was 1305 dinars. https://ninanews.com/Website/News/Details?key=1142838

Stock Exchange: 341 Million Shares Traded In Monday's Session0

Market  Economy News – Baghdad Monday's session at the stock exchange witnessed the trading of 341.7 million shares, worth 773.3 million dinars.

The stock exchange index decreased by 0.65% after the shares of 19 traded companies decreased.

On the other hand, the shares of 5 companies rose and 647 deals were executed.

45 views  07/22/2024 -https://economy-news.net/content.php?id=45468

Al-Sudani Directs To Focus On Supporting The Iraqi Olympic Mission In The Paris Olympics

Local | 07/22/2024  Mawazine News – Baghdad  Prime Minister Mohammed Shia al-Sudani directed, on Monday, to follow up on the needs of the Iraqi mission to the Paris Olympics and support the national team in the World Cup qualifiers.

His media office stated in a statement received by / Mawazine News /, that "al-Sudani followed up on the procedures related to the three sports initiatives that he launched last June, during his reception of his advisors for sports affairs, Khaled Abdul Wahid Kabyan and Iyad Binian."

He stressed "continuing to follow up on the needs of the Iraqi Olympic mission participating in the Paris Olympics, and providing all facilities and care for it, especially the Olympic football team. As well as supporting the national team in its upcoming entitlements, related to the decisive qualifiers for the World Cup."

Last June, Al-Sudani launched three foundational projects in the sports sector, in order to develop the sports reality. These are the (Olympic Champion) project, which includes preparing champion players qualified to participate in the 2028 and 2032 Olympics, to achieve the goal of obtaining Olympic medals. The second project is to support hosting the (West Asian Youth Olympics for individual games).

 The third project includes allocating a budget to the Olympic federations to complete the infrastructure facilities within the current investment plan for the coming year. https://www.mawazin.net/Details.aspx?jimare=251698

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

US Pressure on Latin America to Avoid BRICS: Lost America's Backyard?

US Pressure on Latin America to Avoid BRICS: Lost America's Backyard?

Fastepo:  7-22-2024

Despite the BRICS group's recent pause on accepting new full members, particularly emphasized by the Russian Foreign Minister, Brazil has actively advocated for the bloc's continued expansion.

Brazilian Ambassador to Russia, Rodrigo de Lima Baena Soares, revealed Brazil's proposal of Colombia as a potential new BRICS member, as reported by the Russian News Agency TASS.

This strategic recommendation was underscored by Brazilian President Luiz Inacio Lula da Silva during discussions with Colombian President Gustavo Petro, highlighting Colombia's significance in the expansion plan.

In addition, Bolivia, under the leadership of President Luis Arce, has formally sought BRICS membership. Bolivia's vast lithium reserves, essential for sustainable energy solutions, make it an attractive candidate for the bloc.

Similarly, Venezuela, led by President Nicolás Maduro, has expressed a strong desire to join BRICS, emphasizing its substantial oil reserves. Venezuela's application has garnered support from China, Russia, and Brazil, underscoring its strategic importance.

The expansion of BRICS into Latin America represents a significant geopolitical shift, diminishing the influence of the United States, which has traditionally viewed the region as its geopolitical "backyard."

By incorporating more Latin American countries, BRICS aims to create a counterbalance to U.S. economic and political dominance. This move is expected to enhance regional integration, reduce dependence on U.S. markets, and promote a more diversified economic base.

In this video, we analyze the significance of Colombia, Bolivia, and Venezuela's potential inclusion in BRICS and its implications for both BRICS and the United States.

This development could potentially reshape the global order, altering economic alliances and geopolitical strategies.

We will explore how this move could challenge U.S. dominance in Latin America and enhance BRICS' influence on the world stage, thereby creating a new dynamic in international relations.

https://www.youtube.com/watch?v=KgF9vnlykU4&t=14s

Iraq News Highlights and Points To Ponder Monday AM 7-22-24

Iraq And The US Elections... Limited Impact

Iraq  07/22/2024  The world is awaiting the results of the US elections scheduled for next November, which seem to be the most exciting in recent decades, after being dominated by personal touches and the conflict between the current president (Biden) and the previous one (Trump). Iraq is not excluded from the American spotlight, as it is a link between a number of international and regional parties.

Academic and researcher in political affairs, Dr. Abdul Aziz Al-Issawi, warned that Iraq's political situation is different from its previous situation, indicating that the Iraqi government is proceeding to zero diplomatic relations with the United States.

Al-Issawi told Al-Sabah: "We are not in 2006 or 2010 or 2014 when Iraq needed the international coalition, so the impact of the US elections is less than before." He added that "Iraq will not be affected by America and vice versa, as Iraq is no longer a major file to influence the US elections, as it has been preoccupied with the war in Gaza and Ukraine."

He continued, "There is talk that US policy is different with the arrival of Trump, and this is not true, because it is a state of institutions." He stated that "when Trump lost the previous elections and refused to hand over power, it was legally taken from him,

" stressing that "some link the elections in Iraq to the elections in America, while there is no impact, because the current government has drawn the course of foreign relations and is proceeding to zero out relations with everyone, so that the relationship with Washington will be more diplomatic."

Al-Issawi pointed out that "the time of the expansion of American influence is over, and therefore the American elections will have less impact on Iraqi politics."

For his part, political analyst Dr. Majash' Al-Tamimi stressed the importance of the upcoming American presidential elections.

Al-Tamimi told Al-Sabah: "The United States and Iraq are allies according to a security agreement and another strategic agreement that includes non-military and security matters," adding that "the United States considers Iraq part of its national security, while Iraq considers the United States an important ally with its strength in the economy, security and other matters, as its foreign trade is in US dollars and its money is deposited in the US Federal Reserve," stressing that "Iraq is affected by what is happening in America."

Al-Tamimi continued: "Accordingly, I do not think that the Republicans' victory in the elections will greatly affect Washington's policy towards Iraq, because Iraq wants this relationship to continue."

 He stressed that "the American presence is important for Iraqi national security, as American forces provide protection for the largest ISIS camp in Syrian territory, and in the absence of American support there will be negative effects on Iraqi internal security." Editing: Mohammed Al-Ansari   https://alsabaah.iq/99726-.html

With A Difference Of 18 Thousand Dinars From The Official Price.. Exchange Rates Continue To Rise "Crazily"

Baghdad Today – Baghdad  The dollar exchange rate continues to rise in the main stock exchanges in Baghdad, reaching nearly 150,000 dinars for every 100 dollars this morning, Monday (July 22, 2024).

Al-Kifah and Al-Harithiya stock exchanges recorded the sale of $100 at 149,250 dinars, after it recorded 148,900 dinars yesterday, against a fixed purchase price of 148,250 dinars.

While local markets and exchange shops recorded the sale of 100 dollars for 150,250 dinars, which means that the difference between the official price (132,000) and the parallel price is still more than 18,000 dinars for unknown reasons and without the slightest government action except for statements, declarations and promises that do not contribute to its decrease.   LINK

Sand: The Dollar Will Rise Due To US Policies And Its Price Cannot Be Determined Accurately

Economy | 07/21/2024  Mawazine News - Baghdad   Member of the Parliamentary Finance Committee, Mustafa Sand, said in an interview followed by Mawazine News, that Iraq's foreign reserves have increased due to the reduction of dollar sales in the auction. He added that the policies adopted by the US Treasury and the Federal Reserve have restricted the sale of the dollar.

Sand pointed out that the expected rise in the dollar is due to the US policies imposed on Iraq. He stressed that the dollar exchange rate cannot be determined accurately, as it changes according to fluctuations in supply and demand.  https://www.mawazin.net/Details.aspx?jimare=251660

The Parallel Is 12% Higher Than The Official.. Latest Update On The Dollar Exchange Rates In Iraq

Baghdad Today - Baghdad    The dollar exchange rate rose relatively in the stock exchanges, by about 150 dinars compared to the prices recorded this afternoon.

In Baghdad, the exchange rate reached 149,050 dinars per 100 dollars, after recording 148,900 dinars per 100 dollars this afternoon, while the difference between the official price and the parallel price is still 17,000 dinars per 100 dollars, which means the difference is 12%.   LINK

The exchange rate list according to the latest update is as follows:  

$100=149,050  Baghdad

$100=149,200  Erbil

$100=149,200  Basra

$100=149,250  Sulaymaniyah

$100=149,250   Duhok

100$=149,300   Kirkuk

$100=149,300   Halabja

$100=149,250   Connector

$100=149,250   Najaf

$100=149,300   Gray

$100=149,300   Samawah

$100=149,250   Nasiriyah

$100=149,300   Karbala

$100=149,300   Baqubah

$100=149,250   suit

$100=149,250  KWD

$100=149,300  Diwaniyah

$100=149,300  Tikrit

$100=149,300  Building

Slight Rise In Dollar Prices Against The Dinar In Iraqi Stock Exchanges

Economy  2024-07-22 | 1,515 views  Alsumaria News – Economy  Alsumaria News publishes the exchange rates of the dollar against the Iraqi dinar in the Iraqi local markets for Monday, July 22, 2024.

The dollar prices rose slightly with the opening of the Al-Kifah and Al-Harithiya stock exchanges, recording 149,250 dinars for every 100 dollars, while the selling prices in exchange shops in the local markets inBaghdadIt also rose, as the selling price reached 150,250 dinars, while the purchase price reached 148,250 dinars per 100 dollars.

And it was Council of Ministers  On February 7, 2022, it was announced that the dollar exchange rate had been amended to 1,320 dinars per dollar.

About a year ago, specifically since the Central Bank began operating the electronic platform and the international financial transfer system,Swift(SWIFT), the dollar exchange rates did not witness Iraq Stability despite the government and the Central Bank's attempts to control the exchange rate in parallel markets.  LINK

Al-Nusairi: Implementing Banking Reform Strategies Is The Main Pillar For Reforming The National Economy 

Banks   Economy News – Baghdad  The advisor to the Iraqi Private Banks Association, Samir Al-Nusairi, confirmed today, Monday, that the banking reform and development strategy is the main pillar for reforming the comprehensive national economy.

Al-Nusairi said in a special interview with “Al-Eqtisad News” that “the strategy of banking reform and development is the basic pillar for comprehensive and radical reform of the national economy in line with what is stated in Article Twelve, Paragraph (7) of the government program,

which clearly and accurately stated that (banking reform, with what it provides of a real and effective basis for the advancement of the Iraqi economy and the activation of investment through the restructuring and mechanization of government banks, reviewing their work, and stimulating and enabling private banks to be able to support investment and development in a real way).”

Al-Nusairi touched on the "importance of the banking sector, as it occupies a vital position within the financial structure of the economy in mobilizing savings and financing development through its ability to flow money between the categories of the national economy, which is the basic step for economic reform."

He pointed out "the measures currently taken by the Central Bank with the support of the government to launch its new third strategy for reforming and developing the banking sector for the years 2024-2026 according to seven main objectives, 24 sub-objectives and 75 initiatives to implement the objectives focusing on

 achieving monetary and financial stability,

strengthening the banking sector,

enhancing digital transformation,

activating electronic payment,

enhancing financial inclusion,

maintaining a sound financial system,

developing the organizational structure and human resources,

strengthening the internal and external relations of the Central Bank, and the banking sector's compliance with international standards."

Al-Nusairi pointed out that "a national strategy for bank lending in Iraq for the years 2024-2029 was launched, aiming to increase credit granted to the private sector by 4% of the non-oil GDP, which is equivalent to approximately 7 trillion dinars, and the second goal is to increase credit to small and medium enterprises by 3% of the non-oil GDP, which is equivalent to approximately 5 trillion dinars."

He stressed that "the new mechanisms depend on organizing the granting of loans to develop small, medium and micro enterprises by relying on and relying on a new approach to determine the basic objectives of economic development, evaluating the current situation of private sector financing, and benefiting from international experiences in this field, as well as continuing the procedures and using monetary policy applications to control the exchange rate and reduce the gap between the official rate and the parallel rate towards reaching the targeted and balanced exchange rate."

Al-Nusairi explained that, "If it were not for the many services provided by the banking system in developed countries, these countries would not have been able to achieve the progress and economic growth they have achieved."

He explained that "the strength of the banking structure has become a necessity for building a prosperous economy that adopts modern systems and sound sustainable development.

The development of banking habits and awareness of the importance of developing banking institutions in a way that ensures the building of a national savings base and develops the financial resources necessary to build the economy have become priorities for decision-makers."

The advisor to the Private Banks Association continued: “The soundness of the banking system and the mobilization of sound decisions in the field of economic policies towards developing and modernizing banking systems ensures the achievement of momentum in the world of real and financial investment, which stimulates financial and monetary markets, which leads to attracting foreign capital seeking profit.

Therefore, the decision-maker should take the necessary measures to fortify and strengthen local banking systems in a way that makes them capable of facing the challenges of transferring capital to and from abroad without causing money laundering or smuggling foreign currency, and then increasing the profitability of financial and banking institutions and strengthening the structure of the gross domestic product, which is what the government and the Central Bank are currently active in.”   53 views 07/22/2024 - https://economy-news.net/content.php?id=45452

Seeds of Wisdom RV and Economics Updates Sunday Afternoon 7-21-24

Good Afternoon Dinar Recaps,

SOUTH KOREA'S STRICT LAWS ON CRYPTO EXCHANGES COME INTO FORCE

The new regulations issued by South Korea’s watchdog to protect user assets on crypto exchanges went into effect on July 19.

The much-talked-about new regulations from South Korea’s financial security regulator, designed to protect users buying and storing crypto assets with virtual asset service providers (VASPs), came into force on July 19.

Titled the “Virtual Asset User Protection Act,” VASPs must take several steps to ensure the protection of user’s crypto, according to a July 17 statement from South Korea’s Financial Services Commission (FSC).

These include:  
1. taking out insurance against hacking and malicious attacks against the user’s crypto assets,
2.  keeping the customer’s crypto assets separate from the exchange’s assets, and
3.  a requirement to keep customer deposits “safely kept in banks.”

VASPs are also required to maintain a certain level of due diligence to prevent money laundering on their platforms and must report any suspicious transactions to the regulator.

“VASPs should maintain a surveillance system for suspicious transactions at all times and immediately report suspicious trading activities to the Financial Supervisory Service (FSS),” it stated.

“After going through investigations by the financial and investigative authorities, those who are found to have engaged in unfair trading activities may be subject to criminal punishment or penalty surcharge,” it added.

Concerns among South Korean crypto exchanges
Crypto exchanges in South Korea have recently voiced concerns that the rules would result in them simultaneously delisting a mass of tokens.

On July 3, Cointelegraph reported that a group of 20 South Korean crypto exchanges will review a total of 1,333 cryptocurrencies over the next six months as part of the new crypto user protection laws, meaning “the possibility of mass delisting occurring all at once is unlikely,” according to the Digital Asset Exchange Alliance (DAXA).

Meanwhile, South Korea’s ruling party, the People’s Power Party, officially proposed delaying the implementation of the country’s tax on crypto trading profits.

On July 12, the party submitted the proposal and noted that current sentiment toward crypto assets was deteriorating. The description stated that rapidly imposing taxes on virtual assets is “not advisable at this time.”

@ Newshounds News™

Read more:  Crypto Telegraph

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CDP  ISSUES DIGITAL BOND ON POLYGON BLOCKCHAIN USING NEW ITALIAN LAW 

Italy’s Cassa Depositi e Prestiti Spa (CDP) issued a €25 million digital bond on the Polygon public blockchain, which was underwritten by Intesa Sanpaolo as the sole investor. 

The issuance is part of the European Central Bank’s (ECB’s) wholesale DLT settlement trials. 

Hence, the payment was made in central bank money using the Bank of Italy’s TIPS Hash Link solution, which provides connectivity between a DLT and the TARGET2 system for wholesale payments.

CDP is a development bank majority owned by the Ministry of Economy and Finance.

The settlement of a public blockchain bond issuance with central bank money wasn’t the only novel aspect of the digital bond. It is also the first to use Italy’s ‘Fintech decree’ law. 

This was Italy’s enactment of the DLT Pilot Regime, but also applies to DLT issuances that are not part of the Pilot Regime (like this one), provided they take some extra steps.

There must be a Digital Register maintained by a Digital Register Manager which is authorized by Consob, Italy’s securities regulator. The Register is a log of the real names and details of the owners of the securities.

“This transaction represents a significant step for CDP in capital market innovation through the pioneering adoption of blockchain technology for bond issues,” said Fabio Massoli, CDP’s Director of Administration, Finance, Control and Sustainability.

“The promotion of a new market ecosystem and the implementation of an innovative, efficient and secure market infrastructure will provide added value to issuers and investors alike, opening up new opportunities for other players, including SMEs.”

Fintech Decree Digital Registers
The Digital Register is similar to Germany’s eWpG law. In both cases they support direct securities issuances and transactions without requiring central securities depositories (CSDs) or bank intermediaries. However, we believe Italy may have gone a step further because it allows issuers to be the Digital Register Manager for their own securities. 

That’s the case here – CDP had the role of the Market DLT Operator and also the Consob authorized Digital Register Manager. But we believe this also applies where the issuer/manager is not a bank.

“We are particularly pleased to have been the first in Italy, together with CDP, to carry out an operation that is intended to be the point of reference for future issuers in a totally new legal and regulatory framework,” said Massimo Mocio, Deputy Chief and Head of Global Banking & Markets, IMI CIB Division of Intesa Sanpaolo.

A key goal of the ECB wholesale settlement trials is to test the interoperability between DLT networks and central bank money, both conventional and CBDC. Hence, the transactions involve delivery versus payment in most cases. However, CDP said the settlement for its digital bond was ‘same day’.

Meanwhile, the digital bond has a four month term. It was rated A-2 by S&P, F-2 by Fitch and S-2 by Scope.

@ Newshounds News™

Read more:  Ledger Insights

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Silver (XAG) Forecast: Gold Divergence Widens; Is Silver Undervalued or Overextended?

Key Points:
—Silver prices struggle as gold reaches new heights. The widening gold-silver ratio suggests potential undervaluation of the white metal or gold overvaluation.

—Silver's break below the 50-day moving average at $30.19 signals a technical breakdown. Sellers target $28.57, with further decline possible to $27.22-$26.60 zone.

—Weak Chinese manufacturing data raises concerns about silver's industrial demand. This aspect contributes to silver's underperformance compared to gold.

—Fed rate cut expectations drive precious metals. A 98% probability of a September cut may create a buy the rumor, sell the fact scenario for silver and gold.

—Asian physical demand for silver remains sluggish. Customers capitalize on high prices by selling existing holdings rather than making new purchases.

@ Newshounds News™

Read more:  FX Empire

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NIGERIA EMBRACES BLOCKCHAIN NATIONAL INFRASTRUCTURE INITIATIVE GAINS MOMENTUM  
Government Pushes for Data Security and Privacy

The Nigerian Federal Government’s initiative to develop an indigenous blockchain infrastructure has garnered substantial support from the National Blockchain Policy Implementation Steering Committee. Two weeks prior, the government revealed its plans to establish a homegrown blockchain, emphasizing the importance of data security and privacy in this endeavor.

Endorsement from Key Stakeholders
Chimezie Chuta, Chairman of the Committee, expressed strong approval of the initiative during a discussion with The PUNCH. He regarded the concept of a national blockchain infrastructure as a significant and positive step forward. 

Chuta highlighted that other countries, including India, China, the UAE, South Korea, and Singapore, have already established their blockchain infrastructures, suggesting that Africa’s third-largest economy should not lag behind.

Comparative Analysis and Future Prospects
In comparing Nigeria’s blockchain aspirations to those of other nations, Chuta underscored the potential for significant advancements in data security, economic efficiency, and technological innovation. By establishing a national blockchain, Nigeria aims to join the ranks of countries that have successfully integrated this technology into their national frameworks.

Broader Implications for the Nigerian Economy
The push for a national blockchain infrastructure is a move that could bring benefits to the Nigerian economy. The implementation of such technology promises to streamline various sectors, improve transparency, and foster a more secure and efficient data management system. This could potentially attract foreign investment and bolster confidence in Nigeria’s technological capabilities.

Moreover, the development of a national blockchain could provide a platform for various industries to innovate and collaborate more effectively. By supporting smart contracts and offering a scalable and efficient infrastructure, the blockchain could facilitate new business models and drive economic growth.

Addressing Regulatory and Compliance Challenges
A consortium-based blockchain model, as advocated by Chuta, would also address regulatory and compliance challenges more effectively. By involving multiple stakeholders in governance, this model ensures that the blockchain operates within a framework that supports regulatory oversight and compliance, thereby enhancing its credibility and reliability.

Conclusion: A Strategic Move Towards Technological Advancement
The Nigerian government’s initiative to establish a national blockchain infrastructure represents a strategic move towards embracing advanced technology for national development. With strong backing from key stakeholders and the potential for significant economic and technological benefits, this initiative is poised to position Nigeria as a leader in blockchain technology within Africa and beyond.

As the country moves forward with this ambitious project, the focus will be on ensuring that the infrastructure is robust, secure, and capable of meeting the demands of a modern digital economy.

@ Newshounds News™

Read more:  Coin Trust

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PHYSICAL CARDS: The Unexpected Frontier in Digital Security

Dr. Adam Lowe, chief product and innovation officer at CompoSecure, hears it all the time from banking executives when the topic is securing payments: “We cannot introduce friction.” But the balancing act is a tough one. Challenge a user too much and they’ll switch to a competitor. Challenge them too little, and the customer’s financial injury may be calamitous.

In this age of digital attacks and global hacks, banks, FinTechs and platforms face a dilemma. One need only look at the size and scope of the AT&T breach to see that hackers have been able to access, co-opt and use all manner of data to power their scams, and perhaps, cobble together synthetic identities. SMS texts are not as secure as they once were, given the fact that imposters can be the ones behind the SMS missive that seeks user confirmation to complete a transaction.

Among the best lines of defense and security, he said, is something that just about everyone has in their possession: a tangible, physical card. And the card, he said, ticks all the boxes of a robust and usable form of identity protection, as the technology has proven simple enough that even his mother feels comfortable using it, and as tap-to-pay has become a feature ingrained in daily financial life.

CompoSecure’s digital security platform, Arculus, streamlines digital authentication processes and secures digital assets, underpinned by the blockchain. CompoSecure, he said as part of the “What’s Next in Payments” halftime report, “essentially invented the metal card,” and now, with the digital Arculus platform, has extended the capabilities of a payment card.

“We’re seeing more customers rolling out our Arculus technology,” he said, “whether it be the wallet technology, and having digital assets alongside a payment card … or whether it’s the authenticate technology, which is for more traditional banks and for FinTechs.”

A Pocket-Sized Cryptography Engine
With enhanced digital security features, he said, the card “essentially becomes a cryptography engine in your pocket.”

The chip that’s embedded in the card, he said, serves as that aforementioned engine. To enhance the digital experience, he said, the company debuted the Arculus Cold Storage Wallet, which is the digital asset hardware wallet, which puts “keys” on the card for any user to store and use those keys for security to support and pay with crypto assets.

In addition, leveraging similar key technology, Arculus Authenticate allows users to tap their cards to authenticate themselves via a passkey that’s stored on those cards. These cards with Arculus Authenticate can also accept payments, so consumers can login, sign and approve payments.

“Instead of being synched to the cloud,” he said, of the data, “where it can be ‘ripped’ out of the cloud by bad actors, your passkeys are safe in your pocket the same way your keys to the front door of your house are safe in your pocket.”

And, he added, “whether it’s signing Visa transactions, or MasterCard, FIDO 2, or whether it’s signing Bitcoin and Ethereum transactions, that cryptography engine is happy … we can serve whatever market segment needs to be served by design, and we can make it all interoperable.”

That interoperability, he said, is a bit like bridging all the railroads back in the 1890s, as a range of different track gauges knit together to make everything work, east to west and vice versa. In this case, the various parties in a transaction using zero trust architecture standards as transactions move along various conduits. 

According to the U.S. Department of Commerce, zero trust architecture is the term for “an evolving set of cybersecurity paradigms that move defenses from static, network-based perimeters to focus on users, assets and resources.” It assumes no implicit trust based on physical or network location.

@ Newshounds News™

Read more:  PYMNTS

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Addressing the problems of the Iraqi financial system

KTFA:

Clare: Addressing the problems of the Iraqi financial system

7/20/2024  Written by: Zahraa Haider Abdul Jabbar Al-Batat

The financial system in Iraq consists of a group of institutions and structures that manage the financial and economic affairs of the country. Here are the components of this system in detail: 

1. Central Bank of Iraq:

- Role: It is considered the body responsible for implementing monetary policy, issuing currency, and managing cash reserves.

- Objectives: price stability, exchange rate stability, and encouraging economic growth. 

2. Commercial banks:

- Its types: include government banks such as Rafidain Bank and Rashid Bank, in addition to local and foreign private banks.

- Services: Providing loans, opening accounts, making money transfers, and financing projects.

 3. Specialized banks:

Examples: Real Estate Bank, Agricultural Bank.

- Focus: Providing financial services to specific sectors such as agriculture and real estate. 

4. Stock market:

- Iraq Stock Exchange (ISX): is the place where stocks and bonds are traded.

- Objective: To promote investment and develop financial markets.

5. Ministry of Finance:

- Role: Preparing and implementing the state’s financial policy, managing government revenues and expenditures.

- Responsibilities: Preparing the general budget, managing public debt. 

6. Securities Commission:

- Function: Regulating and monitoring the stock market, ensuring compliance with financial laws and standards.

- Objectives: Protect investors, ensure market transparency. 

7. Investment companies:

- Role: Investment management, providing financial advisory services, managing investment portfolios.

- Objectives: Achieving investment returns for clients, enhancing local and foreign investments. 

Main challenges: 

1. Corruption: It hinders economic development and affects confidence in the financial system.

2. Political and security unrest: harm investments and hinder financial operations.

3. Rentier economy: It depends heavily on oil, which makes it vulnerable to oil price fluctuations.

4. Bureaucracy: It hinders efficiency and increases administrative complexities.

5. Weakness of the banking system: Lack of efficiency and development affects performance.

6. Inflation: affects purchasing power and financial stability.

7. Weak financial infrastructure: Lack of technological development affects efficiency.

8. Laws and regulations: may be insufficient or outdated.

9. The informal sector: It poses a challenge in collecting taxes and organizing the economy. 

These challenges require structural reforms and policy development to enhance financial stability and economic growth in Iraq. 

Reforming the financial system in Iraq according to the following mechanism: 

Applying the following mechanism to the Iraqi financial system requires adapting policies and procedures to the economic, social and political conditions specific to Iraq.

Here are some possible steps to achieve this: 

1. Updating financial institutions:

- Strengthening the role of the Ministry of Finance and the Central Bank of Iraq in managing financial and monetary policies.

- Developing the financial infrastructure to increase efficiency and transparency. 

2. Reforming the tax system:

- Improve tax collection and reduce tax evasion.

- Simplify the tax system to make it more transparent and fair. 

3. Strengthening monetary policies:

- Strengthening the independence of the Central Bank to ensure price stability and control inflation.

- Using monetary tools such as setting interest rates and regulating the money supply effectively. 

4. Public debt management:

- Develop strategies to manage public debt and reduce dependence on external loans.

- Issuing local government bonds to attract domestic investment. 

5. Strengthening control and regulation:

- Improving the control systems over banks and financial institutions to ensure the stability of the financial system.

- Enhancing financial laws and regulations to comply with international standards. 

6. Encouraging investment:

- Creating an attractive investment environment by improving infrastructure and reducing bureaucracy.

- Providing incentives to foreign and local investors. 

7. Enhancing transparency and accountability:

- Ensuring transparency of financial operations by publishing financial reports regularly.

- Strengthening accountability and combating corruption at all levels of financial management. 

By implementing these steps, the Iraqi financial system can benefit from global financial experiences, taking into account the fundamental differences between systems. 

Also, to implement these reforms effectively, close cooperation is required between the Iraqi government, international financial institutions, and the private sector to achieve financial stability and sustainable development in Iraq. 

Implementing each paragraph requires specific, practical steps, including: 

1. Updating financial institutions:

- Strengthening the role of the Ministry of Finance and the Central Bank.

- Training and professional development: Providing intensive training programs for employees to improve their competencies and knowledge of modern financial policies.

- Digital transformation: adopting advanced technological systems to improve the efficiency of financial and administrative operations.

- International cooperation: Benefiting from international expertise through partnerships and cooperation with global financial institutions. 

2. Reforming the tax system:

- Improving tax collection:

- Develop technological systems for collecting and analyzing data to increase the effectiveness of tax collection.

- Increase control and inspection of economic activities to reduce tax evasion.

- Simplifying the tax system:

- Restructuring tax brackets to be clearer and fairer.

- Providing facilities to taxpayers such as electronic services. 

3. Strengthening monetary policies:

- Strengthening the independence of the Central Bank:

- Issuing laws that guarantee the independence of the Central Bank from political influences.

- Use effective monetary tools:

- Determining interest rates based on economic conditions.

- Managing the money supply through open market operations and reserve policies. 

4. Public debt management:

- Developing debt management strategies:

- Analyze the debt structure and determine repayment priorities.

- Developing the bond market to attract local investors.

- Reducing dependence on external loans:

- Encouraging domestic investment and developing the financial infrastructure to attract local capital. 

5. Strengthening control and regulation:

- Improving control systems:

- Develop technology-based control mechanisms to improve monitoring of financial operations.

- Enhancing transparency in financial reporting.

- Strengthening laws and regulations:

- Updating financial laws to comply with international standards.

- Activating penalties for financial violations. 

6. Encouraging investment:

- Creating an attractive investment environment:

- Improving infrastructure including roads, bridges, electricity and communications.

- Reducing bureaucracy by simplifying government procedures.

- Providing incentives to investors:

- Tax exemptions for investment projects.

- Credit facilities to finance projects. 

7. Enhancing transparency and accountability:

- Ensuring transparency of financial operations:

- Publish financial reports periodically and in detail.

- Application of international standards in preparing financial reports.

- Promoting accountability and combating corruption:

- Establishing independent oversight bodies to combat corruption.

- Encouraging reporting of corruption by providing protection for whistleblowers. 

Implementing these steps requires strong government commitment and cooperation between the public and private sectors to achieve a stable and effective financial system.  LINK

Iraq Economic News and Points To Ponder Sunday Afternoon 7-21-24

Expert: The Fluctuation Of The Dollar Price In Iraq Is "Invalid"... And The Reason Is

Time: 2024/07/21 Reading: 546 times  {Economic: Al Furat News} The economic expert, Basem Jamil Antoine, considered the continued fluctuation of the dollar price in Iraq to be “null and void.”

Antoine {Euphrates News} said: "The continued difference between the parallel price of the dollar and the official price is considered an "invalid" process and there is no justification for the rise in exchange rates, especially since the amounts of dollars coming to the Central Bank from oil sales exceed 300 million dollars daily."

He added, "There are no special requests as the market has been affected by supply and demand and monetary inflation and the reduction in the amount of salaries and the treatment of this must be serious and accurate."

Antoine added, "Especially since salaries go to basic needs and it is not possible to reduce salary revenues, which are considered limited." The dollar exchange rates stabilized today, Sunday, in Baghdad markets. The prices came as follows:

The selling price is 150,000 Iraqi dinars.

The purchase price is 148,000 Iraqi dinars for 100 US dollars.   LINK

Continuous decline in the exchange rate of the US dollar in Baghdad

Economy | 07/21/2024  Mawazine News – Baghdad  The US dollar exchange rate witnessed a decline in the markets of the capital, Baghdad, today, Sunday, with the opening of the country's main stock exchange.

The dollar price decreased slightly with the opening of the Al-Kifah and Al-Harithiya stock exchanges, recording 149,000 dinars per 100 dollars, while yesterday, Saturday, it recorded 149,150 per 100 dollars.

As for the selling prices in the exchange shops in the local markets in Baghdad, they decreased, as the selling price reached 150,000 dinars, while the purchase price reached 148,000 dinars for every 100 dollars.   https://www.mawazin.net/Details.aspx?jimare=251643

The Central Bank Of Iraq Imposes Huge Fines On Banks During The First Quarter Of The Year

Economy |  07/21/2024  Mawazine News – Baghdad  The Central Bank of Iraq announced today, Sunday, the imposition of financial fines exceeding 43 billion Iraqi dinars on banks and non-banking institutions (exchange companies) during the past three months.

According to a report issued by the Central Bank, the value of fines imposed between the beginning of April and the end of June amounted to 43 billion, 465 million, 532 thousand, and 931 dinars.

The report indicated that May witnessed the highest value of fines, amounting to 34 billion, 2 million, 141 thousand, and 100 dinars, with the imposition of 42 administrative penalties, while June recorded the lowest value of fines, amounting to 2 billion, 829 million, 157 thousand, and 288 dinars, with 30 administrative penalties. The report did not reveal the names of the banks and institutions included in the fines and penalties.

For its part, the Investors Association in the Iraq Stock Exchange criticized the Central Bank’s decision, warning of its negative impact on the profitability of investors in the shares of these banks. https://www.mawazin.net/Details.aspx?jimare=251621n

Iraqi Participation In UNCTAD Meetings On World Trade

Economy | 07/20/2024  Baghdad - Mawazine News  The Ministry of Trade announced today, Saturday, its participation in the technical meetings of the United Nations Conference on Trade and Development (UNCTAD) in Istanbul, regarding the accession of Arab countries to the World Trade Organization.

The ministry stated in a statement that it "participated today in the technical meetings organized by UNCTAD in Istanbul, which will last for two days, to discuss the experiences of Arab countries in joining the World Trade Organization."

The Director General of the Department of Foreign Economic Relations, Riyadh Fakher Al-Hashemi, who represented the Ministry of Trade in these meetings, said, according to the statement, that "the meetings discussed the outcomes of the thirteenth ministerial conference of the World Trade Organization, the process of Arab countries' accession to the organization, and how Iraq can benefit from these experiences in its process of joining.

The statement added, "The importance of trade in services in supporting the economies of Arab countries and enhancing their growth was also reviewed."

Al-Hashemi stressed, according to the statement: “Iraq’s participation in these technical meetings enhances the experience of the Iraqi negotiating team and pushes it to move forward, and in an accelerated manner, towards achieving full accession to the World Trade Organization, as the exchange of knowledge and experiences gained from these meetings will have a significant positive impact on improving Iraq’s negotiating capabilities and achieving its economic goals.”

The statement indicated: “This participation is part of the ongoing efforts made by the Ministry of Trade to strengthen Iraq’s international economic relations and take advantage of available opportunities to enhance economic and commercial development in the country.” https://www.mawazin.net/Details.aspx?jimare=251576

Iraq Sells More Than $274 Million In Today's Trading

Banks  Economy News – Baghdad  The Central Bank of Iraq announced today, Sunday, its sales of hard currency, which amounted to more than 274 million dollars in today's transactions, according to the official price of 1310.

The bank's data showed that the total internal cash withdrawals amounted to $6,800,000, while the total amounts of transfers abroad, including remittances and credits, amounted to $268,183,903, while the total sales amounted to $274,983,903.   07/21/2024 - https://economy-news.net/content.php?id=45419

The Stock Market Starts Its Week With Losses

Market  Economy News – Baghdad   The stock market index fell in the first session of the week, falling by 0.51%.   The session also witnessed the trading of 839.2 million shares, worth 1.3 billion dinars.

The shares of 10 traded companies rose, while the shares of 10 companies fell.

Views 17 07/21/2024 - https://economy-news.net/content.php?id=45433 

Iraq's Oil Exports To US Rise In A week  

Energy  Economy News – Baghdad  The US Energy Information Administration announced today, Sunday, that Iraq's oil exports to America increased during the past week.

The administration said in a table seen by "Al-Eqtisad News" that "the average US imports of crude oil during the past week from eight major countries amounted to 6.044 million barrels per day, an increase of 409 thousand barrels per day from the previous week, which amounted to 5.635 million barrels per day."

She added that "Iraq's oil exports to America reached 220 thousand barrels per day last week, an increase of three thousand barrels per day from the previous week, which reached 217 thousand barrels per day."

The administration indicated that "the largest oil revenues for America during the past week came from Canada at a rate of 4.418 million barrels per day, followed by Mexico at an average of 388 thousand barrels per day, followed by Saudi Arabia at an average of 394 thousand barrels per day, from Brazil at 331 thousand barrels per day, and from Nigeria at an average of 164 thousand barrels per day."

According to the table, "the amount of US imports of crude oil from Colombia was at a rate of 79 thousand barrels per day, and from Ecuador at a rate of 50 thousand barrels per day."

101 views 07/21/2024 - https://economy-news.net/content.php?id=45403

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

Economist’s “News and Views” Sunday 7-21-2024

Financial System "Revamp" Is Coming | Kerry Lutz

Liberty and Finance:  7-20-2024

Kerry Lutz joins Dunagun Kaiser to discuss the evolution of the financial system and the impact of media on financial discourse. They reflect on how podcasting and independent media have transformed financial discussions compared to a decade ago.

The conversation critiques mainstream media's homogenization and its effect on public understanding of economic issues.

 Lutz also explores recent economic crises and the role of new technologies. He offers a forward-looking perspective on how emerging trends could reshape the financial landscape.

INTERVIEW TIMELINE:

 0:00 Intro

1:30 LibertyAndFinance & Kerry Lutz

7:00 Financial Survival Network

 18:40 The future financial landscape

https://www.youtube.com/watch?v=2UHmqPPJmmU

De-Dollarization Alarms the U.S. Economy: Will BRICS Adopt a New Currency?

Wealth Insights:  7-20-2024

Russia and China have drastically reduced their reliance on the US dollar, with over 90% of their trade now conducted in rubles and yuan. This shift is part of a broader de-dollarization strategy to decrease dependency on the US-led financial system.

Chinese banks in Russia have stopped processing dollar and euro settlements, making the yuan the most traded currency on the Moscow Exchange.

This move aligns with BRICS nations' efforts to establish a new currency to rival the US dollar. Join us as we explore the implications of this significant economic shift.

https://www.youtube.com/watch?v=-p24VY4BXyk

"All HELL BREAKS LOOSE" (In the Next Few Months) says FED Insider, Danielle DiMartino Booth

Sachs Realty:  7-20-2024

Everyone's getting fired across all industries, says Danielle. U.S. recession is here and the housing market is crashing.

https://www.youtube.com/watch?v=EMJpSo-AXDI

“Tidbits From TNT” Sunday 7-21-2024

TNT:

Tishwash:  Angry protesters compare salaries to presidencies, threaten sit-in in Baghdad

Hundreds of employees of Iraqi state departments and institutions demonstrated today, Saturday, in front of the fortified Green Zone in central Baghdad, demanding an amendment to the salary scale.              

Employee Wissam Ahmed told Shafak News Agency, "We went out today to demand that the government and parliament amend the salary scale and address the differences in classes for state employees."       

He added, "There is inequality and injustice in employees' salaries," indicating that "an employee in the Council of Ministers, Parliament, and the three presidencies receives a salary of 3 million dinars per month, while someone of the same rank in another ministry receives only 500,000 dinars."                    

For his part, the employee in the Ministry of Education, Ahmed Munim, said in an interview with Shafaq News Agency, "The demonstration is not the first, and it will not be the last for all employees to demand the establishment of a new salary scale based on justice and fairness, in which the amendment of risk allowances is also taken into account," adding that "the demonstration committee met a month ago with Prime Minister Mohammed Shia al-Sudani to amend the salary scale without reaching a solution."                                                    

Munim continued, saying, "The demonstration will turn into a comprehensive sit-in if our demands are not met."

Earlier today, Iraqi parliament member Raed Al-Maliki held the Council of Ministers responsible for not amending the salary scale for employees and workers in the public sector, renewing his demand for the federal government to send the Federal Civil Service Council Law for the purpose of legislating it.

Al-Maliki said in a joint press conference held with a number of his colleagues and members of the House of Representatives, "There is another legal path related to the salary scale, which is done through amending the Federal Civil Service Law or legislating a new Civil Service Law."

He explained that "we had in the Iraqi parliament a draft federal civil service law that combines four laws, including the salary scale law," stressing that "the Council of Ministers withdrew this service law, and it was not returned to parliament again despite repeated demands from the representatives." 

Al-Maliki pointed out that "the issue of amending the salary scale law is not with the House of Representatives and the delay is not from it, but the entire issue is with the Iraqi government because it has a financial aspect," stressing the parliament's readiness to amend the salary scale if the Council of Ministers sends the Federal Service Law at any time. link

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Tishwash:  Electronic payment products meet the needs of citizens

A responsible source in the global smart card company “Ki” described the current electronic payment products as “acceptable”, but the Iraqi market needs more in a way that makes the citizen’s life easier.

He said: The company realizes the extent of the Iraqi market's need for advanced financial services, especially after Iraqi society opened up to the world and it became easy to communicate and learn about global experiences.

He added that the support of the government and the Central Bank of Iraq represents an incentive to expand the range of products offered to a wide segment of Iraqi society, especially since interaction with electronic payment continues.

He pointed out that being present in all places and providing services to citizens in a manner that suits their needs represents a lofty goal for the company’s management and its work team.  link

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Tishwash:  Parliamentary Committee Calls for Substantial Amendments to Investment Law to Attract Foreign Investments

 The Iraqi Parliamentary Committee on Economy and Development called on the Iraqi government to make amendments to 12 paragraphs of the current investment law, with the aim of improving the investment environment and attracting foreign investments to the country.

The committee chairman, Hassan Al-Khafaji, explained that the committee discussed with the relevant parties, including university deans and the National Investment Commission, ways to improve the Iraqi investment law.

l-Khafaji stated that the committee was able to obtain the government’s approval to amend 4 out of 12 articles that were proposed, but he considered that the amendments that were approved “are still below the required level.”

Among the most important points discussed by the committee was one related to investment opportunities that investors obtain. Al-Khafaji pointed out that some unsound companies exploit these opportunities, which leads to the flight of capital and the disruption of projects.

Al-Khafaji stressed that the committee is striving to change this paragraph of the law, to ensure that serious investors have real opportunities to invest in Iraq.

In addition to the amendments to the investment law, the committee also discussed several other economic laws, including laws to combat price increases and open new cities.

These efforts by the committee come within the framework of its efforts to improve the Iraqi economy and attract foreign investments, which will create new job opportunities and improve the standard of living of citizens.  link

Mot: Soooooo Thoughtful!!! -- siigghhhhhh