Economist’s “Financial Crash News and Views” 8-6-2024

Decoding Economics: New Black Monday, Stock Markets Crash

Tuesday, 6 August 2024, 6:35 AM

On a day that will undoubtedly be etched in the annals of financial history, Japan’s Nikkei Index faced an unprecedented fall, plummeting 12.40% to 31,458.42 points. This remarkable downturn has been labeled the new “Black Monday,” a term that conjures images of financial chaos and market panic, reminiscent of previous stock market crashes. But what triggered this massive sell-off, and what does it imply for Japan and the global economy?

The catalyst behind this startling decline was an amalgamation of concerns centered on a potential global recession. Weak economic data emanating from the United States has heightened fears about the broader economic landscape. It isn’t merely the numbers that are alarming; it’s the narratives they weave, signifying a possible slowdown that could ripple through nations and continents.

Prior to this downturn, the Nikkei 225 had been riding high, with a peak of approximately 42,400 points reached in mid-July. Investors were optimistic, buoyed by a robust recovery from the pandemic and strong export performance. However, as global sentiments shifted and indices began to display signs of volatility, the stage was set for a dramatic correction.

One of the critical factors contributing to the Nikkei’s downfall was the sudden and sharp appreciation of the yen, which, although typically a sign of strength, began to pose challenges for Japan’s export-driven economy. A stronger yen makes Japanese goods more expensive for foreign buyers, effectively hurting sales in international markets. Consequently, companies that thrive on export revenues found themselves caught in a tightening vise, resulting in a steep decline in stock prices across the board.

This situation not only affected domestic sectors but had a domino effect on markets in the region. Asian financial markets responded swiftly, with notable declines in Hong Kong, Shanghai, Mumbai, Bangkok, Manila, and Jakarta. Investors’ apprehension was palpable, creating a sense of uncertainty that cast a long shadow over market activities.

The fallout from the Nikkei’s plummet was global. European markets in Frankfurt, Paris, and London experienced significant declines, though they were less severe than their Asian counterparts. Such trends underline a growing interconnectedness within the global financial system, where turmoil in one major economy can lead to widespread unease elsewhere.

Social media platforms lit up with analysis and commentary, as traders, analysts, and economic pundits sought to make sense of the situation. Many expressed a deep concern for the prolonged health of the global economy and the interconnected nature of financial markets. The reactions varied from panic to caution, signaling that investors are weighing their options in a climate of heightened uncertainty.

As we move forward, the question remains: what does this mean for the future? Economists warn that before recovery can commence, stabilizing factors must be addressed. Central banks might need to reassess policy schemes to shield economies from volatility, while businesses might have to adapt their strategies to weather economic headwinds.

Investors will undoubtedly remain vigilant, watching for indicators of recovery in the U.S. and elsewhere. The road ahead could be tumultuous, but it is crucial for market players to recalibrate expectations and remain cautious of potential market overreactions.

In conclusion, Japan’s “Black Monday” serves as a stark reminder of the fragility of markets in the face of economic uncertainty. As we navigate through these turbulent times, vigilance, informed decision-making, and a keen understanding of underlying economic indicators will be essential for investors and businesses alike.

The path to recovery may be long, but one thing is clear: the world is watching, and the ramifications of this day will echo across markets for time to come.

Watch the video below from Decoding Economics for more information.

https://youtu.be/PvZLQREipaA

Is This The "Everything Bust" Of The "Everything Bubble"? | John Rubino

Liberty and Finance:  8-5-2024

The S&P 500 has declined by nearly 10% from its peak. John Rubino (https://rubino.substack.com) highlights the vulnerability of the stock and real estate markets.

He notes that almost all asset classes are experiencing bubble-like conditions. Recent market movements and financial crisis in Japan could signal the onset of a widespread downturn.

We may be witnessing the "everything bust" of the "everything bubble." This situation suggests significant challenges ahead for investors.

INTERVIEW TIMELINE:

0:00 Intro

 1:55 Real estate

13:15 "Emergency" rate cuts

15:50 Fiat collapse

 20:20 The "everything bust"

22:25 Preparedness

https://www.youtube.com/watch?v=Pix9_CyDGT8

Global Market MELTDOWN (this is just the beginning)

Taylor Kenny:  8-5-2024

BREAKING NEWS: Dubbed Black Monday 2.0, the world is witnessing a dramatic global stock MELTDOWN.

With concerns escalating as the Federal Reserve faces calls for an emergency rate cut to prevent an even deeper recession.

Taylor Kenney is here to bring you the latest developments as they continue to unfold.

https://www.youtube.com/watch?v=yVP33pUgC8M

“Tidbits From TNT” Tuesday 8-6-2024

TNT:

Tishwash:  Former MP: Iraq's financial autonomy is lost because of Washington

On Monday, former member of the Finance Committee, Muhammad Al-Shabki, accused Washington of dominating the oil revenues in the US Federal Bank. 

Al-Shabki said in a statement to the “Al-Ma’louma” agency, “There are issues imposed on Iraq and domination of the Iraqi economy by the United States,” noting that “this policy that America placed on Iraq is the reason for the calamity in its economic situation.” 

He added, “Iraq does not have autonomy over its money coming from oil exports in the US Federal Bank,” calling on the government to “be freed from this pressure and have a say in reformulating the relationship with the Americans.” 

He stated that "Iraq is asking the American side for a lot of money, which represents the proceeds of the amounts in the Federal Bank." 

Earlier, a member of the Al-Fatah Alliance, Ali Hussein, warned in a statement to the Al-Ma'louma Agency about the American control over the oil financial revenues in the Federal Bank, accusing Washington of exploiting this control to exert pressure on Iraq. link

Tishwash:  The power of the "Federal Forces"... Iraq is moving to achieve financial autonomy

The United States of America still dominates the Iraqi economy through economic agreements concluded by Washington according to what primarily serves its interests, as the American administration seeks to block the way for those trying to rid the country of its control over Iraqi oil sales funds. 

The United States of America continues to impose its influence on Iraq in many vital files, including depositing the funds from the sale of Iraqi oil in the US Federal Bank, amid clear blackmail by passing many files, most notably the dollar bill, which puts great pressure on the government.  

Iraq seeks to get rid of this dominance by depositing the money in the Federal Bank and sending it directly to the Central Bank. 

Speaking about this file, Al-Fatah Alliance member Ali Hussein calls on the government to seek to find alternatives and take the step of liberating the country from the dominance of the dollar and the continuing American sanctions, while stressing that Iraq's move towards lifting the restrictions of the US Federal Bank is a must.  

Hussein said in an interview with the Maalouma Agency, “It will be a bold step, but it will succeed if the atmosphere is created and contracts are made with alternative international banks,” noting that “it is necessary to bring in companies from international countries.” that do not deal in the US dollar.”  

He continues, “Entering into the Shanghai system and other global organizations will be the first stage of liberation from the dollar,” adding that “the movement to end the dollar’s ​​hegemony over the world, led by major countries, has greatly succeeded.”  

He adds, “Contracting from companies from Eastern countries and bringing them to work inside Iraq will avoid the economic blockade,” pointing out that “the government is required to seek to find alternatives and take the step of liberating the country from the dominance of the dollar and American sanctions."  link

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Harambe:  Telegram: Reports of 2 American soldiers killed in the bombardment of 7 missiles by the Iranian proxy on the Ain Asad base in Iraq

🔸 Reports of 2 American soldiers killed in the bombardment of 7 missiles by the Iranian proxy on the Ain Asad base in Iraq.

🔸 Report on American military activity at the Arar border crossing between Saudi Arabia and Iraq. Possible US reinforcements on their way to Iraq.

Telegram Link:

https://t.me/beholdisraelchannel/37017

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Tishwash:  Iraq, EU discuss combating terrorism

Today, Monday, the head of the Counter-Terrorism Service, Karim Al-Tamimi, discussed the file of combating terrorism with the European Union Mission.
A statement by the service received by /Al-Youm Al-Akhbariya/ stated that "the head of the Iraqi Counter-Terrorism Service, Lieutenant General Karim Al-Tamimi, received the head of the European Union Mission and his accompanying delegation today, Monday, at the headquarters of the Counter-Terrorism Service in the capital, Baghdad."

The two sides discussed, according to the statement, "security cooperation in combating terrorism with regard to holding workshops and conferences and exchanging expertise and information with the European Union countries."

The statement indicated that "the discussion addressed the Iraqi national strategy to combat terrorism and the mechanisms of cooperation in its implementation in order to achieve the desired goal of reaching a secure and stable Iraq."  link

Mot: .. Finally - Figured out da problem!!!! 

Mot: ... Sooooooooo - Howd Ur Day Go!!!!!

Seeds of Wisdom RV and Economic Updates Tuesday Morning 8-6-24

Good Morning Dinar Recaps,

STELLAR Blockchain Chosen for New EURT Euro-Pegged STABLECOIN Initiative

"Ireland-based electronic money institution (EMI) DECTA is partnering with French fintech company Next Generation to introduce a new Euro-pegged stablecoin, ‘EURT’.

The collaboration aims to create a fully compliant stablecoin that adheres to the Markets in Crypto-Assets (MiCA) regulations and operates on the Stellar blockchain, alongside three additional platforms."

"Next Generation, which has close ties with Tempo France, previously launched EURT with the Stellar Foundation as one of the first stablecoins in 2017. 

However, the project was suspended due to the lack of a regulatory framework. The implementation of MiCA now provides a structured environment, facilitating the relaunch of this project."

"As of 1 July 2024, the new MiCA regulations permit the issuance of Euro-pegged stablecoins exclusively by credit institutions or EMIs within the EU. With its EMI license from the Central Bank of Ireland, DECTA is well-positioned to be a pioneering issuer under these new regulations."

“The implementation of MiCA has ushered in a new era in the history of modern digital finance in Europe,” said Suren Hayriyan, president of Next Generation. “The demand for Euro stablecoins is extremely high. Companies, entrepreneurs, and private users today lose a lot on forced conversions.

"The firms plan to launch EURT in October, aligning with strategic goals and regulatory milestones. The partners emphasize the SIGNIFICANCE OF REGULATION, indicating that UNREGULATED Euro-denominated stablecoins will no longer have a place in the market"

@ Newshounds News™

Read more:  Digital Pound Foundation

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We’re excited to announce that #Hedera has officially joined the @IIF
 (Institute of International Finance),  joining the likes of @circle @coinbase, and @BlackRock, and other leading institutions to collaboratively foster global financial stability and sustainable economic growth.

@ Newshounds News™

Read more:  Twitter, IIF

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Hedera - HBAR

@ Newshounds News™

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JUST IN: El Salvador bought more #Bitcoin today while everyone else is selling.

@ Newshounds News™

Read more:  Bitcoin Magazine

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ARE CBDC'S A FORM OF CRYPTOCURRENCY?

THIS ARTICLE IS VERY COMPREHENSIVE AND WE HIGHLY RECOMMEND CLICKING THE LINK TO THE FULL ARTICLE FOR REVIEW

"Although CBDCs are a form of digital currency, they are not a cryptocurrency. Compared to cryptocurrencies, CBDCs are centralized, meaning they’re issued and regulated by a monetary authority — in this case, a country’s government.

They’re also considered legal tender and hold the same status as any traditional fiat currency issued by a central bank. Finally, by virtue of the fact that CBDCs are based on fiat currency, they’re far less volatile than cryptocurrencies, whose value is determined by market forces and speculative activity."

"While both CBDCs and cryptocurrencies have their advantages and disadvantages, the general consensus is that they are two very different things, with different implications for the economy and society at large."

"The decentralized nature of cryptocurrencies has also accelerated innovation in cross-border payments — for example, RIPPLE, a Real-Time Gross Settlement system, has successfully built a global payment ecosystem with the XRP cryptocurrency at its core."

"The growing popularity of cryptocurrencies has created increased competition for central banks, which have realized that they need to offer instant, electronic payments to stay current and maintain market share."

"There’s been some confusion recently around the relationship between FedNow and CBDCs, with some wondering whether FedNow is a CBDC. To cut right to the chase: No, it is not, and the two are fundamentally different.

CBDCs are not a payment mechanism, but rather a form of currency and a digital means of storing value. FedNow, however, is a payment mechanism — in other words, it’s a means of moving funds from one bank account to another.

"To put things into perspective, the FedNow Service can be likened to a highway system, providing a fast and efficient infrastructure for the movement of payments between financial institutions.

 CBDCs enable central banks to compete with private-sector offerings by providing a wider array of services to consumers, including a more stable, secure alternative to cryptocurrencies.

There’s also a cost-saving incentive to CBDCs, as electronic payments are less expensive to process — both for governments and financial institutions — than paper-based payments."

"Looking to the future, FedNow, digital payments, ISO 20022, and CBDCs will be transformational not only for businesses within the financial services industry but for anyone who uses financial services. In the long run, they will coexist with cryptocurrencies, providing consumers and businesses with a wide range of complementary mechanisms for the digital transfer of value."

@ Newshounds News™

Read more:  Volantetech

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Iraq Economic News and Points To Ponder Tuesday AM 8-6-24

The National Currency Is Fluctuating.. An Expert To The “Iraq Observer”: We Need A Banking System That Creates Balance

August 5, 2024  Baghdad/Iraq Observer   Dollar prices have witnessed a significant rise recently, with a difference of 20 thousand dinars from the official price, amid the absence of any real solutions to control it and limit its rise.

In this regard, Mustafa Hantoush, a researcher in banking and financial affairs, confirmed to the Iraq Observer that   “the issue of currency stability and the exchange rate is determined according to monetary policy, which is represented by several axes, the most important of which is that the dollar currency and the rest of the foreign currencies are owned by a number of foreign countries.”  He added,  “At the same time, Iraq has policies and understandings with these countries, such as the United States, so the issue of trade with countries such as Iran and Syria must be done according to the platform,” pointing out that

 “this trade is huge and must be financed according to a specific method by purchasing gold or making transfers.” Or goods are imported until there is an understanding with these countries.” 

He continued,  “The United States today prevents dealing with the dollar in official trade,  so how can this trade be financed at a time when it is not allowed to deal in the dollar-denominated dinar?

 The issue of the platform with Iran and Syria may raise the American momentum and reduce tensions, and thus stabilize the currency.”  He pointed out that    “to support and strengthen the national currency, there must be a basket of currencies that needs a banking system.

 Today, the banking system is due to the mistake committed by the Central Bank of Iraq related to the lack of a platform system with countries such as Iran and Syria from day one, unlike countries in the region such as Turkey and others that have created a platform.”

Gold and remittances, as the banking system was stopped, restricted from the dollar, and eliminated with quasi-sanctions, which created a banking problem, and then introduced banks to foreign investors with another mistake.”

 The researcher asked about banking and financial matters:

How are Iraqi banks given to foreign investors?

 This matter led, as a result, to these investors transferring the dollar to their bank branches in their countries, to an account in Citibank and JP Morgan, and

their profits will be in exorbitant amounts transferred to foreign countries, as

 the issue has begun to affect the sovereign financial security of Iraq.”

He explained,  “Iraq needs to build a banking system that strengthens banking standards and

thus enables Iraq to build a banking system that provides a balance for the currency.

 Also, the issue of people is not as important in monetary policies as the policies themselves are important,

 because the presence of a specific person who follows the same policies and does not have any plan, he cannot benefit from it.

”Rather, there must be a plan related to monetary policy to achieve the

    balance of the currency and the banking system,

    plans for financing and attracting deposits, and

     plans related to granting loans.

Whoever has banking policies will be the best.”    https://observeriraq.net/العملة-الوطنية-تتأرجح-خبير-لـعراق-او/    

A Financial Expert Diagnoses A “Fatal Error” In The Iraqi Banking System - Urgent

Economy | Today, 10:00 | Baghdad today – Baghdad  Today, Tuesday (August 6, 2024), financial expert Saleh Al-Banker confirmed that  Iraq is among the top countries in the Middle East in terms of hoarding money, while he diagnosed a grave error in the Iraqi banking system.

The banker said in an interview with “Baghdad Today” that  “the accumulations that have been continuing for many years have led citizens to lose confidence in banks and resort to hoarding money in homes,” noting that  “their percentage reaches 70% of financial flows, and   these are large numbers that indicate that we are among The countries with the highest amount of money in the Middle East.  He added, "Hoarding money in the financial concept is a grave mistake.

It will confuse the financial process and reduce the government's ability to provide cash to pay salaries," explaining that "resorting to electronic payment is a step in the right direction,  but the most important thing is withdrawing cash, and there are several ways." 

The banker pointed out that “the recent offering of treasury bonds is a correct decision,  but the media propaganda to create a culture of safe investment on the street is very weak, and this is what creates low rates for dealing with them, even though the interest rates are attractive.”

 He stressed  "the necessity of seeking to expand the circle of withdrawing liquidity from homes and  creating a movement of money that contributes to increasing the recovery of investment and granting government loans, especially with requests that are five times greater than the amount of funds allocated for loans in any sector, especially housing."

It is noteworthy that the Parliamentary Finance Committee commented on Saturday (July 13, 2024) on the impossibility of lifting US sanctions on some Iraqi banks.

 Committee member Moin Al-Kazemi said in an interview with “Baghdad Al-Youm” that  “there is no weakness in Iraq’s foreign policy and there is no defect in the Iraqi banking system that makes the United States of America not lift the sanctions on Iraqi banks.” 

Al-Kadhimi stated,  “There is a clear intention by the United States of America to continue these sanctions despite the clear development in the banking system and the restriction of foreign transactions through the electronic platform in the Central Bank, but Washington is using this file as a political file towards Iraq.” 

He added,  "The Iraqi government is working with everything it has to lift the sanctions on the banks, especially since those sanctions negatively affected the banking sector and contributed significantly to the dollar crisis."  

https://baghdadtoday.news/254943-خبير-مالي-يشخص-خطأً-فادحاً-في-النظام-المصرفي-العراقي-عاجل.htm l  

Imposing Guardianship On Zain Iraq Bank Reveals The Extent Of The Deterioration In The Banking Reality
 
August 6, 2024 Last updated: August 6, 2024 Independent/- The Central Bank of Iraq placed the “Zain Iraq Islamic Bank” under guardianship, in a step that reflects the improper practices and unsatisfactory performance of the bank’s management, which threatens the independence and integrity of the Iraqi banking system.
 
According to an official document obtained by Al-Independent, the decision of the Board of Directors of the Central Bank, No. 165 of 2024, was issued in accordance with the provisions of Article 59 of the Iraqi Banking Law No. 94 of 2004.
 
Jalal Abdullah Salman was appointed as trustee of the bank, in accordance with the provisions of Article 60 of the same The law, and is granted the powers specified in accordance with this decision. faces
 
The banking reality in Iraq major challenges that negatively affect the stability of the financial system and investor confidence.
 
These challenges include mismanagement of some banks and their lack of transparency and good governance.
 
The recent decision to impose guardianship on Zain Iraq Islamic Bank reflects the weakness of the supervisory procedures and internal controls in this bank.
 
The Central Bank of Iraq is the body responsible for supervising the banking system and ensuring its stability.
 
However, criticism is growing about the effectiveness of this oversight and its ability to detect and prevent financial abuses in a timely manner.
 
The decision to impose guardianship on the “Zain Iraq Islamic Bank” indicates the delay in supervisory intervention, which raises questions about the feasibility of the preventive measures taken by the Central Bank.
 

Oversight of banks and the Central Bank must not be limited to them alone, but the
 
Iraqi Council of Representatives must have an effective role in following up and monitoring financial and banking performance.
 
However, the House of Representatives' oversight role appears weak and often ineffective, leaving the door open to further violations and improper practices.
 
The absence of parliamentary oversight contributes to the exacerbation of financial problems and weakens confidence in the Iraqi financial system.
 
In conclusion, the decision to impose guardianship on “Zain Iraq Islamic Bank” reflects the urgent need for radical reforms in the banking system and strengthening financial oversight by the responsible authorities.
 
It requires joint cooperation between the Central Bank, banks, and the House of Representatives to ensure the stability and safety of the financial system in Iraq.  https://mustaqila.com/مصرف-زين-العراق/  

The Governor Of The Central Bank Chairs The Meeting Of The Supervisory Committee On The Restructuring Process Of Rafidain Bank

 August 05, 2024   The supervisory committee for the restructuring process of Rafidain Bank met under the chairmanship of His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, and in the presence of the committee members from the Ministry of Finance and the advisors of the Prime Minister and the advanced staff at the Central Bank of Iraq, as well as the presence of the international consulting company (Ernst & Young). Ernst & Young).

 The progress of work on the plan adopted by the government was reviewed in coordination with the Central Bank within the framework of the expanded program to reform the banking sector, improve its performance and services, and achieve financial stability.

 The attendees discussed the process of organizing the administrative, financial and technical structure of Rafidain Bank, to move towards the best global banking practices.

  It is worth noting that the aforementioned committee holds a monthly meeting under the chairmanship of the Prime Minister to provide a presentation on the steps taken and to monitor the progress of the process and provide guidance regarding it.

Central Bank of Iraq    information Office     August 5, 2024  https://cbi.iq/news/view/2631    

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

MilitiaMan: Iraq Dinar Update-Central Bank of Iraq-Action-Security-Stability-transparency-Exchange Rates-USD-IQD

Iraq Dinar Update-Central Bank of Iraq-Action-Security-Stability-transparency-Exchange Rates-USD-IQD

MilitiaMan and Crew:  8-5-2024

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

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

https://www.youtube.com/watch?v=hFkyOQ2wsmI

Seeds of Wisdom RV and Economic Updates Monday Evening 8-5-24

Good Evening Dinar Recaps,

Three-Quarters of Banks Face Digital Banking Infrastructure Issues

The banking industry is experiencing a seismic shift as agile, digital-native FinTechs capture an ever-growing share of the market. 

Burdened by outdated technology, traditional financial institutions face mounting challenges in delivering modern digital services. 

The growing dominance of FinTechs — securing nearly half of all new account openings — highlights the urgency for banks to modernize their infrastructure.

With consumer expectations rapidly evolving toward seamless digital experiences, banks must navigate the high costs and complexities of updating their core systems. 

Exploring incremental modernization through application programming interfaces (APIs) may offer a viable path forward, enabling banks to enhance their digital capabilities and remain relevant in an increasingly competitive landscape.

A recent PYMNTS Intelligence Report, “Core Strength: FIs Must Modernize to Meet the FinTech Challenge,” in collaboration with Galileo, highlights the urgent need for traditional financial institutions to overhaul their outdated systems to keep pace with digital-native competitors. 

The report reveals that 75% of banks struggle with implementing new digital solutions due to their legacy infrastructure, underscoring the critical nature of modernization efforts. 

As FinTechs continue to capture a growing market share, banks face mounting pressure to adopt agile technologies and innovative approaches.

@ Newshounds News™

Read more:  PYMNTS   

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The crypto market has just witnessed its largest three-day sell-off in 12 months amid weak jobs data in the US and revived fears of a recession.

The crypto market has just clocked its most significant three-day sell-off in almost a year, shedding as much as $510 billion from its total market capitalization since Aug. 2.

The sharp crypto sell-off arrived amid faltering equities performance, with the S&P 500 falling as much as 4.4% in the same time frame.

The market stumble has been led by weak employment data, slowed growth among major tech stocks and revived fears of a recession.

Several major companies, including Microsoft and Intel, posted lower-than-expected second-quarter results, and market leader Nvidia was battered by expectations of impending rate cuts in September, which has seen capital flow back into smaller, lagging companies.

The total crypto market capitalization fell by $314 billion on Aug. 5. Source: TradingView

The last time crypto sold off this sharply over a three-day period was in mid-August of 2023.

BTC and ETH are down 20% and 28%, respectively, in the last seven days.

Layer-1 network Solana’s has been the hardest-hit cryptocurrency among the top 10 largest tokens by market cap, falling 30.6% since July 30.

The Crypto Fear & Greed Index — an indicator that tracks market sentiment toward Bitcoin and crypto — has fallen back into “fear” and currently displays a score of 26 at the time of publication, according to Alternative.me.

@ Newshounds News™

Read more:  Coin Telegraph

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Amazon Founder Jeff Bezos sold $1.65 billion worth of $AMZN at the exact top - man deserves a round of applause for these trades!

@ Newshounds News™

Read more:  Twitter

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Why do I hold $XRP? This video should make it clear.

WATCH THE VIDEO IMBEDDED IN THIS TWEET.  WORTH 2 MINUTES.

@ Newshounds News™

Listen Here:  Twitter 

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Japan's three largest financial companies have lost $85 billion in market value over the past two trading days.

Read that again.

History…

@ Newshounds News™

Read more:  Twitter

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Seeds of Wisdom RV and Economic Updates Monday Afternoon 8-5-24

Good Afternoon Dinar Recaps,

Blockchain and Nation-State Infrastructure: Why Bother?

" Financial titans like JP Morgan, Standard Chartered, HSBC, and Goldman Sachs are diving deep into blockchain, spurred on by the SEC’s approval of spot Bitcoin and Ether ETFs and BlackRock’s tokenization initiatives.

However, participation from legacy organizations brings with it a growing risk of reproducing the same kinds of centralized structures that blockchain set out to dismantle. 

Additionally, greater involvement from traditional finance attracts stronger regulatory frameworks and more regimented policy structures from nation-state institutions, which risks stifling innovation and limiting the autonomy of our blockchain networks. So, why bother?"

"Not long ago, these financial giants were the loudest critics of crypto’s credibility and efficacy. For context, in 2017, the CEO of JPMorgan Chase famously declared, “BITCOIN IS A FRAUD”.

 In this era of heavy skepticism, financial governance in the U.S. looked down its nose at this whole ecosystem—if it even dared to look at all. 

Yet now, as the two start to realize the potential upside of Wall Street ETFs, we seem incredibly eager to shine a light on their arrival. 

We need to ask ourselves if these major private and public players can be trusted with the future of blockchain ecosystems when they have, for years, continued to struggle with the provision of clear and feasible regulatory frameworks."

"It’s still unclear if digital assets are SECURITIES or COMMODITIES, leading to endless lawsuits and regulatory headaches for major exchanges in the US. These opaque rules and guidelines have fostered a mass jurisdictional exodus, as companies look for legal respite to innovate in other places. "

"To circumvent these centralized points of failure, we need to continue building permissionless and trustless systems that can’t be taken down by the state, regulator, or any one owner.

Decentralized, open-source zero-knowledge (zk) bridges may not be a silver bullet, but they offer a more promising and equitable future. 

Distributed, anonymous, and autonomous, these bridges can operate with minimum governmental interference and therefore maximum freedom, empowering participants to move assets freely and generate proofs locally and economically."

"This allows for true interoperability, giving protocols sovereign control without the heavy hand of regulatory requirements. It also makes these bridges nation-state-resistant: if a given bridge provider is regulated out of existence or prosecuted, users can continue bridging using the decentralized infrastructure."

"In this vision, protocols would enjoy greater freedom, with no unnecessary requirements, no user flow restrictions, and no extra security vulnerabilities. Crypto would again become a space where no single country, company, or party has an unfair advantage, effectively returning to the decentralized spirit at the heart of blockchain."

"Imagine instead a world where thousands of blockchains communicate seamlessly—a future where fragmented liquidity becomes a cohesive, high-performance ecosystem.

This vision is within reach. We are on the cusp of making blockchain as efficient and interconnected as the internet itself.

Decentralized, horizontal scalability is the only way forward, making crypto truly useful for the wider global community."

@ Newshounds News™

Read more:  Bitcoin

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Cambodia’s Bakong DIGITAL CURRENCY helps address DOLLARIZATION

ANOTHER ARTICLE HIGHLIGHTING THE FACT THAT COUNTRIES ARE CONTINUING DOWN THE PATH TO DE-DOLLARIZE AND RETURN TO LOCAL CURRENCIES.

THIS TREND IS HAPPENING ALL AROUND THE WORLD AND SEEMS TO BE A STRATEGIC PLAN TO BRING IN A GLOBAL FINANCIAL SYSTEM.

"Cambodia has been a heavily dollarized country since it returned to civilian rule in the early nineties. Roughly 80% of transactions are in US dollars. Prior to becoming the Governor of the National Bank of Cambodia, Chea Serey spearheaded the launch of the Bakong digital currency payment system in 2020.

A key aim was to encourage a higher proportion of transactions in the local riel rather than dollars. Based on figures for the first half of 2024, that strategy looks like it’s working."

"Bakong has been a huge success. By the end of last year, the central bank said there were ten million wallets out of a 17 million population. While often described as a central bank digital currency (CBDC), Bakong is closer to a tokenized deposit initiative with the Bakong currency backed by balances at commercial banks."

"One of the key tactics to encourage use of the LOCAL CURRENCY is to only support cross border payments using riel. Bakong has existing cross border payment arrangements for Bakong with Thailand, Laos and Vietnam and is expanding its collaborations with China, Japan, India, Korea, Singapore and Malaysia.

 Late last year it partnered with Alipay+, the international arm of the dominant Chinese wallet. Additionally, it’s encouraging local retailers to quote prices in riel."

"There’s another reason the strategy is working. With a prudently managed economy, the riel can hold its own in the foreign exchange markets. It has an unofficial peg of 4000 riel to the dollar, which it has managed to more or less hold for the past 20 years. 

During the past ten years it has varied by less than 5%. Given the decline in the US dollar in the last few days, the riel has now slightly appreciated against the dollar over the past year. Other currencies in the region such as the Thai Baht, have depreciated a little."

@ Newshounds News™

Read more:  Ledger Insights

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USD/JPY Forecast – US Dollar Continues to Drop Against The Yen

The USD/JPY pair fell hard in the early hours on Monday, as the trading world continues to unwind the overall carry trade, and the Fed is looking more and more likely to cut rates later this year. Ultimately, this is a market that I think will continue to see more and more volatility.

@ Newshounds News™

Read more:   FX Empire   

~~~~~~~~~

IMPORTANT RIPPLE (XRP) UPDATE

“Ripple USD will be fully backed by a segregated reserve of cash and cash equivalents and redeemable 1:1 for US dollars,” the announcement reads.

▪️Ripple plans to launch a stablecoin called Ripple USD (RLUSD) by the end of 2024, available on XRP Ledger and Ethereum. It promises benefits like deep liquidity for certain trading pairs, instant settlements, and programmable finance.

▪️The SEC has criticized RLUSD as an “unregistered crypto asset,” continuing its ongoing legal battle with Ripple since 2020.

More Attention to RLUSD
Ripple made waves earlier this year when it revealed that it would introduce a stablecoin pegged to the American dollar. At the time, CEO Brad Garlinghouse stated that the product would serve as a bridge between traditional finance and the cryptocurrency industry.

Ripple’s team has still not provided an exact date for the stablecoin’s official release. However, they explained it will be available on the XRP Ledger and Ethereum and should go live before the end of 2024. The team also revealed that the stablecoin will be called Ripple USD (ticker RLUSD).

Most recently, the product was added to the company’s official website, meaning its launch could be just around the corner. “

Ripple USD (RLUSD) is being designed to maintain a constant value of one US dollar. Issued on XRP Ledger and Ethereum blockchains, Ripple USD will be fully backed by a segregated reserve of cash and cash equivalents and redeemable 1:1 for US dollars,” the section reads.

Ripple’s team argued that RLUSD would provide certain benefits, such as deep liquidity for selected trading pairs on centralized exchanges, instant settlements, and programmable finance.

The Clash With the SEC
The upcoming stablecoin has already become a subject of controversy, receiving criticism from the US Securities and Exchange Commission (SEC). Several months ago, the regulator labeled it an “unregistered crypto asset.”

This is not the first confrontation between Ripple and the SEC. The agency sued the firm in December 2020, accusing it and some of its executives of illegally raising more than $1.3 billion by selling XRP in an unregistered security offering.

The legal battle passed through multiple developments in the following years, becoming one of the hottest topics in the crypto space. It reached its trial stage in April 2024, meaning a resolution could be announced anytime.

Some industry participants view the SEC as the underdog in the dispute, pointing to Ripple’s three partial court wins secured throughout 2023. XRP’s price reacted positively to each of those, and it will be interesting to see how it performs once the case is officially closed.

@ Newshounds News™

Read more:  Crypto Potato

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Crypto Market Crash Aside: 3 Things to Watch This Week

Things couldn’t get much worse for crypto markets following their largest retreat for more than a year. However, this week’s economic calendar in the US is slow which could limit further volatility.

Crypto markets have fallen below $2 trillion total capitalization in a massive double-digit crash, the likes of which have not been seen for at least a year.

Stock markets in Asia are also reeling this Monday morning following a tech stock rout in the United States late last week.

Economic Calendar August 5 to 9
Monday, we will see July’s final S&P services PMI (purchasing managers index), which provides a snapshot of business conditions in the services sector in the United States.

The ISM services report is also due, which will provide economic indicators for service based on surveys of supply management professionals. Changes in ISM and PMI reports often precede changes in the wider economy.

Thursday has initial jobless claims data, which indicate employment and labor markets in the United States and have a wider impact on the economy.

This week’s light economic events calendar will not have much impact on markets as they are already in freefall.

Economists are forecasting more economic doom and gloom. “All in, we have an economic slowdown for sure, with a high probability that a recession is approaching,” reported Forbes over the weekend.

Crypto Markets Bleed $280B
Crypto markets have dumped a further $280 billion over the past 12 hours resulting in a daily slump of around 13%.

This has dropped total market capitalization back to $1.94 trillion, its lowest level since February. Digital asset markets have dumped more than 20% over the past week as sentiment shifts to bearish.

Bitcoin led the declines with a slump to under $50,000 during the Monday morning Asian trading session. The asset has lost 13% over the past 24 hours in its largest and fastest fall for more than a year.

Ethereum fared even worse, tanking a whopping 21% on the day to $2,200, its lowest level since January.

The altcoins are a sea of red this morning, with most dumping double digits as crypto markets wipe out nearly all gains made in 2024 in the space of a couple of days.

@ Newshounds News™

Read more:  Crypto Potato

~~~~~~~~~

IRAQ Central Bank Governor comments on DOLLAR EXCHANGE and FOREIGN REMITTANCES

"Ali Al-Alaq, governor of the Central Bank, discussed the value of remittances sent abroad and the value of the dollar."

"Al-Alaq said in a proclamation got uninvolved of his facilitating in the Place of Delegates that “our unfamiliar cash holds are adequate to make balance on the lookout,” demonstrating that “the National Bank offers in excess of 250 million bucks everyday to meet the necessities of unfamiliar exchange.”

He added, “85% of unfamiliar exchanges are as of now occurring between Iraqi banks and reporter banks WITHOUT GOING THROUGH the US Central bank,” making sense of that “the lodging drive is vital to the bank.”

He explained that “the Central Bank is now heading to cover the financing of the construction of 32 thousand housing units” and that “the volume of loans granted within the real estate initiative amounts to 10 trillion dinars.”

@ Newshounds News™

Read more:  Dinar Opinions

~~~~~~~~~

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Iraq Economic News and Points To Ponder Monday Afternoon 8-5-24

After Sanctions.. A New American Step Towards Iraqi Banks

Buratha News Agency652024-08-05  The United States of America did not stop at punishing some Iraqi private banks by preventing them from participating in the currency auction held by the Central Bank of Iraq daily to sell the dollar, but the US Treasury Department recently returned and informed it of the need to merge and close some of those banks, thus deciding their fate after many suspicions had been raised about them.

Four Iraqi private banks were subjected to sanctions during the past period, most notably the Middle East Bank owned by businessman Ali Ghulam, who arrived in Iraq on November 19, 2022 and was arrested at Baghdad International Airport, based on an arrest warrant issued against him in accordance with Article 456, and then released on bail.

Informed sources say, "The Iraqi delegation that visited the United States of America a few days ago, headed by Foreign Minister Fuad Hussein, Central Bank Governor Ali Al-Alaq, and Prime Minister's Advisor Kazim Al-Hassani, discussed with the US Treasury and the Federal Reserve the issue of restricting the dollar from Iraqi banks."

The sources added that "the US Federal Reserve recently requested from its Iraqi counterpart a plan to reform the banks restricted from using the dollar, which includes closing a number of them and establishing new banks through a coalition of a number of banks among themselves."

She stressed that "the Federal Bank suggested to its Iraqi counterpart to seek the assistance of an international company to present a broad reform plan for the banking sector, and in the coming months this company will submit its report on the banking sector to the Central Bank and the Iraqi government."

The sources noted that "the Federal Bank wants to reduce the number of Iraqi banks from 72 to less than 40 banks during the current phase."

The US Treasury and the US Federal Reserve had previously restricted the dollar's access to 32 Iraqi private banks, through four stages starting in 2022. The companies restricted from using the dollar in Iraq also reached more than 250 companies, most notably "Fly Baghdad" Airlines.

In turn, a banking official, who refused to reveal his name, explained that “the banking market has become monopolized by five banks, which makes it difficult for other banks to compete with them. Therefore, forming a coalition of five banks, one of which is a foreign bank, will contribute to reducing the monopoly in the banking market and increase competition.”

He stressed that "reforming restricted banks will be through restructuring them, starting with changing ownership, employees, developing risk management departments, combating money laundering and terrorist financing, and others."

The banking official stresses that "at the end of this year, the Central Bank of Iraq will cancel the dollar transfer platform, and will rely on banks that have intermediary banks. During the coming month of September, a meeting will be held between the Central Bank of Iraq and the Federal Reserve in America, which will include presenting the Central Bank's plan to reform the sector."

The United States is working to prevent the Iranian government and private sector companies from using the dollar, so it has begun to restrict its access to some Iraqi banks accused of leaking the dollar.

For his part, economic researcher Mustafa Akram Hantoush believes that “merging banks is a very excellent step, and will contribute to reducing the number of banks operating in the country. Banks that have been in trouble for years must also be closed.”

Hantoush points out that "the Central Bank of Iraq bears part of what happened in the Iraqi banking sector, because it is unable to confront the US Treasury or the Federal Reserve."

He points out that "there are good banks that have been restricted by the United States of America, and the Central Bank of Iraq must defend them and return them to work because the Iraqi banking sector is being massacred in favor of foreign banks."

In November 2022, the US Treasury representative met with representatives of 35 Iraqi private banks to warn them of issues of smuggling dollars from Iraq and adhering to instructions regarding hard currency transfers for import purposes, threatening them with sanctions in the event of non-compliance.

It is worth noting that the meeting was held in the absence of the Central Bank of Iraq, and lasted for two hours, according to leaked information.

It is noteworthy that the Iraqi banking sector is also neglected by citizens who have lost confidence in it. According to World Bank figures issued last year, only 23 percent of Iraqi families have an account in a financial institution, which is one of the lowest percentages in the Arab world, especially since the owners of these accounts are government employees whose salaries are distributed to public banks at the end of each month.

However, these salaries also do not remain in the accounts for long, as queues quickly form in front of banks from employees who withdraw their salaries in cash and prefer to keep them at home.   https://burathanews.com/arabic/economic/449413

Al-Sudani And Allawi Discuss The General Situation, The Government's Efforts And Its Serious Steps To Achieve Economic Reform

Sunday 04, August 2024 19:04 | Politics Number of readings: 96  Baghdad / NINA / Prime Minister Mohammed Shia Al-Sudani received today, Sunday, former Prime Minister, head of the Iraqi National Accord Party, Iyad Allawi.

The meeting witnessed, according to a statement by the Prime Minister's Office, discussing the general situation in the country, and discussing the government's efforts and serious steps to achieve economic reform, which is the basis for developing all vital sectors, and improving the economic and living conditions of citizens throughout Iraq. Al-

Sudani and Allawi touched on the situation in the region, and the challenges it faces in light of the increasing pace of bloody attacks by the Zionist occupation authorities against the Palestinian people in Gaza, and emphasizing the sovereignty of Iraq, and its security, which is a gateway to the security and stability of the region. /https://ninanews.com/Website/News/Details?key=1145636

Central Bank Governor Explains Reasons For Dollar Price Fluctuations: 85% Of Remittances Do Not Pass Through The US Federal Reserve

Economy | 04/08/2024  Mawazine News – Baghdad  The Governor of the Central Bank, Ali Mohsen Al-Alaq, revealed today, Sunday, the reasons for the fluctuation of the dollar price, noting that 85% of transfers do not pass through the US Federal Reserve.

A statement by the Parliament's media department received by (Mawazine News) stated that "the governor of the Central Bank provided a full briefing on the reasons for the fluctuation of the exchange rate, the mechanism of the electronic platform and its role in controlling internal and external trade, in addition to the housing initiative file, US sanctions on Iraqi banks, and the status of the foreign currency reserve at the Central Bank." Al-Alaq explained, according to the statement, that "Iraq's foreign currency reserve is sufficient to create balance in the market," indicating that "the Central Bank sells more than $250 million daily to meet the requirements of foreign trade." https://www.mawazin.net/Details.aspx?jimare=252729

Al-Alaq: Our Foreign Exchange Reserves Are Sufficient To Create Balance In The Market

Governor of the Central Bank of Iraq Ali Al-Alaq 

Banks  Economy News – Baghdad  Central Bank Governor Ali Mohsen Al-Alaq confirmed on Sunday that our foreign currency reserves are sufficient to create balance in the market.

The media office of the head of the Finance Committee in the House of Representatives stated in a statement, which was reviewed by "Al-Eqtisad News", that "the Governor of the Central Bank, Ali Mohsen Al-Alaq, provided a full briefing during his hosting of the Finance Committee on the reasons for the fluctuation of the exchange rate, the mechanism of the electronic platform and its role in controlling internal and external trade, the housing initiative file, US sanctions on Iraqi banks, and the status of the cash reserve of hard currencies at the Central Bank of Iraq."

Al-Alaq stated, according to the statement, that "our reserve of hard currency is sufficient to create balance in the market," indicating that "the Central Bank sells more than 250 million dollars daily to meet the requirements of foreign trade," indicating that "85 percent of foreign transfers are currently taking place between Iraqi banks and correspondent banks, without going through the US Federal Reserve."

He pointed out that "the housing initiative is of great importance to the bank, and that the volume of loans granted within the real estate initiative amounts to 10 trillion dinars," adding that "the Central Bank is now heading to cover the financing of the construction of 23,000 housing units, and priority will be given to completed residential complexes." - https://economy-news.net/content.php?id=45911

With The Document.. The Central Bank Of Iraq Imposes Guardianship Over Zain Iraq Islamic Bank

Monday 05 , August 2024 12:46 | Economic Number of readings: 151  Baghdad / NINA / The Central Bank of Iraq issued an administrative decision to impose guardianship on Zain Iraq Islamic Bank. / End 9   https://ninanews.com/Website/News/Details?key=1145790

Meeting At The Central Bank Of Iraq To Restructure Rafidain Bank

Monday 05 , August 2024 14:26 | Economic Number of readings: 236  Baghdad / NINA / The Central Bank of Iraq announced today, Monday, that its governor chaired a meeting of the Supervisory Committee for the Restructuring of Rafidain Bank.

The bank stated in a statement that "the Supervisory Committee for the Restructuring of Rafidain Bank met under the chairmanship of the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, and in the presence of committee members from the Ministry of Finance and advisors to the Prime Minister and senior staff at the Central Bank of Iraq, in addition to the presence of the global consulting firm (Ernst & Young)."

He added, "The progress of work on the plan adopted by the government in coordination with the Central Bank was reviewed within the framework of the expanded program to reform the banking sector and improve its performance and services and achieve financial stability," indicating that "the attendees discussed the process of organizing the administrative, financial and technical structure of Rafidain Bank, to move towards the best global banking practices."

It is worth noting that the aforementioned committee holds a monthly meeting headed by the Prime Minister to present a presentation on the steps completed and to monitor the progress of the process and provide guidance on it. / https://ninanews.com/Website/News/Details?key=1145818

Central Bank: Restructuring Of Rafidain Bank Continues

Banks  The Supervisory Committee for the Restructuring of Rafidain Bank met, headed by the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, and attended by members of the committee from the Ministry of Finance, advisors to the Prime Minister, and senior staff at the Central Bank of Iraq, in addition to the presence of the global consulting firm (Ernst & Young).

The progress of the plan adopted by the government in coordination with the Central Bank was reviewed within the framework of the expanded program to reform the banking sector, improve its performance and services, and achieve financial stability.

The attendees discussed the process of organizing the administrative, financial and technical structure of Rafidain Bank, to move towards the best international banking practices.

It is worth noting that the aforementioned committee holds a monthly meeting headed by the Prime Minister to present a presentation on the steps taken, monitor the progress of the process, and provide guidance on it.  157 views   08/05/2024 - https://economy-news.net/content.php?id=45930

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

Economist’s “Market Crash News and Views” 8-5-2024

40% Stock Market Crash is Here with Simon Hunt

WTFinance:  8-5-2024

On this episode of the WTFinance podcast I had the pleasure of welcoming back Simon Hunt.

 During our conversation we spoke about the risk of a market crash in 2024, BRIC's currency, Global Cold/Hot War, financial system crisis and more.

 I hope you enjoy.

 0:00 – Introduction

 1:52 - Market crash in 2024?

9:01 - Control over the heartland?

 13:13 - BRIC’s currency

19:30 - Republicans to cut spending?

21:16 - South China Sea

27:18 - Cold vs hot world war?

 31:24 - Financial system correction?

34:09 - One message to takeaway from our conversation?

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

Bloodbath: US Economic Panic Begins As Japan’s Soaring Currency Detonates The Stock Market

Sean Foo:  8-5-2024

As Japan suffers a massive stock sell-off, the US economy is getting hit hard as the Yen carry trade begins to blow up.

US stocks is on the verge of a nasty sell-off and the recession risks are now getting frighteningly real. Here's what you must know.

Timestamps & Chapters:

 0:00 Japan In Freefall Collapse

 2:38 Economy Breaking, Massive Sell-Off

 5:31 Carry Trade Blows Up & Collapses Markets

7:33 Sponsor: Indigo Precious Metals

8:58 USD Falling Hard

9:39 US Market Dump Big Risk

12:23 Recession Shock Risk

https://www.youtube.com/watch?v=KT4UI9kQErk

*‘Market Is Broken’: How To Survive When ‘All Hell Breaks Loose’ | Chris Vermeulen

David Lin:  8-5-2024

Chris Vermeulen, Chief Market Strategist of TheTechnical Traders.com, discusses Monday's market sell-off and what's next.

0:00 - Market reaction

 3:00 - Buy the dip?

7:42 - Stage 3 Topping Phase

12:47 - Trading psychology

 18:41 - Bear market indicators

 21:35 - Repeat of 2022?

24:53 - Recession fears

27:45 - Safe haven

31:05 - Emergency rate cut?

 32:20 - Yen

https://www.youtube.com/watch?v=Uhep234wfIg

“Tidbits From TNT” Monday 8-5-2024

TNT:

Tishwash:  Al-Alaq: The Central Bank is moving towards covering the financing of the construction of 23 thousand housing units

The Governor of the Central Bank, Ali Al-Alaq, confirmed today, Sunday, that the priority of financing will be for residential complexes ready for housing.

A statement by the bank received by / Al-Maalouma / said that "the Governor of the Central Bank visited the Real Estate Bank to study and process citizens' delayed loan requests."

The statement added that "the Governor of the Central Bank confirmed that the priority of financing will be for residential complexes ready for housing."  link

Tishwash:  Al-Sudani discusses with Allawi the government's efforts and serious steps to achieve economic reform

Prime Minister Mohammed Shia Al-Sudani received today, Sunday, former Prime Minister and head of the Iraqi National Accord Party, Iyad Allawi.

The government statement, a copy of which was received by {Euphrates News}, stated: “The meeting witnessed a discussion of the general conditions in the country, and a discussion of the government’s efforts and serious steps to achieve economic reform, which is the basis for developing all vital sectors, and improves the economic and living conditions of citizens in all parts of Iraq.”

He pointed out that "the meeting addressed the situation in the region and the challenges it faces in light of the increasing frequency of bloody attacks by the Zionist occupation authorities against the Palestinian people in Gaza, and the emphasis on Iraq's sovereignty and security, which is a gateway to the region's security and stability."  link

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

Tishwash:  Central Bank Governor: Our foreign exchange reserves are sufficient to create balance in the market

The Governor of the Central Bank, Ali Mohsen Al-Alaq, confirmed today, Sunday, that our foreign currency reserves are sufficient to create balance in the market. The media office of the head of the Finance Committee in the House of Representatives said in a brief statement received by Al-Mutalaa, that "the Governor of the Central Bank, Ali Mohsen Al-Alaq,

provided a full briefing during his hosting of the Finance Committee on the reasons for the fluctuation of the exchange rate, the mechanism of the electronic platform and its role in controlling internal and external trade, the housing initiative file, US sanctions on Iraqi banks, and the status of the cash reserve of hard currencies at the Central Bank of Iraq."

Al-Alaq stated, according to the statement, that "our reserve of hard currency is sufficient to create balance in the market," indicating that "the Central Bank sells more than $ 250 million daily to meet the requirements of foreign trade," indicating that "85 percent of foreign transfers are currently taking place between Iraqi banks and correspondent banks, without going through the US Federal Reserve."

He pointed out that "the housing initiative is of great importance to the bank, and that the volume of loans granted within the real estate initiative amounts to 10 trillion dinars," adding that "the Central Bank is now heading to cover the financing of the construction of 23,000 housing units, and priority will be given to completed residential complexes."  link

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

Tishwash:  Al-Atwani: Exchange rate stability is a central issue for the state

The head of the Finance Committee in the House of Representatives, Atwan Al-Atwani, confirmed on Sunday that the stability of the exchange rate is a central issue for the state, while he pointed out that the housing initiative achieved positive results.

The media office of the head of the Finance Committee in the House of Representatives stated in a statement, which was reviewed by "Al-Eqtisad News", that "Al-Atwani chaired the committee meeting that hosted the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, to ​​discuss the monetary policy file in the country."

He added that "the meeting reviewed a number of issues, most notably the issue of the electronic platform and the procedures related to it in order to facilitate work and economic stability, in addition to the issue of banks and the mechanism for developing the money transfer process."

He continued that "the meeting witnessed important interventions by committee members on banks' initiatives to provide real estate and housing loans, and ways to facilitate procedures and ease conditions for citizens in the process of applying for housing units in complexes."

Al-Atwani stressed, according to the statement, that "the widening gap between the official price of selling the dollar and the parallel market price creates a state of economic and financial instability," stressing that "the stability of the exchange rate is a central issue for the state."

The head of the Finance Committee noted that "there is a duality in the issue of imposing US sanctions between Iraqi banks and correspondent banks, which requires the Central Bank of Iraq to move effectively and address this crisis, in addition to tightening control over the work of private banks, in a way that ensures the integrity of all their procedures and work."

Al-Atwani added that "the housing initiative has achieved positive results, and therefore we are pushing towards supporting and continuing it in order to expand the list of those covered by housing loans, and contribute to resolving this crisis."

He continued that "the stability of the monetary market has a direct impact on the general financial situation," adding that "the labor market is unstable in terms of selling currency, which casts a shadow over the general monetary situation."  link

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Mot: . Beeeeeeeeee Honest!! -- Ya Did!! - HUH!!! 

Mot: Two Weeks Notice

Iraq Economic News and Points To Ponder Monday AM 8-5-24

What Is The Relationship Between The Rise In The Price Of The Dollar And The Restriction Of Its Sale To Travelers At The Airport? Expert Elaborates
 
08/04/2024 Read: 1,547 times  {Economic: Al-Furat News} The economic expert and director of the Financial Supervision Bureau, Salah Nouri, separated the relationship between the rise in the exchange rates of the dollar by restricting its sales to travelers at the airport.  Nouri told {Al-Furat News} agency,
 
“The reasons for the current rise in the price of the dollar are likely to be limited to selling the dollar to travelers at the airport, which was in banks outside the airport based on the passport and travel card, which makes it possible to obtain the travel amount and did not travel,” pointing out that
 
“Regulatory procedures for foreign remittances are still ongoing by the Central Bank and have not stabilized, which has made importing merchants hesitant.”  

He pointed out that "the main reason is still the position of the US Federal Reserve towards some countries, monitoring trade with them, and preventing transfers to them through banks.
 
In general, these reasons led to anticipation and waiting on the part of importing merchants, which led to stagnation."  Nouri added,
 
"According to following up on the statements of the Central Bank, regulating foreign transfers takes a short period, but the
 
difference remains between the official price and the parallel market price due to trade with some countries, not through the banking system."    https://alforatnews.iq/news/ما-علاقة-ارتفاع-سعر-الدولار-بحصر-بيعه-للمسافرين-في-المطار؟؟-خبير-يفصل   

Parliament Hosts The Governor Of The Central Bank To Discuss The Exchange Rate
 
Policy     2024-08-04 | 786 views Alsumaria News – Politics  A parliamentary source revealed today, Sunday, that  Parliament is today hosting the Governor of the Central Bank, Ali Al-Alaq, to ​​discuss the exchange rate.   
 
The source said in an interview with Al-Sumaria News, “The Finance Committee will host the Governor of the Central Bank at the Parliament session today, Sunday.”  The source added,
 
"The focus of hosting the Central Bank Governor is to discuss the gap between the official price of the dollar and the price in the parallel market."   https://www.alsumaria.tv/news/politics/496135/البرلمان-يستضيف-محافظ-البنك-المركزي-لمناقشة-سعر-الصرف   

The US Treasury Imposes Control Over The Central Bank Of Iraq To Combat Money Laundering
  
August 3, 2024  Al-Independent/- Three informed sources close to political and parliamentary decision-making in Baghdad revealed extremely dangerous information confirming that the US Treasury Department has taken a permanent headquarters in the building of the Central Bank of Iraq.
 
They believe that this step came as a result of great pressure on the Iraqi banking system with the aim of reducing money laundering and dollar smuggling operations, as the
 
governor of the Central Bank was forced to allocate an entire floor to the US Treasury departments to monitor money transfer operations and prevent any illegal activities.

The three sources confirmed that a team of American employees is working permanently at the Central Bank of Iraq, as part of intensive efforts to ensure Iraq’s compliance with international standards for combating money laundering and terrorist financing.  The sources stressed that the
 
Iraqi banking sector is suffering from increasing pressure exerted by the US Treasury to prevent the smuggling of dollars to countries such as Iran, Russia and Syria, which face economic sanctions.  One source explained that the Governor of the
 
Central Bank of Iraq tried to resist these restrictions,
 
but the American response was strict, as the
 
Central Bank of Iraq was included among the institutions considered supportive of money laundering operations and non-compliance with sanctions.
 
In previous reports, it was revealed that the severe sanctions imposed by the US Treasury on several Iraqi banks, on charges of involvement in money laundering and dollar smuggling operations.
 
The policy of the Central Bank of Iraq is characterized by randomness and the absence of a clear strategic plan to protect Iraqi funds from smuggling, which
 
prompted the US Treasury Department to impose strict and direct supervision on the Central Bank and Iraqi banks.
 
Iraqi banks are currently subject to careful evaluations under the supervision of the US Department of the Treasury, which includes monitoring all banking operations and money transfers.
 
This situation reflects the great challenges facing the Iraqi banking system in light of persistent attempts to reform it and improve its image before the international community.
 
On the other hand, Prime Minister Muhammad Shiaa Al-Sudani repeatedly sought to ease these measures, trying to reach understandings with the American side.
 
But there is strong resistance from Washington, which insists on correcting the course of the economic process and reforming the banking system in Iraq.

The Sudanese finds himself in a difficult situation, as he must balance internal pressures and international demands.
 
In a broader context, the current situation reflects the complexity of the relationship between Iraq and the United States in the financial and banking field.  
 
As Iraq seeks to preserve its sovereignty and independence of its banking system, the
 
United States continues to exert pressure to ensure that the Iraqi banking system is not used to finance illicit activities.     https://mustaqila.com/البنك-المركزي-العراقي-2/    

Central Bank Governor: We Will Not Go To Reduce The Dollar Exchange Rate Now

Time: 08/04/2024 15:22:32 Read: 2,860 times {Economic: Al-Furat News} Member of the Parliamentary Finance Committee, Ikhlas Al-Dulaimi, confirmed that the Governor of the Central Bank, Ali Al-Alaq, confirmed that

“there will no longer be a reduction in the dollar exchange rate.”

Al-Dulaimi said in a press statement that

 “the price of the dollar has stabilized somewhat, and may rise and fall within certain limits,” indicating:

 “We will not currently go to reduce the price of the dollar, as the Governor of the Central Bank said, given that there are other measures that have not been taken.”  She warned that

 "the security repercussions that occurred recently and the problems between Iran and America could have repercussions on some banks and the price of the dollar." 

She explained that   "the Ministry of Finance is demanding financing, and the matter has not yet been resolved, and  it is one of the reasons for hosting the Governor of the Central Bank today, as  there were answers and he will soon send other answers."

 Today, Sunday, the Parliamentary Finance Committee hosted the Governor of the Central Bank to follow up on the

      exchange rate file, the

     Real Estate Bank initiative, the

     auction file, and

     financing foreign trade.

 It is noteworthy that the exchange rate of the dollar in the parallel market is about 1,490 dinars, while the Central Bank of Iraq sells the dollar at the official price of 1,320 dinars. https://alforatnews.iq/news/محافظ-البنك-المركزي-لن-نذهب-الى-خفض-صرف-الدولار-حالياً     

Al-Alaq: The Central Reserve Is Sufficient To Create Market Balance
 
 Time: 08/04/2024 19:17:45 Read: 988 times  {Economic: Al-Furat News} Central Bank Governor Ali Mohsen Al-Alaq confirmed today, Sunday, that the dollar’s ​​financial reserve is sufficient to create a balance in the market.
 
A statement by the media department in the House of Representatives, a copy of which was received by {Al-Furat News} Agency today, stated that
 
“Iraq’s hard currency reserves are sufficient to create balance in the market,” noting that
 
“the Central Bank sells more than 250 million dollars daily to meet the requirements of foreign trade.”  The statement indicated that
 
"the Governor of the Central Bank provided a complete briefing on the reasons for the
 
     fluctuation of the exchange rate, the
     mechanism of operation of the electronic platform and
           its role in controlling internal and external trade, as well as the file of the
     housing initiative, the
     American sanctions on Iraqi banks, and the
     status of the bank's cash reserve of hard currencies." "Central"
 
Al-Alaq pointed out, according to the statement, that “85% of remittances do not pass through the US Federal Reserve.”  https://alforatnews.iq/news/العلاق-احتياطي-المركزي-يكفي-لخلق-توازن-السوق 

Kuwait Arrests Two Iraqis Embezzled $124 Million
 
 Amr Salem August 4, 2024 The head of the Federal Commission of Integrity (COI), Haider Hanoun, during a press conference to announce that some of the funds stolen have been recovered. Photo: INA
 
Baghdad (IraqiNews.com) – The head of the Federal Commission of Integrity (COI), Haider Hanoun, revealed on Thursday that the Kuwaiti authorities arrested two individuals with dual Kuwaiti and Iraqi citizenship for embezzling $124 million as part of the theft of the century.
 
Hanoun said in a press conference that the Iraqi Prime Minister, Mohammed Shia Al-Sudani, is following up on the theft of more than $2.5 billion from the General Commission for Taxes (the theft of the century), the Iraqi News Agency (INA) reported.

In October 2022, Iraq’s COI disclosed details about the theft of more than 3.7 trillion Iraqi dinars ($2.53 billion) from the General Commission for Taxes.
 
The Iraqi judiciary issued arrest warrants for senior officials in the Ministry of Finance regarding this major breach and terrible abuse of public funds.
 
Hanoun said earlier that procedures will be taken with Interpol to have Red Notices, which are requests to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action, published against former officials involved in the Theft of the Century.
 
The head of the COI indicated that Iraq is seeking to extradite those involved in the theft from countries including the UAE, Turkey, Jordan, and Saudi Arabia and called on the United States and the United Kingdom to hand over the fugitive suspects.
 
Hanoun elaborated that each of those involved in the theft of the century received not less than $77 million, adding that
 
it is a big crime where the number of suspects is more than 48.
 
An internal investigation carried out by the Ministry of Finance found the money had been withdrawn from the account of the General Commission for Taxes at a state-owned bank.
 
At that time, the Iraqi Prime Minister vowed to tackle endemic corruption in the country.
 
“We will not allow Iraqis’ money to be robbed,” Al-Sudani said via Twitter.
 
The Rafidain Bank issued a statement confirming it has nothing to do with any manipulation or theft and is only responsible for cashing the checks issued by the General Commission for Taxes.
 
The vast sum of cash, equivalent to nearly 3.7 trillion Iraqi dinars, was stolen by five companies from the General Commission of Taxes account at Baghdad’s Al-Rafidain Bank between September 2021 and August 2022 through the cashing in of 247 checks issued by the tax directorate, according to Rudaw News.
 
The Karkh Investigation Court decided on August 21, 2022, to stop the disbursement of checks issued by the General Commission for Taxes.    https://www.iraqinews.com/iraq/kuwait-arrests-two-iraqis-embezzled-124-million/   

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