Seeds of Wisdom RV and Economic Updates Thursday Evening 9-19-24

Good Evening Dinar Recaps,

LAWMAKER FLAGS CONCERNS OVER SEC'S CRYPTO APPROACH

Congressman French Hill has raised concerns over the U.S. Securities and Exchange Commission (SEC)’s handling of digital asset regulations, criticizing Chairman Gary Gensler’s leadership for creating legal uncertainty and a politicized approach.

The lawmaker highlighted his subcommittee’s legislative successes but expressed frustration with the SEC’s broad and unclear regulations, which he argued burden digital asset firms and stifle innovation.

Rep. Hill Criticizes SEC’s Approach to Digital Assets
Congressman French Hill (R-AR), chair of the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion, delivered remarks Wednesday at a hearing titled “Dazed and Confused: Breaking Down the U.S. Securities and Exchange Commission (SEC)’s Politicized Approach to Digital Assets.”

The hearing scrutinized the SEC’s regulatory actions on digital assets under Chairman Gary Gensler, focusing on its enforcement methods and legal uncertainty.

In his speech, Hill acknowledged the subcommittee’s legislative achievements, including the Clarity for Payment Stablecoins Act and the Financial Innovation and Technology for the 21st Century Act (FIT21) regulatory framework. However, he expressed concern about the SEC’s actions under Gensler’s leadership, stating:

Despite this legislative progress on a bipartisan basis, we’ve been troubled by the fact that the SEC as chaired by Chairman Gensler has instead chosen to front-end the work of Congress and insert politics instead of being an independent regulator.

Hill argued that the SEC’s approach has created confusion and uncertainty, particularly through broad, unclear regulations that impose heavy burdens on digital asset firms. “How is this protecting the public?” he questioned, noting that this strategy leaves market participants in a “lose-lose-lose” situation.

The lawmaker criticized the SEC’s handling of digital asset custody services, stating, “Nowhere has the SEC’s prejudice against digital assets been more apparent than in the Staff Accounting Bulletin 121, which upends decades of legal precedent in the custody business and creates an impenetrable hurdle for those financial institutions seeking to provide digital asset custody services for their clients—particularly banks and bank trust departments.”

He also highlighted that the SEC’s actions have driven blockchain developers out of the U.S. and condemned the approval process for bitcoin exchange-traded products (ETFs).

“Even the SEC’s approval of exchange-traded products for bitcoin and ether earlier this year only happened because Chairman Gensler tried to overplay his hand but could no longer explain to the courts why the SEC approved bitcoin futures ETFs but not the proposed spot Bitcoin products,” Hill said, concluding:

We’re against SEC enforcement abuse and making it hard for legitimate actors who are trying to follow the rules to do a fine job and bring innovation and technology to our markets.

@ Newshounds News™

Source:  Bitcoin News

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Turkey Sets New Standards to Safeguard Cryptocurrency Transactions

▪️Turkey's new rules aim to increase security in cryptocurrency trading.

▪️SPK outlines strict regulations for exchanges to protect customers.

▪️All exchanges must comply with these newly established standards.

This year, Turkey has enacted legislation establishing specific standards for cryptocurrency exchanges, prompting institutions to take action.

The Capital Markets Board (SPK) has outlined comprehensive rules and prohibitions within its jurisdiction concerning cryptocurrency exchanges. Following these new regulations, exchanges servicing Turkish citizens must comply with these rules.

SPK’s Cryptocurrency Rules
The Capital Markets Board (SPK) is the equivalent of the SEC in the United States for Turkey. Many regulations regarding cryptocurrency exchanges are implemented by this public institution.

Today, we can say that a significant step has been taken. The new rules and prohibitions can be summarized as follows.

▪️Customer cryptocurrency and cash assets must be kept separate from platform assets. It is stipulated that customer cash held in banks should be monitored in a separate account designated for platform clients, apart from the platform’s own cash assets.

▪️Accounts opened on behalf of customers will be explicitly defined as belonging to the respective platform clients and cannot be used for unintended purposes.

▪️Payments to customers can only be made through banks and authorized intermediaries. Cash cannot be received or given directly to customers.

▪️All orders from customers must be received through the platform’s registered websites, mobile applications, or authorized personnel. Customer orders cannot be taken through social media platforms (WhatsApp, Telegram, etc.). Proper and secure record-keeping of orders is required.

▪️As of November 8, 2024, customers’ order logs, phone order recordings, and request recordings must be preserved.

▪️NFTs can be opened to users with a warning message indicating that assets traded in this market are not subject to the listing principles of the Capital Markets Law and are not under the supervision of the SPK.

▪️Transactions made in a P2P marketplace on behalf of someone else will be considered unauthorized cryptocurrency service activities. Exchanges must terminate these activities by November 8.

▪️Promotional campaigns that promise specific returns or encourage investments in one or more cryptocurrencies cannot be organized. Such campaigns must end within 15 days.

▪️Cryptocurrency exchanges must integrate with the Central Registry Agency (MKK) system.

▪️Platforms may only sell as much cryptocurrency as they have in their wallets for customer transactions. The responsibility of ensuring that sufficient assets exist for transactions between customers lies with the platform.

▪️Platforms cannot utilize customer assets or engage in leveraged transactions, nor can they lend these assets to customers.

@ Newshounds News™

Source:  CoinTurk

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CRYPTO.COM RECEIVES FULL APPROVAL FROM THE KINGDOM OF BAHRAIN

Crypto.com can now offer payment services in Bahrain after the Central Bank approved its local subsidiary

Key Notes
▪️Digital currency trading firm Crypto.com has landed major Bahraini license.

▪️The license was secured through FORIS GFS BH B.S.C CLOSED, the exchange's local outfit.

▪️Crypto.com has maintained a major global expansion trend over the years.

The Central Bank of Bahrain has given Singapore-based cryptocurrency exchange Crypto.com full approval to provide payment service provider (PSP) services. The approval was secured through its subsidiary registered in the Kingdom of Bahrain under the commercial name “FORIS GFS BH B.S.C. CLOSED”. This adds to the company’s significant regulatory milestones in the region.

This milestone comes barely one month after Crypto.com was named the official partner of the UEFA Champions League, one of the world’s most prestigious football tournaments.

Beyond Bahrain: Crypto.com Is Expanding Its Presence Globally
The full approval from Bahrain allows Crypto.com to expand its offerings of e-money and fiat-based payment services regionally. 

Some of these services include the launch of its world-renowned prepaid cards. H.E. Noor bint Ali Alkhulaif, the Minister of Sustainable Development and the Chief Executive of Bahrain Economic Development Board, acknowledged Crypto.com’s international presence and its earned reputation for regulatory compliance.

She noted that the decision to invest in the Kingdom of Bahrain will further bolster the nation’s ability to deliver on its vision of developing a digital-first, resilient economy that celebrates innovation and progress. The country already has an approach that fosters a streamlined investment environment that champions ease of doing business.

According to Alkhulaif, Bahrain is committed to building a world-class ecosystem to support the evolution of the fast-growing blockchain, crypto, and fintech industry.

The presence of robust regulations and a diverse pool of highly skilled and future-ready talent within the financial services and technology sectors puts Bahrain on the path to achieving its goal.

Crypto.com’s President and COO, Eric Anziani, highlighted the milestones that Bahrain has achieved over the years. He admitted to seeing Bahrain’s dedication to building an innovation-friendly crypto and fintech ecosystem. Over time, the nation has upheld a key factor: clear regulation that balances consumer protection with commercialization.

In the Gulf region, Crypto.com has successfully emerged as a leading hub for crypto services and fintech innovation. It prides itself on being one of the first Gulf Cooperation Council (GCC) nations to issue crypto-asset licenses.

Crypto.com is gradually expanding its presence to include regions like Singapore, France, the UK, and the US.

Crypto.com Bags More Exciting Deals
Apart from this approval from the Kingdom of Bahrain, Crypto.com has made headlines for different reasons in the past few weeks. Last month, it officially rolled out its Global Retail Services, a major step in expanding its offerings to users worldwide. This service was first launched in the UAE, with plans to expand to other regions in the future.

Similarly, the Singapore-based crypto exchange teamed up with the Telegram-based game Hamster Kombat to introduce a new metal card. The strategic partnership’s focus is to enhance payment flexibility for both in-game activities and real-life transactions. It will make crypto payment cards available for gamers and business owners worldwide.

@ Newshounds News™

Source:  CoinSpeaker

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RIPPLE AND SEC: THE FINAL STAGES OF A HISTORIC BATTLE

▪️The Ripple and SEC case is approaching its final stages after a significant fine.
▪️October 7 is a critical date that may affect XRP Coin's volatility.
▪️Ripple is preparing for potential outcomes to expand the use of XRP Coin.

Following a $125 million fine, the struggle between Ripple and the SEC is nearing its conclusion. This pivotal process has been ongoing since the end of 2020, impacting all altcoins significantly. However, can we definitively say the case is over? Not quite, as there is still an upcoming appeal process to monitor.

As a result, the SEC’s arbitrary labeling of assets as securities, including SOL Coin and many other cryptocurrencies, has become widely disregarded. For instance, Coinbase continues to list assets likely viewed as securities by the SEC.

The legal battle between Ripple and the SEC stands as the largest legal conflict that the SEC has pursued as an institution. Other similar cases, such as that involving Telegram, have been resolved much more swiftly. Previous assessments noted that the Judge confirmed that institutional sales constituted securities, which led to Ripple’s $125 million fine.

Appeal and XRP Coin
However, the SEC remains unsatisfied with the outcome. It is expected to assess the appeal process that will conclude in October 2024. Ripple has set aside the $125 million fine in escrow, preparing for the potential appeal.

In summary, the critical date ahead is October 7, and it would not be surprising to see increased volatility in XRP Coin’s price as this date approaches. If the SEC does not appeal, Ripple officials anticipate relief by October 7, marking the process as complete. Nevertheless, if an appeal occurs, it could lead to a short-term decline and prolong the proceedings significantly.

Regardless of the outcome, Ripple is now seeing light at the end of the tunnel. Moving forward, the expansion of XRP Coin’s use cases and additional measures will likely enhance the value of this altcoin. However, the continuously rising circulation supply makes reaching $3 prices somewhat implausible.

@ Newshounds News™

Source:  CoinTurk

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Recession Is Next & Rate Cuts Won’t Help, Here’s Why the Fed Has It All Wrong – Steve Hanke

Recession Is Next & Rate Cuts Won’t Help, Here’s Why the Fed Has It All Wrong – Steve Hanke

Kitco News:  9-19-2024

Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, interviews Steve Hanke, Professor of Applied Economics at Johns Hopkins University.

 Hanke weighs in on the Federal Reserve’s aggressive move to lower its benchmark rate by 50 basis points – the first cut since 2020.

Hanke criticizes the Fed, stating that the U.S. central bank is flying blind by ignoring the M2 money supply metric. He sees the Fed’s continued shrinking of the balance sheet as a contradiction to its oversized rate cut.

Hanke warns that the U.S. economy will enter a recession later this year or at the start of next year. He also projects the timing when the Fed will kick off its quantitative easing cycle and breaks down what it will mean for the U.S. equity market and commodities, including gold.

00:00 Coming Up

01:15 Introduction: The Fed

03:06 Analysis of the Fed's Rate Cut

06:09 Monetary Policy and Money Supply

 08:11 Economic Outlook

10:36 Impact of Money Supply on Inflation Explained

17:21 Central Bank Policies

31:58 Fed's Actions

33:26 Economic Slowdown

34:59 Housing Market Trends

37:52 Equity Markets

39:56 Commodities & China

41:18 Gold Market Dynamics

43:58 Geopolitical Tensions and Market Implications

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

Iraq News Highlights and Points To Ponder Thursday Afternoon 9-19-24

Market Monopoly Is In Danger... And The Parliamentary Economic Committee Leads The Correction Battle

September 18, 2024  Baghdad/Al-Masala:   The issue of ending monopolies in Iraq has become one of the pivotal issues that parliamentary bodies seek to address urgently, due to its direct impact on the local economy and market stability.

One of the most prominent of these efforts is the move led by the Parliamentary Committee on Economy, Industry and Trade to amend the Competition and Anti-Monopoly Law.

The Parliamentary Committee on Economy, Industry and Trade, headed by MP Ahmed Salim Al-Kanani, hosted the (Competition and Anti-Monopoly) Council to discuss amending the Competition and Anti-Monopoly Law in Iraq, in the presence of a number of economists, experts and legal professionals.

The head of the parliamentary economy, industry and trade committee, MP Ahmed Salim Al-Kanani, said in a statement that the main objective of the meeting was to highlight the need to update the competition and anti-monopoly law, in line with current economic challenges, as well as to address legal loopholes affecting the local market. The discussions addressed several key points that need to be amended.

Amending this law is an important step to ensure economic justice and improve the investment environment, as the monopoly of some parties on the market leads to narrowing competition and unjustified price increases, which negatively affects consumers and the economy in general.

The parliamentary committee seeks to address the legal loopholes that affect the local market, as some of these loopholes allow monopolists to escape punishment or manipulate the laws in a way that harms fair competition.

Analysts believe that tightening penalties on entities proven to be practicing monopoly and price manipulation is an urgent necessity to ensure effective implementation of the law and achieve the necessary deterrence.

A key aspect of these efforts is price control to maintain market stability, as monopoly is one of the main causes of price fluctuations that affect citizens’ daily lives.

In the absence of real competition, it becomes easy for monopolistic companies to raise prices exaggeratedly, which increases the suffering of consumers and causes some to refrain from buying.

Iraq needs to activate laws that protect consumers from these unfair practices and ensure that products and services are available at reasonable and stable prices.

In addition to parliamentary efforts, economists and legal experts play an important role in amending the law to suit the Iraqi reality. The challenges facing the local market require innovative legal and economic solutions that ensure sustainable economic growth and fair distribution of economic opportunities.

The head of the committee, MP Ahmed Salim Al-Kanani, noted that the penalties on monopolists were discussed, as the parliamentary committee stressed the need to tighten penalties on parties proven to practice monopoly and price manipulation, stressing that the current penalties are not sufficient to deter violators, which makes it necessary to review these articles to impose strict penalties that contribute to achieving balance in the market.

Al-Kanani pointed out that the discussions included the importance of controlling prices to maintain market stability and protect consumers from price fluctuations resulting from monopoly.

They also included establishing stricter monitoring mechanisms to ensure that traders and importers adhere to the specified prices and avoid exploiting crises to raise prices unjustifiably.

 The committee chairman stressed the importance of establishing strict quality and control standards to ensure that consumers obtain goods with specifications that meet international standards.

The statement of the Parliamentary Committee on Economy, Industry and Trade stated that it was agreed to continue the dialogue between the committee and the Competition Council to reach a final formula for the amendments to the law, while stressing the importance of expediting the approval of the amendments to activate the role of the Council in improving the business environment and ensuring the rights of consumers.    https://almasalah.com/archives/101113

Oil Disappoints Hopes, Basra Crude Completes Two Weeks Of Decline: Interest Rate Cuts Backfired

2024-09-19 | 1,287 views  Alsumaria News – Economy    Global oil prices fell in today's trading , Thursday, frustrating the anticipated hopes for the results of the US Federal Reserve's 50-point reduction in interest rates, as the larger-than-expected reduction had the opposite effect and raised concerns about the US economy.

Brent crude futures for November delivery lostOctoberThe second contract fell 34 cents, or 0.46 percent, to $73.31 a barrel, while West Texas Intermediate crude futures for October delivery fellOctoberThe first to $70.49 a barrel, down 42 cents, or 0.59 percent.

The US Federal Reserve cut interest rates by half a percentage point on Wednesday, indicating that the central bank sees a slowdown inmarketWork, it seems.OpinionThe boost that a rate cut typically brings to economic activity outweighs the boost that a rate cut typically brings, according to Reuters.

“While a 50bp rate cut signals stiff economic headwinds ahead, bearish investors were left feeling unsatisfied after the Fed raised rates,” analysts at ANZ Bank said in a note.Federal Reserve Bank"His medium-term price forecasts."

In contrast, crude oil prices concludedBasraIts second week at its lowest level recorded in about 10 months, which lasted at that time about 50 days.   LINK

Gulf Central Banks Move Interest Rates After Fed Decision

Arabic and internationalEconomy News - Follow-up Central banks in the Gulf region have decided to raise interest rates, following the US Federal Reserve's decision to cut interest rates by half a percentage point on Wednesday.

The Central Bank of the UAE decided to reduce the base rate on the overnight deposit facility by 50 basis points, to reach 4.90 percent, from 5.40 percent, effective Thursday, September 19, 2024.

The Saudi Central Bank said in a statement that it decided to reduce the repurchase agreement (repo) rate by 50 basis points to 5.50 percent, and reduce the reverse repurchase agreement (reverse repo) rate by 50 basis points to five percent.

The Board of Directors of the Central Bank of Kuwait decided to reduce the discount rate by 25 basis points to 4.00 percent, instead of 4.25 percent, effective from September 19, 2024.

The Governor and Chairman of the Board of Directors of the Central Bank of Kuwait, Basel Ahmed Al-Haroun, said that the decision is based on developments in the local and global economic, monetary and banking conditions, noting the decline in inflationary pressures in the Kuwaiti economy, as the annual inflation rate slowed from about 4.71 percent in April 2022 to about 3 percent in July 2024.

The Central Bank of Bahrain said in a statement that it cut the overnight deposit rate by 50 basis points from 6 percent to 5.50 percent.

He added in the statement: "This decision comes within the measures taken by the bank to achieve monetary and financial stability in the Kingdom of Bahrain in light of the developments witnessed by international financial markets."

Qatar Central Bank also cut key interest rates by 55 basis points.

The Qatar Central Bank said in a statement posted on social media that the lending rate was reduced to 5.70 percent, deposit rates to 5.20 percent, and the repurchase rate to 5.45 percent.

The US Federal Reserve's Monetary Policy Committee decided to cut interest rates by 50 basis points, to a range of 4.75 to 5 percent.139 views  09/18/2024 - https://economy-news.net/content.php?id=4777

Al-Fatlawi: There Are Some Parties Trying To Overthrow Al-Sudani's Government

Policy   Information/Baghdad...  Al-Fatah Alliance member Ali Al-Fatlawi accused some parties, which he did not name, of working to try to overthrow the government of Prime Minister Mohammed Shia Al-Sudani.

Follow "Al-Maalouma" channel on Facebook.. News that does not need verification..

Al-Fatlawi told Al-Maalouma, "Al-Sudani tried to build a correct structure for a new phase, and tried to keep the weak-willed away from him, but they were present around him and they are the remnants of Mustafa Al-Kadhimi's government."

He added, "The spy network is the remnants of Mustafa Al-Kadhimi's government and Raed Juhi."

Promise, "The current time is right to remove all the class that is trying to obstruct the political process." End 25N   LINK

Urgent Measures To Address The Airlines File

Iraq  09/19/2024  The Ministry of Transport has taken urgent measures to resolve the problems that have recently plagued the work of the General Company for Airlines.

The Director of the Ministry’s Media Office, Maitham Al-Safi, told Al-Sabah: “The Minister of Transport, Razzaq Muhaibis Al-Saadawi, has begun managing the General Company for Airlines centrally, and has issued several directives to resolve all issues related to the company’s performance, especially the cancellation of pilgrims’ flights and their re-transportation from the Kingdom’s airports to local airports according to a regular schedule,

 in addition to launching a new smartphone application that allows travelers to book tickets and manage reservations easily, as well as the ability to switch to the lost baggage service in cooperation with the electronic platform (Aur), in addition to helping travelers stay up to date with the latest developments regarding the national carrier’s flights.”

He pointed out that the airlines have not cancelled any of the chartered flights for tourism companies, and are working hard to ensure the continuity of operating flights, improve the levels of service provided to passengers, and adhere to the instructions of the Civil Aviation Authority regarding flight hours, to ensure that the company is not exposed to any audit violations and disrupts the periodic inspections by the International Civil Aviation Organization.

Al-Safi explained that the ministry compensates passengers whose bags are damaged or delayed, and that flight prices are measured within the economic feasibility of the flights, which is the most suitable among other airlines.

 He pointed out that work is ongoing to improve electronic services and focus on developing electronic reservation and payment systems to facilitate passenger procedures and reduce the time spent at airports, as well as providing the required crews to implement scheduled flights and reduce delays, in addition to launching comprehensive training programs to develop the skills of workers and raise the efficiency of technical and administrative crews.    https://alsabaah.iq/102913-.html

Iraq Dinar Update-#iraqi dinar-#xrp-Non-Oil Revenues-Central Bank Gov- Art. 140-Digital-Iraqs Reality

Iraq Dinar Update-#iraqi dinar-#xrp-Non-Oil Revenues-Central Bank Gov- Art. 140-Digital-Iraqs Reality

MilitiaMan and Crew:  9-19-2024

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=-Pk0SB4YLp4

Economist’s “News and Views” 9-19-2024

FED Powerless to Prevent Debt Trap with Alasdair Macleod

WTFinance:  8-19-2024

On this episode of the WTFinance podcast I had the pleasure of welcoming back Alasdair Macleod. Alasdair is the Head of Research for Goldmoney.

We spoke about the risk of a debt trap, commodities, whether the FED can cut out of a recession, japanificarion, gold and more.

0:00 - Introduction

1:43 - What is happening in the economy?

3:43 - Commodity crash linked to recession?

7:42 - Impact of low interest rates?

9:40 - Politicians to cut deficit?

14:45 - Private debt market to blow up?

 18:55 - Can US/UK go way of Japan?

 22:06 - Why is gold unloved?

23:26 - Flooding into precious metals?

31:56 - What does a building of a gold standard take?

39:20 - Only possible with commodity producing company?

42:11 - One message to takeaway from our conversation?

https://www.youtube.com/watch?v=G35n_umPimE

Fed’s 50-Point Panic CONFIRMS We’re in BIG Trouble

Taylor Kenny:  9-19-2024

The Fed’s emergency 50-point rate cut is a clear sign that inflation is here to stay, and your dollar is losing value. Learn why this could be just the beginning of more economic trouble.

https://www.youtube.com/watch?v=ASbZmt9PmTU

Massive Fed Rate Cut; Imminent Market Crash | Michael Oliver

Liberty and Finance:  8-19-2024

Michael Oliver discusses the Federal Reserve announcement of a 50 basis point rate cut. He discusses the promising upward momentum of gold and silver, even as the stock market appears to be nearing a dangerous peak.

 Drawing on historical trends, Michael highlights the challenges of stabilizing markets post-bubble and the role of precious metals as a safe haven.

INTERVIEW TIMELINE:

0:00 Intro

1:10 Fed massive rate cut

3:37 Silver & gold momentum levels

7:23 Stock market vs gold

12:30 Market crash

14:00 Gold’s new highs

https://www.youtube.com/watch?v=_HG0h_vEAHM

Iraq Economic News and Points To Ponder Thursday AM 9-19-24

Iraqi Banks...A Classic Mentality That Prevents Keeping Pace With Global Development By Preferring The "Government" Over The "National"
 
Reports and analyses     Central Bank     US sanctions    Iraqi banks     Private banks
2024-09-17 01:44  --  Shafaq News/ Iraq is moving towards restructuring government banks, after
 
this body has become unable to provide modern banking services and has become burdened with a deep legacy of accumulated burdens, credit defaults and other problems.
 
The restructuring demands came after years of pressure and demands from the International Monetary Fund to restructure the Iraqi government banks, which hold most of the country's deposits,
 
     to develop its banking system and be able
     to enter the global banking market and
     make it more compatible with the economy.

Acquisition of government banks
 
The Prime Minister’s Advisor for Economic Affairs, Mazhar Muhammad Saleh, said in an interview with Shafaq News Agency,
 
“The structuring of the banks came in accordance with the government curriculum that outlined the features of comprehensive banking reform, as government banks dominate 88% of the banking system’s investments, and only 12% remains for the private banking system.” Of these investments,
 
therefore, the competitive foundations of the banking market are considered incomplete unless government banks are placed on the rules of market operation in terms of efficiency, administrative governance, and developing levels of compliance similar to international banking,” noting that
 
“the reform will include private banks with the same standards.”  He added,
 
"The basics of reform in private banks are viewed from the perspective of what is called financial depth, and
 
one of the most important indicators of that depth is (the ratio of cash credit granted to the total deposits in private banks),
 
but in contrast, we find that the market share is no more than 63 private banks."
 
These credit and creative operations still only account for 15%, despite the government banking system’s acquisition of 85% of the credit activity, deposits, and investment banking operations, which indicates the dominance of its assets or assets over the total assets of the banking system.”  He pointed out that
 
"the time has come to reform the banking sector, both governmental and private, in a way that achieves harmony, unity and high competitiveness in the banking market, as well as its governance and digital integration with the banking market in the world.
 
This is what the banking reform policy that the government is currently adopting is working on, in coordination with the stakeholders included." “With the reform steps and its current program in the government and private banking sectors.”

The process of studying the structure of Iraqi banks began after Prime Minister Muhammad Shiaa Al-Sudani met with a delegation from the international company Ernst & Young, where he directed, on 1/27/2023, the implementation of a plan to develop the performance of Rafidain Bank extending for eight months, through the international company.
 
Difficulty in the structuring process
 
The former director of the Central Bank of Iraq, Mahmoud Dagher, said in an interview with Shafaq News Agency,
 
“Government banks and the process of restructuring and developing them and making them consistent with modern banking work is very difficult for several reasons, including that
 
these banks have become more like a treasury for distributing salaries to state employees than they are banks for carrying out a process.” Banking".
 
He continued that other reasons are that the technical level in these banks is almost non-existent.
 
Indeed, these banks, especially Al-Rafidain and Al-Rashid Banks, had it not been for the electronic payment companies that support them, they would not have been able to complete any work.
 
Therefore, they would not have worked without these companies, in addition to the huge number of their branches and the large number of employees present.
 
This makes it difficult to change the reality of these banks.”  He pointed out,
 
 “The presence of international sanctions and the presence of decisions of courts abroad, proving the creditors of some government banks, which are not resolved, and this is the reason for imposing international isolation on them, and therefore they cannot deal internationally,” stressing that
 
“it is absurd to spend huge sums of money that do not lead to decisive results, as All the costs spent on these banks will not lead to restructuring in order to coordinate the work of government banks, especially Al-Rafidain, Al-Rashid, and some specialized public banks, in a way that parallels the work of modernization and technological development that took place in banks such as the Iraqi Trade Bank.”
 
The Rafidain and Al-Rashid government banks were subjected to international sanctions during the nineties of the last century following the invasion of Kuwait by Saddam Hussein’s regime, and
 
they are still imposed on it in international dealings with them, especially with regard to the issue of financial transfers.

Old banking system
 
Economist Bassem Jamil Antoine said in an interview with Shafaq News Agency,
 
“Government banks have for a long time been operating within an old banking system without modernization, and
 
these banks must keep pace with international banks,” adding at the same time that
 
“these banks are the safety valve.”  He added,
 
"These banks remain in need of development, eliminating administrative routine, and having employees undergo training courses to keep pace with developments that have occurred in international banks," noting that
 
"banks are not stores of cash, but rather they must provide advanced credit banking services."  He stressed that
 
"the idea of ​​restructuring banks has been proposed for twenty years, and ideas and studies were presented, but they were not adopted," stressing that
 
"the bank needs security and administrative stability and independence in work."
 
The Ministry of Finance owns six government banks: Al-Rafidain Bank, Al-Rasheed Bank, Al-Nahrain Islamic Bank, Agricultural Bank, Industrial Bank, and Iraqi Trade Bank.
 
Al-Rafidain Bank is an Iraqi government bank, founded in Baghdad in 1941, as the first Iraqi commercial bank.
 
It has 146 branches inside Iraq, and some other branches are spread outside it in Jordan, Egypt, the United Arab Emirates, Lebanon, Bahrain, and Yemen.
 
Al-Rasheed Bank is an Iraqi government bank, founded in Baghdad in 1988, as an Iraqi commercial bank, with 162 branches spread inside Iraq.   https://shafaq.com/ar/تقارير-وتحليلات/المصارف-العراقية-عقلية-كلاسيكية-تصد-مواكبة-التطور-العالمي-بتفضيل-الحكومي-على-ال-هلي 

Warnings Against Relying On The “Rentier Economy”: Use Effective Systems And Digital Infrastructure - Urgent

 Economy | Yesterday, 14:59 | Baghdad today – Baghdad  Today, Wednesday (September 18, 2024), the specialist in economic and financial affairs, Nawar Al-Saadi,

 warned of the danger of Iraq’s continuation of the rentier economy, while giving solutions to overcome the danger of this matter.  Al-Saadi told “Baghdad Today” that

 “the Iraqi economy is considered a rentier economy par excellence, as

the state depends up to 90% on oil revenues to finance its general budget,” noting that

 “this type of economy is very natural and is exposed to severe danger when oil prices decline.” In global markets,

 which prompts the government to search for additional sources of income to avoid future financial crises, and imposing taxes is considered a step within the government’s attempts to create new sources of income from non-oil sectors, and

 this is in line with the reforms proposed by the government in the recent period with the aim of diversifying the Iraqi economy.”.  He added,

 "The government's success in implementing these policies remains dependent on the ability to confront the main challenges that hinder economic reforms,

 the most important of which is the widespread corruption in many government sectors, and the bureaucracy that burdens the reform process," stressing that

 "the government needs to develop effective systems for collecting taxes from sectors." New, in addition to providing the digital infrastructure necessary to support this transformation.” Al-Saadi stated,

  “In the long term, if the government succeeds in

      overcoming these challenges and

     develops effective and sustainable strategies to collect taxes from various sectors,

 it may be able to create sustainable sources of income that help reduce excessive dependence on oil,

 which contributes to the stability of the Iraqi economy, but the matter is

“It requires strong political commitment and comprehensive institutional reforms to achieve this.”

Economist Nabil Al-Marsoumi confirmed on Wednesday (September 11, 2024) that the

fair price of oil is the one that achieves the interests of producers and consumers together.

 Al-Marsoumi said on his Facebook platform, followed by “Baghdad Today”, that

 “the fair price for oil is the one that achieves the interests of producers and consumers together, that is, the price that achieves good financial revenues for producers that enable them to return part of it to renew and increase oil production capacities.” He added:

  “It also enables consumers to obtain oil at reasonable costs that facilitate economic growth,” explaining:

 “The price can be set in the seventies as the fair price for both parties,

 but when the price falls below $70, it fulfills the interests of consumers because it enables them to obtain energy at a cost.” Cheap, thus reducing the prices of production inputs and increasing the competitiveness of their produced goods.” He continued:

  “But on the other hand, it is harmful to producing countries because it reduces their oil revenues and frustrates investment in developing oil production, and vice versa, when the price is $80 and rising, this price is harmful to economic growth in consuming countries.

 It also reduces demand for oil in the long term, even though it achieves large revenues.” For oil producing countries.

Oil prices are witnessing a noticeable decline, especially in futures contracts, which specialists believe may affect Iraq's rentier economy and thus the state and the citizen.    https://baghdadtoday.news/258110-تحذيرات-من-الاعتماد-على-الاقتصاد-الريعي-استخدموا-أنظمة-فعالة-وبُنى-تحتية-رقمية-عاجل.html   

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

Seeds of Wisdom RV and Economic Updates Thursday Morning 9-19-24

Good Morning Dinar Recaps,

Lawmaker Flags Concerns Over SEC's Crypto Approach

Congressman French Hill has raised concerns over the U.S. Securities and Exchange Commission (SEC)’s handling of digital asset regulations, criticizing Chairman Gary Gensler’s leadership for creating legal uncertainty and a politicized approach.

The lawmaker highlighted his subcommittee’s legislative successes but expressed frustration with the SEC’s broad and unclear regulations, which he argued burden digital asset firms and stifle innovation.

Rep. Hill Criticizes SEC’s Approach to Digital Assets
Congressman French Hill (R-AR), chair of the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion, delivered remarks Wednesday at a hearing titled “Dazed and Confused: Breaking Down the U.S. Securities and Exchange Commission (SEC)’s Politicized Approach to Digital Assets.”

The hearing scrutinized the SEC’s regulatory actions on digital assets under Chairman Gary Gensler, focusing on its enforcement methods and legal uncertainty.

In his speech, Hill acknowledged the subcommittee’s legislative achievements, including the Clarity for Payment Stablecoins Act and the Financial Innovation and Technology for the 21st Century Act (FIT21) regulatory framework. However, he expressed concern about the SEC’s actions under Gensler’s leadership, stating:

Despite this legislative progress on a bipartisan basis, we’ve been troubled by the fact that the SEC as chaired by Chairman Gensler has instead chosen to front-end the work of Congress and insert politics instead of being an independent regulator.

Hill argued that the SEC’s approach has created confusion and uncertainty, particularly through broad, unclear regulations that impose heavy burdens on digital asset firms. 

“How is this protecting the public?” he questioned, noting that this strategy leaves market participants in a “lose-lose-lose” situation.

The lawmaker criticized the SEC’s handling of digital asset custody services, stating, “Nowhere has the SEC’s prejudice against digital assets been more apparent than in the Staff Accounting Bulletin 121, which upends decades of legal precedent in the custody business and creates an impenetrable hurdle for those financial institutions seeking to provide digital asset custody services for their clients—particularly banks and bank trust departments.”

He also highlighted that the SEC’s actions have driven blockchain developers out of the U.S. and condemned the approval process for bitcoin exchange-traded products (ETFs).

“Even the SEC’s approval of exchange-traded products for bitcoin and ether earlier this year only happened because Chairman Gensler tried to overplay his hand but could no longer explain to the courts why the SEC approved bitcoin futures ETFs but not the proposed spot Bitcoin products,” Hill said, concluding:

We’re against SEC enforcement abuse and making it hard for legitimate actors who are trying to follow the rules to do a fine job and bring innovation and technology to our markets.

@ Newshounds News™

Source:  Bitcoin News

~~~~~~~~~

SEC Charges Defi Platform Rari Capital and Founders

The U.S. Securities and Exchange Commission (SEC) has announced charges against decentralized finance (defi) platform Rari Capital and its co-founders for misleading investors and operating as unregistered brokers. The settlement involves penalties, injunctions, and bars against the individuals involved, with violations stemming from unregistered securities offerings and deceptive practices.

SEC Charges Defi Platform Rari Capital Over Securities Law Violations

According to the announcement, the SEC’s investigation revealed that Rari Capital, through its Earn and Fuse pools, allowed investors to deposit crypto assets into lending pools while reportedly misleading them about the functionality and profitability of the investment products.

As stated by the SEC, the platform falsely claimed that its Earn pools autonomously rebalanced crypto assets, when in fact, manual intervention was often required.

This, along with hidden fees, resulted in substantial losses for a significant portion of investors. In addition to the deceptive practices, the securities regulator insists that Rari Capital and its co-founders, Jai Bhavnani, Jack Lipstone, and David Lucid, allegedly engaged in unregistered broker activity.

The SEC stated that the founders violated securities laws by selling interests in these pools and the Rari Governance Token (RGT) without proper registration. The complaint further alleges that the firm misrepresented the potential returns and failed to account for significant fees and risks, ultimately causing investor harm.

@ Newshounds News™

Source:  News Bitcoin   

~~~~~~~~~

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“Tidbits From TNT” Thursday Morning 9-19-2024

TNT:

Tishwash:  Central Bank: From now on, the dollar is subject to strict supervision

The Governor of the Central Bank of Iraq, Ali Al-Alaq, announced that all transfers are subject to auditing, noting that the decline in oil prices has nothing to do with the rise in the exchange rate.

Al-Alaq said in a press comment, “The Central Bank provides the dollar at the official price to all commercial and personal channels, travelers, and all types of operations that represent legitimate activities, operations, and requests.”

He explained, "Any price outside the country is a price that only indicates the presence of abnormal operations that are trying to get out of the official and legal system and the correct fundamental channels."

He stressed the importance of focusing on the amount of sales made by the Central Bank at the official price and those seeking the dollar, whether they are traders, importers, individuals or travelers. He explained that “the decline in the price of oil has nothing to do with the rise in the exchange rate.” link

Cutebwoy:  CBI Governor: We have mechanisms in place to guarantee dollar provision and are closely monitored

INA-  BAGHDAD

Ali Al-Alaq, the governor of the Central Bank of Iraq (CBI), declared on Wednesday that all financial transfers are auditable, but he also pointed out that the increase in exchange rates is unrelated to the drop in oil prices.  

"The Central Bank provides dollars at the official rate for all commercial and personal channels, travellers, and all types of operations that represent legitimate activities, operations, and requests," Al-Alaq said to the Iraqi News Agency (INA).

He emphasized the need to "focus on the amount of sale carried out by the Central Bank at the official rate and dollar seekers, whether they are traders, importers, individuals or travellers," noting that "any price outside the country is a price that only indicates abnormal operations that try to deviate from the official and legal system and the correct fundamentalist channels." 

"This is a major shift in external transfers where they were previously audited at a later stage and today all transfers are not carried out and are not implemented until after undergoing the audit process," he said, pointing out that "methods have been developed for each channel that secure the provision of dollars on the one hand and a very large amount of control to verify the safety of prior operations before their implementation."

"The decline in the price of oil has nothing to do with the rise in the exchange rate because Iraq has foreign currency reserves, which enables it to defend the exchange rate," he said

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

Tishwash:  Economist: The free mass is estimated at 70 trillion dinars and can be invested electronically

Economic expert Dr. Safwan Qusay confirmed today, Sunday, that there are about 70 trillion dinars of free money supply, pointing out the possibility of investing it through the transition to the electronic system in financial transactions.

Qusay told Al-Maalouma, “Focusing on investing in financial inclusion is accompanied by many benefits, the most prominent of which is withdrawing the free cash flow outside the banking system, which is estimated at about 70 trillion dinars, or an average of 2 million dinars for every Iraqi citizen.”

He added, "This amount could lead to an increase in liquidity in banks and increase their ability to grant through small and medium income-generating projects or by increasing the capacity for long-term strategic investment financing."

He pointed out that "Iraqi banks have the qualifications to switch to the electronic system, noting that "the transformation of the financial sector to the electronic system with credit cards will pave the way for attracting international investments and increasing confidence in the Iraqi economy."   link

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

Tishwash:  Parliamentary moves to increase state financial revenues

The Parliamentary Finance Committee revealed that it held a meeting with the Ministry of Planning to present proposals to maximize the state's non-oil revenues.

The committee's vice-chair, Ikhlas Al-Dulaimi, said in an interview with "Al-Sabah", followed by "Al-Eqtisad News", that "the committee met with the Ministry of Planning and had some proposals regarding maximizing the state's non-oil financial resources, indicating that these proposals need support from the Finance Committee, which will meet with a delegation from the Ministry of Planning to exchange views and proposals that would maximize the state's non-oil revenues."

Al-Dulaimi added that "the tax rate set by the government is very small and does not match the volume of imports, which amounts to approximately 20 trillion dinars. Therefore, this volume of imports should be accompanied by taxes commensurate with its size, but due to the old legislation that is not consistent with the state's vision and does not match the work of other bodies, the need calls for us to review and study the laws."

The MP pointed out that "the Finance Committee is adopting this issue, by submitting a comprehensive study aimed at maximizing non-oil revenues, especially taxes and customs."
It is noteworthy that the Finance Committee held a meeting the day before yesterday, Monday, which discussed the activation of non-oil revenues.

The head of the committee, Atwan Al-Atwani, stressed during the meeting the need for a representative from the committee to attend all meetings of the other parliamentary committees, to express an opinion on the joint laws, while the committee decided to conduct a field visit to the Kurdistan Region and the ports to follow up on the related control procedures.

The committee also discussed the possibility of legislating a special law on collection and taxation for all economic sectors, or including them in the economic reform law, in addition to discussing the proposal to establish a sovereign fund for the country, and forming a team to review government procedures related to revenues and estimate financial returns according to spending units. link

Mot: . As They Say!! -- Stupid Is -- Stupid Does!!!!

Mot:   .... Its Been Proven!! -- My goodness, the earth is flat 🤣

Iraq Economic News and Points To Ponder Wednesday Evening 9-18-24

Central Bank Of Iraq: Oil Price Drop Has Nothing To Do With Dollar Exchange Rate Rise

Economy  | 18/09/2024   Mawazine News – Economy  The Governor of the Central Bank of Iraq, Ali Al-Alaq, announced today, Wednesday, that all transfers are subject to auditing, while indicating that the decline in oil prices has nothing to do with the rise in exchange rates.

Al-Alaq said, according to the official agency, that "the Central Bank provides the dollar at the official price to all commercial and personal channels, travelers, and all types of operations that represent legitimate activities, operations, and requests."

He pointed out that "any price outside the country is a price that only indicates the presence of abnormal operations that attempt to deviate from the official and legal system and correct fundamental channels," stressing the need to "focus on the amount of sales carried out by the Central Bank at the official price and those requesting the dollar, whether they are merchants, importers, individuals, or travelers."

He pointed out that "methods have been put in place for each channel that ensure the provision of the dollar on the one hand, and a very large degree of oversight to verify the integrity of the prior operations before they are implemented," noting that "this is a major shift in foreign transfer operations, as they were previously audited at a later stage, and today all transfer operations are not carried out or implemented except after being subjected to the auditing process."

He explained that "the decline in the price of oil has nothing to do with the rise in the exchange rate because Iraq has foreign currency reserves that enable it to defend the exchange rate." https://www.mawazin.net/Details.aspx?jimare=255061

Oil Prices Hit $73.67 Per Barrel

Economy   |  09/18/2024  Mawazine News – Baghdad  Oil prices steadied in early trading on Wednesday after rising in the previous two sessions, as investors awaited the Federal Reserve's expected decision to cut interest rates. Price action Brent crude futures for November delivery fell 3 cents to $73.67 a barrel by 0053 GMT. U.S. crude futures for October delivery fell 11 cents, or 0.2 percent, to $71.08 a barrel.

Both benchmarks rose about $1 a barrel on Tuesday amid continued supply disruptions in the United States, the world's largest oil producer, after Hurricane Frances, and as traders bet demand could pick up after what would be the first interest rate cut by the U.S. Federal Reserve in four years.

Prices were also supported by the prospect of wider violence in the Middle East, which could cause potential disruptions to production in a key region after simultaneous explosions of Hezbollah pagers, which the group blamed on Israel. The market was also supported by expectations that the United States would buy oil to shore up its strategic reserve.   https://www.mawazin.net/Details.aspx?jimare=255039

New Mechanism For Collecting Tax Amounts Electronically

Money and business  Economy News - Follow-up  Baghdad Municipality has adopted a new mechanism for collecting collection fees via electronic payment instead of the previous traditional method of cash payment.

Director of the Adhamiya Municipality Department, Musab Al-Obaidi, said in an interview with "Al-Sabah", followed by "Al-Eqtisad News", that the municipality has converted the collection system from the paper system by the authorized person (field collector) to the electronic payment method, to ensure the implementation of government instructions in this regard and reduce routine and save time and effort for the employee and citizen alike.

He explained that the municipality has given the citizen the choice of paying the amount via (MasterCard) or charging him 5 percent of the value of the amount if he pays it in cash at the department's headquarters to encourage electronic payment.

He added that the categories that pay fees to the state know the amounts owed in advance through the established criteria. For example, fees for commercial stores are estimated at 10 percent annually of the value of the lease contract, in addition to other known fees such as waste removal fees, professional fees and advertising.

Al-Obaidi attributed the adoption of this mechanism to several reasons, most notably contributing to enhancing banking culture and how to deal electronically with card payments, in addition to getting rid of torn currencies and additional amounts deducted from citizens through efforts and estimates.

Citizens had previously demanded through "Al-Sabah" to cancel the role of the field collector and rely on electronic payment to avoid the estimates and efforts that some employees fall into, which negatively affect them by adding amounts to the established wages, thus burdening them. 114 views 09/18/2024 - https://economy-news.net/content.php?id=47722

US Ambassador: Iraq Is Capable Of Creating An Economic Model To Be Emulated

Politics | 02:23 - 18/09/2024   Mawazine News – Baghdad  US Ambassador Alina Romansky confirmed on Wednesday that Iraq is capable of creating an exemplary economic model, while pointing to cooperation with Iraqi organizations to improve water access for more than 100,000 people.

Romansky said, according to the official agency, at the conference launching the National Strategy for Environmental Protection and Improvement in Iraq: "This is a pivotal and important stage that will support Iraq's efforts in building the country and the changes taking place today and for future Iraqi generations," noting that "this will be a vision for Iraq's requirements and confronting the environmental challenges that Iraq has faced from population growth and natural resources that have restricted development in Iraq."

She added that "drought continues to harm the agricultural sector and affects the security and safety of the country, and that this strategy is an opportunity for us to work together and unite to take action," indicating that "in the past two decades, the United States has done its work to support Iraq, enhance security and safety, and promote prosperity for all Iraqis."

“This year, the United States and its partners have invested more than $2,000,000 to support vulnerable communities in Iraq facing the challenges of climate change in partnership with the World Food Programme and UNICEF,” she said, noting that “through these initiatives, we are trying to improve access to clean water, protect farmers’ lives, and build more climate-resilient communities.”

Romansky explained that “our programs and partnerships are producing positive outcomes, and collaboration with local Iraqi organizations and multilateral organizations is improving access to water for more than 100,000 people through investing more than 1,000,000 cubic meters of water.

Another initiative has helped more than 200,000 farmers produce thousands of tons of food and produce food using less electricity and more water,” noting that “we will continue to support Iraq’s development and Iraq’s sustainable goals for adapting to climate change.”

Romanski stated that "in cooperation with the Iraqi ministries, we participated with (UNDP), and worked together with the Iraqi government on this strategy to improve environmental protection. This includes coordination with various government agencies to effectively develop Iraq's sustainable goals, and includes launching a strategy to help Iraq improve the balance and protect the environment, as well as an environmental protection and climate investment strategy."

She pointed out that "one of our goals is to have a roadmap for a green economy that is confirmed by adequate access for women, youth, and vulnerable communities facing challenges and climate change. The national strategy for protecting and improving the environment will become a guide for the United States and other donors to support the Iraqi government, and will enhance the response and solutions to be effective, including investment in the green economy and support for modern agricultural methods, and contribute to having a more diversified economy with the support of this strategy."

She expressed her thanks to "the Ministry of Environment, the Ministry of Environment team, the US Agency, and the United Security Development Team for their assistance in launching and activating this strategy," stressing that "the role played by international supporters from donors and local experts in including this strategy with effective participation will enable Iraq to create a better economy and will be a model to be emulated."

She explained that "the United States continues to strengthen bilateral relations and we will continue to support Iraq as we work together to enhance Iraqi sovereignty, security, safety and economic opportunities for all, and that this strategy will allow us to work together," praising "the work and this strategy, and now the real work has begun as we implement this plan to have a positive impact on the entire country."   https://www.mawazin.net/Details.aspx?jimare=255075

The Dollar Stabilizes Against the Iraqi Dinar at 151 Thousand

Economy  | 09/18/2024  Mawazine News – Economy  Mawazine News publishes today, Wednesday, the exchange rates of the dollar against the Iraqi dinar in local markets.   The prices are as follows:

Selling 151,000 Iraqi dinars for every 100 dollars  --   Buying 149,000 Iraqi dinars for every 100 dollars.

https://www.mawazin.net/Details.aspx?jimare=255058

Central Bank Sales Exceeded $255 Million

Wednesday 18 September 2024 14:01 | Economic Number of readings: 69 Baghdad / NINA / The Central Bank of Iraq announced, today, Wednesday, the total sales of foreign currency through the electronic window.

The window recorded the total amounts of transfers abroad (remittances, credits) of $ 246,939,107, while the total cash sales amounted to $ 8,750,000, and the total sales amounted to $ 255,689,107.

The selling price for transfers and cash was assigned at 1310 dinars per dollar, while the bond credits and international settlements for the electronic card were at 1305 dinars. / End 11

https://ninanews.com/Website/News/Details?key=1155654

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

Seeds of Wisdom RV and Economic Updates Wednesday Evening 9-18-24

Good Evening Dinar Recaps,

THE FED OPTS FOR JUMBO 0.5% RATE CUT — WHAT IT MEANS FOR CRYPTO

The Federal Reserve cut interest rates by 0.5%. Market participants are divided on whether the larger-than-ordinary cut is good news.

It’s finally happening: US interest rates are coming down.

Federal Reserve Chair Jerome Powell announced on Wednesday that the nation’s central bank will cut interest rates by 0.5%, bringing them to a range between 4.75% and 5%.

“The U.S. economy is in good shape. It is growing at a solid pace. Inflation is coming down,” Powell said.

Bitcoin rose half a percentage point to $60,500, while other major crypto assets like Ethereum and Solana stayed steady.

High interest rates make it more expensive for people to borrow money, and incentivises investors to buy risk-free Treasury bonds to earn yield.

When rates come down, however, taking loans becomes easier, which dynamises the economy, and investors are nudged to buy riskier assets like stocks and crypto.

The Fed began its course of interest rate increases in March 2022 to combat raging inflation. At the time, rates were 0%. By July 2023, they had been hiked to between 5.25% to 5.50%, marking the fastest and largest rate hike cycle in US history.

0.25% or 0.5%?
The lead-up to the rate cut announcement was somewhat uncommon because this time traders didn’t know what to expect: an ordinary 25 basis point cut, or a larger 50 bps cut. A basis point equals one-hundredth of a percentage point.

The market had priced the odds of a 0.5% cut at 61%, FedWatch data showed, while a 0.25% cut was given a 39% chance of occurring.

Even investment banks were divided on the issue, with Goldman Sachs and Morgan Stanley predicting a 0.25% cut, and JPMorgan, 0.50%.

Logically, you’d expect a bigger rate cut to be positive for investors, since it makes liquidity available faster. But calls for a 0.5% rate cut emerged alongside concerns that the US economy might be entering a recession.

“The 50 [basis point] cut might send a wrong message to markets and the economy. It might send a message of urgency and, you know, that could be a self-fulfilling prophecy,” George Lagarias, chief economist at consulting firm Forvis Mazars, told CNBC.

But recession fears have been overblown, Quinn Thompson, founder of crypto hedge fund Lekker Capital, told DL News. And investors worried about the market selling off are putting too much emphasis on precedent.

“People are simply looking at the two or three historical examples where the Fed started with 50 bps cuts and saying: ‘Oh, every time they cut 50 bps first, the market goes to shit,’” Thompson said.

@ Newshounds News™

Source:  DL News

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FEDERAL RESERVE MEETING MAJOR HIGHLIGHTS AND KEY POINTS

Federal Reserve cuts federal funds rate by 50 basis points to 4.75%-5.00%, aiming to balance inflation and economic stability. he added.  

• ️Fed cuts federal funds rate by 50 basis points to 4.75-5.00%, first reduction in four years.

• ▪️Powell cites solid economic growth and nearing 2% inflation target as key reasons for rate cut.

• ▪️Future projections suggest Fed rates could drop to 2.9% by 2026, amid cautious investor reactions.

The Federal Reserve lowered the target range for the federal funds rate by 50 basis points on Wednesday. This action brings the rate to a new range of 4.75% to 5.00%, which is the first decline in four years.

The decision is in line with the Fed’s policy of ensuring that inflation is kept in check without jeopardising the stability of the economy.

Federal Reserve’s Justification for Rate Cut

The Federal Reserve announced the rate cut citing recent economic figures that pointed to growth at a steady pace, but with some moderation. Although job creation has slowed down and the unemployment rate has risen marginally, inflation is slowly moving towards the Fed’s target of 2%.

@ Newshounds News™

Read more:  CoinGape   

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DONALD TRUMP MAKES HIS FIRST BITCOIN PURCHASE ON A BURGER AT PUBKEY BAR IN NEW YORK CITY

@ Newshounds News™

Read Here:   The Block

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BRICS announced a new payment system that excludes the U.S. Dollar  |  Youtube

@ Newshounds News™

Source: Seeds of Wisdom Team Currency Facts  

~~~~~~~~~

Newshound's Currency Facts Youtube and Rumble

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Thank you Dinar Recaps

Some “BRICS News” Wednesday 9-18-2024

BRICS Deal with Egypt and dismiss US and France's offers: What's next?

Fastepo:  9-18-2024

In recent years, Egypt has shifted its foreign policy and economic alliances away from its traditional Western focus, particularly on the U.S. and Europe, in favor of deeper engagement with Eastern powers, notably China and Russia, as well as key Middle Eastern nations.

This pivot reflects Cairo's pragmatic response to evolving global dynamics, as it seeks to diversify its economic and geopolitical ties amid shifting international power structures.

 Egypt’s partnership with China has flourished, primarily driven by shared economic and strategic interests. As a crucial participant in China's Belt and Road Initiative (BRI), Egypt plays a pivotal role in facilitating global trade through the Suez Canal, a critical artery in China’s maritime network.

Chinese investments in Egypt have surged, particularly in infrastructure, manufacturing, and energy sectors. The Suez Economic and Trade Cooperation Zone, which hosts numerous Chinese enterprises, exemplifies Beijing's commitment to strengthening Egypt’s industrial base.

China has now become the largest investor in Egypt's Suez Canal Economic Zone, with a notable presence in the construction of Egypt’s new administrative capital, a megaproject symbolizing Cairo’s ambitions for modern development. China’s approach—centered on non-interference and purely economic cooperation—contrasts with the U.S.’s historically military-driven engagement.

This has made Beijing an attractive alternative partner for Egypt. In 2022, bilateral trade between China and Egypt reached approximately $13 billion, and large-scale Chinese-funded infrastructure projects have helped create jobs and bolster Egypt's manufacturing capacity.

This growing relationship signals a broader reorientation in Cairo’s external relations, aimed at reducing its reliance on Western aid, often conditioned on political reforms and human rights concerns.

https://www.youtube.com/watch?v=tWY9QBtuuLw

From FARMS to FINANCE: BRICS Crushes U.S. Economic CONTROL

Think BRICS:  9-18-2024

The BRICS nations are shaking up the global economic order, challenging U.S. dominance in trade, agriculture, and finance. This video explores how BRICS economic dominance is reshaping the world by disrupting reliance on the U.S. dollar and shifting global trade dynamics.

With a growing agricultural trade deficit, the U.S. is losing its long-held position as the world’s breadbasket, while BRICS countries like China and Brazil are stepping into the spotlight.

 From China’s shocking cancellation of massive wheat orders to the rise of a BRICS alternative payment system, the video explains how these moves are impacting U.S. farmers and global food markets.

The multipolar world BRICS envisions, with local currency trade, is steadily materializing, reducing dependency on Western financial systems like SWIFT.

Countries are increasingly settling trade in renminbi and other local currencies, furthering de-dollarization. As the U.S. agricultural exports decline and BRICS nations solidify their financial infrastructure, this shift could lead to a future where the China global reserve currency plays a central role, destabilizing traditional power structures.

The video also discusses how these changes are causing a disruption in the agriculture market, posing a threat to global food security.

00:00 - Introduction: BRICS nations leading global economic transformation

 00:38 - BRICS redefining trade and finance through local currencies

01:14 - U.S. agricultural dominance challenged by BRICS nations

02:32 - China's wheat cancellations impact global markets

03:47 - U.S. crop price decline and BRICS trade shifts

04:22 - BRICS countries trading outside the U.S. dollar

 04:56 - BRICS economies surpass G7 in GDP at purchasing power parity

 05:40 - BRICS' financial infrastructure and development bank expansion

06:14 - BRICS' alternative international payment system

06:49 - U.S. response to BRICS and potential tariffs

 07:26 - China's nuanced strategy and rise of a multi-currency system

 08:07 - Regionalization of the global economy and challenges for the West

 08:43 - BRICS fostering a multipolar world and influencing agriculture

09:21 - BRICS economic growth and global South's increasing influence

10:03 - Conclusion: BRICS reshaping global economic and trade systems

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