Iraq Economic News and Points To Ponder Thursday AM 10-31-24

The Arab Accounting Dinar: A Strategic Tool For Arab Economic Integration

 October 30, 2024 Last updated: October 30, 2024 

  Hussein Al-Falluji*   In light of the growing economic challenges facing Arab countries,   the role of the Arab Accounting Dinar is emerging as an important strategic tool that may contribute to enhancing economic integration and providing effective solutions to common Arab problems.

 Perhaps many followers of Arab affairs are unaware of the existence of the Arab Accounting Dinar,  this important economic tool that can play a vital role in promoting economic integration and providing effective solutions to common problems among Arab countries.

Some people wonder about the reasons for not activating this vital project optimally, despite the great opportunities it provides for achieving financial stability and economic prosperity.

The Arab Monetary Fund relies on the Arab Accounting Dinar as the official base currency, which differs from the currencies circulating in Arab and international markets.

 The arithmetic exchange rate of the Arab dinar was fixed at the equivalent of three units of Special Drawing Rights specified by the International Monetary Fund.

 Special Drawing Rights are an international reserve asset created by the International Monetary Fund in 1969 to supplement the official reserves of member states.

 The value of these rights is determined based on a basket of five major international currencies: the Chinese yuan, the US dollar, the European euro, the Japanese yen, and the British pound.

 This link to a basket of strong currencies gives the Arab Accounting Dinar relative stability and reduces the risk of global exchange rate fluctuations, enhancing confidence in it as an instrument of financial exchange.

The use of the Arab Accounting Dinar can contribute to facilitating commercial and financial operations between Arab countries, as

 it provides a common monetary unit for settling transactions, which may reduce currency conversion costs and increase the efficiency of financial systems.

This unification helps promote intra-regional trade, opens new horizons for economic cooperation, and stimulates growth by expanding markets and facilitating the movement of goods and services.

 In addition, the Arab Accounting Dinar represents a step towards greater financial independence for Arab countries.

 By reducing dependence on foreign currencies, Arab countries can better control their monetary policies and mitigate the negative effects of global economic fluctuations.

This enhances the ability to plan financial and investment with greater confidence, supporting sustainable development and investment in vital projects and infrastructure.

 The widespread use of the Arab Accounting Dinar may also open new opportunities for joint investment among Arab countries.

 It facilitates the financing of major regional projects and enhances cooperation between Arab financial institutions.

By providing a stable and unified financial environment, Arab countries can coordinate their financial and investment policies, which enhances the competitiveness of Arab economies at the international level.

 Moreover, the Arab Accounting Dinar reflects a collective commitment by Arab countries to achieving integration and unity.

It is not just an economic tool, but a symbol of cooperation and solidarity in facing common challenges.

 This commitment strengthens confidence among member states and paves the way for further cooperation in other areas such as education, health and culture.

 Although there may be challenges to promoting the use of the ABD, such as the need to modernize financial infrastructure and coordinate monetary policy, the potential benefits make it an essential investment for the future.

Political will and joint cooperation are the basis for achieving success in this endeavor and overcoming obstacles to achieve the desired economic integration.

 In conclusion: Activating and adopting the Arab Accounting Dinar represents a real opportunity for Arab countries to enhance economic integration and achieve common prosperity.

By expanding the use of this unit of account and activating the proposals supporting it, Arab countries can build a more stable and prosperous future for their people, based on economic cooperation, solidarity and unity.

 * Independent politician  

 https://www.xe.com/currencyconverter/convert/?Amount=1&From=XDR&To=USD

 1.00 IMF Special Drawing Rights = 1.3302209 US Dollars

1 USD = 0.751755 XDR

https://mustaqila.com/الدينار-العربي-الحسابي/     

The Unfair Decision Of The Central Bank Of Iraq To Reduce Interest Rates For Banks And Issue Securities

Shawan Zangana  2024-10-30 - The Central Bank of Iraq decided, Thursday 10/24/2024, to reduce the annual interest rate between it and the banks registered with it from 7.5% to 5.5%, and to reactivate the work with securities (Islamic certificate of deposit and cash transfers) between it and the banks operating in Iraq, with an annual return of 4% for 14 days, and an annual return of 5.5% for 182 days.

Note that the maximum investment ceiling was set not to exceed 50% of the total private sector deposits with the bank, and that the bank’s investment ceiling in one auction should not exceed (500) billion Iraqi dinars.

What does this decision mean?

The following is understood from this decision:

 1- The Central Bank reduced the interest rate on lending to banks operating in Iraq by 2%, and attributed this to its desire to stimulate local investment, direct liquidity towards alternative investments, develop the national economy, and create stability.

 The Central Bank deliberately forgot to point out that this reduction in the interest rate is for the benefit of the banks, and not for the benefit of companies and individuals, as the banks do not, based on the Central Bank reducing the interest rate in their favor, reduce the interest rates on lending to companies and individuals by the same percentage, so that This support includes them, and liquidity is transferred to development and investment destinations.

 Therefore, it clearly appears that the goal of the central bank is to provide liquidity to some banks, and not to citizens, so that these banks can lend to the influential class around them and smuggle currencies abroad.

 This procedure will provide banks and financial institutions working with the Central Bank of Iraq with great liquidity to practice interest trade (carry trade), as

these banks will be able to employ the funds borrowed from the Central Bank, at a low interest rate, by depositing them with international financial institutions, in exchange for annual returns, and at high interest rates. (For example, Turkish banks pay annual interest of up to 50% on deposits), and

thus, these banks will reap huge profits, and with the money of the Iraqi people stored in the Central Bank, Without using their own financial assets, these banks will also seek to employ the funds borrowed from the central bank in speculation in global markets and stock exchanges, with the aim of reaping quick and abundant profits.

 This investment of central bank funds by banks will inevitably harm the Iraqi economy, which suffers from structural dysfunction and chronic fragility, not to mention that this investment of money is forbidden by Sharia, which is, at the same time, a door to usury, not because of interest, but because of trafficking. With it.

2- The Central Bank has issued securities, in the form of Islamic certificates of deposit and cash transfers, with fixed and specified returns and terms, and attributed this to its endeavor to provide a window for banks under US Treasury sanctions, which are unable to deal in dollars, and have large cash liquidity in Iraqi dinars.

To invest the surplus local cash it has with the Central Bank, through its possession of Islamic certificates of deposit and cash transfers, in order to reap lucrative financial returns, while

 it was necessary to The Central Bank is to punish these banks for their legal and ethical violations, and not reward them with financial returns from public funds and from citizens’ rights.

3- Government borrowing through the issuance of sovereign bonds is considered one of the central bank’s monetary policy tools, but at the same time it indicates that the Ministry of Finance is suffering from a shortage of cash liquidity in the local currency, and this leads us to the following question:

 Why is the Ministry of Finance suffering from A shortage in the monetary supply in the local currency, despite the cash issuance that exceeded 100 trillion Iraqi dinars?

 The answer may be that there is a large monetary mass in the local currency outside the banking system, and that a portion of it is circulated at home and abroad for the purposes of financing smuggling operations.

Implications Of This Decision

This decision will have the following effects:

 1- The decision will lead to an increase in the exchange rate of the dinar towards the dollar and other currencies, but temporarily, as the demand for the Iraqi dinar will increase, and

this will cause an increase in its exchange rate, but it will soon move towards a decline towards the dollar, as a result of operations to exchange it for the dollar, for the purposes of smuggling or employment. External cash.

 2- This decision will provide large liquidity to banks and financial institutions, which will be exploited to carry out financial transactions outside the development process, with the aim of reaping huge and quick profits.

 The Iraqi economy will be exposed to serious damage, as a result of wasting its money and using it by an influential faction to achieve its own interests at the expense of the people, in When the central bank was supposed to reduce the interest rate, on the condition of implementing development projects, and allowing banks to borrow from it, within the scope of the files that individuals and companies submit to local banks, in order to prevent these banks from exploiting these funds for their own interests, outside the development process.

 3- This decision, in this form, is a waste of public money, a violation of the rights of citizens, and an economic crime, punishable by law. The Central Bank of Iraq should avoid such decisions, which are economically harmful and forbidden by Sharia.

 4- This decision, and similar decisions taken by the Central Bank, have caused, and are causing, the deepening of the imbalance and fragility in the Iraqi economy and its monetary policy, and the prolongation of monetary fluctuation and instability.

 Conclusion

It appears that the decision to reduce the interest rate was taken and designed in accordance with what the interests of the ruling class over money in Iraq require, and not in accordance with the interests of national development and the future of the rentier Iraqi economy, which needs financing to diversify its sources of income.

 It also appears that the securities are designed to achieve the interests of the sanctioned banks. By the US Treasury, while it was supposed to punish her and cancel her vacations, instead of rewarding her by providing her with lucrative profits from the central bank.

 I warn the Central Bank of Iraq against making decisions that harm the currency and deepen its wounds, and

 I call on it to conduct an orthodox policy that is consistent with the principles of economics and monetary policy, and to avoid formulating policies or making decisions that contribute to achieving the interests of powerful fragmentation in the country and abroad.    https://shafaq.com/ar/مقـالات/قرار-البنك-المركزي-العراقي-الجا-ر-بخفض-سعر-الفا-دة-للمصارف-و-صدار-ال-وراق-المالية    

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

Seeds of Wisdom RV and Economic Updates Thursday Morning 10-31-24

Good Morning Dinar Recaps,

SOME EU STATES UNHAPPY WITH ECB CONTROLLING DIGITAL EURO LIMITS – REPORT

Politico reported that some European states, including Germany, France, the Netherlands and six other countries, are concerned about the European Central Bank (ECB) having the right to specify holding limits for the digital euro central bank digital currency (CBDC).

A concern is that the ECB could set the wallet limits too high, resulting in deposits flowing out of banks. One diplomat called it a “battle for power” between central banks and politicians. 

An opposite worry is that the limits might be viewed as inhibiting financial freedoms and hence a Big Brother move. A related concern is that the digital currency could be out of touch with consumer needs and not adopted.

While the EU’s treaty gives the ECB certain privileges, the digital euro will have its own legislation, which has yet to be passed. 

Before the recent European elections, several amendments were proposed to a draft. Politico viewed the notes of one of the meetings, which showed that nine countries objected to the ECB deciding on wallet holding limits.

If the ECB sets the holding limit, it views this as preserving any decision from political pressures.

How would digital euro holding limits work?
A couple of key points were not covered in the Politico piece. Firstly, the whole point of the digital euro is to create a pan European payment system in an attempt to dislodge the dominance of non-European players such as Visa and Mastercard. While SEPA may be pan European, it is purely a backend solution. Hence, it seems logical that there needs to be a single limit for the entire EU block.

If the ECB doesn’t get to decide, how would it work practically? An annual vote on limits?

Messy waterfalls
The messier point is the implementation of the holding limits. If the holding limit is €3,000 and someone receives money that pushes the balance over, then any excess funds will be swept into a bank account.

On the other hand, if someone makes a payment and doesn’t have enough digital euros in their wallet, it can automatically pull the money from the connected bank account. These are the waterfall and reverse waterfall functions.

This has a few implications. At a practical level, some people like to keep tabs on how they spend money. If there’s a lot of movement between your bank and the digital euro wallet, that gets rather messy and hard to track. A lack of visibility also helps fraudsters.

Changing tack, one of the potential advantages of a CBDC is it could provide super efficient payments. However, with the waterfall and reverse waterfall, some payments could have three payment legs: the sender doesn’t have enough funds so it pulls money from their bank; the CBDC payment; and the recipient now has too much in their wallet, so that’s swept into their bank account.

That’s why several countries believe there will be pressure to provide higher limits, so there’s less need to use the waterfall functionality.

Some have noted that the waterfall also requires all banks in the EU to support real time payments 24/7, involving significant work. However, EU instant payment regulations were adopted earlier this year, so that will be a requirement with or without the digital euro.

Debates around setting the holding limit
In one of the more recent legislative proposals, it was suggested that banks and payment providers could set the limits themselves. The Dutch central bank published a digital euro paper concluding that holding limits would be critical, especially during the transition phase.

 Another report commissioned by the European Banking Federation found a €3,000 limit with a 40% takeup would increase bank funding costs by €8.8 billion.

For its part, the ECB says it would set the limits based on the economic circumstances at launch. However, one of the tasks it’s been working on recently is coming up with a methodology to make the decision.

@ Newshounds News™

Source:  Ledger Insights

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STABLECOINS WILL THRIVE OVER CBDCS: CIRCLE CEO

Jeremy Allaire believes most governments are open-minded toward crypto and stablecoin regulations.

Speaking at the current Binance Blockchain Week in Dubai, the CEO of Circle, the issuer of the second-largest stablecoin, expressed optimism regarding global regulation toward the sector.

He also asserted that people would prefer privately-issued stablecoins over government-launched CBDCs, which has been evident in China.

Allaire spoke a lot about the current regulatory environment in numerous countries and outlined the overall positive sentiment coming from most. In fact, he noted that even those who have been publicly against the sector or sitting on the sidelines, are actually watching carefully what others would do and are ready to follow suit with comprehensive regulations.

He believes the next 12 months will be crucial for the stablecoin space, which has already grown to roughly $170 billion, with Tether’s USDT and Circle’s USDC responsible for the lion’s share.

However, Allaire noted that this is still a fraction of the global financial space, which is hundreds or even thousands of times larger. This means that the stablecoin industry still has lots of room for growth.

On the question whether the majority of global population will prefer central bank digital currencies or stablecoins, Circle’s CEO was adamant that they will go for the latter.

This is because people prefer privately-issued products and the innovation coming from them, rather than government-backed alternatives.

He outlined China as a good example. The world’s most populated nation launched its own CBDC a few years ago, but is yet to see actual usage, according to Allaire. He said people only use it once the government provides free coupons.

@ Newshounds News™

Source:  CryptoPotato

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🌱TOP QUESTIONS ABOUT EXCHANGING FOREIGN CURRENCY ANSWERED! SOWT   |  Youtube

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Source:  Seeds of Wisdom Team RV Currency Facts

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MilitiaMan & Crew News Reporting-Security & Stability-Sinjar Allocations-Unprecedented Developments

MilitiaMan & Crew News Reporting-Security & Stability-Sinjar Allocations-Unprecedented Developments

10-30-2024

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=C44Lh9B-tec

Iraq Economic News and Points To Ponder Wednesday Evening 10-30-24

Continuing Talks Between The Kurdistan Regional Government And The Federal Government To Resolve Outstanding Issues

Kurdistan Region President Nechirvan Barzani discussed on Wednesday morning with Iraqi Parliament member and head of the Azm Alliance parliamentary bloc, Muthanna al-Samarrai, the general situation in the country, in addition to the Kurdistan Parliament elections and relations between Erbil and Baghdad, as well as the upcoming general elections in Iraq.

During the meeting, al-Samarrai congratulated President Barzani on the success of the Kurdistan Parliament elections, according to a statement issued by the presidency of the region.

During the meeting, both sides praised the ongoing talks between the Kurdistan Regional Government and the federal government to resolve outstanding issues, as they agreed that addressing these issues benefits Iraq as a whole and enhances the country's stability.

In another context, the risks resulting from the complex situation in the Middle East region were discussed, as they stressed the need for Iraq not to get involved in regional conflicts and disputes, and to work to spare the country their repercussions.  https://www.radionawa.com/all-detail.aspx?jimare=40009

Al-Alaq: The Volume Of Currency In Circulation Exceeds 100 Trillion Dinars.

Banks   Economy News – Baghdad   103 views  Added 10/30/2024 -- Al-Alaq: The volume of currency in circulation exceeds 100 trillion dinars.   https://economy-news.net/content.php?id=49311

Monetary Policy Price And Reactivation Of Securities
 
October 30, 2024     Based on monetary policy trends to enhance access to targeted inflation rates 
     in a way that does not conflict with expected economic growth rates, and
     is consistent with the policy of developing deposits and increasing credit ratios aimed at targeting projects,  relying thus on following the approach based on data obtained from the banking sector ..

For more click here    https://cbi.iq/static/uploads/up/file-173027681336323.pdf   
 
https://cbi.iq/news/view/2703 
 
~~~~~~~~~~ 
(approximate & incomplete translation of https://cbi.iq/static/uploads/up/file-173027681336323.pdf)  
 
DATE:  30/10/2024  (Population Census... the Pillar of Development)
Exchange Companies for the Art (4)
 
M/ Opening Branches    M/ Monetary policy rate and reactivation of securities
 
Based on the monetary policy orientations in enhancing access to targeted inflation rates in a manner that does not conflict with the expected economic growth rates, and is consistent with the policy of developing deposits and increasing credit ratios aimed at targeting projects, relying on the approach based on data obtained from the banking sector, the Board of Directors of this bank decided the following:-
 
1. Reducing the monetary policy rate to be (5.5%) instead of (7.5%).

2. Reactivating securities (Islamic certificates of deposit; traditional transfers) according to an annual plan and with two terms:
     A. Term (14) days with a return of (4%).
     B. Term (182) days with a return of (5.5%).

3. The maximum investment limit shall not exceed (50%) percent of the total private sector deposits at the bank, which are sent to the Open Market Operations Office via the weekly liquidity management form within the system (BSRS), where data received two weeks before the auction implementation date will be approved. In case the bank exceeds the percentage set above, it will be deprived of the auction return.

4. The bank's investment ceiling in a single auction shall not exceed (500) billion dinars.

5. For further inquiries, you may contact the office via e-mail (omo.office@cbi.iq).
 
With appreciation.
Attachments:-
- Auction issuance plan for (14) days.
- Auction issuance plan for (182) days.

Al-Sudani Discusses With The Commander Of The NATO Mission In Iraq Ways Of Cooperation In Light Of The End Of The International Coalition Mission

Wednesday 30 October 2024 18:05 | Politics Number of readings: 125  Baghdad / NINA / Prime Minister and Commander-in-Chief of the Armed Forces Mohammed Shia al-Sudani discussed with the Commander of the NATO Mission in Iraq, Lieutenant General Lukas Schweizers, ways of cooperation in light of the end of the international coalition mission.

The Prime Minister's media office said in a statement: "Al-Sudani met today with the Commander of the NATO Mission in Iraq. During the meeting, ways of security and military cooperation between Iraq and the alliance countries were discussed, in light of the end of the mission of the international coalition to fight ISIS in Iraq."

Al-Sudani was briefed on the outcomes of the high-level meeting between Iraq and the alliance, which was held in Brussels last August, and directed the formation of a joint committee between the two sides, headed by the Iraqi side by the National Security Advisor, to discuss all frameworks of cooperation.

The Prime Minister stressed Iraq's desire to move to bilateral cooperation with the alliance countries that participated in the international coalition, and to enhance the areas of training and joint advice with the Iraqi armed forces, especially after the Iraqi forces have acquired advanced levels of technical and field effectiveness.

Al-Sudani also touched on the developments in the security situation in the region, with the continued Zionist aggression on Gaza and Lebanon, its threat to regional peace, and its attempts to expand the conflict, reiterating the importance of international and UN organizations and major countries assuming their roles and responsibilities towards stopping the aggression and preventing the genocide of the steadfast Palestinian people. /  https://ninanews.com/Website/News/Details?key=1165272  

Ministry Of Justice: Completing The Electronic Documentation System And Canceling The Validity Of Paper Issuances Of Agencies

Buratha News Agency1662024-10-30   The Ministry of Justice announced today, Wednesday, the completion of work on the electronic documentation system and the cancellation of the validity of paper issuances of agencies in all notary public departments in Baghdad and the governorates.

The ministry stated in a statement that "based on the directives of the Minister of Justice, Khaled Shawani, to rely on modern technologies in the work of the judicial departments, and in cooperation with the General Secretariat of the Council of Ministers, the Notary Public Department announced the completion of work on the electronic security code system (QR) for all agencies and in all departments affiliated with it in Baghdad and the governorates."

The ministry quoted the Director General of the Notary Public Department, Youssef Hawiz Khorshid, as saying, "All 178 notary public departments in Baghdad and the governorates have been fully equipped with the requirements for working with the barcode system in order to achieve a complete transition to digitization in the department's work."   https://burathanews.com/arabic/news/452191

Basra Crude Continues To Decline

Wednesday 30 October 2024 | Economic Number of readings: 188   Baghdad / NINA / Basra Heavy and Basra Medium crude prices witnessed a decline, despite the stability of global oil prices.  Basra Heavy crude prices fell by $1.79 to reach $66.01, and Medium crude prices fell by $1.79 to reach $69.16.

Oil prices stabilized during Asian trading on Wednesday, after industrial data showed a surprise decline in crude and gasoline inventories in the United States, after losses in the previous two sessions due to the possibility of a decline in the intensity of the conflict in the Middle East. / End9 https://ninanews.com/Website/News/Details?key=1165160

Rafidain Bank Studies Establishing An Electronic Platform For Trading Government Bonds

Banks  Economy News – Baghdad   Rafidain Bank confirmed, on Wednesday, that it is studying the establishment of an electronic platform for trading government bonds.

A statement by the bank received by "Al-Eqtisad News" stated: "Under the direct supervision of the Minister of Finance and the Governor of the Central Bank of Iraq, Rafidain Bank sponsored an expanded meeting in cooperation with the Securities Commission and the Iraq Stock Exchange to discuss launching an electronic platform for trading government bonds.https://economy-news.net/content.php?id=49303

Customs Announces A Significant Increase In Trebil Port Revenues After Linking It To The ASYCUDA Program

Trebil border crossing between Iraq and Jordan   Money and business  Economy News – Baghdad  The General Authority of Customs confirmed, on Wednesday, that linking the Trebil port to the global ASYCUDA program has reduced cases of smuggling, manipulation and forgery, while indicating a significant increase in the port’s revenues.

The Director of the Trebil Border Customs, Asim Hamid Al-Shawka, said in a statement reported by the official news agency, and reviewed by "Al-Eqtisad News", that "the Trebil port is a commercial and vital port and one of the most important ports in the western region in terms of revenues and exports that pass through it", noting that "it is a link between the Hashemite Kingdom of Jordan and the world through the port of Aqaba."

He added that "the reasons for the increased flow of commercial traffic inside the port are due to the ease of work there and the facilities it provides in accordance with the controls and instructions," noting that "this has made most traders import their goods through the Trebil border port."

Al-Shawka explained that "the movement of travelers from Iraq to Jordan is witnessing large numbers of travelers entering and leaving from Iraqis, Arab tourists and foreigners," indicating that "the credit goes to all the security forces that secured the expressway that connects the port to Anbar Governorate, reaching Baghdad and the rest of the governorates of Iraq."

He continued: "All goods are imported through our center from various global origins, the most important of which are food, agricultural fertilizers, dyes, construction materials, human medicines, veterinary medicines, medical supplies, agricultural materials and cars,"

noting that "our center is distinguished by a transit line for transporting goods from various countries of the world through Iraq to neighboring countries, and various Iraqi products are exported through it to the Hashemite Kingdom of Jordan and the rest of the world, the most important of which are soft drinks, juices, dates, asphalt, furniture and other Iraqi products."

He pointed out that "a crude oil pipeline passes through our center to the Hashemite Kingdom of Jordan, and based on the directives of Prime Minister Mohammed Shia Al-Sudani and Minister of Finance Taif Sami, and under the direct supervision of the Director of the General Authority of Customs Hassan Hamoud, the port was linked to the global ASYCUDA program, which enhanced the reduction of cases of smuggling, manipulation and forgery, and led to a significant increase in revenues over previous years."

He pointed out that "cases of smuggling food items unfit for human consumption were monitored and destroyed, and the smugglers were referred to the judiciary to receive their just punishment," explaining that "this success was achieved through cooperation between the General Authority of Customs, represented by the Trebil Customs Center, and the Border Ports Authority and all supporting departments in terms of the mechanism for exchanging information.

We must not forget the Anbar government, represented by the Anbar Governor and the Chairman of the Provincial Council, with their unlimited support for the Western Region Customs Directorate and the ports affiliated with the Western Region."   https://economy-news.net/content.php?id=49310

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

Seeds of Wisdom RV and Economic Updates Wednesday Evening 10-30-24

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STABLECOINS BOOSTING DEMAND FOR US T-BILLS: TREASURY DEPT

The United States Treasury Department is taking an interest in stablecoins and tokenization.
Stablecoins seem to be increasing demand for short-term United States government bonds known as Treasury bills, according to US Department of the Treasury meeting minutes published Oct. 30.

In an Oct. 29 meeting, the US Treasury’s Borrowing Advisory Committee weighed the benefits of stablecoin adoption and Treasury bill tokenization, with one member suggesting the US create a permissioned blockchain for T-bills, the minutes said.

The comments are the latest from US government officials indicating a nascent openness to meaningfully integrating blockchain technologies into the US financial system.

“[B]ecause most stablecoin collateral reportedly consists of either Treasury bills or Treasury-backed repurchase agreement transactions, the growth in stablecoins has likely resulted in a modest increase in demand for short-dated Treasury securities,” one Committee member said, according to the minutes.

The committee said T-bill tokenization “could lead both to operational improvements and to innovation in the Treasury market” but could also pose risks to financial stability.

One member suggested that “tokenization in the Treasury market would likely require the development of a privately controlled and permissioned blockchain managed by a trusted government authority.”

Stablecoins — tokens pegged to the US dollar — are emerging as the core infrastructure for trading and payments.

Total stablecoin market capitalization hit record highs in 2024 and now approaches $180 million, according to CoinMarketCap.

Tether USDT dominates among stablecoins with a market capitalization of $120 billion.

Circle’s USD Coin USDC is a distant second, with a market capitalization of approximately $35 billion, according to CoinMarketCap.

Meanwhile, tokenized real-world assets (RWAs) — from Treasury securities to artworks — represent a $30-trillion market opportunity globally, Colin Butler, Polygon’s global head of institutional capital, told Cointelegraph in August.

Demand is surging for products that tokenize T-bills and other highly liquid yield-bearing assets.

Among the largest in terms of assets under management (AUM) are BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin OnChain US Government Money Fund (FOBXX), with AUM of approximately $530 million and $410 million, respectively.

@ Newshounds News™

Source:  CoinTelegraph

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A Tax-free Crypto era?
This idea of tax-free crypto transactions has generated buzz among investors and entrepreneurs. If the U.S. is successful in eliminating capital gains taxes on crypto transactions, it could position itself as a global crypto hub. This could attract significant capital from international investors and encourage U.S.-based companies to invest in blockchain and crypto technology.

For an average crypto holder, this could be the start of a new era where crypto can be used as both a payment method and a store of value without further tax concerns.

@ Newshounds News™

Source:  CoinPedia

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RIPPLE NEWS: EX-CTO’S GAME-CHANGING ANNOUNCEMENT COULD REDEFINE XRP LEDGER

▪️ Ex-Ripple CTO Stefan Thomas says he’s working on a new version of Codius, the smart contract hosting protocol that allows more versatility and flexibility.

▪️One expert says this is a big deal for the XRP Ledger as it allows off-chain smart contract execution and cross-ledger
 compatibility.

Stefan Thomas, Ripple’s first Chief Technology Officer (CTO), is developing a new version of Codius, the smart contract protocol he developed a decade ago. This could open up new opportunities for the XRP Ledger.

Today, smart contracts are widespread and easier than ever to write and deploy. However, this wasn’t always the case. Back in the early 2010s, these contracts were still in their early stages and quite rigid. Thomas, who was the CTO of Ripple at the time, set out to change this, and Codius was born.

While it initially launched as a Ripple project, Codius soon gained a life of its own. Essentially, it offers a more versatile and flexible approach to deploying smart contracts, which allows them to run on any blockchain, dApp or server. These contracts can also interact with multiple other ledgers and blockchains, besides the one on which they are deployed.

Codius died years ago, but Thomas—now the CEO of Coil—recently revealed that he is working on reviving it.

Smart contracts have evolved since the days of Codius, and many of the features the team was working on in 2014 can now be found in existing blockchain networks. However, Codius retains some key tech that one expert believes could be vital to the XRP Ledger today.

Could Codius Accelerate XRP Ledger Adoption?
In a thread on X, renowned writer and entrepreneur Max Avery revealed that Codius’s unique features include decentralised hosting, which creates a peer-to-peer network for services, built-in billing, which allows programs to pay for their operations and language flexibility, which allows developers to use the language they are most proficient in.

But why does this matter for the XRP Ledger? Well, according to Avery, integrating Codius’ technology would introduce off-chain smart contract execution, which would reduce the load on the XRP Ledger and allow it to continue processing transactions at high speed.

Codius also comes with cross-ledger compatibility, which would allow dApps on the XRP Ledger to interact with those from multiple other blockchains.

“Codius’s blockchain-agnostic approach enhances versatility, enabling complex decentralized applications and cross-chain operations,” he noted.

Other benefits would include flexible smart contracts and a scalable application layer that distributes the computation load.

He added:  “Codius enhances the XRP Ledger ecosystem by providing off-chain smart contract execution, preserving and potentially increasing XRP’s TPS, and opening up new use cases through interoperability. It’s a significant step forward for the XRP Ledger.”

XRP trades at $0.524, gaining 2% in the past day

@ Newshounds News™

Source: Crypto News Flash  

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CENTRALIZED STABLECOINS MAY POSE RISK TO DEFI — CURVE FINANCE FOUNDER

As centralized US dollar-pegged stablecoins continue to gain popularity, the potential for regulatory capture has grown.

The potential risks of overcollateralized stablecoins have recently come into sharper focus. Michael Egorov, founder of the decentralized borrowing and lending platform Curve Finance, argued that these risks are not necessarily the reserve-related risks commonly noted by investors but geopolitical risks posed by government regulation.

In an interview with Cointelegraph, Egorov said that the underlying assets backing collateralized stablecoins, including cash deposits in financial institutions and government securities such as United States Treasury bills, are vulnerable to asset freezes and seizures.

The Curve founder’s answer to these potential sanctions is to achieve maximum decentralization through algorithmic stablecoins, which do not rely on physical cash deposits or short-term cash equivalents:

“If you have something totally decentralized, then it is just software running onchain autonomously, so you cannot really do anything to it, and, in principle, it's still fully trackable.”

“For [the US dollar], keys are never yours. So, that’s a problem,” Egorov stated, before asserting that truly decentralized stablecoins, provide “algorithmic assurance” to investors that their funds won’t evaporate due to asset seizures.

Stablecoins backed by physical fiat assets lack any such guarantee, Egorov told Cointelegraph.

Stablecoins and growing geopolitical risk
The geopolitical risks posed by centralized stablecoins outlined by the Curve Finance founder are a growing concern among industry executives and lawmakers.

On Oct. 25, The Wall Street Journal published a story claiming that USDt
issuer Tether was under investigation by US authorities for allegedly breaking Anti-Money Laundering laws and US sanctions.

Tether CEO Paolo Ardoino denied the claims and outlined the company's reserve assets backing the USDT stablecoin.

During a recent appearance at the Plan B event in Lugano, Switzerland, the Tether CEO also argued that the European Union’s Markets in Crypto-Assets Regulation (MiCA) poses systemic risks for crypto and financial institutions due to banking reserve requirements.

Ardoino explained that the MiCA regulations require stablecoin issuers to hold at least 60% of their deposits in regulated banks, which can lend 90% of those assets to clients and create significant deposit risk for stablecoin firms in the event of bankruptcy or bank failure.

@ Newshounds News™

Source:  Cointelegraph

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🌱TOP QUESTIONS ABOUT EXCHANGING FOREIGN CURRENCY ANSWERED! SOWT   |  Youtube

@ Newshounds News™

Source:  Seeds of Wisdom Team RV Currency Facts

~~~~~~~~~

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Some Iraq News Posted by Clare at KTFA 10-30-2024

KTFA:

Clare:  Monetary policy rate and reactivation of securities

October 30, 2024

Based on the monetary policy orientations to enhance access to targeted inflation rates in a manner that does not conflict with the expected economic growth rates, and is consistent with the policy of developing deposits and increasing credit ratios aimed at targeting projects, relying on following the approach based on data obtained from the banking sector .. For more click here

https://cbi.iq/news/view/2703

Clare:  What does the closure of the Central Bank platform at the end of the year mean? The Association of Banks explains

10/29/2024  Erbil -

The head of the Iraqi Banks Association, Ali Tariq, said that closing the electronic platform at the end of this year will not affect businessmen and the market for a long time, as they will quickly adapt and the market will return to normal, and the foreign trade process will be enhanced through correspondent accounts, adding that Iraq has 6 banks that have American correspondent banks, and 15 banks that have correspondent accounts with other countries to deal in different currencies.

 Ali Tariq - Chairman of the Iraqi Banks Association, during his attendance at the MERI Conference in Erbil, told 964 Network :

The platform will stop working at the end of 2024, but that does not mean that foreign trade financing will not be enhanced, whether in dollars or other currencies, but the working mechanisms will be different. Previously, the platform compensated banks that did not have correspondent accounts with American banks for the purpose of enhancing the dollar currency. After this year, all transfers will be through correspondent accounts, so the transfer capacity for dollars will be for banks that have correspondent accounts only.

Other currencies will be for banks that have accounts in the country that has that currency. For example, for the euro, the bank must have a correspondent account in a European bank, capable of completing transfers.

Therefore, the platform's downtime is not a cessation of work, but rather a transition to new work mechanisms.

There will be some changes in the market but they are temporary because businessmen have to adapt to the new mechanisms that are within international standards.

We have 6 banks that have accounts in US banks, which will be able to transfer in dollars, and other banks that will cover other currencies.

More than 15 banks are able to transfer, as they have accounts in the main countries from which Iraq imports, such as the Emirates, China, India, Turkey, and the Euro, and there are other currencies.  LINK

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Clare:  Announcement of the auction of the Central Bank of Iraq’s remittances, numbered (B319), with a term of (14) days

October 30, 2024

We would like to inform you that the Central Bank of Iraq’s remittance auction numbered ( B319 ) has been announced with a deadline of (14) days, and the auction execution date will be on Sunday, 11/3/2024, according to what was published in the Central Securities Depository System ( CSD ) and our circular numbered 371/34 on 10/24/2024, and traditional banks can participate and submit starting from the date of publication of the announcement until the execution day.

* Note that the data used to determine the investment size (50% of private sector deposits) is according to the form dated 10/17/2024, which was submitted during the period 10/20-23/2024 via the BSRS system .

https://cbi.iq/news/view/2702

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Clare:  Officially.. Parliament elects its Speaker tomorrow (document)

10/30/2024

The Iraqi Parliament published the agenda for tomorrow's session, Thursday, and allocated it to electing a new speaker of the parliament, to succeed Mohammed al-Halbousi, whose membership ended about a year ago.

Last Wednesday, October 23, six Sunni forces, led by the head of the Progress Party, Mohammed al-Halbousi, identified two paths to decide on the election of a new speaker of parliament, after a stalemate that lasted for 11 months.

This came in a joint statement by (Progress, National Masses, Al-Hasm, Iraqi National Project, Al-Sadara, and Al-Mubadara).

According to the statement, these forces confirmed that there are two paths and no third, the first is that all competing parties withdraw their candidates, and that all national forces present commit to supporting the candidate (Mahmoud Al-Mashhadani), who has received the support of the Sunni parliamentary and political majority.

The second option, according to the statement, is to take legal measures in the House of Representatives to nominate a new candidate from the Sunni political majority, supported by a large parliamentary majority, to preserve the right of the Sunni majority to nominate their representative for this position.

On Monday, October 28, the Coordination Framework for Shiite Forces announced an agreement to hold a session to elect a new Speaker of Parliament tomorrow, Thursday.   LINK

Clare:  Qusay Saddam seized $900 million and loaded it in trucks in 2003 - Central Bank Governor

10/30/2024

The Governor of the Central Bank, Ali Al-Alaq, said that the lessons are now sufficient for the state to move towards setting a “strict and conservative” oil price in the general budget, to avoid the pressure of declining crude prices, calling for the enactment of a law that sets the size of spending with a specific oil ceiling to ensure its coverage on the one hand, and to ensure the financing of investment projects on the other hand, noting that the three-year budget needs some new tables and amendments in line with the variables of oil prices.

Ali Al-Alaq, in an interview during the Merry Forum, followed by the 964 Network :

The role of the Central Bank cannot be reduced to the currency selling window and some marginal tasks. It is a fundamental pillar of economic and financial stability in the country. Here we must highlight a number of achievements since 2004 until today, the most important of which is maintaining the general price level, meaning the ability to manage the monetary mass in Iraq, in a way that does not lead to inflation or deflation.

After 2003, we inherited an abnormal situation devoid of any real basis for stability. Our reserves that year were $900 million, and they were seized by Qusay Saddam Hussein and loaded onto a truck. This is documented by dates and numbers. So we started from scratch. The money supply in circulation was only 4 trillion dinars. Today, the volume in circulation exceeds 100 trillion dinars, and our reserves have exceeded 100 billion dollars.

The inflation rate today is 3.8%, which is a typical rate that achieves stability and prosperity. It is an indicator of our ability to manage a monetary mass exceeding 104 trillion dinars, which does not allow pressure on purchasing power, and this is considered the most important factor in monetary and economic stability.

We have an additional mission, as we have to introduce all the tools, systems and entities that we have failed to catch up with the world with during the previous decades, and therefore there is a race against time to move towards the digital economy and advanced payment systems, as we have licensed 16 companies for electronic payment, and we are currently working on licensing digital banks, in addition to achieving advanced stages in establishing a national company for managing payments, and the Central Bank will be a partner in it to enhance it with sufficient support.

As for the reform dimension, we are currently working on two plans to reform government and private banks, which will lead to their restructuring in a way that ensures transparency, governance, and ownership structure in appropriate ways, to be consistent with international standards.

The last dimension of our work, which is not practiced by most central banks in the world, is that we work to stimulate the economy directly through lending initiatives to various sectors. The volume of loans granted to the construction and industrial sectors has reached more than 13 trillion dinars, an amount that exceeds what has been lent throughout the history of the Iraqi state. In addition, we have sought to launch initiatives to lend to small and micro-enterprises, and we have reached advanced stages of establishing a bank specialized in this initiative, and we have named it “Riyada” Bank.

We noticed that the inflation rate in 2023 was 7.5%, as the volume of issued currency jumped from 40 trillion to 100 trillion dinars, meaning that it increased in two years by an amount equivalent to its increase in the previous 18 years, and therefore we decided to withdraw part of the cash liquidity by raising the interest rate and attracting trillions of dinars from the market, although this measure is costly, but the Central Bank does not base its policies on profit and loss, but rather on the basis of performing its main function of controlling the market.

The increase in public debt is a result of the budget deficit, which is the result of increasing spending without increasing revenue. Over time, spending has become inflexible and cannot be reduced, such as the salary bill and others, and this causes a structural imbalance in the Iraqi economy.

The idea of ​​the three-year budget is in effect in many countries of the world, and we decided to move towards it in order to ensure stable implementation, although it requires the issuance of some tables and amendments to address some variables, such as oil prices, for example.

The fiscal year will end and the oil price rate remains within our estimates in the budget, but the lessons have become sufficient for us to set a conservative oil price so that the state does not face economic pressure with the fluctuations of the global oil market. Therefore, a law must be passed that sets the share of expenditures from oil revenues with a certain ceiling, in order to ensure that it is covered on the one hand, and to ensure that the financing of investment projects that are exposed to blows with every drop in oil prices is not disrupted in order to cover the expenditure ceiling.   LINK

Bankers Likely Secretly Buying Gold and Silver

Bankers Likely Secretly Buying Gold and Silver

Liberty and Finance:  10-29-2024

In the ever-evolving landscape of finance and economics, the conversation around sound money—a term most commonly associated with tangible commodities like gold and silver—continues to gain momentum. Recently, Dunagun Kaiser and Patrick Holland joined the informative platform Liberty and Finance to delve deeper into this crucial topic, exploring both its historical significance and its contemporary relevance within the United States.

The discussion begins with an exploration of sound money’s rich history. For centuries, civilizations around the world relied on precious metals as a basis for their currencies. The intrinsic value of gold and silver made them a reliable means of trade, instilling trust and stability in economic systems.

Dunagun noted that sound money encompasses not just a form of currency but a broader philosophy about financial integrity and wealth preservation.

Kaiser and Holland articulated how this philosophy stands in stark contrast to fiat currencies—government-issued money that lacks intrinsic value and is not backed by physical commodities. Fiat currencies are prone to inflation and devaluation, leading to economic instability for individuals and nations alike.

By returning to sound money principles, the duo argues that societies can reclaim economic trust and promote sustainable growth.

As the conversation shifted to the current state of the sound money movement in the U.S., Holland highlighted notable efforts spearheaded by various states, including Texas, Florida, and Missouri. These states have emerged as champions of sound money legislation, advocating for measures that recognize and promote the use of gold and silver as legal tender. Their proactive stance serves as a model for other states seeking to implement similar initiatives.

One crucial aspect of this movement is the recognition of the importance of local legislation in protecting and promoting sound money principles. Grassroots efforts and state-level initiatives have the potential to create significant shifts in national policy. Holland emphasized that while federal frameworks impose certain restrictions, empowered states can serve as laboratories for financial innovation and reform.

During the dialogue, the advantages of a gold standard were explored. By anchoring currency to a tangible asset, a gold standard ensures a more stable economic environment. Kaiser and Holland discussed how this system facilitates predictable, measured inflation rates, which can foster better long-term financial planning for individuals and businesses alike.

Furthermore, a return to a gold standard can curb excessive government spending and debt accumulation. When currencies are not tied to tangible assets, there’s a temptation for governments to print money in times of crisis, leading to a corrosive cycle of debt. A sound money approach reinforces fiscal discipline, promoting responsible governance and economic integrity.

The discussion also touched upon the global landscape, where a notable trend has emerged. Central banks around the world are increasingly accumulating gold. This behavior suggests a growing recognition of gold’s value as a hedge against economic uncertainty and inflation. Kaiser pointed out that as global economic conditions become more volatile, the demand for sound money principles may increase exponentially.

The implications of this trend could be profound; a resurgence of interest in gold could signal a shift in how financial markets operate. Countries are beginning to reconsider their monetary policies, reflecting a broader acknowledgment of the benefits of sound money—something that advocates like Kaiser and Holland find encouraging.

In conclusion, the Liberty and Finance discussion underscored the critical importance of grassroots movements in reclaiming financial sovereignty. By fostering state-level initiatives and encouraging local leadership, advocates of sound money can facilitate broader changes in how currency is perceived and utilized.

As individuals become more informed about the different forms of money and their implications, societies can start to demand change. The journey towards sound money is not just a policy shift but a cultural one—an awakening to the importance of financial integrity in building a resilient and prosperous society.

As Dunagun Kaiser and Patrick Holland demonstrated through their insights, the sound money movement is not just important for today, but vital for the economic futures we wish to create. It’s a call to arms for investors, consumers, and policymakers alike to become advocates for a monetary system rooted in value, reliability, and trust.

https://youtu.be/HlLdY0D-ChM

https://dinarchronicles.com/2024/10/29/liberty-and-finance-bankers-likely-secretly-buying-gold-and-silver/

Seeds of Wisdom RV and Economic Updates Wednesday Morning 10-30-24

Good Morning Dinar Recaps,

HBAR ADOPTION EXPANDS AS DUBAI LAUNCHES DIGITAL WILL SOLUTION ON HEDERA

▪️Unlike traditional wills that manage physical assets, the DIFC Courts have chosen Hedera for its reliability, security, speed, and trust, ensuring a transparent process.

▪️This initiative underscores Dubai’s strategic approach to establishing a sustainable digital asset infrastructure and regulatory framework.

The Dubai International Financial Centre (DIFC) announced its integration of Hedera’s Hashgraph technology which will power a new Digital Asset Will inheritance solution.

This initiative is distinct from the traditional FinTech focuses like tokenized assets and payments. Thus, it marks a unique application of distributed ledger technology (DLT) in estate planning, especially for digital asset inheritance.

Managing digital assets in inheritance is a new challenge, unlike conventional wills that distribute stocks, cash, and gold. As a result, the DIFC Courts have chosen Hedera’s technology for its reliability, security, speed, and, most importantly, trust. 

Moreover, the governing council of Hedera provides the DIFC and beneficiaries a complete peace of mind via a trusted, transparent process.

Some of the key features of Hedera like the Hedera Consensus Service (HCS), have played a crucial role in offering audit trails at every step along with accuracy. 

This helps to ensure the correct management of inheritances. For example, HCS’s real-time audit logs prevent mistakes in transferring assets, safeguarding beneficiaries from potential delays or errors.

The DIFC’s move highlights Dubai’s forward-thinking strategy in building sustainable digital asset infrastructure and regulation, setting a standard for digital asset planning. This collaboration is a win for both Hedera as a DLT leader and Dubai’s vision for long-term, responsible digital asset growth.

Key Developments in the Hedera Ecosystem
The Hedera ecosystem is currently seeing strong growth as several industry players are willing to transition to blockchain tech and prefer Hedera for its transparent governance and trust. 

Earlier this month, investment firm Canary Capital announced the launch of the first HBAR Trust in the United States, reported CNF. This fueled further speculation around the potential introduction of a Hedera-focused Exchange-Traded Fund (ETF).

The Canary HBAR Trust will provide safe access for investors to crypt+ocurrency HBAR while opening the gates for institutional participation in the crypto. Steven McClurg, CEO of Canary Capital, highlighted that the HBAR Trust is designed to provide U.S. institutional investors with new opportunities to tap into the growing demand for crypto-related products.

On the other hand, Prove AI recently launched its artificial intelligence product on the Hedera blockchain allowing businesses to securely manage their AI training data while ensuring compliance by using Hedera’s secure and scalable infrastructure.

Furthermore, Hedera will also provide governance solutions for businesses interacting with AI regulations and development, reported CNF.

In other news, Karate Combat, the world’s premier professional strike league, has announced the upcoming launch of its Layer-2 platform on the Hedera blockchain. Named “UP,” this Layer-2 blockchain and crypto-native software licensing platform is set to go live in Q1 2025, aiming to propel Web3 adoption across esports, sports, and entertainment sectors, reported CNF.

@ Newshounds News™

Source:  Crypto News Flash

~~~~~~~~~

COINBASE BRINGS REAL-TIME DEPOSITS VIA DEBIT CARDS BY PARTNERING WITH VISA

Coinbase users can now fund their accounts in real-time with eligible Visa debit cards, thanks to a new integration with the Visa Direct network.

Coinbase users in the U.S. and Europe can now deposit funds to their accounts with an eligible Visa debit card, following a new partnership with Visa. In an Oct. 29 press release, Visa said the integration allows Coinbase customers to deposit funds in real-time, offering flexibility for those looking to respond quickly to crypto market movements.

The feature aims to streamline access to trading funds by reducing wait times traditionally associated with crypto funding. The Visa Direct network facilitates immediate deposits, enabling users to top up accounts or make crypto purchases almost instantly. Visa debit cardholders can also cash out to their bank accounts in real time, minimizing delays across all major transactions on the platform.

“Providing real-time account funding using Visa Direct and an eligible Visa debit card means that those Coinbase users with an eligible Visa debit card know that they can take advantage of trading opportunities day and night,” said Yanilsa Gonzalez Ore, head of Visa Direct, North America for Visa

This latest partnership marks another step in Visa’s expanding role in the crypto market, building on the company’s recent introduction of a blockchain platform for banks to manage fiat-backed tokens.

Earlier in October, Visa launched the Visa Tokenized Asset Platform, a network enabling financial institutions to mint, burn, and transfer fiat-backed tokens, including stablecoins. BBVA, the Spanish banking giant, became the platform’s first client, with plans to trial the technology on the public Ethereum blockchain starting in 2025.

@ Newshounds News™

Source:  Crypto News

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🌱ZIMBABWE DITCHES U.S. DOLLAR FOR GOLD-BACKED CURRENCY. WHAT DOES IT MEAN?  |  Youtube

@ Newshounds News™

Source:  Seeds of Wisdom Team RV Currency Facts

~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

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Q & A Classroom Link  

Follow the Roadmap

Follow the Timeline 

Seeds of Wisdom Team™ Website

Subscribe to Newsletter

Thank you Dinar Recaps

Tidbits From TNT” Wednesday Morning 10-30-2024

TNT:

Tishwash:  Rafidain Bank studies establishing an electronic platform for trading government bonds

Rafidain Bank confirmed, today, Wednesday, the establishment of an electronic platform for trading government bonds.

The bank stated in a statement received by Al-Maalouma Agency that it “will sponsor an expanded meeting in cooperation with the Securities Commission and the Iraq Stock Exchange to discuss launching an electronic platform for trading government bonds.”

He pointed out that "the meeting will be sponsored by the Minister of Finance and the Governor of the Central Bank of Iraq."  link

Tishwash:  The Central Bank republishes controls for declaring funds and bringing them in or out of Iraq

Today, Tuesday (October 29, 2024), the Central Bank of Iraq republished the controls for declaring funds, while indicating that it allows the entry or exit of amounts less than $10,000.

The bank said, according to a statement received by "Baghdad Today", that "in order to reduce the risks of bringing in and out money across the Iraqi borders and exploiting this in money laundering or terrorist financing operations, and based on the Anti-Money Laundering and Terrorist Financing Law No. 39 of 2025, and the provisions of Controls No. 1 of 2029 (amended Controls No. 1 of 2017), the following must be adhered to:

1. It is permitted to bring in or take out amounts less than (10,000) dollars (ten thousand US dollars) or its equivalent in other currencies without declaring them.

2. It is permitted to bring in or take out amounts exceeding (10,000) dollars (ten thousand US dollars) to 20,000 dollars (twenty thousand US dollars) provided that they are declared, with the necessity of presenting evidence supporting the purpose of bringing in or taking out these amounts. In the event that supporting documents are not available, the traveler must submit a pledge to bring these documents after (30) days from the date of declaration.

3. It is prohibited to bring in or take out amounts exceeding (20,000) dollars (twenty thousand US dollars) or its equivalent in other currencies, and the process of bringing in or taking out these amounts shall be exclusively through financial institutions.

4. It is prohibited to bring in or take out amounts exceeding (1,000,000) dinars (one million Iraqi dinars) even if they are declared, and the amount will be seized and legal measures will be taken against it. 5. Declaration of precious stones and metals if their value exceeds (10,000) ten thousand US dollars. 6. Declaration of financial instruments that are negotiable to bearer or are transferred inside or outside Iraq by a person, postal service, shipping service or any other means and whose value exceeds (1,0000) ten thousand US dollars  link 

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Tishwash:  The Dinar Under Siege: How Do Smuggling Mafias Strike the Cash Reserve?

Reports indicate a worrying increase in the activity of currency smuggling mafias in Iraq, which has raised widespread questions about the serious repercussions of this activity on the Iraqi economy.

Such operations that aim to transfer money abroad illegally lead to huge losses in the cash reserve and affect the state’s ability to finance basic needs, and contribute to the exacerbation of inflation and the deterioration of the value of the Iraqi dinar.

One economic analysis states that: “Currency smuggling operations weaken Iraq’s foreign exchange reserves, increasing the country’s inability to meet its basic import needs, and leading to a deterioration in the balance of payments. This illegal outflow of funds not only leads to weak domestic investment, but also creates an unstable economic environment, raising concerns among foreign and local investors alike.”

Another aspect of the negative effects of these operations appears in the financing of illegal activities such as drug trafficking and support for armed groups, indicating that currency smuggling is not only an economic issue, but a security problem that affects the stability of Iraq more deeply.

The various methods used to smuggle money include foreign imports that take place outside the official platform of the Central Bank, which is a violation of the laws and increases chaos in the market.

Reports indicate that some parties are deliberately seeking to weaken the national currency by raising the price of the dollar in an exaggerated manner, which raises questions about the possibility of internal parties colluding with smuggling networks to increase their profits at the expense of the national economy.

Expert Mohammed Al-Kubaisi explains that currency smuggling mafias exploit political and economic crises to increase their activities, taking advantage of weak government oversight and financial turmoil to achieve huge profits.

The problem seems to go beyond the economy to include deeper issues related to weak legislation and government control, which is prompting some analysts to call on the government to take strict measures, including imposing strict controls on financial transactions and setting policies that encourage local investment to limit the flow of money abroad.  link

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Lilfish:  IMF Touts US Economy the Growth Engine of the World

WASHINGTON, Oct 22 (Reuters) - The U.S. economy will continue to provide most of the thrust for global growth through the balance of this year and in 2025, led by robust consumer spending that has held up through a wrenching bout of inflation and the high interest rates used to tame it, the International Monetary Fund said on Tuesday.

In its latest World Economic Outlook, the IMF raised its 2024 and 2025 economic growth forecasts for the U.S. - the only developed economy to see its outlook marked up for both years - and its chief economist said the "soft landing" sought by the Federal Reserve in which inflation eases without big damage to the job market had largely been achieved.

Emerging market powerhouses India and Brazil also stood out on the upside of the IMF forecasts, while it dialed back growth expectations for China for this year and left next year's forecast for the world's No. 2 economy at a below-trend 4.5%.

Still, it warned that risks abound from armed conflicts, potential new trade wars and the hangover from the tight monetary policy employed by the Fed and other central banks to rein in inflation.

"Today, the IMF reported that the United States is leading the advanced economies on growth for the second year in a row," Lael Brainard, the director of the White House's National Economic Council, said in a statement.

The IMF's latest World Economic Outlook said the shifts will leave 2024 global GDP growth unchanged from the 3.2% projected by the global lender in July, setting a lackluster tone for growth as world finance leaders gather in Washington this week for the IMF and World Bank annual meetings.

Global growth is projected to be 3.2% in 2025, one-tenth of a percentage point lower than forecast in July, while medium-term growth is expected to fade to a "mediocre" 3.1% in five years, well below its pre-pandemic trend, the report showed.

Nonetheless, the IMF's chief economist, Pierre-Olivier Gourinchas, said some countries, including the U.S., were showing resilience.

"The news on the U.S. is very good in a sense," Gourinchas said at a press conference in Washington. "The labor market picture remains one that is fairly robust, even though it has cooled off."

"I think the risks of a recession in the U.S. in the absence of a very sharp shock would be somewhat diminished," he said.

Although Gourinchas said it looked as if the global inflation battle had largely been won, he told Reuters in an interview there is a risk that monetary policy could "mechanically" become too tight without interest rate cuts in some countries as inflation subsides, weighing on growth and jobs.

CONSUMER STRENGTH

The IMF revised its 2024 U.S. growth forecast upward by two-tenths of a percentage point to 2.8% due largely to stronger-than-expected consumption fueled by rising wages and asset prices. The global lender also upgraded its 2025 U.S. growth outlook by three-tenths of a percentage point to 2.2%, slightly delaying a return to trend growth.

https://www.reuters.com/markets/us/imf-lifts-us-growth-forecast-marks-down-china-sees-lackluster-global-economy-2024-10-22/

Mot:  . Poor ole ""earl"" -- He Trys... LOL 

Mot:  they Say that -

Seeds of Wisdom RV and Economic Updates Tuesday Evening 10-29-24

Good Evening Dinar Recaps,

US TREASURY STRATEGY FOR FINANCIAL INCLUSION MENTIONS DIGITAL ASSETS

The United States Department of the Treasury has released its national strategy for financial inclusion, only including cryptocurrencies as a potential risk for consumers.

In an Oct. 29 notice, the US Treasury said its National Strategy for Financial Inclusion in the United States report resulted from a request from Congress and included recommendations to “advance consumer access to safe financial products and services and strengthen financial security.”

According to the department, one of its methods of financial inclusion was through research of a “series of publications on consumer activities and risks related to digital assets,” citing a September 2022 report.

According to the US Treasury, the national strategy recommended increasing access to “safe and affordable credit,” improving the inclusivity of financial services and products from the government, and “protecting consumers from illegal and predatory practices.”

National Economic Advisor Lael Brainard credited Vice President Kamala Harris with helping expand “access to capital, credit, and economic opportunity.”

The strategy by the government department suggested that it would not be considering cryptocurrencies like Bitcoin as a means of financial inclusion in the United States. 

Though many digital asset advocates recognize the potential risk of crypto investments, the technology has often been touted as a way to level the playing field for individuals who may not always have access to traditional banking.

US election could affect crypto policy in 2025
It’s unclear if Vice President Harris would consider this strategy if she were victorious over Republican Donald Trump in the US election in November. The Democratic candidate has suggested she would support the industry if elected but still expressed concerns over consumer protection.

During his administration, US President Joe Biden issued an executive order establishing a framework for digital assets and instructing government departments to study the ecosystem’s potential impact on consumer and investor protection, financial stability, financial inclusion, responsible innovation, the US’ financial leadership and combating illicit financial activity. 

The Treasury Department has been involved in developing policy recommendations for crypto in accordance with the order.

@ Newshounds News™

Source: CoinTelegraph \

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BIS DEBATES ENDING CROSS BORDER CBDC PROJECT MBRIDGE – REPORT

Yesterday Bloomberg reported that the Bank for International Settlements (BIS) is considering whether to shut down Project mBridge, the cross border CBDC payments platform developed in collaboration with the central banks of China, Hong Kong, Thailand and the UAE. In June Saudi Arabia joined at the same time as mBridge launched as a minimum viable product.

Bloomberg cited sources saying the topic was discussed at last week’s International Monetary Fund (IMF) and World Bank meetings. A concern is Russia’s ongoing enthusiasm for developing a similar sounding BRICS Bridge.

At a Group of 30 event in Washington on Saturday, BIS general manager Agustín Carstens was quoted as saying “we cannot directly support any project for the BRICS because we cannot operate with countries that are subject to sanctions — I want to be very clear about that.” Both Russia and Iran are BRICS+ members.

mBridge’s design
mBridge enables commercial banks to make cross border payments via their central banks, using wholesale central bank digital currencies (wCBDCs). The design encourages direct local currency payments, sidestepping the need to use US dollars.

For cross border payments, banks often either use correspondent banks or keep bank accounts (nostro accounts) at the destination, which are expensive to maintain as they tie up capital.

Hence, there are pros and cons with the mBridge design. A key advantage is banks don’t need to keep nostro accounts at the destination or use correspondent banking, saving considerable money.

On the flip side, a key reason for using the US dollar as an intermediate currency is because almost all currencies have their optimal FX rates against the dollar. In other words, local currency payments involve less attractive FX rates, which is why they haven’t taken off in a big way.

There’s some simple math involved here. Currently, there are 180 currencies, each with their best rate against the dollar. That’s 180 currency pairs, with relatively strong supply and demand. So it’s cheaper to go from Thai baht to USD to renminbi, than directly from baht to renminbi.

That’s because the direct local currency route for 180 currencies translates to 16,110 currency pairs. If you spread the supply and demand across 16,110 pairs rather than 180, these are far more thinly traded so you no longer get good FX rates.

An obvious path is to choose an intermediate currency different from the US dollar. Notably, BRICS countries don’t seem keen on that. This FX cost issue is critical to mBridge’s viability, because FX makes up the largest proportion of cross border payment costs, by far. State-owned Chinese companies might feel obliged to use local currencies, but companies in other economies will demand the cheapest path.

China’s role in mBridge
China chairs the mBridge technical working group and developed some proprietary components, including a Chinese blockchain consensus mechanism. The Bloomberg piece was critical about allowing China such an important role in the project. 

China’s role is even greater because Hong Kong is involved and the UAE’s central bank representative spent a large part of his career at the Hong Kong Monetary Authority. So three out of the four central banks have strong Chinese ties. 

However, the project started as a joint Hong Kong – Thailand initiative, so its location at the Hong Kong BIS Innovation Hub and the involvement of China were natural paths.

However, it’s not surprising the topic is being debated. Ledger Insights featured an opinion piece exploring the BIS dilemma in January. It concluded that if mBridge proves viable, then the central banks are likely to proceed with or without the BIS. Although it depends on their contracts with the BIS.

Since the January post, the BIS has launched Project Agorá, another cross border CBDC project, but one that supports correspondent banking. Unlike mBridge which has two BRICS members in China and the UAE, no BRICS members are involved in Agorá.

At SIBOS last week, two pieces of mBridge news reinforced the existence of this BIS debate around its future. Firstly, there was a surprising discussion about potentially integrating with Swift and even possibly including the dollar in future.

The second piece of news was the plan to open source the mBridge software. On the one hand, this might help to alleviate concerns about the dependence on China. However, it also makes it far easier for sanctioned countries to spin up a version of their own, without involving the BIS.

Should the BIS remain engaged?
In our January opinion piece, we concluded that IF mBridge proves viable, the central banks are likely to continue, with or without the BIS. With open source software, that’s even more probable. However, with the BIS involved, sanctioned countries will be prevented from engaging.

Payments are all about network effects. So if many more countries join mBridge rather than BRICS Bridge, that will support the effectiveness of sanctions and prevent mBridge morphing into BRICS Bridge. It brings the issue into focus: is mBridge about new payment efficiencies, or is it about an alternative to the status quo with the US dollar at the core?

At SIBOS, the former Governor of the People’s Bank of China, Zhou Xiaochuan, noted that “If the U.S. government would like to use the U.S. dollar as a sanction tool, it may reduce the feasibility of other countries to use the U.S. dollar.” 

No matter one’s view on Russia or Iran, Governor Zhou’s statement is factual. Whether it’s mBridge or something entirely different, logically there will be strategies to circumvent using the dollar. We’ve reported on Russia iterating through several different paths, many involving crypto or DLT.

However, in the case of mBridge, the genie is already out of the bottle. It’s likely better for the BIS to engage than not.

@ Newshounds News™

Source:  Ledger Insights

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Iraq Economic News and Points To Ponder Tuesday Afternoon 10-29-24

Al-Sudani: The Priorities Of The Government Program Were Necessary Due To The Nature Of The Stage And Its Economic Challenges

Tuesday 29 October 2024 | Politics Number of readings: 113  Baghdad / NINA / Prime Minister Mohammed Shia Al-Sudani stressed: "The priorities of the government program were necessary for the nature of the stage and its economic challenges."

Al-Sudani said in a speech during the cabinet session on the occasion of the second anniversary of the first government session: "The targets of the government program touched the needs and aspirations of the people."

He added: "The ambition and accurate diagnosis were among the most prominent features of the government team, and we succeeded in prominent files and the language of numbers is what governs."

The Prime Minister continued: "Our achievement is throughout Iraq, and was not limited to one city, and we have completed stalled projects since 2005, and we have begun to solve intractable problems."    https://ninanews.com/Website/News/Details?key=1165035

Al-Sudani: We Are In The Process Of A Ministerial Reshuffle

Tuesday 29 October 2024 18:57 | Politics Number of readings: 41  Baghdad / NINA / Prime Minister Mohammed Shia Al-Sudani announced an expected ministerial reshuffle.  Al-Sudani said in a speech during the cabinet session, on the occasion of the second anniversary of the first government session:

"The government faces financial, monetary, institutional and legislative challenges, and we are in the process of a ministerial reshuffle," stressing: "The ministerial reshuffle is not a political position."

He added: "We face political challenges in light of the recent turns in the region as a result of the Zionist aggression, and the region is going through dangerous developments that directly affect Iraq." https://ninanews.com/Website/News/Details?key=1165046

The President Of The Republic Calls For Enhancing Cooperation With The Countries Of The World In Order To Extradite Wanted Persons And Recover Iraq's Funds Abroad

Tuesday 29 October 2024 12:59 | Economic Number of readings: 300  Baghdad / NINA / President of the Republic Abdul Latif Jamal Rashid called for enhancing cooperation and coordination with countries of the world in order to extradite wanted persons and recover Iraq's funds abroad.

A presidential statement stated that the President of the Republic received, today, Tuesday, at the Baghdad Palace, the Chairman of the Integrity Commission, Mohammed Ali Al-Lami.

According to the statement, Rashid congratulated the Chairman of the Commission on his assignment to the position, stressing that everyone expects effective and correct steps from the Commission to preserve public money through legal and constitutional procedures, adding that diagnosing the waste of public money is a noble national task that requires a serious and firm stance from all regulatory agencies and bodies, foremost of which is the Integrity Commission, calling for the adoption of integrated and comprehensive national plans and programs in which all official and societal activities have an active role. "

The President of the Republic called, according to the statement, to enhance cooperation and coordination with countries of the world in order to extradite wanted persons and recover Iraq's funds abroad."

For his part, Mohammed Al-Lami reviewed the Commission's future plans and programs, appreciating the support of His Excellency the President of the Republic for the Commission's work and its efforts to achieve transparency.

He stressed the importance of the Presidency of the Republic's support for the Integrity Commission in its efforts to combat the corrupt, recover Iraq's money, and preserve national wealth. / https://ninanews.com/Website/News/Details?key=1164949

The Ministry Of Finance Issues A Directive To Withdraw The Hand Of The Director General Of The General Tax Authority

Buratha News Agency1392024-10-29  The Ministry of Finance issued a directive to withdraw the Director General of the General Tax Authority. This came after the Parliamentary Integrity Committee submitted a recommendation to the Prime Minister yesterday, Monday, to withdraw the Director General of the Tax Authority.

 The committee stated in a statement, “The Parliamentary Integrity Committee followed with great interest the audio file attributed to the Director General of the Tax Authority in which he talks about manipulation of tax records in exchange for bribes.”

The statement added, "Based on its role and keenness to achieve the values ​​of integrity and combat corruption, the committee addresses the Prime Minister to submit a recommendation to withdraw the Director General's hand until the investigations are completed and the validity of the registration is decided by the competent judicial authorities to ensure the integrity of the procedures and prevent any cases of manipulation in the future."

Yesterday, Monday, the Prime Minister ordered an investigation into an audio leak attributed to the Director General of Taxes.   https://burathanews.com/arabic/news/452162

Slight Rise In Oil Prices In Global Markets

Tuesday 29 October 2024 | Economic  Baghdad / NINA / Oil prices rose slightly on Tuesday, after a sharp decline in the previous session, supported by a US plan to buy oil to boost the strategic reserve.

Brent crude futures rose 44 cents, or 0.6%, to $71.86 a barrel, while US West Texas Intermediate crude rose 45 cents, or 0.7%, to $67.83.  Futures for the two benchmarks fell 6% on Monday, reaching their lowest levels since October 1.   https://ninanews.com/Website/News/Details?key=1164898

Continuous Decline In Dollar Prices.. Will Iraq Restore Balance To Its Economy?

Economy  | 10/29/2024  Mawazine News – Economy  The US dollar exchange rates witnessed a decline on Monday in the markets of the capital Baghdad and in Erbil, the capital of the Kurdistan Region, with the opening of the country's main stock exchange.

The dollar prices decreased with the opening of the two main stock exchanges in Baghdad, Al-Kifah and Al-Harithiya, to record 150,750 dinars per 100 dollars, while yesterday, Sunday, it recorded 151,000 dinars per 100 dollars.

As for the selling prices in exchange shops in the local markets in Baghdad, they decreased, as the selling price reached 151,750 dinars, while the purchase price reached 149,750 dinars per 100 dollars.

In Erbil, the dollar recorded a decline, as the selling price in exchange shops reached 150,700 dinars per 100 dollars, while the purchase price reached 150,600 dinars per 100 dollars. https://www.mawazin.net/Details.aspx?jimare=256218

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