“Tidbits From TNT” Friday Morning 1-3-2025

TNT:

Tishwash:  Iraqi Central Bank Streamlines International Transfers

The Central Bank of Iraq (CBI) has announced the successful transition of external transfers from an electronic platform to direct operations by Iraqi banks through their international correspondent banks.

According to a CBI statement, this milestone, fully achieved at the end of December, aligns with global best practices, promoting a stable and secure financial system.

Key highlights include:

Modernisation Journey: Transfers evolved from a currency sale window to an electronic platform and now to correspondent banking systems.

Diverse Currency Support: Iraqi banks can now enhance balances with correspondent banks using various currencies, including USD, INR, CNY, EUR, AED, SAR, and JOD.

Global Integration: The system improves efficiency and aligns Iraq's financial operations with international standards, boosting regional and global financial relationships.

Investment and Trust: This achievement strengthens Iraq's appeal for investment and enhances international financial confidence.

The CBI attributed this progress to extensive technical planning, governmental support, and the contributions of its staff, Iraqi banking institutions, and international partners.

The bank reaffirmed its commitment to fostering good governance, compliance, and anti-money laundering measures, further solidifying Iraq's financial system.  link

Tishwash:  After the electronic platform stopped...Answering questions from Iraqi circles about the new dollar mechanism

Many citizens have raisedIraqisQuestions about the new trading mechanismDollarinIraqHow to withdraw or buy it after stoppingOfficialTo create an electronic platform.

He saidDeputyThe Governor of the Central Bank, Ammar Khalaf, said yesterday that "the mechanism of work on the electronic platform related to foreign transfers has stopped working, but financing foreign trade continues through correspondent banks according to different mechanisms that are parallel to what is in effect in countries around the world."

 Many citizens wondered about the news of the platform that was established.SumerianNews published on the social networking site "Facebook", about the electronic platform and its work, and what will happen to the dollar, and whether it will witnessIraqA new rise in currency exchange rates.

One citizen said via the comment feature: "What is meant by the electronic platform? Can someone explain?", while another replied that "the blockade will return to Iraq and the exchange rate will be at least 250 thousand dinarsIraqiFor $100.”

Another asked about “the continued arrival of foreign remittances toIraqAnd giving the currency to travelers," while another pointed out that "unemployment will return and food prices will quadruple from their normal levels and famine will return to Iraq."

Others praised the decision to stop the electronic platform, considering it "an effective government achievement that will be beneficial in succession and a transformation process that enhances the economic role and prepares for investment opportunities with complete confidence, and that the government is activating the supervisory role over the markets and exchanges and dealing in the dinar only to raise the value of the Iraqi dinar."

Another pointed out that "the platform was a front for theftDollarThus, imposing control through financial transfer by the bank will contribute to balancing the market and controlling the rise of the dollar,” and another supported him by saying that “this step may have several reasons, such as:

1- Controlling the dollar exchange rate: trying to stabilize the priceDollarIn front of the dinarIraqiBy reducing the flowDollar

2-Preventing dollar smuggling: If there are indications thatDollarIt is used in smuggling operations or there is an inflation in demand for it due to illegal purposes.

3-Strengthening the local economy: reducing dependence onDollarSupporting the local currency by reducing tradingDollarIn the markets.

Possible outcomes: higher prices.DollarOn the black market if there are no alternatives to meet demand. Impact on traders and businesses who depend onDollarIn imports, which may lead to higher prices for imported goods.

Tightening financial controls to try to prevent fraud and circumvention of policies. Therefore, the effects will depend on how this decision is implemented and the extent of alternative plans to provideDollarFor the commercial and service sector.

"Travelers' Dollar"
It is worth noting that "the Central Bank explained that grantingDollarFor travelers, it continues at airports according to the approved mechanism, which is the best in limiting the occurrence ofDollarFor the traveler, noting that "this decision is part of a series of reforms aimed at facilitating financial procedures and stimulating the economy."

What is the "electronic platform"
? The electronic platform for money transfers is a mechanism adopted to ensure the regulation of foreign money transfers and limit manipulation of exchange rates. It works to document commercial operations and transfer funds by banks and financial companies, ensuring more effective control over hard currency flows in and out of the country.

Will the cancellation of the platform affect the dollar price?
The impact of the cancellation of the platform on the priceDollarIt will be reflected in prices as follows:

1- Increased demand forDollarIn the black market, in the absence of an electronic platform, demand may increase.DollarIn the black market due to the absence of control mechanisms, which leads to high exchange rates outside official channels.

2- Weak confidence in the dinar, as canceling the platform may weaken confidence in the Iraqi dinar, especially if effective alternatives are not put in place to ensure market stability. Weak confidence means that citizens and investors may withdraw their money in dinars and transfer it toDollarAs a safe haven.

3- The impact of smuggling and money laundering, as canceling the platform may cancel strict control over dollar smuggling operations, and smuggling and money laundering practices may expand, which increases the demand forDollarSignificantly and affects the central bank's reserves.

4- The market depends on supply and demand. With the cancellation of the platform, the currency market may become more affected by direct supply and demand. This may lead to severe fluctuations in the exchange rate, especially in light of unstable economic and political conditions.

Will the dollar rise?

The government and the central bank can rely on other control tools such as strengthening the role of local banks, imposing strict restrictions on foreign transfers, activating alternative control tools, or pumping more dollars into the market to meet demand and maintain price stability. Investment can also be encouraged and reliance on foreign currencies reduced, to relieve pressure onDollarAnd strengthening the dinar, all these measures can maintain pricesDollar.   link

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Tishwash:  Al-Sudani confirms that the government has taken practical steps to diversify the economy

Prime Minister Mohammed Shia al-Sudani confirmed today, Thursday, that the government has put in place clear practical steps aimed at diversifying the Iraqi economy away from total dependence on oil revenues.

Al-Sudani said in a speech during the opening and launch of several projects in the oil sector in Baiji district in Salah al-Din Governorate, which was followed by the / Al-Maalouma / agency, that “the government has worked since the first days of assuming its duties to reconsider the philosophy of the Iraqi economy based on rentierism, and to put in place practical steps, not theoretical ones, in the matter of diversifying the economy."

He pointed out that "Iraqi competencies have begun to manufacture and establish units in refineries, which gives value to the product and drives market stability. A country that produces more than 4 million barrels per day cannot continue to import oil and gas derivatives."

He added: “We have started several strategic projects that are being implemented for the first time in the country and in the history of the oil industry, and we have made great strides in solving the problems, especially in the issue of gas flaring, through The contracts and agreements concluded, and we have set a ceiling not exceeding 2028 to stop gas flaring and a zero percent rate in flaring associated with gas, and we are continuing to promote the patches and fields for free gas.”

He pointed out that "the projects that were opened and construction was launched today are important to achieve a shift in the oil industry," directing "the Ministry of Oil to complete the studies for the petrochemical project and the FCC project in Baiji."

He announced "a plan to make Baiji the largest oil industrial city in Iraq and the region," noting "work to adopt international standards and environmentally friendly quality."

He pointed out that "work is underway to complete the strategic integrated southern project, which is being implemented for the first time in the field of oil development and gas investment, and to establish a power station, refinery and petrochemical plant in one place."  link

Mot: .... the Planning that is Needed ---

Mot: . This Diet Thingy - I Finally Figured it out!!! 

Iraq Economic News and Points to Ponder Thursday Evening 1-2-25

Government Advisor: Iraq Is The World's First In The Concentration Of Natural Resources Per Square Kilometer

Politics | - 01/02/2025  Mawazine News – Baghdad  The financial advisor to the Prime Minister, Mazhar Mohammed Salih, confirmed today, Thursday, that Iraq ranks first in the world in the concentration of natural resources per square kilometer, while indicating that the natural resources renaissance project will come in parallel with the development path strategy.

Salih told the official agency, followed by "Mawazine News", that "since Iraq ranks ninth in the world in the value of its natural resources reserves, which exceed $16 trillion in current market value, at a time when it ranks first in the world in the concentration of natural resources per square kilometer,"

noting that "the features of the country's future in a comprehensive renaissance will depend on transforming these natural sovereign resources into productive capital assets employed in the movement of diversifying the national economy."

He added, "This requires an economic model in managing and investing in diverse resources (except for oil and gas)," noting that "the closest to mind is the manufacture of natural resources that can be manufactured to generate value-added chains that maximize national income and generate accelerated opportunities for sustainable development in our country, whether towards export or export substitution."

He pointed out that "the natural resources renaissance project will undoubtedly come in parallel with the development path strategy in generating a leading industrial renaissance in the national economy, which is Iraq's outline in building the future of its economy for the twenty-first century in two directions: the first is the export-oriented development model, and the other is the development model directed towards maximizing input-output tables and replacing imports within the national economy.

He continued that "the national market is in the formation and development stage, and the government program strategy is approaching the philosophy of partnership through the concept of the social market, because the state's contribution to the gross domestic product (national income) is close to 65%, and this requires an important role for the state in economic legislation and laws.

Saleh explained that "improving the entity of the national market and building its role stems from two directions: the first is providing market guarantees by approving the Social Security Law for the labor and business sector, and the second is the financing partnership by providing soft financing for the forces generating market activity responsible for absorbing 60% of the labor force,"

noting that "the beginning is in the Riyada program led by Prime Minister Mohammed Shia al-Sudani, by providing the necessary financing to employ youth in productive national projects, in addition to preparing to launch Riyada Bank for the same purpose without neglecting the major role of the Iraq Development Fund."

He added: "In 2037, Iraq will become one of the nations of the housing grant, as young people of working age will dominate 60% of the population," adding that "the national strategy for the private sector will increase the contribution of the private sector to more than 53% of the gross domestic product within the next ten years."

Saleh concluded by saying, “My message to the Iraqi people is to abandon the fear of worrying about the current oil economy and its connection to the consumption cycle, part of whose luxuries we live, and to look forward to a productive era to come, an era of investment in Iraq’s vast material and human wealth, an era of diverse material and digital production that is intertwined with the global economy and the two arms of the path of development and investment in natural resources and diversification of production networks in the national economy that guarantee human well-being and the sustainability of its development in our country.”   https://www.mawazin.net/Details.aspx?jimare=258155

Consultant Reveals The Mechanism Of The ASYCUDA Monitoring Operations Room And The Gains Achieved

Money and business  Economy News – Baghdad  Ahmed Ezz El-Din, a consultant for the border crossings networking project, revealed on Thursday the positives of the work of the border crossings’ monitoring operations room that applies the ASYCUDA system and the economic gains achieved, noting that it will greatly reduce the operations of forgery and manipulation of cargo.

Ezz El-Din said in a statement reported by the official news agency, and reviewed by "Al-Eqtisad News", that "the monitoring operations room at the border crossings, which represents the infrastructure for the (ASYCUDA) system, was finally activated after the completion of the network connection between all the crossings and is of great importance in reducing forgery and manipulation operations. Its activation took time and there were many challenges. Without this connection, it would not have been possible to activate the ASYCUDA system."

He added, "The operations room applied the highest levels and the latest technologies that the world has reached, and the connection was made via (Fiber Optic) technology, which provides high speed. Today, the entry of goods and all operations from the entry of trucks until their exit from the crossings and all customs procedures are subject to the control of the operations room.

" He continued, "An example of this is the (sonar) device, which displays live images transmitted by cameras for all trucks present at the crossing, and monitoring takes place inside the crossing and inside the operations room, which makes it impossible to tamper or even pressure employees at the crossings; because the process is fully monitored."

He stressed that "in addition to that, all operations are automated, such as databases and restrictions, which are recorded and verified, and it is possible to refer to this data at any time, in addition to the availability of backup copies within the National Data Center."

He pointed out that "the operation succeeded in increasing the ports' revenues despite the decline in the number of trucks entering, and activating the room within the (ASYCUDA) system greatly reduced manipulation and smuggling."

He explained that "all employees working in this system have entered courses supported by the European Union and now have the necessary experience to deal with it as employees, and they have also entered courses as trainers to train new cadres."

101 views   01/02/2025 - https://economy-news.net/content.php?id=51552

Oil Prices Rise Again During Thursday's Trading

Buratha News Agency1172025-01-02  Oil prices rebounded on Thursday, the first trading day of 2025, as investors optimistically eyed a recovery in China’s economy and fuel demand after President Xi Jinping pledged to boost growth. Brent crude futures rose $1.04, or 1.39 percent, to $75.68 a barrel by 12:05 GMT, after closing 65 cents higher on Tuesday, the last trading day of 2024.

U.S. West Texas Intermediate (WTI) crude futures rose $1.02, or 1.42 percent, to $72.74 a barrel.

China will implement more proactive policies to boost growth in 2025, the Chinese president said in his New Year's speech on Tuesday.

China's factory activity grew in December, but at a slower pace than expected, amid concerns about the trade outlook and potential risks from tariffs imposed by U.S. President-elect Donald Trump, a Caixin/S&P Global survey showed on Thursday.

That was in line with an official survey released Tuesday, which also indicated that manufacturing activity in China barely grew in December.

The services and construction sectors recovered, and data suggests that policy stimulus is spreading to some sectors as China braces for new trade risks.  https://burathanews.com/arabic/economic/454482

Foreign Remittance Service

 January 02, 2025   We would like to inform all licensed banks and all licensed non-banking financial institutions to allow Global Odeme Hizmetleri to provide the foreign remittance service within a credit agreement concluded with this bank, in addition to the companies ( Western Union ) and ( MoneyGram )   For more click here  https://cbi.iq/static/uploads/up/file-173581707031107.pdf        

  https://cbi.iq/news/view/2756     

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 approximate and incomplete translation of  https://cbi.iq/static/uploads/up/file-173581707031107.pdf   

 All authorized banks

All licensed financial institutions are all authorized

 foreign transfers service /p

 Later on our book No. 456/5/9 in 2021/12/12 and the work controls of the agents of the foreign transfers service providers issued

Under the numbers (353/5/9) on 2021/10/13,

We would like Global Odeme Hizmetleri providing foreign transfers service within an accreditation agreement (Western Union), (Moneygram), 

Above according to the form of the company's contract format approved by this bank: to provide the external transfers service.

With appreciation.    https://cbi.iq/news/view/2756      

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

Seeds of Wisdom RV and Economic Updates Thursday Evening 1-2-25

Good Evening Dinar Recaps,

HOW DISTRIBUTED LEDGER TECHNOLOGY CAN ENHANCE CROSS BORDER PAYMENT SOLUTIONS

Over the last few years, financial institutions around the world have embraced tokenization for capital market asset management. Kelvin Li, Head of Platform Tech and Jessica Cao, Head of International Financial Institutions Partnerships at Ant International, discuss how distributed ledger technology can be leveraged with tokenized assets to enable interoperability.

Tokenization as a concept can have different meanings. In the domain of payments and settlement, it typically refers to the integration of new technologies to either expand their capabilities or improve their performance through distributed ledger technology (DLT). 

According to a 2024 McKinsey report, the tokenized asset market is projected to grow to $1.9T by 2030, with tokenized deposits projected to reach a market capitalization of $1.1T and other assets classes making up the remaining $0.8T.

The nature of tokenized deposits could inherently lend itself to facilitate near real-time in a cross border environment. The current offering of tokenized deposits is bounded by a single platform or issuer, while cross border payments entail different currencies and payment systems. This means that tokenized deposits would need a way to be exchanged to ensure the transfer of funds from one jurisdiction to another can be completed end-to-end.

Considering its potential to revolutionize cross border payments, leading industry players are working towards an interoperable tokenized asset ecosystem that could address these challenges. One solution could be a token exchange model enabled by liquidity providers. While liquidity provision is not a novel concept, innovation in the Web 3.0 space, by platforms such as Uniswap, significantly popularized and advanced the concept by making liquidity provision more accessible. In the regulated world, a similar model can be borrowed to incentivize liquidity provision.

At a mature stage where token types are no longer a barrier to payments, we then can reap the benefits of DLT to enable lower costs, real-time atomic payments, more efficient reconciliation and more secure transmissions, bringing about the next evolution of cross border payments.

Enabling Liquidity Providers in Token Exchange

Liquidity providers would play a key role in facilitating cross-issuer or cross-currency tokenized deposit transfers. In this context, the liquidity provider would perform the token exchange and provide the price quotation for different token pairs. Leveraging smart contracts, the liquidity provider can perform on-chain fulfilment of the token swap, ensuring transparent, immutable and secure transactions to occur in real-time. In addition, programmability embedded in the tokens, such as conditional payments, would be able to enhance transaction efficiency and flexibility.

For example, conditional payments can automate processes such as releasing funds only when predefined conditions are met, reducing the need for intermediaries for lower cost and mitigating risks of disputes. 

This programmability can also enable features like automated compliance checks, escrow arrangements, or milestone-based disbursements, all of which can streamline operations.

While liquidity providers are rewarded with liquidity cost and price spread, the entry of more liquidity providers will unlock additional liquidity. Additionally, liquidity providers could exchange tokenized deposits with each other, creating a more robust and interconnected liquidity network.

This would further enhance market efficiency by enabling seamless transfers and price discovery across different currencies and platforms.

We do recognize the potential drawbacks of this structure, such as the risk of liquidity fragmentation, as liquidity providers would need to separately fund both fiat and token accounts. This could lead to higher costs and, consequently, less efficient price discovery.

However, this structure can be more inclusive compared to existing payment services, potentially driving higher efficiency in cross border payments from end to end.

Ant International’s Multi-Currency Tokenization Deposit for FX Payments

At Ant International, due to the global nature of e-commerce transactions, we initiate and receive payments around-the-clock in multiple jurisdictions. We are piloting an approach for a deposits token exchange model. 

Partnering with a liquidity provider, we facilitated cross border payments by leveraging banking partners to provide off-chain FX pricing through Price Oracle. 

The tokens used to complete the cross border payments were denominated in different currencies and by different issuers. We found that the token exchange model was a potential solution for cross border payments using tokenized deposits and intend to scale up this usage in the future.

With the tokenized asset market and global business-to-business payments market set to increase exponentially in the coming years, financial institutions have started to review and enhance their existing solutions and infrastructure to ensure they are strategically positioned to support this growth. But one asset class or a single financial institution alone will not make a big enough impact.

In order to enhance cross border payment solutions across the entire industry, public-private collaboration still remains key, through industry-wide initiatives. We have already seen a number of forward-looking central banks and regulators launch such programs, which are still ongoing. 

These projects will not only help to advance existing technology, they also have the potential to enhance existing laws and regulations and ensure that the key users and beneficiaries of tokenization are protected.

@ Newshounds News™

Source:  Ledger Insights

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CHINA’S NEW RULES FORCE BANKS TO FLAG TRANSACTIONS WITH CRYPTO: REPORT

China’s new rules require banks to flag risky transactions, including those involving crypto, making it harder for mainland investors to trade digital assets.

China‘s foreign exchange regulator, the State Administration of Foreign Exchange, has rolled out new rules requiring banks to keep a closer eye on transactions involving digital assets, the South China Morning Post has learned, citing the regulator’s announcement.

The rules, applicable to local banks in mainland China, focus on identifying “risky foreign exchange trading behaviors,” the report reads. These include underground banking, cross-border transactions involving crypto, and illegal financial activities.

Banks now have to track transactions by checking things like who’s involved, where the money is coming from, and how often the trades are happening. Additionally, Chinese banks are also expected to create risk-control measures for these entities and limit their access to certain services, the report says.

The new rules are part of China’s push to tighten control over crypto, including Bitcoin trading and mining, which officials see as a risk to financial stability.

China has taken a tough stance on crypto over the years. Back in 2017, Beijing banned initial coin offerings and shut down domestic crypto exchanges to prevent financial risks. By 2021, things escalated with a full ban on crypto trading and mining. Despite these restrictions, it’s still technically legal for individuals to hold digital assets, though the gray areas in regulation keep things complicated.

@ Newshounds News™

Source:  Crypto News

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Iraq Economic News and Points to Ponder Thursday Afternoon 1-2-25

Is The Ministry Of Finance Hiding The Facts? A Specialist Reveals The Main Reason For The Lack Of “Cash Liquidity”
 
Economy/Localities | Yesterday, 23:29 |Baghdad today – Baghdad  Economic affairs researcher Haider Al-Sheikh revealed today, Wednesday (January 1, 2025), the direct reason behind the lack of cash liquidity at the Central Bank of Iraq.
 
The sheikh told "Baghdad Today", "The Central Bank lacks cash liquidity, due to the citizen's lack of confidence in the banking system.

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There is a lack of confidence among the citizen in both government and private banks, and this matter has led to the storage of cash (the Iraqi dinar) in citizens' homes."".  He stated,
 
“The cash stored with citizens exceeds 15 trillion dinars, and the government and the central bank must address inflation in economic policies by providing banking facilities to citizens in a real and more serious manner.” The researcher in economic affairs added,
 
“The currency circulating among banks, merchants, and in the market as well, amounts to approximately 85 trillion dinars.”
 
On Sunday (December 2024), the Ministry of Finance denied that there was a shortage of liquidity to finance employees’ salaries for the current month, stressing its commitment to financing salaries.
 
The Ministry stressed in a statement received by “Baghdad Today” that
 
it is “fully committed to the process of financing employee salaries, as the Accounting Department has funded the salary dues for ministries, governorates, and unrelated entities for the current month of December according to the schedules specified for each of them, and it is continuing its efforts to ensure the continuity of disbursing financial dues.” Without any delay or interruption.”    
  
https://baghdadtoday.news/265093-هل-تخفي-وزارة-المالية-الحقائق؟.-مختص-يكشف-السبب-الرئيس-لنقص-السيولة-النقدية.html 

Hassan Al-Daghari: Developing The Iraqi Financial Sector Is An Urgent Need
 
December 31, 2024 Last updated: December 31, 2024  Independent/- Financial affairs expert Hassan Ali Al-Daghari described Iraq's need for an advanced financial sector as necessary and inevitable in light of the continuing need to develop the reality of the national economy.  Al-Daghari said:
 
The volume of work in Iraq is wide and in all sectors without exception, which demonstrates the need for a financial sector capable of providing advanced financial products.
 
He pointed out the importance of there being harmony between the Central Bank of Iraq and the private banking system, including banks that have proven their existence and have not been subjected to the sanctions imposed by the US Federal Reserve.
 
He pointed out that the private financial sector is moving to prove its presence and qualitative presence within the work space, and  this requires the support and support of the Central Bank of Iraq.  
  
https://mustaqila.com/حسن-الدغاري-تطوير-القطاع-المالي-العرا/ 

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An Economist Praises The “Asykoda” Automation System: A Step Towards Achieving Important Resources
 January 1 12:33  Information / Baghdad.. Economic expert Nabil Al-Ali confirmed, on Wednesday, that the  government announced that it would start, from the first of this year, completing the infrastructure to connect all border crossings, by starting to use the “Asycoda” automation system, which will contribute to achieving important financial resources for the public treasury.

Al-Ali said in a statement to the Maalouma Agency,  “Completing the linking of the border crossings to an electronic system called (ASYCUDA) is a qualitative leap towards cutting off corruption, in addition to that  it will provide the public treasury with high financial resources.” He added,
 
"Applying automation at border crossings by achieving automation in ministries and institutions, including the e-government project, and providing electronic payment services." He pointed out that
 
"implementing it will contribute to
 
     enhancing transparency and accountability,
     simplifying procedures,
     facilitating services, and
     reducing bureaucratic obstacles, in addition to
     establishing good governance and
     combating corruption." Ended / 25 AD    
  
https://almaalomah.me/news/86953/economy/اقتصادي-يشيد-بنظام-الاتمتة-الأسيكودا:-خطوة-باتجاه-تحقيق-موار 

Strong Demand Lifts Gold Prices To Two-Week High

Gold bullion.  Reuters  Arabic and international  Economy News - Follow-up  Gold prices hit a two-week high on Thursday, supported by safe-haven buying and a decline in U.S. Treasury yields, with focus on U.S. interest rate expectations ahead of President-elect Donald Trump's proposed trade tariffs.

Spot gold rose 1 percent to $2,649.73 an ounce by 14:46 GMT, its highest since Dec. 18.

U.S. gold futures rose 0.8 percent to $2,663.20 an ounce.

Benchmark 10-year U.S. Treasury yields fell, boosting investor appetite for the non-yielding metal.

"I don't see anything on the news that's moving the market, but geopolitics is supporting the market," said Ronna O'Connell, an analyst at StoneX, referring to international tensions as well as financial uncertainty, especially ahead of Trump's inauguration.

Lower interest rates make gold more attractive as a hedge against economic and geopolitical risks.

The market is now awaiting a fresh set of catalysts, including a series of US economic data due next week that could impact interest rate expectations for 2025.

Gold hit several record highs in 2024, rising 27 percent, its biggest annual gain since 2010, amid interest rate cuts by the US Federal Reserve, aggressive buying by central banks and rising geopolitical tensions.

Trump's presidential term is scheduled to begin on January 20.

Proposed tariffs and protectionist trade policies are expected to raise inflation and could spark trade wars, increasing gold's appeal as a safe haven.

As for other precious metals, silver in spot transactions rose 2.1 percent to $29.48 per ounce.

Palladium rose 1.3 percent to $922.04 an ounce, while platinum rose 2.1 percent to $922.85 an ounce.

52 views  Added 01/02/2025 - https://economy-news.net/content.php?id=51560

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

Seeds of Wisdom RV and Economic Updates Thursday Afternoon 1-2-25

Good Afternoon Dinar Recaps,

BINANCE MADE HISTORY: FIRST CRYPTO EXCHANGE TO SECURE BROKER-DEALER LICENSE IN BRAZIL!

▪️Binance crypto exchange secures broker-dealer license in Brazil.

▪️Richard Teng highlights Binance’s dedication to compliance and Brazil’s clear crypto regulatory framework.

▪️Brazil marks Binance's 21st regulatory milestone, solidifying its global leadership in crypto markets.

Binance, the world’s leading cryptocurrency exchange, has made a significant move in Brazil by securing approval from the Central Bank of Brazil to acquire a licensed broker-dealer institution. This marks Binance’s 21st global regulatory achievement, and it’s a big win for the platform in Latin America’s largest market.

Binance’s New License in Brazil

With the full approval to take over Sim;paul, a licensed broker-dealer, Binance can now operate with even more efficiency in Brazil. The license not only allows Binance to distribute securities and issue electronic money, but it also makes Binance the first crypto exchange to hold a broker-dealer license in the country.

This new approval positions Binance to better comply with Brazil’s growing regulatory framework for crypto assets.

However, Richard Teng, Binance’s CEO, expressed his excitement about the approval on X. He said Brazil is a growing crypto market, and this approval shows Binance’s commitment to following the rules while offering a safe platform for its users. Teng thanked local regulators for their work in setting clear rules for the industry.

Brazil’s Efforts to Regulate Crypto

Brazil, ranked 10th in the global crypto adoption index, is taking steps to regulate the crypto industry. The Central Bank and IRS have created proposals for new rules and are asking experts and the public for feedback.

Additionally, legislators in the country are discussing bills related to asset segregation and stablecoins, signaling a future-forward approach to crypto regulation.

Binance’s Expanding Global Reach

This approval is just one example of Binance’s commitment to global expansion. The company has also received regulatory approval in other countries like Argentina, India, Kazakhstan, and Indonesia. Binance holds licenses in places like Dubai, France, Japan, and El Salvador, showing its global reach and commitment to following rules everywhere.

@ Newshounds News™

Source:  Coin Pedia

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MEMBERS OF US CONGRESS BACKED BY CRYPTO PACS TO TAKE OFFICE ON JAN. 3

Interest groups suggested that a majority of lawmakers in the US House of Representatives would be “pro-crypto” after the 2024 election.

United States lawmakers who benefitted from support from the cryptocurrency industry in their respective 2024 primaries or elections will soon be sworn into office for the 119th session of Congress.

Crypto executives and political action committees (PACs) like Fairshake and its affiliates poured millions of dollars into media buys to support “pro-crypto” candidates in the 2024 election cycle, which could have contributed to some politicians winning in certain tight races across the country.

One of the most high-profile elections saw Republican Bernie Moreno defeating incumbent Ohio Senator Sherrod Brown by roughly 200,000 votes after the Defend American Jobs PAC spent more than $40 million.

According to data from the election influence tracking website Follow The Crypto, 10 new members of the US Senate expected to be sworn in benefitted in some way from funding from the cryptocurrency industry.

From a $6,600 individual contribution from Ripple co-founder Chris Larsen to Maryland Senator Angela Alsobrooks to more than $10 million from the Protect Progress PAC — also a Fairshake affiliate — to support Michigan Senator Elissa Slotkin, crypto money arguably influenced the composition of the next US Senate just as much if not more than other special interest groups.

The makeup of the US House of Representatives is a similar story, with 63 new members taking office in January. Fairshake and its affiliates poured millions of dollars into primary races in 2024 to support both Democratic and Republican candidates who had expressed views favoring the crypto industry.

In one of its biggest expenditures resulting in a win for the candidate, Protect Progress spent roughly $1.7 million in media buys to back Alabama Representative Shomari Figures over Anthony Daniels in the primary for the state’s 2nd Congressional District. Some House candidates, including Texas Representative Sylvester Turner, appeared to have not received any support from crypto executives or PACs.

No signs of crypto money stopping in the next election cycle

According to the advocacy group Stand With Crypto — which also attempted to influence US voters to choose candidates it considered favorable to the industry — roughly 270 lawmakers in the next session of Congress will be “pro-crypto,” with a clear majority in the House.

The composition of both chambers could affect legislation in 2025 on how to regulate crypto in the US through proposed bills like the Financial Innovation and Technology for the 21st Century Act (FIT21).

After their 2024 election wins, some in the industry have suggested that they will continue their approach to supporting candidates in the 2026 midterms and beyond. As of November, Fairshake reported having roughly $103 million to be used for the 2026 election cycle, primarily funded by Coinbase and Ripple. All 435 House members, serving two-year terms, will be up for election again at that time.

@ Newshounds News™

Source: CoinTelegraph 

~~~~~~~~~

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Iraq Economic News and Points to Ponder Thursday AM 1-2-25

The 10 Largest Arab Countries In Debt In 2024.. This Is Iraq’s Rank

 Economy     2025-01-01 | Source:   Al Jazeera Net     5,505 views   Alsumaria News – Economy    The International Monetary Fund expects the volume of public (government) debt to exceed $100 trillion during the year 2024, according to the World October Economic Outlook report issued last.

 Looking ahead, debt levels are expected to rise faster than previously expected as  government policies fail to address debt risks in an aging population and rising healthcare costs.

Rising geopolitical tensions may also lead to increased defense spending, adding pressure on budgets Government.

 The International Monetary Fund has warned that the public debt situation around the world may be more serious than most people think, highlighting high fiscal deficits in the United States and China.

 By the end of the current decade public debt to reach, the International Monetary Fund expects global GDP 100% of global by 2030, according to the International Monetary Fund.

 America And China

 *As the largest economy in the world, US debt continues to balloon, representing 34.6% of total global government debt with a debt volume of $36.1 trillion based on US Treasury data for December 12, 2024.

 *China, which ranks second in the world, accounts for 16.1% of global government debt with a total debt volume of $16.4 trillion.

*The United States and China bear a large share of rising public debt levels.

Public Debt

 *Excluding the two countries from the calculations, the ratio of global to GDP will decrease by about 20%, according to the International Monetary Fund.

 *Egypt tops the list of the most indebted Arab countries with $345.5 billion, followed by Saudi Arabia with a total debt volume of $311.5 billion.

 Why Do Governments And Countries Borrow?

 in the world obtain Governments most of their income from taxes.

 For example, residents pay many different taxes to the government such as income tax, sales tax and value added tax, and companies pay tax on the profits they make, and other taxes.

 In theory, the state can cover all of its spending through taxes, and this sometimes happens, but   if the government is unable to do that, it resorts to filling the gap by increasing taxes, reducing spending, or borrowing.

 Higher taxes mean people have less money to spend, so companies make less profits, which can be bad for jobs and wages. Lower profits also mean companies will pay less in taxes.

Therefore, governments often decide to borrow to boost the economy, and they also borrow to finance major projects, such as new railways and roads, health care projects and others.

How Do Countries And Governments Borrow?

 borrow Governments money in several ways, the most important of which are:

 Selling Bonds

 raise Governments money by selling bonds, often to investors.

 An investor who buys a bond lends the government money for an agreed upon term, and  many bonds pay interest at regular intervals known as "coupon payments."

When the bond's agreed-upon term expires - known as its maturity date - the government repays the principal amount of money with dividends.

Some bonds are short-term, some are medium-term, and some are long-term that may last for decades, according to the World Economic Forum.

 Buying bonds or government debt is usually a safe investment, especially if you are lending to a rich and stable country like the United States, which is usually seen as less risky because it is the largest economy in the world and has never defaulted on its sovereign debt.

 Resorting to the International Monetary Fund

also borrow Governments from the International Monetary Fund, which lends money to its member countries to help them overcome economic crises or to prevent crises.

 The IMF only lends to governments, not the private sector or civil society.

 The Fund's loans are not tied to any specific project or spending - unlike loans from development banks, which are often used to support specific projects - and

almost all IMF loans come with strict conditions tied to policy changes that governments must make in order to receive financing.

 The movement of credit due to the International Monetary Fund from December 1, 2024 to the 24th of the same month amounted to about $112.5 billion.

 Resorting To The World Bank

 The World Bank Group lends money primarily to developing countries and private institutions undertaking specific projects.

Countries eligible for loans from the World Bank's International Development Association must have a per capita income of less than $1,085 and may not already be in arrears on their debts to the IMF or the World Bank.

 Upper middle-income countries (with per capita income between $4,046 and $12,535) can borrow from the International Bank for Reconstruction and Development at interest rates lower than those offered by commercial banks.

 Lower middle-income countries (with per capita income between $1,036 and $4,045) can borrow from a “mix” of IDA and International Bank for Reconstruction and Development (IBRD) financing, depending on their creditworthiness.

Internal Loans

 As for internal debt, it refers to the portion of a state’s debt owed within its borders, and

 many of the world’s governments borrow from national and local banks operating in their territories, and from other institutions such as the Social Security Corporation, and other local investment institutions.

 The Seriousness Of Debt And Its Effects

 Borrowing may be vital for development, as governments use it to finance their expenditures, protect their people and invest in them,  but it may also constitute a heavy burden when public debt grows excessively or very quickly, and  this is what is happening today in various parts of the world, especially in developing countries.

The most important of these risks to developing countries, according to the United Nations Trade and Development Organization (UNCTAD), are the following:

1- High Cost Of External Debt

 Developing countries now face increasing and rising costs of external debt.

 External public debt service reached $365 billion in 2022, equivalent to 6.3% of export earnings.

 By comparison, the 1953 London Agreement on German war debts set the amount of export earnings that could Spending it on servicing external debt by 5% to avoid undermining the recovery.

 2- High Borrowing Costs

suffer Developing countries from higher borrowing costs than others, which increases the resources needed to pay creditors, making it difficult for developing countries to finance investments and development programs.

 Developing countries borrow at interest rates that are about 2 to 4 times higher than interest rates in the United States, and about 6 to 12 times higher than interest rates in Germany.

 3- Depletion Of Resources

 Developing countries have experienced net resource outflows.

 In 2022, developing countries paid $49 billion more to their external creditors than they received in new payments, resulting in a negative net resource transfer.

 The impact of these trends is a major development concern, because it is people who ultimately pay the price.

4- Health, Education And Development

 Not only are interest payments in developing countries growing rapidly, they are outpacing growth in critical public spending such as health, education and development programmes, and as a result, interest payments are constraining spending in all developing countries.

 Overall, a total of 3.3 billion people live in countries that spend more on interest payments than on education or health.

 The 10 Highest Debt Countries In The World In 2024

 We present to you a list of the 10 largest debt countries in the world in 2024, according to Visual Capitalist, based on data from the World Economic Outlook report issued by the International Monetary Fund in October 2024 , and data from the US Treasury Department regarding US debt.

 1- United States    Total debt: $36.1 trillion

Percentage of global debt: 34.6%

Ratio to GDP: 121%

 2- China    Total debt: $16.5 trillion

Percentage of global debt: 16.1%

Ratio to GDP: 90.1%

3- Japan   Total debt: $10.2 trillion

Percentage of global debt: 10%

Ratio to GDP: 251.2%

 4- United Kingdom   Total debt: $3.7 trillion

Percentage of global debt: 3.6%

Ratio to GDP: 101.8%

5- France   Total debt: $3.6 trillion

Percentage of global debt: 3.5%

Ratio to GDP: 112.3%

6- Italy   Total debt: $3.3 trillion

Percentage of global debt: 3.2%

Ratio to GDP: 136.9%

 7- India      Total debt: $3.2 trillion

Percentage of global debt: 3.2%

Ratio to GDP: 83.1%

 8- Germany   Total debt: $2.95 trillion

Percentage of global debt: 2.9%

Ratio to GDP: 62.7%

 9- Canada   Total debt: $2.35 trillion

Percentage of global debt: 2.3%

Ratio to GDP: 106.1%

 10- Brazil    Total debt: $1.9 trillion

Percentage of global debt: 1.9%

Ratio to GDP: 87.6%

As we note from the previous table, the   largest debtor countries are also the largest economies in the world, and  this means that the global economy itself is in danger.

 10 Arab Countries With The Highest Debt In 2024

 Below is a list of the 10 largest Arab countries in debt in 2024, according to previous sources.

1- Egypt   Total debt: $345.5 billion

Percentage of global debt: 0.3%

Ratio to GDP: 90.9%

2- Saudi Arabia   Total debt: $311.5 billion

Percentage of global debt: 0.3%

Ratio to GDP: 28.3%

3- UAE   Total debt: $171.1 billion

Percentage of global debt: 0.2%

Ratio to GDP: 31.4%

4- Iraq   Total debt: $121.2 billion

Percentage of global debt: 0.1%

Ratio to GDP: 45.9%

5- Algeria    Total debt: $118.9 billion

Percentage of global debt: 0.1%

Ratio to GDP: 45.7%

6- Morocco   Total debt: $107.9 billion

Percentage of global debt: 0.1%

Ratio to GDP: 68.7%

7- Sudan   Total debt: $102.6 billion

Percentage of global debt: 0.1%

Ratio to GDP: 344.4%

8- Qatar   Total debt: $91.2 billion

Percentage of global debt: 0.1%

Ratio to GDP: 41.2%

9- Bahrain   Total debt: $60.6 billion

Percentage of global debt: 0.1%

Ratio to GDP: 126.7%

10- Jordan   Total debt: $48.9 billion

Percentage of global debt: less than 0.1%

Ratio to GDP: 91.7% 

https://www.alsumaria.tv/news/economy/511489/أكبر-10-دول-عربية-ديونا-عام-2024-هذه-مرتبة-العراق       

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

Seeds of Wisdom RV and Economic Updates Thursday Morning 1-2-25

Good Morning Dinar Recaps,

BRICS NEWS: TURKEY BACKTRACKS ON ALLIANCE, JOINS SAUDI ARABIA

▪️Turkey and Saudi Arabia won’t join BRICS as both nations pulled back their membership plans.

▪️Trump’s planned return and threats of heavy tariffs on nations moving away from the U.S. dollar have made countries hesitant to join the economic bloc.

Turkey has withdrawn its interest in joining the BRICS economic alliance. Turkey’s decision aligns with Saudi Arabia’s, marking a significant setback for the bloc’s expansion plans ahead of 2025. The move is regaining momentum in light of escalating geopolitical tensions and the risks of American action against countries trying to lessen dollar dependence.

Key Nations Step Back from BRICS Membership

Turkey’s failure to go forward with BRICS membership is a key political twist. Turkey is a NATO member and would have been the first to join both alliances. The country spent considerable time propagating for the membership throughout the year, but it rejected the offer given to it as one of the first batches of partner countries.

Saudi Arabia’s case is similar to Turkey’s, although, at one point, it agreed to a request during the 2023 annual summit. The Kingdom has officially suspended its membership process, thus contributing to increasing problems confronting the economic bloc in its formative stage.

U.S. Opposition and Economic Pressures Shape Decision-Making

The expected return of Donald Trump to power in the White House has brought new considerations regarding membership of the BRICS group. As previously reported by Crypto News Flash, Trump’s threat of 100% tariffs on nations willing to leave the U.S. dollar has become a major impediment to potential members.

As a result of such policy, BRICS has been able to enlist nine new partner countries, and here again, the two most relevant participants, Turkey and Saudi Arabia, are conspicuous in their absence. The block’s attempts to counter de-dollarization have intensified and lost ground, especially considering the possible continuation of the American opposition under the Trump presidency.

Impact on BRICS’ Future Trajectory

The partial withdrawal of interest from Turkey and Saudi Arabia shows the dynamics that countries face in the world today when trying to find new economic alliances while keeping their time-tested allies. In addition to Turkey, Nigeria, Vietnam, and Algeria rejected an invitation to join the alliance, implying that other potential members have also been reluctant.

These developments raise fundamental questions about the BRICS expansion model and its capacity to attract major players in an increasingly polarized global landscape. The circumstances show how the membership of the economic alliance has changed from purely financial aspects to a political stand.

It is difficult to say conclusively whether the bloc’s objectives will be achieved and why its endeavors, such as de-dollarization, have recently intensified.

At the same time, it can be stated that the very potential of this process may force its participants and potential members to rethink existing approaches and solve a number of problems that stem from the fact of their existence as actors in the current system of international relations and the modern world economy.

@ Newshounds News™

Source:  Crypto News Flash

~~~~~~~~~

BRICS NEWS:  23 COUNTRIES SHOW INTEREST TO JOIN BRICS IN 2025

The number of countries willing to join the BRICS alliance in 2025 is rapidly growing. More than 20 countries have expressed their interest in joining the bloc and participating in decision-making.

The group is ushering in a new financial era independent from the clutches and dominance of the US dollar. The alliance is pushing de-dollarization as its sole goal, aiming to make local currencies the center of all trade and transactions.

BRICS: 23 Countries Express Interest to Join Alliance in 2025

A Russian diplomat confirmed that around 23 countries are showing interest in joining BRICS in 2025. Russian Presidential aide Yury Ushakov revealed that the alliance is open to inviting like-minded countries to join the bloc. The move will strengthen the prospects of local currencies and challenge the US dollar on the global stage.

“The doors of the association remain open to like-minded countries. At the moment, over two dozen more countries have shown interest in a systemic dialogue with BRICS,” in 2025 said Ushakov. Emerging economies find the alliance lucrative as it’s the only group that’s challenging the hegemony of the US dollar.

The countries that want to join BRICS in 2025 are: “Azerbaijan, Bahrain, Bangladesh, Burkina Faso, Cambodia, Chad, Colombia, the Republic of the Congo, Equatorial Guinea, Honduras, Laos, Kuwait, Morocco, Myanmar, Nicaragua, Pakistan, Palestine, Senegal, South Sudan, Sri Lanka, Syria, Venezuela, and Zimbabwe,” said the aid

However, Ushakov explained that uncontrolled expansion would lead to the association breaking up its thought process. He said that BRICS needs to cherry-pick its partners carefully in 2025 to thrive and survive. “It is clear that uncontrolled expansion of our association would break its backbone. We believe that we need gradual, harmonized, and accurate steps. Like those we have been taking throughout our chairmanship,” Ushakov summed it up.

@ Newshounds News™

Source:  Watcher Guru

~~~~~~~~~

Franklin Templeton predicts Bitcoin reserves to expand globally in 2025

Politicians in Germany and Hong Kong have signaled their interest in adopting strategic Bitcoin reserves for their nations.

@ Newshounds News™

Source:  CoinTelegraph

~~~~~~~~~

Proposal mandating the Swiss National Bank to hold Bitcoin now underway

The Swiss Bitcoiners must rack up 100,000 signatures from Switzerland’s 8.92 million residents by June 30, 2026, to trigger a public referendum.

@ Newshounds News™

Source:  CoinTelegraph

~~~~~~~~~

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“Tidbits From TNT” Thursday Morning 1-2-2025

TNT:

Tishwash:  Comprehensive Guide to Trading the Iraqi Dinar (IQD) on Forex - FOREX News on BitcoinWorld (12/31/24)

The Iraqi Dinar (IQD) is the official currency of Iraq, and while it may not be as widely traded as major currencies like the US Dollar (USD) or the Euro (EUR), it holds significant interest for Forex traders looking to diversify their portfolios.

Trading the IQD on the Forex market presents unique opportunities and challenges, influenced by Iraq’s economic conditions, geopolitical factors, and global market trends.

This comprehensive guide delves into everything you need to know about trading the Iraqi Dinar on Forex, including live rates, trading strategies, market analysis, and tips for successful IQD Forex trading today.

Follow link to view FOREX News article:

https://bitcoinworld.co.in/trading-iraqi-dinar-iqd-forex/

Tishwash:  Expert: Iraqi economy is stable despite changes in the dollar market

Economic expert Safwan Qusay confirmed today, Wednesday, that the Iraqi economy is stable despite the changes in the dollar market.

Qusay said in an interview with Al-Maalouma Agency, “The Central Bank of Iraq announced the termination of the electronic platform for banking transactions starting from the beginning of the new year, after notifying all Iraqi banks of the cancellation decision early on.”

He added that "13 Iraqi banks were able to adapt to this change, as they expanded their dealings with real merchants, so that the percentage of transfers and credits that take place through direct relations between Iraqi banks and supplier banks reached more than 95%." "

He explained that "these operations are carried out in accordance with strict compliance standards that ensure knowledge of suppliers and payment mechanisms."

He continued, “As for the 5% of transfers that were made through the electronic platform, traders who wish to continue importing operations at the official price can open bank accounts within these banks.”

He pointed out that "the Central Bank issued a circular on September 30th allowing traders to import directly after opening bank accounts, without the need for a waiting period that previously extended to six months."

He explained that "the market may witness some fluctuations, but he ruled out the possibility of achieving large profits from importing irregular goods, in light of the Iraqi economy, which relies heavily on the dollar and its high value globally."

He pointed out that "the Iraqi economy will not face major concerns as a result of this change, stressing the importance of adhering to banking procedures to ensure market stability and facilitate import operations."  link

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

Tishwash:  Finland announces withdrawal of all its soldiers from Iraq

 The Finnish Ministry of Defense announced today, Wednesday, January 1, 2025, the return of its last soldiers from Iraq by the end of 2024, who participated in training Iraqi forces to fight ISIS gangs within the international coalition.

A statement by the ministry, translated by "Baghdad Today", stated that "ISIS gangs have lost most of the lands they controlled, but they still pose a threat, which requires the continuation of the war against terrorism."

The statement added, "Although Finland's participation in the operation has ended, the impact of its efforts will remain visible for a long time, as the training provided by Finnish forces has contributed to enhancing the ability of security forces to secure their areas and ensure the safety of the local population."

The statement stressed that "despite the end of Finland's participation in Operation Inherent Resolve, it continues to support and develop the security sector in Iraq through its participation in NATO's Mission in Iraq (NMI)."

He explained that "the advisory activity aims to implement broad and long-term reforms of the Iraqi armed forces and their management in cooperation with local partners, which supports the development of the security environment in Iraq," noting that " advisory activities will remain an essential part of efforts to achieve long-term stability in the region, and Finland will continue its work in this important NATO-led process."  link

Mot: SLOWLY!!! -- Open Very SLOWLY!!!!! 

Mot:  Yeppers!!! -- Already I Am -- Writing the Wrong un!!! Siggghhh

Mot: . Just What is a ~~~~News year resolution

Iraq Economic News and Points to Ponder Wednesday Evening 1-1-25

Iraq Officially Stops Working On The Electronic Platform.. Will We Witness A Crazy Rise In The Dollar?
 
Economy   2025-01-01 | 13,838 views  Alsumaria News – Today, Wednesday, the Central Bank of Iraq announced the suspension of the electronic platform mechanisms related to selling the dollar.
 
Governor of the Central Bank, Ammar Khalaf, said Deputy in a statement to the official agency, followed by Alsumaria News, that  “the working mechanism of the electronic platform related to foreign transfers has stopped working on it, but financing foreign trade continues through correspondent banks according to various mechanisms that are equivalent to what is done in countries of the world.”

He pointed out, "Continuing to grant dollars to travelers at airports according to the approved mechanism, which is the best in restricting the traveler's access to dollars."
 
Dinar’s Exchange Rate

This decision comes as part of a series of reforms aimed at facilitating financial procedures and stimulating the economy, but at the same time it raises questions about its potential impact on the stability of the Iraqi against the US dollar .
 
The concept of the electronic platform and its role in currency stability
 
The electronic platform for money transfers is a mechanism that has been adopted to ensure the regulation of foreign cash transfers and limit manipulation of exchange rates.
 
The platform works to document commercial operations and money transfers by banks and financial companies, ensuring more effective control over hard currency flows inside and outside the country.
 
This platform has greatly contributed to reducing the gap between the official exchange rate and the black market rate, as it has prevented many money laundering and smuggling operations.
 
However, with the decision to cancel this platform, questions arise about how to organize the market and manage transfers.
 
The effect of canceling the platform on the price of the dollar
 
1- Increased demand for the dollar on the black market.
 
With the absence of an electronic platform, the demand for the dollar on the black market may increase as a result of the absence of control mechanisms, which leads to an increase in exchange rates outside official channels.
 
2- Weak confidence in the dinar, as
 
canceling the platform may weaken confidence in the Iraqi dinar, especially if effective alternatives are not developed to ensure market stability.
 
Weak confidence means that citizens and investors may withdraw their money in dinars and convert them to the dollar as a safe haven.
 
3- The impact of smuggling and money laundering, as
 
canceling the platform could eliminate strict control over dollar smuggling operations and smuggling and money laundering practices may expand, which would increase the demand for the dollar and affect the reserves of the Central Bank. greatly
 

4- The market’s dependence on supply and demand.
 
With the cancellation of the platform, the currency market may become more affected by direct supply and demand.
 
This may lead to severe fluctuations in the exchange rate, especially under unstable economic and political conditions.
 
Possibilities of facing a rise in the dollar
 
1- Activating alternative oversight tools
 
The government and the central bank can rely on other regulatory tools, such as strengthening the role of local banks and setting strict restrictions on foreign transfers.
 
2- Increase dollar reserves
 
The central bank may resort to pumping more dollars into the market to meet demand and maintain price stability.
 
3- Promoting local investments
 
By encouraging investment and reducing dependence on foreign currencies, pressure on the dollar can be eased and the dinar strengthened.
 
4-Cooperation with international organizations
 
The government may cooperate with international institutions such as the Monetary Fund and the World Bank to develop economic plans that contribute to market stability.
 
The decision to cancel the electronic platform for financial transfers represents a major challenge to the Iraqi economy, and may have direct effects on the exchange rate of the dollar against the dinar.
 
To achieve economic stability in the next stage, it will be necessary to take proactive measures to compensate for the absence of the platform and ensure continuity of supervision of the financial market.

The balance between facilitating economic procedures and protecting the national currency will be the decisive factor in determining the success of this decision and its effects on citizens and investors.    
  
 https://www.alsumaria.tv/news/economy/511533/العراق-يوقف-رسميا-العمل-بالمنصة-الالكترونية-هل-سنشهد-ارتفاعا-جنونيا-با    

The Central Bank Announces A Major Achievement In Foreign Transfers  

January 01, 2025  The Central Bank of Iraq announces its success in adhering to its program related to the transition from external transfers through the electronic platform to the work of Iraqi banks through their external correspondent banks.
 
This transition took place through stages that the external transfer process went through, starting with the window for buying and selling foreign currency and moving to the stage of the electronic platform for external transfers.
 
The process of gradually enhancing the balances ended during the year 2024 and was fully achieved in the last week of this year.
 
This achievement is considered a radical transformation in line with the best international standards and practices to achieve a stable and secure financial system, and
 
this work received international support and praise throughout the stages of its implementation.
 
The new transfer methodology comes in line with international practices followed in this Field, which separate the responsibilities and duties of the central Bank from the   obligations,  responsibilities and  role of commercial banks. From this standpoint, the
 
Central Bank of Iraq will continue to enhance the balances of Iraqi banks in its correspondent banks in
 
     US dollars, along with a group of other currencies. Such as (the
     Indian rupee, the
     Chinese yuan, the
     euro, the
     Emirati dirham, the
     Saudi riyal, and the
     Jordanian dinar), and
 
this achievement strengthened the The efficiency and safety of external transfer operations, and  
their transition to the method followed in all countries of the world,
 
which will make Iraq enter a new stage in its financial relations regionally and internationally and strengthen the government’s tendencies to expand its economic relations and enhance investment opportunities.

The efforts in this important achievement came through a series of continuous detailed technical procedures and agreements, and great support from the Iraqi government, and
 
the bank will continue to follow modern methods in managing monetary policy in Iraq, in a way that is consistent with its basic role in achieving financial stability and its position among banks.
 
Centralization in the region and the world, which will reflect positively on the confidence and support of Iraq’s external financial sector and international financial and economic organizations.
 
Through this, the management of the Central Bank of Iraq takes this important opportunity to express its thanks and appreciation to everyone who contributed to achieving this great achievement, the first of whom is the 
 
     staff of the Central Bank of Iraq, the
     banking sector in Iraq, and
     all international partners.
 
In conclusion, the Central Bank of Iraq shows its full readiness to support all Iraqi banks that are working to develop and enhance their performance in the field of       governance,     compliance, and
     combating money laundering in a way that reflects positively on the confidence of international and regional banks in them to contribute to strengthening the Iraqi banking system and the Iraqi economy in general.
Happy new year. Central Bank of Iraq  Media office  January 1, 2025      https://cbi.iq/news/view/2755    

Dollar Falls As Markets Close In Baghdad

01/01/2025  Mawazine News – Economy  The dollar exchange rate against the dinar fell on Wednesday evening in Baghdad markets.

The dollar price also fell with the closing of the Al-Kifah and Al-Harithiya stock exchanges to record 151,500 dinars per 100 dollars, while this morning it recorded 151,700 dinars per 100 dollars.

The selling prices were recorded in exchange shops in local markets in Baghdad, where the selling price reached 152,500 Iraqi dinars per 100 dollars, while the purchase price reached 150,500 dinars per 100 dollars.    https://www.mawazin.net/Details.aspx?jimare=258126

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

Iraq Economic News and Points to Ponder Wednesday Afternoon 1-1-25

Our Economic And Financial Vision For 2025 In Iraq

Dr. Aqil Jabr Ali Al-Muhammadi / Specialist in Finance and Development Affairs
It is clear that there is a structurally rooted problem in the methodology of evaluating and empowering the state in its sound tools and policies and how to sustain economic progress.

The reality of the situation requires reviewing and evaluating the structure of economic and financial decisions and creating a priority for the economic and financial feasibility of government decisions.

It is clear to observers, specialists and researchers in 2025 that the Central Bank of Iraq, despite all the efforts, decisions and diligent measures to overcome the dollar crisis and its transfers, is challenging its limits and monetary policies, specifically in the matter of canceling the platform and the upcoming challenges for correspondent banks, influence, size and extent of the safety of the mechanism of financial transfers, the approach to sustaining commercial and economic activity, the dominance of some Jordanian banks, and the available and expected solutions and scenarios, etc.

From our own point of view, regarding the subject of the correspondent banking market, if I may say so, we see that it is important for the Iraqi executive government to monitor and follow up on the methodology of the Central Bank’s return to the break-even point and not lose the compass of the course or channels of the dollar’s ​​circulation and transfer in the Iraqi market inside and outside Iraq.

We believe that one of the strategic solutions for the executive government lies in forming a team to monitor and evaluate the mechanism of monetary policy and the dollar, which is its role in supervising, monitoring, evaluating, and not influencing/maintaining the independence of the Central Bank.

The specialized, expert and responsible figures and bodies should be transparent in relation to monetary and banking policy, and give greater flexibility in dialogue and accept opinions and other opinions, and not confiscate or neutralize opinions and proposals on the grounds of the privacy of monetary policy and focus on the priority of re-maintaining and restructuring monetary policy for the benefit of the cohesion of the economic and financial system in Iraq!!!

Regarding the budget price for the year 2025, the fiscal policy will face major challenges and perhaps financial shocks due to the possibility of fluctuations in the oil market and the possibility of facing a financial crisis in the second half of 2025, as indicated by financial reports from some international organizations.

Therefore, the budget price should be restructured as a precaution and a hedge, and a return to the hedge price to ward off internal and external risks and maintain a margin of financial safety. We propose hedge price limits and changing the budget price from $70 to a hedge budget price within the equilibrium limits ranging between $55-60 and in a manner that does not exceed the equilibrium price limits.

There should be a systematic shift from financing initiative policies (such as the Riyada initiative and the like) and others to an institutional structure for financing small, medium and micro enterprises, and building and establishing a specialized body to manage and finance small, micro and medium enterprises, and dealing with a modern financial and economic methodology and models according to sound foundations.

The importance of the state’s thinking shifting to the methodology of economic transformation and the foundations of the institutional digital economy, and establishing a tangible model of economic diversification through good investment of natural resources, gas, minerals, etc., and establishing the mechanism of the social market and the constructive institutional economy, and building a strategy for economic, developmental, and social transformation.

The importance of starting to establish a sovereign fund and financing it with innovative means and models outside the scope of the federal budget as new financial buffers and augmentation of the financial system in Iraq and sustainable financing means for development in Iraq. 298 views 12/31/2024 - https://economy-news.net/content.php?id=51456

Central Bank: Stop Working On The Electronic Platform

Banks  Economy News – Baghdad  The Central Bank of Iraq announced, on Wednesday, the suspension of the electronic platform mechanisms related to selling the dollar, while indicating the continuation of the mechanism for granting the dollar to travelers at airports.

The Deputy Governor of the Central Bank, Ammar Khalaf, said in a statement reported by the official news agency, and reviewed by "Al-Eqtisad News", that "the mechanism of work on the electronic platform related to foreign transfers has stopped working, but financing foreign trade continues through correspondent banks according to different mechanisms that are parallel to what is in effect in countries of the world."

He pointed out that "dollars will continue to be given to travelers at airports according to the approved mechanism, which is the best in limiting the traveler's access to dollars."

The Central Bank of Iraq announced today, Wednesday, that it had achieved a major accomplishment in foreign transfers, while indicating that it would continue to follow modern methods in managing monetary policy in Iraq.

A statement by the bank, received by "Al-Eqtisad News", stated that "the bank succeeded in adhering to its program related to the transition from foreign transfers via the electronic platform to the work of Iraqi banks through their foreign correspondent banks," noting that "this transition took place through stages that the foreign transfer process went through, starting with the window for buying and selling foreign currency and moving to the stage of the electronic platform for foreign transfers, and ending with operations to gradually enhance balances during the year 2024 and was fully achieved in the last week of this year."

He continued, "This achievement is a radical transformation in line with the best international standards and practices to achieve a stable and secure financial system, and this work has received international support and praise throughout its implementation stages,"

indicating that "the new transfer methodology is consistent with international practices followed in this field, which separate the responsibilities and duties of the Central Bank from the obligations, responsibilities and role of commercial banks.

From this standpoint, the Central Bank of Iraq will continue to enhance the balances of Iraqi banks with their correspondent banks in the US dollar, in addition to a group of other currencies, such as (the Indian rupee, the Chinese yuan, the euro, the UAE dirham, the Saudi riyal, and the Jordanian dinar)."

He added, "This achievement has enhanced the efficiency and safety of foreign transfer operations, and their transition to the method followed in all countries of the world, which will make Iraq enter a new phase in its financial relations regionally and internationally and enhance the government's orientations in expanding its economic relations and enhancing investment opportunities."

He pointed out that "the efforts in this important achievement came through a series of ongoing detailed technical procedures and agreements, and great support from the Iraqi government, and that the bank will continue to follow modern methods in managing monetary policy in Iraq, in line with its essential role in achieving financial stability, and its position among central banks in the region and the world, which will positively reflect on the confidence and support of the external financial sector of Iraq and international financial and economic organizations."

He explained that "through this, the management of the Central Bank of Iraq seizes this important opportunity to express its thanks and appreciation to everyone who contributed to achieving this great accomplishment, first and foremost the cadres of the Central Bank of Iraq, the banking sector in Iraq, and all international partners."

The statement concluded by saying, "The Central Bank of Iraq expresses its full readiness to support all Iraqi banks that work to develop and enhance their performance in the field of governance, compliance, and combating money laundering in a way that positively reflects on the confidence of international and regional banks in them to contribute to strengthening the Iraqi banking system and the Iraqi economy in general."   101 views 01/01/2025 - https://economy-news.net/content.php?id=51509

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

5 Market Signs of Debt Collapse Within Weeks

5 Market Signs of Debt Collapse Within Weeks

Liberty and Finance:  12-31-2024

As 2024 draws to a close, the economic landscape remains fraught with uncertainty and potential upheaval. In a recent appearance on Liberty and Finance, renowned market analyst Francis Hunt shares his insights on the prevailing economic conditions and offers forecasts for 2025.

His analysis, steeped in a deep understanding of market dynamics, highlights the crucial factors that may trigger a significant economic reset, emphasizing the need for strategic planning among investors.

The year 2024 has been marked by persistent challenges across various sectors of the economy. Hunt meticulously examines the debt markets, noting a rising trend of yield curve inversions—a phenomenon that has historically signaled impending recessions.

With interest rates fluctuating and government debts soaring, the implications for both individual investors and larger financial institutions could be profound. Hunt stresses that understanding these dynamics is essential for anyone looking to navigate the current economic waters.

Hunt identifies several critical factors that could catalyze a significant economic reset in the near future.

Among them, he underscores the growing concerns surrounding the global debt burden, particularly in the wake of expansive fiscal policies implemented over the past few years. As nations grapple with escalating debt levels, the sustainability of these financial strategies comes into question. The interconnectedness of global markets means that distress in one region can rapidly ripple through to others, amplifying risks for investors worldwide.

Moreover, the implications of yield curve inversions cannot be overstated. Historically, such inversions have preceded economic downturns, serving as a warning signal for policymakers and market participants alike. Hunt suggests that as the yield curve continues to behave in this manner, a heightened sense of caution should prevail, prompting investors to reassess their portfolios and strategies.

Amid these challenges, Hunt draws attention to the potential for precious metals to act as a safe haven for investors. With economic volatility on the rise, gold and silver have historically served as a hedge against inflation and currency devaluation.

 Hunt posits that as uncertainty escalates, the demand for these tangible assets may surge, positioning them as a critical component of a defensive investment strategy.

Adding another layer of complexity to the economic narrative is the political context, particularly with the upcoming inauguration of president-elect Donald J. Trump. Hunt discusses how this political shift may influence economic policies and market sentiment moving into 2025.

Trump’s administration is expected to prioritize certain economic reforms, which could lead to both opportunities and challenges for investors. The ramifications of these policies will likely resonate throughout the markets, making it imperative for investors to stay informed and adaptable.

In light of the potential economic reset, Hunt emphasizes the importance of adopting defensive strategies. He advocates for a diversified portfolio that includes not only precious metals but also other asset classes that may provide stability during turbulent times. Investors are encouraged to consider their risk tolerance, investment horizons, and the economic signals that may dictate market movements in the near future.

Furthermore, Hunt underscores the value of remaining agile and responsive to changing market conditions. The ability to pivot and reassess one’s investment strategy in real-time can be the difference between weathering economic storms and suffering significant losses.

As 2024 comes to a close, Francis Hunt’s insights serve as a critical reminder of the complexities that define the current economic landscape.

 With potential triggers for an economic reset on the horizon, and a political shift that could reshape financial policies, investors must remain vigilant and informed. By implementing defensive strategies and staying attuned to market signals, they can navigate the uncertainties of the future, positioning themselves for resilience and opportunity in 2025 and beyond.

https://youtu.be/ePh68Gow5iM