Iraq Economic News and Points To Ponder Sunday Morning 7-6-25

Central Bank: The Use Of International Cards Continues Inside And Outside Iraq Without Change.
 
Baghdad Today – Baghdad  The Central Bank of Iraq issued a clarification today, Friday (July 4, 2025), regarding the use of international cards, confirming their continued use inside and outside Iraq without change.
 
The bank stated in a statement received by Baghdad Today that  "the National Electronic Payment Card Project is an additional local option used exclusively within Iraq and in Iraqi dinars.  It does not cancel or restrict existing international cards such as Visa and Mastercard." 

The statement added, "There are no plans to cancel these cards or ban dollar transactions outside Iraq.
Holders can still use them inside and outside the country as is currently the case."
 
According to the statement, the bank indicated that "this project aims to
     reduce payment costs,
     enhance financial inclusion,
     diversify options for the public, and
     provide national cards for all institutions and segments within Iraq,

" indicating that "international cards remain the primary means of  spending in dollars or other currencies outside Iraq and for  purchases via global websites."    https://baghdadtoday.news/277873-.html  

Iraq's Decline In Public Debt... Does It Signal An Economic Renaissance?
 
Close up breaking  2025-07-04 Shafaq News - Baghdad The Iraqi government has begun taking steps to reduce its internal debt.
 
The domestic budget is 85 trillion dinars, and  the external budget is 54 billion dollars, through a plan that depends on a combination of    Rationalization,   repayment,  structuring and  revenue expansion, with particular focus on Only productive borrowing instead of inefficient borrowing.
 
As a result of this strategy, the bank's statistics showed that The Central Bank of Iraq announced, yesterday, Thursday, a decrease in domestic public debt at the end of the month. April of this year to reach 85 trillion and 503 billion Iraqi dinars, down For the month of March, which amounted to 85 trillion and 536 billion dinars.
 
The official statistics that I reviewed indicated that Shafaq News Agency reported that "the decline came as a result of repaying loans from financial institutions."
To reach 19 trillion and 119  billion dollars after it was 19 trillion and 152 billion dollar". 

She explained that "the remaining debts are owed by... The Ministry of Finance owes 756 billion dinars, and treasury transfer debts to the Central Bank.

Commercial banks amounting to 51 trillion and 30 billion dinars, in addition to treasury transfers. On account of the Ministry of Finance in the amount of two trillion and 30 billion dinars, and national term debts Farmers' dues amount to 12 trillion and 568 billion dollars.

As for external debt, official statistics revealed that The Central Bank of Iraq stated on June 14, as seen by Shafaq News Agency, that:  Iraq's debt in 2024 amounted to $54.6 billion.
A decrease of 2.94% compared to 2023, in which debt amounted to 56 billion and 207 Millions of dollars.
 
Financial and economic experts explain that:
External debts due over the next four years are about 9 billion. Dollar, and there are external debts of a similar amount extending over longer years related to long-term loans from International funds for the reconstruction of mostly liberated areas.
 
Experts confirmed that the ratio of external debt to GDP is in the safe range of no more than 8% of GDP Total, which places Iraq within the comfortable and low-risk global credit rating.
 
Experts point out that Iraq has resources.
 
Diversified investments can lead to eliminating these debts, which contributes to maximizing confidence. In the national economy and  improving the international investment environment for the Iraqi economy.
 
Experts explain that the lower the interest burden, the better. Internal and external debts decreased as investors were reassured that Iraq was able to... Covering investment costs, and providing appropriate returns on those investments will lead to...
 
There is a need to diversify the national economy,  especially since there is a need for a thousand strategic projects. In the food, energy, transportation and other sectors.
 
"Financial reinforcement"
 
In detail, the Prime Minister's Advisor for Affairs says: Finance, Mazhar Muhammad Salih, said,  “The syndrome of low public debt growth rates or Government with the decline in growth in the annual budget deficit  is a trend that constitutes one of The components of the success and strength of the country's financial policy are called "financial consolidation."
 
"It is an essential goal of the program. Government, and undoubtedly indicates a shift towards another essential interdependence, which is the cohesion of financial sustainability. “With sustainable development,” Saleh said. He added to Shafak News Agency, "This renaissance in Managing public financial resources will undoubtedly lead to diversification of the national economy.

And moving the joints of growth in more than one economic sector guarantees the well-being of Iraqi society and its future.

Development in it.
 
Based on the above, Saleh explains that,  “the more Debt decreased, dependence on creditors from all sources, especially external debt, decreased,
 
Which leads to increased government flexibility in formulating monetary and fiscal policies away from Conditions of countries and foreign institutions donating debts. 

He continues,  "In addition to enhancing confidence in The national economy is an attractive point and a better business climate for investors due to the low risks. economy, while at the same time improving the country's credit rating."
 
As for the domestic public debt, it is according to Saleh "leads to easing the pressure on bank financing so that banks can devote themselves to granting Loans to the private sector,   as well as reduced competition between the government and the market over the price "Benefit".  He explains,
 
“Bank interest rates often rise.” Available to the private sector with rising local sovereign debt due to the pressure factor on Liquidity and bank credit, which is called (displacement - a phenomenon that occurs when Government spending through debt or large public borrowing to reduce or (displace) "Private investment or spending in the economy."

 Saleh confirms that "the decrease in what the government allocates... From its budget for interest and installment payments,
 
it will undoubtedly free up additional resources for infrastructure spending. Infrastructure, education, health, etc., in programs that maintain disciplined spending (non- (Austerity) and is consistent with the principles of financial governance in the government programme and development plan. National 2024-2028.
 
Debt reduction measures 
 
Among the debt reduction measures and their implications, the expert says: Financial and economic, Safwan Qusay, said:
 
“Zeroing domestic debt requires taking The Ministry of Finance has taken steps to facilitate the smooth settlement of this bill to creditors.
 
From this, Qusay explains to Shafaq News Agency, “From During the transfer of ownership of a portion of state real estate,   by issuing real estate shares for those assets and transferring Ownership of these shares goes to the creditors, to eliminate debts and not burden the budget.

"Federal cumulative benefits."  

He stresses that "this solution can contribute to Increase the financial flexibility of the Ministry of Finance later in covering the deficit through borrowing.

"Internal"
 
As for external debts, according to Qusay, Limited, long-term, with reduced interest, and the process of zeroing them out is done by setting a group One of the alternatives for the Ministry of Finance to expedite its payment, which contributes to improving the environmental outlook. International investment in the Iraqi economy. 

He explains, “The lower the interest burden and the more the Internal and external debts, the more investors are reassured that Iraq is able to cover Investment costs and providing appropriate returns on those investments.
 
Qusay reassures that “external debts are not…” Worried or dangerous, it is not high, as global indicators allow for internal borrowing And external to reach 60 percent of the GDP, and  yet it should not be burdened Future generations will suffer from such debts,  especially since Iraq has diverse resources that can Investing it in a way that leads to eliminating these debts.”  
 
Benefits hindered by corruption 
 
In turn, the economic expert, Karim Al-Helou, notes that:  "Most countries in the world are in debt, internally or externally, whether from international banks or "IMF and the like." 

Al-Halou explained to Shafaq News Agency,  "The highest The world's largest debt is the American debt, as the US government's domestic debt exceeds 36 A trillion dollars, and this is a weak point, and Germany also has two trillion euros in debt internally, but "Domestic debt remains much less harmful than external debt."  He explains that the internal debt is in the currency.”

 Local,  so the money can be circulated and the problem can be solved,but the external debt has profits, 
It may be exploited politically against countries that borrow.
 
On the importance of debt repayment and its impact on the economy Especially in Iraq, Al-Halou confirms,
 
“Paying off internal or external debts can…
Then transfer these installments to investment in the infrastructure and projects that it needs.

Iraq at the present time, especially since there is a need for a thousand strategic projects in the sectors
     Food,
     energy,
     transportation, etc. 

He points out that "the decline in domestic debt or External control in Iraq means that the state and its institutions have begun to control many things, but The road remains long in light of the corruption that hinders many projects in terms of
     corruption.
     Administrative corruption,
     bribery,
     favouritism,
     red tape and
     institutional ignorance.
 
This impression is reinforced by what Al-Halou says in: He concluded his speech by saying,
 
“I note that hundreds of good decisions have been issued by the Iraqi Council of Ministers, but…
 
When it comes to implementation in the provinces,
it is obstructed by corrupt parties exploiting the positions they hold.
 
It is acquired, and therefore most tenders and investment projects are not delivered except With bribery, this is a major flaw and a cancer eating away at the country's body. https://shafaq.com/ar/تقارير-وتحليلات/تراجع-الدين-العام-العراقي-هل-يشير-لنهضة-اقتصادية  

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

Seeds of Wisdom RV and Economic Updates Sunday Morning 7-6-25

Good Morning Dinar Recaps,

 Europe Hopes To Avoid the Worst: A Possible Agreement With the USA This Weekend?
EU scrambles to avert tariff showdown as U.S. threatens up to 70% duties on exports

▪️ Europe faces a July 9 deadline from Washington to reach a trade deal or risk crippling tariffs by August 1.
▪️ Customs duties could rise to 70% on EU exports if no agreement is reached.
▪️ Brussels is pushing for a last-minute agreement to avoid a transatlantic trade war that could reshape global economic alignments.

As global trade dynamics continue to shift, Europe finds itself cornered by a hard deadline imposed by the U.S. administration. Former President Donald Trump—who is leading current trade policy—has issued an ultimatum: reach a bilateral deal by July 9 or face punitive tariffs beginning August 1.

Brussels is scrambling to de-escalate the situation. In a tense climate of accelerated diplomacy, an EU delegation is currently in Washington negotiating to prevent a tariff confrontation that could destabilize key European industries.

Tariff Escalation Threatens to Ignite Trade War

Trump’s unilateral move stems from an April proposal to reform U.S. foreign trade strategy. Since then, 12 official letters have been dispatched to major trade partners, including the EU, signaling a shift toward aggressive bilateralism. Key elements of the proposed sanctions include:

▪️ Tariffs ranging from 10% to 70% on EU exports, effective August 1, 2025,
▪️ Criteria based on trade imbalances, targeting countries with high export volumes to the U.S.,
▪️ Departure from WTO multilateral principles in favor of direct economic pressure.

“I hope we will have an agreement this weekend. Otherwise, Europe will probably have to show more strength in its response to restore balance,” said French Economy Minister Éric Lombard on Saturday.

Europe Braces for a Return to Protectionism

Facing an increasingly hostile trade environment, European leaders are debating whether to adopt more assertive protectionist policies. Lombard signaled that the EU should prepare to erect its own customs barriers, not only against the United States but also against China, which is often accused of unfair trade practices.

“It’s like a playground where everyone plays hopscotch with supervisors and rules. Then three bullies arrive and ignore all the rules,” Lombard said, pointedly referring to the U.S., China, and Russia.

This metaphor underscores Europe’s growing concern: a breakdown of multilateralism and the rise of a raw-power economic order, where strategic autonomy and hardline trade responses may be the only path to survival.

Crypto Markets Eye Opportunity Amid Geopolitical Shifts

As tensions mount, financial markets are beginning to price in geopolitical risk. Digital assets, especially Bitcoin (BTC), are gaining attention as a hedge against rising trade uncertainty and weakening trust in fiat currencies.

A full-scale tariff war could accelerate capital flows into decentralized assets, particularly if U.S.-EU monetary tensions fuel inflation or currency instability.

Institutional investors are keeping a close watch on this weekend’s negotiations, knowing that failure could trigger new volatility cycles and place crypto back at the center of global hedging strategies.

Trade Turbulence May Force Europe Toward Greater Sovereignty

If talks collapse, the resulting tariffs could cripple EU exporters and amplify imported inflation, especially in key sectors like machinery, automotive, and luxury goods.

In the medium term, this would likely strengthen Europe’s resolve to pursue industrial and monetary sovereignty—possibly accelerating moves toward:

• A more unified EU trade policy,

• Greater investment in European supply chains, and

• Broader exploration of digital currencies and decentralized finance to reduce reliance on U.S.-led systems.

A return to protectionism—if confirmed by Washington’s actions—could mark a turning point for global trade, ushering in a new era defined by sovereignty-first economic policy.

@ Newshounds News™
Source: CoinTribune

~~~~~~~~~

ECB President Christine Lagarde Warns Stablecoin Adoption Might Lead to ‘Privatization of Money’
Lagarde urges caution as stablecoins challenge central banks’ role in safeguarding monetary sovereignty

▪️ Christine Lagarde warns that stablecoins should not be treated as money, highlighting risks to financial sovereignty.
▪️ Privately issued stablecoins could undermine central banks’ ability to conduct monetary policy.
▪️ The ECB advocates for a public alternative through the forthcoming digital euro.

Speaking at a central bank forum in Portugal, European Central Bank (ECB) President Christine Lagarde issued a direct warning about the growing use of stablecoins. She argued that these digital assets, issued by private companies like Tether (USDT) and Circle (USDC), pose a significant challenge to public financial institutions and blur the line between money, payments, and infrastructure.

“I think that we are falling prey to some confusion between money, means of payment, and payment infrastructure… accelerated by the technology that is being used,” said Lagarde.

The Rise of Stablecoins: A Threat to Monetary Sovereignty?

Lagarde’s remarks reflect mounting concern within global central banks over stablecoins’ role as money substitutes. By mimicking the value of fiat currencies but existing outside of central bank control, stablecoins threaten to erode public trust in traditional monetary frameworks.

“My fear is that this blurring of the lines… is likely to lead to a privatization of money. I don’t think that this is the purpose for which we’ve been appointed… nor is it good for this public good that is money,” she emphasized.

Stablecoins, often used for digital commerce, cross-border payments, and DeFi transactions, operate independently of national monetary systems, which weakens central banks’ ability to implement effective monetary policy.

ECB’s Digital Euro: A Public Answer to Private Innovation

To counteract the growing influence of private digital currencies, the ECB is pushing forward with the digital euro—a central bank digital currency (CBDC) designed to retain public control over digital money.

Lagarde has long championed the digital euro as both a tool of sovereign economic policy and a technologically advanced public payment option. In June, she reaffirmed that the digital euro is nearly ready for launch, pending final regulatory clearance.

The digital euro aims to balance innovation with monetary stability, ensuring that digital transactions do not shift the power of money creation and policy away from democratic institutions.

A New Financial Paradigm: Who Should Control the Money Supply?

The ECB’s messaging marks a broader philosophical debate: Should money remain a public good managed by central banks, or shift toward private issuers in the name of innovation and convenience?

Stablecoins, which were originally introduced to simplify crypto trading, are increasingly used as real-world proxies for fiat currencies, raising profound regulatory and economic implications.

Lagarde’s warning comes amid growing international calls to regulate stablecoins, particularly as their adoption rises among retail and institutional users alike. The clash between centralized public finance and decentralized digital currencies is now a defining tension of modern monetary policy.

@ Newshounds News™
Source: Bitcoin.com

~~~~~~~~~

Musk Announces Formation of ‘America Party’
Tech mogul launches third-party bid, slams “uniparty” politics and GOP spending bill

▪️ Elon Musk announced the formation of the “America Party”, a new political faction aiming to disrupt the U.S. two-party system.
▪️ The move follows a poll on X (formerly Twitter) where users backed the idea of a third party by a 2-to-1 margin.
▪️ Musk, a vocal critic of both Democrats and Republicans, framed the party as a return to “freedom” and common sense, declaring the U.S. lives under a “one-party system.”

On Saturday, tech billionaire Elon Musk made headlines again—this time in the political arena. In a post on X, which he owns, Musk wrote:

“By a factor of 2 to 1, you want a new political party and you shall have it… Today, the America Party is formed to give you back your freedom.”

Shortly after, a live page for the America Party went public, gaining over 19,000 followers in hours. The page emphasizes a platform “built on common sense, not consultants.”

Tensions with Trump and the GOP Spark Third-Party Bid

The launch comes after Musk threatened to form a third party in response to the GOP's recent spending package. Musk criticized the legislation for stripping electric vehicle (EV) credits, a direct blow to Tesla, one of his core businesses.

“The way we’re going to crack the uniparty system,” Musk wrote, “is by using a variant of how Epaminondas shattered the myth of Spartan invincibility at Leuctra: Extremely concentrated force at a precise location on the battlefield.”

Musk, historically a Republican-leaning donor, is now shifting focus toward building a new base, appealing to voters disillusioned with both major parties.

Bannon Calls for Musk’s Deportation Over Third Party Move

The announcement sparked backlash from Trump’s former chief strategist Steve Bannon, who attacked Musk’s citizenship and motivations.

“Only a foreigner could do this... Elmo the Mook, formerly known as Elon Musk... He should be deported,” Bannon said on his War Room podcast.

Bannon accused Musk of undermining American politics and suggested potential legal actions to challenge his role in forming a party he sees as un-American.

Trump Responds: DOGE Probe and Subsidy Accusations

In response, President Trump hinted at launching a federal probe into Musk’s businesses through the Department of Government Efficiency (DOGE)—a department previously led by Musk.

 “Elon may get more subsidy than any human being in history… No more rocket launches, satellites, or electric car production,” Trump wrote, calling for DOGE to examine Musk’s government ties.

The president claimed Musk has profited from “BIG MONEY” in federal aid and subsidies, suggesting his companies are overly dependent on taxpayer funds.

What Comes Next?

With U.S. elections approaching, the America Party could draw support from independents and swing voters dissatisfied with traditional party politics. However, the move also opens Musk to intense political and legal scrutiny, particularly as tensions with Trump escalate.

Whether this initiative gains real traction or remains symbolic, it reflects a growing crack in America’s bipartisan system, now challenged by one of the most influential entrepreneurs in the world.
@ Newshounds News™
Source: The Hill

~~~~~~~~~

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“Tidbits From TNT” Sunday Morning 7-6-2025

TNT:

Tishwash:  Here's what's happening on Tuesday... The Baghdad-Erbil dialogue is reaching its final stages.

An informed source reported on Saturday that the talks between the central and regional governments have reached their final stages, while indicating that the two sides are close to drafting the final agreement.

The source said in a statement monitored by Al-Masry that "the supposed agreement stipulates the re-exportation of the region's oil, the latter's handing over its revenues to the federal government, and the commencement of the settlement of salaries."

He added, "If a final agreement is reached on the draft agreement, it will be ratified by the Council of Ministers in its session next Tuesday, after which salaries for Kurdistan Region employees will be disbursed."  link

Tishwash:  Alaa Al-Fahd: Iraq is entering a new phase, and electronic payments will strengthen the dinar.

Economic expert Alaa Al-Fahd affirmed on Saturday that the Central Bank's move to establish a national electronic payment company represents a fundamental pillar in promoting financial inclusion and sovereignty over financial transactions within Iraq. He noted that it is part of an integrated strategy to reform the banking system.

Al-Fahd told the Jarida Platform , "This step aims to expand the electronic payment base, enhance public confidence, and reduce reliance on cash through local systems that contribute to strengthening the Iraqi dinar."

He added, "The project is part of a package of reforms being implemented by Iraq in cooperation with international audit firms, enabling greater flexibility in banking transactions and increasing the volume of electronic trading." He noted that "the Central Bank's current approach reflects an accelerated vision to reduce implementation time and achieve real reforms in the banking structure."  link

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

Tishwash:  Al-Sudani's advisor: The value of the region's oil contracts and transportation costs delayed amending the three-year budget law.

The Prime Minister's Financial Advisor, Mazhar Mohammed Saleh, affirmed that "there is significant and ongoing cooperation between the legislative and executive authorities in monitoring and managing the country's financial affairs, with understanding, interaction, and optimization of great importance to ensuring the economic stability the country is experiencing."

Saleh said in a press statement, “Based on the Federal General Budget Law No. 13 of 2023, the three-year budget, the federal financial policy was formed on an approach called (fiscal space), which gave it the high ability to move dozens of approved and previously suspended strategic government projects to implementation.

This is what distinguished it with the high activity of the development wheel in implementing the service projects that the country is witnessing without stopping, and its results became tangible thanks to the success of the three-year budget, in addition to what was approved of major projects that were approved in the 2023 and 2024 budget schedules, which are among the projects that are currently continuing without stopping.”

He pointed out that “the financial compass reading, which required the submission of the 2025 budget tables for legal approval in accordance with Article 77/Second of the Budget Law, was truly delayed for two fundamental reasons. The first is the awaiting of the amendment to the Triennial General Budget Law, which concerns the values ​​of the region’s oil contracts and the costs of transporting its oil, which were not approved until last February. The other reason relates to the fluctuations that global energy markets were exposed to and the effects of global oil prices on the general budget, which also required a re-reading of some financial constants and variables, whether revenues, expenditures, financing the deficit and its sources, more than once due to international geopolitical and economic problems and the major issues that occurred in the global economy at an accelerating pace, which led to the generation of volatile shocks in close periods of the current fiscal year, which necessitated hedging against external shocks.”

He continued, "As far as the rights and entitlements acquired in the operational aspect of the general budget are concerned, which have not been disbursed and are contingent upon the submission of the financial schedules for the year 2025, these are rights protected by law and reserved for those entitled to them, and they are not cancelled by the statute of limitations. It is only a matter of time and will be disbursed once those schedules are approved or any adjustment that does not conflict with the law."

link

Mot:  Still is Amazing to Me the Things ""Folks"" Worry about!! - LOL!!! 

Mot:  Siiggghh -- I Just Found out Soooo many Things I Needs to Figure out!!!! 

The End of the Dollar Dominance Starts Now, the Dollar is Dying

The End of the Dollar Dominance Starts Now, the Dollar is Dying

Lena Petrova:   7-5-2025

August 1971 marked a seismic shift in global finance. President Richard Nixon’s unilateral decision to end the US dollar’s convertibility to gold effectively dismantled the Bretton Woods system, ushering in a turbulent decade characterized by soaring inflation, stagnating growth, and a weakening dollar.

Over half a century later, echoes of that period ripple into 2025, as the US dollar experiences its worst six-month performance since 1973, with a significant decline in the dollar index signaling a widespread divestment by global investors.

The dollar’s undisputed reign began in 1944 with the Bretton Woods agreement, a cornerstone of the post-World War II economic order.

 Under this system, the dollar was pegged to gold at a fixed rate, and other major currencies were, in turn, pegged to the dollar. This architecture provided much-needed stability, facilitating international trade and investment in a recovering world.

However, the very success of Bretton Woods sowed the seeds of its undoing. As economies like Japan and those in Europe burgeoned, their demand for dollars grew exponentially to stabilize their own currencies against extreme exchange rate volatility – the unpredictable and rapid fluctuations that complicate global commerce.

The US, in its role as the world’s primary liquidity provider, responded by running persistent fiscal deficits and accumulating debt. Yet, its gold reserves struggled to keep pace, gradually eroding international confidence in the dollar’s backing. By the late 1960s, domestic spending on the Vietnam War and ambitious social programs fueled inflation, prompting nations like France to exchange their dollar reserves for gold, a clear vote of no-confidence in the dollar’s true value.

Nixon’s dramatic suspension of gold convertibility ushered in a decade of economic difficulty marked by “stagflation” – the unwelcome combination of stagnation and inflation – and rising interest rates. The parallels to the present are stark.

Fast forward to 2025, and the US dollar faces renewed pressure, exacerbated by volatile economic policies. The erratic trade wars and unpredictable strategies of the Trump Administration have shaken confidence in US financial leadership and strained global alliances.

Adding to the alarm, the proposed “Mara Lago Accord,” a plan to issue century-long zero-interest bonds, has sent shivers through foreign governments, intensifying fears of a potential US default as the national debt soars beyond 120% of GDP.

As the US grapples with these severe fiscal challenges, alternative currencies are gaining significant traction. China’s renminbi, despite not being fully convertible, is increasingly favored in bilateral trade, particularly across Asia, Latin America, and Africa.

The Euro continues to offer a comparatively stable alternative for global transactions, while cryptocurrencies are slowly but surely integrating into legitimate financial operations, signaling a broader diversification trend.

While the dollar’s entrenched dominance won’t vanish overnight, a significant shift is underway. Diversification by central banks away from US Treasury securities could trigger a domino effect: higher interest rates, more expensive debt servicing, and a vicious cycle that further worsens America’s fiscal health.

This precarious situation brings to mind the prophetic mid-20th-century warning from Yale economist Robert Triffin. He posited that the US would inevitably have to run persistent deficits to supply the global economy with liquidity, but these very deficits would, over time, undermine confidence in the dollar itself. Triffin’s dilemma was tragically realized in 1971, and it appears to be repeating itself in 2025.

However, unlike the past, the dollar now faces formidable competition from rising alternatives. Should the US continue its path of unpredictable and potentially destabilizing policies, the decline in dollar confidence could accelerate, potentially leading to a prolonged and painful adjustment period for the global financial system.

While the dollar remains a powerful force today, shifting global dynamics suggest its long-unchallenged supremacy may soon be a thing of the past.

https://youtu.be/R6EYv_Q4d3w

Iraq Economic News and Points To Ponder Saturday Afternoon 7-5-25

The Macro-Policy Gap Between The Banking And Economic Sectors

Dr. Haitham Hamid Mutlaq Al-Mansour  Economy News – Baghdad  There is no doubt that the overall policy between the banking and economic sectors in Iraq suffers from a lack of unified efforts and a lack of achievement of objectives. The two sectors pursue separate, complex paths, deepening a gap between them that reflects fundamental differences in vision, priorities, and mechanisms.

 It becomes clear to the observer that the relationship between the two sectors is not merely a technical issue, but rather is fundamentally a conflict reflecting a conflict of interests and competing priorities between institutions.

Therefore, this political gap is one of the deepest obstacles to achieving genuine, comprehensive reform.

While the banking sector plays a key role as a financial intermediary for economic activities such as agriculture, industry, trade, services, transportation, and other vital sectors, it is not only a source of economic value generated from goods and services, but rather a tool for attracting savers and investors.

From this, it is understood that banking reform policies include improving the efficiency of credit allocation, reducing non-performing loans, or increasing the rate of project lending, for example, to ensure the safe and efficient flow of funding to productive sectors such as industry or technology. The banking sector's mission ends where the economic sector's activity of investment and development begins.

Therefore, the weak relationship between banking and economic policies in Iraq can be likened to the country's "Achilles' heel." This fragile connection is a fatal weakness that threatens economic growth and stability, despite the country's vast resources.

The economy appears strong, with massive oil reserves amounting to 145 billion barrels, but the banking and economic systems are unable to transform this wealth into sustainable development.

By examining models of policy failure in many countries, we find that the aforementioned gap is evident in the distorted growth of banking activity, with many loans concentrated in unproductive sectors such as real estate, consumption, and the public sector, widening the gap between financing and real economic growth.

The banking system may be advanced, adopting financial technology or Basel standards, but the economy suffers from weak non-oil production and structural fragility, represented by the dominance of the informal sector and the growth of an unattractive business environment. The result is high financial liquidity without balanced economic growth.

In addition to the conflict between monetary and fiscal policies, we find that central banks aim for financial stability by targeting inflation and exchange rate stability, while governments focus on economic growth, such as increasing spending, employment, and subsidizing basic commodities.

This conflict leads to high bank liquidity amid an economic slowdown (as in Egypt, for example, during some periods). Bank credit expands in the absence of real investment projects, as in the debt crisis in Lebanon.

The economic policy gap re-emerges, with the separation between banking supervision and economic policy. Central banks monitor the health of the banking sector but do not control the direction of credit to productive sectors. This is especially true in emerging economies, where governments may intervene to direct loans and financing to small businesses.

This hinders economic growth, as they lack integrated information systems that link banking performance to economic performance. Banks may grant large loans for real estate, but there is no analysis of the impact of this on economic distortions such as real estate bubbles at the expense of the industrial sector.

Banking services are clearly positioned against traditional sectors such as agriculture, while industry still relies on traditional systems. This creates a fast financial economy versus a slow real economy.

On the other hand, there are numerous successful experiences in reconciling the banking and productive economic systems, too numerous to mention.

We can draw inspiration from them, but only Singapore, which transformed unproductive financing into productive financing by prohibiting banks from lending more than 40% of their portfolio to the real estate sector in 1970.

Then, 60% of credit was directed to manufacturing and technology through the Singapore Economic Development Board (EDB), a government agency that aims to attract investment and promote economic growth in Singapore.

It offers incentives for global companies to establish their headquarters in the country, with a focus on the technology and financial sectors. The result, after a long-term plan spanning three decades, is that Singapore has become one of the most competitive economies in the world.

Returning to the situation in Iraq, it suffers from structural imbalances and a reliance on oil revenues, which constitute approximately 95% of the general budget's financing.

This leaves the economy vulnerable to inflation and price fluctuations. This has led to the decline in growth in productive sectors, the emergence of a banking sector that directs its financing activity toward unproductive sectors, such as luxury real estate projects, without significant market demand.

 It also finances the import of luxury goods instead of developing and strengthening local industry. Banks rely on government deposits from oil revenues rather than actual savings, and there is a lack of guiding policies to stimulate financing for private productive and development sectors.

As a result, Iraq became a net importer in the foreign trade sector, which deprived it of opportunities to develop the specialization and competitiveness of its financial market, which weakened the banking sector’s ability to use financial and monetary instruments, especially interest rates, bonds and securities, to achieve overall equilibrium, and created a total imbalance far from the equilibrium interest rate, which limited the interest rate’s ability to stimulate capital and curb inflation, thus increasing financial fragility and deepening dependence on rents.

Therefore, it was possible to identify important axes to narrow the gap between banking and economic reforms through the following:

Diversifying the economy through development financing: Boosting real non-oil GDP through an expansionary economic policy that stimulates agricultural and industrial investments will gradually create a traditional balance between the real and monetary economies through monetary instruments such as interest rates and bonds, in light of a trade policy aimed at reducing imports.

Establishing an Iraqi bank for smart development finance: to finance productive projects in accordance with the investment map that supports the diversification of the Iraqi economy.

Building a sovereign fund to enhance financial and economic sustainability: by converting a portion of oil revenues into investments in productive sectors such as alternative energy and technology.

Reducing the dominance of the informal banking system over a large portion of financial transactions, through a scale of incentives and restrictions to regulate the work of the informal banking system, to enhance the capacity of fiscal and monetary policies and promote coordination between them.

Transparency in large loans by requiring banks to disclose data on large borrowers and grant loans based on creditworthiness.

Transparency of the general budget by publishing all major contracts, grants, and loans on an electronic platform.

Strengthening financial infrastructure, undermining technological backwardness, and promoting financial inclusion by modernizing payment systems, expanding bank branches, and developing the emerging base of fintech companies through attractive incentive policies.

Develop a strategy to redirect credit towards production to achieve economic diversification through coordination between monetary, fiscal, trade, industrial, agricultural, and other macro policies.

Establishing a sovereign technology fund with 10% of oil revenues invested.

Therefore, it is time to unify efforts and coordinate objectives to take steps to narrow the overall policy gap between the banking and economic sectors. Historical experience tells us that countries that waste their crises disappear, while those that invest in them grow and prosper. 311 views   https://economy-news.net/content.php?id=57022

An Ounce Is Down By 25,000 Dinars.. Gold Records A Decline In Iraq

Stock Exchange  Gold prices in Iraq witnessed a slight decline on Saturday, with an ounce reaching 4,365,594 dinars, compared to Thursday's price of 4,390,135 dinars.

+964 images from the (Network) platform:  86 views   https://economy-news.net/content.php?id=57002

A Slight Decline In Iraqi Oil Prices In Global Markets.

Economy | 05/07/2025   Mawazine News – Baghdad  Iraqi oil prices recorded a slight decrease during daily trading on the global market on Saturday.

According to data reviewed by Mawazine News, Basra Medium crude oil recorded $69.11 per barrel, while heavy crude oil recorded $66.11 per barrel, with a change of -0.11 for both.

The data also showed global oil prices, with British Brent crude recording $68.30 per barrel, while US West Texas Intermediate crude oil recorded $66.50 per barrel, with a change of -0.50 for both. https://www.mawazin.net/Details.aspx?jimare=263476

New Rise In Dollar Prices

Economy |05/07/2025   Mawazine News - Baghdad -  The US dollar exchange rate witnessed a slight increase on Saturday morning in Baghdad markets.

The dollar price rose on the Al-Kifah and Al-Harithiya stock exchanges to 141,200 Iraqi dinars for every $100, while last Thursday it recorded 141,150 dinars for every $100.

Selling prices rose in exchange shops in local markets in Baghdad, where the selling price reached 142,250 Iraqi dinars for every $100, and the buying price reached 140,250 dinars for every $100. https://www.mawazin.net/Details.aspx?jimare=263481

Al-Maliki: Iraq Has Achieved Self-Sufficiency In Wheat And Exports 11 Agricultural Products Abroad.
 
 Today 08:30  Information/Baghdad…  Minister of Agriculture Abbas Jabr al-Maliki revealed that  Iraq has made significant progress in the agricultural sector, noting that  the country has   achieved self-sufficiency in wheat production,which has  contributed to an  increase in the number of mills and a   saving in hard currency. 

In a televised interview followed by Al-Maalouma Agency, Al-Maliki said,   "There are 13 basic agricultural products  available locally and  banned from import in support of the national product," indicating that  "Iraq   currently exports 11 agricultural products abroad, and its   exports reached two million tons during the past year." 

He added,  "The wheat crop is increasing every year, while only the barley crop has been reduced as part of the agricultural plan, while  palm cultivation continues to increase, currently exceeding 23 million palm trees."  He pointed out that  "local production has become increasingly desirable to Iraqi citizens, and that the  Ministry of Trade was suffering from a problem with wheat storage capacity.

However,  the abundant production has allowed Iraq to
     donate quantities of wheat to Lebanon and Gaza in response to the appeals, and to
     ensure the availability of large quantities locally." 

Al-Maliki concluded by pointing out that  “there are major investment projects in the field of wheat and potato production, which will enhance the country’s food security.”  https://almaalomah.me/news/103409/economy/المالكي:-العراق-حقق-اكتفاء-ذاتيا-من-الحنطة-ويصدر-11-مادة-زرا  

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

Seeds of Wisdom RV and Economic Updates Saturday Afternoon 7-5-25

Good Afternoon Dinar Recaps,

BRICS to Launch Guarantee Fund to Boost Investment and Lower Finance Costs
New BRICS Multilateral Guarantee Fund backed by NDB aims to challenge Western financial dominance

▪️ BRICS to announce a new guarantee fund backed by the New Development Bank (NDB) to reduce investment risk and financing costs.
▪️ The BRICS Multilateral Guarantee (BMG) Fund is modeled after the World Bank’s MIGA and will be a central theme at the 17th summit in Rio.
▪️ The initiative signals BRICS' push toward a multipolar financial order—but attracting institutional support will be key to success.

The BRICS alliance—comprising Brazil, Russia, India, China, and South Africa—is preparing to unveil a new financial tool: the BRICS Multilateral Guarantee (BMG) Fund, a mechanism designed to stimulate investment and reduce capital costs among its members.

According to Reuters, the fund will be officially announced during the upcoming 17th BRICS Summit in Rio de Janeiro, hosted by Brazil. The New Development Bank (NDB) will administer the BMG Fund, which is modeled on the World Bank’s Multilateral Investment Guarantee Agency (MIGA).

A Strategic Move Toward Financial Sovereignty

The guarantee fund represents a bold step by BRICS to counterbalance the financial influence of the West, particularly amid concerns over unpredictable U.S. economic policy shifts.

By offering in-house guarantees on investments made within the bloc, the BMG Fund aims to reduce reliance on Western-led financial institutions and cut the cost of borrowing for major development projects.

“This is a politically significant guarantee instrument,” said one source close to the matter. “It sends a message that BRICS is alive, working on solutions, strengthening the NDB, and responding to today’s global needs.”

Technical Approval Complete, Formal Launch Imminent

Insiders confirmed that the BMG Fund has already received technical approval from all BRICS member states. Its formal endorsement by finance ministers is expected to take place during the summit, which would make the fund operational.

The announcement could be a defining moment for the BRICS bloc as it positions itself as a global counterweight to institutions such as the World Bank and International Monetary Fund (IMF).

Challenges Ahead: Private Capital Participation Needed

While the BMG Fund is an ambitious initiative, its long-term viability depends on attracting institutional investors and major commercial banks. These players will be essential in helping the NDB manage risk and mobilize significant capital.

The fund’s success will hinge on whether it can convince private sector financiers that BRICS nations present secure and profitable investment opportunities.

This will require clear risk-sharing frameworks, attractive terms, and strong governance standards.

Toward a Multipolar Financial World

The launch of the BMG Fund reflects BRICS’ broader goal of reshaping the global financial order. As the bloc explores alternatives to dollar-based systems, it continues to build new financial architecture aimed at reducing dependency on Western financial institutions.

From the NDB’s expanding role to ongoing de-dollarization efforts, BRICS is methodically crafting a multipolar financial ecosystem.

The BMG Fund could become a cornerstone of this vision—if it gains sufficient backing from public and private sectors alike.

@ Newshounds News™
Source: Watcher.Guru

~~~~~~~~~

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Iraq Economic News and Points To Ponder Late Friday Evening 7-4-25

Al-Sudani's Advisor Explains The Reasons For The Delay In The 2025 Budget Schedules.

Money and Business  Economy News – Baghdad  The Prime Minister's financial advisor, Mazhar Mohammed Salih, explained on Friday the reasons for the delay in submitting the budget schedules, while stressing that the government has succeeded in managing the country's financial and economic policy.

Saleh told the official agency, followed by "Al-Eqtisad News", that "reading the financial compass, which required submitting the 2025 budget tables for legal approval in accordance with Article 77/Second of the Budget Law, was truly delayed for two fundamental reasons.

The first is waiting for the amendment to the three-year general budget law related to the values ​​of the region's oil contracts and the costs of transporting its oil, which were not approved until last February.

The other reason relates to the fluctuations that global energy markets were exposed to and the effects of global oil prices on the general budget, which also required rereading some financial constants and variables, whether revenues, expenditures, financing the deficit and its sources, more than once due to international geopolitical and economic problems and the major issues that occurred in the global economy at an accelerating pace, which led to the generation of volatile shocks in close periods of the current fiscal year, which necessitated hedging against external shocks."

He added that "all these factors led to the delay in submitting budget schedules to review some of its inputs and outputs," noting that "there is significant and ongoing cooperation between the legislative and executive authorities in monitoring and managing the country's financial affairs, with understanding, interaction, and optimization of great importance to ensuring the economic stability the country is experiencing."

Regarding the impact of delayed budget schedules on projects included in the investment section, Saleh pointed out that, “Based on the Federal General Budget Law No. 13 of 2023, the three-year budget, the federal financial policy was formed based on an approach called ‘fiscal space’, which gave it the high capacity to move dozens of approved and previously suspended strategic government projects forward into implementation.

This is what distinguished it with a highly active development wheel in implementing service projects that the country is witnessing without interruption, and its results have become tangible thanks to the success of the three-year budget, in addition to the major projects approved in the 2023 and 2024 budget schedules, which are currently ongoing without interruption.

” He stressed that “the state’s investment approach is proceeding in line with the sustainability of economic development and in accordance with the high positive results currently achieved in growth rates and the great economic stability that the country is witnessing, whether in terms of declining unemployment rates, increasing economic growth, and price stability, in an active and compatible trilogy achieved as a result of the success of the country’s financial and economic policy without interruption in the wheels of public spending, including the current year 2025.”

He continued, "As far as the rights and entitlements acquired in the operational aspect of the general budget are concerned, but have not been disbursed and are contingent upon the submission of the 2025 financial schedules, these are legally protected rights reserved for their beneficiaries and are not subject to statute of limitations.

They are merely a matter of timing and will be disbursed upon the approval of these schedules or any adjustment that does not conflict with the law." 300 views  https://economy-news.net/content.php?id=56975

Central Bank: The National Electronic Payment Card Project Is A Local Option And Will Be Exclusively In Dinars

Friday, July 4, 2025| Economic Number of reads: 126   Baghdad / NINA / The Central Bank of Iraq confirmed, today, Friday: "The National Electronic Payment Card project is a local option and exclusively in dinars."

A statement by the bank said: "The National Electronic Payment Card project is an additional local option used within Iraq exclusively and in Iraqi dinars and does not cancel or restrict existing international cards such as Visa and Mastercard, and there are no plans to cancel these cards or ban dealing in dollars outside Iraq." / End   https://ninanews.com/Website/News/Details?key=1238995

The Yellow Metal Continues To Rise Due To Concerns About Financial Stability.

economy | 04/07/2025  Mawazine News - Follow-up:  Gold prices rose in trading on Friday, amid expectations of continued gains in the coming days, after the US Congress passed a tax and spending cut bill supported by President Donald Trump, which raised concerns about financial stability.

Spot gold prices rose 0.1% to $3,329.67 per ounce by 02:21 a.m. GMT, while the precious metal gained 1.7% this week.

Despite these gains, US gold futures fell 0.1% to $3,339.30 per ounce, according to Reuters.

Analysts said that Trump's adherence to a July 9 deadline for reimposing tariffs could weaken the dollar, supporting gold prices further.

On April 2, Trump announced the imposition of reciprocal tariffs ranging from 10% to 50%, before temporarily reducing them to 10% until July 9 to allow time for negotiations.
Gold is a prominent safe-haven asset during times of geopolitical and economic tensions and typically performs strongly in the face of low interest rates.

Among other precious metals, spot silver fell 0.5% to $36.66 per ounce, while platinum rose 0.7% to $1,376.67, and palladium fell 0.6% to $1,130.60. https://www.mawazin.net/Details.aspx?jimare=263431

Stability Of Oil Prices In Global Markets

economy | 11:43 - 04/07/2025   Mawazine News - Follow-up  Oil prices were little changed on Friday, as a stable US labor market bolstered the Federal Reserve's stance on keeping interest rates unchanged, while investors awaited clarity on President Donald Trump's plans for tariffs on various countries.

Brent crude futures rose one cent, or 0.01%, to $68.81 a barrel, while US West Texas Intermediate crude rose three cents, or 0.04%, to $67.03. Trading was thin due to the US Independence Day holiday. https://www.mawazin.net/Details.aspx?jimare=263439

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

Seeds of Wisdom RV and Economic Updates Saturday Morning 7-5-25

Good Morning Dinar Recaps,

The World Quietly Moves on From the US Dollar
Global powers begin de-dollarization amid growing distrust in U.S. financial policy

The U.S. dollar’s dominance—long upheld by geopolitical strength and economic influence—is now facing its sharpest challenge yet. But the erosion is not being caused by market collapse or foreign sabotage. Instead, it's being driven by what many call the overuse and weaponization of the currency by Washington itself.

From Russia to Iran and Belarus, the White House’s sanctions strategy has left a trail of crippled economies and frozen assets. The sweeping penalties have not only disrupted trade flows and revenue generation but also undermined the credibility of the dollar as a neutral global tender.

“The weaponization of the U.S. dollar has gone too far,” emerging economies have repeatedly warned.

Unlike the British pound—once the global reserve before the 1940s—the U.S. dollar has increasingly been used as a policy lever. While Britain wielded military might, it rarely applied financial tools to isolate nations. The dollar’s use as a strategic bludgeon has now led many central banks to quietly start moving away from it.

World Central Banks Begin Dollar Diversification

Despite remaining the most dominant currency on Earth—with 86% of international transactions settled in USD—the greenback is no longer viewed as universally reliable. Instead, the global financial community is beginning to reevaluate its role and risk exposure.

With the U.S. national debt surpassing $36 trillion, emerging markets are especially wary. Economic leaders are reacting by diversifying their foreign reserves, turning to gold, the Chinese yuan, and other regional currencies.

There’s also growing concern about the IMF and World Bank, which operate under a system deeply intertwined with U.S. financial control. These institutions offer little structural space for competing currencies, further solidifying the dollar’s dominance—but at the cost of fairness and inclusivity.

De-Dollarization Accelerates

Trust is the cornerstone of any financial system, and today, that trust in the U.S. dollar is fraying fast. The consequences of economic coercion are becoming clearer, and global leaders are moving not in protest—but in quiet determination—to reduce dependency.

“To rebuild trust, the U.S. must stop using the dollar as a weapon,” the article notes. “And it must foster global partnerships, not economic pressure.”

If the trend continues, the greenback may enter an accelerated path of decline, not through collapse, but through irrelevance—displaced by a multipolar reserve structure already taking shape in boardrooms around the world.

The world isn’t sounding an alarm.
It’s walking away—quietly.

@ Newshounds News™
Source: Watcher.Guru 

~~~~~~~~~

Will Tether’s USDT Get Banned in the US When the GENIUS Act Becomes Law?
New stablecoin rules threaten Tether’s US presence amid rising regulatory scrutiny

▪️ The GENIUS Act gives stablecoin issuers 18 to 36 months to comply with new transparency rules—or face a market ban.
▪️ Tether must choose between compliance, withdrawal, or launching a separate U.S.-compliant stablecoin.
▪️ Circle’s USDC could gain ground if Tether exits the American market.

Once the GENIUS Act is signed into law, stablecoin issuers will face a ticking clock: they’ll have 18 to 36 months to fully comply with sweeping new regulations—or be banned from operating in the United States.

At the heart of this regulatory overhaul is Tether, the issuer of USDT, the world’s largest stablecoin. Known for its limited transparency and lack of audited reserves, Tether now stands at a crossroads.

A New Regulatory Era for Stablecoins

The GENIUS Act aims to integrate stablecoins into traditional finance, creating a framework of regulatory safeguards for what are often the least volatile digital assets. While the bill is a milestone victory for the crypto industry, not all players are likely to survive its scrutiny.

USDT—which controls more than 60% of the global stablecoin market—could become a casualty. The bill demands regular audits, reserve transparency, AML/KYC enforcement, and technological capabilities to freeze or seize assets under lawful authority.

The Senate version provides a 3-year timeline. The House version cuts it to just 18 months.

Tether’s Troubled History with Transparency

Even before the GENIUS Act, Tether faced long-standing criticism for its lack of independent audits and opaque reserve reporting.

In 2021, the company settled with the New York Attorney General, paying $18.5 million and agreeing to exit the New York market after being accused of misleading claims about its fiat backing. The case revealed that $850 million had gone missing, and Bitfinex had used Tether reserves to cover the loss—meaning USDT was not fully backed for a period.

Since then, Tether has begun issuing quarterly attestations—but these still fall short of what the GENIUS Act will require.

Sanctions, Seizures & Scrutiny

Tether has also been under fire for enabling illicit financial activity. Accusations have included stablecoin usage by sanctioned entities in Russia and North Korea.

In response, Tether has increased cooperation with U.S. law enforcement. It froze $23 million in assets at the request of the U.S. Secret Service and has collaborated with the DOJ and FBI.

However, the GENIUS Act now makes such measures mandatory, not voluntary—requiring all stablecoin issuers to freeze assets, implement AML/KYC protocols, and comply with U.S. law enforcement across the board.

Can USDT Survive Without the U.S.?

Tether's dominance is undeniable, with a circulating supply of nearly 158 billion USDT—more than double that of second-place Circle’s USDC (62 billion).

Yet Tether’s core business isn’t U.S.-centric. Its largest trading volumes come from Asia, Latin America, and emerging markets—primarily through global platforms like Binance.

USDT trading volume exceeded $62 billion in a single day—mostly outside the U.S.

This raises the question: Would a U.S. withdrawal even hurt Tether? Perhaps not immediately—but it could send damaging signals to regulators, institutional investors, and traditional finance.

A Withdrawal Could Hurt More Than Help

Exiting the U.S. would sever access to a vital hub of financial innovation and liquidity. It would also invite loss of confidence, reinforcing the perception that Tether is unwilling—or unable—to meet robust standards.

Meanwhile, Circle’s USDC, which is fully compliant and actively adjusting to U.S. and EU regulations, would stand to gain significant market share.

However, even Circle’s advantage may not be enough to dethrone Tether without regulatory support or additional shifts in market dynamics.

Room for Compromise Still Exists

The GENIUS Act still needs to be reconciled with the House’s STABLE Act, offering room for negotiation on timelines and foreign issuer provisions.

A source close to the legislative process suggested both Congress and Tether may seek middle ground, noting that Tether’s massive U.S. Treasury holdings help support the dollar.

“Tether’s demand for U.S. Treasuries is larger than Germany’s. Forcing a full exit could destabilize demand for U.S. debt,” the source said.

A US-Based Tether Stablecoin in the Works?

Tether CEO Paolo Ardoino confirmed that the company plans to launch a separate, US-compliant stablecoin later this year—distinct from USDT and tailored to American regulations.

While this could offer a legal workaround, it also introduces operational headaches, regulatory duplication, and unnecessary complexity.

“They probably would prefer not to do that—it’s not ideal,” said the anonymous source.

What’s Next for Tether?

The GENIUS Act represents the most serious regulatory challenge Tether has ever faced. Whether it adapts, exits, or splits into separate compliant entities will define the next chapter of stablecoin evolution.

The world’s most widely used stablecoin must now choose: conform, divide, or retreat.

@ Newshounds News™
Source: BeInCrypto   

~~~~~~~~~

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“Tidbits From TNT” Saturday Morning 7-5-2025

TNT:

Tishwash:  Exclusively in Dinars: A Statement from the Central Bank of Iraq Regarding the "National Card" for Electronic Payment

#Electronic payment #Central Bank of Iraq #Dollar in Iraq #dollar #Iraqi dinar

Do not cancel Visa and MasterCard

On Friday, July 4, 2025, the Central Bank of Iraq issued a clarification regarding the National Electronic Payment Card Project, noting that the project does not cancel or restrict existing international cards.

In context: The suspension of Iraqi payment cards internationally comes into effect

The bank said in a statement received by Al-Jabal, "The National Electronic Payment Card Project is an additional local option used exclusively within Iraq and in Iraqi dinars. It does not cancel or restrict existing international cards such as Visa and Mastercard . There are also no plans to cancel these cards or prohibit transactions in dollars outside Iraq, as their holders can still use them inside and outside the country as is currently the case."

He added, "The project aims to reduce payment costs, enhance financial inclusion, diversify options for the public, and provide national cards to all institutions and segments within Iraq, while international cards remain the primary means of spending in dollars or other currencies outside Iraq and for purchases via global websites."  link

Tishwash:  The End of Dollar Dependence or the Beginning of Censorship? The National Payments Project Raises the Question of "Financial Sovereignty"

 In a pivotal step toward internal monetary independence, the Central Bank of Iraq (CBI) issued an official circular to all banks and electronic payment service providers announcing the commencement of the implementation of the National Card Scheme project.

 This is a local payment system managed through the national switchboard, completely separate from international platforms such as MasterCard and Visa. The decision comes at a particularly sensitive time, following the Popular Mobilization Forces (PMF) salary crisis and sanctions imposed on several banks, amid indications that Iraq is shifting to a relatively closed monetary environment in the face of external pressures.

A national system excludes international companies.
According to a circular obtained by Baghdad Today , the Central Bank has ordered the launch of a local system for settling bank card payments within Iraq, without going through any international entity. The circular clarified the need to adopt national codes such as (BIN) and (AID) to identify payment cards and link them to the national switchboard, which implicitly means eliminating any reliance on global payment networks such as Visa and MasterCard in local transactions. The circular emphasized that this project is "exclusively local" and that it will be completed by the end of this year, in preparation for its official adoption starting early next year.

Motives behind the decision: From sanctions to mobilization.
Banking expert and former Central Bank official Mahmoud Dagher told Baghdad Today that "the decision is partly linked to international sanctions and some pressure on Iraqi banks, so an alternative internal system is being considered."

He added, "Iraq faces no legal or technical obstacles to establishing this type of system, and many countries have preceded us in this," but he explained that "local systems remain limited and cannot be used outside the country's borders."

It's worth noting that the decision came after the Popular Mobilization Forces' salaries were frozen at some banks linked to international payment systems, opening a new door for the Central Bank to restructure its payments infrastructure away from international political influence.

Monetary shift or financial isolation?
The new approach coincides with escalating tensions between Baghdad and Washington, and with the mounting pressure on major Iraqi banks accused of financing entities sanctioned by the US. In this context, the Central Bank appears to have decided to proceed with a project that protects the domestic market from any "potential political freeze." However, this option, despite its importance in terms of sovereignty, raises questions:

Is it possible to actually dispense with global payment systems?
Is Iraq structurally prepared to operate a closed system capable of meeting domestic demand?
Most importantly, does this project pave the way for a gradual financial decoupling from the dollar?

The National Card Scheme project is not merely a technical decision regarding banking infrastructure; it is a step with political, economic, and security dimensions. If completed by the end of the year as planned, Iraq will have taken its first steps toward "internal monetary independence." However, this remains conditional on the state's ability to ensure efficiency, prevent collapse, and build confidence in a system that has yet to be tested in a fragile economic reality.  link

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

Tishwash:  US anger at Iraq if it uses Russia's payment system

Details from Ziad Al-Hashemi

 Economic researcher Ziad Al-Hashemi said on Friday that the Central Bank of Iraq’s launch of the “National Card Scheme” system is a step towards strengthening financial sovereignty and reducing reliance on international payment networks. However, the similarity of this system to the Russian “Mir” system, which is subject to sanctions, may expose Iraq to international accountability and raise American reservations.

He pointed out that the lack of full commitment to security and compliance standards, and the lack of clarification of the nature of technical links with external systems, represents a potential loophole that could be exploited for suspicious financial activities. He called for enhancing transparency and raising the level of caution to avoid any external escalation or suspicions related to the use of this system.

Al-Hashemi stated in a post on the X platform:

The Central Bank of Iraq has decided to assert its sovereignty over electronic financial transactions within the country by launching the "National Card Scheme." This is a positive step, but it is not without loopholes that raise more than one question mark.

According to the bank's statement, the new system will not be linked to the Visa and MasterCard systems, but will use the same technologies as the Europay-MasterCard-Visa systems to ensure compliance with international standards and enhance security and efficiency.

The new system is somewhat similar to the Russian MIR system, which enhances national monetary sovereignty and significantly reduces reliance on global payment networks such as Visa and Mastercard, but at the same time, it is linked to some external domestic systems.

However, the Central Bank did not clarify whether the new electronic card system will adhere to security and compliance regulations such as PCI-DSS, or whether these regulations will be imposed on card users.

The lack of clear and full compliance with these standards may create future loopholes that could be exploited for innovative fraudulent operations, as has happened in the past.

 The Central Bank of Iraq is also called upon to enhance the transparency of this system and raise the level of prudence to ensure there is no intention to bypass the global financial system. These measures are essential to enhancing the reliability, safety, and security of the new domestic system.

 In the absence of these measures, the new local system will be subject to international scrutiny and accountability, especially if suspicious local transactions or direct or indirect ties to sanctioned payment systems such as Russia's Mir and Iran's Shtab emerge.  link

Mot:  ole ""Maxine"" and Grilling!!!!

Mot:  .. Its Gunna Be Sooooo Much Fun Tomorrow!!!!  

Safe Assets, Fatal Flaw: The Basel III Oversight?

Safe Assets, Fatal Flaw: The Basel III Oversight?

Miles Harris:  7-4-2025

What if the very regulations meant to prevent another banking collapse... are quietly setting us up for the next one?

Basel III was supposed to make the financial system safer. It encouraged banks to hold more liquid, "risk-free" assets like U.S. Treasuries and mortgage-backed securities.

 But these so-called 'safe assets' are now sitting on massive unrealized losses. And under the right stress conditions, those losses could pose a major threat to the banking system.

 00:00 Intro

 01:03 Concentration Risk

01:45 The Build up

04:22 The Shock

05:41 The Trigger

07:00 The Spiral

09:33 Crisis Imminent?

https://www.youtube.com/watch?v=uuKTOyuc1dk

Seeds of Wisdom RV and Economic Updates Friday Afternoon 7-4-25

Good Afternoon Dinar Recaps,

Iran, Part of BRICS, Threatens Brazil’s Push for Global Reform

Rising geopolitical tensions challenge Brazil’s leadership of BRICS ahead of Rio summit, as Iran’s presence tests unity and derails reform agenda.

As Brazil prepares to host the 17th BRICS Summit in Rio de Janeiro on July 6–7, escalating geopolitical rifts—particularly involving Iran—are threatening to derail President Luiz Inácio Lula da Silva’s global reform agenda. The tensions are drawing new lines within the bloc just as Brazil takes the helm of the newly expanded BRICS alliance.

Brazil’s Reform Agenda Meets Iranian Resistance

Under Lula’s leadership, Brazil hoped to use its BRICS presidency to promote a platform centered on:

▪️ Democratic multilateralism
▪️ Inclusive global governance reform
▪️ Green energy transition
▪️ Expanded vaccine cooperation
▪️ Fair trade policies

However, Iran’s inclusion in BRICS has created immediate and unprecedented challenges to this vision. Following renewed Iran-Israel hostilities, tensions within the group have heightened significantly, shifting the spotlight from economic reform to geopolitical friction.

“Iran’s presence is fundamentally altering the group’s direction,” say policy analysts, pointing out that Brazil’s diplomatic agenda is now overshadowed by hardline sovereignty narratives and authoritarian alignment.

A Struggle for BRICS Unity Amid Autocratic Drift

The entrance of Iran—along with Russia, China, and other authoritarian-leaning members—has shifted BRICS further from the democratic ideals that Brazil hoped to promote.

▪️ Iran has confirmed it will send a delegation to Rio, prompting fears that summit discussions will lean toward anti-West sovereignty statements rather than constructive reform.

▪️ The growing autocratic tilt undermines Brazil’s inclusive agenda and raises doubts about BRICS’s capacity for collective action.

▪️ Global instability—spurred by Russia’s war in Ukraine and Middle East tensions—is being described as a “dangerous distraction” from the bloc’s stated priorities.

“Brazil’s challenge is managing reform in a club where several members are more focused on geopolitical posturing than economic collaboration,” said Dr. Christopher Sabatini, senior fellow for Latin America at Chatham House.

Strategic Realignment May Be Brazil’s Best Bet

Facing this friction, Brazil may be forced to forge smaller coalitions within BRICS—particularly with more aligned partners like India and Indonesia—to salvage aspects of its original reform plan.

▪️ Limited cooperation on climate change, infrastructure, and trade reform could still emerge through bilateral or trilateral deals.

▪️ Lula’s administration may have to lower expectations for sweeping multilateral consensus at the summit due to widening internal divisions.

▪️ Still, Brazil’s presidency could be considered a success if it sidesteps ideological gridlock and instead champions tangible, issue-specific outcomes.

While the BRICS summit in Rio was envisioned as a platform for emerging market leadership, it has become a test of whether the bloc can maintain cohesion in the face of mounting internal contradictions. Iran’s role in BRICS—once viewed as symbolic—is now central to the debate over the organization’s future identity and global credibility.

@ Newshounds News™
Source: Watcher.Guru

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The World Quietly Moves on From the US Dollar
Global sentiment shifts as currency weaponization fuels reserve diversification

Decades of U.S. dollar dominance are quietly unraveling—not through manipulation or market failures, but through currency weaponization. The White House’s overreach with economic sanctions has pushed even long-standing partners to reassess their reliance on the greenback.

From Russia to Iran, Belarus, and beyond, the U.S. has levied sanctions that have crippled national economies, isolating them from global trade. Despite repeated warnings from emerging economies, the U.S. continued to treat its currency as a tool of coercion. This has now sparked a widespread—but quiet—departure from the dollar.

Historically, the British pound, the global reserve currency before the 1940s, maintained its role without resorting to weaponization. In contrast, the U.S. dollar—though still dominant—is increasingly perceived as a liability, rather than an asset.

Central Banks Begin Diversifying Reserves

While the U.S. dollar remains central to global finance—involved in over 86% of transactions worldwide—confidence is eroding. Nations are no longer viewing the dollar as a financial solution but rather a growing problem, particularly in light of America’s $36 trillion national debt and its role in enforcing economic punishments.

In response, central banks are diversifying into gold and local currencies, hedging against the risks tied to U.S. fiscal policy and dollar-dependency. Officials are openly questioning the neutrality of global institutions like the IMF and World Bank, which operate firmly within the dollar-based framework.

Weaponization Accelerates De-Dollarization

The most alarming trend? The U.S. dollar is no longer viewed as neutral. The perception of its use as a geopolitical weapon has undermined the trust required to sustain its global supremacy.

Experts warn: unless the U.S. changes course, it could face a historic decline in dollar hegemony.

"To restore trust, the United States must stop using its currency as a weapon and instead support fair economic development globally," the article notes.

The de-dollarization movement is gaining traction—not as a loud rebellion, but as a strategic recalibration. The rest of the world is moving on. Quietly. Deliberately. And possibly, permanently.

@ Newshounds News™
Source: Watcher.Guru

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