Alak of the central bank. The governor has been under pressure for lots of things.
He was even summoned to Washington and he showed up into Washington, DC to have a powwow meeting, of course. And if you remember correctly, it was unannounced. Okay, so there was some issues at that time, but if you notice that that was probably back, um, months ago, and then you’ll see subsequent information. And interestingly enough, there’s some information that is out actually by our United States Congress.
Al Alak being in the United States and subsequent timeframes, you’re going to see, like, there’s a projection and a movement for results. And so that’s, to me, is support for everything that we’ve been doing, and in effect, is that, look, international compliance is important because if you’re money laundering, if you’re counterfeiting, if you’re doing terrorists, supporting terrorists, they got your number. The new systems are electronic systems, and they’re so much more accurate and efficient and they tell all.
The good thing is parliament finance committee identifies new reasons behind the dollar fluctuations. New article. It was out yesterday. Parliamentary finance committee al Khadimi blamed the US Federal Reserve, accusing the latter of causing a real problem that led to the rise in the dollar of the exchange rate.
Think about it for a minute. They’re talking about the value of the dollar, the exchange rate of the dollar.
The dollar is traded on the United States dollars traded on a huge market. It is 85% more than any other country in the world to this day. There’s no other country in the world that has a currency or a commodity that is traded so heavily and I with such liquidity than the United States dollar.
Al Alak has a control to change in exchange rate of the dinar. He has that control. And so that is where you guys should be focused on.
it says there is interference from the US Federal Reserve and the decisions of the Central bank of Iraq such that transfers in the chinese renminbi or the yuan were stopped, noting that transfers in dollars were also stopped. Well, of course they were. It’s like it’s the parliament finance committee.
Does any of them have any other country influence? They sure do, 100%. So he says our problem is blatant interference with the US Federal Reserve and affairs of the Central bank of Iraq, despite its compliance with many of its instructions.
the governor of the central bank, Alalak, submitted his request to relieve himself of the post to Prime Minister Muhammad Shia al Sadani amid a series of issues and problems in the financial banking sector in Iraq, which include the failure to control the dollar exchange rate on the black market.
Black market. What is it? It’s illegal. How is that going to adjust for the fact that Iraq, Iraq has had low inflation, right.
The stability of the official exchange rate since. Well, I forget exactly what day, but I should know that there’s so much information, you guys, I can’t remember everything. But the cool part is that the inflation rate, and since it was at 1450, you can go back and look it up. Okay, so it’s been at 1310, official exchange rate.
Buy, sell, 1310, 1320. They have components to that exchange rate of 1310. But realize that it’s a black market and so it’s an illegal market. So why in the world would any country ever do anything specifically because the black market says so?
It’s mafia. Look at the theft of the centuries. It exposed again. They’re, they’re collecting more and more money from the corrupt.
So then think back, think ahead and say, well, why in the world would the us treasury decide to take a floor or not take it, but are so make a deal or acquire a whole floor in the central bank of Iraq? Probably because the fact remains is the United States isn’t going anywhere. Because why?
Because we protect our interests. And you know that Iraq has acknowledged it specifically, I believe. And they also acknowledge the fact that the United States of America will have and has a right to protect her interests just as it is. It’s al Sudani as the commander in chief to protect our forces in the region or anybody else in the coalition forces.
one of the things that Alalak has been doing, he has been controlling the exchange rate. He says that Iraq needs effective policies to control the dollar exchange rate and prevent speculation that leads to sharp flood fluctuations. Well, the central bank has done that.
Right. It’s still at 1310 today, is it not? And what was it six months ago? 1310.
So just because the parallel market’s been fluctuating, illegal market has no bearing on it to me directly. Is it something that’s a perception? Yeah. Is it a good way for them to throw out some negative media?
Banking system reform. Improving the efficiency and transparency of the banking system to keep pace with international standards.
Combating corruption, promoting integrity, transparency in financial institutions to prevent corruption and restore investor confidence. Well, isn’t that what Alak’s been doing? Absolutely. He is.
It says, state of financial stability to date. The black market is an illegal one. Keep that in mind, everybody.
In my view, it would have a significant impact. Okay. Of the central bank.
Central banks have reputational risk.
Reputational risk is really important and banking is really big. And that’s why I brought up the bankruptcy, because, look, if Iraq would have ever gone to the full blown bankruptcy, we wouldn’t even be here right now.
the governor of the central bank chairs the meeting of the supervisory committee on the restructuring of the process of Rafidane bank.
we know that two state banks. We know about Ernst and Young. Ernst and Young is contracted for to do what? Restructure, reorganize banks.
They’re talking about his excellency again on the fifth. They’re talking to him in the sense that he’s the excellency of governor of the Central bank of Iraq, Ali Moshan Alalak. And attended by the members of the committee from the Ministry of Finance, by the members of the committee from the Ministry of Finance, the advisors to the prime minister, senior staff of the Central bank of Iraq. In addition to the presence of global consulting firm Ernst and Young.
The progress in the work and the plan adopted by the government in coordination with the central bank was reviewed. And what is it talking about? Reform the banking sector, improve its performance, its services and achieve financial stability.
These attendees basically decided that the administrative, the financial and technical structure of the rafidaine bank to move towards the best global practices. So international practices. Okay, so they’re going to do the Rafidane bank and the Rashid bank. They’re going to do that.
Governor Alak said on Wednesday, he says the financial situation in Iraq is going according to what he planned. So does that sound like a guy that just resigned? I don’t think so. And while he confirms in an interview that the financing foreign trade is carried out with highly high fluidity for large and medium companies.
What are high, large and medium companies? They’re the backbone of almost any big, good quality economy. All right, what are they talking about? He’s talking about a mechanism to regulate transfers to small traders.
Why small traders? Because those are the guys that aren’t doing legal behavior. So anyway, reveals an upcoming meeting in New York in the next, by the end of the month maybe.
And they want to discuss the file of punishing banks. Okay, they say the same time they pointed out that official exchange rate covers foreign trade that meets the needs of citizens. Stressed, on the other hand. So basically they just said, probably going to say they’re going to go tit for tat.
They have enough foreign reserves for their foreign exchange to cover foreign trade. It says there’s a government trend to increase the capital of the real estate bank and the housing fund. Well, do you remember the contract with Ernst and Young? They talked about that.
That was one of the final stages. One of the final stages of the reforms is to do the real estate bank and the housing fund.
They go on to say that in that interview with Alalak, there are external and local challenges. But in general, the financial situation in Iraq is still proceeding within what is planned in the general budget of the state. There is high coordination between the central bank with the prime minister, Ministry of finance and standing on the financial side of the continuity, stability and sustainability in that thing I talked to you about in April, each and every one of those members was called into or were considered in that meeting, those meetings.
The allocations for governance and ministries are rotated so that there is wide coverage of the needs of the financial aspect, and for the first time, the size of the balances in the ministries and governance in large enough to able them to perform their role. So again, the tripartite budget’s the first time ever a woman is going to have their name on that, is going to get credit for that first time ever budget, especially when it’s successful. Same with the Central bank of Iraq. It’s a woman that built or designed that bank.
It’s about to be showcased. They’ve told us that they’re going to showcase that bank sometime here soon, sometime maybe this year, or maybe even early next year. But the bottom line is it’s going to be important. And if you remember back in New York many years ago, it was on Women’s international day.
They showcased Iraq on New York Stock Exchange. Or was it the ISX? No, I mean Nasdaq. I think it was a Nasdaq.
So anyway, Central bank is undergoing a major transformation and taking place.
Central bank governor, there’s no intention to reconsider the dollar exchange rate.
so the dollar exchange rate, again, I’m going to reiterate it. Alalak is not going to change the dollar exchange rate. He can’t. It’s not his job.
So this whole article gives you extra information about what he means by that. And he’s not wrong. He’s not going to. But the dinar is a different story.
But he’s not talking about the dinar. He’s talking about the dollar. Is floating the currency a solution of the crisis to the dollar in Iraq? Representative explains and, well, we’ve been over this so many times.
But the fact remains is Soleil and al Nasseri, I think they both did on more than one occasion. Soleil, for sure, has literally described the pros and cons of a float a peg in different circumstances at length. Okay. But a managed float is probably more likely, and that’s where al Soleil has suggested.
So floating the currency, regardless of some of the numbers that they meant in here, basically what they’re talking is this, floating the currency will ultimately lead to instability in the value of the currency. So again, one more time, it’s not Soleil, but it is saying that they’re not going to float their dinar and it’s not going to be, as they say. So they set the stage. I’ve set the stage, and I hope everybody understands that what we’re trying to do is do what we do the best that we can to help you guys get through this study and to be uplifted and positive because just because it hasn’t happened yet doesn’t mean it’s been in the process for many years and still underway.
