There’s a new article out that talks about the Al Rafidane implementation of the comprehensive banking system in 40 branches.
The Rafidane bank announced Saturday that the implementation of the comprehensive banking system in 40 branches. And Iraq was chosen to chair the group of 77 in China at the United nations.
Interestingly enough, there’s like 134 different countries, but there’s the largest meeting ever for a group this large getting together, which is a total of about 77 countries. And Iraq was chosen to chair the group for the first time. So they take over the presidency of that for this particular year, I guess it says Iraq will provide all the elements for success for this presidency, which is the first for Iraq since the establishment of the group, as Iraq was one of the founding countries 60 years ago. So this is a big deal.
After 60 years they get a tap on the shoulder to have the presidency all at a time when they’re about ready to go hit the international stage. I think what better way to do it is to be involved with that many countries at once and possibly to celebrate their new sovereignty. It says at the end of the meeting, the resolution was unanimous.
So the resolution was unanimously adopted to support the Republic of Iraq to assume the presidency of the group of 77. And China as the member states, offered congratulations to Iraq and expressed their readiness to support it in its tasks during this important presidency. So they obviously have an interest in what Iraq’s about ready to do and that is to go international.
So it says here, after the success of the recent negotiations in Washington, an expert identifies indicators of a decline in the demand of the dollar. Financial economic researcher Ala Jaloub al Fahad confirmed today, which is Saturday, August 31, that the central bank succeeded in during the recent negotiations in Washington in diversifying the basket of commercial currencies, indicating that this will lead to a significant decrease in the demand for the dollar. It says that this meeting with discussions the central bank of Iraq during the past hours sounds like it’s today.
And the meeting with US Federal Reserve and US treasury which lasted for three days. It says 13 iraqi banks entered into direct foreign correspondence remittances correspondence remittances and diversified the currency basket.
Commercial currencies and with the Iraq dinar they’re not going to do that at 1310, as far as I can tell. It says explained that there will be commercial transaction actions in the UAE, Durham, the indian rupee, the Chinese yuan, and this gives the iraqi government flexibility in diversifying the basket of commercial currencies. So it almost sounds like they’ve had currency swaps already. They probably already moved money, so they have that in place so that when things change, everybody’s going to be ready to do business with Iraq.
There will be commercial transactions. It says the dollar is currently the master of commercial transactions because that’s true at the moment as it’s the only source of oil revenues sold in dollars.
And the reserves of the central bank of Iraq are in US dollars, which is true. And they have a lot of them. I think they have like 18 months worth, whereas most countries don’t have. Not even close to that.
And for this reason, it’s the basic currency for foreign trade. Well, the dollar for that reason, is the basic currency for foreign trade.
It says after diversifying the basket of foreign currencies for foreign trade, there will be a decrease in the issue of pressure on the dollar. And most of the demand for the dollar currently is not a local demand, but rather a demand from neighboring countries due to the sanctions on those countries. And this demand will decrease significantly after diversifying the basket of currencies in foreign trade transactions. Well, there’s not going to be such a demand in Iraq if they’re not using the dollar so much because they’re going to be using the dinar.
The participation of these 13 banks in the external transfer, indicating that these steps comes with efforts and support from economic growth. So they have reasoning for it. Economic growth and to what?
Expand the horizons of international cooperation with. but it is global markets. So expand the horizons of international cooperation with global markets and it basically is going to use those. The euro, the chinese yuan, indian rupee, the UAE, Durham, et cetera, and iraqi banks are basically looking to be running efficiently with foreign transfers.
The 13 banks in correspondence and with diversified currency basket within a diversified currency basket is my view. How it reads, Iraq is about to use their own currency, in my view, along with the aforementioned basket. So will they be doing that at 1310? All of a sudden, out of the blue, after 20 years, I don’t think so.
So that’s a pretty good indicator that we’re, as Pompey Peters says, we’re knocking them bandy. So I think that’s exactly where Iraq is right now. So here’s an article.
The entry of kurdish traders in the dollar selling platform contributed to reducing the exchange rate.
Jehan Nawar al Saidi at the university says today that August 31, it says there is an entry of traders from the Kurdistan region to the official dollar selling platform. And these traders benefited from obtaining the dollar at the official exchange rate instead of buying from parallel markets, black market, illegal market that are witnessing higher prices. It says this flow of dollars to the market contributed significantly to increasing supply which led to the reduction of their price.
So it goes on to say that if you will, about possible changes in the exchange rate prompted many to sell the dollar at low prices for fear of future declines which increased the pressure on the dollar price. So here’s the Kurds coming out ahead of Baghdad telling you about rumors and that how they’re selling their dollars cheap because they want to get back into the dinar effectively. I wouldn’t be surprised if that gets around where it gets around fast. I think there were some people on the Internet talking about the Egypt, talking about other places in the world that have been vocal about communications.
There’s even been some buzz that Iraq has taken some time. They’ve been bragging about their non oil resources. And all of a sudden they said that they shut it down for travel and potentially their borders. So one of the items that we talked about the other day with the Turkmenistan model is they needed to contain currency movement at a time when they change and adjust things.
Just like the counterfeiting. They want to really tighten that up because it could very, be very well be damaging to a currency reform process. So they’re really tightening up at this time. And basically, if some of these things are true, because some of these folks are literally from different countries, but they speak fluent Arabic and they speak the language in different dialects in Iraq.
But, bottom line is that they have people on the ground that they can communicate with and they’re very excited and they kind of triangulate with some of the other stories that people have that are out there that are talking about the communication. I would say that al Sudani’s meeting with the Tunisia in Egypt are really important because they have economic barriers and trade to deal with. And they’re making headwinds on using them too. The Pakistan person that I talked to, he says that there was about 100 to 150,000 people from his country that have fled, not fled or have left to go to Iraq.
For what? To get jobs, because the environment is hot and they’re, again, if you’re not in now, they may have closed you out for a short period of time because the necessary need to tighten up those borders so they don’t want money coming in and out, if that’s how I read it, if that’s correct. So anyway, keep that in mind. The dollar exchange rate in the parallel market will remain high than the official price due to the lack of solutions by the central bank to do remittances.
Central bank of Iraq is required to find quick solutions and procedures for these traders, especially small traders who have almost daily trade with Iran, Syria and some other countries banned from dealing in dollars. So they’re specifically targeting the smaller traders that are not on the platform and that they’re dealing outside of sanctions.
So I’m assuming they’re going to have some problems in the near future. So that’s just another one that’s out there today in support of Iraq doing what they said they’re going to do, and that is to, I think, delete the zeroes project and create an environment where al Saudi stated that the dinar is going to be stronger than the dollar. I think that’s going to hold true. This article here is central bank announces results of the New York meetings.
Well, those New York meetings happen to have been a few days ago. they said that Alalak was going to be speaking with the US Federal Reserve and Treasury on the 26th. Today is the 31st. And then they said the delegation was there from the 26th to the 29th.
It says a high level negotiating delegation headed by Governor Alaks held a series of intensive meetings in New York City, which included talks with the US Treasury Department, the US Federal Reserve bank, in addition to meetings with a group of companies like Visa, Mastercard, MoneyGram. Look, those three companies, right, thye are electronic payment systems, their international electronic payment systems, as well as banks like Citibank. We all heard about Citibank in the past, even goes back to many, many years. JPMorgan, of course, we’ve seen them doing business.
They cleared the digital dollar, for instance, back in 2013, what was it? 2018, I think it was. But anyway, they practiced with the Buna platform and the Buna platform has been even modified, that we know. So ultimately, yes, the JPMorgan and the Buna platform are probably still in the game.
Citibank still in the game. As well as international auditing companies, KPMG, Ernst and Young K two. Oliver Wyman. I talked about reputational risk.
These guys are the biggest in the world. They’re smart, they get into things. They don’t make mistakes.
Reputational risk is very important, just like I said with the banks. If you get tainted in the banking industry and you lose your good reputation, it could be, as we say, curtains, bad for business. All right, participants in the meeting praise the significant transformations of the central bank. Okay, so, it says, these do significant transformations achieved by the central bank represent an unprecedented achievement at the country level as the bank has made remarkable progress in the procedures for controlling foreign transfers, cash sales of the US dollar currency, which led to the improvement of regulations, policies and procedures in accordance with international and local standards.
International and local standards. They’re enhancing transparency and covering foreign trade and providing protection for the banking and financial sectors for the risks of money laundering, terrorist financing and financial crimes. You’ve heard all this before, so you can tell that these guys have studied it.
They believe what they’re seeing, that they believe what they were doing. They did not come in. If Iraq was not doing this, who is at the helm with the Central bank of Iraq? He got a lot of bad press recently.
People were trying to get rid of him. Well, he’s probably doing such a good job, they don’t like it. They didn’t like it and they wanted him out because why? Because the cash cow, which is a parallel market, makes them billions and they just aren’t going to have that anymore.
That time is over. And so obviously, this is where we’re going with this. It says a meeting between the officials of the Central bank of Iraq with its international partners by the end of this year on the major transformation and the termination of the electronic platform for external remittances and replacing them with direct banking relations between Iraq banks and the network of international correspondent banks. I’m sorry you guys, but they’ve already done this.
All of this will allow the Central bank of Iraq and Federal Reserve to exercise their supervisory roles from executive procedures.
In other words, they’re going to take themselves out of the equation. They’re not going to need to have to do any more work with these guys. Why? Because the correspondent banks are going to work directly through this platform with one another and Iraq’s banks.
So the banks normally don’t, the Reserve banks don’t normally do this type of work, but once they’re done, they’ll do what they normally do. They’re probably going to be out there in the background moving money like they normally do and move that money where needed when trading foreign investments and from the import export side of things as far as the money is concerned. It says the repercussions, it says as this transformation will have an important repercussions in the stability, fluidity and transparency of the country’s foreign trade financing operations, noting that it aims to achieve the required stability in exchange rates, which will in turn will enhance the efficiency of the financial system in Iraq.
Who was talking about that? JP Morgan was. And Iraq.
They were going to bring confidence, if you remember in the meeting in Davos.
Iraq was involved in that. We’ve been over it a couple of times. It says now that the meetings in New York City also dealt with the mechanisms, the mechanisms of expanding the network of international correspondent banks, like I just mentioned, and qualifying iraqi banks to meet the necessary requirements to open their accounts with international correspondent banks with the aim of enabling them to complete their financial, I think it’s their financial transactions, whether they’re through foreign transfers in the US dollar or other foreign currencies. So in other words, when they talked about the UAE, the Durham, the euro, the yuan, etc right.
So central bank contracts with international auditing firm in New York. And this is a real brief, it’s just going to reiterate a little bit of the stuff that I went over here again, it’s today the iraqi delegation headed by the governor of the Central bank of Iraq, who is Ali Moshan Alak, discussed during its visit to the United States the use of electronic payment cards, payment And ways to organize and stimulate their use in line with Iraq’s move towards electronic payments. Basically, what’s it going to be for to accommodate the significant increase in citizens, their use of these cards?
I think they’re probably going to be using the cards a heck of a lot more because it’s convenient. They don’t have to carry around valuable currency so much because they can use a card and which is probably going to be very safe and secure. So it says, the parties gathered and praised the important steps in strengthening the banking sector reforms, the most important of which is the contract with the Iraq central bank delegation that concluded with the company. Oliver Wymande, another same company, to conduct a comprehensive review of the conditions of iraqi banks, especially banks that were prohibited from dealing in the us dollar.
So there’s been numerous banks that are prohibited. Basically, like we’ve always said, if you play by the rules, sign up to the platform, provide the data that they need for international compliance, local standards, international standards, if you will, and then start doing business. If you don’t, you’re probably not going to be doing business. So it says the company will work on developing practical solutions to reintegrate these banks into the iraqi international banking sector in addition to improving the level of banking procedures in line with international standards.
They’re going to facilitate, through the process of establishing direct banking relations, improve the quality of services, of course. To what? To serve the iraqi economy.
People in Egypt and other places like Tunisia are talking about expectation of change. They’re talking about expectation of change in Iraq and people are seeing it. And then obviously what they’re telling you about internationalism and compliance, international standards, the 40 banks going electronic, you can see what we’re talking about is actually happening. It’s not a scam, it’s far from it.
And one of the things I have to laugh about, this guy that did this, whoever, guy, girl, whatever, did this piece on scam alert, doesn’t take into consideration of all the electronic platforms, doesn’t take into consideration all the other than oil revenues, the tourism, all of the different things. Okay, just doesn’t do it. And sadly, because it’s probably going to hurt some people. So anyway, I think the business news should be embarrassed about that, to be honest with you.
