Open market operations is something that’s on the table. So, basically when they do things with open market operations, you’re going to see that.
That’s talking about currencies, talking about liquidity, it’s talking about global trade. And when they talk about quantitative and qualitative issues is basically because they’re looking to maintain the monetary supply, maintains price stability, control, inflation, and all of these things that they are going to do will achieve integration in harmony with the rest of the other policies of the central bank as a whole of Iraq.
So, the objectives that they have for tomorrow on operational and intermediate and final components, they have both quantitative and qualitative tools in the central bank’s kit to control, the monetary liquidity through various measures that include bond price channels, interest rate channels, exchange rate channels. Bank credit channels. You see where that’s going.
But it says here the ministerial Council of Economy decides to hold its next session in the Kurdistan region.
That ministerial Council for Economy was brought into play by al Sudani back in late October or November, I believe, 2022. And it’s the highest people in the country that make up that body. Look, there’s the deputy prime minister, the foreign minister of foreign affairs, Fawud Hussein. There’s the ministerial council of the Economy.
When they have the presence of these people, everybody’s paying attention. The Ministry of Planning, Ministry of Finance, Industry, Trade, Agriculture, the governor of the Central bank of Iraq, the acting chairman of the National Investment Commission, and the prime minister’s advisor for economic and legal affairs. So every single one of those persons is possibly going to be in these meetings tomorrow in the Kurdistan region. And why are they there?
Well, Sammy said that they have some key files that they want to settle, they want to have some agreements. So if they’re going to have the meeting of the mines, and I read to you who’s all involved, you can see that Tafe Sami is one of those and is part of that ministry, it says here that the ministerial Council of Economy decided today, which is Friday, to hold their next session in Kurdistan region, headed by the deputy prime minister and the minister of foreign affairs, Foud Hussein. So it’s going to be headed by the deputy prime minister.
So maybe Sudani won’t be there, but ultimately, at least a representative from the prime minister’s office, his deputy will be there with the minister of foreign affairs. And who else? Obviously the ministerial Council of economics, which is all inclusive of all many of those names. My assumption would be Alalak would be there, or his counterpart or his deputy would be there for this.
So it’s actually probably a pretty big deal, and especially with Masura Barzani being there, I wouldn’t be surprised if you see a showing of al Sudani himself too. It says, the delegation of the ministerial council for the economy, accompanied by a large number of officials from the federal government, is scheduled to leave tomorrow, Saturday for Erbil to hold series of meetings with the prime minister of the Kurdistan Regional government, Barzani, members of the government and some executive officials in the region. And they go on to say they’ll discuss common issues, government work to resolve outstanding issues with the aim of removing obstacles in the implementation of some important files, as we already mentioned, in a way that achieves the interests of the citizens and have a direct effect by it. So just to back up just a little bit, you guys, the banking studies organizes a workshop. The center of banking Studies at the Central bank of Iraq and the presence of the director general of the Central bank of Iraq in Erbil and the representatives of the licensed banks in Kurdistan region of Iraq organized a workshop entitled the impact of the transfer of monetary policy in the sector through open market operations channel.
The workshop dealt with the monetary policy, with all monetary measures through which the central bank manages the expansion and contraction in the volume of the monetary supply in order to maintain price stability and control of inflation in order to achieve that integration in harmony with the rest of their policies. As I said, central bank is involved in their policies. It says the workshop dealt with monetary policy and that monetary policy is going to be key because why?
It’s going to have to deal with objectives of operational, intermediate and final. In other words, there is going to be that qualitative and quantitative and qualitative tools that they’re going to be using for the central bank to control those commercial banks and control their monetary liquidity. Monetary policy that can affect economic activity by moving through its various channels, which is by bonds. I mentioned price channels, interest rate channels, exchange rate channels, bank credit channels.
Well, open market operations is unbelievable, you guys. It is that they have a penchant to be able to move into the open market.
It is completely financially, to me, is unbelievable that Iraq is getting ready to go international and without open market operations, you’re going to find that has a component of exactly what they said they were going to do. And I think Al Saudani is going to be right, because if they’re going to go into the marketplace, they’re going to open marketplace, they’re going to use bonds, they’re going to use all these different tools, interest rate channels, all those things to go international. That means that they’re going to have to have an international exchange rate. And to me that is very important.
There’s no coincidences that between TAFE Sammy and the high level delegation that is going to meet in Erbil, it is our view the central bank branch in herbal tomorrow is whether they’re going to be or somewhere similar. And what are they going to be talking about? They’re going to be talking about major files with the central bank of Herbal because of that workshop, those items that I just got through talking about they’re relating to what effectively defending Iraq’s global currency, because that’s what they’re going to use. They’re going to use those tools to do what?
This stuff here is just basically reiterating that they have the tools to do what? To defend the currency, to manage it in the marketplace. The central bank, now Central bank of Baghdad, central bank branch of Kurdistan is going to have to be in sync. And when they say speed in this new system, if they all interlink at the same time, the speed at which they can do business, especially if you have a, remember what, JPMorgan and Chase was involved, Citibank was involved, Ernst and Young has been involved, Moneygram, visa, master guard, is involved.
And who was the iraqi dinar paired with back when in 2023 with the help of JP Morgan was Iraq and XRP.
