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TNT
Tishwash:
Iraq offers financial bonds for sale to citizens
The Ministry of Finance announced the issuance of bonds under the name “reconstruction bonds,” and made them available for sale to citizens, starting on October 10 and for a period of one month.
The Ministry stated in a statement, “The Public Debt Department, in cooperation with the Central Bank of Iraq, has announced the availability of bonds for sale to citizens in the name of reconstruction bonds, for the period from October 10 to November 9, 2023.” The statement added, “The first issuance of bonds worth one and a half trillion Iraqi dinars is tradable in the Iraq Stock Exchange.”
He explained, “The issuance will be available in two categories: the first at a price of 500,000 dinars with an annual interest of 6% for a period of two years, and the second at a price of 1,000,000 million dinars with an annual interest of 8% for a period of 4 years.”
The Ministry stated, “Citizens can apply for purchases exclusively through approved banks registered with the Central Bank of Iraq.”
She pointed out that “purchasing and trading of the bonds offered are exempt from taxes, according to what is stated in the General Federal Budget Law No. 13 of 2023.” link
CandyKisses:
Russia sets the date of Sudani’s visit to Moscow
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Information/follow-up.
Today 14:15
Russian President Vladimir Putin will meet with Iraqi Prime Minister Mohammed al-Sudani on October 10 and 11 in Moscow, Russian presidential spokesman Dmitry Peskov said.
The Kremlin representative added: “The visit will take place on October 11, or rather negotiations will take place on October 10, and this will be the official visit of the Sudanese Prime Minister of Iraq. Russian-Iraqi talks will take place, and the Russian president will also meet with Mr. Al-Sudani during a working breakfast.”
According to him, on October 11, Putin and the Sudanese will jointly participate in the plenary session of the Russian Energy Week.
Tishwash:
An Iraqi delegation will visit Turkmenistan at the end of the month to sign contracts to import its gas
Prime Minister Muhammad Shiaa Al-Sudani received, this Saturday morning, the Minister of State for Gas Affairs in Turkmenistan, Mr. Maqsad Babayev, and his accompanying delegation.
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During the meeting, according to a statement from the Prime Minister’s Office, a copy of which {Al-Furat News} received, “bilateral relations between the two countries were discussed, ways to develop them, and strengthening cooperation frameworks in the field of energy and gas, which culminated in the signing of a joint memorandum of understanding to import Turkmen gas to Iraq, to meet the needs of gas stations.” Production and its electrical system.”
Al-Sudani blessed “the signing of a memorandum of understanding between the Ministry of Electricity and the Turkmen Ministry of Gas to supply gas, as an Iraqi delegation is scheduled to go to Turkmenistan on the twenty-fifth of this month to sign contracts.”
The Prime Minister stressed that “the government has paid great attention to the energy sector in Iraq and made it one of its most prominent priorities and a basis for developing and diversifying the economy, and developing the rest of the vital sectors. He explained that Iraq possesses a great wealth of gas, but it needs time to invest it optimally, after it was late in this process.” The matter has been going on for years, indicating that the trend to import Turkmen gas comes within the government’s vision and strategy to diversify sources of gas imports, as well as diversifying energy sources to ensure the continuity of the work of power generation plants.”
For his part, Babaev conveyed the greetings of the President of Turkmenistan to the Prime Minister, and expressed his country’s desire to strengthen joint cooperation between Iraq and Turkmenistan in various fields, in a way that contributes to developing relations between the two countries and achieves the interests of their peoples. link
CandyKisses:
Sudani invites UAE President to participate in Baghdad conference
Information/Baghdad..
Today, Friday, the Ministry of Foreign Affairs announced that it had received the invitation of Prime Minister Mohammed Shiaa Al-Sudani to the President of the UAE, Mohammed bin Zayed Al Nahyan, to participate in the third Baghdad conference.
The spokesman for the Ministry of Foreign Affairs, Ahmed Al-Sahhaf, said in a statement received by Al-Maalomah, “The Ambassador of the Republic of Iraq to the United Arab Emirates, Muzaffar Mustafa Al-Jubouri, met with the Assistant Undersecretary for Protocol Affairs at the Ministry of Foreign Affairs of the United Arab Emirates, Ambassador Saif Abdullah Al-Shamsi, at the Ministry’s headquarters.”
During the meeting, the invitation sent by the Prime Minister of the Republic of Iraq, Muhammad Shiaa Al-Sudani, to the President of the United Arab Emirates, Mohammed bin Zayed Al Nahyan, to participate in the Baghdad 2023 Conference for Economic Integration and Regional Stability, scheduled to be held in Baghdad on 11/30/2023, was delivered. .
He added that “the two sides discussed ways to enhance aspects of cooperation between the two brotherly countries in various fields and ways to enhance and develop them.”He pointed out that “the two sides stressed the importance of continuing meetings and strengthening bilateral efforts in the interest of the two brotherly countries and peoples.”
Source: Dinar Recaps
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Tishwash:
Iraq is set to fuel de-dollarization by banning the buck from being used in cash transactions, report says
Iraq is set to become the latest country to join the de-dollarization drive, according to Reuters.
Iraq is about to become the latest country to join the de-dollarization drive, per Reuters.
The greenback will be banned from being used in cash transactions and withdrawals from January 1, the outlet reported.
Several countries, including China and Russia, have made efforts to fuel the de-dollarization movement this year.
Iraq will ban the US dollar from the start of next year as the global movement against the greenback gathers pace, one of the country’s top financial policymakers told Reuters.
People won’t be able to withdraw cash in dollars or use the greenback in transactions from January 1, 2024, Iraqi central bank director-general of investment and remittances Mazen Ahmed said in an interview with the outlet.
The country will ban the buck in a bid to stamp out crime, he said, with over $5 billion worth of the cash that the central bank imports from New York reportedly used in illegal activities.
“You want to transfer? Transfer. You want a card in dollars? Here you go, you can use the card inside Iraq at the official rate, or if you want to withdraw cash, you can at the official rate in dinars,” Ahmed told Reuters. “But don’t talk to me about cash dollars anymore.”
The local currency, the Iraqi dinar, currently exchanges at a rate of around 1,300 dinar per dollar.
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Iraq isn’t the only country engaged in de-dollarization – a movement where countries try to reduce their reliance on the greenback, often in a bid to undermine its dominant role in international trade.
China and Russia are spearheading the effort to wean the world off the buck.
Beijing has asked Middle Eastern suppliers to accept its own currency, the yuan, rather than the dollar – while Vladimir Putin has forbidden any “unfriendly” countries from settling trades using any currency other than the ruble.
The two countries have also repeatedly pledged – alongside other members of the BRICS group – to launch a new currency that they hope one day could unseat the dollar as the dominant international reserve. link
The euro is the key to resolving the dollar crisis in Iraq
The euro is ranked second in the world after the US dollar, as it is considered one of the strong currencies in international trade. The euro is also the second most traded currency in the world after the US dollar, and the British pound is ranked fourth.
The Central Bank of Iraq is supposed to take the first step by diversifying its financial assets and increasing the share of the euro, in addition to the pound sterling, at the expense of the US dollar, as the Central Bank of Iraq’s foreign currency reserve is estimated at approximately 113 billion dollars.
The Central Bank of Iraq keeping a portion of its reserves in euros will not have any negative impact on the value of the Iraqi dinar, but it will preserve its value. An example of this is the Kuwaiti dinar, which is denominated against a basket of foreign currencies such as the dollar, euro, and pound sterling.
The Central Bank of Iraq could have pumped the euro currency into the currency sale window auction, after the strict measures imposed by the US Federal Reserve Bank and the US Department of the Treasury on the Central Bank of Iraq by selling the US dollar currency, with the aim of preventing the smuggling of the dollar into Iran, and therefore The goal of selling the euro in the currency selling window is to avoid the restrictions imposed on the Central Bank of Iraq by the US Treasury, and also to reduce the demand for the US dollar with the aim of reducing the gap between the official rate and the exchange rate in the parallel market.
The Central Bank of Iraq was supposed to establish its own platform, as this platform specializes in selling the euro and the pound sterling, and it can also be sold to citizens in cash, just as the euro is a global currency that the Iraqi merchant can deal with normally and smoothly in any country. It excluded Iran, so some foreign imports could be covered through euros instead of dollars.
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Although I am against the idea of giving each citizen 3,000 US dollars to travel and smuggling hard currency out of the country, but at the same time, if the Central Bank of Iraq continues this policy, I suggest giving citizens the euro as well to travel outside the country in order to reduce the demand for the dollar. American.
Hoarded money:
In order to be realistic, unfortunately, there is a large percentage of the Iraqi people who save their money in the US dollar currency at the expense of the Iraqi dinar, and therefore it is very important to instill a culture of saving or trading in the euro instead of the US dollar among the citizens, in order to reduce the demand for the dollar by the citizens. Those who save their money in US dollars, and this will also aim to withdraw the dinar block from the funds hoarded by citizens, because the Iraqi government has a scarcity of the Iraqi dinar due to the explosive budget, specifically in operational expenses, and it is expected that there will be a deficit in the coming period in paying employees’ salaries. By the Iraqi government, because the dinar block at the Central Bank of Iraq is unable to cover operating expenses, which forces the Central Bank of Iraq to print the dinar, and this in itself is considered a great danger to the value of the Iraqi dinar and the high rate of inflation, and thus its consequences will be serious and negative forIraqi economy.
Euro is an investment currency:
The euro is considered an investment currency because it generally moves in an upward direction in the long term, as it rose from the end of last year from levels of 0.96 cents to 1.12 US dollars two months ago, meaning an increase of approximately more than 15%, and the euro currency is currently in the process of a deep correction as it has declined. To a level of approximately 1.04 US dollars several days ago, and now it is reeling at levels of 1.05 US dollars, and perhaps the rise will resume or the correction will be completed to levels close to the parity point with the dollar, and this in itself is considered an appropriate opportunity for the Central Bank of Iraq to buy the euro currency at a value of 10. One billion euros at the very least, and I personally saved part of my money in the euro currency, and it is expected that the euro currency will target levels of 1.15 US dollars and more during the first quarter of next year.
In the event that the Central Bank of Iraq sells part of the currency sale window auction in euro currency, a month worth two billion euros, that is, selling 100
Suppose that the Central Bank of Iraq pumped the euro currency into the markets when it was at a price of 0.96 cents at the end of last year, at the time when the dollar crisis began in Iraq, which resulted in reducing the gap between the official rate and the exchange rate in the parallel market very significantly, and at the same time achieved… Citizens who bought the euro at the time gained an estimated 15% profit.
Also, at the same time, the Central Bank of Iraq could have invested in the euro if it had kept part of its euro currency reserves, assuming 10 billion euros and sold it when it reached $1.12. It would also have achieved profits of an estimated 15%, or about 1.5 billion.
The question here is: Is the Central Bank of Iraq able to transfer part of its assets from the US dollar to the euro?
Or will he be a prisoner of the directions of the US Treasury and the policy of the US Federal Reserve? link
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Source: Dinar Recaps
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