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Prolotario
@Prolotario1
We Have A Triple Header For Today:
The News Just Keeps Compounding
The Central Bank of Iraq publicly stated two weeks ago that the “next step will be joining the international financial market” — meaning full forex integration. That statement was not aspirational. That was a declaration of operational readiness. CBI does not broadcast next steps unless the infrastructure is already in place.
Today, Iraq’s Minister of Finance met with the World Bank to discuss “financial reform and enhancement of the efficiency of financial institutions” amid international commitments to support Iraq.
“ENHANCE THE EFFICIENCY OF FINANCIAL INSTITUTIONS” DECODED
This phrase is diplomatic cover for upgrading Iraq’s banking sector credit rating to international standards. Right now, Iraqi banks operate on a program rate an artificially suppressed exchange rate set post-2003 under Coalition Provisional Authority Order 43.
Foreign banks don’t trust Iraqi financial institutions because those institutions sit at the bottom of international credit assessment tables. Their correspondent banking relationships are limited. Their clearing capabilities are restricted. SWIFT access exists but is heavily monitored and constrained.
You All Have Every Right To Be Excited Right Now
“Enhancing efficiency” means raising the credit profile of Iraqi banks so that international financial institutions JP Morgan, HSBC, Deutsche Bank, Standard Chartered will engage them as legitimate counterparties. That requires the following.
• Demonstrable reserves backing the currency
• Transparent monetary policy mechanisms
• Anti-money-laundering compliance frameworks that meet FATF standards
• Gold or hard-asset reserves that anchor the dinar’s value independent of oil revenue fluctuations
Iraq cannot join forex at 1,310 IQD per USD. That rate is a program rate a placeholder. No international financial market accepts a currency at an administratively set value that does not reflect underlying economic reality. The rate must move to reflect Iraq’s gold reserves, diversified economic output, and fiscal capacity.
The CBI’s statement two weeks ago about “joining the international financial market” is confirmation that the rate adjustment is the gating event. You do not announce forex entry while maintaining a program rate. The rate change precedes or coincides with international market entry.
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Source(s):
• https://x.com/Prolotario1/status/2100615327088287997
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