A BIG Change For The Iraq Dinar: the Economic Ninja

A BIG Change For The Iraq Dinar

The Economic Ninja:  11-22-2024

Are you following the latest Iraqi Dinar (IQD) news? In this video, we explore the Iraqi Dinar revaluation updates and what’s driving the recent changes in the Iraqi Dinar exchange rate.

With the IQD gaining value against the USD, it’s an exciting time for those tracking the Iraqi economy and currency markets.

 Whether you’re an investor or just curious about the Dinar’s potential, we’ll break down:

The latest developments impacting the Iraqi Dinar value Key factors behind the IQD’s rise against the U.S. Dollar What the revaluation could mean for global markets

Stay updated on the Iraqi Dinar revaluation news and exchange rate changes. Don’t miss this in-depth analysis of the trends shaping the future of the Iraqi economy and currency!

https://www.youtube.com/watch?v=cmnZQSNSKHo

Seeds of Wisdom RV and Economic Updates Saturday Morning 11-23-24

Good Morning Dinar Recaps

GLOBAL ASSET MANAGER LAUNCHES XRP ETP WITH INDUSTRY-LEADING PRICING IN EUROPE

XRP advances with a new institutional-grade exchange-traded product, offering secure, physically backed exposure as Wisdomtree expands crypto products amid growing investor interest.

XRP Gains Ground: Major ETP Launched by a Top European Asset Manager
Asset management firm Wisdomtree announced on Thursday the launch of its latest cryptocurrency exchange-traded product (ETP), the Wisdomtree Physical XRP (XRPW), on major European exchanges, including Deutsche Börse Xetra, Six Swiss Exchange, and Euronext in Paris and Amsterdam.

With a management expense ratio of 0.50%, the asset management firm stated that its XRP ETP is Europe’s most competitively priced offering for XRP exposure.

 Built for simplicity and security, Wisdomtree explained that the product is fully backed by XRP, providing exposure to its spot price through an institutional-grade, physically backed structure. According to the asset manager:

The Wisdomtree Physical XRP ETP is designed to offer investors a simple, secure, and cost-efficient way to gain exposure to the price of XRP. Investors also benefit from a dual-custody model with regulated custodians and with the underlying assets professionally secured in cold storage.

This latest addition expands Wisdomtree’s portfolio of nine cryptocurrency ETPs, which also cover bitcoin, ethereum, solana, and diversified crypto baskets. 

“Cryptocurrency ETPs represent an efficient way to keep investors in a regulated framework and are becoming the preferred vehicle to access cryptocurrencies,” Alexis Marinof, Head of Europe at Wisdomtree, highlighted the benefits of ETPs. 

“Wisdomtree leverages 20 years of expertise in providing and managing physically-backed ETPs for institutional investors. With over $100bn of assets under management globally across ETFs and ETPs, investors in our cryptocurrency ETPs can benefit from our global reach, scale and resources.”

@ Newshounds News™

Source:  Bitcoin News

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BRICS: INDIA PROVIDES UPDATE ON CBDC CURRENCY

BRICS member India is among the few countries that successfully launched a pilot basis of Central Bank Digital Currency (CBDC). The Reserve Bank of India (RBI) began testing the CBDC currency early this year for trade and common transactions. The RBI is testing the security aspects of digital currencies and conducting studies about their potential impact on the economy.

The launch of the CBDC could change the fortunes of BRICS member India, as it’s ahead of the curve in digital currencies. Out of the 198 countries in the world, 134 nations are currently working towards the formation of a CBDC currency. All the countries are currently in testing mode while only a few have reached the pilot testing phase.

BRICS: India Gives Update on CBDC Currency Progress

Apart from the de-dollarization agenda, BRICS is also looking to topple the US dollar with CBDC digital currencies. Reserve Bank of India’s Deputy Governor T Rabi Sankar confirmed that the CBDC pilot mode is in its advanced stages. 

Sankar signaled that the CBDC rollout will also be utilized for government, retail, and institutional users. When reporters questioned about its release date, the RBI deputy said that they were not in a hurry.

“We are in no hurry to roll it out (CBDC) immediately,” he said to reporters. The RBI deputy revealed that once things fall in place, details about the CBDC currency will be made public by BRICS. “Once we have some visibility of what the outcome or impact will be, we’ll roll it out. We don’t keep a specific timeline for that.”

Apart from India, its BRICS counterpart Russia is also in the advanced stages of testing its CBDC currency. Russia plans to launch the digital ruble and usher into a new era in the financial sector. Transactions in the US dollar will begin to decline gradually if BRICS starts using CBDC digital currencies for trade.

@ Newshounds News™

Source:  Watcher Guru

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 @ Newshounds News™

Source:  Seeds of Wisdom Team RV Currency Facts

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“Tidbits From TNT” Saturday Morning 11-23-2024

TNT:

Tishwash:  Parliament resumes its sessions next week... and clarification of the mechanism for extending its legislative term

A member of the Parliamentary Legal Committee explained the mechanism for extending the legislative term of the House of Representatives.

Aref Al-Hamami told Al-Furat News Agency that "extending the legislative term of the House of Representatives does not require a vote, but rather only a decision from the Speaker of the House and his deputies to decide the legislative term."
He added, "The next session is scheduled to include the general amnesty and personal status laws, and work will be done to resolve them."

He added, "There is nothing new regarding the 2025 budget schedules, and we are waiting for them to arrive from the government."

The Speaker of the House of Representatives decided on the fourth of this month to resume sessions next week after the completion of the population census operations in the country.  link

Tishwash:  Expectations of an "elite" Iranian delegation arriving in Baghdad.. 3 files on the table

 An informed source expected, today, Friday (November 22, 2024), the arrival of an elite Iranian delegation to Baghdad within the next 72 hours.

The source said in an interview with "Baghdad Today", "Tehran has indirect lines of communication through 3 Arab countries, including Baghdad, with the White House to convey messages and positions regarding developments in the Middle East and ways to prevent it from reaching the stage of comprehensive war."

He added that "an elite Iranian delegation may arrive in Baghdad within the next 72 hours to discuss Tehran's positions on three files, most notably Gaza and Lebanon, the importance of stopping the war, and its vision of the situation and the roadmap that could stop the tensions at a certain point."

He pointed out that "Tehran is very open to the issue of stopping the war as quickly as possible and pressuring Western countries, including America, in order to move the pressure tools on the entity and stop the genocide machine," noting that "all indicators show that the Middle East is facing rapid changes, and the language of diplomacy may be slightly higher for the first time than the language of war."

In a related matter, an informed source revealed, on Thursday (November 21, 2024), an Iranian message with positive content to Washington through Iraqi mediators.

The source said in an interview with "Baghdad Today", "Tehran sent yesterday, through Iraqi mediators, an indirect message to America about its vision for resolving the crisis and the dangerous escalation in the Middle East, starting with ending the war of extermination in Gaza and southern Lebanon, stopping the bombing in Beirut and seeking a roadmap with an international vision."

He added that "the Iranian message carried diplomatic signals in most of its lines, which means that it wants to reach a solution that ends the current conflict according to a vision with specific dimensions, while indicating that it does not want a comprehensive war, but will engage in it if it is imposed on it directly."

He pointed out that "it can be sensed that the Iranian military option on Tel Aviv has been postponed at the present time in light of undeclared international efforts to prevent the explosion of the Middle East, in addition to waiting to see the new American president and how he will deal with the files of the East and his promises to end the war."

The source said that "Iran has begun to tone down its rhetoric towards diplomacy, through which solutions can be reached that contribute to stopping the bloodshed, while declaring a firm position that it will not abandon the axis of resistance."

Iraq played the role of mediator in the indirect dialogue between Washington and Tehran, and contributed to preventing events from developing into a major regional comprehensive war.   link

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Tishwash:  Protecting Iraq is an American duty: Security agreements are not just ink on paper

In a tense atmosphere that portends an unprecedented escalation, news continues about intensive security and diplomatic moves to prevent a confrontation between Israel and Iraq, against the backdrop of attacks by armed factions on Israeli sites. While Israel has filed an official complaint with the UN Security Council against Iraq, fears are growing of an “imminent” Israeli strike that could open the door to escalation in the region.

The political advisor to the Iraqi Prime Minister, Fadi Al-Shammari, said in press statements that “the Israeli threats have become tangible after the complaint that Tel Aviv filed with the Security Council.” He explained that the Iraqi government is working on more than one level to contain the crisis and avoid its disastrous repercussions.

Sources said that Baghdad received direct warnings from Washington that Israel was prepared to take military action unless the government could rein in the armed factions.

A source said that the Security Council is witnessing intense discussions regarding the Israeli complaint. He added: “Israel is trying to provide justifications for a possible military strike, claiming that the attacks are being launched from Iraqi territory with Iranian support.”

Washington in the circle of pressure

For its part, Washington finds itself in a sensitive position under the “Strategic Framework Agreement” with Baghdad, which imposes on it the responsibility to defend Iraq against any external threat.

However, observers believe that the American position may be less clear than it seems, as an analysis published by a Washington research center indicated that “Israel may resort to limited surgical strikes without waiting for a public green light from the United States.”

Between the field and diplomacy

A citizen named Ahmed Al-Saadi spoke about the tense atmosphere in a Facebook post, saying: “What is happening now brings to mind the atmosphere of war in the nineties. People here are afraid of the repercussions of any new confrontation.” In a tweet on the “X” platform, an account said: “If the news of an imminent Israeli strike is true, Iraq may witness one of its most complex crises since the fall of the former regime.”

Faction movements and internal balances

Field reports indicated that some armed factions have begun taking precautionary measures in preparation for any possible attack. A source close to one of the factions said in a private interview: “We are ready to defend Iraqi territory if Israel targets it.” But a citizen from Baghdad named Zainab al-Ali expressed her fears about the repercussions of these moves, saying: “Iraqis always pay the highest price in such conflicts.”

Future analysis and escalation expectations

According to strategic analyses, Israel is exploiting the escalation to impose a new equation in the region, which was confirmed by a reliable source, who said: “Any Israeli strike could be the beginning of an expansion of the conflict, as the factions will not only respond from within Iraq, but we may witness other fronts igniting.” He added: “The biggest fear is that Iraq will turn into an arena for settling regional scores.”

Iraq needs a unified position from political forces to ward off the Israeli threat, away from the divisions that have weakened the country over the past years.”  link

Mot: They are Sooooooooooo thoughtful -- HUH!!!! 

Mot: . Ohhhh Nooooo - the Weather is Upon Us! 

Pre-Recorded MarkZ, Dr. Scott Young, and Zester on the Bitcoin act. 11/22/2024

MarkZ, Dr. Scott Young, and Zester on the Bitcoin act. 11/22/2024

MarkZ Disclaimer: Please consider everything on this call as my opinion. Be sure to consult a professional for any financial decisions

MZ: This is a recorded video from this week on an interesting, proposed law that may give us an idea as to how the new financial system may work.

THE CONTENT IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY&NOT INTENDED TO PROVIDE ANY PROFESSIONAL, FINANCIAL OR LEGAL ADVICE. PLEASE CONSIDER EVERYTHING DISCUSSED IN MARKZ’S OPINION ONLY

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THANK YOU ALL FOR JOINING. HAVE A BLESSED NIGHT! SEE YOU ALL IN THE MORNING FOR COFFEE @ 10:00 AM EST ~ UNLESS BREAKING NEWS HAPPENS!

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More News, Rumors and Opinions Friday PM 11-22-2024

KTFA:

Clare:  Al-Sudani directs census teams to complete their mission tomorrow, Friday

11/21/2024

Prime Minister Mohammed Shia Al-Sudani directed the census teams working on implementing the general population and housing census throughout Iraq to complete the census process tomorrow, Friday.

A statement from Al-Sudani's office stated that the latter urged all citizens to show full cooperation with the mobile teams and provide correct information in order to make this important development experiment a success, on which all service and economic sectors and development efforts depend.LINK

Clare:  Dollar-Dinar Exchange Rate Gap: Causes and Treatments

Dr. Haitham Hamid Mutlaq Al Mansour   11/22/2024

Iraq relies in its monetary policy to monitor the change in the value of its dinar against the dollar on a fixed exchange rate peg system. The overall policy aims to reduce the gap between the official and actual exchange rates and stabilize it close to the target exchange rate, curbing inflation, stimulating markets, commercial, financial and investment transactions, and stimulating growth

. Therefore, reducing the exchange gap at the target exchange rate level is one of the prominent issues facing the economic policy maker in Iraq in order to limit the major repercussions that go beyond the economic scope and crystallize significantly in the social stability of the country.

This gap becomes more evident through the variation in the dollar exchange rates and the fluctuation of the real value of the dinar. Either positively, it generates revenue, or negatively, it generates additional costs that cause repercussions on purchasing power without taking individuals and economic units into account, negatively affecting local and foreign savings and investment. The more the gap varies, the greater the economic cost of investment and the higher the levels of inflation, which increases the suffering of the limited-income family sector.

It has become known that the size of the Iraqi economy's GDP depends very heavily on the oil dollar, which is the main source of the Ministry of Finance's resources, instead of the non-oil dollar, which is called the non-oil export dollar, which has very low flexibility, resulting in a sharp decline in credit deposits in the accounts of traders exporting goods in Iraqi banks in exporting countries.

This dependence exposes the exchange gap to fluctuations in the global oil market. When global oil prices rise, we witness a decrease in the exchange gap due to the increase in the supply of the dollar, while in contrast, during periods of economic recession or when oil prices fall, the gap increases significantly when the government is unable to provide an adequate supply of dollars in the official window for buying and selling dollars. In such cases, traders are forced to search for alternatives through the parallel market, which exacerbates price pressures on the weakest groups.

Referring to the reasons that widened the exchange gap, they are multiple. In addition to what was mentioned above, the reasons can be traced according to the axis of indirect reasons that are linked to the country's trade policy and the problems of border crossings related to dollar smuggling, including those related to activating the role of crossings as an authentic source of revenue. There are also indirect reasons that have a political and security nature and medium- and long-term repercussions on the movement of money and investment.

While economic and monetary reasons stand out at the forefront of direct or technical reasons, some of them are related to the nature of the banking system and the extent of its credit capacity and the level of banking compliance with the monetary and credit conditions of the Federal Reserve, which affects the levels of supply of the petrodollar.

Therefore, we find that many international banks refuse to work as correspondent banks due to the low credit rating of our banking system as a result of smuggling operations, money laundering and sanctions that affect a third of Iraqi banks. Therefore, we find that they do not stand up in this regard, except for banks that have external partnerships with Arab banking capital. They derive international acceptance from the quality of the credit rating of those countries, which facilitates the process of opening accounts with correspondent banks. Therefore, there is fear that pressures on the dollar exchange rate will increase, widening the gap.

It is also noted that among the technical reasons that led to the widening of the gap are the successive changes in the official exchange rate threshold taken by successive government administrations. The gap witnessed a transition at the end of 2020 from the stable situation in which the gap between the official exchange rate of 0.118 dinars per dollar and the actual exchange rate of 1,200 dinars narrowed, to raise the threshold in 2021 to 1,450 due to the decision of the Central Bank at the time. Then the threshold rose this time after the Council of Ministers approved in February 2023 the decision of the Board of Directors of the Central Bank of Iraq to amend the official exchange rate of the dollar against the dinar, to the threshold of 1,300 dinars per dollar.

By following the parallel dollar exchange rate in November of this year 2024, we find that it has reached the limits of 1500 dinars per dollar and exceeded it, and that the Central Bank’s selling price for cash dollars, transfers, documentary credits, and international settlements for electronic cards is at the threshold of 1300 dinars per dollar. Therefore, it is concluded that the gap in the dollar exchange rate against the dinar is still widening despite the pressures of the Federal Reserve and the Central Bank’s efforts towards compliance.

Therefore, dealing with the gap between official and actual spending should require comprehensive, integrated policies that target technical and non-technical treatments within medium- and long-term planning, the most important of which are:

Reforming the structure of the banking system, developing its efficiency, and raising the levels of its credit capacity and the flexibility of its banking compliance.

Developing tools for targeting inflation and exchange rates, which would help reduce the exchange gap and achieve price stability.

Implementing solid reforms in the financial and monetary sectors to enhance the flexibility of banking performance in accordance with the SWIFT global financial settlement system.

Coordination between fiscal and monetary policies to achieve the target exchange rate by rationalizing government spending and tightening control over the money supply.

Economic policy should enhance transparency in all financial and banking operations, by implementing clear and strict control systems to contain opportunities for corruption and exploitation of the exchange gap.

Deepening the mechanisms of border control and combating administrative corruption to increase total revenue.

Government authorities must maintain and enhance security and political stability to contribute to building confidence between local and foreign investors on the one hand and the investment environment on the other, which will stimulate further stability and growth.

Formulating an economic policy that targets technical solutions to expand the non-oil production base, and serious planning on how to diversify sources of income for the overall economy. The path of developing the agricultural and industrial sectors will be the decisive factor in reducing imports and stimulating the growth of fixed capital accumulation for the private sector. Hence, the demand for the dollar for consumer import purposes will decrease.  LINK

Courtesy of Dinar Guru:  https://www.dinarguru.com/

Nader From The Mid East  They been talking about the exchange rate every day almost to get it better and better.  I think it's going to happen soon...I think it's coming.  I'm just going like this with my hands [rubbing them back in forth in anticipation.]

Militia Man  Article: "IMF: Arab country confirms commitment to flexible exchange rate"   Quote: "The International Monetary Fund (IMF) mission that visited Egypt announced that the Central Bank has confirmed its commitment to maintaining a flexible exchange rate regime, in order to protect the Egyptian economy from external shocks." ...Flexible exchange rate...is one that is determined by market forces of supply and demand in the foreign exchange market. The IMF suggesting shocks to come is likely a heads up that change is coming.  Let's hope that change to come is for Iraq's exchange rate...

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Is the US Debt Crisis Fueling Gold's Rise? Feat Schectman, Hemke, and Kientz - LFTV Ep 200

Kinesis Money:  11-22-2024

In this milestone 200th episode of Live from the Vault, Andrew Maguire is joined by Andy Schectman, Craig Hemke, and Rob Kientz for an in-depth roundtable on how rising interest rates and speculative trading are shaking up gold and silver prices.

The panel explores the implications of these market dynamics and highlights global economic challenges, such as the growing US debt and inflation, urging the importance of holding precious metals as a safeguard against financial uncertainty.

Check out our amazing guests:

Timestamps:

 00:00 Start

02:40 Introduction of panel: Andy Schectman, Craig Hemke, and Rob Kientz

03:40 The potential impact of Trump’s victory on the gold market

 22:25 Expert insights on the possibly incoming revaluation of gold

39:50 The future of money: it’s already unfolding

 46:20 Key concerns in politics and monetary policy

 57:20 Dislocations between bonds, the dollar, and gold

https://www.youtube.com/watch?v=KXwhLW7Ezl0

Seeds of Wisdom RV and Economic Updates Friday Afternoon 11-22-24

Good Afternoon Dinar Recaps,

BRICS: WHY 2025 COULD BE THE END OF ITS DE-DOLLARIZATION EFFORTS

Despite being the BRICS focus over the last two years, 2025 could mark the end of the alliance’s de-dollarization efforts. Although the bloc has sought increased financial prominence, it has yet to truly strike at international Western hegemony.

With President-elect Donald Trump set to take over the White House in the coming years, his relationship with Russia’s Vladimir Putin could orchestrate a massive shift in perspective for the group. Since Trump won the 2024 election, Putin has already assured he is no longer interested in abandoning the US dollar.

BRICS Fight Against the US Dollar Coming to Its Final Bell: Why Trump Changes Everything
2022 remains one of the most important years, geopolitically speaking. 

That year marked the start of Russia’s invasion of Ukraine. Moreover, it forced the hand of the West, with the United States moving to sanction the country in response to its military advancement.

With that being more than two years ago now, things have changed. The invasion sparked increased cooperation with the global South BRICS alliance. Specifically, Russia sought to forge plans to lessen international reliance on the US dollar. Effectively, he struck back against the West in any way he could.

Yet, things have changed. Specifically, Trump is back in office, and the sentiment from the Russian president has shifted greatly. More importantly, things for the BRICS bloc could be set to change, as 2025 could be the end of its ongoing de-dollarization efforts.

A Reuters report notes that Putin has expressed a willingness to sit down with Donald Trump and discuss ending the ongoing war in Ukraine. Although he has extensive conditions, his openness for a ceasefire is progress nonetheless. 

Moreover, that comes as he already denounced a desire to truly abandon the US dollar after Trump was elected as the incumbent US President.

Trump has been outspoken about his stance regarding de-dollarization. Just as certain, the 45th president has been vocal about his belief in his own capacity to end the Ukraine war. Those two things could create a perfect storm that only hinders the nations that put their faith in BRICS de-dollarization.

It is not out of the realm of possibility to see an increase in Russian and US cooperation. That is especially true amid Trump’s return. Such an action would threaten its advances on the US dollar. More importantly, it could ensure Trump gets what he wants, assuring the greenback’s position atop global economics.

@ Newshounds News™

Source: Watcher Guru

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SEC COMMISSIONER JAIME LIZÁRRAGA TO STEP DOWN IN JANUARY

The U.S. Securities and Exchange Commission will see yet another exit in January after Commissioner Jaime Lizárraga announced he will step down.

Bloomberg Law reports that the former congressional aide has said he will leave the agency on January 17. The announcement comes just a day after SEC Chair Gary Gensler announced his resignation effective January 20.

Lizárraga, Gensler, and Caroline Crenshaw are the three Democrat commissioners among the SEC’s five members. The two exits will leave Crenshaw, Hester Peirce, and Mark Uyeda, the latter two having dissented on various SEC decisions.

Notably, Lizárraga and Gensler will exit as Donald Trump, elected on Nov. 5, gets into office amid expectations of a pro-crypto White House. Reports that the Trump administration is eyeing a “crypto czar” have added to optimism, even as the industry debates on who would be the best pick for SEC Chair.

Lizárraga joined the SEC in 2022, with his term ending in 2027. Lizárraga faced criticism for overreach, with his corporate reporting regulations burdening small businesses. He was also criticized for the controversial policies that the market saw as prioritizing politics over investors.

He says his resignation is for family reasons.

“In reflecting on the challenges that lie ahead, we have decided that it is in the best interests of our family to close this chapter in my 34-year public service journey,” he said in a statement quoted by Bloomberg Law.

The crypto industry has largely criticized the SEC’s approach over the past four years, pointing to what many see as an anti-crypto stance. Trump has pledged to fire Gensler immediately upon taking office, vowing to end the current administration’s “war on crypto.”

@ Newshounds News™

Source: Crypto News 

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MASTERCARD INTEGRATES ITS MTN BLOCKCHAIN NETWORK WITH JP MORGAN’S KINEXYS DIGITAL PAYMENTS (JPM COIN)

Today Mastercard announced it has integrated its Multi-Token Network (MTN) for tokenized deposits and tokenized assets with Kinexys Digital Payments (formerly JPM Coin).

 It allows clients of the two solutions to send payments across the networks. Both companies emphasized the benefits for cross border payments because of traditional challenges with speed, transparency and time zone differences.

Kinexys Digital Payments is designed to support clients with JP Morgan bank accounts, so it’s mainly used by corporates that want to move money between JP Morgan branches dotted around the world. MTN provides a simplified solution to enable banks to engage with tokenized deposits.

Instead of developing their own blockchain networks, it offers banks an API driven solution. Additionally, it provides interoperability with multiple blockchain networks. Kinexys is an example of one of those networks.

“For years, both Mastercard and Kinexys by J.P. Morgan have been committed to innovating for the future of digital asset and commercial infrastructure,” said Raj Dhamodharan, EVP, Blockchain and Digital Assets at Mastercard.

“By bringing together the power and connectivity of Mastercard’s MTN with Kinexys Digital Payments, we are unlocking greater speed and settlement capabilities for the entire value chain.”

Both solutions represent bank payments on a blockchain. Conventional cross border payments involve Swift messages being sent between banks, often with intermediary banks involved. The banks then move the money separately from the message. That works fine most of the time, but not always. 

With blockchain-based transfers, there is no separation of the message and money movement. That avoids issues where money has departed the sender’s account but has not arrived at the recipient.

If there’s an issue with the payment, such as an AML query, then the transfer should not start until that’s resolved.

Kinexys and MTN experience
Kinexys Digital Payments are relatively mature, having launched in 2020. It now processes on average $2 billion in payments daily. Kinexys supports both Euros and Dollars, with plans to support instant FX soon. By contrast, MTN was first announced in mid 2023, and executed its first live transaction in a sandbox with Standard Chartered in May.

Both projects are explored in Ledger Insight’s new report on bank stablecoins and deposit tokens.

@ Newshounds News™

Source: Ledger Insights  

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@ Newshounds News™

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China Japan Dump Record US Bonds: Accelerating Global Currency Reset

China Japan Dump Record US Bonds: Accelerating Global Currency Reset

Awake-In-3D November 21, 2024

As Japan and China offload U.S. Treasuries, the global currency system faces a pivotal shift that could redefine international trade and finance.

The global financial system continues its historic shift as Japan and China accelerate the Global Currency Reset with record-breaking sales of U.S. Treasuries. These unprecedented moves signal a pivotal moment in international finance, challenging the U.S. dollar’s dominance as the world’s reserve currency. By understanding the motivations behind these actions and their far-reaching consequences, we can better prepare for the financial realignments reshaping global trade and economic power.

The Role of Japanese and Chinese Treasury Sales in the Global Currency Reset

In the third quarter of 2024, Japan and China undertook unprecedented sell-offs of U.S. Treasury securities, amounting to $61.9 billion and $51.3 billion respectively. These significant moves, captured in data from the U.S. Department of the Treasury, highlight an evolving landscape in global finance and the increasing fragility of the U.S. dollar’s dominance. While these sales reflect immediate market concerns, such as higher yields and political uncertainty, their deeper implications signal preparation for a broader financial transformation—often referred to as the Global Currency Reset.

This article explains the motivations behind these Treasury divestitures and their potential consequences for the U.S. dollar’s status as the world’s reserve currency. I also examine how these actions serve as precursors to a realignment of currency dominance, reshaping global trade and finance.

The Drivers Behind Japan and China’s Record Treasury Sales

1. Anticipation of U.S. Inflationary Policies

The mid-2024 peak in Treasury yields—bolstered by speculation over inflationary policies—was a primary catalyst for Japan and China’s record sales. These countries perceived the fiscal policies of the U.S., including tax cuts and high tariffs, as drivers of inflation and economic uncertainty. Rising yields offered an attractive exit point for large holders of U.S. debt, particularly in an environment of growing skepticism about the long-term stability of the dollar.

2. Geopolitical Risks and Domestic Strategies

Geopolitical concerns further fueled the sell-off. China, in particular, has faced escalating tensions with the U.S., with trade disputes and competition for technological dominance at the forefront. By reducing its exposure to U.S. debt, China not only hedges against potential economic retaliation but also redirects resources to bolster its currency and diversify reserves.

Japan’s motives, while similar, are intertwined with its efforts to stabilize the yen amidst fluctuating currency markets. The Ministry of Finance’s interventions in mid-2024 to prop up the yen underscore the challenges Tokyo faces in managing exchange rates while navigating external pressures.

3. Preparing for the Global Currency Reset

Beyond short-term factors, these actions reflect a strategic pivot toward a long-term vision of global financial realignment. Both Japan and China appear to position themselves for a shift in currency dominance, a hallmark of the Global Currency Reset. This phenomenon envisions a more equitable distribution of reserve currency roles, diminishing reliance on the U.S. dollar and enhancing the prominence of alternative currencies.

Consequences for the U.S. Dollar

The mass offloading of U.S. Treasuries by two of its largest foreign creditors has profound implications for the U.S. dollar, challenging its long-held status as the backbone of the global financial system.

1. Decline in Reserve Currency Utility

Historically, the dollar’s dominance has been underpinned by trust in U.S. financial stability and the liquidity of its debt markets. The divestitures by Japan and China undermine this trust, sending a signal to other nations that diversifying away from dollar-denominated assets is prudent. As more countries follow suit, the dollar’s position as the world’s primary reserve currency declines, facilitating a transition to a multipolar currency system.

2. Increased Volatility in U.S. Debt Markets

The scale of these sales has already contributed to volatility in the Treasury market. If foreign demand for Treasuries continues to decline, the U.S. faces higher borrowing costs, further straining an already ballooning federal deficit. This self-reinforcing cycle, where higher yields make Treasuries less attractive to foreign investors, accelerates the divestment trend.

3. Acceleration of Alternative Reserve Assets

Both Japan and China have actively explored alternatives to the dollar. China, for instance, promotes the use of the yuan in international trade and expands its digital currency initiatives. Japan, while less aggressive, has shown interest in regional trade agreements that minimize reliance on the dollar. Their Treasury sales serve as a catalyst for other nations to consider similar shifts, accelerating the adoption of alternative reserve assets like gold, cryptocurrencies, or other fiat currencies.

The Role of the Global Currency Reset in Shifting Currency Dominance

The Global Currency Reset envisions a new financial order, where multiple currencies share the responsibilities traditionally held by the U.S. dollar. This scenario aligns with the actions of Japan and China, which not only reduce their reliance on the dollar but also initiate a transition toward a diversified reserve framework.

1. Rebalancing Global Power

The concentration of financial power in the U.S. has long been a point of contention among emerging economies. The Global Currency Reset addresses these imbalances by elevating the roles of regional currencies, such as the yuan, and creating mechanisms for fairer trade settlements. Japan and China’s actions represent early steps in this direction, indicating their strategic focus on leadership roles in the new system.

2. Strengthening Domestic Economies

A key tenet of the Global Currency Reset is the alignment of national economies with stronger, more stable currencies. For Japan and China, reducing exposure to U.S. debt aligns with their goals of mitigating external risks and focusing on domestic growth. This strategy also enhances their ability to manage currency valuations and support broader economic initiatives, such as China’s Belt and Road Initiative.

3. The Rise of Digital Currencies

Digital currencies play a pivotal role in the Global Currency Reset, offering an alternative to the dollar-based system. China’s digital yuan is already being tested in cross-border trade, while Japan has shown interest in developing its own digital currency. These initiatives not only reduce reliance on the dollar but also position these nations as pioneers in the next generation of global finance.

Implications for the U.S. and Global Markets

The consequences of Japan and China’s Treasury sales extend beyond the U.S. dollar, influencing global markets and shaping the strategies of other nations.

1. Pressure on U.S. Fiscal Policy

The U.S. government faces increased pressure to address its fiscal imbalances, as declining foreign demand for Treasuries raises borrowing costs. This forces policymakers to make difficult choices, such as reducing spending or increasing taxes, to stabilize the economy.

2. Opportunities for Emerging Markets

As the dollar’s dominance wanes, emerging markets benefit from a more balanced financial system. Reduced reliance on the dollar enables these countries to trade and borrow in currencies that better reflect their economic realities.

3. Increased Global Cooperation

The transition to a multipolar currency system requires unprecedented levels of international cooperation. Institutions such as the International Monetary Fund (IMF) and World Bank play crucial roles in facilitating this shift, ensuring stability during the transition period.

The Bottom Line

Japan and China’s record-breaking sales of U.S. Treasuries are more than just a reaction to market conditions—they represent a strategic shift with profound implications for the U.S. dollar and the global financial system. By reducing their exposure to dollar-denominated assets, these nations signal their intent to play pivotal roles in a future where the dollar is no longer the unrivaled global reserve currency.

This realignment, often referred to as the Global Currency Reset, reshapes the financial landscape, offering opportunities for greater equity and stability. For the U.S., however, it poses significant challenges, necessitating swift and strategic action to maintain its influence in a rapidly changing world.

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© GCR Real-Time News

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News, Rumors and Opinions Friday 11-22-2024

Note: All intel should be considered as "Rumors" until we receive official announcements ...and “Rates and Dates” could change anytime until we get to the banks/redemption centers.

RV Excerpts from the Restored Republic via a GCR: Update as of Fri. 22 Nov. 2024

Compiled Fri. 22 Nov. 2024 12:01 am EST by Judy Byington

Global Currency Reset:

Thurs. 21 Nov. 2024 Wolverine: “Get ready. It’s all about to go down. On Med Beds: you will get that information on the website where you make your appointment. If you have a medical issue and can’t make it to the Redemption Center, work it out with the person you make your appointment with. He is a Military person who is working with the Med Beds.”

Thurs. 21 Nov. 2024 Bruce:

R&R (NESARA payments to all US citizens age thirty and older) is set to start on Thanksgiving night 28 Nov. 2024 for those not exchanging

R&R will start for Tier4b (us, the Internet Group) when we exchange

SS increases will likely start in December.

Medicare should be free under President Trump.

Two sources say we should get notified on Fri. 21 Nov.

Other sources say we should get notified over the weekend and start exchanges on Mon. 25 Nov.

Ages 30-45 will get R&R over a three year period.

Ages 45-60 will get R&R over a two year period.

Age 60 and over get R&R in a lump sum payment.

The leaders who will send emails on how to set your redemption appointments to the banks and redemption centers already have the emails to send out – which will be on Fri. 22 Nov, Sat. 23 Nov, or the first of the week.

Thurs. 21 Nov. 2024: QFS Leaks: $21 Trillion in Hidden Assets Seized – Banks Collapse as Wealth is Redistributed with Asset-Backed Currencies; Blackout Attempts Fail to Protect The Cabal’s Hidden Fortune! – Gazetteller

Read full post here:  https://dinarchronicles.com/2024/11/22/restored-republic-via-a-gcr-update-as-of-november-22-2024/

*************

Courtesy of Dinar Guru:  https://www.dinarguru.com/

Frank26  Article: "Salaries may be funded after census holiday"   If so...then there is a new exchange rate.  It's not just funding of the salaries, it's everything.   The new exchange rate, the HCL, the salaries, everything in your budget.  Nothing is being held back any longer.  It's plainly there explained right there in plain sight.

Bruce  [via WiserNow]  ...This past Saturday and this past Sunday...They took four of our currencies, Iraqi Dinar, Vietnamese Dong, Afghanistan Afghani and the Indonesian Rupiah, those four currencies are being tested on all bank screens around the globe, and they wanted to test and make sure the rates of those were coming up the same in each country where they were showing up...the word was, they all went off without a hitch. So the system is ready. 

Gold’s Not Rising, Currencies Are Failing | David Morgan

Liberty and Finance:  11-21-2024

David Morgan delves into the recent fluctuations in the gold market, explaining how geopolitical tensions, such as the ongoing Ukraine-Russia conflict, have driven gold prices up as investors seek safe-haven assets.

 Morgan touches on the potential for a gold-backed BRICS currency, warning that despite this movement, the global financial system is still largely driven by the same political forces, whether in the East or West.

Ultimately, he highlights the importance of gold as a hedge against the collapse of fiat currencies, stressing that while geopolitical events may cause short-term market fluctuations, the long-term trend remains focused on the devaluation of paper money.

INTERVIEW TIMELINE:

0:00 Intro

1:20 New Orleans conference

3:30 Gold update

5:20 Update on wars

8:55 Fiat currency failure

 10:43 BRICS, another globalist entity

12:00 Freedom

17:25 Gold & silver outlook

https://www.youtube.com/watch?v=PUVmBr1WJuw

Seeds of Wisdom RV and Economic Updates Friday Morning 11-22-24

Good Morning Dinar Recaps,

CONGRESSMAN THAT LED SAB 121 HOUSE VOTE, VOWS TO OVERTURN CRYPTO CUSTODY RULE

Earlier this year, both the House and Senate voted to overturn the SEC’s SAB 121 accounting rule that prevented banks from providing crypto custody solutions. However, President Biden used his veto so the rule still stands. Mike Flood, the Congressman that led the bipartisan House vote, has vowed to work with a new SEC Chair to ditch SAB 121 for good.

However, Flood’s work wasn’t entirely wasted. The dual votes highlighted the issue that forcing banks to put assets under custody on their balance sheet is both unconventional and affects their compliance with bank balance sheet rules.

As a result, it makes it prohibitively expensive for banks to provide crypto custody and inhibits innovation on the tokenization front.

Since then, the SEC has softened its stance a little. Banks can apply for exceptions and it has granted them. That’s not a practical solution, because banks have to consult the SEC on most deals.

“SAB 121, despite widespread opposition, works effectively as a regulation even though it never went through the normal Administrative Procedures Act process required for one,” Congressman Flood wrote.

“I look forward to working with the next SEC Chair to rollback SAB 121.” He didn’t pull his punches about SEC Chair Gensler. “Whether the chair leaves on his own or President Trump delivers his famous line on January 20, 2025, there’s an incredible opportunity for the new administration to turn the page on the Gensler era.”

“It should be no surprise that Gensler opposed the digital assets regulatory framework that passed the House earlier this year on a bipartisan basis. 71 Democrats joined House Republicans to pass this common sense framework.

Even though the Democrat-led Senate has refused to take it up, it represents a breakthrough moment for cryptocurrency and is likely to inform the work of the unified Republican government as the next Congress begins in January.”

@ Newshounds News™

Source:  Ledger Insights

~~~~~~~~~

CFTC COMMISSIONER URGES US CRYPTO POLICY REFORMS

The CFTC’s Summer Mersinger advocated structured crypto regulations and urged the industry to engage with the incoming US administration.

Speaking at the North American Blockchain Summit on Nov. 21, CFTC Commissioner Summer Mersinger discussed the need for standard US crypto-related policies through notice and comment regulation.

The United States Commodity Futures Trading Commission (CFTC) has played a role in implementing the current “regulation by enforcement” strategy alongside the Securities and Exchange Commission (SEC) under the outgoing administration, as evidenced by recent charges against Uniswap Labs.

Mersinger also said recent litigation against a decentralized autonomous organization (DAO) required the CFTC to seek a court verdict for entity classification. In this case, the CFTC wanted to classify the DAO as a corporation or association:

“I really started to get uncomfortable with this idea that we were kind of setting some sort of policy through our enforcement cases and through going to court. To me, how you’re going to treat an entity that’s a policy question.”

Need for regulated relief for the crypto industry
Mersinger said that while crypto entities, including decentralized finance (DeFi), are often charged under existing categories and expected to operate under the same laws, there is no provision for them to be officially registered. She added:

“This is really tricky settlements because the information we share publicly with our enforcement settlements really doesn’t offer a lot of guidance for anyone who’s trying to do the right thing.”

As a result, Uniswap tried to do the right thing but ended up attracting more charges, Mersinger said. Still, Uniswap settled with the CFTC for a “very small fine.”

Despite its small size compared with the other agencies such as the SEC, Mersinger said that the CFTC is the “ideal regulator for the cryptocurrency spot market” as it can implement major legislative changes fairly quickly without disruptions to the market.

New laws can help crypto companies fight wrongful litigation
Moreover, she supported the introduction of new laws and regulations for crypto firms despite her predominantly conservative stance:

“What we’re seeing right now is that without those laws, you have agencies like the Federal Communications Commission (FCC) who can come in and create chaos and bring charges where maybe it doesn’t fit.”

Mersinger also recommended that the crypto industry start engaging with the new administration as soon as its leadership has been identified. “Don’t be afraid to start knocking on doors on day one because I think it’s critical to start” the conversations early on, she said.

@ Newshounds News™

Source:  CoinTelegraph 

  ~~~~~~~~~

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@ Newshounds News™
~~~~~~~~~

🌱 THE DOLLAR GAIN MEANS WHAT?  | Youtube

@ Newshounds News™

Source:  Seeds of Wisdom Team RV Currency Facts

~~~~~~~~~

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Thank you Dinar Recaps

Gold’s Surge Against Fiat Currencies as Preparation for GCR and RV

Gold’s Surge Against Fiat Currencies as Preparation for GCR and RV

Awake-In-3D   November 21, 2024

The transition to a gold-backed financial system is accelerating, with gold’s surge leading the charge against weakening fiat currencies.

Gold is steadily rising as a dominant force in the global financial system, signaling transformative changes ahead. As fiat currencies falter under the weight of inflation, debt, and instability, gold’s strength is no coincidence. Gold’s surge is not just a reaction to market conditions but a clear preparation for a Global Currency Reset (GCR) and Revaluation (RV). This pivotal transition to gold-backed currencies offers a glimpse of a more stable and equitable monetary future.

The Historic Relationship Between Gold and Fiat Currencies

Gold has long been regarded as a universal hedge against economic turmoil. Historically, fiat currencies have operated inversely to gold; stronger fiat currencies typically suppress demand for gold, while higher Treasury yields raise the opportunity cost of holding the metal. Yet, as noted in recent market trends, this inverse relationship is breaking down. Even as the US Dollar Index ($DXY) and the 10-year Treasury yields climb, gold’s surge is defying expectations.

This resilience suggests that gold is re-establishing its role as the ultimate measure of monetary value. As fiat currencies around the globe grapple with inflation, debt burdens, and economic instability, the idea of revaluing national currencies against an asset-backed standard—where gold plays a central role—has re-emerged as a serious consideration.

Gold’s Surge is a Sign of a Global Currency Transition

Inflationary Pressures and the Role of Gold

One driving factor behind gold’s sustained strength is the market’s anticipation of rising inflation. Recent indicators, such as a 1-month annualized PCE inflation rate approaching 4%, indicate that the current wave of inflation is far from over. Traditionally, gold serves as a hedge against inflation, but in this context, gold’s surge also serves as a benchmark for the diminishing purchasing power of fiat currencies.

By maintaining its value while fiat currencies face devaluation, gold effectively re-establishes its worth relative to these currencies. This recalibration hints at an eventual restructuring of currency systems to include gold-backed currencies, a foundational component of the GCR.

Trade Wars and Global Economic Realignments

The rising tensions between the United States and China, marked by anticipated new trade tariffs, have also bolstered gold’s appeal. Trade wars destabilize fiat currencies by introducing volatility and reducing investor confidence. The last major trade conflict in 2019 caused a significant shift in global currency dynamics, and the current trajectory indicates similar disruptions.

Gold’s surge highlights its increasing role as a stabilizing asset during geopolitical disruptions. As nations consider realigning their currencies with tangible assets to protect against such volatility, gold-backed currencies become a natural choice. These dynamics echo preparations for the RV, where currencies are revalued based on tangible reserves and economic fundamentals.

US Deficit Spending and Its Implications

The United States is currently running a deficit of nearly 10% of GDP, levels not seen since the 2008 financial crisis. This surge in borrowing has flooded bond markets with supply, driving yields higher and causing uncertainty about the long-term sustainability of the dollar as the world’s reserve currency.

Gold’s concurrent rise indicates that markets are already pricing in a loss of confidence in fiat currencies tied to ballooning debt. As deficits climb and the need for monetary reform grows, gold’s surge reinforces the likelihood of a move toward gold-backed currencies. This transformation aligns with the broader goals of the GCR and RV: to stabilize global monetary systems and restore trust in the value of currencies.

Fiat Currencies Revaluing Against Gold

The current market dynamics suggest that many fiat currencies are implicitly undergoing a devaluation process relative to gold. While this shift is not yet formalized, it reflects an acknowledgment of gold’s enduring value in contrast to the declining worth of paper money. This trend is particularly evident in:

• Emerging Markets: Nations with struggling currencies, such as Argentina and Turkey, have seen gold demand skyrocket as citizens seek to protect their wealth from inflation and devaluation.

• Central Bank Policies: Central banks worldwide are increasing their gold reserves, a move that signals a strategic pivot toward asset-backed financial systems. Countries like Russia, China, and India have been particularly aggressive in their gold acquisitions, preparing for a potential rebalancing of the global currency hierarchy.

As these patterns unfold, fiat currencies are effectively being measured and adjusted against gold’s surge, setting the stage for an eventual revaluation within the GCR framework.

Gold’s Surge and the Path Toward Gold-Backed Currencies

The notion of asset-backed currencies, particularly those tied to gold, has gained traction in recent years. Under this system, fiat currencies derive their value from tangible reserves, providing a more stable and transparent monetary foundation. Such a shift addresses many of the systemic issues plaguing the current fiat system, including unchecked debt accumulation, inflationary pressures, and currency manipulation.

In the context of the RV, this transition recalibrates national currencies to reflect their gold and tangible asset reserves. For example:

• Nations with substantial gold reserves, like the United States and China, will see their currencies strengthened.

• Countries with weaker reserves may experience devaluations but gain stability through a more balanced and equitable system.

The Implications of a Gold-Backed Reset

As gold continues its historic run, its role in the global monetary system is being reconsidered. Whether through formal policy changes or implicit market adjustments, fiat currencies are realigning against gold’s surge in preparation for what could be a transformative GCR and RV.

The benefits of such a reset are manifold:

• Stabilized Currency Values: Anchoring currencies to gold reduces the volatility and inflationary risks inherent in fiat systems.

• Restored Global Trust: An asset-backed system enhances transparency and trust in international monetary policies.

• Enhanced Economic Equilibrium: By basing currency values on tangible reserves, the global economy achieves a more equitable and sustainable balance.

The Bottom Line

The rising price of gold is more than just a reaction to market conditions; it signals deeper shifts in the global financial order. As fiat currencies lose ground to inflation, debt, and geopolitical uncertainty, gold’s surge demonstrates its position as a definitive measure of monetary value.

In the context of the GCR and RV, this trend indicates that a transition to gold-backed currencies is not just probable but imminent. The revaluation of fiat currencies against gold represents a pivotal step toward restoring stability, trust, and fairness in the global monetary system. Gold’s historic strength today is poised to redefine the financial landscape for years to come.

=======================================

© GCR Real-Time News

Visit the GCR Real-Time News website and search 100’s of articles here: Ai3D.blog

Join my Telegram Channel to comment and ask questions here: GCR_RealTimeNews

Follow me on Twitter: @Real_AwakeIn3D

“Tidbits From TNT” Friday Morning 11-22-2024

TNT:

Tishwash:  MP Hassan Al-Asadi brings good news to a group of those covered by Article 140

Member of Parliament Hassan Al-Asadi announced, today, Thursday (November 21, 2024), good news for a group of those covered by Article 140.

Al-Asadi said in a statement received by "Baghdad Today", "After continuous follow-up with the Committee for the Implementation of Article 140 of the Constitution of the Republic of Iraq, approval was obtained to promote the transactions of the article for those who have a receipt for the years (2018, 2019, 2020) on Sunday, corresponding to 11/24/2024, at the committee's office in the city of Nasiriyah."  link

Tishwash:  Because it contains a political aspect.. Parliamentary Wealth: The Oil and Gas Law faces difficulties

Member of the Parliamentary Oil, Gas and Resources Committee, Ali Abdul Sattar, confirmed today, Thursday, that the Oil and Gas Law has been facing difficulties since 2008. 

Abdul Sattar told Al-Maalouma Agency, “The oil and gas law faces difficulties within the House of Representatives because it contains a political aspect between the region and the center.” 

He added that "the law regulates financial matters and oil management for all governorates, especially the governorates producing oil and gas," noting that "the reason for the law's suspension is that it contains points of contention with the region."

He explained that "the law is still in the government's registry and has not been sent to the House of Representatives, despite the ongoing dialogues and discussions between the Baghdad government and the regional government." 

He added, "The dispute is still ongoing between Baghdad and Erbil over the oil file, and we are waiting for it to be resolved and for the law to be sent to the House of Representatives for discussion and approval."  link

************

Tishwash:  Economist: Government should exploit rising oil prices and implement sound financial management

An economic expert called on the government to exploit the circumstances of rising oil prices and implement sound financial management.

Rashid Al-Saadi told Al-Furat News Agency: "The rise in global oil prices is due to the impact of political circumstances. With the intensification of the Russian-Ukrainian war and the challenges facing the region, in addition to the decision of the International Criminal Court regarding Netanyahu and his Minister of War, and Israel's threats to Iraq and the pressure in the region, oil importing companies are being prompted to take precautions and be careful, and the political and security factor is the decisive and influential factor in the rise in oil prices."

He explained that "Iraq's benefit from this rise is that every dollar in which oil rises serves Iraq by no less than a billion dollars annually and strengthens its budget according to the size of its production."
Al-Saadi stressed, "The government must exploit the circumstances and the rise, because as soon as there is stability in the near or distant future, oil prices may drop significantly. This is a call for the government to manage the state's finances in a rational manner."   link

Tishwash:  Dollar-Dinar Exchange Rate Gap: Causes and Treatments 

Iraq relies in its monetary policy to monitor the change in the value of its dinar against the dollar on a fixed exchange rate peg system, as the overall policy aims

to reduce the gap between the official and actual exchange rates and stabilize it close to the target exchange rate, curbing inflation, stimulating markets, commercial, financial and investment transactions, and stimulating growth.

Therefore, reducing the exchange gap at the target exchange rate level is one of the prominent issues facing the economic policy maker in Iraq in order to limit the major repercussions that go beyond the economic scope and crystallize significantly in the social stability of the country.

This gap becomes more evident through the variation in the dollar exchange rates and the fluctuation of the real value of the dinar, either positively generating revenue or negatively generating additional costs that cause repercussions on purchasing power without taking into account individuals and economic units, negatively affecting local and foreign savings and investment. The more the gap varies, the greater the economic cost of investment and the higher the levels of inflation, which increases the suffering of the limited-income family sector.

It has become known that the size of the Iraqi economy's GDP depends very heavily on the oil dollar, which is the main source of the Ministry of Finance's resources, instead of the non-oil dollar, which is called the non-oil export dollar, which has very low flexibility, resulting in a sharp decline in credit deposits in the accounts of traders exporting goods in Iraqi banks in exporting countries.

This dependence exposes the exchange gap to fluctuations in the global oil market. When global oil prices rise, we witness a decrease in the exchange gap due to the increase in the supply of the dollar, while in contrast, during periods of economic recession or when oil prices fall, the gap increases significantly when the government is unable to provide an adequate supply of dollars in the official window for buying and selling dollars. In such cases, traders are forced to search for alternatives through the parallel market, which exacerbates price pressures on the weakest groups.

Referring to the reasons that widened the exchange gap, they are multiple. In addition to what was mentioned above, the reasons can be traced according to the axis of indirect reasons that are linked to the country's trade policy and the problems of border crossings related to dollar smuggling, including those related to activating the role of crossings as an authentic source of revenue. There are also indirect reasons that have a political and security nature and medium- and long-term repercussions on the movement of money and investment.

While economic and monetary reasons stand out at the forefront of direct or technical reasons, some of them are related to the nature of the banking system and the extent of its credit capacity and the level of banking compliance with the monetary and credit conditions of the Federal Reserve, which affects the levels of supply of the petrodollar.

Therefore, we find that many international banks refuse to work as correspondent banks due to the low credit rating of our banking system as a result of smuggling operations, money laundering and sanctions that affect a third of Iraqi banks. Therefore, we find that they do not stand up in this regard, except for banks that have external partnerships with Arab banking capital. They derive international acceptance from the quality of the credit rating of those countries, which facilitates the process of opening accounts with correspondent banks. Therefore, there is fear that pressures on the dollar exchange rate will increase, widening the gap.

It is also noted that among the technical reasons that led to the widening of the gap are the successive changes in the official exchange rate threshold taken by successive government administrations.

The gap witnessed a transition at the end of 2020 from the stable situation in which the gap between the official exchange rate of 0.118 dinars per dollar and the actual exchange rate of 1,200 dinars narrowed, to raise the threshold in 2021 to 1,450 due to the decision of the Central Bank at the time. Then the threshold rose this time after the Council of Ministers approved in February 2023 the decision of the Board of Directors of the Central Bank of Iraq to amend the official exchange rate of the dollar against the dinar, to the threshold of 1,300 dinars per dollar.

By following the parallel dollar exchange rate in November of this year 2024, we find that it has reached the limits of 1500 dinars per dollar and exceeded it, and that the Central Bank’s selling price for cash dollars, transfers, documentary credits, and international settlements for electronic cards is at the threshold of 1300 dinars per dollar. Therefore, it is concluded that the gap in the dollar exchange rate against the dinar is still widening despite the pressures of the Federal Reserve and the Central Bank’s efforts towards compliance.

Therefore, dealing with the gap between official and actual spending should require comprehensive, integrated policies that target technical and non-technical treatments within medium- and long-term planning, the most important of which are:

Reforming the structure of the banking system, developing its efficiency, and raising the levels of its credit capacity and the flexibility of its banking compliance.

Developing tools for targeting inflation and exchange rates, which would help reduce the exchange gap and achieve price stability.

Implementing solid reforms in the financial and monetary sectors to enhance the flexibility of banking performance in accordance with the SWIFT global financial settlement system.

Coordination between fiscal and monetary policies to achieve the target exchange rate by rationalizing government spending and tightening control over the money supply.

Economic policy should enhance transparency in all financial and banking operations, by implementing clear and strict control systems to contain opportunities for corruption and exploitation of the exchange gap.

Deepening the mechanisms of border control and combating administrative corruption to increase total revenue.

Government authorities must maintain and enhance security and political stability to contribute to building confidence between local and foreign investors on the one hand and the investment environment on the other, which will stimulate further stability and growth.

Formulating an economic policy that targets technical solutions to expand the non-oil production base, and serious planning on how to diversify sources of income for the overall economy. The path of developing the agricultural and industrial sectors will be the decisive factor in reducing imports and stimulating the growth of fixed capital accumulation for the private sector. Hence, the demand for the dollar for consumer import purposes will decrease.  link

Mot: .. Happy New Day!

Mot: .... Now I Get it!!!