“Tidbits From TNT” Wednesday Morning 7-24-2024 — Dinar Recaps (2024)

TNT:

Tishwash: American procrastination and Iraqi insistence.. Parliament announces: Foreign forces cannot remain - Urgent

Today, Wednesday (July 24, 2024), the representative of the Al-Fatah Alliance, Mukhtar Al-Moussawi, praised the government’s insistence and seriousness in resolving the issue of expelling foreign forces from Iraq.

Al-Moussawi said in an interview with "Baghdad Today", "The Iraqi government headed by Mohammed Shia al-Sudani is serious and determined to end the file of removing foreign forces from all Iraqi territories as soon as possible, and for this reason it is negotiating with the American side at a very high pace."

He added, "Certainly, the American side is seeking to procrastinate and delay, but in return there is an Iraqi government will to resolve the issue, supported politically and popularly, and it is not acceptable in any way for any foreign force to remain under any name."

Although it was announced that ending the mission of the international coalition in Iraq was one of the most important topics of Al-Sudani’s visit to Washington, which took place in mid-April, the bulk of the talks, discussions and signed memoranda of understanding focused on creating or moving the relationship from the security aspect to other development aspects, but it did not include ending security cooperation completely, while American statements deny any talk or intention to withdraw completely from Iraq. link

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Tishwash: Iraqi banking system.. A significant increase in the number of bank accounts and the volume of deposits for citizens

The banking system in Iraq is gradually regaining citizens’ confidence with the increase in the number of bank accounts in the country.

This increased confidence leads to an increase in the volume of deposits available for investment, which supports economic activity and contributes to achieving sustainable development. The impact of membership in international bodies is not limited to enhancing financial stability and confidence in the banking system, but extends to supporting economic development. Increasing the volume of deposits available for investment can contribute to financing development projects, providing loans to small and medium enterprises, and creating new job opportunities.

Malaysia:
Malaysia joined the International Association of Deposit Insurers, which helped improve deposit insurance policies and increase confidence in the banking system. This accession led to an increase in the volume of bank deposits and greater financial stability, which contributed to supporting economic growth in the country.

South Korea:
After the Asian financial crisis in the late 1990s, South Korea joined the International Association of Deposit Insurers. International membership helped restore confidence in the banking system and stabilise the national economy, allowing South Korea to achieve a rapid economic recovery. link

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The role of the IraqStock Exchange in supporting monetary policy in Iraq

Lawyer and banking expert Saif Al-Halfi

The world is now moving with rapid steps racing with the wind in the role of stocks supporting monetary policies, especially since the old classical theories considered that stock markets are not among the tools of monetary policy. This concept reflected a traditional understanding where monetary policy focused on tools such as interest rates, monetary facilities, and banks’ cash reserves.

The development of theories and the difference in models of economic studies differ with the development of research, studies and the financial market from one country to another. It is difficult to make a theory applicable to all countries and different economies, from emerging economies to more complex economies. Because of this dialectic based on trying to understand and establish the nature of the relationship between financial markets and monetary policy, which has become more evident in many countries.

Stock markets have become part of the general economic strategy of governments and central banks, especially after the introduction of the idea of ​​cryptocurrencies and digital banks, as they directly affect consumption, investment and economic confidence.

Iraqi market

In the case of theIraqi model and long years of economic stagnation as a rentier economy that relies primarily on oil to finance its annual budgets and the state of price speculation on the stability of the dollar exchange rate in local markets or what is known as the parallel dollar situation, we can🤔look at the IraqiStock Exchange as a tool supporting monetary policy and influencing the state of the rentier economy. This is done through:

1- Encouraging local and foreign investment. The stock market can be a quick and important means of attracting local capital, especially cash in circulation, and trying to return it to banking incubators and investing it in short-term investments through price maneuvers on the shares of emerging companies listed on the IraqStock Exchange or long-term investments by pumping these cash blocks into the shares of profit generating companies, which are companies that regularly achieve rewarding annual financial profits, thus enhancing the idea of​​withdrawing the accumulated cash liquidity and returning it to banking incubators in a way that reduces immediate and temporary speculation on the parallel dollar in the local market.

It also creates real opportunities for foreign capital moving between emerging markets to enter, which provides them with the opportunity for quick entry, profitable investment and safe exit.

2- Diversifying the economy from excessive dependence on oil. The stock market can be used to encourage local and international investments in sectors that create greater economic diversity than usual and a state of rapid sales and price maneuvers for shares of promising companies in Iraq.

3- Absorbing liquidity The stock market can play an important roleinabsorbing excess liquidity in the economy, which helps control inflation. This depends on the ability of the Iraqi marketto be quick in price transactions from buying and selling through the shares of the companies listed in it and pressuring brokerage firms to apply and activate the latest smart systems and phone applications for daily sales and contracts executed in it, as well as encouraging the publication of financial data for Iraqi companies on international platforms that encourage understanding the culture of Iraqi company shares.

One of the most important economic theories that support that financial markets can be an effective tool in monetary policy is the Wealth Effec theory, which is summarized and almost consistent with understanding the dialectic of the Iraqi economy and the stock market economy.

More consistent with theIraqi model is the Wealth Effect Theory, written by Gregory Mankiw. Its summary is that the rise in the value of financial assets among individuals gives them an incentive to withdraw money and re-inject it into purchasing new assets and stocks in order to increase wealth and gives them a feeling of wealth, which prompts them to spend on consumption and develop the national economy.

In conclusion, all these theories and studies support the idea that financial markets can be an effective and successful tool in achieving economic stability and enhancing growth, especially in emerging markets such as Iraq.If the Iraqi stock market is exploited in the right way that attracts local and international investments, it can help diversify the Iraqi economy and create new opportunities that drive economic integration in Iraq,making the Iraqi Stock Exchange a valuable tool for monetary policies. link

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