GCR Update: A New Monetary Era Is Already Here.

[Luigi1]

Here's some articles of GCR interests...

The top story is:

GCR Update: A New Monetary Era Is Already Here.

A lot is happening right now in real time.

Treat as rumors.  Not verified.  Your opine.

 

 

 

 

 

Rob Cunningham:  GCR Update: A New Monetary Era Is Already Here.

ARTICLE:  RIPPLE: THE CONNECTIVE INFRASTRUCTURE OF PROGRAMMABLE GLOBAL FINANCE.

A new monetary era has taken form.

 

The G20 is advancing financial modernization, digital assets, ISO 20022 harmonization, longer payment-system operating hours & better cross-border payments.

 

DTCC is bringing tokenization into production across an infrastructure responsible for more than $114 trillion in assets.

-Ripple Prime now extends Ripple directly into institutional brokerage, clearing,  financing & fixed-income markets.

These forces converge around one requirement:

Capital must become programmable, interoperable, liquid and globally mobile.

Ripple built for this moment.

 

ONE COMPANY. SEVEN INSTITUTIONAL CAPABILITIES.

1  Ripple Prime — Brokerage • Clearing • Financing.
2  Ripple Custody — Institutional Asset Control.
3  RLUSD — Stable Settlement Liquidity.
4  XRP — Neutral Bridge Liquidity.
5  XRPL — Issuance • Exchange • Ledgering.
6  Ripple Payments — Global Value Movement.
7  Ripple Treasury — Enterprise Cash & Liquidity Management.

 

Together they create one connected economic loop:

ORIGINATE → TOKENIZE → CUSTODY → FINANCE → TRADE → COLLATERALIZE → CONVERT → SETTLE → RECONCILE.

That integration is Ripple’s competitive advantage.  Ripple does not merely provide another payment rail, stablecoin, blockchain, custody platform or prime broker.  Ripple connects the entire institutional value chain.

$114 TRILLION BECOMES MORE PRODUCTIVE
Tokenization changes what assets can do.  AI changes how frequently they can do it.  As markets move toward continuous trading, collateral optimization, liquidity sourcing and settlement, the same capital can work harder:

-50× turnover → $5.7 quadrillion annually.
-60× turnover → $6.84 quadrillion annually.
-70× turnover → $7.98 quadrillion annually.

 

The transformation is not simply more money.  Merchant Services & Payment Systems.  It is more utility from every Dollar of existing value.

-More velocity.
-More liquidity.
-More collateral mobility.
-More transactions.
-More settlement.
-More interoperability.

 

RIPPLE NEEDS A FRACTION TO BUILD AN EMPIRE:
At $6–$8 quadrillion of modeled annual institutional flow:

0.01% connected → $600–$800 billion.
0.10% → $6–$8 trillion.
0.50% → $30–$40 trillion.
1.00% → $60–$80 trillion.

 

Every additional institutional connection can strengthen the utility of Ripple Prime, Custody, RLUSD, XRP, XRPL, Payments & Treasury.

-Each product strengthens the others.

-Each new customer expands the network.

-Each new asset creates another potential liquidity relationship.

-Each new market creates another pathway through the stack.

 

2026–2031: THE RIPPLE MOMENT:

The financial system is becoming programmable.
• Securities become programmable.
• Cash becomes programmable.
• Collateral becomes programmable.
• Treasury becomes programmable.
• Liquidity becomes programmable.
• Markets become continuous.

 

Ripple Sits At Their Intersection:

The opportunity is no longer simply moving money across borders.  It is connecting assets, institutions, currencies, liquidity & ledgers across borders & markets.  That is the 5-year Ripple future:

ONE CONNECTED STACK.

ONE GLOBAL VALUE NETWORK.
INSTITUTIONAL FINANCE, MADE PROGRAMMABLE.

 

The World Is Building The New Financial System.

 

 

GLOBAL  INVESTORS MOVE $46 BILLION INTO CASH: JOBS SHOCK REIGNITES RATE RISKS & REPRICES GLOBAL CAPITAL.

ARTICLE:  Global investors are moving billions toward money-market funds & shorter-duration assets as a stronger-than-expected US jobs report, elevated oil prices & bond-market stress increase the risk that interest rates will remain higher for longer.

 

OVERVIEW:

$46.1 Billion Into Money Funds: Global money-market funds attracted $46.1 billion in net inflows through September 2, the largest weekly inflow since early August, as investors became more cautious amid bond-market & geopolitical stress.

 

Jobs Shock Changes the Fed Equation: US employers added 162,000 jobs in August, nearly three times the expected gain, while unemployment remained at 4.1%, putting a September Fed rate hike firmly back on the table.

 

Capital Is Being Repositioned: Higher UST yields & uncertainty over inflation & interest rates are encouraging investors to favor liquidity & shorter-term assets, creating another measurable shift in global capital allocation.

 

KEY DEVELOPMENTS

1. $46.1 Billion Moves Toward Cash.

Global money-market funds recorded $46.1 billion in net inflows during the week ending September 2.  Reuters reported that this was the largest weekly inflow since August 5, reflecting  investor caution as global bonds sold off & US-Iran tensions increased.

Money-market funds provide investors with liquidity and relatively short-duration exposure.  The movement therefore offers a measurable indication that investors were becoming more defensive.  The significance is not simply the amount of money involved.  It is where investors chose to put it.

2. Investors Are Reducing Long-Duration Exposure.

Bond-fund inflows slowed to approximately $10 billion, their lowest level in five weeks, while short-term bond funds experienced their strongest inflows since July.  At the same time, government & corporate bond funds experienced outflows.  This suggests that investors are not necessarily abandoning fixed income altogether.  Instead, they are becoming more cautious about locking money into longer-term securities while the direction of inflation & interest rates remains uncertain.  That distinction is important.

3. The US Jobs Report Delivered a Major Surprise.

Today's employment report changed the financial picture again.  The US economy added 162,000 jobs in August, far above the approximately 56,000 jobs economists had expected.  The unemployment rate remained at 4.1%, while labor-force participation increased to 61.6% from 61.4% in July.  The report indicates that the US labor market was considerably stronger than investors had anticipated.  That matters because a resilient labor market gives the Federal Reserve less reason to quickly ease monetary policy if inflation remains elevated.

4. Rate-Hike Expectations Returned.

The stronger jobs data immediately changed expectations for the Federal Reserve's September meeting.  Reuters reported that markets increased the probability of a September rate hike to approximately 61%, reversing some of the easing in expectations that followed Fed Governor Christopher Waller's comments on Thursday.  That creates a significant shift from just one day earlier.

Yesterday: markets were becoming more confident that the Fed could hold rates.  Today: stronger employment data have put another rate increase firmly back into consideration.  The next major test will be the upcoming inflation data, which will help determine whether the Fed can justify another increase.

5. Treasury Yields Rose as the Cost of Money Was Repriced.

The jobs report immediately pushed Treasury yields higher.  Reuters reported that the 10-year Treasury yield moved toward 4.80%, while the stronger employment data reinforced expectations for potentially tighter monetary policy.  This is significant because the Treasury market is already dealing with several pressures: Large U.S. deficits + heavy Treasury issuance + elevated inflation risks + higher oil prices + changing Fed expectations.  Today's jobs report adds another factor: A stronger economy may allow interest rates to remain higher for a longer period.

6. Oil Adds Another Inflationary Pressure.

The employment shock is occurring against a backdrop of elevated energy prices.  Renewed US-Iran tensions have pushed Brent crude toward $100 per barrel, increasing the possibility that higher energy costs could slow the progress of disinflation.  This creates a difficult environment for the Federal Reserve.  A strong labor market argues against rapid monetary easing, while higher energy prices create another potential source of inflation.  For  investors, that combination makes liquidity & shorter-duration investments more attractive.

 

WHY IT MATTERS:

Higher interest rates increase financing costs for households, businesses & governments.  A stronger labor market could support economic activity, but sustained high borrowing costs can eventually weigh on investment & consumption.

Markets:

The movement of $46.1 billion into money-market funds shows that investors are actively repositioning capital.  Today's jobs report adds another reason for that caution by increasing uncertainty about the future path of interest rates.

Policy:

The Federal Reserve now faces a difficult combination of stronger employment, elevated oil prices and persistent inflation risk.

The September policy decision will depend heavily on whether upcoming inflation data confirm or contradict today's employment signal.

Global System:

US interest rates influence borrowing costs & capital flows around the world.  When investors can earn attractive returns from relatively liquid dollar assets, capital can move toward the US & away from riskier or lower-yielding markets.

Investing:

That can place additional pressure on emerging-market currencies, sovereign debt & global liquidity.

 

WHY IT MATTERS TO FOREIGN CURRENCY HOLDERS:

-Dollar Strength:  Higher US rates can increase demand for Dollar-denominated assets & support the Dollar relative to some   other curencies.

-Exchange Rates:  A change in Fed expectations can produce rapid currency movements.

-Capital Flows:  The $46.1 billion money-market inflow demonstrates that global investors are actively changing their allocation   toward liquidity.

-Emerging-Market Currencies:  Higher US yields can make it more expensive for emerging economies to attract & retain   foreign capital.

-Purchasing Power:  Higher oil prices combined with currency movements can increase the cost of imported energy & other   internationally traded goods.

For foreign-currency holders, the important signal is not one day's Dollar movement.   It is whether higher US yields begin creating a sustained change in global capital allocation.

 

IMPLICATIONS FOR THE GLOBAL RESET:

Pillar 1:  Assets.

The movement of $46.1 billion into money-market funds is evidence that investors are reassessing duration & liquidity.

If the market increasingly expects higher rates to persist, capital may continue moving away from long-duration assets & toward cash, short-term securities & other liquid instruments.  That represents a change in how global capital is being positioned.

Pillar 2:  Debt.

Higher interest rates create greater pressure on highly indebted governments, companies & households.  The issue is particularly important for governments because every refinancing cycle can occur at a different— & potentially higher—cost.  Today's jobs report therefore matters beyond employment.  A stronger economy can give the Fed more room to keep rates elevated, while higher rates increase the cost of financing an already heavily indebted global system.

 

CONCLUSION:

The $46.1 billion flow into global money-market funds was already an important signal that investors were becoming more cautious.  Today's employment report gives that capital movement a new context.  The US economy added 162,000 jobs—nearly three times expectations—while unemployment remained at 4.1%, forcing markets to reconsider the possibility of another Federal Reserve rate increase.  At the same time, UST yields moved higher & oil remained elevated because of the continuing conflict surrounding Iran & the Strait of Hormuz.  The result is a financial system facing stronger-than-expected US employment, elevated energy prices, higher Treasury yields & investors actively shifting toward liquidity.  That combination matters because the global financial system is highly sensitive to the price of money.  For foreign currency holders, the next phase may be determined less by whether the Fed cuts or raises rates at one particular meeting & more by whether higher US yields begin producing a sustained redistribution of global capital.

When investors move billions toward liquidity while the cost of money rises, the movement of capital itself becomes a signal that the global financial system is repricing risk, return and duration.

 

 

CHINESE  BANKS RETURN TO UST: DOLLAR DEPOSITS REVEAL A SHIFT IN GLOBAL CAPITAL FLOWS.

ARTICLE:  Chinese commercial  banks are increasing purchases of US Treasuries after attracting more Dollar deposits, highlighting the complicated relationship between de-dollarization, Dollar liquidity & global demand for US government debt.

 

OVERVIEW:

Chinese  Bank Shift: Chinese commercial banks have been buying US Treasuries after raising interest rates on USD deposits, according to sources cited by Reuters.  Dollar Liquidity Is Rising: China's foreign-exchange deposits reached approximately $1.18 trillion by the end of July, up 17.9% from a year earlier as exports & trade surpluses generated more Dollar liquidity. A Complicated Dollar Story: The development shows that China's financial system can pursue greater use of the Yuan while Chinese banks simultaneously find USD assets attractive, particularly when Treasury yields exceed returns available in China's domestic bond market.

 

KEY DEVELOPMENTS:

1. Chinese Banks Are Buying Treasuries Again. 

Chinese commercial banks have increased purchases of UST securities in recent months, according to people familiar with the transactions.  The purchases follow an increase in the interest rates banks are offering customers on USD deposits.  That represents an important shift in behavior because the banks are effectively attracting Dollar liquidity from customers & then putting some of those Dollars into US government securities.  The development does not mean China has reversed its longer-term reduction in official Treasury holdings. Instead, it shows that commercial banks can respond to market incentives even while China's broader financial strategy continues to diversify.

2. Dollar Deposits Are Becoming More Attractive Inside China.  

Chinese banks have been raising rates on Dollar deposits, with some smaller & foreign banks offering rates above 3% & in some cases approaching 4%, according to Reuters sources.  That compares with Yuan deposit rates of roughly 0.95% at major state-owned banks.  The difference creates an incentive for Chinese customers to retain or increase Dollar balances rather than immediately converting those funds into Yuan.  For banks, those deposits also provide a pool of Dollar funding that can be invested in relatively high-yielding UST securities.

3. China's Dollar Liquidity Has Increased Sharply.

China's foreign-exchange deposits reached $1.18 trillion at the end of July, representing a 17.9% increase from a year earlier.  Reuters attributed the increase partly to China's strong exports & record trade surpluses.  That means a significant amount of Dollar liquidity is accumulating within China's financial system—even as policymakers continue to manage the Yuan & encourage development of alternatives to Dollar-based finance.  This is one of the most important aspects of the story.  Dollar diversification does not necessarily mean immediate Dollar disappearance.  Global financial systems can become more diversified while still maintaining substantial demand for Dollars.

4. China's Official Treasury Holdings Tell a Different Story.

The latest official Treasury data provide an important counterpoint.  China's reported holdings of UST fell to approximately $633.4 billion in June, down from $659.3 billion in May & the lowest level since September 2008.  China remained the 3rd-largest foreign holder of Treasuries, but its official holdings were down more than 13% from a year earlier.  Therefore, the new commercial-bank purchases should not be interpreted as proof that China's government has begun rebuilding its official Treasury position.  The more significant development is that private banking flows are responding to Treasury yields & Dollar liquidity even while official Chinese Treasury holdings remain substantially below their historical levels.

5. The Global Capital-Flow Picture Is Becoming More Complex:

This development comes at a time when the Treasury market itself is undergoing significant repricing.  UST yields have risen sharply, while Chinese domestic bond yields remain comparatively low.  That makes Dollar-denominated US government securities more attractive to financial institutions seeking yield on their dollar assets.  The result is an increasingly complicated global capital picture: China accumulates dollar liquidity → banks attract dollar deposits → some dollars move into Treasuries → Treasury demand receives support.  At the same time: China continues developing alternative payment & reserve arrangements → official Treasury holdings remain below historical levels → global  financial diversification continues.  These developments can happen simultaneously.

 

WHY IT MATTERS:

China's enormous trade surplus generates substantial foreign-exchange liquidity.

How that liquidity is held and invested can influence both China's  currency management and the international financial system.

Markets:

The development demonstrates that Treasury demand does not come only from foreign governments & central  banks. Commercial banks, corporations, investment funds & private investors can also become important channels through which international Dollars ultimately flow into US government debt.

Policy:

Chinese policymakers face a delicate balance.  A stronger Yuan can reduce the cost of imports & increase purchasing power, but rapid appreciation can create challenges for exporters & domestic economic conditions.  Encouraging Dollar deposits can help banks manage Dollar liquidity while potentially reducing pressure for those Dollars to be immediately converted into Yuan.

Global System:

The most important takeaway may be that the global monetary system is becoming more complex rather than simply moving from one currency to another.  China can promote Yuan internationalization & alternative financial infrastructure while Chinese financial institutions continue using dollars and UST securities when market conditions make them attractive.

 

WHY IT MATTERS TO FOREIGN CURRENCY HOLDERS:

Dollar demand: Rising dollar deposits in China demonstrate that int'l demand for Dollars can remain strong even while countries pursue currency diversification.  Treasury yields: Higher US yields can attract foreign financial institutions seeking better returns on Dollar assets.

Currency Values: Capital moving between Dollars, Yuan & other currencies can influence exchange rates & the relative purchasing power of currencies.

Capital Flows: Foreign-currency holders should watch where int'l Dollar liquidity is moving—not simply whether a country officially increases or decreases its Treasury holdings.

Diversification: The larger trend is toward a more complicated currency system in which multiple currencies & financial assets can coexist rather than one immediately replacing another.

 

IMPLICATIONS FOR THE GLOBAL RESET:

Pillar 1:  Assets.

The Treasury market remains a major destination for global capital even as countries diversify their reserve & payment systems.

China's commercial-bank activity demonstrates that dollar assets can continue attracting capital because of yield and liquidity, even while official institutions reduce their exposure.

Bonds: That makes the future of the Treasury market a key indicator of how global investors are reallocating capital.

Pillar 2: Trade.

China's expanding Dollar liquidity is closely connected to its export strength & trade surplus.  Trade generates the foreign currency that financial institutions must ultimately hold, convert or invest.  As global trade becomes more diversified geographically and financially, the question is increasingly not simply which currency dominates trade, but where the resulting foreign-currency liquidity is ultimately invested.

 

CONCLUSION:

The latest Chinese banking activity challenges the idea that global financial diversification is a simple story of “China abandoning the Dollar.”

Banking:

The evidence points to something considerably more complicated.  China's official Treasury holdings have fallen dramatically from their historical highs, yet Chinese commercial banks are now attracting more Dollar deposits and purchasing UST because the returns can be attractive relative to China's domestic bond market.  That creates an important distinction between de-dollarization & reduced Dollar usage.  The global financial system may be moving toward greater currency diversification without eliminating the Dollar's role in trade, banking, liquidity & investment.  For foreign currency holders, that is an important distinction. The next phase of the global monetary system may be defined less by one currency replacing another & more by competing currencies operating within a more diversified global capital structure.

China's relationship with the Dollar is not simply disappearing—it is changing & the movement of those Dollars may tell us more about the future financial system than official reserve headlines alone.

 

[Luigi1]

Here's another article related to the above...CBI re-assures depositors, no liquidity issues facing private bank failures in Iraq..Depositors are insured up to 60%...

 

 

 

The CBI Reassures Depositors: No  Bank Failures & Liquidity exceeds 60%.

ARTICLE:   The CBI reassured depositors on Saturday (September 5, 2026) about the safety of the  banking sector, stressing that “imposing supervisory or guardianship committees on a licensed bank does not mean its bankruptcy, but rather comes within the framework of precautionary & legal supervisory measures aimed at protecting the rights of depositors & ensuring the stability of banking operations.”

 

The bank stated in a statement received by "Baghdad Today" that "all licensed  banks participate in the Deposit Guarantee Company, which is responsible for compensating depositors in the event that the bank fails to meet its obligations, in accordance with applicable laws."

 

He added that "depositors' funds are protected under laws, regulations & instructions," stressing the need to follow up on bank procedures, particularly those related to ensuring depositors' access to their funds without delay.

 

He pointed out that "the Iraqi banking system has sufficient liquidity to enable it to manage its operations efficiently in the face of potential pressures," indicating that "the ratio of liquid assets to short-term liabilities exceeds 60%."

 

It also emphasized the application of the best international banking standards to the banking sector, ensuring its safety & compliance and providing competitive traditional & digital financial services, without compromising the rights of depositors.

 

[Luigi1]

Here's some more articles related to the above...Can Iraq overcome the internal political termoi?

 

 

 

The Government Faces Two Tests: Autonomy & The Economy. Will It Succeed In Overcoming The Political & Administrative Turmoil?

ARTICLE:  Political analyst Majashaa Al-Tamimi confirmed on Saturday that the ambiguous scene in Iraq reflects a structural & chronic governance crisis, which is mainly due to the sectarian & partisan quota system that prioritizes narrow interests over the national interest. 

 

Al-Tamimi told Al-Maalouma that "the absence of sovereign decision-making in Iraq has led to weak administrations that lack strategic vision & rely heavily on a rentier  economy based on oil."

 

Al-Tamimi added that “talking about restricting weapons cannot take place in light of Iraq’s lack of full autonomy and the absence of a serious political will capable of putting an end to foreign interference in all its forms,” stressing that “establishing the authority of the state requires first & foremost an independent sovereign decision & a clear political will.”

 

He pointed out that "combating corruption & economic reform require moving from patchwork solutions to comprehensive institutional reforms, through automating administration, diversifying sources of income & strengthening the independence of the judiciary & activating its role in combating corruption."

 

He continued, "Iraq's future remains suspended between the continuation of the political & administrative chaos and the emergence of a genuine reformist will be capable of transcending the conflicts of power-sharing and spoils & placing the national interest at the forefront of priorities."

 

 

Employee Salaries: Between The Embers Of Economic Skepticism & The Cool Reassurances.

ARTICLE:  The issue of employee and retiree salaries has returned to the forefront of the Iraqi economic scene, amidst a clear discrepancy between official & parliamentary assurances regarding the availability of the necessary liquidity to secure monthly payments & warnings against the state's continued reliance on short-term solutions without a comprehensive economic vision to address chronic financial imbalances.

 

The salary issue holds exceptional importance in Iraq, given its direct impact on millions of employees, retirees & their families, as well as its repercussions on market activity, consumption & economic activity in general.

 

This makes any discussion of potential difficulties in funding salaries a matter of widespread concern among the Iraqi public.

 

Despite the recurring concerns about the state's ability to continue paying salaries, the Parliamentary Finance Committee asserts that the current financial situation does not warrant alarm & that the relevant government agencies are committed to providing the necessary funds for timely disbursement.

 

In this context, Jamal Kojar, a member of the Parliamentary Finance Committee, emphasized that the Prime Minister's office & the Ministry of Finance bear direct responsibility for managing the salary file, indicating that official bodies have confirmed their commitment to securing the necessary funds and that there are no obstacles preventing their disbursement.

 

Kujer told Al-Maalomah  News Agency that "the relevant official bodies, foremost among them the PM's office & the Ministry of Finance, have affirmed their commitment to securing the funds for salaries without any obstacles."

 

He added that "the country's financial resources have begun to recover significantly, particularly oil revenues, which have recorded better levels compared to previous months," indicating, according to the available data, the government's financial capacity to continue meeting its monthly obligations.

 

Despite these assurances, concerns about the future of financial stability persist, especially given the Iraqi  economy's continued heavy reliance on oil revenues, making it more vulnerable to fluctuations in crude oil prices & global market movements.

 

Critics of  economic policies argue that the continued focus on securing salaries & operational spending does not constitute a genuine solution to the financial problem, but rather postpones crises to later stages, unless this is accompanied by reforms capable of diversifying income sources & increasing the contribution of productive sectors to the national economy.

 

In this context, MP Abdul Hamza al-Khafaji asserted that the government lacks clear economic solutions to address the financial crises, indicating that its primary focus is on securing employee salaries.

 

Al-Khafaji told the Al-Maalomah  news agency, “The government has no economic solutions beyond securing employee salaries,” explaining that “the Iraqi economy needs a comprehensive vision that goes beyond addressing monthly obligations.”

 

He pointed out that "relying on oil as the main source of revenue makes the economy vulnerable to fluctuations and crises," calling for the development of concrete plans to diversify income sources & strengthen productive sectors.

 

Salaries: Between Social Entitlement & Financial Management:

Ensuring salaries is a fundamental obligation for the state, but its continued prominence on the list of financial priorities raises questions about the economy's ability to transition from managing monthly obligations to building a more sustainable financial base.

 

An economy dependent on a single primary resource remains vulnerable to external influences not entirely under government control, most notably fluctuations in oil prices, export volumes & revenues. This makes financial stability highly dependent on the performance of the oil sector.

 

Therefore, ensuring regular salary payments does not necessarily guarantee overcoming the economic crisis, but rather reflects the state's ability to meet its basic obligations in the short term.

 

A genuine solution lies in broader reforms encompassing revenues, expenditures, public administration & productive sectors.

 

Given these circumstances, calls are growing from both parliamentary & economic circles to reduce dependence on oil by revitalizing the industrial, agricultural & investment sectors, supporting the private sector & increasing non-oil revenues.

 

Al-Khafaji told the Al-Maalomah  news agency, “The government has no economic solutions beyond securing employee salaries,” explaining that “the Iraqi economy needs a comprehensive vision that goes beyond addressing monthly obligations.”

 

He pointed out that "relying on oil as the main source of revenue makes the economy vulnerable to fluctuations and crises," calling for the development of concrete plans to diversify income sources & strengthen productive sectors.

 

Salaries: Between Social Entitlement & Financial Management:

Ensuring salaries is a fundamental obligation for the state, but its continued prominence on the list of financial priorities raises questions about the economy's ability to transition from managing monthly obligations to building a more sustainable financial base.

 

An economy dependent on a single primary resource remains vulnerable to external influences not entirely under government control, most notably fluctuations in oil prices, export volumes, and revenues. This makes financial stability highly dependent on the performance of the oil sector.

 

Therefore, ensuring regular salary payments does not necessarily guarantee overcoming the economic crisis, but rather reflects the state's ability to meet its basic obligations in the short term.  A genuine solution lies in broader reforms encompassing revenues, expenditures, public administration & productive sectors.

 

Given these circumstances, calls are growing from both parliamentary & economic circles to reduce dependence on oil by revitalizing the industrial, agricultural & investment sectors, supporting the private sector, & increasing non-oil revenues.

 

Al-Khafaji emphasized that addressing the financial crisis requires “economic & administrative reforms, reducing waste and corruption & improving the management of public resources.” He stressed that "securing salaries should be part of a comprehensive economic plan, not the sole solution to the financial problems."

 

He also emphasized the need to adopt economic policies capable of creating job opportunities, stimulating the private sector & increasing non-oil revenues, calling on the government to provide sustainable solutions that guarantee the country's financial & economic stability.

Immediate Stability Or A Sustainable Solution?

While assurances regarding the availability of liquidity seem capable of calming concerns about salaries in the short term, the broader debate extends beyond the issue of disbursing monthly payments to the future of public finances & their ability to withstand any potential revenue shocks.

 

This debate presents the government with a dual dilemma: maintaining the regularity of salaries as a social and economic priority, while simultaneously transitioning to long-term policies that reduce the fragility of public finances and provide the Iraqi economy with more diversified and stable sources of income.

 

Thus, the salary file remains secure according to current parliamentary & official assurances. However, ensuring its long-term sustainability depends on the state's ability to address the root causes of economic imbalances & transition from managing the financial crisis month by month to building an economy capable of with outstanding oil price fluctuations & achieving sustainable financial stability.

 

 

[Luigi1]

Here's another article related to the above...There's no evidence the RV is in the 2027 Budget...200 trillion Dinars will not pay for the Budget RV/RI...

 

 

 

Rest Intel:  Iraq’s 2027 Budget Enters Production.

ARTICLE:  Iraq’s 2027 Budget Enters Production.

Tomorrow morning, in a committee room at the Federal Ministry of Finance, Iraq starts writing its 2027 Federal Budget – the law that carries the Dinar’s ER.

The Kurdistan Region flew a senior financial delegation to Baghdad to sit at the drafting table the day before the first line gets written.

 

The schedule is on the record.

Drafting begins Saturday.  The finished draft reaches the Council of Ministers on September 15.

 

The Cabinet votes the Budget this month with the deficit capped at 3 percent & then Parliament receives

 

It is the first complete Budget the state has produced since 2023, near 200 trillion Dinars, one of the largest in Iraq’s history.

 

In Iraq the exchange rate is written into the Budget Law & the 1,300 every holder knows has sat in the same law since June 2023 because no government finished a replacement.

 

The replacement Is Now In Production.  The CBI Cleaned House The Same Week.
• Al-Taif Islamic Bank – placed under an 18-month guardianship on the CBI’s own wire, a   named custodian holding the keys.

• Shams Maysan brokerage – license struck off the register

• The political class – every bank in Iraq ordered to file politicians and their relatives, to   the third degree, into a database

• The 9 cabinet chairs – parliament’s vote on the unfilled posts, interior and defense   among them, set for next week

• 1,320 – the number the community is circulating for the draft. The February 2023   record says the draft is not where Iraq’s rate decisions get made

 

That is the short version.  What the drafting table means for the rate question, why Erbil took its seat a day early, what the bank seizure is preparing the system for & where the February 2023 precedent says to actually look – that is the daily connection work & it is in today’s full briefing.

[Luigi1]

Here's another article related to the above...How might the RV process go down...This is just one Guru's opine...

 

 

 

Ariel: The Actual Order Of Operations For Iraq.

ARTICLE:  IQD Update: Someone Asked does Iraq have to change the ER before the Council of Ministers (COM) approve the 2027 Budget.  No!

 

The Council of Ministers approves the Budget.  Then the ER change happens.

 

Here’s The Sequence...The Actual Order Of Operations:
1. Council of Ministers approves the 2027 Budget with redenomination language.

2. Parliament ratifies it.

3. CBI executes the rate change (deleting three zeros, setting the new peg — likely to USD or gold per the Tier 1 asset framework).

4. IMF confirms Article VIII compliance.

5. IQD goes live on int'l Forex platforms.

6.  Banks begin exchanging at the new rate.

 

The Budget is the trigger.  Everything else follows from it.  The rate change is a consequence of Budget authorization, not a precondition for it.

 

Reports: Iraq’s Finance Ministry will begin drafting the 2027 Federal Budget on Saturday before submitting it to the Council of Ministers on September 15, where it will remain for about a month to undergo amendments & secure approval before being referred to Parliament for a vote, Kurdish lawmaker Ghalib Mohammed says.  End Quote.

 

Here Is The Contradiction:
If the 2027 Budget gets drafted Saturday, submitted to Council of Ministers September 15, sits there for a month, then goes to Parliament… but the PM wants full sovereignty before September 30 & POTUS wants repayment before US troop withdrawal.  How does a month-long Budget process reconcile with a pre-September 30 RV window?  Wouldn’t this mean that the Budget process & the RV aren’t sequential?  Under that assumption the RV has to happen BEFORE or DURING the Budget’s Council of Ministers phase right?

Because the Budget cannot be denominated in pre-redenomination currency. The Budget IS the redenomination vehicle.  Because last time I checked the PM Ali al-Zaidi did not want to go through Parliament probably for the exact reason laid out. He may use an Executive/Central Bank authority to bypass them.

 

Based off of that I would say the rate change happens first, gets baked into the Budget Draft & the Budget ratifies what’s already in motion. That’s how you reconcile a month-long Budget timeline with a September 30 hard deadline.