Iraqi money frozen

[syed putra]

So be careful. US can arbitrarily freeze any country's money and not just in USD.

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The Fed prohibits Iraq from using its dollars AND its yuans.​

Sun 28 Jul 2024 ▪ 8 min read ▪ by Nicolas T.
Getting informed▪Payment
Not content with drastically limiting how Iraq can spend its dollar reserves, the Fed now prohibits it from using the yuan. When will it be Bitcoin?

Iraq suspends its transactions in yuan​

We reported earlier this year that Iraq no longer wanted to sell its oil in dollars, but rather in yuans.
This week, the American Federal Reserve ordered Iraq to cease its transactions in Chinese yuans. It cited “divergences and specific problems related to transactions” according to Mr. Al-Kadhimi, a member of the parliamentary finance committee.
To put it more transparently, the United States wants to prevent Iraq from trading with its Iranian and Syrian neighbors, two nations under embargo due to their defiance of Israel.

 

[k1976]

China Ready for $1.4 Trillion Fiscal Bazooka, Top Economist Says​

• Top researcher says amount would be proportional to economy
• Anticipation builds on government to ramp up fiscal support

By Josh Xiao
October 3, 2024 at 1:06 PM GMT+8
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A leading economist in China said the country has room to ramp up fiscal support for the economy by issuing as much as 10 trillion yuan ($1.4 trillion) in special debt, reflecting rising expectations for Beijing to expand public spending as part of its stimulus package.

Jia Kang, a former head of a research institute affiliated with the Ministry of Finance, said authorities could lift confidence by drastically raising government investment in public projects. He spoke in an interview with Chinese publication The Paper published Tuesday.
Have a confidential tip for our

 

[cockie]

So be careful. US can arbitrarily freeze any country's money and not just in USD.

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Home » News » Finance News

The Fed prohibits Iraq from using its dollars AND its yuans.​

Sun 28 Jul 2024 ▪ 8 min read ▪ by Nicolas T.
Getting informed▪Payment
Not content with drastically limiting how Iraq can spend its dollar reserves, the Fed now prohibits it from using the yuan. When will it be Bitcoin?

Iraq suspends its transactions in yuan​

We reported earlier this year that Iraq no longer wanted to sell its oil in dollars, but rather in yuans.
This week, the American Federal Reserve ordered Iraq to cease its transactions in Chinese yuans. It cited “divergences and specific problems related to transactions” according to Mr. Al-Kadhimi, a member of the parliamentary finance committee.
To put it more transparently, the United States wants to prevent Iraq from trading with its Iranian and Syrian neighbors, two nations under embargo due to their defiance of Israel.

It doesn’t matter… unless China step in prohibiting Iran to used RMB… if not any one with RMB can buy oil for Iran

 

[k1976]

China and US To Hold Talks on Economic and Trade Issues​

By
Business Today Editorial
-
October 1, 2024

Chinese Commerce Minister Wang Wentao and his US counterpart will hold a call in the near future on trade and economic ties, China’s state-run Xinhua news agency reported on Tuesday, citing people familiar with the matter.

They will exchange views on bilateral economic and trade relations and key issues of mutual concern, including restrictions on electric vehicles (EVs), Xinhua reported.

During a two-day working group meeting in Beijing last month with a US delegation, Chinese officials expressed “grave” concerns about additional US tariffs, investment restrictions and Russia-related sanctions.

A new round of US tariffs on US$18 billion of Chinese goods including EVs, EV batteries and solar panels took effect in late September, with lithium-ion batteries bearing the brunt of the levies by value. The US imports nearly zero Chinese EVs.

The tariffs were imposed after a review by the Office of the US Trade Representative of levies that had been previously introduced by former US President Donald Trump

The Biden administration said the tariffs were aimed at bolstering protections for strategic domestic industries from China’s state-driven excess production capacity. Beijing has vowed retaliation.

China may also be slapped by additional EV tariffs by the European Union, which is slated to cast a vote on introducing definitive levies in October.

The Biden administration said the tariffs were aimed at bolstering protections for strategic domestic industries from China’s state-driven excess production capacity. Beijing has vowed retaliation.

China may also be slapped by additional EV tariffs by the European Union, which is slated to cast a vote on introducing definitive levies in October.

 

[k1976]

Iraqi oil was again denominated in dollars immediately after the capture of Baghdad. For more than 20 years now, the central bank of the conquered country has been regularly forbidden to use its large dollar reserves.

Iraqi banks must go through the SWIFT network which requires final authorization from the Fed. The latter can block any payment from the Iraqi central bank and does not hesitate to do so.

 

[k1976]

In short, Iraq is in the same situation as Iran and Russia. Its dollar foreign reserves are partially frozen and its transactions via the SWIFT network depend on Washington’s goodwill.

It is therefore evident that the country of the two rivers would do well to join the BRICS. The deputies favoring such an approach belong to the Shia Coordination Framework. This is an alliance of parties supported by Iran, forming the backbone of the current government. The idea is also gaining traction among other political forces.

Zeinab Al-Mousawi, a member of the parliamentary oil and energy committee, declared at the end of last year that joining the BRICS should be a national priority.

Such integration “could limit the dominance of the U.S. dollar. We could free ourselves from financial and commercial restrictions imposed by Washington”, she said.

Indeed, moving away from the dollar and the SWIFT network is also the priority of the BRICS. The Deputy Speaker of the Duma Alexander Babakov reiterated this again this week. “The priority of the BRICS financial agenda is to create our own financial messaging system similar to SWIFT”, he told the TASS agency.

The Russian Ambassador to China Igor Morgulov said the same thing at the beginning of July. “We are leaving the dollar-dominated space and developing the mechanism and tools for a truly independent financial system”, he asserted.

However, Mr. Morgulov admitted that the introduction of a new common currency was not imminent. However, he stressed that the BRICS – which now include Brazil, Russia, India, China, South Africa, Ethiopia, Iran, and Egypt – “are moving in this direction”.

 

[k1976]

CBDCs and Monetary Chimera​

Russia already has an alternative to the SWIFT network. The Russian SPFS interbank messaging system ensures the secure transfer of financial messages to partner foreign banks. China also has a similar network called CIPS which it uses for international yuan transactions.

Overall, the BRICS are increasingly using their national currencies and seeking to avoid the SWIFT network. The share of payments in national currencies between Russia and BRICS countries has risen to 85%, compared to 26% two years ago.

Last month, Russian Deputy Finance Minister Ivan Chebeskov said that Russia was working on an international payments system in collaboration with the central banks of BRICS member states. The senior official mentioned the term “BRICS Bridge platform”.

This is reminiscent of the “mBridge” project led by China under the aegis of the Bank for International Settlements. Russian Finance Minister Anton Siluanov also clarified that the BRICS “Bridge” will operate with central bank digital currencies, just like mBridge.

 

[ftan42]

can BRICS quickly come to rescue