Economist: Withdrawing the US Federal Reserve will end the dollar crisis
10-8-2023
Economist - Withdrawing the US Federal Reserve will end the dollar crisisInformation/Baghdad..
Former member of the Parliamentary Economics Committee, Abdul Hussein Al-Yasiri, today, Sunday, attributed the reason for the continued rise of the dollar to the American policy towards Iraq.
Al-Yasiri said in a statement to Al-Maalouma: “The solution to the dollar crisis lies in obtaining a portion of the Iraqi funds in the US Federal Bank.”
He added, “The rise in the dollar is due to excess demand and lack of supply, as well as America’s policy towards Iraq.”
He explained that “the government is required to put pressure on the Fed to provide sufficient cash from the dollar in order to meet the increasing demand and eliminate the so-called parallel market.”
During the current period, America has worked to destroy the Iraqi currency by imposing sanctions on Iraqi banks and banning the dollar under many pretexts, which in one way or another led to a severe financial crisis in the Iraqi markets.
Geopolitical Risks Stir Investment Markets Amid Unrest in Israel, 8 OCT
In recent times, global events have begun to stir the calm waters of investment markets, with the spotlight now focusing on Israel. Investors worldwide are closely observing the rising tensions and violent episodes that have become a recurring feature of the country’s socio-political landscape. This unrest, marked by sporadic attacks and counterattacks, has given rise to new uncertainties that could potentially influence investment decisions on a global scale.
Triggering the Shift to Safe Haven Assets
With the escalation in geopolitical risks, there is an anticipation of a shift in investor preferences towards safe-haven assets. These are investments that are expected to hold or increase their value during market turbulence. Assets such as gold, the U.S dollar, and U.S Treasuries, have traditionally served this role. They act as a financial buffer, protecting investors from a potential crash in the stock market or a downturn in the economy.
The Hamas attack that recently shook Israel was a stark reminder of the volatile situation in the region. The assault was openly lauded by Iran and Hezbollah, Iran’s Lebanese allies, adding another layer of complexity to an already intricate geopolitical scenario. This increasing instability has the potential to stimulate a move towards safe haven assets, as investors seek to mitigate risks and ensure capital preservation.
Implications for the U.S.
The implications of this situation extend beyond Israel’s borders, reaching as far as the United States. The U.S., already grappling with political discord in Washington, finds its position further weakened by these developments. Such geopolitical risks could potentially impact U.S. investments and policy decisions, particularly those related to the Middle East.
A Historical Perspective
Historically, geopolitical risks have often dictated the ebb and flow of global markets. Past events parallel to the current situation include the 1990-1991 Gulf War and the 2003 Iraq War. In both instances, the uncertainty and tension preceding military action triggered a market slump. However, these were followed by notable recoveries after the commencement of the U.S. led military interventions. Whether the present situation will follow this historic trend remains to be seen.
Looking Ahead
The future ramifications of the ongoing tensions in Israel are far from certain. Much depends on how the situation unfolds in the coming weeks and months. If the tension escalates into more significant conflict, the impetus towards safe haven assets could become more compelling.
However, it is crucial to remember that geopolitical risks are only one of many factors that investors must consider. The global economy is a complex and interconnected system, influenced by a multitude of variables. Therefore, investors must adopt a comprehensive and well-informed approach to navigate these uncertain times successfully.
This is one of the reasons the IQD investment is stalled. Article: "Iraqi Prime Minister to pay official visit to Russia next week" ...it's all connected. The Iraqi Prime minister will pay an official visit to Russia on October 10th and 11th...
Article: "Iraq to end all dollar cash withdrawals by Jan. 1 2024 -C.bank official" Breaking news..
.Iraq will bank cash withdrawals and transactions in US dollars as of January 1 2024 in the latest push to curb the misuse of hard currency reserves in financial crimes and the evasion of US sanctions on Iraq....This move aims to stamp out the illicit use of some 50% of the 10 billion US dollars that Iraq imports in cash from New York Federal reserve each year...guys this is major.
Clare
Wall Street Journal Article: "Iraq Asked for $1 Billion in Cash. This Time, Washington Said No."
Quote: "Iraq is seeking a special shipment of $1 billion in cash from the Federal Reserve Bank of New York, but U.S. officials have withheld approval, saying the request runs counter to their efforts to rein in Baghdad’s use of dollars and halt illicit cash flows to Iran.
Since the U.S. invasion of Iraq two decades ago, the U.S. has supplied $10 billion or more a year to Baghdad on semimonthly cargo flights carrying massive pallets of cash, drawn from Iraqi oil sales proceeds deposited at the Fed.
In Iraqi hands, the bank notes have become a lucrative source of illicit dollars for powerful militias and corrupt politicians, as well as for Iran, U.S. officials say"
Iraq’s Bold Step to Combat Water Crisis: Plans to Fill 3,000 Fish Lakes, 8 OCT
Water scarcity has been a persistent issue in Iraq for years, threatening the livelihoods of millions and leading to a significant decline in fish production. The Iraqi government, recognizing the urgency of this issue, has unveiled a comprehensive plan to address the water crisis. The initiative revolves around filling 3,000 fish lakes across the country by harnessing water from the country’s major rivers, the Tigris and Euphrates, and other water sources. The ambitious project aims to bolster water resources, provide alternative water sources for agriculture and livestock, and support the fishing industry.
Addressing a Multifaceted Issue
The water scarcity crisis in Iraq is not just an environmental issue. It is a complex problem that intertwines with the political and economic fabric of the country. As Iraq’s development hinges significantly on its water resources, the government’s initiative to fill the fish lakes represents a significant step towards sustainable water management and reducing reliance on scarce groundwater.
“The water crisis in Iraq is a ticking time bomb,” says an expert familiar with the matter. “It’s not just about the environment; it’s about livelihoods, food security, and the very future of the country.”
Implications for Local Communities and the Fishing Industry
The initiative is expected to be a game-changer for local communities who have been battling with water scarcity. By improving access to water, the project aims to enhance agricultural productivity, bolster food security, and indirectly improve the quality of life for thousands of Iraqis.
Additionally, the project will potentially revive the country’s faltering fishing industry. By filling the fish lakes, the government aims to restore fish stocks, thereby supporting the livelihoods of fishermen who have been hit hard by water scarcity, pollution, overfishing, and climate change.
Regulating Use and Ensuring Sustainability
While the initiative promises significant benefits, the government is aware of the potential risks of overuse. To ensure the long-term sustainability of the project, authorities plan to monitor and regulate the use of water from these lakes. This approach demonstrates a commitment to sustainable water management, a crucial aspect often overlooked in such large-scale initiatives.
A Step Towards Greater Reforms
While filling the fish lakes is a significant step, experts stress that more comprehensive reforms are needed to fully address the water crisis. There is a pressing need for Iraq to negotiate with neighboring countries for fair water allocation, promote modern irrigation methods, and take concrete actions to combat climate change.
However, the government’s recent initiative to fill the fish lakes across the country provides a glimmer of hope. It symbolizes a shift towards recognizing and addressing the water crisis in Iraq, which is a commendable step towards a more sustainable future.
Historic Gas Deal: Iraq to Import 10 Billion Cubic Meters Annually from Turkmenistan, 8 OCT
In a significant development that underscores the deepening ties between Iraq and Turkmenistan, the two nations have entered into a preliminary agreement for Iraq to import 10 billion cubic meters of natural gas annually from Turkmenistan. The deal is expected to make a substantial contribution towards meeting Iraq’s growing energy needs, particularly for power generation.
Significant Step Towards Expanding Cooperation
The agreement was reached during a meeting between Iraqi and Turkmen gas sector officials in Turkmenistan. Both parties have agreed in principle to work out the modalities of importing specific quantities of gas to meet Iraq’s burgeoning energy demands. A memorandum of cooperation is projected to be finalized by the end of the year, detailing the proposed quantities and mechanisms for cooperation between the two countries.
This deal is viewed as a significant step towards expanding cooperation with gas-producing nations. Turkmenistan, a key player in the global gas industry, emerges as a crucial partner for Iraq in this context. The final agreement, expected to be signed before the end of 2023, will further cement this partnership.
Historical Context and Future Ramifications
The gas deal comes at a time when Iraq is grappling with severe power shortages. With an overburdened and aging infrastructure, Iraq’s power sector has struggled to keep up with the growing demand for electricity. The gas import deal with Turkmenistan signifies Iraq’s concerted efforts to diversify its energy sources and reduce its reliance on fossil fuels.
The future ramifications of this deal are manifold. Firstly, it will bolster Iraq’s energy security by ensuring a steady supply of natural gas to power its electricity plants. Secondly, it will foster deeper economic ties between Iraq and Turkmenistan, possibly paving the way for more bilateral trade and investment opportunities. Lastly, it could potentially influence geopolitical dynamics in the region, given the strategic significance of energy resources.
Next Steps and Anticipated Developments
While the initial agreement has been reached, several aspects need to be ironed out. These include legal, commercial, financial, and organizational dimensions of the future joint activities in the gas industry. Further negotiations will be held in Ashgabat during an international exhibition and conference in October.
Despite the challenges ahead, the deal has been greeted with optimism. An energy expert opined, “This agreement is a game-changer for Iraq. It not only addresses its immediate energy needs but also lays the foundation for a long-term, strategic partnership with Turkmenistan.”
Article "Director of Al-Sistani’s Office: The authority warned against corruption and called for combating it, but there is no life for whomever you call for." WOW!! When the Supreme Religious Authority, Ali al-Sistani, speaks of a fatwa to follow laws...
the people that fit the shoes and ware them better be careful to make things right and quickly..Failure...will likely have significant consequences...He issued a fatwa that money any employee or official obtains in violation of the law is forbidden.
Also, wasting public money and appropriating it, or illegal disposal of it, is forbidden. That is some heavy stuff. Think of all those that are guilty in the line up..
[NOTE: The Arabic word fatwa refers, in simple terms, to an edict or ruling by a recognized religious authority on a point of Islamic law.]
Article: "Specialist: The government is obligated to present its vision for next year’s budget in the middle of this month" The government still being unable to implement the budget for the years 2023, 20224 and 2025 are amid secrecy and strict instructions to officials and advisors not to talk about the issue of the current or upcoming budget.
Think about all of this. They are keeping what we are looking for tight to the chest. Rightfully so.. I love this!
Babysmom
MOST RECENT ANTICIPATED OPENING RATES AS PER RAY [Guru RayRen98] DONG .47 ...DINAR 3.81...
US Dollar Continues Upward Trend Against Iraqi Dinar Amid Economic Uncertainties, 8 OCT
The US dollar has continued its upward trend against the Iraqi dinar in both Baghdad and Erbil, heightening concerns about the economic future of Iraq. This follows the closure of the stock exchanges in Baghdad, with the dollar’s prices reaching 159,000 IQD for $100, up from the morning prices recorded at 158,350 IQD for $100. In local currency exchange shops in Baghdad, the selling price of the dollar has risen to 160,000 IQD for $100. Meanwhile, in Erbil, the selling price of the dollar stands at 158,750 IQD for $100.
Investing in the Iraqi Dinar: A Risky Venture
Investing in the Iraqi dinar is akin to investing in any other currency, where one purchases a certain amount of Iraqi dinar by paying the equivalent amount of US dollars. The hope is that the value of the dinar will increase over time. However, such investments are fraught with challenges and uncertainties. The value of the dinar is set by the Iraqi government and does not float freely, meaning that the exchange rate remains fixed by the central bank and is unlikely to experience rapid changes. Trading volume is also extremely low, and the dinar is not traded on the global forex market. Furthermore, there are many scams and frauds associated with investing in the dinar, adding to the risks.
The Tumultuous History of the Iraqi Dinar
The Iraqi dinar has a tumultuous history, its value has experienced significant falls following the 1991 Persian Gulf War and the overthrow of the Iraqi government in 2003. While there were hopes that the dinar could experience a similar rise in value as the Kuwaiti dinar after the Gulf War, there were also warnings of scammers selling dinar investments for inflated rates and fees. In late 2020, the Iraqi government announced a devaluation of more than 20% of the dinar to make up for a shortfall in liquidity. This led to public protests in a country already struggling due to the worldwide coronavirus pandemic.
Future of the Iraqi Economy and the Dinar
There are some reasons to be optimistic about the future of the Iraqi economy, including its large oil reserves. However, buying dinars may not be the best way to bet on the Iraqi economy. The dinar does not trade on global forex markets, and trading volume is extremely low. Buying dinars can only be done through high-fee money exchanges or certain banks in the Middle East. There are also many scams and frauds associated with investing in the dinar.
Overall, while there may be some potential for the Iraqi economy to recover and for the dinar to increase in value, there are many risks and uncertainties associated with investing in the currency. As such, it is important for potential investors to carefully consider these risks and rewards before investing in the Iraqi dinar.
A dollar transfer will no longer be withdrawn in cash. Financial expert explains chaos in Baghdad banks
A dollar transfer will no longer be withdrawn in cash. Financial expert explains chaos in Baghdad banks
Iraqi financial expert Mahmoud Dagher explained to 964, the chaos witnessed by banks in Baghdad, today, Sunday, after depositors were unable to receive their money in dollars, and said that the amounts deposited in cash can be withdrawn in cash, but this never applies to remittances.
Until Sunday morning, banks in Baghdad continued to stop the procedures for disbursing balances in dollars, and the network monitored 964 in the branch of the Trade Bank in the Babylon Mall, and learned from depositors with other banks.
Financial expert Mahmoud Dagher, Network 964:
The root of the problem is that the Bank of Baghdad “TBI” was giving dollars in cash to cash deposit holders and remittance holders alike.
The instructions now state that those who deposit in cash can be granted in the same way, while remittances are not offered in cash, they can be sent to people anywhere or in a way according to their decision.
That’s why banks are unable to adequately cope with dollar draws.
There is nothing to panic, especially since Iraq’s reserves are $115 billion.
There will be no crisis in 2024 and the rule will remain who deposits in dollars will be withdrawn in dollars.
The dollar will not be forbidden, but it would be better to deal with Iraqi dinars in making payments.
We have a dollar, but the withdrawal terrified the banks.” An Iraqi banker’s testimony about Sunday’s chaos
“Customers wanted to clear the account.”
An official at a Baghdad bank gave testimony about the chaos that occurred today, after depositors were inundated with requests to withdraw their money in dollars, indicating that foreign currency liquidity is available, but “the intensity of requests terrified bank officials.”
Today, Sunday, citizens attacked all banks in the capital, Baghdad, in an unprecedented manner, against the backdrop of the Central Bank’s recent decisions to adopt the dinar.
Portfolio officials were concerned about the volume of requests, and decided to wait to disburse them all at once within one day.
The Central Bank reduced the amount of dollars granted to all banks today, and the liquidity in its possession is not sufficient to meet the enormous requests received.
Private banks decided to legalize grants to citizens for fear of zeroing out of their dollar accounts, especially since there is a real fear that citizens will not be able to recover their money in the banks. link
Question: "Is it worth it to invest in the dinar?"
I have them. I think it's something to consider.
You should have discretionary funds if you're going to buy the Iraqi dinar. I hold like 4 or 5 million...I think it's worth it. I'm just holding on to it. It's a legitimate currency. It's way undervalued.
They have a lot of sanctions on them. So what happens if you take away the sanctions?Well then the currency will be able to function like it should without all this weight on its back.
I think it's worth it. Is it going to RV tomorrow? No. It's going to take time. But not a lot of time. Not like before...The steps that Iraq's taking at this present moment you can see it go up in increments without a doubt.
I think you're going to see it go up in increments...but it's going to take 2 or 3 years for it to even get close to 1 to 1.
I know you guys don't want to hear that...I definitely feel we're going to get there within the next 3 years absolutely...It's my feeling a lot of great things are happening over in the Middle East..
Middle East Tensions Rise: Iran’s Influence, Lebanon Attack and Taliban’s Request to Fight, 8 OCT
Mounting Tensions in the Middle East
The Middle East, a region known for its rich history and cultural diversity, is now under the spotlight for reasons far from celebratory. In recent times, the region has become a hotbed of escalating tensions and geopolitical maneuvering. The epicenter of this mounting unrest is Iran and its expanding influence, a recent attack in north Lebanon, and a surprising request from the Taliban to fight in Israel and Iran.
Iran: A Rising Power?
Iran, a significant player in the Middle Eastern political scene, has been making headlines for its growing regional influence. This influence is largely credited to its backing of militant groups like Hezbollah and its active involvement in Syria and Iraq. Major General Qassem Soleimani, the head of Iran’s Quds Force, plays a crucial role in shaping Iran’s strategy and expanding its clout in the region.
“Iran’s support for terrorism and its attempts to assert dominance in the region cannot go unnoticed,” says a Middle East political analyst who preferred to remain anonymous. “The country’s actions not only destabilize the region but also pose a significant threat to world peace.”
Lebanon: New Ground for Conflict
Adding to the tense atmosphere is a recent attack in northern Lebanon. Although the details surrounding the incident remain unclear, it underscores the volatile situation in the region. Lebanon, known for its political instability, could become the next battleground for conflicting interests.
An expert on Middle Eastern affairs states, “The attack in Lebanon could mark the beginning of a new phase in the region’s ongoing conflicts. Depending on who is responsible, this could escalate tensions and lead to broader conflict.”
Taliban’s Request: A New Frontline?
In an unusual development, the Taliban, a hardline Islamist group based in Afghanistan, has requested permission to fight in Israel and Iran. This request is surprising and raises questions about the group’s intentions and the potential consequences for the region.
“The Taliban’s request is unprecedented and concerning,” says a Middle East security expert. “This could potentially open up a new frontline in the region, escalating conflicts and posing a significant threat to regional stability.”
Looking Ahead: Uncertainty Prevails
The current developments in the Middle East paint a picture of uncertainty and escalating tensions. Iran’s future actions in Afghanistan could further destabilize the region, and the recent attack in Lebanon signals potential for more conflict. The Taliban’s request to fight in Israel and Iran could open up a new and dangerous frontier. As these events unfold, the world watches, hoping for peaceful resolutions and stability in this historically rich and culturally diverse region.
Iraq Explores Diversification of Gas Sources for Power Stations, 8 OCT
In a bid to ensure a stable energy supply and mitigate the impact of any disruptions, Prime Minister Muhammad Shaaa Al-Sudani of Iraq has convened a meeting to discuss the diversification of gas sources for the country’s power stations. The meeting was a platform to explore alternative gas supplies and aimed at reducing the reliance on a single gas source. The emphasis was on the crucial role of diversification in the energy sector, and bringing to light potential partnerships with neighboring countries and international organizations.
Initial Agreement with Turkmenistan
As part of its efforts to diversify its energy sources, Iraq has signed an initial agreement with Turkmenistan to import gas. This agreement aims to provide Iraq with a stable and sustainable power supply by importing gas through pipelines connected to Iran. Currently, Iraq relies on gas imports from Iran for almost one-third of its energy needs. However, regular supply cuts due to payment issues have led to electricity outages, a problem that the agreement with Turkmenistan seeks to address, thereby improving Iraq’s energy security.
TotalEnergies Steps In
In addition to the Turkmenistan agreement, Iraq has also entered into a significant deal with French company TotalEnergies to develop its natural resources and improve its electricity supply. The $27 billion deal includes the recovery of flared gas from Basra oil fields, the construction of a seawater treatment plant, and the development of a solar power plant. These initiatives are part of Iraq’s broader efforts to attract foreign investments and rebuild its energy infrastructure, which has been beleaguered with issues after decades of conflict and instability.
The Need for Domestic Reforms
While external partnerships and deals are crucial, Prime Minister Al-Sudani also highlighted the need for domestic reforms to tackle corruption and inefficiencies in the energy sector. It is imperative to ensure long-term energy sufficiency and stability. The Prime Minister underscored the importance of investment in infrastructure and technology to support the expansion of gas operations.
Moving Forward
The meeting concluded with a commitment to further explore alternative gas sources and develop a comprehensive strategy for the diversification of gas supplies for power stations in Iraq. It is an ambitious plan, but one that is crucial for the future energy security of the country. As Iraq moves forward with these plans, it will be interesting to see how these strategies shape the country’s energy landscape in the coming years.
Let's make sure we understand something about this bank [Walkingsticks friend Aki's bank in the US].
I don't want to call it a CBI bank. I did that because in the beginning you needed a reference to relate it to so we said CBI satellite private banks.
But the reality, anybody can open a bank in the United States of America...It's not so much they belong to the CBI, they work with the CBI.
Question "Could Iraqi dinar go international without placing on Forex?"
Yes, but I really doubt that.
Forex is going to grab it like they're in heat. The whole world is going to grab it. I told you, as soon as it changes it's like putting chum in the ocean, every shark is going to come. That's when sharks bite.
Sudani went and told all the contractors he signed with, they can come into Iraq without any restrictions.
That's Article VIII...You are a sovereign country. You can do whatever the hell you want to do with your currency and exchange rate.
It [the dinar] will be introduced internationally. I don't care if it stays at 1132 as long as it's international.What is that definition? Restrictions free...The next step of the Iraqi dinar should be coming out... International equals a new exchange rate.
The U.S. dollar exchange rate against the Iraqi dinar marked a rise in the markets of Baghdad and Erbil. The USD recorded a closure rate of 158,800 IQD to 100 in al-Kifah and al-Harithiya Central Exchanges, which is 1,300 IQD higher than the opening rate. In the parallel markets of Baghdad, the selling and buying rates of the USD settled at 160,000 and 158,000 IQD to 100, respectively. Meanwhile, in Erbil, the selling and buying rates were recorded at 158,900 and 158,500 IQD to 100, respectively.
Exchange Rates in a Broader Perspective
According to the latest exchange rate data from Xe, the live exchange rate for the U.S. dollar to Iraqi dinar is 1 USD = 1304.2227 IQD. The rate is updated minutely, and the exchange is available between Sunday 22:00 and Friday 22:00 (UK time). The historical charts and data reveal that the USD to IQD rate has remained relatively stable over the past week, with a slight increase in value. The current rate is higher compared to the previous day’s rate. Conversely, the exchange rate for the Iraqi dinar to the U.S. dollar is 1 IQD = 0.0008 USD. The rate remains relatively stable, with the current rate being the same as the previous day’s rate.
Understanding the Historical Context
The Iraqi dinar has experienced fluctuations in value against the U.S. dollar over time. However, over the past 12 months, the dinar has seen a rise in value, increasing by 11.42%. Looking ahead, analysts and projections from Trading Economics forecast that the Iraqi dinar will be priced at 0.000744726 USD by the end of this quarter and 0.000689305 USD in one year.
The Broader Implications of Exchange Rates
Overall, the exchange rate between the U.S. dollar and the Iraqi dinar has been relatively stable in recent days, with slight fluctuations in value. The current rate favors the U.S. dollar, with 1 USD being equivalent to 1304.2227 IQD. However, it’s essential to note that exchange rates can be influenced by various economic and geopolitical factors, and they may change over time. Such fluctuations can have far-reaching impacts on global trade, investments, and the economic stability of countries involved.
Very quiet overnight on the RV side…..but, great expectations for this weekend or the first part of this week. My redemption center folks are on call this weekend. They are not at work…they are “on call”...Last week I told you all that I know a number of bankers...put on “stand by” for imminent currency value changes. I thought this was huge news. My bank crew is sure ramped up and expecting something big this week.
…no update yet...from redemption center folks...as to whether they expect to work this weekend. I have been hitting a brick wall…their phones seem to be turned off…. I don’t know if that is a great thing or a coincidence. Yesterday a number of them told me they are on “stand by” specifically for currency exchanges. I think this is huge. Let’s see if something comes of it.
More chatter on the Iraqi side of things with great expectations for the weekend.
Most are looking Late Saturday/early Sunday for something from Iraq. Some type of announcement?
A lot of my sources feel that Monday is our day…A lot of them …actually...think our day is before that and Monday is when we start going to the bank! They are all expecting big things this weekend. I am hesitant to say if it’s a “go” or “not a go” just yet. But I am excited about the potential. There is nothing negative at all.
...From the banking side (I got this from a couple different sources) So from bankers in different states…They were told they are officially on “STAND BY”... We have not seen that in a very, very long time…and I have never gotten it from multiple states in different areas that are un-related…AND, these are from different top-tier banks. So this is something going out from multiple banks…in multiple states.
Central Bank of Iraq and Reuters announced: “Next Sunday (8 Oct.) will be a special day in all Iraqi banks, which could witness unprecedented overcrowding and crowding at cash withdrawal windows.”
Iraqis were told in mosques: “A new Iraq will begin by Sunday (8 Oct.).”
Arab Council of Interior Ministers to convene in Baghdad to discuss remote security training, 8 OCT
Shafaq News/ The General Secretariat of the Arab Council of Interior Ministers on Sunday announced its decision to hold a meeting in the Iraqi capital, Baghdad, to deliberate on several critical issues, notably remote security training and qualification methods.
According to a statement issued by the Council's General Secretariat, the 13th Arab Conference of Heads of Security Training and Qualification Institutions, under the patronage of the Prime Minister of Iraq and Commander-in-Chief of the Armed Forces, Mohammad Shia al-Sudani, will take place in Baghdad, hosted by the Ministry of Interior, from October 10th to 11th of this year.
The statement indicated that the conference will include representatives from the interior ministries of Arab countries, along with the United Nations Office on Drugs and Crime, Naif Arab University for Security Sciences, and delegates from the General Secretariat of the Arab Council of Interior Ministers.
The conference's agenda features a range of topics, including a conceptual model for remote security training and qualification, remote training: advantages and disadvantages, the impact of the COVID-19 pandemic on security training and qualification programs in the Arab world, and the "Nationalize" the English curriculum taught in the Arab interior ministries.
The General Secretariat will present the conference's recommendations to the next session of the Arab Council of Interior Ministers for appropriate actions to be taken, the statement concluded.
I was...told [by my CBI contact in Iraq] not to over-speculate on the RV and the CBI has a plan and is actively working on it.
The CBI can not put the cart before the horse and needs the support of the GOI for all the monetary reform.
They feel that Al-Sudani is definitely onboard with the details of this effort and “fully” supports the plan and what the CBI is doing in this regards. They also told me the re-education news (program) is about to come out.
Stay tuned…
I asked [my CBI contact in Iraq] about the project to delete the zeros and was told it is coming and is now an active project no longer just a later project.
I asked for some target dates and was given that they planned to redenominate sometime prior to the end of the year. To me this is so inline what we are thinking for a January 2024 reinstatement timeframe and other events also lining up.
The Dollar’s Dance: Exchange Rate Fluctuations Impacting Baghdad and Erbil, 8 OCT
Fluctuating Fortunes of the U.S. Dollar in Baghdad and Erbil
The U.S. dollar, a global benchmark of economic strength, has undergone significant fluctuations in Baghdad and Erbil. In Baghdad, the value of the dollar escalated to 158,350 Iraqi dinars for every 100 dollars, marking a noteworthy increase from the preceding day’s rate of 157,500 dinars. This surge has directly impacted the selling prices in local currency exchange shops, signaling a robust demand for the U.S. dollar. Conversely, in Erbil, the dollar’s value experienced a downfall, with a selling rate of 157,700 dinars and a buying rate of 157,600 dinars per 100 dollars in local currency exchange shops.
Role of Safe Assets in Dollar Value Determination
The value of the dollar against other currencies is significantly influenced by the demand for U.S. dollar safe assets such as U.S. Treasury bonds. This demand directly impacts exchange rates and influences the convenience yield that investors are willing to accept when purchasing U.S. dollars. The convenience yield can be understood as the market value of the tranquility and assurance that comes with investing in U.S. dollars.
The ‘Specialness’ of the Dollar
The U.S. dollar enjoys a special status in the global economy, primarily due to its ability to issue safe assets. U.S. Treasuries are perceived as the safest investment worldwide, enabling the U.S. government to pay lower interest rates on its bonds compared to other countries. This special demand for U.S. safe assets, particularly U.S. Treasuries, often results in the appreciation of the dollar against foreign currencies.
Future Ramifications of Dollar Value Fluctuations
According to recent research, a large fraction of the variation in dollar exchange rates can be attributed to the shifting value that foreign investors place on holding safe assets denominated in U.S. dollars. This revelation disrupts the traditional understanding of exchange rate movements, suggesting that the demand for U.S. dollar safe assets is a key factor in determining the dollar’s value in the global currency market. As the world continues to grapple with economic uncertainty, the fluctuations in the dollar’s value will undoubtedly have significant implications for global investors, policymakers, and economies at large.
Iraq-Turkey Oil Pipeline: Uncertainty Looms Over Resumption of Operations, 8 OCT
Recent reports indicate that a cloud of uncertainty hangs over the resumption of operations of the Iraq-Turkey oil pipeline. This skepticism stems from the fact that Iraq has not yet received any formal notification from Turkey regarding the operation of the pipeline that brings crude oil from Iraq to global markets. The report, according to two senior oil officials in Iraq, raises speculation about the pipeline’s operational status.
A Dispute in Suspension
The pipeline’s operation was suspended six months ago due to a payment dispute between Turkey and Iraq. Turkey’s Energy Minister, Alparslan Bayraktar, had announced that operations on the oil pipeline would restart this week. However, the lack of formal notification from Turkey to Iraq suggests that the pipeline may not be operational yet.
The pipeline is expected to supply half a million barrels of crude oil to global markets. Turkey halted flows on the pipeline after an arbitration ruling ordered them to pay damages for unauthorized exports. Following this, Ankara initiated maintenance work on the pipeline, which contributes to approximately 0.5% of global crude supply.
Implications for Global Oil Supply
The pipeline’s uncertain operational status has implications for global oil markets. The Iraq-Turkey pipeline is a significant conduit for Iraq’s crude oil exports and contributes to global oil supply. Any delays or disruptions in its operations could potentially impact global oil prices and supply dynamics.
The lack of a formal notification about the pipeline’s operational status fuels these uncertainties. Until such notification is received and confirmed by Iraqi officials, questions about the pipeline’s operational status will remain, casting a shadow over its expected contribution to global crude supply.
Looking Ahead
The situation surrounding the Iraq-Turkey pipeline serves as a reminder of the complexities involved in international energy trade. Disputes between countries can have far-reaching implications, impacting not just bilateral relations but also the global energy market.
For oil-dependent economies like Iraq, ensuring the smooth operation of export pipelines is critical. Therefore, the resolution of the current situation will be closely watched by stakeholders in the energy sector.
As stakeholders await further developments, the situation underscores the importance of transparent and effective communication in global energy cooperation. The absence of formal communication between Turkey and Iraq in this case has only served to amplify uncertainties, demonstrating the need for improved dialogue and information-sharing practices in such critical matters.
