Here's why Vietnam's currency keeps floating downward compared to the US dollar. According to Reuters the Vietnamese Dong has experienced depreciation against the US dollar due to a combination of global and domestic factors.
1. The strengthening of the U.S. dollar.
2. Interest rate differentials. Vietnam's Central Bank has maintained lower interest rates to stimulate economic growth.
3.
Trade and investment flows. Fluctuations in Vietnam's trade balance and foreign direct investment can influence currency values.
4. Inflationary pressures. Higher domestic inflation rates can trade the purchasing power of the VND leading to depreciation.
5. Speculative activities. Market speculation and currency hoarding can amplify exchange rate volatility. These five factors are the same factors representing the exchange rate between the USD and IQD.
The head of the electronic payment team in Iraq, Nabil Al-Najjar, confirmed on Friday that Iraq will witness a major transformation in the field of electronic payment next year.
Al-Najjar explained in a statement to the official agency, followed by “Mawazin News”, that “the number of electronic payment cards in Iraq exceeded the barrier of 18 million cards, which means that a third of the population uses this method.” He added that “there is a government trend that supports electronic payment through a series of decisions that will contribute to this major transformation in the Iraqi economy.”
Al-Najjar pointed out that “Iraq is about to make huge digital campaigns in line with the economic decisions adopted by the government of Prime Minister Mohammed Shia Al-Sudani, and 2025 is expected to witness a qualitative leap in electronic transactions.”
Iraq’s economic outlook is strong, with advancements in digital finance, foreign investments, and banking reforms, as highlighted by key officials.
Highlights
📈 Iraq’s monetary position is excellent, ensuring smooth foreign trade transfers.
🤝 Prime Minister Al Sudani seeks stronger ties with the US and Spain for investments.
💳 The Central Bank is launching a new electronic payment system to boost commerce.
🌍 Iraq ranks 51st globally in economic growth, focusing on industrial and agricultural financing.
🏗️ Investment Law 13 has been activated, granting tax exemptions to attract investors.
🔌 Digital transformation initiatives are underway, aiming to enhance the banking sector.
💡 The ODC is ready to assist Iraq with digital projects, emphasizing AI and economic development.
Key Insights
📊 Strong Monetary Position: Governor Ali Alalak emphasizes Iraq’s robust monetary status, facilitating trade and investment through a new foreign transfer system, which is crucial for economic stability.
🌐 International Relations: Prime Minister Al Sudani’s efforts to foster relations with the US and Spain indicate a strategic shift towards diversifying Iraq’s economic partnerships, essential for attracting foreign investments.
💼 Investment Opportunities: The activation of Investment Law 13 offers significant tax incentives, potentially increasing foreign investor interest and boosting Iraq’s industrial capabilities.
💳 Electronic Payment Transformation: The introduction of a new electronic payment system demonstrates Iraq’s commitment to modernizing its financial sector and improving business transactions, aligning with global trends.
🌱 Focus on Diversification: There is a clear push to reduce reliance on oil by enhancing the banking sector’s role in financing real projects, particularly in agriculture and industry, which can stabilize the economy.
📈 Demographic Insights: The recent population consensus highlights a youthful demographic, providing a substantial labor force that, if effectively harnessed, could drive economic growth and innovation.
🤖 Digital Cooperation: The organization’s willingness to collaborate on digital transformation indicates that Iraq is ready to embrace technology-driven solutions, essential for modernization and competitiveness in the global market.
Baghdad / Nina / Prime Minister Mohammed Shia Al-Sudani said: “Iraq’s relations with the United States are institutionalized in accordance with the Strategic Framework Agreement.”
Al-Sudani said in an interview with the Spanish newspaper Al-Mundo: “We have contact with the Trump team and he wants to develop relations with us.”
Regarding Iraq’s relationship with Spain, he explained: “We are at a distinguished stage in relations with Spain and there is a mutual desire to develop and develop it in all fields,” adding: “Spain is part of the international alliance that helped us eliminate the terrorist ISIS, and upon our request, the mission of the international coalition will end within two years because of the absence of the justifications for its existence.”
He said: “There are Spanish companies in Iraq, especially in the rail and transport sector, and we are keen to have more companies for their efficiency and experience in implementing projects. We will sign several memorandums of understanding with Spain and there is a financial ceiling of 200 million euros to one billion euros to cover projects implemented by the Iraqi and Spanish private sectors.
He pointed out that a railway project worth $250 million was referred to a Spanish company, and another Spanish company was being negotiated with a high-speed train project between the governorates of Najaf and Karbala.
Regarding the situation in Iraq, Al-Sudani said: “The capabilities of our security services have reached an advanced stage and there is political stability that is reflected in the general situation of the country.”
With regard to the ceasefire in Lebanon, the Prime Minister described the agreement as an important event, expressing his hope that it would include the Gaza Strip to reflect on the stability of the region.
He continued: “Our laws provide for the non-recognition of the Zionist entity, and the Palestinians are the owners of the land and the cause, and they are the ones who decide the formula for a solution to their cause.” / Ended 2
...The news from Iraq is all still very good. There is so much progress.
The BIG event of course, will be the ending of the current currency auction process and use of the new system already to implement.
The CBI has told us that nearly 95% of the current payments needed for imports is covered by the four (4) correspondent banks for this purpose...
remember that the clock is ticking and other outside banking relationships must take place but will most probably never take place unless the IQD is valuable again and most importantly on these terms it must also be reinstated back on FOREX for investors to “legally” use this currency in their portfolios of investments for their clients. This is the key. Yes, this is really just where we are right now...
and I posting you would be able to fully understand the facts involved with what is actually happening.
Iraq can not kick the can anymore time is about to run out. In this post please read the section concerning WTO And the key to Iraqi Dinar going international is the private sector Banks performing remittances abroad and the Visa card etc… western union money gram is the ultimate key to the IRAQI DINAR INTERNATIONALIZATION
