Thursday, May 15, 2025
THE 2025 BUDGET SCHEDULES WILL BE FINALIZED BY THE END OF MAY.
THE 2025 BUDGET SCHEDULES WILL BE FINALIZED BY THE END OF MAY.
MP Baqir Al-Saadi stressed that “the existence of 2025 budget schedules is important to ensure project funding and provide financial support for local governments, enabling them to proceed with implementing service projects across all sectors.”
Al-Saadi indicated in a press interview seen by (Al-Masry Al-Youm, Sunday 5/11/2025) that “the 2025 budget schedules will be decided by the end of this May.”
He said, “Despite talk of the possibility of postponing the budget resolution until after the November 2025 elections, there are indications that the budget schedules may be finalized by the end of this month . Thus, after the end of the legislative recess, the parliament will have the opportunity to finalize it or hold extraordinary sessions to discuss and vote on it.”
He explained that “the delay in finalizing these schedules and the Cabinet’s failure to send them to the Parliamentary Finance Committee for review before submitting them to the Parliament Presidency for a vote has negative repercussions on the funding of service projects in ministries and local governments.”
(Kind of weird how they worded this last statement since the Finance Committee is part of Al Sudani’s cabinet. Do these reporters even know how the government is structured?)
MIKE BARA UPDATE
MIKE BARA
I am told Iraq's currency is now gold backed.
I am now hearing Trump’s “big announcement” will be recognition of a Palestinian state.
Not only do I think this is a horrible policy, it has nothing to do with the RV, apparently.
HOARDED WEALTH, FROZEN ECONOMY: IRAQ’S HIDDEN CASH CRISIS DEEPENS
HOARDED WEALTH, FROZEN ECONOMY: IRAQ’S HIDDEN CASH CRISIS DEEPENS
For many Iraqis, banks are not seen as safe havens but as unreliable or even risky institutions. And for countless others, personal experiences of fraud and failed investments have reinforced the instinct to hide money away rather than let it work.
In a country long battered by war, corruption, and economic volatility, a new crisis is quietly suffocating Iraq’s prospects for recovery: the nation’s wealth is being locked away behind household doors.
Recent figures reveal that only 20 trillion Iraqi dinars are in actual market circulation out of a staggering 105 trillion dinars in total monetary volume—a sign that Iraqis are overwhelmingly choosing to hoard their savings at home rather than invest or deposit them. This growing phenomenon not only reflects deep societal mistrust but also poses a formidable obstacle to economic growth.
The roots of this behavior run deep. For many Iraqis, banks are not seen as safe havens but as unreliable or even risky institutions. And for countless others, personal experiences of fraud and failed investments have reinforced the instinct to hide money away rather than let it work.
Ahmad Alaa, a young Iraqi man, shared his own story with Kurdistan24’s correspondent Seif Ali—a cautionary tale that mirrors the fears of many. “After saving a significant amount, I tried investing in the car trade through a partnership. I was defrauded. Even after two years in court, and a confession from the person who stole our money, he walked free,” Alaa said. “After that experience and others like it, people are too scared to invest.”
Ahmad Alaa, a young Iraqi man, shared his own story with Kurdistan24’s correspondent Seif Ali. But fear of fraud is only part of the equation. Experts point to a fragile banking system, unpredictable exchange rates, and mounting economic pressures as factors pushing citizens further into financial isolation.
Economic analyst Arkan Al-Shammari explained to Kurdistan24, “The economic downturn and instability of the dollar discourage citizens from launching small businesses. Even those who want to invest face high operational costs—particularly rent—which make ventures unfeasible from the outset.”
Economic analyst Arkan Al-Shammari talking to Kurdistan24’s correspondent Seif Ali.
With banks offering little in the way of guarantees or incentives, and with Iraq still lacking a secure and modern banking infrastructure, citizens are left with few appealing options for managing their money.
Al-Shammari argued that revamping the financial system and offering substantial incentives could be key to drawing hoarded funds back into the economy. “Without an encouraging banking environment, it’s unrealistic to expect people to trust the system with their life savings,” he said.
The consequences are stark. As Iraq faces pressing needs in reconstruction, job creation, and diversification of its economy, massive reserves of personal wealth remain immobilized—kept in cash, hidden in homes, and denied to the markets and sectors that need them most.
In the absence of sweeping financial reforms, Iraq risks falling further behind in its efforts to build a resilient and modern economy. For now, the country’s future remains shackled not only by visible challenges, but also by the invisible weight of idle cash—locked in fear, distrust, and lost opportunity.
GOLDILOCKS: Iraq is actively working toward implementing ASYCUDAWorld across all its customs sites by mid-2025
GOLDILOCKS:
Iraq is actively working toward implementing ASYCUDAWorld across all its customs sites by mid-2025, as part of a broader effort to modernize customs processes and boost trade efficiency.
The Ministry of Finance is making progress with automating its programs, and is currently implementing the ASYCUDA (Automated System for Customs Data) system within its customs sector. This system aims to modernize customs operations, improve revenue collection, and facilitate trade.
ASYCUDA is a computerized customs management system that covers various foreign trade procedures, including declarations and accounting.
Iraq’s adoption of ASYCUDAWorld at key shipping ports like Umm Qasr and other customs sites is a transformative step toward modernizing its trade infrastructure.
The system is already yielding significant results, such as increased customs revenue and higher import volumes, and is poised to expand nationwide by mid-2025. By aligning with international standards and improving efficiency,
ASYCUDAWorld enables Iraq to strengthen its position in global trade, attract investment, and reduce economic reliance on oil. The sources cited provide robust evidence of the system’s implementation and its positive impact on Iraq’s international trade capabilities.
Yes, many countries are exploring and implementing the use of their own currencies within the banking system to align with evolving international standards and potentially move away from the dominance of the US dollar.
This is happening through the development of Central Bank Digital Currencies (CBDCs) and the increasing use of national currencies in cross-border payments.
It remains to be seen if the dinar will replace the dollar in these shipping port transactions. The current trend would say so, but many geopolitical tensions are still in flux. And, it is too early to tell what is about to happen in Iraq at this time.
Watch the water.
© Goldilocks
https://www.iraq-businessnews.com/2025/04/02/iraqi-customs-implements-new-measures-to-boost-trade/#:~:text=Iraq's%20General%20Customs%20Authority%20has,reduce%20delays%20and%20streamline%20processes.
GOVERNMENT ADVISOR: CONTRACTING WITH INTERNATIONAL AUDIT FIRMS IS A KEY STEP TOWARD MODERNIZING THE ECONOMIC STRUCTURE.
GOVERNMENT ADVISOR: CONTRACTING WITH INTERNATIONAL AUDIT FIRMS IS A KEY STEP TOWARD MODERNIZING THE ECONOMIC STRUCTURE.
Mazar Mohammed Saleh, an advisor to the Prime Minister, confirmed on Friday that contracting with international audit firms to evaluate the banking sector is a key step toward modernizing the economic structure. While explaining that these firms are independent and unaffected by pressures and interests, he indicated that this modernization contributes to strengthening confidence in the Iraqi financial market and reform in this sector, and encourages a shift away from the informal cash economy.
Advisor to the Prime Minister, Mazhar Mohammed Salih, told the Iraqi News Agency (INA): “The statements made by Prime Minister Mohammed Shia al-Sudani during his recent important meeting with the chairmen of the boards of directors of private banks in Iraq or their representatives are consistent with the banking reform policy in Iraq,
particularly highlighting the importance of contracting with international firms for financial auditing and assessing the status of the banking market in our country.
This represents a fundamental step and a foundation towards comprehensively modernizing the economic structure, while simultaneously reflecting a drive to rebuild trust and cohesion within the financial sector in general and the banking market in particular.” He added,
“Prime Minister Mohammed Shia al-Sudani’s statements undoubtedly represent reform axes that do not deviate from the principles of the government’s approach that state institutions have followed over the past few years. The primary goal of banking reform is to modernize it to align with international standards in governance, compliance, and transparency, particularly in providing confidence and efficiency in the provision of banking services to society with a broad framework of integrity and credibility in banking work.” He noted that “the Prime Minister’s speech
focused on the need to encourage investment by ensuring a reliable banking system that supports financial inclusion and efforts to transition to a digital economy, electronic payments, and all digital transactions. ”
He explained that “the Prime Minister’s speech focused on the importance of contracting with international auditing firms to re-evaluate the conditions of banks, both private and government-owned, based on a single premise: ensuring their institutional capabilities to uncover any financial loopholes in the country’s banking system,
verify the integrity of accounting and administrative procedures within local banks, and provide an accurate assessment of the financial suitability of banking institutions. This supports reform plans with real data to take effective steps to build a long-awaited, integrated and efficient banking system.” He indicated that “these international companies possess advanced auditing expertise and technologies, undoubtedly supported by local competence.
In addition, the international auditing and accounting firms currently undertaking the banking sector evaluation process are independent entities, unaffected by pressures and interests, and provide greater credibility to the international community and investors, which enhances confidence in our country’s financial market.”
He continued, “Prime Minister Mohammed Shia al-Sudani’s speech did not depart from the fundamental principles of financial and banking reform, which are based on encouraging citizens and companies to deposit funds and engage in credit transactions with banks instead of the informal cash economy. This is achieved by creating an attractive investment environment based on transparent and stable banking institutions, with the goal of supporting the private sector with effective loans and financial services.
This contributes to creating job opportunities and sustainable development within the aforementioned private sector, which is the true partner of the state in economic progress and prosperity in Iraq.” Prime Minister Mohammed Shia al-Sudani chaired a meeting of the heads of the boards of directors of Iraqi banks, during which mechanisms for implementing the banking reform plans prepared by the government were discussed as part of comprehensive reforms of the economic sector.
During the meeting, according to an official statement, the Prime Minister emphasized that “all state sectors are linked to the existence of an effective and flexible banking system that relies on modern technologies.” He noted that “the government has adopted comprehensive plans for banking reform and contracted with private financial auditing companies, including all banks, and has made significant progress in implementation.”
He explained that “the work of the First Rafidain Bank will launch with a new look and vision, in partnership with specialized and well-known banks.” He pointed to “the formulation of a clear roadmap to address the conditions of the private banking sector, as a partner in development.” He emphasized the need for cooperation during the next phase to take effective steps in economic reform.
He pointed to “the state’s distancing from detailed intervention in sectors and assuming a regulatory role,” indicating efforts to “engage the private sector and foreign companies in all mega-projects, as well as support local productive sectors and absorb the imported cash flow.” Providing domestic goods and services to citizens as an alternative to imports and ensuring support for local investment. The Prime Minister directed “banks to simplify procedures and participate broadly in the development process, as well as to participate as investors in all available opportunities, move toward partnerships with foreign companies, and work to build trust with citizens, which will help ensure they feel confident depositing their money in banks.”
“Iraq Now International” – MarkZ Evening Intel Stream Highlights 5-13-25
Evening News with MarkZ. 05/13/2025
Some highlights by PDK-Not verbatim
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Member: Good evening one and all
Member: Lots going on…here and over there…..
Member: I’m hearing 46 Iraqi companies are in the US right now until May 14th for direct investments in American. They would not be able to do that without an international rate
MZ: buckle up…the news really is solid.
Member: Do you think the trigger has been pulled and it’s a slow roll out?
MZ: yes.
Member: Could we have appointments before the rate is on forex?
MZ: If it works like Kuwait- yes. I was told they would try to slide up in a week or so before forex….but in this day and age- I don’t know how they can do that.
MZ: I do know a couple of historic bond contacts with appointments set in stone for tomorrow. Then a couple more with appointments on Wed and Thurs. these are different bonds then some seen previously
MZ: I am hopeful we get some idea on timing from those.
MZ: “Spokesman for the Secretary General of the Arab League: Preparations for the Baghdad summit were successful in all aspects” Many folks attending are already showing up including folks from the IMF ect.
Member: This starts over the weekend.
MZ: “IMF praises Iraq’s progress in economic reforms. Ready to advise”
MZ: “ Swift and the Federal Reserve put Iraq at the mercy of the global economy” this points out that Iraq is now “International”
Member: Interenational requires an RV.
MZ: We are waiting for that announcement
Member: Have a great night everyone. See you all in the morning
Mod: Mark’s next travel schedule. He leaves on May 17th (which is Mark’s dad 80th B-Day) and comes back on May 21st. Zester will host the podcast when Mark is gone. Mark will pop in when he can.
THE CONTENT IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY&NOT INTENDED TO PROVIDE ANY PROFESSIONAL, FINANCIAL OR LEGAL ADVICE. PLEASE CONSIDER EVERYTHING DISCUSSED IN MARKZ’S OPINION ONLY
“ECONOMIC IMBALANCE”… IRAN IS AT RISK OF LOSING IRAQ SOON
“ECONOMIC IMBALANCE”… IRAN IS AT RISK OF LOSING IRAQ SOON
The American Middle East Forum Institute has monitored the “economic imbalance” between Iraq and Iran, noting that the potential strategic repercussions of diminishing Iranian economic influence in Iraq in the coming period could leave Tehran vulnerable to losing Baghdad, as it is one of its last significant geopolitical and financial defenses in the region.
The American Institute’s report, translated by Shafaq News Agency, stated that despite the severe shortages it faces domestically in terms of electricity and natural gas supplies and the difficulty in obtaining payments due to US sanctions, Iran continues to export energy resources to Iraq. This represents a contradiction in its long-term geopolitical calculations, which aim to “deeply entrench its influence in the Iraqi economy and political system.”
Noting that Iran’s exports to Iraq have increased more than 100-fold over the past two decades, demonstrating the depth of this intertwining, the report said, “Iran’s energy exports to Iraq have become a fundamental pillar of its influence in the country. Its modest non-oil exports to Iraq have increased from $145 million in 2005 to $11.9 billion in 2024, representing 20% of its total non-oil exports. This figure does not include approximately $3 billion in electricity and gas exports to Iraq last year.”
According to the institute’s report, its data, based on Iranian customs figures, shows that Iran has exported goods and services to Iraq worth more than $100 billion over the past two decades. Furthermore, according to the report, Iran began exporting electricity to Iraq in 2005, generating approximately $10 billion in revenue over the past two decades.
He continued, “Since 2017, Iran has increased its gas exports, delivering more than 60 billion cubic meters over seven years, worth approximately $18 billion.”
Overall, he confirmed that Iran’s exports to Iraq amounted to $130 billion over 20 years, while Iranian imports from Iraq remained marginal. Prior to US sanctions on Iran in 2018, they amounted to a few tens of millions of dollars annually, and recently reached approximately $500 million.
The report stated that “this economic imbalance has led to Iraq’s dependence on Iranian goods, energy, and services, which has allowed Iran to exert political influence in Baghdad, fund its pro-Iranian groups, and use Iraqi financial networks to facilitate currency smuggling and the secret sale of oil under Iraqi control.”
After noting the numerous restrictions imposed by the US Treasury Department on several Iraqi banks, the report explained that these measures have made it more difficult for Iran to access hard currency through Iraq, a vital lifeline in light of Tehran’s broader isolation from the global financial system .
The report found that Iran’s regional influence has declined since mid-2024 following Israeli strikes against its proxies and the fall of Bashar al-Assad’s regime in Syria, making Iran’s role in Iraq more vulnerable.
Therefore, the report considered that this situation created a new space for Iraq to strengthen its independence, while the “maximum pressure” campaign launched by the Donald Trump administration against Tehran encouraged Baghdad to begin diversifying its partnerships and reducing its dependence on the political and economic axis represented by Iran .
He explained that the International Monetary Fund expects the Iraqi economy to shrink by 1.5% in 2025, with the phasing out of US energy import waivers a contributing factor. He added that despite Turkey doubling its electricity exports to Iraq this year, Iraq’s gas deficit remains unresolved in the short term, posing a serious threat to the electricity grid and industry, and could lead to summer power outages and civil unrest.
The report continued: ” After Washington imposed a “maximum pressure” campaign on Tehran in 2018, Iraq has been accumulating unpaid gas and electricity debts to Iran, reaching nearly $8 billion.”
He added, “Despite this, Tehran insists on continuing its exports, based on its strategic calculations rather than its economic logic,” considering that this influence may decline, as the International Monetary Fund expects Iran’s total exports to decline by $11 billion in 2025 compared to 2024, while the Fund also expects a daily decline of 300,000 barrels in Iranian oil exports due to renewed US pressure, in addition to the decline in global oil prices.”
The report indicated that the US Treasury’s restrictions on Iraqi banks’ access to dollars will undermine Tehran’s ability to recover its funds. As a result, the Iranian rial will lose approximately 50% of its value in 2024, while the International Monetary Fund expects Iran’s GDP to decline by $60 billion in 2025, reaching $341 billion, its lowest level in 18 years .
He emphasized that Iran’s economic influence over Iraq remains significant, but fragile, adding that US financial restrictions, internal resentment in Iraq over Iranian interference, and Baghdad’s plans to diversify its gas sources all pose serious threats to Tehran’s influence.
He pointed out that if Iraq succeeds in reducing imports of Iranian goods, replacing Iranian gas with local or Turkmen supplies, and enhancing the compliance of its banking system with international standards, Iran “could lose one of its last significant geopolitical and financial defenses in the region.”
The report considered that, for the United States and its allies, strengthening Iraq’s energy independence and financial stability should be a strategic priority, adding that, for Iran, the cost of clinging to Iraq in the near future could outweigh the benefits.
TIDBIT FROM FRANK26
Frank26
We've been reading article after article after article telling us the Iraqi dinar has gone up in value...
The monetary policy was to remove 1310...It's not like they're hiding anything. Everything they're saying in these articles leads to the conclusion.. .
you have a monetary policy that has been successful. You have an exchange rate that you're controlling against the American dollar? that's at 1310?
That means you're about to go into a float in order to add value to it aren't you? Everything is set up beautifully right now.
THE SECRETS OF “BLACK TRADE”… FACTION TACTICS BRING THE DOLLAR BACK TO 140,000 DINARS
THE SECRETS OF “BLACK TRADE”… FACTION TACTICS BRING THE DOLLAR BACK TO 140,000 DINARS
The current decline in the US dollar exchange rate against the Iraqi dinar is raising concerns among economists, as it “did not result from radical reforms to the economic structure and mechanisms for dealing with foreign currency,” exposing it to a sudden resurgence when black market networks resume activity or any political or security tensions arise .
According to the Al-Kifah and Al-Harithiya stock exchanges in the capital, Baghdad, they closed on Thursday evening at 142,700 Iraqi dinars for every US dollar. Meanwhile, selling prices at exchange shops in local markets were 144,000 Iraqi dinars for every US dollar, while buying prices reached 142,000 dinars for every US dollar .
In Erbil, the capital of the Kurdistan Region, the selling price was 142,900 dinars per $100, and the buying price was 142,800 dinars per $100 .
” Great danger “
Regarding the repercussions of this decline, Kazem Al-Shammari, a member of the Parliamentary Economic Committee, stated, “This decline in the dollar exchange rate has negative repercussions and raises concerns among economists, because the more the dollar declines, the more the country’s economy is exposed to greater danger .”
Al-Shammari explained to Shafaq News Agency, “The current situation of the Iraqi dinar is unstable due to its absence in daily transactions and the fact that a large portion of it is stored in homes, which significantly impacts the country’s economic situation .”
He explained that “an individual’s purchasing power depends on the strength of the economy. If a country’s economy is healthy and strong, purchasing power will be good. However, if the economy is collapsing, there will be no purchasing power. Therefore, anyone who believes that the decline of the dollar benefits the Iraqi economy is mistaken .”
Regarding the role of parliament in addressing this potential crisis, Al-Shammari said, “Parliament has entered a legislative recess, and during this recess, the House of Representatives is not permitted to host officials or hold meetings, except for extraordinary sessions based on the signatures of a specific number of representatives or an invitation from the House Presidency .”
Due to this holiday, he confirmed that “we will be meeting with the governor of the Central Bank starting next week to discuss the nature of this decline, whether it is planned or an emergency, the consequences of this decline on the economy and individuals, and the Central Bank’s measures in this regard .”
Faction tactics
The current decline in the dollar on the parallel market is “a development that reflects the magnitude of the financial changes that have recently occurred in the local market,” according to economic researcher Ahmed Eid . However, it is a temporary decline due to low demand, a contraction in official imports, tightened controls at border crossings, and some monetary movements.
Eid told the agency that “recent government measures have contributed to expanding dollar sales outlets through official banks and increasing coverage for travel, study abroad, and medical treatment, alleviating pressure on the black market, creating a temporary balance between supply and demand in the market .”
But deeper down, there’s a “dark side” to this decline, as Eid describes it, attributing it to “the presence of numerous economic offices affiliated with militias and parties that have long controlled a significant portion of financial transfers and the smuggling of dollars abroad. These have recently reduced their activities as a result of American and international pressure and potential sanctions .”
He pointed out that “reducing these activities has reduced the demand for dollars from these informal networks, especially since some of these offices have temporarily reduced their activity as a precautionary tactic pending a change in the political climate or a relaxation of controls .”
Therefore, the economic expert considered that “this decline may be viewed as stability, but it is a fragile stability because it is not based on radical reforms to the economic structure and mechanisms for dealing with foreign currency, but rather on circumstantial shifts that could be reversed at any moment .”
Eid predicted that “if black market networks resume activity or any political or security tensions arise, the dollar could suddenly rise again, requiring a comprehensive national strategy to control the market and curb the influence of illegal economic offices that continue to operate in Iraq and pose a real threat to its national economy .”
Government procedures
However, in an interview with Shafaq News Agency, the Prime Minister’s financial and economic advisor, Mazhar Mohammed Salih, praised the decline in the dollar’s price, attributing this to the Central Bank of Iraq’s success in financing foreign trade for the private sector, encouraging small business financing without costly intermediaries, and the success of travelers in obtaining their foreign currency dues .
Economic expert Nawar Al-Saadi agreed with Saleh, stating that “the decline in the dollar exchange rate is not surprising, but rather reflects a set of policies and measures that are gradually beginning to bear fruit, along with other developments in market behavior and local demand for hard currency .”
Al-Saadi explained, during his interview with the agency, that “the first decisive factor is the gradual expansion in the use of electronic payment tools, which has contributed to reducing reliance on cash dollars, especially among travelers, thus reducing the actual demand for hard currency in the open market .”
He continued: “In recent months, we have witnessed serious efforts by the Central Bank to reduce the amount of money in circulation in Iraqi dinars, which has directly reflected in the appreciation of the dinar, in addition to some savers and investors shifting from dollars to gold, amidst the state of anticipation and anxiety regarding developments in the regional situation .”
He noted that “non-oil-related financial flows contributed to an increase in the supply of dollars, thus facilitating the balancing of supply and demand without the need for excessive reliance on the currency selling window .”
Al-Saadi also attributed the dollar’s decline to “a decline in import volume due to the declining purchasing power of Iraqi consumers, which reduced the need for dollars to finance these transactions, which in turn affected demand in the market .”
Al-Saadi concluded his remarks by pointing out that what also contributed to this decline was “the relative control of some smuggling and illegal financing channels in neighboring countries, which has made the dollar in the Iraqi market less vulnerable to leakage and more stable within the local monetary system .”
STATUS OF THE RV , PART 3 BY MNT GOAT
STATUS OF THE RV , PART 3
What else did Iraq just tell us?
😊Let’s look at the article titled “GOVERNMENT ADVISOR: CONTRACTING WITH INTERNATIONAL AUDIT FIRMS IS A KEY STEP TOWARD MODERNIZING THE ECONOMIC STRUCTURE.”
Mazar Mohammed Saleh, an advisor to the Prime Minister, confirmed on Friday that contracting with international audit firms to evaluate the banking sector is a key step toward modernizing the economic structure.
While explaining that these firms are independent and unaffected by pressures and interests, he indicated that this modernization contributes to strengthening confidence in the Iraqi financial market and reform in this sector, and encourages a shift away from the informal cash economy (parallel market).
😊Remember what Iraq told us in that the Customs and Tariff revenues alone could rival the oil revenues. But they had to manage them properly. Then what did we see in the news for this issue over the last 6 months? They are doing it now. Please go read the article titled “IRAQ’S CUSTOMS REVENUES REACHED 59 BILLION DINARS AFTER IMPLEMENTING THE ASYCUDA SYSTEM.” So here is yet another update on the implementation of these customs and tariffs projects. This is what this article is for. We read that Finance Minister Taif Sami announced on Friday a significant increase in customs revenues following the implementation of the ASYCUDA Customs Automation System, amounting to more than 59 billion dinars.
She explained that “the Authority has currently begun implementing the second phase of the system, which will extend over two years. This phase includes its implementation in eight remaining customs centers, in addition to linking 12 electronic applications to the system, including: land transport clearance, the value system, smart selectivity, the exemptions system, and licenses and certificates. This will enable the system to be linked with all ministries.” So, here it all is in black and white again….. They are slowly getting there to rival the oil revenues.
😊In another article titled “A NEW DIGITAL GATEWAY: IRAQ LAUNCHES FIRST UNIFIED TELECOM TRANSIT ROUTE” We read about yet more communication innovation. Iraq has signed a strategic transit agreement with DIL Technology, a Kurdish-licensed firm, to enable seamless data flow across its territory. This marks the first time Iraq presents a unified telecom front to international companies. It streamlines the process of transmitting data through the country, eliminating the need for companies to negotiate separately with federal and Kurdish entities.
😊Here is yet another earlier summit taking place (not the Arab Summit). Will Trump be invited to speak at this one on his tour of the Middle East? The article is titled “IRAQ ON TRUMP’S AGENDA DURING HIS MIDDLE EAST TOUR”. No he is NOT going to Iraq or the middle east to announce the RV! / US President Donald Trump is embarking on a tour of the Middle East, including Saudi Arabia, the UAE, and Qatar. This visit is described as crucial given the profound changes taking place in the region .The Saudi capital, Riyadh, is hosting the summit that will bring together Trump and the leaders of the Gulf Cooperation Council countries . Amidst the Gaza conflict and the changing maps of Syria, Lebanon, and Iraq, Trump is visiting the region carrying a new vision for American engagement in the Middle East.
Oh…I just wanted to ask. Was Biden too busy laying out on the beach in Delaware to actually do some work for the citizens of the U.S.? He had four years and what did he accomplish besides dividing America, opening up the borders to terrorists and stirring up the pot of racism and sexism even more that where Obama left off.
The brand new “WORLD HEART HOTEL” in Baghdad, Iraq
Are you ready to travel to Iraq? Are you ready to check into the World Heart Hotel in Baghdad? Soon U.S. tourist will be taking historic travel trips to Iraq.
I felt it necessary for each of us to realize just how modern and advanced Iraq has come since the 2003 war. In this video Al-Sudani inspects the “World Heart Hotel” in preparation for receiving delegations participating in the Arab Summit. Then we take a short trip around to see the real Baghdad today.
https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/
THE DOLLAR’S EXCHANGE RATE IS STABILIZING TOWARDS ITS TARGET: ADAPTATION OR ADJUSTMENT?
THE DOLLAR’S EXCHANGE RATE IS STABILIZING TOWARDS ITS TARGET: ADAPTATION OR ADJUSTMENT?
Dr. Haitham Hamid Mutlaq Al-Mansour
It became clear in the period from last April until this May that the dollar exchange rate in Iraq began to stabilize, declining towards the (official) target level. Therefore, a question may be raised in this context: Is this stability the result of “adaptation” or “adjustment”?
To answer this question, we examine the reality of monetary policy measures that strengthened the foreign exchange signal’s response to the downward trend, which can be described in the following paragraphs:
1.The Central Bank’s restrictive policy of controlling dollar sales to banks through transparency measures for transfers of unclear origin aimed at combating smuggling. This increased the official supply and eased pressure on the exchange rate.
2.The effectiveness of monetary policy in financing foreign trade through highly rated correspondent banks, within the framework of the US Treasury and Federal Reserve’s conditions. This is in addition to the trend toward settlement in euros, yuan, and UAE dirhams, which has facilitated remittance transactions in our trade with China, Turkey, and the UAE.
3.Added to this is the decline in demand for the dollar due to the increased level of banking compliance with international conditions on dollar transfers to prevent their smuggling to Iran, Syria, and Turkey via Iraq. As a result, suspicious transfers have decreased, and illicit demand for dollars has declined, contributing to the stability of the dollar exchange rate.
4.The effectiveness of the Central Bank’s foreign reserves management to compensate for the decline in the dollar supply in the parallel market, thus curbing the exchange rate towards the target.
5.The effectiveness of the inflation targeting policy led to a slowdown in the rise in the general price level (inflation) in Iraq, which limited the phenomenon of dollarization and raised the real value of the dinar.
6.Decline in speculation in the parallel market. Following the regulatory measures, the activity of unlicensed money changers and speculators who artificially raised prices declined.
7.The effectiveness of financing travelers in dollars through the official rate using payment cards at reduced costs and at the official exchange rate of 1320 dinars per dollar, in addition to collecting cash dollars through Iraqi airports, in the amount of 3000 dollars at the official rate for each traveler per month who carries an electronic payment card.
8.External international factors related to a general weakness in purchasing power in global markets and a decline in stocks, which caused a decline in the value of the dollar and a rise in gold, leading to a decline in demand for it globally and locally.
From the above-mentioned reasons, we find that exchange rate stability, despite its importance as a short-term objective of monetary policy, was achieved through “adjustment,” i.e., a short-term price adjustment trend resulting from short- or medium-term measures and treatments for exchange rate fluctuations. The aim was to restore temporary economic equilibrium without changing the basic structure of the economy and without deep-rooted long-term policies, which reduces the effectiveness of targeting the exchange rate at the long-term target level. Stability could have been achieved as a result of long-term structural “adjustment” by following long-term policies as follows:
1- Decrease in demand for the dollar due to the availability of agricultural or industrial GDP revenues as a substitute for imports.
2- Improvement in the balance of payments thanks to non-oil agricultural and industrial exports.
3- Structurally reforming the banking system and activating the role of monetary tools, especially the interest rate structure, in a way that restores the overall balance to its natural state without a split between what is real and what is monetary.
4. Reducing rentierism by diversifying the economy through allocating resources based on foreign trade to generate national surplus value. The result: more sustainable stability, as the economy becomes less dependent on external factors.
If the current balance remains in place, the dollar supply will still be vulnerable to depletion within a year of imports if oil exports cease due to wars and threats, for example, or if the economy is exposed to similar external shocks. Furthermore, reliance on reserve management and other stringent measures will not be sufficient to ensure long-term exchange rate stability.
In conclusion, while ensuring that the exchange rate stabilizes near its target level is a significant achievement for monetary policy, the absence of structural reforms, economic diversification, improving the business environment, combating corruption, and other factors will make any exchange rate stability vulnerable to reversal, particularly with oil price fluctuations, political crises, and external shocks. This underscores the importance of planning for long-term structural adjustment at the macroeconomic policy level.
STATUS OF THE RV , PART. 2 BY MNT GOAT
STATUS OF THE RV , PART. 2
😊So, once again all the chatter in the news from Iraq is about the dinar and how strong it is slowly becoming.
Everyone should take the time to look of the articles on this subject matter and they can be found in the Articles Section. Do think this topic is HOT right now and why all the talk about it now? Do you think six (6) articles on this subject matter are in the news for a reason? Are you kidding me, of course it is important. We are about to see a monumental change in the dinar.
“MONETARY POLICY RAISES THE VALUE OF THE DINAR AND REDUCES RELIANCE ON THE PARALLEL MARKET”
“AL-NUSAIRI: OUR DINAR CONTINUES TO RECOVER UNTIL IT REACHES THE OFFICIAL PRICE.”
“MOST NOTABLY, THE TRAVELERS’ DOLLAR. AL-SUDANI’S ADVISOR REVEALS THE REASONS FOR THE EXCHANGE RATE’S DECLINE.”
“THE SECRETS OF “BLACK TRADE”… FACTION TACTICS BRING THE DOLLAR BACK TO 140,000 DINARS”
“THE DOLLAR’S EXCHANGE RATE IS STABILIZING TOWARDS ITS TARGET: ADAPTATION OR ADJUSTMENT? ”
“9 REASONS FOR THE SUDDEN DROP IN THE DOLLAR IN IRAQ: AN ECONOMIST EXPLAINS”
Going Forward…
So, what do I mean by “monumental change” of the dinar? Lots of questions and so let’s dive into what is happening going forward in Iraq to satisfy your curiosity.
😊Now I want to present yet more amazing news to you from the IMF. In the article titled “COOPERATION BETWEEN IRAQ AND THE INTERNATIONAL MONETARY FUND”. There are two events to point out to you today from this article:
1.Determining the most appropriate tax systems for the Iraqi social situation
Iraq and the International Monetary Fund agreed to strengthen relations with foreign correspondent banks in the field of foreign trade financing.
2.An agreement was reached to support the use of the Iraqi dinar in economic transactions to maintain the stability of the local currency.
Both of these events are going to move the dinar yet higher. The one I like the most is #2 which is basically telling us that the dinar (not the dollar) will soon be used to conduct economic transaction, meaning to be used in trade between Iraq and its trading partners. Yes, it a time to make that next step and liberate the Iraqi dinar yet even more.
9 REASONS FOR THE SUDDEN DROP IN THE DOLLAR IN IRAQ: AN ECONOMIST EXPLAINS
9 REASONS FOR THE SUDDEN DROP IN THE DOLLAR IN IRAQ: AN ECONOMIST EXPLAINS
An economic expert revealed the reasons behind the sudden drop in the US dollar’s exchange rate against the Iraqi dinar over the past few days, noting the possibility of the US currency continuing its decline.
Over the past few days, Iraqi markets have witnessed a significant decline in the dollar exchange rate against the dinar on the parallel market, approaching 1,420 dinars per dollar, a level very close to the official rate after accounting for associated costs. According to the economic expert, “This decline reflects multiple changes in supply and demand within the local market and raises questions about the factors behind it.”
Iraqi economic expert Munar Al-Abidi pointed to nine reasons that led to the decline in the value of the US currency in Iraqi markets:
First: Declining demand versus abundant supply
The main reason for this decline is a decline in demand for dollars on the parallel market, coupled with a significant increase in the supply of hard currency within the market. “This new balance has contributed to narrowing the gap between the parallel and official rates,” according to Al-Obaidi.
Second: Investors shift towards gold
The economist pointed to a decline in confidence among some local investors in the dollar as a savings instrument, especially with growing expectations of a decline in its value against gold. This trend prompted many to cash in their dollar holdings and convert them into gold as a safe haven, increasing the supply of dollars in the market.
Third: Dollar inflow from non-oil sources
According to Al-Obaidi, the amount of dollars coming from outside Iraq has increased, “particularly from foreign investments and financial transfers from international companies operating within the country, which has boosted the dollar supply, regardless of oil sales.”
Fourth: The decline in the money supply of the dinar
The Central Bank of Iraq has reduced the dinar money supply by more than 6 trillion dinars over the past six months, from 104 trillion to approximately 98 trillion dinars. This contraction has led to a relative increase in the value of the dinar, which has put downward pressure on the dollar, according to Al-Obaidi.
Fifth: Declining imports and trade contraction
Despite a 6% increase in imports from China, exports from key countries such as India, Turkey, and the United States declined. Import data from the UAE—Iraq’s largest trading partner, which accounts for 30% of its total imports—is expected to arrive, according to Al-Obaidi. “The figures are likely to reveal a decline, reflecting an economic contraction and a decline in general demand, thus declining the need for dollars.”
Sixth: Diversify channels for obtaining dollars at the official price.
The recent period has witnessed an expansion in access to dollars at the official exchange rate, through bank transfers, cards, and direct transfers. Many merchants have adapted to these channels, reducing their reliance on the parallel market.
Seventh: The impact of regional conditions
Al-Obaidi explained that the deteriorating economic situation in Iran led to a decline in demand for goods imported from Iraq, especially since a portion of these goods were re-exported to Iran. Furthermore, the halt in trade with Syria—which also received a portion of Iraqi goods through re-export—contributed to a decline in demand for imports and, consequently, for the dollar.
Eighth: Pressure on the smuggled oil trade
Markets also witnessed a tightening of Iranian oil smuggling channels, which had been used by the Iraqi market to obtain dollars. This restriction reduced the amount of dollars required for these activities, thereby contributing to easing pressure on foreign currency.
Ninth: Decline in the trade of prohibited substances
Illicit trade has declined as a result of the cessation of its sources, including drug and similar trade, a large portion of which used to be conducted with Syria and which placed significant pressure on the dollar price on the parallel market, as this trade was covered through the parallel market.
The economic expert emphasized that all of these factors combined have created an environment that has driven the dollar’s exchange rate down. Given these indicators, it is expected that the US currency will continue its decline, approaching 1,395 dinars per dollar in the coming period, unless there are fundamental changes in monetary policy or the regional and international situation.
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