The parallel market is a black market. It's illegal. They're not supposed to be doing it. They're only supposed to be doing trade in dinar...At some point in time, whether it be today, tomorrow, the next day or out to the end of the year, they're going to de-dollarize the country...
There's illicit trade going on and there's fraud/money laundering and the ultimate goal is to get rid of it...If you're going to de-dollarize the country you're going to need to bring it [dinar] some value because a dollar is worth a lot more than a dinar at the moment...
Iraq went to the U.N. and told everybody they were a free sovereign state. That goes along with having a sovereign currency...and then to be able to go into the international financial system...
All of that is on the table...I don't think there is anything stopping them. I don't know if this is going to happen in the next 24-48 hours or if it's going to still be a significant amount of time. Bottom line is we can see them moving forward ...I'm elated and I think it's going to be a good week.
Expert says CBI should stop acting like a forex speculator, 7 OCT
Shafaq News/ An Iraqi economic expert on Saturday said that the Central Bank of Iraq (CBI) should stop selling dollars in exchange for the national currency, suggesting leaving this matter to the "black market" in a bid to achieve market stability.
"There are two main reasons behind the abrupt increase in the dollar exchange rate," Dana Mawloud told Shafaq News Agency, "First, it was the CBI announcement that it would halt the injection of dollars into the market starting from the beginning of the coming year. Media sensationalism has played a role also, affecting the decisions of citizens to hoard dollars instead of the local currency."
On the reasons behind the Central Bank of Iraq's decision to stop injecting currency in 2024, he added, "The Central Bank of Iraq, in coordination with the International Monetary Fund, has made this decision with the approval of the US Treasury. It will be implemented starting from January 1st next year to prevent the US dollar from reaching Iran and Turkey from Iraqi markets, as those two countries are the largest purchasers of US dollars from Iraqi markets."
"The Central Bank is the sole entity selling foreign currency in the markets and acts as the exchange office. There is no bank or financial institution in the world that operates by selling its reserves of foreign currencies."
"The issue should be left to the black market, and the central bank and other banks can exchange foreign currencies at the government-set rate," he explained, "this way, the exchange rate of the dollar would stabilize between the government-set rate and not exceed 137,000 dinars per 100 dollars."
He also pointed out that "the reasons for currency smuggling stem from the fact that the dollars injected by the Central Bank of Iraq do not go to the citizens but to banks and companies that do not benefit the Iraqi citizens."
Today, the exchange rate of the US dollar against the Iraqi dinar closed at 158,500 dinars to in the Sulaymaniyah stock exchange.
Iraqi Leaders Unite: A Solidarity Stand for Palestine
In an unprecedented move, the leaders of the ‘coordination framework’ in Iraq have come together to express their unanimous support for Palestine. Among the leaders are notable figures such as Al-Maliki, Haydar Al-Abadi, Qais Khazali, Abdel Aziz Al-Hakim, and Hadi Al-Amiri.
A United Front for Palestine
The coordination framework is an amalgamation of influential political figures from various Iraqi factions. It was established with the intention of addressing national interests and regional affairs. The collective voice of this framework carries significant weight in the Iraqi political landscape. Their agreement to stand united in their support for Palestine underscores the solidarity and shared commitment to the Palestinian cause within the Iraqi leadership.
While the specifics of their support were not detailed, the development highlights the importance of the Palestinian issue in the region and the readiness of Iraqi leaders to present a unified front. The implications of this unanimous support could have far-reaching effects on the broader regional dynamics and the ongoing Israeli-Palestinian conflict.
A Meeting of Minds
Adding to the significance of this development, Ziad al-Nakhala, the Secretary-General of the Palestinian Islamic Jihad movement, recently visited Iraq. During his visit, he met with Iraqi President Abdullatif Jamal Rashid and Prime Minister Mohammad Shia al-Sudani. The discussions revolved around the Palestinian issue, Israel’s practices, and the necessity for Palestinian unity.
The Iraqi leaders expressed their support for the Palestinian cause and their readiness to stand against Zionist aggression. This high-profile meeting further solidified the Iraqi leaders’ commitment to Palestine and underlined the significance of the Palestinian issue in regional affairs.
Implications of the Unanimous Support
The unanimous support for Palestine from Iraq’s leading political figures could have significant implications for the region and the Israeli-Palestinian conflict. It sends a strong message of solidarity and unity, possibly influencing other nations in the region to take a stauncher stance on the issue.
Moreover, it could potentially shift regional dynamics, sparking further dialogues and negotiations for the resolution of the Israeli-Palestinian conflict. However, the precise impact remains to be seen as the situation unfolds.
Looking Ahead
This development signifies a significant step in the ongoing Israeli-Palestinian conflict. It emphasizes the importance of the Palestinian issue in the region and encourages a unified approach towards its resolution. The unanimous support from these influential Iraqi figures may well serve as a catalyst for change in the broader regional dynamics.
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.
[Iraq boots-on-the-ground report]
FIREFLY: They are saying within two weeks it will be the first step of the electronic transfer formation.
FRANK: In two weeks they told Iraqi citizens they will be the first step of the electronic transfer formation? Which started on the 28th of last month? So what are your intentions in two weeks CBI? What are you sending across your border internationally?
[Iraq boots-on-the-ground report]
FIREFLY: We are celebrating our independence and being a sovereign country...Sudani...talking about how we will not allow others to rule over us...
FRANK: Congratulations...your country is now restriction free...You are a sovereign country...Your country is secure and stable...These are the two magic words Dr. Shabibi the author of your monetary reform plan wanted before he released the new exchange rate and new currency.
We see the evidence of the financial international transactions on the 28th. We see the private banks opening with Aki [Guru Walkingsticks Iraq bank friend in the US- October 1st]. We see Independence Day [Tuesday October 3rd].
The only thing we're not seeing is the HCL. Why? Let me ask you something. Did they release the new exchange rate? No. What did I tell you? The moment you see the HCL in the next nanosecond you will see the new exchange rate...
Iran Urges Iraq to Implement Security Pact, Reveals Regional Tensions
Iran’s highest-ranking military officer has issued a call to arms, urging Iraq to enforce a security pact signed earlier this year in March. The agreement, crafted with an eye towards regional stability, calls for the disarmament of groups within Iraq that have been deemed anti-Iran. The general’s plea underscores Iran’s growing concerns about potential security threats emanating from Iraq, and the expectation that Iraq will take more decisive action to address these concerns. This unfolding situation has far-reaching implications for the relationship between the two countries and the broader regional dynamics.
Understanding the Security Pact
The security pact, signed between Iran and Iraq, aims to disarm groups within Iraq that operate against Iran. Iran has long accused the Kurdistan Regional Government (KRG) of providing a safe haven for opposition groups, labelling them as ‘terrorist’ or ‘anti-revolutionary’. These groups, according to Iran, use border regions as launching pads for strikes against Iran.
Overseeing the implementation of the security pact is Iraq’s National Security Advisor, Qasim al-Araji, who leads a high-level security delegation tasked with visiting the Kurdistan autonomous region. The urgency of the issue is further underlined by a warning from Iranian Defense Minister, Mohammad Reza Ashtiani, stating that Tehran will not extend the disarmament deadline and may resort to military action if the terms of the agreement are not met by Iraq.
Unpacking the Regional Dynamics
This development is set against a backdrop of complex regional dynamics. Iran’s call for the enforcement of the security pact is not simply a bilateral issue between Iran and Iraq; it’s a matter that has the potential to influence the geopolitical landscape of the Middle East. The presence of anti-Iran groups in Iraq poses a significant threat to Iran’s national security and stability. The successful implementation of the pact could lead to a more secure region, which could, in turn, favour diplomatic relations and economic growth.
Future Ramifications
The enforcement of the security pact has the potential to significantly alter the regional dynamics in the Middle East. If Iraq successfully disarms the anti-Iran groups, it could lead to a reduction in cross-border incidents, fostering a more stable environment. However, if Iraq fails to meet the terms of the agreement, it could lead to a deterioration in Iran-Iraq relations and potentially escalate the conflict, with Iran threatening military action. This could further destabilize the region and have implications for international relations as well.
A Call to Action
In the end, Iran’s call for the enforcement of the security pact is a plea for stability and security in a region often plagued by conflict. The successful implementation of this pact could be a step towards deescalating tensions and fostering a more peaceful Middle East. However, the failure to do so could have grave consequences not just for Iran and Iraq, but for the broader region as well.