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.
