US Dollar Continues Upward Trend Against Iraqi Dinar Amid Economic Uncertainties, 8 OCT

 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, 8 OCT

   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.

Hivernant stop distribution of the dollar Iraq BY NADER FROM MID EAST

We have a dollar, but the withdrawal terrified the banks.” An Iraqi banker’s testimony about Sunday’s chaos, 8 OCT

 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

"RV UPDATE" BY PIMPY, 8 OCT

 Pimpy 

 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

 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

  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.

https://bnn.network/world/iraq/iraq-explores-diversification-of-gas-sources-for-power-stations/