Economist: Withdrawing the US Federal Reserve will end the dollar crisis
10-8-2023
Economist - Withdrawing the US Federal Reserve will end the dollar crisisInformation/Baghdad..
Former member of the Parliamentary Economics Committee, Abdul Hussein Al-Yasiri, today, Sunday, attributed the reason for the continued rise of the dollar to the American policy towards Iraq.
Al-Yasiri said in a statement to Al-Maalouma: “The solution to the dollar crisis lies in obtaining a portion of the Iraqi funds in the US Federal Bank.”
He added, “The rise in the dollar is due to excess demand and lack of supply, as well as America’s policy towards Iraq.”
He explained that “the government is required to put pressure on the Fed to provide sufficient cash from the dollar in order to meet the increasing demand and eliminate the so-called parallel market.”
During the current period, America has worked to destroy the Iraqi currency by imposing sanctions on Iraqi banks and banning the dollar under many pretexts, which in one way or another led to a severe financial crisis in the Iraqi markets.
Geopolitical Risks Stir Investment Markets Amid Unrest in Israel, 8 OCT
In recent times, global events have begun to stir the calm waters of investment markets, with the spotlight now focusing on Israel. Investors worldwide are closely observing the rising tensions and violent episodes that have become a recurring feature of the country’s socio-political landscape. This unrest, marked by sporadic attacks and counterattacks, has given rise to new uncertainties that could potentially influence investment decisions on a global scale.
Triggering the Shift to Safe Haven Assets
With the escalation in geopolitical risks, there is an anticipation of a shift in investor preferences towards safe-haven assets. These are investments that are expected to hold or increase their value during market turbulence. Assets such as gold, the U.S dollar, and U.S Treasuries, have traditionally served this role. They act as a financial buffer, protecting investors from a potential crash in the stock market or a downturn in the economy.
The Hamas attack that recently shook Israel was a stark reminder of the volatile situation in the region. The assault was openly lauded by Iran and Hezbollah, Iran’s Lebanese allies, adding another layer of complexity to an already intricate geopolitical scenario. This increasing instability has the potential to stimulate a move towards safe haven assets, as investors seek to mitigate risks and ensure capital preservation.
Implications for the U.S.
The implications of this situation extend beyond Israel’s borders, reaching as far as the United States. The U.S., already grappling with political discord in Washington, finds its position further weakened by these developments. Such geopolitical risks could potentially impact U.S. investments and policy decisions, particularly those related to the Middle East.
A Historical Perspective
Historically, geopolitical risks have often dictated the ebb and flow of global markets. Past events parallel to the current situation include the 1990-1991 Gulf War and the 2003 Iraq War. In both instances, the uncertainty and tension preceding military action triggered a market slump. However, these were followed by notable recoveries after the commencement of the U.S. led military interventions. Whether the present situation will follow this historic trend remains to be seen.
Looking Ahead
The future ramifications of the ongoing tensions in Israel are far from certain. Much depends on how the situation unfolds in the coming weeks and months. If the tension escalates into more significant conflict, the impetus towards safe haven assets could become more compelling.
However, it is crucial to remember that geopolitical risks are only one of many factors that investors must consider. The global economy is a complex and interconnected system, influenced by a multitude of variables. Therefore, investors must adopt a comprehensive and well-informed approach to navigate these uncertain times successfully.
This is one of the reasons the IQD investment is stalled. Article: "Iraqi Prime Minister to pay official visit to Russia next week" ...it's all connected. The Iraqi Prime minister will pay an official visit to Russia on October 10th and 11th...
Article: "Iraq to end all dollar cash withdrawals by Jan. 1 2024 -C.bank official" Breaking news..
.Iraq will bank cash withdrawals and transactions in US dollars as of January 1 2024 in the latest push to curb the misuse of hard currency reserves in financial crimes and the evasion of US sanctions on Iraq....This move aims to stamp out the illicit use of some 50% of the 10 billion US dollars that Iraq imports in cash from New York Federal reserve each year...guys this is major.
Clare
Wall Street Journal Article: "Iraq Asked for $1 Billion in Cash. This Time, Washington Said No."
Quote: "Iraq is seeking a special shipment of $1 billion in cash from the Federal Reserve Bank of New York, but U.S. officials have withheld approval, saying the request runs counter to their efforts to rein in Baghdad’s use of dollars and halt illicit cash flows to Iran.
Since the U.S. invasion of Iraq two decades ago, the U.S. has supplied $10 billion or more a year to Baghdad on semimonthly cargo flights carrying massive pallets of cash, drawn from Iraqi oil sales proceeds deposited at the Fed.
In Iraqi hands, the bank notes have become a lucrative source of illicit dollars for powerful militias and corrupt politicians, as well as for Iran, U.S. officials say"
Iraq’s Bold Step to Combat Water Crisis: Plans to Fill 3,000 Fish Lakes, 8 OCT
Water scarcity has been a persistent issue in Iraq for years, threatening the livelihoods of millions and leading to a significant decline in fish production. The Iraqi government, recognizing the urgency of this issue, has unveiled a comprehensive plan to address the water crisis. The initiative revolves around filling 3,000 fish lakes across the country by harnessing water from the country’s major rivers, the Tigris and Euphrates, and other water sources. The ambitious project aims to bolster water resources, provide alternative water sources for agriculture and livestock, and support the fishing industry.
Addressing a Multifaceted Issue
The water scarcity crisis in Iraq is not just an environmental issue. It is a complex problem that intertwines with the political and economic fabric of the country. As Iraq’s development hinges significantly on its water resources, the government’s initiative to fill the fish lakes represents a significant step towards sustainable water management and reducing reliance on scarce groundwater.
“The water crisis in Iraq is a ticking time bomb,” says an expert familiar with the matter. “It’s not just about the environment; it’s about livelihoods, food security, and the very future of the country.”
Implications for Local Communities and the Fishing Industry
The initiative is expected to be a game-changer for local communities who have been battling with water scarcity. By improving access to water, the project aims to enhance agricultural productivity, bolster food security, and indirectly improve the quality of life for thousands of Iraqis.
Additionally, the project will potentially revive the country’s faltering fishing industry. By filling the fish lakes, the government aims to restore fish stocks, thereby supporting the livelihoods of fishermen who have been hit hard by water scarcity, pollution, overfishing, and climate change.
Regulating Use and Ensuring Sustainability
While the initiative promises significant benefits, the government is aware of the potential risks of overuse. To ensure the long-term sustainability of the project, authorities plan to monitor and regulate the use of water from these lakes. This approach demonstrates a commitment to sustainable water management, a crucial aspect often overlooked in such large-scale initiatives.
A Step Towards Greater Reforms
While filling the fish lakes is a significant step, experts stress that more comprehensive reforms are needed to fully address the water crisis. There is a pressing need for Iraq to negotiate with neighboring countries for fair water allocation, promote modern irrigation methods, and take concrete actions to combat climate change.
However, the government’s recent initiative to fill the fish lakes across the country provides a glimmer of hope. It symbolizes a shift towards recognizing and addressing the water crisis in Iraq, which is a commendable step towards a more sustainable future.
Historic Gas Deal: Iraq to Import 10 Billion Cubic Meters Annually from Turkmenistan, 8 OCT
In a significant development that underscores the deepening ties between Iraq and Turkmenistan, the two nations have entered into a preliminary agreement for Iraq to import 10 billion cubic meters of natural gas annually from Turkmenistan. The deal is expected to make a substantial contribution towards meeting Iraq’s growing energy needs, particularly for power generation.
Significant Step Towards Expanding Cooperation
The agreement was reached during a meeting between Iraqi and Turkmen gas sector officials in Turkmenistan. Both parties have agreed in principle to work out the modalities of importing specific quantities of gas to meet Iraq’s burgeoning energy demands. A memorandum of cooperation is projected to be finalized by the end of the year, detailing the proposed quantities and mechanisms for cooperation between the two countries.
This deal is viewed as a significant step towards expanding cooperation with gas-producing nations. Turkmenistan, a key player in the global gas industry, emerges as a crucial partner for Iraq in this context. The final agreement, expected to be signed before the end of 2023, will further cement this partnership.
Historical Context and Future Ramifications
The gas deal comes at a time when Iraq is grappling with severe power shortages. With an overburdened and aging infrastructure, Iraq’s power sector has struggled to keep up with the growing demand for electricity. The gas import deal with Turkmenistan signifies Iraq’s concerted efforts to diversify its energy sources and reduce its reliance on fossil fuels.
The future ramifications of this deal are manifold. Firstly, it will bolster Iraq’s energy security by ensuring a steady supply of natural gas to power its electricity plants. Secondly, it will foster deeper economic ties between Iraq and Turkmenistan, possibly paving the way for more bilateral trade and investment opportunities. Lastly, it could potentially influence geopolitical dynamics in the region, given the strategic significance of energy resources.
Next Steps and Anticipated Developments
While the initial agreement has been reached, several aspects need to be ironed out. These include legal, commercial, financial, and organizational dimensions of the future joint activities in the gas industry. Further negotiations will be held in Ashgabat during an international exhibition and conference in October.
Despite the challenges ahead, the deal has been greeted with optimism. An energy expert opined, “This agreement is a game-changer for Iraq. It not only addresses its immediate energy needs but also lays the foundation for a long-term, strategic partnership with Turkmenistan.”