On the WTO site...you'll come to the ITC (International Trade Center) help system. Click on that...and type in Iraq...You can see they're set up on the WTO's website. Why that is important is because...these guys are already Hooked up. They're already set up. They have code numbers already today at the WTO. Even thought they're not international completely yet, they haven't published ascension, you can see though they're ready to go. It's really phenomenal.
This gentleman is fascinating. He's giving Al-Sudani some kudos but he's also poking him in the eye a little bit because if you remember Al-Sudani said and confirmed to his people more than once that the dinar is stronger than the dollar and this guy gives a reality check, well it's not today.
Article quote "The Sudanese confirm that the dinar is stronger than the dollar but the reality is currently the opposite." He's not wrong at this moment in time but the plan is to be [stronger]...
Article quote: "...the government's plan included establishing 1,600 project...The budget for ongoing project will reach the government in the coming days..."
That's the 2023, 24, 25 budget we've been talking about...they haven't funded anything and they haven't shown any money to be spent...but here he's saying, "The budget for ongoing projects will reach the governance in the coming days..." They've been paying for all this stuff in dollars. The dollar is going to end...by January.
The Dance of Currencies: Iraqi Dinar Against the US Dollar in Kurdistan
The market stalls of the Kurdistan region in Iraq are bustling with activity. Amid the cacophony, the quiet yet persistent hum of currency exchange can be discerned. Today, the Iraq dinar stands at 161,250 against 100 US dollars, a testament to the relentless dance of global economics.
The Unseen Puppeteers: Politics and Economics
The dinar’s journey is a narrative of resilience. From the onslaught of wars to the undulations of political instability, the currency has endured. Its current stability, despite minor fluctuations against the US dollar, is a testament to Iraq’s ongoing economic recovery.
However, it’s vital to appreciate the varying regional dynamics within the country. The exchange rate reported today is specific to the Kurdistan region. Elsewhere, in the labyrinthine markets of Baghdad or the sprawling bazaars of Basra, the story could be different. It’s a reminder of how economic landscapes can diverge within the same national frontiers.
Exchange rates dance to the tune of the international forex market, a global platform where currencies pirouette in a ballet of buying and selling. Factors such as supply-demand dynamics, economic indicators, geopolitical events, and government policies choreograph this dance.
A nation’s currency exchange rate is not merely a number; it’s a reflection of its economic health. It influences the cost of imports and exports, shaping the purchasing power of individuals and businesses. A strong exchange rate can make imports cheaper and exports more expensive, and vice versa.
The exchange rate between the Iraqi dinar and the US dollar is more than an economic indicator. It’s a beacon for those involved in international trade and investment. It holds significance for those sending or receiving remittances, and for travelers who swap currencies.
The current exchange rate implies that 1 US dollar equals 1612.50 Iraqi dinars. Thus, converting 100 US dollars would yield 161,250 Iraqi dinars. However, this rate is not static. Like a pendulum, it swings throughout the day, reflecting the dynamism of the market.
In conclusion, understanding the exchange rate is not merely about currency conversion. It’s about deciphering the economic narrative of a nation, its global standing, and the implications for its people. Today, as the dinar stands at 161,250 against 100 US dollars in the Kurdistan region, it tells a tale of economic resilience in the face of adversity.
THE GOVERNMENT IS WITHDRAWING ITS HAND FROM THE DOLLAR BATTLE.. THE SOLUTIONS ARE OVER AND THE MARKET IS “FREE” AT THE EXCHANGE RATE
Over the past weeks, silence has clearly overwhelmed the relevant authorities and authorities in Iraq at the governmental and banking levels in the face of the continued rise in exchange rates. In contrast to the past months, when the government and the central bank issued a package of quick decisions and measures immediately after the rise in exchange rates, except this time, with a break in… The exchange rate reached record numbers exceeding 160 thousand dinars per 100 dollars. It seems that the relevant authorities have “surrendered” in the battle for the dollar.
This matter can be reached not only from the absence of government and central bank measures that have come to prevent the smuggling of the dollar without taking measures to prevent its rise in the market
, as the Central Bank previously issued various packages for this, but even in the statements of the Central Bank Governor, Ali Al-Alaq, and Prime Minister Muhammad Shiaa Al-Sudani, It clearly shows a “tone of surrender” and leaving the exchange rate without intervention, relying only on traders who buy dollars from the central bank and betting that commodity prices will not rise depending on these traders.
For example, the Governor of the Central Bank, Ali Al-Alaq, said last week during a session of the Ministerial Council for the Economy, that “the exchange rate depends mainly on imports and not on local production, and that the exchange rate in Iraq has peculiarities because it is linked to the price of oil as it is the largest source of providing hard currency,” noting. He pointed out that “many factors affect the exchange rate, the most important of which is the leakage of the dollar to neighboring countries and internal dealing in local markets in a currency other than the national currency, as well as the lack of complete control over ports and smuggling.”
Which means that the exchange rate will continue to rise as long as there is import, uncontrolled outlets, and oil pricing in dollars, as all of these conditions are sustainable and cannot be changed.
For his part, Al-Sudani said in a press conference yesterday, Tuesday: “We support some banks that we trust are good and have achieved success, in order to be part of the solution to the dollar crisis,” adding, “One of the problems we face is that Iraqi law does not contain strong penalties.” And strict measures against those who are arrested as speculators in the dollar exchange rate.”
It is another indication that it is not possible to do anything, whether for speculators or for the rising dollar prices, in clear statements that are consistent with the Iraqi authorities’ tendency to leave the market dollar price file without interference, that is, more like a flotation.
This is confirmed by economic affairs researcher Haider Al-Sheikh, today, Wednesday (October 25, 2023), stressing the difficulty of ending the crisis of the rise of the dollar in Iraq.
The sheikh told “Baghdad Today”, “The crisis of the rise in the dollar exchange rate does not end, and the central bank has become unable to control the market, and some banks, exchange companies, and merchants have manipulated the price of the dollar. ” He added, “This is because the Central Bank imposed any sanctions on banks, exchange companies, and merchants on the price of the dollar, which manipulate the exchange rate. Therefore, the dollar exchange rate will stabilize at 165 during the next two days, and will continue to rise further during the coming days. “
He pointed out that “there are problems in banking reform and major challenges facing the government, and the current dollar exchange rate in the markets is the price of currency speculators .”He added, “There are entities, private banks, merchants, and owners of banking companies who are seeking to keep the dollar exchange rate at the current price .”
U.S. Praises Security Cooperation with Iraq after Talks with Sudani, as Iraqi PM Treads Carefully
WASHINGTON DC, United States (Kurdistan 24) – U.S. officials praised Iraq’s security cooperation, following official conversations with Prime Minister Mohammed Shia al-Sudani. Sudani is treading carefully between Iraq’s partnership with Washington, including its dependence on U.S. forces to assist in the fight against ISIS, and the pressure that Iran exerts on his government, particularly through militias that Tehran supports.
Iran has been a vociferous backer of Hamas in its war with Israel, and pro-Iranian militias throughout the region have adopted a similar posture. Indeed, as The Wall Street Journal warned on Wednesday, “The conflict risks spilling over into a regional confrontation with Iran and the web of anti-Israel Islamist militant groups that it backs, which spreads from Yemen and Iraq to Syria and Lebanon.”
U.S. Discussions with Sudani
On Saturday, following four successive days of strikes aimed at U.S. forces in Iraq and Syria, the Iraqi Prime Minister publicly affirmed his government’s commitment to protect U.S. troops in Iraq.
Later that day, two senior U.S. officials spoke with Sudani. One was Secretary of Defense Lloyd Austin, who thanked Sudani “for today’s announcement affirming his government’s full commitment to protect U.S. forces who are in Iraq at the invitation of the Iraqi government,” according to a U.S. summary of their conversation.
Austin noted that U.S. and Coalition forces “remain in Iraq in support of the Iraqi Security Forces to achieve the enduring defeat of ISIS,” the U.S. statement explained.
It concluded, explaining that Austin had also “conveyed the importance of protecting U.S. and Global Coalition personnel and advisors, convoys, and diplomatic facilities.”
U.S. Secretary of State Antony Blinken had a similar conversation with Sudani on Saturday, but it went further in outlining areas of shared concern between the U.S and Iraq.
Blinken welcomed the Iraqi government's “condemnation of the recent attacks and threats to U.S. and Coalition personnel in Iraq,” and he urged Sudani “to pursue those behind the attacks and fulfill Iraq’s commitment to maintain the security at these installations,” according to a U.S. summary of their discussion.
The two men also discussed the war between Israel and Hamas, and both affirmed their intent to coordinate to address the deteriorating humanitarian situation in Gaza.
The U.S. summary concluded by affirming that they had “renewed their commitment to continue strengthening the U.S.-Iraq 360-degree partnership and reaffirmed the principles in the bilateral Strategic Framework Agreement,” which was initially concluded in 2008 in the last days of the George W. Bush administration and reaffirmed by subsequent presidents.
On Wednesday, the U.S. ambassador to Iraq, Alina Romanowski, followed up with a tweet in which she expressed her appreciation for Sudani’s “productive call” with Austin, which had affirmed “the importance of the U.S.-Iraqi partnership in supporting regional security.”
The European Union in Baghdad
Also on Wednesday, a delegation from the European Union (EU), led by Jill Rustin, Head of Strategic Planning and Crisis Management in the EU’s Foreign Ministry, visited Baghdad and met with Qasim al-Araji, Iraq’s National Security Advisor.
Citing a statement from Araji’s office, the Iraqi News Agency (INA) reported that the two sides had “reviewed the work of the European Union mission in Iraq and ways to enhance cooperation and partnership.”
Araji expressed “Iraq’s keenness to continue the relationship with the European Union,” INA reported, and “benefit from its expertise to develop the capabilities of our security forces.”
Araji also stressed that “protecting diplomatic missions in Iraq is an Iraqi duty,” and “the Prime Minister supervises this matter.” Sudani, he said, had “issued orders to the Ministry of Interior to tighten measures to protect diplomatic missions.” Thus, no threat exists to the security of missions and embassies in Iraq, Araji assured the visiting EU delegation.
The Militias as Instruments of Iranian Leverage
Rend Rahim, Iraq’s first ambassador to the U.S following the 2003 overthrow of Saddam Hussein’s regime, is basically sympathetic to Sudani.
Writing for the Arab Center of Washington DC, she described how the war in Gaza has strengthened the pro-Iranian militias in Iraq, particularly after the Oct. 17 strike on Gaza’s al-Ahli hospital.
Although Hamas claimed Israel was behind the attack, Israeli officials said—and U.S. intelligence concluded with “high confidence”—it was a misfired Palestinian rocket that had hit the hospital.
“The intelligence community reached its conclusion after examining multiple videos and using geolocation techniques” to trace the blast “to a rocket launched inside Gaza that suffered a mechanical failure mid-flight,” The Washington Post explained.
“An Israeli munition,” the Post continued, “such as a bomb dropped from the air or an artillery round,” would “have caused significant structural damage” and “left a large crater.” However, there was “only light structural damage” to the building.
Hamas’s erroneous claim, nonetheless, shook Iraq’s political scene, as Rahim recounted. “Hundreds of thousands of demonstrators in Tahrir Square the following day and on Friday October 20 denounced the United States and Israel and carried pictures of Iran’s Supreme leader, Ali Khamenei; slain commander of Iran’s Quds Force, Qassem Suleimani; and leader of Lebanese Hizbollah, Hassan Nasrallah.”
“Prime Minister Sudani faces dangerous times,” she concluded. “How the coming weeks unfold depends on Iran’s intentions, over which he has no control.” But, as she also noted, Sudani “is an astute politician.”
Al-Alaq: It is necessary to develop appropriate marketing plans to support digital financial inclusion in the country
On Thursday, the Governor of the Central Bank, Ali Mohsen Al-Alaq, convened a meeting to discuss the enhancement of the project aimed at spreading point-of-sale (POS) devices and promoting digital transformation in the country. A number of representatives from the Central Bank and electronic payment companies operating in the country were in attendance.
The bank issued a statement which was received by NRT Arabic. The statement mentioned that the meeting discussed the challenges of spreading point-of-sale (POS) devices and emphasized the importance of increasing geographical coverage to include all regions of Iraq.
The statement addressed problems related to using bank cards and settling financial amounts through national exchanges.
Al-Alaq emphasized the significance of the widespread availability of point-of-sale devices and their positive effect on the national economy and the lives of citizens. He also stressed the need to encourage citizens to use bank cards instead of cash and make it a priority for electronic payment companies and banks.
He emphasized the need for appropriate marketing plans to support financial inclusion and digital finance in Iraq.
BAGHDAD FAILS TO CONTROL THE DOLLAR, AND WASHINGTON PUTS PRESSURE ON IRAQ ECONOMICALLY DUE TO ITS SUPPORT FOR PALESTINE
(So….do you think in the midst of this crisis that the US is now going to give permission for Iraq to reinstate the dinar? Why so they can funnel more money to AMAS via IRAN? These intel gurus are all idiots! )
A member of the Parliamentary Finance Committee, Mustafa Al-Karaawi, said today, Tuesday, that the government of Prime Minister Muhammad Shiaa Al-Sudani has failed miserably to control the dollar exchange rate despite the plans and reforms that were prepared and launched in the past.
(I personally do not agree with this statement. Al-Sudani must work with the CBI and it is not his sole responsibility for monetary reform it is the CBI and the GOI who work together they told us this many times.)
Al-Karaawi confirmed, in an exclusive interview with Al-Mutala’ Agency, that “previous measures and meetings that took place between the government, the governor of the Central Bank, and the owners of government banks regarding controlling the price of the dollar and not trading it internally were of no benefit,” indicating that the government failed to impose its control over the dollar.
The stability of the dollar against the Iraqi dinar.” He added, “The Prime Minister met yesterday with the concerned authorities, to discuss the non-implementation of reform packages related to the price of the dollar,” calling on “Al-Sudani to take effective solutions like those issued by the Central Bank to control the dollar at border crossings and customs taxes.”
The member of the Finance Committee pointed out that there are American political influences that exert pressure on Iraq to put pressure on it economically, regarding its support for the Palestinian cause and advocacy for the people of Gaza against the Zionist occupation,” stressing that “Iraq seeks to address that issue and put pressure on the US Federal Bank to provide amounts in dollars and at a specific time.” .
He continued by saying, “Iraq’s position on the Palestinian issue is firm and will not change, and we reject all Zionist crimes committed by the occupation against the Palestinians, and this is an irrevocable decision.”
