In Baghdad and Erbil: A Tale of Two Markets and the Dance of Currencies, 30 OCT

In Baghdad and Erbil: A Tale of Two Markets and the Dance of Currencies, 30 OCT 

In the bustling markets of Baghdad, the exchange rate of the US dollar to the Iraqi dinar is on the rise. In the hushed, cooler climes of Erbil, the capital of the Kurdistan Region, it is subtly dropping. It’s a dance of numbers and currencies, a testament to the ebb and flow of Iraq’s economic pulse. It’s a story of two cities, two markets, and one currency caught in the middle.

A Tale of Two Markets

The US dollar, in the heat of Baghdad’s markets, rose at the opening of Al-Kifah and Al-Harithiya stock exchanges, hitting 161,550 dinars. But in Erbil, it fell slightly, with exchange shops selling at 161,250 dinars. The fluctuation, though minor, has caused a ripple in the markets, especially amidst the soaring demand for the Iraqi Dinar in Erbil.

(Read Also: Dagestan: A Microcosm of Rising Anti-Semitism Amid Israeli-Palestinian Conflict)

The Drivers of Currency Fluctuation

Behind these numbers lie various influencers. The demand for the Iraqi dinar in Erbil is a clear signal of the US dollar’s safe-haven status. This is driven by political instability, economic uncertainty, and concerns about the stability of the Iraqi dinar. The rise in Baghdad, on the other hand, could be attributed to the overall economic conditions in Iraq, which include political instability, security concerns, and a lack of diversification in the economy. These factors can depress the value of the Iraqi dinar, leading to an increased demand for US dollars.

(Read Also: US Vice-President Kamala Harris Rules Out Military Intervention in Israel-Gaza Conflict)

While these local factors drive fluctuations, global economic factors also play a part. The performance of the US economy, global trade dynamics, and geopolitical events can all impact the value of the Iraqi dinar. Therefore, the dance of currencies is choreographed by both local and global forces.

The Role of Central Banks

However, the exchange rate is not solely a product of market forces. Central banks, including the Central Bank of Iraq, have the power to intervene in foreign exchange markets to stabilize exchange rates and manage the value of the national currency. In Iraq, the Central Bank has implemented various measures to stabilize the exchange rates and maintain the value of the Iraqi dinar. These measures include interventions in the foreign exchange market, the implementation of monetary policies, and the management of foreign currency reserves.

The fluctuation in the exchange rates of the US dollar against the Iraqi dinar underscores the challenges of managing an economy in a volatile global economic environment. It also highlights the importance of implementing sound economic policies, diversifying the economy, and addressing underlying structural issues for long-term stability and growth.

In a world where currencies are not just mediums of exchange but barometers of national economic health, the tale of the US dollar and the Iraqi dinar in Baghdad and Erbil is a story that reflects the complexities of Iraq’s economic landscape.

The Dollar’s Dance: Geopolitics and the Global Commodities Market, 30 OCT

The Dollar’s Dance: Geopolitics and the Global Commodities Market

In the bustling exchange shops of Baghdad and Erbil, the US dollar surged on Monday, following the closure of Al-Kifah and Al-Harthiya stock exchanges. The dollar prices reached 161,900 Iraqi dinars for every $100, compared to the morning rates of 161,550 dinars against $100. But behind these figures, lies a deeper economic narrative – a reflection of the complex interplay between geopolitics and global commodities market.

The Dollar’s Dance in Baghdad and Erbil

Exchange shops in the local markets of Baghdad reported a rise in selling prices, reaching 163,000 Iraqi dinars for $100, while the purchasing price stood at 161,000 dinars for the same amount. In Erbil, the selling price reached 161,500 dinars for every $100, and the purchasing price at 161,400 dinars.

These fluctuations in dollar prices are not mere daily market variations. They are the echoes of a global commodities market responding to the reverberations of conflict. And this time, the conflict in question is the ongoing Israel-Gaza tension.

Ripples in the Oil Market

The World Bank warns that the conflict, initiated by an attack from Hamas on Israel, may lead to a significant surge in commodity prices, particularly oil and gas. Energy prices have already seen a 9% increase since the start of the conflict, with potential for further shocks. This situation echoes historical events such as the Arab oil embargo, Iranian revolution, and the Iraqi invasion of Kuwait, which caused substantial disruptions in oil supplies.

If the conflict escalates significantly, it could disrupt oil supplies extensively leading to an initial surge in oil prices and impacting other markets. The World Bank’s commodity price index has already experienced a 5% rise in Q3 due to supply-side issues in the oil markets. The World Bank forecasts average oil prices at $90 a barrel this quarter but has also provided three different scenarios based on varying levels of disruption: small-disruption scenario, medium disruption, and regional conflict.

Global Impact and the Future

The global reliance on oil has lessened with a geographically diverse supply, which could potentially mitigate some of the effects of escalation. In addition to oil and gas, natural gas and gold prices are also expected to rise due to the conflict, with futures for these commodities anticipated to cross $2,000 an ounce.

Overall, the World Bank’s warning highlights the potential for significant disruptions in commodity markets and the broader economy if the conflict escalates further. Investors and policymakers across the world should closely monitor the situation. And as the dollars dance in Baghdad and Erbil, it serves as a reminder of how closely our global economies are intertwined, shaped by geopolitics and the tides of conflict.

https://bnn.network/finance-nav/the-dollars-dance-geopolitics-and-the-global-commodities-market/

"RV UPDATE" BY WOLVERINE & CLARE, 30 OCT

 Wolverine 

 “Already in South America some people have been told which bank they have to go. We are close, so stand by everyone.”

Clare 

 Article:  "Iraq is working to join the World Trade Organization (WTO). " 

 Quote:  "In the meeting, Al-Hashemi reviewed Iraq’s current efforts and its plan for the next stage in completing the technical files...

and preparing them in accordance with the organization’s conditions and fruitful cooperation with international organizations supporting Iraq’s accession to the organization and its quest to obtain full membership in the organization.”

 Article "In response to Al-Sadr's call, a parliamentarian announces the start of collecting signatures to close the American embassy in Baghdad"

FRANK26….IQD UPDATE 10-30-23…….REMEMBER PART 1

Baghdad.. 6 years imprisonment for the counterfeit currency promoter, 30 OCT

 Baghdad.. 6 years imprisonment for the counterfeit currency promoter

On Monday, the Karkh Criminal Court sentenced a person who promoted counterfeit currency to six years in prison.

The media center of the Supreme Judicial Council has issued a statement regarding an individual who was found in possession of counterfeit Iraqi currency. The individual was caught with 7,131 counterfeit notes, each with a denomination of 25,000 Iraqi dinars. The statement also noted that the counterfeit currency was printed in Turkey and the individual was caught while attempting to introduce it.

According to Article 52/1/A, B of the Central Bank of Iraq Law No. 56 of 2004, these provisions have been implemented.

Iraqi Dinar🔥Al Sudani Says Exchange Rates Has Been Announced 2023🔥iraqi ...

"RV UPDATE" BY MILITIAMAN, 30 OCT

 Militia Man 

 There's progress...going into an International world is evident.  There's proof of it...

 Every one asks why isn't it [HCL] done yet?...Everybody wants it today...I know everybody wants it.  So do I, but the truth is we're seeing things that's never been done before...They have the law out there and written.  They just haven't got to it. ..I think we all know...if they were going to do it at 1310, 1305 or 1320 they would have already done this by now and they haven't...I hope and pray...the thing that they need is an international Article VIII compliant exchange rate...

 A lot of different things that go on behind the scenes that your average person has no idea that it's even going on.  They're just looking for what we all are to some degree - When's it going to go, when's it going to happen.  But it's a complex process and the awesome thing about it is what we're seeing in public and behind the scenes is showing it's coming.  It's coming fast.  It's coming furious.  It's good.