My contact from the CBI has told me...that January 2024 is their target and is the best most opportune time to reinstate the dinar. In my last conversation with my contact I was toldthey were given the green light to begin the re-education criteria to teach the citizens about the newer lower denominations and how the conversion back to the lower denominations as they had before 2004 is going to take place...I am still being very hopeful for a January 2024 reinstatement...
I...want to make it VERY, VERY clear to everyone that the IQD is NOT yet reinstated on FOREX...“NOT YET TRADING ON FOREX”. Yes, if you go to FOREX there is a benchmark rate for the IQD but it is a linked rate only, linked back to the CBI. It is a page holder. Yes, this is still a very good thing and I don’t want to down play it either...The IQD rate is there...only in preparation for the future. But there is not yet any trading ability to buy or sell.
Article: "NEW STATEMENT FROM OIL ON THE DRAFT OIL AND GAS LAW" Quote: “the government is committed to approving this law.” Within the current government session, and it is also within the government curriculum.” This is of course excellent news for us...
As the sun rose over the bustling markets of Baghdad on Thursday, the exchange rate of the US dollar against the Iraqi dinar took an upward leap. The dollar began the day at 162,250 dinars for every 100 dollars, a considerable upswing from Wednesday’s rate of 162,000 dinars. As the day unfolded, local exchange shops saw the selling price surge to 163,250 dinars, while the purchasing price hovered at 161,250 dinars for every 100 dollars, hinting at a mounting demand for the US currency.
A Tale of Two Cities
Meanwhile, in Erbil, the capital of the Kurdistan Region, the dollar’s narrative took a slightly different turn. The selling prices in banking shops settled at 161,700 dinars, and the purchase price at 161,600 dinars for 100 dollars, signifying a modest decline.
Global Shifts: The US Dollar’s Dance
While the US dollar’s dance with the Iraqi dinar played out, a parallel performance was unfolding on the global stage. The US dollar fell against most currencies on Wednesday, a seemingly counterintuitive response to Federal Reserve Chairman Jerome Powell’s statements, interpreted by investors as a hint that the central bank may be putting a pause on interest rate hikes. The Federal Open Market Committee (FOMC) left rates unchanged in the 5.25-5.50 range, where they have been since July. This, coupled with data revealing a slowing US economy, put the dollar on the defensive for parts of the session.
Reading the Iraqi Dinar’s Pulse
Against this backdrop, the Iraqi dinar’s dance with the US dollar can be read as a barometer of Iraq’s economic health. The country grapples with high inflation and a large fiscal deficit, factors that could be contributing to the rising demand for the US dollar. The inclination towards the US currency might be driven by a lack of confidence in the stability of the Iraqi dinar.
Global Implications and Future Projections
The decline in the US dollar can impact countries and sectors differently. It can benefit countries exporting to the US, making their goods more competitive. It also eases the burden of dollar-denominated debt for emerging market economies. Contrarily, it can lead to higher import prices and inflation in countries heavily reliant on imports. As for the future, a keen eye on the Federal Reserve’s stance, the health of the US economy, and the economic stability within Iraq will be critical in forecasting the dance of these currencies.
Iran’s Railway Extension to Iraqi Kurdistan: A New Chapter in Regional Diplomacy
In a move that could redraw the economic and diplomatic contours of the Middle East, Iranian President Ibrahim Raisi recently announced an ambitious plan to extend a railway line from Iran’s Kurdistan Province to the Bashmakh border crossing in Iraqi Kurdistan. Made during the inauguration of the Hamedan-Sanandaj railway road in Sanandaj, the capital of Iran’s Kurdistan Governorate, the proposed project aims to enhance rail transport, facilitating passenger and goods transportation between Iran and the Kurdistan Region in Iraq.
Connecting Borders, Building Bridges
The proposed railway extension signifies a significant development in the economic and diplomatic relations between Iran and Iraq. It is poised to transform transportation links between the two regions, potentially boosting trade and economic cooperation. The railway line would offer an efficient and cost-effective mode of transportation for both passengers and goods, paving the way for increased cross-border trade and economic integration.
Iran’s Growing Regional Influence
The railway line extension also underscores Iran’s expanding influence in the region. By investing in infrastructure projects in Iraq, Iran is fortifying its economic and political ties with its neighbor. This strategic move unfolds at a time when Iran is striving to increase its regional influence and counterbalance the sway of other powers, particularly the United States.
A Diplomatic Dance: Kurdistan and France
In parallel, another diplomatic choreography unfolds as the Kurdistan Region in Iraq strengthens its ties with France. The President of the Kurdistan Region is planning a visit to Paris, a move that could further deepen bilateral relations. This development underscores the growing importance of the Kurdistan Region in regional politics and its growing recognition by major powers.
Challenges and Concerns
Despite these positive developments, the region is not without its challenges. The Baghdad Conference III, intended to convene regional and international stakeholders to discuss Iraq’s challenges, was postponed due to security concerns. This delay reflects Iraq’s fragile security situation and ongoing tensions among different factions and external powers.
Moreover, Iraq and Iran have engaged in discussions over shared water resources, highlighting the escalating importance of water resources in the region and the need for cooperation in addressing water scarcity and managing water resources effectively.
Economic Pivots
In the economic sphere, fluctuations have been observed in the USD/IQD exchange rate, closing higher in Baghdad but ticking lower in Erbil, reflecting the intricate economic situation in Iraq. In the oil sector, Russia’s LUKOIL has inked a significant agreement with Iraq to double the production of the West Qurna 2 oil field, one of the world’s largest. This pact could have a transformative impact on Iraq’s oil industry and its economy.
In conclusion, these developments underscore the complex geopolitical dynamics and intricate interplay of economic, political, and security factors shaping the region. The planned railway line between Iran and Iraqi Kurdistan, the strengthening diplomatic ties between the Kurdistan Region and France, and the discussions over water resources between Iraq and Iran all epitomize the evolving regional dynamics and the unrelenting efforts of different actors to enhance their influence and secure their interests.
FIREFLY: We have big new report on television saying the Iraqi parliament is in full support of the CBI and its actions to control the exchange rate for the monetary reform.
FRANK: The only reason parliament is saying you're now going to have your new exchange...your HCL...your budget...you're now going to have everything that was promised to you by Sudani and Alaq is because they lost full control of the corruption...
FIREFLY: The CBI is on the news today warning people not to deal with unlicensed companies.
FRANK: If you're not dealing with unlicensed businesses then those companies are going to go out of business...And fines are going to drive them out of business. There's no more problems with banks that are using the American dollars in Iraq. They are being eradicated.
Currency Auctions in Iraq and Azerbaijan: A Dance with Economics Amidst Diplomacy and Security
In the tremors of the global economic landscape, two nations – Iraq and Azerbaijan – are striving to stabilize and bolster their currency markets, with auctions that have rippled across the financial world. On Thursday, the Central Bank of Iraq (CBI) auctioned over $200 million in foreign exchange, a move that echoed Iraq’s persistent endeavor to stabilize its currency and stimulate economic growth.
The Currency Auction: A Telling Tale
Of the total $200 million, a staggering $176,406,543 was funneled to bolster foreign balances in the form of transfers and credits, while a humble $24,071,600 was allocated for cash deals. Seven banks facilitated these cash deals, with 19 other banks meeting requests pertaining to foreign balance. They were not alone. A total of 61 exchange and brokerage companies also partook in the auction, amplifying the depth and liquidity of Iraq’s foreign exchange market.
But this auction was not just about numbers. It was an emblem of Iraq’s commitment to maintaining a favorable foreign exchange reserve and strengthening its external financial position. This would in turn augment Iraq’s capability to meet its international obligations and manage its foreign exchange risk.
The Shadow of the Baku Auction
Meanwhile, a similar narrative unfolded in Azerbaijan. The Central Bank of Azerbaijan (CBA), with the State Oil Fund of Azerbaijan (SOFAZ), also held a currency auction. Demand at this auction spiked to $57.4 million, a 40 percent increase from the previous auction. This surge in demand underscores the positive economic conditions and growing confidence in the Azerbaijani currency, mirroring the strengthening of the country’s financial system.
Diplomacy and Security: The Other Side of the Coin
While these auctions painted a positive financial picture, diplomatic and security concerns were not far behind. The president of Kurdistan is set to visit Paris, a move that could fortify diplomatic ties between the Kurdistan Region and France, and promote economic development and stability in the region.
However, the postponement of the significant ‘Baghdad Conference III’ due to security concerns casts a long shadow over Iraq’s socio-political landscape. This highlights the challenges and uncertainties the country grapples with, even as it strives towards economic growth and foreign investment.
The Currency Dance: A Tale of Two Cities
A curious dance unfolded in the Iraqi market. The US dollar, while strengthening against the Iraqi dinar in Baghdad, slightly declined in Erbil. The fluctuation in the exchange rate reveals the volatility and sensitivity of the currency market, a marionette in the hands of economic conditions, political stability, and global market trends.
These developments in Iraq and Azerbaijan, coupled with the diplomatic visit and security concerns, bring to light the complexities and challenges these nations face. Yet, they also illuminate their resilience and determination to forge ahead towards economic growth, stability, and international cooperation.
The Dance of Dollars and Dinars: Understanding Iraq’s Economic Pulse
The soft hum of currency exchange counters in the bustling markets of Baghdad bore witness to a significant event. The U.S. dollar (USD) exchange rate against the Iraqi dinar (IQD) closed higher, reaching 162,600 IQD for 100 USD at both the al-Kifah and al-Harithiya Central Exchanges. This was a surge of 350 IQD from the opening rate, a dance of numbers that tells a tale of economic currents.
The Currency’s Pulse
The exchange rate between the Iraqi dinar and the U.S. dollar is a vital socioeconomic heartbeat, reflecting the stability and confidence in the Iraqi currency. An increased rate implies a growing appetite for the USD, possibly due to inflation, political tremors, or economic uncertainty. Conversely, a diminished exchange rate signifies a robust Iraqi dinar and heightened faith in the local currency.
A Turbulent Journey
The journey of the Iraqi dinar against the U.S. dollar has been a tumultuous one in recent years. It has been buffeted by a storm of political and security situations in Iraq, economic factors such as inflation, and the oscillating price of oil, Iraq’s main revenue source. The USD, often viewed as a safe haven currency, becomes the asset of choice for investors during uncertain times, leaving the local currency in the shadows.
Government Measures and Economic Implications
The Iraqi government, aware of the fluctuations, has taken measures to stabilize the exchange rate, from implementing monetary policies to maintaining a flexible exchange regime. However, the rate remains vulnerable to external factors, such as shifts in global oil prices or geopolitical squabbles in the region.
The exchange rate’s ripple effects touch every corner of the Iraqi economy. A weak dinar inflates the cost of imports, leading to an upsurge in prices for goods and services, burdening consumers, and fueling inflation. Conversely, a robust dinar renders exports pricier, hampering the international competitiveness of Iraqi goods.
Beyond the exchange rate, other economic elements, such as interest rates, government policies, and economic indicators, also influence the overall health of the Iraqi economy. It is crucial for the Iraqi government to continue implementing reforms and policies that foster economic stability and lure foreign investment.
The exchange rate between the Iraqi dinar and the U.S. dollar operates as a barometer of Iraq’s economic climate. It mirrors investor confidence and the stability of the local currency. Despite the volatility, the Iraqi government has taken strides to stabilize the currency and propel economic growth. Still, the exchange rate remains susceptible to external influences, underscoring the government’s challenge to sustain economic stability and attract foreign investment.
