”Central Bank Governor: Washington responds to all that Iraq needs in terms of dollars and meeting with it next month 28th of Nov.” This article was from yesterday. Quote: “There are no restrictions on Iraqi funds abroad” This is what we call “International” Awesome things are coming out of Iraq.
Question: I am hearing that a Dinar rate announcement is likely in the next couple days...are you hearing the same with reason for confidence?
MarkZ: I am hearing that.
In Iraq they are saying that the dinar will soon be the master currency again…meaning the most valuable.Before the invasion of Kuwait = Iraq had the most valuable currency in the world. Kuwait came in second… They are telling us very clearly we are still in the window…imo.
From Iraq: “The dinar will recover: Iraq nears imminent end of dollar crisis before end of 2023”
We all know only one thing that will cure the dollar crisis …and that’s a new higher dinar value. They are telling us this is coming….
Iraq Sets New Minimum Wage Standard: A Step Towards Economic Reform
The Chairman of the Finance Committee, Attwan Al-Atwani, has declared an agreement with the committee responsible for the Diwani Order salary scale, committing to a minimum salary of 425,000 Iraqi Dinars. This decision is expected to significantly affect public sector employees and could potentially set a new standard for minimum wage requirements in the Iraqi job market.
Steps Towards Economic Reform
The announcement is seen as a significant stride towards economic reform, potentially impacting the livelihoods of a multitude of Iraqi citizens. The new measure aims to establish a base income threshold, which could ultimately lead to improved living conditions and financial stability for many.
Implications of the Agreement
While the agreement primarily affects public sector employees, the implications could be far-reaching. Not only could this set a new standard for minimum wage in Iraq, but it could also lead to increased pressure on private sector employers to raise their wage scales. Moreover, the decision might have a ripple effect, prompting other countries in the region to reassess their wage structures.
Public Reaction and Future Prospects
Despite the landmark agreement, reactions have been mixed. Some welcome the decision as a long-overdue step towards financial equality, while others fear it might lead to job cuts or increased living costs. Regardless, the decision marks a significant shift in policy and could serve as a stepping stone to more comprehensive economic reform in Iraq.
Iraq’s Central Bank Reveals Decreasing Inflation Amid Regional Economic Turmoil, 29 NOV
The Central Bank of Iraq has recently shared insightful data on the inflation patterns not only within Iraq but also in neighboring nations and other Arab states. In a surprising turn of events, the inflation rate in Iraq has demonstrated a decrease compared to the previous year. This achievement of price stability stands in stark contrast to the economic situation in many of its neighboring countries and other Arab nations, where inflation has soared to double, even triple-digit numbers.
Steady Amid Turbulence
As of August 2023, Iraq’s inflation rate stands at an approximation of 3.7%. This figure is particularly impressive when compared to the inflation rates of its major trading partners, Iran and Turkey, which have recorded inflation rates of 46% and 57% respectively. The stark contrast in these numbers is a testament to the success of the Central Bank’s monetary policy tools in maintaining price stability and keeping inflation rates within acceptable bounds.
Challenges Across Borders
In neighboring Iran, a leaked document from the Islamic Revolutionary Guard Corps (IRGC) has raised alarm bells. The document warns of a dramatic increase in discontent due to the deteriorating economy, which has been severely impacted by U.S. sanctions and years of mismanagement. The document cites a staggering 300% rise in social discontent over the past year and reveals that protests have increased by nearly 50%. Even more concerning, the number of protesters involved has almost doubled. The real inflation rate for basic food items in November 2021 was registered to be between 86% and 268%.
Resilient Currency
Despite the inflation trends, the Iraqi Dinar has shown resilience. As of November 29, 2023, the exchange rate for the Iraqi Dinar to the Dollar stood at 0.0008. This value is higher compared to the previous day’s rate. An amount of 50 Iraqi Dinar was buying 0.04 Dollars at interbank exchange rates.
The meeting the CBI will be having with the United States Treasury is to finalize the new exchange rate that they talked to the UST with last month. It's all about the accounting right now. It is not about the political situation...laws being passed...troops...missiles from Iran.
It's not about anything but the accounting mathematics of your new exchange rate and that's what they're doing with the US Treasury. When they come back from the US Treasury I believe with all my heart you will then see the next phase which will be the HCL and a movement of the exchange rate to 1000 to 1...At a flip of a switch it will be 1 to 1...and Iraqi citizens will then have purchasing power...
A lot of the sites that study the Iraqi dinar they are on the same page that we are on now. We're at that point where it's a venturi effect.
Everything is being squeezed into a narrow little opening and it's creating a lot of pressure, which is good. It's positive pressure.
KRG Delegation Returns from Baghdad: Unpacking the Implications
The delegation of the Kurdistan Regional Government (KRG), after their intense discussions with Baghdad, have returned to Erbil. A key member of the delegation, Helkewt Aziz, shed light on the nature of their demands and the responses they received from Baghdad, though the specifics remain undisclosed.
US-Kurdistan Ties in the Face of ISIS Threat
The United States shares a robust bond with the Kurds in Iraq, built on a mutual interest in containing the security dilemma in the region. The US has provided significant humanitarian and military assistance to the Kurdistan Region, notably supporting the Peshmerga, Kurdistan’s standing military, in the fight against ISIS. This partnership, underscored by the defeat of ISIS in 2017, has led the Department of Defense (DOD) to extend their support for the Peshmerga’s anti-ISIS operations for another four years.
Security Challenges and US Role
Despite these victories, the Kurdistan Region faces significant security challenges, with the ideological remains of ISIS persisting among some in the region and the potential for former members to regroup. The US has a crucial role in addressing these vulnerabilities by providing security, intelligence, and potential troop support. This includes fostering reforms within the KRG and its collaboration with Iraq to maintain regional stability.
Kurdistan’s Political Integrity and the US
Treefa Aziz, the KRG’s Higher Representative in the United States, has emphasized the importance of enhancing Kurdish political integrity. She has urged Washington not just to criticize but to assist in improving governance systems within Kurdistan. A politically efficient Kurdistan, known for good governance, can contribute to a stable and secure region.
Baghdad’s Centralization Efforts and KRG
However, the ongoing political discord in Baghdad makes it challenging to negotiate the KRG’s demands. Baghdad’s centralization efforts undermine Kurdish autonomy and are fundamentally contrary to the aim of maintaining peace in the region, a goal achieved largely through the efforts of the US, the KRI, and Iraq.
Economic Steps and International Relations
As part of its economic diversification efforts, the KRG has initiated honey exports to Qatar, supporting local beekeepers and the private sector. In a bid to enhance bilateral relations, KRG Prime Minister Masrour Barzani recently met with Dr. Yann Braem, the newly appointed Consul General of France in the Kurdistan Region. The KRG is also looking to strengthen its ties with the Japan International Cooperation Agency (JICA) and focus on resuming oil exports with Türkiye.
Iraq’s Security Situation: Commander-in-Chief Chairs High-Level Meeting, 29 NOV
Commander-in-Chief of the Armed Forces, Mohamed Shia Al-Sudani, presided over an important meeting of the Ministerial Council for National Security to discuss the prevailing security situation in Iraq. The meeting was held with the primary aim to address efforts to enforce law and order by combating terrorism and tackling organized crime gangs.
Strengthening Security and Intelligence Agencies
The council reviewed the employment grades allocated to security and intelligence agencies within the Federal Service Council. They deliberated on the tests conducted for candidates vying for the remaining positions, with an intent to bolster these agencies with top talents. The main objective of the council was to ensure the best minds were put to work for maintaining national security.
Resolving Residency Issues
The attendees discussed the procedures of the Diwani Order Committee No. (22220) for 2022, aiming to establish a permanent central supportive committee. This committee is entrusted with the responsibility of resolving residency issues between the federal government’s Ministry of Interior and the Kurdistan Regional Government.
Regulating Military Convoys
The meeting emphasized the importance of organizing the movement of military convoys through a movement letter issued by the Joint Operations Command. Checkpoints are to monitor compliance with these regulations. This move is expected to bring greater order and discipline in the movement of military personnel and equipment.
Preparations for Upcoming Provincial Council Elections
Another important point of discussion was the preparations for the upcoming provincial council elections scheduled for December 18. The Commander-in-Chief directed legal action against anyone found exploiting state resources to influence voter choices and to prevent any instances of extortion. He also ordered an investigation into reports of attempts to exploit social security network beneficiaries in the voter card distribution process.
