Association of Banks: Agreements with Türkiye will lead to lowering the dollar exchange rate
12/3/2023Baghdad
The Iraqi Private Banks Association confirmed that the agreements with Turkey will lead to reducing the dollar exchange rate and increasing citizen confidence in the dinar.
The head of the Iraqi Private Banks Association, Wadih Al-Handal, said on his Facebook page, followed by Al-Iqtisad News, “We discussed with the Turkish Central Bank and all of Turkey’s banks the reorganization of trade financing between Iraq and Turkey, usingthe Iraqi dinar, the Turkish lira, and the euro.”
Al-Handal stressed, "The agreements with Turkey will lead to reducing the dollar exchange rate and increasing citizen confidence in the dinar." LINK
Al-Sudani from Basra: It is time for the Iraqi economy to be linked to the global economic cycle
Al-Sudani from Basra - It is time for the Iraqi economy to be linked to the global economic cyclePrime Minister Muhammad Shiaa Al-Sudani said today, Saturday, that his government is studying the establishment of economic projects, the establishment of industrial cities, and free zones in partnership with countries neighboring Iraq.
Al-Sudani said in his speech during the launch of the activities of the Industrial Partnerships Forum in Basra Governorate: We are currently studying economic projects, industrial cities, and free zones with Iran, Saudi Arabia, Jordan, and Kuwait.
The Prime Minister described the development road project as the “first Iraq” project, adding that it will settle industrial cities, starting from the port of Al-Faw and ending at the point of connection with Turkey.
For his part, the Iraqi Minister of Industry and Minerals, Khaled Battal Al-Najm, in a speech in which he opened the forum, announced 90 participation opportunities between government companies and the private sector, as these investment opportunities represent wide sectors of various opportunities for companies, indicating that the value of these investments reaches about 10 million dollars.
Anybody that tells you, 'give me your dinars and I will give you more than what the CBI will give you' because, 'I belong to the [whatever] group/organization' They're thieves. They're vipers. They're liars..
.No body is going to give you more than what the CBI can and is willing to give you.
Question: Article VIII, WTO do these matter? Yes without a doubt. WTO you notice they have not been ascended into it. Doesn't matter. Whenever they do it they'll do it but what's really important is in order to join the WTO you have to be Article VIII...All they have to do is raise the value of their currency, that's it.
Question: 'Do you think the rate might come out more than 1 to 1 or higher?' It is possible they might be looking at $1.18...1 to 1 is a good start no doubt but it's been 20 years and I think $1.18 is fair enough to start the float at against the dollar. The goal is to go past the dollar.
Iran Declares Readiness to Protect Iraq’s Sovereignty: A Step Towards Stronger Defense Cooperation, 3 DEC
Major General Mohammad Baqeri, the Chief of Staff of the Iranian Armed Forces, has declared Iran’s preparedness to counteract any threats to Iraq’s territorial sovereignty. This announcement was made during an official meeting with his Iraqi counterpart, Lieutenant General Abdel Emir Rashid Yarallah, in the capital city of Baghdad.
Strengthening Iran-Iraq Relations
Baqeri highlighted the robust relationship between Iran and Iraq, underlining their shared experiences in the fight against terrorism. He also acknowledged Iran’s significant role in assisting Iraq during the battle against the Daesh terrorist group. The Major General paid tribute to the fallen heroes, Qassem Soleimani and Abu Mahdi al-Muhandis, who lost their lives in a US drone strike in 2020.
Joint Military Drills for Border Security
Emphasizing the importance of joint military exercises for the safety of the shared borders, Baqeri suggested that such collaborative efforts would be mutually beneficial. In response, Yarallah expressed his gratitude towards Iran for its support against Daesh and confirmed the readiness of Iraq’s armed forces to enhance military cooperation with Iran.
Security Agreement in Response to Anti-Iranian Activities
Previously, the two nations had signed a security agreement in response to the surge in activities of anti-Iranian terrorist groups in Iraqi Kurdistan. Following these activities, Iran’s Islamic Revolution Guards Corps (IRGC) conducted strikes against these groups. They issued a warning to the local Kurdish authorities against allowing their territories to be used for activities against Tehran.
This recent meeting and subsequent declarations highlight the strengthening of defense cooperation between the two nations, pointing towards a future of enhanced military relations and joint counterterrorism efforts. Both Iran and Iraq stand firm in their commitment to uphold each other’s sovereignty and maintain the security of their shared borders.
I found the steps Iraq would need to take in order to reinstate its $3.22 rate...Stabilize the economy by addressing issues such as inflation, unemployment and corruption...diversifying the economy beyond oil dependence...
Monetary policy - To reinstate a specific exchange rate the Central Bank of Iraq would need to implement appropriate measures...like interest rates, reserve requirements and open market operations.
Third, Foreign Reserves - Iraq's foreign reserves...The more they get the better it is for them...particularly the US dollar would provide the CBI with the necessary resources to support the desired exchange rate...
Currency Auctions ...Adjusting the auction mechanisms and policies could help control the supply and demand dynamics of the IQD...Fifth, Government of Iraq - Investors...have to feel their investment is secure. Having a stable government and stable economy goes a long way. Political stability...that encourages domestic and foreign investment ...Lastly, International Support...IMF and World Bank...these organization can provide financial aid, technical assistance and guidance on implementing economic reforms...Those are the steps necessary to reinstate the $3.22 rate. I still think it'll go up in increments just so they can make sure there is stability in the economy without bankrupting themselves...
Iraqi dinar is going to go up in increments because as you go up one step at a time you're able to see what kind of shock you're going to have to your economy, if at all. As they keep making a move forward with the value of the Iraqi dinar measured against your economy they're able to determine whether they can keep going forward and make the value of the Iraqi dinar increase or whether they should decrease the value of the Iraqi dinar.