[I never said they will, I said they said they may revisit/consider 12 to 1. But...] Just because they switch it to 12 to 1 doesn't mean you have to cash in all your dinars. If you believe it's going to go up more in value then hold on to them. Cash some in at least, get some of your money back or cash in enough...to pay off your bills, pay off your house... cars... medical bills...make yourself debt free and then hold on to the rest of the dinars and see what happens.
I never said there was an official 12 to 1 exchange rate. What I said was I thought it was interesting that in that article they even considered revisiting the 12 to 1 exchange rate policy in the year 2026...It says they're revisiting the 12 to 1 exchange rate policy and they're going to do it the beginning of 2026. I didn't make that up, nor did I say they were going to go to 12 to 1. I was explaining to you what the 12 to 1 exchange rate policy is.
I've heard so many [gurus] talk about - according to the IMF Iraq needs to be within 2% between the parallel rate and their official exchange rate. No that's not right...To maintain stability Iraq needs to maintain a narrow spread, that's the gap between the official exchange rate and the black market. Generally a spread of less than 5% is considered acceptable. Not 2%, 5%. A spread more than 10% is considered a significant risk to the economy. Iraq is going to have to shoot for between 5 and 10%. They want to be less than 10. It'd be idealistic if they can get around 5...
Economy News – SpecialThe economic expert, Mustafa Hantoush, revealed today, Thursday, the reason for Iraq’s move toward the theory of internal debt, while clearing is considered the “best option” to return these debts.Hantoush said, in an interview with Al-Eqtisad News, that “Iraq, in recent years, has begun to move towards the theory of internal debt, due to the accumulation of funds in several funds, including the Retirement Fund, which relates to the state’s transactions amounting to more than 7 trillion dinars, the Social Security Fund, in addition to To the banks of Al-Rafidain, Al-Rasheed, and Al-Iraqi Trade Banks.He added,
“These banks now have deposits in very large amounts, and thus the state headed toward internal debt that amounted to more than 70 trillion dinars.”The economic expert called for “returning the debt to the retirement fund,” noting that “there are two theories for restoring the internal debt. The first is related to repayment. This is a long theory, as governments will not be able to repay in this way in light of the presence of interest.”
The other theory, according to Hantoush, is “clearing, which may bring about settlement operations for some internal debt, which has some risks, but it may be the solution available to the Iraqi state.”Earlier today, an informed source revealed that the size of the Ministry of Finance’s internal debt had reached about 70 trillion dinars, indicating that the rise in internal debt was not a good indicator, especially since the government possesses liquidity, and it must work to structure the internal debt.
There are many Iraqi citizens in the United States of American holding 3-zero notes. It is my job to collect them for the CBI, where they will destroy them. Our [job] is to turn in the 3-zero notes. WALKINGSTICK: This is huge! AKI: Agree. Direct deposit from now on. No limitations. Article VIII not only for the citizens but for investors
[Aki - Iraq Bank owner in US update]
Question: "The new orders you got on January 1st, are they for you to dispense the lower denoms and collect 3 zero notes?" Here in the Untied States we are preparing to do everything with electronic platforms...We are prepared to collect the 3 zero notes from those that wish to exchange them for American dollars...We follow International banking laws, the same laws American banks follow. Here in the United States the bank that I am in charge of will be all electronic.
When you ask about the LDs they are only found in Iraq. We do not possess them. Iraq will give to the Iraqi citizens, when the time comes, physical lower notes and coins and collect three zero notes...The difference is that here in the US I have to do everything electronic where my friends in Iraq, their banks can do it electronic or physically if they want the lower denoms and coins in their hands.
Prime Minister Mohammed Shia Al-Sudani confirmed on Thursday that the government realizes that the path of reform is long, but it has begun to establish it in the long term, which will help future governments to implement their tasks.
“The latter received the ambassadors of the Economic Contact Group for Iraq (IECG), which represents major economic countries; France, Britain, Italy, Spain, the United States, Japan and Canada, in addition to the Ambassador of the European Union,” the Sudanese media office said in a statement received by {Euphrates News}.
Al-Sudani “praised “during the meeting, the efforts made in supporting Iraq at various past stages, and expressed his thanks to the United States and Italy, which headed the group, for their work and continuity,” stressing “continuing cooperation with the next presidency represented by the United Kingdom and France, in order to achieve the goals for which this group was formed.”
“The Prime Minister reviewed the government’s vision towards the economic, financial, banking and customs reforms that it has begun to implement, and its seriousness in establishing a future work approach, as well as its efforts in implementing its commitments within the ministerial program, and the five priorities that were included in its executive program, and also touched on the strategic projects that will be an important basis for Iraq’s economic renaissance, which are the way of development and gas and renewable energy projects.”
He pointed out that “the government’s realization that the path of reform is long but it has begun to establish it in the long term, which will help future governments carry out their tasks.”
For their part, “the representatives of the contact group expressed great interest and optimism in government policies in the field of the economy, and referred to the past accumulations that the government began to address, as the Italian ambassador praised the description of the government of achievement, and the preparation of a different budget that includes new ideas such as the Iraq Fund for Development and the provision of sovereign guarantees to the private sector.”
While the American ambassador to Iraq praised the government’s successful steps in the field of banking reforms, and its direction to reform government banks by relying on major international companies, as well as the trend towards activating the electronic payment system. The French ambassador to Iraq also praised the government’s policies in reforming border crossings and customs by adopting the ASYCUDA system, and preparing a financial budget for three years.
The meeting concluded with agreement to form a working group and a work plan for 6 months, interspersed with meetings between representatives of the countries of the group, ministries and advisers to the Prime Minister concerned with following up the work, and this will be followed by a meeting chaired by the Prime Minister to assess what has been submitted.”
