Iraqi stock exchange soars 97%. The other day we talked about what 52% and that was a pretty bold statement for them to say that. Now they're talking about 97% annual gain as an indication of economic upswing...
The oil & gas law is a very important and is considered to be integral to the citizens needs and the economic development of the country. They stop short of telling us what came of the oil & gas law today. Why?
...One reason would be that there is exchange rate sensitivity with respect to the law...An exchange rate to be one that is stronger than the dollar (Per Al-Sudani) will help largely in that regard. So, yesterday they were focusing on the importance of this law and with urgency. A very good sign!!!
Developing the market for the banking sector is huge because look, the ISX shows that their index has been up about 52% in 2023...Why is that if Iraq is just status quo and it's just blah...? It's not.
There is no significant RV of the Iraqi dinar. And if the dinar does ever go up in value, it will be based on the success and growth of Iraq's own economy. There are no shortcuts.
Article: "Ali Al-Alaq, the current governor of the Central Bank of Iraq confirms that Iraq's money supply exceeds 100 trillion dinar."
If and when the Central Bank decides to increase the value of the Iraqi dinar more than likely it will be based on some type of gradual float as a result of the success and growth of Iraq's own economy and an increase in GDP.
I hope each and every one of you find success in this investment...It may take time. It may be another 1 to 5 years. I certainly hope not but I believe things could happen quickly over the next 36 to 48 months. It all depends on Iraq.
...We all know things don't happen fast in Iraq. Iraq has a lot of work to do in order to succeed. The first of which is pass over 100 stalled laws through Parliament to encourage investment in Iraq. And at the same time the Central Bank of Iraq has to continue reforms to the banking system, digitalization, and apply monetary tools to meet compliance.
A country's exchange rate is the result of the success and growth of their own economy. When you have a weak economy, you have a weak exchange rate. Until Iraq passes laws, diversifies their economy and increases their GDP, nothing will happen with the dinar. When Iraq passed their tripartite 3 year budget a few months back, it created the conditions for them to diversify and privatize their economy over the next three years. Now Iraq is on the clock to accomplish such.
There's a new article out that many people are translating and confusing. They are not talking about an RV in Iraq, they are talking about the spread being in compliance early next year.
Just a reminder the spread is the difference between the official rate and the market rate or street rate and has been way out of whack recently in Iraq. This article simply means they expect the spread to come down closer to the official rate early next year. There is no RV.
A very important statement was made back in 2020 by the prime minister's economic advisor Mohamed Salah who used to be Deputy Governor of the CBI under Shabibi. He stated that Iraq's entire wealth including all minerals in the ground amounts to only $16 trillion dollars. Knowing that information one can then determine that there is no way a significant RV could ever occur with over 90 trillion dinar in circulation. It doesn't make sense...
They...have to have the dinar stabilized within the country and within the 2% rule mandated by the IMF in order to then accept IMF article VIII and begin to float the dinar which would raise its value based on supply and demand. All of these processes and or steps required time.
The Central Bank of Iraq addressed, on Thursday, banks’ readiness to meet the requests of their customers from the cash dollar according to the controls it announced previously.
[via PDK] Some of my contractor contacts are back in Iraq now after the holidays and they are hearing very positive things for this month. Their expectations are running extremely high right now.
Question: I am hearing dinar $3.81 and dong .47…is that what you are hearing ? MarkZ: That’s not what I am hearing but I would be ok with it. That would still be fantastic. But I am hearing higher rates than that.
Iraqs stock market is up 90% in valuation based on the US dollar…and they continuously talk about the exchange rate and what their market is going to look like after a change in the exchange rate. They are telling us its coming and that they will address it in their first parliamentary session. And that session has just started. Positive stuff.
