Will the agreements signed with the US Treasury reflect positively on the exchange rates?
Money and business Economy News – Baghdad Today, Thursday, economic expert Abdul Rahman Al-Mashhadani stated the possibility of Iraqi getting a green light to contract with Iranian companies that are not sanctioned by the United States, while anticipating the impact of the Central Bank’s agreement with the US Treasury on exchange rates.
Al-Mashhadani said, in an interview with Al-Iqtisad News, “The visit of the Prime Minister, Muhammad Shiaa Al-Sudani, to America is very positive, but so far the results of what was agreed upon in Washington have not appeared.” He added: “It is hoped that the Central Bank of Iraq will announce the measures that were agreed upon in Washington, which could have a positive impact on the exchange rate,” pointing out that “the real problem of exchange rates has not yet been solved, which is dealing in trade with banned countries.”.
The economic expert explained, “The economic aspect was the main focus of Sudanese’s visit to Washington, and it became clear through the meetings and discussions held by the Central Bank of Iraq, with the US Treasury regarding the sanctions imposed on Iraqi banks or even the issue of financial transfers to Iran, in addition to the required investments, which "It is possible to sign in the energy field."
He stressed, "Iraq got the other light by contracting with unsanctioned Iranian companies, which allowed the Ministry of Electricity to sign a contract to recover Iranian gas for a period of five years,
Evidence Suggests Stablecoins Are Emerging as a Worldwide Asset Class | Globe Echo
Stablecoin adoption is rapidly increasing, with research firm rwa.xyzreporting a 15% increase in the number of addresses holding both dollar and crypto-pegged stablecoins in 2024. Chainalysis also found that stablecoins are becoming more prominent in overall on-chain transaction activity, with increasing importance in various nations and regions.
Stablecoins, cryptocurrencies with values pegged to an external reference like the U.S. dollar, have represented over half of all on-chain transaction volume, highlighting their growing importance in the cryptocurrency market.
The adoption of stablecoins is being propelled by their ability to provide anyone with an internet connection access to the U.S. dollar, unlocking new pathways for financial inclusion. The U.S. leads in stablecoin purchases, but global demand is high, with over $40 billion purchased in March alone across diverse nations and regions.
Stablecoins are serving as a critical bridge between traditional finance and cryptocurrency, with the stablecoin market currently valued at around $150 billion and expected to exceed $2.8 trillion by 2028.
The stablecoin market has become more competitive, with Ripple announcing plans to launch a USD-backed stablecoin on the XRP Ledger. This move is expected to generate more use cases, liquidity, and opportunities for developers, as well as provide additional crypto liquidity to service cross-border payments demand.
Stablecoins like PYUSD and Tether are being used for cross-border payments, remittances, and facilitating transactions in regions such as Latin America and the Caribbean, promoting dollar dominance and increasing access to U.S. dollars.
The growing demand for stablecoins has prompted lawmakers to focus on stablecoin legislation, with proposed regulatory frameworks aimed at maintaining the U.S. dollar’s dominance, promoting responsible innovation, protecting consumers, and combating money laundering and illicit finance. Legislation such as The Lummis-Gillibrand Payment Stablecoin Act seeks to establish a regulatory framework for payment stablecoins, requiring issuers to maintain one-to-one reserves and prohibiting unbacked, algorithmic stablecoins.
This legislation, if passed, could accelerate institutional blockchain innovation and drive stablecoin adoption.
Despite the potential impact of stablecoin legislation on adoption, experts believe that stablecoins will continue to rise as a global asset regardless of regulations. Stablecoins provide a crucial solution for individuals in countries facing currency volatility, offering stability and facilitating commerce.
While regulations may provide more comfort for institutions using stablecoins and potentially bring banks into the stablecoin market, stablecoins have already surpassed all other types of cryptocurrencies in usage and represent over half of all transaction volume in recent months.
Overall, the adoption of stablecoins is on the rise globally, driven by their ability to provide access to the U.S. dollar, promote financial inclusion, and facilitate cross-border payments. Stablecoins are becoming increasingly important in the cryptocurrency market, with their market value expected to grow significantly in the coming years.
While stablecoin legislation may influence adoption in certain regions, experts believe that stablecoins will continue to play a crucial role in the cryptocurrency ecosystem and serve as a bridge between traditional finance and digital assets.
People still continue to claim a re-denomination or the deletion of the zeros is somehow different than a LOP. It's not. It's the same thing...
We all want the same thing. I'm telling you we do. Would I love for the rate to change to $3.22 per dinar? Would I love for them to keep the current currency they have without deleting the zeros when they change that exchange rate?
Of course I would. But what I'm saying to you is there are many possibilities you should at least be aware of them.I'm not saying it's going to happen one way or another for sure, I'm just saying to you there's some things out there that they're hiding from you...
Non-oil imports of Al-Sulaymaniyah surpass 20 billion dinars
Shafaq News/ On Friday, the non-oil imports for the governorates of Al-Sulaymaniyah and Halabja, as well as the administrations of Garmian and Raparin, amounted to approximately 20 billion dinars during the past week
According to shafafiat.com, a website operates under the auspices of the office of the PM Deputy, Qubad Talabani, non-oil imports in Al-Sulaymaniyah, Halabja, Garmian, and Raparin from April 20 to April 26, 2024, amounted to 20,119,953,306 dinars.
According to the obtained data, Al-Sulaymaniyah's revenues increased, with revenues increased from April 6 to April 12, 2024, amounting 842,422,425 dinars.
Al-Sulaymaniyah is considered a significant commercial center in the Kurdistan Region of Iraq, attracting many traders from various parts of the region. The major non-oil imports in the governorate include food, clothing, electronics, building materials, machinery, and vehicles.
Most non-oil imports to Al-Sulaymaniyah come from neighboring countries such as Iran, Turkiye, Syria, and Jordan. Additionally, Al-Sulaymaniyah imports goods from countries like China, India, and Europe.
Non-oil imports play a vital role in Sulaymaniyah's economy by providing employment opportunities, stimulating economic growth, meeting the population's needs for goods and services, diversifying the local economy, and reducing reliance on oil revenues.
However, non-oil trade in Sulaymaniyah faces challenges such as bureaucracy, corruption, political instability, and exchange rate fluctuations. The local government in Sulaymaniyah is working to address these challenges to improve the business environment and attract more investments.
When I did the evaluation [of the dinar] it was against countries and currencies that had lopped. I had the same questions as you guys when I invested. Where is this going? How can this work? I found out the value was in a policy based inflation, they want to add value to it, they injected US dollars into the economy, devalued the dinar. The
dinar you and I have has nothing to do with hyper-inflation, major market problems or anything like that...Yes, they can add value to currencies that have a lot of zeros behind it. Iraqi dinar is stable. They can and are going to add value to it.
You have these currencies that have a lot of zeros behind it. Comparing with these other currencies that LOPed, Iraq is a completely different case. They don't have a market problem. They don't have a customer problem.Where is the inflation coming from? It's coming from policy. How can they add value to their currency? It's all going to be based on 100% policy. The authority comes from parliament, the Ministry of Planning, Ministry of Finance and the Central Bank of Iraq. They don't need any more customers. To add value to the currency they don't need to do anything else.
LOP...people that are smart, economist, get this wrong. The underlying definition is hyperinflation. How do people fight it? By removing the zeros. Nothing wrong with that. It's smart. But it's hyperinflation. People will point out incorrectly, look at Iraq...
The best analysis I've read is that it [the dinar] was worth at it's height 2.25 to the U.S. dollar...Iraq has never had a customer problem. That's where you find the hidden value in this investment. It's not hyperinflation..
There is inflation but it's 100% policy based inflation. You had this currency that was worth a lot of money...What was their number one export?
Energy. Then war came along. You had war inflation. But did Iraq's customer base change? No. Did their oil producing output change? No, it went up. That's where you're going to find the value. That's where the value is coming from. That's it.
