Expert attributes drop of USD exchange rate to improved economy
Shafaq New/ The Iraqi dinar has gained ground against the U.S. dollar in recent days, with exchange rates falling to 1400 dinars per dollar, Jabbar Koran, the official spokesperson for the Sulaimaniyah currency market, said.
Koran attributed the dinar's strength to a combination of factors, including the positive impact of Iraqi Prime Minister Mohammed Shia al-Sudani's recent visit to Washington, the increased use of smart cards for dollar withdrawals, and the growing trade between Iraq and Turkiye, which is now conducted in both Iraqi dinars and Turkish liras.
"Al-Sudani's visit to Washington has led to increased U.S. support for the Iraqi economy and optimism among American parties regarding Iraq's infrastructure and banking reforms," Koran told Shafaq News Agency. "This has boosted confidence in the Iraqi economy and reduced demand for dollars."
Koran also highlighted the growing use of smart cards, which allow account holders to withdraw dollars from abroad. This, he explained, has reduced the need for individuals to purchase dollars locally, further contributing to the dinar's appreciation.
The recent agreement between Iraq and Turkiye to conduct bilateral trade in their respective currencies has also played a role in strengthening the dinar. "With an annual trade volume between the two countries ranging from 20 to 24 billion dollars, this shift away from dollar-denominated transactions has decreased the demand for U.S. currency in Iraq."
"The Iraqi central bank has been encouraging the use of alternative currencies in international transactions," he said. "A recent agreement with Saudi Arabia, for instance, allows for future trade to be settled in the respective national currencies of both countries."
"In the past, citizens would convert a portion of their salaries into dollars to cover housing loans, car payments, or other outstanding obligations," Koran explained. "However, with the increasing availability of alternative payment methods and the promotion of the dinar, people are no longer as reliant on the dollar."
While Koran expects the dollar to stabilize around 1400 dinars in the near term, he acknowledged the possibility of further appreciation, potentially reaching 1420 dinars per dollar. The central bank, he noted, has achieved its target for the exchange rate, but market dynamics could lead to further gains for the dinar.
Article: "We will see the dollar decline in the black market soon...the central bank's credit rating [from the World Bank] is an A++ and exceeded the United Arab Emirates..." That's the prime minister's advisor talking...That's phenomenal. It's big. It says a lot. It says they have trust. It says Iraq has the ability to pay back their bills.
Article quote: "...anticipating the impact of the central bank agreement with the US Treasury on exchange rates...it is hoped the Central Bank of Iraq will announce the measures that were agreed upon in Washington which could have positive impact on the exchange rate..."
The key focus is they're talking about the exchange rate, positive impacts, the US Treasury on exchange rates. That is fascinating.
There's clear signals the dinar and dollar relationship are going to be different in the future.They state specifically the dinar will be better. It's going to be stronger than the dollar, al-Sudani said it.It's going to be better because of what? Because of all these actions they're talking about now...It's huge.
Bin Salman, al-Sudani discuss Gaza, bilateral ties in Riyadh meeting
Shafaq News/ Iraq's Prime Minister Mohammed Shia have met with Saudi Crown Prince Mohammed bin Salman on Sunday in Riyadh for talks on bilateral ties and cooperation prospects between their respective countries, a press release by the former's media office said on Sunday.
The press release said the two leaders "pledged to strengthen ties between the two countries and reviewed the progress made in cooperation through the Iraq-Saudi Coordination Council."
Al-Sudani expressed Iraq's desire for broader economic cooperation with Saudi Arabia, which "would contribute to economic growth and create new opportunities in various sectors, benefiting both countries and their people."
Crown Prince Mohammed bin Salman welcomed the Iraqi Prime Minister and thanked him for attending the World Economic Forum, reiterating Saudi Arabia's commitment to fostering the "best possible relations" with Iraq and enhancing cooperation between the two neighboring countries.
"The meeting also addressed the situation in Gaza and the suffering of the Palestinian people at the hands of the Israeli occupation forces," the readout said. "The two leaders stressed the need for urgent efforts to end the conflict and its negative repercussions on regional and international stability."
FIREFLY: We have Saleh the finance advisor to Sudani on television, Iraqi Channel One right now and he's saying that today the 2024 budget it's in full force. He also says it's active and there's no need to send this budget to parliament for any approval. We are very confused. We thought it was being amended...Now saying no need to send.
FRANK: The budget does not need parliament. I keep telling you this over and over over. The budget waits for the new exchange rate. The exchange rate is not waiting for anyone or anything especially stupid parliament.
FIREFLY: The CBI comes out, they're talking about our banks and how much they have achieved and what they're going to be doing for us.
They're saying they are waiting to reveal what the USA Treasury has set for the positive results for our new exchange rate. They are talking about the new exchange rate that's coming and they're saying it's a very positive impact that is coming.
FRANK: Yeah you think!! The beauty of this is this information is coming out so fast there's no way in the world that the articles can keep up with it.
FIREFLY: The new shipping cards [MasterCard], banks are giving this to all of us Iraqi citizens. It's for buying fuel and for merchandising and stores and online shopping. This is all on the television...obviously they're setting us up to give us a new exchange rate...
FRANK: Those that I told you to pay attention to are telling you, due to the trip to Washington DC your national currency, your dinar, will return to its price. It will be reinstated back to what it was...
FIREFLY: TV says the Iraqi banks now have an advanced Swift system for high cash profit handling.
FRANK: That's really good because you didn't have that before because you didn't have any high value to your currency. But now you're about to explode it...It's not like you have to read between the lines, just read the lines...
Master of soft diplomacy: how President Barzani showed Baghdad the problem.. and the solution
Shafaq News/ Kurdish President Nechirvan Barzani's recent trip to Baghdad wasn't just about exchanging information or engaging in public political spats – often unproductive tactics. In fact, in this endeavor, the president of the Kurdistan Region showcased his skills as a master of soft diplomacy.
Barzani's presence in the Iraqi capital channeled a bold commitment to open dialogue. This "established approach," evidenced by his previous visits and regional engagements, prioritizes "direct communication" to address pressing issues frankly. It's a strategy grounded in Barzani's own powerful statement, delivered in May 2023: "Baghdad is the strategic depth of the Kurdistan Region," and the Kurdistan Region's well-being is "intrinsically linked to Iraq's stability."
This understanding was reflected in the importance of Barzani's meetings in Baghdad, particularly with Prime Minister Mohammed Shia al-Sudani, who included representatives from the Kurdistan Region in his recent meetings with US President Joe Biden and Turkish President Recep Tayyip Erdogan. Barzani saw this move as a sign of goodwill on the Premier's behalf to tackle outstanding issues with the Regional Government, including oil exports to Turkiye, salary disputes, and shared security concerns.
In a meeting with Hadi al-Amiri, the leader of the Badr organization acknowledged the importance of Barzani's visit in strengthening ties between the Kurdistan Region and the federal government. He expressed optimism about the progress being made and praised Barzani's crucial role in setting a date for the Kurdistan Region's parliamentary elections – a complex decision that requires consensus among various parties.
The Presidency of the Kurdistan Region's statements confirmed Barzani's unwavering focus on dialogue and understanding during his meetings. He reiterated the Kurdistan Region's willingness to address problems with the federal government "based on the constitution." He emphasized the fundamental connection between regional security and stability and those of Iraq as a whole.
Barzani's meeting with Faiq Zaidan, the Head of the Supreme Judicial Council, took on particular significance in light of recent Supreme Court decisions regarding minority quotas in the Kurdistan Region's elections. These decisions, considered by many in the Region as a blow to electoral credibility and marginalization, led the Kurdistan Democratic Party to boycott the polls.
Despite these tensions, the president's media office said in a statement that Barzani's priorities are "enhancing cooperation and coordination between the judiciaries of Iraq and the Kurdistan Region" but also said disputes should be "resolved on the basis of the constitution" in a bid to maintain "peace and political stability in the country."
Barzani even overlooked the controversial rulings of the Federal Court and thanked Zaidan for his efforts in tackling national issues and discussing the importance of judicial independence and protecting the rights of all Iraqi citizens.
Even though Prime Minister al-Sudani and President Barzani participated in the meeting of the State Administration alliance, they met separately to discuss issues related to public services and living conditions for Iraqi citizens. Both leaders emphasized the importance of "continuing constructive dialogues on common issues" and collaborating to strengthen the Baghdad-Erbil relationship. Al-Sudani acknowledged Barzani's earlier well wishes for his US visit, and Barzani described the visit as a positive step towards resolving outstanding issues.
Dilshad Shahab, the spokesperson for the Kurdistan Region Presidency, emphasized their commitment to ongoing communication with all parties and the "Presidency's consultative approach," particularly regarding the upcoming Kurdistan Parliament elections.
Barzani's intensive meetings, according to Shahab, included discussions of key topics, including the Kurdistan Region's financial dues, parliamentary elections, regional security concerns – particularly the attack on the Khor Mor gas field – and the importance of implementing the agreement that led to al-Sudani's government formation.
Shahab revealed a shared vision for "inclusive elections" in the Kurdistan Region and the Presidency's intention to convene a meeting with "all regional political parties to reach a common agreement."
Addressing bilateral issues was also central to Barzani's meeting with President Abdul Latif Rashid. Barzani reiterated the Kurdistan Region's commitment to resolving differences with Baghdad, including public services and citizen well-being. He emphasized the Kurdish government's desire for "transparent and just solutions that strengthen national security and stability."
Barzani's commitment to Iraq's stability extended beyond the Kurdistan Region's immediate concerns. Following the principle of strategic depth, he expressed concern about developments related to Iraq's political, security, and economic crises, including the unresolved speakership of the Iraqi parliament. During his meeting with Acting Speaker Mohsen al-Mandalawi, Barzani stressed the importance of supporting the federal government and "fostering dialogue between the national forces."
Barzani emphasized the need to move forward with electing a new parliamentary speaker during his meeting with Muthanna al-Samarrai, head of the al-Azm Alliance. He called this a "significant and essential step" towards enhancing national political stability.
Barzani also met with Mohammad al-Halbousi, the recently removed parliament speaker. Their discussions covered the evolving political situation, efforts to appoint a new speaker, and Erbil-Baghdad relations.
President Barzani's recent Baghdad visit wasn't his first trip to the Iraqi capital this year. He met with President Rashid and Prime Minister al-Sudani on April 6th, just before his US visit. He participated in meetings with the State Administration and the Coordination Framework, keeping the Kurdistan Region's concerns and interests at the forefront.
These discussions addressed solutions for Erbil-Baghdad issues, the overall political climate in Iraq, and the Kurdistan Region specifically.
While praising the "very good" agreement reached with al-Sudani regarding Kurdistan's employees' salaries, Barzani acknowledged the outstanding issue of oil exports. He emphasized the need for further discussions, particularly given the significant financial losses ($7 billion) incurred by the Iraqi budget due to the export suspension. Barzani even proposed establishing a mechanism for ongoing meetings "to discuss current problems and find solutions for them."
In January, he participated in the Iraqi Martyrs' Day ceremony in Baghdad and held meetings with various political parties. This visit coincided with drone attacks targeting the Harir base near Erbil.
Barzani, underlining the importance of regional cooperation, stated, "We live on this geography, so it is natural for us to visit Baghdad and discuss the existing problems and try to solve them."