Iraq intends to connect its electricity with Kuwait and the Gulf at the end of the year, and then with Saudi Arabia , 23 July

 Prime Minister Mohammed Shia al-Sudani confirmed on Sunday that his government intends to link Iraq's electricity with Kuwait and the Gulf Interconnection Authority at the end of 2024, and then move to link with Saudi Arabia to diversify energy sources when demand increases during peak times in the country.

Al-Sudani said in a speech during the opening of the Iraqi-Turkish electricity linkage project, "The value and importance of this project is that it had been suspended since 2004, and it had been planned since the nineties of the last century, and today it has been completed in coordination with the Turkish Ministry of Energy."

He added, "The value of this project is that for the first time we have an international connection with neighboring Turkey and then to the European Union, and this is an important and strategic factor for energy at the future level."

Al-Sudani added, "After we were able to connect with the Jordanian side, and today with Turkey, and hopefully at the end of this year with Kuwait and the Gulf Interconnection Authority, then we will head to complete our important project with Saudi Arabia so that Iraq can complete its communication with the regional energy system in a way that allows for diversity and exchange in various conditions of peak electrical loads."   LINK

RV UPDATE BY KAPERONI, 23 JULY

 Kaperoni 

  Community Comment: "Does this have a negative, positive or neutral effect on our investment?"

  Article: "Mazhar Muhammad Salih: Our cash reserves are the highest and there are no fears of the dollar rising"  This is good news.

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Kaperoni 

   Question: "So the RV tomorrow 3:00? Lol"  You need to change your thinking. There is no RV, never will be one. The only way that dinar can go up in value is 'gradually' over time based on the success and growth of Iraq's own economy.

Kaperoni   

 Article:  "Establishment of the Commercial Arbitration Center in Iraq"  Article quote: "the importance of commercial communication with various countries around the world and organizing relations in a way that achieves mutual benefit for all parties, especially as Iraq is on the verge of rejoining the World Trade Organization (WTO). He explained

that this project comes as one of the achievements within the file of Iraq's accession to the International Chamber of Commerce (ICC)."  WTO requirement. Establishment of the Commercial Arbitration Center in Iraq

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Article quote: "new pipeline project at an amount estimated at approximately 6.5 billion Iraqi  dinars ($4.9 billion)" Community Comment "The mathematical 'mistake' basically equals 1.32. This seems very very coincidental to  the deletion of the zeros."  Referencing the exchange rate in billions rather than trillions is an easy mistake to make. It happens  all the time and everyone thinks there's something to it.  Wrong.  

 Question: "What happens now that the auctions are soon to be over?

 What does this mean for the  Dinar holders out there Kap?"  It means monetary policy is changing after 20 years to reflect the economic changes in Iraq. We'll  have to wait and see what happens.    

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Floating the currency is the best option but only once they have created a diverse economy that is not dependent solely on oil.

...New currencies coming out in Iraq. Not true, the Iraqi dinar is the currency of Iraq. As far as any new smaller denominations, they will be introduced only as needed if and when the value increases and warrants so. There is no significant RV!

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...The dinar to float at well over a dollar. Unlikely, the dinar when it floats will be whatever the current exchange rate is and could rise gradually accordingly.

  Community comment: "Today the cbi says there are no new printing of bills"  

That is correct.  The Central Bank does not randomly print currency unless it's to replace damaged or worn out notes. There is no need for a new currency unless it is warranted.  Moving to digital will eventually reduce physical notes.

 Question: ----"They have a very largebudget ,without an increase in rate how do they meet the projects that is lined up?"

  External expenses are paid in dollars since their primary revenue is dollars. Dinar is used to pay salaries, etc. in country.

 CCommunity Comment: "Hopefully in the next 5 yrs we will see an appreciation of the currency  price, based on the last year of progress."  I agree!  Iraq has an excellent opportunity now to diversify their economy and develop  the banking system. 

 Much of the float articles that we have seen have concerns about speculators that is because they are referencing dealers speculating within the country.   That will not happen.

 All of these changes that they're talking about pertain to monetary policy. They have nothing to do with the exchange rate. Whether or not the exchange rate goes up or not is directly related to the economic success thereafter.

By the end of the year when the Central Bank of Iraq ends the currency auction, only transfers  amongst established Iraqi banks and regional or International banks will occur.  In other words, the float of the dinar and  transfer of funds will be institutional.

 What this means for us is the future of the dinar exchange rate is directly tied to the  capital flowing through the CBI, economic growth, and success of Iraq. As Iraq prospers, so will the dinar!  Though we may not see  the dinar exchange rate improve initially. This is a significant change in monetary policy for the Central Bank of Iraq. Some 20  years in the waiting.  

https://dinarevaluation.blogspot.com/2024/05/rv-update-by-kaperoni-25-may.html

https://dinarevaluation.blogspot.com/2024/05/rv-update-by-kaperoni-26-may.html

Iraqi Dinar🔥Big Change 1 To 1 Rate Revealed Finally - Iraqi Dinar News T...

The Central Bank of Iraq imposes financial penalties on banks and exchange companies amounting to 43 billion dinars , 23 JULY

The Central Bank of Iraq announced on Sunday that fines imposed on banks and non-banking institutions (exchange companies) amounted to more than 43 billion Iraqi dinars during the past three months.

A table of the bank, which Shafaq News Agency reviewed, showed that the fines imposed on banks and financial companies during the past three months, starting from last April until the end of last June, amounted to 43 billion, 465 million, 532 thousand, and 931 dinars.

The table showed that “the fines also included 102 administrative penalties for these banks and non-banking institutions, distributed between warnings, alerts, and grace periods.”

The table showed that "May witnessed the highest fines on banks and non-financial institutions, as these fines reached 34 billion, 2 million, 141 thousand, and 100 dinars, with 42 administrative penalties, while June witnessed the lowest fines, reaching 2 billion, 829 million, 157 thousand, and 288 dinars, with 30 administrative penalties."

The table did not show the names of the banks that were fined and subjected to administrative penalties.

The Iraqi Stock Exchange Investors Association had criticised the Central Bank of Iraq’s increase in fines on banks, noting that it would affect the profitability of investors in the shares of these banks.  LINK

RV UPDATE BY MARKZ, 23 JULY

 MarkZ 

 [via PDK]   There is so much going on this morning. There are all these rumors that they have the rate - but we can’t go to the bank yet. So take them with a bit of salt...

Folks in Geneva and the WTO are dead quiet. If they are trying to keep the RV quiet like Kuwait-they may be trying to keep the WTO news quiet until they have taken some of us in…and announced things publicly.

..once again I have some redemption center/banking folks that will be working part time this weekend. Not on call…but physically being asked to go in for a set number of hours…this is the second weekend in a row. Is it to throw us off and think it could go? I don’t know.

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Q & A WITH MARKZ

QUESTION:   Can we still pick from a list for projects at our exchange ??? I also heard you can choose from projects they if we want to?

MZ:   I have heard that – I have also heard we will be given access to those choices when we set our appointments so we are prepared when we get there.

QUESTION:   Mark, do you think CMKX and PP’s would go before the humanitarian projects money?

MZ:   No- I think they may go at about the same time.

QUESTION:   Will we still be signing NDA’s?

MZ:    I keep hearing mixed stuff. I am hearing now that if you don’t have historic bonds or Zim –there will not be an NDA. That is what I hear from banking contacts.

QUESTION:    MarkZ, do you think the RV will happen in waves? First Dinar, then a few months later, VND?

MZ:   No, I think they will still all go at the same time. 

QUESTION:  How will those sending out notifications emails to us know our email address?

MZ:   Once again….if you joined a group early in this process….or bought currency with banks ect…they may have your email address….BUT…I suggest you subscribe to a Dinar site like Recaps or Chrinicles to get the information emailed from them to you when notifications come out.   I have had 2 banks tell me they absolutely will send the information to Dinar Recaps  and issue their instructions to them for their newsletter email list.

QUESTION:   Mark, how many contacts do you have in total that are legitimate? 

MZ:  That’s always a tough one. They can be the best contacts on the planet. …. But, there is such a disinformation campaign going on it doesn’t matter if they are top level paymasters ect….but everything coming from a Treasury source is suspect because they have to confuse the timing. This disinformation is purposeful. I argue it is hurtful and not needed at this point.

https://dinarevaluation.blogspot.com/2024/07/q-with-markz-22-july.html

Iraqi Dinar Revaluation: Why It Might Not Be Good News for Citizens!"

The sudden rise of the dollar in Iraq: Does it threaten the stability of the national economy?, 23 JULY

 Dollar prices exceed their limits: Are we facing an unprecedented cash crisis in Iraq?

 Currency exchange markets in Iraq witnessed a significant increase in the exchange rate of the US dollar against the Iraqi dinar this Monday morning. Prices in the markets of Baghdad and Erbil, the capital of the Kurdistan Region, recorded a significant increase, which raises questions about the possible causes and economic impacts of these changes.

Price hike details

t the opening of the two main stock exchanges in Baghdad, Al-Kifah and Al-Harithiya, the dollar rose to 149,250 dinars for every 100 dollars, compared to 149,000 dinars recorded yesterday. In local markets, the selling price of the dollar reached 150,250 dinars, while the buying price recorded 148,250 dinars for every 100 dollars. In Erbil, the dollar also recorded an increase in exchange shops, where the selling price reached 149,400 dinars and the buying price 149,300 dinars for every 100 dollars.

Possible reasons

The rise in the dollar exchange rate is due to several possible factors, including:

Changes in supply and demand: There may be an increase in demand for the US dollar by businesses or individuals, causing the price to rise.

Global economic shifts: Changes in global economic policies and oil prices can affect currency exchange rates.

Local economic conditions: Local economic challenges, such as fiscal deficits or political tensions, may lead to exchange rate fluctuations.

Economic impacts

This increase comes at a sensitive time for the Iraqi economy, as it may lead to several noticeable economic impacts:

Increased import costs: As the dollar rises, the cost of imports will become higher, which may affect domestic prices of goods and services.

Impact on citizens: Citizens who depend on importing goods and products in dollars may be affected by an increase in the cost of living.

Impact on investment: A rise in exchange rates can have negative effects on foreign and domestic investment, as investors may look for more stable markets.

The rise in the US dollar exchange rate against the Iraqi dinar is an important issue that requires close monitoring. It is important for investors and economic decision makers to monitor developments and take the necessary steps to mitigate the potential negative effects on the national economy.  link