Friday, August 23, 2024
DINAR REVALUATION UPDATE: IRAN -US AGREEMENT : KEEPING IRAQ OUT OF MIDDLE EAST TENSIONS, 23 AUGUST
Iranian-American Agreement to Keep Iraq Neutral in Middle East Events (2024)
In the tumultuous landscape of the Middle East, Iraq has emerged as a pivotal player in regional dynamics, often caught between the influences of Iran and the United States. As of August 22, 2024, the relationship between Iran and the United States has led to an agreement aimed at keeping Iraq away from the region's escalating conflicts.
The Background of the Agreement
The war in Gaza, which began in October 2023, has intensified the existing tensions between Iran and its proxies on one side, and the United States and Israel on the other. This cycle of tit-for-tat attacks across the region, involving the Israeli bombing of the Iranian consulate in Syria and Iran's direct retaliation against Israel, threatens to escalate into a broader regional war. The conflict has also drawn Iraq into the fray, with Iranian-backed paramilitaries attacking U.S. forces stationed in the country.
Iraq's Strategic Position
Iraq's role in this complex equation is not that of a mere pawn. Its strategic position and the nature of its relationship with Iran have evolved significantly since the U.S. invasion in 2003. While Iran's influence in Iraq has grown, it is not a simple agent-proxy arrangement. Iran wields significant power through its paramilitaries' presence in Iraq's security apparatus, but Iraq has also shown political independence, maintaining a degree of leverage over Iran.
The Agreement's Objectives
In light of the escalating tensions, the Iranian-American agreement seeks to ensure Iraq's neutrality, preserving the relative stability the country has enjoyed in recent years and safeguarding its role as a regional mediator. The accord is designed to prevent Iraq from being drawn further into the conflict, which could destabilize the region and undermine efforts to resolve the ongoing war in Gaza and the broader Israeli-Palestinian conflict.
European Engagement
Europeans have a role to play in supporting Iraq's autonomy and stability. By strengthening Iraq's financial institutions through global integration and digitization, European countries can help increase Iraq's economic independence. Furthermore, European nations can collaborate with Gulf states to broaden ties with Iraq, moving away from a development or humanitarian aid framework towards normal bilateral relations.
Conclusion
The Iranian-American agreement to keep Iraq out of the Middle East's conflicts is a critical step toward maintaining regional stability. However, its success hinges on broader efforts to resolve the Gaza conflict and the Israeli-Palestinian dispute. European involvement in supporting Iraq's autonomy and economic resilience is essential for any policy to be effective in this volatile region.
Iranian-American agreement to keep Iraq away from Middle East events, 23 AUGUST
Iranian-American agreement to keep Iraq away from Middle East events
The Israeli newspaper, The Jerusalem Post, revealed on Wednesday that there is an Iranian-American agreement to keep Iraq away from the current conflict, noting that the Iraqi Prime Minister intervened to prevent the American response to the recent bombing of Ain al-Assad.
The newspaper said in a report, which was followed by Al-Mutalaa, that: “There is news circulating in intelligence circles about instructions reaching armed factions inside Iraq to stop attacks against American forces and their bases to prevent the country from sliding into open war,” indicating that: “The Iranian authorities decided to stop attacks against American bases in Iraq as a result of the escalation of tension to unprecedented levels and the increasing risk of Iraq turning into a war zone.”
She added that: "Prime Minister Mohammed Shia al-Sudani was able to convince the Americans not to respond to the recent targeting of Ain al-Assad base and to cancel any plans to target armed factions inside the country," stressing to the Americans that: "Iraq is committed to maintaining its security and preventing its lands from turning into a battlefield between the American and Iranian parties."
The newspaper pointed out that: "The Iranian instructions do not include any mention of the attacks carried out by the factions inside Iraq against Israeli targets, including the continuous bombing of the port of Eilat," explaining that: "The cessation of attacks is limited so far to American bases and interests only, according to its description." link
LATEST FROM KAPERONI, 23 AUGUST
Kaperoni
The discussion in Iraq is not an RV but a currency exchange LOP. Symposiums were held last fall to educate many of the citizens on such an event. There would be little to no gain, in fact, based on the numbers published it would be a loss if they did so.
Kaperoni
Community Comment: "Seems like there's some good news & some so not good. I have the feeling we aren't close, by a long shot."
I pointed out a few months ago that Iraq was ending the currency auction at the end of this year. Nothing is going to happen with the dinar until after that and they begin to diversify their economy.
Kaperoni
The Iraqi dinar is a currency of a country it's not a lottery ticket. There is no magical RV...Owning dinar is risky, which may strengthen over time, but it's a long-term investment.
Article: "Iraq speeds up steps to join WTO" Those that follow me know that we posted information that stated the Central Bank of Iraq planned to end the currency auctions at the end of this year, joining the WTO sometime next year would also benefit them.
Kaperoni
Seems to be a lot of hype lately that people are getting excited for some Dinar RV. Not how currencies work. Iraq has a lot of work to do...If and when the dinar goes up in value it will be based on the success and growth of Iraq's economy.
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.
--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
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!
--...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.
Iraq's Dhi Qar Court sentences municipal officials for corruption in landmark case, 23 AUGUST
Shafaq News/ A Dhi Qar Integrity Misdemeanor Court has handed down multiple criminal sentences against government employees, including two municipal directors, a security source told Shafaq News Agency on Wednesday.
The source said that the court issued prison sentences for eight government officials. Among them were two individuals who served as municipal directors in the Governorate, one of whom is now retired. The remaining six are currently employed in the Governorate's administration.
"The court's rulings included sentences ranging from four months to a full year," the source stated. The convictions were based on charges of public fund misappropriation, with the decisions issued under Article 331 of the amended Iraqi Penal Code No. 111 of 1969.
Iraq is grappling with a deep-rooted corruption crisis in the private sector that has siphoned off billions of dollars from its state coffers over the past two decades.
LATEST FROM CLARE, 23 AUGUST
Clare
Article Quote "The Prime Minister's Advisor for Financial Affairs, Mazhar Mohammed Saleh...pointed out that Iraqi oil sales are in dollars, and are deposited with the US Federal Reserve through an open account in the name of the Central Bank, which is managed by the bank on behalf of the Iraqi government."
Article "Is it time to remove the zeros?" Quote: "with the use of electronic payment operations, the environment will be mature and acceptable for the idea of implementing the decision to delete zeros, and the process will be automatic without the citizen feeling it. But is it time to issue the decision?"
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Clare
Article: "Government advisor explains the possibility of using the dinar instead of the dollar in oil sales" Quote: "Will it be a fixed exchange system supported by foreign reserves or will it be a flexible exchange system in which the (petrodinar) changes with the change in oil prices? These are paths that have no answers on the ground and are really very ambiguous "
Clare
Article: "Trade discusses the mechanism for Iraq's accession to the World Trade Points Federation"
Quote: "The Private Sector Development Department discussed with the Departments of Foreign Economic Relations and Administrative and Financial Affairs at the Ministry of Trade, the mechanism for Iraq's accession to the Federal Union of World
Trade Points, the legal procedures for joining, and the benefits that the Iraqi sectors will obtain."
Clare
Article: "Is “floating the currency” a solution to the crisis of the high dollar in Iraq? A representative explains"
Quote: "There are calls to float the exchange rate in Iraq...Floating the currency is a procedure based on liberalizing the exchange rate, leaving it to market factors (supply and demand), to determine its value without any form of intervention by the economic authority...There are two types of floating: the first is absolute floating, and the second type is managed floating, i.e. the type in which the central bank intervenes to direct the exchange rate up or down, as it sees fit to achieve the interests of the national economy."
Clare
Article: "US Treasury places Khamis Al-Khanjar on sanctions list"
Quote: "The US Treasury Department, through the Office of Foreign Assets Control (OFAC), has placed the head of the Sovereignty Party, Khamis Al-Khanjar, on the sanctions list of known individuals and entities with whom dealings are prohibited."
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