DINAR REVALUATION UPDATE: IRAQ MOVE TOWARDS ENHANCE ITS MONETARY SOVEREIGNTY, 23 AUGUST

Iraq's De-Dollarization Program in 2024: A Strategic Shift in Economic Policy

In a significant move towards enhancing its monetary sovereignty, Iraq embarked on a de-dollarization program in 2024. 1 This strategic shift aims to reduce the country's dependence on the US dollar and promote the use of the Iraqi dinar in domestic transactions and international trade. 3

Background and Motivation

Iraq's decision to de-dollarize is rooted in a series of economic and political considerations. The country has faced challenges with currency instability, escalating prices, and waves of civil unrest.  3 The dinar's vulnerability to fluctuations in the US dollar has led to significant economic risks, including financial vulnerabilities and reduced monetary sovereignty.  3 The move is also a response to stringent US regulations governing international money transfers, which have impacted Iraq's economy negatively. 3

Implementation and Objectives

Iraq's Central Bank has taken the lead in implementing the de-dollarization program. Effective January 1, 2024, Iraq banned all transactions involving the US dollar. 5 The primary objectives include wresting control over the fluctuating black market exchange rate and bolstering the utilization of the Iraqi dinar. 3 This strategic transition is expected to contribute to the diversification of currency reserves, helping to mitigate risks associated with the oscillating value of the US dollar. 3

Impact on the Economy and Society

The de-dollarization program holds promise for Iraq's economy on multiple fronts. By reducing reliance on the US dollar, Iraq aims to strengthen economic stability and foster conditions conducive to economic diversification. 3 The adoption of the dinar in more transactions can lead to improved monetary sovereignty and reduced exposure to external economic shocks. 3

Challenges and Opportunities

Iraq faces several challenges in its de-dollarization journey, including the need to strengthen domestic financial institutions and the banking sector. 4 The Central Bank plans to gradually cancel the dollar auction during 2024, leading to its complete cancellation by the end of the year. 4 This move is part of a broader strategy to enable Iraqi banks to establish solid banking relationships with the global and regional banking sector. 4

Global Implications

Iraq's shift towards de-dollarization raises questions about the future standing of the US dollar as the predominant global reserve currency. 3 The move could signal a trend towards a more multipolar world order in terms of international trade and currency usage. 3

Parliament's "Forgery" of the Budget... A "Dangerous Precedent" Swinging Between Denial and Confirmation, Putting Mandalawi on the Brink of Overthrow, 23 AUGUST

Parliament's "Forgery" of the Budget... A "Dangerous Precedent" Swinging Between Denial and Confirmation, Putting Mandalawi on the Brink of Overthrow

Independent MP Ahmed Majeed Al-Sharmani commented today, Thursday (August 22, 2024), on the existence of manipulation and changes in the 2024 budget tables approved by the House of Representatives.

Al-Sharmani told Baghdad Today, "The parliamentary investigations are ongoing and ongoing in order to find out the truth about the existence of manipulation and change in the 2024 budget schedules."

He added: "We requested all papers and documents from the Parliamentary Finance Committee to audit the tables and reveal the truth about any tampering with them, and we are still waiting for those papers to reach us from the committee, and after the audit we will take a position in the event of any tampering."

He pointed out that "this move is supported by most of the representatives, and we cannot remain silent about such a serious issue in which there is manipulation if these allegations are true, in addition to the existence of a parliamentary investigative committee specializing in this file."

Acting Speaker of the House of Representatives, Mohsen Al-Mandalawi, denied any manipulation of the budget tables, saying that “the budget tables voted on by the House of Representatives are the same ones sent by the Council of Ministers and returned to it.”

Al-Mandlawi posted on his Facebook account, yesterday, Wednesday (August 21, 2024), that “after following up on what is being published and broadcast of inaccurate talks by some media outlets, the budget tables voted on by the House of Representatives are the same ones sent by the Council of Ministers and returned to it, according to our parliamentary decision No. (64),” stressing that no amendments have been made to them, according to the statement . 

He pointed out that "the aforementioned tables are the same ones that were sent to the government after approval," noting that the Council Presidency "has formed a high-level committee to examine the circumstances raised regarding the issue and determine their truth."

Investigations are ongoing

However, the Parliamentary Finance Committee confirmed that the investigation committee is continuing to investigate the circumstances of tampering with the budget tables and the CD, noting that the government has begun working with the tables voted on by the House of Representatives.

Committee member Moeen Al-Kadhimi said in a statement followed by "Baghdad Today", Tuesday (August 20, 2024), that "the investigation committee formed by the parliamentary finance and related to tampering with the budget tables sent by the government to parliament and which were voted on is still ongoing," noting that "the investigation was conducted with the Secretary-General of the Council of Representatives and the Director of the Office of the Speaker of the Council of Representatives ." 

At the beginning of last June, the House of Representatives approved the amended Federal General Budget Tables No. (13) for the year (2024) . During the House of Representatives session, the estimates of the General Budget Tables for the year 2024, its attachments, and the deficit financing tables were approved .

Al-Mandlawi may lose his position

MP Basem Khashan, for his part, confirmed the possibility of terminating the membership of the acting Speaker of the House of Representatives, Mohsen Al-Mandalawi, if the charges of tampering with the budget tables, which were recently revealed by the Prime Minister’s Office, are proven.

In a televised interview followed by "Baghdad Today" (August 19, 2024), Khashan said, "Parliament committed legal violations in amending the budget schedules, and they were on their way to being published and implemented had it not been for the government's scrutiny, noting that many representatives were deceived in this file ."

The Council of Ministers had spoken of an increase of 15 trillion dinars in the last tables, and it was not included in the agreement, discussions and voting, requesting a re-audit.

However, information indicates that there is a difference in the numbers amounting to more than 10 trillion added to the original budget of 211 trillion dinars, which is something that economic experts consider a dangerous precedent, given the failure to submit final accounts  link

LATEST FROM WOLVERINE, 23 AUGUST

 WOLVERINE

• Thurs. 22 Aug. 2024 Wolverine
•  “It looks like we have the green light. It looks like it’s on. Hold on. It’s not official, but it looks like it’s happening.”

WOLVERINE

Wed. 21 Aug. 2024 Wolverine

 “I told you today was going to be an exciting day. People I am close to, people I know received their notifications today.” (It is Thurs. 22 Aug. in Australia where Wolverine is).

----

WOLVERINE

Sat. 17 Aug. 2024 Wolverine

“It’s all coming through this next week. Exciting things have happened, but I’m not allowed to say what. People are expecting something Sun. night 18 Aug. Just to let you know guys is to get ready. I’m sorry that I can’t say anything as everyone is under total NDA now and soon I will be as well. That opera will be release any day now.

 Thank you for all the support you have all given me as this is one of the most hardest things that I have done in my life as it has control our way of life for years and played with our emotions. We have seen so many of our compatriots that did not make it and thankfully their family will cross the finish line for them. 

During this journey I never thought that I was going to be attacked viciously and even to this day the attacks are still continuing. I know within my heart that I’m doing God’s work and that too many of you are suffering and you need hope and a messenger to know what is going on. 

As soon as I’m under NDA you won’t hear from me anymore but my job has been completed and I can leave with good conscience that I have done everything possible to help you. The opera will be release once I receive the green light. 

Don’t forget the Get Together in February 2025 here in Sydney as we are planning to have the biggest party that Sydney has ever held with all these patriots coming from so many countries. Remember that it’s going to be a gala night and so wear your best clothes everyone.

 I’ll let you all know the day and the address of the Get Together. 

Love you all. Your friend Wolverine.”

https://dinarevaluation.blogspot.com/2024/08/latest-from-wolverine-19-august.html

IRAQI GOVERNMENT'S STRUGGLE TO MAINTAIN TRUCE WITH ARMED FACTIONS

DINAR REVALUATION UPDATE: CONCERNS ABOUT THE STABLE SECURITY IN IRAQ, IRAQ IS SEVERELY TESTED ABOUT THIS, AUGUST 23

Iraqi Government's Struggle to Sustain Truce with Armed Factions

As of August 23, 2024, the Iraqi government has indeed faced challenges in maintaining a truce with armed factions, particularly those supported by Iran. 1 The truce, which was initially agreed upon in October 2023, has been under strain due to the perceived lack of commitment from both the Iraqi and US governments in scheduling the withdrawal of US forces from Iraq. 6 This has led to a resurgence in tensions, with the factions declaring the end of the unofficial truce and threatening new attacks against US military convoys and bases. 6

Stance of Armed Factions

The positions and statements of the armed factions operating under the umbrella of the "Islamic Resistance in Iraq" have been clear and consistent, expressing that they are no longer bound by the truce with Washington and that the option of resuming attacks on American bases has become available again . 6 These factions have cited the failure of the Iraqi and US governments to set a clear timetable for the withdrawal of foreign forces as a key reason for their decision.  6

Impact of US Military Presence

The US military presence in Iraq has been a contentious issue, especially after the January 2020 US assassination of top Iranian general Qassem Soleimani and Abu Mahdi al-Muhandis, the leader of several Shia armed factions. 6 This event significantly increased pressure on the Iraqi government to demand the withdrawal of foreign forces. Despite the announcement of plans to withdraw US-led coalition troops according to timetables determined by joint technical military committees in April 2024, the actual withdrawal process has not met the expectations of the armed factions. 6

Escalation of Attacks

The recent attacks, including a missile strike on the Ain al-Assad base in Iraq's western desert, where US forces are stationed, underscore the growing tensions and the potential for a significant escalation of violence. 6 At least one missile landed inside the base, though no casualties were reported. 6 These incidents are indicative of the fragile security situation in Iraq and the challenges faced by the government in managing the presence of foreign troops while appeasing domestic armed factions.

Outlook

The Iraqi government's efforts to maintain peace and stability are being severely tested by the breakdown of the truce with armed factions. Ongoing dialogue and negotiations are crucial to finding a resolution that addresses the concerns of all parties involved. However, the situation remains volatile, with the potential for further attacks and increased military confrontations if a satisfactory agreement is not reached. 

Did the Iraqi government fail to maintain the truce between the factions and Washington?, 23 AUGUST

  Did the Iraqi government fail to maintain the truce between the factions and Washington?

The positions and statements of the Iraqi armed factions operating under the umbrella of the " Islamic Resistance in Iraq " continue, confirming that they are no longer in the truce with Washington, and that the option of resuming attacks on American bases has become available again. This comes after statements by the Iraqi government confirming the postponement of the withdrawal of international coalition forces from the country following recent attacks on the Ain al-Assad base, which houses American soldiers and is located in Anbar Governorate in the west of the country. The advisor to the Iraqi Prime Minister, Diaa al-Nasiri, also confirmed the freezing of dialogue with the United States on the file.

The government's retraction of its promises to end the international coalition's mission has provoked the Iraqi armed factions. Although they have not yet issued any unified position on ending the truce, positions have begun to emerge following successive statements by each faction separately, indicating a lack of prior coordination between them, at a time when the government is seeking to control the factions' rhythm and avoid dragging the country into a new escalation.

In a press statement, Haidar al-Lami, a member of the political council of the al-Nujaba group, confirmed that the truce, which was intended to give the government time to negotiate the withdrawal of American forces from the country, has ended, and that options for targeting military bases are now available. He pointed out that the Iraqi armed factions “ended this truce, after procrastination and stalling by America regarding the withdrawal of its forces during the talks with the Iraqi government.”

As for the security official of the Iraqi Hezbollah Brigades, Abu Ali al-Askari, he confirmed that "we have no commitment to stop operations against the American occupation forces in Iraq." He said in a statement issued on Wednesday evening, "We have no commitment to stop operations against the American occupation forces... All that matters is that the work is subject to the balances specific to the stage."

Two days ago, Kazem al-Fartousi, spokesman for the Sayyid al-Shuhada Brigades, one of the most prominent Iraqi armed factions, confirmed to Al-Araby Al-Jadeed that the position of the Iraqi resistance factions has been clear and announced from the beginning, that the failure of diplomatic efforts to end the American presence in Iraq will push them to resume their operations to liberate all Iraqi territory. This matter is fixed and announced, and we are awaiting the government’s official position regarding the latest developments in its negotiations, even though we know that there is no American seriousness in withdrawing.

For his part, a deputy in the Coordination Framework Alliance confirmed that the positions of these factions are not yet official, especially since the government is seeking to extend the truce, explaining to Al-Araby Al-Jadeed that “the Al-Nujaba Movement and Hezbollah are among the most hardline resistance factions in their positions against Washington, and that there are less hardline voices within the resistance.” The deputy, who requested anonymity, confirmed that “these factions have taken a position to end the truce unilaterally, and that they have confirmed that they will strike American bases in Iraq if America strikes the factions in response to targeting the Ain al-Assad base,” indicating that “the government, in turn, has provided them with guarantees that Washington will not carry out any strike, in an attempt to calm the situation.”

He pointed out that "the government side is exploiting the period of the Arbaeen pilgrimage and the factions' preoccupation with it, to move towards not violating the truce," indicating that "the situation is not reassuring, and the biggest role is for the government, which is working hard to control the rhythm of the two parties."

Forces in the Coordination Framework are working to remove the circle of confrontation

Forces within the Coordination Framework are also seeking to remove the issue from the circle of military confrontation, calling on parliament to intervene. Al-Fatah Alliance leader Ali Al-Fatlawi said in a press statement on Wednesday that "the political forces are determined to expel American forces from the country and have no intention of backing down from this decision at all." He called on the House of Representatives to intervene "in the upcoming sessions to discuss the expulsion of these forces, because this presence threatens security and stability in Iraq."

On August 5, the Ain al-Asad base was subjected to a missile attack, for which a new group calling itself “the Revolutionaries” claimed responsibility, and which resulted in the injury of a number of American soldiers within the US-led international coalition forces. Two days later, the Iraqi authorities announced the arrest of five people who they said were involved in the attack on the base, while no details about them have been revealed so far.

Since the beginning of last February, the Iraqi resistance factions have entered into a truce with the American side following the assassination of the leader of the Iraqi Hezbollah Brigades, Abu Baqir al-Saadi, stressing that this comes to pave the way for the Iraqi government to take the initiative towards developing solutions to end the presence of the international coalition in the country.  link