DINAR REVALUATION UPDATE: Iraq's Move to Peg the Dinar to Petro-Dinar Instead of Petro-Dollar, 27 AUGUST

Iraq's Move to Peg the Dinar to Petro-Dinar Instead of Petro-Dollar

In a significant shift from traditional practices, Iraq is reportedly considering pegging the Iraqi dinar to a petro-dinar instead of the petro-dollar as of August 27, 2024. 1 This move is a response to US sanctions and the ongoing devaluation of the dinar, which has prompted the Iraqi government to explore alternative currencies for its oil trade.

Background and Motivation

The Finance Committee in the Iraqi parliament has called for the sale of oil in currencies other than the US dollar. 1 The motivation behind this decision is to counter US sanctions on the Iraqi banking system and stabilize the dinar's exchange rate. The US Treasury's restrictions, under the pretext of preventing money laundering, have led to sanctions on several Iraqi banks, causing volatility in the dinar's value. 1

Impact on the Iraqi Dinar

The shortage of dollars in Iraq has led to a devaluation of the Iraqi dinar, with the government imposing a ban on personal and business deals in US dollars.  2 This ban has affected the buying power of Iraqi citizens, who typically use dollars for large transactions due to the lack of trust in the dinar.

Currency Substitution Trend

Iraq's move towards the petro-dinar is part of a broader trend of currency substitution in the Middle East. 2 Countries like Saudi Arabia and the United Arab Emirates are also exploring alternatives to the US dollar, considering transactions in euros, Chinese yuan, and Indian rupees for their oil trade.

Prospects for the Petro-Dinar

Pegging the dinar to a petro-dinar could potentially stabilize Iraq's economy by reducing dependence on the US dollar and its associated sanctions. 1 This shift could also foster stronger economic ties with countries that have been affected by US sanctions, such as Iran.

Conclusion

Iraq's decision to move from the petro-dollar to the petro-dinar for its oil trade is a strategic move aimed at countering US sanctions and stabilizing the national currency. This shift reflects a broader trend in the Middle East towards currency substitution, with countries seeking to diversify their financial systems and reduce reliance on the US dollar.

WHEN THEY DO LIBERATE THE DINAR BY MNT GOAT, 27 AUGUST

MNT GOAT

 When they do liberate the dinar, it will include two main steps in the process. Please go to my blog to read all about these upcoming steps. 

They CAN NOT and WILL NOT just jump to reinstate without first following a process of the Project to Delete the Zeros.

 I have explained this process many times already to you. You can read it and follow it HERE.  But today’s news is also about deciding whether they will peg the Iraqi dinar to a petro-dinar instead of petro-dollar?

 Yes, you heard right. Didn’t I talk about this months ago?

 Didn’t I tell you my CBI source told me they were considering this? How risky is it? Is this really Dr. Shabibi’s plan? Let’ talk about it in more detail. 

Iraq's Bold Move Banking Sector Reforms 2024 08 03

DINAR REVALUATION UPDATE: Establishment of the Commercial Arbitration Center in Iraq 2024, 26 AUGUST

Establishment of the Commercial Arbitration Center in Iraq 2024

In 2024, a significant development in the Iraqi legal landscape was the establishment of the Commercial Arbitration Center in Iraq, aimed at addressing commercial disputes and fostering an environment conducive to investment and economic growth. 1 [2]:url2. 3 [4]:url4. 5 [6]:url6.

Enhancing Commercial Dispute Resolution

The Commercial Arbitration Center's establishment in Iraq marked a pivotal step in improving the resolution of commercial disputes within the country. 1 This initiative was supported by international organizations and was seen as a way to streamline dispute resolution processes, making them more efficient and internationally aligned.  1

Expansion of Global Arbitration Networks

The center's establishment was also significant for its role in expanding global arbitration networks. Iraq's inclusion brought the number of International Chamber of Commerce (ICC) national committees to 92. 2 indicating a growing recognition of Iraq's role in international commerce and arbitration.

Promoting Peace, Prosperity, and Opportunity

The ICC Iraq's launch aimed to support institutional objectives that foster peace, prosperity, and opportunity for all through local commissions focusing on arbitration, alternative dispute resolution (ADR), digital economy, intellectual property, and trade and investment.  2 This move was expected to encourage foreign investment and bolster the local economy by providing a credible and efficient dispute resolution mechanism.

Challenges and Opportunities

Despite the positive outlook, the center faced challenges, including navigating the complexities of a post-conflict society and addressing issues of corruption and fairness in arbitration. 3 [4]:url4. Nevertheless, the center's establishment was viewed as a crucial step toward overcoming these challenges and establishing Iraq as a more stable and attractive destination for commercial activities.

Boosting Investment

The role of commercial arbitration in boosting investment was highlighted during an event organized by the Federation of Iraqi Chambers of Commerce in collaboration with the United States Agency for International Development (USAID). 6 Key figures emphasized the importance of arbitration in resolving disputes and attracting foreign investors, underscoring the need for adherence to international conventions and standards. 6

ANALYSIS OF IRAQ NEWS BY KAPERONI, 27 AUGUST

 Kaperoni

  Article 1: "Is it time to remove the zeros?

"Article 2: "Is Iraq heading towards printing new paper currency?"  

These articles discuss a LOP...Iraq is converting to digital currency over time removing the paper money.

 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

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https://dinarevaluation.blogspot.com/2024/08/latest-from-kaperoni-23-august.html

CBI's New Banking Guidelines: What You Need to Know!

DINAR REVALUATION : ANOTHER MOVE OF IRAQ TO DIVERSIFY ITS ECONOMY & TECHNOLOGY , 27 AUGUST

British Company Secures Solar Power Plant Contract in Basra

In a significant development for the energy sector in Iraq, a British company has been awarded a contract to design and supply a solar power plant for the Majnoon oil field in Basra Governorate. 1 This move aligns with Iraq's efforts to diversify its energy mix and reduce dependence on oil while addressing environmental concerns.

The Contract Details

The project is being implemented for the benefit of the Basra Oil Company (BOC) and is part of a broader strategy to incorporate renewable energy sources into Iraq's energy infrastructure. The solar power plant, once operational, will contribute to the country's goal of increasing its renewable energy capacity.  2

Impact on Local Economy

The contract award is not only a boost for the renewable energy sector but also a positive development for the local economy. It is expected to create jobs and stimulate local employment, particularly in the Basra region.  1 The British company's commitment to investing in local employment and skills development underscores the mutually beneficial nature of the partnership.

Alignment with Global Trends

This contract is indicative of a global trend toward greater investment in renewable energy sources, particularly solar power. Iraq's decision to award this contract to a British company highlights the country's openness to international collaboration in the pursuit of sustainable energy solutions. 3