Sudani’s Confirmation of Dinar Revaluation Plan: Iraq, September 2024
As of September 10, 2024, Prime Minister Mohammed Shia al-Sudani of Iraq has confirmed plans for a revaluation of the Iraqi dinar, aiming to strengthen the national currency. This move comes amidst economic challenges and fluctuations in the dinar's value, which have impacted markets and purchasing power in the country.
Background: Changes in Central Bank Leadership
In response to the dinar's value drop, Sudani replaced the governor of the Central Bank of Iraq, Mustafa Ghaleb Mukheef, with Muhsen al-Allaq. This change was made with the intention of stabilizing the currency and addressing the economic issues affecting the Iraqi population.
Revaluation Plans and Public Announcement
The revaluation plan, which Sudani has confirmed, involves measures to increase the value of the Iraqi dinar. To ensure transparency and manage the process, the government has taken steps to prepare the public for the revaluation. This includes the installation of TV screens for currency swap announcements, aiming to provide clear and direct information to the Iraqi people.
Economic Impact and Public Reaction
The fluctuating value of the dinar has affected the Iraqi economy, leading to concerns among the population about purchasing power. With the revaluation plan, the government hopes to restore confidence and stabilize the economy. However, public reaction to the revaluation is mixed, with some expressing hope for economic improvement and others skeptical about the effectiveness of such measures.
Future Outlook
The success of the revaluation plan will depend on various factors, including the stability of the global economy and the effectiveness of the Central Bank's monetary policies. As of September 10, 2024, the Iraqi government remains committed to implementing measures that will strengthen the dinar and improve the country's economic situation.
In conclusion, Sudani's confirmation of the dinar revaluation plan and the steps taken to prepare for a currency swap mark a significant development in Iraq's economic landscape. The government's efforts to strengthen the dinar reflect a broader strategy to address economic challenges and improve the financial well-being of the Iraqi people.
Impact of Road Projects on the Value of the Iraqi Dinar in 2024
The development of road projects in Iraq has far-reaching implications for the country's economy and, by extension, the value of the Iraqi dinar. Road infrastructure improvements are crucial for enhancing trade, fostering economic growth, and reducing logistical bottlenecks.
Enhancing Trade and Economic Activity
Road projects facilitate the movement of goods and services, thus promoting domestic and cross-border trade. Improved connectivity can attract foreign investment and boost local businesses, leading to an increase in GDP and, subsequently, a stronger currency.
Reducing Costs and Increasing Efficiency
Well-maintained roads reduce transportation costs and improve the efficiency of supply chains. Lower costs can translate into higher profit margins for businesses and potentially lower prices for consumers, which may contribute to a more stable and attractive economic environment for investment.
Boosting Employment and Income Generation
Construction and maintenance of roads create jobs, increasing employment opportunities and generating income for the local population. Higher incomes lead to increased consumer spending, which can stimulate the economy and potentially strengthen the dinar.
Enhancing Government Revenues
Improved road infrastructure can lead to increased government revenues through taxes on goods and services, as well as from tolls on major routes. Higher revenues can contribute to a more stable fiscal position, which is favorable for the dinar's value.
Attracting Foreign Direct Investment
Road projects that improve connectivity and reduce logistical challenges can attract foreign direct investment (FDI). Increased FDI can lead to capital inflows, which can support the dinar's exchange rate.
In summary, the development of road projects in Iraq can significantly contribute to the enhancement of the value of the Iraqi dinar by stimulating economic growth, increasing efficiency, generating employment, boosting government revenues, and attracting foreign investment.
The Story Of The Suspicious Dollar Transfer.” An American Newspaper Interviews Ali Ghulam At His Palace In London, “Near The American Embassy.”
Policy 2024-09-09 | 7,321 views Alsumaria News-Politics A Wall Street Journal report revealed the extent of Ali Ghulam’s influence on the dollar crisis in Iraq, as he was the reason for the American side imposing strict control on dollar transfers from Iraq, while
Ghulam was described as “the undisputed king of the dollar in Iraq for a decade.”
The Iranian Revolutionary Guard was financed with dollars using suspicious import receipts, which is denied by Gholam, who lives in his mansion in London near the residence of the American ambassador to Britain.
The newspaper pointed out that the American side was aware of these problems since 2012, but did not want to plunge Iraq into an economic crisis.
The newspaper said in an article translated by Al Sumerian, that Ali Ghulam was the undisputed king of the dollar in Iraq for nearly a decade, and
his three banks in Baghdad transferred tens of billions of dollars at that time outside the country, ostensibly to buy car parts, furniture and other imports, indicating
He was one of the most senior workers in the ad hoc banking system that was established nearly two decades ago under the American occupation and that gave the Federal Reserve Bank of New York a key role in processing Iraq's international transactions. She noted that
years later, when the Federal Reserve finally began to look more closely at where the money was going, it closed it almost overnight, as
American officials suspected that its banks were among more than two dozen Iraqi banks involved in transferring dollars to Iran and its allies., using front companies and false invoices to circumvent sanctions that prevent Iran from accessing the global financial system.
The newspaper reported that audits of Gholam's banks, which were completed in May, revealed unusual details of dollar transactions abroad, which auditors said raised concerns about money laundering. Gholam denied these allegations in interviews.
The newspaper explains that among Iraqi banks in general, it was not possible to trace up to 80% of the bank transfers worth more than $250 million that flow through them on some days, and part of this amount went secretly to the Iranian Islamic Revolutionary Guard Corps.
The crackdown on Iraqi banks began in late 2022 after more than a decade of US inaction, even after the Pentagon's inspector general warned as far back as 2012 of the potential for fraud worth $800 million a week.
Current and former US officials said the US had imposed... Over the years, it has imposed temporary restrictions on cash flows to Iraq, but fears that strict or permanent controls will plunge Iraq into economic chaos and setback its battle against ISIS.
Ghulam, 42, now based in London, ran an empire that handled the lion's share of dollars transferred outside Iraq, on some days as much as 20 percent of wire transfers, he and Iraqi banking officials said.
Its banks - Iraqi Middle East Investment Bank, Al Ansari Islamic Bank, and Islamic Holding Bank - were the first to be banned from dollar transactions by the Federal Reserve and the Treasury Department in late 2022.
He was suspended from work due to the large volume of suspicious transactions, and no action was taken against Ghulam personally.
Gholam denied that his banks knowingly sent money to the Quds Force or the Iranian government. He said:
"The Americans have nothing against me.
I have nothing to do with money laundering or Iran."
He said that his life in London, where he and his family live after moving from Baghdad in 2018, has been turned upside down since the loss of the US dollar.
His $40 million home, which was recently renovated with shiny marble floors, a swimming pool in the basement and a parrot cage, is located Just a few blocks from the US ambassador's residence, after a walk, he often heads to his favorite London restaurants in his Rolls-Royce SUV.
“The system is bad, but every bank in Iraq was operating under the same system,” Ghulam said. The Americans came up with this system?
Since the ban on Gholam's banks, the Treasury Department and the Federal Reserve have been pressing for more sweeping changes in Iraq.
The United States has banned more than two dozen other Iraqi banks from conducting transactions in dollars.
Strict new rules imposed by the Central Bank of Iraq since late 2022 under American pressure require banks to disclose the final recipients of bank transfers.
The New York Federal Reserve Bank at that time began carefully monitoring wire transfers from Iraq's official accounts, rejecting any transfers that did not comply with standard procedures for transferring international funds, officials said.
