Thursday, December 26, 2024
Iraq’s Al-Sudani: We overcame regional challenges through unified national discourse, 26 DEC
Iraq’s Al-Sudani: We overcame regional challenges through unified national discourse
Shafaq News/ On Wednesday, Iraqi Prime Minister Mohammed Shia Al-Sudani affirmed that Iraq successfully overcame recent regional challenges through a "unified national” discourse.
The Prime Minister made these remarks while extending Christmas greetings in a video conference with Christian clergy from churches across Iraq.
"We managed—through solidarity and a unified, responsible national stance—to confront the challenges that arose in the region, which could have impacted neighboring countries and the world," he said.
Al-Sudani added, "We have helped keep our country out of the arena of wars and conflicts."
LATEST UPDATE REPORT FROM IRAQ & THE IRAQI DINAR, 26 DEC
LATEST UPDATE REPORT FROM IRAQ & THE IRAQI DINAR
Summary
In the latest update from IRAQ & THE DINAR, various Intel Gurus provide insights into the economic developments regarding the Iraqi dinar.
Key figures such as Mr. Samy, a pivotal player in Iraq’s economic planning, have identified controlling inflation as a primary focus, especially with the anticipated end of currency auctions.
This move paves the way for the introduction of new lower denomination notes and an updated exchange rate, potentially occurring as soon as December 31 or even earlier.
The initiative known as “delete the zeros” aims to replace high-value notes with smaller denominations to enhance purchasing power and simplify the currency system, aligning with the Central Bank of Iraq’s broader economic reform agenda.
Additionally, significant economic progress is highlighted, particularly with non-oil revenues rising from 7% to 14%, indicating diversification in income sources. A key meeting at the Central Bank of Iraq is slated to evaluate the “delete the zeros” initiative, with outcomes expected to influence the dinar’s value.
The planned cessation of currency auctions by year-end is another crucial development, indicating a shift towards a market-driven exchange rate system. Furthermore, Iraq is strengthening its financial connections with international banks, signaling global confidence in its economic stability.
This expanding network is vital for facilitating trade and attracting foreign investment.
For individuals looking to exchange their dinars, several options are available, including private banking services and independent currency exchange centers, which often offer better rates and faster service than major banks. The report concludes with optimism regarding the dinar’s potential for appreciation, backed by ongoing reforms and increasing international trust in Iraq’s economy.
Highlights
- 📈 Economic Reforms: Iraq’s Central Bank is implementing significant reforms aimed at strengthening the dinar and controlling inflation.
- 💵 Cessation of Currency Auctions: By the end of the year, Iraq plans to stop currency auctions, moving towards a market-driven system.
- 🔄 Delete the Zeros Initiative: The initiative aims to replace high-value notes with smaller denominations to boost purchasing power.
- 🌍 Growing International Confidence: Iraq is expanding its network of international banking partners, signaling trust in its economic stability.
- 💼 Increased Non-Oil Revenues: Non-oil revenues have doubled, indicating a diversification of Iraq’s economy.
- 🏦 Efficient Currency Exchange Options: Various alternatives exist for exchanging dinars that may offer better rates and faster transactions.
- 📊 Positive Economic Indicators: There are noticeable improvements in employment and poverty levels, illustrating progress in economic reforms.
Key Insights
📉 End of Currency Auctions as a Catalyst: The cessation of currency auctions marks a significant shift in Iraq’s monetary policy. This move is expected to stabilize the dinar’s value by allowing market forces to dictate exchange rates, thus enhancing the currency’s credibility and attractiveness to investors.
📊 Impact of the Delete the Zeros Initiative: The “delete the zeros” initiative not only simplifies currency transactions but also aims to improve the dinar’s purchasing power. By removing high-denomination notes, Iraq is attempting to recalibrate its economy, making it more efficient and less susceptible to inflationary pressures.
🌟 Diversification of Economic Revenue: The doubling of non-oil revenues from 7% to 14% signals a crucial milestone in Iraq’s economic development. This diversification is essential to decrease reliance on oil exports and create a more resilient economy capable of withstanding global market fluctuations.
🌐 Strengthening Financial Ties: The expansion of Iraq’s banking relationships with international banks is a positive indicator of increased global confidence in its economy. This could facilitate foreign investment and improve the country’s access to foreign currencies, which is necessary for international trade.
💬 Potential for Dinar Appreciation: With ongoing reforms and a shift towards a more market-driven economy, there is a strong possibility that the dinar’s value will rise. This potential appreciation makes it essential for investors to stay informed about market conditions and exchange opportunities.
🏦 Alternative Currency Exchange Options: With reports suggesting delays at major banks like Chase, exploring alternative currency exchange methods, such as local centers or the Central Bank of Iraq, can lead to quicker transactions and better rates. This flexibility can enhance investor experiences and outcomes.
📉 Improving Economic Indicators: The reduction in unemployment from 16.5% to 14.4% and poverty from 23% to 17.7% are strong indicators of economic progress. These improvements suggest that Iraq’s economic reforms are beginning to yield positive results for the population, which could further bolster confidence in the dinar.
Overall, these insights reflect a broader narrative of optimism surrounding Iraqi economic reforms and the potential for the dinar’s value to strengthen in the coming months. As these changes unfold, stakeholders and investors are urged to remain vigilant and proactive in their currency exchange decisions.
EXCLUSIVE: Iraq has no intention to extend US forces presence, CF member says, 26 DEC
EXCLUSIVE: Iraq has no intention to extend US forces presence, CF member says
Shafaq News/ On Wednesday, the Iraqi Coordination Framework (CF), which brings together Shiite political forces, denied the Iraqi government's intention to extend the presence of US forces in Iraq, while suggesting that armed operations could resume if the withdrawal timetable is not followed.
The Washington Post, citing an Iraqi official, reported that Iraq is likely to request an extension of the US military presence due to recent developments in the region following the collapse of the Al-Assad regime in Syria.
In response, MP Mokhtar al-Moussawi, a member of the CF, told Shafaq News Agency, "There is no intention from the Iraqi government or parliament to request an extension of the US forces' stay in Iraq following the recent developments in Syria…There are no concerns about the situation in Syria or its current leadership, as they do not affect Iraq's internal affairs."
Regarding the suspension of operations by Iraqi armed factions against US forces, al-Moussawi explained, “The operations stopped due to the existing timetable for the withdrawal of US troops from the country… Any extension of this presence will inevitably lead to the resumption of operations targeting American objectives and interests.”
"There is no possibility of US forces remaining; the implementation of the withdrawal timetable agreed upon by Baghdad and Washington is being closely monitored,” he added.
Months ago, Baghdad and Washington announced an agreement setting a deadline for the withdrawal of US-led Global Coalition forces by September 2025.
Since mid-October 2023, armed factions have targeted US bases in Iraq, coinciding with the Israeli war on Gaza. The Iraqi factions claimed these actions were “in retaliation for US support” of Israel.
The previous escalation between the factions and the US led to military responses, the latest being an airstrike on Al-Qaim, a town northwest of Baghdad near the Syrian border. The US Central Command confirmed that its forces targeted sites linked to the Islamic Revolutionary Guard Corps-Quds Force and its affiliated groups in both Iraq and Syria.
The US response to the attacks also included targeted assassinations of faction leaders in central Baghdad using “guided, precise” missiles.
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