Friday, January 17, 2025

MAJEED: "And the rate will be $4 per 1 IQD " ‪@DINARREVALUATION‬

Will the implementation of the Oil and Gas Law stop the series of smuggling in the region?, 17 JAN

Will the implementation of the Oil and Gas Law stop the series of smuggling in the region?

MP Nazim Al-Shabli, a member of the Oil and Gas Committee, revealed today, Wednesday, that the Kurdistan Region does not want to hand over oil revenues to the federal government.

Al-Shabli said in a statement to Al-Maalouma Agency, “The oil and gas law, which in turn limits oil smuggling in the region, is subject to political differences,” noting that “the importance of enacting the law is to control oil revenues after the procedures to stop the region's exports through the Ceyhan crossing and the intervention of international courts."

He added, "The region has no real desire to send oil imports, in addition to the continuation of oil smuggling operations."

He pointed out that "the enforcement of the oil and gas law in turn limits oil smuggling and obliges the region to send oil revenues, and stressed the need to send the draft oil and gas law for discussion and approval in the House of Representatives." link

TIDBIT FROM FRANK26, 17 JAN

Frank26

Security, Stability, those are the two words that is the formula in order for us to have a new exchange rate. The CBI floor must be so clean you could eat off of it.

The politicians must not have the ability to steal from the auctions anymore...Do they have that ability? No. Are the auctions there? No, all gone...Everything looks good.

So what do we need? ...The exchange rate. Where's the exchange rate? In the budget.

Question: "Is this one still legal? The 50K [note]?"

Frank26: The 50 dinar note is not legal. Everything else is okie dokie. The 50,000 note is extremely legal. There's even a 100,000 note that will be legal but that will only be used by the Central Bank of Iraq and the GOI.

JEFF: " Iraq would need to pause and suspend credit and lending practices to rise the IQD"

Al-Eidani: Al-Sudani's visit to Britain resulted in removing Iraq from the red list for risk assessment, 17 JAN

Al-Eidani: Al-Sudani's visit to Britain resulted in removing Iraq from the red list for risk assessment

Basra Governor Asaad Al-Eidani revealed on Wednesday that the investment status in Iraq was raised from the red list to the orange list during Prime Minister Mohammed Shia Al-Sudani’s visit to London. In what he described as an important achievement, he revealed that new security and financial agreements were reached with Britain during the visit.

Al-Eidani, who accompanied the visiting Iraqi delegation to Britain, said in a statement reported by the official news agency, and reviewed by "Al-Eqtisad News", that "Prime Minister Mohammed Shia al-Sudani's current visit to Britain resulted in the transformation of the risk assessment in Iraq from the red list to the orange list in terms of the investment environment, and this is an important achievement and we may advance to yellow."

He added, "The businessmen accompanying the Prime Minister on the visit welcomed the new assessment, which may be transformed to yellow at a later time."

He continued, "Many British businessmen have concluded agreements with the Iraqi side in several fields, including education and universities, and a number of British businessmen have agreed with their Iraqi counterparts to establish joint laboratories."

He pointed out that "the Prime Minister held a meeting today with the British Home Secretary, and many topics related to security were discussed, especially the file of exchanging expertise between the Iraqi and British Interior Ministries."

He pointed out that "there was also a financial meeting, and an agreement was signed between the Trade Bank of Iraq and British financial institutions. There is also a financial meeting attended by the Prime Minister that could discuss support for the Iraqi private sector from British financial institutions, especially after raising the risk assessment from red to orange link

HIGHLIGHTS OF IRAQ STATUS TODAY , 17 JAN

IRAQ STATUS

Highlights

Summary

We delve into the Central Bank of Iraq’s proactive measures aimed at revitalizing the Iraqi dinar and stabilizing the nation’s economy.

The Central Bank is forming partnerships with neighboring countries like Jordan and Saudi Arabia to establish a more diversified currency strategy that reduces reliance on the US dollar.

This initiative includes adopting a basket of currencies and backing the dinar with reserves of gold and other currencies, moving away from its current dependence solely on oil prices.

These strategic shifts aim to eliminate the black market for currency exchange, instill confidence in the local currency, and ultimately improve the purchasing power of the Iraqi people.

However, these changes come with challenges, including the need for public education and potential economic volatility as Iraq navigates its way to a more stable financial future.

🌍 Partnerships for Stability: Iraq is collaborating with Jordan and Saudi Arabia to reshape its currency strategy.
💰 Diversifying Currency Support : The dinar will be backed not just by oil but also by gold and a variety of currencies.
🚫 Fighting the Black Market: New policies aim to eliminate black market currency exchanges by creating a stable environment.
📈 Increasing Purchasing Power: A stronger dinar could enhance the purchasing power, positively impacting the lives of many Iraqis.
📊 Floating vs. Basket Currency: The video discusses two options for currency valuation: a basket currency approach and allowing the dinar to float.
👥 Trust and Consumer Confidence: A stable dinar could lead to increased consumer confidence and economic growth.
🔄 Challenges Ahead: Transitioning to a new currency strategy poses risks that require clear communication from the Central Bank.

Key Insights

🏦 The Role of Strategic Partnerships: The Iraqi Central Bank’s partnerships with regional powers signify a shift towards collaborative economic strategies. By engaging with countries that have stable currencies, Iraq aims to build a more resilient economic framework. This collaborative network not only enhances trade relations but also fortifies the dinar’s position in the global market, potentially attracting foreign investment and reducing economic isolation.
📈 Implications of a Diversified Currency Basket: Moving towards a basket of currencies for trading purposes signifies a major paradigm shift in how the Iraqi economy operates. This approach could cushion the dinar from oil price volatility, which has historically dictated its value. However, the successful implementation of this strategy requires meticulous planning and robust partnerships to ensure that the basket includes currencies that are stable and widely trusted.
⏳ Impact on the Black Market: The existence of a black market thrives on economic instability and lack of trust in official currency rates. By creating a more stable currency environment through foreign channels, Iraq hopes to mitigate black market activities. A reduction in black market transactions would not only enhance regulatory oversight but also foster safer trading conditions for businesses and consumers alike.
🌟 Consumer Confidence and Economic Growth: As Iraq’s economic framework stabilizes, the potential for increased consumer confidence becomes apparent. When citizens trust their currency and government policies, they are more likely to spend and invest, fostering economic growth. This trust is crucial for stimulating local businesses and improving the overall quality of life for the Iraqi people.
⚖️ Floating Currency vs. Basket Currency: The debate between adopting a floating currency versus a basket approach raises critical questions about economic management. A floating currency allows for real-time value adjustments according to market conditions, potentially leading to greater economic responsiveness. However, this approach may also introduce volatility, making everyday budgeting for families and businesses more challenging.
📢 The Importance of Public Education: For any economic transition to be successful, clear communication and education are paramount. The Central Bank must ensure that citizens understand the implications of the new policies and how they will affect their daily lives. This educational effort will be vital in garnering public support and trust during the transition phase.
🌍 Iraq’s Position in the Global Economy: The moves being strategized by the Iraqi government could lead to a significant re-positioning of Iraq within the global economic landscape. By fostering regional partnerships and stabilizing the dinar, Iraq could pave the way for a more active role in international trade and finance, enhancing its global standing and economic resilience.

In conclusion, there is a transformative phase for Iraq’s economy, focusing on the vital role of currency stabilization and regional collaboration.

While challenges lie ahead, the proposed strategies offer a glimmer of hope for a more prosperous future for the Iraqi people, characterized by a stronger dinar and reduced economic volatility.

DINAR REVALUATION