BETWEEN ECONOMIC EXPERTS’ WARNINGS AND GOVERNMENT DENIAL, THE VALUE OF THE IRAQI DINAR IS AT STAKE. , 29 jan

 BETWEEN ECONOMIC EXPERTS’ WARNINGS AND GOVERNMENT DENIAL, THE VALUE OF THE IRAQI DINAR IS AT STAKE

An informed government source denied, on Tuesday (January 28, 2025), that the Iraqi government has any intention to reduce the value of the dinar against the dollar, despite rumors indicating upcoming measures to confront economic pressures and challenges in the international market.

The source confirmed, in a special interview with Baghdad Today, that “the news about the government’s intention to reduce the value of the dinar against the dollar is absolutely incorrect.”

He added: “The government is working to stabilize the official exchange rate set by the Central Bank, and seeks to control the parallel market. Any change in the exchange rate during the current stage or within the 2025 budget schedules will lead to negative results, and that is why the government is committed to strengthening the current rate.”

A different economic vision

In contrast, economist Ziad Al-Hashemi believes that reducing the value of the dinar to 1,450 dinars against the dollar could be a possible step to deal with the repercussions of the economic crises. Al-Hashemi said: “This measure may reduce the financial pressure on the government and reduce the cost of supporting the dinar, but it will negatively affect citizens through deteriorating salaries and rising prices of goods and services.”

Al-Hashemi added: “Devaluing the currency may lead to increased inflation rates due to the loss of confidence in the dinar and the increase in demand for the dollar. This decision, despite its limited positive impact in the short term, will have long-term consequences on the markets and the lives of the Iraqi citizen.”

The political aspect and Trump’s role

On the political front, political affairs expert Nabil Al-Azzawi pointed out that US President Donald Trump, who is expected to return to the White House, may change his policies towards Iraq. Al-Azzawi explained: “Trump, as an economist, realizes that politics is managed through economics. Despite the previous tense relations, indications are that he will deal cautiously with the Iraqi file.”

Al-Azzawi praised what he described as the “wisdom of Al-Sudani’s government” in sparing Iraq political crises and international sanctions, considering that relations between Baghdad and Washington may witness positive development after activating the security agreement and strengthening mutual interests.

Between denial and warnings

With conflicting positions between government denial and economic warnings, it seems that the Iraqi government is facing a challenge in maintaining the stability of the currency and avoiding the negative repercussions of any ill-considered action. 

While economic pressures are increasing, the Iraqi citizen remains the most affected by any change in financial policies.

This file resolves a delicate balance between government decisions and economic recommendations, to ensure financial stability and protect citizens from the repercussions of any decisions that may affect their daily lives.

TIDBIT FROM JON DOWLING, 29 JAN

  Jon Dowling

 Trump already removed income and property taxes during 2020 in the plandemic. He’s just getting the people warmed up to the reality of what’s coming and what’s already occurred. 

Furthermore, he was in Vegas and then called the Treasury in Reno and told them to move and get their act together, so the reset will really start unraveling now

MAJEED:THE CBI INFORMED THAT THE ELECTRONIC PAYMENT WILL STOP TODAY FOR MAKE UPDATE TO THEIR SYSTEMS

 

“AUCTION DOES NOT BUILD THE ECONOMY” , 29 jan

 “AUCTION DOES NOT BUILD THE ECONOMY”   

by Khalil Ibrahim Al-Abidi

January 21, 2025 Walter

 The mission of the world’s central banks is to control the rhythm of the economy, by controlling the interest rate, not by auction. It is the bank of banks, working through clearing and opening credit, and ensuring the protection of the country’s currency from damage and decline against other currencies.  It issues a currency whose value is evaluated in gold, not in the currency of others, upon request. 

The auction is an innovation of Bremer since the occupation, and we have become accustomed to the mistake and it has become a lifeline. Gentlemen… the Central Bank did well recently and left the auction platform, and returned to respect its currency, which is the dinar. ……What is required today, as we are at the beginning of the year, is to think carefully about what the repercussions will be, and to return with determination to the documentary cycle in imports,

 and to work without selling the currency by opening credit for those who want to import, by relying on our government banks after purging them of corruption and identifying correspondent banks for those who carry sobriety and integrity of correspondence, and finally determining the scale of priorities when importing and encouraging national production and exploitation of raw materials, and imposing exorbitant fees to protect industries and the rest of the products.

Working to follow up on what is imported under the import license and ridding the country of the decline of its currency and the danger of imports, and the most important step is to zero out the dinar, and buy the 1,250 old dinars for one dinar of the new currency during the exchange after printing the one dinar denomination, and the value of one dinar will be one dollar through the documentary import cycle, and we have sufficient revenues in addition to the sovereign reserves. 

Making the value of one dinar equal to one dollar will keep the citizen, merchant, traveler, doctor, etc. away from running after the dollar. Rather, he will be reassured that his currency is valid for purchase and exchange wherever he is, and this is the point of safety.

REINALDO JC: IRAQ UPDATE, 29 JAN

 REINALDO JC

IRAQ •Iraq is expected to join the WTO by end of Q1=meaning {by March 31st}. •Iraq internal financial 24’ budget ends on March 31st meaning the {2025 spending budget books begin/opens}. •The Dinar Cannot be the same current official rate at 1310 for the new 2025 budget (just sayin). •Trump State of The Union speech is scheduled for March 4th which is the Original inauguration date of our REPUBLIC… …& wouldn’t it be GLORIOUS with a big announcement by Trump informing the nation that the U.S. has paid up in full the national debt of $36 Trillion by you already know how…which the normies won’t have a clue exactly how it was done, but us investors knowing it was by the (IQD REINSTATEMENT). {no wonder bill clinton had a damn surplus while President in the 90’s— i wonder what happened in March 24, 1991 in Kuwait} Don’t mind me…I’m just thinking out loud

MNT GOAT: The CBI told us That the ATM are an integral part of the Project to Delete the Zeros.!!!

 

Economist: Reserves in the Central Bank vary between dollars and gold, 29 JAN

 Economist: Reserves in the Central Bank vary between dollars and gold

Economist Salah Nouri said on Tuesday that the reserve in the Central Bank consists of (the dollar currency, the euro currency, gold is based on the London market price.

In his interview with {Euphrates News}, Nouri explained that “the Central Bank’s policy aims to diversify the investment portfolio between the dollar currency and gold, as this portfolio is managed according to global variables.”

He pointed out that “the central bank has investments in the form of debt bonds in the US Treasury with acceptable interest.”

“In light of the current international changes and the statements of US President Trump, the central bank can move towards gold as a safe haven,” Nouri continued.

He added: “According to the central bank’s announcements, gold reserves promise the level of safety, in addition to the dollar reserves, which can help maintain economic stability.”

Regarding economic challenges, Nouri pointed out that “the difficulties that Iraq may face are related to the financial policy managed by the Ministry of Finance, as the low oil prices and determining the amount of exports and problems with the region lead to a decrease in the ministry’s revenues from oil sales in dollars, as well as the US Federal policy that transfers the dollar to the Ministry of Finance.”

“These difficulties in fiscal policy negatively affect the monetary policy pursued by the Central Bank of Iraq,” Nouri continued.

From.. Ragheed

https://alforatnews.iq/news/خبير-اقتصادي-الاحتياطي-في-البنك-المركزي-يتنوع-بين-الدولار-والذهب