Thursday, January 30, 2025
Expert warns of exchange rate change: wrong step bigger than last amendment, 30 JAN
Expert warns of exchange rate change: wrong step bigger than last amendment
The economic expert, Abdul Rahman Al-Mashadani, warned against changing the official exchange rate and returning it to 145 thousand dinars per 100 dollars.
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“There is talk about the idea of changing the official exchange rate and returning it to 145 thousand dinars for every 100 dollars,” Al-Mashhadani said, warning that “this measure will be the biggest mistake of the last amendment.”
He stressed that “the dollar exchange rates in the parallel market have stabilized for a long time at the threshold of 151 thousand dinars per 100 dollars,” pointing out that “this difference has nothing to do with the budget tables for 2025, as it will not differ much from the 2024 budget.”
Al-Mashhadani pointed to “a desire to stabilize the price of a barrel of oil at $60 with a trend to reduce investment expenditures, due to the large and continuous fiscal deficit in the budget,” adding that “the gap between the dollar in the parallel market and the official price will remain the same.”
He explained that “dollar exchange rates will not stabilize due to a gap in demand, as Iranian goods constitute a large part of the market, and imports continue at a rate of 25 to 35 million dollars per month, with the financing of these funds from the parallel market instead of central bank transfers.”
The economist concluded by stressing that “the exchange rate between the parallel and official market will continue unless trade is regulated and entered in the central bank’s remittances.”
Ragheed
TIDBIT FROM FRANK26, 30 JAN
Frank26
If you were the board of BP [British Petroleum] and you were about to sign a massive oil deal with Iraq...Are you seriously going to sign it at 1310?
You've never signed it before. Show me something you've signed in the last 20-30 years with Iraq's Oil Company. No they got their own oil company don't they. BP, why out of nowhere?
...On the 1st of February?...If we go past February the 1st and BP sill hasn't signed it, what does that tell you? There's a new exchange rate and they're waiting for it. If the new exchange rate comes out before February 1st, yeah they'll sign!
Iraqi Parliament moves toward agreement on key budget amendment, 30 JAN
Iraqi Parliament moves toward agreement on key budget amendment
Following a meeting on Wednesday with the heads of parliamentary factions, Vian Sabri, head of the Kurdistan Democratic Party (KDP) faction, confirmed that lawmakers had reached an understanding to support the amendment.
24 minutes ago
IraqIraqi Parliament budget lawMohammed Shia al-SudaniVian Sabri
ERBIL (Kurdistan24) – In a significant step toward economic stability, Iraqi Prime Minister Mohammed Shia al-Sudani has successfully secured parliamentary consensus to advance a crucial budget amendment aimed at resuming oil exports from the Kurdistan Region.
Following a meeting on Wednesday with the heads of parliamentary factions, Vian Sabri, head of the Kurdistan Democratic Party (KDP) faction, confirmed that lawmakers had reached an understanding to support the amendment.
“The prime minister emphasized the urgent need to restore oil exports to mitigate economic damage, urging all parties to collaborate in passing the government-backed bill,” Sabri told Kurdistan24.
With broad agreement among Kurdish, Sunni, and Shiite factions, approximately 200 MPs are expected to vote in favor of the amendment on Sunday, marking a potential breakthrough in Iraq’s energy and economic sectors.
DINARLAND HIGHLIGHTS CC NOTES,, 30 JAN
DINARLAND HIGHLIGHTS CC NOTES
Highlights
Summary
The video presents a series of updates from various financial analysts and gurus regarding the Iraqi Dinar and the broader implications of currency valuation and economic stability in Iraq and beyond. Guru Fuu emphasizes the potential benefits of starting with a high currency rate for Iraq, suggesting that this would enable the country to manage debts more effectively and stabilize its economy over time.
Mark Z highlights the ongoing political struggle in Iraq concerning the 2025 budget and the unusual international pressure from the U.S. to finalize it. Meanwhile, Sandy Ingram discusses the U.S. stance on the Vietnamese Dong, pointing out that, despite being labeled a currency manipulator, Vietnam has experienced significant economic growth.
Frank 26 raises concerns about potential financial exploitation of Dinar holders. Lastly, the discussion touches on the U.S. economic framework under Trump, with hints at a shift towards gold as a financial tool, while Mark Z comments on Iraq’s financial stability bolstered by substantial reserves of dollars and gold.
The overall narrative indicates a complex interplay of local and international economic factors affecting the value of currencies and the financial strategies of nations.
- 💰 High Starting Rate for Dinar: Guru Fuu advocates for Iraq to set a high initial rate for its currency to facilitate debt repayment and stabilize the economy.
- 📊 Political Pressure on Iraq’s Budget: Mark Z discusses significant pressure, particularly from the U.S., on Iraq to finalize its 2025 budget amid ongoing political tensions.
- 🌍 Vietnam Dong and Economic Growth : Sandy Ingram highlights Vietnam’s economic success despite being labeled a currency manipulator, suggesting advantages to a lower currency value.
- 🤑 Potential Financial Exploitation of Dinar Holders: Frank 26 warns that Dinar holders may face financial solicitations from acquaintances following a currency revaluation.
- ⚖️ Shift Towards Gold in U.S. Economic Policy: The video mentions Trump’s indication of a potential shift toward utilizing gold rather than paper currency, signaling changes in economic strategy.
- 📈 Iraq’s Financial Stability: Mark Z notes Iraq’s strong financial position, backed by substantial reserves of both dollars and gold, which may influence future currency valuations.
- 🔒 No Crisis in Iraq’s Financial System: Militia Man reports assurances from Iraqi officials that there is no current financial crisis, citing controlled inflation and stable currency management.
Key Insights
💡 Economic Strategy of High Initial Currency Valuation: Guru Fuu’s suggestion for Iraq to start with a high currency rate can be seen as a strategic move to attract investments and facilitate immediate economic stabilization. By establishing a strong currency, Iraq could better manage its debts and fund necessary infrastructure projects. This approach can potentially mitigate inflation and provide a buffer against future economic shocks, allowing for a more resilient financial environment.
🔍 International Pressure on Domestic Policy: Mark Z’s commentary on the pressure from the U.S. regarding Iraq’s budget highlights the significant role that international relations and diplomacy play in domestic economic policies. The urgency surrounding the 2025 budget reflects a growing concern about Iraq’s fiscal health and the need for transparency and accountability, which may influence investor confidence and economic stability.
📉 Currency Manipulation and Economic Growth: Sandy Ingram’s analysis of Vietnam’s currency manipulation illustrates a paradox in international trade. While a low currency value can make exports cheaper and support economic growth, it also draws scrutiny and potential backlash from trading partners. This dynamic reveals the complexities nations face in balancing competitive advantages with the need for fair trade practices.
🚨 Awareness of Financial Vulnerabilities: Frank 26’s warning about acquaintances seeking financial assistance from Dinar holders post-revaluation underscores the social and psychological impacts of sudden wealth. This highlights the importance of financial literacy and preparedness among investors, as sudden changes in wealth can lead to exploitation and financial mismanagement if individuals are not adequately informed.
🪙 The Role of Gold in Economic Policy: The discussion about Trump’s inclination towards gold signifies a potential shift in how economies might operate in the future. A greater reliance on gold could provide a more stable financial foundation, particularly in times of economic uncertainty, as it serves as a hedge against inflation and currency devaluation. This trend could reshape how countries approach monetary policy and international trade.
💳 Iraq’s Financial Resilience: Mark Z’s emphasis on Iraq’s financial stability due to its reserves of dollars and gold reflects a pivotal aspect of economic strength. Having a robust reserve allows Iraq to maintain confidence in its currency, making it less susceptible to external shocks and more attractive to investors. This stability can foster a conducive environment for economic growth and development.
📊 Confidence in Currency Management: The assertion by Iraqi officials that there is no current crisis in their financial system, as noted by Militia Man, speaks to effective governance and monetary policy. Maintaining low inflation and controlled currency management can enhance public trust and investor confidence, which are crucial for long-term economic sustainability. It suggests that Iraq might be on the right path toward achieving a stable economic future.
In conclusion, the discussions surrounding the Iraqi Dinar and the broader economic implications provide valuable insights into the complexities of currency valuation, the influence of international relations, and the strategic maneuvers that nations undertake to secure financial stability and growth. Through careful management and informed policy decisions, countries can navigate the intricacies of the global economy while safeguarding the interests of their citizens and investors.
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