CRYPTO TRADER: it would be prudent for such a huge investment deal to be signed post the revaluation

 

Economic experts warn of dire consequences as US eyes sanctions on Iraqi bank, 9 FEB

 Economic experts warn of dire consequences as US eyes sanctions on Iraqi bank

Shafaq News/ A call by US Republican Congressman Joe Wilson to impose sanctions on Iraq’s state-owned Rafidain Bank has sparked concerns among financial and banking experts over potential repercussions for the country’s banking sector.

Wilson claimed in a post on X on Jan. 30 that “under Biden and Brett McGurk, the US treasury allowed Rafidain Bank, the largest in Iraq, to become the money laundering machine for the Iranian regime and its puppets to obtain US$,” stressing that sanctions must be imposed on the bank, and that “Trump will fix it.”

Experts warn that such sanctions could lead to a shortage of US dollars in Iraq, push up exchange rates, and isolate the country from the global financial system. The worst-case scenario, they say, would be severe and comprehensive measures that could disrupt salary payments and development projects.

"If sanctions are imposed on Iraq’s banking system, the impact would be significant and far-reaching," said Nawar Al-Saadi, professor of international economics. "Iraq relies heavily on the US financial system for international transactions, including transfers and reserves held at the US Federal Reserve. Any restrictions could create a liquidity crisis, drive demand for dollars on the black market, and lead to a sharp depreciation of the Iraqi dinar."

Al-Saadi told Shafaq News Agency that sanctions targeting Rafidain Bank or other institutions handling foreign reserves would complicate financial transfers, affecting both foreign trade and remittances from Iraqis abroad. "This would harm the private sector, which depends on imports, forcing Iraqi businesses to seek costlier and less efficient alternatives, such as intermediaries or informal financial networks," he added.

Moreover, Al-Saadi highlighted potential political consequences because, according to him, the sanctions would strain US-Iraq relations and could push Baghdad to explore alternatives outside Washington’s influence, such as increased dealings with China or Russia. However, “shifting away from the Western financial system is neither easy nor swift, given Iraq’s deep economic ties with it," he said.

In a worst-case scenario, severe and comprehensive sanctions could trigger an economic crisis, making it difficult for the government to fund salaries and infrastructure projects, leading to higher unemployment and declining foreign investment, he warned. "This could escalate into broader security and political instability."

Al-Saadi suggested that partial or targeted sanctions could limit the impact but still send a message that Iraq must reassess its financial dealings, particularly regarding its ties with Iran. "Regardless of their scope, sanctions would compel Iraq to rethink its financial policies and consider reforms to reduce its dependence on US-controlled financial channels," he said.

Wilson has previously criticized the Biden administration for its handling of Iraq and Iran, arguing that Iraq continues to send $10 billion annually to Iran for oil and electricity purchases due to a US waiver. He called for the waiver’s revocation, asserting that Iraq should source energy from the Arab world instead.

EXCERPTS FROM MARKZ, 9 FEB

 EXCERPTS FROM MARKZ

MZ: I have had so many messages from bank personnel today that have told they are working tomorrow. These are lower level, mid level,

 teller level who have no idea what’s going on but have been called into work this weekend.  Could it have something to do with updates or a change in bank systems?

MZ: Or does it have something to do with the Fed migration? 

“ Preparing for the Fedwire migration to ISO20022 in March 2025” 

This is the full migration on the Us banking system to ISO20022 …maybe it has something to do with that? I don’t know. But it’s interesting that I got it from many bank sources.

MARKZ: THEY ARE TESTING THE DINAR ON FOREX! @DINARREVALUATION #iraqidinarinvestor

 

Iraq revives 35 wells in Kirkuk to boost output, 9 FEB

 Iraq revives 35 wells in Kirkuk to boost output

Shafaq News/ Iraq has resumed production from 35 oil wells in Kirkuk Province as part of an output enhancement campaign, a source at the North Oil Company (NOC) said on Saturday.

NOC Director General Amer Khalil Ahmed met with technical and engineering teams at the Sarlu and Sarbashakh stations—part of the Kirkuk oil field—to review production operations and the company's plan to increase output, the source told Shafaq News.

"The company’s engineering and technical teams launched a well reactivation and production enhancement campaign, successfully reviving 17 wells in Bai Hassan oil field, 7 in Kirkuk field, and one in Jambur field—wells that had been inactive for a long time. They also reactivated Kirkuk Well 361, perforated Kirkuk Well 344 in Sarbashakh, and are evaluating several other wells in the area," the source added.

NOC, according to our source, is reportedly set to work this week on Kirkuk Wells 234, 329, 328, 327, and 341 in the Sarlu and Sarbashakh, along with Bai Hassan Wells 49, 161, 164, and 184 in the Kathka and Dawood Karka areas, and Kirkuk Well 257 in the Shoraw area.

“The company's current production is approximately 330,000 barrels per day (bpd), with most allocated for refining, while around 10,000 bpd are exported to Jordan,” he affirmed. 

In January, the NOC launched field development projects to enhance production in its Kirkuk fields. Technical and engineering teams successfully restored 20 wells in the Jambur field that had been inactive for years, adding around 10,000 bpd to output.

TIDBIT FROM FRANK26, 9 FEB

  Frank26   

 [Iraq] has the potential to come out at a ridiculous exchange rate just like Kuwait did 30 years ago when they went through a re-denomination and a revaluation of their currency...about $15. 

 But it only lasted for about a week and it went back down to 3 to 1...IMO it was a window created for the whales and sharks to take advantage of...Iraq has learned from Kuwait mistakes. 

 If you come out at a high rate like that...you destroy everything you worked to create the security and stability of their currency.  And it would destroy their economy, GDP, economic reform, monetary reform. 

 Inflation would go up.  I don't think we're going to see a ridiculous rate at the onset.  But I think we'll see the same rate that is floating in the Middle East which holds the most powerful currencies in the world at 3 to 1 to the dollar.

FRANK26: The laws are in place to expose the new exchange rate in the 2025 budget! @DINARREVALUATION