Oil exports from the Kurdistan Region are expected to resume through the Iraq-Turkey pipeline next week, as the federal budget law amendment,
clearing the way for Kurdistan’s oil exports, is set to be published in Iraq’s official gazette and take effect immediately, Sabah Subhi,
an Iraqi lawmaker from the Oil and Gas Committee, confirmed to Zoom News.
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Oil exports from the Kurdistan Region are expected to resume through the Iraq-Turkey pipeline next week, as the federal budget law amendment, clearing the way for Kurdistan’s oil exports, is set to be published in Iraq’s official gazette and take effect immediately, Sabah Subhi,
THE DILEMMA OF LINKING BAGHDAD TO TEHRAN: US SANCTIONS “WILL DESTROY IRAQ” BEFORE IRAN
The US administration’s stance towards Iraq in light of the sanctions imposed on Iran raises questions about the future of Iraqi-US relations, especially with the escalation of economic and political pressures.
Strategic affairs researcher Nabil Al-Azzawi told Baghdad Today that Iraq is striving to distance itself from the escalation between Washington and Tehran, but US President Donald Trump’s decisions may complicate the situation, especially with regard to the use of the dollar in Iraqi-Iranian financial transactions.
(RV tomorrow? Not possible! Stay tuned…This situation with Iran has to be worked out. I don’t know where in hell many of the intel gurus get their information from but I am here to tell you that this is not pretty for Iraq. What will Iraq do? Will they comply with the U.S. request and work to stop these dollars to Iran or will Rafidian bank go under severe US sanctions? How can anyone eve begin to think the US is going to sign-off on the RV with this situation? Yes, all you intel gurus out there. I am talking to you! ☹)
😊Please take a look at article titled “IN LIGHT OF THE LIQUIDITY CRISIS… WHY DOESN’T IRAQ RESORT TO PRINTING MORE CURRENCY?” I think we can all learn something from this news. Iraq is facing increasing challenges due to the scarcity of cash liquidity, which negatively affects the markets and daily financial transactions.
While some are looking for quick solutions to overcome this crisis, the option of printing more local currency remains controversial,
given the serious economic repercussions that may result from it. Yes, if they are not careful printing more money could and probably will cause inflation just like what the Biden administration did over his four years in office in the US. You can’t print your way out of a crisis.
You have to come up with real solutions and that take brains and leadership. But remember some of these remedies don’t happen overnight. They are a slow, staged implementation of a series of measures.
😊I get a kick out of articles like this one. Over the years we have seem so many like it. Seems Iraq keeps harping on the fact that so much of the monetary mass is outside the banking systems. See article titled “PRIME MINISTER’S ADVISOR PRESENTS MODEL TO ENHANCE LIBERATION OF MONETARY BLOC”
The Prime Minister’s Financial Advisor, Mazhar Mohammed Salih, presented a proposal today, Saturday, that contributes to mobilizing idle funds for development projects. Saleh told the Iraqi News Agency (INA):
“The presence of a large monetary bloc outside the banking system, which exceeds 85% of the total monetary issuance, constitutes a phenomenon with repercussions on the national economy.”
Yes, Iraq is caught in a dilemma. Let me tell you what this dilemma is.
Firstpoint is I need to tell you that a large chuck of this 85% of the total monetary mass is outside the country not in fact hoarded by Iraqi citizens in Iraq like the CBI thinks. The US government as well as other governments have a very large chuck of it in its reserves as so does other countries.
The other part is us investors. Yes, people like you and me. We account also for a very large chuck of this 85%.
So how can the CBI get these dinars to come roosting back home? They must get them from us. All the measures to retrieve them from inside Iraq is not going to work. Why? Because they don’t have them. Get it?
This brings me to my second point. The only way they will retrieve these dinars is to revalue their dinar and get back on the global trading platforms. The banks will not exchange large amounts of the dinar with us until the dinar is back on FOREX.
They must attract investors in their currency. They must trade the dinar again. This is only going to work if they increase its rate. Who the hell wants it at 1/6 of a penny?
But my third point is when they do, they will also have to reissue another currency to replace the three zero notes and this is called redenomination or conduct the Project to Delete the Zeros. Oh.. but we all knew this already didn’t we?
But, when they do issue these newer lower denominations, they will have their increased liquidity in the banks but only the banks will then use these older three zero notes. The common, everyday circulation will be the newer lower denominations (and fils).
So, for the questions of liquidity, by turning in these three zero notes will give them all the liquidity they need and finally release a very large chunk of this 85% of the total monetary mass that has been stashed in our closets in the U.S, Europe, Canada and etc. The banks will then have all the money they need for loans and business transactions. So why don’t they just do it then? In the “Bad News” section of today’s Newsletter (see above) you find out why. Yes, if you want to know what is holding up the revaluation, this is it. Pay attention to this bad news of today. Yes, it is Iran the trouble maker.
My fourth point is I have to stop and think, am I missing something here? Reading these constant streams of articles from Iraq on this subject matter of liquidity and the hoards and stashes of dinars, don’t they realize we have most of it and not the Iraqi citizens?
Since they keep trying different tactics to retrieve this currency from within Iraq without any real success as only partly successful. Maybe they need to stop and think who really holds the bulk of this bloc of currency outside the Iraqi banking system or any banking system for that matter. Just saying….. Yes, it is us. We await for them to come and get it from us…. lol…lol….lol.. 😊
One last note for today’s news. Are you praying? We all should be praying now more than ever. Keep Iraq, Israel and the Trump administration in your prayers. Please don’t get upset with what the Trump administration is planning for the middle east. It is a change in thinking and it is a different approach. They tried the old approach for so long already and so how much longer do people have to suffer. Why not try something different. Let’s all pray for the success of the Trump administration in turning this situation around and so finally they can release this currency of Iraq.
WORLD GOLD COUNCIL: IRAQ MOVES UP IN GLOBAL GOLD RESERVES RANKING – WORLD GOLD COUNCIL
Iraq has climbed one spot in the global ranking of countries with the largest gold reserves, reaching the 28th position out of 100 nations, according to the latest data from the World Gold Council.
The February report shows that Iraq advanced from 31st place globally and now ranks fourth in the Arab world, following Saudi Arabia, Lebanon, and Algeria.
Iraq increased its gold holdings to 162.7 metric tons, accounting for 12.7% of its total reserves, the data showed.
The United States remains the world’s largest holder of gold, with 8,133 metric tons, followed by Germany (3,351 tons), Italy (2,452 tons), and France (2,437 tons). At the bottom of the list, Trinidad and Tobago holds 1.9 tons.
😊Next let’s take a look at what recent annual event just occurred in Iraq. We can read about it in the article titled “BAGHDAD INTERNATIONAL FAIR: AN OPPORTUNITY FOR COMMERCIAL INTEGRATION WITH THE WORLD”. In the article it explains that the curtain fell on the 48th session of the Baghdad International Fair amidst a wide welcome from participants and visitors,
as the exhibition witnessed a great turnout from local and international companies that presented their latest technologies and products with the aim of finding a foothold in the Iraqi market.
If I were you I would take the time to read the entire article in the Articles Section of todays Newsletter. It is very informative how Iraq is still going about attracting investors. They are not going to give up to “Make Iraq Great Again”.
😊Next more bragging about Iraq’s large foreign reserves and how it is used to create stability in Iraq’s economy. The article is titled “FOREIGN RESERVES AND THE DOLLAR PRICE.. WHAT DO YOU KNOW ABOUT THEIR FUNCTIONS IN IRAQ?”
Experts in Iraqi economic affairs believe that the reserves of Mesopotamia and its investment portfolio, after the reserves recorded 106.7 billion dollars during the year 2024, are Iraq’s fortress and incubator in providing overall stability and protecting the national economy from external shocks that are
reflected in the Iraqi balance of payments, in addition to its role in stabilizing the general level of prices internally through intervention policies in the organized money market.
Iraq ranked third in the Arab world in terms of foreign exchange reserves for the year 2024, as this reserve is considered “very large” and “reassuring” because it represents 20-40% of the volume of the issued currency.
(Okay so let me correct what this article is saying. We have read in previous articles that the reserves reached as high as 120 billion so 106.7 billion is not do great news. It shows a drawdown of the reserves.
But still this number is very high and good news. Next, they already told us in previous reports that the reserves at 110 billion cover the volume of the issued currency and so why tell us today its only at 20-40% of the volume? I don’t get it? What changed or is the news just incorrect?)
QUASI SOVEREIGN WEALTH FUND:In this context, the financial advisor to the Iraqi Prime Minister, Mazhar Mohammed Salih, says that Iraq’s foreign reserves, their formation and management are considered a quasi-sovereign wealth fund (which is currently managed by a well-diversified investment portfolio in different currencies and short-term derivative investment instruments), and the aforementioned portfolio of reserves performs two basic functions at the same time.
😊Please take a look at article titled “IN LIGHT OF THE LIQUIDITY CRISIS… WHY DOESN’T IRAQ RESORT TO PRINTING MORE CURRENCY?”
I think we can all learn something from this news. Iraq is facing increasing challenges due to the scarcity of cash liquidity, which negatively affects the markets and daily financial transactions.
While some are looking for quick solutions to overcome this crisis, the option of printing more local currency remains controversial, given the serious economic repercussions that may result from it. Yes, if they are not careful printing more money could and probably will cause inflation just like what the Biden administration did over his four years in office in the US.
You can’t print your way out of a crisis. You have to come up with real solutions and that take brains and leadership. But remember some of these remedies don’t happen overnight. They are a slow, staged implementation of a series of measures.
