Thursday, February 20, 2025
, FRANK26: "ARTICLE 12-2C ...TO OPEN THE 2025 BUDGET" 20 FEB
KTFA
FRANK26: "ARTICLE 12-2C ...TO OPEN THE 2025 BUDGET".....F26
Issue No. (4814) of the Iraqi Gazette was published on 2/17/2025
- Law No. (1) of 2025 “Amending Personal Status Law No. (188) of 1959.”
- Law No. (2) of 2025 “Second Amendment to General Amnesty Law No. (27) of 2016”.
- Law No. (3) of 2025 “Cancelling the decisions of the (dissolved) Revolutionary Command Council and returning the properties to their owners.”
- Law No. (4) of 2025 “First Amendment to the Federal General Budget Law of the Republic of Iraq for the Fiscal Years (2023-2024-2025) No. (13) of 2023.”
- Regulation No. (3) of 2025 “The first amendment to the Civil Airports Wages System No. (6) of 2018 issued by Cabinet Resolution No. (67) of 2025.”
- Instructions No. (1) of 2025 “Implementing the Second Amendment Law to Amnesty Law No. (27) of 2016, effective from the date of voting on it in the Iraqi Council of Representatives on 1/21/2025.”
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UPDATE ABOUT THE MEASURES IMPLEMENTED BY USA TO RESTRICT THE FLOW OF US DOLLARS INTO IRAQ, 20 FEB
UPDATE ABOUT THE MEASURES IMPLEMENTED BY USA TO RESTRICT THE FLOW OF US DOLLARS INTO IRAQ
Highlights
- 💵 Strategic Economic Shift: The US’s limitation on dollar flow into Iraq is a calculated move to align its financial systems with international standards.
- 📈 Robust Cash Reserves: Iraq’s cash reserves exceed 100%, indicating a strong backing of the dinar compared to global standards.
- 💔 Historical Inflation Crisis: The comparison with Kuwait illustrates Iraq’s historical struggles with currency management and hyperinflation.
- 💡 Currency Redenomination: Proposed redenomination of the dinar could enhance currency management and public confidence.
- 🚫 Speculative Exchange Rates: The video debunks rumors of an unrealistically high exchange rate for the dinar, emphasizing the need for a unified monetary system.
- 🌍 International Economic Integration: Iraq is taking steps towards enhancing its international trade relations, particularly through oil exports.
- 🔄 Gradual Monetary Reforms: The CBI’s reforms are a gradual process aimed at eliminating discrepancies in exchange rates and stabilizing the economy.
Key Insights
🏦 Aligning with International Standards: The US’s move to restrict dollar flow into Iraq is seen as a strategic step to further integrate Iraq’s economy into the global market. This is crucial for attracting foreign investment and fostering economic stability. The CBI’s actions signal a commitment to modernizing the financial system, which is necessary for Iraq’s long-term growth and sustainability.
🔑 Significant Cash Reserves: The CBI’s announcement that Iraq’s cash reserves back more than 100% of its circulating dinar is a strong indicator of financial strength. This exceptional reserve level provides a solid foundation for potential economic reforms and increases confidence among investors and citizens alike, as it mitigates risks associated with currency devaluation.
📉 Lessons from Kuwait: The historical context surrounding Iraq’s financial challenges provides valuable lessons in currency management. Unlike Iraq, Kuwait adopted a conservative approach to its currency supply, ensuring stability even during economic downturns. This serves as a cautionary tale for Iraq as it navigates its own economic reforms and seeks to prevent a recurrence of past mistakes.
💳 Redenomination as a Reform Strategy: The potential redenomination of the Iraqi dinar is a significant proposal aimed at simplifying the financial system. By removing zeros from the currency, the CBI hopes to restore public trust and increase the currency’s value. However, this reform must be accompanied by stringent measures to ensure economic stability and prevent inflation from undermining the new currency.
🏷️ Debunking Exchange Rate Myths: The host addresses rampant speculation about the dinar’s exchange rate reaching $28, clarifying that such figures are unrealistic. This serves as a reminder for viewers to remain grounded in reality and rely on credible information regarding currency valuations. The goal is to maintain a single, recognized exchange rate to eliminate disparities that have plagued Iraq’s economy.
📊 Transitioning to International Markets: Iraq is poised for greater international integration, particularly through its oil exports. The establishment of direct relationships with international banks signifies a shift towards modern banking practices and enhances the country’s position in the global economy. This move could lead to increased foreign investments and a more stable economic environment.
⚖️ Managing the Black Market: One of the major challenges facing Iraq is the existence of a parallel black market for currency. Experts suggest that revaluing the dinar to a higher rate than the dollar could effectively eliminate this issue. However, the timing and strategy surrounding such a revaluation must be carefully managed to avoid destabilizing the economy and to ensure that the government can fulfill its financial obligations post-revaluation.
In conclusion, the video provides a comprehensive overview of the current state of Iraq’s economy, emphasizing the critical reforms needed to enhance its financial stability and international standing. The path forward is fraught with challenges, but with strategic planning and execution, Iraq can move toward a more stable and prosperous economic future.
US sanctions threaten Iraq's dollar supply, warns MP, 20 FEB
US sanctions threaten Iraq's dollar supply, warns MP
Shafaq News/ Potential US sanctions on local banks could tighten dollar supply, thereby increasing pressure on Iraq’s currency market amid lingering exchange rate volatility, a member of the Parliamentary Finance Committee warned on Wednesday.
Mustafa Al-Karawi told Shafaq News that restrictions from the US Treasury would reduce the number of banks allowed to participate in Iraq’s foreign currency auctions, fueling demand for dollars and threatening market stability.
“The Central Bank of Iraq (CBI) needs to adopt a genuine and effective system to regulate the market; otherwise, the dollar crisis and exchange rate fluctuations will continue indefinitely,” Al-Karawi noted, criticizing the government’s failure to establish a clear monetary policy capable of stabilizing the dinar’s value.
Concerns over new sanctions arose after reports surfaced this week that the US had blacklisted five Iraqi banks and restricted the use of electronic payment cards abroad. The CBI later denied the measures but acknowledged ongoing talks with Washington.
Over the past year, the US Treasury imposed penalties on several Iraqi lenders over concerns about dollar smuggling and illicit transfers. In response, the CBI barred the affected banks from participating in the currency auctions.
TIDBIT FROM MNT GOAT, 20 FEB
Mnt Goat
Article: “THE PRESIDENT OF THE REPUBLIC APPROVES THE AMENDMENT TO THE BUDGET LAW” This
was the main issues from the Kurdistan region in the monthly salary payments they were receiving for their share of the oil revenues...They wanted more in the budget and so now they have it...I want everyone to know that the passing of this bill is NOT the Oil and Gas Law and is NOT going to trigger the RV. you can now CLEARLY see that there has been massive corruption in Iraq and with the US keeping the Iraq dinar artificially suppressed..
. The new president Trump has a new policy towards Iraq and it is beginning to take form. This recent move of stopping the physical dollar CASH flow to Iraq is apparent...This was a huge move...
I was told many times already by my CBI contact that this crisis is at the heart of why the CBI can not set the in-country revaluation rate to what they need to conduct the Project to Delete the Zeros...
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