THE DOLLAR DECLINES IN IRAQ.. STABILITY OR TEMPORARY CALM?, 27 FEB

 THE DOLLAR DECLINES IN IRAQ.. STABILITY OR TEMPORARY CALM?

 

Today, Tuesday, the local Iraqi markets witnessed a noticeable decline in the exchange rate of the dollar against the dinar, as the selling price fell to 149,750 dinars for every 100 dollars, while the buying price reached 147,750 dinars.

This decline comes after months of volatility, as the dollar exceeded the 150,000 dinar barrier for a long time, raising widespread concerns about its impact on prices and inflation in the country.

What are the reasons for the decline?

There are several factors that may be behind this decline, most notably:
✅ The measures of the Central Bank of Iraq aimed at controlling the exchange rate, by tightening control over dollar transfers and reducing reliance on the black market.
✅ Recent government moves to combat financial speculation and take steps to control the flow of dollars in official markets.
✅ Improvement in the flow of dollars through official channels, following agreements between Iraq and international financial institutions.

Will this decline continue?

Despite the current decline, the most important question remains: Will we witness real stability in exchange rates? Or is this decline merely a temporary decline due to immediate measures? Previous experiences indicate that the exchange rate is affected by many factors, including the political situation, cash flows, and US measures against banks accused of currency smuggling.

Implications for markets and prices

Any decline in the dollar price is expected to contribute to a decline in the prices of imported goods, especially food, medicine and electronics, but the question remains: Will this decline be reflected quickly in the markets? Or will traders continue to price according to previous prices to achieve greater profits?

Conclusion

The dollar breaking the 150,000 dinar barrier for the first time in months is a positive development, but it does not necessarily mean that the crisis is over. The matter remains subject to the ability of the government and the Central Bank to maintain this stability and prevent speculation that may return the dollar to its upward path again. Is this decline the beginning of an economic breakthrough, or just a temporary break before a new wave of increases?

TIDBIT FROM MNT GOAT, 27 FEB

 Mnt Goat 

 This process has to change and the dinar has to get off this sole de facto peg to the U.S. dollar. This is the solution! That is the only way out of this mess in Iraq.

 They must go to a “basket of currencies” of developed countries as the IMF and the World Bank recommended for Iraq way back in 2011. In 2012-2013, the then director of the CBI, Dr Shabibi was going to revert to this basket of currencies which would have allowed the dinar to be reinstated. 

Of course, his plan was first going to conduct the Project to Delete the Zeros.

FIREFLY: "There is a rate and they have, they just not ready to show it yet" @DINARREVALUATION #iqd

 

PARLIAMENTARY WEALTH REVEALS WHO IS RESPONSIBLE FOR SUSPENDING THE OIL AND GAS LAW, 27 FEB

PARLIAMENTARY WEALTH REVEALS WHO IS RESPONSIBLE FOR SUSPENDING THE OIL AND GAS LAW

Member of the Parliamentary Oil, Gas and Resources Committee, Basem Al-Gharibawi, revealed today, Sunday, who is responsible for obstructing the legislation of the Oil and Gas Law, stressing that the region’s failure to comply is delaying the legislation of the law.

Al-Gharibawi said in a statement to / Al-Maalouma / agency, that “the political dispute between Baghdad and Erbil is obstructing the legislation of the Oil and Gas Law.  

(Da….no kidding!!! 😊)

”He added that “passing the law is subject to political consensus,” noting that “some points need political understandings within the State Administration Coalition.”
He pointed out that “there is a real will among the political forces to legislate the law,” stressing that “Iraq’s oil is one and indivisible, whether in the Kurdistan Region, the center or the south.” 

STATUS OF THE RV . PART. 3 BY MNT GOAT, 27 FEB

 STATUS OF THE RV . PART. 3 

What new event then will they migrate to and use to keep the hype going?

I hope all my blog readers can realize what is going on with these budget tables and the misperception after misperception of the importance of these tables and how they are used. 

So, what the hell are these budget tables anyhow and why are they actually important to Iraq (not us investors)?

They are important because they represent how the money in the budget is to be distributed to the provinces for projects. 

This is where the projects are outlined and budgeted for. Why in hell would they have an RV rate in them? The cost of these budgets is based on the price of a barrel of oil. This is the money flow of revenues for Iraq.

 It still consists of 90% of their revenues. Yes, I do agree there are issues with still using this method of determining the budget funding since Iraq is now fully out of UN Chapter VII sanctions and it is time to change this process. What is taking them so long?

Yes, someday this process of how they determine the amount of money they can spend on the budget may change. 

But for now, Iraq still uses the oil revenues (price of oil) to determine it. Remember Steve Forbes and his presentation I showed you in a couple of my more recent Newsletters? What did he tell us?

Forbes told us if you want to focus on the health of an economy (inflation and employment) do not go to the price of oil, instead you must focus on the stability of the currency. It’s all about the currency.

 So, the entire idea of pegging the Iraqi dinar solely to the U.S. Dollar from oil sales is a major part of the problem with the stability of the Iraqi dinar.

 Forbes is very specific about not using the price of oil to determine you economic growth. Get it? Using oil as a gauge is now the problem not the solution for Iraq. Yes, it may have been a temporary solution for Iraq during the sanctioned time. But not any longer. Those days are over.

This process has to change and the dinar has to get off this sole de facto peg to the U.S. dollar. This is the solution!

That is the only way out of this mess in Iraq. Just look at the parallel market and this is a very good example as to why the dinar must get off this sole peg. 

They must go to a “basket of currencies” of developed countries as the IMF and the World Bank recommended for Iraq way back in 2011. In 2012-2013, the then director of the CBI, Dr Shabibi was going to revert to this basket of currencies which would have allowed the dinar to be reinstated. 

Of course, his plan was first going to conduct the Project to Delete the Zeros.

https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/

MNT GOAT: The solution is to get off the sole peg to dollar"!! @DINARREVALUATION #iraqidinarinvestor

 

GOVERNMENT ADVISOR: IRAQ ADVANCES 17 PLACES IN SOFT POWER INDEX , 27 FEB

 GOVERNMENT ADVISOR: IRAQ ADVANCES 17 PLACES IN SOFT POWER INDEX 

The Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Salih, announced on Saturday that Iraq has advanced 17 ranks in the Soft Power Index compared to 2023, thanks to improvements in governance and infrastructure development, stressing that this progress reflects a noticeable improvement in the stability of the country’s internal situation.

Saleh said in a statement reported by the official news agency, and reviewed by “Al-Eqtisad News”, that “Iraq’s occupation of the 98th position globally in the Soft Power Index for the year 2025 is an important matter in this leap during one transitional year between the end of 2023 and the end of 2024, and looking forward to 2025, as it comes 17 places ahead of its previous classification in 2023, which embodies the progress and stability witnessed by our country in a remarkable way, after it was ranked 116th globally in the year before the previous one.”

He added that “Iraq has achieved acceleration in the subject of soft power during one continuous year between 2023 and the end of 2024 and moving forward to 2025, and this acceleration comes from among a set of factors and indicators of soft power that are usually used by global institutions interested in measuring the extent of the state’s influence in its global scope through non-military means, such as culture, diplomacy, education, values, and innovation. ”

He explained that “one of the most prominent indicators used in the soft power rankings, which Iraq enjoyed in 2024, is its distinguished international reputation in the framework of foreign relations, as our country’s diplomatic capabilities in influencing global affairs and its international image are at their best levels, which have increased in recent years due to the flourishing of foreign activities and the network of positive relations with other countries provided by Iraq’s open democratic climate as one of the most important of these factors.”

He pointed out that “political and security stability in Iraq has witnessed a significant improvement, as internal tensions and conflicts that negatively affected the country’s image in the world have disappeared, which has helped enhance Iraq’s soft power.”

He pointed out that “the ability of the government program, which has advanced its applications in developing the infrastructure and continuous improvement in basic services, especially security and digital services, was accompanied by an advanced movement of institutional governance, as the efficiency and transparency of government institutions increased, with the approval of the 2024-2028 development plan, which committed to sustainable development and environmental protection, and providing high attractiveness for investment after announcing the principle of partnership between the state and the private sector within the philosophy of the social market, and announcing the strategic development road project as a project for Iraq’s progress forward.”

He added that “the high degree of interest in civilizational and cultural openness has made Baghdad the capital of tourism and culture in the world, which undoubtedly reflects the quality of life and the prevailing societal values ​​of the civilization of the Tigris and Euphrates Valley, which dates back more than 7,000 years, in addition to the keenness to highlight the role of national heritage in general and different ethnicities in particular, which had a positive impact on the strength of societal diversity and its transition from the national level to the external level.”

He added, “Diversifying the economy, sustainable development and moving away from the rentier economy remain among the challenges facing the rise of soft power. This is what the government program is working on with great care, supported by the prevailing trend in economic, social and political thought circles in Iraq on an ongoing basis through the process of national support for comprehensive economic development programs for the state and government, to build a better Iraq forever.”