Iraqi President reaffirms Iraq’s role as regional stabilizer, 27 FEB

 Iraqi President reaffirms Iraq’s role as regional stabilizer

ERBIL, Kurdistan Region - Iraqi President Abdul Latif Rashid delivered a speech at the Erbil Forum 2025 on Wednesday, addressing the pressing political and security developments in the region and highlighting Iraq’s role as a regional stabilizer.

President Rashid stressed the need for “swift internal measures” to strengthen Iraq’s immunity to the “ongoing regional hostilities,” and called for continued “consultations with regional actors” to safeguard Iraq from the fallouts of the regional conflicts.

“Iraq will only be a factor of stability in the region, [promoting] friendship between peoples, and supporting the choices of peoples and nations aspiring to a free and dignified life,” Rashid said, emphasizing Iraq’s role as a stabilizing force in the region whose behaviour can be premised on diplomatic solutions and upholding the sovereignty of its neighbours. 

President Rashid also welcomed the recent political changes in neighbouring Syria, expressing hope that these changes align with the democratic aspirations of the Syrian people, regardless of “their nationalities, components, and sects.”

He asserted Iraq’s readiness “to support any effort that helps foster internal stability” in Syria and affirmed Baghdad’s keenness to establish friendly relations with the new leadership in Damascus based on “mutual respect and cooperation, and non-interference in internal affairs.”

At the same time, the Iraqi President cautioned against the persistent threat of terrorism, which continues to undermine the security and stability of Iraq and neighboring countries. He urged greater collaboration to address the threat, stressing that “unifying the political visions and efforts, and achieving national integration is essential to thwart any new aggressive plots that have come to seriously threaten the countries of the region, not just Iraq.”

On the relationship between Erbil and Baghdad, the Iraqi President called for “intensifying cooperation and coordination between the [Iraqi] federal government and the Kurdistan Regional Government in all fields.” He reiterated the need for full adherence to the provisions of the constitution “to establish the principles of social justice and equality” among the ethnic and religious constituents of Iraq and the Kurdistan Region to “protect our democratic system.”

Lastly, President Rashid condemned the “aggression” against the Palestinians in Gaza and the West Bank, reaffirming Iraq’s support for a cessation of violence, humanitarian relief, and the Palestinian people's right to self-determination and the establishment of an independent state.

AJ: The Rv , It’s a deliberate decision made by the CBI!!, 27 FEB

 AJ

Thank you all for being here.

I’ve made time in my busy schedule to share the truth about the Iraqi dinar because I want you to understand what’s real.

In my 20 years in finance, I’ve never seen anything like this level of brainwashing tied to an investment-like the Dinar Here’s what you need to know: The Central Bank of Iraq (CBI) is the entity that sets the exchange rate for the Iraqi currency.

The "RV" (revaluation) isn’t some spontaneous event triggered by some event inside of Iraq—that’s just clickbait -and they will always keep the ball moving to a new event lol... But reality is It’s a deliberate decision made by the CBI, the authority in charge.

Wake up! Don’t act like a kid who didn’t get what they wanted for Christmas just because you fell for the clickbait hype. The truth is, the clickbaiters sold you all lies, not reality. Keep your eye on who really controls the rate - The CBI- not the noise.

AJ: The Rv , It’s a deliberate decision made by the CBI!! @DINARREVALUATION #iraqidinarinvestor

 

Iraqi PM seeks ‘new page’ with oil companies operating in Kurdistan, 27 FEB

 Iraqi PM seeks ‘new page’ with oil companies operating in Kurdistan

ERBIL, Kurdistan Region - Iraq’s Prime Minister Mohammed Shia’ al-Sudani said on Wednesday that Baghdad wants to open a “new page” with the international oil companies operating in the Kurdistan Region as the two-year suspension of Erbil’s oil exports appears to come to an end soon. 

The Iraqi government and the Kurdistan Regional Government (KRG) on Sunday struck an agreement with Baghdad to restart the Kurdistan Region's long-anticipated oil exports after the Iraqi government confirmed the completion of procedures. This came after the federal parliament approved an amendment to the budget law, increasing the fee of oil companies operating in the Kurdish region. 

“After passing the amendment to the budget law, we now look forward to completing the procedures for exporting crude oil to the port of Ceyhan and opening a new page with companies operating in the region, which contributes to building the Iraqi economy and doing justice to citizens in the Kurdistan region by ensuring they receive all their rights in terms of salaries and entitlements,” Sudani said in a video message directed to Erbil Forum in Erbil on Wednesday.

The three-day event is organized by Rudaw Media Network. 

Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline were suspended in March 2023 after a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin independent oil exports in 2014. 

Before the suspension, Erbil was exporting approximately 400,000 barrels of oil per day via the Iraq-Turkey pipeline, in addition to around 75,000 barrels of oil from Kirkuk.

Sudani also said that his cabinet has “worked to find sustainable solutions to what were called the outstanding issues between Baghdad and Erbil, and we have transformed them into future opportunities for cooperation and integration,” noting that they have “managed to remove these issues from their political framework to their legal context.”

Sudani emphasized Iraq's commitment to expanding economic partnerships and leveraging international expertise to strengthen the national economy. 

"Iraq's openness at both regional and international levels is part of our ongoing approach," he stated, highlighting that cooperation is not confined to any single entity but extends to all global partners. 

As part of this strategy, Sudani underscored the importance of the Development Road project, designed to serve as an economic, cultural, and social bridge linking Asia to Europe, facilitating trade and sustainable development.

The Development Road project is being advertised as something that will reshape Iraq’s economy, but it has been a source of friction between Baghdad and the KRG, which has been unhappy that no Kurdistan Region highways or rail links are included in the main corridor and is worried it will not benefit economically.

The project has Erbil’s “complete support,” Kurdistan Region President Nechirvan Barzani said in Baghdad on Saturday, despite objections that it bypasses the Kurdistan Region.

Sudani also touched on the developments in the Middle East, saying the region is going through “major transformations unlike any we have witnessed in decades.”

He added that Gaza and Lebanon, which have been devastated by Israel’s war with pro-Iran armed groups, “have experienced a harsh war waged by the occupation forces of the usurping entity, targeting all aspects of life.”

Iraq has been a staunch supporter of Gaza and Lebanon but has tried to avoid being dragged into the conflict. 

“We have worked hard to spare Iraq from the fire of this war, in addition to being keen to support our brothers in Lebanon and Palestine with aid and advocacy in all forums we attended, calling for the necessity of ending the war,” Sudani said.

He noted that Iraq also is in favor of restoring security and stability in neighboring Syria, adding that they believe in the “unity of destiny and the necessity of strengthening Arab and regional solidarity.”

Awake-in-3D: Zimbabwe Gold ZiG Collapse, Lessons on How Not to Launch a Gold-Backed Currency, 27 FEB

 Awake-in-3D: Zimbabwe Gold ZiG Collapse, Lessons on How Not to Launch a Gold-Backed Currency

Zimbabwe Gold ZiG Collapse: Lessons on How Not to Launch a Gold-Backed Currency

Awake-In-3D
February 26, 2025

Zimbabwe’s gold-backed currency was supposed to bring stability, but mismanagement led to its rapid decline. A gold-backed currency can work, but only if implemented correctly.

The Zimbabwe Gold ZiG was introduced as a gold-backed solution to the country’s currency instability, promising to restore confidence in Zimbabwe’s monetary system. However, less than a year after its launch, the currency has lost nearly half its value, inflation is rising, and the U.S. dollar remains the preferred medium of exchange.

The problem isn’t with gold backing itself—historically, such systems have provided stability—but rather with poor economic policies that have undermined its success. This article examines the key mistakes made with the Zimbabwe Gold ZiG and the crucial lessons other nations should learn before attempting to implement a similar system.

The Zimbabwe Gold ZiG Struggles to Maintain Value

Zimbabwe introduced the Zimbabwe Gold ZiG on April 8, 2024, with an initial exchange rate of 13.56 ZiG per U.S. dollar. Since its launch, the ZiG has experienced significant depreciation. Below is a summary of its exchange rate progression:

• April 8, 2024: 1 USD = 13.56 ZiG
• September 2024: The Reserve Bank of Zimbabwe devalued the Zimbabwe Gold ZiG by approximately 42.55%, adjusting the official exchange rate to around 24.4 ZiG per U.S. dollar.
• October 12, 2024: Reports indicated that on the parallel market, the U.S. dollar was trading at nearly 28 ZiG.
• February 26, 2025: The official exchange rate stood at approximately 26.5012 ZiG per U.S. dollar.

This trajectory highlights the challenges the Zimbabwe Gold ZiG has struggled with in maintaining its value against the U.S. dollar since its inception.

However, less than a year after its launch, the Zimbabwe Gold ZiG lost nearly half its value, inflation soared, and Zimbabweans continued to prefer the U.S. dollar over their own national currency. The problem is not with gold backing itself—historically, gold-backed systems provided monetary stability—but rather with poor government policies and mismanagement that undermined the ZiG’s success.

This article examines what went wrong with the Zimbabwe Gold ZiG and the key lessons other nations should learn before attempting to implement a similar system.

A Gold-Backed Currency Is Only as Strong as Its Convertibility

One of the core principles of a successful gold-backed currency is that it must allow free and transparent conversion into gold. Zimbabwe’s Reserve Bank claimed the Zimbabwe Gold ZiG was backed by gold reserves, yet ordinary citizens and businesses could not directly exchange their ZiG for gold at will.

• Lesson Learned: A gold-backed currency must have clear and enforceable redemption policies that allow holders to convert their money into physical gold or other tangible assets on demand. Otherwise, the “gold backing” is just a theoretical concept that fails to build trust.

Partial Backing Defeats the Purpose

A truly stable gold-backed system requires that the total money supply has full gold reserve backing or a basket of tangible assets. However, in Zimbabwe’s case, the actual gold reserves were insufficient to fully support the volume of Zimbabwe Gold ZiG in circulation.

This led to a situation where the central bank continued printing ZiG beyond what gold reserves could support, weakening its purchasing power and causing black market exchange rates to diverge significantly from the official rate.

• Lesson Learned: A government cannot simply declare a currency “gold-backed” while still engaging in inflationary monetary policies. Strict money supply discipline is required, ensuring that every unit of currency in circulation is genuinely supported by hard assets.

Government Intervention and Exchange Rate Controls Undermine Trust

Rather than allowing the market to determine the value of the Zimbabwe Gold ZiG, Zimbabwe’s government fixed an official exchange rate that quickly disconnected from reality. As a result, a black market developed where ZiG traded at a much lower value than the government’s official rate.

This eroded trust in the currency even further, as businesses and individuals realized that their ZiG holdings were worth far less in practice than on paper.

• Lesson Learned: A gold-backed currency must operate within a free-market system where exchange rates reflect real supply and demand. Government-imposed exchange rates distort the market and drive people toward alternative currencies, such as the U.S. dollar or cryptocurrencies.

Economic Stability Must Come First

A gold-backed currency cannot function properly in an environment of economic mismanagement, inflation, and policy uncertainty. Despite the introduction of the Zimbabwe Gold ZiG, Zimbabwe’s annual inflation rate soared to 14.6% in January 2025, up from 2.5% just a month earlier.

Additionally, high borrowing costs, a weak business environment, and a lack of fiscal discipline continued to undermine confidence in the national economy. A gold-backed currency alone cannot fix a broken financial system.

• Lesson Learned: Before implementing a gold-backed currency, a government must establish macroeconomic stability, control inflation, and ensure that businesses and consumers have confidence in the overall financial system. Otherwise, the currency is prone to failure regardless of its backing.

People Must Actually Use the Currency

Perhaps the most fundamental failure of the Zimbabwe Gold ZiG was its lack of adoption. Zimbabweans overwhelmingly preferred using the U.S. dollar—not because they opposed gold backing, but because they didn’t trust the government to manage the currency responsibly.

Many businesses and consumers avoided the Zimbabwe Gold ZiG altogether, choosing instead to trade in U.S. dollars on the informal market. This led to the rise of i*****l night markets, where prices were lower and transactions were conducted outside government oversight.

• Lesson Learned: A gold-backed currency must be the preferred medium of exchange in daily transactions. This requires trust in the government’s monetary policies, a stable and predictable exchange rate, and a regulatory environment that encourages currency adoption rather than pushing people toward alternatives.

The Bottom Line: A Blueprint for a Proper Gold-Backed System

The failure of the Zimbabwe Gold ZiG is not an indictment of gold-backed currencies themselves—rather, it is a lesson in how not to implement one. A properly managed gold-backed currency provides stability, controls inflation, and builds confidence—but only if the following conditions are met:

1. Full Convertibility – Citizens and businesses must be able to freely exchange their currency for gold or other hard assets.
2. Strict Monetary Discipline – The money supply must be strictly controlled to prevent excessive printing beyond gold reserves.
3. Market-Driven Exchange Rates – The currency must be allowed to float freely, without government-imposed rates that create black markets.
4. Macroeconomic Stability – Inflation must be controlled, and economic policies must support confidence in the financial system.
5. Widespread Adoption – People must trust and prefer using the currency over foreign alternatives.

For any country considering a return to a gold-backed system, Zimbabwe’s experience with the Zimbabwe Gold ZiG provides a critical warning: gold backing alone is not enough. Without competent economic management, fiscal responsibility, and public trust, even a gold-backed currency can fail.

A well-e******d gold standard requires transparency, discipline, and a commitment to free-market principles—things Zimbabwe’s government failed to provide. Other nations considering gold-backed currencies would do well to learn from these mistakes.

Frank26: RIght now WE ARE waiting for the new exchange rate! #iraqidinarinvestor #dinarrevaluation

 

REUTERS: TRUMP ADMINISTRATION GIVES IRAQ A CHOICE BETWEEN QUICKLY RESUMING KURDISH OIL EXPORTS OR FACING SANCTIONS, 27 FEB

REUTERS: TRUMP ADMINISTRATION GIVES IRAQ A CHOICE BETWEEN QUICKLY RESUMING KURDISH OIL EXPORTS OR FACING SANCTIONS

The United States of America threatened, today, Friday, February 21, 2025, the federal government in Iraq with sanctions if the Kurdistan Region’s oil exports are not resumed quickly.

Reuters quoted sources as saying: “The administration of President Donald Trump asked Iraq to resume (Kurdish) oil exports quickly or face sanctions alongside Iran.”

The sources added, according to Reuters, that “Washington believes that Kurdish oil sales may help reduce crude prices and compensate for the decline in Iranian supplies.”

Oil Minister Hayan Abdul Ghani revealed on Tuesday that Iraq had sent a delegation from the ministry to the Kurdistan Region to agree on a mechanism for delivering the region’s oil and exporting it through the Turkish port of Ceyhan.

The Minister of Oil explained that he had contacted the Minister of Natural Resources in the region, Kamal Mohammed Saleh, to negotiate with the delegation about the mechanism for receiving and exporting oil through the Turkish port of Ceyhan.

This came a day after Iraq accelerated the expected date for the resumption of oil exports from Kurdistan, as the federal oil minister said last Monday that oil exports from the Kurdistan region could resume within just a week. 

It is noteworthy that the President of the Region, Nechirvan Barzani, announced a few days ago that the resumption of shipments will likely take place next March.

Iraq exports between 400,000 and 500,000 barrels per day from fields in the north of the country, including the Kurdistan region, via the now-defunct Iraq-Turkey pipeline.

Oil Minister Hayan Abdul Ghani said earlier this month that at least 300,000 barrels per day of crude were planned to be moved once operations resumed.

In Iraqi Kurdistan, oil production ranges between about 280,000 and 300,000 barrels per day, and the regional government estimates its needs for domestic consumption – including power generation – at about 110,000 to 120,000 barrels per day.