Article: “DIGITAL CURRENCY IN IRAQ: CRISIS OF CONFIDENCE.. THE BIGGEST OBSTACLE” Article Quote:
"Al-Sudani’s advisor pointed out that “90% of the monetary mass is outside the banking system, so Iraqi society deals with paper money, and it is unreasonable to immediately switch to digital currency overnight,
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...a replacement of paper currency by a digital currency is not feasible at this time for Iraq but it will still be pushed in the future...this is a long-term project for Iraq and we will most likely be out of this investment and exchanged already by the time they do it...
Al-Sudani's Advisor Denies Any Sanctions On Rafidain Bank And Confirms Continued Gas Supplies From Iran
economy |12/03/2025 Mawazine News – Baghdad The Prime Minister's advisor for foreign relations, Farhad Alaa Al-Din, denied the existence of US sanctions on Rafidain Bank.
While noting that the American exception regarding importing gas from Iran continues, he confirmed that some factions have offered to join the Popular Mobilization Forces under conditions. Alaa al-Din said in a televised interview:
“Iraq is a country well-versed in managing foreign affairs and has a legacy in that,” noting that “the philosophy of Prime Minister Mohammed Shia al-Sudani regarding foreign relations is that the Iraqi interest comes first, and from here the country’s foreign policy is adopted.” He added that “the path of the state and government, through the Ministry of Foreign Affairs, works from the starting point of Iraq’s interest first.”
Regarding Iraq’s relationship with the United States, Alaa al-Din indicated that “we had excellent and distinguished relations with the previous American administration,” noting that “the new American administration came with a set of promises to American voters, and part of these promises are related to the foreign policy of the United States, including ending the so-called endless wars.”
He explained that “the American letter that we received does not contain the information circulating in the media,” noting that “US Representative Joe Wilson tweeted more than 200 tweets in 15 months and did not mention Iraq even once.”
He explained that “Joe Wilson attended a meeting with al-Sudani and was not He talked about Iraq before January 13, but after that date, he started tweeting about Iraq on a daily basis,” stressing that “the American authorities denied any connection to what Joe Wilson was talking about regarding Iraq.”
He pointed out that “the US Treasury denied any intention to punish Rafidain Bank, and that American companies are working to restructure Rafidain Bank and there is no intention to punish it,” noting that “the Prime Minister is busy and does not care about Joe Wilson’s tweets.”
He stressed that “Iraq has not been a priority for America since 2011,” stating:
“We are working to change the American view that Iraq is not part of the Iranian file.” Regarding the issue of armed factions, Alaa al-Din indicated that “the issue of factions is an internal discussion, not an external one,” stressing that “the dissolution of the factions is among the points of the supreme authority, Mr. Sistani, and the government program.”
He continued, “Some factions have offered to join the Popular Mobilization Forces with conditions,” warning against restricting the weapons of the factions by force, as this leads to a civil war. He stressed that “the discussion about the fate of the factions occurs every day.
” Regarding the fate of the kidnapped Zionist researcher, Elizabeth Tsurkov explained that "Tsurkov entered legally and is protected from the government's responsibility," noting that "Tsurkov's continued absence will cause future problems for Iraq."
He explained that "according to the government's information, Tsurkov is alive.
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Regarding the cancellation of the US waiver for importing energy from Iran, he indicated that "the cancellation of the waiver targeted the import of electricity, but the gas waiver continues," noting that "Turkey began importing gas from Turkmenistan via Iran after the implementation of US sanctions.
" Regarding the events in Syria, Alaa Al-Din said: "The events on the Syrian coast are not encouraging for Iraq to open up to the head of the Syrian administration, Ahmed Al-Sharaa," stressing that "ISIS obtained supplies and seized weapons in Syria, and Iraq is concerned about them."
He continued, "We have security cooperation channels with Syria."Regarding Iraq's relationship with China, he explained that "25% of Iraqi oil is purchased by China and we have a great interest in it," noting that "Iraq's relationship with China and Russia is commercial, not political.
" Regarding Iraq's relationship with Saudi Arabia, he indicated that "our relations with Saudi Arabia are at their best and there is no concern from Saudi Arabia about the development of Iraq's relationship with Qatar." He stressed that "Iraq is returning today to the Arab fold more than ever before," noting that "Iraq has transformed from an arena of conflict to an arena where countries meet."
He pointed out that "the path of development has transformed Iraq into an area where the interests of the countries of the region meet," stressing that "Iraq played a calming role between Iran and America, especially in Syria."
Regarding the presence of the international coalition in Iraq, he indicated that "nothing has changed with the agreement to end the international coalition in Iraq and we are awaiting the US administration's opinion on its presence," indicating that "the end of the international coalition will make Iraq determine the type of foreign forces it needs." https://www.mawazin.net/Details.aspx?jimare=260152
Nearly One Billion Shares Were Traded On The Iraqi Stock Exchange During Today's Session
Stock Exchange Economy News – Baghdad The Iraqi Stock Exchange traded nearly one billion shares today, Wednesday. The value of the shares, which numbered more than 954 thousand, amounted to 1.4 billion dinars. The market was able to conduct 738 transactions. https://economy-news.net/content.php?id=53338
“ BREAKING: Iraq releases over 1 trillion dinars to pay Kurdistan Region’s civil servant salaries for February!
Could this financial move signal stability or fuel inflation? #Iraq#Kurdistan#Economy#IQD#DinarRevaluation#FinanceNews”
The release of over one trillion dinars by the Iraqi Ministry of Finance to cover the Kurdistan Region’s civil servant salaries is a significant move, but its direct impact on an Iraqi dinar (IQD) revaluation depends on a range of factors beyond this single event.
Here’s how this action could potentially influence the IQD revaluation process:
1.Government Stability: Ensuring the timely payment of salaries to public servants can help maintain internal stability in the Kurdistan Region, which could foster a more unified and stable Iraq.
Stability is key to any revaluation process as it promotes investor confidence and economic growth. If this move helps reduce tensions between Baghdad and the KRG, it could be viewed positively by foreign investors and international financial institutions.
2.Budget Management and Economic Signals: The fact that the central government is able to release such a large amount of funds may signal financial strength or liquidity. ;
However, if this payout is seen as straining Iraq’s fiscal position or leading to excessive spending, it might delay or negatively affect any prospects of a revaluation. A balanced budget and responsible fiscal policy are typically prerequisites for a currency revaluation.
3.Currency Supply and Inflation: Releasing a large amount of money into the economy without corresponding production or economic activity can lead to inflationary pressures. If inflation rises, it could deter any immediate revaluation because a weaker dinar would lose purchasing power.
The Central Bank of Iraq would need to carefully manage the money supply to avoid inflation, which could complicate a revaluation strategy.
4.Oil Revenues and National Reserves: Iraq’s budget largely depends on oil revenues, and a consistent flow of oil income is key for the strength of the IQD. This move might highlight the importance of the Kurdistan Region’s oil revenue-sharing agreement with Baghdad, which is a crucial aspect in determining Iraq’s overall fiscal health. If oil revenues are strong and well-distributed, the IQD could gain support for a future revaluation.
5.Debt Obligations and External Perception: Paying civil servants on time boosts the government’s image domestically but may increase Iraq’s debt if the funds were borrowed. If this leads to higher debt without increased economic output, it might deter a revaluation, as debt instability can hurt a currency’s value. Conversely, efficient financial management and meeting obligations without new debt can build investor confidence.
In summary, while the release of funds for salaries is important for internal stability, its effect on a potential revaluation of the IQD will depend on broader economic factors such as inflation control, oil revenues, and overall fiscal health. The government will need to manage these factors carefully to ensure that the IQD can revalue without causing economic imbalances.
