Article Quote: "The Governor of the Central Bank, Ali Al-Alaq, said...there is frequent confusion between the position of the Central Bank, which is a completely different situation from the financial situation related to the financial policy in the country or the Ministry of Finance, indicating that
the Ministry of Finance's revenues are based in dollars through Iraqi oil sales in the global market. Al-Alaq stressed that the Central Bank deals in Iraqi dinars for all amounts it receives in dollars, and this is very available under any circumstances,
calling for distinction and separation between the financial situation at the level of the government and the Ministry of Finance, and the availability of cash at the Central Bank of Iraq."
Parliamentary Finance Committee Warns Of Sanctions Against Rafidain Bank: It Is Marred By Regulatory Concerns
Banks Economy News – Baghdad Deputy Chairman of the Finance Committee in the House of Representatives, Ikhlas al-Dulaimi, warned of the possibility of the US Treasury imposing sanctions on Rafidain Bank if it continues to implement procedures marred by regulatory concerns.
Al-Dulaimi said, in an interview monitored by Al-Eqtisad News, that "Rafidain Bank, like any private bank, is subject to the instructions and regulations of the US Treasury Department under an agreement with the Central Bank of Iraq and the international company charged with monitoring the work of banks in Iraq."
She added,
"The international company pointed out the existence of violations in the work of Rafidain Bank, which prompted the bank to contract with a foreign company to improve its performance and address these concerns."
Al-Dulaimi pointed out that "the bank's continued operation according to its previous procedures could lead to US sanctions being imposed on it, along with other private banks, if the recorded violations are not corrected."
On January 30, 2025, US Republican Representative Joe Wilson renewed his attacks on Iraq, but this time by demanding sanctions on the government-owned Rafidain Bank. https://economy-news.net/content.php?id=53438
I guess that strike in Yemen has scared Iraqi officials into speeding up the budget before EID. They realize there’s no more excuses to rely on to further postpone unless they are ironing out all the bureaucratic redtape that comes with resuming the oil exports with Kurdistan.
They are not even connected with Iranian electrical grid anymore. It’s been smooth sailing without any interruption since connecting with Saudi Arabia for their power. Now Iran wants retaliation. But I do not think they know they have already lost.
Donald Trump did not forget what he told Benjamin Netanyahu. And once things get going on that front we should see Iraq make their moves. Tuberville said on Fox News that D. Trump will activate the tariffs around April 1st. A level playing field. But
will currencies revalue before then?
How does this help Iraq revaluation?
The Houthis have been hammering shipping in the Red Sea over 80 attacks since late 2023, sinking ships, spiking insurance costs, and forcing reroutes around Africa. Iraq’s oil exports don’t directly rely on the Red Sea (most go through the Persian Gulf), but global trade disruptions jack up oil prices and destabilize markets.
Neutralizing the Houthis could calm these waters, lower shipping costs, and boost confidence in Middle East stability. For Iraq, a steadier oil market means more predictable revenue $90+ billion annually from 4.6 million barrels/day. That cash flow could back a stronger IQD revaluation pitch.
Which is something they definitely need to consider. All of this will help stability in Iraq economy. So you know this will not end well for Yemen. There will be air strikes all night. Because we need them out of the way. Because if they plan on opening the budget before April it would make sense off the heels of this Yemen attack. Especially given what Tommy Tuberville said about those Tariffs this week.
Money and Business Economy News – Baghdad The Prime Minister's financial advisor, Mazhar Mohammed Salih, confirmed on Sunday that Iraq's foreign exchange reserves are a safety net against economic fluctuations, noting that they are estimated at approximately $110 billion.
"Iraq's foreign exchange reserves are one of the most important indicators supporting investment, both domestic and foreign, as the country has a stable foreign exchange portfolio estimated at approximately $110 billion, distributed between gold, dollars, and foreign currencies," Saleh said in a statement to the official agency, followed by "Al-Eqtisad News."
He explained that "these reserves contribute to strengthening macroeconomic stability, both domestically and externally, making them a protective factor against global economic fluctuations and shocks. They also provide strong coverage for the monetary base and financial indicators related to trade and international debt maturing soon."
He added, "The current account of the balance of payments is recording positive rates that enhance the stability of the value of the Iraqi dinar, thus reducing the impact of fluctuations in global oil markets, given the nature of Iraq's rentier economy." He noted that "Iraq, as the fifth largest oil producer in the world, enjoys sustainable foreign financial flows, enabling it to quickly and efficiently support its cash reserves."
He stressed that "these strong reserves provide a stable investment environment, which contributes to accelerating the pace of investment and supporting the country's promising economic growth." https://economy-news.net/content.php?id=53450
In this video, the speaker presents a fast-paced summary regarding the current situation of the Iraqi dinar and various geopolitical developments involving Iraq. The speaker shares personal anecdotes about dog training, indicating a busy home life that also includes preparing for a live session at 5 PM.
Important points discussed include updates from Iraq about international agreements, currency exchange rates, changes in policies regarding visas for Americans, and the implications of a new payment system being utilized by Iraq’s Central Bank of Iraq (CBI).
The speaker also addresses common misconceptions regarding Iraq and its relationship with Iran, emphasizing that they are functioning as separate entities. Overall, the video balances informative content with a personal touch, providing updates while also engaging with the audience.
🐶 Personal anecdotes about the speaker’s experiences with dog training while managing a busy schedule.
🌍 Update on Iraq’s international relations, particularly with India and Turkey, focusing on alternative gas sourcing beyond Iran.
💱 Discussion on the Iraqi dinar’s current exchange rate at 1310 and implications for international Forex markets.
✈️ Announcement of new policies allowing American citizens to travel to Iraq without a visa, signifying increased openness for investors.
📈 Insights into Iraq’s economic reforms, particularly the increased focus on non-oil revenues.
🔍 Introduction of a new payment system by the CBI that improves transaction security and prevents illicit money flow.
📅 Encouragement for audience engagement in a live session to discuss the unfolding developments and foster a sense of community belief in progress.
Key Insights
🤔 Understanding the CBI’s Decision-Making: The Central Bank of Iraq has stayed quiet about notable changes but operates under a new system designed to enhance transaction security. This new system can catch financial discrepancies before they escalate, which contrasts sharply with older systems that allowed for more oversight and potential manipulation, particularly by Iran. The shift suggests a proactive approach by the CBI to strengthen Iraq’s economy and its appeal to foreign investors.
📊 The Importance of Currency Exchange Rates: With the exchange rate currently set at 1310, many analysts believe that if Iraq were to enter the international Forex market at this rate, it would risk destabilizing its economy further. Speculation surrounds the need for this exchange rate to be adjusted for the Iraqi dinar to be competitive and functional in the global market. Adjustments to this rate could signify a major turning point for Iraq’s economic landscape.
🌐 Geopolitical Distinctions Between Iraq and Iran: The speaker underscores that Iraq and Iran are fundamentally different in how they operate economically and politically. While much discourse surrounds Iran’s sanctions impacting its economy, Iraq has reportedly developed alternative trade agreements and energy sources, notably with Turkey and India. This distinction is crucial for understanding regional dynamics and Iraq’s capabilities moving forward.
💼 Encouraging Foreign Investment: The implementation of visa-free entry for US citizens is a significant move by Iraq, aimed at encouraging investment and tourism. By easing restrictions, Iraq appears to be preparing for an influx of foreign capital, which is vital for its economic recovery and growth. This policy reflects a broader strategy to rehabilitate Iraq’s global image and attract businesses eager to capitalize on emerging markets.
📈 Rising Non-Oil Revenue: The ongoing focus by Iraq’s finance minister on increasing non-oil revenues is essential for diversifying the economy and reducing dependence on oil exports. This move aligns with global trends where economies are urged to diversify in light of fluctuating oil prices and the transition toward sustainable energy. The increase in non-oil revenues may lay the groundwork for a more stable and resilient economy in the long run.
🛡️ The Role of AI in Financial Transactions: The integration of artificial intelligence into Iraq’s new payment system could revolutionize how transactions are monitored and managed. By addressing issues of fraud and money laundering proactively, this system can enhance investor confidence and streamline operations, making Iraq more appealing to both local and international businesses and potentially improving its credit standing.
❓ The Power of Community Belief: The speaker emphasizes the importance of community belief in achieving financial progress, suggesting that collective optimism can influence outcomes. This notion embodies the idea of manifestation, where shared faith and energy can push forward economic recovery efforts. It invites the audience to join together in belief and action, indicating that public perception can shape the reality of the Iraqi dinar’s future.
Through these insights, the speaker encapsulates the current state of Iraq with an engaging mixture of personal narrative and serious analysis, aiming to both inform and uplift the audience as they await significant changes in the economic landscape.