FIREFLY: it will come out $3.50 to $3.80 and probably be a managed float!! @DINARREVALUATION #iqd

 

Iraqi Customs Implements New Measures to Boost Trade, 4 APRIL

Iraqi Customs Implements New Measures to Boost Trade

Iraq's General Customs Authority has introduced new customs procedures aimed at enhancing trade efficiency, preventing smuggling, and supporting domestic industries.

Key Objectives:

• Implementing modern electronic systems to reduce delays and streamline processes.
• Strengthening anti-smuggling measures to protect markets from substandard goods.
• Ensuring fair trade regulations and compliance among all importers.
• Encouraging local manufacturing by regulating imports and supporting domestic production.

According to a statement from the GCA, economic and trade experts have welcomed these reforms, highlighting benefits such as:

• Reducing corruption and increasing transparency in customs transactions.
• Boosting state revenues, supporting development projects and public services.
• Protecting consumers from low-quality or illegal products that could harm the local economy.

(Source: General Customs Authority)

GOLDILOCKS: The Impact of Reciprocal Tariffs on Currency Revaluation, 4 APRIL

GOLDILOCKS: Chapter Summary: The Impact of Reciprocal Tariffs on Currency Revaluation

Introduction

In this chapter, we explore the recent developments surrounding the reciprocal tariffs enacted by the United States, which were formally introduced on a significant date dubbed Liberation Day.

 The speaker, identified as Freedom Fighter, emphasizes the importance of remaining informed about the RVGCR (Revaluation of Global Currency Reset). The overarching theme revolves around the phased approach to currency revaluation, asserting that this process is not instantaneous but rather gradual. 

This section underlines the significance of cultivating relationships with banking professionals during this transitional period, providing a framework for the reader to understand the shifts currently unfolding in the financial landscape.

• Main Topic: Introduction of reciprocal tariffs and their implications for currency revaluation and economic dynamics.
• Key Vocabulary: Reciprocal Tariffs, Currency Revaluation, RVGCR, Liberation Day.
• Significance: Understanding the relationship between tariffs, market reactions, and currency values during economic shifts.

The Initiation of the Currency Revaluation Process

The speaker underscores that the enactment of reciprocal tariffs represents the inception of a gradual revaluation process rather than a mere switch that instantly alters currency values. The rhetoric captures the urgency for investors and citizens to be prepared for shifts in currency dynamics.

• Key Points:
  • Liberation Day symbolizes the beginning of currency revaluation.
  • The tariffs are designed to foster economic adjustments globally, acting as a precursor to broader economic changes.
  • Markets are expected to experience volatility and changes in currency values in the upcoming 30 days as they react to the tariffs.

Market Impact and Immediate Reactions

The implications of the new tariffs have sparked immediate reactions in various markets. Stocks exhibited volatility, with a notable dip, while the US dollar started to show signs of softening in value.

• Market Response:
  • The introduction of the tariffs prompted jitters in stock values.
  • Observations suggest that the tariffs will exert downward pressure on the dollar’s value in the long term while simultaneously generating upward pressure on gold prices.
  • Economic forecasts highlight a period where currencies will recalibrate to find new balances, largely dependent on retaliation from affected countries.

Historical Context: Case Studies of Economic Tariffs

To illustrate the impact of tariffs, Freedom Fighter refers to historical cases such as the US-China trade war, which serves to highlight how tariffs have tangibly affected market dynamics and international trade relationships.

• Case Study Overview:
  • Tariffs impacted US farmers, particularly regarding exports like soybeans and tech products.
  • Other markets, such as those of Vietnam, have experienced a surge in exports due to shifting trade dynamics.
  • The ongoing tariff situation exemplifies a tit-for-tat policy where country-level tariff impositions lead to a domino effect in international trade.

Currency Dynamics and Future Predictions

The unfolding situation necessitates careful monitoring of how currencies respond to the new tariffs. The speaker stresses the importance of observing changes in currency movements and economic controls introduced by these tariffs.

• Future Implications:
  • There’s potential for a short-term strengthening of the US dollar due to decreased import demand but a simultaneous depreciation for trading partners.
  • Countries such as China and Indonesia may witness significant shifts in their currency values as they respond to new US tariffs.
  • Equilibrium efforts are anticipated as nations react to one another’s tariffs, creating a complex landscape of currency values.

The Importance of Relationship Building

As the tariffs reshape market dynamics, the speaker highlights the critical need for individual investors and consumers to develop strong relationships with their banking partners.

• Recommendations:
  • Establishing banking relationships is vital as the values of currencies realign.
  • Individuals are encouraged to stay vigilant and informed, ensuring they are ready to act when rates stabilize post-tariff adjustments.
  • Preparing a strategic plan and being grounded in reliable information are deemed essential in navigating this evolving economic landscape.

Conclusion: The Path Forward

This chapter elucidates the transformational phase triggered by the imposition of reciprocal tariffs and the resultant ripple effects throughout the global economy. It reiterates that the changes in currency values are not immediate but rather part of a gradual and systemic evolution over time. Remaining proactive, informed, and prepared is crucial for individuals keen on capitalizing on the impending shifts. The speaker emphasizes that “April showers bring May flowers,” suggesting that the currently turbulent period may yield fruitful outcomes in the future. Thus, while patience is essential, vigilance and preparation are equally critical for successfully navigating these forthcoming changes in the economic climate.

• Takeaways:
  • Understanding of gradual currency revaluation processes is vital for traders and investors.
  • The need for strategic planning and relationship-building is underscored for timely responses to market shifts.
  • Observing market reactions over the next 30 days is crucial for anticipating currency changes resulting from tariff implementations.

MZ: things are flowing!! @DINARREVALUATION #iraqidinarinvestor #iraqidinar

 

Iraqi foreign reserves rise to a historic level, 4 APRIL

 Iraqi foreign reserves rise to a historic level

 The Financial Advisor to the Prime Minister, Mazhar Mohammed Saleh, confirmed on Wednesday that the foreign reserve is at its historical highest levels in achieving balance and economic stability for the country, while pointing out that the reserves still cover more than 100% of the issued currency in circulation.

Saleh said in a press statement: “The decline in the Central Bank’s slight reserves, which is estimated at 1% of the country’s total foreign reserves, is related to two things: First, the high level of reinforcements of the Iraqi banking system in foreign exchange with their correspondents abroad for the purposes of trade financing and external transfer,

 which led to a significant decline in the dollar exchange rate in the parallel market against the dinar and the rise in the value of the dinar in that parallel market.”

He explained that “control over local liquidity levels has become high and at large and influential levels in the face of the increasing external value of the dinar, which still indicates the decline in the effectiveness of the parallel or secondary market in the country, as well as a very clear decline in growth rates in the general level of prices and very high price stability that the country has not witnessed before from high stability.”

He added that “the other matter depends on the degree of growth of the amounts in which public finances exchanged monthly oil revenues in foreign currency in dinars for the benefit of total spending (which is the basis of foreign reserve) and converting them into Iraqi dinars,” pointing out that “this is also related to the degree of discipline and control of public expenditures on the one hand, and thus slowing down the liquidation of the government foreign currency proceeds to domestic liquidity that can be spent on the other hand through the general budget.”

He pointed out that “taking into account the cautions of the volatility of the average prices of exported oil of $70 or less per barrel in the energy markets, which has occurred in recent months, which means that the consensus between the level of nutrition of the foreign balances reserve (by collecting them by cash issuance), which may have become at a less rapid pace and growth by public finances, and between external transfers in foreign exchange in the interest of financing private sector trade by the monetary authority, which is still at a relatively high frequency, which caused this shortcoming or slight decline in foreign reserves.”

Saleh added that “the foreign reserve is still at its highest historical levels in achieving economic balance and stability of the country, and that the function of foreign reserves remains to defend price stability, but it is also wise for the Central Bank of Iraq to monitor the current account movement of the balance of payments accurately to maintain the stability of foreign reserves and monitor their growth safely.”

He stressed that “these foreign reserves still cover more than 100% of the issued currency in circulation, and enjoy high trade efficiency of more than 15 months of import, in accordance with the three-month global standard,” adding that “the monetary authority is the only entity that manages the country’s monetary policy at the internal and external levels, and with a high consensus in terms of balance and transparency to achieve and maintain economic stability.”

https://alforatnews.iq/news/الاحتياطي-الأجنبي-العراقي-يرتفع-الى-مستوى-تاريخي

AJ : Devaluation Vs. Revaluation, 4 APRIL

 AJ 

Devaluation Vs. Revaluation

I’ve put together a detailed chart showing the monthly movements of the Iraqi Dinar (IQD) against the U.S. Dollar (USD) on the ICE exchange the largest FX exchange, spanning from 2005 to 2025.

This chart highlights the all-time high and low of the IQD, along with key moments of revaluation and devaluation. Let’s break it down and clear up some common misconceptions about how the IQD’s value moves against the USD. The Chart: Key Levels and Movements All-Time High and Low: The chart shows the IQD’s all-time high at 1,086 IQD per USD (equivalent to $0.000996 in USD) and its all-time low at 1,476 IQD per USD (equivalent to $0.000676 in USD). 

At the current price, 1,309 IQD equals $0.000776 in USD. Counterintuitive movement, It might seem strange at first, but a lower number of IQD per USD (e.g., 1,086) means the Dinar is stronger (a revaluation), while a higher number (e.g., 1,476) means the Dinar is weaker (a devaluation). 

Think of it like a scale: the closer the exchange rate gets to 0, the stronger the IQD is against the USD. Down Arrow (Revaluation): Around 2010, you’ll notice a sharp downward move on the chart frome the high 1476 IQD to 1,186 IQD. This indicates the IQD revalued higher against the USD, meaning it took fewer Dinars to buy a dollar...a sign of the IQD gaining value. Up Arrow (Devaluation): Fast forward to 2020, during the COVID-19 pandemic, and you’ll see a sharp upward spike (from 1,186 IQD to 1,450 IQD). This was a devaluation of the IQD, meaning it took more Dinars to buy a dollar.

Why? The crude oil market crashed...CME Futures for crude oil even traded below zero (yes, I couldn’t believe it either!). Since Iraq’s economy heavily relies on oil exports, this crash forced Iraq to devalue its currency to stabilize its economy. Why Did Iraq Devalue in 2020? Iraq’s economy is deeply tied to oil, which makes up over 90% of its export revenue When oil prices plummeted in 2020 due to the global lockdown and oversupply, Iraq faced a severe financial crisis.

Devaluing the Dinar made their oil exports cheaper in USD terms, helping to boost demand and bring in more foreign currency to stabilize their economy. 

However, this meant the IQD lost value for Iraqis, as imports (like food and goods) became more expensive. A Common Misconception: Revaluation vs. Devaluation in Times of Trouble Some people speculate that if Iraq faces economic trouble, it will revalue its currency ( make the IQD stronger).

But history shows the opposite. As seen in 2020, when Iraq was in crisis, they devalued the Dinar (moving from 1,186 to 1,450 IQD per USD). A revaluation would make their exports more expensive, which is the last thing a struggling oil-dependent economy needs. So, if someone tells you Iraq will revalue its currency because they’re in trouble, take it with a grain of salt. 

Based on past patterns, a devaluation is far more likely in such scenarios. Current State and What to Watch As of April 2, 2025, the IQD is at 1,309 per USD ($0.000776). 

It’s weaker than its all-time high but stronger than its 2020 low. Iraq’s economy is still heavily tied to oil prices, so keep an eye on global oil markets and Iraq’s efforts to diversify its economy will also play a role in the IQD’s future value Non-Oil-Revenues. Converting Recent Amounts 1,086 IQD (the all-time high) = $0.000996 USD 1,476 IQD (the all-time low) = $0.000676 USD 1,309 IQD (current rate) = $0.000776 USD If you’re holding Dinar or following its value, understanding these dynamics is key. Let me know if that helped you understand currency markets betterAJ

9:28 PM · Apr 2, 2025

ARIEL : The revaluation of the Iraqi Dinar is for the 'New Republic'! @DINARREVALUATION #iraqidinar