The Rise In The Value Of The National Currency Has Local And International Causes

 The Rise In The Value Of The National Currency Has Local And International Causes

 
Economic 04/27/2025  Baghdad: Hussein Thaghab   The Iraqi dinar's exchange rate against the US dollar has witnessed a  significant improvement over the current period, supported by a number of internal and external factors.  

Most notably, the
 
     country's large financial reserves, the
     prudent monetary policies pursued by the Central Bank of Iraq, and
     signs of a thaw in US-Iranian relations have
 
combined to boost the value of the national currency.
 
Deputy Governor of the Central Bank of Iraq, Dr. Ammar Hamad, said that the
improvement in the Iraqi dinar's exchange rate against the dollar in local markets
is due to the central bank's recent policy. He added that
 
Financial Reserves
 
the country's massive financial reserves are one of the main reasons
behind the improvement in the value of the dinar against the dollar, and
 
we expect the dinar's value to continue to  improve in the coming period. He pointed out that
 
the Central Bank of Iraq is working to consolidate the national currency
by adopting policies that are consistent with Iraq's
 
     financial capabilities and the
     requirements of the national economy.
 
Dollar Flow
 
Dr. Nabil Al-Abadi said:
 
“The past few days have witnessed a significant improvement in the exchange rate of the dinar against the dollar,
which is the result of a combination of internal and external factors.
 
On the monetary policy side, the Central Bank has taken strict measures, including
 
     restricting the flow of dollars through auction platforms and
     imposing strict oversight on banks. It has also
     raised the interest rate on dinar deposits,
     which has stimulated the transfer of some cash liquidity.  

External Factors, such as the
 
     improvement in oil prices and the
     accompanying increase in foreign reserves,
 
have also contributed to this improvement.”  He added that
 
Stabilization
 
these measures, while effective in achieving short-term stability, remain subject to several risks.
 
The Iraqi economy's dependence on oil revenues makes it hostage to global market fluctuations.
 
Furthermore, some austerity measures, such as
import restrictions,
could negatively impact citizens' purchasing power
if they are not accompanied by policies that support local production. He stated that
 
Productive Sectors
 
ensuring the sustainability of this improvement requires structural reforms,
starting with
     diversifying the economic base and
     reducing dependence on oil, through
     developing productive sectors such as agriculture and industry.
 
This also requires
 
     a comprehensive overhaul of the banking system and
     simplifying customs procedures to boost non-oil exports, as well as
     enhancing investment confidence through stabilizing legislative policies. He stated that
 
improving the exchange rate is not an end in itself,
but rather must be a starting point for deeper economic reform.
 
International experience demonstrates that
sustainable monetary stability can only be achieved
through a productive economy capable of confronting external shocks.

Global Pressure
 
Financial expert Dr. Mustafa Akram emphasized that
 
while there is a reason for the
gap between the official exchange rate and the parallel exchange rate of the dinar against the dollar,
the gap has its causes. He pointed out that the
 
opening up between the United States and the Islamic Republic has eased global pressure on remittances to Iran,
 
     reducing demand for the dollar in local markets and
     strengthening the value of the national currency.
 
This coincides with ample supply from the Central Bank in the form of remittances and
other forms of financing, which necessitates strengthening this phase. He pointed out the
 
Electronic Card
 
importance of the Central Bank of Iraq taking action to
 
     reach an agreement with the United States and
     establish an official platform for transactions by
     creating an electronic payment card for use in Iran, Russia, and other sanctioned countries.
 
This would reduce demand for dollars, he noted, noting that
 
this would
 
     serve small traders and travelers,
     address many problems,
     reduce smuggling and illegal trade, and
     increase the value of the local currency.    
  
https://alsabaah.iq/113508-.html    

TIDBIT FROM WALKINGSTICK

 Walkingstick

  Sudani is saying IOO that they are 1,000% above the new exchange rate because they are asset backed...Iraq will not only be gold backed but silver, oil, rare elements, the list is endless...

It will be asset backed with more than just oil, more than just gold...Sudani is saying our foreign currency is suffice to cover the money that is in circulation, the 3 zero notes...

But soon a new exchange rate with purchasing power will cover the lower notes and the deficit in the budget..

Kerrie Ann Thornton: All Rates are on the Forex and fluxing in value!! @DINARREVALUATION #iraq

 

EBRD ENABLES EXPANSION INTO IRAQ

 EBRD ENABLES EXPANSION INTO IRAQ

(Nice! 😊 Could this also help in full accession to the WTO? Of course it will. What do you think? 😊 Just yet another event where we shake our heads and ask – where is the RV?)

The European Bank for Reconstruction and Development (EBRD) has amended its statutes, enabling it to expand operations into sub-Saharan Africa and Iraq.

According to a statement from the bank, this pivotal change redefines the Bank’s geographic remit and follows approval by its Board of Governors in 2023. The amendment will formally take effect in three months.

The move sets the stage for Iraq to become a full country of operation, alongside several sub-Saharan nations. Iraq, along with Benin, Côte d’Ivoire, and Nigeria, has already joined as a shareholder, while Senegal, Kenya, and Ghana are currently undergoing the membership process.

Full statement from the EBRD:

The shareholders of the European Bank for Reconstruction and Development (EBRD) have accepted an amendment to Article 1 of the Bank’s statutes, enabling the expansion of its operations to selected countries in sub-Saharan Africa and Iraq. Article 1 of the EBRD’s statutes defines the Bank’s purpose and its geographic remit for countries of operations.

The Board of Governors approved this expansion in 2023 and the threshold of shareholder approval required for the amendment to Article 1 has now been met. The amendment will enter into force in three months’ time.

The announcement comes as the EBRD gears up for its 34th Annual Meeting, which will take place at the Bank’s headquarters in Canary Wharf on 13-15 May 2025.

EBRD President Odile Renaud-Basso said: “The modification of our Article 1 statute is a pivotal step towards the Bank’s geographical expansion. It paves the way for our governors to grant recipient status to countries in sub-Saharan Africa and Iraq, which will enable us to start operations in our first countries in the region.”

The EBRD currently has 75 national shareholders, in addition to the European Unionand the European Investment Bank.

The Bank supports countries in transition by using a combination of investment, advisory work and policy reform, with a focus on developing the private sector and bringing about sustainable change.

TIDBIT FROM FRANK26

 Frank26  

 Article quote:  "The Governor of the Central Bank of Iraq told Asharq Al-Awsat: The project to remove zeros from the dinar is ongoing, but it requires withdrawing and replacing 100 trillion dinars from the market, and I do not expect it to be implemented this year." 

 Whoa dude, thank you!  That's a heck of a statement, self confession...This article is from a year ago.  What they were saying a year ago, 'no we're not lifting the three zeros right now, we're going to complete it next year', that's right now! 

  On top of that they're talking about 100 trillion dinars that are still out in circulation? 

 No it's less than that!  This article was sent out by the evil parliament to cause trouble so that the citizens say, 'oh no they're not going to lift the 3 zeros.  It's still another whole year!'  This is fantastic...ALAQ ADMITS 3 ZEROS LIFTING FROM THE EXCHANGE RATE!

MARKZ: Once we hit 30-40% of those historic bonds we are roughly 3-5 days of us going!! #iraqidinar

 

CENTRAL BANK: VISA AND MASTERCARD CARD ISSUE ABROAD TO BE RESOLVED NEXT MONTH : WITH COMMENTS OF MNT GOAT

 CENTRAL BANK: VISA AND MASTERCARD CARD ISSUE ABROAD TO BE RESOLVED NEXT MONTH

Central Bank Governor Ali Mohsen Al-Alaq announced on Saturday that the issue of Visa and MasterCard cards abroad will be resolved within the next month. Al-Alaq said in press statements, followed by “Al-Eqtisad News,” that “the Central Bank has completed the two tasks related to cash sales and foreign transfers, but the card crisis witnessed a state of “misunderstanding.” 

He explained, “When we headed to organize this process, it required a set of procedures that must be worked on, so that we put it in its correct direction and according to acceptable standards, and therefore there were some stops and some changes in the paths.”

Al-Alaq said, “An agreement was reached with all concerned parties – which include “Visa” and “MasterCard” in coordination with the Treasury, the Federal Reserve, and the auditing company – on “the formulas and paths for settling these cards,” stressing that “the Central Bank has taken rapid steps in this regard, expecting to complete this task within the next month, i.e. before the scheduled date for this process, which is June 1.”

Al-Alaq revealed that “work has begun on developing a plan to issue cards to small merchants, after completing consultations with companies,” “to accommodate the requests of merchants—a large segment of Iraqis—to cover their foreign trade without passing through long routes, so that transfers can be made directly, which will create a major shift in accommodating merchants who do not use formal transfer methods.”

(They are not using these cards with the “new” RV rate. If anyone tells you this they are crazy people. If these cards are used outside Iraq they use the same “official” rate of the CBI if they want to pay for goods in any other foreign country. It is the same if you use a charge card in Germany. The card will take your US. Dollar limit and convert it to Euros. Euros will pay the merchant. So let’s stop all this nonsense about these cards and having a new RV rate on them. This is so ridiculous it is so scary that anyone would even believe this crap, but these idiot intel gurus (like TNT Tony and Bruce. Are telling you this.) Yes, very sad with all the lies.)