Frank26
[Iraq boots-on-the-ground report]
FIREFLY: Television talking about how low inflation we have and it's due to policies put in place by the CBI .
FRANK: Another screaming factor of a new exchange rate. You can't have a low inflationary rate at a punished sanctioned rate. Everybody knows that.
Al-Sudani To US Diplomat: Iraq Will Take All Necessary Measures To Defend Its Sovereignty And Airspace.
Time: 2025/06/13 16:27:01 Read: 1,170 times {Political: Al Furat News} Prime Minister Mohammed Shia al-Sudani received today, Friday, the Chargé d'Affaires of the United States Embassy in Iraq, Stephen Fagin, and the Commander of the International Coalition Forces to Fight ISIS, General Kevin Leahy, following the dangerous developments resulting from the attack on the Islamic Republic of Iran.
Al-Sudani reiterated Iraq's firm and decisive position that the actions against Iran constitute a flagrant violation of international law and an act of aggression that undermines the rules of the international order and threatens regional and international security.
He emphasized that the timing of the attack, which came at a time when diplomatic efforts were still underway, not only undermines de-escalation efforts but also reveals a deliberate intent to escalate and drag the region into a wider confrontation, rather than prevent it.
The Prime Minister reiterated his categorical rejection of the use of Iraqi territory or airspace to carry out or facilitate any aggressive acts against any neighboring country, affirming Iraq's right and responsibility to protect its sovereignty and that the Iraqi government will take all legal measures to this end. He also called on all international parties to respect this principle.
Al-Sudani stressed the need for the international community, particularly the UN Security Council, to take responsible and direct steps to reaffirm the prohibition on the use of force and work to prevent the region from sliding into a cycle of uncontrolled violence.
For his part, the Chargé d'Affaires and Commander of the Coalition Forces affirmed the United States' stated position of not participating in the attack in any way, noting their country's commitment to not involving Iraq in the conflict, in accordance with the Strategic Framework Agreement signed between the two countries. LINK
Frank26
Notice even in the midst of all this military action with Iran next to you [Iraq],
Saleh who is in charge of the Iraqi finances comes out first thing this morning and tells you, 'We are secure and stable.' ;
What was it that we needed in order for you to have a new exchange rate with lower note currency?
...Security and stability...
Q: What effect will Israel's airstrikes on Iran have on any potential revaluation of the Iraqi dinar?
A: This week's Israeli airstrikes on Iran, targeting nuclear and military sites, will likely have a negative effect on any potential revaluation of the Iraqi Dinar, at least in the short term. Here's why:
Increased Regional Instability
The conflict between Israel and Iran is a major source of instability in the Middle East. Iraq, being a direct neighbour to Iran and having complex political and economic ties with both countries, is highly susceptible to the fallout from such tensions. Increased regional conflict generally leads to capital flight and a preference for safer currencies like the US dollar, which puts downward pressure on local currencies like the Iraqi Dinar .
Safe-Haven Demand for USD
As investors and even ordinary citizens become more apprehensive about the future, they tend to move their assets into more stable and liquid currencies. The US dollar is traditionally seen as a global safe-haven currency. This increased demand for USD in Iraq would further weaken the Dinar against the dollar in the parallel markets, making any revaluation less likely.
Impact on Oil Prices
While a spike in oil prices due to regional conflict might seem beneficial for an oil-dependent economy like Iraq's, the immediate effect on the Dinar is often outweighed by the increased instability. Furthermore, if the conflict were to escalate and impact shipping routes like the Strait of Hormuz, Iraq's oil export revenues could be severely affected, which would be detrimental to the Dinar.
Smuggling and Sanctions Concerns
Iraq has faced challenges with dollar smuggling to Iran, partly due to US sanctions on Iran. Escalated tensions and potential new sanctions could exacerbate these issues, further disrupting Iraq's financial system and the Dinar's stability.
Political and Economic Uncertainty in Iraq
The Iraqi Dinar's value is already influenced by a range of internal factors, including political stability, government spending, and efforts to control corruption. Regional conflicts add another layer of uncertainty, making it harder for the Central Bank of Iraq to manage the exchange rate and implement policies that could lead to a revaluation.
MarkZ
[via PDK]
Question: Is this attack on Iraq the start of the RV or a distraction?
MarkZ: Maybe it's both. We may be heading to a culmination here.
With this unrest gas and oil prices are about to go up…they may spike in the next day or two…which will mean a spike at the gas pumps...oil prices are in the low 70’s right now…an oil price spike would put Iraq well above the number they needed to revalue their currency.
IT BRINGS BENEFITS TO BOTH AMERICANS AND IRAQIS. WASHINGTON IS OPTIMISTIC ABOUT AL-ZAIDI BECOMING PRIME MINISTER: WE WANT A SOVEREIGN IRAQ...