Sunday, June 15, 2025
An economic expert told Al-Jarida Platform: The exchange rate is hostage to the political mood and regional shifts.
An economic expert told Al-Jarida Platform: The exchange rate is hostage to the political mood and regional shifts.
Economist Ahmed Hadhal spoke about the sensitivity of the dollar issue in Iraq and its direct impact on geopolitical and geoeconomic changes, emphasizing that the issue has become extremely complex internally and externally.
In an interview with Jarida Platform, Hathal stated that “since the end of 2022, and with the launch of the platform, the Central Bank has exhausted all monetary policy tools to address the gap between the parallel rate and the official rate. However, the problem is complex and does not only relate to the bank but also to the domestic market.” He explained that “60% of traders are still outside the platform, in addition to the lack of borders, which further complicates the crisis.”
He added that "the decline in the dollar's value coincided with the failure to approve the general budget and the instability of some foreign negotiations. The exchange rate is linked to economic, political, and media factors, and is a highly sensitive indicator of any crisis, statement, or event." He noted that "exchange rate fluctuations directly impact the purchasing power of citizens, merchants, companies, industrialists, importers, and even foreign investors."
Hedhal explained that "the loss of trust between society and the government is one of the most significant factors driving demand for the dollar as a more stable and valuable currency, especially given the lack of real production within Iraq.
Oil production constitutes more than 70% of the GDP, and the general budget constitutes 190% of this GDP. These indicators raise concerns among citizens and investors about the possibility of a decline in the value of the dinar."
He concluded by saying, "The exchange rate issue is linked to the psychological factors of citizens and investors, and there is a close relationship between behavioral economics and traditional economics, which makes currency stability necessitating addressing confidence in monetary and fiscal policies, ensuring their stability, and preventing sudden changes." link
DINAR EXCHANGE 🚨 Iraq’s $16 Trillion Resource Revelation!
DINAR EXCHANGE
Iraq’s $16 Trillion Resource Revelation!
PM Advisor Salih unveils Iraq’s vast mineral wealth, positioning it as the 9th richest globally. With plans to diversify the economy and reduce oil dependence, could this be the catalyst for the Iraqi Dinar’s revaluation? #Iraq #IQD #EconomicDiversification #DinarRevaluation #DinaresGurus
Iraq’s $16 Trillion Resource Revelation: A Catalyst for Dinar Revaluation?
Iraq’s Prime Minister’s Financial Advisor, Mazhar Mohammed Salih, recently announced that the nation’s natural resources are valued at over $16 trillion. This immense wealth, encompassing minerals like thorium, uranium, phosphate, sulfur, and lithium, positions Iraq as the ninth richest country globally in terms of natural resources.
The Iraqi government is actively pursuing economic diversification, aiming to reduce its heavy reliance on oil revenues. By developing the mining sector, which is expected to contribute at least 10% to Iraq’s GDP during its initial development phase, Iraq seeks to stabilize its economy and strengthen the Iraqi Dinar (IQD).
According to Basel III requirements, a nation’s currency should reflect its tangible assets. With Iraq’s vast untapped resources, there’s a compelling case for a revaluation of the IQD.
Iraq's trade with Iran is again confusing the dollar. Hantoush warns of a tight spot!
Iraq's trade with Iran is again confusing the dollar. Hantoush warns of a tight spot!
Economic expert Mustafa Hantoush confirmed that Iraq still has significant trade with Iran that is not covered by the official price, leading to continued pressure on the parallel market.
In a statement to Jarida Platform , Hantoush stated that “millions of travelers to Iran are also contributing to increased pressure on the parallel market. With the improvement of the Iranian currency thanks to negotiations with the United States and the reduction of remittances, this pressure has eased somewhat.”
He explained that “the Central Bank’s step to increase the limits on some cards has partially contributed to the solution, but the worsening situation and the return of remittances may push the parallel exchange rate up again.”
He added, "Iraq is now required to adopt new monetary policies to manage trade with Iran and passenger traffic. The solution may be through a tripartite account or a gold barter, as some countries in the region are doing, to extricate Iraq from this tight spot." link
TIDBIT FROM MNT GOAT
Mnt Goat
I try to bring you the progress of the monetary reforms, mostly following the plan to get back to FOREX...
This is a huge effort for Iraq as it is right in the middle of a very volatile area of the world right now...
Unfortunately, Iraq is a centuries old, major trading partner with Iran. So, I hope now you can see the uphill challenge facing Iraq when the U.S. wants to sanction Iran.
It is hard to do. This RV plan we watch is the Dr Shabibi’s plan from 2011. I am told the plan is still in effect and moving ahead...This to me was “WOW!” news.
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