DINAR REVALUATION

Thursday, June 19, 2025

GINGER: I've been told that the last 58 of these trigger platforms are currently in "finishing mode"

Iraq faces growing economic strain due to Israel-Iran conflict

Shafaq News/ Iraq’s economy is already showing signs of strain as the Israel-Iran conflict enters its sixth day, despite the country’s non-involvement in the fighting, a leading economic expert told Shafaq News on Wednesday.

Dr. Nawar al-Saadi, a professor of international economics, told Shafaq News that Iraq’s geographic location, heavy reliance on oil, and integration into a sensitive regional network leave it vulnerable to the fallout of the escalating hostilities.

“So far, we’re seeing three immediate economic consequences,” al-Saadi explained. “First, the Iraqi dinar is weakening as the dollar exchange rate rises. This reflects fears that the conflict could spread, affecting oil exports or state revenues, which in turn fuels inflation through higher import costs.”

The second impact, he said, is market stagnation. “Uncertainty is freezing investment and commercial activity. Wars interrupt economic planning and scare off capital, especially when Iraq is seen as part of a high-risk geopolitical zone.”

According to al-Saadi, the increase in food prices is another impact, “Concerns over supply chain disruptions have already prompted speculative behavior and hoarding among traders. This poses a direct threat to Iraq’s food security, which is already fragile due to high import dependence.”

The professor warned that if the conflict intensifies or persists, the consequences could become “far more severe.”

“Iraq’s oil exports rely almost entirely on the Gulf, particularly the Strait of Hormuz. If that route is disrupted, even briefly, Iraq could lose billions in revenue and plunge into a financial crisis its oil-dependent budget cannot withstand.”

Al-Saadi also highlighted the risk of domestic instability, pointing out that the longer the war drags on, the greater the chance that regional power struggles will spill into Iraq. “If foreign interests or US assets are targeted, or southern cities become flashpoints, it could erode what’s left of Iraq’s economic stability.”

TIDBIT FROM MILITIAMAN

Militia Man

Article quote: "...representatives called...to ban cash payments within the government institutions...This means 80% of paper money will be transferred to cards...

These steps should be implemented increasingly to move cash out of homes and pockets and into banks. "

They're trying to and have been for quite a long time reducing the cash in circulation which is a good thing.

Chase Bank’s is showing fixed exchange rates of $40 per IQD and $2.51 per VND #iqd #iraq

IBBC appoints new Baghdad Office Manager

Ali Mashkour joins IBBC from member company MHD International. He is Iraqi British and has been based in Baghdad for the past ten years, working in projects across infrastructure, security, transport and government sectors, managing multi-disciplinary teams and engaging senior stakeholders across both public and private sectors.

In his new role, Ali will work in the Baghdad and Erbil offices, supporting members and the organisation's overall objectives and with our Honorary Member Representative Mohammed Alsaadi and our Honorary Representative for Kurdistan and the South of Iraq, Dr Ali Jawad.

Christophe Michels, MD of IBBC said:

"We are pleased to welcome Ali Mashkour to our team, knowing he has to fill the sad gap that Muhanad Khattab left when he died last month, we have every expectation Ali will bring us new energy and insights to the role, which is of increasing importance to IBBC as our Iraqi membership rapidly grows and are holding more events and conferences in the country."

Ali can be contacted at ali.mashkour@webuildiraq.org

EXCERPTS FROM MARKZ: The Iran rial is going to be in the first basket

Member: Mark, would you happen to have any updates on the Iranian rial?

MZ: No- But my gut feeling is the Iran rial is going to be in the first basket. They are in the same economic area as Iraq. They share oil fields. Ideally the Iranian currency will be close to what the Iraqi currency is going to be.

Member: Mark what currencies do you think will be in the first basket

Member: old list-

1. US

2. UK

3. Kuwait

4. Canada

5. Mexico

6. Russia

7. China

8. Venezuela

9. Iranian Rial

10. IRAQ

11. Indonesia Rupiah

12. Malaysia

13. Vietnamese

14. Brazil

15. Saudi Arabia

16. Qatar

17. United Arab Emirates

18. Turkey

19. Afghanistan possibly

20. India

21. Libya

22. Japan

23. Zimbabwe