ADAM STEPHENS: The Arab Nations want to announce multiple currency revaluations!! #iraqidinar #iraq

 

IRAQI FINANCE FIGURES SHOW A “SOFT RENTIER” ECONOMY. ARE THERE ALTERNATIVES?

IRAQI FINANCE FIGURES SHOW A “SOFT RENTIER” ECONOMY. ARE THERE ALTERNATIVES?

An Iraqi economist warned on Wednesday against the country’s continued reliance on a rentier economy, noting that it “creates a consumer society” and weakens the national production base. Mohammed al-Hasani told Shafaq News Agency, “A rentier economy is usually weak and produces a consumer society dominated by the import sector, with little interest in manufacturing industries. This is what applies to Iraq.”

Al-Hasani called on the Iraqi government to “work and strive to develop Iraq’s industrial production sectors and diverse agriculture in order to stimulate the country’s foreign trade sector and achieve the highest possible financial revenues that contribute to achieving the highest returns for the national income and the Iraqi state treasury.”

The Iraqi Ministry of Finance revealed that federal budget revenues from January to March 2025 exceeded 27 trillion dinars, with oil accounting for 91% of total revenues.

Tables issued by the Ministry of Finance in June for the first quarter of the year, monitored by Shafaq News Agency, showed that oil remains the primary source of revenue for the general budget, reinforcing the rentier nature of the Iraqi economy.

According to the ministry’s data, total revenues amounted to 27 trillion, 248 billion, 764 million, 196 thousand, and 554 dinars, while total expenditures amounted to 26 trillion, 662 billion, 428 million, 661 thousand, and 44 dinars.

Oil revenues alone amounted to 24 trillion, 911 billion, 906 million, and 926 thousand dinars, equivalent to 91% of total revenues, while non-oil revenues amounted to 2 trillion, 336 billion, 857 million, and 269 thousand dinars.

In March 2021, the Prime Minister’s advisor for financial affairs, Mazhar Mohammed Salih, explained to Shafaq News Agency that the reasons behind the Iraqi economy remaining rentier are due to the wars and economic blockades of the past decades, in addition to the current political conflicts that have squandered economic resources.

Saleh added that the country’s continued reliance on oil as its sole source of revenue makes Iraq vulnerable to global crises that impact oil prices, forcing the country to repeatedly resort to borrowing to cover its deficit. This reflects weak financial management and an inability to develop effective financing alternatives.

GROUP PAYOUTS AT REDEMPTION CENTERS: Dinar/Dong = double-digit USD , Notification Phase underway

 

IRON ORE EXTRACTION, SULFUR AND DRY GAS INVESTMENT…THE GOVERNMENT IS DISCUSSING TWO REQUESTS AND A CHINESE OFFER

IRON ORE EXTRACTION, SULFUR AND DRY GAS INVESTMENT…THE GOVERNMENT IS DISCUSSING TWO REQUESTS AND A CHINESE OFFER.

On Monday, June 16, 2025, the Iraqi Industrial Coordination Council discussed the industrial situation in Iraq and its needs during a meeting chaired by Prime Minister Mohammed Shia al-Sudani. The meeting was attended by representatives of several foreign companies. The meeting discussed an offer submitted by the Chinese company “Tsing Shan” to extract “iron dust.”

A statement from Al-Sudani’s office, a copy of which was received by Al-Jabal, stated that “Al-Sudani chaired a meeting of the Industrial Coordination Council on Monday, during which the industrial situation in Iraq, its most prominent needs, and the files on the agenda were discussed and reviewed. The meeting was attended by a number of ministers, advisors, businessmen, and representatives of local and foreign companies working in partnership with the private sector.”

The statement added, “The Prime Minister stressed the need to continue working to provide the legal and legislative foundations for expanding the base of various industries in Iraq, in a way that serves the escalation of the private industrial sector’s activity, as a partner in development, and the provision of job opportunities and goods to the Iraqi market.”

The statement continued, “The Council considered the topics on the agenda and took the necessary decisions and directives. The request of the Chinese company (Tsing Shan) was discussed, and its desire to work in the field of dry gas in the Basra Industrial City project, and the sulfur investment project in the Lazka/2 field, and its offer to extract iron dust. Directions were given to coordinate with the Ministry of Oil in this regard.”

The Council discussed, according to the statement, the issue of determining rental allowances for industrial projects established on agricultural lands, and forming a committee in this regard. It approved referring the issue to the Ministerial Council for the Economy. It also considered the possibility of amending Cabinet Resolution (24413 of 2024) regarding granting initial approvals for the establishment of facilities for industrial projects and equipping these projects with petroleum products from distribution outlets according to entitlement .

The statement noted that “the Council reviewed the relevant ministries’ completion of the digital transformation and the single window at the Industrial Development Directorate. It also approved the referral of the file on reducing the prices of liquefied natural gas supplied to industrial projects to the Ministerial Council for the Economy, and obligating government agencies providing services to create electronic links for industrial companies operating unnumbered sites to facilitate companies’ submission to the link.”

The statement concluded, “The Council discussed the Ministry of Education’s referral to print school textbooks, and the balance between the private and public sectors, in accordance with Cabinet Resolution No. 24402. The meeting also considered exempting industrial investment projects located outside the basic design of cities from the announcement requirement in Cabinet Resolution No. 245 of 2019.”

TIDBIT FROM SANDY INGRAM

 Sandy Ingram 

 Why is the IQD not globally traded?  First it's because of capital controls. 

 Iraq restricts the flow of its currency across borders. 

 Second, there's a lack of market confidence due to war, sanctions and  corruption. 

 The IQD isn't trusted as a stable investment by international markets.  Third we have sanctions and compliance issues. 

 Concerns over dollar leaks to sanctioned nations like Iran make most global banks wary of dealing in IQD.  Finally, there's no offshore clearing or liquidity.  There's no active IQD trading infrastructure abroad...

MNT GOAT: The time of the reset is nearing!! @DINARREVALUATION #iraqidinar #iqd

 

OIL RISES, THE DINAR FALLS, AND BAGHDAD FACES THE RAMIFICATIONS OF ISRAELI-IRANIAN MISSILES.

OIL RISES, THE DINAR FALLS, AND BAGHDAD FACES THE RAMIFICATIONS OF ISRAELI-IRANIAN MISSILES.

Although it is outside the immediate circle of conflict, Iraq appears to be in the eye of the storm. Its geographical location, its near-total dependence on oil, and the peg of its economy to the dollar exchange rate make it vulnerable to every geopolitical shock in the region.

 While Israel and Iran exchange airstrikes and inflammatory statements, the Iraqi market translates these fires into tangible crises: rising food prices, a volatile dollar, and fears of a slowdown in the flow of goods through ports and borders.

As Israeli airstrikes on Iran escalated, the Iraqi dinar began to slide. This decline is not merely a technical result of changes in the currency markets; it is an expression of general panic and deep concern about political and security repercussions that Iraq may not be able to contain. 

Dealing with the US dollar is no longer just an economic issue; it has also become highly politically sensitive, especially with the US Treasury Department’s strict oversight of transfer and financing mechanisms within Iraq.

On Friday, following the unprecedented Israeli airstrikes on Iranian facilities, oil prices jumped nearly 5%, while the Iraqi dinar fell dramatically against the dollar, exceeding 146,000 dinars to $100 in some local markets, its lowest level in months.

Meanwhile, global oil markets are experiencing significant turmoil, with JP Morgan warning that oil prices could rise to $120 per barrel if geopolitical tensions in the Middle East escalate further.

Global oil prices rose, with Brent crude closing at $74.23, up 4.87%, while US crude also closed at $72.98, up 4.94%.

The dinar is the first to be affected

“What’s happening in Tehran is directly felt in the markets of Rusafa and Karkh,” says Ahmed Eid, an economic researcher, referring to the close relationship between regional stability and the status of the local currency.

“The sudden rise in the dollar price reflects a real state of panic, not only about the developments in the conflict, but also about its potential financial repercussions, especially if the United States resorts to tightening controls on transfers from the US Federal Reserve or imposing new banking restrictions,” he added in an interview with Shafaq News.

Eid warns that the continued smuggling of dollars from Iraq to Iran is fueling monetary instability, saying, “The Iraqi economy is dependent on external balance. We don’t produce; we buy everything from abroad, and with every tremor in the region, we are the first to suffer.”

Black gold: a temporary gain or an impending disaster?

At first glance, high oil prices appear to be an opportunity to boost Iraq’s treasury, especially given that more than 90% of its budget relies on crude oil revenues. However, recurring threats to energy corridors, most notably the Strait of Hormuz, reveal the fragility of this “profit.”

 Every additional barrel sold today may not find a safe route tomorrow. Worse still, proposed alternatives, such as the Turkish Ceyhan pipeline, provide only partial coverage, amid ongoing logistical and political challenges.

“This short-term profit does not hide the real danger,” says economic expert Safwan Qusay.

“Any threat to the Strait of Hormuz would mean that more than 3 million barrels of Iraqi oil per day would be at risk,” Qusay says. “Even if the Turkish Ceyhan pipeline were activated as an alternative route, it would cover only a third of exports, with burdensome logistical costs requiring thousands of trucks.”

Approximately one-fifth of the world’s oil trade—between 18 and 19 million barrels per day—passes through the Strait of Hormuz. Any military escalation affecting this vital artery would mean not only an Iraqi oil crisis, but also enormous pressure on prices and cash flows.

The indirect repercussions, however, appear more vague. The suspension of flights, the complexity of supply chains, and the potential displacement of Iranians or the return of Iraqi students and workers from Iran all add a new burden to the Iraqi state.

Financial expert Mahmoud Dagher told Shafaq News Agency that Iraq is still in the “economic resilience” phase, benefiting from high oil prices, but the door is open to more severe possibilities.

“The worst scenario is the closure of the straits, whether in the Arabian Gulf or the Red Sea, a card that Tehran or its allies in Yemen could play,” Dagher says, adding that “this would be an uncontainable blow, not only to the Baghdad government, but to the entire Middle Eastern economy.”

Iraq does not appear to have sufficient room for maneuver in this crisis. Between its near-total dependence on oil, weak domestic production, and the import of most basic commodities, any regional unrest becomes a daily matter for Iraqi citizens. As the crisis between Israel and Iran continues, attention is turning not only to the military fronts but also to the markets of Baghdad, where currencies, commodities, and fear determine the fate of millions.

In the absence of a real local production structure, the Iraqi economy is becoming something of a vehicle, completely linked to the regional locomotive.