Walkingstick
[Iraqi banking friend Aki update]
Question: "Do you feel Alaq will give us the new exchange rate this month or at least in this quarter?"
AKI: This is what I have heard. This is not going to be given to you as a fact. You know what I do [manage a bank].
You know where I'm at [Dearborn Michigan] ...I have heard this will be all done by the end of the 2nd quarter or at the beginning of the 3rd quarter.
The recent 12-day conflict between Iran and Israel had a dual economic impact on Iraq, leaving the country at a neutral point between gains and losses, Mudhhir Mohammed Saleh, the financial and economic adviser to the Iraqi government, stated on Thursday.
Describing the war’s impact as a “double-edged shock” to the national economy, Saledh noted that on the positive side, oil prices saw a short-term premium of 6 to 7 percent per barrel, benefiting Iraq’s revenues without disrupting exports.
“This price premium generated an estimated $150 to $160 million in additional revenues over a short period,” Saleh told Shafaq News, assuming a daily export volume of 3.3 million barrels. “Exports continued uninterrupted despite threats of Gulf closures.”
However, Saleh pointed out that Iraq also faced significant negative economic effects. These included higher import costs due to disruptions in maritime insurance markets, global price fluctuations, increased shipping expenses, losses in air transport, supply chain delays, forgone airspace transit fees, and a sharp decline in religious tourism during the conflict.
“The indirect losses roughly equaled the additional oil revenue,” he said, “leaving the Iraqi economy in a state of neutral uncertainty — neither a clear profit nor a net financial loss.”
He cautioned against relying on such temporary windfalls when shaping long-term policy. “This kind of wartime profit cannot support sustainable economic planning,” Saleh said, urging the government to establish a sovereign emergency fund to absorb future shocks and reduce pressure on public spending.
He also recommended developing at least four independent oil export routes to bolster economic resilience.
IRAQI DINAR RV REPORT UPDATE
As of June 2025, HSBC is reportedly exchanging Iraqi Dinar (IQD) at select branches across the UK, US, and Asia.
Several sources indicate that HSBC has implemented structured foreign exchange procedures for both the Iraqi Dinar and Vietnamese Dong,
TIMING OF THE IQD RV
Government advisor: The ceasefire agreement provided temporary relief to oil markets
The Prime Minister's financial advisor, Mazhar Mohammed Saleh, confirmed on Thursday that the ceasefire agreement between Iran and the Zionist entity has returned oil markets to a downward trend.
Saleh told the Iraqi News Agency (INA): "Following the announcement of a ceasefire agreement between Iran and the Zionist entity, which halted threats to close the vital Strait of Hormuz - threats issued within the context of escalation with the Zionist entity - oil markets returned to a downward path and headed towards peace indicators, after a sudden hedging wave that they witnessed at the height of tension."
He added, "The Strait of Hormuz is strategic, through which approximately 20% of the world's crude oil passes, in addition to a third of liquefied natural gas supplies destined for international markets under ongoing, long-term contracts." He noted that "the decision to cease the war has given energy markets a strong positive signal indicating the stability of supply routes, especially in the world's most important energy corridor. "
“This was directly reflected in Brent crude prices, which are considered a benchmark for oil pricing, as they recorded an immediate drop of more than 5%, equivalent to $3 to $4 per barrel in a single session. This is considered one of the largest daily declines in recent times, which means the end of the threat and the return of balance to the market,” he continued, stressing that “the end of the threats that were threatening the Strait of Hormuz and the return to the language of calm represented a temporary moment of relief for the markets. However, in reality, this relief does not necessarily mean long-term stability, as the fragility of the truce and the possibility of renewed clashes if diplomatic efforts fail, maintain a high level of caution in future forecasts.”
He explained that "the market is now pricing oil and is once again being affected by traditional economic factors: from weak demand, to OPEC+ production policies, to competition between exporting countries from within and outside the organization."
He pointed out that "public finances in Iraq must adhere to the constants of hedging and financial discipline included in Law No. 13 of 2023 (the three-year budget), which is spending according to the optimal minimum requirements and resorting to domestic borrowing when needed, as permitted by the law and in a way that does not disrupt basic operational and investment expenditures, even with the disappearance of the (strategic oil premium) generated by threats to the Strait of Hormuz." link
Frank26
[Iraq boots-on-the-ground report]
FIREFLY:Saleh is on TV and he says, 'We are stable and strong and we have price discipline and we have three reasons for it.'
FRANK: 1310 is not price discipline because it fluctuates and it's bouncing all over the place...The new exchange rate is the #1 reason. That's what he's talking about...A new exchange rate requires this conversion.
PMF Militia Leaves Iraq & CBI Prepares Infrastructure – Signals for Iraqi Dinar Holders Introduction Recent developments in Iraq show a ...