The Dollar Stabilizes As Concerns About Venezuela Subside.
Money and Business Economy News — Follow-up The dollar held near a two-week high as Asian trading began on Tuesday, with market jitters over U.S. military action in Venezuela easing and dovish comments from Federal Reserve officials encouraging risk-taking on Wall Street.
The dollar index, which measures its performance against a basket of six currencies, stood at 98.36, up 0.04%, after ending a four-day winning streak on Monday.
“The market isn’t really worried about what’s happening geopolitically, at least in the near term,” said Rodrigo Catril, a currency strategist at National Australia Bank in Sydney. He added that this environment “reduces the appeal of safe-haven assets, and we’ve seen the dollar in a difficult position,” according to Reuters. https://economy-news.net/content.php?id=64219
The following reflects Walkingstick’s opinion and analysis. This content is not financial advice. Always consult licensed financial and legal professionals before making decisions.
💥 A Dinar Rate Change Is Coming – According to Walkingstick
Walkingstick was very direct:
“There will be a rate change to the Iraqi dinar.”
Why? Because Iraq has been formally warned at the highest level that continuing to depend on the U.S. dollar is no longer acceptable.
🇺🇸 Trump’s Message to Iraq: Build Your Own Purchasing Power
Walkingstick’s update highlights real authority, real pressure, and real consequences. With Trump’s directive, Sudani’s power, and parliamentary meetings converging, the window is narrowing.
This phase is no longer about speculation — it’s about execution.
Walkingstick
There will be a rate change to the Iraqi dinar because Donald Trump told Iraq stop depending on the American dollar get your own purchasing power.
Prime Minister Sudani can fire the governor of the CBI, Alaq in a nanosecond and replace him.
IMO if Alaq does not do what he is supposed to do in these series of meetings coming up he will lose his position...Alaq can be removed very quickly...Sudani can fire Alaq if he feels he is not doing his job. It's really winding down to these series of meetings that parliament is going to be having...
Central Bank Governor: Weak Economic Diversification Is Putting Pressure On The Dollar And The Exchange Rate.
Banks Economy News – Baghdad The Governor of the Central Bank of Iraq, Ali Al-Alaq, confirmed that the limited economic diversification and weak productive sectors have made Iraq a country that is primarily an importer, which puts continuous pressure on the dollar and the exchange rate.
Al-Alaq explained, during a lecture on development financing in light of the global debt crisis, held on the sidelines of the Fifth Regional Conference of the Al-Baraka Forum for Islamic Economics,
which is being held in Cairo in partnership with the General Secretariat of the League of Arab States, that “the Iraqi scene is facing intertwined pressures and accumulated infrastructure and development challenges, which require diversifying the economy and maximizing public revenues,” noting that “public finances in Iraq depend on oil exports by more than 90%, which is an unconventional source subject to fluctuations in global prices, which leads to fluctuations in revenues and weak financial stability, which necessitates finding structural solutions.”
He explained that “the limited economic diversification and weak productive sectors have made Iraq a country that is primarily an importer, which puts continuous pressure on the dollar and the exchange rate, especially with the rise in purchasing power and the increase in daily demand for foreign currency, which directly affects monetary policy, which has achieved great success in balancing the maintenance of price levels, managing liquidity, and stimulating the economy.”
He pointed out that "public spending pressures, particularly on salaries, subsidies and basic services, pose an additional challenge," stressing "the difficulty of reducing these expenditures due to the potential social repercussions, at a time when the central bank is striving to avoid inflation and maintain monetary stability to protect the social structure of the country."
Al-Alaq pointed out that “Iraq has been able in recent years to finance part of the financial deficit through the development of non-oil revenues, while continuing to coordinate with the Prime Minister with the aim of maximizing these resources and reducing dependence on oil,” in an effort to break what he described as the “financial dominance” of oil revenues over the general budget.
The governor of the Central Bank affirmed that "the stability of the exchange rate is a pivotal goal, as it provides a safe cover for investors and citizens," noting that "Iraq has succeeded in raising the size of foreign reserves and linking them to a package of integrated monetary policies, which have contributed to reducing the inflation rate to about 1%, which is among the lowest levels recorded."
He added that "Iraq is in the process of governing the banking sector," revealing that "an update is underway in cooperation between the Central Bank and an international company for a comprehensive reform plan, which includes reviewing bank licenses according to new conditions and standards, in order to strengthen the banking system and raise its efficiency."
Regarding Islamic bonds, Al-Alaq explained that "there are no Islamic bond instruments in Iraq yet," noting that "there is an integrated project submitted by the Central Bank to the Iraqi Parliament for voting, which opens new horizons for financing and investment."
On the issue of debt, Al-Alaq stressed "the need to find an organized and continuous international dialogue between creditors and debtors," calling for "the establishment of a regional platform to organize this dialogue and reduce the gap between the two parties, in order to ensure negotiations without significant losses, and to contribute to the implementation of reforms and the strengthening of the economic base with the support of the participating countries."
He pointed to “international studies showing that losses in the debt file may range between 20% and 25% as a result of poorly considered financing conditions or delays,” stressing that “negotiating platforms contribute to reducing these losses and enhancing international cooperation by improving debt conditions, bridging the information gap, and exchanging experiences in economic reform processes.” https://economy-news.net/content.php?id=63504
A Sudanese Advisor Explains To "Al-Eqtisad News" The Repercussions Of Fixing The Exchange Rate At 1300 Dinars In The 2026 Budget.
Money and Business Economy News – Baghdad The Prime Minister’s Advisor for Economic and Financial Affairs, Mazhar Muhammad Salih, revealed on Thursday the impact of the Central Bank of Iraq’s decision to fix the official exchange rate at 1300 dinars in the 2026 budget.
Saleh told Al-Eqtisad News that "the government decided to fix the official exchange rate at 1,300 dinars per US dollar in the 2026 budget project, within the framework of what he described as 'calculated coordination between fiscal and monetary policies'."
He explained that this step represents a limited increase in the value of the Iraqi dinar, and is a positive sign that reflects the strength of the country’s foreign reserves and the ability of monetary policy to confidently maintain stability.
He pointed out that fiscal policy is now moving towards maximizing real revenues, moving away from resorting to what is known as "monetary adjustment," which relies on using the exchange rate as an indirect financing tool, stressing that this trend promotes the use of authentic financial instruments to mobilize resources and control spending.
The advisor stressed that this monetary signal sends a clear message that containing inflation and stabilizing the national economy is a permanent priority, while maintaining the independence of monetary policy, and pushing fiscal policy towards greater efficiency and responsibility, in order to achieve the sustainability of macroeconomic balance in the Iraqi economy.
Earlier today, the Central Bank of Iraq addressed the Ministry of Finance regarding fixing the official exchange rate at 1300 dinars in the 2026 budget. https://economy-news.net/content.php?id=64316
All statements shared by Jeff reflect personal opinion and interpretation. This information is not financial advice. Always consult a qualified financial professional before making decisions.
🌍 Why Iraq Changes Currency Rates on Sunday
According to Jeff, Iraq has a very specific and deliberate method when it comes to major currency rate changes.
Jeff’s explanation brings clarity to why timing matters, why Sundays are critical, and why government formation is the final gate.
Everything points to preparation being complete — stability is the switch.
Stay informed. Stay patient. Stay grounded.
Jeff
They do [rate changes] over what is their Sunday morning when all world markets are closed so they don't have a ripple effect with a rate change of that magnitude [3,000% to 4,000% increase] ...
That's why they do it that way.
Question: "What are we waiting on?"
IMO we're waiting on the government to be formed. The the central bank that could be perceived as a level of stability...The central bank has always said security and political stability are the two critical core components of allowing them to consider reinstating the value of the currency...The formation of the government can go very fast...
They warned of a "major recession"... Baghdad merchants complain about high taxes and customs duties: the citizen is the one who suffers
1/8/2025
Wholesalers and owners of goods and merchandise warehouses in the capital, Baghdad, expressed their strong dissatisfaction with the government’s recent decisions regarding increasing taxes and implementing the new customs tariff, in addition to imposing a quality mark on all imported goods.
Traders confirmed that these simultaneous measures caused clear disruption in buying and selling, warning that continued tax pressure would lead to a major recession in local markets, as a result of the sudden increase in import and storage costs, and the difficulty for the market to absorb these price increases.
Salem Hassan, a construction materials trader, told Shafaq News Agency that "customs duties have increased significantly to more than 30%, which is equivalent to one-third of the price of some materials," noting that the average citizen is no longer able to purchase his basic needs.
He added that "this increase has caused a recession in the markets, while wholesale stores have raised prices for traders," calling on the state to find urgent solutions to this problem.
For his part, a wholesaler of single-use plastic materials in the Jameela Industrial Area pointed out that raising customs duties prompted them to stop import operations, noting that these materials are used daily in packaging food products.
The traders explained to Shafaq News Agency that "the state must find quick solutions, because the citizen will be the victim as he is the last consumer," indicating that the imposed customs duties are excessive.
For his part, economist Mohammed Al-Hassani told Shafaq News Agency that imposing customs duties on goods and commodities would lead to higher inflation rates and an economic recession.
He explained that the government imposed these fees at a time when Iraq does not have an industrial sector capable of meeting market needs, and that the available local production is insufficient, warning that this will contribute to increasing unemployment rates among young people. LINK