In a major move that has gone under the radar, Iraq is set to regain full control of its currency and economy.
Washington has stopped the automatic deductions from Iraqi oil revenues used to pay Kuwait, lifting a huge financial burden on the country.
The end of these payments signals the collapse of Chapter VII sanctions, meaning Iraq will now have true sovereignty over its resources and economy. The global shift is happening right before our eyes.
As of September 7, 2024, discussions about Prime Minister Mohammed Shia' Al Sudani's decision regarding the revaluation (RV) of the Iraqi dinar remain prevalent. Al Sudani's policies have significantly impacted the Iraqi economy, with measures to curb currency smuggling and stabilize the economy being at the forefront of his agenda. These actions have reportedly led to increased government salaries and wages for retirees, and the launch of major development projects.
Economic Reforms and Public Perception
Al Sudani's implementation of US Federal Reserve policies aimed at preventing currency smuggling has been a pivotal point in his economic reforms. This has resulted in a reduction in the circulation of US dollars within Iraq and a subsequent increase in the value of the dollar. Such measures have been both praised and criticized, with some factions within the Coordination Framework, an alliance of Shiite parties loyal to Iran, opposing his approach.
RV Speculations and Anticipation
Speculations about the RV of the Iraqi dinar have been a topic of discussion, with sources suggesting that the decision might be made this year. However, there is a lack of concrete evidence to support these claims, and no official announcement has been made as of September 7, 2024. Financial analysts and insiders have been monitoring the situation closely, with some expecting developments in the coming days.
Political Maneuvering and Elections
The political landscape in Iraq has been marked by maneuvering from the Coordination Framework, which seeks to call for early elections in 2024 or early 2025. This strategy is designed to undermine Al Sudani's position by creating political and economic instability, with the aim of forcing him to step down and preventing his nomination in the upcoming elections.
Conclusion
As Prime Minister Mohammed Shia' Al Sudani navigates the complex dynamics of Iraqi politics and economics, the anticipation surrounding the RV of the Iraqi dinar continues to grow. While Al Sudani's policies have garnered support, the political opposition's strategies and the ongoing speculation about the RV's timing underscore the uncertainty and volatility in Iraq's financial future.
💢The Liberty Loungers Extraordinaire were having an interesting conversation in chat regarding events pertaining to Iraq financial reforms; and we wanted to give it wings and let it fly. Good stuff here. 9.7.24
💢Real Live Posts: I honestly do not believe the Iraqi people are going to want to wait until next year for a new rate (it's already been more than a year since they were promised it) - expect severe demonstrations, riots and even the downfall of Sudani's government if that is the case. Alternatively it could just be deliberate misinformation!
💢 Birdieorbust: That is just it, Sudani has already promised them that "it's this year"; and he has not went back on any promises to them yet. Plus he knows if he doesn't file through them they will take to the streets and he does not want that.. He will come through this year for them.
💢HS Quan: Hmmm I will need to revisit this claim (Sudani’s promise) to decide if RV is still this year.
Did Sudani make the same promise in 2023!?? We were SO sure about it last year.
💢 Birdieorbust: No, he did not say it would be over in 2023. Some truthers - or so-called truthers - said that; but he did not. But he has since told them again this past week that it will be by the end of this year...
In recent commercials circulating on television in September 2024, Iraq is portrayed as a stable and secure destination for international investment.
These advertisements highlight the country's openness to global companies, emphasizing the rapid pace of international interest and engagement.
Despite the absence of Alaq, a prominent figure in Iraq's financial landscape, the country has been actively attracting international attention.
Iraq, heavily reliant on oil revenues, has been working to diversify its economy and create a more resilient fiscal framework. The commercials reflect Iraq's efforts to project an image of stability and security, showcasing its readiness to welcome foreign investment
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Strategic Framework Agreement and U.S.-Iraq Relations
The commercials come at a time when Iraq is seeking to redefine its relationship with the United States. Prime Minister al-Sudani's visit to Washington, accompanied by a large delegation, underscores Baghdad's desire to shift the focus from military engagement to economic, educational, and cultural exchange. This strategic move is part of Iraq's broader goal to foster a comprehensive partnership with the U.S. that extends beyond security concerns.
Challenges and Opportunities
While the commercials present an optimistic vision, Iraq faces significant challenges. The country must address issues such as governance, infrastructure, and security to fully capitalize on its economic potential. Moreover, managing domestic and Iranian pressures regarding the presence of U.S. troops remains a delicate task for al-Sudani's administration.
Conclusion
The commercials on global partnership and economic stability reflect Iraq's ambitious aspirations to reposition itself on the international stage. By highlighting its openness to foreign investment and its commitment to a multifaceted relationship with the U.S., Iraq aims to attract the attention of the global community. However, realizing these ambitions will require addressing internal challenges and navigating complex geopolitical dynamics.
FIREFLY:New commercials on TV about global partnership and stability and security of our economic future.
One after another commercials are saying we are stable and secure and how we are open for International companies to come in and invest in Iraq...The whole world is pouring in...This is happening at a very fast pace and we don't even have Alaq here in our country.
Frank26
[Iraq boots-on-the-ground report]
FIREFLY:Saleh on TV right now and he just told us that the project to delete the zeros is ruled out at this present time...
Then he turns around and says we need to reduce the amount in the budget from trillions to billions and then ends the conference talk by saying many have called for the removal of the three zeros which would increase the dinar...We are both in shock and stunned because he said one thing and then he said another thing.
FRANK: What he's telling you is exactly right...it doesn't make any sense...This is B.S. It is a lie...Trust me, nothing is stopping the purchasing power that is coming to you Iraqi citizens. Nothing...China did the same thing back in the 90s...They came out with a full page article in their newspaper saying there were not sign to increase the value. 3 days later they increased the value.This may be the same scenario. A diversion for speculators.
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Frank26
[Iraq boots-on-the-ground report]
FIREFLY: Alaq in the United States of America means very little for us in the sense of a rate change. It is more for the banks to try to get their situation straightened out and no more sanctions.
FRANK: I agree to a certain point but I also disagree to another point.
IMO this meeting in New York may not release a new exchange rate but it is definitely part of the monetary reform.
This meeting will accomplish steps that are necessary to release the new exchange rate.
Your banks have to be stable and secure and free from the corruption of parliament and they must be ready for the new exchange rate. That's what they're doing.