I will be calling on Wednesday and relaying the info of my call to you on Thursday. I will ask about this Oil and Gas Law again.
Remember too that I need to unwind the mystery of what the hell is holding up the Project to Delete the Zeros and move ahead. Could simply be the Oil and Gas Law?
The CBI seems to be at a standstill now.
It is my understanding, as told to me by my CBI contact, that they are monitoring the parallel market very closely at this point.
They are monitoring the economy for inflation as a result of this latest move of removing the currency auctions.
So far, the dollar has not changed all that much. The enormous spike in the dollar rate everyone expected did not occur, as the CBI said it would not.
IRAQ’S OIL WEALTH: A STARK CONTRADICTION BETWEEN POTENTIAL AND SOCIAL REALITY
Although Iraq is one of the most prominent oil producing and exporting countries in the world, the social and economic reality in the country shows a stark contradiction between the enormous potential and the increasing levels of poverty.
(Yet, it is documented that trillions of dollars not dinars, has been stolen from the Iraqi people since the 2003 invasion. The goose with the golden eggs era is over! )
This contradiction raises questions about the shortcomings in resource management and the mechanisms that prevent oil revenues from being translated into tangible welfare for citizens.
Multidimensional poverty: more than just numbers
Poverty is no longer measured by individual income; the severity of deprivation in daily living requirements is a more accurate measure. This deprivation includes sectors such as education, health, and living services.
In Iraq, the percentage of poor people is 23.4% of the population according to last year’s statistics, compared to 22% in 2000, which means that the number of poor people has doubled from five million to ten million people over the past two decades.
But these figures do not reflect the full picture. In southern areas such as Muthanna and Diwaniyah, the poverty rate exceeds 50%, while it drops to only 5% in Sulaymaniyah. This gap highlights regional disparities in the distribution of resources and services, which exacerbates the feeling of deprivation in some governorates.
Causes of worsening poverty: financial corruption and structural crises
Iraq used to suffer from poverty due to the economic blockade and weak economic activities. Now, financial and administrative corruption is the main reason, as oil revenues are wasted on ineffective projects or leaked into the pockets of the corrupt. Although oil revenues have increased fivefold since 2000, the rentier economic system and the lack of economic diversification have increased the state and society’s dependence on oil, without developing other sectors such as industry and agriculture.
In the education sector, 3.2 million Iraqi school-age children are out of school, due to financial distress and lack of infrastructure. In the health sector, while some suffer from malnutrition, food waste rates are high due to consumption habits. This paradox reflects weak planning and poor control of resources.
Electricity services are a chronic crisis in a country with the world’s fifth-largest oil reserves. Despite state subsidies for energy prices, citizens are forced to rely on expensive private sources due to frequent outages. This gap between government supply and actual demand burdens poor families.
To reduce poverty, Iraq relies on tools such as the Social Fund for Development, social welfare, and food rations.
But these tools face major challenges, such as poor funding, corruption, and the inability to reach all those who deserve it.
Iraq can benefit from successful international experiences, such as the Chinese experience, which focused on creating job opportunities by exploiting economic growth, or the experience of other countries that relied on improving basic services.
FIREFLY:Mr Sammy says month of January is critical.
FRANK: Yes, it is critical in the sense they are about to give you your purchasing power because the evidence points solely in that direction. There is no other option, there is no other choice.
FIREFLY: The feel on the streets we citizens know a new rate is coming! Everything is pointing to to this!
FRANK: I agree with you. I can feel the rumbling of the earthquake that will bring you your monetary reform, purchasing power. Things are getting very exciting...
😊 Well folks all this negative talk from sceptics and challengers of the CBI action about the closure of the platform did not pan out. Many days have passed already. Dr. Mahmoud Dagher, a prominent financial expert, commenting on the first day of official work after the New Year’s holiday and the start of implementing the decision has told us in the Iraqi news there has only been a slight increase in the dollar price. You might want to read the article titled “THE IRAQI DOLLAR AND THE FIRST DAY “PASSED PEACEFULLY”.. THE CENTRAL BANK IS INNOCENT AND DEVOTED TO THE DINAR”
I am not going to beat a dead horse with much more of the ongoing news about the closure of the currency platform. I think I have covered it sufficiently in the past. Let’s move on and just watch and see what happens with the parallel market.
An interesting set of directions (or more like investors advise) was published on the Bitcoin World blog publishing an article titled “
COMPREHENSIVE GUIDE TO TRADING THE IRAQI DINAR (IQD) ON FOREX” This was published as recent as on 12/31/24. The questions we must as is why did they publish this and why now?
Here is a snip-it from the article:
The Iraqi Dinar (IQD) is the official currency of Iraq, and while it may not be as widely traded as major currencies like the US Dollar (USD) or the Euro (EUR), it holds significant interest for Forex traders looking to diversify their portfolios. Trading the IQD on the Forex market presents unique opportunities and challenges, influenced by Iraq’s economic conditions, geopolitical factors, and global market trends. This comprehensive guide delves into everything you need to know about trading the Iraqi Dinar on Forex, including live rates, trading strategies, market analysis, and tips for successful IQD Forex trading today.
You can follow the link below to view the entire article: