Article: “How did the Central Bank's strategic plan control the dollar price?"
Quote: "Saleh explained that the narrowing gap between the official exchange rate and the parallel (black) market exchange rate is one of the most prominent indicators of the success of the strategic approach to controlling the currency market outside official channels, which has had a positive impact on economic stability and the interconnectedness of the Iraqi economy..
.
This approach has contributed significantly to enhancing the stability of the monetary market, which benefits the strength of the Iraqi dinar..."
FRANK26: "THERE IS MORE TO THE EYE THAN WHAT YOU CAN SEE".......F26
Iraq welcomes Trump's visit to Saudi Arabia and considers the Riyadh and Baghdad summits complementary.
5/14/2025
Foreign Minister Fuad Hussein affirmed on Wednesday that Iraq welcomes US President Donald Trump's visit to Saudi Arabia. While announcing that Iraq will chair three Arab summits, he pointed to "tremendous" efforts being made to organize the Baghdad Development Summit.
"We are pleased with Trump's visit to the region and the understandings reached, and we are also pleased with the lifting of sanctions on the Syrian people," Hussein said during a press conference attended by a Shafaq News Agency correspondent.
Regarding the Baghdad Development Summit, Hussein explained, "Today we will highlight the tremendous work undertaken by the Higher Committee charged with preparing for the Arab Summit, with the participation of numerous Iraqi government departments."
He added, "The participation of leaders and officials in these exceptional circumstances the region is experiencing demonstrates the unity of Arab leaders in our current situation and their support for Baghdad's investment renaissance."
He added, "Twenty Arab organizations and federations will participate in the summit, in addition to international organizations represented by the Secretary-General of the United Nations, the Secretary-General of the Organization of Islamic Cooperation, the President of the African Union, and a representative of the European Union. The guest of honor will be Spanish Prime Minister Pedro Sanchez."
He continued, "There are also more than 250 Arab and foreign journalist guests and dozens of Arab and foreign figures in Baghdad."
Hussein affirmed, "Baghdad has focused its efforts on supporting the Arab Summit and providing full support, holding 16 meetings of the Supreme Administrative Committee. Iraq is proud to have hosted three summits: the 34th Arab League Summit, which Bahrain was honored to host last year, and now Iraq is honored to host it in Baghdad."
He added, "The second summit of the fifth session of the Economic and Social Development Summit, which is held every four years, and we will be honored to chair it from the State of Lebanon." He added, "The third summit is at the leaders' level, and Iraq will assume the presidency of the three summits. Iraq is now the president of the Arab Summit for next year."
Regarding the Baghdad Development Summit, Hussein explained, "There will be two sessions next Saturday. The first will begin in the morning for the Arab League Council session, and the second will be in the afternoon for the fifth development summit."
He added, "The two summits will issue the Baghdad Declaration, which includes the joint Arab position on economic, social, and development interests, and focuses on the regional challenges facing the region, most notably an immediate ceasefire in Gaza and the opening of crossings for humanitarian aid. The countries have presented their views on the items under discussion."
Hussein announced, "It is hoped that political initiatives will be put forward to establish the Arab Center for Combating Terrorism and the Arab Center for Regional Crime."
NADER FROM MID EAST: May 12, 2025 This is the best news I heard so far
Highlights
Summary
The Iraqi Central Bank plans to remove three zeros from the Iraqi dinar. This decision has economic implications that warrant further exploration. The removal of zeros from currency has been successfully executed by several countries, including Turkey in 2005, where they eliminated six zeros.
The core idea behind reducing zeros in currency is to simplify transactions, particularly those involving large sums, without altering the currency’s actual value.
When this change occurs, a 1,000 dinar note would be exchanged for a single dinar note, yet the value remains the same.
The government justifies this action to enhance the local currency’s practicality and encourage public confidence in its usage, which could, in turn, reduce the inclination to rely on foreign currencies. However, some negative consequences may arise from this decision, such as the costs associated with printing new banknotes and the potential decrease in cash circulation in the economy. Essentially, while the removal of zeros does not prompt any significant economic changes, it aims to foster a reform atmosphere that could facilitate trade operations.
💵 The Iraqi Central Bank plans to remove three zeros from the dinar to simplify transactions.
🌍 Countries like Turkey have previously implemented similar measures to reform their currency.
🔍 The action is designed to increase public trust in the local currency while reducing reliance on foreign currencies.
💱 The exchange rate remains the same—1,000 dinars convert to 1 dinar without any actual loss in value.
💸 The move may incur substantial costs for the government through new banknote production.
🔄 The reduction in cash circulation could lead to lowered consumer spending.
📉 This currency reform does not bear strong economic consequences but may aid in enhancing economic activities.
Key Insights
📉 Understanding Currency Reform: The removal of zeros is seen as a currency reform strategy aimed at revamping the image and usability of national money. While it simplifies the currency, this process needs to be complemented with broader economic reforms, including increasing interest rates, to control money supply and stabilize the economy.
⚖️ Historical Precedent: Turkey’s experience in 2005 serves as a primary example of successful currency reform. This historical case shows that dollarization is often a reaction to currency crises, and while removing zeros may help in perception management, it also requires robust economic policies and strategies to ensure it benefits the economy in the long run.
🤔 Public Perception Matters: By simplifying the currency, the Iraqi government attempts to uplift the citizens’ confidence in using their national currency. Educational campaigns emphasizing the benefits of this change are vital as they can help counteract any fears and misinformation about such transformations.
📈 Impact on Trade Transactions: Simplifying the currency by removing zeros can significantly aid in large transaction processing, making it physically easier for traders and businesses to engage in trade without dealing with cumbersome amounts of cash. This could potentially result in heightened business activities and productivity in the market.
💡 Cost-Benefit Analysis: Although the Iraqi government recognizes the potential for economic benefits, the cost associated with this reform, such as producing new notes, needs careful consideration. An effective strategy will require managing these costs while sustaining investor confidence in the long-term viability of the reform.
🔄 Possible Diminution of Cash Circulation: A result of reforming the currency could be decreased cash circulation in the economy. This may influence consumer behavior, as the population might hoard more cash in light of changes, possibly stifacing daily spending and economic impulses.
📊 Focus on Policy Integration: While the removal of zeros is primarily a cosmetic change, the process needs to align with broader economic reform goals. Enhanced interest rates and more significant monetary policies should be enacted to maintain control over liquidity in the market and promote sustainable economic growth for Iraq.
Various considerations come into play with such a singular focus on this currency reform. To ensure its success, it will be essential for the Iraqi government and its central bank to maintain an inclusive approach, building overall economic stability beyond just altering the face values of currency notes. This initiative could serve as a pivotal point in resurrecting the Iraqi economy, granting it a revitalized chance against the backdrop of past inflationary issues and the intrinsic challenges of restoring national currency respect in the eyes of the populace.
Trade Bank of Iraq (TBI) has won the JP Morgan Chase Excellence in Payments Processing (STP) award for its commitment to sustainable practices in direct payments.
IQD #RV ALERT: The winds of change are blowin’ heavy outta #Baghdad, and the whispers are turning into ROARS.
#wearethepeople
Intel is lighting up, and top-tier sources are sayin’ we are in the FINAL WINDOW — the #IraqiDinar is about to POP OFF like never before!
The #IMF’s been silent for a reason. The #CBI’s got that look in their eye.
You think all these international meetings and
#centralbank shuffles are just coincidence? Nah fam — chess moves are being made behind the scenes.#Rates are being tested. #Contracts are positioned. The SYSTEM is ready.
We’re talkin’ life-changing, #generationalwealth. You didn’t come this far just to come this far.
This ain’t #lotto luck — this is divine timing, and those holding #dinar with faith, patience, and purpose are about to walk into their
#wealthy place.
Lambo season? Nah. Legacy season.
Are you positioned? Are you ready?
Because once this rocket launches, there’s no looking back. #GCR#globalreset#currencyrest
Hold tight. Stay alert. The #RV is REAL — and it’s about to REVEAL.
