I want to start off today’s news with Iraq bragging once again about its resources and wealth in an article titled “IRAQ BOOSTS FINANCIAL STABILITY WITH HUGE DOLLAR AND GOLD RESERVES IN US, EUROPE”. Boy, oh boy they are teasing us Iraqi Dinar investors once again. They are flaunting their wealth once again but the IQD is still at 1/6 of a penny and NOT traded on FOREX? Meanwhile Iraq has 43% more oil reserves than Kuwait and just founded two more major wells besides. There is something inherently wrong here. Do you see it too? Let’s explore this concept in greater detail in today’s Post other articles and what they are telling us. Remember these are their words, not mine. This comes directly from Iraqi news. We may not agree with all of what the articles have to say this news period, but I will say it is not lies or misinformation. If we pay attention we can see the writing is on the wall and their economists see it now too.
Kuwait is at 1 KWD = 3.25 USD on FOREX.
The below message recently comes up on this site when you inquire about the IQD. It says “Notice IQD may be redenominated”. This redenomination is the newer lower denominations we have been waiting for. Yes, they will have to execute the Project to Delete the Zeros. We know that the CBI must also raise the rate of the Iraqi Dinar at par or just over a dollar within country to get this project started and create incentives to turn in the dollars. This is really the final push to de-dollarize Iraq. The CBI still needs to break this parallel market. As long as the Iraqi Dinar is much lower than the dollar this issue will linger.
You can link to the site yourself https://www.xe.com/currency/iqd-iraqi-dinar/
Next, as usual I want to point out one article that stands out among all others in the set of articles in the Iraqi news for this period.
In doing so, I want to bring to your attention a very interesting, but sober analysis of the solution to the problem of the parallel market and dollar within Iraq by a noted economists. His name is Khalil Ibrahim Al-Abidi. The article is titled “AUCTION DOES NOT BUILD THE ECONOMY”.
What I find interesting about the article is he explains about the Iraqi Dinar what all of us should already know if you have been following my blog. But it is nice to hear it again from their mouths not just mine. Al-Abidi essentially is telling us once again that the currency auctions were not meant to be implemented so long. (Oh…gee whiz what a revelation…lol..lol..lol..) He says the auctions were a temporary measure to prevent hyperinflation and because they had run so long, they had become a way of life or as he puts it in the article and I quote – “and we have become accustomed to the mistake and it has become a lifeline.” He admits that the auctions were not such a good thing when the CBI let them go on for twenty years. He says the CBI did a very good thing in getting off the currency auction platform. I quote from the article … “the Central Bank did well recently and left the auction platform, and returned to respect its currency, which is the Iraqi Dinar.”. But he says there is also the next step that needs to happen.
Economist Al-Abidi then goes on to say in the article what the next stage or step should be for the Iraqi Dinar. Yes, we all know what the next step should be and now, once again, we are hearing it from yet another Iraqi economist not just our own thoughts as investors. So, what does he feel is the next step? I quote from the article and I broke it down into three distinctive parts:
1.“Working to follow up on what is imported under the import license and ridding the country of the decline of its currency and the danger of imports”, (avoid fake receipts and shipping papers) and;
- “the most important step is to zero out the Iraqi Dinar, and buy the 1,250 old Iraqi Dinars for one Iraqi Dinar of the new currency during the exchange after printing the one Iraqi Dinar denomination”, (he is saying to exchange 1,250 of the older three zero notes for a newer lower denomination note of one Iraqi Dinar worth $1.25 USD)and;
- “the value of one Iraqi Dinar will be one dollar through the documentary import cycle, and we have sufficient revenues in addition to the sovereign reserves.” (here he backs up what I just said in #2 above)
Note that Al-Abidi does not mention the FOREX trading of the Iraqi Dinar and limits his commentary to in-country and managing the payment of imports into Iraq. We know this has to be the next step in the process to increase the rate of the Iraqi Dinar in-country to at par or just over a dollar. Then go to FOREX.
Again he is talking about the next stage and is limiting it to in-country. This will enable the CBI to issue the newer lower denominations. We know these denominations are already printed as Dr Shabibi told us they were way back in 2012 and so don’t doubt this point in your mind. We must remember what we learned in the past and go forward to the present to use our brains in determining where we stand in this investment.
Okay, so what else does Al-Abibi tell us. He says and I quote “Making the value of one Iraqi Dinar equal to one dollar will keep the citizen, merchant, traveler, doctor, etc. away from running after the dollar. Rather, he will be reassured that his currency is valid for purchase and exchange wherever he is, and this is the point of safety.” WOW! Do you know how powerful this last statement is? He gives a solution the parallel market but in order to dissolve the parallel market you must get rid of the reason for the demand in the dollar. Get it? He gets it! I can’t imagine that the CBI also does not get it.
Then even more powerful Al-Abidi goes on to say and I quote “It issues a currency whose value is evaluated in gold, not in the currency of others, upon request.” WOW! again another powerful statement. So, what is he talking about in this statement of his? He is saying the IQD will be backed by gold not some basket of other foreign reserve currencies and the Iraqi Dinar can them be converted to gold upon demand to the CBI. Folks this is “gold-backed” currency of the Iraqi Dinar we have already talked about and read in many articles about but now we hear it from Iraq themselves that this is the plan.
Next, I need to cover what many might see as a negative article. But I assure you it is just gossip and a devaluation of the IQD is NOT going to happen. Please see article titled “BETWEEN ECONOMIC EXPERTS’ WARNINGS AND GOVERNMENT DENIAL, THE VALUE OF THE IRAQI IRAQI DINAR IS AT STAKE” I believe the point the author is trying to make in this article is that if the CBI does not move soon on the next stage, what Al-Abidi talks about in his article there may be repercussions in the economy. In that just because Iraq is now out of the currency auction platform everything is still not completed. There is more to do to get the Iraqi Dinar to the place that they desire it. This last step alone will not do it.
So rumors begin and an informed government source denied, on Tuesday (January 28, 2025), that the Iraqi government has any intention to reduce the value of the Iraqi Dinar against the dollar, despite rumors indicating upcoming measures to confront economic pressures and challenges in the international market. Do you see what I mean now once you read this paragraph? The CBI must make this move to the next stage and do it soon, very soon, not years in the future. Now that they have moved closer to the international way of banking for their imports (through foreign correspondent banks), they must eventually move to FOREX and to get to FOREX trading they will need to conduct the Project to Delete the Zeros. The final goal in all these steps is to get of course to reinstate the Iraqi Dinar on FOREX but also to have the IQD usable for trade. What I mean is to create a desire for acceptance of the Iraqi Dinar as a means to pay for imports to Iraq. Why would anyone want the Iraqi Dinar now at 1/6 of a penny? Get it?
I know the steps necessary to get to FOREX and believe me we are not exchanging our Iraqi Dinar as investors unless the IQD is back on FOREX. No one is exchanging the IQD for anything other than the “official” CBI rate 1310 or maybe a black-market rate. But certainly not at $3 or $4 dollars for example. How stupid to even believe this crap. How long has this nonsense been going on?
What else is in the news?
There is so much news this period coming out of Iraq but for the length of this Post. I will concentrate on just a few more of the most important articles. These articles deal with the new US Trump administration and what is holding up this next stage that Al-Abidi told us should happen. So, this news today is all interconnected. This information is also supported by what my contact in the CBI has told me a couple times is the hold up. But we all should get out of this idea of a “holdup” and just realize that it is a process. The CBI sets goals and plans. But the plans don’t always pan out on time and obstacles are realized along the way. I have to day that getting off the currency platform was a huge undertaking for the CBI and was done on time and effective. I know this seemed unusual for Iraq to be on time….lol…
The first article titled “GOVERNOR OF THE CENTRAL BANK OF IRAQ MEETS AN OFFICIAL DELEGATION FROM THE UNITED STATES”. His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, received Mr. Steve Lutes, Vice President of the US Chamber of Commerce and Chairman of the US-Iraq Business Council, and his accompanying delegation in Baghdad. During the meeting, they discussed banking and economic relations between the two countries and the upcoming visit of the Central Bank of Iraq delegation to Washington and their meeting with the US Chamber of Commerce and American companies next April.
The next article is titled “AL-SUDANI IN A TELEGRAM TO TRUMP: WE ARE COMMITTED TO STRATEGIC RELATIONS UNDER THE UMBRELLA OF RESPECT FOR SOVEREIGNTY AND NON-INTERFERENCE”. Prime Minister Mohammed Shia Al-Sudani sent a congratulatory telegram today, Tuesday, to US President Donald Trump, on the occasion of his assumption of office as President of the United States of America.
Al-Sudani indicated in the telegram, according to a statement from his office, a copy of which was received by {Euphrates News}, that Iraq aspires to strengthen the bonds of cooperation and partnership with the United States, within the framework of the strategic agreement and the common interests of the two countries, stressing the importance of working to support the foundations of stability, security and development regionally and internationally.
The next article is titled “AL-JAWAHIRI: TRUMP WILL LOSE THE “OIL PRICES” BATTLE AND IRAQ’S BUDGET IS A TOOL TO STEAL MONEY” Oil expert Hamza Al-Jawahiri bet on Saturday on US President Donald Trump’s loss regarding reducing global oil prices, noting that inflating the numbers in the Iraqi budget represents a means of stealing public money . Al-Jawahiri said, in an interview with Shafaq News Agency, “Trump will fail in his attempt to reduce oil prices, as the United States aims through this to achieve major political changes in the world, such as stopping the war in Ukraine as it stopped the war in Gaza and Lebanon, and changing the regime in Syria.” (and much more).
We can read from these three articles and other news this period, that the goals and foreign policies of the US towards Iraq are going to be of three levels:
- Defense – Strategic Agreement. The US will have to negotiate leaving troops inside Iraq. Can Iraq defend itself? Does the US still need a presence in the middle east for stability in the middle east?
- Energy – Bring the price of oil down, drill baby drill, pump baby pump applies to Iraq also.
- US Companies investing in Iraq – that the Central Bank provides the necessary support to international companies wishing to invest in Iraq, including American companies and banks.
Anyone who tells you that this investment in the Iraqi Iraqi Dinar is just a pipe dream, then refer them to my Mnt Goat’s Posts for advice. Maybe they were just listening to the wrong people…..