Iraqi Dinar: IBBC issues Major New Paper on De-Dollarisation of Iraq

link to My FX Buddies Blog Post

This revaluation of the dinar combined with restrictions on dollar transactions has also seriously injured private sector businesses that were engaged in exporting. Previously, many contracts between international firms such as oil companies and their Iraqi employees and suppliers were denominated and often paid in dollars. Iraqi employees and firms could then convert these dollars into dinars at the parallel rate – currently about 1,500 ID/$. However, beginning is 2024, the GoI required, that regardless of the currency specified in contracts, payments will be made in dinars only and at the official rate – 1,310 ID/USD

Iraqi Dinar: IBBC issues Major New Paper on De-Dollarisation of Iraq

link to My FX Buddies Blog Post

This revaluation of the dinar combined with restrictions on dollar transactions has also seriously injured private sector businesses that were engaged in exporting. Previously, many contracts between international firms such as oil companies and their Iraqi employees and suppliers were denominated and often paid in dollars. Iraqi employees and firms could then convert these dollars into dinars at the parallel rate – currently about 1,500 ID/$. However, beginning is 2024, the GoI required, that regardless of the currency specified in contracts, payments will be made in dinars only and at the official rate – 1,310 ID/$.

Iraqi Dinar: IBBC issues Major New Paper on De-Dollarisation of Iraq

link to My FX Buddies Blog Post

This revaluation of the dinar combined with restrictions on dollar transactions has also seriously injured private sector businesses that were engaged in exporting. Previously, many contracts between international firms such as oil companies and their Iraqi employees and suppliers were denominated and often paid in dollars. Iraqi employees and firms could then convert these dollars into dinars at the parallel rate – currently about 1,500 ID/$. However, beginning is 2024, the GoI required, that regardless of the currency specified in contracts, payments will be made in dinars only and at the official rate – 1,310 ID/$. Overnight, many Iraqi employees and firms suffered about a 16% cut in compensation. Adjustment of payments to reflect the new currency realities may not occur until contracts are up for renewal which may not occur for up to five years.

Iraqi Dinar: IBBC issues Major New Paper on De-Dollarisation of Iraq

⁠link⁠

This revaluation of the dinar combined with restrictions on dollar transactions has also seriously injured private sector businesses that were engaged in exporting. Previously, many contracts between international firms such as oil companies and their Iraqi employees and suppliers were denominated and often paid in dollars. Iraqi employees and firms could then convert these dollars into dinars at the parallel rate – currently about 1,500 ID/$. However, beginning is 2024, the GoI required, that regardless of the currency specified in contracts, payments will be made in dinars only and at the official rate – 1,310 ID/$. Overnight, many Iraqi employees and firms suffered about a 16% cut in compensation. Adjustment of payments to reflect the new currency realities may not occur until contracts are up for renewal which may not occur for up to five years.

Central Bank: The issuance of new monetary denominations will not affect the dinar exchange rate

link to My FX Buddies Blog

Brehi told Al-Ma’louma, “Issuing rumors on social media sites about the issuance of new monetary denominations aims to create a state of confusion in the Iraqi market.”

He added, "The Central Bank of Iraq is working according to well-studied plans, and there is no intention to issue new currencies in large or small denominations."

He explained, "If we assume that the central bank issues a new currency, this will not affect the exchange rate of the Iraqi dinar."

The government sees clear indicators: the parallel dollar will be equal to the official one

⁠link to My FX Buddies Blog⁠

Saleh said in a press statement followed by “Baghdad Today” that “the price of the dollar will be 1320 dinars in the coming days,” noting that “the important factors that work to reduce the value of the US dollar against the Iraqi dinar in the parallel exchange market will remain centered on two important variables, the first of which is the rise Capabilities of operating banks to comply with external transfer rules.

Al-Sudani: We will not let the projects stop in any governorate, and their completion will change the economic and social reality

⁠link⁠ to My FX Buddies Blog post

Prime Minister Muhammad Shiaa Al-Sudani stressed today, Thursday, that we will not let the projects stop in any governorate, indicating that their completion will change the economic and social reality of the governorate.

The media office of the Prime Minister stated, in a statement received by {Al-Furat News}, that “Al-Sudani chaired, in the Najaf Governorate building, a meeting of directors and officials of service departments and formations, during which the reality of services in the governorate was reviewed, and the most prominent problems and obstacles facing the progress of implementation of service projects.”

Biden extends the state of national emergency EO 13303 in Iraq for an additional year

⁠link ⁠to My FX Buddies Blog

Today, Monday (May 20, 2024), US President Joe Biden announced the extension of the national emergency in Iraq for an additional year.

Biden said in a letter addressed to the US Congress and published by the White House, “The obstacles to the orderly reconstruction of Iraq, restoring and maintaining peace and security, and developing political, administrative, and economic institutions in Iraq still constitute an extraordinary threat to the national security and foreign policy of Iraq and to the United States as well.”

Sudani: General Budget Law No. 13 for the years 2023-2024-2025 has become effective

link to My FX Buddies Blog

Prime Minister Muhammad Shiaa Al-Sudani confirmed that the General Budget Law No. 13 for the years 2023-2024-2025, which was approved by Parliament and published in the Official Gazette last June, has become effective. Al-Sudani pointed out in a press conference today, attended by the National Iraqi News Agency, that “Article 77, paragraph one, makes the provisions of the law effective for a period of 3 years, and paragraph two, obliges the Council of Ministers to send the budget tables to the House of Representatives.

Iraq seeks collaboration with Amazon on data center to facilitate internet access

link to MY FX Buddies Blog

Iraqi Minister of Communications Hiyam al-Yasiri held talks with Amazon representatives on Thursday to explore avenues for collaboration on establishing a data center in the country.

The project, according to a statement from the Ministry of Communications, aims to improve internet affordability and access for Iraqi citizens.

The discussions focused on potential partnerships between the ministry and Amazon, including the possibility of an Amazon data center in Iraq.

"This facility would aim to deliver global internet content at competitive prices to Iraqi users," the statement said.