mally2

Nice article. Yes Iraq, lets see the new economy asap.

Appreciate the highlights!

News of the day! I like that last paragraph they threw in.

It’s less now, this is from article yesterday on previous page. The Iraqi government intends to pay the last batch of compensation for the Kuwait war, before the end of this year, after depositing, the day before yesterday (Tuesday), more than 207 million US dollars, in the compensation account with the US Federal Reserve, to end the compensation file completely.

As anyone who has been on this ride for several years can attest, we've all thought this was it before. Im feeling that again, great news in this article and thread. Thx Yota

Saudi riyal is 1/100 currency. Iraqi dinar is 1/1000 currency. One unit of a riyal is a qirsh 1/100, one unit of a dinar is a fil 1/1000. I'd think the plan involves a dinar worth quite a bit more than the riyal but theres various ways to get there, hoping for the best.

The leader of the Sadrist movement pledged that "from now on, the government or the parties will not have control over the money and bounties, but rather it is for the people, and the people's oil is for the people, and we will work to raise the level of the Iraqi dinar to be in the ranks of global currencies gradually."

This is just my opinion. This is not the HCL, that is a stand alone piece of legislation but if and when we ever see the hcl it involves profit sharing for all Iraqi citizens to get paid based on oil sales. Just like all people in Alaska get a small check for oil sales. IMO this law is more closely related to and linked to the hcl than the budget law which gets celebrated as being the hcl dozens of times a year in dinarland every time a new one is negotiated and worked on. This law reads to me like they are getting things in order to profit share with the citizens from oil sales...thus we might be close to them legislating the hydrocarbon law. I believe this can will continue to be kicked until we see reforms involving their currency.

Sounds good, thx yota. All part of the hcl sharing the oil revenues. Seems to me currency reform will take place before or around the same time.

Has anyone seen a date for this Arab summit coming up? I’ve only skimmed the articles and seen ‘By Months end’? Might be a good time for announcements ?

Good article, thanks!

Interesting to emphasize this now. Maybe a change in the dinar status to being more internationally convertible would cause concerns about their liabilities and legal protections.

Even after a decade plus of reading the Iraqi news I cant recall if this is normal. From what I can tell from google this holiday is technically only Monday and Tuesday next week so why are they shutting down for the whole week?

The mere fact that they used a unit of 1000 fils still for the new Iraqi currency vs a denomination unit of 100 like the Saudis despite the fact that the new dinar was going to be worth a fraction of a penny tells you the long term plan is to have it worth well over a buck again some day. Doesn't mean our current denominations will be but thats where the "speculation" aspect comes in.

Yota and Luigi, our hard hitting news hounds 😆

I agree that’s the usual song and dance up through them passing a budget but I don’t remember these negotiations after passing a budget? Maybe I’m remembering wrong, thought they usually went to their corners post budget vote and waited a couple months for each side to claim breach in deal. Seems to me this is a break in pattern but I’m not seeing why? Hoping these white paper reforms have something to do with it.

If we can't trust Jamal Cougar who can we trust?

Good morning. What happens on the 29th?

It is sad and many well meaning people dont realize it just makes the rich richer and the poor poorer growing the divide as the price of hard assets and various investment vehicles that the rich can afford go up.

Its a race to the bottom. US cant print fast enough devaluing our currency and causing inflation meanwhile even with that mideast countries move to further devalue their currency against it. 😑

It was a "faith" thing but only because the gov said so, therefor it was a light switch event but not how it is often portrayed in dinarland. Iraq raided banks in Kuwait, currency was stolen. After kuwait was invaded banks were closed and people did not know if the old kuwaiti dinar would even be recognized as legal tender anymore so the street value of it plummeted. Once Kuwait got their banks reopened (only a few months during the uncertainty period) they issued a new currency and a statement that they would honor the old kuwaiti dinar at close to the same rate it was honored pre-invasion. They had blocks of serial numbers from kuwaiti dinar they knew had been plundered from banks but if your kuwaiti dinar was not from those blocks you could turn them in for the new stuff without losing any value. Kuwait never officially devauled their currency or issued any dinar at a lower rate, just a few months of speculation while things were shut down. Thuggie is right.

The Saudi currency is broken down into units of 100 like the american dollar and cents. The Kuwaiti currency is broken down into units of 1000s called fills. Iraqi dinar is still in fills and units of 1000s. Currencies in 1000 units tend to have higher values when compared to the dollar. Iraq will probably one day be above 2 dollars again at least. That doesnt mean they will honor the current issuing of dinar that we hold at that higher value but its reason enough to stay on this ride and see.

That last sentence is really doing a lot of work "and the same problems will remain every year."

Spend some time reading about what a redenomination is. I don’t want to be banished to the lopster tank. Most the time when countries go through a redenomination they try to do it after hyperinflation but when things have normalized. This economist is saying a redenomination won’t fix our current problems and doing so now while things are bad with a large deficit could be extra bad.

It would increase the rate of the new dinar but not the dinar we hold. It’s a redenomination. What you are describing is this, “we devalued by 20% but to make up for it and help the poor we are going to increase the value by 1000% from that point” completely illogical, they could of just increased from the original rate. We want them to liberalize the exchange rate and find ways to increase it. We don’t want two classifications of dinar.