Moody's: Iraq's economy is exposed to great risks

[yota691]

Moody's: Iraq's economy is exposed to great risks

Moody's logo in New York. "Reuters"

money and business
   

Moody's, a credit rating company, confirmed that Iraq's economy is highly vulnerable to any decline in oil prices, which constitute 90% of government revenues.

 

She confirmed in a report on the Iraqi economy, obtained by Al-Iqtisad News, that the government accounts are ambiguous and suffer from major shortcomings, as the non-oil sector is hampered by the lack.

 

She added that Iraq needs to reduce corruption and improve public finances, to confront fluctuations in oil prices, explaining that the government’s default on debts owed to the private sector is on the rise, causing investors huge losses.

 

She noted that hydrocarbon wealth is not fully exploited due to years of armed conflict, international sanctions, and insufficient investment.

 

She stressed that these factors, along with the political risks, made us half of Iraq at CAA, especially since 40% of the government debt is long-term local debt taken from the Central Bank and state-owned commercial banks.

 

To download the file on the Iraqi economy, click here

to watch download

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Added 10/11/2023 - 5:39 PM

[Bama Girl]

10 hours ago, yota691 said:

She added that Iraq needs to reduce corruption and improve public finances, to confront fluctuations in oil prices, explaining that the government’s default on debts owed to the private sector is on the rise, causing investors huge losses.

Yep!  Where have we heard this before??  Iraq has a long way before getting itself in financial order! 
The question is: Does Iraq need to be in financial order to revalue its currency? 
I say yes but would love to hear other’s input. I don’t mind being corrected by those who know a lot more than I. 

[md11fr8dawg]

1 hour ago, Bama Girl said:

corrected by those who know a lot more than I. 

Well that wouldn't be me!!!

[3n1]

3 hours ago, Bama Girl said:

Does Iraq need to be in financial order to revalue its currency? 

 

everyone is just speculating BG , imo Saddam's dictatorship rein over iraq was total corruption at the highest degree and iraq was never under 2 dollars and the IQD was not blacklisted it traded internationally, they produced a fraction of oil they do today so no doubt something else is in control of iraq ,, World Bank , USA , IMF who knows whats at play but some other entity controls iraqs destiny ... cheers 

[rvmydinar]

10 hours ago, Bama Girl said:

The question is: Does Iraq need to be in financial order to revalue its currency? 

Did Kuwait need to be in financial order when Kuwaiti Dinar RVed/ RI before??

[horsesoldier]

Might be code for " Another manufactured Crisis coming right up "

😄

[3n1]

On 10/13/2023 at 5:45 AM, rvmydinar said:

Did Kuwait need to be in financial order when Kuwaiti Dinar RVed/ RI before??

 

kuwait was not in financial disorder some try to compare the two countries history, iraq is not in control of their own affairs thats been clear for the last 20 years , so many vast differing factions within iraq and neighboring countries rule them ,

all the best rvmydinar ... we wait 

[rvmydinar]

3 minutes ago, 3n1 said:

 

kuwait was not in financial disorder some try to compare the two countries history, iraq is not in control of their own affairs thats been clear for the last 20 years , so many vast differing factions within iraq and neighboring countries rule them ,

all the best rvmydinar ... we wait 

Thanks for clearing that up. That means that's like comparing apple to orange then.

[horsesoldier]

3 hours ago, rvmydinar said:

Thanks for clearing that up. That means that's like comparing apple to orange then.

More like comparing a juicy Honeycrisp Apple to a blackened fuzzy mold covered Orange.

Yep, I'm in that kinda mood with these Pin Heads today.🤣

[screwball]

On 10/13/2023 at 12:49 AM, yota691 said:

especially since 40% of the government debt is long-term local debt taken from the Central Bank and state-owned commercial banks.

In a GCR this debt gets wiped….

[Theseus]

Please the Kuwaiti Dinar (KWD) never RVd nor RId before or after the war.

 

Quote

Misconceptions About the KWD “Revaluation”

It is surprising how the misconception of a Kuwaiti currency RV is so widely accepted. The truth is that Kuwaiti citizens, United States military personnel, its allies, and private contractors all made substantial profits by exchanging old, black market KWD Series 3 notes for new Series 4 notes. This fact is often overlooked when the financial impact of the Iraqi invasion on Kuwait is discussed.

The Gulf War did have an impact on the KWD exchange rate internationally. The Iraqi invasion led to the KWD’s depreciation to about $2.91 per KWD according to official archives by the International Monetary Fund. However, the KWD remained a relatively stable currency throughout the crisis and continued to be a valuable currency after the liberation of Kuwait.

The table below provides a summary of the KWD exchange rate from 1986 to 1995. It shows that at no point did any “Kuwaiti RV” or a substantial change in value or correction take place. The KWD did not fluctuate internationally in value by more than about 4% from Series 3 notes in pre-war 1989 to Series 5 notes in 1995.

Official IMF KWD Exchange Rates from 1989 to 1995:

Year	USD/KWD Exchange Rate
1989 (Series 3 notes in circulation)	$2.94
1990 (Iraqi invasion)	$2.91
1991 (Kuwait liberated and Series 4 notes issued)	$2.89
1992	$2.93
1993	$3.01
1994	$2.98
1995 (Series 5 notes issued)	$2.98

Conclusion

The data above shows that the KWD exchange rate did not fluctuate significantly during the Gulf War crisis. The international exchange rate of the KWD was never below $2.90 during the crisis. After the liberation of Kuwait, the Kuwaiti government released a new fourth series of KWD notes and allowed citizens and foreign personnel to exchange old KWD notes for new ones at a one-to-one value. The KWD remained a stable currency throughout the crisis and continued to be a valuable currency after the liberation of Kuwait.

My research into the Kuwaiti Dinar both during and after the Iraqi invasion revealed that it was never revalued as widely reported. Instead, the Kuwaiti government reissued its currency notes, allowing the old notes to be exchanged for the new notes at a one-to-one value locally. A very low, black market rate of KWD to US dollar, allowed many individuals to make substantial profits when exchanging the old, low priced notes for new notes at the prevailing high exchange rate.

 

Edited October 17, 2023 by Theseus

[Theseus]

Since Kuwait never Rvd its like comparing dog crap to prime rib. Tasty to the dog that eats its own crap.

Edited October 17, 2023 by Theseus

[NoviceInvestor]

On 10/13/2023 at 10:34 AM, Bama Girl said:

Yep!  Where have we heard this before??  Iraq has a long way before getting itself in financial order! 
The question is: Does Iraq need to be in financial order to revalue its currency? 
I say yes but would love to hear other’s input. I don’t mind being corrected by those who know a lot more than I. 

I agree BG and the way are evolving in the ME  it looks to me is they will be kicking the can down the road for a while yet. I no longer look forward with anticipation that my Dinar will realise any significant value in my remaining years. 
 

[rvmydinar]

8 hours ago, Theseus said:

Please the Kuwaiti Dinar (KWD) never RVd nor RId before or after the war.

Since Kuwaiti Dinar never RVd nor RId, so how much chance do we have for the IQD to RV?

[rvmydinar]

8 hours ago, Theseus said:

Since Kuwait never Rvd its like comparing dog crap to prime rib. Tasty to the dog that eats its own crap.

Could you give us the example of other country that really really RVd / RId before?

[Bama Girl]

On 10/17/2023 at 8:07 AM, rvmydinar said:

Could you give us the example of other country that really really RVd / RId before?

I can’t give you an example because I knew nothing about other currencies before I bought my first Dinar 13 years ago and still don’t. I would like to add a question to your question: Is there any other country who doesn’t have an internationally traded currency? Thanks 

[Officiallytook]

Always remember they tell us one thing but really they're other things happening

[rvmydinar]

6 hours ago, Bama Girl said:

Is there any other country who doesn’t have an internationally traded currency?

Iraq? Iran?

[Theseus]

On 10/17/2023 at 9:07 PM, rvmydinar said:

Could you give us the example of other country that really really RVd / RId before?

Can you?

 

[rvmydinar]

58 minutes ago, Theseus said:

Can you?

 

Nope. I don't know because Iraqi Dinar is my only and first investment in exotic currency. I will plan to invest other exotic currency , like Vietnam Dong or Iranian Rial IF I say again IF this Iraqi Dinar really really RV one day. Again, If I know the example of other country that really RV'd before , I already share with everyone here.

[tjokie]

57 minutes ago, rvmydinar said:

Nope. I don't know because Iraqi Dinar is my only and first investment in exotic currency. I will plan to invest other exotic currency , like Vietnam Dong or Iranian Rial IF I say again IF this Iraqi Dinar really really RV one day. Again, If I know the example of other country that really RV'd before , I already share with everyone here.

Kuwait, post Gulf War.

[rvmydinar]

3 hours ago, tjokie said:

Kuwait, post Gulf War.

But I didn't invest in Kuwaiti Dinar at that time , therefore, I amn't really sure if the Kuwaiti Dinar really RV'ed or RI'ed at that time. By the way , did you invest in Kuwaiti Dinar at that time , did you? How much fold ( 100 folds or 1,000 folds ) did you make profit from the original investment?

[BETTYBOOP]

I REALLY DONT THINK IT IS ANY BODY'S  BUISNESS TO ASK OF SOMEBODY INVESTED IN KUIWAIT OR HOW MUCH THEY POTENTIALLY MADE!!

Edited November 22, 2023 by BETTYBOOP

[rvmydinar]

10 minutes ago, BETTYBOOP said:

I REALLY DONT THINK IT IS ANY BODY'S  BUISNESS TO ASK OF SOMEBODY INVESTED IN KUIWAIT OR HOW MUCH THEY POTENTIALLY MADE!!

Did I ask you? Why didn't you just let tjokie answer my question? I think you are so impolite.

[BETTYBOOP]

20 minutes ago, rvmydinar said:

Did I ask you? Why didn't you just let tjokie answer my question? I think you are so impolite.

 If you had asked me I would have told you the same as hope anybody else does.... it is NONE OF YOUR BUISNESS. you are the one who is rude and impolite