Iraq Economic News and Points To Ponder Tuesday Morning 7-1-25

Oil Negotiations Between Baghdad And Erbil Are Nearing A Final Settlement: Resumption Of Exports Is Imminent – Urgent

 Economy Yesterday, | 549  Baghdad Today – Baghdad  The energy advisor at the Patriotic Union of Kurdistan's media office, Bahjat Ahmed, revealed on Monday (June 30, 2025)   significant progress in the ongoing negotiations between the Baghdad and Erbil governments regarding the Kurdistan Region's oil exports, indicating that an agreement is very close.

Details of the expected agreement

Ahmed told Baghdad Today that  the federal government's technical delegation had returned to Baghdad, while another delegation from the Kurdistan Regional Government,  including the chief of staff of the regional government and the Minister of Natural Resources,  headed to the capital for an expanded meeting with Oil Minister Hayan Abdul Ghani.

Ahmed explained that "the results of the negotiations are very positive, and   an agreement is imminent.
 
The issue of resuming Kurdistan's oil exports may be resolved within the current week."

He added,  "The agreement includes Baghdad assuming the debts of foreign oil companies from October 2022 until the date oil exports cease, amounting to $1.2 billion,  in exchange for the regional government delivering 300,000 barrels of oil per day to Baghdad." Ahmed continued,
 
OPEC meeting and increasing Iraq's share
 
"The OPEC meeting scheduled for next month will discuss increasing oil quotas,
including Iraq's, which will allow the region to benefit from its 300,000 barrels per day share."
 
It's worth noting that the Kurdistan Region's oil exports via the Turkish-Ceyhan pipeline were halted in March 2023, following a ruling by the International Court of Arbitration of the International Chamber of Commerce in Paris, which upheld the Iraqi federal government's position as the sole authority  uthorized to manage oil exports.
 
Since then, Baghdad and Erbil have engaged in a series of negotiations aimed at reaching a new agreement that would guarantee the resumption of exports in a legal and orderly manner,
amidst the significant financial losses the region has incurred as a result of the suspension of oil revenues.
 
Political parties hope to capitalize on this opportunity to reach a comprehensive solution,
especially with anticipation of the next OPEC meeting,
which may approve an increase in production quotas,
opening a window to reap the benefits of the region's export capacity.     https://baghdadtoday.news/277481-.html 

“Development Road"... The First Direct Freight Transport Through Iraq
 
Economy    2025-06-28 | Source:  Russia Today   8,755 views Istanbul, Turkey, hosted a ceremony to launch truck transport operations between Turkey, Iraq, Kuwait, Germany, and Jordan.

The ceremony was held on the sidelines of the Global Transport Corridors Forum,
held at the Istanbul Congress Center.  Agency reported Anadolu that  the transit route through Iraq had been closed to transportation since 2003,preventing transit through Iraq.

 She added that with Baghdad implementing the truck system, the transit route was opened,
with three vehicles departing on June 25 to transport goods to Kuwait via Iraq,
marking the first direct shipment to Kuwait in 22 years.
 
Since the transit route through Syria has been closed since 2011,
direct land transport to Jordan has not been possible.

The agency noted that on June 27, 2025, a vehicle carrying goods from Germany was transported to Jordan via the Turkey-Iraq route,  marking the first direct land transport to Jordan in 14 years.
 
Speaking at the ceremony,
Turkish Minister of Transport and Infrastructure Abdulkadir Oraloğlu said
 
they want trucks to travel by land     from Turkey to Iraq,     then Kuwait and Jordan
as the first stage of the "development road."

He added,  "We have made a preliminary start.
This is a rehearsal for the development path.
 
We will have implemented the initial project to maintain the vitality of the corridors.
 
We will track the trucks departing from Türkiye."
 
For his part, Nasser Al-Asadi, advisor the Iraqi Prime Minister's on transportation,
said his country seeks to connect the East and West through its territory. He added,
 
"We fully support the development path and congratulate Türkiye.]

This is the first step, and we await the next steps."
 
The "Development Road" is a land and railway route extending from Iraq to Turkey and its ports.
 
It   is 1,200 km long inside Iraq and
     aims to transport goods between Europe and the Arab Gulf states.     
  
https://www.alsumaria.tv/news/economy/531639/طريق-التنمية-أول-نقل-مباشر-للبضائع-عبر-العراق  

Popular Satisfaction
 
Economic 06/30/2025  Yasser Al-Mutawali  It seems that the agricultural policy in Iraq has achieved good results in the field of providing agricultural crops, especially vegetables, in good abundance and at prices suitable for all segments.
 
This is what I have witnessed with my own eyes and touch as I observe and look on my way to the fruit and vegetable markets, and I see satisfaction on the faces of shoppers regarding the    products and   prices  in the conversations of men and women during the current season,  despite some variation in prices between one seller and another.

However, overall, the prices are acceptable to the consumer on average.
 
It is noteworthy that the
limited-income segments are happy with this achievement when shopping and
they see an increase in the level of shopping on their part.
 
Instead of buying half a kilo of tomatoes, cucumbers, or eggplant,
the purchase has increased to more than a kilo,
which indicates the possibility of purchasing power in the family budget.
 
To get more items.
 
It confirms the truth of what I have gone to, that there is relief
 
Drawn on faces
 
My focus here is on low-income groups, as they are the true indicator of the level of satisfaction with prices.
 
This is because the demands of well-off families remain in acquiring a surplus of what they need,
according to their purchasing power, and this is the reality.
 
This phenomenon indicates the Sudanese people's support and interest in the agricultural sector, as
they are from this class decline first, and
then their specialization as agricultural engineers and their reliance on expert advice.

Veteran Farming.
 
On the other hand, the government's wise policy in dealing with the water issue with neighboring Türkiye has achieved  a somewhat acceptable water level to cover the farmers' water quotas.
 
In addition to the unlimited support for the agricultural sector, both agricultural and irrigation,  
it has had a positive impact on the country's agricultural policy in achieving a balance between imports and local production.
 
We expect agriculture to have a bright future if it continues to achieve this balance,
achieving reasonable prices for consumers, producers, and intermediary sellers.
 
Perhaps one of the results of the development in agricultural policies,
which is a reflection of the unlimited support from the government,
is the increase in the rate of production of strategic crops (wheat, barley, corn, and other crops).
 
Fodder and barley.
 
It must be noted that this support has also been reflected in
     encouraging farmers and agriculturalists to adopt modern irrigation techniques, as well as
     agricultural mechanization,
which the government has supported the provision and importation of,
along with ongoing guidance programs on their uses.
 
We hope to maintain this happy model that   achieves food security and  brings joy to low-income groups in obtaining it. On her daily sustenance easily.      https://alsabaah.iq/116712-.html  

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com

Seeds of Wisdom RV and Economic Updates Tuesday Morning 7-1-25

Good Morning Dinar Recaps,

Texas Declares Gold and Silver Legal Tender Starting 2027

In a bold legislative move, Texas will officially recognize gold and silver as legal tender for day-to-day transactions beginning May 1, 2027, following the signing of House Bill 1056 by Governor Greg Abbott.

Precious Metals Return to the Marketplace

Governor Abbott announced on X (formerly Twitter) that he had signed HB 1056 into law, which amends the Texas Government Code to include gold and silver as recognized legal tender, with their transactional value to be set by the state comptroller at the time of exchange.

“No state shall make any thing but gold and silver coin a tender in payment of debts.”
— U.S. Constitution, Article I, Section 10, cited by Governor Abbott.

Importantly, the new law does not eliminate or prohibit the use of Federal Reserve notes or U.S. dollars, nor does it require individuals or businesses to accept gold or silver for payments or deposits.

Digital Gold, Bitcoin, and Broader Monetary Shifts

The passage of HB 1056 was part of a larger package of financial reforms in Texas. On the same day, Abbott also signed legislation approving the creation of a strategic Bitcoin (BTC) reserve for the state, further positioning Texas at the forefront of alternative currency policy in the United States.

The move comes as several Republican-led efforts in the state push for monetary diversification, from physical precious metals to digital assets like cryptocurrency and potentially even gold-backed digital currencies.

Public Skepticism and Practical Hurdles Remain

While some Texans support the return of gold and silver to daily commerce, others have expressed concern about the practicality and authenticity of such transactions.

“How is the retailer going to protect themselves and ensure the gold or silver coin is authentic and not counterfeit?”  — Reddit user “the_shootist” in response to a similar 2015 proposal

Questions remain around retail compliance, valuation mechanisms, and the logistics of physical asset verification in modern commerce.

Legal and Historical Context

The United States abandoned the gold standard in 1933, when President Franklin D. Roosevelt ordered the return of all privately held gold to the Federal Reserve. Under current constitutional constraints, individual states cannot issue their own currency, but they can recognize precious metals as legal tender—as long as their use remains voluntary.

Texas now joins a growing number of states acknowledging gold and silver in law, though none require businesses to accept them. Some local economies have experimented with “Goldbacks”—privately issued gold-foil notes used in select transactions—though these are not backed by any state or federal entity.

Looking Ahead

While HB 1056 won’t take effect until 2027, it signals a growing push in the U.S. toward currency alternatives, both physical and digital. With Texas now recognizing precious metals as transactional assets and exploring Bitcoin reserves, the state is staking its claim as a leader in monetary innovation.

Whether this movement gains broader traction—or remains symbolic—will depend on implementation, retailer adoption, and the public’s willingness to embrace hard assets in a digital-first world.

@ Newshounds News™
Source: Cointelegraph   

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Ripple Launches XRPL EVM Sidechain, Bringing XRP to Ethereum dApps

In a major step toward blockchain interoperability, Ripple’s XRP Ledger (XRPL) has launched its long-anticipated Ethereum Virtual Machine (EVM)-compatible sidechain, enabling XRP to integrate with Ethereum decentralized applications (dApps) and use XRP as gas.

The launch, announced on June 30, was developed in partnership with blockchain infrastructure firm Peersyst, and marks a strategic move to position XRP at the center of Ethereum’s vast and active DeFi ecosystem.

Multichain Interoperability Begins

“With the launch of XRPL EVM, we’re unlocking a new era for XRP — one where it can flow seamlessly across the multichain world. This isn’t the finish line; it’s Day 1 of a much bigger journey toward interoperability, programmability, and utility at scale.”
— Ferran Prat, Peersyst

The new EVM sidechain allows developers to deploy Ethereum-compatible smart contracts while maintaining the performance and efficiency of the XRP Ledger. It brings faster transaction speeds and lower costs compared to Ethereum—benefits that make it especially attractive for high-volume dApps.

Ripple CTO: A Bridge Between Two Ecosystems

Ripple CTO and XRP Ledger co-creator David Schwartz praised the initiative as a bridge between two powerful ecosystems:

“The XRPL EVM Sidechain introduces a flexible environment for developers to deploy EVM-based applications, while maintaining a connection to the XRPL’s efficiency. It extends the capabilities of the ecosystem without changing the fundamentals that make the XRPL reliable.”

With this move, Ripple aims to expand the utility and developer base of the XRP Ledger, tapping into the broader EVM ecosystem, which includes thousands of existing Ethereum dApps and smart contract developers.

Cross-Chain Infrastructure via Axelar

The new sidechain is connected to the main XRP Ledger via the Axelar bridge, a secure interoperability layer designed for enterprise-grade applications. This integration enables seamless cross-chain operations between XRP and Ethereum-compatible networks.

“Crypto is entering an exciting phase as institutions and enterprises are pursuing compelling new use cases. The XRP Ledger EVM Sidechain is positioned to capture this rising demand, and Axelar is the secure, institutional-grade connector that will make it possible.” — Georgios Vlachos, Axelar Foundation

Institutional and Enterprise Use Cases in Focus

The launch of the XRPL EVM Sidechain is part of Ripple’s broader strategy to attract institutional and enterprise clients, many of whom are exploring multichain solutions to optimize speed, cost, and scalability in blockchain infrastructure.

With XRP now integrated into Ethereum’s DeFi landscape, Ripple aims to position itself as a leading player in cross-chain finance, offering tools that combine the reliability of XRPL with the programmability of Ethereum.

@ Newshounds News™
Source: Crypto.news   

~~~~~~~~~

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“Tidbits From TNT” Tuesday Morning 7-1-2025

TNT:

Tishwash:  Iraq suspends official work next Sunday

Sunday, July 6, 2025, is an official holiday for all ministries and government institutions, coinciding with the tenth of Muharram, the anniversary of the killing of Imam Hussein ibn Ali, the grandson of the Prophet Muhammad and his daughter Fatima al-Zahra, according to the official holidays in Iraq.

The Cabinet Affairs and Committees Department at the General Secretariat of the Cabinet clarified in a statement today, Tuesday, that the holiday came based on the provisions of Article (1/First/C) of the Official Holidays Law (12 of 2024).

Shia Muslims commemorate the martyrdom of Imam Hussein, his family, and his companions in the Karbala massacre, and the commemoration continues until the Arbaeen pilgrimage, forty days after the day of Ashura.  link

Tishwash:  After being withdrawn for security reasons, a portion of the US embassy staff in Baghdad has returned.

 A portion of the US embassy staff in Baghdad has returned to work after being temporarily evacuated due to security concerns surrounding the war between Israel and Iran.

 A video recording on Saturday showed two helicopters landing at the US embassy compound in the Green Zone in central Baghdad, with a number of employees disembarking from them.

On June 12, the day before the outbreak of the 12-day war between Israel and Iran, the US State Department ordered the withdrawal of non-essential staff from its embassy in Baghdad and its consulate in Erbil.

A US official confirmed that additional personnel were withdrawn later on June 21 and 22.

 On June 21, the US Embassy in Baghdad warned its citizens against traveling to Iraq for any reason.

She explained that both the embassy in Baghdad and the consulate in Erbil have temporarily suspended routine visa services, but remain open for consular services to US citizens.

Some news websites close to armed factions in Iraq had previously reported that all US embassy staff had left the embassy compound last Friday.  link

************

Tishwash:  Erbil-Baghdad Salary Deal Nearing Finalization; Oil Export Mechanism Key to Agreement

KRG and Baghdad near deal to resume oil exports and release delayed salaries. A KRG delegation met with top Iraqi officials, including Oil Minister Abdul-Ghani. Baghdad may release May salaries this week; debt to oil firms and export terms remain key issues.

 The Kurdistan Regional Government (KRG) and the federal government in Baghdad are reportedly on the verge of reaching a pivotal agreement that could pave the way for the disbursement of delayed salaries to public sector employees in the Kurdistan Region as early as this week.

According to a well-informed source familiar with the high-level negotiations, a senior KRG delegation has been in Baghdad for three consecutive days holding crucial meetings with Iraqi government officials.

The source, speaking to Kurdistan24’s Dilan Barzan, stated: "A high-level KRG delegation has been in Baghdad for three days and has held a series of top-level meetings with Iraqi government officials. As of 1:00 PM today, Monday, June 30, 2025, the KRG delegation is scheduled to meet with Iraq’s Oil Minister, Hayan Abdul-Ghani, at the Council of Ministers."

One of the central issues under discussion is the mechanism for resuming oil exports from the Kurdistan Region, which were halted following a 2023 ruling by the Paris-based International Court of Arbitration.

The same source told Kurdistan24 that while "Erbil and Baghdad have reached a mechanism for exporting Kurdistan’s oil," several outstanding points of disagreement remain. Nonetheless, expectations are high that a comprehensive agreement will be reached during Monday’s meetings.

Under Iraq’s general budget law, the KRG is required to deliver 400,000 barrels of oil per day to Iraq’s state marketing company, SOMO. However, the current negotiations appear to have adjusted these terms.

The Kurdistan24 source noted: "About 280,000 barrels are to be delivered to SOMO daily, and the remaining 120,000 barrels are to be allocated for internal consumption by both Iraq and the Kurdistan Region."

A major hurdle yet to be resolved is the significant debt owed to oil-producing companies operating in the Kurdistan Region. This debt—estimated to be close to $1 billion—has become a critical issue following the aforementioned court ruling.

"This debt became a sticking point after a 2023 ruling by the Paris International Court. It is hoped that today’s meeting will also resolve this issue, as the companies are unwilling to resume oil exports without first being repaid," the source said.

Meanwhile, optimism remains high that the progress achieved thus far will translate into immediate economic relief for civil servants in the Kurdistan Region.

Sabah Sobhi, a member of the Iraqi Parliament’s Oil and Gas Committee, confirmed to Kurdistan24: "Tomorrow, Tuesday, July 1, 2025, the Iraqi Council of Ministers is scheduled to convene. It is expected that a decision will be made during the meeting to release the salaries of Kurdistan Region employees, with payment for the month of May to be issued by the end of this week."

The potential breakthrough comes after months of tension and repeated negotiations over oil revenue sharing, salary payments, and administrative control, which have strained relations between Erbil and Baghdad. If finalized, the agreement could mark a significant step forward in stabilizing financial relations between the two governments and alleviating public discontent in the Kurdistan Region.  link

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Tishwash:  Uptick in Iraq TIR operations injects fresh momentum into trade flows

Amid threats to transport and trade caused by geopolitical conflicts, IRU’s Secretary General put the spotlight on the continued, and expanding, success of the global TIR transit system at Türkiye’s Global Transport Connectivity Forum 2025.

Polish transport operator the Milton Group recently completed a roundtrip journey from Poland to the Gulf Cooperation Council (GCC) region, via Iraq’s newly operational TIR corridors, in 10 days, compared to 24 days for traditional maritime-based multimodal routes.

TIR operations are also starting from departure points such as Mersin, Türkiye, to the GCC via the Iraqi seaport of Umm Qasr. With TIR, this journey is being completed securely in less than a week, which can take up to 26 days if the ship needs to reroute around Africa.

These are just some examples of what is now possible with TIR via Iraq.

Speaking at the Global Transport Connectivity Forum in Istanbul, IRU Secretary General Umberto de Pretto said, “We have seen a remarkable uptick in TIR transport operations through Iraq, connecting Türkiye with GCC countries, and increasingly, with Iran and beyond.

“The implementation of TIR in Iraq is more than a technical milestone, it is a strategic one. It signals Iraq’s determination to be not just a beneficiary of regional trade, but a key facilitator of it."

At the heart of this ambition is Iraq’s Development Road Project: a transformative initiative that will link the port of Al-Faw in the south to Türkiye and Europe via the north of the country.

“Iraq’s Development Road Project is a statement of intent. A message that Iraq is ready to resume its historical role as a crossroads of civilization, commerce and connectivity. It’s a message that Iraq is now open for business,” said Umberto de Pretto. 

“However, the success of this corridor depends not just on highways and other ‘hard’ infrastructure. It also depends on the ‘software’ of international road transport infrastructure, such as harmonised trade systems, smart borders, and efficient customs regimes. This is where TIR brings tremendous value,” he added.

Beyond the Development Road Project, IRU continues to support the Middle East and Central Asia in building more efficient and resilient transit corridors. IRU is actively promoting the digitalisation of TIR, supporting cross-border training and capacity building, and engaging with governments to simplify transport rules and procedures.

“Despite our progress, we must confront the reality that border bottlenecks, long waiting times, and high transit costs continue to burden trade across the region when TIR traffic is not prioritised. To address these issues, IRU strongly promotes the establishment of TIR-EPD Green Lanes at border crossings,” said Umberto de Pretto.

TIR-EPD Green Lanes use IRU’s electronic pre-declaration tool, TIR-EPD, enabling transport operators to submit cargo information electronically to customs prior to arrival. They have already been successfully implemented in Kyrgyzstan, Moldova, Romania, Saudi Arabia, Turkmenistan, the UAE, and Uzbekistan. TIR-EPD Green Lanes accelerate border crossings by up to 92%, reduce the workload for border officials, and provide greater predictability and security in transport planning.

“The TIR system is not a silver bullet; but it is a powerful enabler. When combined with bold initiatives like the Development Road Project and regional leadership from countries like Türkiye, it can unlock the true potential of global connectivity,” concluded Umberto de Pretto. “Let us work together, not just to move goods, but to move forward.”  link

Mot:  Finally!!! - A Day Off!!!  

Mot:  Ya Ever Wonder!!!??? 

MilitiaMan & Crew: Iraq Dinar-Government-Central Bank-Supreme Court-Budget-Oil-Salaries

MilitiaMan & Crew:  Iraq Dinar-Government-Central Bank-Supreme Court-Budget-Oil-Salaries

6-30-2025

The Crew:  Samson, PompeyPeter, Petra, Daytrader, Sunkissed, GIGI and Militia Man

In this insightful video, we delve into the current state of the Iraqi Dinar and the significant developments within Iraq's banking sector.

 Join us as we explore how the Central Bank of Iraq is actively working to strengthen the financial landscape, implementing robust anti-money laundering measures and enhancing transparency.

We'll also discuss the implications of the recent budget law, the anticipated release of funds, and its impact on various sectors, especially concerning salaries for Kurdistan employees.

 Additionally, we examine the critical role of oil exports, non-oil revenues in how they may be shaping Iraq's economy and how fluctuations in this sector can potentially influence the dinar's value.

Moreover, we take a closer look at the recent changes in the leadership of the Supreme Court and what this means for the rule of law and economic policies in Iraq.

Whether you're an investor, a student of economics, or simply interested in Iraqi affairs, this video provides a comprehensive overview of the challenges and opportunities facing the Iraqi economy today.

https://www.youtube.com/watch?v=Pq7-U7J0hNU

Iraq Economic News and Points To Ponder Monday Evening 6-30-25

Fitch Raises Its Forecast For Average Oil Prices By $5 In 2025.

Energy   Economy News - Follow-up  Fitch Ratings has raised its average oil price forecast for 2020 by $5 for both Brent and WTI, to $70 and $65 per barrel, respectively, amid rising geopolitical risks.

The agency also raised its Henry Hub natural gas price forecast for 2025-2027, reflecting increased exports and lower storage levels.  In contrast, Fitch made no changes to its medium-term and mid-cycle forecasts for European oil and gas prices.

The agency explained that the increase in its short-term oil price forecasts was a result of recent geopolitical events in the Middle East.  https://economy-news.net/content.php?id=56824

Oil Prices Fall As Tensions Ease In The Middle East

Time: 2025/06/30 08:56:19 Reading: 690 times  {Economic: Al Furat News} Oil prices fell 1% on Monday, as receding geopolitical risks in the Middle East and the possibility of another OPEC+ production increase in August boosted supply expectations.

Brent crude futures for August delivery fell 66 cents, or 0.97%, to $67.11 a barrel by 00:31 GMT, ahead of the contract's expiration later today. The more active September contract fell 83 cents to $65.97 a barrel.  US West Texas Intermediate crude fell 94 cents, or 1.43%, to $64.58 a barrel.  LINK

The Ministry Of Planning Discusses Progress On The Electronic Automation Project And The Electronic Payment Application.

Monday, June 30, 2025 14:15 | Economic Number of reads: 190  Baghdad / NINA / The Electronic Automation and Electronic Payment Committee at the Ministry of Planning held a consultative meeting on Monday to discuss the progress made in the field of automation and digital transformation, and the measures taken in this framework within the ministry's departments and formations.

A statement by the ministry said, "The meeting addressed the mechanisms for implementing the directives of the Prime Minister's Office regarding the implementation of the electronic payment system, in addition to reviewing the measures taken during the previous meeting with the ministry's formations, and the level of progress in their implementation."

The meeting also discussed the adoption of the government e-mail within the secure government network, to exchange official correspondence between the ministry's headquarters and its branches in the governorates, which contributes to accelerating procedures and enhancing information security.

The statement indicated that "the meeting discussed the procedures related to the central electronic mail system of the Ministry of Planning, which is supervised by the General Secretariat of the Council of Ministers, with the aim of developing and expanding it for use in all the ministry's departments and formations." /End   https://ninanews.com/Website/News/Details?key=1238288

Government Advisor: Local Medicines Will Cover 70% Of The Country's Needs Within Two Years

Money and Business  Economy News – Baghdad  Hamoudi Al-Lami, the Prime Minister's advisor for industry and development affairs, said on Monday that the pharmaceutical localization program is expected to cover 70% of local demand within two years. He also revealed plans to open three factories producing cancer and blood disease drugs this year.

Al-Lami said, "The local pharmaceutical industry is witnessing continuous growth and now covers 40% of the country's need for pharmaceutical products, including cancer-treatment drugs."

He added, "This year will witness the opening of several pharmaceutical factories currently under construction, including three factories specializing in the production of cancer and blood disease medications."

He pointed out that, "over the next two years, local factories' production is expected to cover 70% of the country's need for various types of medicines."

Al-Lami continued, "The volume of contracts for the purchase of local medicines with the Ministry of Health has increased to 600 billion dinars, in light of Prime Minister Mohammed Shia al-Sudani's continued emphasis on the importance of public-private partnerships in the pharmaceutical industry and production."  https://economy-news.net/content.php?id=56825

Find Out The Dollar Exchange Rate In Baghdad.

economy | 11:49 - 06/30/2025  Mawazine News - Baghdad -  The dollar exchange rate rose slightly on Monday at the Baghdad Stock Exchange and money exchanges.

The US dollar exchange rate was recorded at 141,350 dinars for every $100 in morning trading at the main stock exchange in the capital, Baghdad.

The exchange rate in local markets in Baghdad reached 142,500 dinars for sale, while the purchase price reached 140,500 dinars.   https://www.mawazin.net/Details.aspx?jimare=263268

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

Iraq Economic News and Points To Ponder Monday Afternoon 6-30-25

US Embassy Staff Return To Baghdad After Security Improves

A number of US embassy staff in Baghdad resumed their duties after being temporarily evacuated amid security concerns surrounding the war between Israel and Iran.

A video on Saturday documented two helicopters landing inside the embassy compound in the Green Zone, where a number of staff disembarked, marking a gradual return to diplomatic activity.
The US State Department had ordered the withdrawal of non-essential staff from the embassy in Baghdad and the consulate in Erbil on June 12, a day before the outbreak of the 12-day war.

A US official later confirmed that an additional batch of staff was evacuated on June 21 and 22, at the height of tensions.

The US embassy had warned its citizens on June 21 against traveling to Iraq for any reason and temporarily suspended routine visa services, but it continued to provide consular services to American citizens.

Previous reports from sites close to armed factions in Iraq had spoken of a complete evacuation of the US embassy, ​​but these reports have proven false, with a number of staff now returning amid security reinforcements.   https://www.radionawa.com/all-detail.aspx?jimare=42139

Iraq Ranked Fourth In Economic Growth Among Arab Oil-Producing Countries By 2025.

Money and Business  Economy News – Baghdad   The International Monetary Fund reported on Sunday that Iraq ranked fourth among Arab oil-producing countries with the best economic growth in 2025.

The fund stated in statistics reviewed by Al-Eqtisad News that "Iraq came in fourth with a growth rate of 4.1%, up from 0.1% in 2024."

He explained that "Libya topped the list with economic growth of 13.7%, followed by the UAE with 5.1%, Saudi Arabia with 4.6%, and Algeria came in fifth with 4%."

The fund added that "Kuwait recorded a growth rate of 3.3%, ranking sixth, followed by Bahrain with 3.2%, then the Sultanate of Oman with 3.1%, and Qatar in ninth place with 1.9%." https://economy-news.net/content.php?id=56770

Iraq's Oil Exports To The US Have Declined.

Energy  Economy News - Follow-up  The US Energy Information Administration announced on Sunday that Iraq's oil exports to the US declined last week.

The administration stated in its statistics that "the average US crude oil imports during the past week from 10 major countries reached 5.236 million barrels per day, an increase of 272 thousand barrels per day from the previous week, which reached 4.964 million barrels per day."

She added, "Iraq's oil exports to the United States averaged 183,000 barrels per day, down 30,000 barrels per day from the previous week's average of 213,000 barrels per day."

The administration also noted that "the largest US oil revenues during the past week came from Canada, at a rate of 3.168 million barrels per day, followed by Mexico, at a rate of 397,000 barrels per day, Saudi Arabia, at an average of 346,000 barrels per day, Colombia, at a rate of 325,000 barrels per day, and Brazil, at a rate of 299,000 barrels per day."

According to the table, "US crude oil imports from Libya averaged 240,000 barrels per day, from Nigeria 209,000 barrels per day, from Venezuela 70,000 barrels, and from Ecuador 5,000 barrels per day."
207 views  Added 06/29/2025 - https://economy-news.net/content.php?id=56750

For Its Role In Credit And Anti-Money Laundering, Al-Ahli Bank Of Iraq Wins The "Fastest Growing Bank 2025" Award.

Banks  Economy News – Baghdad  The National Bank of Iraq announced that it has won the "Fastest Growing Corporate Bank in Iraq 2025" award from the International Finance Awards.

The bank said in a statement, "This win is in recognition of the bank's outstanding financial performance and successive achievements, as its total assets have reached approximately 5.2 trillion Iraqi dinars, supported by a strong capital base with a paid-up capital of 520 billion dinars, and recording continuous growth and an increasing market share.

" It indicated that "this honor also reflects the bank's success in achieving an increase in its total revenues and a rise in its net profits, which confirms its sound financial strategies and risk management."

He explained that "the bank excelled in providing a comprehensive suite of banking services and solutions specifically designed to meet the needs of companies and institutions, leading to a significant expansion of its credit facilities portfolio and a growing number of corporate clients.

Its efforts in digital transformation and modernizing its technological infrastructure, including the implementation of the Temenos T24 system and the activation of its anti-money laundering system, were also key factors in its evaluation of the award."

He explained that "the bank has a wide network of branches comprising 38 locations covering various Iraqi governorates, in addition to more than 350 ATMs. Today, it serves more than 400,000 individual and corporate customers, supported by a professional team and strategic partnerships with a number of local and international institutions."

Commenting on this achievement, Ayman Abu Dahim, Managing Director of the National Bank of Iraq, said, "Winning this prestigious award reflects the collective effort and meticulous planning we have adopted over recent years.

We have worked to build a strong foundation for corporate banking, supported by strong financial performance, expanding our network of relationships with the corporate sector, and developing financial solutions that meet their renewed aspirations."

Abu Dahim affirmed the National Bank of Iraq's commitment to continuing its distinguished performance by investing in banking technology, enhancing transparency and governance, and creating flexible and effective solutions that support sustainable growth for its customers and the Iraqi community.

He expressed his pride in the bank's position as one of the most prominent drivers of growth in the banking sector in Iraq and the region.

The National Bank of Iraq is a leading institution in retail banking and payroll services, serving both the public and private sectors. It also offers a comprehensive range of distinguished services designed to meet the needs of companies of all sizes and sectors, including, but not limited to, documentary credits, letters of guarantee, foreign transfers, banking facilities, and specialized cash centers.

To enhance the customer experience, the bank provides a 24/7 call center, in addition to a dedicated relationship manager to serve each customer individually, ensuring a prompt and effective response to all inquiries and needs.

It's worth noting that the bank has received strong financial ratings from internationally recognized agencies, including a BB rating from Capital Intelligence and a B3 rating from Moody's. Additionally, the Central Bank of Iraq has rated the National Bank of Iraq as "very good," confirming its operational excellence.

With a strong focus on international banking and trade finance, the bank has built an extensive network of correspondent banks, positioning it as a gateway for companies to connect to global markets.  367 views Added 06/29/2025 - https://economy-news.net/content.php?id=56765

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

Seeds of Wisdom RV and Economic Updates Monday Afternoon 6-30-25

Good Afternoon Dinar Recaps,

BRICS Aims To Topple US Dollar With a Currency That Doesn’t Exist

While headlines claim that a new BRICS currency is poised to dethrone the U.S. dollar, the reality tells a very different story: the currency doesn’t exist—at least not yet. What is being presented as a revolutionary step in de-dollarization is, for now, a political spectacle without substance.

A Currency Born From Hype—Not Policy

During the 16th BRICS summit in Kazan, Russian President Vladimir Putin unveiled what appeared to be a new BRICS banknote. The dramatic reveal sparked headlines and speculation about a fast-tracked effort to create a common currency for cross-border trade.

However, after inquiries from journalists, officials clarified that the bill was merely a mock-up, a publicity stunt with no real monetary backing. According to sources close to the event, the display was designed to “grab eyeballs,” rather than mark any true policy milestone.

In truth, no such BRICS currency exists—and no concrete development is underway.

India Confirms: Currency Talks Are Still in Infancy

Adding to the confusion, India’s BRICS Sherpa recently admitted that talks on a shared currency are still in “very early stages.” No drafts have been circulated. No frameworks have been agreed upon.

And more importantly, India has already signaled strong opposition to a shared banknote with China. Officials in New Delhi have expressed concerns that such an arrangement would serve Beijing’s interests disproportionately—undermining India’s own monetary autonomy and risking significant economic repercussions.

“India cannot support a currency that helps China undermine the U.S. dollar while harming its own economic base,” analysts noted.

Internal Friction Undermines BRICS Currency Ambition

Despite public declarations of unity, deep cracks within the BRICS bloc threaten the future of any shared currency:

▪️ India opposes China-led monetary dominance.
▪️ No operational design or reserve structure has been proposed.
▪️ National interests remain divided across economies that rely on USD-based trade.

Even if the BRICS currency materializes in the future, internal disunity could doom it from the start. Without alignment from key players like India, any such currency may lack credibility and liquidity in global markets.

Conclusion: BRICS Currency Remains a Phantom

The BRICS alliance may be vocal about challenging the U.S. dollar’s supremacy, but as of now, their most potent weapon—a shared currency—is purely fictional. The Kazan summit offered more theater than substance, and the much-hyped “BRICS banknote” remains a symbolic gesture rather than a real instrument of change.

For now, the BRICS currency is more myth than monetary threat.

@ Newshounds News™
Source: Watcher.Guru

~~~~~~~~~

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Iraq Economic News and Points To Ponder Monday Morning 6-30-25

From The Central Bank: Initial Indications Of An Impending Economic Recession In Iraq
 
Baghdad Today – Baghdad  Economic expert Manar Al-Obaidi revealed on Thursday (June 26, 2025) that the  Central Bank of Iraq recorded a 4% decline in total US dollar sales during the first five months of 2025, compared to the same period in 2024. He warned that this decline could be an early indicator that the Iraqi market is entering a recession.

Al-Obaidi said, in a clarification followed by "Baghdad Today," that "the Central Bank's total dollar sales amounted to $31.5 billion during the first five months of 2025, a decrease of approximately $1.3 billion compared to sales during the same period in 2024, which amounted to $32.9 billion."

He pointed out that "the decline was primarily concentrated in cash dollar sales, which fell by 17%,
reaching only $1.3 billion compared to $1.55 billion last year, while dollar sales via the "Currency Balances Enhancement" mechanism saw a 38% increase, reaching $30.2 billion, compared to $21.9 billion in the corresponding period."

 Al-Abidi added, "The direct foreign transfer mechanism, previously used under what is incorrectly known as the 'auction,' has completely halted this year, after recording $9.4 billion in the same period in 2024."

He explained that "dollar sales used to settle international payments via electronic cards declined from $1 billion in January to just $261 million in May, due to restrictions imposed by the Central Bank and the inability of some banks to complete settlements."

Al-Obaidi emphasized that "this decline in sales, despite the decline in the exchange rate on the parallel market, reflects a decline in commercial demand and economic activity, which increases the likelihood of an economic recession, especially with inflation rates falling to 1.1% in April 2025, the lowest level in years."      https://baghdadtoday.news/277366-.html    

The Central Bank Concludes A Course On Basic Standards For Detecting Counterfeit Currency.

 June 29, 2025  The Central Bank of Iraq's Basra branch concluded the "Basic Standards for Detecting Counterfeit Currency" course.   The course, organized by the Central Bank's Banking Studies Center, lasted three days, from June 23-25, 2025.

 The course was attended by 13 government and private banks from the southern governorates.

 It also covered key aspects related to recent developments in  detecting counterfeit currency and its      basic standards.

For their part, the participants praised the training courses organized by the Central Bank of Iraq for their significant impact on developing their job performance.   Central Bank of Iraq  Media Office  June 29, 2025  https://cbi.iq/news/view/2921

Iraq Seeks To Reduce Gas Flaring To Zero.
  
Energy  The Ministry of Oil announced on Wednesday the government's efforts to
     increase associated gas investment rates and
     reduce flaring rates,
     achieving zero flaring, while also
     increasing liquefied natural gas production and exports to
     generate additional revenue for the state treasury.
 
“The government and the ministry are keen to
     increase the investment rates of associated gas from oil fields and work to
     reduce gas flaring to low levels, leading to
     zero flaring in the next few years,

in addition to
     increasing the production and export rates of liquefied gas to
     generate additional revenues for the state treasury,” said Ezzat Saber Ismail, Undersecretary of the Ministry of Gas Affairs, during a leadership meeting for the gas sector, attended by heads of relevant companies and departments at the ministry’s headquarters. 

He added,  "The gas investment sector has achieved advanced levels of production, as national companies have been able to raise gas investment quantities to 71%, through the implementation of a number of projects that aim to achieve the Ministry's plans in this regard."

 He pointed to "the interest the gas sector receives from Prime Minister Mohammed Shia al-Sudani and Oil Minister Hayan Abdul-Ghani al-Sawad," expressing his hope that
 
"the ministry will achieve its goals through projects implemented by national companies in cooperation with specialized international companies, particularly in the Maysan, Buzurgan, Gharraf, and Nasiriyah fields in Dhi Qar, Artawi, Nahr Bin Omar, and the integrated gas project with Total in Basra, in addition to the projects of the fifth licensing rounds."
 
The Undersecretary of the Ministry stressed the
     "need to enhance liquefied natural gas storage capacity by
     accelerating the implementation of ongoing and planned projects in a number of governorates,
     in order to strengthen the integrated infrastructure of this sector,
 
which has witnessed significant achievements in projects to
     increase production, storage, export capacities, and distribution outlets." He explained that
 
"the Ministry has recently succeeded in implementing a number of gas pipeline projects to power plants, which aim to achieve high flow rates in the transport and pumping of gas."

The statement added,  "The meeting included a review of the
     projects being implemented within the ministry's programs and plans, the
     percentages of completion achieved, dry and liquid gas production rates,
     storage energy projects, the  pipeline network, and
     gas transportation to power plants, in addition to the topics included on the agenda."  
views 143     Added 06/25/2025 - https://economy-news.net/content.php?id=56606  

The Dollar Continues To Decline In Baghdad Markets.

Economy | 11:54 - 06/29/2025   Mawazine News - Baghdad -  The US dollar exchange rate witnessed a slight decline in Baghdad's local markets on Sunday.

The dollar price fell on the Al-Kifah and Al-Harithiya stock exchanges to 141,250 Iraqi dinars for every $100, while yesterday, Saturday, it recorded 141,300 dinars for every $100.

The selling prices in the exchange sector in Baghdad's local markets also recorded stability, as the selling price reached 141,300 Iraqi dinars for every $100, and the buying price reached 140,800 dinars for every $100.   https://www.mawazin.net/Details.aspx?jimare=263230

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

Seeds of Wisdom RV and Economic Updates Monday Morning 6-30-25

Good Morning Dinar Recaps,

The End of Bank Branches: How Europe’s Digital Euro and Stablecoins Are Reshaping Finance

The financial world is undergoing a radical digital shift—and physical bank branches are quickly becoming obsolete.

Banking Faces a Digital Reckoning

The slow disappearance of local bank branches across Europe reflects a much deeper transformation. Digitalization, AI, and automation are now reshaping how we work, shop, and save—leaving traditional banking struggling to keep pace.

▪️ In Germany, over 560 branches were closed in 2023 alone, a 2.8% drop.
▪️ This is part of a decades-long contraction: from nearly 60,000 branches in the 1990s to just 18,933 today.
▪️ High rents, shrinking populations, and the dominance of e-commerce have hit brick-and-mortar services hard.

The quiet death of Germany’s bank branches is just one symptom of this evolution—but it's a global story now playing out in real time.

Deutsche Bank: Leading the Downsizing

In March, Deutsche Bank announced a wave of layoffs and branch closures.

“We are witnessing a fundamental transformation in the German banking sector,” said CEO Christian Sewing.

▪️ The bank will cut 2,000 jobs and shutter a “significant number” of branches this year.
▪️ Client consultations are moving to video calls and digital platforms, trading human interaction for efficiency.

This paradigm shift threatens the personal trust built through face-to-face banking—once considered the bedrock of retail finance.

Crushed by Policy, Not Just Progress

Technological change is not the only culprit. The European Central Bank’s (ECB) ultra-loose monetary policy has had devastating effects:

▪️ More than a decade of negative interest rates crushed banks’ ability to earn profit through traditional lending.
▪️ Banks were squeezed by regulatory costs, penalty interest, and flattened yield curves.
▪️ The ECB’s moves helped heavily indebted Eurozone countries like Spain, Italy, and France—but at the expense of private banks and savers.

The branch closures, layoffs, and pivot to digital aren’t just market-driven—they are also policy-driven.

Stablecoins and the Digital Euro: The Final Blow?

The next major disruption comes from stablecoins and the proposed digital euro—two innovations that could sideline banks entirely.

▪️ Stablecoins, pegged to fiat currencies, offer fast, low-cost global payments—no need for banks or wire transfers.
▪️ DeFi (Decentralized Finance) lets users transact via smart contracts, bypassing traditional credit and payment systems.
▪️ As adoption spreads, the need for checking accounts, branches, and bank-issued cards may vanish.

The digital euro, being developed by the ECB, may deliver the final push:

▪️ It’s programmable, blockchain-based, and bypasses commercial banks entirely.
▪️ Retail customers could hold digital euros directly in digital wallets—making bank intermediaries irrelevant.
▪️ Bank branches, long seen as hubs of trust and cash access, could become completely redundant.

A New Financial Era

Europe's digital currency ambitions and the rise of decentralized technologies signal a permanent departure from legacy banking infrastructure. In this new landscape:

• Banking becomes faster—but more impersonal.

• Traditional financial institutions lose control.

• Retail customers migrate to central bank-backed platforms.

The local branch, once a staple of every town square, may soon be no more than a memory.

@ Newshounds News™

Source: ZeroHedge

~~~~~~~~~

US Dollar Faces Historic Stress Test as BIS Issues Dire Warning on Global Fragility

The U.S. dollar, long considered the world’s most reliable safe haven, is facing a historic credibility crisis as global financial trust deteriorates. Amid rising policy turbulence in Washington, the Bank for International Settlements (BIS) has issued a stark warning on the fragility of the global economic order.

BIS: “New Era of Heightened Uncertainty”

At the BIS Annual General Meeting in Basel on June 29, General Manager Agustín Carstens declared that a once-promising recovery is now faltering.

“The global economy has entered a new era of heightened uncertainty,” Carstens warned, noting a reversal from earlier optimism driven by easing inflation and modest growth.

The catalyst: U.S. policy chaos. A sudden pivot toward broad-based tariffs and aggressive fiscal expansion has shocked global markets—undermining confidence and weakening the dollar’s standing.

Dollar Depreciates as Yields Rise—An Alarming Signal

“The US dollar depreciated even as government bond yields rose—an extraordinary, troubling combination,” Carstens stated.

▪️ Typically, rising yields strengthen the dollar.
▪️ This time, however, investors fled the currency, shaken by erratic policy shifts and unpredictable rhetoric from Washington.
▪️ Market volatility soared, and the dollar’s safe-haven image cracked.

Carstens added that discussions about penalizing foreign holders of U.S. securities, challenges to central bank independence, and legal system uncertainty further deepened the crisis.

Structural Risks and Global Fragility

Carstens emphasized that the world’s financial system was already under stress:

• Weak productivity growth

• Unsustainable fiscal positions

• The rise of unregulated non-bank financial institutions (NBFIs)

Now, tariff-driven trade fragmentation is making matters worse, fueling inflation and limiting economic flexibility.

“These measures often fail to achieve intended goals and instead deepen structural challenges,” Carstens warned.

He called for credible reforms aimed at:

▪️ Reducing trade barriers
▪️ Improving regulatory clarity
▪️ Investing in public infrastructure to support sustainable growth

A Call for Financial Reform in the Digital Age

Carstens also turned his focus to emerging technological threats and opportunities:

“Major innovations like the entry of big tech into finance, central bank digital currencies, and artificial intelligence are challenging and reshaping the financial system.”

He warned that unregulated innovation could magnify systemic risk, particularly if NBFIs continue to operate without proper oversight.

To meet this moment, Carstens proposed a new global financial architecture built on:

▪️ Tokenized central bank reserves
▪️ Government bonds integrated into digital ecosystems
▪️ Stronger oversight parity between banks and non-banks

The goal: restore trust, increase transparency, and future-proof global finance.

Conclusion: A Turning Point for the Dollar

As market dynamics shift and investor confidence wanes, the dollar’s status as a global safe haven is being seriously questioned for the first time in decades. The BIS’s warning is clear: without serious reform, the world may be heading into a prolonged era of economic instability and fragmentation.

The dollar isn’t just facing market pressure—it’s confronting a global reckoning of trust.

@ Newshounds News™
Source: Bitcoin.com

~~~~~~~~~

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“Tidbits From TNT” Monday Morning 6-30-2025

TNT:

Tishwash:  A significant decline in the volume of foreign loans, and Iraq is in the green side in international credit standards.

Iraq's external financial policy has improved its global credit rating, with external debt declining to approximately $10 billion. Despite the rise in domestic debt, economists assert that it poses no risk, thanks to the government's ability to set interest rates and schedule repayments.

The Iraqi government's foreign financial policy appears to be improving, as evidenced by a decline in foreign borrowing rates. This decline raises Iraq's global credit rating, which is based on the size of the debt and the country's ability to repay interest.

Economist Abdul Rahman Al-Mashhadani says, "The decline in external debt is a positive indicator, and it is not measured in this year, but rather over the past three years, when it fell to less than $30 billion, putting Iraq in the green."

Meanwhile, figures show an increase in the value of domestic debt, which the government has borrowed from financial institutions to finance projects and cover the financial deficit in the annual budgets. However, economic readings confirm that domestic loans do not pose a risk, given that the government determines the interest rate and carefully sets the repayment schedule. However, they remain within the framework of debt that must be repaid. Based on this, the Parliamentary Finance Committee emphasizes the need to deal with the available financial liquidity.

Finance Committee member Moein Al-Kadhimi said, "Based on what the government has at its disposal, it must act within its limits. This way, there is no budget deficit, there is ongoing funding for projects, and no new projects are initiated, while simultaneously funding the operating budget."

The size of foreign loans amounts to approximately $10 billion, which currently places Iraq at a (B-) rating, given that the size of foreign loans for 2023 exceeded $20 billion. This means that this decline is attributed to the government's good handling of foreign loan repayments, placing Iraq at a better credit rating than before.  link

************

Tishwash:  Kurdistan employees' salaries will be paid within the next two days.

An informed government source revealed, today, Sunday (June 29, 2025), that the federal government will pay May salaries to Kurdistan employees within the next two days.

The source told Baghdad Today, "The federal government will pay the salaries of the region's employees within the next two days, even before the oil agreement is finalized, for humanitarian purposes."

He added, "If an oil agreement is reached between Baghdad and Erbil, the audit and accounting department of the federal Ministry of Finance will review the lists sent by the regional Ministry of Finance, and within days, will release the June salaries."

He pointed out that "the federal government delegation pledged that the region's salaries would be paid monthly, along with those of employees in other Iraqi governorates, without a single day's delay, subject to the oil agreement and the delivery of 50% of domestic revenues, provided they are digitally deposited into the Ministry of Finance's bank account daily."  link

************

Tishwash:   Iraq's trade landscape: The private sector accounts for the largest share of imports.

The Central Bank of Iraq announced, on Saturday, statistics on the volume of Iraq's imports for the first quarter of 2025.

The bank stated in its statistics that "Iraq's imports amounted to $21 billion and 363 million," indicating that "imports included both the government and private sectors."

He added that "government sector imports amounted to $1.377 billion, while private sector imports amounted to $19.985 billion."

He pointed out that "government imports included consumer imports, capital imports, petroleum product imports, other government imports, and currency printing," while "private sector imports included consumer imports and capital imports."  link

Tishwash:  You Can Visit between 1 and 5 PM....

Mot:  and Another Way to Look at it!!  

Iraq Economic News and Points To Ponder Sunday Afternoon 6-29-25

Iraqi Dollar Smuggling 'Turns Regional' Amid High Iranian Demand For Greenbacks
 
Iraq / Economy     Amwaj.media  An Iraqi man counts US dollar bank notes in Baghdad on May 4, 2020. (Photo via Getty Images)   Jun. 24, 2025   The story: Iraq has recently been riled by reports of a multi-billion dollar cash smuggling scheme allegedly orchestrated by Iran and its allies. Apparently aiming to circumvent US sanctions, the controversy has sharpened attention to Iran’s extensive regional shadow economies in Iraq. Emerging shortly before the recent attacks on Iran by Israel and the US, the crisis has led to intense scrutiny on ties between Tehran and Iraqi armed groups. 

The coverage: Dollar smuggling from Iraq to Iran, and between other regional countries, has been a well known practice in Iraqi banking and political circles for over a decade.
 
●    However, citing Iraqi and US sources, a recent Wall Street Journal report has drawn attention to the claimed scale, ingenuity and organization of the enterprise—and Iran’s allegedly central role in orchestrating it.
 
●    A reported arbitrage scheme has apparently involved Iran-linked smugglers acquiring large quantities of Mastercard and Visa prepaid debit cards.
 
Leveraging Iraq's informal dual exchange rates, couriers are reported to have withdrawn greenbacks at the official rate at ATMs primarily in Jordan, Turkey and the United Arab Emirates (UAE).
 
●    The couriers are claimed to then return to Iraq and use ubiquitous money exchange kiosks to convert the cash to dinars at the higher unofficial exchange rate.
 
●    As a result of these alleged activities, cross-border card transactions reportedly surged from 50M USD to 1.5B USD monthly between early 2023 and Apr. 2023, generating an estimated 450M USD in profits in 2023 alone.
 
https://flo.uri.sh/visualisation/12677369/embed?auto=1
 
The reactions in Iraqi media and on social networks have broadly been one of frustration, with critics leveling anger at Iran’s armed allies—and at Iraqi and international regulators for seemingly turning a blind eye to the trade.
 
●    As anger mounts, one Iraqi political observer speculated in a post to Twitter/X that the funds may be used in Iran to pay pensions to government beneficiaries.
 
Other Iraqi outlets noted how the currency trade, exacerbated by recent regional instability, has weakened the Iraqi dinar.
 
●    One Iraqi analyst told Erbil-based Rudaw that exchange rate spikes “hit ordinary people the hardest,” as they drive up the prices of staple goods and services.
 
The context/analysis: The alleged profiteering from Iraq’s effectively dual exchange rates appears to be the latest evolution in a longstanding pattern of sanctions evasion schemes by Iran and its regional allies.
 
●    Prepaid cards are particularly attractive for such schemes because they offer anonymity, require minimal identity verification, provide global reach through payment networks and allow for discreet transport as alternatives to large volumes of cash.

Earlier currency smuggling schemes in Iraq were reportedly scaled dramatically through the Qi Card salary distribution system. Partnered with Visa and Mastercard, the network serves millions of government employees, including members of the Popular Mobilization Units (PMU).
 
●    Thousands of PMU employees receive state salaries through Qi Cards, with some commanders reportedly seizing subordinates' payment cards, or creating fake identities to obtain additional payouts. https://datawrapper.dwcdn.net/hTN42/14/
 
In late 2022, the US Treasury and Federal Reserve clamped down on allegedly fraudulent wire transfers from several Iraqi banks amid concern over dollar smuggling.
 
●    Those new restrictions are believed to have forced Iraqi armed groups to pivot to prepaid debit cards and the exploitation of regional banking networks.
 
Adding to the controversy, both Mastercard and Visa have allegedly profited significantly from the current alleged scheme, reportedly earning collectively around 120M USD through transaction fees of 1% to 1.4% on cross-border transactions.
 
●    Both Mastercard and Visa have been accused of delaying enforcement calls for action from the US Treasury for months. This is claimed to have allowed transactions to continue, ranging from 400M USD to 1.1B USD monthly until early 2025.
 
Adding to the rising awareness of the problem, anecdotal reports have suggested long lines of Iraqis at ATMs in regional countries withdrawing large amounts of cash.
 
●    However, such reports have been apparently dismissed by Iraqi officials as negligible and blamed on “criminal gangs.”
 
    Central Bank of Iraq (CBI) Governor Ali Al-Allaq in April stated that
 
his institution was targeting the “Visa and Mastercard card problem abroad,” although he emphasized that  the crisis stemmed from “misunderstandings.”

State-owned banks in Iraq
Agricultural Cooperative Bank of Iraq  Founded: 1935
Alnahrain Islamic Bank  Founded: 2012
Bank of Iraq  Founded: 1948
Industrial Bank of Iraq  Founded: 1941
Rafidain Bank  Founded: 1941
Rasheed Bank  Founded: 1988
Trade Bank of Iraq  Founded: 2004
Source: News agencies • Collated by: Amwaj.media
 
The future: The apparent dollar smuggling enterprise has seemingly fallen off Washington's radar for now,
 
as attention has shifted to the renewed outbreak of conflict between Iran and Israel
—and more recently the US bombing of Iranian nuclear sites.
 
●    Yet, the effects on Iraq’s banking sector may be long-lasting, as seen in a broader tightening of oversight over the financial sector.
 
●    Regulatory institutions have implemented monthly caps of 300M USD on all cross-border transactions and limited individual cardholders to 5,000 USD monthly.
 
The US Treasury's blacklisting of three Iraqi card issuers and the blocking of over 200,000 apparently fraudulent cards represent the most significant enforcement actions against allegedly Iran-linked illicit financial networks to date.
 
●    However, the historical pattern of adaptation suggests that new loopholes will likely emerge and be exploited for as long as there is high demand for US dollars.
 
Nevertheless, the controversy over the prepaid debit cards has accelerated banking sector reform in Iraq, with comprehensive regulatory changes scheduled for implementation beginning in early 2026.
 
●    The CBI has announced reforms that include unified regulatory frameworks, enhanced anti-money laundering capabilities and mandatory compliance with international standards.     
  
https://amwaj.media/en/media-monitor/iraqi-dollar-smuggling-claimed-to-turn-regional-amid-high-iranian-demand-for-gree  

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/