By John Lee. The Kurdistan Regional Government (KRG) has said that customs duties and taxes at border crossings will now be levied exclusively in Iraqi dinars instead of US dollars. Full statement from the KRG: According to Decree No. 227 of the Council of Ministers, dated September 20, 2023, customs duties and taxes at border crossings will now be exclusively levied in Iraqi dinar instead of US dollars. Non-compliance with this new regulation will result in penalties. This decree, issued in accordance with Article 8 of the Kurdistan Regional's Council of Ministers Law (amended No. 3 of 1992 ..read more

By John Lee. Iraq will require that all transactions inside the country are made using the Iraqi dinar from 2024, and not the US dollar. Statement from the Central Bank of Iraq (CBI): In a significant development, the Central Bank of Iraq, under the leadership of Mr. Ali Mohsen Al-Alaq, has revealed its plan to cease external transfers in the coming year, opting instead to rely on correspondent banks for international transactions. Currently, 60% of transfers (excluding those on the central bank's electronic platform) are processed through correspondent banks, with an impressive execution rate ..read more

By Ahmed Tabaqchali, Chief Strategist of AFC Iraq Fund. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News. Banks to Fuel the Market's Next Phase The market, as measured by the Rabee Securities RSISX USD Index, was up 16.3% for the month and up 65.5% for the year. As argued here over the last few months, most recently in "Market Rallies as it Begins to Discount the Budget's Passage", that the 2023-5 budget following its passage in June would lead to sizeable liquidity injections into the economy. This in combination with the positive ..read more

By Ahmed Tabaqchali, Chief Strategist of Asia Frontier Capital (AFC) Iraq Fund, for the London School of Economics (LSE) Middle East Centre. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News. The Dinar, and the Conundrum over the Dollar and Iran A report in a major US publication that the US Treasury Department and the Federal Reserve Bank of New York banned 14 Iraqi banks from conducting cross-border dollar transfers rekindled misconceptions, and conspiracy theories that the Central Bank of Iraq (CBI)'s 'Foreign Currency Selling Win ..read more

By David S Cloud, for the Wall Street Journal. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News. Iraq Cracks Down on Dollar Smuggling Under Pressure From U.S. Washington aims to stop the flow of dollars to Iran. Click here to read the full article (subscription required). The post Iraq Cracks Down on Dollar Smuggling first appeared on Iraq Business News ..read more

By John Lee. Dozens of people have reportedly protested in front of the offices of the Central Bank of Iraq (CBI) in Baghdad following a fall in value of the Iraqi Dinar (IQD) against the US dollar. Over the previous two days, the dollar is said to have risen from 1,470 dinars to 1,570 dinars. According to Associated Press, bank owners called for "official action" to prop up the dinar. Last week the US banned 14 Iraqi banks from conducting dollar transactions. More here. (Source: Associated Press) The post Depreciation of Iraqi Dinar sparks Protests first appeared on Iraq Business News ..read more

By Sinan Mahmoud for The National. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News. Iraqis banned from dealing in US dollars The Iraqi Interior Ministry has banned people from dealing in US dollars in the latest move by authorities to control a fluctuating black market exchange rate. Click here to read the full article. The post Iraqis banned from dealing in US dollars first appeared on Iraq Business News ..read more

By John Lee. The Prime Minister of Iraq, Mr. Mohammed S. Al-Sudani (pictured), has said the he anticipates the exchange rate between the Iraqi dinar and the US dollar will stabilize at the official rate of 1,320 IQD. Speaking at the Iraq Forum for Stability and Prosperity in Baghdad last week, he also said that Iraq's current financial situation is the best it has been in recent years. He added that illicit trading through the Foreign Currency Selling Window was prevalent until the introduction of the electronic platform, which effectively stopped it. (Source: Media Office of the Prime Ministe ..read more

By David S Cloud, for the Wall Street Journal. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News. Iraqis Fly to Nearby Countries to Get Dollars as U.S. Cracks Down on Money Laundering The cash-driven economy relies heavily on the greenback for transactions. Click here to read the full article (subscription required). The post Iraqis Fly to Nearby Countries to Get Dollars first appeared on Iraq Business News ..read more

By Ahmed Tabaqchali, Chief Strategist of AFC Iraq Fund. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News. Tag Ends of Currency Upheaval Sparks Market Rally The market, as measured by the Rabee Securities RSISX USD Index, was up 12.5% for the month, and up 36.7% for the year. The market's solid performance for the second month in a row on the back of February's super performance, enhanced by a revalued currency, underscores the underlying strength of the recovery that has discounted the currency's upheaval, as discussed here recently ..read more