Iraq’s Economic Shake-Up! Oil Exports, Dollar Crackdown & Major Reforms (Uncut) 03-01-2025

 Iraq’s Economic Shake-Up! Oil Exports, Dollar Crackdown & Major Reforms 🇮🇶💰Dinar Holders

hey everyone Cella Smith is out today but she left us with a ton of reports to get through so let’s Dive Right In this week it’s all about Iraq and uh well Ira’s trying to step back onto the world stage yeah a lot to unpack there we’ve got oil we’ve got Financial reforms even some Rumblings about where the dinar is headed okay so let’s start with something that really jumped out of me kurdistan’s oil exports they’re back on after that pipeline shut down yeah we’re talking billions of dollars potentially

flowing back into the Iraqi economy yeah potentially billions but it’s not just about the money right this is about geopolitics too you’ve got you diplomacy years of legal battles over these oil contracts and then this really delicate agreement between Baghdad and herbal it’s a pretty high stakes game high stakes and big money that pipeline closure it’s estimated to have cost Iraq something like 20 7 billion wow that’s not small potatoes and I think for anyone listening you know a stable Iraq with a booming oil sector that could

mean more stable Energy prices globally even absolutely it’s all connected it is okay so let’s move over to finances the National Bank of Iraq yeah just won get this a City Bank Excellence award for its remittance work yeah and to sign they’re trying to integrate into the Global Financial system but then at the same time you’ve got the Iraqi bank for trade saying no more cash withdrawals abroad trying to combat currency smuggling is this like a step forward and then a step back kind of thing well

it might seem that way on the surface but remember the US has been pushing Iraq to you know tighten up those financial regulations they’re trying to make sure dollars aren’t flowing to sanctioned countries Iran for example so this move it’s probably IR Roa trying to appease those demands you know so they’re kind of stuck between a rock and a hard place yeah trying to please International Players but also thinking about their own citizens it makes you wonder how this actually affects Everyday People in Iraq but okay it’s

not all oil and Banks right yeah what about Rock’s push to diversify their economy right they’re really trying to move Beyond just oil they’re looking at localizing Industries Precious Metals For example developing these industrial cities to boost manufacturing and then there’s all this investment in steam power plants which would give them more energy Independence Okay so less Reliance on oil right more control over their own destiny if they can pull it off wouldn’t that make the dinar more stable more attractive to foreign

investors maybe absolutely if they’re successful yeah more stable toar more foreign investment that’s the goal okay so this is where it gets interesting for me on the one hand the UN they’re getting ready to pull out of Iraq by the end of the year but on the other hand you’ve got this increased cooperation between Iraq and NATO specifically in terms of security and military training two seemingly unrelated things but I don’t know I feel like they’re connected some yeah no you’re definitely on to

something think about how these two things are being framed the UN leaving that’s being presented as a sign of stability Iraq doesn’t need that helping hand anymore like a graduation exactly a graduation but then NATO stucks in even if it’s just an advisory role so almost like passing the torch but with different implications yeah and I think it’s a smart move for Iraq because having NATO involved even a little bit it sends a message of stability to the world especially to investors who might be hesitant so it’s about perception as

much as it is about you know what’s actually happening on the ground absolutely perception matters and Iraq is sending a message with these moves we’re open for business we’re stable we’re ready to get back on the world stage it sounds like they’re making some pretty big moves but are they actually on the path to Global recognition are there challenges or not seeing let’s dig into that next it’s a really interesting time for Iraq don’t you think I mean they’re really putting themselves out there trying to make a comeback they are

but with all these big moves and changes it’s easy to forget about the everyday people trying to navigate it all a good economy a stable economy should help everyone right not just the people at the top exactly and I think the Iraqi government is trying to address that they’re putting some interesting programs in place you know things aimed at helping the average person like did you see this plan to roll out digital ration cards yeah digital ration cards what’s the thinking behind that well it’s about making things more efficient

less room for corruption instead of those old paper cards you know the ones that can get lost or stolen or whatever people would have these digital accounts so less paperwork less fraud and the government can track everything more easily too sounds like a win-win right it does on paper but remember we talked about the US pushing for more transparency in Iraq’s Financial system this digital card thing it could be a way to address that too so it’s a way to show the International Community that they’re serious about modernizing about

cleaning things up yeah exactly it’s all connected it really is okay let’s talk about those industrial cities where are they at with that full steam ahead as far as I can tell they’ve set some ambitious goals 5% non-oil GDP growth and they want to get unemployment down to 4% whoa that’s a big jump 5% non-oil GDP growth that’s are they being realistic it’s definitely ambitious but they’re not just throwing money at the problem they’re being strategic they’re setting up special loan programs especially for young entrepreneurs

there’s even going to be a Riata Bank specifically for industrial loans and they’re actively looking for like big International Partners to help with the financing so they’re really trying to create this whole ecosystem right making it easier for people to start businesses get involved but what about the energy piece of all of this can they really become less dependent on foreign fuel while they’re working on it those new steam power plants those are going to be key they’re designed to run on local

fuel sources so that reduces their Reliance on Imports and they’re incorporating Renewables too which is smart thinking about the future okay so more Independents less vulnerable to price swings and they’re doing it sustainably it’s a lot to balance I guess but is anyone else buying into this like the International Community oh yeah definitely over a hundred companies have expressed interest in these energy projects wow so that’s a good sign right means people are taking Iraq seriously okay so let’s recap for a second oil is

flowing again banks are making changes the economy is diversifying at least they’re trying to diversify it and they’re focusing on energy Independence I mean it sounds like they’re really on the upswing but are we being too optimistic what could derail all of this yeah you’re right to be cautious there are still some big question marks like what well that 2025 budget that’s still a huge sticking point they’re trying to negotiate how the oil Revenue gets split between Baghdad and Kurdistan and it’s

getting pretty heated yeah that whole power struggle between the central government and the Kurdish region it always comes back to the oil money it always does and then there’s that pmf law it’s finally making its way through Parliament but it’s really controversi the pmf for anyone who doesn’t know it’s the popular mobilization forces they were crucial in fighting Isis but there are a lot of questions about their role going forward right exactly integrating them into the Iraqi Security Forces is

that’s a really complex issue and how this LW gets implemented it could have a huge impact both in terms of security and how much money they have to spend on it okay so you’ve got the budget the pmf law and then of course there’s always the issue of corruption which has been a problem in irck for a long time yeah and we can’t forget about all the humanitarian challenges the conflict you know really took a toll rebuilding infrastructure making sure people have access to basic Services helping those

who were displaced that’s all going to take time time and resources it’s a good reminder that economic progress is only one piece of the puzzle right you need to address those social issues those humanitarian needs if you want real stability it’s about building a future where everyone can Thrive so where does that leave us is this a comeback story or are we HED for another disappointment I’d say it’s cautious optimism they’ve done some good things they’ve laid the foundation but the hard part is still

ahead they need to address these challenges headon prove to the world that they’re ser ious about creating a stable prosperous future it sounds like the next few months are going to be make or break for Iraq they are the decisions they make now will determine if they really can reclaim their place on the world stage Okay so we’ve talked about a lot but there’s still one piece of the puzzle we haven’t touched on thear will it finally get that International recognition will it become a major player that’s the big question isn’t it

all right so the dinar right everyone wants to know will it can it become a major player on the global stage well let’s be real the dinar has a rough past conflict sanctions all that instability that doesn’t exactly scream reliable currency you know definitely not right but I mean what if all these reforms work could we actually see a strong dinar what would it take for the dinar to gain Global recognition Okay a few things first they need stability political and economic both no more conflicts no sanctions hanging over

their heads and a government that you know actually responsible with its finances so they need to show the world that Iraq is a safe reliable place to invest exactly it’s about trust but then there’s the financial system itself right they need a solid banking sector transparency regulations that meet International standards remember that City Bank Excellence award yeah that’s a start right showing that they’re serious about modernizing playing by the rules but it can’t just be about oil right we

talked about diversification bringing in different of investors how does that affect the din it affects everything if Iraq wants a stable currency one that people respect globally they need a diverse economy Manufacturing tech renewable energy those are the kinds of things that will attract a wider range of investors so it’s about creating an economy that can handle change that’s not just dependent on oil prices but then there’s the darar itself right how do they manage that it seems like a delicate balance it is it’s a balancing

act they need to control inflation make sure they have enough foreign currency reserves and then grad gradually loosen those exchange rate controls too much control stifles growth but too little control and things get volatile so they need to find that sweet spot where the dinar is stable enough to attract investors but also flexible enough to adapt you know exactly okay so it’s complicated there are a lot of moving Parts but are we seeing any signs that the dinar is actually moving in the right direction there are some positive

indicators yeah the reforms they’re making the efforts to diversify the fact that International investors are showing interest again those are good signs but it’s early you know it all comes down to execution so it’s a wait and see kind of situation yeah pretty much the potential’s there but Iraq has to show the world that they’re serious about this a stable prosperous future the din’s Fate is tied to that it’ll be interesting to see how it all plays out it will well this has been a fascinating

look at well everything that’s happening in Iraq right now thanks for breaking it all down for us happy to do it and to everyone listening thanks for joining us on this deep dive cello Smith will be back next week but we hope you found this insightful don’t forget to like And subscribe to Newsroom weekly review hit that notification Bell so you don’t miss an episode and if you’d like to support the channel you can leave a super chat or a super phas back thanks until next time keep learning and keep asking those

tough questions you’ve been watching Newsroom weekly review thank you for being a subscriber and thank you for visiting Newsroom Chella Smith make sure you join us Fridays 400 PM with Newsroom updates with ch Smith entertainment news