With the twin challenges of #inflation and currency #devaluation playing into a vicious symbiotic cycle, #Iraq|is saw the IQD to USD exchange rate increase to nearly 1600 IQD per dollar on the black market this past week. 🧵1/ 
Though hamstrung by limited options, the Central Bank allowed banks to exchange hard currency at the official 1450 IQD rate, conditional on proof of international travel, increasing liquidity sufficiently to stabilize the rate temporarily - but this isn't a long-term solution. 2/
Inconsistent & conflicting justifications for the IQD's dip from the al-Sudani govt, Coordination Framework & CBI has caused concern nationwide. As the crisis lingers, Framework leaders have begun to call for action, adding to the existing calls from their media mouthpieces. 3/
This week, Fateh leader Hadi Ameri weighed in publicly for the first time, commenting that the currency crisis was evidence of the continuing “economic invasion” of the US. Fissures in the Framework's unity are emerging as well... 4/
as the government’s inability to manage the unplanned devaluation conflicts with the Framework's loud pre- and post-election calls to reverse (former) PM al-Kadhimi's Dec 2020 decision to devalue the dinar (to afford govt salaries during the COVID oil price crash). 5/
RDG understands that during a closed-door meeting in #Basra, PM al-Sudani and Basra MP Mustafa Sanad, an independent that caucuses with the SCF, had a heated disagreement over the misalignment between rhetoric and action. 6/
The current refrain from many different political viewpoints places blame on the US and its role in Iraq’s economy, given that its foreign reserves are held in an account at the New York branch of the Federal Reserve (along with dozens of other countries). 7/
RDG understands that even the PM himself has complained to American interlocutors – indicative that the belief is widespread…but which belies a far more complex reality of Iraq's import-reliant economy, intl banking rules, and global inflation. /end 🧵
• • •
Missing some Tweet in this thread? You can try to
force a refresh
