STATUS OF THE RV
Well the RV has not yet happened in Iraq nor has the reinstatement of the dinar.
As far as the banks are concerned there is still the US Treasury OFAC sanctions in place on the Iraqi dinar.
As you may recall a couple weeks ago, I was told by my CBI contact to expect the new rate on FOREX, however it did not occur, as stated.
So, again this weekend I inquired on my weekly call to Iraq and asked what happened.
I was told it was stopped due to the US Treasury audits of many of the major banks in Iraq.
As a result of these audits banks were denied dealing in US dollars due to their violation of international standards for foreign transfers in 2022.
Fourteen banks were actually included not to deal in the national currency of Iraq instead to use dollars, which is of wide international use.
Although they restricted fourteen banks from dealing constitute only 8% of their dealings, this will not affect the dealings of our other banks, and that the manipulation of speculators in the black market in manipulating the exchange rate of the Iraqi dinar will not continue and will stop soon because of the Central Bank’s call to the government to the necessity of continued monitoring, auditing, and establishing a mechanism to link the imports entering Iraq to the dollars paid out.
What the CBI is doing is to prove the existence of a fundamental and sound external transfer corresponding to its value in order to prevent the use of the black market in obtaining cash dollars from the currency auctions.
So again, this corruption supports the figures for dollar sales on the one hand, and comparing them with the level of domestic demand for remittances and cash on the other hand, shows the existence of a gap that indicates that demand exceeds supply.
Some of this money in the gap of course goes to Iraqis for international traveling expenses, to pay for foreign university education bills, etc.
So don’t let anyone tell you that there is a shortage of dollars in Iraq to pay for imports.
This simply is not true.
The only shortage that is created is when demand exceeds supply intentionally is for the parallel black market.
In an article today they tell us that between 180-200 million dollars are needed in the auctions to support the economy.
Since the auctions have been over this at about 235-250 why do they say the merchants can’t pay their bills because of a shortage of dollars?
They want to keep stealing dollars out of the CBI through these auctions.
The Prime Minister, Mr. Mohamed Shia Al-Sudani, met on Sunday with the Governor of the Central Bank, Mr. Ali Mohsen Al-Alaq, in the presence of the advisors and the General Manager of Investment at the bank.
During the meeting, they discussed the measures taken by the Central Bank with regard to the stability of the currency in the Iraqi market, and the most prominent plans prepared to reform, develop and empower the banking sector to take its role in achieving sustainable development and facing challenges.
Due to all the news media coverage and so-called turmoil caused by the bank sanctions last week (some of it all lies), the parliamentary finance committee revealed on Monday the goal of hosting the Governor of the Central Bank of Iraq Ali Al-Alaq, a day after his meeting with the Prime Minister.
So what happened as a result of this meeting?
The hosted Governor of the Central Bank of Iraq, Ali Al-Alaq, discussed the issue of the increase in the dollar exchange rate significantly in the local market, and the bank’s measures to confront this rise.
I want to pointed out that the parliamentary finance committee does not have any powers on the issue of dollar measures, this is the competence of the executive monetary authority (CBI), and they only have a supervisory role on those procedures and follow up the imbalance, and they will be held accountable for it, and they will have an opinion on the role of the Central Bank in dealing with the dollar crisis during the coming period.
Remember that the CBI told us just a few weeks ago that they had a 4 axis plan to embark on soon to bring the rate of the dollar down and the dinar up.
I believe this was only the first step in this plan and so let’s relax and watch the rest play out.
So, also remember once again those 3 sectors effecting the Stock Market Financial Reforms (Pillars of Financial Reform) in the White Paper.
They were the stock market, banking and insurance sectors.
Do you think that this move to sanction these 14 more banks this past weekend were in line with actions to satisfy the White Paper?
I really feel sorry for those who have already given up on the dinar revaluation since I know for a FACT they must reinstate the dinar to satisfy their plans to revive Iraq and make it hub for the middle east.
This is their plan and they know they have to reinstate the dinar to do it.
This is just not myself speaking but the IMF, World Bank and the CBI.
Don’t give up now we are about to cross the finish line very soon.
Iraq is capable of multiplying sources of national income through multiple sources of economic income in the agricultural, industrial and tourism fields of all kinds, recreational, religious and therapeutic.
It was told to through Iraqi news article years ago that the fees for customs and tariffs alone could rival the revenues from the oil.
So go figure just how rich Iraq could be if it was not for all the corruption.
As far as I know the budget was opened but not much more occurred.
Until now, the federal budget for the current year has not entered into force, due to the failure to issue instructions for its disbursement,” stressing that the citizens of the region are waiting for the implementation of the budget as soon as possible.
Could it be they want to limit the corruption or are they waiting for yet another CBI revaluation or maybe both?
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