"STATUS OF THE RV" BY DINAR IRAQ & DONG VIETNAM, 18 AUGUST

 STATUS OF THE RV

Here is what was told to me by my CBI contact when I asked these questions yesterday on my weekly call to Iraq:

“As of April 17, 2021 • Basel III rules move physical gold from being considered a Tier-3 asset to being considered Tier-1, which allows physical gold in bullion form to be counted at 100% value for reserve purposes.

All forms of gold, including physical, are required to be at least 85-percent funded with Tier 1 capital in accordance with the Net Stability Funding Ratio (“NSFR”) introduced in Basel 3”.

Remember that Tier 1 capital is not just Gold.

So there is not definitive ration for only Gold to total Tier 1 assets.

I was also told: “that the 113 billion in reserves, the CBI keeps bragging about, is all in US dollars today in the JPMorgan Chase Bank, N.A in NYC and does not include the billions of Gold reserves, which is additional.

Even though Ali Alaq makes reference to backing the dinar with US dollars he knows this is not a safe way to back the dinar in the long run and this will change to a mixture of a foreign currency basket of 6 developed countries.”

In 2011 the plan for the dinar was outlined and included eventually going to a basket of 5 currencies and not just solely the US dollar.

They told me there is now 6 currencies in the basket.

What does all this mean to us as investors?

It means that the CBI is still on track with the 2011 plan and is moving ahead with it.

By reserving gold, they are moving to meet the Basel 3 rules.

So once again the news, if you were paying attention to an article of an interview with Ali Alaq, he told us the future vision of the Iraqi dinar.

It is backing the dinar with GOLD!

No longer just the dollar.

Yes, we can definitely see the trend already to get the dollar out of Iraq.

It is a process.

So, first Alaq says that today they back the dinar with the billions of reserves, which is the dollar.

Then he talks about the future where it will be backed by GOLD not the Dollar.

He says Iraq has 132 tons of gold.

So how much is that in equivalent dollars?

Let’s see if we can figure it out.

1 ton = 2,000 pounds

1 pound = 16 ounces

1 ounce of GOLD is valued at $1,896 (market price) example only

$30,336 per pound

$60,672,000 per ton

Iraq has about $8,008,704,000 billion worth of GOLD

What else is in the news?

Looks to me like Iraq is working with the WTO now since it has joined it and has been working with all along.

I quote from today’s article- “the center will provide to Iraq, with a diagnosis of challenges and work to support Iraq’s accession to the World Trade Organization by providing technical and legal advice and supporting trade policies to align with international standards.”

More proof that Iraq is part of the WTO and is in full accession.

I quote from one of the articles today that just about sums up all of today’s articles on the subject matter:

“Iraq has made strides implementing U.S. dollar supply restrictions targeting Iran but faces an uphill battle with a banking system unaccustomed to strict oversight and persistent currency smugglers, central bank governor Ali al-Alaq said.”

“It is really a battle, because the people benefiting from this situation and those harmed (by the new measures) will try in various ways to continue their illegal activities,” Allaq said in an interview with Reuters.”

We wait for more news on the progression of the currency reforms being instituted by the CBI and the coming second “official” rate change to around 1000.

But they are not there yet and I do not expect this will take too long now that the budget is release.

BY DINAR IRAQ & DONG VIETNAM