STATUS OF THE RV
I need to review a specific article from today’s news in detail. The title of the article is “PLANNING: THE PRIORITY IN NEXT YEAR’S BUDGET WILL BE TO BASICALLY COMPLETE THE GOVERNMENT PROGRAM” and you can find the entire article in the Articles Section below.
The issue in the article, I believe, is going to be pivotal in the coming months for Iraq. I will comment on this article as my base however many of the other articles in today’s news also backup and support my commentary.
So, first let refresh your memory of the issue at hand and then we will walkthrough the article(s).
How does the CBI get US dollars?
Since the US invasion of Iraq, the World Bank and the US Treasury have been providing the necessary funds to its central bank (CBI), with funds received estimated at 10 billion dollars or more annually. This money is from its oil sales (petro dollars), so it is placed in a fund in the Federal Bank when a buyer pays for Iraqi oil.
Why is oil paid for only in petro-dollars?
Based on Security Council Resolution 1483 issued in May 2003, the principle of accumulating oil revenues in an account for oil receipts at a global bank was approved, and the Federal Reserve Bank in New York was chosen for this purpose. Oh…was this just a coincidence that a US owned Bank would get to hold all this money which has now accumulated to over $115 billion plus US dollars. WOW!
The demand for these US dollars, as a result of the currency auctions, is used to pay for imports. It disperses the funds to pay for the economy of Iraq. This works by having the dollars printed by the US Treasury debited from the Iraq account and then flown by the US Air Force to Iraq every couple months by plane. We were told this done in loads of $100 dollar bills rapped and stacked on skids.
Just recently Iraq seeked to obtain one billion dollars in cash from these funds above and beyond their normal drop of cash. Surprising, the US Treasury bank rejected this request, under the pretext that it conflicts with its efforts to stop the flow of dollars out of the country. Just recently however these funds were delivered to Iraq.
About Today’s Article:
In one of today’s articles, we learn that the Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Salih, confirmed on Tuesday that next March 2024 the White House plans to renew the Federal Bank’s authorization to deposit Iraq’s funds from oil exports, despite the fact that the Iraqi balances in the Federal Bank will be frozen. This is not good news for us or Iraq as Iraq wants this process I decribed above to end and to put all this money into a separate “sovereign fund” under the direct control of the CBI.
So, my questions now are: if Iraq is truly a sovereign nation (as they were declared last December 2022) and there are no longer any sanctions on them, then why are they still forced to have oil sales in US Dollars and have their funds deposited into a US Treasury bank? UN resolution 1483 should end and why is it going to be renewed again?
Saleh also says, in an interview with the Maalouma Agency, and told us investors that the reserves of the Central Bank of Iraq have been subject to the diversification rule since 2006, and represent the investment portfolio of the monetary authority. This to me means that the CBI already has the authority to diversify it’s monetary reserves.
He then went on to add, these reserves vary, according to the international standard investment guides for reserves issued by the International Monetary Fund, between various currencies such as the euro, monetary gold, the pound sterling, the Chinese yuan, and the Japanese yen, in addition to the US dollar.
The Sudanese financial advisor explained, “These currencies are in different proportions, and according to the weight of the foreign currency in Iraq’s foreign trade, stressing, there is no objection to intensifying diversification into other currencies in addition to the dollar, which essentially represents the currency of oil revenues. Sounds to me like they want to diversify as they have not yet done so to any extent, even though the IMF allowed it since 2006. Why is this?
But how will obtain these foreign currencies to pay for imports unless they change over how their oil is paid? Yes, sounds to me its time to move away from the sole petro-dollar. But will the US allow them to do this? Think of all the Iraqi cash in the US banks.
Saleh also stated that the real purpose of the petro dollar and placing the money in a secured accounts in US banks was to be used to collect Kuwait war compensation amounting to 5%, and it was taken from the revenue from the export of every single barrel of oil or any products, if any,” adding, “The oil receipts account and the reserve account in dollars are still subject to protection according to the White House presidential order.” Which is renewed annually every year in the month of May. But we all know these war reparations with Kuwait are now over and payments are completed as of December 2022. So, this reason no longer applies either.
Saleh stressed, “Most of the issue relates to the aforementioned UN Security Council resolution regarding the oil receipts account opened in dollars at the Federal Reserve Bank.” No longer apply.
I told all my readers a long time ago that because they have taken so long to de-dollarize it will be hard to change the mindset and black market ways to sell the dollar and make money. So change is hard, but the US govt is finally stepping in this year to make the necessary changes. We can clearly see that Iraq could NOT have RV’d so many times with all the stupid claims by these stupid intel gurus. Still even now they persist its going to happen this week or next weekend. Idiots…all of them!
Then on Saturday 11/11 out pops a very interesting article.
Opening bank accounts in Indian rupees for Iraqi banks to finance trade worth $3 billion. The article added that Iraq has strengthened its assets denominated in the yuan through the Singapore Development Bank to finance Iraqi trade and imports with China by about 12 billion dollars annually. A government source in Iraq said that officials from the Central Bank of Iraq held “intensive meetings” with American officials in Abu Dhabi in recent days to discuss external transfers to cover imports. This is such good news I am dancing…la,la,la, 😊. This is a clear signal to us that Iraq is going to use other currencies in the dealings with other countries. But will the other countries also accept the dinar of Iraq in return? This will create a demand for the IQD, which is something they need to support the FOREX move.
My main point in all this commentary today is that I believe there is now an ongoing effort in the CBI and the Finance Committee to get off the petro-dollar and divert the oil revenues outside of the US banks to other investment options. Iraq has already talked about setting up multiple sovereign funds which could invest the excess oil revenues to pay for projects in the rebuilding of Iraq and thus eliminate the need to borrow to solve their budget deficits.
Oh…but the economic hitmen with in Iraq don’t like this idea and will push to prevent it. The IMF luvs to get these countries under their thumb with high or massive debt and thus never ending loans. This way they can control them. But I don’t think Iraq is going to fall for this game. Of course, this course of freedom will create some static as their financial planning is much more progressive than a third world country, which is how the US would luv to have them stay. But I believe this puppetry will not work and Iraq will be a truly sovereign nation once again ad get out from under the claws of the US government.
What else is new in the news?
An article came out from the planning committee of the cabinet for next year’s budget. The priority stated in next year’s budget will be to basically to continue with the government programs laid out and then to complete the government programs started this year. We know one of these programs already started this year was to revalue the dinar over $1 coordinated with the project to delete the zeros followed by the reinstatement. However, the best laid plans are for mice and men!
As I told everyone many times that when they begin raising the rate of the dinar they will monitor for inflation and the de-dollarization. This could take 3 days, 3 weeks or even 3 months. I never imagined it would take this long but it has. So, their plan is working but it did not work to completion and as easily as they wanted it to work in 2023. Simply put there was too much corruption with the US dollar. But I believe they never intended to Reinstate anyhow in 2023 and the plan all along was to take the year to de-dollarize and complete the rest of the banking reforms needed to go along with the process.
This year we witnessed the parallel market manipulating the dollar against the official CBI rate, as these people stand to make a lot of money off the spreads they can get when the CBI cut back on the supply of the dollar. While the CBI holds firm on the official rate the black market uses their own rate over supply and demand à basic economics. These scandals first used the currency auctions to get dollars then when they too were closely monitored. They then resorted to the travel dollars to get a hold of the dollars via travel vouchers.
So, now there is good news in that they are rounding up and arresting these people who have intentionally manipulated the market. The CBI also announced they are allowing outside dollars to flow into the country so the dependency on the CBI cash reserves is lessened and the supply of dollars will increase the supply and pressure for the dollars. Also, the CBI announced come 2024 they intend to cut off all dollars. I am not totally sure how this action in 2024 will work as they will always need some dollars in country. Do they mean just cut off from the CBI supplying the dollars they are taking them from the reserves, such as the currency auctions? Will the flow of outside dollars into Iraq be enough to meet the demand to pay for imports?
I know there was a lot of excitement for an RV this weekend. It is Tuesday already and so where is it. It was rumored of a “guaranteed” time period for the RV. Oh…this is new one on me. Someone can actually tell us when it going to happen and guarantee it? How foolish and stupid rumor to be even passing this crap on to your listeners. I know these idiot gurus think they have such wonderful sources but I know who their sources are and they are not government sources I can assure you. There were even rumors that the newer lower denominations were out, like the 50 dinar and in ATMs. Really? Oh boy…here we go again with these ATMs…. lol..lol..lol.. 😊 😊 😊.
Once again just more lies stacked up more lies without any proof. Idiots getting rumors and then just spreading them like the idiots they are. Yes, TNT Tony and a few others match this description of idiocy. If the shoe fits wear it. Don’t get on your conference calls and bash all the other gurus for their stupidity, when you are right there with them all doing the same thing. Yes, all just unbelievable stupidity!!! In fact TNT Tony is the “king of bullshit”. 😊
So, the news was all very good this period. I encourage you to poke around the articles and read them. It’s not all of what we wanted, of course an RV would have been better. But I am NOT going to lie to you or pretend to have some secret high level govt sources, whispering in my ear. Reality is what it is. We will see the RV much sooner than later. We know now for sure it is on the slate of programs for Al -Sudani and Ali Al -Alaq to accomplish when they accepted their new positions. The GOI and the CBI are now working together in a joint effort to get it done. We know why the process was slowed down but not stopped. The political will to do it is still alive. Just be patient everyone, it’s coming sooner than later.
So, can you tie the woke policies in the US government and the mess this administration has made of the great country of the United States of America to what is happening in Iraq. I assure you this is part of the reason we have not yet seen the RV.
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