STATUS OF THE RV
“Encouraging and dealing with the local currency under the current economic conditions in the country is an important issue, especially with the government’s tendency to “strengthen” the Iraqi dinar against other hard currencies, especially the dollar, as well as seeking to present it first in order to be a “issue of a homeland” in a real way.
They are telling us once again they must complete the currency reform first as in integral part of rebuilding the rebuild the economy and the country.
Today we also read in the news from Iraq that a government source revealed the arrival of shipments of dollars to the Trade Bank of Iraq (TBI), indicating the arrival of other shipments in the coming days.
So, they are already progressing on the new policy of importing dollars via the banks and not from the CBI reserves.
This way the banks are stakeholders in the use of the dollars and will suffer most if they are abused.
This practice also eliminates the middle man, the black market as the banks will manage the dollars and be responsible for adhering to the “official” CBI rate.
It is all just one step away from the elimination of the program rate currency auctions altogether.
Another interesting article from Baghdad Today titled “US CENTER: US WITHDRAWAL FROM IRAQ MEANS THE “END” OF THE DOLLAR“.
The American Lowe Foundation for Political Studies revealed on Wednesday (December 6, 2023) the reasons that it said “to prevent” the withdrawal of US forces from Iraq under any circumstances, stressing that the withdrawal would mean the “end” of the dollar and US hegemony over the world.”
The center explained, according to what was translated by “Baghdad Today”, that “the US government and during the past fifty years, after the abolition of the currency budget in gold (1972 by the Nixon administration), was keen to keep the value of the dollar high through” military and political control over the sources of wealth in the world, the most important of which is oil, ” stressing “This is the reason behind the defense of American presidents, whether Democrats or Republicans for Washington’s policy in Iraq and the Middle East.”
This article is not saying that the de-dollarization in Iraq is bad but the withdrawal of armed forces to protect the oil and enforce US policies.
But we can see this is going to happen like it or not.
We as investors can clearly see the path leading up to the reinstatement of the Gold standard someday very soon.
Okay so my resent conversation with my CBI contact told me that negotiations with Turkey went very well and they decided that the use of the Euro may be a good alternative to the dollar.
As you may know beside Iran, Turkey is the second largest trader with Iraq.
I was also told that by mid-December it is planned to begin the sway-out of currencies and the newer of the lower denominations will appear.
This would mean a new program rate in-country of about 1:1 but my contact could not (or would not) give me a definite rate.
My contact is just as excited as we all are as the Iraqi people will finally get what they too have long waited for.
They will get their economy moving.
It means more jobs, rebuilding schools, churches, hospitals and electricity 24/7 once again.
Yes, these are VERY exciting times but this is the important part not us getting rich.
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