Recently we showed that the World Trade Organization is talking about full ascension in the 4th quarter. We are in it. They didn't say what day. They just said we're doing it...It's coming to fruition. It's pretty good.
This stuff that I bring to you is not pie-in-the-sky. It's phenomenal stuff. So get ready we're about ready to see some fireworks. That's my hope.
If they're going to go from 1310 to something different...likely to get into the international world with a Fair Effective Exchange Rate there's going to be a major change to the commercial system ...
Obviously he's [Alaq] talking about changing the commercial system. So something has to change and what we think that is...is their exchange rate.
Article quote: "The decision to collect fees in Iraqi dinars at border crossings is an important decision aimed at preserving the hard currency and also straightening the Iraqi dinar"
They have a goal of stop using the dollar and using the Iraqi dinar at the customs borders. Everybody should be clicking their ruby slippers because that's going to be a lot money. A lot of revenues are going to come through those borders.
Quote: "Any party that does not adhere to this decision will be subject to punishment." They're getting strict.
Economist: The Gold Reserve Of The Central Bank In London…And This Is The Relationship Of Its Price To The Dollar
Time: 10/24/2023 13:43:25 Read: 1,248 times {Economic: Al-Furat News} An economic expert confirmed the difficulty of predicting gold prices, specifying “the relationship in gold prices and the dollar.”
Salah Nouri told Al-Furat News Agency, “It is known to economists that the dollar and gold represent a reserve for central banks, including the Central Bank of Iraq that adopts this diversification. In practical life, the relationship between the dollar and gold is an inverse relationship, as whenever there are signs of a decline in the price of the dollar in the financial markets.” He tends to invest in gold as a safe haven, and thus the global demand for gold increases and its price rises.”
He stated, “The Central Bank of Iraq owns a good amount of gold and it is stored in London, where the World Gold Council is located. The Central Bank of Iraq depends in determining the value of gold on its price on the London Stock Exchange.”
Nouri pointed out, “It is difficult to predict whether the price of gold will rise or fall because it is linked to the price of the dollar, and the latter is linked to unstable economic and political events in the world.”
An Economist Identifies The Causes Of The Ongoing Crisis In Exchange Rates
Economy | 03:54 – 10/24/2023 Mawazine News – Baghdad The financial and economic expert, Mahmoud Dagher, today, Tuesday, identified the reasons for the ongoing crisis in the exchange rates of the US dollar against the Iraqi dinar.
Dagher said in a Facebook post, viewed by Mawazine News, that “the current crisis in the exchange rate is caused by the bad Iraqi policy of accepting that ports of entry remain open to countries subject to sanctions.” He pointed out that “this policy is followed by some partisan forces participating in the political process.
The exchange rate of the US dollar against the Iraqi dinar in the parallel markets is still recording a significant increase compared to the official rate.
Despite the approval of the country’s general budget several months ago, and the Central Bank selling more than 200 million dollars per day, many questions are being asked about the reason for the continued rise in the price of the US dollar against the Iraqi dinar in the parallel markets. Exchange.
So, last Saturday, October 21, 2023 I made my usual call to the CBI and we had a very long conversation. After I asked about the re-education plan for the currency reform process and how it is being delayed, we got into a much deeper conversation of the events of the past with all these early currency exchanges at very high rates. This conversation helped me understand what is really going on with this RV/Reinstatement process. It confirmed much of what I already knew but most importantly I now understand the level of corruption that is happening in the US Government and how they try desperately to cover it up and will do anything to cover it up, even at the expense of ruining a country, such as Iraq. It is terrible how careless and lack of concern for the Iraqi people. It’s all just about $$$$ with a pretense of caring only when they have to for a public image.
You see this was president Barrack Obama’s scam and he is protecting those who participated in this scam by changing all the rules from the president Bush’s era as for how Iraq could qualify to be reinstated. He has set the bar so high it is almost impossible for Iraq to achieve these goals in any short order. Thus, we have waiting so long now since 2013. Like the JFK assassination and the NYC 911 conspiracies, they need to put time in between the events to allow them to manipulate the system in the meantime. People die and memories fade. Time is always on their side, and they know it. So, Obama just changed the rules to put that time element in between us investors and exposing this scam. With people like TNT Tony, who has a very large following, it is easy to convince people that they are going to “someday” exchange and thus keep them quite or else. Is he now part of the scam? But we know like the JFK and NYC 911 this conspiracy will come out someday. We only hope much sooner than later. Really, if January 2024 does not produce a reinstatement of the IQD then this only confirms everything I am saying in this newsletter today.
So, we can see the CBI working now against the Obama plan and moving at warp speed to get the currency reform process completed so they can get on with rebuilding their economy and banking system. The Obama policy is slowly fading as is the enforcement of it with the Joe Biden administration too. We can clearly see now they are holding up the reinstatement and it is through the US Treasury Department. This is why they keep giving this idiot TNT Tony false benchmarks with this anticipated RV every week. They are stalling as long as they can. They know damn well it is not going to reinstate as the process is not even full underway. They are lying to Tony. They assigned someone special from the US Treasury to manipulate him only he does not realize it or want to realize it or is just a dumb stupid ass.
So, what comes first the chicken or the egg? This dilemma in the CBI is the reason why we are now witnessing such drama with the de-dollarization process. This is why the US does not support Al-Sudnai’s new government. They cannot manipulate this man. He is not their puppet. Will they use the Israel crisis to try to oust him? We have been told in just a recent article that the CBI is attempting to accomplish in 1 year in 2023 what should normally take 6 years. I am talking about the full Dr Shabibi plan and the process of how to conduct the de-dollarization, then the project to delete the zeros and to get back on FOREX. We can see it playing out. How can you not see it? This amazes me with all these other intel gurus and how dumb down they really are as they can not to see it. But this is not their concern anyhow as they are just out to make money off their clickity-clicks and pretense of knowing what is going on.
CONTROLLING THE RATE OF THE DINAR AT 2%:
What does the term “stability” mean when the CBI keeps telling us they need a “stable” currency. Well … today you are going to find out because the CBI just told us again.
In the news this period, see article below, that the difference between the dollar exchange rate determined by the Central Bank and the parallel market reaches 20% (not within the IMF required 2%), which is a high percentage that reflects a serious state of concern because it is considered by the IMF as unstable. Remember the IMF set a requirement that the rate cannot fluctuate in either direction more than 2% and must be “stable” for at least 90 days to prove the CBI can control the rate of their currency. Did you intel guru idiots forget about this requirement? So, is the rate now “stable”? How can the IMF approve the reinstatement if this is not within their mandated requirements?
More evidence the rate is not stable:
On Sunday that the Central Bank of Iraq has begun adopting 5 mechanisms to contain the rise in the parallel market. The ministry has taken written pledges obliging the owners of car showrooms, electrical materials stores, tourism, travel, wholesale and keycard companies, as well as owners of residential complexes, not to deal in dollars during buying and selling, and dealing exclusively in Iraqi dinars according to the price determined by the Central Bank, otherwise the violator is subject to legal accountability in accordance with Article 306 of the Iraqi Penal Code No. 111 of 1969, which stipulated imprisonment and the imposition of a fine on anyone who refuses to deal in Iraqi dinars.”
STILL WORK TO BE DONE ON REFORMING THE BANKING SYSTEM?
We have heard for decades already about the hoarded stashes of cash within the homes and the reluctance of the Iraqi citizens to trust the banks. Really now,,,why should they trust the banks?
-Is the CBI giving them guarantees their money will be safe (much like the FDIC in the US banking system)?
-Is the GOI providing adequate SECUITY to ensure the banks don’t get robbed again like during ISIS invasion?
-Is the dinar worth more than the dollar motivating them to deposit their stashes of dinar in the bank?
-Does the bank offer high interest rate for savings accounts? Yes, a bank just offered over 7% interest on their money deposits. Nice move!
85% of these stashes of cash are in the homes… “hoarded cash” is the most difficult equation in reforming the banking system. Any elementary class in economics will tell you that any economy to flourish will need money to circulate and not be hoarded. This article in today’s article section explains why this is important but not how they intend to remedy the situation any time soon. They have been trying for decades if you go back are read old articles even from Dr Shabibi’s time as governor. But why did he see back them a favorable window to Reinstate? Again, what comes first the chicken or the egg…the growth of the banking sector or the reinstatement so investors can come into Iraq. Yes, there obviously needs some level of “stability” and this level is measured closely by the IMF and World Bank it is the 2% criteria and other measures.
On Monday (October 23, 2023), the financial advisor to the Prime Minister, Mazhar Mohamed Saleh, set the priorities for reforming the banking system and the conditions for achieving it. Saleh believed that “one of the priorities of banking reform is to work to reverse the hoarding equation to become a savings equation with which the public’s surplus funds flow in the form of safe bank deposits, which requires that banks compete to attract deposits and provide loans in accordance with the banking management requirements that banks must work with, whether they are Governmental or private?
The Prime Minister’s advisor continued, “Therefore, the basics of banking reform are for banks to search for adequate, effective and influential means that attract the public to open bank accounts, because the bank account is one of the basics of financial inclusion and encouraging individuals of all segments to make bank deposits, and by encouraging means the priority for the depositor to be obtained is On bank credit or banking facilities when needed before others, to ensure that the public is encouraged to make double deposits.
He noted that “the banking system still deals with only 15% of the monetary mass issued into circulation until today, which is called cash leakage outside the banking system, and it is one of the basic indicators from which banking reform begins.”
He pointed out that “the priorities of banking reform are achieved in providing competitiveness by winning public deposits by facilitating cash deposit procedures and creating an effective atmosphere of reassurance that the deposited funds are protected according to the law and that the Iraqi Deposit Guarantee Company is the primary protector of deposits against banking risks.”
He stated that “the first and final goal of reforming the banking system will remain based on quickly providing facilitated banking services to economic activity with the highest levels of facilitation, in addition to providing positive incentives to the public in order to deposit, whether with encouraging bank interest or facilitating (easy and safe) deposit and withdrawal methods for their money, in addition to obtaining loans.” “Before others.”
But these are still “goals” and not how they intend to accomplish them. Gt it? So there is work to be done to reinstate but only if you want to continue to follow the Barrack Obama plan and not common sense. We know differently and that the IQD can sustain at least over $3-$4 right now without any of these banking reforms or growing the economy. It is time to liberate the dinar at least to this level and then let the rate grow once the economy grows. It this not the way FOREX works for investors in the currencies?
Al-Karawi said in an interview with “Baghdad Today”, that “the economic situation in Iraq after 2003 was exceptional in light of pressing challenges that prompted the cessation of production in 90% of factories and factories, and perhaps the percentage is higher to the point that the import balance broke the barrier of 90% in securing the needs of markets from outside the borders.”
Alarming Proportions:
The member of the parliamentary finance committee pointed out that it is “a worrying percentage and reflects a great challenge and economic weakness that is very dangerous in the face of any crises.” He added, “The absence of local production in light of the import of more than 7.50 different goods to the Iraqi markets has led to pressure on the parallel market for the dollar by at least <>%, ie a large part of traders and companies, down to citizens.”
He explained that “when the trader does not find financial liquidity from the dollar through the outlets of the Central Bank according to the official prices, he resorts to the parallel forced.”
MY CONCLUSIONS:
There are very odds that in the coming months the CBI will try to force the reinstatement process to continue and maybe even try some political move to attempt to embarrass the US Government into allowing them to reinstate the dinar in January 2024 timeframe to at least to a rate according to their present assets. Will Joe Biden still be in office or impeached my then? I say this since all the requirements as to why they took the dinar off FOREX in the first place no longer exist. So why has the dinar not yet been reinstated. Why did they reinstate the Kuwaiti dinar so soon after that war ended with Iraq?
I really like these conversations I have with my CBI contact as the TRUTH is slowly being exposed and confirmed. I hope to be able to bring more to you as it develops.
No, the RV has not yet happened or will most likely, more than likely, NOT happen until at least early next year 2024 and they will have until the end of January to give the green light and do it.
Are you now starting to see how politics of the US government and what is happening with the exposure of all the Obama/Biden corruption is very interconnected to us seeing this reinstatement of the Iraqi dinar any time soon?
This is why I included my political section in my Newsletter. This is why I fully intend to leave it in my Newsletter. As citizens we must all get involved in our own country’s politics or these non-elected and elected deep state, elitist, globalist will do what they want to our countries if unchallenged. Their plans are clearly spelled out and they work under corruption and divisive means. They are not trying to make this a wonderful world to live in, trust me on this one…. or go read the documents with their sinister plans for yourself.
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Member: Good evening all…..I am still praying this will this be our week!!!
Member: Remember the twilight zone? We have been living in it for years
Member: we need some good news MarkZ!
MZ: While digging for news on timing ….all I am getting is circle-tel. Some of my better sources keep telling me “soon” ..not yet, but extremely soon.
MZ: But the circle-tel boards are all saying “this is it” …trigger has been pulled and we are all getting paid right now.
MZ: So I reach out to those that have bonds…some are flippers.….and they have not started the process yet. There is so much disinformation right now to keep the timing clouded.
Member: That’s why we call things “rumors” and not facts.
MZ: So I want to caution you all when you read the boards…stay calm…….Yes sources say its soon….far closer than we think. When they tell me that I believe this war was not the diversion that many think it is. I sure hope not. But I am hearing this from my best contacts in the government and in Iraq. ….and from the bond side in Europe.
MZ: the bond side here in the states have gone really quiet. Maybe the people over here are better at keeping people quiet?
Member: What’s a flipper?
MZ: A flipper is someone who is buying currency and bonds at a lower price ….They will pay you a rate that is more then you paid…and turn around and sell it at a higher rate to someone else just before this goes. They flip it like someone who buys houses….and flips them…There are a lot of flippers in this game.
Member: Hoping we at least get 1 to 1 when this finally goes….hopefully $3+
Member: Bo Polny says big dates on the 24th and 25th…..whales today and maybe tier 4b on Thursday?
MZ: Possibly…there is a lot of chatter out there but, I’m just not seeing anyone with money yet. This doesn’t mean they are not positioned.
MZ: I told you recently that CMKX continues to update their fines and penalties every other week…and I am told that the groups have finished their logistics….everything done and ready….It does sound like we are right on top of this.
Member: Interesting this afternoon Minnesota… all of Minnesota lost their Internet for two hours
Member: I called my bank (Chase) I asked them about Yellow Dragon Bonds they said they had no idea what they were
Member: China just made first international oil deal in Digital Yuan. The de-dollarization is full on for BRICS. Getting wild!!
Member: Lots of craziness everywhere….who knew there were this many bad guys in the world… .
Member: Sure thought we would have seen cabal arrests start by now….
Member: Stay positive and focus on the beautiful gift we are a part of. Bless all of us!
Member: Thank you Mark you’re very informative…… go RV
Member: See everyone in the morning for coffee!
THE INFORMATION IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY. NOT INTENDED TO PROVIDE ANY PROFESSIONAL & LEGAL ADVICE. PLEASE CONSIDER EVERYTHING DISCUSSED IS MARK’S OPINION ONLY.
Odysee at: https://odysee.com/@theoriginalmarkz:e OR THE RUMBLE CHANNEL: https://rumble.com/user/theoriginalmarkz
Note from PDK: Please listen to the replay for all the details and entire stream….I do not transcribe political opinions, divisive social commentary,medical opinions or many guests on this stream……just RV/currency related topics.
GUYS YOU CAN FIND ALOT OF INFO AT MARK'S WEBSITE: GO TO: https://theoriginalmarkz.com/home
FIREFLY: The television is talking about the Iraqi Development Fund that is inside of the budget...They keep talking about the budget, what's in it and the development fund is what's key.
FRANK: Profound...the Development Fund is what's going to fund the budget. This development fund is the new exchange rate. They're talking about it because they're talking about the exchange rate...What they're talking about is you have a new exchange rate that is coming for everything to work...
FIREFLY: My bank guys says corruption is still the major holdup right now but even Sudani was on the news saying for parliament to stop calling out Alaq. He's saying the parliament members are the problem...
When you ask when is it going to happen... ask how is the cleaning going. How is the removal of Iran...eradicating the smuggling going. That's what we want to know. Nothing else.
Because once the atmosphere is suitable you're going to get what you want. You're never going to get rid of the cockroaches but you can definitely control them. That's what's happening right now - corruption is being controlled, it's being cleaned up.
Major powerful countries are coming into Iraq. It's going to effect their currency exchange rate. More than anything else it will rocket their float and that when you have to be very astute. Watch it...You've got to watch the rate in the float. Know when to hold'm and know when to fold'm. Know when to backoff.
Echoes of Conflict: Rocket Attacks in Iraq and the Israeli-Palestinian Ripple Effect
In the rising chill of an October evening, two Grad missiles cut through the night sky of Iraq, hurtling towards their ominous destination – the Ayn al-Esad Air Base, a strategic outpost housing US troops. A familiar sequence of events unfolded: the deafening roar of the launch, the deadly arc of the missiles, and the anxious wait for impact. But this time, the story bears a twist. The missiles failed to claim any lives or damage, a rare stroke of luck in a region where such attacks have become chillingly routine.
The Echoes of A Distant Conflict
These attacks, far from random acts of violence, are grim echoes of a distant conflict. Following Israel’s attacks on the Gaza Strip, the Islamic resistance organization, an amalgam of Shiite armed groups, has claimed these attacks as a grim form of solidarity. The reverberations of the Israeli-Palestinian conflict, thus, ripple outwards, shaking the uneasy peace of the Iraqi plains. Yet the connection to the Gaza conflict is far from straightforward, and as United Nations Secretary-General Antonio Guterres points out, the blame does not rest solely on Hamas’s shoulders. The root of the matter, he emphasizes, lies in the long-standing occupation faced by the Palestinian people.
The Crosshairs of Tension
The recent spate of attacks leaves a question hanging heavily in the air – how safe are US troops in this tinderbox environment? With around 2,500 troops stationed in Iraq and a further 900 in neighboring Syria, the US finds itself walking a tightrope, balancing the need for regional stability against the safety of its personnel. The US military, in response, is tightening its protective measures, even contemplating the evacuation of military families if necessary. The message to Iran and its proxies is clear: any attack on US personnel will be met with swift and decisive action.
A Complex Web of Conflict
The rocket attacks have not only affected the US. They have also drawn the attention of other global players. French President Emmanuel Macron proposed broadening the international coalition fighting against the Islamic State in Iraq and Syria to include a new adversary – the Palestinian militant group, Hamas, in Gaza. Such a proposal, while showcasing France’s commitment to combating terrorism, raises complex questions about the role of international forces in conflicts beyond their immediate purview.
This tangled web of conflicts, stretching from the Gaza Strip to the plains of Iraq, serves as a stark reminder of the intricate dynamics of the Middle East. Long-standing grievances, power dynamics, and the involvement of various armed groups all contribute to a volatile cocktail of tensions. And as these recent attacks show, the repercussions of these interactions can be felt far beyond the immediate conflict zones.
Resolving these issues will not be easy. It will require a comprehensive and inclusive peace process, one that not only addresses immediate concerns but also the deep-seated issues fueling these conflicts. Only then can the region hope to break free from the cycle of violence that has held it hostage for so long.
Iraq’s Financial Revolution: A Journey Towards Digitalization and Growth
In the heart of the Middle East, far removed from the clamor of the foreign media, a quiet revolution is stirring. Iraq, a nation often portrayed as a turbulent hotbed of conflict, is now spearheading a transformative shift in its financial sector, seeking to usher in an era of digitalization and economic growth. This narrative isn’t forged in the crucible of sensational headlines, but it’s a story worth telling, for it signifies Iraq’s relentless drive towards stability and prosperity.
Steering the Winds of Change
The Prime Minister of Iraq, Muhammad Shaaa Al-Sudani, recently led a crucial meeting focusing on the unified treasury account and the electronic payment system – two pillars that could potentially redefine the nation’s financial landscape. Al-Sudani emphasized the pressing need to activate the work and responsibilities of the Payments Council at the Central Bank. This is more than a bureaucratic directive; it’s an urgent call to modernize Iraq’s banking sector, a critical step towards a broader economic transformation.
The Prime Minister also insisted on receiving a final report on the progress made, reflecting a demand for accountability and transparency. His directive to all ministries to implement the fourth paragraph of the Cabinet Resolution (3581 of 2023), and to accelerate the formation of committees, underscores the urgency of the task at hand.
Al-Sudani’s call for an analysis of the non-moving bank accounts for each ministry within a month is a testament to the government’s resolve to tackle financial stagnation and inject momentum into the economy. It forms part of the larger effort to make the financial system more responsive and agile, aligning it with the changing dynamics of the global economic order.
Building a Digital Economy
At the first banking conference of the Central Bank of Iraq held in Erbil, the shift towards a digital economy was front and center. The conference, graced by the Prime Minister of the Kurdistan Regional Government, Masrour Barzani, the Second Deputy Speaker of the House of Representatives, Shakhwan Abdullah, and various political, economic, and business figures, showcased Iraq’s commitment to banking sector growth and international collaboration.
The Governor of the Central Bank, Ali Al Alaq, highlighted the risks associated with a cash-based economy, such as financial crimes and illicit practices. He painted a vision of a digital economy, where technology serves as a catalyst for growth and transparency. Al Alaq emphasized the importance of maintaining the stability of the exchange rate and prioritizing the infrastructure of financial systems and business rules.
The Governor also underscored the importance of compliance with anti-money laundering and terrorism financing laws, demonstrating Iraq’s commitment to international norms and standards. These efforts aim to ensure the transparency and safety of financial operations and make Iraq a more attractive destination for international investments.
Moving Towards a Sustainable Future
The developments in Iraq’s banking sector are not isolated events but part of a larger narrative of progress and modernization. The country is taking significant strides towards building a stable, safe, and effective financial system, which is vital for attracting investment, promoting economic growth, and improving the overall quality of life for its citizens.
From the Prime Minister’s directives to the Central Bank’s initiatives, Iraq’s commitment to transforming its financial infrastructure is clear. Amid the challenges and complexities, the nation is charting a course towards a future defined not by conflict and crises, but by stability, growth, and digital empowerment. This is the untold story of Iraq – a story of resilience, ambition, and an unwavering resolve to secure a prosperous future for its people.
FIREFLY: My bank guys says corruption is still the major holdup right now but
even Sudani was on the news saying for parliament to stop calling out Alaq. He's saying the parliament members are the problem...
When you ask when is it going to happen... ask how is the cleaning going. How is the removal of Iran...eradicating the smuggling going. That's what we want to know. Nothing else.
Because once the atmosphere is suitable you're going to get what you want. You're never going to get rid of the cockroaches but you can definitely control them. That's what's happening right now - corruption is being controlled, it's being cleaned up.
Major powerful countries are coming into Iraq. It's going to effect their currency exchange rate. More than anything else it will rocket their float and that when you have to be very astute. Watch it...You've got to watch the rate in the float. Know when to hold'm and know when to fold'm. Know when to backoff.
This is Section 1 of: The Ultimate Guide to Every Economic and Political Reason for an Iraqi Dinar Revaluation (RV)
Amidst years of speculation, rumors, and expectations surrounding an Iraqi Dinar Revaluation (RV), there exists a base case to be made deserving serious consideration.
Coming Soon
Part 2 will identify and explain every key economic and political stability indicator that directly influences and supports a strong and stable currency exchange rate.
Part 3 will bring everything together to analyze and present a comparison between economic and political indicators for Iraq and the three strongest currencies in the world – Kuwait, Oman, and Bahrain.
However, it is crucial to ground any discussion in the real economic, financial, and political environment surrounding Iraq today.
While the speculative nature of previous claims may not align with economic reality, it is important to acknowledge the continuous improvements witnessed in Iraq’s economic development.
These advancements provide a legitimate rationale in support of considering the eventual revaluation of the Iraqi Dinar.
This report outlines a comprehensive set of factors contributing to this perspective, aiming to provide a thorough analysis of the landscape surrounding the case for an Iraqi Dinar revaluation (RV).
1.1 The Evolution of the Iraqi Dinar
The history of the Iraqi Dinar dates back to its introduction as Iraq’s official currency in 1932. At its inception, the IQD was at par with the British pound, reflecting a stable economy and strong financial position.
However, the subsequent decades witnessed a series of significant events that led to the devaluation of the IQD.
1.1.1 The Impact of Wars on the IQD
The Iran-Iraq war (1980-1988) and the subsequent Gulf War in 1991 had profound effects on Iraq’s economy and its currency.
These prolonged conflicts strained resources, disrupted economic stability, and resulted in the devaluation of the Iraqi Dinar.
Economic sanctions, imposed by the international community due to various political and security issues, have played a pivotal role in the fluctuations of the Iraqi Dinar’s value.
Sanctions often limited Iraq’s ability to engage in international trade, leading to a decline in foreign currency reserves and contributing to the devaluation of the IQD.
1.2 Popular Reasons Fueling Speculation around an IQD Revaluation
Despite these challenges, speculations about the potential revaluation of the Iraqi Dinar have persisted.
Proponents of an Iraqi Dinar RV often highlight several primary arguments supporting their position.
These include:
1.2.1 Iraq’s Abundant Oil Reserves
Likely the most popular reason supporting expectations of an Iraqi Dinar revaluation is that Iraq possesses one of the world’s largest oil reserves, and the successful exploitation of these resources should significantly boost its economic potential.
This substantial oil wealth is a critical factor in the potential revaluation of the IQD.
SIDEBAR: Oil Credits for the USA?
Many argue that Iraq could support a high exchange rate to the U.S. Dollar because of a much rumored “Oil Credit Agreement” purportedly set up between Iraq and the USA after the Gulf War.
However, there is no conclusive evidence (other than what’s posted on various RV related internet sites) that supports such an agreement actually exists.
The trickle of oil imported from Iraq renders any Oil Credits insignificant. Source: US Energy Information Administration.
Furthermore, if such an Oil Credit Agreement did exist, the fact remains that in 2022:
The USA consumed 19.1 million barrels/day of petroleum
The USA produced 19.99 million barrels/day of petroleum
The USA imported 8.32 million barrels/day of petroleum
The USA only imported an average of 332 thousand barrels/day from Iraq (4% of USA’s total petroleum imports)
Given that the USA imports such an insignificant amount of petroleum from Iraq, the value of any “Oil Credits” would not support any meaningful role in an Iraqi Dinar RV.
1.2.2 Iraq’s Prospects of Economic Growth
Another popular reason offered in support of an IQD revaluation is Iraq’s potential for continued economic growth.
Underpinned by its oil resources and untapped economic potential, the community of IQD RV’ers has continued to grow over the years with committed interest.
Certainly there is a valid case to be made for a successful Iraqi Dinar revaluation being closely tied to Iraq’s ability to harness its economic potential.
Does Iraq now have a robust economic credentials to support a stable, high-value exchange rate?
A detailed analysis of Iraq’s key economic indicators will be presented in Section 3 of this report (link).
1.2.3 Political Stabilization in Iraq
Finally, Iraq’s purported progress in establishing political stability is another popular argument made in support of a significant currency revaluation.
Iraq’s journey towards political stability has been marred by challenges like corruption, security concerns, and political instability.
As Iraq takes steps towards establishing lasting political stability and independent governance, the probability of a major currency revaluation (RV) would definitely increase.
Yet, has the government of Iraq (GOI) really made significant inroads to political stability?
This subject will be outlined in Section 3 of this report.
1.3 International Agencies and their Effect on Exchange Rates
It’s important to clarify that international agencies, such as the United Nations Security Council (UNSC) and the International Monetary Fund (IMF), do not possess the direct authority to arbitrarily set a country’s currency exchange rate (valuation).
This means that no international agency can mandate that the Iraqi Dinar (IQD) be changed from $3.00 per IQD to $0.0007 per IQD – or visa versa.
Currency exchange rates are primarily shaped by market forces, economic indicators, and the nation’s own financial policies.
While these agencies do not directly dictate exchange rates themselves, they do exert influence through mechanisms such as economic and geopolitical sanctions which may significantly impact a nation’s currency value.
1.4 Executive Orders and Economic Sanctions were a backdrop for an Iraq Dinar Revaluation
In the aftermath of the Gulf War and during the reconstruction of Iraq, a series of Executive Orders were issued to address assets, legal issues, and economic stability.
These Executive Orders collectively aimed to protect Iraqi assets, maintain the stability and security of Iraq, and support post-conflict reconstruction and development. Notably:
Here’s a list of every EO and U.S. Treasury Sanctions related to Iraq.
Executive Order 13303 (May 22, 2003)
Purpose: Protect the Development Fund for Iraq and Iraqi assets from being seized by creditors.
Safeguard the Development Fund for Iraq.
Prohibit attachment or judicial processes against Iraqi assets.
Ensure oil proceeds are used for Iraq’s reconstruction.
Maintain the stability and security of Iraq.
Executive Order 13315 (August 28, 2003)
Purpose: Expand measures to address security threats to Iraq’s stability, security, and reconstruction.
Broaden sanctions against individuals and entities.
Counteract threats to Iraq’s peace and security.
Support economic reconstruction and political reform.
Provide humanitarian aid to the Iraqi people.
Executive Order 13350 (July 29, 2004)
Purpose: Terminate previous national emergencies and modify EOs to address Iraq’s stability and security.
End prior national emergencies.
Modify EOs to counter Iraq’s stability threats.
Protect Iraq’s assets.
Promote reconstruction and development.
Executive Order 13364 (November 29, 2004)
Purpose: Modify protections for the Development Fund for Iraq while recognizing changes in Iraq’s circumstances.
Terminate prohibitions related to the Development Fund.
Balance asset protection with Iraq’s needs.
Address the evolution of Iraq’s financial situation.
Maintain the national emergency declared in EO 13303.
Executive Order 13438 (July 17, 2007)
Purpose: Block the property of individuals and entities that threaten Iraq’s stabilization efforts.
Block assets of those threatening Iraq’s stability.
Prohibit contributions to or from blocked individuals.
Counteract violence undermining peace and reconstruction.
Support Iraq’s economic and political progress.
Executive Order 13668 (May 27, 2014)
Purpose: End immunities granted to the Development Fund for Iraq, considering Iraq’s changing circumstances.
Terminate immunities related to the Development Fund.
Recognize changes in Iraq’s situation.
Balance asset protection with Iraq’s progress.
Maintain the national emergency declared in EO 13303.
1.4.2 Specifics Regarding Executive Order 13303
EO13303 Signed May 22, 2003. Photo: The American Presidency Project
There is much speculation over Executive Order 13303, issued by President George W. Bush in 2003, regarding the revaluation (RV) of the Iraqi Dinar.
Aimed to safeguard the Development Fund for Iraq and protect Iraqi petroleum-related assets, this order prohibited the attachment, judgment, or lien against these assets, aiming to facilitate Iraq’s reconstruction and stability.
Executive Order 13303 has been continuously extended beyond its initial issuance in 2003.
On May 16, 2023, a notice was issued to extend the national emergency with respect to the stabilization of Iraq, originally declared by Executive Order 13303 on May 22, 2003.
The order aimed to prevent obstacles to the orderly reconstruction of Iraq, the restoration of peace and security, and the development of political, administrative, and economic institutions in Iraq.
Executive Order 13303 does not directly mention the Iraqi Dinar currency or address a potential revaluation of the Iraqi Dinar but plays a role in protecting Iraq’s economic interests.
1.4.3 Economic Actions and Sanctions Levied Against Iraq by the U.S. Treasury
There were a number of Actions and Sanctions-related documents issued by the U.S. Treasury against Iraq. Below is a summarized explanation of each document.
OFAC Sets Out Expectations for Compliance with U.S. Sanctions
Establishing the Central Bank of Iraq/Oil Proceeds Receipts Account (May 22, 2003)
This document, issued on May 22, 2003, establishes the Central Bank of Iraq/Oil Proceeds Receipts Account.
The purpose of this account is to receive funds generated from the sale of Iraqi petroleum and petroleum products. It plays a crucial role in managing and allocating the revenue generated from oil sales for the benefit of Iraq.
Establishing the Iraq Stabilization and Insurgency Sanctions Regulations (June 13, 2003)
This document serves as an overview of the Iraq Stabilization and Insurgency Sanctions Regulations (ISISR) and was created around the same period as the ISISR.
It discusses several aspects of the sanctions on Iraq, including exporting to Iraq, financial transactions, prohibitions related to Iraqi cultural property, immunities from attachment, and exemptions for U.S. military forces operating in Iraq. The document provides a broader perspective on the sanctions’ context and application.
The Termination of Iraqi Sanctions and Removal from Chapter V of 31 C.F.R. (September 13, 2010)
What is 31 CFR Chapter V?
Title 31: Chapter V – OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
Title 31 refers to Code of Federal Regulations (CFR) for the U.S. Department of Treasury
Subtitle B refers to Regulations Relating to Money and Finance
Chapter V refers specifically to the Office of Foreign Assets Control under the Department of the Treasury
In September 2010, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) marked a significant milestone by formally ending economic sanctions on Iraq. This marked the removal of the Iraqi Sanctions Regulations from 31 C.F.R. Chapter V and introduced the Iraq Stabilization and Insurgency Sanctions Regulations (ISISR).
This transition was in line with several Executive Orders, including Executive Order 13303 (May 22, 2003), Executive Order 13315 (August 28, 2003), Executive Order 13350 (July 29, 2004), Executive Order 13364 (November 29, 2004), and Executive Order 13438 (July 17, 2007).
On September 13, 2010, the ISISR replaced the earlier Iraqi Sanctions Regulations, and as of that date, there were no comprehensive economic sanctions remaining against Iraq.
The ISISR contain the current OFAC restrictions related to Iraq and Iraqi property. As of the date of this document, there were no broad-based sanctions against Iraq. However, specific individuals and entities associated with the former Saddam Hussein regime were subject to prohibitions and asset freezes.
These individuals and entities were determined to have committed or posed a significant risk of committing acts of violence that could threaten the peace, stability of Iraq, the Government of Iraq, or undermine efforts for economic reconstruction, political reform, or humanitarian assistance in Iraq.
On September 13, 2010, the ISISR replaced the earlier Iraqi Sanctions Regulations, and as of that date, there were no comprehensive sanctions against Iraq.
Summary
This section has provided a detailed historical context surrounding the Iraqi Dinar, including its evolution, the impact of wars, the role of economic sanctions, the popular reasons for speculations regarding an Iraqi Dinar revaluation, and the role of international agencies and Executive Orders in currency exchange rates.
Coming Soon
Section 2 will identify and explain every key economic and political stability indicator that directly influences and supports a strong and stable currency exchange rate.
Section 3 will bring everything together to analyze and present a comparison between economic and political indicators for Iraq and the three strongest currencies in the world – Kuwait, Oman, and Bahrain.