Mnt Goat
...we can see what is slowly happening is that Iraq is moving back to a normalcy of their financial system an international normalcy. It takes much more than just putting in place the banking reforms, the means and the mechanisms to do it as we have witnessed over the past years. But now they are actually doing it. It may be slow but remember they are still under the strong arm of the US Treasury on this matter too and are working very closely with them at their pace. In many ways this is good as we want the US to support this process when it comes time to give the “green light”. This is why so many visits by the US Treasury to Iraq.
..there is always one news article to grab my attention and stands out from the rest...WOW, WOW, WOW news. It says that the purpose of foreign currency in Iraq is to deal with it outside the [national] economy, so it is not possible to consider the existence of a price in the dollar and a price in the dinar: one rises and the other falls. No monetary policy can control such a situation ...Folks this is just what we have been waiting for so long to hear...This is huge news.
They are finally getting off the sanctioned use of ONLY US dollars for trade outside Iraq. Yes, they are beginning to act now like they are out of the UN 1991 & 2003 sanctions, that by the way, happened over a year ago. So, yes, it is about time. We all should be jumping for joy and maybe even taking a couple sips (I said just a couple) of that refrigerated champagne… lol.. lol.. lol. Save the rest for what is coming next and that includes going to the bank.
"RV UPDATE: CONVERSATIONS WITH THE CBI CONTACT ABOUT THE DECLINE OF USD AGAINST IQD AND. THE OFFICIAL CBI RATE: " THE DOLLAR ISSUE"," BY MNT GOAT, 30 DEC
MNT GOAT
I was able to talk to my CBI committee member contact yesterday and I will review the content of our conversation with you today, what was said and why they put the project to delete the zeros on a temporary hold.
So, these past weeks we have read multiple articles on the decline of the dollar against the dinar and the official CBI rate. These articles tell us it won’t be much longer until the dollar issue is resolved. We all asked ourselves if this might be the reason for the delay. So, in my call to Iraq I asked this question.
I was told this is the issue involved in the holdup. This is exactly what they needed to see in the decline of the parallel market rate as it was holding up the final blow to the dollar and to allow them to continue on with the next steps in the process to get to the reinstatement.
I asked how close does the parallel black market rate of the dollar have to get to the official CBI rate of the dollar?
I was not given an exact figure because even my contact did not know. Of course a very close almost exact would certainly be the target, as common sense must prevail in our thinking on this too. But having told this to me, I was also told that it is not long before the decline is completed with the measures as the CBI in now making with agreements with many of Iraq’s trading partners and future trading partners to use their foreign currency in making trade payments in place of the dollar. I was told this is how Iraq used to do business prior to the sanctions.
I was also told that in the coming months, we will witness what was described as a rapid decline in the parallel market, suggesting that it will reach a level close to the official rate soon then at this time an American green light to release the currency reform process to move ahead again will be given. Of course, this is the expectation of my CBI contact and they know much better than I what is really going on in these meetings.
But here is the most interesting news from our standpoint. I was then told that at some point when the parallel market is stabilized to the official CBI, they plan to conduct one more rate change to the program rate, closer to 1000 from 1320 and then monitor it for inflation for a period of time and then if all goes well, initiate the swap-out of the three zero notes for the newer lower denominations. We all should know comes next after this step is completed……hint…hint…
https://dinarevaluation.blogspot.com/2023/12/status-of-rv-by-mnt-goat-28-dec.html
No comments:
Post a Comment