STATUS OF THE RV
Welcome to April and so let’s spring into the season of Spring. Like the unfolding of the season of Spring we are slowly seeing the sovereignty of Iraq coming to a reality and not just on paper but in tangible evidence.
If you remember I presented an article last week in my Newsletter telling of a decision made last Wednesday by the Parliamentary Investment and Development Committee revealing the intention of Central Bank Governor Ali Al-Alaq to submit a report to the US Treasury to lift the ban on 28 banks.
Why is this so important to our investment in the dinar?
There are a couple good articles we need to pay attention to in today’s news. The first new article tells of this same news once again but adds a justification for the CBI wanting these banks off the sanctions and to allow them to deal in dollars again. I am not guessing this is their words not mine. I will quote from the article – “The head of the committee, Hassan Al-Khafaji, said in a statement followed by Al-Ghad Press, “The committee proposed to the Governor of the Central Bank, Ali Al-Alaq, to support private banks and involve them in loans,” explaining that “the governor confirmed his support after lifting minor violations against some banks .”
Okay, so you have it from the proverbial “horse’s mouth”. It is now the CBI itself telling us why they need these banks off the sanctions list. This is exactly what we need to see happen and I was told by my CBI contact this is going to happen, its just a matter of time now. I quote again – “The committee proposed to the Governor of the Central Bank, Ali Al-Alaq, to support private banks and involve them in loans,”
Loans? What loans?
The economy needs this money (in the form of US dollars) that is stashed in the homes. We were told by the CBI in past articles that this stashed money is a very large part of the monetary mass. We were also just told that the total monetary mass is now over 100 trillion and the CBI does not want to print anymore, thus is must retrieve this money and put it back into the economy.
They need this stashed money in the banks to loan out to kick start this economy. These 28 banks, while under sanctions, can’t deal in dollars so how will they be able to take in these dollars into their banks and convert them to dinars then? The answer is obvious – these sanctions will have to be lifted first. Get it? This is now what the CBI is requesting from the US Treasury. Will they lift the sanctions as requested? Let’s see if they do. Why won’t they? Do you also think they will be talking about this issue in Al-Sudani’s visit to the US in mid April? Personally, I do not think this issue is going to be stretched out that long. In today’s article the CBI tells us and I quote again – “the governor of the Central Bank promised to submit a report to the US Treasury to lift the ban on Iraqi banks, which number 28 private banks,” expecting “the ban on those banks to be lifted during the coming period .”
Okay, so we all know that when Iraq says “the coming period” it could means days, weeks or even months. But I don’t believe this is weeks but instead more like days in this case. Why do I say this?
I say this because my contact in the CBI is telling me this is “urgent” and they need to get the Project to Delete the Zeros underway. So, to me there must be some sort of time table going on here. The CBI is moving on a clock now. This is VERY GOOD also because it shows they are aggressively moving ahead now once again with the currency reform (monetary reform). This is exactly what we needed to see. Get it? Will it stall again?
I can’t tell you the schedule going forward but I can say there is some urgency to move ahead to the next step of currency reform. Could it be the Israeli/ Gaza strip conflict? Could they want to get the reinstatement done before this situation blows up? Your guess is as good as mine to answer these questions and I am not going to make up stories to sound so smart and then lie to you. Simply put- I don’t know. I am not going to lie and make up stories like these other arrogant, egocentric, know it all intel gurus idiots.....
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