STATUS OF THE RV
What is the latest news from Iraq?
The news is still concentrating mostly on bringing in foreign investors and they told us today that there was a two part plan, and this plan is now completed.
You can read the articles on this subject matter in today’s articles section. The other part of the ongoing news from Iraq is still about the Parallel Market rate vs the Official CBI rate of the dollar. On one had the financial advisor Saleh to Al-Sudani tells us and I quote –
“The advisor to the Iraqi Prime Minister disagreed with what four economic experts said regarding the “stability” of the US dollar exchange rate against the Iraqi dinar, stressing that “the stability of the dollar is real and solid and not imaginary as some believe.“
However, there are four economists who step in and disagree with Saleh.
In the article they give their opinion, but it is just an opinion remember.
Saleh works with this issue daily and he is executing a plan. The plan takes time but Saleh says it is working and again tells us “soon” the parallel will equal the official rate.
But this is weird because Saleh also says and I quote – “which has become stable in its components and trends due to the influence of the official exchange rate factor currently dominating the financing of foreign trade (imports), amounting to 1,220 dinars per dollar”.
So it appears the currency auction rate has reached 1220 at some time but is not yet steady. Remember they get these fluctuations and they are a good sign but must wait for it to stabilize. I believe this is what Saleh is telling us. This is all good news.
Now let’s look at why this is all good news. Also in the same article it gives us a review of the past before Covid and under other prime ministers. It explains factors that affects the rate.
I quote from the article – ““Therefore, all these factors lead the dollar to calm and stability. It previously fell to 144, but then rose again to 148, and the difference with the official 1320 is more than 15 points. Therefore, this is not stability. Rather, the correct stability is as it was before, when it was 1120 in the Central Bank and 1121 abroad.”
Now after reading this last part that I quoted let’s go back to what Saleh told us has recently happened in the currency auctions.
I will quote to you again – “ “which has become stable in its components and trends due to the influence of the official exchange rate factor currently dominating the financing of foreign trade (imports), amounting to 1,220 dinars per dollar”. So the rate is slowly stabilizing as has now reached 1,220 from 1,320. The goal is 1,121.
Folks this is not too far off. Am I telling you they will RV when it reaches their goal. Of course not but these rates adjustments tell us they can not hold this back much longer and even with their own criteria something must be done and done soon to bring the dinar to the international investment world and free it up.
I can see some of my readers commented on the OFAC sanctions and did some research on your own. Congratulations on your findings! Kudos to you. But are you understanding what the US Treasury told you. This get weird and I tried to explain it all to you in one of my past Newsletters. Did you understand what I told you? What the US Treasury told you is in line what I presented to you already. The dinar is still a “risky” investment for the banks due to not being officially back on FOREX.
...TO BE CONTINUED
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