Friday, March 8, 2024

" RV UPDATE" BY PAULETTE, 9 MARCH

Paulette

Question: "When is Iraq supposed to be in the WTO?" Not before they pass needed legislation, eliminate the MCP [Multiple Currency Practices] and are recognized as having accepted IMF Article 8 obligations. Accession Committee next meeting with Iraq is planned for the "middle of the year".

"RV UPDATE: " FREEDOM OF MOVEMENT OF CAPITAL" IS IMPORTANT" BY PAULETTE, 8 MARCH

PAULETTE

IMO......All the articles say they have legislation that needs to be passed and the next meeting is in the "middle of the year......

My understanding is that Frank has also said that the rate doesn't matter but "freedom of movement of capital" is important. That is Article 8 compliance. They cannot be Article 8 compliant if the country is functioning under a MCP. A MCP includes a parallel rate of greater than 2% of the official rate by IMF definition. Saleh said last year that the parallel rate is "REQUIRED" to be 2% or less of the official rate. We were taught here years ago that this 2% or less needs to be maintained for a period of 90 days. The parallel rate is still around 14% difference.

While Iraq appears to be on the way to a full RI, I believe there will be an interim step very soon. If they make the move I anticipate the MCP will be quickly eliminated and they can proceed to a full RI.

A RI is full Article 8 compliance and a return to the rate that reflects the True Value. In 2009, the MOP/MOF stated move to 1.14-1.17USD/IQD and monitor for inflation up to 3 years and then move the rate to reflect the True Value of 3.208USD/IQD. This was the plan of Dr S and it appears they are back on track following that plan. Keep in mind that Ernst & Young stated $1.30 in 2010 and the SIGIR report stated that had the project to Delete the Zeros not been postponed, the IQD would have been brought on par with the USD.

I hope that helps

https://dinarevaluation.blogspot.com/2024/03/rv-update-freedom-of-movement-of.html

"ANALYSIS OF IRAQ NEWS: A delegation from Baghdad discusses in Washington the communications and information technology strategy in Iraq" BY CLARE, 9 MARCH

CLARE

A delegation from Baghdad discusses in Washington the communications and information technology strategy in Iraq
3/8/2024

The Communications and Media Commission announced on Friday that its Chairman, Ali Al-Muayyad, discussed with a high-ranking delegation of World Bank experts the communications and information technology strategy in Iraq, and the support that the bank can provide in this field.

A statement issued by the authority stated that the meeting, which came on the sidelines of the 2024 World Bank Digital Summit in Washington, discussed the efforts made by Iraq to accelerate the pace of digital transformation and spread digitization in various government departments.

The statement added that the meeting also discussed the projects and programs that Iraq is adopting within the framework of its digital strategy through developing infrastructure and legislating laws that are in favor of digital transformation.

The meeting, which also discussed ways of support provided by the World Bank to develop the Iraqi strategy in the field of communications, was attended by the Director of Digital Development at the World Bank for the Middle East and North Africa, “Michel Ruggie,” and experts in digital development: “Abdullah Jabour,” and “ Issam Khayyat,” according to the statement.

It is noteworthy that the World Bank Digital Summit 2024, held in Washington, hosts senior officials and ministers in governments and the private sector, with the aim of exploring opportunities, accelerating the pace of digital transformation and reviewing the reality of development in countries of the world, as well as revealing the latest technologies and scientific visions in the field of innovation, communication and digital transformation.

LINK

🔥 Iraqi Dinar 🔥 Iraq's Economic Breakthrough - The Next Big Thing Unveil...

Blaskharat: Iraq has become part of me and its people are beyond imagination., 9 MARCH

Blaskharat: Iraq has become part of me and its people are beyond imagination.

Mawazine News – Baghdad
The UN Representative in Iraq, Jeanine Blasschart, commended the impressions of the Iraqi people, noting that Iraq has become a part of my life after serving in it for five years.
Blaskhart said in a televised interview followed by Mawazine News, “Many Iraqis received me with open arms and made me understand their country and that the Iraqi people are known for their hospitality and generosity.
She added that “Iraq is a wonderful country and I have spent five years in its service and have learned about each province, its characteristics and clans from its south to Kurdistan.”
She pointed out that “Iraq has achieved a great development in its security and politics during the previous years, but the situation in Gaza cast a shadow over the region, especially with the launch of armed groups against foreign forces in Iraq.”

https://www.mawazin.net/Details.aspx?jimare=243432

" RV UPDATE" BY KAPERONI, 9 MARCH

Kaperoni

IMF report: "Iraq: Staff Concluding Statement of the 2024 IMF Article IV Mission"

Quote: "The authorities should therefore seek to enable private sector development, including...modernization of the financial sector and restructuring of state-owned banks, pension and electricity sector reforms...and continued efforts to...reduce corruption."

I have been stating something similar for years. If the Iraqi dinar is ever going to go up in value, it's going to be as a direct result of Iraq diversifying and growing their economy. Iraq needs to quit stalling and pass legislation to encourage and invite investment into their own country.

If Iraq is ever going to raise the value of the dinar they need to do it gradually over time so they can reduce the money supply. As well, a gradual increase reflects the economic growth of the economy.

I remind people again Iraq's entire net worth including all minerals in the ground including oil is only worth about $16 trillion dollars. With over 100 trillion dinar in circulation Iraq could never RV the dinar! Only with the success and growth of Iraq's economy and private-sector can the dinar go up in value. It could go up gradually over time as Iraq's GDP increases.

I still have significant concern over Iraq wanting to redenominate (LOP) their currency. There are numerous educational symposiums teaching the citizens about such an event. This is a very real possibility.

Article "US and Iraq agree to start talks to end presence of US-led coalition"

The dinar either rises gradually over time as Iraq's economy prospers reducing the money supply or Parliament will authorize the deletion of zeros reducing trillions to billions and a LOP. Not what we want to see.

there is no way Iraq can RV the Iraqi dinar with [120] trillion dinar in circulation. No country could afford. Iraq's total net worth is only around $16 trillon dollars.

 There is no significant RV of the Iraqi dinar.  And if the dinar does ever go up in value, it will be based on the success and growth of Iraq's own economy.  There are no shortcuts.
  Article:   "Ali Al-Alaq, the current governor of the Central Bank of Iraq confirms that Iraq's money supply exceeds 100 trillion dinar."
 If and when the Central Bank decides to increase the value of the Iraqi dinar more than likely it will be based on some type of gradual float as a result of the success and growth of Iraq's own economy and an increase in GDP.
I hope each and every one of you find success in this investment...It may take time.  It may  be another 1 to 5 years.  I certainly hope not but I believe things could happen quickly over the next 36 to 48 months.  It all depends on Iraq.  
 ...We all know things don't happen fast in Iraq. Iraq has a lot of work to do in order to succeed. The first of which is pass over 100 stalled laws through Parliament to encourage investment in Iraq.  And at the same time the Central Bank of Iraq has to continue reforms to the banking system, digitalization, and apply monetary tools to meet compliance .
 A country's exchange rate is the result of the success and growth of their own economy. When you have a weak economy, you have a weak exchange rate.  Until Iraq passes laws, diversifies their economy and increases their GDP, nothing will happen with the dinar.   When Iraq passed their tripartite  3 year budget a few months back, it created the conditions for them to diversify and privatize their economy over the next three years.   Now Iraq is on the clock to accomplish such.
There's a new article out that many people are translating and confusing.  They are not talking about an RV in Iraq, they are talking about the spread being in compliance early next year. 
 Just a reminder the spread is the difference between the official rate and the market rate or street rate and has been way out of whack recently in Iraq. This article simply means they expect the spread to come down closer to the official rate early next year. There is no RV.
    A very important statement was made back in 2020 by the prime minister's economic advisor Mohamed Salah who used to be Deputy Governor of the CBI under Shabibi. He stated that Iraq's entire wealth including all minerals in the ground amounts to only $16 trillion dollars. Knowing that information one can then determine that there is no way a significant RV could ever occur with over 90 trillion dinar in circulation.  It doesn't make sense...
 They...have to have the dinar stabilized within the country and within the 2% rule mandated by the IMF in order to then accept IMF article VIII and begin to float the dinar which would raise its value based on supply and demand.  All of these processes and or steps required time.
https://dinarevaluation.blogspot.com/2023/12/rv-update-by-kaperoni-10-dec_0650267841.html
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"RV UPDATE" BY MIKECRISTO8, 9 MARCH

@MIKECRISTO8

When investors finally realize come Monday that the Fed really isn’t going to bailout the credit markets (BTFP ends),

Gold will immediately surge to $2,300 either on Monday - Tuesday next week. The $2,170 pullback in gold is only temporary. China is likely to let gold (SGE) rip past $2,300 on Monday. China will “break” the dollar next week!