I really hope you understand that cryptocurrency is soon to be the foundation for the infrastructure of our new digital asset-based trading system.
As Bitcoin grows, the rest of the crypto space grows. This is the first RV. The second one that many are looking for in paper currency will become possible because of the first one taking place right now.
Our new global economy is currently being re-indexed. Everything will be tokenized. Yes, even the foreign currency you hold. It is a process that will give new value to all of our currencies around the world.
Question: "The difference between Kuwaiti revaluation and the Iraqi dinar - what's the difference?"
It's a completely different model...Kuwaiti got invaded. Saddam Hussain stole the printing press, the Kuwaiti version of the Treasury. Stole everything...Iraqi dinar was completely different. It was planned.
They knew the old Iraqi currency was going to collapse. We injected their economy with dollars and euros. That's when they took the old dinars off the streets and introduced the new dinar you and I have. It's a completely different model. There's no way to compare.
I think the dinar is going to revalue. I think it's great. It's a great opportunity. A lot of it has to do with its foreign currency reserves which is in the US dollar. It [Iraq's] is one of the biggest in the world.
"What is Iraq waiting for at this point [to RV]? "
No body knows...When [Senator] McCain was around those were the heavy hitters. Those were the guys I would listen to. This was nothing 'official' but these guys knew what was going on, 'you want to be in the dinar.' I have some very good friends who didn't buy it and they talked to McCain and he said you better buy this currency.
According to them, it should have happened by now. I still hang out with the same group and to this day nobody knows why Iraq has not pulled the trigger yet. What's strange is back in the day Iraq didn't talk about it that much,now they talk about it all the time. Whatever the CBI is looking at, it's starting to look like they need to be there.
Question: "Why do the [Iraqi] citizens want to keep using the dinar when the value is so low?"
Not everybody has access to the US dollar for one thing. #2 It's artificially low. A lot of Iraqi's know this. They know what's going on.
There's nothing they can do about it. That's one of the things, if you watch the parliamentary elections of Iraq one of the number one campaign promises all these guys make is we're going to add value to the dinar. They know it's artificially low. [They look around and think] we're selling more energy, the price per barrel is more, we have more customers and yet the dinar is [worthless] and we're all running around in poverty.
Question: "When it does revalue, when do we get out? How long do we wait?"
That depends on your own needs. Are you trying to get a house? Are you trying to pay off a loan? What is it because once you hit that number get out. Or if it doesn't go up to that number - Let's say you're trying to make...$250,000 and you realize the investment is only going to get you about $180,000, then get out! Diversify. Get into something else. Don't just stick around.
The only way you can answer those questions is you have to put a piece of paper down and realistically what is it that you want. You have to be realistic about it.
You can't say the first thing is I'm going to start off with a $50 million dollar mansion. Don't be stupid...Let's be a little more practical. A home over your head, debt free, for you and your family...then you can go for the big stuff. Your investments are based on that...what it is you want.
Shafaq News/ The Iraq Future Foundation (IFF) for Economic Studies reported that Iraq's internal debt surpassed 70 trillion dinar mark, reaching its highest point since 2003.
The IFF report indicates that Iraq's overall internal debt "increased by 1.5% in 2023 compared to the 2022 figure. The most notable surge occurred in 2020 when the debt surged from 38 trillion dinars in 2019 to 64 trillion dinars, representing a 67% increase. Despite a slight decrease in 2022, the debt resumed its upward trajectory in 2023, surpassing the 70 trillion dinar mark."
Approximately 37% of Iraq's internal debt arises from loans granted by commercial and government banks, with the remaining 62% owed by government institutions to the Central Bank of Iraq. The Foundation reported.
"Iraq's public debt represents 19% of its gross domestic product (GDP). When factoring in external debt totaling 40 trillion dinars, the overall debt amounts to approximately 110 trillion dinars or 29% of the GDP."
Despite these figures, the report indicates that Iraq's debt level is relatively manageable compared to global standards.
However, a critical concern highlighted in the report is that most of these debts are operational expenses rather than investments. Consequently, there are no means to recover these debts through revenue-generating projects. This situation results in additional costs for the state budget in the form of interest payments imposed by internal and external creditors.
The report recommends two options for the Iraqi government: either extinguish the non-recoverable internal debts or devise a clear plan to transform them into productive debts by paying off previous debts and leveraging new debt for investment and development projects.
"Such projects could increase domestic production across various sectors and generate revenue to cover debts and interest payments."
Frank26: "BOTH THE MONETARY REFORM EDUCATION & ITS SECURITY WILL CONTINUE POST RI FOR THE STABILITY OF THE MONETARY REFORM.".........F26
Integrity announces the recovery of $1.5 million, one billion dinars, and gold coins
3/9/2024
Today, Saturday, the head of the Federal Integrity Commission, Haider Hanoun, announced the recovery of more than 1.5 million dollars and about one billion Iraqi dinars and gold coins, while revealing a draft agreement to coordinate work with the Integrity Commission in the Kurdistan region.
Hanoun said, in a statement followed by Al-Iqtisad News, that “the authority recovered some amounts in cash, some of them were prevented from being wasted, and others are in the process of being recovered,” pointing out that “some amounts are in Iraqi currency, and others are in dollars.”
He added, "During our annual conference tomorrow, Sunday, we will display a recovered amount of more than one and a half million US dollars, as well as amounts in Iraqi currency of up to one billion dinars, and other amounts, in addition to gold coins."
He pointed out that "the Integrity Commission coordinates work with the Kurdistan Region Integrity Commission, and there is a draft agreement to coordinate joint work, and Integrity as a federal body supervises all governorates," stressing that "the financial disclosure of officials includes all Iraqi officials and employees."
Hanoun called on the Integrity Commission in the Kurdistan Region to “assist with arrest warrants and financial disclosures for officials, so that the Federal Authority can audit them like all officials,” stressing that “everyone is subject to the law.” LINK
[via PDK] Question: So is this the month? MarkZ: I very much think this could be our month, I do not have a magical ball…but going back to the Simply Linn bank story and remind you that bank manager said he does not know the timing but know it’s soon. And we may know before they do.
[Reference MarkZ's Simpy Linn Bank story from 3-9-2024 below]
Bank Story via Simply Linn: In a nutshell - a guy goes to a chase bank and they know nothing…. He goes to another and sits down with a personal banker who asked him what assets he had… and the guy says he has foreign currency…dinar and dong…they bring in a wealth manager… Whose eyes light up and the wealth manager shared some serious details about exchanging and the QFS...they suggested to him to exchange out of his area for anonymity and security and to avoid local tellers talking about his exchange.
I thought this was brilliant and I plan on doing that as well. Not exchanging in my town. Anonymity is a good thing to have. He also mentioned our funds go into special accounts...When the man asked if it was the QFS - the lady smiled and nodded and said it was account that no one else can see it…even tellers will not be able to see it. Very safe. ...they also said they do now know “when” but know it’s coming soon and they have been preparing for it and equipped to exchange it right in front of your eyes…and there will be armed guards while you do the exchange. This was a fantastic bank story.
Question: "I thought they met all the requirements [to join the WTO]?" All the articles say they have legislation that needs to be passed and the next meeting is in the "middle of the year.
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.
(Kitco News) – While the weaponization of the dollar is a major issue, U.S. fiscal deficits and the greenback’s weakness down the road are also driving the world’s central banks to accumulate gold, according to Bloomberg macro strategist Simon White.
“Powell might not be overly worried about inflation – with his recent comments reiterating the Federal Reserve is on track to cut rates this year – but other central banks are not so relaxed,” White wrote. “Gold’s new high signals global central banks are likely accumulating the precious metal in an effort to diversify away from the dollar, as persistently large fiscal deficits threaten to further erode its real value and lead to more inflation.”
White said that gold’s sharp rally over the last few days “has been broad as well as pronounced (as well as hinted at by low gold vol)” with the yellow metal setting “50-year highs versus three-quarters of major DM and EM currencies.” He noted that after jewelry, the largest gold holdings are in private investment, including ETFs, bars and coins, followed by central bank reserves.
“In recent years the swing buyers have been ETFs, which hold about 2,500 tonnes of gold,” White said. “But ETF holdings have been falling even as the dollar price of gold has been rising.”
He pointed out that this has occurred even as the U.S. dollar has been stable and real yields have risen over the last three months, and the seasonal buying season in China and India is also over. “Further, silver has not participated in the rise,” he said. “It’s therefore a reasonable supposition the official sector, i.e. central banks, has been a significant driver of gold’s recent ascent to new highs.”
White noted that global central banks were adding to their gold holdings in the runup to the pandemic, and again following Russia’s invasion of Ukraine, “even as ETF investors (perhaps dazzled by the bright lights of crypto) have reduced theirs.”
China, Germany and Turkey have been the biggest sovereign buyers of gold over the past six months, he said, adding that China’s increases are likely far larger than the official numbers.
“Central banks want gold as it is a hard asset, not part of the financialized system when owned outright,” White wrote. “But the dominant reason is a desire to diversify away from the dollar. If you’re not on friendly terms with the US, then it is a way to avoid your reserve assets being seized, as happened to Russia.”
But the Bloomberg strategist also proposed another possible reason for the buying spree: “central banks everywhere are quite possibly uneasy about owning too many dollars when the US is running large, inflation-causing fiscal deficits,” he said. “The dollar is structurally overvalued on a purchasing-power-parity basis versus the main DM currencies.”
White shared a chart that suggests the dollar could see significant underperformance in the years ahead.
“Investors in gold ETFs may not see much risk from inflation and to the dollar,” White concluded, “but central bankers are signaling very much the opposite.”
“Including fleeing from the dollar.” Revealing the reasons for the rise in gold prices in Baghdad
Salah Nouri told {Al-Furat News} agency, “Gold in general is a commodity for saving, as it is a precious metal, and at the level of central banks it is considered an investment and reserve for the local currency.”
He added, "The increase in gold jewelry that is happening at the present time results from the increase in demand for it. When demand for every commodity increases, its price rises, and so far this is economically logical."
Nouri added, "But more importantly, why has the demand for gold jewelry increased at the present time? I think that the citizen tends to save in it instead of the dollar, and this is a weak reason. It is more likely that traders speculating in the dollar are turning to gold instead of the dollar for reasons of speculation or smuggling, because Individual citizens’ need for gold jewelry is limited to special occasions.”
Meanwhile, an informed source told {Al-Furat News} that one of the reasons for the rise in gold prices was due to “citizens’ weak confidence in banks, so they withdrew the amounts deposited in the banks and turned to gold.”
Local markets in Baghdad are witnessing a rise in gold prices, as the selling price of a gram reached {the mithqal}. 465 thousand dinars. link
My wife and I went to Chase Bank today in Huntsville, Alabama. We walked in and asked the lady that met us at the door if they exchanged foreign currency.
She said they do.
I asked her if she was aware of the Iraqi dinar and the Vietnamese dong.
She gave us the biggest smile she could give and advised us that they knew about it and were just waiting.
She answered a few of our simple questions to let us know that they did know what was going on and we left.
Before we left, she said to make sure to keep an eye on how things are going and they will have an appointment waiting for us.
China is withdrawing from the US Stock Market by way of US dollar to Yuan trades on Forex. The Yuan will no longer be able to buy US Dollars on Forex.
If you look closely, the Depository Trust Company will be closing these trades on March the 8th, 2024.
Are they about to back their currency by gold? If not, will their gold token become more accessible in the world of trade? Either way, you can expect a major shift like this to have a backup plan.
