STATUS OF THE RV
I hope the new year is going great for everyone today. I want you to know that if you live in southern California I am praying that God protects your home and for your safety and well-being.
Today I need to first briefly explain in more detail why the parallel market is so bad for the Iraqi economy and how it has been causing the high inflation rates.
So if the CBI has an official rate and the merchants use this rate to previously buy dollars with dinars from the currency auctions or electronic platform, the prices of the goods is reflected in the cost of the price to obtain these dollars.
Get it.
However, when the merchant can’t obtain the needed dollars through the prior currency auctions or the new correspondent banks method they resort to using the black market to get their dinars. Since the black market knows they can get a premium for their dollars they charge a much higher rate, thus this price to obtain them must also be carried down in the price of goods sold.
This caused inflation. The US Treasury has decreed that the CBI must control its currency as part of the banking reform process.
Why would the US Treasury allow the reinstatement of the dinar unless there was some sort of mechanism to control its pricing. The Free Market trading on the open currency market (i.e. FOREX) should drive the pricing not some black market behind the scenes. Get it?
Yes, there will probably always be some speculation and some currency brokers outside the banks.
You can go right now online to buy Euro from a currency dealer online through the internet. They will charge a slight commission to buy them as their profit margin. But this is much different than a Black Market scarcity since the pricing of the Euro is controlled and it is only a reasonable commission used. There are plenty of Euro available.
As there will eventually be also plenty of dollars available too in Iraq but just not yet since the first need to enforce the law to regulate them. Once the law is inline than Iraq will follow any other country in the buying and selling of dollars as usually done. Keep remembering that the currency auctions was NOT normal practice for any nation. It is post-war time effort to avoid inflation and mandate the sanctions.
Now Iraq must also make this second part of the effort to break the parallel market that has plagued the CBI for so long. The good news today is the CBI is winning in this battle but is not quite there yet. This is the news given to us today.
😊 I’d like to further address the question of {whether or not the CBI’s strategy to kill the black market sales of the dollar is working and to give you proof}?
To answer this question, we only need to read a couple of the articles now coming out of Iraq for this period of news. Here is the first one I want to address titled “THE RISE RETURNED TO THE MARKETS AND FEARS DISSIPATED.. WILL THE “PAPER”BREAK THE 200 THOUSAND DINAR BARRIER?”
In this first article they tell us there is a severe shortage of dollars in the parallel market and it is going to raise the price of the dollar to 200,000 dinars per 100 dollars. How many freekeh times must we read this crap about the dollar exceeding 200,000? This is all fear mongering and they need to crack down on the FAKE news in Iraq too.
This is old propaganda news. I quote from the article “While citizens are worried about the repercussions of this crazy rise, traders stand perplexed in front of a turbulent market that swings between expectations and speculations, while voices are rising calling for urgent action by government agencies and the Central Bank to contain the crisis before it is too late” Oh I am so scared…..lol..lol…lol… 😊
If you continue to read the article it becomes apparent that the author knows very little about the CBI’s plan to kill the black market dollar sales altogether if possible or at least limit it to the “official CBI rate” The author acts as if this is a travesty and is going to crash the Iraqi economy…lol..lol..lol..
☹ Yes, fear mongering, as if Iraq will never survive without the black market dollar sales. I just got to laugh as we all know the strategy and this is not going to happen. It is already 9 days since the change over to the correspondent banks and this has not occurred.
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