STATUS OF THE RV
😊I want to start off today’s news with Iraq bragging once again about its resources and wealth in an article titled “IRAQ BOOSTS FINANCIAL STABILITY WITH HUGE DOLLAR AND GOLD RESERVES IN US, EUROPE”.
Boy, oh boy they are teasing us dinar investors once again. They are flaunting their wealth once again but the IQD is still at 1/6 of a penny and NOT traded on FOREX? Meanwhile Iraq has 43% more oil reserves than Kuwait and just founded two more major wells besides. There is something inherently wrong here. Do you see it too?
Let’s explore this concept in greater detail in today’s Newsletter by referencing other articles and what they are telling us. Remember these are their words, not mine. This comes directly from Iraqi news. We may not agree with all of what the articles have to say this news period, but I will say it is not lies or misinformation. No fake banker stories or memos. No every weekend RV bullshit. Instead they give us a trend of where Iraq is right now and how they are thinking for their next strategy of reforms. If we pay attention we can see the writing is on the wall and their economists see it now too.
Kuwait is at 1 KWD = 3.25 USD on FOREX.
The below message recently comes up on this site when you inquire about the IQD.
It says “Notice IQD may be redenominated”. This redenomination is the newer lower denominations we have been waiting for.
Yes, they will have to execute the Project to Delete the Zeros.
We know that the CBI must also raise the rate of the dinar at par or just over a dollar within country to get this project started and create incentives to turn in the dollars.
This is really the final push to de-dollarize Iraq. The CBI still needs to break this parallel market. As long as the dinar is much lower than the dollar this issue will linger.
You can link to the site yourself https://www.xe.com/currency/iqd-iraqi-dinar/
Next, as usual I want to point out one article that stands out among all others in the set of articles in the Iraqi news for this period.
In doing so, I want to bring to your attention a very interesting, but sober analysis of the solution to the problem of the parallel market and dollar within Iraq by a noted economists. His name is Khalil Ibrahim Al-Abidi. The article is titled “AUCTION DOES NOT BUILD THE ECONOMY”.
What I find interesting about the article is heexplainsabout the dinarwhat all of us should already know if you have been following my blog. But it is nice to hear it again from their mouths not just mine.
Al-Abidi essentially is telling us once again that the currency auctions were not meant to be implemented so long. (Oh…gee whiz what a revelation…lol..lol..lol..) He says the auctions were a temporary measure to prevent hyperinflation and because they had run so long, they had become a way of life or as he puts it in the article and I quote – “and we have become accustomed to the mistake and it has become a lifeline.”
He admits that the auctions were not such a good thing when the CBI let them go on for twenty years. He says the CBI did a very good thing in getting off the currency auction platform. I quote from the article … “the Central Bank did well recently and left the auction platform, and returned to respect its currency, which is the dinar.”. But he says there is also the next step that needs to happen.
Economist Al-Abidi then goes on to say in the article what the next stage or step should be for the dinar. Yes, we all know what the next step should be and now, once again, we are hearing it from yet another Iraqi economist not just our own thoughts as investors. So, what does he feel is the next step? I quote from the article and I broke it down into three distinctive parts :
1.“Working to follow up on what is imported under the import license and ridding the country of the decline of its currency and the danger of imports”, (avoid fake receipts and shipping papers) and;
2. “the most important step is to zero out the dinar, and buy the 1,250 old dinars for one dinar of the new currency during the exchange after printing the one dinar denomination”, (he is saying to exchange 1,250 of the older three zero notes for a newer lower denomination note of one dinar worth $1.25 USD) and;
3. “the value of one dinar will be one dollar through the documentary import cycle, and we have sufficient revenues in addition to the sovereign reserves.” (here he backs up what I just said in #2 above)
Note that Al-Abidi does not mention the FOREX trading of the dinar and limits his commentary to in-country and managing the payment of imports into Iraq. We know this has to be the next step in the process to increase the rate of the dinar in-country to at par or just over a dollar. Then go to FOREX.
Again he is talking about the next stage and is limiting it to in-country. This will enable the CBI to issue the newer lower denominations.
We know these denominations are already printed as Dr Shabibi told us they were way back in 2012 and so don’t doubt this point in your mind.
We must remember what we learned in the past and go forward to the present to use our brains in determining where we stand in this investment. Over speculating with nonsense from many of these intel guru idiots does not help.
Okay, so what else does Al-Abibi tell us. He says and I quote “Making the value of one dinar equal to one dollar will keep the citizen, merchant, traveler, doctor, etc. away from running after the dollar. Rather, he will be reassured that his currency is valid for purchase and exchange wherever he is, and this is the point of safety.” WOW! WOW! WOW! Do you know how powerful this last statement is? He gives a solution the parallel market but in order to dissolve the parallel market you must get rid of the reason for the demand in the dollar. Get it? He gets it! 😊 I can’t imagine that the CBI also does not get it.
Then even more powerful Al-Abidi goes on to say and I quote “It issues a currency whose value is evaluated in gold, not in the currency of others, upon request.” WOW! WOW! WOW! again another powerful statement. So, what is he talking about in this statement of his? He is saying the IQD will be backed by gold not some basket of other foreign reserve currencies and the dinar can them be converted to gold upon demand to the CBI. Folks this is “gold-backed” currency of the dinar we have already talked about and read in many articles about but now we hear it from Iraq themselves that this is the plan.
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