STATUS OF THE RV, PART. 2 BY MNT GOAT, 19 FEB

 STATUS OF THE RV, PART. 2

😊You might want to take a look at article titled “CENTRAL BANK ANNOUNCES DETAILS OF ITS MEETINGS WITH THE TREASURY AND THE FEDERAL RESERVE”. The Central Bank announced the end of the first quarterly meetings for the year 2025 with the US Treasury and the US Federal Reserve, which were held in Dubai / United Arab Emirates with the participation of international auditing and consulting firms (EY, K2 Integrity, Oliver Wyman).

 The meetings culminated in praise for the steps taken by the Central Bank of Iraq and the Iraqi government in reforming the banking sector, the most important of which were…bla, bla, bla ( you heard it all before from the IMF, World Bank and the US). But the dinar is still at 1/6 of a penny?

So, we might believe that any unauthorized banking activities can be caught relatively quickly just as in any bank in any developed country does today. This is fantastic news. The article emphasizes encouragement for enterprises to join the formal banking sector and not rely on the black market. 

But how do you give them incentives? Do you maybe change the value of the dinar so the “official” price is now much higher than the parallel market price? Would this draw them into the CBI supervision by the SBI of this shadow economy?

The idea of putting in place an optimal solution which creates a legal frameworks to regulate the work of informal financial institutions and place them under the supervision of the central bank to ensure a minimum level of oversight. I am surprised the CBI has not yet done this. Why is this a revolutionary idea?

My main point today is not so much what the CBI can recognize or not as the Black Market but rather can they can’t control it? It is obvious the Black Market is a know entity and an obstacle. Seems to me the only real

 solution and a final solution is to simply to take the paper CASH dollar out of circulation in Iraq, which the US has just announced that are doing. Didn’t I bring this to your attention before? Iraq then needs to keep emphasizing the use of the dinar. Remember we already read over the last two year about the de-dollarization of the economy.  

But there is a breaking point too. This point is triggering a revaluation in-country and it will begin down that path of seriousness to reinstatement back on the foreign exchange market. Would this simply help or would the Black Market simply turn around and raise their rates even higher.

 However, I have to keep saying where are they going to get the dollars if plane loads of CASH is no longer being flown to Iraq and these payment are now all done electronically? How will they get this CASH?

To get any CASH in Iraq someone would have to go to a bank and fraudulently file receipts to pay imports into Iraq. Now this is when the audits can control and monitor the sales of imports and who is importing what and how much. But still, this CASH will be very limited and scarce.

The Obama/Biden plan is to grow the economy enough so that the reliance on imports is lessened ergo the need to pay for them in dollars or any currency is lessoned. But this still does not automatically revalue the dinar. Does it?

 There has to be a breaking point when the CBI says lets just use the dinar then more and more to pay for imports. Other countries have to want to take it. It must be valuable enough to drive a desire to take it. 

But it is hard to give incentives for importers to want it at 1/6 of a penny. Do you see where I am going with this? Yes, there is going to be a breaking point when they have to raise the rate of the dinar. The CBI will have no choice if the economy keep growing.

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