STATUS OF THE RV . PART 5
😊Please take a look at article titled “IN LIGHT OF THE LIQUIDITY CRISIS… WHY DOESN’T IRAQ RESORT TO PRINTING MORE CURRENCY?” I think we can all learn something from this news. Iraq is facing increasing challenges due to the scarcity of cash liquidity, which negatively affects the markets and daily financial transactions.
While some are looking for quick solutions to overcome this crisis, the option of printing more local currency remains controversial,
given the serious economic repercussions that may result from it. Yes, if they are not careful printing more money could and probably will cause inflation just like what the Biden administration did over his four years in office in the US. You can’t print your way out of a crisis.
You have to come up with real solutions and that take brains and leadership. But remember some of these remedies don’t happen overnight. They are a slow, staged implementation of a series of measures.
😊I get a kick out of articles like this one. Over the years we have seem so many like it. Seems Iraq keeps harping on the fact that so much of the monetary mass is outside the banking systems. See article titled “PRIME MINISTER’S ADVISOR PRESENTS MODEL TO ENHANCE LIBERATION OF MONETARY BLOC”
The Prime Minister’s Financial Advisor, Mazhar Mohammed Salih, presented a proposal today, Saturday, that contributes to mobilizing idle funds for development projects. Saleh told the Iraqi News Agency (INA):
“The presence of a large monetary bloc outside the banking system, which exceeds 85% of the total monetary issuance, constitutes a phenomenon with repercussions on the national economy.”
Yes, Iraq is caught in a dilemma. Let me tell you what this dilemma is.
First point is I need to tell you that a large chuck of this 85% of the total monetary mass is outside the country not in fact hoarded by Iraqi citizens in Iraq like the CBI thinks. The US government as well as other governments have a very large chuck of it in its reserves as so does other countries.
The other part is us investors. Yes, people like you and me. We account also for a very large chuck of this 85%.
So how can the CBI get these dinars to come roosting back home? They must get them from us. All the measures to retrieve them from inside Iraq is not going to work. Why? Because they don’t have them. Get it?
This brings me to my second point. The only way they will retrieve these dinars is to revalue their dinar and get back on the global trading platforms. The banks will not exchange large amounts of the dinar with us until the dinar is back on FOREX.
They must attract investors in their currency. They must trade the dinar again. This is only going to work if they increase its rate. Who the hell wants it at 1/6 of a penny?
But my third point is when they do, they will also have to reissue another currency to replace the three zero notes and this is called redenomination or conduct the Project to Delete the Zeros. Oh.. but we all knew this already didn’t we?
But, when they do issue these newer lower denominations, they will have their increased liquidity in the banks but only the banks will then use these older three zero notes. The common, everyday circulation will be the newer lower denominations (and fils).
So, for the questions of liquidity, by turning in these three zero notes will give them all the liquidity they need and finally release a very large chunk of this 85% of the total monetary mass that has been stashed in our closets in the U.S, Europe, Canada and etc. The banks will then have all the money they need for loans and business transactions. So why don’t they just do it then? In the “Bad News” section of today’s Newsletter (see above) you find out why. Yes, if you want to know what is holding up the revaluation, this is it. Pay attention to this bad news of today. Yes, it is Iran the trouble maker.
My fourth point is I have to stop and think, am I missing something here? Reading these constant streams of articles from Iraq on this subject matter of liquidity and the hoards and stashes of dinars, don’t they realize we have most of it and not the Iraqi citizens?
Since they keep trying different tactics to retrieve this currency from within Iraq without any real success as only partly successful. Maybe they need to stop and think who really holds the bulk of this bloc of currency outside the Iraqi banking system or any banking system for that matter. Just saying….. Yes, it is us. We await for them to come and get it from us…. lol…lol….lol.. 😊
One last note for today’s news. Are you praying? We all should be praying now more than ever. Keep Iraq, Israel and the Trump administration in your prayers. Please don’t get upset with what the Trump administration is planning for the middle east. It is a change in thinking and it is a different approach. They tried the old approach for so long already and so how much longer do people have to suffer. Why not try something different. Let’s all pray for the success of the Trump administration in turning this situation around and so finally they can release this currency of Iraq.
