STATUS OF THE RV . PART. 3
😊I want to bring up another VERY IMPORTANT topic too. The topic is fighting inflation. If you look at the Dr Shabibi plan to get to the reinstatement you can clearly see the he planned to put the brakes on after each step, then monitor closely for inflation.
In our first article today, we see that in 2003 after the 10-year embargo and sanctions on Iraq, the inflation rate was rampant in 2003, which exceeded 35% and today it is only 2.8%. Only 2.8%? Yes, only 2.8% and this is fantastic and amazing news since this is way in line with acceptable inflation rates for country, according to the IMF.
Check out this article titled “INFLATION’S FREEFALL: IRAQ HITS 2.8%, ECONOMIC HOPES SOAR”. Announced by the CBI on Wednesday that Iraq’s annual inflation rate has dropped to 2.8% in the fourth quarter of 2024, down from 4% a year earlier. Folks the process is working……. 😊 😊 😊
Now let me joggle your memory a bit. What has the CBI told us many times is their main responsibility? Did they not tell us it was to manage the currency and monitor the inflation rate? Why is this so important then to get to 2.8% inflation only? Well, well today we confirm once again why this has been so important and still is. Saleh in this article stressed that these achievements come within the framework of “a comprehensive strategy aimed at achieving sustainable financial stability and enhancing the confidence of citizens and investors in the future of the Iraqi economy”, calling on all segments of society to engage more in the use of electronic payment tools in the interest of the national economy. Again Saleh emphasizes the use of electronic payment tools and no cash.
So in our conclusion today, what we all we should do now, as investors, is monitor the monitors, lol..lol..lol.. and watch this all play out. Just give it some time. They are almost there. Folks they are telling us they nearly broke the parallel market and is this not what my contact told us had to happen and if they could get the rate of the dollar of this parallel market down or very close to the “official” CBI rate, we would see the triggering of the “official” rate going even lower and for us this means more value to the Iraqi dinar. Yes, the in-country revaluation close to a buck we have been waiting for. This then would allow the kickoff to the Project to Delete the Zeros. No, my CBI contact, as part of the committee to head off this project, is not yet back on this effort, but she has told me all is going as planned and finally “real” success can be seen. She emphasized “real” and sounded very glad that finally the efforts of the CBI are showing substantial success. But remember unlike how many of us investors think we go off half-cocked wanting everything now and have it our way. This is not how it works. We are not in control. Yes, we had a huge disappointment from last December through January hoping they could break the parallel market quickly by just using the correspondent banks and doing away with the currency auctions. However, this strategy alone did not work and fix it entirely so they moved on to other strategies, which are now working.
What else is in the news?
Next, I want to take another peek at the article by Samir Al-Nusairi titled “EVALUATION OF THE CENTRAL BANK’S JOURNEY IN 22 YEARS”. I want to pay attention especially to the part when it talks about going forward in future strategies. They talk about what they plan to do for the next 2 years. Will we have to wait for two years for the RV? I don’t think so but we don’t control it rather only follow the REAL news and where it takes us. I certainly also hope the US can finally breaks Iran leadership and the overthrow this insane terrorist dictator and supreme Ayatollah Ali Khamenei. So, in this article it talks about another phase of the strategy is about to be implemented. Why would they begin yet another phase if not finished with the previous one? What is this new strategy?
The third strategy identified the main goals with 7 goals, 24 sub-goals and 75 initiatives to achieve the main and sub-goals and charted the path for banking and financial reform. I am not going to list them as you can go read the article for yourself. But I do like the 6th and 7th goals which I quote “Enhancing the position of the Central Bank locally and internationally” and “Enhancing compliance of the banking sector and the non-banking sector in line with international standards”.
I especially liked the part as the article goes on to say “strengthening the bank’s internal and external relations, and representing it locally and internationally.”
So this is telling us there is still work to be done in this area.
They then go on to tell us that “What has been presented accurately and transparently for the 22 years of the financial and banking reform process confirms that the next two years will inevitably result in the transition to a comprehensive and radical reform of the Iraqi banking sector and transforming it into a solid sector.”
Folks, its all in the words of these articles today as they are packed full of good information. These next 2 years are going to be amazing. I firmly believe that within these next years we will see the reinstatement. Whether they do decide to go with a digital currency in the timeframe I do not know. This would seemingly bypass the Project to Delete the Zeros as there would be no necessity to do it. But we also know that they have talked and talked about the Project to Delete the Zeros for so long and my contact still says they plan to do it. So go figure.
Again, note I did not say we had to wait the full two years to fully implement this new strategy. There could be a benchmark with the strategy where they say they are ready and the US finally gives approval. I only report on progress and give you an HONEST & TRUTHFUL updates twice a week. You do want to know the TRUTH don’t you? So, what is the motto of this blog? Their words not mine…..No Rumors, No Hype, No Opinions ,,,,,