STATUS OF THE RV , PART. 2
The U.S. also has work to do in this regard with all of the unfair trade practices and currency manipulations going on with it, not to mention its huge national debt. So, one might say for the U.S. dollar to be part of these new baskets, it too needs some work.
The CBI has told us, regardless of what we think, they are being told they must FIRST establish an economy that is sustainable beyond the oil volatile market and the oil revenues of the sole petro-dollar (this is called a rentier economy, a very volatile economy) revenue stream.
Just look at what just happened too when oil dropped to $60. The entire Iraqi 2025 budget is now at stake. They had to adjust the budget tables and this took 6 months to do. They are half way through 2025 already…. What a dysfunctional budgeting process!….. ☹ No, they are not purposefully holding back the 2025 budget due the new rate in the budget. Please stop all this nonsense. It is not the RV timing holding it back. Please get off this RV soap opera drama.
Now as we turn our attention to the reinstatement plan, we must ask important questions. How does all this fit into it, as it is all interconnected?
I keep telling everyone this but many of you just still refuse to believe me and want the completion of a single event to trigger the RV. It does not work that way. We are not waiting for any event. Instead, Iraq and the region must be stable, secure and able to sustain their currency once it is on FOREX. There are many moving pieces.
Trust me when I say this – I want the RV just as bad as you but lies are not going to get us there any sooner!
What are some of the moving pieces? I am sure I might miss some but let’s look at them:
- The driving force to begin all this movement was the “full” release from Chapter VII sanctions in December 2022. We witnessed this and within a month the US Treasury moved in to Iraq. The currency auction audits began and the final phase of cleaning up the corruption began. This allowed Iraq to move ahead whereas before they were limited from many of the actions we are now witnessing taking place. What comes first the cart or the horse?
- There is the rentier economy, as the UN and IMF describe as a lack of “sustainability”. What if they did pull the trigger now and reinstated the dinar, can the economy sustain the new rate?
- Then there is the situation between the U.S. and Iran. This can get VERY complicated very fast. Nuclear armament, gas & electric sales issues?
- We witnessed the de-dollarization of Iraq, something right out of the Dr.Shabibi plan of 2011. So we know this HAD to take place first prior to the project to delete the zeros. In fact Dr Shabibi has Iraq de-dollarized back in 2011 but when the corruption hit, the dollars came back in, the project to delete the zeros and the reinstatement never happened.
- Next there was the parallel market and the dollar issues. The CBI had to get the dinar so that it is close to 1:1 with the dollar in order to conduct the project to delete the zeros, which has to happen prior to the reinstatement. They need this in-country RV in order to issue the newer lower denominations currency. The first step with this was to de-dollarize then to get the parallel market close to the “official” CBI rate. We are now looking for that next revalue of the “official” CBI rate whether it is close to 1166 or even 1000, which would make it 1:1. We wait and watch for this now. But now we had a major drop in oil prices and so everything is slower until Iraq adjusts and get back on track, get it?
- We just witnessed the liquidity issue with the banks and the new tactic to “force” the cash back into the banks.
- Then we have been studying the “Pillars of Financial Reform” with the banking sector. Oh, and what about the currency auctions. They are still ongoing but now financed by correspondent banks and no longer from the CBI reserves.
- We witnessed the foreign banks and agreements with Iraq in money transfers and payments for imports
- We just witnessed many of these economic summits to drive investors to Iraq.
- Just announced trillions worth of resources in Iraq. This is amazing but more amazing is they are contracting NOW (not ten years from now) with companies to exploit these resources and bring them to market NOW. This could rival the oil revenues.
- Implemented the customs and tariffs. Still have to fully account for all the money and this is also said to rival the oil revenues.