With what I am hearing from the banking side…this may be it. I am feeling exceptionally good as to where we are at right now. News is pointing to right after July 4th from the banking side. I continue to get similar things for between the 4th and the 15th out of Iraq. I am hopeful this is accurate...We are watching it wind down to completion.
Thurs. 27 June 2024 MarkZ
The new Iraqi Dinar Rate was not in the Wed. Gazette, but they did fully expect their new rate in the month of June. The country cannot function too long with the ATMs loaded with the new gold-backed Dinar Note. Banking contacts say it will happen sometime between July 4-8, while outsiders were saying July 12-13.
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MarkZ
[via PDK] My Iraqi contacts say there was not a rate in the Gazette yesterday. They expected to see a rate posted there yesterday but there was not one according to 3 sources on the ground there. They still expect to see the rate in the month of June and we have a few days left.
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Tues. 25 June 2024 MarkZ
I am getting inundated with bank contacts telling me to expect that things have already started …but coming to fruition in banks after the 4th of July. With a rollout in the days immediately following. I believe the 4th is on a Thursday this year… so I was told the roll out around the 6th and 7th. That is the rumor. Remember, we don’t know the timing. I am sure getting a heck of a lot from the banking side that things are now moving quickly and that is what they are preparing them for.
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I did hear from 3 or 4 military sources and Reno and the Treasury…rumors that are all over the place, some saying it’s happening right now, to no – its tomorrow…to Its already started, to all kinds of timing rumors in an concerted effort to cloud timing. …I think it’s a good things to see them in panic mode trying to cloud timing.
I am getting inundated with bank contacts telling me to expect that things have already started …but coming to fruition in banks after the 4th of July. With a rollout in the days immediately following. I believe the 4th is on a Thursday this year... so I was told the roll out around the 6th and 7th. That is the rumor. But remember we don’t know the timing…but, I am sure getting a heck of a lot from the banking side that things are now moving quickly and that is what they are preparing them for..
2. Bilateral Investment Agreements and Taxation Treaties
Vietnam maintains trade relations with 200 countries, and has 65 bilateral investment treaties (BITs) and 26 treaties with investment provisions. It is a party to five free trade agreements (FTAs) with ASEAN, Chile, the Eurasian Customs Union, Japan, and South Korea. As a member of ASEAN, Vietnam also is party to ASEAN FTAs with Australia, New Zealand, China, India, Japan, South Korea, and Hong Kong.
Vietnam finalized an FTA with the European Union in 2015, but the agreement has neither been signed nor ratified. In addition, Vietnam is a member of the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP), which was signed on March 8, 2018. Vietnam is a participant in the Regional Comprehensive Economic Partnership (RCEP) negotiations, which include the 10 ASEAN countries and Australia, China, India, Japan, South Korea, and New Zealand, and it is negotiating FTAs with other countries, including Israel.
Vietnam has signed double taxation avoidance agreements with 77 countries, listed at http://taxsummaries.pwc.com/ID/Vietnam-Individual-Foreign-tax-relief-and-tax-treaties . The United States and Vietnam concluded and signed a Double Taxation Avoidance Agreement (DTA) in 2016, but the agreement is still awaiting ratification by the U.S. Congress.
There are no systematic tax disputes between the government and foreign investors. However, an increasing number of U.S. companies disputed tax audits resulting in retroactive tax assessments. These cases may stem from Vietnam’s chronic budget deficits and the need to find sources to fill the revenue gap left from falling tariffs and falling oil revenues. These retroactive tax cases against U.S. companies can obscure the true risks of operating in Vietnam and give some U.S. investors pause when deciding whether to expand operations.
In February 2017, the government released Decree 20/2017/ND-CP, effective since May 2017, which introduced many new transfer-pricing reporting and documentation requirements, as well as new guidance on the tax deductibility of service and interest expenses.
6. Financial Sector
Capital Markets and Portfolio Investment
Although Vietnam welcomes foreign portfolio investment, Morgan Stanley Capital International (MSCI) still classifies Vietnam as a Frontier Market, which precludes some of the world’s biggest asset managers from investing in its stock markets. Vietnam is working to meet the criteria necessary to attain “emerging market” status and attract greater foreign capital inflows.
While the government has acknowledged the need to strengthen both the capital and debt markets, there has been no substantial progress, leaving the banking sector as the primary capital source for Vietnamese companies. Challenges to raising capital domestically include insufficient transparency in Vietnam’s financial markets and non-compliance with internationally accepted accounting standards.
Vietnam has two stock exchanges, which are the HCMC Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX). The State Securities Commission (SSC) regulates both. As of February 2018, HOSE and HNX had total market capitalization of approximately USD 220 billion, surpassing 110 percent of Vietnam’s GDP. Government bonds account for one fifth of the total market capitalization traded on the HNX. A trading floor for unlisted public companies (UPCOM) operates at the Hanoi Securities Center, where many equitized SOEs first list their shares (due to lower transparency requirements) before moving to HOSE or HNX. Roughly 90 percent of the combined market capitalization is in HOSE.
Vietnam complies with International Monetary Fund (IMF) Article VIII. The government notified the IMF that it accepted the obligations of Article VIII, Sections 2, 3, and 4, effective November 8, 2005.
Banks charge relatively high interest rates for new loans because they must continue to service existing non-performing loans (NPLs). Domestic companies, especially small and medium enterprises (SMEs), often have difficulty accessing credit. Foreign investors are generally able to obtain local financing.
Money and Banking System
The State Bank of Vietnam (SBV) estimates that around 70-80 percent of the total population are underbanked or do not have bank accounts, due to an inherent distrust of the banking sector, the engrained habit of holding assets in cash, foreign currency, and gold, and the limited use of financial technology tools. Since recovering from the 2008 global downturn, Vietnam’s banking sector has been stable. However, despite various banking reforms, Vietnam’s banking sector continues to be concentrated at the top and fragmented at the bottom.
By the end of 2017, state-owned or majority state-owned banks accounted for over 46 percent of total assets, and over 40 percent of equity capital in the banking sector. The estimated total assets in the banking system is USD 454.6 billion. In addition, 31 private joint-stock commercial (private) banks, all smaller than the state-owned banks, are gradually gaining market share. There were also nine foreign-owned banks (HSBC, Standards Chartered, Shinhan, Hong Leong, Woori Bank, Public Bank, CIMB Bank, ANZ and United Overseas Bank), 49 branches of foreign banks, 47 representatives of foreign banks, and two joint-venture banks (Vietnam-Russia Bank and Indovina Bank).
Vietnam has made some progress on reducing its NPLs, but most domestic banks remain under-capitalized with high NPL levels that continue to drag on economic growth. Accurate NPL data is not available and the central bank frequently underreports the level of NPLs. Other issues in the banking sector include state-directed lending by state-owned commercial banks, cross-ownership, related-party lending under non-commercial criteria, and preferential loans to SOEs that crowd out credit to SMEs. By law, banks must maintain a minimum chartered capital of VND 3 trillion (roughly USD 134 million).
Currently, the ceiling for total foreign ownership in a Vietnamese bank remains at 30 percent, with a 5 percent limit for non-strategic individual investors, a 15 percent limit for non-strategic institutional investors, and a 20 percent limit for strategic institutional partners. In early 2017, the Prime Minister promised to increase the limits of foreign ownership in local banks, though he did not specify the new ceiling. Prudential measures and regulations apply the same to domestic and foreign banks.
We are unaware of any lost correspondent-banking relationships in the past three years. However, after the SBV took over three failing banks (Ocean Bank, Construction Bank, and Global Petro Commercial Bank (GP Bank)), and placed Dong A Bank under special supervision in 2015, correspondent-banking relationships with those banks may have been limited.
Vietnam has begun studying blockchain technologies in financial services and SBV established a steering committee on financial technology (fintech) in March 2017.
Foreign Exchange and Remittances
Foreign Exchange Policies
There are no restrictions on foreign investors converting and repatriating earnings or investment capital from Vietnam. However, funds associated with any form of investment cannot be freely converted into any world currency.
The SBV has a mechanism to determine the interbank reference exchange rate. In order to provide flexibility in responding to exchange rate volatility, the SBV now announces the interbank reference exchange rate daily. The rate is determined based on the previous day’s average interbank exchange rates, taking into account movements in the currencies of Vietnam’s major trading and investment partners.
Remittance Policies
Vietnam allows foreign businesses to remit profits, capital contributions, and other legal investment activity revenues in hard currency. There are no time constraints on remittances or limitations on outflow remittances of profits or revenue. However, outward foreign currency transactions require certain supporting documents (such as audited financial statements, import/foreign-service procurement contracts and proof of tax obligation fulfillment, and approval of the SBV on loan contracts etc.).
Sovereign Wealth Funds
The State Capital Investment Corporation (SCIC) technically qualifies as a sovereign wealth fund (SWF), as its mandate is to invest dividends and proceeds from privatization in assets outside of the state-owned sector. It was estimated at USD 2.8 billion in June 2016 (an updated estimate is not available.) However, the SCIC does not manage or invest balance-of-payment surpluses, official foreign currency operations, government transfer payments, fiscal surpluses, or surpluses from resource exports. SCIC’s primary mandate is to manage the non-privatized portion of SOEs. By July 2017, the SCIC managed a portfolio of 141 equitized SOEs, including 134 joint-stock companies, and three limited companies in various sectors. The SCIC invests 100 percent of its portfolio in Vietnam, and the SCIC’s investment of dividends and divestment proceeds does not appear to have any ramifications for U.S. investors. The SCIC budget is reasonably transparent, audited, and can be found at http://www.scic.vn/ .
In addition, the SCIC is working toward membership in the IMF-hosted International Working Group on SWFs.
Article: "Finance begins distributing estimates of the state's current expenditures, revenues, and public investment projects" That's a lot of words for one thing. You know what it is? The budget has the new exchange rate in it. These steps will reveal the new exchange rate.
Question: "When they release the new rate in country will it be international? Will we be able to exchange or will there be a delay in between?" When the CBI releases the new exchange rate, that's it. It's automatic. There's only one exchange rate. There aren't two...
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Frank26
What sense would it make for Iraq to join, at a program rate, the WTO? It makes no sense. The Vietnamese dong it's in the WTO but...they are totally different. They deal with China and they have undervalued currency. Vietnam is a totally different scenario. Going into the WTO at a program rate is ridiculous...Everything is waiting for the new exchange rate so everything will make sense...
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💢 Latest from Frank 26 ~ Iraq IQD NEWS 6.26.24
FRANK26: AL SUDANI (IRAQ PRIME MINISTRY) and his team go to the US treasury and deliver the monetary reforms that Sudani is going to implement for RV and RI of the IQD.
That is the reason why they are reforming the banking sector, which will increase the value of the Iraqi dinar.
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💢 Latest from Frank ~ 6.19.24
Frank: [The new ATMs] are everywhere now. It's not hundreds, it's not thousands, it's tens of thousands of them. They are everywhere that an Iraqi citizen can walk to. They are at their hookahs...mosques, barber shops...street..banks...corners, they're everywhere...There's going to be a massive rush going into the banks.
Iraq is preparing to establish a project that will change the oil map.. Will it affect energy producers?"
If you change the oil map, you change the exchange rate/the value of the currency of Iraq.
Quote: "Iraq's financial budget for the current year included the new pipeline project at an amount estimated at approximately 6.5 billion Iraqi dinars ($4.9 billion)"
I don't need to go any further than that...1.32 is what the citizens of Iraq are potentially in a position to receive. This article proves that there's a different rate in the budget...
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The investment law is being passed.You'll see it very soon. They have no choice. Sudani is extremely happy about it because that's how you're going to be able to get these new contract with the new exchange rate.
What is the time of the float? ...I want to watch the float. I want to calculate exactly just when I want to go ahead and exchange the rest of my dinar. Here's the problem. In the same manner they are giving [Firefly/Iraq citizens] a specific amount of time to turn them in, they will give us a specific amount of time to turn them in.
Did you see...Iraq and Kuwait are now linking with their fiber optics? This is extremely important part of the monetary reform...They know it's no longer a secret what is happening with the exchange rate of the Iraqi dinar.
Things are going perfect. Everything is moving with such perfection that no one can do anything about this right now.
How much time will they [Iraqi citizens] have to trade in 3 zero notes?
[Boot's on the ground Firefly's bank friend] told Firefly you're going to be given a short amount of time to exchange your Iraqi dinar.This is the very first time ever that we have information from a very good source [saying] you're going to have a specific amount of time to trade in your 3 zero notes.
Today, Saturday, Deputy Speaker of Parliament Mohsen Al-Mandalawi considered the US Congress’ draft against the head of the judiciary, Judge Faiq Zaidan, a dangerous precedent and a violation of Iraq’s sovereignty.
Al-Mandalawi’s office stated in a statement received by Al-Rabaa, “The latter considered what was reported by American media regarding Republican Congressman (Mike Waltz) submitting a draft law amendment and including a clause affecting the head of the Supreme Judicial Council, Faiq Zaidan, as a dangerous precedent to be added to the record of actions of the Biden government, which supported In public, it is the most horrific mass massacre committed by Zionist gangs against the people of Gaza, and today they threaten to attack the sovereignty of states and their symbols without a legal justification that allows them to do so.”
According to the statement, Al-Mandalawi called on the Ministry of Foreign Affairs to “move through its diplomatic means and deliver a direct message that Iraq, with all its authorities, rejects such offensive interventions, which came from the American Congressman, describing them as tools of influence for other countries,” stressing that “Iraq is a sovereign country, and its relations with… “All countries are built on the foundation of mutual respect.”
He stressed that “the bill that is to be submitted to Congress by the Republican representative, if approved, will constitute a dangerous turning point that will affect, in one way or another, the nature of bilateral relations between the two countries.”
Al-Mandlawi stressed the full support of the House of Representatives for the “Chief of the Judicial Authority, and its absolute rejection of any abuse of his authority and that of all authorities,” noting “the keenness of the Presidency of the Council to follow up on these illegal actions and take all necessary measures to reject them.”
...all of this information...is coming from Iraq directly, and we have some sources there ...was at the Baghdad International Airport and was able to use his credit/debit card. An Iraqi citizen was able to use his credit debit card to not only obtain lower denominations on the ATM, but also purchase airline tickets – in the ATM – which I didn't know you could do...
He did have a rate, and he was...successfully able to transact business in Iraq - on the Iraqi dinar
...He said, our time will come in a couple of days, a couple more days, but I think he's probably right...This should be a bang up weekend for us.
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from Iraq, from the source in Fallujah and this source was saying that we would have the Iraqi 2024 budget in the gazette over this weekend, that would be Saturday or Sunday.
...when we get to the point when things are very quiet, which they are...we know that we're close, and we know that...this is about to go...
