Thursday, May 2, 2024
His financial advisor: The dollar exchange rate in the parallel market is gradually approaching the official one, 2 MAY
His financial advisor: The dollar exchange rate in the parallel market is gradually approaching the official one
Today, Thursday, Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Saleh, explained the dangers of the exchange rate fluctuations in the event that demands for floating the dinar are met, while confirming that the dollar exchange rate in the parallel market is gradually approaching the official one.
Saleh said to the official agency, followed by Mawazine News, that “calls for floating the dinar to end the gap between the official exchange rate and the parallel market may be possible in an economy in which the free market alone influences the movement of the balance of payments, and not in an economy in which the rentier government sector is dominant and generates currency reserves.”
Foreign currency, as the monetary authority alone is the main source of supply of foreign currency that meets the desired demand for foreign exchange in the money market, to provide stability in this market and achieve a desired and homogeneous exchange rate through the interventionist role played by monetary policy.
He added, "Claims for flotation mean in all cases adopting the prevailing exchange rate in the parallel market to achieve the goal of stability and balance in the official exchange rate itself at a new point reached by the market at the end of the supposed flotation policy and returning to stability again.
Also, the flotation scenario means in all cases the withdrawal of the authority." Cash from being an essential central supply of foreign currency, to be replaced by new forces supplying foreign currency from free market makers, which only have a weak, limited supply of foreign exchange, and at the same time they carry an uncontrolled package of inflationary expectations and are called in economic literature the forces generating expectations. "inflationary".
He continued, "The hypothetical new supply forces for foreign exchange adopted by the exchange market in that scenario will mean the dominance of supply forces from speculators with very limited quantities of foreign exchange available for supply in the parallel market, matched by an open demand for foreign currency on the part of the market that undoubtedly exceeds that limited parallel supply." of foreign exchange, perhaps by more than 10 times at least in our estimation, and such a policy of floating to achieve a homogeneous equilibrium exchange rate would be an open and perhaps unruly situation, as long as the central government supply of foreign currency would be absent from the market, and we would not then obtain any equilibrium point in the exchange rate.
An exchange rate that is sought to float except with a widespread deterioration of the exchange rate as long as it is controlled by forces that generate inflationary expectations, as we noted in a highly unilateral rentier economy, and it is an exchange rate whose mechanisms will move in a market that is incomplete in terms of production in its compensation for the required supply of goods and services.
Saleh warned, “T hen no one knows how much the new exchange rate resulting from the flotation will be, which will undoubtedly be accompanied by a prior wave of inflationary expectations, which is a dangerous wave whose directions are difficult to control, which may force monetary policy according to this floating scenario by intervening with foreign reserves.” It is an unjustified extravagance in foreign exchange to impose a state of stability in the general level of prices again just to adopt it when exchange rates reach low rates, and no one knows how much they will reach.”
He pointed out that "the difference in the two prices currently, in which the parallel market is gradually approaching the official market, did not come about due to the short supply of foreign exchange at the Monetary Authority, but rather came about due to a sudden external factor imposed by the compliance platform and administrative audit restrictions on external transfer movements, which is a matter related to the deficit in the authority's reserves."
Cash is about bringing the two prices closer in light of a very high level of foreign reserves. The commercial efficiency of those reserves is the highest in Iraq’s financial history, and they are covered in foreign currency that touches more than 16 months of imports compared to the global standard of three months of imports. link
"IRAQI BANKS GO DIGITAL" BY GOLDILOCKS, 2 MAY
GOLDILOCKS
Iraqi Banks go Digital:
"His advisor: Al-Sudani succeeded in digital transfer in banks"
This is really good news for our investment. The Iraqi banks are now capable of digital transfers. When Iraq regulates their digital economy after MICA is finished (5-28-24) and Stablecoins become law on June 30th, 2024, we will begin looking toward credit valuation adjustments across the globe.
The difference this time around is that Iraq will be included. We still have to see what that means when we get to Q3. There will be many assets being refactored into the new economy after these dates.
© Goldilocks
https://www.mawazin.net/Details.aspx?jimare=247128
Coffee with MarkZ. 05/02/2024
"ABOUT THE RECENT NEWS OF IRAQ" PART. 3 BY MNT GOAT, 2 MAY
..So, what is the standard they are trying to control?
There is only a 2% allowed variance (+ or -) from the official CBI rate the parallel market and they now are way beyond that. So, they have to get it under control and then be able to hold it for 6 months. I quote from today’s article titled “A FIXED OR FIXED EXCHANGE SYSTEM FOR THE IRAQI DINAR” here is the quote – “This stage witnessed a gap of up to (1320 – 1550), meaning a margin of 230 points and an exchange gap of (approximately 17%).” We can clearly see in this article that the gap is not 2% (+ or -) but 17%. There is work to be done but don’t get discouraged as they will find a solution and it will allow the process to move ahead again. Meanwhile we see the train is stalled at a station waiting to be given the go ahead once again.
Oh gosh… another 6 months to hold the 2% (+ or -) once they finally do get it under control ☹? Yeh folks I don’t make up the rules I only report in my blog what they are telling us. Based on today’s situation and everything else going on in Iraq the IMF might want to waive this 3 month rule. We just have to wait and see. I am only telling you from the past the IMF did enforce it and I believe they might or more than likely will NOT enforce it again. I hope not.
Meanwhile Prime Minister Al-Sudani expressed Iraq’s aspiration to cooperate with major international companies in the field of technology and information technology to move to the digital economy and improve the direction of investments. He also expressed the Iraqi government’s desire to cooperate with technology companies and benefit from them in developing the agricultural sector.
In Iraq, indicating that agriculture is a priority in the government program. But I have to tell you that this is all excellent new but not what is holding up the reinstatement process. The Obama error policies for Iraq are slowing fading. There is a shift in thinking. Somehow there is a middle range of where they are going that incorporates both the Bush and Obama policies. So, please, please don’t tell me that the US and even global politics is not important. You are a naive thinker in these terms. I have demonstrated to you so much evidence already that Iraq DOES NOT have sole control over their own destiny. This is no longer a point of contention and a question you should be asking.
We must now buckle down and pray and pray like never before for the results of the success of Al-Sudani and his trip to Washington. Pray for the U.S. in that there are strong enough representatives in Congress and the Senate who will stand up and continue to fight to uphold the US Constitution and keep fighting this Washington corruption. Pray that that God’s Hand will intervene and save our great country.
"ABOUT THE RECENT NEWS OF IRAQ" PART. 2 BY MNT GOAT, 2 MAY
..I have told you this many times already in the recent past. I quote from the article – “ The expert in economic affairs, Safwan Qusay, confirmed that there is a joint committee between the US Federal Reserve and the Iraqi Central Bank in order to lift sanctions on some banks.” There are two good articles on this subject matter in the articles section today and I encourage you to go read them. They are titled “PRIME MINISTER’S ADVISOR: WE WILL SEE THE DOLLAR FALL ON THE BLACK MARKET SOON” and “ECONOMIST: THERE IS SERIOUS WORK TO LIFT US SANCTIONS ON IRAQI BANKS”
Sometime very soon Iraq will take the Iraqi dinar and assign a nominal, honest and true rate to it reflecting its “rentier” value as is today and not wait for years or decades more. How do I know all this?
Iraq can’t afford to keep following this game of waiting years and yet more years down the road to rebuild Iraq economy first (Obama’s policy). If you have been in this investment prior to the Obama era as president you can clearly see a change in direction from the U.S. Bush policy as to how they will work with Iraq in dealing with the dinar. They have given the Obama plan time to work and it simply is not working for Iraq in this timely manner as planned. What do you do? You change plans….. Why did Obama change the direction from bush so much? Was it really to help Iraq or just the pretense of helping themselves, as they told the public it was for the people. Really? Meanwhile they filled their pockets with Iraq’s riches. Yes, twenty years of it already. When will it end? It is ending now! 😊
We all know the answer as we witnessed it play out over these last two decades with the early Obama era illegal exchanges and now the kickbacks and commissions from the variance in the exchange rates (official vs parallel). This is why they finally sanctioned the banks. This is a good sign for us investors as it shows the paradigm shift is moving away from the corrupt Obama era RV requirements and it is now picking up momentum.
We can also now see, in retrospect, why Iraq didn’t just let Dr Shabibi follow through and reinstate the dinar in 2013, as was planned. It was a well- orchestrated conspiracy using their puppet Nori al-Maliki to stop the reinstatement process. You have to be an idiot not to see it. Was it because they wanted to continue the corruption, thus when economists talk about how the U.S. sucking Iraq dry this is what they mean. Do you get it now? Yes, it’s that golden egg goose I keep talking about…. ☹
Having said all this, let me also say that the current prime minister collectively with the CBI is now working towards busting through this Obama era policy as to how to handle Iraq and to change the dinar now even while in the rentier economy. Isn’t 20 years of corruption enough? The old Obama era paradigm is shifting fast and Al-Sudani is the one the Coordination Framework picked to do it.
Al-Sudani came right out and openly stated his new policy and told us the dinar is now worth more than the dollar, even in the “rentier” economy. Get it? Can you see it folks? The article just told us they are still in the rentier economy so how can Al-Sudani say such a thing openly? (the shift has begun) This is the paradigm shift and it has begun. In fact, it is more advanced than most believe, thus this de-dollarization and the latest trip to Washington DC, thus also these articles today.
Folks there is no secret now as to why the reinstatement is being held up. They are telling us straight out and not hiding anything. The only issue now as investors is ARE YOU LISTENING to what they are telling you?
All you have to do is listen and stop all the hype and nonsensical thinking. The RV is not going to happen everyday or any day now. It is NOT just going to “pop” on FOREX unexpectedly. Instead, we will all have a pretty good idea what will get it moving ahead successfully once again. What will move it ahead? I just told you…. 😊.
So, we are told once again in today’s article what the problem is and so can they fix this parallel market situation and get the dollar under control, meaning be able to effectively set an “official” rate and hold it. Hey… by the way…. this 2 % standard by the IMF (not Obama) is nothing new. Didn’t we all read about this a decade ago under Dr Shabibi?..BE CONTINUED
"ABOUT THE RECENT NEWS OF IRAQ" PART. 1 BY MNT GOAT, 2 MAY
Let’s take a look at the recent news. It may sound gloomy up to this point in my Newsletter but from this point on my RV Status only gets better and better 😊 😊 😊. Yes, lots of “WOW!” news. I mean solid “WOW!” news not some stupid, hyped up, garbage intel.
In today’s news many articles stand out more than the others. These articles once again talk about the Iraqi dinar and how to manage it in the future. What other articles of the past told us was to outline the problem rather than solid solutions to the problem. But in today’s news they tell us the solution….. hurry, hurry, hurry 😊 😊 😊. Why so happy, since we knew the solution all along that I am about to describe to you today? My point is now they know it and are openly telling the Iraqi people and the world. That’s my point….get it?
We know this problems of sanctioning the banks is holding back the final push of the reinstatement. Part of the solution, as they tell in an article entitled “A FIXED OR FIXED EXCHANGE SYSTEM FOR THE IRAQI DINAR” helps us understand the solution better. Please, please go read this article as it explains in very good detail why the reinstatement of the dinar is stalled, what the problem is and what is the part of the solution (which I believe they are about to implement). Again, it gives us the issue and also the suggested solution. But I believe at this point it is much more than a suggestion. WOW, WOW, WOW.
Now at least you can understand the issue as to the hold up by the US Treasury and the problem in implementing a solution. Again, I will tell you that the reinstatement plan of 2011 tells us they intend to repeg the dinar and get off the de facto peg to the sole dollar and move to a new peg of a basket currencies. Sounds to me like they are getting ready to do it and are in the last phases of discussion. So, what comes out in an article this period?
An article is telling us exactly what I have been telling you all along. Folks they are educating the public about the old de facto peg they are now on to the new peg they intend to use in this article. Go read the article! Enough said…. Didn’t they just tell us last week in an article that to execute the Project to Delete the Zeros needed an educational process first?
In another article titled “RENTIERISM” HITS IRAQ’S ECONOMY DESPITE TRILLIONS OF REVENUES” we read that and I quote from the article – “Iraq cannot get out of the cycle of rentier economy due to the lack of infrastructure for the industrial and agricultural economic sectors and the absence of a real investor,” adding that “the surplus funds in the general budget are not directed towards… Investment, but rather towards expenditure”.What they are telling is not new. We already know this as they have told us this a million times already. They are telling us again that the Iraqi economy is NOT sustainable. What the hell does this mean?
It means that each month they collect revenues from the “rentier” sales of oil. Then they spend the revenue on salaries, retirement, reconstruction projects, military and other social benefits. Not much remains at the end. Easy in and easy out. Like renting an apartment. You work, earn money them pay rent and utilities. When you move out you have nothing to show for it. You are just back to where you started.
But if you save enough you can buy your own home and it allows you to get out of the renting business and into your own home…. right? This is what Iraq is doing. Remember all the assets (reserves, gold, customs and tariffs, phophate, etc)? But what is your status when you buy a home? Yes, you are currently renting (rentier economy). How does this change occur? There is first a bank loan approval (US Treasury and IMF signoff for the RV), then the closing (the Project to delete the zeros), they the move into your new home (the reinstatement to FOREX). Does these steps now make sense to you? Do you get it now?
So you see that in the Obama plan of recovery for Iraq it calls for Iraq to be already living in the home to RV and this simply did not make any sense. How can you live in the home when you are still trying to purchase it? Besides the time consumed so far we witnessed in this RV saga was the time to be taken to save the money to buy the new home but it was instead being sucked up by intentional corruption led by the Obama administration policies for Iraq. Then came Covid and ISIS besides.
Since the overall global plan is to revitalize Iraq and make Iraq a central hub/clearing house for the middle east, then they need to progress out of the rentier economy and buy their new home (liberate their currency). In other words, ditch the socialistic economy left over from under Saddam. Why are they so afraid to call it what it is as “socialism” and instead call it a “rentier” economy? This is the globalist influence as their goal is socialism but only where they plan it to occur and to drag down a nation. Iraq right now is not in that plan while we can clearly see the U.S. and Europe is (subject for another time).
So, what is the solution?
In another article today they are telling us more of the solution. They tell us they need to fix the issue with the banks and how they abuse the dollar for making money off the spread between the official rate the parallel driven rate, their commission. This is billions of dollars and it’s hard to give up. These are the sanctioned banks and this issue must be resolved somehow and these sanctions lifted for us to move ahead with the process of the dinar RV. Get it? I can not sit here writing this Newsletter today telling you I have the solution either. The RV is NOT the solution I can tell you this much. They would have done it already if it was. Instead, the RV is a byproduct of fixing this issue as it will allow the RV process to continue. Get it?......BE CONTINUED
...https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/EXCERPTS OF MNT GOAT: "WHY WOULD IRAQ EVEN NEED THIS SOVEREIGN FUND?" , 19 SEPT
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