"RV UPDATE" BY RUMTEL, CANDY KISSES & BEARDED PATRIOT, 6 AUGUST

 Sat. 5 Aug. Rumtel Update:

• CBI has the budget. Banks have until Sunday to “synch up” with the Central Bank of Iraq.
• Action on Sunday will drive the Dinar rate DOWN to 1,300 to 1 US Dollar. This will match the rate on the street and the budget.
• CBI will then “revalue” to 1,000 to 1. Target date is Wednesday.
• CBI will then “drop the 3 zeros” to 1-$1 with the US dollar, at which point the Dinar will be tradable and “floating” on the Forex. It will NOT float down.
• Political hurdles have been cleared.
• “Health crisis” of a major figure was an assassination attempt. Failed.
• No moves left.
• First major figure to “leave the stage” on Thursday 10 Aug.
• This is the plan as of today Sat. 5 Aug, as I understand it from separate sources. We’ll see. All we can do is wait and hope that events unfold along these lines. Enjoy your weekend. Watch some sports and pray this in.

TNT Candy Kisses: The Iraqi Parliamentary Finance Committee stated on Sat. 5 Aug. that the Iraqi budget (that contained the new Iraqi Dinar Rate) would be implemented sometime this week. Clare: And finally – 50 days after its approval, the budget enters into force.

Sat. 5 Aug. Bearded Patriot

• We have good news and not so good news. I will start with the “Not so good news”
• The Iraqis have decided NOT to publish the new rate into the Gazette this Saturday.  In order for me to explain why….I will be crossing the line of agreement of information (even though you have the right to know).  So, I won’t be able to explain why in detail to you.  Please try to understand. 
• There’s a definite and final BACKWALL that was established by all participating countries. This slight delay will help some countries that were not ready for the RV, therefore giving them the time to complete their efforts so they too will be a part of this RV. 
• THE GOOD NEWS is that due to the slight delay, this will allow other countries, including but not limited to Iraq, Dong, Dinar and all other participating countries for their currency values to “INCREASE” before we move forward. 
• I can tell you that this will be completed before the end of August. 
• Please forgive me for missing this date of RV.  ALL SIGNS, INDICATIONS AND COMMUNICATIONS were there and I had so much confidence that it was happening.  LET ME BE VERY CLEAR, there was NEVER EVER ANY INTENTION OR PURPOSEFUL MISDIRECTION TAKEN ON MY PART TO HURT OR HARM ANYONE AT ANYTIME REGARDING THE TIMING OF THIS EVENT.  (I can just hear the trolls already!)
• Although this is a setback….it’s not the end by far.  We will still have the RV,  it will be just a couple of weeks from now.

JUDY NOTE, 6 AUGUST

 Judy Note: Word has been received that the Iraqi Parliament had received the new budget with the new Iraqi Dinar Rate in it and planned that new rate would be implemented this week; the Iraqi Dinar would be revalued at a 1:1 with the USD and then begin trading up on the Forex on Wed. 9 Aug – the same date  that 25,000 US Navy and Marines, six Maritime Commands and seven Fleets would begin a large scale exercise on Global conflict that covered 22 Time Zones across the world – and would end on Fri. 18 Aug.

The next day after the Dinar revalued on Thurs. 10 Aug. a “major figure will leave the stage.”

Last Friday the BRICS nations set the Back Wall for the RV at Sat. 12 Aug.

On the Banking side, Bank of America was closing US branches in August. Banks had until Sun. 6 Aug. to synch up with the Central Bank of Iraq and it’s new Iraqi Dinar Rate; Wells Fargo customers were reporting that their deposits were disappearing from their accounts, plus on Mon. 7 Aug. the World’s largest bank, the United Bank of Switzerland American Group, was making sweeping changes to restructure the bank.

"STATUS OF THE RV" BY IQD IRAQ & VND VIETNAM, 5 AUGUST

 STATUS OF THE RV

So, on Monday Representative Baqir Al-Saadi expected that the dollar exchange rate against the dinar will continue to decline in the coming days.

Al-Saadi said, that common external-internal factors were behind the rise in the exchange rates of the dollar in the parallel market in Iraq in recent weeks, in a way that raised public concern.

In today’s news the CBI tells us that on Thursday (August 3, 2023), the Central Bank of Iraq revealed new decisions that will be issued next week to reduce the price of the dollar in Iraq to be continued.

We know this is the fourth time the CBI told us they were implementing a package of currency reforms.

On Thursday, the Central Bank identified three categories of exchange companies for selling the dollar to travelers, and while it revealed a proposal regarding the entry of imported goods through the border crossings, it indicated that there are new decisions that will be issued next week that may contribute to lowering the price of the dollar.

This week I had an interesting conversation with my CBI contact in Iraq.

I was told to expect yet another “official” rate change of the dinar from the 1320 rate.

I was told the new measures were trying to get as close to 1000 rate as possible.

I asked about a more specific number, but I could not get a commitment on the actual range.

However, I was told that the measures to be taken in the coming weeks should move the dinar within this range.

What is the plan once this new rate range is met?

I was told that the CBI could then go ahead with the project to delete the zeros.

We know that when this new rate is rolled out the CBI will then drop three zeros from the currency.

We need to print more IQD I hope will be smaller category of currency BY NADER FROM MID EAST

The Iraq CBI - The Iraq GOI - The Iraq Exchange Rate

"IRAQI PARLIAMENTARY FINANCE COMMITTE DISCUSSING SOARING DOLLAR EXHANGE RATE WITH PRIME MINISTER", 5 AUGUST

Iraqi Parliamentary Finance Committee to Discuss Soaring Dollar Exchange Rate with Prime Minister

Shafaq News/ The Parliamentary Finance Committee of Iraq is set to hold an imminent meeting with Prime Minister Mohammad Shia al-Sudani to discuss the reasons behind the escalating exchange rate of the U.S. dollar and the measures the government is taking to address this crisis, a committee member disclosed on Saturday.

"The Parliamentary Finance Committee had hosted a meeting with the Governor of the Central Bank, Ali al-Allaq, to deliberate the causes behind the steep rise in the dollar exchange rate against the Iraqi dinar in the market and the procedures and decisions taken by the Central Bank to handle the crisis," Lawmaker Yehya al-Mohammadi told Shafaq News Agency. 

"The committee is set to meet with Prime Minister Mohammad al-Sudani to examine the government's measures and decisions it made to resolve the dollar crisis," he added. 

Al-Mohammadi said that "the committee will also host officials from the Ministry of Finance, the Tax Department, Customs, and leaders from security agencies to discuss their measures to curb the smuggling of foreign currency abroad."

https://shafaq.com/en/Iraq-News/Iraqi-Parliamentary-Finance-Committee-to-Discuss-Soaring-Dollar-Exchange-Rate-with-Prime-Minister

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Iraq and Kuwait seek to resolve disputes over maritime border and oilfields

Iraq and Kuwait pledged on Sunday to work towards resolving issues dating back to Saddam Hussein’s 1990 invasion of the oil-rich country.

Top of the agenda at a meeting in Baghdad were the disputes over the maritime border demarcation and joint oilfields.

“We discussed the pending issues between the two sides and we also discussed ways to protect the good relations between the two countries and develop them,” Iraqi Foreign Minster Fuad Hussein said at a joint press conference with Kuwaiti Foreign Minister Sheikh Salem Abdullah Al Jaber Al Sabah.

The technical-legal committee on the maritime border will meet in Baghdad on August 14, followed by a delegation visit from Kuwaiti Oil Minister Saad Al Barrak on September 10.

“There were extensive discussions on the [maritime border] issue and both sides expressed their opinions and agreed to continue discussions,” Mr Hussein said.

A supreme committee linked to Iraqi Foreign Ministry will lead the discussions and supervise all other subcommittees, he added.

Sheikh Salem hailed Sunday's discussions as “very fruitful, reflecting the deepness of the strong bilateral relations between our countries”.

“We are determined to work hand-in-hand to develop these relations and to develop and push them to new horizons,” he said.

Both countries realised the importance of solving the issues and “on top of them the issue of ending the maritime border demarcation”, he said.

The land border between the two neighbours was demarcated by the UN after the Iraqi army was pushed out of Kuwait. But the maritime boundary was left for the two sides to resolve.

Since the 2003 US-led invasion that toppled Saddam, both countries have been meeting to resolve this and several other issues, with little progress made.

Iraqi fishermen have complained of harassment by Kuwaiti fishermen, alleging that they do not respect maritime boundaries, particularly regarding navigation in the Khor Abdullah, a waterway that separates Iraq from Kuwait and is Iraq's gateway to the Gulf.

Iraq is constructing the multi-billion dollar Grand Port of Al Faw on Khor Abdullah, which at in the heart of the country's ambitious plan to connect Asia to Europe through rail and road networks that traverse Turkey.

Early last year, Iraq paid its last war reparations to Kuwait, settling the $52.4 billion of claims made for damage inflicted during the 1990 invasion.

Both ministers also discussed the issue of Kuwaiti nationals who had gone missing during the invasion, Kuwaiti-owned properties in the southern province of Basra, fishing, the fight against drugs trafficking and the mutual facilitation of visits by Iraqi and Kuwaiti citizens.

To boost trade, the Kuwaiti minister announced the opening a of commercial attache office at the Kuwaiti consulate in Basra.

Iraqi Minister of Transport Razzaq Al Saadawi and Basra Governor Asaad Al Eidani, as well as representatives from the Oil Ministry, attended the meeting.

Kuwait is also in dispute with Iran over their maritime border and Al Durra offshore gasfield in the Arabian Gulf.

Kuwait and Saudi Arabia say they have “exclusive rights” to Al Durra and called on Iran to validate its claim by first demarcating its own maritime borders.

Iran previously claimed a stake in the field and described a Kuwaiti-Saudi agreement signed last year to develop the field as “illegal”.

https://www.thenationalnews.com/mena/iraq/2023/07/30/iraq-and-kuwait-seek-to-resolve-disputes-over-maritime-border-and-oilfields/

"Interest Rate Hedge ETFs on the Rise Again", 5 AUGUST

 Interest rate hedge ETFs are once again rising, especially after the Fed’s 11th rate hike. The central bank, in its latest meeting, raised interest rates by a quarter-percentage point and signaled the possibility of further increases ahead (read: ETFs to Gain as Fed Raises Rates to a 22-Year High).

The rate hike brings the benchmark interest rate, the federal funds rate, to 5.25-5.50%, the highest level since March 2001. “Recent indicators suggest that economic activity has been expanding at a moderate pace," the Fed said in its statement. "Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated." Although inflation has dropped from the peak of 9.1%, it has a long way to go to meet the Federal Reserve's 2% target.

The American economy surprisingly picked up steam in the second quarter, thanks to resilience among consumers and businesses in the face of high interest rates. This is especially true as the GDP grew 2.4% annually from 2% growth in the first quarter.

Additionally, the surge in yields contributed to the rally in these ETFs. Treasury yields spiked to the highs of 2023 in the Aug 2 trading session, buoyed by plans of government debt issuance and signs of the labor market’s enduring strength. The 10-year yields topped 4.12%, marking the highest level since November 2022, while 30-year yields reached their highest level in nearly nine months to about 4.2% (read: Inverse Treasury ETFs Spike as Yields Hit 2023 Highs).

Higher Rates: Pros and Cons

The increase in interest rates has made borrowing expensive, pushed up the cost of buying a new car or house, increased the cost of carrying credit card debt and thus slowed down the economic growth. This will further boost the U.S. dollar against the basket of other currencies, thereby leaving a huge impact on commodity-linked investments. Thus, a rising-rate environment will hurt a number of segments.

In particular, high dividend-paying sectors such as utilities and real estate would be the worst hit, given their higher sensitivity to rising interest rates. Additionally, securities in capital-intensive sectors like telecom would also be impacted by higher rates. However, higher interest rates usually indicate a healthy economy, leading to greater consumer power and increased IT spending. This combination of factors will result in increased industrial activity and a pickup in consumer demand.

This has compelled investors to flock to the interest rate hedge ETFs to protect themselves from the rising rate environment. We have highlighted a few of them:

Advocate Rising Rate Hedge ETF (RRH)

Advocate Rising Rate Hedge ETF is a multi-asset ETF that seeks to generate capital appreciation during periods of rising long-term interest rates, specifically interest rates, with maturities of five years or longer. It is an actively managed fund and seeks to achieve its investment objective primarily by investing in a combination of U.S. Treasury securities; forwards, futures or options on various currencies; long and short positions on the short and long-end of the Treasury or swap yield curve via futures, swaps, forwards and other over-the-counter derivatives; long and short positions on equity indexes and investment companies, including ETFs; and commodity futures and options.

Advocate Rising Rate Hedge ETF has accumulated $7.1 million in its asset base and charges 85 bps in annual fees. It trades in an average daily volume of 29,000 shares and has gained 8.7% in a month.

Simplify Interest Rate Hedge ETF (PFIX)

Simplify Interest Rate Hedge ETF is the first ETF providing a simple, direct and transparent interest rate hedge. It seeks to provide a hedge against a sharp increase in long-term interest rates and benefit from market stress when fixed-income volatility increases while providing the potential for income.

Simplify Interest Rate Hedge ETF holds a large position in over-the-counter interest rate options intended to provide a direct and transparent convex exposure to large upward moves in interest rates and interest rate volatility. It invests in long-dated put options on 20-year US Treasury bonds to offer the most liquid and the most cost-efficient way of getting interest rate protection. PFIX has accumulated $204.3 million in its asset base and trades in an average daily volume of 117,000 shares. It charges 50 bps in annual fees and has surged 15% in a month.

Global X Interest Rate Hedge ETF (RATE)

Global X Interest Rate Hedge ETF is an actively managed fund that seeks to provide a hedge against sharp increases in long-term U.S. interest rates and is expected to benefit during periods of market stress when interest rate volatility is elevated. It seeks to achieve its investment objective primarily by investing in long interest rate swap options and long positions in short-term U.S. Treasury securities (read: Rates To Remain Higher For Longer? ETFs to Hedge the Trend).

Global X Interest Rate Hedge ETF has amassed $3.3 million in its asset base and trades in average daily volume of 1,000 shares. It charges 47 bps in fees per year and has gained 5.3% in a month.

https://www.nasdaq.com/articles/interest-rate-hedge-etfs-on-the-rise-again