AL-SUDANI LOOKS AT A LARGE TOURISM PROJECT IN CENTRAL BAGHDAD AND CONFIRMS READINESS TO ATTRACT CAPITAL
The Prime Minister, Muhammad Shia Al-Sudani, reviewed today, Sunday, the initial plans and the overall drawings of the project to build a large tourist complex in central Baghdad, which was submitted by the Qatari Investment Holding Company, which specializes in real estate development and investment in tourist destinations.
A government statement, of which {Euphrates News} received a copy, stated that “Al-Sudani confirmed, during his review of the plans and models, that the government is serious with all its apparatuses in working to make Iraq an ideal and attractive investment environment for capital, in a way that enables the Iraqi economy to open up and bridge interdependence with the global economy.” This will be reflected locally in creating job opportunities and opening more windows for development.”
More news….
STATUS OF THE RV
So, last week the news from Iraq told us there was going to be more currency reforms this week, that would help to reduce the price of the dollar. We must keep in mind what they are talking about. They are NOT talking about reducing the value of the dollar but the “price” of the dollar versus the price of the dinar on the streets. It is all about taking dinars to buy the dollars. So, if it takes less dinar to buy the dollar the price of the dinar went up. This is how it works. Yes, supply and demand do have lots to do with it but we must think about what is going on. These dollars that are leaving the CBI are now mostly outside of the new electronic payments system of the currency auctions as they are dollars for miscellaneous expenses (travel, foreign tuitions, petty cash, etc) and not for payment of imports of goods and services specifically as the new electronic system tracks. These type of payments do not fall into the categories to be tracked on the new system. This is the negative side of the new tracking payment system. This is why they are having all the problems in stabilizing the rate of the dinar according to the “official rate”.
The way I read the CBI is that they consider a good balance and do not consider there to be as much of a problem as the US Treasury wants to believe. They keep telling the US it is under control and they can track these other “off system” outlays of dollars. So, what is the problem here then? Why do we keep reading article after article about what they call the “parallel market” and its rates as high as 1450-1500? My first impulse is to say who cares and this is also the opinion of the CBI. But the CBI must be concerned because the corrupt have very covert ways of smuggling dollars out of the CBI and they are using these dollars paid out for “miscellaneous expenses” as a means to do it. Let’s be reasonable. If these are legitimate expenses for misc then why are these dollars ending up on the black market? It does not take a rocket scientist to see the problem here. This alone tells us about the legitimacy of these expanses. But the more important question is why is the CBI even allowing these street venders still to operate? They are the ones dring up the rate of the dollar. I thought they supposedly shut them all down? Do you see the cycle of the cash flow here? Do you see what is causing the problem?
To put this all into some kind of perspective and to sum it all up there is an article today that helps to clarify what the CBI is thinking. That the so-called parallel market is not real and that what is in circulation of foreign currency is a black market controlled by speculators by withdrawing the official cash dollar from some non-authorized exchangers and outlets for the purpose of covering illegal imports and through unofficial border crossings. In the articles today we read about experts in financial affairs that have identified a set of solutions that would create stability in the exchange rate of the dollar.
At the forefront of these solutions the tightening of control over border crossings to implement the proposal of the Central Bank to prevent the import of goods not funded by documentary credits and official transfers issued by it, pointing out that this decision, if implemented, would lead to a significant decrease in the parallel exchange rate, stressing at the same time the necessity of transferring all transactions to the Iraqi dinar, and increasing the use of electronic points of sale.
I know, I know a lot of ranting and raving…..but how does this all effect the timing of the RV? Yes, it does all effect it since the CBI must be able to control the rate of the dinar prior to any reinstatement. If it was up to me I would just redenominate and reinstate and then watch for the fallout and control it afterwards. I believe the value in the dinar has increased substantially since 1990 and so why keep it artificially suppressed? There is a political control game being played out and as long as certain US politician still have power and control it they will hold it up. Get it?
But it is not up to me and so we as investors must live with these very tight and stringed requirements imposed upon this so-called sovereign nation of Iraq by the US and Britian. Yes, these requirements drastically changed and tightened under the Barrack Obama administration from the G.W. Bush administration. This is what Iraq is now struggling with. This is not me saying this but my CBI contact. Remember a nation is only as sovereign as it can control its own generating wealth.
But to be fair we also know that Iraq is very good at procrastination and since it allows so many political parties it is often difficult to please them all, which I think they attempt to do. In the final analysis they often buy votes and compromise anyhow and so what really is the use of it all? Are they really, really using the democratic process or just making it look good? Fro us an investors it is the time consumed and the years ticking by that concern us over this stagnation.
If you were around a decade ago and care to remember that the CBI governor back then, Dr. Shabibi, he was able to stabilize the rate of the dinar at about 1166. I firmly believe this is about the rate they are targeting from 1320 to around 1166 next as their next “official” CBI rate. I was told this by my CBI contact that we would see yet one more official rate change prior to the project to delete the zeros and then the reinstatement. So, now you have the answer why I am trying to explain to everyone today why controlling the parallel market is so important for the CBI to do. Pay attention to this news rather than this bullshit about an RV every day or weekend by these idiot intel gurus. I got to tell you these gurus are lying to you. There is no one in the US Treasury or the CBI that is telling anyone to expect the reinstatement at these guru times. It is all just FAKE news. Get it?
Also in the news this period, the International Islamic Bank (IMTB) in Iraq has announced the signing of a strategic partnership with CR2, with the aim of developing banking services. This partnership represents an important stage for the International Islamic Bank, as it will contribute to the transformation of banking services to digital form and enhance advanced digital banking solutions in the Iraqi market. This is all very good news for the banking sector and us investors as it feeds into the three “Pillars of the Iraqi Financial Reform” that they defined in the White Paper which will get us to the RV sooner than later.
Oil and Gas Law Saga
Today, Monday, the Oil, Gas and Natural Resources Committee suggested that the approval of the oil and gas law in parliament would be delayed, and while it revealed the reason for that, it clarified the repercussions of the last meeting. So I guess the last meeting with the Kurds and Baghdad did not go so well, unlike they expected it to go? Do we need this Oil and Gas law to RV? I already explained this so many times already and you can go ready my writeup on this topic here LINK. Remember that it was agreed to pass this draft law between the two parties within the framework of a political agreement that led to the formation of the current government the first place and so this is an obligation they must fulfill and do it soon enough.
Please, please be cautious on targeting any single event completion as a triggering mechanism to getting the RV. It simply does not work that way and I have told you a dozen times then a million times already. There is no laundry list of items to complete in order to RV. Instead, it is all about STABILITY and SECURITY and we have been told this so many times already. But we know these definitions are not static or well defined enough to put our finger on to gauge. But then again this is why I criticize the Obama era so much for doing this to Iraq in the first place meanwhile they all already exchanged their dinar along with their buddies, family and friends. It makes me sick! But it too is all going to be exposed no matter how much they try to hide what they did back in 2012-2013.
😊 😊 😊
But here is the juicy news you really want to hear today. Yes, I saved the BEST for last…lol..lol..lol.. 😊 😊. In fact I would categorize this news as WOW!!! news.
Finance Minister Taif Sami discussed with the British Ambassador to Baghdad, Stephen Hitch, on Sunday, the development of joint cooperation in the field of economy, the exchange of experiences, and Iraq’s steps in joining the international financial system.
Now listen carefully…the article did not say they joined already but that they would “take the steps in joining”, get it? So this is coming and so along with the news of accession to the WTO recently as a full member I can not possibly see how they can hold up moving to a Foreign Currency Exchange (FOREX) much longer. Folks, just look at all the progress made just since January of this year. So is the glass half empty or half full? So what if we have to wait until January to RV, as they did tell us many times this is the most opportune time since their fiscal year begins. I honestly did not believe this would be their course of action but it is heading in that direction. Remember I DID NOT say we had to wait until January but only that the clock is ticking by.
Q & A
As you know from time to time I like to pick through the comments and try to answer questions from my readers. I do this unlike many of these intel gurus who waste their time week after week having their long conference calls having the same people call in call after call. Its like a social event rather than a news update. They ask the same questions over and over again, around and around they go…. mindless, mindless, mindless….
Question: Hi Mountain Goat,
First, Thank You, Thank You, Thank You
I know that you’ve made it as plain as day. But I’m still nervous so I need to ask. Is the $25000 dinar bill that I bought in 2011 an exchangeable currency
Mnt Goat Answer: Absolutely still going to be exchanged. Who told you this crap? Please don’t bring other intel guru garbage to my blog. Don’t you think I would know it they weren’t and I would tell you? Why would I hold something as important as this from you?
Just so you know the entire IQD set of the three zero notes are still under US Treasury OFAC sanctions. The banks take on a liability if they sell or buy the currency. But if they do, they are not “officially” exchanging or trading. Instead, they are selling it like souvenir/collectibles just like these internet brokers who have license to do it since it is sanctioned from FOREX this is the only way to legally sell and buy. Of course, sites like Ebay, Amazon, etc may also be sources but they follow the same rules. So, OFAC sanctions will have to be first lifted, the IQD put back on FOREX before the banks will exchange any of these notes.
Yes, this is all VERY CLEAR and AS PLAIN AS DAY! 😊 Stop being so nervous it will make you sick…lol..lol..lol.. it’s all good and we are going to the bank soon!
POLITICS
I decided to begin including this section in my Newsletter because of the nature of what we are now seeing in our governments and how these crises after crises now affect the ability of us to spend and hold on to our proceeds once we exchange our dinar post-RV. We can make a difference if we decide to. We are empowered citizens as we only have to realize it and do something about it. Remember the majority is many hundreds of millions of people and the elected and on-elected government officials are only less than maybe five thousand. This scares them but we have no power unless we act upon it.
I encourage everyone to watch these videos I have put together. They will save you time and are shortcuts to the political news that does effects everything in our lives including this long-awaited RV.
We are down to the last month of the three-month period that prophet Tim Sheets talked to us about (June-Aug). Did you see how explosive June and July were? Wow! Talk about prophecies fulfilled!!!! So what is to come in August?
