An Understanding Looms On The Horizon Between Iraq And Iran To Use Currencies Other Than The Dollar In Commercial Transactions
September 14, 2023 Baghdad/Al-Masala Al-Hadath: The financial advisor to the Iraqi Prime Minister, Mazhar Muhammad Salih, confirmed that there is an understanding on the horizon with Iran to use a basket of foreign currencies other than the dollar to settle commercial transactions between Iraq and Iran.
Saleh said in statements followed by Al-Masala, that allowing an international means of payment other than the dollar and identifying trade flows in a transparent and highly governance manner with the Islamic Republic of Iran within the international trading system will undoubtedly contribute to the stability of the exchange market in Iraq, in addition to enhancing the stability of the external payments system in our country. It leads to high stability in trade and financial movements without negative monetary impacts on our national economy.
He added: Therefore, there is a high understanding on the horizon in using a basket of foreign currencies other than the dollar to settle commercial transactions with the neighboring country [Iran], without this constituting an international obstacle, and at the same time providing the desired monetary stability in our country, especially the foreign currency market.
He pointed out that it is clear that there is a correlation between trade with the Islamic Republic of Iran on the part of the Iraqi private sector and the need to have an international payment currency to settle trade exchange, at a time when there is a ban by the United States in the field of financial transfers that was imposed on Iran more than a decade ago. , and is subject to high degrees of stringency.
He continued: Such requirements led, over time, to dealing with commercial settlements in foreign currency, but from outside the official markets, especially in the demand for cash dollars on the local black market.
He concluded his speech by saying that it has become logical to find an alternative international monetary medium for trade settlements with the neighboring country instead of the United States currency. The alternative monetary medium is used in a transparent and clear manner before the international financial community and at the same time spares the local exchange market from the pressures of international restrictions, their complications and their effects on our country’s economy.
Masrour Barzani: Next week, an “important decision” will be issued by the federal government, which calls for optimism
9/14/2023
The Prime Minister of the Kurdistan Regional Government of Iraq, Masrour Barzani, expressed on Thursday his optimism about reaching fruitful results after the visit of the region’s delegation to Baghdad.
Barzani said in an interview with reporters in Baghdad, "Next Sunday, the Iraqi Council of Ministers session will be held, and many of the topics that were discussed are likely to be subject to a final decision."
He added, "I am optimistic and hope the results will be good."
He continued, "We came to Baghdad to protect all the interests of the people of the Kurdistan Region in accordance with the constitution and to collect all financial dues. There was a discussion about the procedures so that we can, with the Prime Minister, provide support to the political parties to reach good results."
He pointed out, "We are waiting for the Cabinet meeting to be held next week, and I am optimistic that we will produce good results." LINK
America threatens new punitive measures against banks in Iraq
A high-ranking official from the US Treasury Department has urged the Central Bank of Iraq to take action against the ongoing risks arising from the misuse of the US dollar by commercial banks in Iraq. The official warned that if the bank fails to address the issue, new punitive measures may be imposed on the country’s financial sector. The official cited concerns over fraudulent activities, money laundering, and Iran’s efforts to evade sanctions.
In July, the United States blocked 14 Iraqi banks from using dollars due to the illegal use of the currency.
The official informed Reuters that there are still Iraqi banks operating with risks that need to be addressed despite the campaign.
With more than $100 billion in reserves in the US, Iraq relies heavily on US good faith to prevent sanctions on its oil revenues and funds.
According to the official, his country implemented the measure in July after receiving clear indications of illegal financial activity. He elaborated that the Treasury Department is investigating alleged crimes such as money laundering, bribery, extortion, embezzlement, and fraud.
The Central Governor of Iraq has stated that the country is committed to implementing stricter regulations for the financial sector and preventing the smuggling of dollars. The Iraqi Central Bank did not respond to requests for comment on Thursday.
Iraq had an almost entirely state-controlled banking sector until 2003. Now, there are over 70 private banks.
Just under one-third of these banks are on the US blacklist. “
I am focusing on banks that still have access and where I see continued risks,” the official told Reuters in Baghdad.
He suggested that the central bank directly address the matter, which could eliminate the need for further measures in the United States.
[via PDK] We are painfully close…Lots of expectations for Sunday and Monday and those meetings on HCL agreements and with the US Treasury. Things are really appearing to be lining up perfectly. All eyes at this point are on the Sunday/Monday meetings in IRAQ…on HCL and they say they are addressing the exchange rate of the dinar…we will see what comes of those. . .
[via PDK] Question: Do you think it will RV before the 20th. MarkZ Answer:
My gut says around the 20th…but sources say they believe it will be sooner. Getting all positive news – nothing negative. Comment: We are fixin to be blessed. MarkZ: I agree with you. Sudani said he was going to address the exchange rate and the strength of the dinar. He is telling us…now we just need to see it happen.
[via PDK] “US Treasury discusses with CBI foreign trade in three currencies other than the dollar” This is the US Treasury representative in Iraq and sitting down with Alaq. Of course they are working with the CBI and working through some things...They also discussed all the tremendous efforts Iraq has done to modernize their banking system. They can now track money laundering, bad guys ect… I am still hearing there are Fed Reps and State Dept Reps there as well as World Trade Organization Reps as well. ...I am hearing out of Iraq…That they are finalizing that rate change...I still believe everything is in place and they just need to flip a switch.
[via PDK] Groups are positioned and ready…agreements are done…people are all in place…The US Treasury is in Iraq…all we are waiting on is the switch pulled.
[via PDK] I am continuing to hear very positive stuff. The consensus is from my Iraqi contacts…that they are looking for a worldwide announcement of a rate change somewhere around the 20th or 21st. That does not mean we are waiting until then. That means that is when it should be announced to the public. We should hear something before then based on what I am hearing right now. Let’s hope this is accurate. I don’t think I have ever heard this much hype before…It’s almost overwhelming…In a positive way.
Welcome everybody to the big call tonight - It is Thursday, September 14th and you're listening to the big call. Thanks everybody for tuning in tonight - Tuesday night we got out to 53 countries and 19.4 million listeners - and tonight we expect to get out to eight more countries - would be what 61 countries? And who knows how many listeners - could be over 20 million - hopefully would be. And special shout out to that downunder because Australia represented our greatest amount of listeners on the call last Tuesday night.
All right, guys, we got to see where we are today. Now I have to tell you - this intel, as you guys know by now, it changes - it morphs - You'll get something yesterday for example, very strong from three excellent sources - Excellent sources - and the word came in where if we do not get notified today, which is Thursday, then we will be notified by Friday at the latest. That's where there are 800 numbers as we get our notifications by email.
Well, we didn't get notified today. And I'm not so sure we're gonna get notified tomorrow. because subsequent to that information is coming in. it's talking about Maybe we get notified Friday, Saturday, but most likely we'll see something and I don't know if this isn't our notifications, but we should see something on Monday.
Now, it could be notifications. it could be the start of exchanges that were really close to that. And I'll tell you, this is one reason I think certain people thought we would get it - and we could still get notified tomorrow.
We're not saying it couldn't go but some of the other sources we're taking this a little further, especially people that are talking about the bond holders, the paymasters of the bond holders are getting information from them that it looks like they're going to be working on releasing to the bond holders or the bonds sellers really tomorrow, Saturday, and maybe - maybe Monday.
And I don't know why they're dropping out on Sunday. I don't know why they're really not mentioning Sunday. Because it is really at that level with bonds - To them Sunday is just another day.
But I know they're doing a lot of these transactions. You know in Reno, they're doing them in Miami. They're doing them in Geneva and a few other international locations as well. So things are coming together.
Alright, let's talk about SKRs. SKRs in the United States should be done by Saturday. So a couple more days to get the SKRs paid out in the United States - Internationally SKRs will probably take about two weeks. Now I’ve checked to see whether that's something like for example, in the United States do we have to wait until all those SKRS are paid out? And the word that I'm getting back today is no.
And I actually heard that a couple of days ago as well. That we don't have to wait on the SKRs so safekeeping receipts of people that ponied up their currency to the banks early years and years and years ago. Some cases at 19 years are just being paid up - military did their exchanges last week.
And there I'm sure there are military bases where we have our military internationally, which probably are still going on.
But here's I'm saying all that to say that what has happened in Iraq is Iraq, had delegation from United States, a small group that included Judy Shelton, Stephen Mnuchin, and a couple of senators from the United States that went over to Iraq to have – I’m gonna say, effect the changes that need to be needed to be made.
And they were on their way back to the United States to arrive probably in the DC area between seven and 9pm tonight, So they're already home.
And that's a good thing, But the question is why did they, why did they leave Iraq to come back home and at all.
My thinking is that they probably accomplished what it was they went over there to do.
And we've heard that everything's done and signed everything was signed off on We heard that Tuesday morning at 11 o’clock, everything was signed off by our treasury - and everything was quote, unquote, good to go.
Now, with that group, that's small delegation for some security - that came back to the US came in this evening, during the start of the big call - Okay.
The fact that they're back, I believe, is saying that Iraq is finally ready to go.
Now, we've heard everything's ready .
I don't know what else there might be. I don't think the SKRs are a hold up.
So I'm not quite sure if there is anything else what it is, but we are supposed to get notified within 12 hours of the bondholders being paid out.
So they're looking to be paid out either Friday, Saturday or Monday. I think that puts us in a position where we could get notified over the weekend, or at the latest probably Monday and go Tuesday. So that's really where we are right now - With everything that we have been waiting for.
And I believe the idea of printing the rate for the Iraqi dinar in the Gazette it didn't happen Wednesday, which was yesterday.
It could happen Saturday, but I don't think if it doesn't go in Saturday, it should go in the following Wednesday.
But even that happening shouldn't affect us getting started. Before that happens should defer all the way to next Wednesday. You know six days from now.
So I think they got it to the point where we are ready to go.
I believe our new USN is ready to go and ready to be brought out.
Tomorrow is the day on the 15th when the UN operational rates change. And so I was thinking it would make sense for all the new rates to come up tomorrow and be available.
I'm just not sure that's going to happen. It could be - but right now guys, we are on any day, any hour basis. This thing has been gelling for a long time.
We've heard from Treasury that they've signed off on everything.
Everything is ready to go is what we're getting from our key sources yesterday and there's just a little bit of talk about the weekend, which I thought we were going to be done by tomorrow. We could get it tomorrow. But we're also hearing it could be over the weekend. And we could start Monday and the bondholders gonna get their liquidity on access to their funds on Monday.
So we’ll track it - obviously we don't do another call until Tuesday night. So hopefully we have everything - we have 800 numbers and the numbers are being sent out to you by email. If you're signed up on the call universe.com - You'll get an email with an 800 number in it when we receive it.
We'll be able to be in touch with you with a further podcast. And we'll also be in touch with you about the projects like rebuild America, rebuild International, the veterans retreat network and the pastoral retreat network. Those four projects are my big projects for the big call.
Okay Otherwise political things are happening indictments are happening impeachments happening. There's a lot going on.
Maybe that has to conclude to some extent before this is released say that's happening between now and the weekend. That's what it's like cut on it. That's probably what it is.
And I'm glad you guys are here. All over the globe listening in. And thank you for folks down under. Appreciate you. Good on you. So let's pray the call out and then we'll all hopefully have a wonderful weekend this weekend.