[CBI put out a RFP-Request for Proposal tender] SHANGDODDLE: It appears to be the government of Iraq is seeking contractor bids for the purchase of machines used to count, sort and packet currency. IMO that would be for the new currency in the lower denominations in the new small category notes... FRANK: This is fantastic. Then an article comes out and says, "This tender will be accomplished by October 22, 2023". October 22nd is simply the time limit parameters of this tender...You think it's going to take until October the 22nd? No.
Why would Iran be at the CBI governor's office dealing with international issues? I think you know why. They can't steal anymore. The floor is spotless. It's dinner time. Something is about to happen.
Iraq boots-on-the-ground report] FIREFLY: We see Austria is back here in Iraq. They are reopening their embassy here. Their ambassador says due to the security and stability here it leads them to trust and reopen. FRANK: Hey, Sudani how clean is the floor of the CBI bro!?
The CBI had a meeting with the United States Treasury...The CBI got their butts chewed out in front of Sudani. In less than 24 hours all the nonsense they were complaining about has been wiped out...
You have Iraq, Iran, the CBI official, US Treasury all in one room that doesn't make any senseunless you have have interest in changing the exchange rate and adding value to the Iraqi currency because there's security and stability in Iraq and it's all because Iran finally conceded, 'we give up'.
[Iraq boots-on-the-ground report] FIREFLY: USA Treasury was threatening us about sanctions on more banks here if not addressed on misuse of the American dollar that the US Treasury is seeing all over Iraq. I don't know what they're talking about, we can't find the dollar anywhere. FRANK: Don't let that bother you. The US Treasury is simply trying to get Sudani and the board of directors to move.
Speculators And Analysts Manipulate The Price Of The Dollar Through “False Assumptions”
The first 09/17/2023 Baghdad: Huda Al-Azzawi A “false hypothesis” claiming that visits by US Treasury officials to the capital, Baghdad, aimed at increasing sanctions on banks, has gained currency in the local market and was the main reason for the rise in the dollar exchange rate over the past few days. Specialists in economic affairs have shown that these hypotheses unleashed by beneficiary speculators are supported and promoted by many economic or political analysts for several reasons.
The economic affairs analyst, Nabil Jabbar Al-Tamimi, stated in an interview with “Al-Sabah” that “there is a link between the rise in the exchange rate of the dollar and the sanctions imposed on banks, and this link came as a result of traders and some people benefiting from the economic analysis,” stressing that “there is no relationship to the rise in...
The exchange rate when imposing sanctions on four banks in November 2022, as well as when imposing sanctions on 14 banks after that date,” explaining that “these assumptions are economically illogical, because the (14) banks had an entry rate of about 8% in the currency auction and can be covered.” By other banks.
He pointed out that "these hypotheses are unleashed by some economic analysts for the purpose of benefiting from them, especially since some of them have political leanings against the current government, and try to distort the facts by promoting such (false hypotheses) or have a connection with currency traders, and this is what The authorities alerted him,” and Al-Tamimi expected that some of these economic analysts would be “arrested” in the next few days.
He pointed out that "the Communications and Media Commission stressed the importance of avoiding misleading information on more than one occasion, which causes an increase in exchange rates. This information must be addressed by government authorities to refute it and hold accountable everyone who promotes false information that causes an increase in the exchange rate."
For his part, the professor and analyst in economic affairs, Dr. Jaafar Alloush, indicated in an exclusive interview with “Al-Sabah” that “the incorrect reading of the visits of treasury officials is what gives general impressions that compliance with international standards has not been achieved, and thus creates pessimistic expectations that help raise the dollar exchange rate.” While the Central Bank’s data explaining its policies confirms progress in accordance with those policies Standards".
Alloush considered the unstable rise in the exchange rate “an economically unjustified rise, but it is linked to the abundance and expansion of the volume of internal exchanges in the dollar currency, supported by the increasing types and volume of imported goods that are financed in dollars,” and explained that “the demand for the dollar is multi-faceted and depends on the volume of transactions (which It constitutes a growing demand), as the rise in the exchange rate of the dollar is directly proportional to the volume of internal trading in it,
and with there being only one source for supplying the dollar, which is the central bank (the window for selling the currency) and through the mediations of commercial banks that finance these exchanges, especially foreign trade, in exchange for the limited supply of this supply.
“The problem remains in the form of a real gap between the increasing demand for dollar transactions and the limited supply.”
He pointed out, “Here lies the danger of lowering the exchange rate by the central bank and losing its effectiveness unless the means of financing trade are legalized and the volume of local dollar exchanges is reduced.”
Regarding the repeated visits of US Treasury officials to Baghdad, Alloush stated that “those visits come to ensure the application of these international standards, and they are also periodic visits that have occurred for a long time, and there are financial relations linking the Central Bank of Iraq with the Federal Reserve and the American Treasury, and meetings are held.” "A regular period between the two parties to review many issues."
He explained, "These days, the visits of American officials to Baghdad are being exploited in the media to inject more waves of pessimism that are directed towards creating a supportive climate for the instability of the dollar exchange rate, knowing that this rise has become a financial resource for many speculators, some of whom control the parallel exchange market, because Dollar trading has expanded its base, and this expansion creates additional difficulties for the monetary authorities and the central bank in controlling the gap in the parallel rate with the official rate.
The US Treasury Department reveals the secrets of its assistant visit to Iraq and its meeting with senior officials, 17 SEPT
Baghdad - Iraq Today: 2023/09/16 10:03
The US Treasury Department announced that Assistant Secretary Elizabeth Rosenberg discussed with Iraqi officials during her visit to Baghdad raising the level of the Iraqi banking sector to "international standards" and "preventing violations" of US sanctions.
US Assistant Secretary of the Treasury for Combating the Financing of "Terrorism" and Financial Crimes, Elizabeth Rosenberg, visited Baghdad on September 12 and 13, and held meetings with Iraqi officials, led by Prime Minister Mohammed Shia al-Sudani and Central Bank Governor Ali Al-Alaq.
In a statement about the visit, the US Treasury Department noted that Elizabeth Rosenberg met with the prime minister and officials of the Central Bank, the Iraqi Economic Intelligence Unit, the Commercial Bank of Iraq and representatives of private banks.
Recognizing the challenges and future opportunities for the development of Iraq's financial sector, the two sides "declared their commitment to continue working together and taking positive steps towards meaningful and long-term reforms, in order for Iraq to live up to international standards, and prevent falsity, sanctions violations, terrorist financing and other illegal acts," she said.
Earlier, US State Department spokesman, Matthew Miller, said in a press interview that the US Treasury Department discussed with the Iraqi government the opportunities and challenges facing the financial sector in Iraq, and ways to develop the sector and raise it to the level of international standards.
Al Sudani was denied access to come to...the US because he had three things to get done. And now he is scheduled to be in the U.S. on the 20th which is Wednesday. I have a hard time thinking on the 20th he's going to show up smiling and waving doing International contracts without having changed from 1310 to a real effective exchange rate.
We're in such a good space I can't contain the excitement because what we've seen in the last 96 hours. There's nothing but powerful information from Al-Sudani, we have the US Treasury Assistant showing up...big companies...Stellar Energy...Total...Barzani being tickled pink because they've signed agreements. We have a change of pace...
...on Tuesday – The US assistant secretary of the Treasury showed up to Iraq... other folks from the US were there- on the business side. So businesses showed up and other countries showed up...We are talking about International trade. Iran, Iraq, France, The US and many others...The US Secretary of the Treasury has the power to make certain things happen…and
I think the US is now allowing the facilitation of Iraq joining the international financial system. And they say the Us now supports the tripartite budget for 2023, 24 and 25...And letting Iraq and Iran trade outside of using the US dollar is huge. There are deals with UAE, France, Japan, China and many more. This really is huge...These international contracts and international financial systems …well, we have never seen this before...I think we are in a phenomenal timeframe...
The CBI can (and probably will) put a hefty spread their buy price – I’ve heard it will be at least 8% if they RV high.
This means they will sell the Dinar for $1, but they will buy it for $0.92
Personally, I’d be grateful and overjoyed to see a 8% spread on a $1 RV!
Most likely, we will only see about $0.92 per Dinar at a $1 RV by the time it gets in our hands (every party involved will take a little chunk, unless you are physically able to go to the CBI.
And you can’t do that.
So, just accept it – you’re going to pay a spread.)
Once again, the extra numbers aren’t important right now – the only number that’s important is the $1 and the $0.92, because that’s what the CBI is worried about.
Let’s say there is a billion USD worth of Dinar out there right now, or 1 trillion IQD.
The CBI pays $0.92 for every $1 worth of Dinar, then resells it the next day for $1.
