A Reading Of The Council Of Ministers’ Decision To Limit Contracts To Dinars.. Will It Change The Exchange Rate Or The Value Of The Contracts?
The Iraqi government and the Central Bank of Iraq continue to take various decisions and measures in an attempt to control the exchange rate of the dollar against the dinar, in a war that has been going on for 10 months, as exchange rates are witnessing an unprecedented rise due to illegal speculation, as described by the Central Bank of Iraq.
End DOLLARIZATION
The expert in economic and financial affairs, Nabil Al-Marsoumi, during an interview today, Wednesday (September 27, 2023), with “Baghdad Today”, explained that “the Iraqi government took many steps during the previous period, and is still working on new steps aimed at limiting local dealings to the Iraqi dinar.” Its last decision was to oblige state contracts executed inside Iraq to be in Iraqi dinars.”
He stated that “this step is aimed at ending the “dollarization phenomenon,” that is, restricting all transactions to the local currency. Of course, this matter has any impact on the issue of reducing or rising the price of the dollar in the local market, as this matter depends on the issue of finding solutions in order to work Legal and legitimate transfers to Iran instead of black transfers that are paid through various import funds.”
An Attempt To Strengthen The Dinar
For his part, a member of the Parliamentary Finance Committee, Moin Al-Kadhimi, said in his interview with “Baghdad Al-Youm” that “the Iraqi government wants, through such steps, to strengthen the Iraqi dinar and limit local dealings to the national currency, and this is what strengthens and strengthens the dinar, and this matter is followed and applied in all countries.” "It was accompanied by a strong economy."
Al-Kadhimi stated, “Such a step will certainly contribute to the issue of reducing the exchange rate of the dollar in the local market. Such steps will reduce the need to demand the dollar, since dealing will be in the Iraqi dinar, and therefore the citizen will abandon the dollar as long as dealing is limited to the national currency, and this is the case for companies operating in the sectors.” governmental or private.
A “moral” step, but...does it change the value of the contracts?
Yesterday, Tuesday, the Council of Ministers decided, in a step towards financial and administrative reform, to commit to all state contracts executed inside Iraq being in Iraqi dinars, except for those opened by an external documentary credit, so they will be according to the agreement between the two parties and for the value of the documentary credit only.
While observers believe that this step will lead to an increase in the price of the dollar, based on the fact that the government will pay the dinar to companies, which in turn will look to buy and convert the money into dollars.
However, others underestimate the importance or extent of the impact of the step on the exchange rate, as the state will ultimately pay the dues of these companies and contracting parties in dollars by the Central Bank, as stipulated in the Council of Ministers’ decision, considering that this decision has only a “moral aspect” in favor of the dinar. That is, making the numbers on the contract papers in Iraqi dinars only, but the payment of companies’ dues will be in dollars and by the central bank directly.
Experts believe that this decision will have one negative side when any future change in dollar prices occurs, as the value of projects, especially those implemented for long years, will be valued in dinars according to the current exchange rate, and any change in the exchange rate by the state during the next few years will lead to... Change the cost of projects. Source: Baghdad Today LINK
Reinforcing the Iraqi Dinar: A Shift in Iraq’s Monetary Policy, 27 SEPT
In a decisive move to strengthen the local currency, the Iraqi Council of Ministers has mandated that all local contracts be denominated in Iraqi dinars. This decision is a notable departure from the previous norm of executing contracts in US dollars. However, an exemption is made for contracts established through external bank-issued “documentary credits.”
The Ministry of Planning has been entrusted with the task of compiling a comprehensive list of former state contracts initially denominated in US dollars. This list will be shared with the Ministry of Finance and the Central Bank of Iraq in an effort to ensure a smooth transition to the new policy.
Limitations on Dollar Coverage
As part of this shift, the Ministry of Planning will also set a maximum monthly limit for the coverage of contracts in US dollars. The Central Bank of Iraq is tasked with guaranteeing coverage at an exchange rate of 1,320 dinars per US dollar. To facilitate monthly payments for these contracts, the allocated funds will be deposited into the Ministry of Finance’s account, adhering to all necessary release controls.
The new policy also introduces a significant change for Iraqi borrowers from government banks who have taken loans in US dollars. These borrowers are now obliged to repay their loans in Iraqi dinars. The Central Bank of Iraq will cover these loans in US dollars, which will subsequently be used to reimburse the lending banks. Notably, this procedure is only applicable to loans issued before the Council’s recent decision.
Strengthening the Iraqi Dinar amid Devaluation
This strategic move comes in response to the devaluation of the Iraqi dinar over the past year, largely attributed to measures taken by the United States in late 2022 to prevent money laundering and the flow of dollars to Iran and Syria. These actions led to a significant drop in the street value of the Iraqi dinar, which fell to nearly 1,750 dinars per US dollar. Through the new policy, the Iraqi government aims to stabilize and strengthen the local currency by increasing its use in internal transactions.
The shift in Iraq’s monetary policy is a significant step towards reinforcing the local economy. By increasing the use of the local currency in internal transactions and setting strict parameters for the use of US dollars, the government is taking active measures to curb the devaluation of the Iraqi dinar. However, the effectiveness of these measures will depend on their implementation and the response of the local and international market.
Welcome everybody to the Big call tonight from wherever you are, it is Tuesday, September 26th and you're listening to the big call. I hope we're reaching you all over the globe tonight. We've had a pretty good reach in recent months, getting out to as many as 190 some odd countries and 22 or more 24 million people. Not always that big a number but it depends on how much of the Starlink satellite system our guys are able to get access to. Their Starlink system is getting pretty busy these days as they're getting everything connected for the quantum financial system, and all that. But welcome everybody.
All right. Let’s get into the intel a little bit - Let's see - There's several things I want to bring out tonight. I'm going to try to remember all of them. The key thing right now is we heard yesterday, which was Monday that Iraq was going to put out a major announcement this morning right after morning prayer, and maybe early morning prayer meeting the first - first go at it.
And I thought, okay, it's a major announcement, but what is it going to be about? Well, it took all the way up until about six or seven evening for me to figure out and find out what that announcement was from our Iraqi sources. And it ends up that the announcement they made this morning was that they were going to put in the printed version of the Gazette tomorrow, which is Wednesday, put in their newest dinar rates.
And it would be obviously it would be revalued rate in the Gazette the printed version of the Gazette. Well, we already had the digital version come in last Saturday, but we didn't get the printed version of the Gazette on Wednesday, as we had anticipated, but it's supposed to be in tomorrow's Gazette.
Why is that important?
The reason that's important is because we understood from some of our key top paymaster sources that the funds for the bondholders that were supposed to go out at midnight tonight might be delayed somewhat until that announcement goes into the Gazette. That rate goes into the Gazette - their official record and the printed version that comes out Wednesdays should include that rate.
And they may also put in an announcement that we heard was going to come out October 3, next Tuesday, but I don't know it may come out. It may be in this Gazette tomorrow. But it's about Iraq's sovereignty, they are going to declare - Now listen, it may not be in tomorrow's but we were told it is called and it should come out on the second or the third of October, which is next Tuesday.
And it wouldn't be an announcement about the independence and sovereignty of Iraq. And of course, in order to have the sovereignty they need to have a revalued rate for the dinar. So that's why I'm saying it could come out tomorrow because really if they put this new, really revalued dinar rate in the Gazette the printed version in the Gazette tomorrow, then essentially they've done what they need to do for them to declare their sovereignty and their independence as a free state.
A sovereign state. All right, so that could be big –
Now - We're understanding what the announcement made this morning. They're supposed to do that. Tomorrow. It'll probably be in the morning early. But whenever that occurs, at that point, bondholders should have the funds in their individual bond sellers accounts. And they should be getting notifications that they have the funds in their accounts after 1030 In the morning tomorrow.
Now the same sources also and that's am 1030 in the morning) the same source has also indicated that we could also get our email notifications that we're looking for after 10:30 tomorrow morning.
That was a real huge piece of news that we got late this afternoon. But really this evening before the call today. So I'm excited to be able to bring that to you and remember, this is information from people that are talking directly to our treasury people that are doing this and heading up the revaluation process for our country.
And let's see let's talk about a couple of other things.
So that you will be really cool if that's tomorrow, because that way We've got our start. We get our notifications - we set appointments and maybe even start exchanges tomorrow evening, afternoon, evening.
Now, it could be that we get notified and set appointments for Thursday. It's hard to say at this point, because we don't know, but we know they're supposed to get notified. Some time after 1030 In the morning, and I think that'll be if that happens tomorrow, it'll be that way Eastern Time - Central Time. Mountain Time Pacific Time, etc. So we should get time all across the country Based on our time zones.
Let's go into what else might be important there.
We have heard and you guys have read it. Not sure that what we're hearing that has been ascribed to this top notch individual is his actual wording . I don't believe it was - And I believe what I'm hearing from our sources is that it can go even if Biden is where he is. This can still go - even though I've heard it both ways - with him there and it can go with him gone.
So I'm just gonna leave the let's see what happens. As far as that goes. Let's talk about rates - Friday, you know and go into exact rates - you know I have been asked not to do that so I don't.
Some other calls. they might do that. But I try to approximate or get close for something but not give you that I can just tell you that on Fridays. Banks screens - Banks screens for you - Both dinar and Dong are in double digits.Dinar was higher – but both were outstanding -
Now many of you guys, listen to what we've had to say about zim in the past. The zim is a bearer bond, even though it's kind of a currency. it's it's both that and a bearer bond it says payable to the bearer.
And people don't realize until they listen to the big call that the denomination of the of the zim bill, which is in US dollar is in dollars in dollars. but the denomination is the amount that's written on the note.
Listen, they've got 50 million zim notes. They've got 50 billion zim notes. They've got 100 million. They've got 50 billion they've got 10 trillion 50 trillion and a 100 trillion. They probably got more than I even mentioned just now. Well, that's the denomination of the note.
If you had a 10 T note, a 10 trillion. Zim note it's worth the value of what I just said 10 trillion Zimbabwe dollars and the Zim dollar are is one to one with the US on par - on par with USN –USN - our new dollar -So don't be confused about that. That's why Zim holders are gonna be treated with kid gloves When you go into the redemption center
okay, because they, they're gonna care a lot about our projects and what we have to say and what we do in the future. don't be confused by that .
Now, other dates that are of importance -
We have heard that last I think about three or four days ago, but this was going to go Friday, this week.
Today's Tuesday. Tomorrow's looking great for us so far, provided a rock with the rate in the morning, which we're told that that announcement this morning by Iraq said that that's what was going to happen. So they do what they said that they were going to do - we're in pretty good shape - Really good shape - and we'll get this party started before the end of the week - either tomorrow or Thursday, probably and probably will just be another great Friday.
Now the other thing is October 1 is the day that the date that the USN i- our new currency is supposed to be announced - we think - the USN on the first of October.
Now the first two weeks of October we should have our NESARA and GESARA brought out They may tie that in with some disclosure over those 14 days - those two weeks are also supposed to get the - I call it R & R now, restitution and reclamation allowance. In the first two weeks of October.
That's a big deal. That won't be quite as big a deal for us. It'll be a big deal and they have that divided sort of by decades. 60 To 70 Will get approximately this much in a lump sum 50 to 60 will get this much over a one year period, meaning divided by 12 Payable each month. whatever their total is.
It starts at age 37/38 30 to 50 will get their amount over a 15 year period.
So sort of like an annuity but 15 years is what they're going to be paid out at the age of 30 to age 50. Age 51 to 60 is going to be a lump sum, but it's divided into 12 parts paid out over one year. And then those of us in the 60 and older 66 plus range will get as a lump sum payment into the bank that we get our Social Security And into that same account.
Okay, that'd be a big deal. it'd be a look. So would it be big for us? Let's call them older Americans. I'm not thinking of myself as older but I'm in that group. Now, social security changes in November, and it's gonna be a pretty strong amount.
They're kind of drop into Social Security but it's gonna be a bigger number that we're getting now by a longshot.
And it's gonna happen in that age group of 62 to what it to infinity - however old you are, I guess you could getting us every month - until you die, so don't die anytime soon, Like 300 400 years Using the med bed for longevity, and boomer boost and barley and premium probiotics for longevity
So let's see what the other piece might be …… I told you about rates kindof – told you a little bit about the zim
Again, we're looking to be notified of an email I don't know where it's going to come from Wells Fargo's or whatever it says. Read it carefully. twice at least before you act on it and call the call center with the 800 number that they provide for you.
Make sure that oh that you ever talked about the basics already - you should know they would like two forms of photo ID - they pretty much know who all the Zim holders are but they don't know who has been gifted them they have some idea in some cases, who were gifted Zim for most part they don't.
So those people that were gifted zim going in, you need to pony up your two forms of photo ID, a utility bill showing your house address where you live and also house or apartment or wherever. And then also yep - And you need to know like I said, your passport or driver's license if you have both bring both.
And then you know they'll say the first thing they'll do is just verify who you are. Know your customer, they'll verify who you are to start looking for your currency to count it on the delerue machine and verify that it's legit. You don't have to bring receipts for your currency don't have to prove where you got it. They don't have time to monkey with that they don't really care.
So just you know compared to ponie that up - if you have multiple currencies, put the currencies in the same denominations and each currency so like if you have dinar you know you've got 25k nodes 10k 5k 1k You know, all those notes need to be you know, in those little bundles paperclip this little rubber bands around or something like that, put them in there so they can run the same denomination of note at the same time. Digital a room machine don't mix them all up into different denominations like oh, here's a 25k Oh, here's, here's a 5k Oh, there's another 20 No, divide them up, separate them.
And in my case, I'm going to tell them how much of each currency not denomination, but how much of each currency I have. So they'll know that even before they run it through the delarue machine, and only doing that so to see if they come up with the same number that I came up with without a delarue machine.
Okay, so I'm just hoping that my numbers are correct when they run them. Okay, they'll do that. Do that on your currencies, on your dinar on your dong on your rupee up on your whatever other currencies we had economic Afghanistan - They're 27 currencies that are going up in value.
When they do that, and then you'll have an opportunity to present a presentation on your project. If you're a Zim holder. You really should have one or more projects that you're going to use the zim money on -or part of it, you know, to fund your project.
And also once you do that, and you've run the total amount that you'll have to put into your account. You'll be able to move as an excuse me into your Wells Fargo primary account. Well, I probably ought to quit while I’m ahead (hiccups) the Quantum account card you'll be able to get there at the redemption center that allows you to put a biometric fingerprint or thumbprint to it So you can gain access with an email.
A brand new email by the way, a brand new email address and a new password and then you'll go from there, And then you'll be able to move on For the first 90 days.
You should be able to tell them yeah, I'd like to put X number of million or maybe billion into that primary account and that primary account will gain interest it will earn interest and the money in the quantum account that will not earn any interest.
But that's where the money will be until you move it into your primary secondary. What excuse me wills accounts.
So let's see what tomorrow brings. See whether we have a call on Thursday or not - we'll see. Obviously we hit numbers or we're off to the races. we're doing exchanges. we won't have a call. We might pre record celebration call was But let's go ahead now before I hiccup my way through the prayer time. Let's go ahead and pray the call out.
"An Anomalous Case"... Economic Criticism Of Dealing In The Dollar In Local Markets
September 26 19:07 Information/private.. Today, Tuesday, economic expert Hazem Hadi criticized the dealing in the dollar in local markets, while he considered this situation “an anomaly,” among the main reason behind the high exchange rate.
The economic expert, Hazem Hadi, said in an interview with the Maalouma Agency, “The market is governed by supply and demand. If demand exceeds supply, this will lead to a rise in the dollar, but the central bank will try gradually and by all means and methods to limit the unjustified rise.”'He added, "Limiting dealing in the dinar is important because it is the national currency," considering dealing in the dollar internally "an anomalous case, since most countries deal in their local currency internally."
The economic expert explained that “measures to limit dealing in the dinar internally will lead to reducing demand for the dollar, and as long as demand decreases, it will affect supply,” indicating that “the main problem is not internal demand, but rather external demand.”
He stressed the need to "reduce random and unjustified import operations, as most of the supplies of goods and services have no economic feasibility."
Earlier, a member of the House of Representatives, Muhammad Al-Sayhoud, confirmed that “there are local internal agendas, as well as international forces, that insist on the dollar remaining at this height,” pointing out that “the dollar is a major project whose goal is to force the government to follow a path that these international forces desire.” ".
The series of rise in the dollar exchange rates in Iraqi markets is still continuing, amid conflicting opinions about the real reasons that led to the exhaustion of the local currency again, especially as it began to rise to levels that warn of a great danger to the country’s economy. LINK
FIREFLY: We’re hearing we have the full support and acceptance into the global financial world…All the financial institutions like JPMorgan Chase, all of them are welcoming Iraq Sudani says. This is great for Iraq and it will attract more investors.
FRANK: Even Wells Fargo
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The WTO is going to have a meeting that will announce to the world the introduction of Iraq into the WTO. Does the WTO require an international exchange rate?No. So we’re not going to look for that here…They are going to do this on the 4th of next month…