“The central bank of Iraq have decided to resume the sale of gold bars and coins starting from Wednesday Nov. 8th”. ...they will be selling to private banks and the government. This is big imo…and shows more de-dollarization. And shows a similar pattern to Zimbabwe…going back to gold to support the value of their currencies.
Question: Mark do you think the RV is waiting until January? MarkZ: I don’t think so. So much is happening now…and all at once...Most of my sources believe things are moving at a wonderful pace this week.
Not a lot of RV news but, the overwhelming consensus is that they did their best to pull the trigger over Friday and Saturday. Their backup plan was Monday night or Tuesday....They feel very confident they will get this thing wrapped in the near future. There is a whole heck of a lot of expectations for the next 2 days
Seems that things appear to be heating up…so many rumors.
Iraq’s Economic Landscape: A Dance with Oil, Gold, and Geopolitics
Oil prices have plunged to a three-month low, signaling turbulence in the commodities market. Coupled with this, the Central Bank of Iraq, after a six-month hiatus, has reignited its gold selling operations through an electronic platform dedicated to banks. The maneuvering in the precious metal market is noteworthy, with the price per ounce of gold surging to $1.9.
Fluctuating Markets: Oil and Gold
The economic landscape in Iraq is characterized by the volatility of oil and gold prices. The slump in oil prices coupled with the surge in gold prices underlines the instability in the commodities market. The reinstatement of gold selling by the Central Bank of Iraq suggests attempts to bolster the economy in the face of uncertainty. The escalation in gold prices in the wholesale and jewelry markets mirrors an increased demand, possibly serving as a safe-haven investment amid economic turmoil.
Economic Challenges: The Iraqi Dinar and Dollar Exchange
The volatility of the Iraqi dinar against the dollar, emphasized by the variable exchange rates, illuminates the economic hurdles facing Iraq. The uptick in dollar exchange rates may signal potential economic instability, influencing imports, exports, and overall purchasing power.
Geopolitical Tensions: Iraq and the United States
In the political sphere, the remarks from President Barzani concerning the bombardment of foreign troops in Iraq and the dialogues between Iraq and the United States on legal issues exhibit geopolitical strains that could sway economic policies. Moreover, the emphasis on enacting the oil and gas law and addressing revenue issues underlines the pivotal role of the energy sector in Iraq’s economic stability and the role of international players in shaping Iraq’s economic agenda.
Fighting Corruption: Technological Advancements
The focus on curbing money laundering and corruption through technological advancements accentuates Iraq’s endeavors to enhance governance and transparency – vital for nurturing an appealing investment environment and promoting economic growth.
On the whole, the economic and political developments in Iraq are entwined with the fluctuations in oil and gold markets, volatility in currency exchange rates, and initiatives to fight corruption and improve governance. Iraq’s economic stability is substantially influenced by international relations and the performance of key commodities on the global stage.
U.S. Dollar Takes a Dip in Baghdad and Erbil Markets
In the heart of Baghdad and Erbil, the exchange rate of the US dollar versus the Iraqi dinar has taken a downward turn, stirring significant interest. The lower selling and purchasing prices are seen as the offspring of market fluctuations and a series of economic factors. The scene is painted complex by global political events, Iran’s potentially growing influence in Iraq, and administrative and financial corruption within Iraq’s system.
The Dinar’s Volatility Amidst Political Tensions
The Iraqi dinar has been sailing on rough seas, facing repeated bouts of volatility. Experts are divided over predictions, some foreseeing stabilization amidst political tensions, while others remain skeptical. Economic expert Khaled Haider points towards the global political climate, particularly the crisis in Gaza and allegations against Iran of backing the Hamas movement, as key influencers on the Iraqi economy. He also highlights the deterioration caused by administrative and financial corruption to the exchange rate disparity, necessitating hefty dollar injections into the currency auction by the Central Bank of Iraq.
Consequences for Iraqi Citizens
The vacillation in the exchange rate proves consequential for Iraqi citizens, especially in a country so heavily dependent on imports. The growing chasm between the official exchange rate and the black market rate directly impacts the prices of consumer goods, straining Iraqi households financially. Furthermore, the exchange rate disparities have raised inflation concerns and foreign exchange market instability, reinforcing the need for measures to stabilize the exchange rate and cushion its economic impact.
Addressing Economic Challenges
Rooted in its history, the economic challenges for Iraq are vast, including the aftermath of the 2003 U.S.-led invasion, which led to economic contraction and significant social and political turbulence. Despite efforts to invest in reconstruction and development, the economy remains fragile and heavily oil-reliant. The Central Bank of Iraq has been at the forefront in tackling these challenges, initiating steps to stabilize the foreign exchange market and foster inclusive economic progress. However, the economic landscape remains intricate, with concerns surrounding global events like OPEC’s decision to force Iraq to cut its oil production, and the country’s susceptibility to considerable carbon transition risks due to its hydrocarbon sector dependence.
The Road to Economic Recovery
The exchange rate between the Iraqi dinar and the U.S. dollar continues to be a focal point amidst these economic challenges. The Central Bank of Iraq’s efforts in stabilizing the exchange rate are instrumental in mitigating the impact of fluctuations on the economy and fostering economic development. However, the road to economic recovery is long and winding, necessitating sustained efforts to tackle structural imbalances and promote stability. In the grand scheme, the exchange rate dynamics between the Iraqi dinar and the U.S. dollar mirror the intricate interplay between global events, economic policies, and the structural challenges Iraq faces. As the country steers through these complexities, the exchange rate serves as the economic landscape’s barometer, indicating the need for concerted efforts for stability, diversification, and inclusive growth.
FIREFLY: Oil and Gas law by the 9th...or have to wait...Without the Oil and Gas no rate until 2024.
FRANK: You say, without the HCL you will not have an exchange rate until January 1st? I can agree with you to a certain point...IMO Between now and January 1 you will see what you want...They already gave you a clue - The dollar will stop on January 1st...
FIREFLY: The television says the parliament session will end on the 9th of this month and parliament is telling us that there are no more scheduled sessions this year nor are there any emergency sessions. That means the HCL law didn't make it again.
They've been telling us it was going to come. That they were going to vote on it on this session. They're saying no more sessions until next year. It's a little disappointing...
FRANK: I don't care what parliament says and neither should you...Sudani and Barzani have your HCL. All that is needed is for the new exchange rate to come out in order to activate it... Sudani can call a session on his own.
This year IMO is a fact...that's 57 days until the year is over with. In that 57 days we believe we will see our blessing.
Thank you MarkZ for all your time, and encouragement daily….. PDK
MarkZ Wednesday Update- Some highlights by PDK-Not verbatim
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Coffee with MarkZ and Andy Schectman. 11/08/2023
Member: Hoping to hear more confirmations from bond people and Iraqi sources today. Every day feels like Christmas Eve and we are waiting for 800 numbers wrapped in a bow to be left by our fireplaces
Member: Remember..The chinese like the number 8..lets goooooo
Member: 11/11 sounds like a date the Chinese would also like !
MZ: Historic bond folks are still looking at rumors of liquidity for the next couple of days. They are still being told to expect “full economic receipt” and being able to spend it with no strings. I am getting that from 2 bond people
MZ: I know a number of group leaders have been traveling for this thing….but, they are not giving me any specifics. They have been cracked down on what they can say and NDA’s.They have been leaned on hard to not leak the timing of this event. To me this means timing is “sooner” rather than “later”
Member: For years these people been "traveling" They must be so tired!
MZ: I am still believing this will all go at one time…..at least 109 currencies all at one time is what I was told….including the ones we want.
Member: New video on youtube states dinar is $5.61 and dong is $4.87
MZ: I think that dong rate is high but, believe that dinar rate is possible.
MZ: “US adds Vietnam to currency monitoring list” Why so? Well they have high amounts of USD they could dump and a trade imbalance. They are a little afraid of their trading partners.
MZ: “Banker sounds alarm on more inflation. New financial crisis at Hong Kong summit” These are folks from the top of the business sector and they all got together. They all forsee a financial crisis. And just one event could trigger it.
MZ: “Americans are absolutely drowning in debt. This really is the worst debt crisis in all of US history” We have been very irresponsible with our spending….including the US government. There is nowhere to go but a reset.
Member: the fed reserve system is a debt system hence the debt note called the federal reserve note you cannot payoff debt with more debt
Member: I read When Gesara/Nesara happens, all debt is wiped out? Mortgages? Visa?Some income tax money given back? People not with the RV will still be able to receive from Gesara/Nesara.
Member: NADER just put out a good video. According to him Iraq will be International and on Forex in a few days.
Member: yes- Nader said IQD is going international in a couple of days !!
MZ: That is huge and I continue to get the same from my Iraqi sources as well.
Member: Nader said all currency foreign and domestic will have to be registered via serial numbers….on international forex in 48 hours.
Member: Militia Man mentioned 7th, 8th, 9th for Business in Iraq, so I'm thinking after tomorrow ?
Member: The WTO vote on Iraq is tomorrow I believe.
Member: Has anyone seen the new currency? Has anyone seen anything to prove an RV ever happening?
Member: I believe we are already looking at our new currency because of the gold jug that is on the face of the $20's and higher bills. They are part of the new batch of 2013's and 17's.
Member; I am still hopeful- the USN bills are true.
Member: 3 day weekend, starting Friday… FYI!
Member: Wishing all a great HUMP day. Continuing to pray for our blessing.
Andy Schectman joins the stream today…Please listen to the replay for his opinions and information.
THE INFORMATION IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY. NOT INTENDED TO PROVIDE ANY PROFESSIONAL & LEGAL ADVICE. PLEASE CONSIDER EVERYTHING DISCUSSED IS MARK’S OPINION ONLY.
The government issues new instructions regarding the dollar exchange rate mechanism
11-8-2023
The government issues new instructions regarding the dollar exchange rate mechanismInformation / Baghdad..
On Tuesday, the Council of Ministers held its forty-fifth regular session headed by Prime Minister Muhammad Shiaa Al-Sudani, while taking a set of decisions regarding the dollar price mechanism and maximizing the state’s imports.
The Office of the President of the Council stated in a statement received by “Al-Ma’louma” that, “In the course of government action to regulate financial transactions based on the dollar, the Council agreed to amend Paragraph (3) of Cabinet Resolution (23545 of 2023) regarding the dollar exchange rate mechanism, to become according to The following: With regard to Iraqi borrowers from government banks (including the Iraqi Trade Bank) in the US dollar currency, these banks are committed to repaying their loans at the official exchange rate (1,320 dinars) for every US dollar from the borrower, provided that the Central Bank of Iraq strengthens the banks’ accounts in dollars for transfer purposes. The external exchange rate, and at the official exchange rate, according to its need, and this procedure applies exclusively to loans that were disbursed before the issuance of this decision.
As part of the government’s efforts to combat corruption and recover stolen funds, the Council of Ministers agreed to “issue instructions to facilitate the implementation of the provisions of the Iraq Money Recovery Fund Law No. (9) of 2012, based on the provisions of the Constitution and Article (9) of the aforementioned law, taking into consideration the proposals.” set forth in the draft project submitted by the Iraq Assets Recovery Fund, and the notes of the Legal Department in the General Secretariat of the Council of Ministers.”
In the direction of working to maximize the state’s imports, the Ministry of Commerce was approved to sell (49,624,767) kg, or forty-nine thousand six hundred and twenty-four tons, and seven hundred and sixty-seven kg, of damaged wheat that is not suitable for animal consumption, and to export it outside the country for final disposal, provided that Its release shall be under the supervision and follow-up of the National Security Service, provided that the sale is made at public auction for export purposes, and that the price is determined by the Estimation Committee formed in accordance with the Law on the Sale and Rent of State Funds, in accordance with the procedures stipulated in Article ( of this law, and the amount shall be transferred to The Public Treasury, according to Paragraph (3) of Cabinet Resolution (360 of 2022).”
The recommendation of the Ministerial Council for the Economy (230276 Q) was also approved as follows: Approval of what was stated in the letter of the Ministry of Agriculture dated October 5, 2023, regarding the sale of the remaining quantity of premix amounting to (1,113,955) kg, one thousand one hundred and thirteen tons and nine hundred and fifty-five. kg, belonging to the General Company for Agricultural Equipment, without public bidding; Because it is highly perishable, based on the provisions of the Law on the Sale and Rent of State Funds (21 of 2013), provided that the aforementioned ministry bears the financial and legal consequences and the accuracy of the information.”
As well as “the Ministry of Agriculture’s scrutiny of the reasons for purchasing quantities greater than the actual need.”
The Council voted to “address the debts owed by the Ministries of Defense and Interior and the Popular Mobilization Authority, regarding medicines and medical supplies from the Ministry of Health/The General Company for Marketing Medicines and Medical Supplies (Kimadia), through coordination between the Ministry of Health and the relevant authorities, and providing the Ministry of Finance with what supports these debts.” The amount will be secured this year/2023, or next year/2024.”
