STATUS OF THE RV
I was told discussions conducted by a joint Iraqi delegation (the government, the central bank, the Association of Iraqi Private Banks, and the banking sector represented by a number of private banks) were completed in Istanbul returned to Baghdad on Friday.
Then this article pops out.
The article told us about the meeting and the implementation of the banking arrangements agreement that were concluded with Turkey, last week, it started and I quote from the article – “covering imports from retailers Turkey in tens of millions of euros, through Iraqi merchants paying in Iraqi dinars and the Central Bank strengthening them in euros to settle with Turkish merchants in Turkish lira.”
In other words, the merchants are now able to pay for imports in dinars and the CBI is backing them with Euros and Lira.
Sort of like a temporary peg for the dinar but right now only with Turkey, as per an agreement.
But soon this too will change.
Iraq is paying for imports in dinars.
We have been waiting for this news for so long now, almost 17 years.
We also previously heard that Iraq is trading with Iran in dinars too.
The CBI is also backing a % of them with Euros.
Why are they backing the dinar with Euros and Lira or any other currency?
Until they reinstate the dinar into the new basket of 6 currencies, the CBI must back the dinar with something as part of their agreements.
Remember using the dinar right now at 1/6 of a penny is not exactly the perfect situation.
Also remember many middle eastern countries still look at Iraq as a bit unstable with the Iranian militia and US Army forces still occupying the country.
So, this too has to change soon and we can clearly see the urgency to do so.
What else is significant about this latest news?
We know the Iraqi dinar is now off the dollar peg and this is yet more proof and confirmation of that FACT.
So, the CBI is using Euros and Lira currencies but staying away from the dollar as a temporary peg measure.
This may vary depending on what country they are doing business with.
But this is all VERY GOOD news as this is how international trade should work and not use currency auctions and a sanctioned suppressed rate solely pegged to any currency such as the US Treasury did in 1991 with the Iraqi dinar to the US dollar.
But the good news is that it is now time for Iraq to bounce back and stop licking its wounds.
It is time to lift the remaining sanctions against the dinar namely the OFAC sanctions by the US Treasury which prohibit it from being reinstated on the global currency trading platforms.
Oh but this too is about to change and is coming shortly.
Remember that in the Iraqi Shafaq News last week there was an article encouraging that the dealing with the local currency dinar, under the current economic conditions in the country, is an important issue, especially with the government’s tendency to “strengthen” the Iraqi dinar against other hard currencies, especially the dollar, as well as seeking to present it first in order to be a “issue of a homeland” in a real way.
So just recently Iraq now began broadcasting news in-country to the citizens that the dinar is an “issue of a homeland” in a real way.
This video below is a patriotic video, it is telling the people that the dinar is valuable and will revitalize the nation.
If you pay attention to the scenes in the video you will see schools, construction sites, businessmen and woman, bankers etc.
It DOES NOT say the dinar is going to be stronger than the dollar, but it does tell the citizens they should be very proud of their national currency and that it is very valuable.
So, now showing you evidence that something BIG is about to happen with the dinar.
2023-2024 – Iraq national campaign to revitalize the dinar
In the article from last week the government also is encouraging in dealing in the dinar in all daily transactions, the dinar is called “to be a door to build the country again, and seek to strengthen and promote the Iraqi economy, and reduce dependence on other foreign currencies”, so that according to government trends is fixed and the rest are variables, so that the dinar is a gateway to sustainable development and prosperity at all levels.
I noticed every once in a while, there is news about the hoarding of dinars and they tell us how much is estimated to be in circulation but outside the banking system.
However, what makes today’s article unique is that it talks about what I believe are our dinars as investors abroad, outside of Iraq.
They must collect our dinars too and take them into account, which it sounds like they are now doing.
Its all good news.
Still no newer lower denominations but we are getting very close to the timeframe I was told for the process of the currency swap out to begin and the final program rate change necessary to conduct it.
Let’s see what happens in the coming weeks.
As you may have read that since the Israeli / Hamas war began last October, we have seen a surge of bombings of US military bases in Iraq.
But who is responsible for these attacks?
We are witnessing a lot of false information on the attacks of the US bases in northern Iraq.
Like I told everyone these Iranian militia are going to ultimately cause trouble and should be kicked out of Iraq altogether.
So, we also see US Ambassador Alina Romanowski’s tweet about justifying the bombing of the Popular Mobilization Forces is a transgression against the blood of Iraqis.”
This too in Iraq is not helping the situation.
This has caused cries to expel her from the embassy.
We can see yet more pressure to remove the US armed forces from Iraq.
These sentiments also come on the heals of the push for more control by Iraq of its reserves from the US banks in America.
This is all predicated on the fact that all sanctions are supposed to be lifted from Iraq as of last December 2022 so why still have many of these sanction-like provisions of the currency are monetary reserves in place?
Here it is almost mid December already and so if the CBI is truly going to reinstate the dinar in early January of next year, we must hear some good news about the currency sway very soon..