[via PDK] Iraq needs the official rate to be close to the trading rate. They can fix this. Saleh and others are suggesting they let the economy figure the rate out and no longer have an official fixed rate.
If the market decides that would remove the black market completely...This is similar to conversations Kuwait was having just before they RV’d and had a release in value. These are steps we have seen before in past currency revaluations. They have been doing this for quite some time…they are just now starting to tell us about it.
Comment: Another intel provider said the redemption center staff are on 45 min. notice to show up for work. MarkZ: I am definitely hearing they are on call for an hour or less to get to work according to 3 different contacts I have.
UK Export Finance Backs Major Sanitation Project in Iraq
UK Export Finance (UKEF) has secured £226 million to aid the Iraqi government in a significant infrastructure project. This venture will construct an extensive drainage system in Hilla, a city situated 100 kilometers south of Baghdad. The initiative is set to enhance sanitation facilities and provide clean water to approximately 25,000 households in the region.
Revolutionising the Region’s Sanitation
The project involves the construction of over 350 kilometers of drainage networks and 15 kilometers of stormwater and wastewater lifting terminals. The robust system, upon completion, will have the capacity to treat up to 20 million cubic meters of water each year. This substantial improvement in sanitation will have a transformational effect on the lives of the local population.
Financial Arrangements and Collaborations
The financial framework for this project includes a direct loan of £113 million from His Majesty’s Treasury and an equivalent guarantee for financing from Standard Chartered Bank. The bank has been chosen as the exclusive Structuring Bank, Mandated Lead Arranger, and Agent for the project. This collaboration aims to ensure the seamless execution and financial stability of the project.
Consortium of Companies Joining Hands
A consortium of companies is participating in this initiative. It includes Al-Tafweed Company For General Trading and Al-Ehtifad General Contracting from Baghdad, GAMA Industry from Turkey, James Cubitt & Partners (JC&P) from the UK, and Jazirah Al-Mansour Trading & Investment from Jordan. These companies bring with them a wealth of experience and expertise, ensuring the project’s success and long-lasting impact on the region.
No, it's not going to be reinstated at $3.22 rate. This is something that's going to be done in increments. There's either going to be an adjustment up or down. We don't know yet so don't get overly excited...
Why is it that the Iraqi dinar is unstable? That is because they rely too much on oil sales. 95% of their budget relies on oil sales.There's too many people out there going, they got so much oil there's no reason why their currency isn't valuable. No, you don't understand. That's the problem. Article quote "The CBI devalued the notation currency in December 2020 amid a sever drop in global crude prices which threatened economic collapse given Iraq's heavy dependence on oil exports..." If it wasn't for the fact that they devalued the Iraqi dinar they would have collapsed...
Article: "Iraq and 4 Arab countries have more than 1 million tons of global gold reserves" Why do they have so much gold? Because you need that to strengthen your own local currency. Gold is way more liquid than anything else. If you want to make sure the currency stays strong you want to have tons of gold as well as foreign reserve assets in your holding.
Iraq's minimum exchange rate needs to be in order for them to be compliant with the IMF - Take the SDR $1.33 minus 2%...Iraq has to be at an exchange rate at a minimum in order to be in compliant with the IMF...$1.28...
Stop falling for that crap that there's no way Iraq can get all these major projects that they have listed in their budget unless they change the exchange rate. That's false. It's already accounted for. The budget is already created with the proper amount of money set aside for these projects. It's just done in Iraqi dinars with the current exchange rate.
Turkey Works with Iraq to Foster Understanding of PKK Threat
The Turkish Foreign Minister has disclosed ongoing consultations with the Iraqi administration, aimed at fostering an evolved understanding of the Kurdistan Workers’ Party (PKK), a group Ankara regards as a terrorist organization. This initiative forms part of Turkey’s broader strategy to counteract the PKK, a group that has locked horns with the Turkish state in a protracted struggle for autonomy and enhanced rights for the Kurdish population in the region.
Understanding the PKK Threat
The PKK has long been at loggerheads with Turkey, waging an armed struggle for Kurdish autonomy and greater rights. This conflict has strained Turkey’s relationships with regional and international powers, including the United States and Israel, further complicating the geopolitical landscape. The PKK’s recent attack in northern Iraq has amplified concerns, prompting the Turkish government’s swift response.
Cooperation: The Way Forward
Recognizing the need for collective action, Turkey is engaging with neighboring countries like Iraq, seeking to isolate the PKK and curb its activities in the region. This international cooperation is critical in addressing the growing security concerns pertaining to the PKK. These consultations, as highlighted by the Turkish Foreign Minister’s statement, indicate a commitment from Turkey to work closely with Iraq to tackle the PKK issue.
A Broader Strategy
Alongside these consultations, the Turkish government has also launched airstrikes targeting PKK/YPG terror cells in northern Iraq and Syria. This is in direct response to recent attacks on Turkish soldiers and is a clear indication of Turkey’s proactive stance against the PKK. This multifaceted approach underscores the complexities of the issue and the lengths to which the Turkish government is willing to go to ensure security and stability in the region.
This is what happens to a currency when price pressures start to reveal themselves.
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Iraq is now in mainstream Traditional Banking and transitioning into a digital economy at the same time.
We will be watching both the digital economy and traditional banking system mechanisms join together through Quantum Technological networks going forward.
New prices will emerge from each of these areas of utility for the Iraqi dinar and form even Newer price patterns because of the gold that will be sprinkled into it through Basel 3.
Iraqi Banking Announcement: Instructions and standards for circulation and exchange of banknotes, and counting and sorting mechanisms. https://cbi.iq/news/view/2502
