Sudani...I think he's right when he says 2024 is going to be a year of achievement...We haven't seen the spending of the '23 budget yet nor have we se a pumping of that oil just yet and nor have we seen a full-blown assession to the World Trade Organization yet. Why is that? Because we probably have to wait to hear what they have to say when it comes to a Real Effective Exchange Rate. Hopefully that's what we'll see...in a very very short period of time.
Article: "The International Monetary Fund welcomes Iraq's accession to a program that supports economic reforms"
Quote: "Thursday...the International Monetary Fund welcomed Iraq’s accession to a non-financing program to support economic reforms" After decades of involvement...the specificity of many things are likely to be known by the IMF,
exchange rate regimes be sure. For Iraq to be moving forward with all reforms ...in that there is no financing needed should be eye opening for everyone. How does non-financing work with the IQD at 1,310 IQD to 1 USD for to pay for projects and commodities?
It has not ever while with an IQD exchange rate of $.0006 or even $.0007 to the dollar. So why would it be any different now? It clearly wouldn't.
The fun part is we are watching history in the making...Saudi Arabia strongly supports Iraq's ascension to the World Trade Organization...They've basically said Iraq has completed everything needed to be done. Everything is just shy of announcing they have WTO ascension.
Politician: Al-Sudani’s statements are messages to Washington to end the presence of its forces in Iraq
Information / Baghdad.. Political observer Sabah Al-Ugaili confirmed, on Saturday, that Prime Minister Muhammad Shiaa Al-Sudani’s statements in “Davos” represent direct messages to the American administration to implement the strategic framework agreement, as it includes ending their military presence in Iraq.
Al-Ugaili said in a statement to Al-Maalouma, “The Sudanese government has the seriousness and real desire to end the presence of the international coalition forces led by the United States of America, as they have become a factor influencing national sovereignty.”
He added, “Al-Sudani’s statements during the Davos conference and what preceded it confirm his government’s serious desire that the presence of coalition forces, including American forces, is important. However, this desire needs internal support by the political forces and parliament.”
He pointed out that “the Sudanese affirmation of this desire represents direct messages to the Americans to implement the strategic framework agreement, as it includes ending their military presence in the event that the ISIS threat disappears.”
He pointed out that “the support of the political forces for the government’s approach, as well as the issuance of a new resolution supporting the previous decision of the House of Representatives regarding ending the mission of the presence of international coalition forces, will give the Sudanese a moral boost.”
Al-Ugaili continued, “If the work of the bilateral committee is activated, the government must impose a specific time and period for negotiations with the Americans, as they are the party leading the international coalition, so that there is no procrastination or prolongation of time.”
Prime Minister Muhammad Shiaa Al-Sudani confirmed in statements during the Davos conference that Iraq no longer needs the presence of international coalition forces.
The next phase is to put our currency [dinar] in a basket.
We have control of it do we not? It's all the way down to 1310/1320 so close to 1200 or 1000.
We have control of the auctions have we not? Yes.
We have control over our reserves have we not? Yes. You have it all...
These other currencies don't mind going in a basket with you? No. They know by going into that basket supply and demand will be called upon for everyone in the basket...Iraq is the prettiest girl in town.
Question: "Do you think Iraq will depose current currency once revalued?" Once they revalue of course they're going to get rid of the currency...the 3-zero notes. They will introduce the lower denominations and the fils to the citizens. But it needs a different exchange rate that would match it to give it value. The exchange rate right now is so low there is no value...
IMO those of you that deal in commodities...you saw 1.68...on the 15th. Today you saw 3.04 on the commodity trades with the Iraqi dinar and you saw it being done in Iraqi dinars, no other foreign currency ...based on what we are seeing, they are agreeing to the future rate of the Iraqi dinar in commodities in dinars. These are contracts...to buy or sell a specific quantity of a physical commodity at a specific price on a particular date. Basically what you saw...IMO are Futures.
The Ministry of Commerce announced today, Saturday, the conclusion of the activities of the Baghdad International Fair in its 47th session, while touching on its advantages.
The Minister of Commerce, Atheer Al-Ghurair, said in a statement received by “Economy News: “The activities of the session were distinguished compared to previous sessions in terms of organization, qualification, diversity and size of participations of countries and companies, as well as the achievement of many partnership contracts between the Iraqi sectors and sectors of countries and companies participating in the international session.”
He pointed out that “the Baghdad International Fair is a message to the world that Iraq is coming strongly as an important economic player capable of containing and interacting with the largest international gatherings in a way that serves the aspirations of our people for a free and dignified life, as well as that the exhibition was a message from the participating countries for their desire to build bridges of cooperation with Iraq.”
For his part, the company’s general manager Mustafa Al-Ani confirmed “the conclusion of the activities of the Baghdad International Fair as another year in his pioneering career that accompanied its launch in the 1960s,” and said that “this session was characterized by the participation of 22 countries and 850 local, Arab and international companies, which is the highest participation compared to previous sessions, where the participation of the Kingdom of Arabia was the largest participation.”
He added that “the conclusion of this session gives other aspects to the new Iraq in its economic developments, which can give it the opportunity to enter international investments, as the exhibition witnessed commercial shows of various international and local goods and goods in addition to the projects and achievements of local and international companies from various sectors as well as projects related to infrastructure, agricultural, industrial, technological and other fields.”
So, how long will us investors in the IQD have to wait before Iraq is allowed to liberate its own currency?
Why do I say “now is the time”?We know they are completely out of Chapter VII sanctions since December 2022...We know they want the Iraq funds (nearly USD 115+ billion) released from the NY banks and put in their custody...We know they have plans for yet more Sovereign Funds to invest their reserves.
We know they are making agreements now for “currency swaps” for trade...as Iraq will no longer be using any US dollars in Iraq as of January 1st 2024. We know that the IMF is now working on the final stages of pulling together agreements to build a new basket of six (6) currencies to re-peg the IQD. More pressure from Iraqi economics advisors to the government to use a “basket” of currencies for the new dinar peg. This is the IMF plan of 2011 all along.
We know since January they have undertaken a massive “de-dollarization” program and told it should have taken 6 years but they decided to do it in 1 year (2023).
Why such a hurry?
We know the value of the IQD right now does exceed even pre-1991 era but still at 1/6 of a penny for a rate?
The value won’t go up, its already there ...
Why is it being suppressed?
Iraq needs to see a rate reflecting the TRUE VALUE.
What is holding it back?
We know Iraq now pumps 2/3 more oil than in pre-1991 era. Iraq also has announced 132+ tons of GOLD reserves. We know they are pushing this year alone, more than any other year since 2005, for the passing of Oil and Gas law.
Why?
We know for a FACT that it is the U.S. through the Treasury Dept. direction that will NOT give sign-off to allow the reinstatement.
Why?
Finally, the CBI has told us many times already that January is the most opportune time to reinstate for accounting purposes, since it begins their new FISCAL year (for accounting purposes). Imminent World Trade Organization full accession.
Just be patient, the reinstatement is coming and I firmly believe from what we now know there is a very strong likelihood we NOT are going to be at the banks in early 2024 but there is still strong hope for early part of the new year.
There is no guarantees and so no one really knows a date when the event will occur. Let’s just follow the FACTS and see where they lead us…okay? Iraq is full of surprises and so anything is possible.