"The Bank Term Funding Program (BTFP) expire in March, and no new loans can then be taken out, but existing loans can be maintained until their term ends, which is one year after it was issued."
The existing loans will give Banks time to add new Basel 3 requirements to new loans (SOFR) going forward inside a gold backed economy.
Secured Overnight Financing Rate (SOFR) allows a borrowing of cash overnight that is collateralized and repurchased through the US Treasury securities.
This new repo Market mechanism (SOFR) will gradually be put into place to replace the old Libor contracts finishing up their contracts this year.
"1-, 3- and 6-month US dollar LIBOR settings continue to be published under an unrepresentative ‘synthetic’ methodology until end-September 2024. After this, publication will cease permanently."
By the end of the year, everything turns to gold. "All roads lead to gold, and gold will set us free."
Can Iraqi oil be sold in currencies other than the dollar?
Ziad Al-Hashimi, an economist, offered insight on the realities of requests to sell oil in currencies other than the US dollar.
“There are emotional parliamentary and non-parliamentary demands demanding that the Iraqi government sell oil in currencies other than the dollar,” Al-Hashemi stated in a post on the “X” platform that was then followed by “Jarida.”
The economic expert clarifies, “Theoretically, Iraq and other countries can sell their oil exports in any currency other than the dollar.” in reference to the rationale and viability of these requests. Although the state is allowed to make this option as a sovereign, oil is a political and economic weapon that directly affects the world economy. Dealing with oil as an export good requires extreme caution and awareness since everything associated with it has global economic and even political implications.
“There is a strong connection between a barrel of oil and the US dollar, which after 1973 was determined by what is called the petrodollar,” he continued. “Any violation of this rule will incur very large losses to Iraq, which will go to exchange rate differences between the dollar and the rest of the currencies.” The dollar is the currency used for global oil pricing.
Al-Hashimi declared, “In order to maintain their interests and strategic ties with the United States, the oil-producing nations only sell their oil in dollars. Iraq describes itself as a friend and even an ally of the United States, and its government has no desire to open a confrontation front with the Americans. As a result, selling oil for any currency other than the dollar is seen as a challenge to or preparation for entering into a conflict or state of war with the United States.
“Approximately 60% of the volume of global trade is priced, bought, and sold using the dollar,” he went on. “This gives countries that receive the dollar great flexibility and strength in managing their trade and imports.” Iraq will lose this crucial edge if oil is traded in currencies other than the US dollar.
“The decision to abandon the sale of oil in dollars is a huge strategic decision that carries risks and wide political and economic consequences that could negatively affect Iraq’s future for decades to come,” the economic researcher said in closing. As such, using this choice as an emotional response to the Fed’s penalties or as a way to vent frustration at the Americans makes no sense.
The Iraqi Central Bank is not going to come out and say, 'by the way you guys, tomorrow we're going to come out and drop the three zeros and guess what it's going to be at X [rate].' They're not going to do that. Nor is the...Finance Minister going to say, 'Hey by the way, I'm going to order the Central Bank of Iraq to what they got to to to change the value of the currency.' Nor is the US Treasury, US Federal Reserve, World Bank, IMF or Bank of International Settlements...
Article: "Postponing Electronic Application for Housing Funds"
They told us they were going to build hundreds of thousands of homes. They were going to have loans ready for them but they decided to postpone it.
Quote "...until new mechanisms for getting loans is approved...'
What's that about?
You were going to open up for loans for hundreds of thousands of housing units but you posted it for a 'mechanism'. What's their definition of mechanism? They don't say but we have to think - Writing up a mortgage at 1310 exchange rate and that changing the next day creates a problem...They need to know how much.
Iraq is doing a phenomenal job...Thinking that this is never going to get done? And we have issues?
Well of course. The Middle East has always got issues. But are they getting better? Yeah...Anybody and everybody that owns the Iraqi dinar...should have an idea where the Development Road Project is headed and where where their outlets are in the Mediterranean and in Europe. It'll make you wake up.
Shafaq News / The US State Department reported on Monday that the United States did not inform Iraq, before carrying out the strikes on the headquarters of the Popular Mobilization and pro-Iranian factions in Madarat and Al-Qaim, west of Anbar province.
“Iraq understood that there would be a US response after the deadly attack on US forces in Jordan,” the ministry’s deputy spokesman, Vidant Patel, said during a press conference, followed by Shafaq News.
Vidana added: “There was no prior notice to the Iraqi government. We informed the Iraqis immediately after the strikes,” he said, noting that “the United States is still assessing the damage caused by its strikes in Iraq.”
Early last Saturday morning, the U.S. Army Central Command reported that its forces had conducted airstrikes in Iraq and Syria targeting positions of the Islamic Revolutionary Guard Corps’s Quds Force and militia groups.
According to the statement, the airstrikes used more than 125 precision-guided munitions, noting that the targets included command and control headquarters, intelligence centers, missile warehouses, marches, ammunition and logistical supplies belonging to militias and the Revolutionary Guards.
White House National Security Council spokesman John Kirby confirmed Saturday that the Iraqi government had already been informed before launching the airstrikes.
In turn, the spokesman for the Iraqi government in the name of Al-Awadi denied the existence of prior coordination between Baghdad and Washington on the strikes by US forces targeting the positions of the security forces in the western province of Anbar, stressing the loss of 16 victims and 25 injuries as a result of that “aggression.”
US President Joe Biden had directed military forces to strike targets in Iraq and Syria used by the Iranian Revolutionary Guards and their affiliated militias to attack US forces, he said, stressing that although the United States does not seek an escalation in the Middle East, it will inevitably respond to those who harm Americans.
when you sanction a country so badly that they have children starving and practically no medical supplies, let alone a currency that was worth less than toilet paper, people will do as they must...This is why Iraq has such a problem with criminal activity. Two generations have grown up in the shadows doing what they must to be able to eat and have medicine...Prosperity is the only remedy for a criminal nation. When people have jobs, make money, can feed their families, and have pride in their lives, they seldom turn to crime. This is where Iraq is now. Only a speedy and sufficient revaluation of the currency will bring Iraq back to the land of the living.
They do not have a massive amount of Dinar with which to deal. Small incremental increases of value over time will guarantee failure and all the many billions of dollars spent, and man-hours wasted will for naught. It is more likely they will come out high on the exchange rate and let it fall until it finds equilibrium instead of creeping upwards in 2% measures every 90 days over decades. Meanwhile everyone loses faith in the GOI, riots, and starves to death. Small increments over time makes absolutely no sense and is illogical.
Article: "The Central Bank of Iraq announced the approval from the US Federal Reserve to supply dollar cash in 2024, as part of efforts to stabilize the Iraqi economy and its currency ."
Quote: "The decision came after officials from the Central Bank of Iraq held a meeting with representatives from the Fed and the US Treasury in Dubai. " As of last Thursday, the official market recorded an exchange rate of 1,296 dinars per dollar. It appears the UST is helping Iraq to stabilize.
The Dubai meetings concluded with praise for the bank's strategies in reducing dollar transactions in the local market. Iraq could end the parallel market activity by simply revaluing the Dinar above one USD and the black market activity would come to a screeching halt.
So why haven’t they? Are they stalling for some reason?