Thursday, February 8, 2024

February 8, 2024 01:22

The Iraqi Ministry of Foreign Affairs announced yesterday that Foreign Minister Fuad Hussein stressed in a phone call with US Secretary of State Anthony Blinken the necessity of returning to dialogue and the negotiating table to discuss the future of the international military coalition led by the United States in Iraq.
The talks between the two countries began in January, but less than 24 hours later, three American soldiers were killed in an attack on the Syrian-Jordanian border, which led to the talks stopping since then.
The Iraqi Foreign Ministry statement said that during his call with Blinken, Hussein stressed the Iraqi government’s rejection of such attacks and informed him that “Iraq is not an arena for settling scores between rival countries.”
The United States has 2,500 soldiers in Iraq who provide advice and assistance to local forces to prevent the return of the terrorist organization ISIS, which in 2014 took control of large parts of Iraq and Syria before its defeat.
After the withdrawal, Iraq is keen to establish bilateral relations with coalition members, including military cooperation in the field of training and equipment.
Hussein formally called on the US Treasury Department to reconsider the sanctions it imposed on several Iraqi banks, and asked whether those sanctions had been imposed due to compliance issues or “for other political reasons.”

https://www.aletihad.ae/news/%D8%B9%D8%B1%D8%A8%D9%8A-%D9%88%D8%AF%D9%88%D9%84%D9%8A/4462120/%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82-%D9%8A%D8%B7%D8%A7%D9%84%D8%A8-%D9%88%D8%A7%D8%B4%D9%86%D8%B7%D9%86-%D8%A8%D8%A7%D9%84%D8%B9%D9%88%D8%AF%D8%A9-%D8%A5%D9%84%D9%89-%D8%A7%D9%84%D9%85%D9%81%D8%A7%D9%88%D8%B6%D8%A7%D8%AA-%D9%84%D8%A8%D8%AD%D8%AB-%D9%85%D8%B3%D8%AA%D9%82%D8%A8%D9%84–%D8%A7%D9%84%D8%AA%D8%AD%D8%A7

"RV UPDATE" BY KAPERONI, 8 FEB

Kaperoni

I remind people again Iraq's entire net worth including all minerals in the ground including oil is only worth about $16 trillion dollars. With over 100 trillion dinar in circulation Iraq could never RV the dinar! Only with the success and growth of Iraq's economy and private-sector can the dinar go up in value. It could go up gradually over time as Iraq's GDP increases.

I still have significant concern over Iraq wanting to redenominate (LOP) their currency. There are numerous educational symposiums teaching the citizens about such an event. This is a very real possibility.

Article "US and Iraq agree to start talks to end presence of US-led coalition"

The dinar either rises gradually over time as Iraq's economy prospers reducing the money supply or Parliament will authorize the deletion of zeros reducing trillions to billions and a LOP. Not what we want to see.

there is no way Iraq can RV the Iraqi dinar with [120] trillion dinar in circulation. No country could afford. Iraq's total net worth is only around $16 trillon dollars.

There is no significant RV of the Iraqi dinar.  And if the dinar does ever go up in value, it will be based on the success and growth of Iraq's own economy. There are no shortcuts.
Article:   "Ali Al-Alaq, the current governor of the Central Bank of Iraq confirms that Iraq's money supply exceeds 100 trillion dinar."
If and when the Central Bank decides to increase the value of the Iraqi dinar more than likely it will be based on some type of gradual float as a result of the success and growth of Iraq's own economy and an increase in GDP.
I hope each and every one of you find success in this investment...It may take time. It may be another 1 to 5 years. I certainly hope not but I believe things could happen quickly over the next 36 to 48 months. It all depends on Iraq.
...We all know things don't happen fast in Iraq. Iraq has a lot of work to do in order to succeed. The first of which is pass over 100 stalled laws through Parliament to encourage investment in Iraq. And at the same time the Central Bank of Iraq has to continue reforms to the banking system, digitalization, and apply monetary tools to meet compliance .
A country's exchange rate is the result of the success and growth of their own economy. When you have a weak economy, you have a weak exchange rate.  Until Iraq passes laws, diversifies their economy and increases their GDP, nothing will happen with the dinar.   When Iraq passed their tripartite 3 year budget a few months back, it created the conditions for them to diversify and privatize their economy over the next three years.   Now Iraq is on the clock to accomplish such.
There's a new article out that many people are translating and confusing.  They are not talking about an RV in Iraq, they are talking about the spread being in compliance early next year.
Just a reminder the spread is the difference between the official rate and the market rate or street rate and has been way out of whack recently in Iraq. This article simply means they expect the spread to come down closer to the official rate early next year. There is no RV.
    A very important statement was made back in 2020 by the prime minister's economic advisor Mohamed Salah who used to be Deputy Governor of the CBI under Shabibi. He stated that Iraq's entire wealth including all minerals in the ground amounts to only $16 trillion dollars. Knowing that information one can then determine that there is no way a significant RV could ever occur with over 90 trillion dinar in circulation.  It doesn't make sense...
They...have to have the dinar stabilized within the country and within the 2% rule mandated by the IMF in order to then accept IMF article VIII and begin to float the dinar which would raise its value based on supply and demand. All of these processes and or steps required time.
https://dinarevaluation.blogspot.com/2023/12/rv-update-by-kaperoni-10-dec_0650267841.html
https://dinarevaluation.blogspot.com/2023/12/rv-update-by-kaperoni-18-dec.html

Iraqi Dinar | Biggest Currency Shift Ever IQD RV Confirmed | Iraqi Dinar...

The World Bank praises the infrastructure of electronic payment systems in Iraq, 8 FEB

The World Bank praises the infrastructure of electronic payment systems in Iraq

Today, Wednesday, the World Bank praised the infrastructure of electronic payment systems in Iraq, indicating that it is the best in the region.

The media office of the Central Bank said, in a statement received by Al-Mutla’, that “Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, received a delegation from the World Bank headed by the Director of the World Bank’s office in Iraq, Richard Abdel Nour.”

He added, “During the meeting, strengthening bilateral cooperation between the Central Bank of Iraq and the World Bank was discussed, and electronic payment projects and financial inclusion were discussed, as well as reform programs to enhance the stability and development of the financial sector.”

He continued, “The two parties also discussed the support of the World Bank to provide advice in establishing the Riyada Bank dedicated to financing small projects in Iraq, with the support of the International Finance Corporation.”

The World Bank delegation also praised “the Central Bank of Iraq’s procedures in facilitating financial transfers to different segments in Iraq,” noting that “the infrastructure of electronic payment systems and software systems in Iraq is among the best systems in the region,” according to the Iraqi Central Bank’s statement.

almutalee.com

"RV UPDATE" BY GOLDILOCKS, 8 FEB

Goldilocks and Seeds of Wisdom

“Chinese authorities told state-owned banks to step up intervention in the currency market this week, in a push to prevent a surge in yuan volatility, according to people familiar with the matter.”

In 2023 until now, The People’s Bank of China has been manipulating their currency exchange rate more than usual. As the dollar has become more unstable, their State Banks have stepped up to the plate to buy some of their assets from the markets themselves to stabilize the Yuan.

Several tools have been utilized to control their currency fluctuations as of late, and the Exchange Stabilization Fund has been called in to assess the situation and give them supportive direction. “China academic calls for US $1.4 trillion stock stabilisation fund.”

As the global wars continue to expand, the volatility of all the Global Markets are beginning to create havoc in the foreign currency exchange markets. Currency interventions like these are common during wartime efforts.

This is why old play books no longer apply when distortions in the market begin to affect economic stability and job creation opportunities.

The BRICS Nations, of which China belongs, sets them apart through a backing of gold to support their local currencies. These efforts adds to the net worth of a country’s revenue holdings.

The use of gold to stabilize currency exchange rates and demand bring in greater value in exchange processes between countries.

As Global wars continue to expand, you can expect a rise in volatility inside the Markets and Forex. Old contracts between nations may no longer hold accurate trade values going forward. Look for gold and other Exchange Stabilization Fund interventions to come into play.

© Goldilocks

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