LIFT SANCTIONS TO IRAQ
..So, what else is in the news of importance to our investment?
A member of the House of Representatives, Mohammed Al-Sayhoud, revealed on Thursday a government move to lift the US sanctions imposed on Iraqi banks, while stressing that the work of the Iraqi committees is continuing with the file of removing the US combat forces from the country. Why is this important news?
I find it quirky how they tie these two issues into one article (lifting sanction on the banks with the removing of US combat forces). Are they trying to tell us something? Could it be that Iraq is pressuring the U.S. to relieve these sanctions and in return let them have a longer military combat presence in Iraq? Sounds like it to me. It’s about time Iraq did some real negotiating for their own benefit. Will they, can they, also negotiate the release of the reinstatement of the dinar as part of a deal to allow the combat troops to stay in Iraq a bit longer?
We know that Ali Alaq is not letting the proverbial “cat out of the bag” when he talks to the Finance Committee either. The CBI must be careful about speculators in the dinar, and he has told us this too already many times.
Remember that the sanctions put on the Iraqi banks, by the CBI, at the request of the US Treasury only prohibit the sale of the dollar by these banks. They can still do business with the dinar and other foreign currencies and are making money anyhow. However, through the sanctions the CBI and Treasury are trying to reverse the reliance of the banks to make money solely off the point spread of the buying the dollar beyond the CBI official rates. Get it? We read many articles on this already too. They must convert/reverse the bank revenues to other sources to get out of the currency auction business and into real banking practices, like all other banks in the world.
So, to comply and take these sanctions off these banks they will have to comply and deal in dollars ONLY at the official rate. They will also have to prove to the CBI that they are engaging in other forms to generate revenues to stay in business. Remember that banks are also a business and, like any other business, must also find ways to make a profit and generate revenues. This is what the CBI and the U.S. wants as part of the financial and banking reforms. They don’t want the banks to crash simply because they are stopping the currency auctions. Get it?...