STATUS OF THE RV
As we officially move into the season of Spring, the Iraqi Finance Committee sprang into action too with some important news for us investors. Many of you reading this news from one of today’s articles may be shocked, disappointed or even left wondering how they could do this and how we can still exchange our dinar. So many questions. I will get into the explanation of what Iraq is actually doing to calm your nerves, but first let’s explain the news that was announced.
Sunday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, expected today, Sunday, I quote from the article – “that Iraq will leave government cash dealing and switch to 100% electronic collection in mid-2024.”
Salih said, “Government collection began at the beginning of this year, and it now relies on electronic payments.” Through cards in their various forms, but preparing revenue institutions for electronic payment takes some time.”
He hinted that “by the middle of this year, the government collection rate will become 100 percent electronic, after important institutions such as the Ministry of Electricity and gas stations started it, in addition to the gradual adaptation of the rest of the institutions.”
Okay, now that you read the news lets dive into its meaning. You should not to let these idiot intel gurus get you confused. It is important to have CLARITY and TRUST in the reality of what is actually happening here and what they are telling us.
So, by reading today’s article on the surface it seems that Iraq would be doing away with all paper currency as they said “switch to 100% Electronic collection by mid-2024”. But I assure you this is NOT the case. The key words are “Electronic Collection”. This means that their plan right now is to have the market place 100% reverted to the capability of point of sale (POS) and the ability to take debit cards for any payments to the Government of Iraq. This is where much of the corruption stems from in the parallel market. So to curb the parallel market (black market) corruption, this is yet another tool to bring the parallel market for the dollar even with the CBI official rate. Just so you know, it does NOT say they are doing way with cash altogether, as the Dr. Shabibi plan that I know and have been following very diligently does not indicate this either. I trust in his plan. At some point you have to put your stake in the ground somewhere in this investment and TRUST. Yes, simply TRUST what you already confirmed and know at the FACTS and TRUTH.
The financial advisor to the Prime Minister, Mazhar Muhammad Salih goes on to say and I quote – “but preparing revenue institutions for electronic payment takes some time.” Which confirms what I just said in that this is the electronic POS project that Iraq has long been struggling to implement. I can recall this as far back even before I got into this investment that this effort was a priority. I have been studying the dinar since 2006. So go figure.
Muhammad Salihjust told us that this project will be 100% completed by mid year 2024. We all therefore should be jumping up and down with crazy JOY as this will be a huge milestone in the banking reform process. Let’s hope they can do it. Converting government transactions to electronic payments both from the GOI and to the GOI amounts to billions of dollars. You think this can help in fighting corruption?
The electronic banking project is also pivotal in getting the Project to Delete the Zerosstarted, which we all know is the next step. We all know it has been postponed so many times over the decades already. If you notice the CBI seems to jump the gun sometimes and makes announcement prematurely, then does not carry out with what they said they would do at the time they said they would. There are delays and issues hinder the speedy progress of these events. Heck, altogether it will be almost 17 years to finally see some notable progress in this area.
I have been telling you about how important electronic payments is for so long. I hope you now get it. But Iraq has been struggling to get the electronic payment process completed and now they are telling us it will be completed by mid-year 2024. WOW! WOW! WOW! 😊
So, tell me why should you be disappointed then? I am jumping with JOY! 😊 😊 😊 This is a huge accomplishment and milestone, but if they can pull it off by mid0year. Remember the premature announcements as Iraq definitely does not work at the pace of Speedy Gonzales.
Then to follow up with this news, out comes another article to satisfy the citizens questions that, cash will still be in circulation. But it will be a much smaller monetary mass of physical notes. It will be newer notes of different denominations.
As Mnt Goat blog followers, all know it too as the 3 zeros notes will be collected, thus brings us to the Project to Delete the Zeros once again. Remember the CBI just can’t ignore this large amount of a monetary mass of physical currency now in circulation. You must therefore first implement the electronic systems, then when ready, convert it to electronic digits then you have to collect it. Get it? To collect it you must entice the citizens somehow to turn in their horded stashes to the banks. But how do you do this ….?
The next part of the plan is to conduct the Project to Delete the Zeros. Get it? It seems to me now they might be planning to do this next step either before or around mid-year 2024. I am sure when we get closer my CBI contact will let me know.
Folks it all ties together so nicely if you only will read the articles and remember what you read in my previous Newsletters. My Newsletters are not meant to be read in a vacuum by itself. Get it? They are all connected in one long stream of news to inform us of the developments in this ongoing Iraqi dinar saga.
I quote from another article – “Economic affairs specialists criticized the lack of infrastructure for electronic payment services in many departments and institutions, and confirmed that most citizens still prefer cash transactions over electronic transactions.
Economist Manaf Al-Sayegh told Al-Sabah also told us and I quote – “ Electronic payment is a globally recognized technology that can be used without the need to carry paper money or coins, as the world today no longer needs paper payment or the use of coins, so we find it approved through the use mechanism. A credit card that enables its holder to pay anywhere.”
Don’t understand yet? Then let me explain even more.
After decades of war, displacement, and sanctions (1991-2003, Iraq remained cut off from the global financial system.
Iraqis were cut off from the digitized payment systems that most businesses around the world take for granted. Less than a fifth of the population have a bank account and global payment service providers are not available in the county. Even electricity to run the machines for POS was not available 24/7. Citizens did not trust the crooked banks. Can you blame them? Large stashed of notes were hidden at home instead of using the banks. Can you blame them?
Wars, displacement, and sanctions have left Iraq’s economy underdeveloped and almost solely dependent on oil exports. But things have changed in Iraq and come this mid-year 2024 we are about to see the results of many years or reforms in an explosion of progress in many areas of development in Iraq. You see, all these reforms we all have been reading about in the many articles are all good but unless Iraq actually sees any impact they are meaningless. Oh…but we are about to see the impact and it is going to be HUGE $$$ 😊.
Let me add, does the U.S. still have paper notes and coins? The U.S. is one of the world’s leaders in the use of electric banking transactions. The CBI just told us last July they will not be going entirely electronic when they claimed that the project to delete the zeros still exist. Here is the past article below from that time period. So, was the CBI governor Ali Alaq lying to us?
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