Jon Dowling & Gregory Mannarino Latest Financial Updates & Financial Fre...

"RV UPDATE" BY MARKZ, 27 MARCH

 MarkZ   

[via PDK]   “Customers at the Central Bank of Iraq, which says many foreign trade transactions now go through its electronic platform” This tells me that some of the Iraqi sanctions may have been lifted as we speak. The key is when will we see the rate ? I don’t know what to expect yet on that front. There is a lot of positive chatter that it could be imminent.  I might actually purchase some champagne.

 We definitely have Iraqi representatives/Ministers  inside the US right now.   Some are in DC and there are a couple in New York - for UN reasons…which I think is interesting...I don’t expect Sudani to visit DC just yet.  I believe his ministers are taking care of it. I believe Sudani would want to be in his own country for the revaluation...To me things are shaping up just as I expected they would at the end...Very positive stuff happening right now.

Preserving foreign reserves.. An Iraqi academic study answers the question “The stability of the Iraqi dinar against the dollar” , 27 MARCH

  Preserving foreign reserves.. An Iraqi academic study answers the question “The stability of the Iraqi dinar against the dollar”

3/25/2024

At a time when the price of the dollar is still fluctuating between high and low, forcing the market to live in a state of some kind of confusion, because the hard currency constitutes an important tool in Iraqi trade, as it is a trade that depends on imports for most of the products in the local market, On Monday, a researcher whose master’s thesis was discussed at the College of Administration and Economics at Tikrit University put forward some possible solutions for controlling the price of the dollar, as his thesis came about the role of the central bank and the currency selling window, their role in stabilizing the dinar against the dollar, and the importance of maintaining foreign currency reserves. .

Researcher Ahmed Abdullah Akil told Shafaq News Agency, “The study aims to know and measure the extent of the impact of some of the central bank’s tools in achieving stability in the exchange rate of the Iraqi dinar against the US dollar during the period (2004 - 2022) in order to know the places of imbalance and negatives that hinder achieving Stability of the value of the local currency according to what is appropriate to the nature of the Iraqi economy, as the goal of maintaining the value of the local currency was the primary goal of the bank with the aim of maintaining the price level, which is essentially linked to the exchange rate of the local dinar against the US dollar.

He added, "The study variables were analyzed and measured according to the (Eviews 13) program, and it was found that there is a positive and significant relationship between some of the central bank's tools as independent variables and the official and parallel exchange rates as dependent variables in the short term, with some negative and positive correlations to some variables in the long term, as It was noted that some tools were ineffective in influencing the currency exchange rate, such as the legal reserve, the rediscount rate, and open market operations, but the effect of some of them was limited to inflation.

He pointed out that "while the effect of the interest rate and the window was positive on the value of the local currency as a result of its reduction in the nominal exchange rate, this indicates the ability of the central bank to influence the stability of the exchange rate of the local currency against the foreign currency, especially through the currency selling window throughout the study period, except for some In the last years of the study period, the nominal exchange rate rose again, and so did the parallel market, by decision of the monetary authority represented by the Central Bank, for the purpose of confronting public expenditures and confronting the repercussions of the global health crisis related to the Corona epidemic and the accompanying decline in oil prices, which is the main source of the dollar. America because of the rentier nature of the Iraqi economy.”

He continued: “It was also noted that the gap between the official exchange rate and its counterpart in the parallel market increased due to the increased demand for foreign currency, and the study presented a number of recommendations, the most important of which is continuing the operation of the window without excessive use of foreign reserves and diversifying the sources of obtaining foreign currency by pushing the wheel of development and activating the real sector.” Industry and agriculture, in order to achieve a reduction in imports, which reduces the depletion of the currency, in addition to tightening control measures to prevent the smuggling of foreign currency and actions that affect the supply of it, which contributes to the stability of the local currency exchange rate.”

He stressed that "continuing to operate the currency selling window without compromising on foreign reserves, and diversifying the sources of obtaining foreign currency so that the exchange rate does not remain hostage to oil prices as it is almost the only source of obtaining foreign currency."

He stated that "advancing the wheel of development in Iraq, activating the real sector, revitalizing industry and agriculture to reduce imports, relieving pressure on foreign dollar reserves, distancing the Central Bank from political pressures, granting it the necessary powers to deal with fluctuations in the economic situation, including exchange rate fluctuations, and tightening supervisory measures to prevent foreign currency smuggling." abroad so as not to affect the supply of foreign currency, and thus the value of the local currency.”   LINK

"RV UPDATE" BY PAULETTE, 27 MARCH

 Paulette 

  Comment:  "Biden has nothing to do with this but the feet dragging in Iraq has become the constant..."    The "Biden Regime" has everything to do with this...Just look at the currency sales numbers and you should see why the "Biden Regime" does not want change.  You still have the Coalition Provisional Authority functioning in Iraq led by the US...We know from articles last fall that US Receivership is still in place and UN1483 status is unknown... Saleh recently even stated in an interview that even he did not know the status of 1483...not to mention the OFAC sanctions...Yes...the "Biden Regime" has everything to do with this...

While Iraq appears to be on the way to a full RI, I believe there will be an interim step very soon.  If they make the move I anticipate the MCP will be quickly eliminated and they can proceed to a full RI.  A RI is full Article 8 compliance and a return to the rate that reflects the True Value.   In 2009, the MOP/MOF stated move to 1.14-1.17USD/IQD and monitor for inflation up to 3 years and then move the rate to reflect the True Value of 3.208USD/IQD.  This was the plan of Dr S and it appears they are back on track following that plan.

🔥 Iraqi Dinar 🔥 This is so Good 🔥 Guru Updates News Currency Value Excha...

Deputy: Al-Sudani will raise the issue of lifting sanctions against Iraqi banks in Washington , 27 MARCH

Deputy: Al-Sudani will raise the issue of lifting sanctions against Iraqi banks in Washington

3/26/2024   Baghdad

 The representative of the Coordination Framework, Arif Al-Hamami, confirmed that Prime Minister Muhammad Shiaa Al-Sudani sought to negotiate directly with American officials to withdraw their forces from Iraq and end the tasks of the international coalition.

 Al-Hamami said in an interview followed by Mawazine News: “Al-Sudani will emphasize the security partnership and support of the Iraqi forces in the field of training and armament, and work to lift the American veto on Iraq’s contract to purchase advanced air defense systems,” indicating the existence of “an undeclared American veto so that The Iraqi sky is under American control and it penetrates it whenever it wants without any deterrent .”

Al-Hamami added, “Al-Sudani’s discussions in the White House will focus on the financial and economic file, especially related to the American sanctions on some Iraqi banks, and the impact of that on Iraq, and seeking to lift those sanctions and working to find a mechanism to pay Iraq’s foreign debts.”

The visit to Washington is considered a protocol procedure used by successive Iraqi government heads after the US invasion of Iraq in 2003, and it usually occurs in the first months of assuming office.

However, Al-Sudani’s visit, in his capacity as head of a government emerging from a political alliance (the Coordination Framework), which declared on more than one occasion his opposition to the United States and his work to remove its military presence from the country, may take it out of its usual context this time, especially since the files that Al-Sudani is carrying to Washington will not Be acceptable to America. LINK

"RV UPDATE" BY MILITIAMAN, 27 MARCH

  Militia Man  

Having this LOP information of 1310 is ridiculous, it's reckless...They said they're going to have a lofty exchange rate to expose.  If that's the case, lets see what they have and how they play it out...I think it's going to be phenomenal.  

How are they going to attract foreign investment?    They're going to open their borders with an International currency ... and they're going to rock and roll.  The signs are everywhere.  AlSudani recently said he was going to make a change to the dinar to 1.32 dinars to the dollar, which is about $0.76.  But that doesn't include adding the Real Effective Exchange Rate.

  The private sector is going to be the fuel to what they consider is the most important project in the world (Development Road project).  Their words not mine.  Article quote: "The initial designs for the Development Road Project have reached advanced stages... The development road is a vital project, one of the most important projects in the world..."