Coffee with MarkZ. 04/02/2024

Parliamentary Finance reveals to “Information” that there are leaks regarding the delay in the decision to raise the price of improved gasoline, 2 APRIL

Parliamentary Finance reveals to “Information” that there are leaks regarding the delay in the decision to raise the price of improved gasoline

The decision to raise the price of upgraded gasoline is being implemented slowly, according to leaks from within the administration, which were disclosed by a source in the Parliamentary Finance Committee this morning, Monday.

“Leaks obtained by the Parliamentary Finance Committee indicate that the Sudanese government decided to wait to implement its decision regarding raising the price of improved gasoline,” said the source, who wished to remain anonymous.

He said, “He believes that the decision to wait came after pressure from various segments of society for fear of its repercussions on the market situation and the economic situation of the citizen.”

Prior to May 1, 2024, the Council of Ministers made a number of resolutions raising the price of premium gasoline to 1,250 dinars per liter and enhanced gasoline to 850 dinars per liter.

"RV UPDATE" BY SANDY INGRAM., 9 APRIL

 Sandy Ingram

   Iraq's prime minister will be in Washington, DC in less than 8 days to meet with President Biden.

 The real effective exchange rate (REER) is a measure of the relative strength of a country's currency in relation to an index or basket of other major currencies.  The REER is used to judge whether the country's currency is undervalued or overvalued or, ideally, fairly valued... 

Nominal Effective Exchange Rate (NEER)... It is an index of the weighted average of bilateral exchange rates of home currency with respect to a basket of currencies of trading partners.  An increase in NEER indicates an appreciation of the local currency against the weighted basket of currencies of its trading partners.

 Iraq's top five export trading partners are India, with $38.8 billion, China with $34 billion, the United States with $10.3 billion, South Korea with 8.21 billion, and Greece with $6.27 billion.   Based on Iraq's export partners the Iraqi dinar definitely could be worth more.  However everything is speculative until the US and Iraq give the green light to float, revalue, reinstate or increase the value of the Iraqi dinar...This could happen overnight but it is unlikely.  

https://dinarevaluation.blogspot.com/2024/04/rv-update-by-sandy-ingram-8-april_01833617722.html

"RV UPDATE" BY PIMPY, 2 APRIL

 Pimpy 

 Community Comment:   "It's the exchange rate.  I don't know where they get taking zeros off the bills."   Every study out there that talks about the deletion of the zeros tells you it comes off the bank notes...If they delete the zeros, your 25,000 becomes a 25 dinar. They're going to take the zeros off [the rate as well].  .00076 becomes .76...still the same value.  You have a smaller denominated note but your purchasing power stays the same.

  We're dealing with two different things... We have what's known as the nominal value, which is the numbers on the bank notes and then we have an exchange rate value.  That's two different things.

This is [from] the World Bank data bank - Real Effective Exchange Rate is the nominal effective exchange rate in measure of the value of a currency against a weighted average of several foreign currencies divided by a price denominator or index of costs...   Iraq already reports a real effective exchange rate.  They report it all the time...It's reported to the IMF regularly...

The IMF, WTO, World Bank and whoever don't have a say whether or not Iraq LOPS off their zeros.  That is decided by the Central Bank of Iraq as well as the government of Iraq.   You're confusing the 'lopping of the zeros', 'the deletion of the zeros', 'the reducing of the zeros', 'the removing of the zeros', as somehow a loss in value.  It is a neutral event.  It doesn't affect outside investment into the Iraqi dinar.  I told you when you remove the zeros all you're doing is lowing the nominal value of the currency.  Has nothing to do Iraq's exchange rate versus other wold currencies - noting whatsoever.  

https://dinarevaluation.blogspot.com/2024/03/rv-update-by-pimpy-31-march.html

Quick Update

Erdogan admits losing local elections to opposition, 2 APRIL

Erdogan admits losing local elections to opposition

2024-03-31 at 17:15Font

Shafaq News / The Turkish opposition announced on Sunday a “big victory” in municipal elections across the country, preserving Istanbul and Ankara, at the expense of the ruling Justice and Development Party led by President Recep Tayyip Erdogan.

“The local elections are not the end for us, but it is a turning point,” Erdogan said in a speech, “we will hold ourselves accountable after the results of the local elections, and we will study the messages issued by the people,” referring to “the end of the elections that drained the economy.”

Turkey’s state-run Anadolu news agency published official results on Sunday after sorting some ballot boxes, showing the progress of the opposition Republican People’s Party in major cities such as Izmir, Bursa, Antalya and Adana.

Istanbul Mayor Ekrem Imamoglu, who belongs to the Republican People’s Party, has announced that he has retained his position since 2019.

“His party ranked first in Istanbul by more than a million votes,” Imamoglu told the press, Sunday evening, continuing: “We won the election.”

In Ankara, the mayor, who also belongs to the Republican People’s Party, Mansour Yavash, announced that he would retain his position while the counting of votes was still ongoing.

Besides Izmir, the country’s third city and the stronghold of the Republican People’s Party, and Antalya where opposition supporters began celebrating victory on the streets, the results suggest the CHP is on track for a victory in Anatolia.

The party leads the results of the partial counting in regional capitals long held by the AKP.

In contrast, the ruling Justice and Development Party (AKP) candidates are advancing in several in the cities of Greater Anatolia (Konya, Kayseriya, Land of Rum) and the Black Sea (Riza, Trabzon), while pro-Kurdish HDP candidates are expected to win in major Kurdish-majority southeastern cities, most notably Diyarbakir.

Uzgor Ozil, head of the Republican People’s Party, Turkey’s largest opposition formation, also said that “voters chose to change Turkey’s face” after 22 years of dominance of the ruling Justice and Development Party, adding that voters “wanted to open the door to a new political climate in our country.”

https://www.shafaq.com/ar/سیاسة/ردوغان-يقر-بخسارة-الانتخابات-المحلية-لصالح-المعارضة

"RV UPDATE" BY FRANK26, 2 APRIL

 Frank26 

 Article: "Al-Shammari reveals the most prominent files of Sudanese’s visit to Washington and the government’s ambition regarding the dollar"   THE FINANCIAL FILES WILL REPLACE THE PROGRAM RATE  Quote:  "The government is planning to reduce the dollar to the official rate."  This is certain, but it takes time.

  The next thing I want to see [After the restrictions are lifted on the one main Iraqi bank] is the budget being amended and released because then after that it's a domino effect.  Everything else will follow it...

The CBI announcement - We believe it's about the currency.  We believe it's about the auctions.  We believe it's about a change in the auctions, a metamorphosis of the auctions which is exactly what the US Treasury wanted in order to have security and stability in the bank, which was exactly what was needed in order to bring forth a new exchange rate for their currency.