In Iraq “Iraq’s Federal Board of Supreme Audit exposes US $600 million corruption scandal involving “ghost travelers” Iraq allowed people to get US cash when they said they were going to travel abroad. People were getting cash and were not traveling at all…and the money went to the parallel markets…. The US claims this is “corruption” This is more proof positive they need to change that dinar rate as soon as possible.
There is some anticipation from one of my redemption center contacts who is expecting to work this weekend…. I take that as positive...
...a little more news out of Vietnam...they continue to crackdown on corruption: “Vietnam jails soft drink tycoon for eight years in $40M fraud case” ...I am leaning toward they are cleaning the system to change the value of the VND.
The next big step in this is we want to see when Iraq will be amending their budget...They can amend it before or after the rate changes...
This weekend coming up would be the historical anniversary date of when Kuwait reinstated their currency - March 24, 1991
Iraq technically does not need to amend the budget if they're not changing their rate.
The budget already covers their operating expenses. But they would need surplus funds to cover the reforms. The reforms are contingent upon the rate changing. They can't bring these reform package forward if the rate does not change. The only reason they're amending the budget is because the rate is changing...The step of amending the budget can happen either before or after the rate changes ... They will probably announce Thursday or Friday as to when they plan to amend the budget, which they'll probably do around this weekend...
[Response to Guru Jeff's budget/ exchange rate posts 3-19-2024 below]
They are going to amend the budget with or without a rate change....Does it make sense for you to release the budget before they increase the exchange rate because then you have to turn around and redo the budget and make all the changes to the budget using the new exchange rate.
So no, it doesn't make sense to release the budget before you change the exchange rate. You would change the exchange rate then go through and amend all of your budget because the money you've allocated obviously has changed...
The suspension of the funds has to do with corruption. The reforms can be activated without changing the rate. They're going to reallocate revenue from oil to help fund all these reforms..
Stablecoin adoption is rapidly increasing, with research firm rwa.xyz reporting a 15% increase in the number of addresses holding both dollar and crypto-pegged stablecoins in 2024. Chainalysis also found that stablecoins are becoming more prominent in overall on-chain transaction activity, with increasing importance in various nations and regions. Stablecoins, cryptocurrencies with values pegged to an external reference like the U.S. dollar, have represented over half of all on-chain transaction volume, highlighting their growing importance in the cryptocurrency market.
The adoption of stablecoins is being propelled by their ability to provide anyone with an internet connection access to the U.S. dollar, unlocking new pathways for financial inclusion. The U.S. leads in stablecoin purchases, but global demand is high, with over $40 billion purchased in March alone across diverse nations and regions. Stablecoins are serving as a critical bridge between traditional finance and cryptocurrency, with the stablecoin market currently valued at around $150 billion and expected to exceed $2.8 trillion by 2028.
The stablecoin market has become more competitive, with Ripple announcing plans to launch a USD-backed stablecoin on the XRP Ledger. This move is expected to generate more use cases, liquidity, and opportunities for developers, as well as provide additional crypto liquidity to service cross-border payments demand. Stablecoins like PYUSD and Tether are being used for cross-border payments, remittances, and facilitating transactions in regions such as Latin America and the Caribbean, promoting dollar dominance and increasing access to U.S. dollars.
The growing demand for stablecoins has prompted lawmakers to focus on stablecoin legislation, with proposed regulatory frameworks aimed at maintaining the U.S. dollar’s dominance, promoting responsible innovation, protecting consumers, and combating money laundering and illicit finance. Legislation such as The Lummis-Gillibrand Payment Stablecoin Act seeks to establish a regulatory framework for payment stablecoins, requiring issuers to maintain one-to-one reserves and prohibiting unbacked, algorithmic stablecoins. This legislation, if passed, could accelerate institutional blockchain innovation and drive stablecoin adoption.
Despite the potential impact of stablecoin legislation on adoption, experts believe that stablecoins will continue to rise as a global asset regardless of regulations. Stablecoins provide a crucial solution for individuals in countries facing currency volatility, offering stability and facilitating commerce. While regulations may provide more comfort for institutions using stablecoins and potentially bring banks into the stablecoin market, stablecoins have already surpassed all other types of cryptocurrencies in usage and represent over half of all transaction volume in recent months.
Overall, the adoption of stablecoins is on the rise globally, driven by their ability to provide access to the U.S. dollar, promote financial inclusion, and facilitate cross-border payments. Stablecoins are becoming increasingly important in the cryptocurrency market, with their market value expected to grow significantly in the coming years. While stablecoin legislation may influence adoption in certain regions, experts believe that stablecoins will continue to play a crucial role in the cryptocurrency ecosystem and serve as a bridge between traditional finance and digital assets.
Prime Minister’s Advisor: We will see the dollar fall on the black market soon
Fadi Al-Shammari, the Prime Minister’s political advisor, confirmed on Saturday that demand for the official dollar has increased, despite his expectation that it will decrease on the black market in the near future.
“The classification of financial institutions in Iraq according to World Bank reports is positive, and the Central Bank’s classification is A++ and exceeds the Emirati classification,” Al-Shammari stated in a press release that was received by
He continued, “The government has taken positive measures in this regard on the basis of Iraq’s desire to join the international banking system.”
He confirmed, noting that “the demand for the official dollar has increased, and we will witness its decline on the black market in the coming period,” and that “the increasing percentage of merchants joining the platform rose from 28% to 78%.”
He brought up that Iraq concurred “with the US Depository on a guide that incorporates an outsider addressed by a global counseling organization to review the strategies of the endorsed banks, and its choices are restricting on the US Depository.”/
Article: "Prime Minister’s Advisor: We will see the dollar fall on the black market soon". Quote: "The political advisor to the Prime Minister, Fadi Al-Shammari...pointed out that Iraq agreed “with the US Treasury on a road map that includes a third party represented by an international consulting company to audit the procedures of the sanctioned banks, and its decisions are binding on the US Treasury.”
Article: "CEO of JPMorgan Chase expresses Support for Iraq” Quote: "Prime Minister Mohammed Shia al-Sudani received Mr. Jamie Dimon, the CEO of JPMorgan Chase, and his accompanying delegation on Wednesday, during his visit to the Washington DC.
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Article: "Vietnam central bank says it’s ready to intervene in forex market; dong now at record low against dollar"
Quote: "Intervention is possible even today, if needed, State Bank of Vietnam Deputy Governor Dao Minh Tu said at a briefing in Hanoi on Friday. The dong dropped to a record-low 25,463 per dollar on the day."
Article: "Al-Sudani stresses the necessity of dialogue with the US Treasury, the Federal Bank, and the International Monetary Fund"
Quote: "Al-Sudani stressed that it is not possible to work in any development sector without reform steps for the banking sector, stressing the need to continue dialogue with the US Treasury, the US Federal Reserve, the International Monetary Fund, and other international financial institutions."