"RV UPDATE" BY KAPERONI, 27 MAY

 Kaperoni 

 Question: "They have a very largebudget ,without an increase in rate how do they meet the projects that is lined up?"  External expenses are paid in dollars since their primary revenue is dollars. Dinar is used to pay salaries, etc. in country.

 Community Comment: "Hopefully in the next 5 yrs we will see an appreciation of the currency  price, based on the last year of progress."  I agree!  Iraq has an excellent opportunity now to diversify their economy and develop  the banking system.  

 Much of the float articles that we have seen have concerns about speculators that is because they are referencing dealers speculating within the country.   That will not happen.

 All of these changes that they're talking about pertain to monetary policy. They have nothing to do with the exchange rate. Whether or not the exchange rate goes up or not is directly related to the economic success thereafter.

By the end of the year when the Central Bank of Iraq ends the currency auction, only transfers  amongst established Iraqi banks and regional or International banks will occur.  In other words, the float of the dinar and  transfer of funds will be institutional.

 What this means for us is the future of the dinar exchange rate is directly tied to the  capital flowing through the CBI, economic growth, and success of Iraq. As Iraq prospers, so will the dinar!  Though we may not see  the dinar exchange rate improve initially. This is a significant change in monetary policy for the Central Bank of Iraq. Some 20  years in the waiting.  

https://dinarevaluation.blogspot.com/2024/05/rv-update-by-kaperoni-25-may.html

https://dinarevaluation.blogspot.com/2024/05/rv-update-by-kaperoni-26-may.html

Population Collapse Is ‘Biggest Issue’ Threatening Economy | Darrell Bri...

Al-Muttalabi: The failure to legislate the capital law is the reason for the overlapping of powers, 27 MAY

 Al-Muttalabi: The failure to legislate the capital law is the reason for the overlapping of powers

aghdad Commonplace Chamber part, Saad Al-Muttalabi, trusted that the inability to administer the Capital Regulation is the justification for the cross-over of abilities between  Baghdad Governorate and different gatherings.

Al-Muttalabi told , “This cross-over in powers impedes the advancement of business in the capital’s districts, showing that there is a genuine move by Baghdad Governorate to offer types of assistance to certain areas, yet it is as yet an unassuming move because of the cross-over of abilities and other pastoral obligations, which places the resident in a condition of pain.” Discomfort”.

He added, “Finishing the issue of covering powers between the governorate, services, and different gatherings requires enacting the Capital Regulation, which has been in the passageways of the Place of Agents beginning around 2009.”

He focused on that “assuming it had been enacted, it would have wiped out numerous obstructions, dispensed with covering powers, and given each party its liabilities that it completes in  Baghdad.”

"RV UPDATE" BY BGG, 27 MAY

 BGG   

[Reply to Fnu Lnu Redemption Center/DeLaRue post on 5-8-2024]

 While the first half of this post may well be true (likely as not), I beg to differ on the last half.   It’s COMPLETELY INACCURATE...There is NO SUCH THING AS AN AUTOMATED AUTHENTICATION PROTOCOL FOR THE IQD (per the De La Rue engineers – PERIOD). They don’t own that division anymore. It’s a group well known in the US as Cash Systems...

Iraq is worth far more than 16 trillion dollars and there is far less than 80 trillion in circulation...To espouse such inciting commentary [against this]...negates everything Dr. Shabibi has stated and everything the CBI and GOI have stated. The Dinar was worth $3.22 pre-sanctions and at that time all they had was oil at $32 dollars a barrel...

Fnu Lnu 

   Article quote: "Al-Kadhimi indicated that increasing the budget’s overall amount, from 199 trillion Iraqi dinars (nearly $152 billion) to 228 trillion Iraqi dinars (approximately $174.04 billion), resulted in a rise in the deficit, revealing that the budget is still being discussed in the Council of Ministers and would likely be presented to the Iraqi Parliament next month."   It would logically follow that a revaluation would be likely before next month's USA confab.

 [Response to Pimpy's HCL non-revenue sharing post from 3-31-2024 below]  

The notion of revenue-sharing is nothing new in the Middle East.  Bruni and Kuwait both do it...Revenue Watch Middle East Director Yahia Said recently returned from several months in Iraq working on the International Compact with the UN...This USIPeace Briefing summarizes the discussion.  Many Iraqi citizens look to the law for what it can contribute to reconciliation, security, and welfare. The three parts of the agreement will deal with the issues of 1) revenue sharing; 2) restructuring of the ministry of oil; and 3) establishing the Iraqi National Oil Company (INOC). 

  It is quite clear that the HCL has intentions to codify the issue of welfare (not for government) and the number 1 issue is REVENUE SHARING.  To be more specific; Section 1314 of the FY2007 Supplemental Appropriations Act [P.L.110-28] specifically identified the enactment and implementation of legislation  “to ensure the equitabledistribution of hydrocarbon resources of the people of Iraq without regard to the sect or ethnicity of recipients” and “to ensure that the energy resources of Iraq benefit Sunni Arabs, Shia Arabs, Kurds, and other Iraqi citizens in an equitable manner” as benchmarks . 

https://dinarevaluation.blogspot.com/2024/04/rv-update-by-fnu-lnu-2-april.html

Iraqi dinar | Iraqi Dinar FInancial News | Iraqi Dinar News Today 2024 ...

The New Refineries Stop Iraq's Import Of Diesel.. Has The Purchase Of Gasoline Increased In Return?, 27 MAY

 The New Refineries Stop Iraq's Import Of Diesel.. Has The Purchase Of Gasoline Increased In Return?

 Economy ​ 05-17-2024, 19:00 |Baghdad today - follow-up  Commercial data revealed that   Iraq stopped importing “diesel” or “kerosene” according to long-term contracts, due to achieving sufficiency as a result of the development of refineries.

 However, the data indicated an increase in the import of gasoline according to futures contracts for this year compared to last year, in contrast to the Ministry’s data.

Oil imports decreased by 8 million barrels per day after the opening of the Karbala refinery, it says.

 According to a report published by Bloomberg and followed by “Baghdad Today,”

Iraq suspended diesel import contracts after the modernization of some refineries contributed to enhancing local production, which put the country on the path to achieving self-sufficiency in fuel, as

Iraq ended purchase deals at the end of last year and did not buy fuel. Under long-term contracts so far in 2024, according to traders participating in the market.

 Market data provider Vortexa indicated that the country had purchased three shipments of diesel this year, but traders said they were spot shipments.

 Fixed Term Deals

However, Iraq is still buying gasoline under fixed-term deals, according to traders who requested anonymity because the information is not public, according to Bloomberg.

The country aims to stop imports of fuel used to operate cars as soon as this year.

 Hamed Younis, Undersecretary of the Ministry of Oil for Refining Affairs, said last February that the country is working to renovate the refineries that were damaged during two decades of war, with the North Refinery restarting in 2024, with other refineries to follow.

 Benzene

Iraq imported 2.83 million barrels of diesel last year, or about 7,800 barrels per day, according to Vortexa.

 It also held a tender to purchase about 55,000 barrels per day of gasoline on average until the end of this year, according to traders, and

 this represents an increase from about 43,000 barrels. of seaborne gasoline was saved daily on average last year, according to Vortexa.

Baghdad buys gasoline from the trading units of Saudi Aramco, Reliance Industries, and Omani state energy company OQ, among other companies, according to traders and Vortexa ship-tracking data.

Traders said that these companies supply under long-term contracts, which Iraq continued this year.

  https://baghdadtoday.news/249593-المصافي-الجديدة-توقف-استيراد-العراق-للديزل.-هل-ارتفع-شراء-البنزين-بالمقابل؟.html    

"RV UPDATE" BY PIMPY, 27 MAY

 Pimpy 

 Iraq was already a member of the World Trade Organization.  They are going through the ascension process for a second time.  That's because all the rules, regulations, understandings and business practices...changed once the fall of Saddam Hussein.  Now we have to make sure all their practices, rules and regulations regarding trade line up once again with the World Trade Organization.  Iraq has been a member of the World Trade Organization since 2004.  This is their second time throughout the ascension process...

There's this misconception that the World Bank, IMF and the BIS get to tell countries what to do.  They don't...They facilitate.  They make recommendations but they don't control a country's bank...

Another budget is getting ready to come and go and there is no talk of the rate change.  Isn't that what they told you?  It would be in the new budget because there was no way for them to do large projects, there was no way for them to move forward without an exchange rate change...Why so secret now?  Is this one of those things they're trying to keep from the people?  

They didn't keep it from the people last time [they increased the value] and there's no mention of it this time...Keep your fingers crossed, it hasn't passed yet so maybe they'll change it between now and the time they pass it...You guys know what I think.

 Floating the currency means the value is determined by the market, so if people for whatever reason want to start investing in the Iraqi dinar and the start buying up the Iraqi dinar that means the demand for it is there, think supply and demand. 

 Since they have a liquidity issue, there's not going to have a lot of Iraqi dinar out there and if that's the case then they don't have the supply to feed the demand...But we'll be more than happy to sell our Iraqi dinar back to them if they get the exchange rate up around a quarter or more. I know I would.

https://dinarevaluation.blogspot.com/2024/05/rv-update-by-pimpy-24-may.html