DINAR REVALUATION

Monday, May 27, 2024

"RV UPDATE" BY FRANK26, 28 MAY

Frank26

Question: "What do you think the dinar will be floated at the start?

IMO at the start of the float 1 to 1 you'll never see it. So just looking at 1320 causes me to think maybe they'll start at about $1.30 or $1.50. They could start even higher.

When you see things that you don't want to see it's not like it's a delay. It's the Middle East...it's a different world...It's rather brutal...It's doggy eat dog...

The new currency that's coming out has more safety features on it than any other currency on this planet. More than the American dollar, because it's a state-or-the-art technology of how they produced it with the monetary reform.

Question: "What is the price of a bottle of Cokein Iraq? " Way too much and that's why the prices are being adjusted and a new exchange rate will come out to match the new or lower denominations.

The problem is you don't see any of these contracts open do you?

...No, all of these contracts are sitting there waiting and waiting for what? For Sudani to pull the trigger. What is the trigger?

The lynchpin that will activate the contract and readjust the value according to the exchange rate of the Iraqi dinar, where the contract was signed in the Iraqi dinar value but to match their [contract holder's] currency. Brilliant... These signed guaranteed contracts will adjust to the calculation of the IQD value...These foreign currencies will not be calculated into the new exchange rate until the new Iraqi dinar exchange rate hits Forex...

A second set of books is a normal business action. Many companies, many firms for financial projections, for balances, for audit purposes, for changes whatever it may be, run a second set of books. The second set of books is simple business practice. It's not illegal unless you're doing it illegally under the table...This second set of books is not hidden...they [Iraq] expose it [their second second set of books] to the right people, IMF, World Bank, US Treasury...

https://dinarevaluation.blogspot.com/2024/05/rv-update-by-frank26-25-may.htm

🔥 Iraqi Dinar 🔥 CBI Executing New Rates 🔥 News Guru Intel Update Value I...

Sudanese Advisor: Oil Prices Are Still Higher Than Their Budget Estimates And We Are Trying To Keep Spending To The Minimum, 27 MAY

Sudanese Advisor: Oil Prices Are Still Higher Than Their Budget Estimates And We Are Trying To Keep Spending To The Minimum

Time: 05/27/2024 Read: 1,404 times {Economic: Al-Furat News} A financial advisor to Prime Minister Muhammad Shiaa Al-Sudani revealed features of the financial budget schedules for the year 2024.

Mazhar Muhammad Saleh told {Al-Furat News} agency, “The announcement of the variables in the financial tables for the past year 2024 was undoubtedly in conformity with the constants adopted by Law No. 13 of 2023, the Federal (Tripartite) General Budget Law, specifically in the axis of the hypothetical deficit amounting to approximately 64 trillion dinars, and did not stray far.” Estimates of the budget tables in the planned deficit paragraph, as stated in the law above.”

He added, "Despite the above, there are important trends in the management of the public budget, whether on the side of public expenditures, in which the spending ceiling reached 211 trillion dinars, or the revenues and deficit itself, and they are summarized as follows:

1- Oil prices are still higher than their estimates in the tripartite budget of $70 per barrel, with a percentage change." Positively exceeding 16% above the approved price above, as we approach the middle of the fiscal year, while maintaining the export rates approved in the budget and managing oil production efficiently and in accordance with international agreements with OPEC regarding the issue of controlling production quotas.

2- There is high discipline in Maximizing non-oil revenues, especially tax and customs revenues, specifically after adopting automation, modern methods, and information technology in tax and customs assessment, estimation, and collection.

3- Striving to impose discipline on operational expenditures and keeping spending on them within acceptable minimum levels.

4- Ensuring to raise the efficiency of investment spending and operating all approved projects. This is to ensure a high growth rate in the gross domestic product, at a rate more than twice the population growth rate, by launching the movement of new projects without delay or stop.

Saleh noted that “the pattern of public spending, according to the schedules announced, is characterized by accuracy, objectivity, and self-savings, which contributes to reducing the resort to financing the actual deficit, even when needed, through internal borrowing and within limits that ultimately do not exceed the accepted international standard percentage for financing the deficit, which amounts to 3%.” “of the country’s total gross domestic product or slightly exceeding it.”

He pointed out "not to forget that the efficiency of annual spending in the operational and investment aspects is an important issue in determining the total annual public spending as planned." LINK

"RV UPDATE" BY MARKZ, 27 MAY

MarkZ

[via PDK]

It certainly is a “push” ...They are talking about it openly in the Iraqi news. …They are blatant on this one “The impending rate change”. They are telling us what they are doing... Articles in Iraq say clearly that the dinar is going to be worth more than the US dollar.

[via PDK]

did hear some interesting things from military contacts. One in particular kinda surprised me overnight...don’t panic because they do their best to cloud the timing...He said “Do not worry- it will be before July 4th.” We will have it all before July 4th. Actually a couple military contacts gave me that same time frame. I still have great hopes for sooner...it is interesting they have plans to have it completed by July 4th…For all we know it could happen tomorrow…nobody knows the timing.

Out of Iraq – hearing we are supposed to be getting news on Sunday that has to do with the budget but since they have already passed it- does this mean we are getting a rate? Or which projects were executed or started? I do not know.

I am seeing rates of somewhere between $3.81 to $3.91 from a number of contractors working in Iraq. They are working on infrastructure - everything from hospitals to power grid to roads etc... And I am still thinking it will be $2 something on the dong. I hope I’m wrong and my contacts are right and it’s closer to the $3 mark.

https://dinarevaluation.blogspot.com/2024/05/rv-update-by-markz-27-may.html

Iraqi Dinar Guru News Highlights (5/27/24)

The International Monetary Fund Praises The Monetary Policy Of The Central Bank Of Iraq, 27 MAY

The International Monetary Fund Praises The Monetary Policy Of The Central Bank Of Iraq

Economy Monday, May 27, 2024 2:55 PM Baghdad/National News Center On Monday, the International Monetary Fund praised the monetary policy of the Central Bank of Iraq.

According to the report issued by the International Monetary Fund mission for the current year 2024 for Article 4 consultations, the Iraqi government’s measures will be more severe, including the monetary policy led by the Central Bank of Iraq.

The report indicated that “the Central Bank of Iraq has taken several measures aimed at stabilizing the national currency and controlling monetary inflation.” It added that “the Central Bank has raised the interest rate on monetary policy tools from 4% to 7.5% and increased the banks’ mandatory reserve requirements from 15% to 18%.” %, and these steps were decisive in reducing the inflationary pressures that Iraq suffered from, and this contributed to creating a more stable economic environment.”

The report emphasized that “important reforms in the banking sector, such as the gradual increase in bank capital and mergers between small banks, aim to strengthen the banking sector and increase its efficiency and flexibility in the face of economic shocks.”

The report noted that “Iraq has implemented new compliance measures to improve the transparency of cross-border financial transactions, by launching an electronic platform that imposes the disclosure of financial beneficiaries, which enhances the integrity of financial transfers in accordance with international banking standards, in addition to the role of the Central Bank of Iraq in expanding Correspondent banking relationships, to facilitate smoother international trade financing operations.”

https://nnciraq.com/256541/

Bye-Bye Dollar: China Dumps USD Trade by Over 48% BY AWAKE IN 3D, 27 MAY

Bye-Bye Dollar: China Dumps USD Trade by Over 48%

China’s accelerating de-dollarization reflects a strategic shift towards economic sovereignty and reduced reliance on the USD.

The Rise of the Renminbi (Yuan) in Cross-Border Payments

Since 2010, China has significantly increased the use of its currency, the renminbi (RMB), in cross-border transactions.

In early 2010, the RMB accounted for less than 1% of China’s cross-border payments, while the USD dominated with approximately 83%. However, by March 2023, the RMB had surpassed the USD in China’s international settlements, marking a historic shift.

China’s trade in RMB (Yuan) increased substantially from 0.3% to 53% between 2010 and 2023 while dramatically decreasing its USD trade from 83% to only 43% during the same time period.As of March 2024, over 52% of Chinese payments were settled in RMB, while the USD accounted for 42.8%.

This dramatic increase highlights the growing global acceptance of the RMB, driven by foreign investors’ willingness to trade assets denominated in China’s currency. Furthermore, countries like Brazil and Argentina have started allowing trade settlements in RMB, enhancing its international presence.

Factors Driving China’s De-Dollarization

Several factors contribute to China’s de-dollarization. Key among them is the strategic aim to reduce reliance on the USD, which is influenced by geopolitical tensions and economic considerations.

The increasing use of RMB in international trade and finance is part of China’s broader strategy to strengthen its economic sovereignty and reduce exposure to US financial sanctions.

Additionally, China’s Belt and Road Initiative (BRI) promotes the use of the RMB in participating countries. By facilitating infrastructure projects and trade in RMB, China fosters economic ties and reduces these countries’ dependence on the USD. Moreover, the expansion of RMB-denominated financial instruments has attracted international investors, further boosting its use.

The Impact on the US Dollar’s Dominance

Despite the rise of the RMB, the USD remains the dominant global currency. It accounts for nearly 60% of global foreign exchange reserves and 89% of global trade finance.

However, the gradual shift towards the RMB indicates a slow erosion of the USD’s unchallenged supremacy.

The impact of this de-dollarization trend is complex. A diminished role for the USD in global finance could lead to underperformance of US financial assets and weaken the effectiveness of US sanctions.

Nonetheless, significant barriers remain to a complete de-dollarization. China’s strict capital controls and slower economic growth limit the RMB’s global liquidity and attractiveness compared to the USD.

Future Projections for Global Currency Reserves

While the USD is likely to retain its leading role in the near- to medium-term, the increasing use of the RMB points to a more multipolar currency system (the coming BRICS currency and financial system).

The diversification of global foreign exchange reserves, with growing shares for non-traditional currencies like the Australian and Canadian dollars, reflects this trend.

Global trade in Chinese RMB (Yuan) increased from 2.2% to 7.0% between 2013 and 2022. However, the USD remained king growing from 87% to 88.5% of total global trade.

The trajectory of RMB’s growth will depend on China’s economic policies, geopolitical developments, and the global economic environment.

If China continues to liberalize its financial markets and promote the RMB’s international use, its share in global reserves could rise further, challenging the USD’s dominance.

The Bottom Line

China’s accelerating de-dollarization reflects a strategic shift to enhance its economic sovereignty and reduce reliance on the USD.

While the USD remains dominant, the rise of the RMB signifies a gradual move towards a more diversified global currency system. The future of global finance will likely see a continued balance of power between the USD and emerging currencies like the RMB and the BRICS common trade currency, driven by geopolitical and economic shifts.

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