Comment by Moosulkwanbyken: so we see today written that the parallel rate is within 10,000 dinar of the official rate of 132000 IQD per $100 per meaning the parallel rate is about 142000 IQD per $100. Am i correct in this determination? Still a bit to go to be within 2%. By my calculations we need 135000 IQD Parallel rate for a bit before stability can be declared? Please correct me if I’ll off on this evaluation of the situation.
Reply by Mnt Goat: Yes, I believe your math is correct 142000 per $100. The CBI has told us many times that they are not aiming to match exactly the parallel rate to the official CBI rate, although matching would be ideal. There is some tolerance. So, this gives us something to watch for. But remember the CBI is not talking about just for a couple days. They want the 142000 or less to be steady and stable. How long we don’t know and that is what we all want to know for obvious reasons. I asked my CBI contact and they told me there is no set timeframe even. It is just when ALL this indicators show that it is stable. I can imagine that inflation rate is also part of it. Thanks for your intelligent question. It shows you are on-the-ball and studying your investment wisely.
Question by kengresham: Hello MG and thank you! Can you send out that replay of Johnny Enlow and Steve Schultz talking about the dinar and the revaluation of the dinar? Do you know when this conversation took place?
Reply by Mnt Goat: Sorry I do not remember which episode it was on but it was just a short comment made by Johny Enlow. It was a personal comment not a prophetic word. Here it is for replay of his comments.
We must now buckle down and pray and pray like never before for the success of Al-Sudani and his agreements with Washington are implemented. Pray for the U.S. in that there are strong enough representatives in Congress and the Senate who will stand up and continue to fight to uphold the US Constitution and keep fighting this Washington corruption. Pray that that God’s Hand will intervene and save our great country.
Opening monologue notes, I’ll add any additional info, after I finish the entire call.
Tony said it was supposed to go Saturday night, but there was a hiccup. It didn’t go Sunday night, because the Finance Committee didn’t approve the rate. He said everyone is on “high, high alert” now. Initially he was told by Thursday this week, at the very latest. The banks are now waiting to receive the notification, that the 800 #’s have gone out to us. The Treasury is saying by Wednesday, but the Federal Reserve has just called everyone in. It can happen at any time, starting after 4:00pm today.
The budget has passed, the
contracts have started to begin being fulfilled, and the Iraqi people are being paid for June wages. The rate has not been publicly announced to the Iraqi people yet, and there is no sign of the lower denominations. It’s unknown if they are waiting until Wednesday to publish the rate in the Gazette or not.
Rates on the Bolivar are showing at 36.84 and climbing. The range originally anticipated was between 22-55.
That’s it for the opening, let’s see this done, and have an awesome day. 🙏🥳
The Central Bank explains the “fiscal control” mechanism contained in the budget
On Tuesday, individual from the Governing body of the National Bank of Iraq, Ahmed Barihi, explained the term monetary control contained in the government spending plan, as numerous authorities misquoted it during their press explanations, which might prompt accidental blunders.
Berihi told , “The overall idea of the term monetary control referenced in the bureaucratic financial plan among public money experts is the endeavor of the public authority and the leader specialists to stick to adjust to surpass the shortfall rate in later spending plans and not diminish it to the deficiency in the ongoing financial plan.”
He expressed, “Numerous authorities abuse the term in their press proclamations, which might prompt accidental mistakes.”
“The government must benefit from the increase in annual revenues, whether oil or other,” he said, “in addition to developing productive projects to enhance the treasury’s financial resources to achieve the term.”
He kept, “Accomplishing monetary control requires serious checking of costs on a long-lasting premise and follow-up by the administrative specialists addressed by the Monetary Control and Respectability Division and the Place of Delegates in regards to deciding venture costs.”
Article: "The delete the Iraqi dinar zeros reoccurring invitation and existing challenges"
That was February 25, 2024. It's sill in the the news this year. July 26, 2023 Al-Alaq said the projectstill existed... Quote: "When this is done correctly we can expect Iraq to become a strong dinar that is considered a store of value and perhaps even stronger than the dinar that was before 1980." That's a pretty big deal...
Article: "Parliamentary Finance resumes its meetings regarding the budget in preparation for voting on the schedules" Quote: "Parliament decided, according to the agenda, to hold its twenty-seventh regular session next Monday..
." I am not sure how long voting will take on the paragraph. But, if they are going to vote to do a budget at 1310 that would have a deficit of 64 trillion that would not be good for the people and they want to see another term in office they'll need the 3 zeros to be removed from the exchange rate. If there isn't a removal by Al-alaq they'll be in a pickle be sure.
That vote [scheduled Monday 3:00pm Baghdad time vote on the 2024 budget tables]is prior to markets opening in the United States in New York. Will they vote? Will they do it? We're going to find out.
The House of Representatives will vote next Monday on the budge schedules...We've been waiting for it...
Is it important? Is it not important?----
Obviously it's a focus. Article Quote: "Mustafa ... announced the House of Representatives intends to vote on the financial budget tables for the year of 2024...It will be held at 3:00 in the afternoon on Monday."
I don't think anybody's going to be able to prove me wrong, you drop the three zeros, the exchange rate changes from 1 USD to 1.32 just like al-Sudani says. Do the math it comes out to .76, apply the real effective exchange rate and that's where the show starts big time... .76 is $0.76 - it's slightly less than the dollar.
That's value. It's not .0007 something. It's value. That's what they're talking about - Bringing value to the currency. That's what Al-Alaq is there for.
Article quote: "If we assume the Central Bank issues a new currency this will not affect the exchange rate of the Iraqi dinar."
This guy is not wrong...It won't in my view. The exchange rate will affect the new small denominations though...If they change the value of the exchange rate by dropping the three zeros, therefor the new denominations will be affected by it, which will be value. It's pretty simple.
If you raise the value of the currency it's going to have a ripple effect...Instead of being a pebble...or a brick in the pond this might be a boulder. There's going to be some waves. The World Bank, IMF, US Fed, US Treasury...Bank of International Settlements, everybody's going to need to know what you're going to do and when you're going to do it and pretty close.
They're not going to be broadcasting it like everybody thinks, 'What's the date and what's the rate?' That's not how it works. But we study it close enough to where...we can see it can't be far off...
If they're going to have liquidity and they don't have it now it's going to require new small category denominations to be in circulation. Just as al-Alaq's project to delete the zeros would require new denominations. Did they do that in 2018 and have them in storage? I believe they did...
They increased that gold supply by about 40 tons...Their currency reserves are around $110 billion. They have a massive amount of wealth. They have the ability to support their imports for about 16 months they say, which is about 5x what they need. That's important. They don't want to reduce those. They'd like to keep them on hand...Iraq has a good foundation for Alaq to do what he's supposed to do and it'll only get better if he does.
If they change the value of their currency they're going to have more surpluses...The oil price is about $70 in the 2023 budget. That hasn't changed for '24 or '25 because that's a tripartite budget. They got a surplus. Oil is somewhere around $80. It's been as high as $91ish. The expectations of oil is to be somewhere in the neighborhood of $80/$90 and they even talk about $100/barrel...Iraq is going to be sitting pretty good...They have phosphates...sulfur...natural gas...Those non-oil revenue streams...taxes and tariffs are going to come online...Iraq has a good foundation for Alaq to do what he's supposed to do.
Iraq is moving forward. They've got huge reserves...increased their gold, they're going to have the private sector, their stock exchange is going to be one to reckon with. It's an emerging market and a lot of money is going to be start flowing...
If they go on the Forex system it's going to be international. It's going to be fast and furious.
Could they do something within the county prior to that?
Sure, why not, educate the citizens, do what they got to do...
Question: People want to know if they can drag this out until next year?
Militia Man: We don’t know the timing. But, I don’t think we are even close to go that long. There is way too much going on in the world and this is not only about Iraq. Remember all boats rise with the tide...I believe Iraq is ready to go with the rest of the world. Along with other countries like the Vietnamese dong.
Are they going to change the value of their currency...?
I'm pretty sure they are going to need to to pay for all these [reconstruction] objects...rebar, the cement - all that stuff is expensive at 1310. It's not so expensive if it's back at a 'previous era'....If they have the true value, their real effective exchange rate, it's going to be far cheaper...
