Monday, June 10, 2024
"It is just a matter of time before ALL banks and branches implement this fully" BY MNT GOAT, 10 JUNE
THE IMPLEMENTATION OF THE COMPRENSIVE BANKING SYSTEM IN IRAQ
Al-Rafidain Bank announced, today, Tuesday, “the implementation of the comprehensive banking system in the White Palace branch in Baghdad, thus joining the branches in which the comprehensive system was activated in Baghdad, the governorates, and the branches of the border crossings.”
The bank stated in a statement received by Al-Mutala’ Agency that, “In line with the government program to move from paper to electronic transactions to provide the best services to citizens, the comprehensive banking system was implemented in the White Palace branch in Baghdad, thus joining the branches in which the comprehensive system was activated in Baghdad and the provinces.” The number of “28” branches is in addition to the branches of the border crossings (Zarbatieh – Safwan – Arar – Trebil), in an important step to strengthen the banking system, achieve its requirements, abandon paper work, and move completely to electronic systems.
He added, “The plan for digital transformation and adoption of the comprehensive banking system is proceeding according to the set timings to include all bank branches in implementing the system,
especially since one of the priorities and adoptions of the government program is electronic transformation in financial transactions, reducing episodes of red tape for citizens, reducing time, simplifying procedures, removing obstacles, and intensifying efforts to raise the level of… Services provided to customers and completion of their transactions.
(It is just a matter of time before ALL banks and branches implement this fully. Do we have to wait for this see the RV? I am told absolutely not, but how far must they progress? )
----"Q & A" WITH MNT GOAT, 10 JUNE
Q & A
Question from clayrich6a2b498e66:
Hi MG, I read your example of the project to delete the zeros is supposedly to work, if I am reading what you describe correctly they will replace the 25K notes with 25 notes of equal value, essentially a LOP, and also from the exchange rate, but that does not solve the problem of current prices of goods, for example a loaf of bread let’s say is priced in the market for 25k for the sake of argument, if they make the 25k note equal to a 25 note, the price of the bread is still 25k, how do they plan to overcome this new difference?
Answer Mnt Goat:
Guten Tag clayrich. Hope you are fine today. I read you question and I have to say I am glad you asked it because you are a bit confused.
First of all, the IMF is not going “lop” the Iraqi dinar. A “lop” is a tool the IMF uses to restart a currency from massive inflation. A good example is the Zimbabwe dollar when in 2016 they gave the citizens weeks to turn in the 100 trillion notes for $25 US dollars each. After the deadline they were worthless. We also have articles for Iraq telling us they WILL NOT lop the dinar. They do not have massive inflation and so this tool of a lop is not necessary. That is why they call it the “project to delete the zeros” and not a ”lop”.
Iraq will be simply reducing the note count and are doing it now as I write this today, then when ready, they will drop the three zeros and give the citizens so many days to turn them in the old three zero notes for exchange of the new lower currency denominations. This exchange will most likely be electronic. It will be a 1:1 exchange but not like many think when I say one for one. Most think this is one dinar worth one dollar.----
I DO NOT mean one dollar for one dinar. I mean, for instance, a 25k note for a new 25 note. This is the 1:1 the CBI has talked about many times. Yes, the dinar may revalue first in-country to just over a dollar, but this is still not what the CBI meant by 1:1 in the past. Get it? I know it gets confusing.
If you just keep remembering that the VALUE of the dinar has always been there only when they drop the three zeros it becomes more manageable and nominal. The VALUE is still the same.
Of course, if you really read my explanation you would have read that this procedure is in-country ONLY. If you step outside of Iraq, when they finally do reinstate the dinar, the exchange of the three zero notes is different and will exchange to whatever the currency exchanges i.e. FOREX rate is at the time. You see they can’t just pop out a new rate on FOREX with first taking these prior steps in-country. Please go read my blog page again. Here is the LINK.
Secondly, about the bread. The pricing structure in Iraq- this will also change. How can it not? Don’t you think the stores will also drop the three zeros? Come’on use your head,….think, think, think ☹. Remember that they already swapped out Saddam Hussien notes for the three zero notes in 2004 and so now they will just reverse the process. Get it? This was actually a very silly question to ask. This is why the CBI plans a huge education campaign to take place prior to and during all this work. Get it? We have not yet seen this education yet. You will know it when we see it. I am told by my CBI contact there will be no doubt when it is taking place. It will be on the TVs and especially in news articles.
I also want to add that a major part of the inflation rate of what they do have today is due the inability of a merchant to make chance for a purchase since there are not now a series of lower denominations in circulation (5,10,25,50,100, ¼, ½ and the fils). For instance a loaf of bread costs $2 USD. The shopper gives the merchant a 10k note worth in this example $10. How can the merchant give change to the shopper? He will have to give $8 or 8 each of the 1000 notes (which are the equivalent of the $1). Now it gets real sticky since the 1000 note is not exactly worth $1 and is more like 85 cents so the change should be instead around $6.80 is $8.00. Do you see how cumbersome? Do I need to continue? This is also just another reason why they are going electronic, but certainly not one of the main reasons.
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.
"IF I WAS SUDANI... I WOULD CELEBRATE WITH THE PRESS ALSO." BY FRANK26, 10 JUNE
KTFA
FRANK26: "IF I WAS SUDANI... I WOULD CELEBRATE WITH THE PRESS ALSO."........F26
Al-Lami chairs the meeting of the Supreme Committee for Press Day celebrations
6/8/2024
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