DETAILS OF THE MEMORANDUM OF UNDERSTANDING SIGNED BETWEEN IRAQ AND HONEYWELL OF AMERICA
Today, Monday, the Ministry of Oil clarified the details of the memorandum of understanding signed with the American company Honeywell to develop refineries, and while it indicated the Prime Minister’s directive to prepare a study to establish a pipeline network adjacent to the development road, it revealed projects that will enter service soon related to raising refining capacity.
Al-Zobaie explained, “The memorandum that was signed aims to develop projects for developing refineries
and to meet what was directed by the Prime Minister regarding the refinery capacity reaching 40 percent of the production capacity of crude oil,” noting that “raising the refinery capacity to 40 percent will add value to the crude oil produced and lead to to raise financial returns and thus support the national economy.”
He pointed out that “7 projects were discussed regarding refineries, with a capacity of 70 thousand barrels for each project, in the governorates of Maysan, Dhi Qar, Muthanna, and Najaf Al-Ashraf, in addition to the third unit in the Al-Dawra, Haditha, and Qayyarah refineries.”
Iraqi PM Sudani has announced on Iraqi RV that before the end of the holiday, which was this Wed. 19, June, that the Iraqi citizens will have their new exchange rate, access to new ATM's and the lower denominations.
Question: Are all currencies going to float? IQD, dong...etc…? MarkZ: I would not look for much of a float because we are supposed to peg to assets...
Comment:
An intel guru...says Iraq is following Dr Shabibis plan to a T. MarkZ: They are.The plan was to increase the value, put lower denominations in circulation, and put the larger notes we hold in the banks for foreign reserves. Shabibi planned it all out and told us what would happen.
I do feel comfortable saying it has started…we are seeing movement…My understanding may be a little off as to how they are executing it...It’s been pretty quiet from Iraq sources over the weekend. They seem to finish things first over there and then tell us.
ADVISOR TO THE PRIME MINISTER: IRAQ IS SAFE FROM ANY INTERNATIONAL FINANCIAL RISKS
Advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed today, Monday, that Iraq ranked distinguished among international groups that follow the best banking compliance systems, which makes it safe from any international financial risks, indicating that the international community also praised the solidity of the financial and banking system.
Saleh told the Iraqi News Agency (INA): “Cash issuance mechanisms are one of the exclusive powers of the Central Bank of Iraq as it is the issuing bank based on its Law No. 56 of 2004,” indicating that “what is published here and there about problems with cash liquidity is far from the institutional basis.” The well-established monetary authority in Iraq, which is one of the most important authorities concerned with the issues of the availability of cash liquidity and the stability of the payments system, which contributes to the sustainability of the stability of transactions in the national economy.
If you take what the prime minister told us about the dropping of the zeros in his news in an April 2023 article, we can see that taking the 1320 rate and dropping the 3 zeros makes it $1.32. If we take the 6.5 billions dinars allocated for the new pipeline construction it is actually about $4.9 billion dollars. If we divide 6.5 / 4.9 we get 1.32. Oh…gee whiz is this a coincidence?
😉 😊 😊 Can you see now why I am so excited. Can you see now why this is WOW! WOW1 WOW! news for today? Many believe it is not coincidental and so I agree I. Do they need the change in rate to build the pipeline? What about the other projects too like the 7 new refineries? Does this tie back to the budget as a whole also needing the change in effective exchange rate? Just saying as it is too weird and coincidental. But if it does they will have to get their act in gear real soon, as they also told us they plan to begin this new pipeline now NOT in 2025. Get it?
Oh… Gee Whiz!! Also how do they plan to pay for the 7 new refineries? Do these also need a rate change. They did not tell us how much these will cost but you can guess it is in the billions too.
This is going to be an exciting summer! 😊 Better to be ready than to have to get ready. Be ready!
Oh Boy!, Oh Boy!, Oh Boy! WOW! WOW! WOW! 😊 😊 😊 have I got news for you today….. Now that the budget schedules for 2024 are passed and published we begin to see the details of some of the largest projects coming out in the news.
😊The largest project that Iraq is undertaking is the new oil pipeline. You can read all the details of the $4.9 billion dollar pipeline in the articles section under the title of “IRAQ IS PREPARING TO ESTABLISH A PROJECT THAT WILL CHANGE THE OIL MAP.. WILL IT AFFECT ENERGY PRODUCERS?” But just let me add that this article’s news is so amazing for many reasons. Let me address these reasons today and how it will impact the timing of the RV we are all looking for.
😊 Then, let me say that when this article came out in the same news period another article popped out about details of a memorandum of understanding signed with the American company Honeywell to develop 7 more refineries in Iraq, and while it indicated the Prime Minister’s directive to prepare a study to establish a pipeline network adjacent to the development road (which I just talked about, see above), it revealed projects that will enter service soon related to raising refining capacity. So, knowing all this what oil do you think they will be refining with all this new refining capability? Of cure it is so obvious, it will be the oil pouring from the pipelines already in Iraq as they can then divert the new oil from the new oil pipelines to be constructed for exporting. Folks, they just told us they will be expanding their oil capacity that may very well exceed even the Sadie’s. Iraq will also be selling these refined oil products to the rest of the middle east and probably Europe and the US.
😊 How much more revenue will Iraq generate before they finally give us the new rate? How much longer will they continue at the 1/6of a penny?
I keep telling everyone that the answer to these questions lies in the “White Paper” in the Pillars of Financial Reform. I can also add to this list the Dr Shabibi plan to get to the reinstatement. Remember that the RV we are looking for is only a byproduct of the reforms needed as stated in the White Paper. To get to the reinstatement (and back to FOREX) they must first reform these three sectors – banking, insurance and stock/securities markets. I keep telling everyone this but many still want to go off halfcocked and try to pin the RV down, once again to a single event. How many events have we gone through already with this stupid mentality perpetrated by these half-brained idiots. The latest being the new rate would be in the budget. Really? Then what about the project to delete the zeros? Did this just get bypassed? I don’t think so…. No, more like I know so…
Folks it does not work that way and will not work that way. There is no laundry list of items. It is simply a matter of regaining their sovereignty and getting to a position that the CBI has already determined to where they can then execute the Project to Delete the Zeros and we know the rest of the story once they do this. We will not be able to exchange until the OFAC sanctions are lifted on the US banks for the Iraqi dinar. Yes, like you I can see that it should already be done, but that is my thinking not the CBIs. Yes, there is a plan in place and there is nothing we can do but relax, sit back and watch the show. The choo choo train is moving down the track.
So, I am looking forward to my conversation in my weekly Wednesday call to Iraq with my CBI contact. Remember we were told to look for the beginning of the educational program for the project to delete the zeros sometime in the month of June, if nothing changed. So, I want to see if we are still on track since it is June 18th already. What keeps rolling around in my head was an article written in 2016 about the Project to Delete the Zeros and how it refers to January 2017 to go ahead with it. If you remember the CBI told us that January is the most opportune time to make this kind of rate change for accounting purposes. I would not hold your breath and wait for January 2025, since all the signs are pointing now to much, much sooner than later. I certainly hope its June. In my June 20th Newsletter I will present this 2016 article to you and explain it in more detail. I think this will all make more sense to you then.
😊 Oh…I almost forgot to mention the “icing on the cake” for today’s news.
It’s about the huge ATM installation and testing going on in Iraq. Why is this so important? We were told by the CBI not too long ago the significance of that the ATMs role will play in the Project to Delete the Zeros. Folks it's all interconnected. Do you see it yet? Once to get everyone, or near everyone, on the electronic banking their pay checks will go to “direct deposit”. Sound familiar. You probably have your paycheck electronically deposited too from your employer. To get petty cash they will need the ATM machines. At this time the petty cash will be set to the newer lower denominations post delete the zeros.
