Wednesday, July 3, 2024
"IMPORTANT IRAQ NEWS: THE DOLLAR IN THE PARALLEL MARKET.. AL-SUDANI’S ADVISOR PRESENTS A DIFFERENT VISION AND ECONOMIC EXPERTS: AN IMAGINARY STABILITY?" BY MNT GOAT, 3 JULY
THE DOLLAR IN THE PARALLEL MARKET.. AL-SUDANI’S ADVISOR PRESENTS A DIFFERENT VISION AND ECONOMIC EXPERTS: AN IMAGINARY STABILITY?
The advisor to the Iraqi Prime Minister disagreed with what four economic experts said regarding the “stability” of the US dollar exchange rate against the Iraqi dinar, stressing that “the stability of the dollar is real and solid and not imaginary as some believe.” However, the economic experts said that the stability is “not reassuring,” and what is happening now is a decrease in the dollar’s volatility, while stability will occur when the dollar returns to the official price of the Central Bank.
The Prime Minister’s Advisor for Financial Affairs, Mazhar Mohammed Saleh, says, “The exchange rate of the dollar to the dinar in the parallel market today in our country does not constitute any relative importance in influencing the stability of the general price level, which has become stable in its components and trends due to the influence of the official exchange rate factor currently dominating the financing of foreign trade (imports), amounting to 1,220 dinars per dollar. It is a stable trend for the exchange rate and the stable external value of the dinar revolves around it, which is embodied by the state of stability in the relative prices of goods and services to a large extent.”
(Mnt Goat -Did Saleh just say that import payments are paying out at a rate of 1,220 per dinar up from 1,320? Yes, I can see he did in this article. He said it is stable trend and it can only mean upwards. So what rate are they reaching for could it be 1166ish? What do we make of this statement? See the full article in the articles section of today’s Newsletter.)
LATEST FROM MARKZ, 3 JULY
MarkZ
[via PDK] I feel that as far as Iraq is concerned it is done and prepared. They are just waiting on the “go” so they can announce and move forward.
On the Treasury side the rumors are dropping left and right. Everthing from “It’s tomorrow” to “oh no- they delayed it another month” Crazy rumors….same sources are telling different people different things. That tells us its “MISINFORMATION” and it is done on purpose. Stay calm and remember the fundamentals. Iraq is still looking great. They still have the new ATM’s, they still have conversations saying they are going to delete the zeros. And they are still having the conversations about releasing the lower denominations in July…things still look great.
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[via PDK] there are some things out of Iraq that should make us feel good today...“The President of Iraq approves the 2024 budget schedules” Rashid approves a number of laws including the 2024 budget tables. My contacts over there are saying they got the budget tables posted in the Gazette…but did not get a new rate. They let us know that they figured the budget of 2024 on an average price of a barrel of oil at $80 USD. This is progress. Something fun popped into the news yesterday...both from banks and exchange locations in Iraq. There was a notice that they are expecting distribution of lower denomination bills in July. Both of the confirmations I received this morning from contacts on the ground inside of Iraq used the same words that they were told to expect them to distribute/disperse lower denominations in July. That tells us how stinking close we are...Why would they need theses lower denominations unless the currency is worth more? ... ..I do not believe there is a new rate in the Gazette this morning. I am not expecting one till Wednesday. I have heard that Sudani has signed off on the budget and it is supposed to be headed to the Gazette. There was some hope it would be printed this morning. |
Nechirvan Barzani requests Austria to open consulate in Erbil
Shafaq News/ President of the Kurdistan Region Nechirvan Barzani expressed his gratitude on Tuesday for the invitation extended by the Austrian Foreign Minister to visit Vienna, aimed at strengthening bilateral relations between Austria and the Region.
Barzani's remarks came during a press conference held in the Austrian capital following a series of significant meetings with Austrian officials.
In his statements, Barzani emphasized that the visit was in response to the Foreign Minister's invitation, which followed their recent meeting in Iraq. "We came to Austria today to accept the invitation from the Foreign Minister, and we have had many important and fruitful meetings discussing ways to enhance bilateral relations. We feel that Austria has a strong desire to strengthen its relationship with us, and we have requested today that a consulate be opened in Erbil as well," said Barzani.
Barzani also noted that relations between the Kurdistan Region and Baghdad are progressing positively, highlighting advances in resolving outstanding issues between the two parties. "I believe the relationship between the Kurdistan Region and Baghdad is at a good level at present. I will not say that all problems have been solved, but my visit and those of the Prime Minister and many government delegations to Baghdad recently have been aimed at addressing these issues. Baghdad also has the intention to resolve them, and I do not expect all problems to be solved overnight, but the current steps indicate we are moving in the right direction towards a resolution," he added.
President Nechirvan Barzani arrived in Vienna on Monday for an official visit to discuss opportunities and avenues for enhancing relations between Austria, Iraq, and the Kurdistan Region, and to expand the scope of mutual cooperation.
Tuesday, July 2, 2024
"RV UPDATE" BY MNT GOAT, 3 JULY
Mnt Goat
Like I said way back in 2023 even before the budget was finalized that there would NEVER be an RV rate in any budget. Why? Because the Iraqi budget is based on the selling price of a barrel of oil and not their currency rate...Budgets are based on revenues not currency rates.
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I...asked [my CBI contact] how the rate of the dinar would be determined in the future...I was...told that “you know and I know that the rate of the dinar is now being artificially suppressed”...I was told that Iraq is in a much better situation now prior to the 1990 embargo and so why not have an international rate again with at least a rate equivalent to the late 1980’s prior to the invasion...
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...it is nearing the end of June already... Recently we witnessed a surge of news from many of the prominent global entities including the UN, World Bank, IMF and the EU. All of them praising Iraq and giving “kudos” to them for the hard work and achievements. Today is not different as the articles once again tell the RV spigot is wide open to the RV.
Article: "DOZENS OF IRAQI COMPANIES PARTICIPATE IN AN INVESTMENT SUMMIT IN AMERICA" ...in the past years I said – What is the US waiting for?
Why have they not yet invested the US companies in Iraq? There is billions to make over there. – Well the spigot had to be opened first and now it's opened. The spigot analogy means that the sanctions are over, war reparations paid and now they can do business easily with the rest of the world. But as you know with Iraq nothing happens overnight and so it took a year and a half to open the spigot but now it’s opened up wide.
So as investors where do we stand with the RV?
Based on this information from my Saturday call to Iraq, I will summarize it for you. We are still waiting for the US to give assurances. The project to delete the zeros was scheduled for June and we will still have a week remaining in June. This is all I know and can tell everyone at this point. But don’t go off too excited and forget all the other information my contact just told us either. You must put everything into its proper ..FOR READ MORE: https://dinarevaluation.blogspot.com/2024/06/so-as-investors-where-do-we-stand-with.html
The American consul in Erbil speaks of “economic opportunities” that bring great benefits to Iraq and the United States, 24 NOV
The American consul in Erbil speaks of “economic opportunities” that bring great benefits to Iraq and the United States Shafaq News / The ...
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Frank26 [Bank story] This time we didn't go down, we just called [the bank]... We said we want to see if we can exchange some cu...
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Bank appointment for Currency EXCHANGE Instructions/Checklist Bank Name_________________________________________ Bank 800#____________...
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Walkingstick All these meetings that the CBI had with all these agencies that were helping them with their monetary reform are done. Al...