Saturday, July 6, 2024
IMPORTANT IRAQ NEWS :DESPITE THE RISE IN THE DOLLAR, SALEH: THE PARALLEL MARKET TODAY IS NOT IMPORTANT BY MNT GOAT
DESPITE THE RISE IN THE DOLLAR, SALEH: THE PARALLEL MARKET TODAY IS NOT IMPORTANT
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed the stability of the dollar exchange rate against the dinar, despite its significant rise today, reaching 1,500 dinars.
Saleh told Al Furat News Agency, “The fixed exchange rate system in Iraq is based on the highest international reserves in the history of Iraq and its monetary policy, as foreign currency covers more than 100% of the total currency currently issued.”
He added, “In light of the strength of the official central exchange market, 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 1320 dinars per dollar.”
He pointed out that “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, as annual inflation in our country does not exceed 3%.”
Saleh continued, “Based on the above, and in light of the strength of the foreign reserves supporting the Iraqi dinar, the value of which as liquid foreign assets exceeds $100 billion, the official exchange market, as a general trend, will remain dominant in containing any colored noise or ambiguous information that affects the parallel exchange market in short periods due to urgent international or regional political events here and there or in adapting some instructions regulating the monetary market. Stressing that after the decline of the dollarization phenomenon in internal transactions, especially in contracts, obligations and payments within the country since last year and its legal prohibition.”
He stressed that “the parallel exchange market has become such that its general effects today only form a narrow economic scope of prohibited transactions practiced by informal markets and at a rate of 10% of the total supply and demand transactions for the currency.”
He stressed that “the stability of the exchange rate of the dinar to the dollar that the country is witnessing even in the secondary markets above is a real and solid stability,and is derived from the strength of the impact of the price and quantity factors of the monetary and financial policies and their integration in imposing overall price stability in the country and containing inflationary expectations that were caused by the parallel exchange market forces during the past years.
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He noted that “the irregular secondary market, due to the freedom of external transfer, is affected by the official exchange market rate, whose operations are constantly expanding in favor of dealing with the fixed official exchange rate.”
"Q & A" WITH MNT GOAT, 6 JULY
Q & A
Question from kengresham:
Happy 4TH of July MG! Thank you again for your newsletter. You know I am a big fan of you and appreciate you so much. I agree with everything you said about Joe B. I could add several more choice words but would not look good in print.
When these crooks cashed out in 2012 and 2013, were they given SKR’s or actual funds already deposited in their account? If SKR’s wouldn’t they need to see the reinstatement/ revaluation to take place?
Thanks Ken in Mississippi
Answer Mnt Goat:
It is my understanding from many of the banks who participated in these illegal exchanges, that the politicians and their families received actual funds in their accounts, while their relatives, friends and friends of friends some received funds and others SKRs. But don’t be fooled. There were very large sums of money that transferred to these people. The hard part to swallow is the president, namely Barrack Obama at that time, knew damned well he was about to crack down hard on Iraq and set new hard criteria, which his buddy Joe is now also following. This is why I am concerned that this RV WILL NOT happen while Biden remains in office or the Whitehouse is still influenced by Obama. This policy has to change. I could end my reply here but everyone should fully understand what is going on in Iraq.
This new Obama criteria makes it almost impossible in the short term to reinstate the currency since we must keep asking what comes first the chicken or the egg. We see pending rates on the QFS of over $4 for the IQD, but Iraq is being penalized unfairly in not coming out with a lower rate to start to reflect the assets is did have a decade ago and even today does have. Iraq needs a FOREX rate to attract investment money and a reinstatement would also reflect confidence back to Iraq and investors in the dinar and don’t forget the new ISX. This is also why the ISX is struggling and sluggish. A FOREX rate, even if it did start lower, would help attract the much needed capital to rebuild Iraq.
Instead, there is a global scheme to use Iraq to bolster other currencies in a basket of 6 currencies. So they say….. This may be a very good idea however, these needed targeted rates to pull this off have been already achieved on QFS according to their plan and so now what is the hold up?
You have to also understand what the QFS is and why the currency rate algorithms and calculations were set up. The assets of a country, along with other factors, are constantly being fed into the system. The goal is to get a fair and honest rate distribution & balance between countries and take the currency rates out of the political manipulation and into reality.
This has been part of the problem all along with countries on the brink of bankruptcy and why Greece has its big crash. This corruption started when they took the US dollar off the gold standard. This allowed this to happen. So, part of the solution is also to get back on a gold standard and this is coming too, but not yet. The QFS does track gold reserves as part of the overall asset distribution, just so you know. The IMF has set a gradual limits for Gold reserves too and countries should strive to reach these goals. So, it this part of the issue too. Have these countries met their Basel requirements? Does it matter now? So, having more gold in the future will bring you currency rate higher as the currency is “backed” by something very stable. Allowing gold to be “freely” traded, which it is not today, is also part of holding back the true value of gold and you can see this too is part of the political manipulation on the monetary system.
Back to our topic….
There always seems to be an excuse not to do the IRAQ reinstatement. In late 2012 the process was stopped due to alleged corruption in the Central Bank. Later this all proved to be lies and unsubstantiated. It was a set up to halt the reinstatement and move to the new Obama plan/criteria. Although in the long term this criteria may be found to be helpful there are also tradeoffs not being considered in the short term. This is mainly because time is on their side and they always build in time so that the exposure and impact of their corruption schemes are lessened over time. For instance in 2012 Obama was campaigning for his second term as president. Exposure of this illegal currency swaps would have been disastrous for his reelection. So they devised a way to just stop the RV altogether, after they got their share. They then needed to silence us investors and keep us on this ridiculous every day / any day lies to shut us up and keep us hopeful. TNT Tony and his RV Show is the main vehicle to help keep people quite of this corruption. From there the lies and rumors just get repeated over and over again to all the other intel gurus. So far is has worked.
Then we find out Nori al-Maliki is untouchable and actually supported by the USA CIA and so this is why. He was the one who made these unwarranted claims of corruption in 2012. Then intelligence later finds out Maliki is a double agent working for the CIA and Iran. The CIA allows him to exists because he funnels Iranian intelligence to the CIA in exchange for protection. He is instrumental in funneling billions to Iran.
It is all just VERY dirty and it has to end. Nori Al-Maliki should be brought to justice ad tried for treason under Iraqi laws. But he is untouchable, for now. Iraq cannot go after him without reprisals from the USA. So, you see it is not that easy sometimes to answer what you are asking without knowing the entire story. I hope this helps you and anyone else reading this Newsletter today to get a much better scope of what is holding up the RV. You can’t say that USA and Iraqi politics does not play a role in all this. This would be lying to you listeners. You can’t target some event and just make stuff up to try to target a date, like the budget crap. Some are still on pins and needles waiting for the budget to be posted in the gazette. Well, there won’t be any new RV rate in the budget- ever! This was already proven already when the 2023-2025 budget was already posted in the gazette and there was no rate in it. Then these intel gurus move on to the budget “schedules” and again they will be wrong. This is just the pieces of the pie $$ to the provinces to pay for the projects. Why in hell would there be an RV rate in it? Its just dinars. If the dinar should go up in rate then the budget is “flexible” (as they told us over and over again) and will absorb more projects and have a surplus. That is all.
Again, I say, there will be no rate in this schedule rollout either when it gets posted in the gazette soon, maybe this week. Oh.. and when this does get posted and there is no rate, these intel guru idiots will then move on to the WTO accession and tell you that the IQD must be reinstated prior to July 18th. Watch what they do. They must have an event…. It's just a constant game of foolishness without understanding the underlying TRUTH of what is actually going on in Iraq. Get it. STOP going from one event to the other. This is pure speculation and nothing else. The entire approach is WRONG. Get it? It will get you nowhere in a hurry. Sad, sad it has come to this mentality and games in this Iraqi dinar investment. ☹
https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/DFC Commits $50 Million to Expand Financing for Iraqi Entrepreneurs
WASHINGTON, D.C. – The U.S. International Development Finance Corporation (DFC) and the U.S. Agency for International Development (USAID) today signed a ceremonial agreement for a $50 million loan to the National Bank of Iraq (NBI) that will expand access to financing for entrepreneurs across the country. This marks DFC’s first loan to a commercial bank in Iraq.
DFC Chief Executive Officer (CEO) Scott Nathan joined National Bank of Iraq Chairman Bassem Al-Salem for the ceremony. Iraqi Prime Minister Mohammed Shia’ Al Sudani witnessed the ceremony on the margins of the U.S.-Iraq Higher Coordinating Committee meeting – a testament to the strong bilateral partnership between the U.S. Government, the Government of Iraq, and the private sector to advance economic growth and opportunity in the country.
“DFC is committed to helping Iraq unlock its economic potential and empower its private sector by providing meaningful financial support for small businesses,” said DFC CEO Scott Nathan. “Today’s announcement is a significant step forward in these efforts. This investment will increase access to finance for first-time borrowers and women entrepreneurs across Iraq.”
“Access to finance is a key driver of innovation, economic growth, and job creation. USAID’s assistance helps private banks to overcome liquidity challenges and offer affordable commercial loans to small businesses. Through our partnership with NBI and DFC, we’re helping to create a more robust, diversified, and inclusive private sector in Iraq,” said USAID Mission Director to Iraq Elise Jensen .
“The Iraqi Government’s dedication to fostering an environment conducive to growth, and the Prime Minister’s strategic focus on empowering small and medium-sized enterprises, have been pivotal to reaching this significant milestone. We are confident that this collaboration will foster a more inclusive and dynamic economy in Iraq,” said NBI CEO, Ayman Abu Dhaim.
The loan will increase access to financing opportunities for smaller Iraqi businesses (persistently a key barrier for growth) through Iraq’s largest private sector bank. This initiative will prioritize first-time borrowers and allocate funding for women-owned enterprises, bringing more small businesses into Iraq’s formal financial system. During the project preparation, USAID provided advisory services to facilitate the NBI/DFC loan negotiations and expedite closure of the deal. DFC is the lender of record for the loan transaction.
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About DFC
The U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.
About USAID
The United States, through USAID, has been a steadfast partner of Iraq, helping enhance the social and economic stability for the benefit of its citizens. USAID is working with the Iraqi Government, international institutions, and local partners toward a stable and prosperous Iraq through accelerating economic growth and empowering women, youth, and religious and ethnic minorities.
dfc.gov
LATEST FROM MNT GOAT, 6 JULY
Mnt Goat
I want to quote from the financial advisor to the Prime Minister, Mazhar Muhammad Saleh from one of the articles – “The fixed exchange rate system in Iraq is based on the highest international reserves in the history of Iraq and its monetary policy, as foreign currency covers more than 100% of the total currency currently issued.” So, this is telling us that the foreign reserves can back the dinar now in circulation by 100%... This is amazing. What wealth. But the dinar is still at 1/6 of a penny?
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