The Governor of the Central Bank of Iraq, Chairman of the Council for Combating Money Laundering and Financing of Terrorism, Ali Mohsen Al-Alaq, discussed on Tuesday the development of bilateral programs with the regional representative of the United Nations Office on Drugs and Crime for the Middle East and North Africa, Christina Albertin, while the guest delegation praised Iraq’s efforts in combating cross-border crimes.
The Central Bank said in a statement, received by “Economy News”, that “the Governor of the Central Bank of Iraq received the Chairman of the Council for Combating Money Laundering and Financing of Terrorism Ali Mohsen Al-Alaq, the Regional Representative of the United Nations Office on Drugs and Crime for the Middle East and North Africa, Christina Albertin, and the accompanying delegation. During the meeting, they discussed strengthening bilateral relations and completing the programs achieved between the two sides, especially with regard to capacity-building and follow-up of criminal proceeds in accordance with international best practices.”
He added, “The guest delegation praised the efforts made by the Office of Combating Money Laundering and Financing of Iraqi Terrorism in combating cross-border crimes, following up on proceeds and enhancing the work of the internal, regional and international system.”
He pointed out that “Iraq embraces the work of the Second Baghdad International Anti-Narcotics Conference, under the auspices of the Prime Minister, who explained in his speech during the conference that drugs threaten the stability of the region, and Iraq’s vision towards combating them is not limited to the damage targeting its youth, but will be a factor in the comprehensive instability in the region if neglected.”
Episode 2 focuses on the BRICS currency model, particularly the gold-backed UNT system. The discussion aims to go deeper into this model, as previously discussed in
Episode 1.
Episode 2 of the podcast centers on the idea of exchanging or redeeming GCR currencies and bonds for a higher exchange rate within the new gold-backed system. This system, referred to as the BRICS UNT or UNIT currency system, is designed to operate using gold backing.
Several assumptions are made for calculating currency rates within this system. These include using the price of gold per gram and considering the gold holdings of each BRICS country.
Variables such as the amount of gold each country possesses are factored in, despite some uncertainties. For instance, China’s gold purchases have continued in private channels despite official reports of cessation.
The UNT formula is composed of 40% gold and 60% currency basket. There are assumptions regarding the number and composition of the currencies in this basket. The global currency reset (GCR) aims to be gold-backed, seeking to achieve increased transparency and valuation based on each participating nation’s gold holdings.
The composition of the currency basket was also based on limited information from the UNT currency system white paper. Additionally, assumptions were made about the capabilities of digital platforms for exchanging UNT-based currencies.
The results from the calculations were impressive, even with the assumptions. The numbers and formulations were derived from the available data from BRICS and Russian government sources, resulting in fascinating insights.
In this segment, the discussion highlights the current members of the BRICS Plus alliance, which now includes ten countries: China, Russia, Brazil, India, South Africa, Saudi Arabia, the UAE, Iran, Egypt, and Ethiopia. Argentina, initially invited, rescinded its invitation.
Additionally, Iraq and Vietnam were mentioned but not included in the main analysis. Further detail on the IQD and VND exchange rates against a pure fiat currency (such as the USD, EUR, etc.) will be presented in a future episode of the Endgame GCR Podcast.
We present the latest gold reserves per country based on data from the International Gold Council and other sources. They acknowledge that China and Russia likely possess more gold than officially reported, as they are the largest gold producers globally.
For calculations, gold reserves are converted into grams. For instance, China has 2.262 billion grams of gold in reserves. The gold price per gram is also provided, with one gram of gold priced at 561 yuan in China and 6,765 rubles in Russia.
A critical aspect discussed is the weighted average of each country’s share of gold. The total gold reserves for the BRICS countries amount to approximately 7.5 billion grams. Due to lack of data, Ethiopia’s gold reserves are not included.
China contributes 30% to the total gold reserves, while Russia contributes 31%, making them the largest contributors as seen in the chart below.
We then explain the formula for calculating the new gold-backed currency value, or purchasing power, based on the UNT system. The formula involves a 40% gold component and a 60% currency component.
Using China as an example, with a 30% share of the total gold reserves and the gold price of 561 yuan per gram, the calculation proceeds as follows:
Calculate 40% of the gold component: 40% of 561 equals 224.4.
Multiply the 30% share by the gold price: 30% of 561 equals 168.3.
Take 40% of this value: 40% of 168.3 equals 67.32.
For the currency component, calculate 60% of the gold price:
60% of 561 equals 336.6.
Adding these components gives the value of one UNT in yuan:
67.32 plus 336.6 equals 403.92, approximately 404 yuan per UNT.
Additionally, this translates to the gold value, where one UNT-based Yuan equals the equivalent value of 0.72 grams of gold.
These calculations are applied to other BRICS countries, providing a comparative understanding of how the UNT system will function. This detailed explanation aims to ensure transparency and accuracy, utilizing tangible data to the best of the our abilities.
In the final part of the discussion, we address the practical implications of the new gold-backed UNT system for international trade among BRICS Plus countries. They focus on how these countries will engage in trade without relying on fiat currencies or converting into U.S. dollars.
The BRICS Plus alliance includes China, Russia, Brazil, India, South Africa, Saudi Arabia, the UAE, Iran, Egypt, and Ethiopia. As these countries transition to the gold-backed UNT system, they will no longer use fiat currencies for transactions.
For example, if China buys oil from Russia, they will use the UNT system rather than converting currencies to U.S. dollars.
The new currency exchange rates under the UNT system are explained using specific examples. One UNT equals 404 yuan, and one UNT equals 4,900 rubles.
This establishes a new currency pairing system for trade. The exchange rate between the yuan and ruble under the gold-backed system indicates that one gold-backed yuan is slightly less than one gold-backed ruble because Russia’s gold holdings are slightly larger than China’s.
The chart shows various currency pairings, highlighting near-parity among them. For instance, the ruble to yuan exchange rate is 1.005, while the yuan to Indian rupee exchange rate is 1.19.
This near-parity across all participating currencies is significant, as it means that countries can trade almost one-to-one using the UNT system, which contrasts sharply with current disparities in fiat currency values.
A striking comparison is made between the IQD (Iraqi dinar) and the yuan. Currently, the IQD is valued at 1,310 to one U.S. dollar, and the yuan at 7.2 to one U.S. dollar.
Under the UNT system, these currencies achieve near-parity, with the IQD and yuan exchange rate around 0.84 to 1.16. This parity provides a more balanced and equitable cross-border trading environment.
The discussion also touches on the potential implications for global trade if BRICS countries engage with fiat currency-based economies like the U.S. or Europe.
The cost of using U.S. dollars for trade would be significantly higher compared to using the UNT system. This highlights the competitive advantage and cost-effectiveness of the gold-backed system for international transactions.
We emphasize that the UNT system will create purchasing power parity (PPP) between countries, leading to a more level playing field. This system could potentially reduce the wage disparity between workers in different countries by establishing more equal currency values.
In the conclusion of this podcast episode, we reflect on the broader implications of the UNT system for global finance. We discuss the potential for increased purchasing power and liquidity within the system, driven by the inherent arbitrage opportunities.
The transition to a decentralized, blockchain-based financial system is anticipated to enhance the efficiency and fairness of international trade, aligning with the goals of the global currency reset (GCR).
The podcast underscores the profoundly transformative potential of the gold-backed UNT system, highlighting its ability to establish a more equitable and balanced global economic landscape.
The security expert, Ahmed Al-Sharifi, revealed today, Tuesday, an American vision that reverses the desire of Prime Minister Mohammed Shia Al-Sudani related to the heading of the security delegation sent to the United States.
Al-Sharifi said to Al-Furat News that: “The Sudanese wanted to head the Iraqi security delegation to enter the second round of talks to end the mission of the international coalition in Iraq, the army chief of staff, Lieutenant General Abdul Amir Yarallah; but the United States demanded the presence of the Minister of Defense under the pretext of the Constitution.”
He added that: “The Iraqi-American dialogue has a vehicle dimensions and does not include only the military dimension, so we must distinguish between the presence of the international coalition forces in Iraq and the United States of America.”
“The issue of the withdrawal of the international coalition, according to reports, will be about two years, while the intentions of the United States lie in concluding a security strategic agreement with Iraq,” Al-Sharifi added.
“Since yesterday and today, signs of entering mercenaries began as a supportive effort for Turkish forces in the Kurdistan region under the pretext of fighting the PKK, and if the Republicans win, the crisis in Ukraine will be resolved and sanctions on Russia will be lifted, which will lead to a decrease in oil,” he added. Al-Sharifi continued, “In the face of the decline in oil prices and the departure of the American forces, we will be towards raising the armament capabilities of the Iraqi forces, the threat of ISIS gangs still exists and this threat must be dealt with.” “We are on the cuse of a major economic crisis if sanctions on Russia are lifted,” he warned, but “the redeployment of US forces in the region has new balances related to economic sinquity.” “Energy security is the security of life in the region and there are Iraqi-Turkish understandings in this regard,” Al-Sharifi concluded. Defense Minister Thabit Mohammed Saeed Al-Abbasi heads the delegation of the Republic of Iraq on an official visit to the United States of America, which will hold the second round of talks to end the mission of the international coalition in Iraq.
FIREFLY:My bank guy did say dropping the zeros does not change the value.
FRANK: He's right. Because it's going to be 1 to 1 with the American dollar. It doesn't affect it inside. It will effect it outside. No it will not change it. When it floats it will change it.
FIREFLY: Poor countries with terrible inflation, they drop [zeros] in order to lop. We are not like that. We drop to add value. It's all inflation based.
FRANK: Yes, you drop to add value inside of your country...They wanted to be at least 1 to 1 with the American dollar in order to add this value to your currency. That's why he means that dropping the zeros won't add value to your currency...Then your currency will float on the International market and the value of your currency goes up outside your country as well. Inside, it will go from 1320 to at least 1 American dollar in order to add value which is purchasing power...If it was a lop they would be adding zeros.
An Iraqi bank announced today, Tuesday, an investment deposit account with financial returns of up to 10% annually, paid monthly.
The International Development Bank said that it “continues to open deposit accounts according to customers’ requirements in terms of the duration of the link,” indicating that “these accounts provide financial returns of up to 10% annually and are paid monthly from the value of the deposit, in addition to entering the monthly draw, which includes valuable cash prizes.”
He added, “The owner of the investment deposit receives free life insurance and facilities when wishing to obtain a loan guaranteed by the deposit, as well as a credit card provided free of charge to the account holder.”
The statement concluded by stressing that “the funds will be invested to serve the country and will be guaranteed by the Iraqi Deposit Insurance Company, which is licensed by the Central Bank of Iraq, in addition to the benefits that the owner of this account will receive, which represents a product that is in harmony with the needs of the Iraqi family seeking to invest its money in the appropriate and safe place and benefit from generous monthly returns that raise the standard of living.”
