What can we investors do to help in the RV situation?
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.
You do want the RV don’t you? Pray for Iraq and also 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. Remember you can say the Rosary daily or use the prayers and links I provided from the Auxilium Christianorum for your prayers.
Of course there is also your own form of prayer too. Folks your prayers so far ARE WORKING and God has heard our cries. Just look at all the progress made just since December 2022 when Iraq announced they were finally entirely out of Chapter VII. And now in 2024 the spigot is wide open the final issues preventing the reinstatement are being dealt with one by one. Can you see it too. I am trying my best to help you see it. We don’t’ need this foolishness of this speculative crap or everyday / any day garbage intel confusing us. You think this is all just coincidental? God’s Hand is at work here. He has given Iraq his anointed leader Al-Sundani to help in his work. Even I have to sit back in amazement of what he has accomplished so far. Pray for him and all his success. Let see what July brings us.
THE ROLE OF THE IRAQ STOCK EXCHANGE IN SUPPORTING MONETARY POLICY IN IRAQ
Lawyer and banking expert Saif Al-Halfi
The world is now moving with rapid steps racing with the wind in the role of stocks supporting monetary policies, especially since the old classical theories considered that stock markets are not among the tools of monetary policy. This concept reflected a traditional understanding where monetary policy focused on tools such as interest rates, monetary facilities, and banks’ cash reserves.
The development of theories and the difference in models of economic studies differ with the development of research, studies and the financial market from one country to another. It is difficult to make a theory applicable to all countries and different economies, from emerging economies to more complex economies. Because of this dialectic based on trying to understand and establish the nature of the relationship between financial markets and monetary policy, which has become more evident in many countries.
Stock markets have become part of the general economic strategy of governments and central banks, especially after the introduction of the idea of cryptocurrencies and digital banks, as they directly affect consumption, investment and economic confidence.
Iraqi market
In the case of the Iraqi model and long years of economic stagnation as a rentier economy that relies primarily on oil to finance its annual budgets and the state of price speculation on the stability of the dollar exchange rate in local markets or what is known as the parallel dollar situation, we can look at the Iraqi Stock Exchange as a tool supporting monetary policy and influencing the state of the rentier economy. This is done through:
1.Encouraging local and foreign investment.
The stock market can be a quick and important means of attracting local capital, especially cash in circulation, and trying to return it to banking incubators and investing it in short-term investments through price maneuvers on the shares of emerging companies listed on the Iraq Stock Exchange or long-term investments by pumping these cash blocks into the shares of profit generating companies, which are companies that regularly achieve rewarding annual financial profits, thus enhancing the idea of 💡 withdrawing the accumulated cash liquidity and returning it to banking incubators in a way that reduces immediate and temporary speculation on the parallel dollar in the local market.
It also creates real opportunities for foreign capital moving between emerging markets to enter, which provides them with the opportunity for quick entry, profitable investment and safe exit.
2.Diversifying the economy from excessive dependence on oil.
The stock market can be used to encourage local and international investments in sectors that create greater economic diversity than usual and a state of rapid sales and price maneuvers for shares of promising companies in Iraq.
3.Absorbing liquidity:
The stock market can play an important role in absorbing excess liquidity in the economy, which helps control inflation. This depends on the ability of the Iraqi market to be quick in price transactions from buying and selling through the shares of the companies listed in it and pressuring brokerage firms to apply and activate the latest smart systems and phone applications for daily sales and contracts executed in it, as well as encouraging the publication of financial data for Iraqi companies on international platforms that encourage understanding the culture of Iraqi company shares.
One of the most important economic theories that support that financial markets can be an effective tool in monetary policy is the Wealth Effec theory, which is summarized and almost consistent with understanding the dialectic of the Iraqi economy and the stock market economy. More consistent with the Iraqi model is the Wealth Effect Theory, written by Gregory Mankiw. Its summary is that the rise in the value of financial assets among individuals gives them an incentive to withdraw money and re-inject it into purchasing new assets and stocks in order to increase wealth and gives them a feeling of wealth, which prompts them to spend on consumption and develop the national economy.
In conclusion, all these theories and studies support the idea that financial markets can be an effective and successful tool in achieving economic stability and enhancing growth, especially in emerging markets such as Iraq. If the Iraqi stock market is exploited in the right way that attracts local and international investments, it can help diversify the Iraqi economy and create new opportunities that drive economic integration in Iraq, making the Iraqi Stock Exchange a valuable tool for monetary policies.
Yes, here it is again in our faces…. the Pillars of Financial Reforms. When I read the news just since my Tuesday Newsletter it struck me that are now mostly all now talking about these pillars and reforming these three sectors. Go ahead and page down in to the Article Section you can see for yourself. Iraq just told us yet more progress in all three sectors of their Pillars of Financial Reforms. Do you think this funny drawing I keep showing is important? Why do I show it often?
So, this week we have many significant events happening in Iraq all mostly related to the Pillars of Financial Reform that the Finance Committee has talked about so often and are in the White Paper plan for Iraq.
If you recall from my 7/23 Newsletter I reported mostly about explaining the 3rd part of the “the strategy of banking reform and development is the basic pillar for comprehensive and radical reform of the national economy in line with what is stated in Article Twelve, Paragraph (7) of the government program”
, which clearly and accurately stated that and I quote – “banking reform, with what it provides of a real and effective basis for the advancement of the Iraqi economy and the activation of investment through the restructuring and mechanization of government banks, reviewing their work, and stimulating and enabling private banks to be able to support investment and development in a real way.” Today is more of the reforms as they continue.
IRAQI STOCK EXCHANGE
Today they talk about the Iraqi Stock Exchange Iraqi Stock Exchange and how important it is and I quote from the article – “as in the case of the Iraqi model and long years of economic stagnation as a rentier economy that relies primarily on oil to finance its annual budgets and the state of price speculation on the stability of the dollar exchange rate in local markets or what is known as the parallel dollar situation, we can look at the Iraqi Stock Exchange as a tool supporting monetary policy and influencing the state of the rentier economy
. The ISX can only add to the GDP outside of the oil revenues. This will reduce the dependence on oil for revenues (the rentier economy).
So, we learned about the launch of the broadcast of the Iraqi Stock Exchange (ISX) on YouTube. So this week Iraq witnessed the launch of the broadcast via the Iraq Stock Exchange website via YouTube, in addition to broadcasting via the market’s Facebook page.” This is all VERY GOOD news and heading in the direction we need. Choo Choo!
Former MP Manar Abdul Muttalib, on Thursday identified the features of black money in the Iraqi investment stock exchange, indicating that this money stolen from the Iraqi treasury has revived the economies of several countries . But how has it helped Iraq? Abdul Mutalib said in an interview with Baghdad Today, “There is no accurate figure for the amount of money looted in Iraq after 2003, but all indications indicate that it is hundreds of billions of dollars, some of which was smuggled abroad and some of which was turned into support for building economic wings for parties, forces and companies .” Can you see why now they fight to liberate the dinar? Most of this would stop. The goose that lays the golden eggs would stop. Like Dr Shabibi said to us way back in 209-2012 that longer they stay on the currency auctions and suppressed rate, the harder it will be to return to normalcy. We are witnessing that now.
Also we read that and I quote – “The investment environment in Iraq is going against the trend in the world in that anyone with $100,000 can invest in a project worth $100 million. This is a paradox. Yes, do you see why now they have to reinstate the dinar and off the sole peg to the US dollar and the 1/6 of a penny rate. Billions are being lost.
BANKING REFORMS
We learned that Rafidain Bank has started selling dollars to travelers by filling out an electronic reservation form and reserving it 72 hours before the travel date.” This procedure will onlytake place in the bank’s branches and receiving it through the bank’s office at Baghdad International Airport.” The mechanism will be adopted to provide hard currency to travelers according to the official exchange rate set by the Central Bank of Iraq.” Can you see how this is a step to stabilize the parallel market and legitimize the demand for the dollar? Will this finally get the parallel market rate equal to the CBI official rate, or at least much closer? Choo Choo!
I want everyone to know that Finance Committee that returned from Iraq after spending the week attempting to convince the US Treasury to let go of dollars sanctions of the 32 Iraqi banks was a failure. This was not good news. We still wait. I do not believe this will happen as the Biden administration is in turmoil in the US. The democrat party is desperate to stay in power at any cost. All efforts are going towards this and foreign policy, as we all can see is suffering greatly as a result.
VOLUME OF BANK DEPOSITS GROW
WOW! WOW! It is finally taking root. Al-Obaidi said in a tweet followed by “Al-Eqtisad News” that the data of the Iraqi banking sector between 12-31-2022 and 5-31-2024 indicate that the banking sector, despite all the challenges and shocks it faced during this period, was able to achieve growth in many areas, specifically in financial inclusion, as well as an increase in bank assets and maintaining the volume of deposits despite everything that was raised about the sector. Folks again this is all VERY GOOD news. We know the banks must recover the money from the hoarded stashes outside the banking system in order to provide liquidity for the banks to operate and use the funds to loan out and for other financial products. But they are not there yet and won’t get to the final goals until they change the rate. Choo Choo!
INSURANCE REFORMS
Wow! I also have some news for you today in the category of insurance reforms to help investors and businesses come in to Iraq.
So in today’s news we find out that Iraq is joining the International Association of Deposit Insurers (IADI) which will enhance the transparency and credibility of their national banking system. Do you think this was needed prior to the RV happening? My impression is NO! However, it is a part of th Pillars of Financial Reform they said they needed to address. It will certainly help in their country’s commitment to strict international standards in the field of deposit insurance. It sends a positive message to citizens and investors, stating that their deposits with banks that are members of the deposit insurance system are in safe hands and that the banking system is subject to effective local monitoring and supervision.
International bodies do not only provide a platform for the exchange of expertise, but also provide technical and advisory support to their members. National institutions can benefit from the expertise of international specialists in developing and implementing effective deposit insurance policies, assessing potential risks, and preparing for financial crises.
By adhering to international standards and implementing best practices, national institutions can reduce the risk of financial crises and enhance the stability of the banking system. Choo Choo!
Next we learn that the Parliamentary Oil, Gas and Natural Resources Committee expects that the Oil and Gas law will be transferred to the next parliamentary session, amember of the Parliamentary Oil and Gas Committee, Ali Al-Lami, said in an interview with Al-Mada news in Iraq. We know this is important I have been many times this is needed in the Obama/Biden economy plan for Iraq. Yes, I was told they must fulfill this constitutional referendum requirement. Choo Choo!
I am sorry but there is not much spectacular news applicable from Iraq than what I just talked about in the commentary. The RV train just keeps moving down the tracks quicker than ever. Quicker than my 18 years in this investment. Hold on to your hat. Anything could happen at this time....TO BE CONTINUED
IRAQI BANKING SYSTEM.. A SIGNIFICANT INCREASE IN THE NUMBER OF BANK ACCOUNTS AND THE VOLUME OF DEPOSITS FOR CITIZENS
The banking system in Iraq is gradually regaining citizens’ confidence with the increase in the number of bank accounts in the country.
Banking systems around the world are facing increasing challenges in light of rapid economic and financial changes. To ensure the stability of these systems and protect depositors’ funds, many countries are moving towards joining the International Association of Deposit Insurers. This membership is not just a formality, but a strategic step that carries significant benefits for member countries and their banking systems.
In Iraq, economic and political challenges over the decades have provided a strong justification for keeping money at home rather than in banks.
However, the accession of the Iraqi Deposit Insurance Corporation (ICDI) to the International Association of Deposit Insurers was a decisive step in improving confidence in the banking system
. Since its accession, Iraq has witnessed a significant increase in the number of bank accounts and the volume of deposits, reflecting a significant improvement in citizens’ confidence in banks. This development enhances Iraq’s ability to attract investment and support economic growth by converting savings into productive investments.
In a world characterized by increasing economic and financial interdependence, countries cannot operate in isolation from each other. Membership in international deposit insurance bodies reflects countries’ commitment to international cooperation and exchange of expertise, and confirms their relentless pursuit of financial stability and the protection of depositors’ funds. This membership is not just a formality, but a strategic investment in the future of the banking system and the national economy as a whole.
International cooperation: the cornerstone of deposit insurance International bodies provide a unique platform for the exchange of expertise and knowledge between member states. National financial institutions can benefit from the successful experiences of other countries in the field of deposit insurance, and avoid the mistakes made by some countries. This ongoing exchange contributes to the development and modernization of deposit insurance policies and procedures in line with international best practices.
Joining the International Association of Deposit Insurers (IADI) enhances the transparency and credibility of the national banking system.
A country’s commitment to strict international standards in the field of deposit insurance sends a positive message to citizens and investors, stating that their deposits with banks that are members of the deposit insurance system are in safe hands and that the banking system is subject to effective local monitoring and supervision. International bodies do not only provide a platform for the exchange of expertise, but also provide technical and advisory support to their members. National institutions can benefit from the expertise of international specialists in developing and implementing effective deposit insurance policies, assessing potential risks, and preparing for financial crises.
By adhering to international standards and implementing best practices, national institutions can reduce the risk of financial crises and enhance the stability of the banking system. This stability is not an end in itself, but rather a means to achieve broader economic and social goals, such as increasing economic growth rates and creating job opportunities.
When citizens and investors trust the banking system, they are more willing to deposit their money in banks. This increased confidence leads to an increase in the volume of deposits available for investment, which supports economic activity and contributes to achieving sustainable development. The impact of membership in international bodies is not limited to enhancing financial stability and confidence in the banking system, but extends to supporting economic development.
Increasing the volume of deposits available for investment can contribute to financing development projects, providing loans to small and medium enterprises, and creating new job opportunities.
Malaysia: Malaysia joined the International Association of Deposit Insurers, which helped improve deposit insurance policies and increase confidence in the banking system. This accession led to an increase in the volume of bank deposits and greater financial stability, which contributed to supporting economic growth in the country.
South Korea: After the Asian financial crisis in the late 1990s, South Korea joined the International Association of Deposit Insurers. International membership helped restore confidence in the banking system and stabilize the national economy, allowing South Korea to achieve a rapid economic recovery.
I need to start off my commentary today by highlighting some concerns by a few of my blog readers about the RV and the two step process to get to the reinstatement. I think it’s the misunderstanding by a few about this process that raises concerns. I have read all the blog comments. Although I thank everyone for the comments, as least I know someone is out there. So, I encourage those with concerns to please go FIRST read or re-read my writeup on the Project to Delete the Zeros and the Dr Shabibi plan. Then SECOND come back to this commentary and continue.
If you still have concerns after reading the blog on these two sections (see above) than it is apparent to me that either you can’t read, didn’t learn how to read or can’t comprehend what you are reading. So, which is it?
Any process I tell you about in the blog is not my opinion but FACTUAL information given to us by the CBI in 2011. You can argue over it and given your negative comments until the cows come home and it won’t make a bit of difference or change anything. If you think you are somehow being swindled then get the hell off my site. I am only trying to help people understand exactly the opposite of all the negativity and concerns. The plan I described was developed by the CBI and the IMF not me. Get it? It was published in a series of articles over a period of time in 2012. It is a sound plan and they told they will execute it “when the conditions are right”. They have said this over and over again in the last 11 years. The CBI attempting to execute on the plan once already and got stopped. You can go read why and how this happened in the rest of the blog. I have been in this investment for 18 years. These are smart people in the Iraqi GOI and CBI and know what they are doing. If you feel the plan is not a viable plan and is going to screw the outside investors than I suggest you sell you dinar and get the hell out of this investment. I am a bit tired of repeating myself over and over again on these issues.
First let me say that the three zero notes are not being obsoleted after the deadline in Iraq is over to turn them in. No one EVER said that! These notes will be used for “interbanking of international transactions” in the background where large sums of cash must be transferred. The CBI told us this many times in articles. Yes, eventually these notes will become obsoleted but we will be way out of this and exchanged by then. Get it? This is why I am telling go exchange ASAP and don’t wait. This three zero note currency of Iraq is not something you are going to hold on to and watch it grow for the future. This investment ends when the RV happens. Get it? This is not a stock investment. Get it? But the CBI did tell us there will “probably” be at least a 10 year use of these notes by the banks for this purpose. How does this concern you. Simply put it doesn’t and so why are you so worried about it?
Next, the CBI very distinctly told us this procedure of the Project to Delete the Zero is NOT a lop. In the articles back then, they described what a lop is and how it is used in times to relieve the stress on a currency due to hyperinflation. So, does Iraq have hyperinflation? They are averaging now about a 3-4% inflation rate with the highest of 9% when they did the de-dollarization in 2023. So, the tool of the “lop” does not apply. Get it.
Again, the Project to Delete the Zeros is a process to switch out or swap out the currency and get them out of the “sanctioned” mode and back to normalization. They are not doing it due to hyperinflation. I will not repeat this again. Read my lips! Go see a doctor if you can’t comprehend this notion.
Back in 2003 they did the exact same thing to swap out the Saddam Hussein notes (the lower denominations) for the larger 3 zero notes. Now they have to switch them back. They did this for two reasons: 1, to eventually get the Saddam picture off the currency; 2.to steal from the Iraqi people through the currency auctions using the pretext of trying to prevent terrorist funding when in fact this process has caused more of it. (they knew it would too and this was all a well thought out U.S. plot to steal the oil wealth from Iraq)
Like I said on my blog section about this process the rate will stay the same after the swap out inside Iraq. If a 5,000 dinar note is worth $4.80 US dollars today then the $5 dinar note after the swap out will be worth $4.80. Get it? No one in Iraq is getting rich. BUT THIS SWAP OUT PROCESS IS FOR IRAQ AND INSIDE IRAQ. Once the swap out deadline is over, these large three zero notes will not longer be in circulation on the streets in Iraq. Get it? I did not say obsoleted or null and voided.
When the swap out is done, they will watch for inflation and if all goes well, they plan to reinstate the currency. Now the rate on FOREX is going to be a normal value, as determined by QFS and the new rate linked to FOREX. The CBI site will then also link over to either the QFS or FOREX (I am not sure which) but it does not matter. The new rate will reflect the true value of the dinar not some suppressed rate as it is today while they play their stealing game of corruption. Get it? So then a $5 dinar note that was $4.80 before the reinstatement for instance, could go as high as $20 USD after the reinstatement if the rate on FOREX comes out at $1 IQD = $4 USD. This same rate would apply to the dinar both inside and outside of Iraq after the reinstatement. There will never be two official rates for the IQD
.
While the swap out in Iraq is occurring, the dinar notes we as investors, outside of Iraq, have a choice. We can then either go take the swap out rate when it occurs, if the banks in our country want to exchange them at this time as this is the rate they will use, when this process occurs. Or we can wait for FOREX. This is also why they put the link on FOREX linking back the CBI official rate today of 1320 (about $4.80 for a 5,000 dinar note as in my example). This official rate while in swap out mode will change to just around 1:1. Yes this is also what 1:1 means. One 5,000 dinar note for one 5 dinar note. One for one. Get it?
As I said before there can only be one official rate of the dinar at a time. You as an investor can wait and go the bank when the reinstatement occurs on FOREX and get the new official new “revalued” rate for your dinar. I don’t know about you but I am going to wait for FOREX. Don’t be fooled, anxious or be greedy and rush into the taking the swap out rate when they conduct the swap out in Iraq. If you do it is your fault and your mess up, if you want to make any real money off this investment. Don’t blame me for being stupid! Again do you take the initial cheese put in the trap or do you wait.
Were you in this investment back in 2011 and 2012 when all this information came out? If not then go read my blog writeup on the process because I was in this investment and I was tracking all the information given to us investors by the CBI back then. If you were then you should know better than to ask such questions. So please don’t tell me how this is going to work. Please stop all your nonsense and relax. Stop all the hypotheticals it is a waste of my time to even address then as most are just nonsense and just shows a lack of understanding how the process will work.
I will not explain the process again and this is why I documented the process VERY CLEARLY in my blog. 😊
I also want to clarify yet more nonsense going on in the comments. I have also explained many times over already in my commentary that my CBI contact told me that the 3rd stage of the reforms is underway and was supposed to begin with the Project to Delete the Zeros in mid-June. The project did begin and is moving forward but they are also still waiting for the assurances from the US. This does not mean they can’t begin some of the process and do as much as they can in anticipation of getting it sooner than later. Why did delegates just spend a week in Washington, yes last week? It was to talk about the 32 banks under dollar sanctions. Come’on folks read the articles I am presenting! Why do I present these articles and take the time to find them, interpret them and list them if you are not going to read them? If you are lazy don’t blame me. The information is all there.
The CBI began the education already and I showed you a video of it. What the hell more do you expect. They can not actually perform the swap out until, what I believe, is that this crooked administration the Biden and Obama must end and somehow the new Treasury cabinet member to be designated by the new administration who has common sense and is willing to reinstate Iraq now and not wait for some long-term grandiose plan of Obama to happen but to give assurances to the CBI right now that the project should be executed in “full” measure.
Yes, now and not wait. Otherwise, the CBI can educate all they want but the RV is still not going ahead until probably the election is over. You better pray the democrats are unseeded from power in the ability to be making these decisions for Iraq.
I certainly hope that all of you readers who made these types of comments suggesting that I present more clarity at least go and press theMnt Goat GIFT button for the extra time I took today to explain this all over again and help you out. What is my time worth to tutor and babysit you? This is time away from my business or other jobs where I can be earning to make up for the losses at the gasthaus that started over Covid and continue still today.
