Thursday, August 8, 2024
ANALYSIS OF IRAQ NEWS: BANKS OF “POWERFUL POLITICIANS” AFFECT EXCHANGE RATES, IRAQ FACES “INTERNATIONAL PRESSURE” BY MNT GOAT: , 8 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.. 😊)
RV UPDATE BY MNT GOAT, 8 AUGUST
Mnt Goat
...what is actually occurring between the CBI, the Feds and the US Treasury. If you read the headlines today you might begin to panic...you might say things are looking really bad for Iraq. But I assure you that this is all actually VERY GOOD news for us investors... this recent move by the US Treasury was made for the benefit of the currency reform process so that they could move to the next step of the currency reform once these issues are fixed...
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US TREASURY TAKES CONTROL OF IRAQ’S CENTRAL BANK TO COMBAT MONEY LAUNDERING
Three informed sources close to the political and parliamentary decision-making process in Baghdad revealed extremely dangerous information confirming that the US Treasury Department has taken a permanent headquarters in the Central Bank of Iraq building.
They considered that this step came as a result of the great pressures on the Iraqi banking system with the aim of limiting money laundering and dollar smuggling, as the governor of the Central Bank was forced to allocate an entire floor for US Treasury departments to monitor money transfers and prevent any illegal activities.
The three sources confirmed that a team of American employees is working permanently at the Central Bank of Iraq, as part of intensive efforts to ensure Iraq’s commitment to international standards for combating money laundering and terrorist financing.
(My CBI source confirmed to me on Saturday that a team of American employees from the US Treasury are working permanently at the Central Bank of Iraq and will be there for a long time to come. The question is how does this affect the timing of the RV? I will explain below in the RV Status. Full article in the articles section.)..FOR READ MORE: US TREASURY TAKES CONTROL OF IRAQ’S CENTRAL BANK TO COMBAT MONEY LAUNDERING Three informed sources close to the political and parliamentary decision-making process in Baghdad revealed extremely dangerous information confirming that the US Treasury Department has taken a permanent headquarters in the Central Bank of Iraq building. They considered that this step came as a result of the great pressures on the Iraqi banking system with the aim of limiting money laundering and dollar smuggling, as the governor of the Central Bank was forced to allocate an entire floor for US Treasury departments to monitor money transfers and prevent any illegal activities. The three sources confirmed that a team of American employees is working permanently at the Central Bank of Iraq, as part of intensive efforts to ensure Iraq’s commitment to international standards for combating money laundering and terrorist financing. (My CBI source confirmed to me on Saturday that a team of American employees from the US Treasury are working permanently at the Central Bank of Iraq and will be there for a long time to come. The question is how does this effect the timing of the RV? I will explain below in the RV Status. Full article in the articles section.)
The Iraqi Trade Bank invites exchange companies to participate in the dollar sale window, 8 AUGUST
Shafaq News / The Iraqi Trade Bank on Wednesday invited all licensed exchange companies to participate in the cash dollar sale window to travelers.
In a statement today, the bank called on all exchange companies for the two categories (A, B) licensed by the Central Bank of Iraq to review its branches to open a special bank account to participate into the window of buying and selling foreign currency for the cash dollar for travelers.
It is noteworthy that on July 4, 2024, the Central Bank of Iraq decided to start selling the dollar to passengers, exclusively through corporate outlets and banks at international airports.
Meanwhile, the central bank has decided to give A-B-class exchange companies the ability to register internal and external remittance activities via the FITR platform.
RV UPDATE BY BREITLING, 8 AUGUST
Breitling
[Iraq's] policy has changed for the very first time since we've been in this...speculation together. The policy is going to change on either side of the aisle...Iraq is going to be punished if they keep moving forward here [moving more and more pro-Iranian]. That's not good. That's not positive for us.
The Untied States is trying to influence [Iraq] to do the right thing.
Hopefully they will do it and everything will be hunky-dory. Well the reality is IMO if the CBI had that influence it would have been done already. That's the problem. That's why I'm in the neutral zone. It sucks because I put my heart and soul into this. Don't think for a minute I don't feel it because I do...This could mess up the timeline and push it back, maybe even permanently if Iraq can't handle these financial problems.
TIDBIT FROM FIREFLY, 24 DEC
Frank26 [Iraq boots-on-the-ground report] FIREFLY : Mr. Sammy said with this auction stopping the value would have to be added to st...
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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...