Wednesday, August 21, 2024
The Biggest Challenge, 21 AUGUST
The Biggest Challenge
First 2024/08/20 The biggest dilemma that many countries - especially Iraq - are struggling with is their reliance on a rentier economy, which places the state’s capabilities under the control of variables that it may not be able to control and direct, and contributes greatly to the emergence of a clearly unequal class in society, as it also has an impact on spreading ease and resignation among citizens due to the absence of incentive and competition.
In Iraq, oil constitutes more than 90 percent of its total economy, making it a rentier state par excellence. There are many reasons for this, most of which go back to the series of wars and policies of the former regime and the period of economic blockade, and later to political strife and factional conflicts that contributed to the dispersion of resources and the absence of an effective economic policy.
But the status quo is not an imposed fate, and the government program proposed by Prime Minister Mohammed Shia al-Sudani and approved by the House of Representatives included solutions to this dilemma that could be the first steps on a long and arduous path that will take Iraq out of the captivity of dependence on a rentier economy.
The Prime Minister's repeated references to diversifying sources of income and maximizing financial resources from other sources of income, and the urging to pay great attention to the agricultural, industrial and service sectors and activate the tax sector.
All these references reveal the size of the challenge that the government has placed on itself, a challenge that forms the basis of the government's policy aimed at reforming the economy after decades of lack of will and ability to create a secure alternative economy. https://alsabaah.iq/101373-.html
LETTER FROM MNT GOAT: "THE THINGS NOW ARE NOT STALLED IN IRAQ" , 21 AUGUST
Hi Everyone,
I have some VERY AMAZING news for you today to share. WOW! WOW! WOW! I can hardly wait to review all this news with you. But first things first….
Once again, the Project to Delete the Zeros raises its head up.
Yes, two more articles on it this period. Why? But there is much, much more to this as many do not yet understand.
There are other articles today related to the topic that help us understand and tell us they know what they have to do and its just a matter of time how and when they do it. The clock it ticking… tic, toc, tic, toc.
Then there are two, not one, but two articles also on the analysis of pegging the IQD to price of oil instead of the US dollar. If this were the case Iraq would have sell oil also in the dinar and it would become the “petro-dinar” instead of the petro-dollar. Was this part of Dr Shabibi’s plan all along? Join me as we review all these issues and talk about what my CBI contact has to say about all this.
When they do liberate the dinar, it will include two main steps in the process. Please go to my blog to read all about these upcoming steps. They CAN NOT and WILL NOT just jump to reinstate without first following a process of the Project to Delete the Zeros. I have explained this process many times already to you. You can read it and follow it HERE. But today’s news is also about deciding whether they will peg the Iraqi dinar to a petro-dinar instead of petro-dollar? Yes, you heard right. Didn’t I talk about this months ago? Didn’t I tell you my CBI source told me they were considering this? How risky is it? Is this really Dr. Shabibi’s plan? Let’ talk about it in more detail.
As you might remember each month, I started compiling a list of the newest events we have witnessed during a period of time. I wanted to continue this effort also for the month of August. So, below is part of this list of major achievements for Iraq in the Pillars of Financial Reform as in the White Paper and regaining their nation sovereignty.
So, today we chalk up yet another 58 more major events just for this period of late July into August so far. What fifty-eight? Yes, there has been so much going on in Iraq to combat corruption. Are you listening? Are you taking note? Things may have looked like they were being temporarily stalled but this is not the case, as we can see.
I listed only the highlighted ones today dealing with mainly with cleaning up the corruption and instituting more of the banking reforms, but there are many more events. Please take a look at all fifty-eight of them HERE.
It’s right in our faces now and has been since 2023. We read today about another strategy, the petro-dinar peg, fixed or flexible? But will they actually move in that direction? Please take some time to read and study about this concept through the Latest Newsletter.
...TO BE CONTINUEDLATEST FROM BREITLING, 21 AUGUST
Breitling
We [The United States] are circling the wagons. If we circle the wagons we're going to cut the economy off of Iraq and we're going to make them hurt. That's not good for the Iraqi dinar.
BREITLING
Question: “I feel the RV will happen perhaps in a few months rather than years. Do you anticipate the exchange rate will be close to the same no matter which bank or exchange entity?”
Answer: The rate is the rate. If a bank charges a percentage to exchange that’s on the bank. You’re going to have to shop. No body knows...There’s no way to know what banks will charge to exchange but I’m pretty sure they’ll be competitive.
Breitling
August 17, 2024
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Breitling
What would happen if they did what Turkey did, they shifted their currency, they re-denominated, added value to it and tried to recreate the markets to get more customers and it doesn't work? There's no place to go. It would be too tough. Then they would really be dependent on the US dollar and then they would have no power over their own economy. That's what's at stake for Iraq. They are in trouble. They are in deep trouble...
Breitling
The key for Iraq - For them not to be dependent on the dollar. If the economy is 100% energy then they're going to be 100% dependent on the US dollar.
How do they get their currency outside of that?
They have to open up to doing business in completely different sectors... Then they can attach that part of the economy to the Iraqi dinar. And they can add value to the dinar as they see fit. That's always been the underlying goal of what we want Iraq to do...
Breitling
I've gotten the weirdest hate mail with a capital H. You people need to just suck it up. I don't care if it's not what you want to hear...I'm just reporting what the policy in Iraq is and whether it's pushing our speculation forward or not. That's all it is. Nothing more than that.
Breitling
I beg you. Do not turn this investment into a religion and do not hide from facts...People that do that always have financial problems...You have to watch policy.
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.
https://dinarevaluation.blogspot.com/2024/08/rv-update-by-breitling-8-august.html
Government Acknowledges “Failure” To Control Dollar Exchange Rate, 21 AUGUST
Monday, 08-19-2024, PM 10:53 Karar Al-Asadi Since the Central Bank started operating the electronic platform and the international financial transfer system “SWIFT” about a year ago, the dollar exchange rate in Iraq has not witnessed stability despite the government and Central Bank’s attempts to control the exchange rate in parallel markets.
In this context, member of the Parliamentary Finance Committee, Mustafa Sand, held the government and the Central Bank responsible for the failure to control the exchange rate of the dollar against the Iraqi dinar today, Monday.
Today, Monday, the dollar prices decreased with the opening of the Al-Kifah and Al-Harithiya stock exchanges in Baghdad, where it recorded 149,500 dinars for every 100 dollars, while the exchange rates in the exchange shops in the local markets in Baghdad witnessed a decrease, where the selling price reached 150,000 dinars, and the buying price reached 148,000 dinars for every 100 dollars.
Sand said in a press statement that “the government did not succeed in controlling the dollar exchange rate due to the policies of the US Federal Reserve,” noting that “the Iraqi side’s discussions with the American side did not achieve any positive results except for a protocol meeting with Biden that did not exceed 20 minutes.”
He pointed out that "there is American guardianship to bring in the Jordan National Bank and its acquisition of hard currency."
On July 9, Parliamentary Finance Committee member Raed Al-Maliki confirmed that the failure of the Central Bank’s measures and the “government’s measures” and its advisors to achieve stability for the dinar and reduce the gap between the two prices costs the state huge sums of money (trillions) that are wasted outside the budget,
and billions that go into the pockets of corrupt people whose addresses are many, and the people bear a great burden as a result of the reliance of the prices of most goods on the exchange rate in the parallel market, which is much higher than the official selling price.”
On July 2, the Prime Minister’s financial advisor, Mazhar Mohammed Saleh, confirmed that the suspension of the electronic platform was part of a test aimed at controlling all financial transactions related to the dollar and preventing tourists from taking out the dollar, adding that closing the platform showed that the dollar was no longer able to rise, and that the Central Bank would reopen the platform on July 14 under close supervision.
On July 1, the Central Bank of Iraq issued a letter allowing Rashid Bank, Rafidain Bank, the Commercial Bank of Iraq, and airport exchange companies to sell the dollar at the official exchange rate to tourists starting next November.
The bank stressed that any currency exchange company that does not have branches at airports until November 11 can transfer its transactions to branches of one of the Rafidain or Rashid Banks or the Commercial Bank of Iraq, or work in partnership with exchange companies such as Al Rayan, Finjan, Sama Baghdad, and Al Sukkar, which currently have branches at airports.
Since the beginning of last year, Washington has intervened to limit the smuggling of dollars from Iraq, which led to the dollar price rising in the local market to a record level of 170,000 dinars per 100 dollars, due to the decline in the Central Bank’s sales of dollars, given its subjection to the international “SWIFT” financial system.
It is noteworthy that the Central Bank decided to finance trade in the euro, the Chinese yuan, the UAE dirham and the Indian rupee, in steps to reduce the demand for the dollar. https://non14.net/public/169430
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