Monday, August 26, 2024

To resolve the file of banks “deprived of the dollar”. The relationship to Washington soon, 26 AUGUST

 Baghdad today – Baghdad

An official source at the Central Bank of Iraq revealed, on Sunday (August 25, 2024), the close visit of the bank’s governor Ali Al-Al-Alaq to the United States of America to resolve the file of Iraqi banks deprived of dollars.

The source told Baghdad Today that “at the end of this month, there will be an important visit of the Governor of the Central Bank of Iraq Ali Al-Alaq to New York City in the United States of America to hold several meetings with the US Federal Reserve and the US Treasury to discuss the file of Iraqi banks deprived of dealing in dollars, and the possibility of lifting this deprivation from them, as this negatively affected the Iraqi banking and financial reality.”

The source, who asked not to be named, said that “these Iraqi banks are not punished, but are only deprived of dealing in dollars, and the visit to Al-Alaq comes in order to lift that deprivation, as well as discuss protecting the Iraqi banking system and supporting its stability.”

It is noteworthy that the governor of the Central Bank of Iraq, Ali Al-Alaq, decided on Wednesday, (Aug. 7, 2024), the debate over the reconsideration of dollar exchange rates.

Al-Alaq said, in press statements, followed by “Baghdad today”: “There is no direction to reconsider the dollar exchange rates,” pointing out that “the Central Bank sells more than 250 million dollars daily at the official rate.”

He pointed out that “the bank covers the requirements of foreign trade and some do not want fundamentalist methods,” noting that “the view that the dollar price has risen or fallen is not a true indicator.”

“The success of the central bank in controlling inflation compared to other countries,” he stressed, adding, “We will reach 100 percent of foreign transfers without going through the US federal at the end of this year.”

He stressed, “The financial situation in Iraq is still going within what is planned in the general budget of the state,” noting that “for the first time, by virtue of the new budget and financial management law, the allocations of the provinces and ministries are rotated.”

“The Central Bank is in the process of major transformation by reorganizing foreign trade, and our foreign trade measures are being conducted for the first time with the involvement of international institutions,” Al-Alaq said.

“There are small traders outside the system that are putting pressure on the market and is about to launch a mechanism to regulate their trade, and we focus on getting everyone involved in sound fundamentalist channels,” he continued.

He revealed that “the central bank has opened channels for Chinese, Turkish, Indian and Emirati currencies,” announcing, “the imminent launch of a new audit mechanism for foreign exchange trade.”

He stressed that “all commercial external transfers are subject to review by the competent international company,” revealing “meetings in New York at the end of August to discuss the lifting of sanctions on banks and review the transfers.”

Al-Alaq explained, “The dollar is not granted to the traveler until after the departure seal,” noting that “the new mechanism ensures the arrival of 100 percent dollars for the traveler and we started it in Baghdad and then Najaf, Basra, Erbil, Sulaimaniyah and Kirkuk.”

He added, “A government direction to increase capital support for the land bank and the housing fund by budget,” noting that “the bank’s initiatives have an exceptional role in trying to fill the deficit on the subject of housing.”

The Governor of the Central Bank announced that “the capital increase paragraph of the the Land Bank and the Budget Housing Fund has not yet been implemented, and we do not want the bank’s financing to be a substitute for the investor’s obligations,” noting “the real estate bank’s guidance to finance complexes with completion rates of 80 to 90 percent.”

https://baghdadtoday.news/256475-لحسم-ملف-المصارف-المحرومة-من-الدولار.-العلاق-الى-واشنطن-قريباً.html

LATEST FROM MILITIAMAN, 26 AUGUST

 Militia Man

  They're making nothing but money off their oil, but they're also making nothing but money off their non-oil revenue streams.  

Now it's a totally different ball game.

  Back in the old days Iraq's valuation of $3.22 was based off oil.  It wasn't on phosphates...sulfur...liquid natural gas...tax revenues...tourism.  None of those.   

Add all that in now into the exchange rate gives some support doesn't it.  

You start thinking about it, wait a second, so why would you come back out at $3.22 again

Good question.  Will they?  Don't know.  Is it likely they will?  I don't know.  Why would it be any less than that? 

IRAQI DINAR: GOLD & SILVER CONVERSION IN FOREX TRADING

Iraq to share profits generated from Kirkuk oil fields with BP, 26 AUGUST

 Two officials disclosed on Tuesday that Iraq will increase the development of oil and gas reserves in the northern Iraqi governorate of Kirkuk and split earnings with British Petroleum (BP), a multinational oil and gas company with its headquarters in London.

With an end goal to draw in back unfamiliar oil organizations and speed up creation development, Iraq is moving to limit edge advancement contracts, as per Reuters.

The Iraqi government marked a Notice of Grasping (MoU) with BP toward the beginning of August to restore and foster four oil fields worked by the North Oil Organization (NOC) in Kirkuk.

The MoU was endorsed by the Iraqi Clergyman of Oil, Hayan Abdul-Ghani, and BP CEO, Murray Auchincloss, as per an assertion delivered by the Top state leader’s Office (PMO).

The Memorandum of Understanding is a component of the Iraqi government’s strategy to maximize energy sector investments to enhance and expand oil production, solar energy, and gas utilization in the region.

BP also suggests looking into potential investments in power generation and solar power facilities in the region as part of the MoU.

In mid-August, sources let Reuters know that Iraq is changing its way to deal with working with worldwide oil organizations without precedent for a long time with an end goal to bring more capital into the country’s hydrocarbon industry.

As a feature of the valuable fifth and 6th permitting adjusts started by the Iraqi government to expand the nation’s oil and gas creation, the Iraqi Service of Oil marked for this present month 13 primer arrangements to foster oil and gas investigation blocks and fields.

The Iraqi Oil Service offered oil companies benefit imparting agreements to preferable circumstances over specialized help contracts.

Iraq endeavors to draw in extra speculation by embracing benefit sharing agreements for the strengthening fifth and 6th permitting adjusts as opposed to putting together the concurrences with respect to specialized help conditions.

Creation sharing circumstances are expected to be more beneficial for unfamiliar organizations than conventional specialized help contracts, which pay a decent charge for each barrel of oil delivered in the wake of taking care of expenses.

LATEST FROM BREITLING, 26 AUGUST

 Breitling 

 Inflation is the money supply versus how the market is reacting. 

 That's all it is...It's the money supply and how is it working with the people that are spending it. 

 Do they have access to it? 

 Is it not moving?  Is there not enough money?  Is there too much money? 

 It's always going to be the money supply.

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

IRAQ'S BANKING REFORMS: A NEW DAWN?

LATEST FROM CLARE, 26 AUGUST

 Clare  

Article:  "Iraq and America to resume negotiations on the banking sector next Monday"  Quote:  "An informed source told Al-Eqtisad News that a delegation from the Central Bank of Iraq will begin negotiations with the American side on August 26 in America."

Clare  

Article:  ”Is Iraq heading towards printing new paper currency?"  Quote "The Parliamentary Finance Committee confirmed, on Thursday, that there is no intention to print new paper currency."

Clare 

  Article Quote "The Prime Minister's Advisor for Financial Affairs, Mazhar Mohammed Saleh...pointed out that Iraqi oil sales are in dollars, and are deposited with the US Federal Reserve through an open account in the name of the Central Bank, which is managed by the bank on behalf of the Iraqi government."

Article "Is it time to remove the zeros?" Quote:  "with the use of electronic payment operations, the environment will be mature and acceptable for the idea of ​​implementing the decision to delete zeros, and the process will be automatic without the citizen feeling it. But is it time to issue the decision?"

--

Clare 

  Article: "Government advisor explains the possibility of using the dinar instead of the dollar in oil sales"  Quote: "Will it be a fixed exchange system supported by foreign reserves or will it be a flexible exchange system in which the (petrodinar) changes with the change in oil prices? These are paths that have no answers on the ground and are really very ambiguous"

Clare 

 Article: "Trade discusses the mechanism for Iraq's accession to the World Trade Points Federation"  

Quote: "The Private Sector Development Department discussed with the Departments of Foreign Economic Relations and Administrative and Financial Affairs at the Ministry of Trade, the mechanism for Iraq's accession to the Federal Union of World

Trade Points, the legal procedures for joining, and the benefits that the Iraqi sectors will obtain."


  Clare  

Article: "Is “floating the currency” a solution to the crisis of the high dollar in Iraq? A representative explains"

  Quote: "There are calls to float the exchange rate in Iraq...Floating the currency is a procedure based on liberalizing the exchange rate, leaving it to market factors (supply and demand), to determine its value without any form of intervention by the economic authority...There are two types of floating: the first is absolute floating, and the second type is managed floating, i.e. the type in which the central bank intervenes to direct the exchange rate up or down, as it sees fit to achieve the interests of the national economy."

Clare  

 Article: "US Treasury places Khamis Al-Khanjar on sanctions list"  

Quote:  "The US Treasury Department, through the Office of Foreign Assets Control (OFAC), has placed the head of the Sovereignty Party, Khamis Al-Khanjar, on the sanctions list of known individuals and entities with whom dealings are prohibited."


 Article:  "Central Bank Governor Participates in a Workshop Specialized in Electronic Payment"   Quote: "His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, participated in a specialized workshop on accelerating the transition to electronic payment, sponsored by the Prime Minister, and organized by the Osool Foundation for Economic Development and Sustainable Development."

RECENT REPORTS OF CLARE: 

"RV UPDATE" BY CLARE, 9 AUGUST


LATEST FROM CLARE, 6 AUGUST


RV UPDATE BY CLARE, 4 AUGUST


MILITIAMAN : BOOTS ON THE GROUND IN IRAQ : There is a lot of information about the dinar being worth more., 25 NOV

  Militia Man   [Boots on the ground in Iraq update] There is a lot of information about the dinar being worth more.     There's a lot o...