There is so much news this period coming out of Iraq but for the length of this Newsletter I will concentrate on just a few more of the most important articles. These articles deal with the new US Trump administration and what is holding up this next stage that Al-Abidi told us should happen. So, this news today is all interconnected.
This information is also supported by what my contact in the CBI has told me a couple times is the hold up. But we all should get out of this idea of a “holdup” and just realize that it is a process.
The CBI sets goals and plans. But the plans don’t always pan out on time and obstacles are realized along the way. I have to day that getting off the currency platform was a huge undertaking for the CBI and was done on time and effective. I know this seemed unusual for Iraq to be on time….lol…lol..lol..
😊All these full articles can be found in the Articles Section of today’s Newsletter. The first article titled “GOVERNOR OF THE CENTRAL BANK OF IRAQ MEETS AN OFFICIAL DELEGATION FROM THE UNITED STATES”. His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, received Mr. Steve Lutes, Vice President of the US Chamber of Commerce and Chairman of the US-Iraq Business Council, and his accompanying delegation in Baghdad. During the meeting, they discussed banking and economic relations between the two countries and the upcoming visit of the Central Bank of Iraq delegation to Washington and their meeting with the US Chamber of Commerce and American companies next April.
Government Advisor Reveals Iraq's Gold Reserves And Hedging Against "Ill-Considered Races" To Buy It
Time: 2025/01/27 19:17:28 Read: 1,410 times {Economic: Al Furat News} The economic advisor to the Prime Minister, Mazhar Muhammad Salih, revealed Iraq’s gold reserves, which are estimated at about 152 tons.
Saleh told {Euphrates News} that: "The gold reserve is undoubtedly an important part of Iraq's foreign exchange reserves, as it contributes to enhancing financial stability and confidence in the national currency. According to the announced data, gold reserves have reached about 152 tons."
e added, "The approximate value of it in the country's foreign investment portfolio is about $14 billion, which constitutes about 13% of the total diversification of that portfolio, which is distributed in standard proportions among other foreign currencies."
Saleh promised that gold is "a safe haven for the balance of the aforementioned investment portfolio, especially when the exchange rates of some currencies or the fluctuation of interest on investing in those currencies are exposed to uncalculated risks in the short term as a result of decline or fluctuation."
He pointed out that "central banks often follow standard guidelines, including our country, in diversifying their investment portfolios in foreign currency, which adopts many criteria, including the density of commercial areas with which they deal in global trade and investment."
Saleh added, "Our country is monitoring this diversification with great precision and with accurate advisory coverage, and it is not necessary to enter into ill-considered races in the yellow metal markets," indicating that "gold often carries its management costs, whether insurance or storage fees in global gold vaults, according to highly accurate mechanisms."
He stressed that "its importance lies in the possibility of issuing bonds when needed, called gold bonds guaranteed by gold," noting that "there are currently buying sprees in the world due to the change in the US administration and the rise in its prices."
According to the statement of Al-Sudani's advisor, "the state of uncertainty surrounding the new US administration has led to a rise in gold prices globally, as gold is a safe haven for investors in times of instability," noting that "despite this, strengthening gold reserves depends on the decisions of the monetary authority and its strategies in maintaining economic stability, and taking the necessary measures at the appropriate time." LINK
Next, I need to cover what many might see as a negative article. But I assure you it is just gossip and a devaluation of the IQD is NOT going to happen. Please see article titled “BETWEEN ECONOMIC EXPERTS’ WARNINGS AND GOVERNMENT DENIAL, THE VALUE OF THE IRAQI DINAR IS AT STAKE”
I believe the point the author is trying to make in this article is that if the CBI does not move soon on the next stage, what Al-Abidi talks about in his article there may be repercussions in the economy.
In that just because Iraq is now out of the currency auction platform everything is still not completed. There is more to do to get the dinar to the place that they desire it. This last step alone will not do it.
So rumors begin and an informed government source denied, on Tuesday (January 28, 2025), that the Iraqi government has any intention to reduce the value of the dinar against the dollar, despite rumors indicating upcoming measures to confront economic pressures and challenges in the international market.
Do you see what I mean now once you read this paragraph? The CBI must make this move to the next stage and do it soon, very soon, not years in the future.Now that they have moved closer to the international way of banking for their imports (through foreign correspondent banks), they must eventually move to FOREX and to get to FOREX trading they will need to conduct the Project to Delete the Zeros. The final goal in all these steps is to get of course to reinstate the dinar on FOREX but also to have the IQD usable for trade. What I mean is to create a desire for acceptance of the dinar as a means to pay for imports to Iraq. Why would anyone want the dinar now at 1/6 of a penny? Get it?
So, when I listen to intel from many of these intel gurus out their namely this jackass TNT Tony, I can see through the lies either someone is feeding him or he is just making it all up himself. I know the steps necessary to get to FOREX and believe me we are not exchanging our dinar as investors unless the IQD is back on FOREX. No one is exchanging the IQD for anything other than the “official” CBI rate 1310 or maybe a black-market rate. But certainly not at $3 or $4 dollars for example. How stupid to even believe this crap. How long has this nonsense been going on?
GOVERNOR OF THE CENTRAL BANK OF IRAQ MEETS AN OFFICIAL DELEGATION FROM THE UNITED STATES
His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, received Mr. Steve Lutes, Vice President of the US Chamber of Commerce and Chairman of the US-Iraq Business Council, and his accompanying delegation in Baghdad.
During the meeting, they discussed banking and economic relations between the two countries and the upcoming visit of the Central Bank of Iraq delegation to Washington and their meeting with the US Chamber of Commerce and American companies next April.
The meeting discussed the desire of American companies to invest in the energy, infrastructure and modern technology sectors and to invest in the security stability witnessed by Iraq.
His Excellency the Governor stressed during the meeting that the Central Bank of Iraq supports the economic growth process in Iraq and provides the necessary support to international companies wishing to invest in Iraq, including American companies and banks, noting the importance of diversification in investment sectors.
The two parties also discussed the mechanisms of international trade and the process of Iraq’s transition to fully operating in foreign transfers through correspondent banks. The Director General of the Investment Department and the Director General of the Banking Control Department attended from the Central Bank, in addition to His Excellency the Governor.
Central Bank of Iraq Media Office January 26, 2025
😊I want to start off today’s news with Iraq bragging once again about its resources and wealth in an article titled “IRAQ BOOSTS FINANCIAL STABILITY WITH HUGE DOLLAR AND GOLD RESERVES IN US, EUROPE”.
Boy, oh boy they are teasing us dinar investors once again. They are flaunting their wealth once again but the IQD is still at 1/6 of a penny and NOT traded on FOREX? Meanwhile Iraq has 43% more oil reserves than Kuwait and just founded two more major wells besides. There is something inherently wrong here. Do you see it too?
Let’s explore this concept in greater detail in today’s Newsletter by referencing other articles and what they are telling us. Remember these are their words, not mine. This comes directly from Iraqi news. We may not agree with all of what the articles have to say this news period, but I will say it is not lies or misinformation. No fake banker stories or memos. No every weekend RV bullshit. Instead they give us a trend of where Iraq is right now and how they are thinking for their next strategy of reforms. If we pay attention we can see the writing is on the wall and their economists see it now too.
Kuwait is at 1 KWD = 3.25 USD on FOREX.
The below message recently comes up on this site when you inquire about the IQD.
It says “Notice IQD may be redenominated”. This redenomination is the newer lower denominations we have been waiting for.
Yes, they will have to execute the Project to Delete the Zeros.
We know that the CBI must also raise the rate of the dinar at par or just over a dollar within country to get this project started and create incentives to turn in the dollars.
This is really the final push to de-dollarize Iraq. The CBI still needs to break this parallel market. As long as the dinar is much lower than the dollar this issue will linger.
Next, as usual I want to point out one article that stands out among all others in the set of articles in the Iraqi news for this period.
In doing so, I want to bring to your attention a very interesting, but sober analysis of the solution to the problem of the parallel market and dollar within Iraq by a noted economists. His name is Khalil Ibrahim Al-Abidi. The article is titled
“AUCTION DOES NOT BUILD THE ECONOMY”.
What I find interesting about the article is heexplainsabout the dinarwhat all of us should already know if you have been following my blog. But it is nice to hear it again from their mouths not just mine.
Al-Abidi essentially is telling us once again that the currency auctions were not meant to be implemented so long. (Oh…gee whiz what a revelation…lol..lol..lol..) He says the auctions were a temporary measure to prevent hyperinflation and because they had run so long, they had become a way of life or as he puts it in the article and I quote – “and we have become accustomed to the mistake and it has become a lifeline.”
He admits that the auctions were not such a good thing when the CBI let them go on for twenty years. He says the CBI did a very good thing in getting off the currency auction platform. I quote from the article … “the Central Bank did well recently and left the auction platform, and returned to respect its currency, which is the dinar.”. But he says there is also the next step that needs to happen.
Economist Al-Abidi then goes on to say in the article what the next stage or step should be for the dinar. Yes, we all know what the next step should be and now, once again, we are hearing it from yet another Iraqi economist not just our own thoughts as investors. So, what does he feel is the next step? I quote from the article and I broke it down into three distinctive parts
:
1.“Working to follow up on what is imported under the import license and ridding the country of the decline of its currency and the danger of imports”,(avoid fake receipts and shipping papers) and;
2. “the most important step is to zero out the dinar, and buy the 1,250 old dinars for one dinar of the new currency during the exchange after printing the one dinar denomination”, (he is saying to exchange 1,250 of the older three zero notes for a newer lower denomination note of one dinar worth $1.25 USD) and;
3. “the value of one dinar will be one dollar through the documentary import cycle, and we have sufficient revenues in addition to the sovereign reserves.” (here he backs up what I just said in #2 above)
Note that Al-Abidi does not mention the FOREX trading of the dinar and limits his commentary to in-country and managing the payment of imports into Iraq. We know this has to be the next step in the process to increase the rate of the dinar in-country to at par or just over a dollar. Then go to FOREX.
Again he is talking about the next stage and is limiting it to in-country. This will enable the CBI to issue the newer lower denominations.
We know these denominations are already printed as Dr Shabibi told us they were way back in 2012 and so don’t doubt this point in your mind.
We must remember what we learned in the past and go forward to the present to use our brains in determining where we stand in this investment. Over speculating with nonsense from many of these intel guru idiots does not help.
Okay, so what else does Al-Abibi tell us. He says and I quote “Making the value of one dinar equal to one dollar will keep the citizen, merchant, traveler, doctor, etc. away from running after the dollar. Rather, he will be reassured that his currency is valid for purchase and exchange wherever he is, and this is the point of safety.” WOW! WOW! WOW! Do you know how powerful this last statement is? He gives a solution the parallel market but in order to dissolve the parallel market you must get rid of the reason for the demand in the dollar. Get it? He gets it! 😊 I can’t imagine that the CBI also does not get it.
Then even more powerful Al-Abidi goes on to say and I quote “It issues a currency whose value is evaluated in gold, not in the currency of others, upon request.” WOW! WOW! WOW! again another powerful statement. So, what is he talking about in this statement of his? He is saying the IQD will be backed by gold not some basket of other foreign reserve currencies and the dinar can them be converted to gold upon demand to the CBI. Folks this is “gold-backed” currency of the dinar we have already talked about and read in many articles about but now we hear it from Iraq themselves that this is the plan.
