Saturday, February 15, 2025
AMERICA STOPS THE DOLLAR CASH TO IRAQ: WILL THE DOLLAR RISE AGAINST THE DINAR? WITH COMMENTS OF MNT GOAT, 15 FEB
AMERICA STOPS THE DOLLAR CASH TO IRAQ: WILL THE DOLLAR RISE AGAINST THE DINAR?
In a surprising move, reports indicate that the United States has decided to stop sending cash dollars to Iraq, a decision that could have profound effects on the Iraqi economy and its financial market. This shift raises many questions about its impact on the value of the Iraqi dinar, currency markets, and the local banking sector.
(All I can say is its about time! But this is a major change and there will be adjustments that will have to be made.)
What is a cash dollar?
Cash dollars refer to money that is physically sent to Iraq by the United States, usually through banks or other economic mechanisms. This cash flow has played an important role in supporting the Iraqi economy, especially in light of the economic challenges facing the country.
The reason behind the American decision
Sources indicate that the US decision comes in the context of economic and diplomatic pressures on Iraq, which include issues related to the national economy and monetary policies. Some reports also indicate that the United States may seek to limit the use of the dollar in Iraqi financial transactions, in an attempt to enhance the stability of the local currency and reduce dependence on foreign currencies.
Impact of the decision on the Iraqi dinar
The decision is expected to cause significant volatility in the local currency market. The US dollar is one of the main currencies traded in Iraq, and stopping its cash flow could lead to a shortage in supply, which could (initially) push the dollar higher against the dinar.
The impact of the rise on the Iraqi market
The increase in the value of the dollar may lead to higher prices in the Iraqi market, which will exacerbate the burden of inflation and affect the ability of citizens to purchase basic commodities. This may also indirectly affect economic activity, especially in sectors that rely heavily on imports.
(So how can the CBI get the dinar to be worth more than the dollar? Is it time to conduct the in-country RV to just over a dollar? Just asking…)
Are there any solutions?
The Iraqi government will face a major challenge in dealing with these developments. The next phase may require developing new economic and financial strategies to mitigate the impact of sudden changes in currency rates. It is necessary to have a move towards strengthening the Iraqi dinar and diversifying the sources of the national economy away from heavy reliance on the dollar.
Conclusion
In light of these developments, it will be important to monitor the short- and long-term effects of this decision. Iraq needs decisive steps to secure the stability of its national currency and protect its economy from the repercussions of the decision to stop the use of the CASH dollar.
(Remember this is the use of CASH dollar. They will still have electronic transfer from the Feds of dollars to Iraq. But this is a move that I believe is in agreement with the CBI to finally shut down the parallel market for good. This comes on the heals of the issue with Rafidian bank’s continue smuggling of the cash dollars to Iran. This is an amazing article. A “WOW!” article. I still am having a hard time believing it when I read it. The US is finally doing it. They should have cut off the dollars off years ago. We would be much farther ahead now in the RV process. But now it is being done. A good sign for us investors. How will this impact the Iraqi economy? Seems to me the US wants the dinar to rise in value and this may be leading us to something VERY IMPORTANT.)
STATUS OF THE RV , PART. 3 BY MNT GOAT, 15 FEB
STATUS OF THE RV , PART. 3
What else is in the news?
ECONOMIC SECTOR:
😊There are some other very interesting articles in the news channels from Iraq. Meanwhile among all the dollar issues, Iraq is growing and economically it is moving ahead at warp speed. Almost a dozen huge cargo ships are now docked at the port of Faw and unloading.
The country of Great Britian as well as the United States finally decided to come onboard and sink some their investment money in Iraq for a number of various projects. See article titled “BRITISH AMBASSADOR TO NINA: BAGHDAD AND LONDON WILL IMPLEMENT MAJOR PROJECTS AND OUR COMPANIES ARE READY TO INVEST IN IRAQ” . We also hear very good news in the article titled “LAUNCHING THE IMPLEMENTATION OF THE {FURSAN} RESIDENTIAL CITY.. AND AL-SUDANI: IRAQ IS FACING A NEW INDUSTRIAL RENAISSANCE“. Prime Minister Mohammed Shia Al-Sudani launched, today, Wednesday, the executive works for the development project of the Al-Fursan residential city in the Al-Nahrawan area in Baghdad.
ENERGY SECTOR:
😊In the article titled “MP CALLS FOR ENACTING OIL AND GAS LAW TO SOLVE SALARY CRISIS” a member of the Parliamentary Oil, Gas and Wealth Committee Nazim Al-Shabli called on the federal government today, Tuesday, to expedite sending the draft oil and gas law. So, this is another issue that we have been waiting for to get resolved. The lack of a solid law in this area of energy has caused Iraq great pain over the decades. I surely hope they can get this constitutional requirement completed sooner than later.
😊It an article titled “MINISTER OF ELECTRICITY DISCUSSES WITH US CHARGÉ D’AFFAIRES THE DEVELOPMENT OF THE ENERGY SYSTEM IN IRAQ“. On Wednesday, the Minister of Electricity, Ziad Ali Fadhil, discussed with the Chargé d’Affairs of the US Embassy the development of the electricity system in Iraq. You know what this was all about…don’t you? It is a knee-jerk reaction from Iraq, a reaction to the Trump administration cancelling the extension of electricity purchase from Iran. Seems Iraq always needs a kick in the pants to get them moving. The question is will they finally get the grid completed.
During the meeting, the two sides discussed the investment opportunities available in the Iraqi energy sector, the participation of American companies in electricity infrastructure development projects, and the transfer of modern technologies in the field of production, transmission and distribution of electrical energy.”
Then we find out some more TRUTHS about the electric grid issue in article titled “RUSSIA: WE WERE ABOUT TO COMPLETE IMPORTANT ENERGY PROJECTS IN IRAQ, BUT THE EVENTS OF 2004 LED TO THEIR SUSPENSION“. Oh… this is a good one too. In this news we find out from Elbrus Kotrashev, the Russian Federation’s ambassador to Iraq that Russian companies were about to complete important electricity projects in Iraq that began before 2003, especially in the energy sector,
but the painful security events that occurred in 2004 led to the suspension of these projects and the evacuation of more than 900 Russian experts.
He continued: “After that, there was a long interruption in cooperation due to the turbulent security situation, but we want to continue the work and complete it successfully, especially since we are witnessing the suffering of the Iraqi people due to the scarcity of electricity.
Despite these challenges, the Russian ambassador stressed that relations between Baghdad and Moscow, which date back 80 years, are still strong and distinctive at all levels. This could all be good news but didn’t Germany’s Seimans and U.S. General Electric also take on contracts to help resolve the electric grid situation?
Isn’t that what we read? What happened to their efforts? We read Iraq allocated billions just years ago to complete it? Did they also pull out due to terrorists attacks? Just asking…..
TARGETING IRAN, US TIGHTENS IRAQ’S DOLLAR FLOW, CAUSING PAIN WITH COMMENTS OF MNT GOAT, 15 FEB
TARGETING IRAN, US TIGHTENS IRAQ’S DOLLAR FLOW, CAUSING PAIN
BY QASSIM ABDUL-ZAHRA AND ABBY SEWELL
February 2, 2023
BAGHDAD (AP) — For months, the United States has restricted Iraq’s access to its own dollars, trying to stamp out what Iraqi officials describe as rampant money laundering that benefits Iran and Syria. Iraq is now feeling the crunch, with a drop in the value of its currency and public anger blowing back against the prime minister.
The exchange rate for the Iraqi dinar has jumped to around 1,750 to the dollar at street exchanges in some parts of the country, compared to the official rate of 1,460 dinars to the dollar.
In Baghdad, exchange houses were closed on Thursday, while the Kurdistan Regional Government banned exchange companies in Sulaimaniyah from making transfers.
Mustafa Al-Karawi, a member of the parliamentary budget committee, told the state news agency that the Central Bank “must meet the requirements of the Federal Reserve to…reduce the scarcity of hard currency in the country.” He said new domestic procedures would be rolled out to improve access to currency, while a delegation of Iraqi officials will travel to the U.S. for negotiations next Friday.
The devaluation has already sparked protests. If it persists, analysts said, it could challenge the mandate of the government formed in October after a yearlong political stalemate.
The dinar’s deterioration comes even though Iraq’s foreign currency reserves are at an all-time high of around $100 billion, pumped up by spiking global oil prices that have brought increasing revenues to the petroleum-rich nation.
But accessing that money is a different story.
Since the U.S. invasion of Iraq in 2003, Iraq’s foreign currency reserves have been housed at the United States’ Federal Reserve, giving the Americans significant control over Iraq’s supply of dollars. The Central Bank of Iraq requests dollars from the Fed and then sells them to commercial banks and exchange houses at the official exchange rate through a mechanism known as the “dollar auction.”
In the past, daily sales through the auction often exceeded $200 million per day.
Ostensibly, the vast majority of the dollars sold in the auction are meant to go to purchases of goods imported by Iraqi companies, but the system has long been porous and easily abused, multiple Iraqi banking and political officials told The Associated Press.
U.S. officials confirmed to the AP that they suspected the system was used for money laundering but declined to comment in detail on the allegations or the new restrictions.
For years, large quantities of dollars were transferred out of the country to Turkey, the United Arab Emirates, Jordan, and Lebanon through “gray market trading, using fake invoices for overpriced items,” a financial adviser to the Iraqi prime minister said, speaking on condition of anonymity because he was not authorized to discuss the matter publicly.
The inflated invoices were used to launder dollars, with most of them sent to Iran and Syria, which are under U.S. sanctions, leading to complaints from American officials, he said.
In other cases, the currency is smuggled across land borders under the protection of armed groups that take a cut of the cash, said Tamkeen Abd Sarhan al-Hasnawi, chairman of the board of Mosul Bank and first deputy of the Iraq Private Banks League. He estimated that as much as 80% of the dollars sold through the auction went to neighboring countries.
“Syria, Turkey, and Iran used to benefit from the dollar auction in Iraq,” he said.
A member of one of Iraq’s Iran-backed militias, who spoke on condition of anonymity because he was not authorized to speak publicly on the subject, said the majority of Iraqi banks are owned indirectly by politicians and political parties that have also used the dollar auction to their benefit.
Late last year, the Fed began imposing stricter measures.
Among other steps, at the request of the U.S., the Central Bank of Iraq started using an electronic system for transfers that required entering detailed information on the intended end-recipient of the requested dollars. One hundred Central Bank employees were trained by the Fed to implement the new system, the prime minister’s financial adviser said.
“This system started rejecting transfers and invoices that used to be approved by the central bank,” he said. “Around 80% of transactions were being rejected.”
The amount of dollars sold daily in the auction plummeted to $69.6 million on Jan. 31, from $257.8 million six months earlier, according to Central Bank records. Far fewer of the dollars are going toward buying imports as well, down to around 34% from 90%.
Even when transactions are approved, it takes banks up to 15 days to get the funds rather than two or three days, Hasnawi said.
Unable to get dollars at the official price through banks, he said, traders turned to the black market to buy dollars, causing the price to rise.
In November, the Central Bank of Iraq added four new banks to the list of those banned from dealing in dollars. Two U.S. officials confirmed that the Fed requested the four banks be blocked because of suspected money laundering. They spoke on condition of anonymity because they were not authorized to comment on the case.
A spokesperson for the New York Fed declined to discuss the specific measures taken with regards to Iraq. But the Fed said in a statement that it enforces “a robust compliance regime” for the accounts it holds. The statement said that this regime “evolves over time in response to new information, which we gather in the regular course of monitoring transactions and events that may impact an account and in communication with other relevant U.S. government agencies.”
The system of keeping Iraq’s oil revenues at the Fed was originally imposed by U.N. Security Council resolutions after the 2003 ouster of Iraq’s Saddam Hussein by the U.S-led invasion. Later, Iraq chose to maintain the system to protect its revenues against potential lawsuits, particularly in connection to Iraq’s 1990s invasion of Kuwait.
(We will need Exec Order 13303 to end for this DFI fund to be transferred to Iraq and out of the hands of the U.S. Feds. This is key and we all need to watch for this move. Will Trump extend it in May 2025? )
The new U.S. restrictions come at a time of increased tensions between the U.S. and Iran. Negotiations over a nuclear deal are floundering. Washington has imposed new sanctions and condemned Iran for cracking down on protesters and providing drones for Russia to use in Ukraine.
Also, in Iraq, allegations came to light in October that over $2.5 billion in Iraqi government revenue was embezzled by a network of businesses and officials from the country’s tax authority.
The case “brought (U.S.) attention to the scale of corruption in Iraq” and how the corruption can benefit Iran and other parties hostile to the U.S., said Harith Hasan, head of the Iraq unit at the Emirates Research Center, an Abu Dhabi-based think tank.
The new Iraqi prime minister, Mohammed Shia al-Sudani, who came to power via a coalition of Iranian-backed parties, does not have a strong relationship with the U.S. that could have enabled him to soften the implementation of the new financial measures, Hasan said.
Al-Sudani has downplayed the current devaluation as “a temporary issue of trading and speculation.” He replaced the Central Bank governor and instituted measures intended to ensure a supply of dollars at the official rate.
Al-Hasnawi said the government’s recent measures will not stop the financial bleeding. If the current situation persists, he said, “within one year, most banks will declare bankruptcy” and there is likely to be mass civil unrest.
“This U.S. pressure impacts the Iraqi street in a clear manner, and we do not see clear solutions until now,” he said.
STATUS OF THE RV . PART. 2 , BY MNT GOAT, 15 FEB
STATUS OF THE RV . PART. 2
What will this lead to?
This move will most definitely bring a short-term rise in the dollar in Iraq over the dinar. It is hoped that it will finally break the parallel market once and for all and the dinar will rise over the dollar.
Do you remember I kept asking where in hell is the black market getting all these dollars when Iraq had already de-dollarized? So, now we witnessed the articles on the corruption still from the Rafidian bank in selling dollars and they seem to end up in the hands of Iran.
Well, now there will be only “electronic dollars” and the volatility and risks are mitigated as these dollars can now be fully traced to their destination. No more pan-handling the CASH of the US dollar.
Our investment in the dinar:
This move, although it looks like it will hurt the Iraqi economy initially, will actually help the country once they can get over the hump of no more CASH dollars. They always told us they needed to implement electronic transfers and were doing so. US dollars will still flow to Iraq from the US, not in cash format anymore. Remember this money is from the sale of oil in petro-dollars and belongs to Iraq in the DFI fund in NYC.
The Trump administration hopes this move will shut down all cash flows of dollars to Iran. This is the main reason for this move. But also there is another reason. This is part of the heavy sanctions it is imposing on that country.
As far as our investment goes this is only good news for us as we have been waiting for these plane loads of CASH to stop. These Trump sanctions on Iran are only forcing the issue sooner than later. Get it?
The CBI is over cautious and slow to act. Think about what they were doing. On one hand the US kept harping about Iraq funding Iran to circumvent the US sanctions yet for two decades they were flying plane loads of $100 bills to Iraq. Did this make any sense?
Should these shipments of dollars have stopped way before now? You mean to tell me that the US govt didn’t know this money was being stolen? Did many of these US politicians have their hands in all of this to fill their own pockets for themselves or for the good of Iraq?
I highly encourage everyone today to go listen to the Julie Green’s daily prophetic word. The prophecy is called “Everything the Swamp was hiding is coming out in the open ”. It is in my political section of the Newsletter today. Folks these cash dollars were massive corruption from the US politicians. This is all going be exposed.
I only hope everyone remembers the prophecy and this will regain you trust in God and what he is doing for your nation. I don’t anyone EVER to ask me again what is the holdup of the RV.
If you don’t know what is holding up the IQD revaluation by listening to her prophecy and by my dialogue today, you are just listening to the wrong people who are messing with your mind. You have to want to learn and understand. I can’t force it upon you.
I only hope all my blog readers can see the massive corruption by the prior US administrations (Bush, Obama and Biden) in the handling of Iraqi oil revenues. It was literally a free-for-all disguised as helping Iraq. But was it really?
Look what it has done to the dinar. Oh.. these politicians are good at lying and deceiving the public. You want to know why we still sit here waiting for the RV? Well… I keep telling you why. Are you listening?
The Trump administration seems to be moving quickly on many of these long-standing issues facing the corruption in the U.S. too. Remember I told you that it was only a couple weeks ago that he requested the file on Iraq. So, I am not surprised that they moved so quickly on this issue with Iraq.
I know many of you are thinking my negative news from Tuesday is going to take years and years to accomplish. Can you see now this is not going to take years. Yes, the currency reform process is on the move again.
This recent move is a sign that Iraq is now moving into yet a new stage in the process of currency reform. January 2023 was a big shift to the new currency platform, then I like it, how about you? It had to be done and we were waiting for it.
I told everyone months ago that this literal paper CASH flow had to stop. My contact in the CBI told us, remember? It was too risky and left Iraq vulnerable to corruption. Let’s hope this ends the parallel market altogether in Iraq. It almost has to.
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