STATUS OF THE RV, PART. 1
Oh… this is VERY hard today in writing this Newsletter. Please don’t shoot the messenger! How can I possibly make better all the recent negative news? Oh… you say you are having a hard time accepting reality?
This sobering news I present I hope will wake people up to the reality of what is now happening in Iraq. But it can also change on a dime and probably will. I have to tell you the problems stem mostly from the US and it efforts not to support Iraq in a “real sense”.
It appears they will go a long way to shoot off their mouths about their self-righteousness and humanitarianism but only to protect the US dollar and use their military bases and nothing else.
But there is actually some good news too. Let’s explore both. I have put many of my commentary within the articles in the Articles Section today to shorten this Status of the RV section. I don’t want to write a book… lol.. lol.. lol.
😊 A sobering article in today’s news titled “A BURNING ECONOMIC DEBATE.. IS RAISING THE EXCHANGE RATE THE MAGIC SOLUTION FOR THE IRAQI ECONOMY?”. Sounds like a catchy title but I assure you if you read the full article, it is more negative thoughts about the dinar. The bad news is the deputy director of the CBI talks about lowering the “official” exchange rate to 2,000 – 2,500. I know it says raising in the title, but this is deceiving. They are using the literal sense of raising the numbers from 1310 to 2,000 – 2,500 dinars per dollar for the official CBI rate. They have not yet officially done it only debating it in the CBI.
Why are they contemplating this de-valuation of the dinar?
There is a shortfall of nearly $1.5 – 2.5 billion in oil revenues due to the oil being shut off from regions in Kurdistan in protest from not getting salaries paid correctly and the cost of extraction of the oil not appropriately accounted for in the budget amendment. This occurred during the weeks of ongoing debate to pass Law No. (4) of 2025 “First Amendment to the Federal General Budget Law. The Kurds simply shut off certain wells. Now they want their salaries but the Federal government in Baghdad is telling them they did not pump the oil to meet the budget as in the constitution. So, they are negotiating now how they are going to handle this payment. What they really need is the Oil and Gas Law to solidify these rules on the management of this oil. Kurdistan can not continue to disrupt the government as it has now and in the past every time it has a dispute.
The author pointed out that “Iraq has reserves of nearly 120 billion dollars against a trading source estimated at 103-104 trillion dinars, which gives the Iraqi currency a cover of nearly 170%, which is not a small matter, but the relationship with the dollar requires adjusting the exchange rate to achieve the required balance.”
The author also adds “The real problem that hinders the rise of productive sectors, especially agriculture and industry, is related to the energy crisis, especially electricity, as this crisis leads to higher production costs, which prevents the development of these sectors,”. How many articles have we heard about this damned electric grid for Iraq. Now we see it again and the consequences of not having a secure 24/7 electric grid. How do you run the oil pumping stations, all the Point-of-Sale machines in the marketplace with electricity? How do the banks conduct electronic banking when electricity is unreliable?
So, we found out on Tuesday that is was the US itself that was hindering Iraq in getting this electricity problem solved. Go back and read the article. Don’t they want Iraq to progress? So, talk by the US is cheap and actions speak louder than words. Up to now I am convinced that it has been the US as one of the leading factors in holding back Iraq. I have given you so many examples already of what I mean by this statement. I am really getting sick and tired of all these stupid, ignorant intel gurus out there telling you Iraq and the all the four-letter agencies say they want the RV. No, they don’t and couldn’t give a damn about Iraq. Get it? The US has been the holdup, I assure you of this FACT! A decade ago, the CIA even came out in an article and told us that Iraq would be a detriment to the middle east if it were to develop into a wealthy superpower. They told us that it must be contained. What the hell did this mean? Now we know. Folks it has been 20 years already and still Iraq is not rebuilt, still does not have their currency returned, and not yet reinstated on FOREX?
I find it very funny how investors to the IQD flock to it with grandeur stories of getting rich quick, comparing it to the Kuwaiti dinar reinstatement in the 1990’s. However maybe we should put on our “Big Boy” pants, get real and compare the IQD more appropriately to the Vietnam Dong.
So, let’s also take a look at the Vietnam Dong saga, as an example. Will Iraq have to wait much longer like Vietnam has since Vietnam is still without their normal lower denominations of Dong notes. They have been waiting since the Vietnam War was over in the early 1970’s. It has been over 50 years already for them and still, they use the large three zero notes. Why have they not revalued and did their Project to Delete the Zeros?...