MZ: When the bond holders get their money …we are very close!! @DINARREVALUATION #iraqidinarinvestor

 

The first of its kind in the region and Iraq as a whole.. Inauguration of an international financial and commercial center in Sulaymaniyah, 22 FEB

 The first of its kind in the region and Iraq as a whole.. Inauguration of an international financial and commercial center in Sulaymaniyah

On Thursday, an international financial and commercial center was inaugurated in the city of Sulaymaniyah. It is the first of its kind in the Kurdistan Region and the rest of Iraq in terms of specialization. Employees considered this a step to localize their salaries and end the crisis that has been ongoing for years .

Sulaymaniyah Governor, Haval Abu Bakr, said in a press conference attended by Shafak News Agency, during the opening ceremony of the center, "This center will provide a suitable environment for banks, financial markets and investment companies to work according to the legal frameworks approved in Iraq and the region ."

He added, "All banks, stock markets, financial and commercial institutions can establish branches within this center, according to the controls issued by the specialized authorities in the federal government and the region," indicating that "this step constitutes a qualitative transformation in the financial and commercial sector of Sulaymaniyah, which enhances its position as an economic hub at the level of Iraq ."

In another context, a group of protesting teachers, who had previously demanded that their salaries be transferred directly from Baghdad, welcomed the decision to open two branches of the Central Bank in the region, and considered this step a prelude to implementing the Federal Court’s decision issued on February 21, 2024, which stipulates the “localization” of the salaries of the region’s employees through the federal government .

However, this issue is still controversial among political circles, as some believe that transferring salaries to Baghdad aims to undermine the regional government and influence its authority, while others consider it a necessary solution to end the crisis of delayed salaries that has been ongoing for more than ten years .

In this context, the governor of Sulaymaniyah explained that "the mechanism for distributing salaries has not yet been decided," noting that "discussions are still ongoing about whether salaries will be distributed through the regional government as in previous years, or whether they will be transferred directly from Baghdad . "

While the opening of the financial and commercial center in Sulaymaniyah is an important step to boost economic activity, resolving the issue of salaries will remain an influential factor in financial and living stability in the region .

For more than a decade, Kurdistan cities have been suffering from a crisis of delayed salaries due to financial disputes between Baghdad and Erbil, which has prompted some groups, such as teachers and employees, to demand that their salaries be paid directly from the federal government .

On February 21, 2024, the Iraqi Federal Court issued a decision to localize the salaries of the region’s employees, but it has not been implemented yet due to administrative and political complications. The opening of the financial and commercial center in Sulaymaniyah constitutes a turning point in the economic scene, amidst the ongoing controversy over the future of financial management in the region . link

EXCERPTS FROM MARKZ, 22 FEB

 EXCERPTS FROM MARKZ

Member: any news on the Venezuelan Bolivar?

MZ: Still hearing it’s in the first basket. 

Member: (From dinar Guru) Mnt Goat :  Remember the CBI told us that January is the most optimistic to revalue the dinar with any substantial change in value. Why? It is because of the accounting practices and it is MOST convenient to begin a new fiscal year clean with a new rate. Remember we may be already into February but we know they just passed the amendment to the budget law and so they have not yet even opened the 2025 budget. So there still can be a rate change coming...

MZ: I have to agree with this one and there could definitely still be a rate change coming.

FNU LNU : There is a hold on the RV for an unspecified amount of time! @DINARREVALUATION #iraqidinar

 

FINANCE MINISTRY DENIES, HOURS AFTER DOCUMENT LEAK, ANY “MAJOR DEFICIT” IN SALARY FUNDING, 22 FEB

 FINANCE MINISTRY DENIES, HOURS AFTER DOCUMENT LEAK, ANY “MAJOR DEFICIT” IN SALARY FUNDING

(Kurdistan just had major oil wells shut off for almost 3 weeks. That was the cost of their salaries that normally would be sent to them by the Baghdad government. What the hell do you think is going to happen? OF course there is going to be shortfall in the salaries. Of course this will have an impact. The budget, which relied on this revenue of this $2.5 billion dollars is now short.

What do you think will happen? This again is why they desperately need the Oil and Gas Law. You can see why the Kurds pay games in getting this law passed. It always gives them leverage instead of something to complain about and hold back oil. I call this a “dysfunctional” government. This law should be rock solid and passed a decade ago or more.)

The Ministry of Finance denied the existence of a liquidity crisis just hours after the spread of an official document issued by the ministry confirming that there is a “large deficit” in financing salaries, after months of denial and refutation of reports regarding the financial situation in the country.

According to representatives and specialists, the “US sanctions” on banks have exacerbated the crisis, in addition to the high debts and the size of salaries that have doubled significantly over the past two years.
The Iraqi Ministry of Finance announced yesterday, Tuesday, the start of financing the salaries of state employees for the current month of February.

According to a statement by the ministry, “the Accounting Department of the Ministry of Finance is beginning to finance the salaries of state employees for the current month of February, in accordance with the approved financial procedures and allocations allocated within the General Budget Law.”

The ministry affirmed “its full commitment to disbursing the dues of employees, retirees and those covered by the social protection network according to the specified timetables, without any delay or shortage in funding.”
The ministry also categorically denied, according to the statement, the existence of any financial deficit affecting salary expenses, stressing the continuation of work to ensure the stability of the financial policy and the provision of dues according to the approved plans.
Just hours before the statement, an official correspondence dated February 9 was leaked to the media on Tuesday, indicating a “major deficit” in securing salaries, in an official letter between the Ministry of Finance and the Prime Minister’s Office, signed by Finance Minister Taif Sami, regarding the permanent appointment of meter readers’ contracts.

According to the official letter, the Iraqi Ministry of Finance responded to the Prime Minister’s request to appoint a new batch of permanent contractors to the Ministry of Electricity.

It stated: “If the inclusion of a text regarding the permanent appointment of meter readers’ contracts in the Ministry of Electricity is approved, this will lead to the state’s general treasury bearing additional financial burdens, and will lead to the rest of the ministries being asked to do the same, at a time when the treasury is suffering from a major deficit in financing salaries, pensions, and the social safety net.”

In February, the parliamentary finance committee confirmed that the salaries of all employees and retirees for the year 2025 are fully secured.
Member of Parliament Rafiq Al-Salihi explained that there are guarantees from the government in this regard, calling on official bodies to confront the rumors.

Another member of the committee, Jamal Koujar, said that the salaries of all employees, retirees, social welfare and other categories are fully secured during the current year, and there are no concerns about them, as rumored. Press reports had quoted other MPs and officials warning of a “liquidity crisis” and saying that “the treasury is empty.”

Last December, the head of the parliament’s finance committee, Atwan Al-Atwani, said that Finance Minister Taif Sami confirmed that employees’ salaries are secured through 2025.

The Ministry of Finance had denied, at the end of last year, that there was a shortage of liquidity, stressing that it was committed to the process of financing salaries.
The ministry said in a statement: “The information circulating on social media claiming that it has apologized for disbursing state employees’ salaries this month due to a shortage of liquidity is completely incorrect and has no connection to reality.”

It stressed that it is “fully committed to the process of financing employees’ salaries, as the Accounting Department has financed the salaries dues of ministries, governorates and non-affiliated entities for the current month of December according to the schedules specified for each of them, and it is continuing its efforts to ensure the continuity of disbursing financial dues without any delay or interruption.”

The ministry called on all media outlets and social media users to “exercise accuracy and caution in transmitting information, and to verify the sources of news before circulating it,” noting that “its doors are open to respond to any inquiries through official channels.”

Bankruptcy…
Since Donald Trump, the US President, won the elections last November, warnings have escalated of “economic sanctions” that could paralyze the financial situation in Iraq.
Sources for (Al-Mada) revealed that the US is closely monitoring a “plan to finance” the Lebanese Hezbollah with Iraqi funds (in US dollars), for the party that is suffering from a severe crisis in securing salaries.
The Central Bank of Iraq had denied the news circulating about sanctions against 5 new Iraqi banks accused of smuggling dollars to Lebanon and Iran.

Member of the Parliament’s Finance Committee, Mustafa Al-Karaawi, believes that any sanctions issued against banks will cause a problem in the flow of dollars, and thus halt domestic economic activity.

Al-Karaawi confirmed, in televised statements, that “in the event of obstacles or problems in the issue of currency conversion between the Iraqi dinar and the dollar, a problem may arise in supplying the currency to the Ministry of Finance.”
The Central Bank is working, through ongoing negotiations with the United States, to develop the financial and banking system in the country, according to an official statement.

Mishaan Al-Jubouri, a former MP, expects that US sanctions on the Iraqi banking system “will escalate.” Al-Jubouri said in a tweet on “X” that US sanctions on banks and “factions” are not just threats “but seem inevitable in the coming months.”
Member of the Finance Committee Mustafa Sand previously warned of a severe liquidity crisis in Iraq.

He said in statements that current indicators do not provide clarity on whether “salaries are secured or not?” He stated that “what is in the government’s hands is not only zero, but negative, as we face a deficit of 29 trillion dinars required to pay debt installments and interest during this year alone.”

He added: “Last year, we did not pay a single dinar of internal obligations, which means that we face doubling interest, and we will not obtain new loans easily, as the Ministry of Finance and banks will work to reschedule the debts for the year 2026, which places the responsibility on the next government.”

Amid this crisis, Hanan Al-Fatlawi, a representative of the State of Law, wondered in an official letter about the reasons for increasing the salary of the President of the Republic from 20 million to 27 million per month? The government paid 81 trillion dinars in salaries and subsidies within the safety net during the past year, until last November, according to economics professor Nabil Al-Marsoumi, in a series of posts on Facebook.

Al-Marsoumi said that the Central Bank of Iraq revealed an increase in Iraq’s internal debt by 2%.9% to reach 81 trillion dinars for the month of November 2024, compared to the previous month, which reached 78.77 trillion dinars. According to Al-Marsoumi, the Central Bank should have disclosed the annual, not monthly, growth rate of domestic debt, which rose from 70.6 trillion dinars in 2023 to 83.049 trillion dinars at the end of 2024, at an annual growth rate of 17.5%.

(If you are pumping more oil than the cost of extraction goes up. Also Iraq has to rebuild its infrastructure and that too is a cost. This is actually a good sign not bad. But remember that Iraq can not take on debt that exceeds a percentage of the CBI reserves. If they follow this law there is no way they can ever go broke and crash the economy.)

The Minister of Reconstruction, Benkin Rikani, had posted a provocative comment on social media about the liquidity crisis in Iraq. Benkin responded to a question from a commenter on his Facebook page, who asked him to pave a street in eastern Baghdad, in colloquial language: “By God, we have no money.”

Coffee with MarkZ and Mr. Cottrell. 02/21/2025

 Coffee with MarkZ and Mr. Cottrell. 02/21/2025

Feb 21

Coffee with MarkZ and Mr. Cottrell. 02/21/2025

MarkZ  Update- Some highlights by PDK-Not verbatim

MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context.  Be sure to consult a professional for any financial decisions

Member: TGIF and hello to all fellow RV’ers

Member: GM Mark, Mods and Dinarians! Is this our weekend?!

Member: This weekend would be perfect for an RV……

Member: Any minute would be perfect ….imo…..just do it please!

Member: Someone said that the RV won’t happen until Elon goes to fort Knox to see about the gold… I don’t know if that’s true or not

Member: I have a feeling they are already investigating Ft Knox…..Can’t wait to hear what they find. 

Member: There's 2 scenarios with Fort Knox, ,maybe 3….if the fort is stacked with gold vs. empty of Gold vs. just missing some gold ?

Member: or full of lead bars painted gold?

MZ: “Trump says we are going into Ft. Knox to make sure the gold is there” I think this may be the perfect way to handle this is to take Ron and Rand Paul with them…they deserve their day in the sun. 

MZ: Trump also said “The gold is the property of the American people. I sure hope it is still there?”

Member: No gold= fiat crash

MZ: Exactly. 

Member: Hey Mark did you see the article posted on CBI yesterday stating they gave licenses to 3 currency exchange companies?

MZ: Also the CBI site is having many issues. Looks like it’s going through a major upgrade? Are they getting ready for something?

MZ: We do know for a fact that the Iraqi Parliament Speaker if the house is in Washington DC and meeting with the Iraqi division and the US department of state. Is it RV related-We don’t know? My guess is it has to do with removing Iranian influence as quickly as possible. And, being energy independent from Iran. 

Member: (From dinar Guru) Mnt Goat :  Remember the CBI told us that January is the most optimistic to revalue the dinar with any substantial change in value. Why? It is because of the accounting practices and it is MOST convenient to begin a new fiscal year clean with a new rate. Remember we may be already into February but we know they just passed the amendment to the budget law and so they have not yet even opened the 2025 budget. So there still can be a rate change coming.. .

MZ: I have to agree with this one and there could definitely still be a rate change coming.

MZ:  “New reforms planned for the banking system of Iraq”  They are still updating and upgrading it. 

MZ: “ Iraq and UN discuss international cooperation mechanisms to recover smuggled funds”  Remember you have to clean up the past so you can reset …we are watching it happen 

Member: Same with the US…..The Trump team is auditing everything …cleaning up corruption. We will be very happy that things will be safe and secure when we have exchanged.

Member: Old proverb. “You shouldn’t put new wine in an old wineskin” 

MZ: Many nations around the world right now are cleaning up past corruption and grift. Getting ready to reset their systems. 

MZ: “ Doug Casey on the coming monetary reset and Trump’s impact on gold and the dollar”  Doug even gives some insight in to past financial resets . there are many examples in history of past resets of our financial system. 

MZ: The biggest reset was in 1933 when Roosevelt confiscated our gold from US citizens at $20.50 an ounce and revaluing gold at $35 an ounce.  There was a reset in 1913 when the federal Reserve took over. 1971 was definitely a reset when Nixon took us off of the Gold Standard. At some point all resets go back to having precious metals backing the currency. 

Member: Gold is the only Constitutional "money" the rest is just "currency" not money. There is a vast difference between money and currency!

MZ: “ Despite Iranian denials . Washington delegation to arrive in Baghdad soon to start negotiations with Tehran”  Iraq is setting up a negotiating table for a Iran and US “sit down” . Get ready to watch peace suddenly break out across the globe. 

Member: Any news from historic bond holders or redemption center staff?

Member: Are your redemption people working this weekend?

Member: My bank is doing a server maintenance on sat 22, thru Monday. I’ve never seen them do that before. Don’t know if it means anything

Member: The Wells Fargo Local Branch Manger Left For The Wealth Manager Position At The Incline ($) Village Wells Fargo Branch. Something Big Us Coming, & Soon

Member: Really praying that taxes go away before April 15th this year. 

Member: Abolishing the federal income tax will save families roughly between $5,000 to $20,000 a year depending on earned income. But the real savings comes from the domino effect this will have on everything

Member: any news on the Venezuelan Bolivar?

MZ: Still hearing it’s in the first basket. 

Member: I wonder -could the doge checks going out to taxpayers be a good cover to release the rv? Everyone getting $$ and that could distract??

Thanks Mark, Mods, and Mr. C…..see everyone tomorrow AM.

Mod: NO PODCAST TONIGHT…. THANK YOU ALL FOR JOINING. HAVE A BLESSED NIGHT! SEE YOU ALL IN THE MORNING FOR COFFEE @ 9:45 AM EST ~ UNLESS BREAKING NEWS HAPPENS!