Monday, August 14, 2023
Coffee with MarkZ 08/14/2023
"BUDGET RELEASE WILL COUNTER DINAR DEPRECIATION", 14 AUGUST
Government spokesperson says budget release will counter dinar depreciation
Shafaq News/ The Iraqi government hopes that the scheduled release of budgetary funds next month might trigger currency stabilization, a government spokesperson said on Sunday.
This comes amidst an undercurrent of currency speculators leveraging strategies with origins tracing back to the 1990s to manipulate the foreign currency market.
Government spokesperson Basim al-Awadi, in a statement to Shafaq News Agency said, "The budget's release ensures the availability of funds, raising liquidity channeled towards ministries, general directorates, independent entities, and all state institutions."
"Numerous financial advisors in the government anticipate that the inflow from the budget could serve as a significant catalyst in decreasing the dollar exchange rate substantially."
He attributed the recent hike in exchange rates to the decision of barring 14 Iraqi banks from U.S. dollar transactions, observing a detrimental reflection of this move in the market. This, coupled with the savvy performance of currency speculators, created a volatile financial landscape. "These currency speculators possess extensive expertise since the 1990s, operating with remarkable dexterity and subterfuge," he added.
"For the past five months, our measures have been transparent. While the exchange rate oscillates, the government remains resolute in its strategies, operating in tandem with the Central Bank's blueprint."
Contradicting government optimism, economic experts speculate that the dollar rate could stabilize in parallel markets at levels surpassing 150,000 dinars for every 100 dollars. Despite recent endeavors, the Central Bank of Iraq has struggled to rein in the parallel currency market and recalibrate the exchange rate to the official figure of 1,320 dinars per dollar.
Al-Awadi concluded, emphasizing the government's legal adherence, "We deal with dollar speculators according to the law, necessitating legal measures spearheaded by economic security and state agencies in this direction."
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Al-Sudani announces dialogues to determine cooperation with the international coalition: We do not need foreign combat forces
The Prime Minister of the Armed Forces, Muhammad Shia’ al-Sudani, announced on Monday that advanced dialogues would determine the form of future relationships and cooperation with the United States-led international coalition, emphasizing that foreign combat forces were unnecessary.
During his meeting, the Agency received a statement from leaders and commanders of the armed forces who helped defeat ISIS and liberate Nineveh Governorate from its control.
The Armed Forces’ commitment to professionalism, constitutionalism, legalism, development, security, peace, and decent life for all Iraqis has been reaffirmed by their Commander-in-Chief. The Armed Forces will continue to follow their professional, constitutional, and legal path in the process of development, security, and civil peace, ensuring the protection of a decent life for all Iraqi people throughout the country.
Al-Sudani stated that the battle to liberate Mosul was important, especially since it was believed that the mythical state would win and Iraq would fall.
He noted that ISIS’s deviant ideology was planned in closed circles and intended to prevail in the region, but the religious reference represented by Sayyid Ali al-Sistani and the sacrifices of Iraqis aborted the plot.
“Our battle with this terrorist group was a battle between truth and falsehood. Know the truth and know its people,” the Prime Minister said. The world recognized Iraqis as the truth, and ISIS as the absolute falsehood.
He called for preserving the work of the security establishment in accordance with the law and constitution. All political forces must make this commitment within the political agreement that formed this government, which was voted on by the House of Representatives.
He emphasized that Iraq does not require foreign combat forces anymore and they are having discussions to decide on the future relationship and cooperation with the international coalition.
After the Iraq war, sectarian violence and division prevailed, but now Iraqis are more united than ever before according to him.
Al-Sudani emphasized the importance of reviewing all plans and preparations to maintain readiness for any potential terrorist activity. He stated that the battle facing them is one of stability, development, and prosperity, which is not an easy task.
The prime minister advised the armed forces’ commanders to prioritize the welfare of the families of the martyrs. He emphasized the importance of all officials, including the speaker, doing the same. He also emphasized that every military rank is crucial in ensuring institutional security and achieving victory while maintaining security.
He emphasized that security and stability are crucial for citizens and the government. He added that development must prioritize maintaining stability and upholding the law, creating an environment where state institutions and citizens can carry out plans and policies related to services and development.
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DINARLAND UPDATE, 14 AUGUST
Sheila
LATEST RATES ESTIMATED: QUOTES THE ANTICIPATED OPENING RATES BECAUSE WE DON’T KNOW HOW HIGH THE RATES MAY GO BASED ON FOREX AND OR YOUR ABILITY TO NEGOTIATE A HIGHER RATE — MOST RECENT ANTICIPATED OPENING RATES — DONG .47…DINAR 3.81…[via PDK]
Question: Is it true dong could go as high as $3.00 rate.
MarkZ Answer: There are a lot of rumors that the dong could go at $3.00 per dong. When I first started I was hoping for .36 cents. I was told recently about $2.25…but as of late…many of my banking folks say about $3.00. This would be just huge.
New exchange rate equals sovereignty…it’s not a secret. Everybody knows.
It sure seems like the key to everything is in the relationship between Baghdad and Kurdistan because that relationship agreed to open up the budget, agrees on HCL, agrees on Article 140, agrees on the oil right and without a doubt agrees with everything concerning monetary reform. They have exemplified that to Sudani.
"THE DINAR IS IN THE CENTRAL RECOVERY ROOMS" ANALYSIS OF MILITIAMAN, 14 AUGUST
MilitiaMan (KTFA)
If you’re trying to buy widgets at 1310 dinar to a dollar you can’t get very many widgets…Once they change the value of their currency to reflect the Real Effective Exchange Rate things become a lot cheaper for Iraq especially if they have the backing to prove they have…oil, gas, natural resources, tourism – all those things…they can easily meet a similarity to Kuwait. They’re a bigger country, they have more assets…They have everything going for them…they’re definitely undervalued at this time.
The Oil and Gas Law…they keep saying they’re going to have things done. I believe these guys have already done almost all the leg work…
Article quote:
“they’re in very advanced steps in accelerating the legislation of the oil and gas law…”
They’re basically saying we’re going to approve the law end of story. That’s phenomenal…
Article:
“The dinar is in the central recovery rooms.. and accusations against the Americans of creating crises”
Quote:
“…The National Currency requires elaborate measures to maintain strength in value internally and externally, on the basis of the measures to be taken will activate the private sector and expand the import and reduce exports.”
I may have this wrong, but, to build out the country, they need to do just as it is being stated. They need to take extreme measures to get the imports increased and the exports reduced. Why? Because, it is far cheaper to re-build the country with strength in the national currency. It is the foremost item that is now needed.
" Global Currency Reset Judy Note", 14 AUGUST
Global Currency Reset Judy Note:
- On Tues. 1 Aug. the first wave of liquidity started.
- On Thurs. 3 Aug. evening FedNow was activated as the EBS merged with the Global Financial System.
- On Sun. 6 Aug. Banks synched up with the Central Bank of Iraq, Iraq shut down any news going out of the country.
- By Mon. 7 Aug. the Iraqi Parliament had approved their budget with the new Iraqi Dinar Rate in it and published it in the Gazette the next day Tues. 8 Aug.
- On Wed. 9 Aug. the new Iraqi Dinar Rate was believed to have revalued at a 1:1 with the USD and then began trading up on the Forex back screens.
- On Thurs. 10 Aug. the direct payment system was activated to send funds internationally person to person.
- Tier 4b should be notified to receive appointments to exchange foreign currencies and redeem Zim bonds within 48 hours of Bond Holders.
- The Gold/asset-backed USN was expected to be announced between Aug.18-21, or most certainly at the BRICS Summit in Johannesburg South African Aug. 22-24.
- Russia will launch central bank digital currency tests with 13 banks next week.