“JUST REMEMBER IN NOVEMBER!”
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April 30, 2024 Mnt Goat News Brief
Hi Everyone,
Oh Boy!…Oh Boy! Do I have some “WOW!” news to share with you today.
GIVE A GIFT TO MNT GOAT
I decided to allow everyone to give a Free-will GIFT to Mnt Goat on PayPal if you so desire but only if you so desire and can afford it. Please don’t leave it up to someone else to help, you too can help. Here is the link below:
“This is a Mnt Goat GIFT”
Going on over 10 years now, I have taken my own time to research and document findings about the revaluation and reinstatement of the Iraqi dinar. At this time more than ever I do not need to be doing this. I do it out of charity and love with understanding that all of us do NOT have the time to go do our own research. We are busy with our jobs, our daily lives and raising our children. So, I try to help out. But remember I too am very busy in my daily life too. I am no different, yet I take the time out each day to complete the task of research and composing my newsletter for you. This Newsletter will not survive without your ongoing support. There are more than 20,000 followers and readers on my blog. Why do the same handful only help out? Do the rest not want or care about the news I bring?
I feel we have been in a critical period of the currency reform program since January of last year 2023. Now we are in a “vital” period. Like a game of chess, we are now in a waiting mode for the Central Bank to make their next move and rollout the second-rate change in-country to just over a dollar, that we were told is coming. Since they told us they now control the parallel “black” market, and that negotiations were successful in lifting sanctions on many Iraqi banks.
If you have gifted already, as I can see many have recently…. a heart-felt Thank YOU!
Luke 3:11
He answereth and saith unto them, He that hath two coats, let him impart to him that hath none; and he that hath meat, let him do likewise.
Did you miss the last couple Newsletters? Click here to go to Mnt Goat Archives.
More news….
ANALYST: AL-SUDANI IS THE FIRST PRIME MINISTER TO WORK AROUND THE CLOCK
Political analyst Alaa Al-Azzawi confirmed today, Thursday, that Prime Minister Muhammad Shiaa Al-Sudani is considered the first prime minister to work around the clock, and his closeness to citizens increased his popularity, and Iraq has never seen a prime minister this close.
Al-Azzawi told the Iraq Observer Agency that the Prime Minister was on an official visit last week in the United States of America, and the world saw how he wandered here and there and the meetings and agreements that were concluded, as well as the meetings with senior officials in the United States of America, and when he returned to Iraq at the beginning of this week, he received on Monday, Turkish President Recep Tayyip Erdogan, in addition to holding intensive dialogues, and not least, Al-Sudani’s visit to Anbar Governorate yesterday, Wednesday, and his meeting with department directors.
He pointed out that this feeling and belonging in closeness to the citizen raised the level of trust that the citizen lost during two decades, in addition to the presence of general satisfaction with the general policy of the ministerial cabinet, which is considered the first government close to the people.
More news….
IRAQ TALKS ABOUT PRODUCING ONE MILLION LITERS OF GASOLINE DAILY
Baghdad – Iraq Today:
The Iraqi Ministry of Oil announced the completion of the project to operate the Azmra unit in both Basra Refinery with a capacity of 1.3 million liters per day, and the Central Refineries Company in Dora with a capacity of 750 thousand liters per day.
The Undersecretary for Refinery Affairs, Hamed Younis, said in a press statement that “the operation of the Azmra unit in the Middle Refineries Company contributes to maximizing and improving inventory, adding a production capacity of 750,000 liters per day, in addition to dispensing with the import of high-octane gasoline by 1.5 liters per day.”
Younis stressed the keenness of the federal government and the ministry to “increase refining capacity production rates and improve production in national refineries to reach self-sufficiency and gradually shift to exporting them to global markets, according to the Arab World News Agency.”
(Well…well…its about time that Iraq got these refineries up and running. Lots of article about this effort over the last ten years. 😊 Did I hear of another export product here?)
More news….
A SPECIALIST IDENTIFIES THE REASONS FOR THE DECLINE IN THE VALUE OF THE DOLLAR AGAINST THE IRAQI DINAR
The official spokesman for the currency market in Sulaymaniyah, Jabbar Gorran, revealed today, Monday, the reasons for the decline in the value of the US dollar against the Iraqi dinar, pointing to the importance of the visit of Iraqi Prime Minister Muhammad Shiaa Al-Sudani to the American capital, Washington.
(It’s called “speculation”.)
Kuran told Shafaq News Agency, “The main reason for the decline in the value of the dollar against the dinar is the impact of the Sudanese visit to Washington, which led to an increase in American support for the Iraqi economy, and the optimism of the American parties regarding infrastructure and government reforms in the banking system in Iraq.”
More news….
FIGHTING TERRORISM WITH TERRORISM- NOW WHERE DO YOU GO?
Information/Report
When Iraq is mentioned almost ten years ago, the manifestations of fear, terror, murder and bombings are criticized in the world mentality, due to the American-Zionist terrorism that gathered all the terrorists of the world and brought them into the country to eliminate it. (Ironic, isn’t it! ☹)
But after the elimination of the terrorist organization ISIS, at the hands of the heroes of the valiant resistance, the Popular Mobilization Forces and the Iraqi security forces, Iraq has today become a destination for the whole world, and from different segments, whether politicians, Artists, athletes or tourists, singing about its beauty, nature and archaeological sites that take them to the stories of One Thousand and One Nights, Sinbad, Shanashil and the purity of the Tigris and the Euphrates.
What strengthened this matter, Iraq became a center for the establishment of a range of international, Asian and Arab activities, including sports tournaments as well as conferences in various sectors such as art, culture, economy and others, the latest of which was the Arab Labor Conference held yesterday.
STATUS OF THE RV
Spring turns the corner into May this week. What will May bring us investors? I have to tell you that April’s news was amazing and I don’t know how the news can top last month except maybe give us what we are looking for. Am I saying its going to RV in May? Of course, not and if I did, I would be lying to you as no one knows the date of this event. NO! The RV his not all done…lol… lol… lol….
Does it seem that we are very close? Yes, it seems this is just around the bend and the finish line is in our sights. But in today’s news once again we are getting a confirmation of what we already know, but wait there is a huge glimmer of hope we could see the RV very soon. I will explain in today’s Newsletter. Today’s news is a strong confirmation what I have been telling you all along.
Iraq has kicked the proverbial can down the road long enough and it is time. Yes, time to go global. They know it and if you have been following this RV saga as long as I have you also should know it. Iraq will not survive unless they do something BIG with their currency soon and I mean very soon! In what they have already accomplished just in the last 16 months, it would be silly to turn back now. Amazing progress in such a short period of time compared to 30 years. They have come further than ever before. I say this not for hype or for the sake of being overzealous. Instead, I stick to the FACTS of what the news has been telling us recently and what my CBI contact has been telling us. All the articles were presented in my Articles Section in the past Newsletters. Did you care to read them and educate yourself?
I have tried to use the analogy of the fast-moving train chugging down the tracks… choo choo!. It has many stops along the way but eventually, as all trains do, it will arrive at its final destination of this long journey. I know these stops along the way are annoying and we all wish the train would just plow through quickly to the end. However, it simply does not work that way and we can’t dictate the train schedule. But as we know the train is now halted but this stop can’t go on forever. There is a train schedule to meet as many other things rely on it meeting its destination on time.
So, tomorrow, Wednesday I will ask my call to my CBI contact and ask what happened to April, as they did mention in prior conversations that the team was told to gear up for an April beginning of the Project to Delete the Zeros. It did not happen. I guess “‘The Best-Laid Schemes of Mice and Men’ strikes again… lol… lol… lol… 😊
The meaning of this phrase can be summarized, or paraphrased, as follows: however carefully you plan a particular undertaking, something nevertheless often goes wrong with it along the way.
I guess you can also add Murphy’s law to the list too.
Anything that can go wrong will go wrong.” In some formulations, it is extended to “Anything that can go wrong will go wrong, and at the worst possible time.”
But we all should know by now in the news from Iraq they tend to rush events. No Speedy Gonzales in Iraq…. lol… lol… lol… Even the news articles sometimes get lost in the translations from Arabic to English. But we later adjust when we find out the correction and move on. No sour pusses, or negative attitudes. We adjust our thinking and continue.
Am I disappointed? Trust me I share a great disappointment along with all of you. I am only human. I have been in this investment since 2006 and so go figure how I feel. I will report on the answer to this question of April and a couple other questions I have in my Thursday edition 05/02.
Do you have any questions you would like me to ask my contact? Please submit them now so I can ask tomorrow. Please no date and rate questions.
Let’s take a look at the recent news. It may sound gloomy up to this point in my Newsletter but from this point on my RV Status only gets better and better 😊 😊 😊. Yes, lots of “WOW!” news. I mean solid “WOW!” news not some stupid, hyped up, garbage intel.
In today’s news many articles stand out more than the others. These articles once again talk about the Iraqi dinar and how to manage it in the future. What other articles of the past told us was to outline the problem rather than solid solutions to the problem. But in today’s news they tell us the solution….. hurry, hurry, hurry 😊 😊 😊. Why so happy, since we knew the solution all along that I am about to describe to you today? My point is now they know it and are openly telling the Iraqi people and the world. That’s my point….get it?
We know this problems of sanctioning the banks is holding back the final push of the reinstatement. Part of the solution, as they tell in an article entitled “A FIXED OR FIXED EXCHANGE SYSTEM FOR THE IRAQI DINAR” helps us understand the solution better. Please, please go read this article as it explains in very good detail why the reinstatement of the dinar is stalled, what the problem is and what is the part of the solution (which I believe they are about to implement). Again, it gives us the issue and also the suggested solution. But I believe at this point it is much more than a suggestion. WOW, WOW, WOW.
Now at least you can understand the issue as to the hold up by the US Treasury and the problem in implementing a solution. Again, I will tell you that the reinstatement plan of 2011 tells us they intend to repeg the dinar and get off the de facto peg to the sole dollar and move to a new peg of a basket currencies. Sounds to me like they are getting ready to do it and are in the last phases of discussion. So, what comes out in an article this period?
An article is telling us exactly what I have been telling you all along. Folks they are educating the public about the old de facto peg they are now on to the new peg they intend to use in this article. Go read the article! Enough said…. Didn’t they just tell us last week in an article that to execute the Project to Delete the Zeros needed an educational process first?
In another article titled “RENTIERISM” HITS IRAQ’S ECONOMY DESPITE TRILLIONS OF REVENUES” we read that and I quote from the article – “Iraq cannot get out of the cycle of rentier economy due to the lack of infrastructure for the industrial and agricultural economic sectors and the absence of a real investor,” adding that “the surplus funds in the general budget are not directed towards… Investment, but rather towards expenditure”. What they are telling is not new. We already know this as they have told us this a million times already. They are telling us again that the Iraqi economy is NOT sustainable. What the hell does this mean?
It means that each month they collect revenues from the “rentier” sales of oil. Then they spend the revenue on salaries, retirement, reconstruction projects, military and other social benefits. Not much remains at the end. Easy in and easy out. Like renting an apartment. You work, earn money them pay rent and utilities. When you move out you have nothing to show for it. You are just back to where you started.
But if you save enough you can buy your own home and it allows you to get out of the renting business and into your own home…. right? This is what Iraq is doing. Remember all the assets (reserves, gold, customs and tariffs, phophate, etc)? But what is your status when you buy a home? Yes, you are currently renting (rentier economy). How does this change occur? There is first a bank loan approval (US Treasury and IMF signoff for the RV), then the closing (the Project to delete the zeros), they the move into your new home (the reinstatement to FOREX). Does these steps now make sense to you? Do you get it now?
So you see that in the Obama plan of recovery for Iraq it calls for Iraq to be already living in the home to RV and this simply did not make any sense. How can you live in the home when you are still trying to purchase it? Besides the time consumed so far we witnessed in this RV saga was the time to be taken to save the money to buy the new home but it was instead being sucked up by intentional corruption led by the Obama administration policies for Iraq. Then came Covid and ISIS besides.
Since the overall global plan is to revitalize Iraq and make Iraq a central hub/clearing house for the middle east, then they need to progress out of the rentier economy and buy their new home (liberate their currency). In other words, ditch the socialistic economy left over from under Saddam. Why are they so afraid to call it what it is as “socialism” and instead call it a “rentier” economy? This is the globalist influence as their goal is socialism but only where they plan it to occur and to drag down a nation. Iraq right now is not in that plan while we can clearly see the U.S. and Europe is (subject for another time).
So, what is the solution?
In another article today they are telling us more of the solution. They tell us they need to fix the issue with the banks and how they abuse the dollar for making money off the spread between the official rate the parallel driven rate, their commission. This is billions of dollars and it’s hard to give up. These are the sanctioned banks and this issue must be resolved somehow and these sanctions lifted for us to move ahead with the process of the dinar RV. Get it? I can not sit here writing this Newsletter today telling you I have the solution either. The RV is NOT the solution I can tell you this much. They would have done it already if it was. Instead, the RV is a byproduct of fixing this issue as it will allow the RV process to continue. Get it?
I have told you this many times already in the recent past. I quote from the article – “ The expert in economic affairs, Safwan Qusay, confirmed that there is a joint committee between the US Federal Reserve and the Iraqi Central Bank in order to lift sanctions on some banks.” There are two good articles on this subject matter in the articles section today and I encourage you to go read them. They are titled “PRIME MINISTER’S ADVISOR: WE WILL SEE THE DOLLAR FALL ON THE BLACK MARKET SOON” and “ECONOMIST: THERE IS SERIOUS WORK TO LIFT US SANCTIONS ON IRAQI BANKS”
Sometime very soon Iraq will take the Iraqi dinar and assign a nominal, honest and true rate to it reflecting its “rentier” value as is today and not wait for years or decades more. How do I know all this?
Iraq can’t afford to keep following this game of waiting years and yet more years down the road to rebuild Iraq economy first (Obama’s policy). If you have been in this investment prior to the Obama era as president you can clearly see a change in direction from the U.S. Bush policy as to how they will work with Iraq in dealing with the dinar. They have given the Obama plan time to work and it simply is not working for Iraq in this timely manner as planned. What do you do? You change plans….. Why did Obama change the direction from bush so much? Was it really to help Iraq or just the pretense of helping themselves, as they told the public it was for the people. Really? Meanwhile they filled their pockets with Iraq’s riches. Yes, twenty years of it already. When will it end? It is ending now! 😊
We all know the answer as we witnessed it play out over these last two decades with the early Obama era illegal exchanges and now the kickbacks and commissions from the variance in the exchange rates (official vs parallel). This is why they finally sanctioned the banks. This is a good sign for us investors as it shows the paradigm shift is moving away from the corrupt Obama era RV requirements and it is now picking up momentum.
We can also now see, in retrospect, why Iraq didn’t just let Dr Shabibi follow through and reinstate the dinar in 2013, as was planned. It was a well- orchestrated conspiracy using their puppet Nori al-Maliki to stop the reinstatement process. You have to be an idiot not to see it. Was it because they wanted to continue the corruption, thus when economists talk about how the U.S. sucking Iraq dry this is what they mean. Do you get it now? Yes, it’s that golden egg goose I keep talking about…. ☹
Having said all this, let me also say that the current prime minister collectively with the CBI is now working towards busting through this Obama era policy as to how to handle Iraq and to change the dinar now even while in the rentier economy. Isn’t 20 years of corruption enough? The old Obama era paradigm is shifting fast and Al-Sudani is the one the Coordination Framework picked to do it.
Al-Sudani came right out and openly stated his new policy and told us the dinar is now worth more than the dollar, even in the “rentier” economy. Get it? Can you see it folks? The article just told us they are still in the rentier economy so how can Al-Sudani say such a thing openly? (the shift has begun) This is the paradigm shift and it has begun. In fact, it is more advanced than most believe, thus this de-dollarization and the latest trip to Washington DC, thus also these articles today.
Folks there is no secret now as to why the reinstatement is being held up. They are telling us straight out and not hiding anything. The only issue now as investors is ARE YOU LISTENING to what they are telling you?
All you have to do is listen and stop all the hype and nonsensical thinking. The RV is not going to happen everyday or any day now. It is NOT just going to “pop” on FOREX unexpectedly. Instead, we will all have a pretty good idea what will get it moving ahead successfully once again. What will move it ahead? I just told you…. 😊.
So, we are told once again in today’s article what the problem is and so can they fix this parallel market situation and get the dollar under control, meaning be able to effectively set an “official” rate and hold it. Hey… by the way…. this 2 % standard by the IMF (not Obama) is nothing new. Didn’t we all read about this a decade ago under Dr Shabibi?
So, what is the standard they are trying to control?
There is only a 2% allowed variance (+ or -) from the official CBI rate the parallel market and they now are way beyond that. So, they have to get it under control and then be able to hold it for 6 months. I quote from today’s article titled “A FIXED OR FIXED EXCHANGE SYSTEM FOR THE IRAQI DINAR” here is the quote – “This stage witnessed a gap of up to (1320 – 1550), meaning a margin of 230 points and an exchange gap of (approximately 17%).” We can clearly see in this article that the gap is not 2% (+ or -) but 17%. There is work to be done but don’t get discouraged as they will find a solution and it will allow the process to move ahead again. Meanwhile we see the train is stalled at a station waiting to be given the go ahead once again.
Oh gosh… another 6 months to hold the 2% (+ or -) once they finally do get it under control ☹? Yeh folks I don’t make up the rules I only report in my blog what they are telling us. Based on today’s situation and everything else going on in Iraq the IMF might want to waive this 3 month rule. We just have to wait and see. I am only telling you from the past the IMF did enforce it and I believe they might or more than likely will NOT enforce it again. I hope not.
Meanwhile Prime Minister Al-Sudani expressed Iraq’s aspiration to cooperate with major international companies in the field of technology and information technology to move to the digital economy and improve the direction of investments. He also expressed the Iraqi government’s desire to cooperate with technology companies and benefit from them in developing the agricultural sector. In Iraq, indicating that agriculture is a priority in the government program. But I have to tell you that this is all excellent new but not what is holding up the reinstatement process. The Obama error policies for Iraq are slowing fading. There is a shift in thinking. Somehow there is a middle range of where they are going that incorporates both the Bush and Obama policies. So, please, please don’t tell me that the US and even global politics is not important. You are a naive thinker in these terms. I have demonstrated to you so much evidence already that Iraq DOES NOT have sole control over their own destiny. This is no longer a point of contention and a question you should be asking.
We must now buckle down and pray and pray like never before for the results of the success of Al-Sudani and his trip to Washington. Pray for the U.S. in that there are strong enough representatives in Congress and the Senate who will stand up and continue to fight to uphold the US Constitution and keep fighting this Washington corruption. Pray that that God’s Hand will intervene and save our great country.
Their words not mine…..No Rumors, No Hype, No Opinions ,,,,,
Just the FACTS!
We have now entered a new period in 2024. It is shaking the very foundation of all the corrupt leaders and non-elected officials. We are now feeling the shift, says the Lord our God. A very different period than 2023. This is the period of justice. But where is the justice do far? The courts will be shaken and those who brought this plan to destroy our nations will be dealt with. With spring comes new life to our nations and then in Summer we will see the Lord’s vengeance and the earth will speak out to us, as it too feels our pain.
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THE CORRUPTION IS SO WIDE IN US POLITICS. HOW DO YOU FIX IT?
World War III? Is this four years of the Biden administration really a military operation / 4 year sting operation to fix the corruption in the US government? You might want to expand your thinking and listen to what Derek Johnson has to say. Is this true? He can help you decide by yet more of the evidence he presents. But you decide, I don’t want to push anything on you….lol.. lol.. lol..
Heck, look at how they can’t even impeach a crooked cabinet member (Mayorkas) in the Senate and hold his mandated trial for someone who is blatantly disobeying long standing immigration laws. Then to make it worse he lied about it in Congressional hearings on the subject matter. Shouldn’t he be held in contempt of Congress? Shouldn’t something be done to this guy?
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BRACE YOURSELF FOR WHAT’S COMING IN 2024
our country from the globalist forced takeover to
join a One World Government/Order?
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ANTISEMITIC, PROPALESTINIAN RIOTS BREAKOUT ACROSS THE US IN MAJOR CITIES AND COLLEGE CAMPUSES.
Who is instigating this effort?
If you remember what I told you. Earlier I said there is a conspiracy to bring down the US. They plan to carry out this conspiracy through illegal immigration, disruption of travel and transportation, then to keep hitting the major cities with one riot after another. They have already infiltrated our politics with their woke candidates. Of course they need excuses for each of these events and so they create them. We already experienced the George Floyd riots and BLM organization so now they are using the strike on Irael and its defense of its nation to hammer us again with yet more riots, in line with their plan. What they did not consider is this is only going to backlash as they draw yet more attention to an already strained and wavering sentiments towards the Muslim population in the US that is now being seen more and more as a terrorist threat not legitimate religion. When all is said and done any peaceful, so-called loving Muslim is not really practicing their true Muslim ideology which calls for a radical lifestyle from the Mohamad cult, especially since Ilhan Omar took office as a district representative along with the squad.
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What? Another train derailment?
Seriously, how many more train derailments or shipping lanes do have to see before we stand up and do something about these terrorist people who are doing this espionage in our country?
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ISRAEL GAZA CONFLICT UPDATE:
The sinister master mind behind the Iranian proxy war on Israel using Hamas and Hezbollah terrorists organizations.
COULD THE IRSAEL / HAMAS WAR FINALLY BE OVER AFTER 7 MONTHS OF FIGHTING?
The answer is NO! These are just catchy captions to get you to click on their channel. Also to get you to sympathize with Hamas over Israel. So, let’s hear the truth.
WHAT IS REALLY GOING ON IN THE UKRAINE?
After three years we need to take a step back and ask ourselves again what is really going on in Ukraine. I how that after listening to Derek Johnson’s interview on Elijah Streams that you have a different perspective of what is really going on and why Americans are being lied to.
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How to pray the Rosaries
Please try to remember to pray each and every day. The rosaries for me is my way to pray and has had a significant impact on my life. It has meant many miracles for me and my family. It can for you too, and the Blessed Immaculate Mary asks that we pray “faithfully” each day. You can also pick your own personal prayers, as the rosary is just my choice and I just wanted to share it with you.
We all know something has gone terribly wrong with our nation. A supernatural battle is taking place to determine the fate of America. In just twelve minutes a day you help bring forth a divine intervention to save our country using this book. With Lent beginning tomorrow on Ash Wednesday let us not forget to fast, meditate and pray for the salvation of America. There is an organization that is taking on this endeavor through helpful prayer guidance. This is what I plan to do. How about you?
Anyone can join the hundreds of thousands already involved in this rapidly-growing prayer movement. It’s easy to get started:
Pray the Daily Prayers To Save Our Country
Order the official prayer book, read or listen online, or print them out. Just click on the prayer book below.
A National Prayer Movement
to Help God
A FIXED OR FIXED EXCHANGE SYSTEM FOR THE IRAQI DINAR
First: a fixed system:
Rentier countries seek to adopt a fixed exchange system (pegged) to a strong foreign currency or several currencies (a basket of currencies) to ensure the stability of foreign transactions, as long as they export one depleted commodity and import many goods and services, and they are called “small open countries.”
Despite the agreement that the floating currency system is considered the best in terms of relative response to the performance of the external economy and the lack of need for sometimes excessive use of foreign reserves to defend the official value in the peg system, the abundance of reserves and the need for stability in foreign transactions have a major impact on the economy. Overall, rentier countries are likely to adopt a fixed exchange rate system.
(but Iraq has plans to move out of the fixed exchange rate system to the float)
Iraq is one of the economies whose monetary authority adopts an openly fixed exchange rate system (De jure) and strives to be realistically fixed (De facto). The Iraqi dinar’s peg is classified as a “soft peg” peg that includes accepting a fluctuation of no more than 2% during the period. The last 6 months of IMF audit and 1% average volatility continuously (ereare, IMF, 2021).
When dealing with the dinar exchange rate, a distinction must be made between the fixed exchange rate that affects the market, and the contractual exchange rate between the central bank and the Ministry of Finance when selling its dollars to the central bank (which is proven in the budget for the public revenue account), and the market exchange rate remains the most important because it is dealt with in the markets as a value. Reference.
The official dinar exchange rate went through (roughly) the following stages:
From 2004 – December 2020: Buying: 1190 Selling: 1200
From the end of 2020 – February 2023: Buy: 1460 Sell: 1470
From February 2023 until now: Buying: 1310 Selling: 1320
It is noted that there are 10 points (10 dinars) between purchasing banking and non-banking financial units (exchange companies) and selling them to merchants (transfers/credits) or to individuals (in cash) (noting that there is a change within the ten points for motivational purposes, but it is not extensive) Therefore, during the years 2020-2023, the monetary authority did not leave the fixed exchange system, but rather moved from one fixed exchange rate to another fixed exchange rate, according to what it saw fit in the interest of the overall economy and well-being.
It is natural that the repeated transfers from one constant to another over a short period of time had an impact on the balance levels of the dinar and the size of the gap between the official and market exchange rates. This was reflected in the shifting of financial positions in favor of those holding the dollar again and again in favor of those holding the dinar. It even had an impact in changing The financial positions of creditors and debtors at each change, noting that those with dinar salaries and income are most affected by the gaps and fluctuations between the official value and the market value of the dinar, especially since changing the amount of the assessment was reduced (12-20-2020) and then raised (2-7-2023). It has a clear positive impact even on the macroeconomy, in addition to being a deviation from targeting stability by essentially adopting a fixed exchange rate system.
Second: An installed system
There is no doubt that the dinar exchange rate is determined through the dealings of the banking or non-banking financial units that buy the dollar at a fixed dinar price from the central bank (cash or promotion) with the importing public (merchants) or travelers (cash), that is, whoever determines the market dinar exchange rate ( Then the dollar exchange rate) these units deal with customers, and then following up on what happened since entering the platform at the end of 2022 until now, we find that the dinar’s story took two stages:
– The merchants’ stage: In the beginning, the importing merchants were obtaining dollars (remittances, credits: which are the largest part of daily currency window sales), at a price of 1,320 dinars/dollar, but the merchants set the margins of their imported sales according to the (parallel) cash price, and thus the merchants practiced speculation. The margin of the exchange rate gap, rather than the trading margins of their activity. This behavior is consistent with the state of profit allowed by the market and the prevailing nature of control.
This stage witnessed a gap of up to (1320 – 1550), meaning a margin of 230 points and an exchange gap of (approximately 17%).
(This is the gap of 17% the CBI is trying to close or at least narrow down and control)
– Participation stage: After the banking and non-banking financial units that buy the dollar from the Central Bank (1310 dinars/dollar) became certain that the gap between what they sell (1320 dinars/dollar) and what their merchant customers sell for(1501- 1550 began intervening to share the margin with these clients, and by imposing commissions amounting to
(3%-7%) on dollar sales to customers, whether in cash or promotions. Rather, it was transferred to cards and Western Union under the name of commissions.
So, the price of the dollar moved “unofficially” from (1320 to 1500) and thereabouts, being shared between banking and non-banking financial units and merchants, and it was almost (1320-1400) the share of financial outlets (so 1400 is the cost of purchasing the new dollar instead of 1320.
More than 1,400 are owned by merchants.
Therefore, the natural and legal public is faced with:
The official price is 1320.
The price for banks is about 1,400 for transfers and credits.
The price for banking companies is slightly higher than 1,400 for cash and transfer.
The price for merchants is between 1400 and 1500.
Therefore, the exchange system became fixed (by cap) (not fixed) and the cost became approximately 1400 dinars / dollar, due to the cap set by the banking and non-banking financial outlets, and in this situation the fixed exchange system was lost (1310-1320).
(Thus the CBI was unable to control it. You just read why and how this happened. Also you now see why the US Treasury is prohibiting these banks from dealing in dollars. They are trying to break this cycle. But is the strategy working?)
Therefore, the continuous stabilization has become dependent on the mutual pressure forces between the merchants’ margin for the currency and the margin of the financial outlets for the currency leaving the real margin represented by the added value resulting from financial and commercial activity.
The reflection of this does not stop at the cracking of the fixed exchange system adopted by the monetary authority, which is published in the IMF documents through the Fund’s annual (ARERE) report, but rather goes beyond that to the disparity in the exceptional profits achieved by one financial outlet compared to another (due to commissions) in a way that approaches monopoly. For the banking market, which is based on the difference in market share, due to the availability of important correspondents for this outlet compared to the other.
Returning to stability has become limited to the efforts of the following:
• Follow up on commissions (Central Bank).
• Follow up with customs for the entry of goods.
• Follow up with the authorities responsible for financial crime (reporting office, economic crime) to follow up on unregistered commissions for fear of their incorrect use.
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THE MOST DIFFICULT OPTION.. WARNINGS OF THE DANGER OF FLOATING THE IRAQI DINAR WITHOUT ACHIEVING AN “IMPORTANT CONDITION”
Economist Nabil Al-Marsoumi warned today, Thursday (April 25, 2024), of the dangers of floating the Iraqi dinar, noting that such a step could lead to the dinar witnessing a violent collapse and rampant inflation that would jump prices to insane levels.
Al-Marsoumi said in a post on the social networking site “Facebook”, followed by “Baghdad Today”, that “some are proposing a solution to address the double price of the dollar against the dinar and the existence of a large gap between the official and parallel prices through a free float of the Iraqi dinar,” indicating, “i.e. Turk.” The dinar is in the market to find its price against foreign currencies through the interaction of the forces of supply and demand.
Al-Marsoumi added, “Such a decision has some economic positives,” adding, “But the economy should not be taken in its abstract aspect, but rather insofar as it relates to people, especially the poor.”
He continued, “In light of Iraq’s lack of a national private sector that could contribute to increasing the supply of dollars in the Iraqi market, and because of the large volume of imports, which reach 67 billion dollars annually, the only party that owns the dollar is the government,” explaining that “in the event that the government decides not to intervene.” In the exchange market, it is expected that the dinar will witness a violent collapse and rampant inflation that will cause prices to rise to insane levels that will cause severe damage to citizens’ living standards, and the poor will become more miserable, and will later lead to social tensions and a major rift in the social peace.”
(Correct if I am wrong, but isn’t this the reason the US told us they would implement the 3 zeros in 2003 to begin with? Did this process of controlling hyper-inflation work? Yes, it did, but the problem lies in that it was not supposed to be permanent and already if you read these two last articles you can clearly see the problems it has in not reinstating the dinar sooner and liberating it back to pre 1991 days. So ,what is the solution now that they have messed with the process and delayed and delayed it again and again? Do the delay it again and only continue on this cycle, thus Iraq will NEVER move forward and stagnate with this issue like stale gum stuck to the bottom of your shoe. Oh… there is a solution but it means bold and new measures and we see this now with Al-Sudani.)
It is noteworthy that the floating exchange rate or currency float is the currency exchange rate that has been floated so that it has become completely liberalized, so the government or the central bank does not interfere in determining it directly, but rather it is released automatically in the currency market through the supply and demand mechanism that allows the price to be determined, in exchange the national currency against foreign currencies.
It is worth noting that the price of the dollar in the local markets is still experiencing a state of instability between rises and falls, even though the official price in the Central Bank of Iraq is 132,000 dinars per 100 dollars, but in the local markets it is witnessing an increase of more than ten points and may at times reach double this. The number is despite the numerous measures and packages launched by the Central Bank of Iraq, where some attribute that the reason for this confusion in prices is the result of smuggling operations and speculation in the black market for currency.
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PRIME MINISTER’S ADVISOR: WE WILL SEE THE DOLLAR FALL ON THE BLACK MARKET SOON
The political advisor to the Prime Minister, Fadi Al-Shammari, confirmed today, Saturday, that the demand for the official dollar has increased, while he expected it to decrease on the black market in the coming period.
Al-Shammari said in a press statement received by Al-Maalouma, that “the classification of financial institutions in Iraq according to World Bank reports is positive, and the Central Bank’s classification is A++ and exceeds the Emirati classification.”
He added, “Iraq wants to join the international banking system, and on this basis the government has taken positive measures in this regard.”
He confirmed, “The increasing percentage of merchants joining the platform rose from 28% to 78%,” noting that “the demand for the official dollar has increased, and we will witness its decline on the black market in the coming period.”
He pointed out that Iraq agreed “with the US Treasury on a road map that includes a third party represented by an international consulting company to audit the procedures of the sanctioned banks, and its decisions are binding on the US Treasury.”
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ECONOMIST: THERE IS SERIOUS WORK TO LIFT US SANCTIONS ON IRAQI BANKS
The expert in economic affairs, Safwan Qusay, confirmed that there is a joint committee between the US Federal Reserve and the Iraqi Central Bank in order to lift sanctions on some banks.
Qusay said, in a televised interview followed by Mawazine News, that “the joint committee is working to study the activities of the banks sanctioned by the US Federal Reserve.”
He added that “banks that have worked to purchase equipment or tools from sanctioned countries will have sanctions imposed on these banks.” A fine, indicating that the government must work to rehabilitate the banking sector so that it is internationally accepted.”
He pointed out that “the government of Muhammad Shiaa Al-Sudani directed the formation of a joint committee between the US Federal Reserve and the Iraqi Central Bank in order to move towards lifting sanctions on Iraqi banks and restoring the status of the Iraqi banking sector. ” to its global stature.
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CENTRAL BANK WARNING FOR “MISUSE OF ELECTRONIC PAYMENT CARDS”
Baghdad Today – Baghdad
Today, Thursday (April 25, 2024), the Central Bank of Iraq warned against the misuse of electronic payment cards.
The bank’s media said in a statement received by “Baghdad Today” that “the Central Bank warns against the misuse of electronic payment cards,” stressing that it “continues to refer the cards and their owners who are referred to this to the Anti-Money Laundering and Terrorism Financing Office.”
“Reports of misused cards are referred to the Supreme Judicial Council for the purpose of taking legal action against them based on the Anti-Money Laundering and Combating the Financing of Terrorism Law No. 39 of 2015 and the instructions issued pursuant thereto, which helped the competent courts issue their decisions including imprisonment and confiscation of cards,” he said.
The statement called for “not misusing electronic payment cards in any way to avoid legal accountability that the card owner will be exposed to.”
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DEPUTY: THE DEVELOPMENT ROAD WILL REDUCE THE TRANSPORT OF GOODS FROM BASRA TO THE HEART OF EUROPE BY 72 HOURS
Information / Baghdad
MP Mudar Al-Karawi confirmed on Thursday the existence of 3 advantages of the Iraqi development road.
Al-Karawi said in an interview with Al-Maalouma that “the development road is a strategic development project that will start from the ports of Basra towards Turkey and from there to the heart of Europe with land tracks, railways and investments that may reach $ 18 billion.”
He added, “The road is characterized by 3 important points:
1.most notably reducing the extent of transporting goods from Basra to the heart of Europe in 72 hours, while all similar projects in the region have a double trip in terms of time, cost and logistical challenges, which makes the development road the most important genealogy.”
4.He pointed out that “many countries have expressed their desire to have significant investments in projects on the development road, which will be implemented in 2025.”
3.The development road is one of the strategic projects in Iraq, which will launch its first phase during 2025.
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PARLIAMENTARY EFFORTS TO TRANSFORM IRAQ INTO A GLOBAL MARKET FOR TRANSFERRING INTERNET CAPACITIES
Today, Saturday, the Parliamentary Finance Committee confirmed that there are efforts to transform Iraq into a global market for transferring Internet capacities.
A statement from the committee, received by “Al-Iqtisad News,” stated that “The Parliamentary Finance Committee, headed by Atwan Al-Atwani, and in the presence of its members, hosted the Minister of Communications, Hiam Al-Yasiri, to discuss ways to advance the reality of the communications sector in Iraq and raise the level of services provided to citizens, because of its direct impact on economic development.” “.
The statement added, “The meeting discussed the most prominent problems facing the ministry’s work and the possibility of providing it with the necessary support in order to implement the provisions of the government program related to the communications sector.”
Al-Atwani stressed, “the necessity of advancing the communications sector and developing electronic services,” stressing, “the Parliamentary Finance Committee’s keenness to review what has been implemented, as stipulated in Paragraph 17 of the Federal Budget Law (2023-2025), regarding increasing communications revenues and improving the quality of services.” He added, “We rely a lot on the Ministry of Communications, to be the second financial resource for the state after oil.”
Al-Atwani stressed, “The necessity of digital transformation in all sectors, including customs and ports, and this requires securing and improving Internet service, continuously and without interruption, in a manner that is consistent with the government’s endeavor to automate these sectors and undermine the outlets for corruption.”
He warned, “The hosting also comes to identify the ministry’s needs, in preparation for including them in the 2024 budget schedules, the schedules of which are expected to reach the Finance Committee next week.”
Al-Atwani pledged to “adopt the demands and proposals put forward by the Minister before the Finance Committee, including providing the necessary financial allocations to develop communications infrastructure, ensuring the expansion of port gates in light of the increasing demand for this service, in addition to purchasing advanced devices to block websites targeting Iraqi society, as well as By giving the Ministry the authority to collect fees for commercial advertisements on social media sites and to prosecute violators.
The Chairman of the Finance Committee stressed, “The necessity of completing the steps to transform Iraq into a global market for transferring Internet capacities by attracting customers, after the submarine cable service entered the commercial operation phase, which brings significant revenues to the state.”
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RENTIERISM” HITS IRAQ’S ECONOMY DESPITE TRILLIONS OF REVENUES
The Federal Ministry of Finance revealed, on Monday, that the volume of Iraqi revenues in the budget exceeded 20 trillion dinars within two months, while confirming that the oil contribution to the budget had risen to 91%.
Shafaq News Agency followed the data and tables issued by the Ministry of Finance in April for the January and February accounts of the current fiscal year, which showed that oil is still the main resource for Iraq’s general budget, reaching 91%, which indicates that the rentier economy is the basis of the country’s general budget.
The financial tables showed that the total revenues in January and February amounted to 20 trillion, 465 billion, 480 million, 278 thousand and 344 dinars. They also indicated that the total expenditures with advances amounted to two trillion, 752 billion, 731 million and 419 thousand dinars.
According to the financial tables, oil revenues amounted to 18 trillion, 678 billion, 903 million, and 892 thousand dinars, which constitute 91% of the general budget, while non-oil revenues amounted to 1 trillion, 786 billion, 576 million, and 385 thousand dinars.
In this regard, economic expert Muhammad Al-Hassani told Shafaq News Agency, “Iraq cannot get out of the cycle of rentier economy due to the lack of infrastructure for the industrial and agricultural economic sectors and the absence of a real investor,” adding that “the surplus funds in the general budget are not directed towards… Investment, but rather towards expenditure.
The Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Salih, confirmed in March 2021, in an interview with Shafaq News Agency, that the reasons for the economy remaining rentier are due to wars and the imposition of the economic blockade on Iraq during the past era and the political conflicts we are witnessing today, which led to the dispersion of… for economic resources.
The Iraqi state’s continued reliance on oil as the sole source of the general budget puts Iraq at risk from the global crises that occur from time to time because oil is affected by them, which makes the country tend every time to cover the deficit through borrowing from abroad or within, and thus indicates the inability to Managing state funds effectively, and the inability to find alternative financing solutions.
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SUDANESE OPENS IRAQ’S DOORS TO MAJOR INTERNATIONAL COMPANIES
Prime Minister Muhammad Shiaa Al-Sudani expressed Iraq’s aspiration to cooperate with major international companies in the field of technology and information technology to move to the digital economy and improve the direction of investments. He also expressed the Iraqi government’s desire to cooperate with technology companies and benefit from them in developing the agricultural sector. In Iraq, indicating that agriculture is a priority in the government program.
This came during Al-Sudani’s reception, yesterday, Sunday, of a group of heads of major international companies in the Saudi capital, Riyadh, on the sidelines of his participation in the World Economic Forum.
In the Saudi capital, Riyadh, the Prime Minister met with the Crown Prince of the Kingdom of Saudi Arabia, his highness Prince Mohammed bin Salman bin Abdulaziz Al Saud.
During the meeting, they discussed bilateral relations between the two countries, the importance of consolidating them, and reviewed the files of joint cooperation and its growth within the work of the Iraqi-Saudi Coordination Council, which resulted in several understandings in various fields.
Al-Sudani expressed Iraq’s aspiration for broader economic cooperation with the Kingdom, which contributes to enhancing growth and provides new opportunities in various economic fields, which reflects the interests of the two brotherly countries and the prosperity of their people.
For his part, the Saudi Crown Prince welcomed the Prime Minister and expressed his thanks for accepting the invitation and participating in the World Economic Forum, stressing Saudi Arabia’s keenness to achieve the best relations with Iraq and raise the level of mutual cooperation between the two neighboring countries.
The meeting touched on the situation in Gaza, and the killing and starvation that the Palestinian people are witnessing at the hands of the occupation forces, and stressed the need to make great efforts to stop the war, the effects of which were reflected in regional and international stability.
Prime Minister Muhammad Shiaa Al-Sudani also met, in the Saudi capital, Riyadh, with the Emir of the State of Kuwait, Sheikh Meshaal Al-Ahmad Al-Jaber Al-Sabah.
During the meeting, bilateral relations between the two countries were discussed, and ways to develop and advance them, for the benefit of the two brotherly peoples, by investing in the historical and social neighborhood that links Iraq and Kuwait, and emphasizing the importance of maintaining good-neighborly relations and mutual respect.
The meeting discussed the latest developments in the region, especially what is happening in the Gaza Strip in terms of the ongoing Zionist aggression that has caused thousands of martyrs and wounded, and the importance of taking a unified Arab position in order to end the tragedies of the Palestinian people.
Al-Sudani also received, at his residence in the Saudi capital, Riyadh, the regional president of the technology company. German SAP Emmanuel Raptopoulos and his accompanying delegation, on the sidelines of his participation in the World Economic Forum.
The meeting witnessed a discussion of ways of cooperation with SAP, which reviewed its experiences in various parts of the world, as it is considered the largest in the world in the field of developing large programs that combine visions.
Al-Sudani stressed the possibility of cooperating with the company through a joint work program, which includes benefiting from its services in digitizing the economy, which will help achieve innovation and improve the direction of investments, indicating the government’s aspiration to also benefit from its services by including this type of software in Curricula of specialized colleges, and in the field of training in the field of institutional software.
For his part, Raptopoulos expressed the company’s readiness to cooperate with the Iraqi government in the technological fields, which helps it implement its vision and plans towards an economy that keeps pace with technological developments in the world.
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Their words not mine…..No Rumors, No Hype, No Opinions ,,,,,
Just the FACTS!
Disclaimer: All information in this newsletter is not intended for investment decisions / purposes. Mnt Goat is not a financial analyst, planner, banker, attorney or associated in any role with giving out professional investment advice.
Auf Wiedersehen
Much love to ya all,
Mnt Goat
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