Latest Mnt Goat Newsletter

“JUST REMEMBER IN NOVEMBER!”

ABOUT THE NEWSLETTER:

May 2, 2024 Mnt Goat News Brief

Hi Everyone,

I have some very interesting 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:

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….

IRAQ: THE PRIME MINISTER’S FINANCIAL ADVISOR SALEH SAID THE DOLLAR EXCHANGE RATE IN THE PARALLEL MARKET IS GRADUALLY APPROACHING THE OFFICIAL ONE

Today, Thursday, Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Saleh, explained the dangers of the exchange rate fluctuations in the event that demands for floating the dinar are met, while confirming that the dollar exchange rate in the parallel market is gradually approaching the official one.

More news….

IRAQ AND AMERICA CONFIRM THE CONTINUATION OF THE ACTIVATION OF THE STRATEGIC FRAMEWORK AGREEMENT

Baghdad, Iraq Today:       

 
Foreign Minister Fuad Hussein and U.S. Ambassador to Iraq Elena Romanowski stressed the importance of following up on meetings to activate the strategic framework agreement between the two countries.

The Foreign Ministry said in a statement that “Hussein received the Ambassador of the United States of America to Iraq Alina Romanowski.”

She added that “the meeting reviewed the visit of Prime Minister Mohammed Shia Al-Sudani to Washington and its importance in developing relations between Iraq and the United States.”

The two sides praised the success of the round of meetings between representatives of the two countries from various sectors included in the strategic framework agreement for cooperation between Baghdad and Washington, which coincided with the prime minister’s visit last month.

STATUS OF THE RV

Welcome to May! May is a very nice month in Bavaria. The blossoms are blooming and the scent of the air changes to sweet aromas. Already some are mowing lawns and attending gardens. The tourists are now booking rooms in the gasthaus and we hope the season will be much better than last year. What will May bring us investors?

I have to tell you again that April’s news was amazing. In today’s news it is all mostly about the dinar and the future float. How will they float and can they float it? But the question we all should be asking is – Why now are many of the economist talking about it so much? Yes, why now? Do they know something we don’t? Has the news in Iraq suggested a possible future float happening soon? This tends to be the way it works in Iraq. The CBI or the Finance Committee comes out with some news and all the economists have to then give their two cents worth, some pros and some cons.

All my readers should now know the 2011 Dr Shabibi plan and know it well. But I know there are many newbies on the blog so I will review it once again to you. Please go to the LINK for 2011 Dr Shabibi Plan to Reinstate the Dinar.   Please, please go read it.

Let’s get right into today’s news about this future float.  

I’d like to first start with an article titled –“IRAQ: THE PRIME MINISTER’S FINANCIAL ADVISOR SALEH SAID THE DOLLAR EXCHANGE RATE IN THE PARALLEL MARKET IS GRADUALLY APPROACHING THE OFFICIAL ONE”:

To me this is our “WOW!” news article of the week since isn’t this what they told us first has to happen. This is in the Dr Shabibi plan as they need the official rate to match or come close to matching the parallel market rate. This will bring the price stability they need. Then they plan to conduct a revaluation of the “official” rate, but still within the program rate boundaries. But this is still VERY important as it will bring us to the yet the next move and that is it will allow for the Project to Delete the Zeros and this is when it gets interesting. But remember that Dr Shabibi kept telling us that checking for inflation is the most critical and the number one priority. So, they will monitor for inflation and when appropriate they will make this next move.

Saleh said to the official agency, followed by Mawazine News and I quote that – “calls for floating the dinar to end the gap between the official exchange rate and the parallel market may be possible in an economy in which the free market alone influences the movement of the balance of payments”. Folks this statement is telling us that Saleh is in favor of a float but not under the program rate (as I have said many times). He wants a free market dinar (such as on FOREX) and then a float. WOW, WOW, WOW!  

Saleh then goes on to say how Iraq should not float and I quote – “not in an economy in which the rentier government sector is dominant and generates currency reserves.” Such as we all know Iraq now has, as they keep telling us this is the case. We know they must exit from this rentier economy.

Saleh then goes on to say more and I quote – “Saleh warned, Then no one knows how much the new exchange rate resulting from the floatation will be, which will undoubtedly be accompanied by a prior wave of inflationary expectations, which is a dangerous wave whose directions are difficult to control”.Is this not what I have been telling you all along. This statement is right out of the Dr Shabibi plan. Get it? Dr. Shabibi could not emphasize enough about checking for inflation.

So, do you think Saleh is in favor of getting the dinar back on FOREX and floating it on FOREX? Of course he is. This is what he means and it is very clear in this article today. So, we now know where Saleh stands and this is all very important since he advices the prime minister Al-Sudani and that the GOI and CBI are working together to get this done.

Then in another article titled “ECONOMIC: THE FIXED DOLLAR EXCHANGE RATE DEPLETES IRAQ’S FOREIGN CURRENCY RESERVES”:

Economist Manar Al-Obaidi says in his interview he is in favor of a float eventually but starting off with “gradually work to increase it until complete liberalization is reached.”

Folks this is exactly what the CBI is now doing. They are slowly revaluing the program rate then when price stability is reached, will move on to the next step. The risk of someday depleting the CBI reserves of dollars is why they chose to get off the dollars and to use a mixed bag of currencies to trade. Iraq learned so much over the ISIS and Covid episodes. They don’t want to ever repeat that financial crisis again. Remember their reserves were down to 35 billion. It was in the danger zone for a short time.

However, who wants the dinar right now when it’s rate is 1/6 of a penny. Who wants to take the dinar in payment for trade? How can they get off this damned program rate? What comes first the chicken or the egg. Do you see their dilemma? At some point they will have to reinstate the dinar and take the chips where they fall. There may be inflation for a period but they will recover. This was the 2011 Dr Shabibi plan way back then even only they needed the political motivation back in 2012 and obviously Nori Al-Maliki was not yet done filling the pockets of Iran with the riches of Iraq.  

So, do you think economist Manar Al-Obaidi is in favor of a float?

Then yet another article comes out titled “SPECIALIST: FLOATING THE DINAR IS ECONOMIC SUICIDE”:

Economist Muhammad Hashem Helou confirmed that the central bank cannot float the dinar exchange rate. But under what context is he talking about?

Helu said, “The Central Bank of Iraq cannot think about floating the exchange rate because it will abandon its only influential tool in light of the weakness and disruption of other economic tools.”

He then added “that the exchange rate is the nominal stabilizer of monetary policy in Iraq, and thinking about abandoning it is economic suicide, and the bank cannot even think about that.”

He continued, “adding that floating the exchange rate in the presence of a parallel market and large speculators, and the presence of people who own billions of dinars and others who own billions of dollars, will lead to a sharp decline in the value of the currency, high levels of inflation, and rising price”..

So the context of Economist Muhammad Hashem Helou belief  is that the dinar would float under a “program rate” without the reinstatement and letting the free market drive the rate. He also does not mention the re-peg to a basket of currencies. The prime minister’s financial advisor does have  his opinion and contradicts Helou. So, we get some pros and some cons. Of course there will be many varying opinions. Most economists don’t even know the overall plan and all the conditions to which a float would really work. Be careful what you read.

My main takeaway today from all these articles about a float is this– WHY NOW! Yes, why so many articles about a float and now in particular? Did the CBI make some sort of announcement? We know they recently met with the GOI and so what are they planning? 

Q & A

As I promised in my 04/30 Newsletter, I would ask any questions you might have of my CBI contact related to the dinar reinstatement. I asked for no date or rate questions. So far I only received one (1) question but nothing about the dinar. Don’t you want to learn about the dinar? I don’t get it? I give you the chance and out of 20,000 + followers only one person asked a question and it wasn’t even about the dinar itself.  

1.Question by woldopep:

Thank you MG.

an article recently emerged from Saleh stating that it was not necessary for parliament to vote on schedules. Quite confusing. Anyhow, my question.

we know the Rate is not in the budget. We also know that the cbi has complete control over the rate ( obviously political consensus with Sudani is a big input ).

question: to the best of the contacts belief, is the government willfully holding back sending the projects to be voted on until a more favorable Iraqi Dinar rate is released. No nation wants to give their products or services away without real value globally, in return.

Mnt Goat Answer:

Guten Tag, danke für die Frage. Let me explain what I think you are referring to when you say “schedules” since I am not a mind reader… lol… lol… lol… Could it be the schedule for rolling out the 2024 budget as to how it will be allocated? If so, then I can answer by saying that there was an intentional 3-year budget (2023-2025) passed in parliament in 2023. There is conflicting articles whether it has to go to parliament again each year to pass with the amendments. So, you are reading articles debating this issue. If you follow up to the latest article on the subject matter it says that the prime minister will have his cabinet forward this year’s budget soon to parliament.   

As I told my readers do not place anything on one event to trigger the RV and this includes the budget. Every year these intel gurus out there convince their listeners this has to happen and the RV is dependent on it. I will tell you right now that it isn’t. However, the IMF has stated they want Iraq to work like a normal constitutional republic, vote on an annual budget to allocate spending and to pay all its bills on time. By your questions on the budget I can clearly see some guru got into our head and stirred you up over the budget and you think this is the holdup of the RV. Did you read my last Newsletter? Have you been following my news? I list all the articles from Iraq that I can research and translate. Please stop following these idiot so-called intel gurus. Here is a link to my two latest past Newsletters HERE.

This concept that by the RV everything will change so much in Iraq is a fallacy. Get it? In other words, a lie. Their biggest worry by the CBI is more inflation after the rate change, so go figure. If a 25,000 note today can buy  $22 USD worth of imported goods or services then after the in-country RV the same goods and services can be paid with a 10 dinar plus 10 dinar plus 2 coin. Nothing changed, get it. Only once the reinstatement happens the purchasing power of the dinar increases so it may take only one 10 dinar (now worth $30 USD) and given back change of 8 dinars. Assuming the rate conversion is 1 IQD : $3 USD.

Like I said sooooooo many times already the value is already in the dinar. The rate of the dinar will be the exact same before and after the RV in-country. I worked this out for my readers so many times already. Please go see my example above. It only takes a sixth grade math education to understand this. They are just going to delete the zeros, get it? They are going to issue newer lower denominations to replace them. Yes, they may bring the dinar over a dollar since they need incentives to turn in the old 3 zero notes and the dollars. They want mostly the dollars. Close to 25% of the monetary mass in Iraq is hidden and out of circulation today. The banks need this money for investment. Get it? They also need our dinars. Now having said this once they reinstate the dinar (and that is the key) then the rate of the dinar to dollars will the same globally inside and outside Iraq to whatever the market drives it to be on the float. But first they need to do a rate change inside Iraq prior to the reinstatement. This is a step by step process. Please stop following this budget saga it will get you nowhere in a hurry.  

2.Question by Ian:

Do you really buy in to the Q psyop nonsense?

Mnt Goat Answer:

Guten Tag! I can see this is a condescending question. I do not know what the heck “Q psyop” is. So, it is hard for me to answer this question. I am sorry.

However, I can tell you what I do know for a FACT as I base my thinking on FACTS not falsehoods or lies of the mainstream news channels. I do not make up stories. I know for a FACT that there was a huge amount of election fraud in the 2016 and especially in the 2020 election. The fraud, if properly addressed prior to Jan 6^th or addressed properly in the Jan 6^th joint hearing, would have definitely overturned the election results in favor of Donald Trump. The FACT that his did not happen should be worrisome for every patriotic American citizen in the USA. Many people have already gone to jail over it only the main stream news media will hardly report on it. They are desperately want to cover it up. So why is this? Why is the liberal leftist going after former president Trump so much with these ridiculous allegations turning them into inditements? If you care to study the Obamas and Clintons you will find a tremendous more reasons for inditing them on REAL and SUBSTANTIAL crimes of treason. But don’t believe me, do your own research. There is so much information out there on the FACTS. But liberals seem to put their head in the sand and ignore it. They actually believe the Obamas and Clintons are heroes and protectors of democracy. How funny is this?

3.Question by TC:

Dear MG,

The question that I and probably most others would like to ask you is how you (a U.S. Military Intelligence officer) had originally met your CBI contact and if your contact with this person became more regular only after you had purchased the Dinar. Respectfully yours, TC

Mnt Goat Answer:

Guten Tag TC! My contact in Iraq CBI may have absolutely no clue if I own Iraqi dinar or not. I did talk about my ownership of the currency but going back to 2006 a couple times in the blog over the years I did mention it and so if they did read my blog they might know. I met this contact while stationed in Iraq accidentally. Since we had much in common and the person knew the English language we were able to talk and have conversation. Back then it was important to talk to Iraqi civilians to get the feeling towards American military personnel. Since they we have been good friends as well as sharing information about the dinar and politics.

Please, please keep your prayers going. This month of May is supposed to be really weird according to the prophets and followed by summer when the deep state tries one more desperate attempt to stay in power.  Remember it is also the month of the Immaculate Mary who has come t the earth over 2,000 times already telling us the importance of prayer. She always tells us to use the rosary in our prayers. God willing, if all goes well, we may see this reinstatement this year and be done with this finally. But keep praying as we can see God’s Hand in all of this.

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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BRACE YOURSELF FOR WHAT’S COMING IN 2024 

________________________________________

MORE PROOF THAT THE PALESTINIAN RIOTS & PROTEST ON COLLEGE CAMPUSES ARE BEING SPONSORED AND PAID FOR BY SOMEONE

It is becoming clearer and clearer that these protests are yet another outsider paid agitator event and not student driven. But we must ask the question as to why are they doing this. Again, I am telling you that in order to make the kind of changes necessary to move to a social communistic government they can not do it to create disorder and chaos. It is all just distractions away from the crooked politics and allows the crooked politicians to implement measures necessary for the conversion of the government. They will use any excuse and even orchestrate events to make cause for rioting. They will keep hammering on our cities over and over again.

The solution is not to go along with these narratives. Don’t sympathize with them. Fund law enforcement to kick them in the butt early enough and seek  after the main agitators. The FBI should be investigating the source of the funding for these agitator leaders. This is the real problem. Yes, who is really behind all these events. The FBI refuses to do its job. So even the FBI has already been infiltrated and compromised.   

______________________________________

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

SPECIALIST: FLOATING THE DINAR IS ECONOMIC SUICIDE

Economist Muhammad Hashem Helou confirmed that the central bank cannot float the dinar exchange rate.

Helu said, “The Central Bank of Iraq cannot think about floating the exchange rate because it will abandon its only influential tool in light of the weakness and disruption of other economic tools.”

He added that the exchange rate is the nominal stabilizer of monetary policy in Iraq, and thinking about abandoning it is economic suicide, and the bank cannot even think about that.

He continued, adding that floating the exchange rate in the presence of a parallel market and large speculators, and the presence of people who own billions of dinars and others who own billions of dollars, will lead to a sharp decline in the value of the currency, high levels of inflation, and rising price..

(But under what context does this economists believe the dinar would float? Of course it can not float under a “program rate” without the reinstatement and letting the free market drive the rate. The prime minister’s financial advisor also has his opinion and it’s in yet another article in today’s news.)

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ECONOMIC: THE FIXED DOLLAR EXCHANGE RATE DEPLETES IRAQ’S FOREIGN CURRENCY RESERVES

Economist Manar Al-Obaidi confirmed that the fixed dollar exchange rate adopted by Iraq depletes the country’s foreign currency reserves.

Al-Obaidi said, “The only thing that is completely under the control of the Iraqi state is the exchange rate, which forcefully drains all foreign reserves to maintain an imaginary fixed price that traders benefit from to increase their profit margin.”

He added, “I never called for following a free-float policy. Rather, I called for a start to follow a compensation policy managed with a small volatility factor and gradually work to increase it until complete liberalization is reached.”

He continued, “The alternative to maintaining the fixed exchange rate is to continue depleting the reserves until they run out and the oil market is exposed to very expected future fluctuations. Then, will we be forced, not given the choice, to an absolute floatation of the currency or a shocking reduction in the exchange rate, as happened in 2020, and then the risks will be greater and greater?

(Then in this article Economist Manar Al-Obaidi is in favor of a float eventually but starting off with “gradually work to increase it until complete liberalization is reached.” Folks this is exactly what the CBI is not doing. This risk of someday depleting the CBI reserves of dollars is why they chose to get off the dollars and used a mixed bag of currencies to trade. However, who wants the dinar right now when it’s rate is 1/6 of a penny. What comes first the chicken or the egg. Do you see their dilemma? At some point they will have to reinstate the dinar and take the chips where they fall. This was the 2011 Dr Shabibi plan way back then even only they need the political motivation to just do it and today’s news shows us this more than ever.)

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A THOUSAND DINARS EVERY MONTH.. AN EXPERT PREDICTS THE SHAPE OF THE FINAL JOURNEY OF DOLLAR PRICES

Today, Wednesday (May 1, 2024), the economic expert, Farman Hussein, expected the continued decline of the dollar’s ​​exchange rate against the Iraqi dinar until it reaches the official rate of the Central Bank of Iraq.

The Central Bank sells the dollar at a price of 1,320 dinars, while the dollar is currently trading in the local markets in Baghdad and the governorates, and in what is known as the “parallel market,” at 1,470 dinars or a little more.

Hussein told “Baghdad Today” that “the efforts of the government and the Central Bank were important in strengthening dependence on the dinar, and quashing rumors that were promoting a significant rise in the price of the dollar and it’s crossing the barrier of 200 thousand dinars for 100 dollars.”

He added, “The government erased fears of the rise of the dollar and increased reliance on the dinar, and the current demand for the dollar is only for those in need. Therefore, we will go towards a greater decline and it may stabilize in the coming weeks at 140 thousand dinars.”

Hussein expected “the dollar to decline gradually every month or two, at a rate of one or two thousand, to reach the official government rate.”

The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, had previously attributed the noticeable decline in the dollar exchange rate to “the economic policy that played a major role in imposing a climate of stability in the general level of the dollar exchange rates,” indicating that “the state of superiority of the official exchange market in financing foreign trade.” For Iraq, it caused a decline in the effects of the parallel market and a decline in its illegal activities.”

The Parliamentary Investment and Development Committee also acknowledged the decline in exchange rates and the achievement of positive results in the local markets in recent months, while economic affairs specialists point out the necessity of preserving the economic gains achieved recently, especially the stability of prices in the local markets, which they attributed to the decline parallel dollar.

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IRAQ: THE PRIME MINISTER’S FINANCIAL ADVISOR SALEH SAID THE DOLLAR EXCHANGE RATE IN THE PARALLEL MARKET IS GRADUALLY APPROACHING THE OFFICIAL ONE

 

Today, Thursday, Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Saleh, explained the dangers of the exchange rate fluctuations in the event that demands for floating the dinar are met, while confirming that the dollar exchange rate in the parallel market is gradually approaching the official one.

Saleh said to the official agency, followed by Mawazine News, that “calls for floating the dinar to end the gap between the official exchange rate and the parallel market may be possible in an economy in which the free market alone influences the movement of the balance of payments, and not in an economy in which the rentier government sector is dominant and generates currency reserves.” Foreign currency, as the monetary authority alone is the main source of supply of foreign currency that meets the desired demand for foreign exchange in the money market, to provide stability in this market and achieve a desired and homogeneous exchange rate through the interventionist role played by monetary policy.

(Saleh is saying here you can’t float the dinar unless you also open it up to foreign investors and let the currency market drive it. They would have to reinstate it to do this. They tried to do it on the ISX, but as time told it did not work. Even though the ISX is open to the public it is a very risky platform and still seen as just Iraqi stocks and not a general trading platform.)

He added, “Claims for flotation mean in all cases adopting the prevailing exchange rate in the parallel market to achieve the goal of stability and balance in the official exchange rate itself at a new point reached by the market at the end of the supposed flotation policy and returning to stability again.

Also, the flotation scenario means in all cases the withdrawal of the authority.” Cash from being an essential central supply of foreign currency, to be replaced by new forces supplying foreign currency from free market makers, which only have a weak, limited supply of foreign exchange, and at the same time they carry an uncontrolled package of inflationary expectations and are called in economic literature the forces generating expectations. “inflationary”.

(What Saleh is saying in the last paragraph is the supply of cash to pay for the dollar needs is supplied by the CBI reserves. If you were to float the dinar and reinstate it, the dollars would be supplied by the free market which would supply a weak supply of dollars to meet the needs of Iraq. The would cause inflationary expectations. This is why in Dr Shabibi’s 2011 plan he specifically says once they change the in-country rate and conduct the project to delete the zeros they would monitor for inflation for a period of time prior to going to the free-market- FOREX.)

He continued, “The hypothetical new supply forces for foreign exchange adopted by the exchange market in that scenario will mean the dominance of supply forces from speculators with very limited quantities of foreign exchange available for supply in the parallel market, matched by an open demand for foreign currency on the part of the market that undoubtedly exceeds that limited parallel supply.” of foreign exchange, perhaps by more than 10 times at least in our estimation, and such a policy of floating to achieve a homogeneous equilibrium exchange rate would be an open and perhaps unruly situation, as long as the central government supply of foreign currency would be absent from the market, and we would not then obtain any equilibrium point in the exchange rate.

An exchange rate that is sought to float except with a widespread deterioration of the exchange rate as long as it is controlled by forces that generate inflationary expectations, as we noted in a highly unilateral rentier economy, and it is an exchange rate whose mechanisms will move in a market that is incomplete in terms of production in its compensation for the required supply of goods and services.

Saleh warned, “Then no one knows how much the new exchange rate resulting from the floatation will be, which will undoubtedly be accompanied by a prior wave of inflationary expectations, which is a dangerous wave whose directions are difficult to control, which may force monetary policy according to this floating scenario by intervening with foreign reserves.” It is an unjustified extravagance in foreign exchange to impose a state of stability in the general level of prices again just to adopt it when exchange rates reach low rates, and no one knows how much they will reach.”

He pointed out that “the difference in the two prices currently, in which the parallel market is gradually approaching the official market, did not come about due to the short supply of foreign exchange at the Monetary Authority, but rather came about due to a sudden external factor imposed by the compliance platform and administrative audit restrictions on external transfer movements, which is a matter related to the deficit in the authority’s reserves.” Cash is about bringing the two prices closer in light of a very high level of foreign reserves. The commercial efficiency of those reserves is the highest in Iraq’s financial history, and they are covered in foreign currency that touches more than 16 months of imports compared to the global standard of three months of imports.

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ECONOMIST: THE CENTRAL BANK COMMITTED A MASSACRE AGAINST PRIVATE BANKS AT THE EXPENSE OF FOREIGN ONES
 

Economic expert Mustafa Akram Hantoush was surprised, on Tuesday, by the Central Bank’s continued granting of dollar licenses to foreign companies and the neglect of Iraqi banks.

Hantoush said to Mawazine News, “The Central Bank of Iraq is required today to reveal the list of dollar sales on the platform that He supervises it, so that the Iraqi people know which banks are holding the dollar.”

He pointed out that “the Central Bank of Iraq, instead of strengthening the work of Iraqi banks, went towards supporting foreign banks, namely the Jordanian ones, which swallowed up the Iraqi banks and confused the market,” pointing out that “Jordanian banks will control 95 percent of the market compared to 5 percent for the Iraqi banks, and this is competition.” unfair”.
Hantoush concludes, “There is a major campaign undertaken by Jordanian banks to acquire human resources in Iraqi banks, and this is due to the policy of the Central Bank.”

The United States intervened in the movement of the dollar in Iraq to limit its smuggling, and more than once imposed sanctions on private Iraqi banks and removed them from the currency window, which led to a decline in the Central Bank’s sales. The Central Bank also took several measures and opened an electronic window for merchants.

In the middle of last month, the Governor of the Central Bank, Ali Al-Alaq, revealed meetings with the US Treasury to reconsider the sanctions on Iraqi banks, pointing out that these sanctions should not be issued in the future except after discussing and informing the Central Bank of Iraq, as it is concerned with monitoring their activity.

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STATE OF LAW: SUDANESE’S RECENT DISCUSSIONS WILL IMPOSE ANOTHER REALITY IN RELATIONS WITH WASHINGTON

Firas Al-Muslimaoui, representative of the State of Law coalition, confirmed on Tuesday that the discussions and discussions of Prime Minister Muhammad Shia Al-Sudani during his presence in Washington will impose another reality in the Iraqi-American relationship.

Al-Muslimaoui told Al-Maalouma, “Al-Sudani visited the United States in an exceptional circumstance that the region is experiencing, and it represents a major turning point in terms of the transformation of the relationship between Baghdad and Washington from a military security relationship to an economic development relationship built on the basis of partnership for the benefit of the two countries.”

He added, “The files that were discussed between the two sides in Washington impose another reality, and indicate the government’s vision to build a good and strong relationship based on economic, industrial and agricultural development, as well as financial and monetary policy.”

He stated, “Although the federal government is trying to preserve Iraq’s interests and ensure their achievement, at the same time it will not forget its firm position on humanitarian issues, especially what is happening to the Palestinian people in Gaza, as Al-Sudani confirmed this during his presence in Washington.”

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THE DECLINE OF THE DOLLAR DECEIVES THE IRAQIS, AND A BANKING EXPERT CONFIRMS: WE NEED THE PARALLEL MARKET

The Iraqis breathed a sigh of relief due to the continued decline in the exchange rate of the US dollar against the Iraqi dinar, as this decline continued for a week, recording 145,300 Iraqi dinars in yesterday’s trading, Sunday, against 100 dollars. However, it returned to record an increase, reaching 145,300 Iraqi dinars in trading yesterday, Monday, when the stock exchanges closed. For 100 dollars, while the price of the dollar this morning recorded 144,750 Iraqi dinars for 100 dollars.

Citizens praised the actions of the Central Bank in seeking to resolve this crisis that has accompanied them for years, calling on these concerned authorities to conduct such treatments to determine the extent of their ability to narrow the gap between the official and parallel prices.

Who is the ruler?

Citizen Ali Abboud, who owns a small company, is trying to predict what the market will do with regard to hard currency and its fluctuation. He confirms that “I have no confidence in the guesses that are running through my mind, as the market is a pharaoh that no one can know, so this joy of a decline is happiness disguised as bewilderment and anticipation.”

Abboud adds to (Al-Mada), “With numerous statements by the Central Bank of Iraq and the Iraqi government to develop solutions to solve the crisis of the rise in the dollar exchange rate in the country, some of us have wondered about the extent of their control over the crisis, and who is in control to create this phenomenon that every Iraqi citizen suffers from?, If the problem is solved, what is the reason for this? Many questions are raised by the citizen to the concerned authorities, but is there an answer?Wizards but!

The financial and economic advisor to the Prime Minister, Muhammad Shia al-Sudani, Mazhar Muhammad Salih, explains in a statement followed by (Al-Mada), that “the reasons for the decline in the dollar exchange rate in the parallel market are the high capabilities of Iraq’s foreign currency reserves and the good management of foreign trade financing during the last period.”

Saleh stated that “the parallel market is gradually approaching the official central market, due to the presence of regular foreign trade by the private sector through the compliance platform and the great flexibility that banks have shown in dealing with this platform for the purpose of securing transfers.”

He added, “The openness to transfers through various methods, including payment cards in all their forms, importing foreign cash currency into Iraq, and financing foreign trade in various currencies, and not limiting this transaction to dollars only, led to a decrease in the dollar exchange rate in the parallel market as well.”

While financial and banking expert Mustafa Akram Hantoush confirmed, “The issue of the dollar has been taken to great lengths by the Iraqi government, and the issue of gold and cigarettes, which were smuggled through the Kurdistan region, has been dealt with due to mismanagement by the Department of Standardization and Quality Control.”

Hantoush added in an interview with Al Mada, “The treatments carried out by the government transformed these two, who governed them, from the largest traders in the market to dealing with the official market, and this matter is good, and this led to the entry of traders to the platform.”

He explains, “There are other treatments, including introducing small merchants through the TBI, who are merchants who own small companies.”

Pointing out, “The visit of Prime Minister Muhammad Shia Al-Sawadni to the United States contributed to giving comfort to the merchant who needs the dollar that there is no need for the purchase process before a long time.”

We need the parallel market.

On (March 14, 2024), the Governor of the Central Bank, Ali Al-Alaq, announced an understanding with the US Treasury to reconsider the sanctions imposed on Iraqi banks.

Al-Alaq said in a press statement after being hosted by the Parliamentary Finance Committee, followed by Al-Mada, that “the process of printing the local currency takes place according to the required financial cover.”

He pointed out that “the instability of the exchange rate is due to the presence of illegal trade carried out by small traders and some speculators.”

As Hantoush continues his speech to (Al Mada), “There are some files that have been dealt with. As for travelers, there are some banks that are booking and receiving in a real and official way, even though the Central Bank has not created a platform for the traveler to include all banking companies and banks, and this is what is causing pressure on the parallel market.” In addition, there is no platform for trade with Iran and Syria for commercial exchange, booking remittances, and dealing in gold, as we do with Turkey.” He stressed, “We have a need for the parallel market, as there is trade that is not covered by the Central Bank of Iraq, in addition to the banks that control the dollar that do not compete, as today there are banks such as (Citibank, JPMorgan Chase), JP Morgan, and the American Citibank, which are affiliated with specific countries.” A foreigner is the one who receives the dollar, buys it from the central bank and controls its value, so she sells it for 132 or 142 and the merchant is helpless.

Therefore, these banks also have an influence on the exchange rate of hard currency and its rise and fall, even though this matter is not true and Iraq has a law that prevents through monopoly.

Strengthening the banking sector

Observers of the scene confirmed that there are several reasons for the return of the rise in the dollar exchange rate in Iraq and its instability, including methods of smuggling foreign currency out of the country, as well as importing goods from Iran and neighboring countries, with invoices either for fictitious commodity deals, or with forged invoices in which prices are inflated to significant levels. While some merchants and importers hide their names from their commercial transactions so that they do not appear on the lists of the Central Bank, or tax and customs, and some of them do not have an importer’s certificate that allows them to conduct commercial exchanges in the first place.

Hantoush continues his talk to Al Mada, stating, “We must work to strengthen the banking sector in the country, and create competition so that some banks do not control the dollar and monopolize it. These reasons only lead to a decline, but the official price of the dollar is excluded.”

He concludes, “There are many transfers arriving from countries via (Western Union) with a value of 140 thousand dollars per transfer, along with the price and other matters, and this needs to be reviewed to stabilize the exchange rate and return it to real levels below 140 or 145. Otherwise, everything we talked about is not a small thing.” Who harms the parallel market.”

It is noteworthy that the Council of Ministers announced, on February 7, 2022, the approval of amending the dollar exchange rate to 1,320 dinars per dollar, and about a year ago, specifically since the start of the Central Bank’s work on the electronic platform and the international financial transfer system “SWIFT”, no The dollar exchange rates in Iraq are stable despite the attempts of the government and the central bank to control the exchange rate in parallel markets.

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AL-SUDANI CHAIRS A MEETING TO FOLLOW UP ON THE OUTCOMES OF THE WASHINGTON VISIT AND ISSUES GUIDANCE TO THE ADVISORS

AlforatNews: Prime Minister Mr. Muhammad Shiaa Al-Sudani chairs a meeting to follow up on the outcomes of the Washington visit

The Prime Minister, Mr. Muhammad Shiaa Al-Sudani, chaired, this evening, Tuesday, a meeting that included a number of advisors to the Prime Minister. The meeting discussed the file of the Washington visit, and the follow-up of the implementation of the agreements and understandings concluded by the official Iraqi delegation, headed by the Prime Minister, with the American side, during the last visit, based on the government’s approach in closely following up on all the files it is working on, including those related to foreign relations and understandings with Governments of countries, the latest of which is the relationship with the United States.

The meeting witnessed a discussion of the results of the meetings of the Supreme Coordinating Committee (HCC), concerned with activating the framework agreement between Iraq and the United States with its seven axes, as well as a discussion of the important economic partnership file concluded by the Iraqi private sector with major American companies. 

Mr. Al-Sudani stressed the importance of following up on the understandings reached between Iraq and the United States in many areas, in order to arrange the bilateral relationship, in a way that serves the highest interests of Iraq. His Excellency pointed to the need to benefit from the competencies that the Iraqi communities abound in reconstruction campaigns and service provision, In implementing the priorities of the government program, His Excellency described these competencies as idle wealth.

 The Prime Minister directed the advisors to arrange priorities in following up on the outcomes of the Washington visit, and for each advisor to follow up on a specific file, along with the relevant ministry and the Iraqi embassy in Washington, and to submit what is verified from it to His Excellency. He also directed to appoint a special secretariat for the Supreme Coordination Committee ( HSS), and emphasis on continuing periodic meetings, to follow up and review what has been accomplished.

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Al-Sudani: The government is serious about moving to a diversified economy and supporting the industrial sector

Al-Sudani in his speech at the opening of the continuous casting factory at the General Company for Steel Industries in the capital, Baghdad

The state and the government are committed to paying attention to and caring for the rights of workers, especially since the government has made important strides in guaranteeing the rights of workers at the level of legislation represented by the Labor, Retirement and Social Security Law.

The government has placed industry as an important sector for economic reform in our dear country, based on the fact that Iraq is an industrial country, just as it is an oil and agricultural country, in light of the availability of all work requirements, including raw materials and infrastructure. 

We affirm the government’s commitment and seriousness to support the industrial sector to move from a country dependent on oil revenues to a diversified economy, and this goal can only be achieved with the presence of an active and financially and technically capable private sector. 

Life returned to the General Company for Steel Industries by operating the continuous casting plant to convert large quantities of scrap into iron billets.

This year is a year of achievements, and the government is implementing this slogan in word and deed by opening many projects that were stalled.

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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