Zig’s Place Chatroom News Monday Afternoon 12-5-22
Zig Next Saturday @Kaperoni (NORV– who posted above) will be doing a conference call with Enorrste…I copied the details at https://dinaralert.webs.com/conferencecalls.htm where his calls are archived….the call will be recorded and the recording link will be posted there and here after the call….Details below:
DinarAlert Year-End Conference Call – Saturday December 10th 2022 6pm PT, 7pm MT, 8pm CT, 9pm ET
Enorrste and Kaperoni will host a DinarAlert year-end conference call Saturday December 10th, 2022 to wrap up the latest developments. Focus of this call will discuss the new Iraqi government, economic and banking developments. Q & A included. Join us at: 971-224-6616 Access code #807157
Butterfly The Central Bank announced today, Friday, that the cash reserves exceeded 160% of the value of the Iraqi dinar.
“The central bank’s reserves exceeded for the first time the threshold of 90 billion dollars, which is a very large number, and represents an indication of the recovery of the Iraqi economy, and a great support for the value of the Iraqi currency,” said the Central Bank’s advisor, Ihsan al-Yasiri, in a statement to the official agency.
He added: “The Iraqi currency is now witnessing a great rise and recovery, as it is one of the strong international currencies, although it is not an international currency for circulation.”
Al-Yasiri explained: “The government and the Ministry of Finance have an opportunity to support the fragile and poor groups and retirees with low salaries and those covered by social protection and retirees through these funds by allocating part of them within the 2023 budget.”
TWW http://www.blissfulvisions.com/pdf/HR-5404.pdf
https://www.ashtaront
https://www.ashtarontheroad.com/history-of-nesara.html
Sheila @TWW Both links informative … something good this way comes.
TWW Announced, Nov 22,22, in Iraq for incountry exchange rate: dinar is worth 1.5 times of current value. Glory days rate was $3.22usd + half rate $1.61usd = $4.83usd?? Plan for internation rate mid jan 2023.Reposted without above link thanx to Zig
Zig TWW : I wish I could believe what you posted above….you know who is going to go after you for posting that, right??….lol
TWW Zig Again Thanx, yes I kno who is going to kick me around. Remember who I was treated years ago when I post abt Kuwait?? Thats cool. not who but *how I was treated.
Zig @NORV: Now be nice if you comment about what TWW posted please….thanks….
NORV Zig It’s all nonsense. There is no RV or even a new rate. The rate is what it is..1460. There will be no change until Iraq passes laws, encourages investment in the private sector and begins to diversify. Only then can Iraq begin to float the dinar and allow it rise. This is how monetary policy work. This is how a currencies value is determined by supply and demand. This the only way Iraq can reduce the money supply (which is currently over 80 trillion dinar). What TWW is doing is posting BS, guru nonsense. Sorry, but he is misleading people.
NORV If you read the most recent talk about a 20,000 dinar note it also reflects the plan to gradually raise the value, reduce the money supply and subsequently gradually introduce new lower notes. The only other alternative has been stated by Iraq which is a currency exchange or LOP. Which everyone knows provides very little gain on the dinar. Something we do not want to see happen and would require parliament approval prior to doing so.
NORV https://baghdadtoday.news/206204-%D8%A7%D9%84%D8%A8%D9%86%D9%83-%D8%A7%D9%84%D9%85%D8%B1%D9%83%D8%B2%D9%8A-%D9%8A%D8%AD%D8%AF%D8%AF-%D9%85%D9%88%D8%B9%D8%AF-%D8%B7%D8%B1%D8%AD-%D8%B9%D9%85%D9%84%D8%A9-%D8%A7%D9%84%D9%8020-%D8%A7%D9%84%D9%81-%D8%AF%D9%8A%D9%86%D8%A7%D8%B1-%D8%A7%D9%84%D9%89-%D8%A7%D9%84%D8%B3%D9%88%D9%82.html
NORV Key points in this article from the CBI are… “the 20,000 dinars category is an intermediate currency between 25,000 and 10,000, as it will have a role in redrawing the structure of banknotes,” and “This currency is issued at the end of 2023.”
NORV We know one thing for fact..If the 20,000 dinar note is not coming out until end of 2023 there is no RV, or increase in value until at least then. And we also know they are giving the government a year to do what I mentioned above passing laws etc. to begin to create the conditions developing/diversifying their economy.
Sah NORV Nice article. Is the 20,000 still hibernating or is it on the streets now or in 2023?
Sah I question that article because I thought they were already out on the streets.
NORV No, not out yet. There is no need for it at this time. I assume the CBI expects the gov to do it’s job first.
NORV the 20,000 dinar note as stated by the central bank is a step towards redrawing the structure of banknotes.
Sah A lot of the locals over there complain that is hard to make change there. Maybe the 20,000 will help.
NORV That to me means they will gradually over time as the dinar rise small notes
NORV well it either going to a gradual transition as the economy grows (which could take several years) with new notes or they will execute the neutral event LOP.
NORV In either case, Iraq must reduce the money supply significantly if they ever want to add value to the dinar.
Sah Does not Lopping cause double digit inflation if they do that?
NORV no
NORV many countries have exchanges currency. I still think it is unlikely they would execute it, but it is very possible.
NORV exchanged
Sah Is there any disadvantage to lopping? I thought there was?
NORV That being said, Their actions imply they will raise it gradually over time as the IMF stated years ago.
NORV Sah The main dissadvantage would be investor confidence in the banking system
NORV And we know Iraq is working hard to create confidence. Therefore, again, I think it is unikely they would do a currency exchange
NORV Investing in the dinar in my view is a long play. based on Iraq’s behavior it could be another 10 years for them to get their shit together
Sah I have witnessed high inflation after a Lop on countries that have done that. Does not feel very stable.
NORV Hopefully not..but we have not seen Iraq pass a significant economic law in 4 years
NORV Despite what many try to say about the IMF and Iraq doing what they want and the IMF is not in change etc. The truth is, Iraq has followed all directives from the IMF so far.
NORV So I am betting on the IMF directive from 2013..
NORV staff encouraged the authorities to consider creating the conditions which would make possible a move to a more flexible exchange rate policy. Such flexibility could allow a predictable and gradual appreciation of the nominal exchange rate, triggered by strong oil revenues and the Balassa-Samuelson effect, to accommodate a possible real exchange rate appreciation while keeping domestic inflation low.”
Sah There are about more than 50 on the books that are waiting for their second reading or have already been passed and read but not posted into law. What happened to all of those?
NORV And to be honest, the actions so far from the CBI seem to be more in line with that directive than anything else.
NORV Sah closer to 100 laws outstanding.
Sah Is the CBI of Iraq owned by the Rothchilds. Are not most banks owned by someone other than the government?
NORV No idea other than political/tribal conflict keeping them from passing.
NORV Google results claim 100% state ownership
NORV in any case, the IMF is there for a reason and that reason is the mitigate and guide the global banking system
NORV So if Iraq wants in the game, they have to follow the directives.
Sah The IMF has been there for years working with them and the World Bank also.
NORV Of course. The IMF, World Bank are part of the UN.
Sah I do not know why Iraq is always trying to change the rules with the IMF and tries to walk away and get thier own way but the bottom line is they can’t. They need them.
year of they were planning a currency exchange. This is just one of many hints they are following the directly to “allow a predictable and gradual appreciation”
NORV directive
Sah Iraq wants to be international so they have no chioce to follow the rules.
NORV Not so sure Iraq wants to be international. In some cases yes…but the many tribes that are happey with stealing do not want change.
Sah I was glad to hear the the UK Banks stepped in to help bring thier CBI up to par digitally.
NORV Iraq is a slow moving turtle at best. To much to oversome
NORV There are at least 3 different parties creating conflict with growth and integration..The crooks are #1
NORV #2 are tribes that do not want change
Sah A couple years ago Iraq applied to IMF for article 8 and was reviewed and told they had to do a list of things before the could submit thier application. I am still waiting for that list to be completed.
NORV #3 are various political parties controlled by the various tribes.
NORV This is well documented by the IMF and world bank in their reports.
NORV Even the World Bank was shocked by the behavior of Maliki several years back.
Sah They were told to control the corruption. Pass laws for it which they did and then did not implement it for years. When half of parliament is corrupt it is hard to implement these laws.
NORV This is a candid response from the World Bank…
NORV https://documents1.worldbank.org/curated/en/722151468038689300/pdf/ISR-Disclosable-P113337-12212012-1356109721447.pdf
NORV There has been a major change in CBI management with the appointment of a new Governor. On October 14, 2012 an Iraqi judiciary issued an arrest warrant against the Governor of CBI, Dr. Sinan Al-Shabibi. Consequently, the Iraqi government appointed Dr. Abdul-Baset Turki, the Head of BSA, as an Acting Governor of CBI, after the court ruling ordered the removal of Dr. Shabibi from his post.
The World Bank has received an official letter dated October 21, 2012, notifying management of such a change, since the CBI is the implementing entity of this project. Dr. Shabibi, who is currently out of the country, and more than a dozen other officials at the institution are being investigated for misleading monetary policies, as well as alleged improprieties involving capital requirements for local banks and foreign-currency auctions overseen by the central bank.
It is worth noting that the replacement of the Governor of CBI by the Head of BSA, could affect project implementation, and possible delays with the change in management. Following this decision, the team has met the Iraqi authorities, to ensure irreversibility of the reform program, and smooth implementation of the project.
NORV This is key… Following this decision, the team has met the Iraqi authorities, to ensure irreversibility of the reform program, and smooth implementation of the project.
NORV Basically they told Maliki, you can get rid of Shabibi, but your not going to stop the banking reforms But we see, some 10 years later…Maliki did in fact stop progress
NORV This is why there can be no prediction on how long economic reforms will take. And with no reforms there will be no increase in value.
NORV Well I got things to do. Have a good night.
Sah Thanks for the information. I am surprised that Maliki has lasted this long. I am sure because he is very rich and somehow still gets his way.
Zig Next Saturday @Kaperoni (NORV– who posted above) will be doing a conference call with Enorrste…I copied the details at https://dinaralert.webs.com/conferencecalls.htm where his calls are archived….the call will be recorded and the recording link will be posted there and here after the call….Details below:
DinarAlert Year-End Conference Call – Saturday December 10th 2022 6pm PT, 7pm MT, 8pm CT, 9pm ET
Enorrste and Kaperoni will host a DinarAlert year-end conference call Saturday December 10th, 2022 to wrap up the latest developments.
Focus of this call will discuss the new Iraqi government, economic and banking developments. Q & A included. Join us at: 971-224-6616 Access code #807157
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