Frank26 There was a meeting two weeks before that massive entourage meeting that went to DC…They told you we’re going to DC to deliver the monetary reform. There was the new exchange rate. They agreed upon it…and went back home and told contractors we’re going to rewrite your contracts with that new exchange rate…When they were all done with that…they flew to Washington DC, they delivered the message…and spent over two weeks with powerhouses that are going to build their economy.
Militia Man Non-oil revenues…Iraq has the largest sulfur deposit in the world. They can tap into that. It’s going to be part of their non-oil revenues. The amount of natural resources Iraq has is off the charts. Anything that suggests they can’t afford to do what they’re going to do and go to a market economy I think is highly mistaken.
Kaperoni For many years now the process for countries is to create the conditions for economic success, then change their monetary policy to allow their currency to float. Flotation allows a country’s currency to ascend or descend based on supply and demand as a result of that success. The success of Iraq’s exchange rate and currency then is a direct result of the economic success within Iraq. The potential is excellent providing Iraq continues to move forward and progress and create the conditions necessary for economic success and growth.
Paulette Question: “Is Iraq still on point to enter the WTO on may 9th?” Iraq has not yet passed the required Product Protection Act and the Steering Committee doesn’t even meet again until “mid-year”.
Frank26 When the float starts all heck is going to break loose because the value of your currency will literally climb on a daily basis until the CBI feels they have reached the real effective exchange rate…We believe they will start at $1.30 to $1.50 IMO and the cap it somewhere between $3.86 and $4.25.
MarkZ [via PDK] Article: “Kuwaiti Dinar to US Dollar-Top 10 highest valued currencies in the world in 2024” This article was in the Indian Express. And the Iraqi dinar used to have that number one spot. Comment: I would expect Iraq to be worth more that Kuwait. MarkZ: Absolutely. And when Iraq was the most valuable currency in the world they had not yet developed their natural gas reserves…and were not pumping nearly as much oil as they are now. Every part of Iraq is now in better shape than when they had the most valuable currency in the world.
Walkingstick [Former Iraqi Bank associate and Iraqi bank owner #1 update] He just left Bagdad…he went to Hong Kong. What for? He’s got banks he’s representing the CBI with, out there. These satellite banks are everywhere. They want their 3-zeros back. They don’t want them to go into anybody’s federal reserves.
Clare Article Quote: “Saleh said…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.”
Militia Man Article: “Economist Muhammad Hashem Helou confirmed that the central bank cannot float the dinar exchange rate.” We’ve seen a few articles over the last week openly talking about the types of regiments that are exchange rate oriented, whether it’s a fixed float or pegged etc. Saleh has spoken about it, he says it [floating] is dangerous …the environment would not be good so it wouldn’t be the best choice… Circumstances for the country of Iraq which is still primarily a rentier, which means oil based, it’s best to have a fixed exchange rate…
Frank26 Article: “Specialist: Floating the dinar is economic suicide” Economists are saying to the Iraqi citizens that a flotation is detrimental whereas the CBI Saleh, the advisor, the Financial Ministers, all these people are saying the complete opposite, ‘we’re about to float…why do you think we have all this stuff set up? Why are we following international laws? Why do you think we’re article VIII? Why do you think we’re going to be WTO is 7 more days?’ Floating the dinar is suicidal? No it’s suicidal for you.
MarkZ [via PDK] “National bank of Iraq uses Temenos for core banking and payments” They have put into effect a well used banking AP from around the world. And they have gone digital at a record pace in their banking system. We were told this was necessary so they could pull the trigger – BAM. They want us to know they have updated their banking system. This is important to the process and here we see that it is done!
Mnt Goat 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.
