THE DOLLAR IN THE PARALLEL MARKET.. AL-SUDANI’S ADVISOR PRESENTS A DIFFERENT VISION AND ECONOMIC EXPERTS: AN IMAGINARY STABILITY?
The advisor to the Iraqi Prime Minister disagreed with what four economic experts said regarding the “stability” of the US dollar exchange rate against the Iraqi dinar, stressing that “the stability of the dollar is real and solid and not imaginary as some believe.” However, the economic experts said that the stability is “not reassuring,” and what is happening now is a decrease in the dollar’s volatility, while stability will occur when the dollar returns to the official price of the Central Bank.
The Prime Minister’s Advisor for Financial Affairs, Mazhar Mohammed Saleh, says, “The exchange rate of the dollar to the dinar in the parallel market today in our country does not constitute any relative importance in influencing the stability of the general price level, which has become stable in its components and trends due to the influence of the official exchange rate factor currently dominating the financing of foreign trade (imports), amounting to 1,220 dinars per dollar. It is a stable trend for the exchange rate and the stable external value of the dinar revolves around it, which is embodied by the state of stability in the relative prices of goods and services to a large extent.”
STATUS OF THE RV
Welcome to July. First, I want everyone to know why the RV process has not yet begun (Project to Delete the Zeros) in June as planned by the CBI. My conversation with my CBI contact this past Saturday has assured me once again the CBI is not going to be fooled again. They told me the CBI needs,
in a FORMAL written agreement assurances that the US Treasury will promote the Iraqi dinar back to FOREX, if and when the CBI begins the final stage of the currency reform. They need to move ahead, they want to move ahead. I was told it would be disastrous to increase the rate, then delete the zeros yet not move to FOREX. It all has to work in steps.
I know we all expected something is June and the US Treasury promised they would cooperate a month ago, but here we sit and its now July. The confirmation letter of agreement has not yet been provided under the Biden administration.
So, what is holding up the U.S. to give its permission and assurances? I have talked to people in the Biden administration and they flat out told me Biden in not going to give permission. But I asked why?
This is left to me to speculate on. But I believe the spineless deep state idiots running our government today could not care less about us investors and most importantly about the Iraqi people. We are all just pawns they play with. These crooked politicians already exchanged way back in 2012–2013 and so who now cares about us. Yes, this is the Obama and now Biden mentality.
I assure you this has gone way beyond us investors telling anyone what to do. It is all about “corruption” and we are now seeing it for all its worth. In my last Newsletter I talked about my conversation with my CBI contact at that time. What did she tell me then?
She told me basically the US are bastards. I wasn’t supposed to tell you that. But I owe you the TRUTH! I am no longer going to hold back. My contact told me the same. This is now ridiculous. The US Treasury knows damn well to kickoff the 3rd phase of the strategic plan was to bring the dinar back to FOREX. They were in meetings held to talk about this 3rd stage to the overall plan.
This manipulation is really sad. A decade ago, I could hardly make these claims. But come ‘on folks it has been 20 years already and the entire Europe was rebuilt in a shorter timespan post WW2. But who cares about Iraq, they say. Yes, as long as the oil if flowing, they are taking their corrupt share, the US politicians don’t give a shit about the people of Iraq. Shame, shame, shame on them. Yes, this means democrats and republicans too.
What is the latest news from Iraq?
The news is still concentrating mostly on bringing in foreign investors and they told us today that there was a two part plan, and this plan is now completed. You can read the articles on this subject matter in today’s articles section. The other part of the ongoing news from Iraq is still about the Parallel Market rate vs the Official CBI rate of the dollar. On one had the financial advisor Saleh to Al-Sudani tells us and I quote – “The advisor to the Iraqi Prime Minister disagreed with what four economic experts said regarding the “stability” of the US dollar exchange rate against the Iraqi dinar, stressing that “the stability of the dollar is real and solid and not imaginary as some believe.”
However, there are four economists who step in and disagree with Saleh. Saleh works with this issue daily and he is executing a plan. The plan takes time but Saleh says it is working and again tells us “soon” the parallel will equal the official rate. But this is weird because Saleh also says and I quote – “which has become stable in its components and trends due to the influence of the official exchange rate factor currently dominating the financing of foreign trade (imports), amounting to 1,220 dinars per dollar”. So it appears the currency auction rate has reached 1220 at some time but is not yet steady. Remember they get these fluctuations and they are a good sign but must wait for it to stabilize. I believe this is what Saleh is telling us. This is all good news.
Now let’s look at why this is all good news. Also in the same article it gives us a review of the past before Covid and under other prime ministers. It explains factors that effects the rate. I quote from the article – ““Therefore, all these factors lead the dollar to calm and stability. It previously fell to 144, but then rose again to 148, and the difference with the official 1320 is more than 15 points. Therefore, this is not stability. Rather, the correct stability is as it was before, when it was 1120 in the Central Bank and 1121 abroad.”
Now what Saleh told us has recently happened in the currency auctions. I will quote to you again – “ “which has become stable in its components and trends due to the influence of the official exchange rate factor currently dominating the financing of foreign trade (imports), amounting to 1,220 dinars per dollar”. So the rate is slowly stabilizing as has now reached 1,220 from 1,320. The goal is 1,121. Folks this is not too far off. Am I telling you they will RV when it reaches their goal. Of course not but these rates adjustments tell us they can not hold this back much longer and even with their own criteria something must be done and done soon to bring the dinar to the international investment world and free it up.
I can see some of my readers commented on the OFAC sanctions and did some research on your own. are you understanding what the US Treasury told you. What the US Treasury told you is in line what I presented to you already. The dinar is still a “risky” investment for the banks due to not being officially back on FOREX. Why is it not yet on FOREX? As far as the banks are concerned it is from the OFAC sanctions. Get it? There are no other sanctions and no other reason to justify it even if the OFAC sanctions have been lifted. Get it? The banks don’t know any better. Until the dinar is back on FOREX this stigma exists. The banks can sell and even buy (but most won’t buy only sell) much like the internet brokers. That is all they are now working under since the dinar is not yet trading on FOREX. We can see that they would luv for us to come and exchange our dinars but unless the system allows them to do and accepts the currency at the rate we need to get, this is not going to work out for us. Get it? So, lets stop going around and around and beating a dead horse. Just relax. Everything is now on the verge of going live on FOREX.
