MilitiaMan: Post #169: There are things out in articles of late to support a change to the IQD could/may come between now and the 05/31/2020ish time frame for a possible reinstatement of the IQD.
Why? Well, there are things that support going out to the 31st for many reasons, then there is support for a prior to the 22nd period, and even a sooner time frame..imo.
For instance, the UNSC meeting minutes told us that the UN will be giving 2 billion Dinar to Iraq.. That hasn’t been done yet, imo.. They’ll have to raise the rate for that small amount to do any projects of any substance or worth while..
\That 2 billion Dinar support, has me in a “literally” at any time frame now through the end of month, but, it supports to me a sooner rather than a later aspect. imo
Why? The world needs the RI, or they wouldn’t have created the FIMA facility, CML, SLL, TALF, etc., all of which are money related facilities and or laws in place to move money transparently, fairly and smoothly around the world, and there is noted to be a need to put other currencies into the IMF SDR Basket of currencies. The World Bank and IMF suggested if there was a time to bring currencies into the basket, the time is now .
By them clearly bringing this up about the SDR basket now due to the on goings of all those things above and with the REPO market being in the state it is what and having the imo “”COV19 “” masking, the time is now.
The REPO market is interest rate oriented and the amounts of money that need to move to bail markets out is and will be staggering in scope and it is needed globally. That maybe why or is why the World Bank and IMF keep talking about the SDR basket.
The UNSC meeting was on the 13th.. Timed perfectly prior to a reporting schedule they have bi monthly and by them giving the money of 2 billion Dinars. Not in Dollars. The amount of 2 billion Dinars at a program rate is not going to do much but, with an international calculation applied to it sure would.
The fact that the USNC had that meeting on the 13th is imo that they timed it accordingly and that that timing means they have made an agreement and on schedule.. Oh ya.. imo They sure do have a schedule imo..
That money to be given out soon is or most likely will be to be found imo based off of the Escrow account that the UNSC has had in place and has been using since about 2007 real close.
It is and or was in place to facilitate the process of getting Iraq where they are now. That is where they are ready to be, as in to have their asset portfolio managed by the World Bank.
The next few hours, days to just possibly weeks are very important and have profound implications for us.
If all the data points to the final conclusion? Then that data shows us it is about time for them to raise the rate whereby Iraq becomes fully Article 8 compliant, they can potentially get a SDR basket induction, they can get into the secondary markets and have a reason for the World Bank to manage their assets, as opposed to being monitored by the UNSC..
This if it is rightfully the case, which I believe it is or at least real close, as the data comes from some of largest entities on the planet and not opinion pieces by any day economist, therefore, those Global entities mean business and that is the goal of Iraq, to open for business internationally.
Lastly, the country has no liquidity and they are in crisis. Thus, the pressure is immense and has been for some time. imo Times look very good indeed!!! ~ MM
As part of its strategy to develop its foreign reserves management in line with current and future developments, the Central Bank of Iraq signed a banking arrangements document with the World Bank’s Reserves Management & Consulting Program ( RAMP ) Reserves Advisory & Management Program
This document aims to enable the Central Bank of Iraq to obtain technical support through the exchange of knowledge and experience in the field of investment portfolio management based on a performance indicator that helps to maximize financial resources, build human capital by exchanging knowledge and developing expertise in the financial field in accordance with best practices In the field of reserve management.
It is noteworthy that this program was developed by the World Bank in 2000, with the aim of building capacities and providing consulting and asset management services, and is considered a meeting place for a network of specialists, and it serves more than (70) members around the world, most of them are from central banks, managing nearly (2) One trillion dollars of sovereign assets.
The Central Bank of Iraq
May 13, 2020
“He pointed out that “the meeting with the Prime Minister aimed at discussing the formation of this cell, announcing a decision to form a cell of an economic crisis to advance the economic reality in the country, especially since the financial situation and cash liquidity is very difficult.”
Samson: The Baghdad and Erbil negotiations are back to square one: subsequent discussions complete the precedent
09:43 – 05/17/2020
The second deputy speaker of the House of Representatives, Bashir Haddad, confirmed on Sunday that no final agreement has been reached on oil and salaries of the region’s employees so far between the governments of the Kurdistan region and Baghdad.
Haddad said in a statement reported by the official “Al-Sabah” newspaper and viewed by him / the information: “The last period witnessed extensive dialogues and meetings between the delegation of the Kurdistan Regional Government and the federal government, during which all outstanding issues were discussed between the region and Baghdad, especially with regard to the mechanism of oil export and the delivery of dues. Finance for the region on the basis of mutual understandings between the two parties.
He added, “These dialogues resulted in the formation of technical committees to proceed with addressing these outstanding issues,” noting that “these dialogues witnessed advanced steps in the time of the previous government during which the Kurdistan Regional Government showed its willingness to hand over the amount of oil agreed upon with Baghdad and exported via SOMO, and confirm The Kurdistan government committed to reduce oil production within the stipulated share in agreement and coordination with the Ministry of Oil, down to the decisions of the oil-exporting countries in OPEC.
Haddad continued, “We are awaiting the return of negotiations again between the region and the new federal government to complete the previous discussions, with the aim of reaching new solutions and understandings and reaching a final agreement that satisfies all parties.” LINK
SaraBeth: Wondering what MilitiaMan and others have to say about this article, as is mentions the salaries …Well the article title is interesting as it says more meetings are coming and to set the precedent – just that word got our attention!
Are we maybe thinking correct? Precedent = example or model …As MilitiaMan has been saying the salaries are with an aim to be paid very soon, maybe by the end of the month? IMO
MilitiaMan: He pointed out that “the meeting with the Prime Minister aimed at discussing the formation of this cell, announcing a decision to form a cell of an economic crisis to advance the economic reality in the country, especially since the financial situation and cash liquidity is very difficult.”
MilitiaMan: The Crisis Cell has been involved now for quite a few days now. Let see what results from their meetings. The amount of salaries will need to be adjusted with a rate change. The UNSC meeting indicates to me there will be one. As mentioned above in post #169.. imo ~ MM
Samson: Iraq is considering cutting the dinar as difficult options to face the financial crisis
17th May, 2020
A source close to the office of the Iraqi Prime Minister revealed that the government is considering reducing the value of the dinar against foreign currencies, as part of measures to confront the financial crisis caused by the drop in oil prices and the repercussions of the spread of the new Corona virus. According to the newspaper, “The New Arab
The source said, according to the newspaper, “The options available to Prime Minister Mustafa Al-Kazemi are mostly difficult, but there are serious dialogues with advisers and economic experts, and during the past days, several options were reviewed to address the financial crisis, including external borrowing or the devaluation of the dinar
He added: “There are also other options, including offering state factories and public properties for investment or sale, and printing the currency, but these will be the last options
He continued: “All options presented have major problems in the long and medium term, but the alternative is the inability to pay the salaries.” He pointed out that in the short term he will rely on the monetary reserve for a few months, while taking a series of austerity measures unprecedented at the state level
The current crisis is the biggest challenge for the new Prime Minister’s government, as Iraq is one of the “mono-economic” countries, because it relied on about 94% of oil sales revenue to provide salaries for employees and retirees of about 4 trillion dinars per month (about 3 billion dollars) at a time that did not reach Oil revenues have only about 1.4 billion dollars last April, according to official data LINK
MilitiaMan: I personally think this is fake news to a degree.. They tell us they have options and they all seem to be negative. The clearly leave out the #1 option.. That is is to raise the exchange rate and go international, which begets many good things as we all know by now.
Alak has told us directly he will not devalue the currency. They cannot and will not go into an international setting with what we know about economies, what the CBI has done in respect to destroying trip[le zero notes, printing small category notes, understandings with the world bank to manage Iraqs Foreign Reserves and Assets, going to a social market economy, etc..
So, yes this is news that distorts the reality of what I spoke about today.. So For Those That Inquire (SFTTI) you have my opinion. And imo these articles may be discarded in the waste bin.. imo ~ MM