Samson: New financial statement on the adjustment of the dollar exchange rate
8th January, 2021
The Ministry of Finance issued, on Friday, a new statement regarding the measures supporting the increase in the positive effects of adjusting the exchange rate of the dollar against the Iraqi dinar.
She added that she “led extensive discussions in the past weeks after the approval of the budget by the Council of Ministers regarding the follow-up to adjusting the exchange rate with many parties inside and outside the government.
These discussions will culminate next week with a proposed expanded meeting with the main economic actors from the public and private sector, where the Ministry of Finance will develop its policy program.” Detailed designed to maximize the benefits from an exchange rate adjustment.
She indicated, “She hopes that these procedures will coincide with discussions within the House of Representatives on the budget, and it should be noted that the main policy measures to protect the poor and the vulnerable have been included in the budget and discussed in the minister’s statement regarding the budget.” LINK
Samson: Iraqi Finance announces new developments in the dinar exchange rate
8th January, 2021
The Ministry of Finance promised on Friday to make an amendment to the exchange rate of the foreign currency against the Iraqi dinar, after the decision taken by the Central Bank to reduce the value of the local currency and increase the prices of imported goods and goods in the country.
The ministry said in a statement received by Shafaq News that it is fully aware that there are a number of supportive measures that must be taken to increase the positive effects of adjusting the exchange rate. The Ministry of Finance was unable to do this publicly due to the sensitivity of the issue and because the budget must first be approved by the Council of Ministers. And she continued that she led extensive discussions in the past weeks after the budget was approved by the Council of Ministers regarding the follow-up to adjusting the exchange rate with many parties inside and outside the government.
She added that these discussions will culminate next week with a proposed expanded meeting with the main economic actors from the public and private sectors, where the Ministry of Finance will develop a detailed policy program designed to increase the benefits from adjusting the exchange rate.
In its statement, the ministry expressed its hope that these measures will coincide with discussions within the House of Representatives on the budget. The statement indicated that “the main policy measures to protect the poor and vulnerable have been included in the budget and discussed in the minister’s statement regarding the budget.”
The Central Bank of Iraq had decided to raise the price of selling the dollar to banks and exchange companies to 1460 dinars, from 1182 dinars to the dollar, in order to compensate for the decline in oil revenues caused by the deterioration of oil prices. Iraq relies on 90% of its income on oil revenues, and the last time it devalued the dinar was in December 2015 when it raised the selling price of the dollar to 1182 dinars, compared to 1166 dinars in the past.
The central bank launched its decision regarding the new pricing for selling the dollar in the auction for the currency on the 20th of last December, and since then, the bank has witnessed a decline in currency sales. Iraq is under great pressure under the weight of the worst economic crisis it has witnessed since 2003 until now due to the low oil prices and the outbreak of the Corona virus. LINK
MilitiaMan: What a find Samson! I can imagine sleepless nights are coming to many.. Those that go to bed at 9:00 may think twice about it now.. lol lol Thank you!
They say this is a new development in the dinar exchange rate. Well, fairly sure we can see that this was a part of the plan for some time and they are rolling out that plan.
They used the Devaluation on purpose, imo, knowing that there would be effects both of which served a purpose to stimulate the citizens to bring in additional 3 zero notes, citizens feeling that if they devalue again to 1660 they would lose even more purchasing power.
They knew that the citizens would get pinched, but, it was apparently a necessary evil. One that may not have been as successful as thought. Regardless the plan was to be short lived and it appears to be the case now As, we see the Finance Minister has promised today to make an amendment to the exchange rate for positive effects and with supportive measures.
The fact that they budget was past and they kept the data close to their chest is clearly a true sign of the sensitive nature of things. We all know the 2019 FMLA and the 2020 Budget was kept under wraps for a purpose as well. That imo is the sensitivity of the whole plan. The new International Article 8 Compliant Exchange Rate. The REER.
The HOR (house of representatives?) is said to meet Saturday.. They say it is hoped that the meeting will coincide with the COM (Council of ministers) and the HOR in regard to the 2021 Budget with an amendment to it.
Well that imo is why they played this out this far. Because the data in the 2019 FMLA and 2020 was so sensitive in nature. The sensitivity is the mechanism in the data to go to a market economy.
They have the systems in place to do so now.
They have the Electronic system in place. BUNA is well known to have interlinked with the region. That includes the members of the AMF. That would also include indirectly the IMF / SDR.. They communicate with each other at times.
I did see that yesterday!! It lines up that 1450 less three zeros is similar to SDR $1.450. The article a day agoy said in May 2020 the Dinar was valued at 682 Dinars to the Dollar. The real value, they said. Then they spoke of the 1182. Now We see the devaluation down to 1450 real close.. $.682 is the value of 682 Dinars once or if the three zeros are dropped. 1/1.45 is .69 real close.
See the similarities converging. Take not of the SDR is $1.45 real close.. Key thing of interest is the AMF / AAD is $420+-. That is just under 3xSDR..
So, It sure looks like the process was to devalue ahead of the revaluation to come as part of the plan has legs. The US Fed told us they can Devalue and Revalue and it appears to be holding true. As stated above.
Now lets think about the green dollar and blue dollar articles over the last couple weeks. They seem to support there is a transition going on. The dollar auctions are showing scarcity to the cash sales (see above). Yesterday, case in point again, the auctions were a mere $100,000.
The green dollar and blue dollar are different not just in color. The green dollar was said to be pouring in illegally from the Kurdish region, as it was put to us. The blue dollar (different) was being used by the central bank and they were selling at 1450.. Keep that in mind.
The blue money we thought was apart of information in respect to NSCNs. In effect that may be true still to a greater degree than thought relationship wise. As the blue dollar is to be used in the future, as it may be a digital dollar that will need to be paired with a digital Dinar where by the new small category notes come into play. They will need to have similar technology in respect to digitization and valued accordingly to an international standard article 8 compliant rate, imo.
The blue dollar that Frank asked Petra and I to consider closer, is because he believes imo that the Blue dollar is something Big that got started on or around the 1st of January, just as the well placed clip he offered us from Trump rally showed him saying Something big is about to happen!
The article yesterday speaks of a spiral if they don’t contain the spending an fill in the gaps with alternative incomes outside of oil. We all know that Iraq has been ready to clear and settle trades through the BUNA system. That system will be able to clear trades not only with Iraq but all countries affiliated with the AMF. Second mention is for purpose.
The countries currencies would have to be able to be cleared similarly to each other. Just as the dollar will need to be or now is able to be. It has been implied the Blue Dollar is on the other side.. Meaning to me that it is coming into Iraq already, as in it is done and ready to go.
We await Iraq e-Dinar now. imo
We saw that the 2021 budget has been side kicked back over over the last couple months to now be to the end of the rail line, Saturday. That is tomorrow. Interestingly the Tuesday session for the Parliament was to be for Tuesday this week and it was canceled with out notice of a reason as to why and was pushed out. We can glean from the above that the sensitive nature is why!
We have heard over the years that there may come a time where the citizens outside western eyes may get four days alone with their new sovereign money, effectively anyway. From post Tuesday four days is Saturday and the is the same day exposure of the 2021 may hit the HOR.. Let see..Much of what is in this post was written yesterday..lol
So if we keep in mind the pairing of rates, the value of the Dinar back in May 2020 was 682 and now is 1450, by dropping the 3 zeros the Dinar 1.45 is or will have converged with a competing AMF to SDR basket that can talk if you will through the BUNA platform..
3xSDR is where countries within the IMF are said to be. Samson’s post of the other day of SDR $1.45+- is suggesting there is now a convergence leading up to the HOR meeting Saturday..
I like it!! Imo ~ MM