My contact told me not to expect any move forward with the Project to Delete the Zeros until this new administration signals, they will “fully” support it and the “process” and move to the end of the process, which is, as we all know, the reinstatement. Remember we don’t go to the bank until the reinstatement back on FOREX occurs, the end of the process. Then the new rate also has to coincide with a rate of the Iraqi Dinar we are willing to exchange for.
My contact also told me there is a planned meeting next week with the director Ali Al-Alaq to review the status of the committee work and plan out the next phase of the project to delete the zeroes. I asked “next phase”? Please explain, I said? I was told that the CBI will no longer be supporting the currency auctions come the end of the year. I already knew this. But this was the best part when she told me they are now working on many more foreign banks besides the already arranged four (4) U.S. banks that are going to also come into process of supporting the international conversion of Iraqi Dinar to Dollars on payment of imports to Iraq. Why would these other banks want to exchange Iraqi Dinar if they were not going to be worth something and globally traded? But now there are more banks coming onboard.
This news was VERY good news for all of us. It tells us there is going be some huge change in policy of currency exchange for international trade with Iraq. Think about it, why else would the CBI make such a drastic change in policy with the currency auctions if the US didn’t tell them to “ditch the dollar” and do it now. Why is the US Treasury working so hard and even occupying an entire floor of the CBI if not to help them ditch the dollar.
But in order to do it Iraq needed the reforms as I described in the “Pillars of Financial Reform”. Remember according to the Obama plan reforms come first, then they can rebuild their economy and somewhere in the new economy building phase, they strike out and delete the zeroes and reinstate. Didn’t we just read this in a recent article in my Nov 5th Newsletter? So, come the end of 2024 don’t you think these reforms will be ‘good enough” to let the Iraqi Dinar finally get to FOREX? I was told t his is their target. We are now hearing mostly about the economy and rebuilding it. Seems the news from Iraq changed over from talking mostly about the banking and stock market reforms to rebuilding the economy. Yes, it seems it’s now all about the economy.
Remember, and I keep asking you to remember, that the RV is really a byproduct of the process, get it? It all about the process. I believe they no longer have a choice. To ditch the dollar, they will have to get rid of the currency auctions and do business of foreign trade just like any other country. Remember that the currency auctions were imposed upon Iraq as part of the fix to help Iraq survive while under the Chapter VII sanctions. Those sanctions have been over since Dec 2022.
To sum it all up – To me I see what is happening in Iraq as a final “cleanup” from the sanctioned days and war years. Kind of like the final rinse in the washing machine before the clothes come out clean. They are getting back on their feet, they are getting clean of corruption. Remember that under Saddam Huissen, there was massive corruption too only we never knew about it then. The concentration now it mostly on using the banking sector successes and new laws to rebuild economy. Yes, the groundwork or foundation has been laid out.
In the coming years, you will see Iraq as a major tourist destination and people will flock from around the world to see their museum treasures. I may even return there someday myself and remember my military time. It would also be nice to perhaps have dinner with my CBI contact in person. Maybe I will get a tour of the new CBI building.. ?
I want to bring your attention to an article titled “ICC CREATES IRAQ ARBITRATION CMTE TO BOOST FOREIGN INVESTMENT”. I quote from the article- “The International Chamber of Commerce (ICC) in Iraq has reportedly established a local arbitration committee, aimed at minimizing financial losses from external arbitration and attracting foreign investors.” This action is just yet another link in the series of events that tell us Iraq is going international all the way. If companies are going to function in Iraq there must be a means to settle disputes besides going to the federal courts. Arbitration opportunities first is always a good option and can save companies a ton of money from going to international courts for disputes. Did the WTO want this too. You can bet they did!
Where the hell is Azerbaijan? What happened with the Azerbaijan currency?
I want to point out this currency revaluation that happened in 2006 and passed everyone right by… Let’s take a look what happened and how you missed it and why. The title to the recent article today is “AL-ALAQ STRESSES TO AZERBAIJANI AMBASSADOR THE IMPORTANCE OF COOPERATION IN TRANSFERRING MONEY TO FACILITATE TRADE BETWEEN THE TWO COUNTRIES”.
You might want to go read the short article. It is such an important article. Important not so much because for our Iraqi Dinar investment but more important for understanding how this currency market actually works.
I quote from the article: “The Governor of the Central Bank if Iraq, Ali Al-Alaq, stressed today, Wednesday, the importance of cooperation in terms of exchanging expertise and the process of transferring money to facilitate trade between Iraq and Azerbaijan.” Yes, trading partners with yet another country with a currency worth something 1 AZM = 0.59 USD. That almost 60 cents. What the IQD worth 1/6 of a penny? Can you see the cumbersome monetary exchange process between the two countries in converting?
Also the author “pointing out the importance of cooperation at the level of exchanging expertise and the process of transferring money to facilitate trade between the two countries.”
You should know that when Azerbaijan gained independence from the Soviet Union, it substituted the Soviet ruble with the
, which also went through a period of high inflation in the first years, rendering the coinage obsolete. Didn’t this happen to Iraq too?
The current manat symbol AZM in circulation exists since the redenomination in 2006, when old manats were substituted with lower face values and new design. The currency has mostly been pegged to the US dollar, at what is now the rate of ₼1.70 to US$1 or today 1 AZN = 0.59 USD. Okay so what’s Mnt Goat’s point?
My point in explaining all this to you today and from the article is this: First, do you see how the country of Azerbaijan’s currency evolved over time? Yes, they too went through a redenomination from hyperinflation due to politics.
Second, do you see how it took time for the rate for the AZM to settle down and to be what it is today, the nominal steady rate.
What are the common elements of the AZM RV compared to the IQD RV?
1.Had to de-ruble their economy first, when changing over to the manat.
2.Issuing of the newer lower denominations.
3.First went through a period of higher inflation, once changed over to the manat and de-rubled.
4.The country needed a new face and design on their currency when it gained its independence.
5.The new AZM then had to be stated back on FOREX
Does all this sound familiar to you? can you see now the process of Dr Shababi with the IQD is nothing new? Its’ the ‘PROCESS”, yes the process of what they usually do to come back with a viable currency. We need to watch the process carefully not some bank stories, bank memos or rumors of exchange centers opening, etc.,Get it?
Do you see commonality here to what happened in Iraq? These are the most common elements of these currency revaluations and the processes that go on along with them. Remember a previous article told us that 60 countries went through this process, just like this. So why didn’t you hear about some of these other countries on the news? The fact is you won’t and you wouldn’t even heard about the manat either had it not been for following the Iraqi Dinar and this article from Iraq. But Azerbaijan’s currency revaluation is all over now, or is it?
If someone played their cards right in the recent past someone could have made millions off the changeover from the Soviet ruble to the manat. Do you see it now? Okay, so let me explain yet further.
So, this stuff happens in the currency market all the time only you have to follow the politics along with the economics of the country, to see it. This is why I keep telling you that you can’t separate politics from economics. You can get all this kind of information from the IMF and World Bank internet sites. Its all there.
But it’s all public information and out there for the taking. Yes, they created this concept of this global currency reset and the real reset is happening already right in front of your noses only many of you can’t see it because they dwell so much on the Iraqi Dinar as a hinge pin and these this “first basket” of currencies they wait for it. Yes wait on the sidelines for, meanwhile all these other currencies have also been revalued.
In today’s article titled “THE IRAQI COUNCIL OF MINISTERS APPROVES A SET OF SERVICE, ECONOMIC AND URBAN DECISIONS”. The Council of Ministers, headed by Mohammed Shia Al-Sudani, issued on Tuesday, during the forty-fifth regular session, a number of important decisions that fall within the government’s efforts to improve services and. strengthen the economy and infrastructure in Iraq. This article just backs up with what I just told you above. The efforts, thus now the current news from Iraq is mostly about how they plan to rebuild their economy.
Then along these same news lines were read another article titled “THE SLOGAN “MADE IN IRAQ” .. THIS IS WHAT IT NEEDS TO ACHIEVE “REAL IMPACT“. In it economic expert Safwan Qusay confirmed that the slogan “Made in Iraq” will not achieve a real impact unless the appropriate financial tools are provided to enhance local industrial production. Qusay said, “Recovering the due funds will contribute to expanding the scope of the Industrial Bank’s influence in supporting the national industrial machine,” adding that “Iraq is in dire need of specialized loans to support various industries such as tourism, entertainment, and the fishing industry, as these areas generate revenues that contribute to strengthening capital.” From this article can you see now how the banking reforms are going to help accelerate the rebuilding the Iraqi economy? Yes, by reforming the banking system it is going to allow capital to flow to complete these much needed projects and industrial base.
Yes, then along these same news lines were read another article titled “AL-SUDANI: THE GRAND FAW PORT IS A STEP TOWARDS A NEW IRAQ IN THE HEART OF THE GLOBAL ECONOMY” Prime Minister Mohammed Shia al-Sudani stressed, during his visit to the Grand Faw Port in Basra Governorate, that “the port represents a step towards a new Iraq in the heart of the global economy.” Here it is and summarizes what I have been saying. In the article and I quote – “Al-Sudani pointed out that development and economic transformation are an “integrated approach,” stressing that “Iraq was and still is a fundamental pillar in the global economy,” and that “the path of development will be an artery linking most countries in the region.”
Bottom line is, Iraq needed the infrastructure just like any other country to move ahead in its economy. Infrastructure takes many forms. It’s not just roads, water, sewer or electricity, which we witnessed them struggle with also in the past. It’s also Banking, Ports of entry to facilitate trade, Factories, Trade relations with other countries, etc.,
I really liked this article I will review today. Its titled “MAKKIA: IRAQ IS HEADING TOWARDS A MAJOR INVESTMENT MARATHON”. In it the head of the National Investment Commission, Haider Makiya, confirmed on Wednesday that Iraq is heading towards a major investment marathon for many projects, while he indicated that financing from international institutions reduces the burden on the Ministry of Finance by granting loans for investment projects. In the article
Makiya also said “we found many economic visions in the first version of the Iraq Economic Forum“, noting that “the issue of the possibility of benefiting from the financing of international institutions known to the Central Bank was raised.
Why is this news so important? It is important because the “thinking” and now the “ability” to shift away from the CBI financing everything in Iraq from the CBI reserves, they are now reaching out to international institutions for money. So, you see once again the banking and stock market reforms are paying off and going to pay off even bigger. It’s all now coming together. First the reforms then they can rebuild the economy because you first needed the groundwork laid out.
