RV Updates
If I can sum up the news this period in three words it would be “Electronic Banking Practices“. So just how far ahead is Iraq in their electronic banking initiative? Yes, it’s all about electronic payments and the implementation of this process. What are we talking about then when we say “electronic payments”? This process is a multi-process meaning:
1.it effects the average citizen (getting a bank account and debit card), businesses (installing and using Point of Sale technology to accept card payments);
2.foreign trade (ability to safely transfer funds to for import payments and receive export payments);
3.customs and tariffs (track payments, and receive funds electronically) and;
4.the transfer of money inside and outside Iraq (Remember that if you are to grow the economy Iraq will need an influx of investors and these investors will want to “freely” flow their capital in and out of Iraq);
Now do you think that implementation of this process is an important process to get right before they pull the trigger on the Project to Delete the Zeros and then of course the Reinstatement?
One aspect that many also forget when studying this RV saga, is about also the sanctions put on Iran by the US Treasury and that they are a major concern of the US Treasury concern over the handling of the US Dollar by Iraq. But heck… you knew that already didn’t you?
So far Iraq always has seemed to allude these sanctions somehow as they find new creative ways to circumvent the sanctions and launder money to Iran. Yes, billions and billions have flowed outside of Iraq to Iran illegally. But the worst part of this story is that the ones doing this are the mainstream politicians in Iraq. Just like in the US today as we see in Iraq they will do anything for money. But why are these sanctions imposed on Iran in the first place.
These sanctions are two fold: One is to stop the course of building a nuclear bomb and the second is the consistent terrorism that country brings to the middle east and its hatred for the Jews and Israel. But of course you all knew this too, didn’t you?
So with the presence of the US Treasury occupying an entire floor in the Central Bank of Iraq, do you think they are serious in ending this corruption with the US dollar?
but if you eliminate the US dollar in Iraq as much as possible then how can the parallel black market even get the dollar to illegally funnel it to Iran? Do you see now the effort since January 2023 with the implementation of the new Electronic Platform for the Currency Auctions and its reasons for being put in place. Oh…put in place by whom? Yes, it was a software system build specifically by the US Treasury and put in place by them to control the dollar. But of course you all already knew this didn’t you?
So, recently they have told us this electronic platform is going away at the end of 2024. They did not say the currency auctions are stopping.
This corruption and money laundering is now all ending and has to end or we will not see any reinstatement. The instrument to do this is the Electronic Banking practices. I will not go into all the advantages of this effort and what it brings to the table for Iraq today. We already ready read many articles on it and so we all should be aware that it is the means to the end of stopping this corruption with Iran and this parallel market (black market US dollars). This I have been told many times by my CBI contact. Having the US Treasury inside of Iraq now helping with all these banking reforms is a VERY good thing not a negative issue. It is absolutely going to push the RV process for us.
If you just look at the major headlines in the news from Iraq, you can clearly see this “Electronic Payment” process is the most important banking reform they must now institute to some extent. We just don’t when enough is enough. I did not say this is the most important, but it is now at the forefront of the effort. With the news today how can you possibly think otherwise. We might even say it is the LAST piece to put in place in the RV puzzle to clearly see the end to this RV saga. This is why I was so excited in my last Newsletter of 9/5 and so I am even more excited today.
“IRAQ TO FULLY ADOPT ELECTRONIC PAYMENTS TO CURB CORRUPTION”
“PARLIAMENT ASKS FINANCE AND CENTRAL BANK TO SET TIMETABLE FOR TRANSITION TO ELECTRONIC PAYMENT BY END OF 2024”
“AL-SUDANI, THE PRIME MINISTER OF IRAQ, ISSUES A NUMBER OF DIRECTIVES WITHIN THE FRAMEWORK OF DEVELOPING ELECTRONIC PAYMENT SYSTEMS”
“INCLUDING THE GROWTH OF BANKING LIQUIDITY.. A GOVERNMENT ADVISOR REVEALS 3 GOALS FOR ELECTRONIC PAYMENT”
“BARZANI TO AL-ALAQ: THE NUMBER OF REGISTERED INDIVIDUALS IN THE “MY ACCOUNT” BANKING PROJECT HAS EXCEEDED HALF A MILLION”
- Do you think the implementation of the Electronic Signature and Electronic Transactions Law No. 78 of 2012 is important to fully implement prior to getting the RV and reinstatement? Just asking…. This is literally almost all they are talking about these days. YES, it’s important!!!!! of course it is. This was a rhetorical question. Read my lips…. “It’s important!” Let’s follow its implementation then and see where it gets us. Can they complete it by early 2025? There must be some plan to accelerate the process. Don’t you think?
- Do they need the Project to Delete the Zeros as their incentive to bring in the cash hoards/stashes into the banks? Can they do it without any incentive?
- What is the level of liquidity that they are looking for in the Iraqi banks to say this is finally successful? In other words how many millions of bank accounts do they need? All we can do is wait and see if they tell us.
I am going to give you a summary again of the other issues that are also on the table. They are on the near horizon and my CBI contact has also told me these are issues that also must be resolved. I hate to give these lists because it is what we don’t know that always come up later to haunt us. But anyhow here is the list as we know it today:
- Passing the Oil and Gas Law referendum, as required by their new 2005 Constitution.
- Needed changes to The Investment Law No (13) of 2006 to meet the WTO requirements prior to full accession. We were told these change were already reviewed in parliament and then sent back to the cabinet for revisions. We wait.
- Institute the Pillars of Financial Reform in the Banking, Insurance and the Iraqi Stock Market. This goes hand in hand with the electronic banking effort.
To me it means that Iraq is going forward with the Project to Delete the Zeros and actually in the process of doing it not just talking about it again. Do they really even have a clue what is going on in Iraq.
