We all should be VERY HAPPY to hear this news today. I want to come to you today to present yet much more evidence of the progress of the currency reform effort in Iraq. This effort is leading the Central Bank of Iraq (CBI) to its destination on our RV train ride to the final stop of the reinstatement. Over these last couple years, we have witnessed a plan by the CBI. Many of the politicians in Iraq don’t understand the plan or want to accept the inevitable because it spoils their corruption schemes to steal dollars out of the CBI reserves. But times are changing and changing fast.
I have to say that once in a great while the Central Bank actually makes good on its promises to do something on time. We find in the recent Iraqi news that the matter has been settled.. Iraq will no longer offer its precious dollars in the controversial dollar auction, or what was called the foreign currency sales window and the electronic platform. Please read the article titled “GOODBYE DOLLAR AUCTION.. CENTRAL BANK ANNOUNCES THE END OF 20 YEARS OF BILLIONS AND SUSPICIONS”.
I want everyone to realize that there is not going to be an instantaneous reaction to this recent move by the CBI meaning conducting the Project to Delete the Zeros or going to FOREX. Instead, there is going to be a window of time to monitor the economy for reactions to this new way of doing business which is actually just going back to the old way, when you think about it. So, Iraq is moving in the right direction and we as investors have been waiting for this move for so long. Well… its done, its here! Now what?
From the mouth of Frederick R. Barnard in 1921 still holds true today – “One look is worth a thousand words! “ So, let’s look carefully at this picture.
First, I want to say that this picture above is NOT a recent picture from the recent fourth annual international scientific conference. What you might say! Instead, this picture is years old. It was a picture taken in a past international scientific conference years ago and show to us in articles. But why dwell on this picture? Why are they showing this picture again in today’s article? Do you think that maybe the theme of the thinking of Ali Al-Alaq could be the same as years ago. In other words currency reform bringing Iraq back to the “glory days”.
Secondly, I want to point out this is a one Iraqi Dinar note shown from the past not a newer lower denomination bill. If you look carefully in the upper section of the photo you can also see many other older Iraqi Dinar notes on display too.
Third, I want to say that my CBI contact attended this year’s fourth conference and gave me the following explanation about this photo and why they would show it, and show it now. So now I need to point out the good news about this picture.
She told me sometimes it’s not that important in the content, but we ask the questions as to why they are doing something now that is more important to watch. So, one of the topics in the conference this year, besides celebrating the recent move to finally close down the currency auctions, was again to put emphasis on the Project to Delete the Zeros and to get the newer lower denominations in circulation.
She also then told me that the next in-country rate change of the Iraqi Dinar is coming and sooner than we might think. This photo was the point of showing all these older notes way back them when Alaq said he supported bringing the Iraqi Dinar back the “glory days” of the Iraqi Dinar. But again, why all this fancy fair and celebration now, reshowing this picture of the older lower denomination notes. I think we will see why soon….. hint….hint…
In another article titled “WHAT ARE IRAQIS WAITING FOR AFTER THE NEWS OF THE “SUDDEN SUSPENSION” OF THE DOLLAR SELLING PLATFORM BY THE CENTRAL BANK?” I quote from the article “ He explained that “this is a natural matter, as all central banks in the world are tasked with maintaining monetary policy, not selling currency. There is no central bank in the world that sells currency and mediates in buying and selling currency. This work is the responsibility and responsibility of banks and exchange companies.” So this is not my opinion but FACT. Iraq is simply going back to normal international standards of mediating buying and selling of currency prior to the 1991 and 2003 gulf wars with Iraq. However, one huge difference between the old banking and the new banking practices is that now Iraq is digitized and has entered the modern banking world of electronic payments. This too is making a huge difference in how smooth this new currency sales window transition is working out.
The Central Bank of Iraq (CBI) has told the citizens years ago it needs to “stabilize” the currency of the Iraqi Dinar and the dollar within Iraq. They tried many different approaches, if you recall. None could break the black market or parallel market selling dollars. We read these articles over the past couple years. When they told us this they made reference to the Project to Delete the Zeros and placed this “stability” condition upon it. Then in other articles since we can clearly see that “stability” of the Iraqi Dinar means selling the dollar at the “official” CBI rate in all aspects in Iraq. Yes, the CBI flat out told us that they need to break the parallel market and as far as they are concerned want it to no longer exist. Remember that one article. Then they are hoping that this recent move to the correspondent banks will dry up the dollars in Iraq altogether. But we will probably read articles bashing the CBI with negativity about this recent move and how devastating it will be for the Iraqi economy. Don’t believe them!
But we must remember that there are elements within Iraq that don’t want this recent move by the CBI and would rather stay on the currency auctions or electronic platform forever. Why? These platforms were the goose that laid the golden eggs for them. Without these platforms how can they steal the dollars out of the CBI?
But this effort by the CBI to control the dollars is to our advantage and will lead to the second “in-country” rate change they told us years ago was going to happen and under what conditions it would happen. These conditions are now met but first my contact in the CBI told me they need to take some time to watch if any sleazy ways to steal the dollars are found. If all goes well, she told me one day they will just pop-out the new in-country rate as the new “official” rate and it will be at a dollar or just over it. This will then kick off a series of other events and allow the CBI to finally conduct the Project to Delete the Zeros. Are you following me on this one?
“Oh… But Mnt Goat they are still telling us the imports amount to 250+ million a day in recent stats. I thought the currency auctions were over.”
Comment like this one above shows me many still don’t understand what is going on. This recent CBI move with the news currency sales window is not stopping imports and it can still track the amount of money spent on imports. These reports will continue and are taken from stats collected from the banks, just as before. However now they are calling it the “currency sales” window.
In this first article it also talks about how the new “Currency Sales” window will work and I quote from the article:
“According to the new system after the window closes, traders will have to deposit their money in Iraqi Dinars in Iraqi banks that have entered into partnerships with foreign banks (called correspondent banks).”
“These correspondent banks with American banks will undertake all verification and compliance procedures, while the Central Bank will only be tasked with strengthening the dollar balances in the accounts of banks that are able to pass all these procedures.”
“Many experts believe that this step has relieved the Central Bank of responsibility for any potential manipulation of invoices or attempts to smuggle currency, and the Central Bank has thus protected itself from any potential American sanctions with their dangerous implications for the country’s economy.”
I recommend everyone also to read the article titled “STOPPING THE ELECTRONIC PLATFORM.. WILL IT SAVE THE DOLLAR OR IGNITE THE PARALLEL MARKET?” I quote from the article above – “the decision does not mean stopping transfers, but rather regulating them, with the possibility of using alternative currencies such as the Turkish lira, the euro, the Chinese yuan, and the Emirati dirham.”
Al-Mashhadani concluded his speech by pointing out that “the negative impact of the decision on the exchange rate in the parallel market may be temporary, and the picture is expected to become clearer in the coming days.”
Yes, we just have to sit tight and see what happens as a result of this move by the CBI. I am being told it will all work out this will help facilitate the next stage of the currency reform, the one we are waiting for.
In the article titled “GOVERNMENT ADVISOR: IRAQ SEEKS TO ESTABLISH SOVEREIGN WEALTH FUND”, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed that Iraq is seeking to establish a sovereign wealth fund.
So, what is a Sovereign Wealth Fund (SWF). We have read so much about Iraq establishing this fund but do we as investors know what it is and maybe how we too can also eventually invest in it and make some money.
A sovereign wealth fund is a state-owned investment fund comprised of money generated by the government, often derived from a country’s surplus reserves. SWFs provide a benefit for a country’s economy and its citizens. We were told many years ago that the Finance Committee wanted to take the DFI fund of liquid cash (CBI bank reserves) being held in U.S. banks and invest it in SWFs. This is now a huge amount of money at about 115 billion US dollars. Compared to other country’s sovereign wealth funds this is relatively a small amount to start but we know that some of these funds are huge. Here are just a few of them:
The top five largest SWFs by assets as of June 2024 included:
- Norway Government Pension Fund Global: $1.6 trillion
- China Investment Corporation: $1.35 trillion
- SAFE Investment Company: $1.09 trillion
- Abu Dhabi Investment Authority: $993 billion
- Public Investment Fund of Saudi Arabia: $925 billion
- Kuwait Investment Authority: 923 billion
The funding for a sovereign wealth fund can come from a variety of sources. Popular sources are surplus reserves from state-owned natural resource revenues, trade surpluses, bank reserves that may accumulate from budgeting excesses, foreign currency operations, money from privatizations, and governmental transfer payments.
In general, sovereign wealth funds usually have a targeted purpose. Some countries have sovereign wealth funds that can be similar to venture capital for the private sector.
Similar to any type of investment fund, SWFs have their own objectives, terms, risk tolerances, liability matches, and liquidity concerns. Some funds may prefer returns over liquidity and vice versa. Depending on the assets and objectives, sovereign wealth funds’ risk management can range from very conservative to a high tolerance for risk.
So, now when you read articles about Iraq and its proposals to start this SWF you have a much better idea what the hell they are talking about. It is nice to be educated, isn’t it? Incidentally Iraq will get this fund set up and it will eventually be huge and may even outpace the others I listed. I am sure we will be reading many more articles on this subject matter. Did you read the one in today’s Article Section yet? You should and it will help even more to understand what Iraq has been going through since they were in Chapter VII sanctions. But now things have changed and so will Iraq and how it manages it wealth.
Q & A
Question from Suki:
I have two questions:
- At the exchange appointments, is the deal with the China oil credit still available? ( I’m not sure if I worded that correctly).
- What professionals should we take with us to the exchange appointment. Should we have a tax person with us or a CPA. I want to make sure I stay completely legal and I would like somebody on my side when it comes to dealing with the professional bankers ( someone who speaks their language).
Thank you,
Suki
Answer from Mnt Goat: Guten Tag Suki To answer the first question I have said before not to mention anything about a Chinese contract. Instead just ask for the BEST RATE possible on the Iraqi Dinar. See if they come back with the $28.50. If not ask for it. Just say that you heard there was a $28.50 rate and you would like it, if they don’t offer it.
To answer the second question: Do not take anyone to the bank with you. I recommend you do all your business between you and the bank. All you are going to do is exchange your currency and put it into a bank account. To stay legal make sure the rates quoted verbally are the same on the sheet you sign (which is the exchange contract). If possible bring in your laptop computer and sign into your bank account. Make sure the money is in the account. One word of caution is to ensure you are at a legitimate bank and not a scam exchange center which will steal your currency. There may be some of these people out there.
Question from Ashleypikes:
My one question to you is, can this go past the end of January from your current perspective based upon your CBI intelligence. If its not done in January no telling when it will be done if ever. Thanks again to our faithful reporter!
Answer from Mnt Goat: Ashely. Sounds like you have very little confidence and a whole lot of frustration? Believe me I too am very frustrated. I have been in this investment 18 years now. This is a speculative investment but the one thing we do know is that the IQD will move back to FOREX someday. It has been 21 years already and in post war WW2 Europe they rebuilt all of many countries within this time period and revised their currency off the Hitler Deutschemark. Again no one knows the exact date of the reinstatement and the CBI doesn’t even know. I was told by my contact that they plan for a target, move ahead with the reforms, hoping to accomplish them and proceed accordingly. So, the situation we are in now is an election year for the U.S… Trump has promised already to work with Iraq in many ways. The Biden administration had no intention of ever letting the IQD go back to FOREX, as long as they were in power, just so you know.
The Trump attitude is much different towards Iraq than his first term. With the new “currency sales” window the CBI plans to cut off the parallel market altogether if they can. This has been the main issue all along. They probably won’t but if they can at least get the rate in line with the “official” CBI rate. I am told that if they can, we are “off and running”, sort of speakingWe will see shortly. Let’s see what happens.
Now can you even imagine Iraq going yet another year without the reinstatement in light of everything they are doing with the economy, the silk road project, the port of Faw, the customs and tariffs, the tourism, etc.. Also don’t forget they are already off the dollar and so they will have to also get off the sole de facto peg of the dollar and move to a basket of currencies, as we are told by the IMF is planned soon to happen.
It’s that start of a new year. So let’s put on our BIG BOY pants and get down to the TRUTH about many of these lingering issues from these past 4 years of the Biden administration. Yes, we need to take some time to sort it all our. I believe that when we do, most will be shocked at the TRUTH and wonder why this was done to our great country. Now look at the mandates of the people to president-elect Trump. Can you think of one thing that he has said that is going to hurt you as a consumer or worker? Can you think of one foreign policy that he proposes that will hurt the U.S. ? I can’t and so why do the democrats fight him so much? Why are they after him so much to prevent these changes?
I can tell you why and these are the only reasons. Any sane person would be able to see as it is glaring us all in the face:
1.A globalist takeover of our sovereign nation;
2.A Marxist Communists ideology being pushed upon us;
3.Sinister tactics such as narratives and crises the perpetrate their forced ideology.
4.The use of the FAKE news media as their propaganda machine to convince you the sky is red when you look up and see its actually blue.
It is for the reasons that I bring you the article. You need to learn the TRUTH then you can decide what to do next. But first we must educate ourselves on these critical issues. Do these issues impact the RV we have been waiting for? Come ‘on folks, if you can’t see it yet I can’t help you anymore. It is all blaring you right in the face.
