Its finally here, the beginning of the new year 2025 is here and we have been talking for months about what may happen during this period of time. 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. Just over these last couple years, we have witnessed an accelerated 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.
So, in just about every article now from the Financial Committee and the CBI they talk about obtaining STABILITY. Yes the needed stability seems to be accomplished, according to what they tell us. They told us so many times already they needed SECURITY and STABILITY to begin the Project to Delete the Zeros. Well…. now they have it and so will they begin the project now?
My CBI contact has told me on my call to Iraq yesterday 01/01 that the CBI is planning to conduct the project very soon. I asked her to define “soon”. I was told VERY soon and that was all of a timeframe she would give me. Of course, I laughed at her answer but she was serious in her answer. In these relationships and friendships, you don’t want to push the issue too much and so I just have to back down and see now what happens. I trust this person and know her personally from my time spent in Iraq as a soldier. She is only passing on what she knows from her committee on this subject matter. Folks, we just have to sit and be patient.
There are two interesting articles everyone needs to read today concerning this recent move by the CBI on foreign transfers for imported good payments. The articles are titled “WITH THE BEGINNING OF THE NEW YEAR, THE US DOLLAR ENTERS A NEW PHASE IN IRAQ” and “CENTRAL BANK ANNOUNCES MAJOR ACHIEVEMENT IN FOREIGN TRANSFERS”. Both of these articles tell us the entire story of just what happened. One is very long but very interesting. Of course, these articles are trying to be objective in outlining the Pros and Cons of this recent CBI move. I do not agree with many of the Cons as there is an auditing process in place and the transfers are in dinars and converted to dollars or other currencies in the foreign country correspondent bank. So there is very little wiggle room for corruption or stealing of dollars anymore. This is going to lead to the downfall of the parallel market. How long will it take to kill the parallel market? Stay tuned as I am positive, we will be reading many articles about this in the near future.
Also, the CBI told us it is no longer in the business of selling dollars, which they tell us they never should have been doing that all along, but dire past circumstances forced them into the sales. The CBI is the keeper of the countries reserves and so why have they been selling the reserves? This has now stopped which will also mean more reserves over time and so we can see the Sovereign Funds concept becoming more and more of a reality for Iraq. See my previous Post for more information on the establishment of these Sovereign Funds for Iraq. Remember the reserves are the surplus oil revenues now mostly in the DFI funds parked in the U.S. banks. Will they obtain these funds and manage them outside of the control of the US Treasury?
By the way there is yet another new article talking about the establishment of these funds for Iraq it is titled “SUDANESE ADVISOR REVEALS GOVERNMENT’S PHILOSOPHY FOR FUTURE OF NATIONAL ECONOMY”.
However there is one article in the news this period that really intrigued me and gets my goat. It is titled “STARTING TO IMPLEMENT ASYCUDA GLOBAL SYSTEM FOR AUTOMATING CUSTOMS OPERATIONS”. Really? The Prime Minister’s Media Office announced on Tuesday the start of using modern automation systems to facilitate the entry of goods into border crossings and monitor them centrally, and the agreement to implement the global ASYCUDA system to automate customs operations. Okay so are they telling us this is already implemented and now underway or to expect it in the very near future, thus the purpose of the article?
Oh… but let me add that I have talked about this customs system before many years ago, remember? What did I say then? I told you that I learned that this new technology has a link into the foreign currency markets and must go to FOREX to obtain the most current rates of the currencies in order to conduct the proper fees and convert the fees appropriately in the needed currency value amounts. In other words, it will need the IQD on FOREX to properly conduct the customs collection service through ASYCUDA.
In today’s news from this article, it is telling us that and I quote “the meeting witnessed the announcement of the completion of the necessary infrastructure to link all border ports with the latest technologies, and the start of the use of modern automation systems to facilitate the entry of goods into border ports and monitor them centrally. It was also agreed to implement the global ASYCUDA system for automating customs operations, enhanced with electronic payment services starting from January 1, 2025.”
So they are telling us they have not yet previously started the system. But in the past they told us they did? Why haven’t they then? But how could they without the IQD on FOREX. But in this article they are telling us the system will start on Jan 1st 2025. How could this be without the IQD on FOREX for a reference rate? Get it? Do you know what I think is happening? Yes, do you really want to know my take on this? Ok, so its my opinion but an educated opinion.
I believe that this ASYCUDA system will NOT yet be online since the IQD is not yet on FOREX. It was postponed for years just as many other projects are not on time in Iraq. Yes, no SPEEDY GONZALES for Iraq. This will be of course not good and cost Iraq major revenue streams. So, this to me is yet more evidence and pressure that they fully intended to go ahead with the ASYCUDA system way before now, and now wanted to go in Jan 2025 too along with the reinstatement. But we all know this too will be postponed again since the IQD is not yet on FOREX. Get it? So again I keep asking what element is in the way and not allowing them to go forward to the end?
This article also suggests to us that probably in December, in fact they did intend to conduct the Project to Delete the Zeros, as my CBI contact told us was planned, but it didn’t happen. Why didn’t it happen?
I do not have all the answers and
I can not again tell you. I do not want to speculate. But my analytical thinking mind tells me something was held up again. It sounds too fishy to have multiple events being targeted around the same period (beginning of Jan 2025), and all of them relying on the IQD getting to FOREX. Do you see it too?
Come ‘on folks this is exciting not a disappointment! Right now I have more questions than answers. However, you know me and I will dig for answers and to get to the bottom of the TRUTH as to what is actually going on in Iraq and what is holding up the Project to Delete the Zeros now.
Q & A
Question from Richard Burton:
Happy New Year Mtn Goat,
I am confused. In today’s newsletter you answered Suki’s question and said you had said not to mention anything about a Chinese contract.
I have followed you for a long time. At one point you posted how to exchange your Dinar for Dollars and in it you said to mention the Chinese contract rate. Here is a copy and paste of that section: Bank:
The IQD market rate today is $3.86 (for example only)
You: Oh.. I heard there is a special project between the US Treasury and China (Vietnam) to broker Iraqi oil. Can I partake in this program?
Bank: Yes,
You: What is the rate? Do you offer any perks?
Bank: Let me look it up…..its $28.50 (IQD) up to 20 million dinar only. Would you like to take advantage of it?
You: Yes,
Please clarify for me do I modify your earlier post and not mention the China contract?? If so I am just curious as to why the change.
Thank you for your time.
Richard
Answer Mnt Goat:
Guten Tag Richard. At times we just have to settle down and use some common sense. Please refer to this Link for exchange information.
