Iraq just keeps moving along. In the recent past my CBI contact told me they intended to launch a new third strategy for reforming and developing the banking sector for the years 2024-2026. At that time, it was also told to me that this would be kicked off by the Project to Delete the Zeros in mid-June and so we still wait. Meanwhile in other conversations since we were told why the Project to Delete the Zeros is stalled. I will not get into details of these reasons again today as I feel we must just buckle down and wait for this Biden administration to end, at least the part that is controlling the US Treasury and pretending to work with Iraq.
Again, I have to ask as to why the reinstatement has not already occurred, if no other rate on FOREX than to reflect the assets of the oil rentier economy already established and ongoing as we know it prior to 1990. Prior to 1990, the rate of the dinar was hovering around $3.22. So why are they still artificially suppressing the rate now? Now, it’s 1/6 of a penny? The war has been over for 21 years, all of Chapter VII sanctions are lifted a year and a half ago, Iraq is producing 1/3 more oil than in 1990, their monetary reserves are the highest in history, up to 150 tons of GOLD and many more other marketable assets are now in motion. Oh…did I mention the de-dollarization and all the banking and anti-corruption measures already put in place. I believe it is this “all or nothing” attitude that is holding back Iraq as it needs its currency back online now. This is especially true for attracting foreign investors.
So today let’s just sit and realize reality. Joen Biden may not even be alive as far as we know. He has not been seen in public for close to a week now, which is very unusual for any president, even FDR during WW2. He or someone is pretending to be Joe, is using social media to communicate with the citizens. No this is not some backwards third world country, this is actually happening in the U.S.A. right now!
What is the latest news?
In the recent news there is always one or two articles that stand out that we need to address and talk about. The most important today is titled –“ AL-NUSAIRI: IMPLEMENTING BANKING REFORM STRATEGIES IS THE MAIN PILLAR FOR REFORMING THE NATIONAL ECONOMY”. If you can please take some time and go read the article in the Articles Section of today’s Newsletter and then come back and read my discussion on it below.
The news from Iraq this period tells us the advisor to the Iraqi Private Banks Association, Samir Al-Nusairi, confirmed on Monday, just yesterday, “that the banking reform and development strategy is the main pillar for reforming the comprehensive national economy.”
But we all already knew this, didn’t we? Iraq has been telling us this for years now and emphasizing it over again and over again and so again in today’s news. Their third strategy of banking reforms is based on the old strategy but just more of it as this new strategy. So why not explore it and get more details on it that we might be able to track some progress and understand more clearly what Iraq is doing.
THE NEW 3RD STRATEGY OF BANKING REFORM AND DEVELOPMENT:
Al-Nusairi said in a special interview with “Al-Eqtisad News” that “the strategy of banking reform and development is the basic pillar for comprehensive and radical reform of the national economy in line with what is stated in Article Twelve, Paragraph (7) of the government program”, which clearly and accurately stated that and I quote – “banking reform, with what it provides of a real and effective basis for the advancement of the Iraqi economy and the activation of investment through the restructuring and mechanization of government banks, reviewing their work, and stimulating and enabling private banks to be able to support investment and development in a real way.” Sounds like they have a solid plan to me. But why can’t they to get out of this stalemate and implement it fully? Is it the US that is holding them back?
I quote again – “Al-Nusairi touched on the “importance of the banking sector, as it occupies a vital position within the financial structure of the economy in mobilizing savings and financing development through its ability to flow money between the categories of the national economy, which is the basic step for economic reform.”
He pointed out “the measures currently taken by the Central Bank with the support of the government to launch its new third strategy for reforming and developing the banking sector for the years 2024-2026 according to seven main objectives, 24 sub-objectives and 75 initiatives to implement the objectives focusing on:
- achieving monetary and financial stability,
- strengthening the banking sector,
- enhancing digital transformation,
- activating electronic payment,
- enhancing financial inclusion,
- maintaining a sound financial system,
- developing the organizational structure and human resources,
- strengthening the internal and external relations of the Central Bank,
- the banking sector’s compliance with international standards.”
Al-Nusairi pointed out that “a national strategy for bank lending in Iraq for the years 2024-2029 was launched,
So have we now heard about these objectives before. Are these anything new to us? Of course, not but they must go deeper and this is what they are actually telling us now. Take for instance the digital transformation. What are the actual goals? I believe they need 100% of electronic payrolls for government employees and retirees. This way in order to get paid you will need a bank account, to which still many are reluctant to trust the banks. This will also make it cumbersome to stash and hoard money outside the banking system, as you will have to withdrawal it and it will be tracked.
Then, they need a certain % of the other population to have bank accounts and the use of debit cards. They need the ATMs installed and online, bla, bla, bla. You get the point. There is much more specific criteria only they are not telling us about it yet. Yes, we all know that Iraq has done some major work in all of these areas. But are they where they need to get according to the Barrack Obama 2012-2013 new criteria?
My question is this – Why are they mandating the strict adherence to this criteria? How many articles have we read already when the CBI says let us manage our own economy as we know what we are doing? The tell us the US is only hindering their progress not helping it. This has been their words not mine. My opinion does not matter much unless I can back it up with FACTS and I am trying to do so today.
So, obviously there is no RV yet and not back screen trading or other such nonsense, as many of these idiot intel gurus want you to believe. Again why would any investor pay up to $6 for a dinar when they can easily buy it from the Central Bank of Iraq for just 1/6 of a penny. Folks these lies just don’t make any sense. Think, think, think and use the brain God gave you.
Next, I wanted to cover some thoughts and questions on the minds of my readers. I like to publicly publish my answers on the blog since many more people can benefit from it too. I realize not everyone has been in this investment for as long as I have or many others. We have some newbies in our midst and with that comes newbie concerns.
Q & A
Question from acetone: it is not my intention to annoy or alienate , however, your assertion that there will be no change in value in country but iqd note holders out of country will essentially be immune from the delete the zeros project as they will enjoy the face value of their notes applied against the respective forex rate. This is highly problematic for the following reasons: ( bla bla bla,)…. in short, purportedly massive amounts of IQD are being retained by Iraqis and held outside the banking system as such. what would motivate said Iraqi note holders residing in Iraq to turn in their 3 zero notes for the new redenominated notes?……
Answer from Mnt Goat: Guten tag acetone. To answer your question, I need to refer you to my blog section on how the Project to Delete the Zeros will work. Please click on the link.
All the information you are seeking is there. Please spend some time and go read it. That is the purpose of my blog, to tell the TRUTH. Sorry I cannot personally hold hands and babysit thousands of people especially newbies to this investment. If you have a question already not addressed in my information presented, I will be most happy to address it. But thanks anyhow for the good questions, it shows you are concerned and can think for yourself. Good job! Remember there is a bit of common sense too we must apply here. I have been in the study of this for two decades and in close contact with the CBI since 2011.
Question from acetone: Historical Precedents: Historically, redenomination’s typically affect all holders of the currency equally, regardless of their location.
Mnt Goat Answer: For the larger 3 zero notes inside Iraq the citizens will be given a time period to swap them out. There will be ONLY one IQD rate, get it? The first rate is a redenomination rate inside Iraq and it will be a change to the official CBI rate, get it. Any banks outside Iraq will have to follow the same rate. This is why they placed a bookmark or linked rate on FOREX bak to the CBI official rate. Get it. It is already in place.
Inside Iraq this official rate will be greater than the dollar. This is why they are so concerned about the parallel rate vs the CBI official rate. They need to have the official rate over a dollar, not under. This is to suck in all these 3 zero notes. People will need an incentive. Get it? If the IQD is greater than the dollar why would the citizens not swap them out? If they don’t and hold on to them then that is what happens, when it happens. No one has a crystal ball and no one can force them to do anything. But the CBI told us there will be a deadline and inside Iraq for the general population these 3 notes will expire (not null and void, just expired), so there will be a deadline to turn them in. Remember at this point the IQD is NOT yet on FOREX. I have been saying this all along. This is a two-stage process. Did you listen to me? Go read my blog. Here is the link for the process again.
. Question from acetone: Arbitrage Opportunity: If foreign holders could exchange their dinars at face value against the forex exchange rate while domestic holders faced a redenomination (e.g., 1,000 old IQD to 1 new IQD), it would create a lucrative arbitrage opportunity. Individuals and entities would try to move their dinars out of Iraq to benefit from the higher exchange rates available abroad, leading to a significant outflow of currency.
Mnt Goat Answer: NO, you are wrong, wrong and wrong! Why would they move them out of Iraq? At this point the dinar would not yet be on FOREX. The only banks that would take these three zero notes would be the banks inside Iraq. American banks, if they take them, would give the same official CBI rate at the time too. They would use the linked rate on the FOREX Benchmark back to the official CBI rate, which would be the Iraqi swap out rate inside Iraq, yes the same. So, I am missing your point here and you are not making any sense. Please go read the process of the Project to Delete the Zeros on my blog. All the information is there.
Question from acetone: Currency Hoarding: Iraqis with large holdings of 3-zero notes would be incentivized to keep them rather than exchange them domestically during the redenomination process and instead find ways to move the currency outside of the country.
Mnt Goat Answer: Again, go read my answer to b. Go ahead and move it outside the country. What good would it do them? They are still going to get the same rate as inside Iraq. There will NEVER be two rates. You have been listening to all these other stupid intel gurus out there. They are mixing your head up. Please go read the process of the Project to Delete the Zeros on my blog. All the information is there.
Question from acetone: Illicit Currency Movement: There would likely be attempts to smuggle these 3-zero notes out of the country to take advantage of the alleged higher exchange rate for foreign holders.
Mnt Goat Answer: Again go read my answer to b. Go ahead and move it outside the country, if you even can. What good would it do them? At this point in time there is no other rate than the official CBI rate, which is the swap out rate. Please go read the process of the Project to Delete the Zeros on my blog. All the information is there. If they waited for FOREX rate then go read answer to e. and f. below.
Question from acetone: Black Market Development: This situation could lead to the development of a black market for pre-redenomination notes, both within Iraq and in neighboring countries.
Mnt Goat Answer: YES, this could happen and probably will to some extent. But I don’t think much and here is why – Go read my answer for f. below.
Question from acetone: Economic Disruption: The refusal to turn in 3-zero notes could disrupt the redenomination process and complicate economic stabilization efforts.
Mnt Goat Answer: First I need say why in hell do you think this process is taking them so long to do? Why does the CBI keep saying the conditions must be just right to do it? Get it? You are answering your own questions with your questions. YES, this could happen and probably will. Some citizens will still hoard their notes and refuse to turn them in. But this will bite the in the ass later. Here is why. They will figure out the next step and wait for the FOREX rate. Once the swap out is done and expires, the CBI official rate will be the FOREX rate.
PAY ATTENTION à Oh… but here’s the catch 22. They can’t take them to Iraqi banks because they will no longer take them after the deadline to turn them in. Get it? So how can they get the FOREX rate? Black market? Yes and this will happen to some if they have just a few smaller notes, but I don’t think the black market is going to pay them out millions of dollars, do you? Really? Do they even have that kind of cash laying around. Remember when we exchange ours it will be just digits only on a screen. Get it?
So, then what will they do in side Iraq if they refused to turn them in by the deadline? They will try to smuggle them out of Iraq and if caught they will be confiscated and so good bye currency. This is illegal money laundering. Get it? This will be told to the citizens. You can’t predict what all the people would do all the time. There will be exceptions. Again, what is your point? Are you just negative or what? Is your glass half full or half empty?
Question from acetone: Enforcement Challenges: Iraqi authorities would face significant challenges in preventing the outflow of old currency and enforcing the domestic exchange of notes.
Mnt Goat Answer: yes, this could happen and probably will. No one said this sway out is going to be completely easy or smooth. Get it? So, what’s your point. Do you think this process of the swap out is going to be so smooth or can even be so smooth? Are you just a negative person or what?
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Question from John Tanner: quite frankly, my concern is counterfeiting of the 25k and 50k notes. Mnt Goat is this a potential issue? are there perfect counterfeits out of Iran/China/North Korea floating around out there?
Mnt Goat Answer: Guten tag Mr Tanner. If you are so concerned bring your dinar into a main bank branch and have them test them or authenticity now. This is why the banks exist to provide such services.
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Comment from John Tanner: bleednred1, you are correct about the short term gain. long term it destroys the dollar and america’s economic status on the world stage. Trump would not sell out this country for a short term gain. on the other hand, biden may be desperate to allow this RV/RI for a chance at re-election.
Mnt Goat Answer: Guten tag Mr Tanner. Biden is now out of the race. Harris will not last long and then what are the crooked democrats going to do. They are a mess just like the mess they created for America in their 3.5 years in control. God is serving justice and I can’t help you if you can’t see it. I refer you to Timothy Dixon’s prophecy what is going to happen and, if it is going to happen, must happen in the next 4 months at some point or not at all. I will say this- the chances of the RV happening while the democrats are in power is slim to none! I have strong knowledge from my CBI contact this is what has been holding up the RV. The US Treasury will NOT release it. Sorry!
