We all wondered what the CBI was doing in cutting the value of the Iraq dinar. So here now they are telling us.
I quote from the article below – “the parliamentary finance committee member Majda al-Tamimi said in a statement that «the devaluation of the dinar against the dollar and other foreign currencies, is considered one of the alternatives for external borrowing, and allows the state to secure the employees' salaries and control over spending, and thus reduce the fiscal deficit”.
All I have to say about this article is this is pure nonsense and the CBI is simply pulling rabbits out of a hat to try to give the citizens the allusion of some satisfactory explanation. Do you want the truth of what really happened? I will tell you.
Just for your information there are many rates in dealing with the IQD. There is the auction rate (needed to purchase US dollars), the market rate (the rate the street dealers will give) and the IMF backed rate (official exchange rate). The IQD IMF rate has been around 2100 – 2200 for quite some time. The CBI site publishes bogus rates since the rate changes so often they can not keep up with posting the changes.
Why the rate is fluctuating so much?
The rate is fluctuating because plain and simply put the CBI (under its current leadership) has no real control over keeping the rate stable. When Dr Shabibi left the CBI he was the only one who could control and stabilize the rate. He did stabilize it for over a year and he build up an enormous amount of reserves in the process. We are also witnessing the constant drawdown of the reserves under this new proxy governor. Remember Dr. Shabibi is the only governor of the CBI recognized by the IMF.
When the new prime minister Abadi took office he asked Dr Shabibi to come back to the CBI. Dr Shabib, having just experienced near execution in false allegations for corruption, replied to Abadi and said he would come back but only conditionally. The conditions I have stated in my previous news letters and will not re-list them today. But the main point is that these condition have not been met and so the corrupt (Maliki appointed) CBI governor continues to reside in this position in a proxy situation. This governor does not have the skill set needed to manage the currency and the monetary policy in Iraq and we are seeing the results.
As a result the IMF will not allow the revaluation of the IQD if the CBI remains in the hands of someone who can not manage it. This is why many (including myself) have repeatedly said the CBI will be turned back over to Dr Shabibi just before or just after any significant increase in the value of the Iraq currency. You take that to the bank!
So why would anyone expect to see the dinar to significantly increase and have an RV prior to Xmas under these circumstances? I did research this for you. This is what I found.
In about mid November the CBI began collecting what stockpiles of 3 zero notes were stored at the banks. This action was very significant and could only mean two things: 1) they were going to discontinue the money auctions soon since the capital to buy US dollars just dried up (remember the banks must purchase US dollars using the 3 zero notes), in fact they told us the auctions would end Jan 1st, 2) the CBI was preparing for a significant increase the value of the dinar and did not want to chance these older 3 zero notes being put back into circulation prior to the event. Yes – they were about to launch the new lower denominations and go 1:1 with the US dollar. Yes – the final stages of the process was about to begin.
But here we sit with still no action. But remember it is only Jan 4th and still just only weeks from these events. So do not get discouraged. Remember too Iraq hardly ever does anything on time and is always weeks or even months late.
Is Mnt Goat calling the RV?
Absolutely not. I am only giving you the series of events that recently happened behind our backs and was not broadcasted in any news articles. I am also getting other conflicting information that they firmly intend to wait until late Jan to early Feb to continue the process to delete the zeros. So which is it? Maybe all these events in Nov and Dec were just preparing for a later event or maybe they did in fact intend to RV in mid Dec but as they told us they decided to “postpone” it until later in Jan / early Feb.
But we do also know this. The IMF is refusing to fulfill the 1.2 billions left of dispersement on a loan they approved for Iraq in October 2015 until they fulfill their part of the agreement to complete the currency reform. I think the CBI (through their ignorance) are playing cat and mouse games with the IMF. What do I mean by this?
What I mean is they give a little and hope the CBI will release the funds in anticipation of the full loan being processed. But the IMF is wise to Iraq and has been burned before so they wait. There are also other conditions too that depend on the RV but I am not allowed to talk about them in this news letter since they are sensitive. But be assured that that Iraq is under extreme pressure to drop those lower denominations and coins in the public and being the road to the “full” blown RV that we all want.
IRAQ BEGINS IN 2016 TO CUT ITS CURRENCY AGAINST THE DOLLAR
Twilight News / fear the economic and financial circles Iraqi that leads the Iraqi Central Bank's decision to reduce the value of the dinar against the dollar as of yesterday, to the detriment of large slices of society, particularly those with limited income, in the event of rising inflation and the change of goods and prices of goods in the domestic market.
Predicted quarters exceeded the dollar exchange rate level set by the «Central» in his decision and of 1190 dinars to the dollar, as it exceeded the exchange rate is currently 1 400 dinars, which will weaken the purchasing power of citizens, as quickly prices will rise to levels that do not actually correspond to the differences in the exchange rate.
He said the Finance Committee in the House of Representatives member Ahmed Hama Rasheed The decision to reduce the value of the dinar against the dollar is not new, and was introduced two months ago, but Central has not been announced, but revealed gradually.
He added that «the parliamentary Finance Committee discussed ways to raise the value of the dollar without causing overwhelm the local market », pointing out that he called for the preparation of a comprehensive study of the file.
He explained that «the Commission prepared a study with a financial advisors about the lifting of government support for the dollar in the form of a gradual, and the coming days will witness changes in monetary policy, as there are benefits to be reaped from the government by reducing the value of the dinar.
She stressed the parliamentary finance committee member Majda al-Tamimi said in a statement that «the devaluation of the dinar against the dollar and other foreign currencies, is considered one of the alternatives for external borrowing, and allows the state to secure the employees' salaries and control over spending, and thus reduce the fiscal deficit.
Experts concerned and expressed other points of view, some of them stressed the importance of addressing the challenges facing the country now, especially since its economy depends on the proceeds of the single-supplement the annual budget.
And he saw the prime minister for economic affairs adviser appearance of Mohammed Saleh in a statement to «life» that «the decision to reduce the value of the dinar is part of the protectionist policies taken at the financial level, but must be accompanied by measures relating to the availability of a national industry activist with a rise in the pace of domestic production, as a substitute for importer and meets the need of the local market.
He added that «the country is suffering from a cash shortage and flows of liquidity, not a shortage of other resources and energies and potential, there are many areas that require huge sums of money, including military operations against terrorism that drain huge sums, along with the need to monitor allocations for the reconstruction of the liberated areas, What increases the civil costs within the wheel of the national economy. » He pointed out that «the government has taken during the last period austerity measures, including stopping projects that have not achieved an advanced completion rates, and until such time as the availability of financial liquidity», stressing the need to support the international community for Iraq to help in the reconstruction of infrastructure in the liberated areas. He pointed to the international trends to provide financial grants by the United Nations to help Iraq to cross the stage is going through.
He stressed a spokesman for the Ministry of Planning and Development Cooperation Abdul-Zahra al-Hindawi said in a statement to «life», the need to resort Iraq to external borrowing to cover the deficit and financing for development and increase economic growth, which fell from 8 to 1 percent, and reducing unemployment and poverty. She noted the draft general budget for 2016 to the parties that the government would resort to borrowing them, including «International Monetary Fund» which will lend Iraq $ 1.2 billion, and »National Bank of Qatar» that Iraq will lend 1.8 billion.
He added: «It is natural to be the lenders conditions to ensure the recovery of funds, but some occur political for those conditions in a language, but in the end we have no choice but to get the loans to ensure the continued development wheel rotation, and perhaps it is useful to internal loans point to be considered it less burdensome on the economy, although the economic impact is less than that of Foreign because it is a transfer of purchasing power from the citizen to the government.
Update: Needed Laws
So we all should be concerned and tracking three BIG, critical laws that still need to be passed and implemented. These are the Federal Court, Amnesty law and the National Guard law. So for an update, the government of Iraq has sent out a news brief and we see it in the form of an article. It is a very good article and is just what we needed to see. Sometimes I think someone in Iraq is reading my mind….lol….lol….
I am beginning to believe that my many conversations with people in the CBI, with the government officials and by my many questions in my news letters that they are using these channels to hear our plead for more information and we are being heard. Seems they then take my questions and formulate answers for us in the coming days in the form of many of these published articles. It is just too coincidental that I was talking to a contact in the GOI earlier in the week and stated that they could be a bit more timely in providing information about these three laws mentioned in the article below. Then out pops this article just days later. Weird? This has happened many times already only now I am catching on to it. Let’s see how far this goes in the future…lol…
Is this coincidental? As I have said these are their 3 hot laws right now for parliament (or once it comes back in session in 2016).
Earlier last week the GOI told us to expect the Federal Court Law and Amnesty in the early part of 2016. I was expecting them to go together, maybe even voting in the same session. Now this may not be the case with the Federal Court law since the Kurds do not like some of the provisions in the new law. But I noticed in cases like this they normally fix it quickly and move forward. So anything can still happen.
I am not worried. Amnesty however, they told us it will not go until early February and that is a bit shocking to me since I expected it much sooner. Read the article below. It is telling us directly just where each of these laws now stand (as of Dec 30), if anyone wants to know. No more guessing!
We still have no timeframe given to us for the National Guard law and we should all know by now this is going to go last anyway. It is the most controversial since there are many issues like- who is going to pay for it?, how will the provinces report back to the main government?, the timing of the consolidation or abandonment of these private militias ? Fining professional leaders?
Overall based on the news I just reported we are probably now looking at mid to late February for our next possible RV window. Sorry for the bad news.
Oh- isn’t it nice to have these articles to tell us what is going on instead of shooting our mouths off and guessing all the time on these so called intel conference calls….Vegas, Vegas, Vegas ?
Could the RV happen sooner – Yes- but I am very doubtful.
I will continue to bring you the news since miracles do happen and we have seen some of them already – Be Prayerful, Hopeful and Honest and all will eventually come to you !
PARLIAMENTARY LEGAL: AMNESTY WILL BE LAUNCHED AT THE BEGINNING OF FEBRUARY AND THE FEDERAL COURT IS DISABLED BECAUSE OF KURDS
Tomorrow Press / Baghdad: announced the Legal Committee in the House of Representatives by a sound Shawki, on Wednesday, said the general amnesty law completed all his readings and discussions and vote by the parliament at the beginning of next February, while pointed out that disabled the Federal Court Act for the Kurdistan Alliance. He said Shawki's "
Tomorrow's Press," "THE AMNESTY LAW HAS COMPLETED ALL HIS READINGS AND DEBATES AS WELL, AND WE ARE ONLY WAITING FOR THE VIEWS OF THE POLITICAL BLOCS ON THE PROVISIONS OF THE AMNESTY UNTIL THE LEGAL COMMITTEE BE ASSEMBLED AND THEN RE-DRAFTING OF THE LAW AND VOTE FOR IT," adding that "the issue of the resolution of the amnesty law would be at the beginning February next. "He continued,"
THE FEDERAL COURT ACT ALSO COMPLETED OUR READINGS OF LAW AND DEBATES AND VIEWS ON IT, AND REMAINED ONE ISSUE PENDING A COURT MEETING AND VOTE IN THE COURT, "noting that" the majority opinion says that the court meeting is two thirds and vote on decisions also the consensus of the two-thirds , but contrary to the Kurdish side view and wants the court meeting also unanimously and unanimous vote.
"He said Shawki that" blocs objected to the opinion of the Kurds and promised to disable the role of the Court, Aftrhawwa opinion, another to be the voice of the President of the Court and his deputy within two-thirds, because one of the Vice-President will be Kurdish " . He pointed out that "their opinion this also he did not find acceptable, but that it is still in dispute, but during the next legislative term will be to resolve all differences on the law," likely that "during which the vote on the laws amnesty and the Court."
He continued by legal Allhnh that "THERE ARE DISCUSSIONS ABOUT THE GUARD LAW, BUT IT'S MORE COMPLICATED, AND REQUIRE A LARGE POLITICAL CONSENSUS."
Here is the article earlier from in the week.
LEGAL REPRESENTATIVE: 3 LAWS READY TO VOTE IN THE NEW LEGISLATIVE TERM, INCLUDING THE AMNESTY LAW
Parliamentary Legal Committee announced that the new legislative term will vote on three important laws in the forefront of a project of the Federal Court Act.
A member of the Committee to Morshedi: "There is a set of laws has first and second reading and completed discussions on them between the blocs and parliamentary committees and you just need to vote in agreement with the leaders of the blocks."
"The ready-made laws of the vote is the Federal Court and the Federal Service and amnesty, as well as a draft e-Crime Bill and the Drugs and Psychotropic Substances Law."
He pointed out, "it was narrowing differences in the Federal Court Act except for paragraph 12 of the draft law concerning the quorum convene and vote on decisions of the Court."
"The general amnesty law is still under discussion for the study of the compatibility of the draft law with constitutional provisions and then introduced to a vote," noting that "the parliamentary Commission included a proposal for the inclusion of liquor within the project Drug and Psychotropic Substances Act, which is currently prepared with the Committee on Health and Environment in Parliament."
Morshedi pointed out that "the inclusion of liquor that the draft law came as psychotropic substances according to the opinion of the Committee on Health and the Environment of the proposal adopted by a number of deputies," pointing out that "the House vote to adopt that view will make the liquor is prohibited by law."
Next let us talk about the Customs and Tariffs law. According to sources in Iraq, parliamentary finance reveal activation of customs tariffs starting from Friday 01/01/2016. We wait to hear the results.
Next let us discuss two more very important laws that also must be passed or no RV. I have also told you many times about these two laws including 1) OIL AND GAS LAW (HCL) and 2) FEDERAL COUNCIL (FEDERATION COUNCIL).
So recently out pops this article that is telling us the current status of these laws. So any of these so called intel “gurus” out there trying to tell you differently you should straighten them out and do it quick. Also tell them these laws are mandated by the UN and the USA and are part of “fully” implementing their constitution, which is needed prior to any RV.
Send them my news letter from today and tell them they are wrong and you for sure these laws are NOT yet passed.
KURDISH LAWMAKER: THE NEED FOR LEGAL APPROVAL OF OIL AND GAS AND THE FEDERAL COUNCIL OF THE YEAR
Deputy for the coalition of Kurdish blocs stressed the need to pass the House of Representatives legal oil and gas and the Federal Council during the current year 2016.
Said Abdul Bari Zebari told all of Iraq news, "THE APPROVAL OF OIL AND GAS LAW IN 2016 should be among the priorities of Parliament, as it will be a modern arena during the coming days, the fact that most of the problems arising because of him."
He said Zebari to "THERE ARE OTHER LAW JUST AS IMPORTANT AS OIL AND GAS LAW, THE FORMATION OF THE FEDERAL COUNCIL, because the constitution stipulated that formed during the first parliamentary session and we are now at the third session and the project remains unclear."
He stressed that "the Federal Council is the guarantee and the bumper of any law imposes a majority in the House of Representatives and is also a guarantee of blocks, components and Afez their rights, because he can now majority to impose any law you want to do, especially with the absence of a right of opinion for the Presidency.
"He was a member of the Commission on oil and energy parliamentary Razak Mahabs, expressed in 13 of October in 2015, for the determination of the committee drafting a new project for oil and gas in the event of the government delayed sending to the House of Representatives.
The Commission on oil and energy parliamentary, said in a 30 June 2015, the oil and gas law still hang at the government.
The oil and gas law of important laws , but he had previously introduced in the previous legislative session of Parliament, did not get the agreement passed.
It is said that the Federal Council Law also still hang not be approved
Let us do a pop quiz –Can you tell me all the needed laws necessary prior to the RV? I have gone through all of them in this news letter today. So now you are all intel “gurus”…….lol….lol….
[Update: Lower Denominations]
We still await for the “official” word from the CBI to allow the distribution of the new lower denominations. We know this must first be accompanied with a significant increase in value and we are told it will be a 1:1 par value with the US dollar.
This is NOT the RV but an inflation adjustment and only an incentive to “dedollarize” the economy and reverse the trend in demand from the US dollar to the Iraqi dinar thus increase the demand for the new lower denominations. This would thus allow Iraq to withdraw or “de-dollarize” their economy as they would suck up US dollars are replace them with the lower denominations. This would happen because the citizens would migrate towards the new dinar since it would be worth more than the dollar.
Do they need a very significant increase in order to do this?
NO! All they need in-country is a value to the new dinar to be just over a dollar to create this incentive.
Is this the RV we have been waiting for?
NO! – this move to a 1:1 par with the US dollar is just an inflationary measure they will undertake. The full RV ($4.00+) we are waiting for will come later and will depend on how stable the economy is and how this whole process works out. It may take longer or it may be shorter than a couple weeks.
Again it saddens me I have to keep telling everyone this news too. But here it is again in today’s news letter. Did you all get it this time? Do I have to repeat all this again next time?
Sometimes you just have to buckle down and listen to those that know the RV process and what is holding it up. If you have been reading my news letters you are one of the informed people and do not have to resort to listening to all this BS out there about an everyday / any day / any moment RV situation. Simply put the RV is NOT going to happen until we see the needed laws and hear news of the currency reform process starting up once again. Right now we are on-hold again with the project to delete the zeros until late January / early February 2016. So relax!
Let us do a pop quiz – So what do YOU see as the next best window for the RV based on all the information I presented to you today?
Iraq News Sources-Self Education
I have talked about all of you dinarians getting control of your own news and finding sources first hand to get all the news you need to know for yourselves. How can you trust these conference calls and info they distribute the to public?
Stop listening to this nonsense from these so called intel “gurus” and their conference calls who think they know it all and yet know very little of nothing of any value that you truly need to know.
Now I am giving you the links to some common online news sources s that you too can research for yourself. Good luck and happy reading!
Here is a very good translator engine if you need one. I do not recommend the google translator.
TAKE CONTROL OF YOUR OWN NEWS ABOUT YOUR INVESTMENT!
NO Hype, NO Rumors, just the FACTS !
Update: Fighting ISIS
We await further news on progress but we know now they are moving on Mosul again and this is excellent news…..the “final” blow to ISIS in Iraq….and so we hope!
My personal feeling is that the security situation in Iraq may now be a the point of acceptable levels to execute the currency reform. This however is just my opinion and I do not make the final RV decision.
One more item today:
Let’s not forget to keep praying for the success of THESE IRAQI AND COALITION SOLDIERS. I believe their success is in part some of the acceleration of the process we are now witnessing.
“Lord, protect Abadi and all who stand with him in righteousness, the Iraq and Coalition Soldiers who are fighting the good fight against terrorism, that they would be shielded from the enemy and would be Victorious against them! We ask that the Victory comes swiftly and healing of the Iraqi peoples and all whom have been effected by these evil doers can begin! Amen!
Till next time…. Auf Wiedersehen!
Peace and Luv To Ya All,