(Thank you George for emailing this to Dinar Recaps.)
UU5518 – “ Mid-Week Update – June Already! “ by Mnt Goat
I wanted to come to you today to give you an update on the continuing saga of the Iraqi dinar revaluation process as this week progresses.
It is all very good news with no hype just the FACTS as we can see them progress through the process of the economic reforms moving forward. I am going to emphasize once again one particular article that I find is telling us so much and paints a very good picture of where we now are in this saga.
So we sit, watch and read the news. It tells us about the SECURITY issues they are still having with ISIS, the stalled legislative body of parliament (especially with the Parties law, Court Reforms and National Guard law, and why the CBI hesitated to complete the project to delete the zeros but is no longer stalled.
But there is plan for currency reform as part of the economic reforms, it may be dynamic but there is a plan and Iraq is moving forward with it. Let me explain today in this news letter as we analyze this article.
Today is Wednesday June 3rd and still no RV. Oh ….but wait we were supposed to have an RV by now! (some say). This was never supposed to reach June…..lol….(some say).
Of course I am being somewhat sarcastic because I have been saying all along we WILL REACH JUNE and probably might even go beyond. But some are more concerned about bashing then really showing facts. I thought we were concerned more about bringing FACTS and solid news to the dinar community. Are we not all in this intel gathering together? Do we not all have a sense of responsibility to our listeners?
Why did I keep saying this in my news letters?
BECAUSE THERE WAS NO SOUND EVIDENCE TO SHOW US OTHERWISE that this would not go into June or maybe even beyond besides maybe the misinformation being passed down with the misinterpreted events in Iraq (from boots-on-the-ground), mismanaged intel, and the constant banking stories and stories about these RV windows.
TIC TOC, TIC TOC maybe you better reset your CLOCK….lol…..
I come to you not because I try to be sarcastic or to bash anyone. We all have our news and tell it like we see it. The problem most times is the delivery method and the slant and hype put in it needlessly. This brings constant daily worry, anticipation and thus stress on everyone. Some intel is simply bogus and it takes an educated and responsible person to be able to sort it all out and present only the FACTS. I certainly challenge all to do this going forward. Sometimes information too is so timely it is not meant to be passed on to us, as the situation is so dynamic.
I have become aware that many have said that I think this RV saga will continue into January 2016. Really?
Did I say that? I don’t think so! However this is what I did say and I quote from my news letters directly - “In fact the most recent news is now telling us we may have to wait until early 2016 but I personally feel if they can control this terrorists threat in Iraq and push out the Iranian influence we might see the RV sooner than later (like maybe this summer)”.
So please do not put words in my mouth. I know what I said. Go back and re-read my news letters. I have consistently said we will not see any RV until this SECURITY issue is resolved. These are words repeated directly from the CBI not my conjecture, rumor or thoughts.
So these same people who spread mnt goat rumors do not like to misquote or have others copy and paste their information to other forums. However they themselves seem to be the culprits of doing just what they don’t want others to do. So how about setting the example for everyone first ?
I am trying to help everyone to wakeup to reality and get yourselves free from this RV nonsense and RV hysteria. The RV is very close at hand we all know this. Be patient it is coming soon. As I said in prior news letters, there are so many signs now that very possibly we could be in a good window of opportunity to see this RV very, very soon if all goes to plan.
But how soon is soon? It is not a matter of setting a date or time. Even the rate we thought we had nailed down but now we are seeing some changes too in this area that in fact is may come out very low as a reinstatement and then a revaluation later. We know each time we think we have a time period nailed down something changes or another condition is asked of Iraq by the USA to contend with.
So yes, I do believe there is an outside possibility that the democrats might try to use this revaluation as a political ploy in the 2016 election process and could hold it up until they are in the election voting process. This likelihood increases the closer we get to the elections. They have done this in the past and it won't be unusual if they did it again.
Note I do not have any sound evidence of this and I am telling you this is not even a rumor at this point but only my thoughts on this matter. I however strongly believe this will NOT occur only saying it is a possibility to consider if we get through the summer months and still no RV.
So now let me present to you once again a very important recent article telling us the saga of the “project to delete the zeros”. If you don’t believe me READ THE ARTICLE yourself. They are telling us outright their viewpoint and what they intend to do and it could not get any clearer.
I have included my comments in the article in all caps and in [brackets]. This article uses financial economist Majid al-Khafaji’s viewpoint as the basis for the discussion. This is not an article directly from the CBI:
Qurtas News / Baghdad
It seems that the war with al Daash threw Bdilalha on the project to delete the zeros of the Iraqi local currency and the consequent economic and political conditions to be a project depends on the stability of these situations, however, the Central Bank of the idea of deletion of zeros is considering to resort to other solutions that n help strengthen and support Dinar.
[THE PROJECT TO DELETE THE ZEROS DEPENDS ON THE ECONOMIC AND POLITICAL STABILITY CONDITIONS. ON THE ECONOMIC SIDE THE CBI IS RESORTING TO SOLUTIONS THAT CAN HELP TO STRENGHTEN THE DINAR. THIS IS THE PROJECT OF THE 50k AND 100k DISTRIBUTION]
He said the Parliamentary Finance Committee member Haitham al-Jubouri's "Qurtas News", "It was the best time that could be the project to delete the zeros of the currency is implemented in 2012 because of the unstable political and economic climate and because of the high oil prices, as well as financial abundance at the time that allowed State start deleting zeros currency, but in light of what Iraq is witnessing today of war with Daash gangs and terrorist political instability as well as lower global oil prices and the consequent economic crisis on the country's most prominent factors behind the wait is implementing a project to delete the zeros of the local currency. "
[IN 2012 THERE WAS A MISSED WINDOW OF OPPORTUNITY TO COMPLETE THE PROJECT TO DELETE THE ZEROS. THE FINANCIAL ABUNDANCE (HIGH OIL PRICES) IN THE MARKET AT THIS TIME CAUSED THE CBI TO BEGIN THE PROJECT BUT SINCE HAD TO PUT IT ON HOLD DUE TO THE POLITICAL INSTABILITY WITH DAASH AND ISIS]
Jubouri and that "the Iraqi currency today need support in order to rival the dollar At the present time are not across the deletion of zeros, but alternative ways possible that pursued by the central bank through which can support the dinar and strengthens and maintains its stability and not Ahtzazh against the dollar."
[AS AN ECONOMIST HE IS SAYING THE CBI HAS FIRST LOOKED AT OTHER MEANS (ALTERNATIVE WAYS) TO STRENGTHEN AND MAINTAIN THE STABILIYT FO THE DINAR AGAINST THE DOLLAR RATHER THAN CONTINUE WITH THE PROJECT TO DELETE THE ZEROS]
For financial expert Majid al-Khafaji, it confirms for "Qurtas News", that "the central bank would be unfortunate if they went to the deletion of zeros because of the current situation and the unstable Iraqi economy, the central calling to" increase revenue that will provide cash and foreign currency, which relieve the shoulders of the citizen. "
[NOT A GOOD TIME TO COMPLETE THE PROJECT TO DELETE THE ZEROES, INSTEAD THE CBI NEEDS TO LOOK FOR ALTERNATIVE WAYS TO INCREASE REVENUES TO HELP THE ECONOMY]
Said al-Khafaji, said the central bank can not by itself accomplish this project because it is a specialist technical matters and requires the project full support of the government and the House of Representatives, and not to put obstacles in front of the bank in order to be independent and free from any political or side effects possible that harm the interests of the country. "
[THE CBI, WITHOUT DR SHABIBI, WILL NEED TECHINCAL ASSISTANCE TO ACCOMPLISH THE PROJECT TO DELETE THE ZEROS SINCE THE PROXY GOVERNOR CAN NOT DOES NOT KNOW HOW TO DO IT. ALSO THE CBI MUST BE CLEAR OF POLITICAL OBSTACLES OR REPROCUSSIONS FROM THE GOVERNMENT IN ORDER TO COMPLETE THE PROJECT. OF COURSE HE IS REFERRING MORE TO THE MALIKI ADMINISTRATION HERE AND THIS SITUATION HAS HOW ENTIRELY CHANGED. THIS MAKES ME FEEL THE ARTICLE WAS ACTUALLY WRITTEN IN SIMETIME EARLY LAST SUMMER 2014].
It confirms the Governor of the Central Bank on the Keywords for "Qurtas News" that the project application to delete the zeros Matrouh the bank's management for years but its application depends on the stability of the country, indicating that the central bank found the plans in order to strengthen the dinar and stability through printed with groups of local currencies large Kal50 thousand dinars and 100 thousand dinars. "
[TELLS US (AND CONFIRMS TO US ONCE AGAIN) THE INTERDEPENDENCE BETWEEN CONTINUING THE PROJECT TO DELETE THE ZEROS AND DISTRIBUTING THE NEWER 50K AND 100K NOTES.
Keywords and added that "the goal of putting such a large currency denominations is to deflate, and which will be issued effectively over the next few months," explaining that "the new currency comes as part of the international standards that can not visit."
IT THEY DROP THESE NEWER LARGE NOTES WITHOUT FIRST TAKING IN THE 3 ZERO NOTES THEY WILL HAVE HYPERINFLATION (THIS IS WHAT THE ARE TRYING TO AVOID). THEY ALSO MUST BEGIN DROPPING OUT THE NEWER LOWER DENOMS (10,20,50,100 ETC) AND THE COINS TO BEGIN THE PROCESS. THESE NEWER 50K AND 100KK NOTES ARE NEEDED TO COINCIDE WITH THE INTERNATIONAL BANKING STANDARDS FOR INTERBANKING TRANSACTIONS]
He revealed Governor of the Central Bank of Iraq on the Keywords, in March 2015, giving the green light to direct the implementation of file deletion of zeros from the currency, and as he emphasized that the completion of administrative matters of this file will take two years, pointed out that "the bank began creating new currency models.
[THE CBI ALREADY GAVE THE GO AHEAD IN MARCH OF THIS YEAR FOR THE PROJECT TO DELETE THE ZEROS SO IT’S A MUTE POINT TO DISCUSS ANY LONGER THE PROS AND CONS OFSTARTNG THE PROJECT BACK UP. IT WILL TAKE 2 YEARS TO COMPLETE. SO WE CAN SEE THEY NOW ARE 2 MONTHS ALREADY INTO THE PROCESS. THIS IS WHY THIS ONGOING DEBATE ON WHETHOR OR NOT TO POP OUT THESE NEWER 50K AND 100K NOTES IN NOW GOIING ON SINCE IT IS COINCIDING WITH THE PROJECT]
The Central Bank of Iraq confirmed, (in the February 2, 2015) that Iraq is in control of his money and safe from gold, in international banks, one of the acting out, denying the existence of frozen outside the control of the Iraqi administration funds ", and revealed that the bank's reserves will reach the 80 billion dollars end of this year.
[THEY ARE TELLING US THERE IS PLENTY OF GOLD IN THE RESERVES, AND OTHER FUNDS RESIDING OUTSIDE OF IRAQ AND IRAQ IS NOW IN A SAFE POSITION TO COMPLETE THE CURRENCY REFORM]
So do we have to wait 2 years before they begin collecting the 3 zero notes?
NO – they have already collected nearly 95 % of them from the citizens in Iraq and plan to collect ours from out of country within the next 2 years. I believe what the CBI is saying is that they will take 2 years to collect them all and we will have this amount of time to exchange them. Remember too that foreign banks have been seeded the dinars to booster their reserves and they too must slowly exchange them over time and they will need years to slowly do this as the Iraqi economy grows or else they might crash its economy.
So here are the OTHER Events Telling us the RV is very close.
1)Security Situation is moving forward quickly now
PM Abadi telling us a year ago that ISIS might take till early summer 2015 to solve. The coalition now paused to strike on Mosul. Ramadi in Anabar region is liberated. In fact we await more news on Mosul this week.
ABADI ANNOUNCES THE START OF MOBILIZATION OPERATIONS TO LIBERATE MOSUL
(IraqiNews.com) Baghdad- the commander of the armed forces, Prime Minister Haider al-Abadi announced on Monday, the start of mobilization operations to liberate the city of Mosul from ISIScontrol, stressing his determination to expel the organization from every inch of Iraq.
Abadi said in a televised speech delivered before his departure to the French capital Paris to attend the International Conference of the Alliance against ISIS organization,”The past few days have seen the achievement of important victories in Baiji, Tharthar, Hamrin mountains, Anbar and Ramadi itself,” indicating that, “the victories have been achieved in all the fronts. ”
“We have started mobilization operations in Mosul to besiege the enemy from everywhere and everywhere,” vowing to “expel them from every inch of ground in Iraq,” Abadi added.
The Prime Minister Haider al-Abadi went earlier on Monday to the French capital Paris to attend a conference of foreign ministers in the international coalition against ISIS.
2) The Application of the new Tariff Laws in all provinces
Recently we have seen many articles telling us that the old tariffs would continue through June and the new tariffs would be FULLY implemented on July 1st. Will they actually do it? We have heard this news before and they never carried it out.
What does this tell us, if they actually do it? We know that to FULLY implement the tariffs they are dependent upon the linkage to the global exchanges for the countries of origin and the IQD. The current up to date exchange rates must be online (in the exchanges). Right now it is not since the currency reform is not completed for Iraq.
If this is not done they can not use the software system set up by the WTO used in many other countries to automatically calculate and bill the tariffs fees for imports and exports of goods. They are missing out on billions $$$ in easily found duties each year simply due to not implementing this system FULLY.
We all know the financial crisis they are in. So this is a much needed source of additional revenue (other than oil revenues) much like what the WTO has been telling them all along to implement. But how do you bill a country when you can’t convert the currency values?
There is no other reason why they keep postponing this implementation. So when I hear yet another article about them talking about these tariffs again I get excited.
PARLIAMENTARY ECONOMIC: THE TIME IS RIGHT TO APPLY THE CUSTOMS TARIFF IN ALL OF IRAQ
Tomorrow Press (AFP) Baghdad: the economic committee in the House of Representatives, Monday, that the time is now for the application of tariff sort out customs' formalities in all the governorates of without exception, the central government to apply the law and coordination with the governorates.
The chairman of the Committee, Jawad al-Bolani to 'Tomorrow Press', that 'Iraq must be [kmrkyah] area one sort out and the Customs Tariff Act passed by the House of Representatives must be in force in all Iraqi border ports in all the territory of the country, without exception'.
He added that the 'application of law puts up in Iraq to the application of the standards of foreign trade required', referring to the 'laws that proceed in the Federal Chamber is with the consent of representatives of the people in all the governorates and political blocs also'.
Al-Bolani called 'the Government to apply laws that it legitimizes the house and governorates to adhering to the guidelines, and that there will be coordination between the central government and government highly Kurdistan Province for the application of the law tariff sort out customs' formalities', explaining that 'law legislation came as part of a political agreement between the blocs'.
The Chairman of the Economic Committee of the parliament that 'the time is now for the application of tariff sort out customs' formalities in all Iraq, because the delay in the application of the law does not serve any party and harms trade', refusing to 'the application of the law to a particular part of the country, because the people would feel no justice if applied to the province of the others'.
"Al-Bolani said that 'the imbalance in the application of the law takes its toll paid Iraqi citizen', confirming that the 'Tariff Act sort out customs' formalities will add general budget and reduce the deficit in which, if applied, it would remain the treasury suffers from lack of'.
Link to PART 2