Mnt Goat Tuesday Update - "Currency Auctions – What’s Really Going On?"

This period there is not much news from Iraq. But I firmly believe we are about to get a flood of information very soon. So today I just wanted to drop in quickly and review with you the latest news. 

The news will probably stay very quiet throughout the Christmas season since after all it is Christmas too in Iraq.

So for all these so called intel “gurus” who persist on telling you or suggesting to you the RV will happen before Christmas all I have to say is “take a hike” – it will do you some good !

Merry Christmas Everyone and may you have a Happy, Prosperous New Year !

Today’s News

Today is Tuesday December 22nd and yes we are now fully in the fourth week of December and still no RV. 

Oh- ….. I thought every “guru”’ was saying the RV was already “all done”? Really? They said this years ago and still say it now. Funny how this is always “all done” but where is the money? You go tell it to the Iraqi people too that it is “all done” and see if they agree.

How many RVs did we have already…lol…lol…?  So why can’t we go the banks?
Of course these are all rhetorical questions since we all know the answers before we ask them.

Today we are looking at these currency auctions again. Why again?
My contact suggested very strongly that we change our focus to the CBI and what they are doing with the currency reform. So this is what I have done. I also know there are still some outstanding reform laws that are needed so I am not downplaying these laws but just refocusing our attention for now.

So what is happening with these currency auctions and why so much recent publicity on them?

We know that Tamami, a parliamentary finance committee member, was asked to look into these currency auctions and she reported back to the parliament on what she found. The news she reported was not good and two main points she has kept emphasizing ever since were 1) the corruption involved 2) they are artificially keeping the value of the dinar low. She has published many articles on this topic reporting to the people what she had found. She suggested they discontinue the auctions and wanted to know why they auctions even  continued and if the are common practice in other Middle Eastern countries. So we can see the conflict between what the government of Iraq thinks and what the CBI is doing. So they are NOT on the same page when it comes to these currency auctions.

So now we see the CBI speaking out (see articles below) against her accusations (evidenced) that the CBI lowered the value of the Iraqi dinar against the dollar. However the CBI did, (indirectly) lower the value of the dinar against the dollar when they made it more expensive to purchase US dollars by charging more dinar to do so. Remember I told you that currently Iraq is almost entirely a US dollar economy since 2013 and so if the banks need more US dollars they must go to the CBI to purchase them. How do they  pay for them? 

What else is left? They must use the 3 zero notes and the purchasing process established is the currency auctions.

This is a measure by which the CBI is using to draw in the remaining 3 zero notes but more from the banks than from the citizens. We can see they raised the amount of the 3 zero notes (thus lowering the value of the dinar) needed to purchase 1 US dollar from 1166 to 1182. This is not coincidental. There must be a reason behind it.

Of course the CBI, in the next article below, is telling us they deny that they reduced the value of the dinar against the US dollar. However we see in another article ( also presented today)  from the CBI that they themselves are telling us  that in fact the CBI board had made a decision to adjust the official rate auction price of the US dollar. Do they not know that this will indirectly impact the value of the dinar? Of course they know.  This has been Tamami’s point all along. I think it is time the CBI made it clear to the government of Iraq just what they are doing.

So what is going on here?  Does the left hand know what the right hand is doing?

This is not a dead topic and I expect to see much more come of these currency auctions if they do not end at the   end at the end of the year, as the CBI told us months ago they would.

As we move closer to the end of the year and into 2016 this is going to get real interesting. 

Article Begins

CENTRAL BANK LOWERS THE VALUE OF THE IRAQI  DINAR AGAINST THE DOLLAR      
The Central Bank of Iraq, on Monday, reduced the value of the dinar against the US dollar.
According to a statement of the bank, that "lifting of US dollar selling to banks and exchange companies rate by 16 dinars any by 1.37 percent to 1182 dinars."

The statement noted banks and the conversion of financial, investment and banking offices that "the exchange rate by international standards is still under study and will report results if completed, knowing that he has changed the base rate of the US dollar against the Iraqi dinar by the Bank to the (1182) dinars per dollar. "

The bank was selling dollars at 1166 dinars, it reported statistically the bank sold more than $ 42 billion in the auction of the currency since the beginning of this year until last Wednesday.

Article Ends

Article Begins

CBI BOARD DECISION, THE OFFICIAL FX RATE (AUCTION PRICE) WAS ADJUSTED      
According to the CBI Board decision #329 of 2015, the official FX rate (auction price) was adjusted as the following: 1) The USD selling price became IQD1182 and the USD buying price became IQD1180 starting from December 1, 2015. 2) The USD selling price and the price used for paying correspondent banks will be unified starting from January 1, 2016 at 1190 (=1182+IQD8.0 (commission)).

Article Ends

Article Begins

CENTRAL BANK DENIES DOING TO REDUCE THE VALUE OF THE DINAR AGAINST THE DOLLAR      

2015-12-21|(Voice of Iraq)

Baghdad denied the Iraqi Central Bank, on Monday, news that talk about doing to reduce the value of the dinar against the dollar. The bank said in a statement that "news stories about the bank to reduce the value of the dinar against the dollar baseless," denying "the news ".He added that the bank" sale price of the dollar has not changed."

A number of media have picked up earlier, the news that the central bank reduced the value of the dinar against the dollar

Article Ends

Update: Currency Reform

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 in about 7-14 days 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.

Is this 1:1 a float and we must wait for the value to rise from $1.00+ to the $4.00+ before we see the RV?

NO! This initial process will NOT be put on an “official” float as many so called intel “gurus” will try to convince you that it is. The time to the full RV has no significance to any float. How can it since the currency still not even be on the exchanges at this time. 

So when can we go to the bank and exchange our 3 zero notes?

First let me say it again - We may never realize this $1.00+  rate at the banks since the new rate will not  yet even be on the global exchanges (thus be able to go to the banks and exchange). The IQD will not be reintroduced to the global exchanges until after the full blown RV $4.00+ occurs which will come later.

Will we see the RV before Xmas?

I personally believe we may see the 1:1 value pop out as the lower denominations are circulated sometime before now and the end of the year. But I do not expect to be at the bank before sometime until mid to late January 2016. I have already told you why this is the timing. 

Will us, so called “internet” conference call investors, be privileged to exchange prior to the final RV?

NO - ABSOLUTELY NOT! That would be illegal !

Everyone holding these 3 zero notes outside of Iraq will exchange at the same time as the rates show up in the global currency exchanges and this will not happen until the full RV.

This has nothing to do with bank screens or any other secret bank currency books at the banks. It must be a legal rate on the global exchanges prior to the banks allowing the general public to exchange this currency.

I am telling you nothing new here. I have explained out answers to all these questions over and over again to you in my previous news letters. This is the state we are in and we just have to wait.

The fact that the budget is moving along now is great news. Now we need the National Guard and Amnesty laws and I do not believe we will see any next move in the currency reform until we get these laws – at least I would be very surprised if we did….lol…lol…

Update: Fighting ISIS

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, 
Mnt Goat