"STATUS OF RV" BY DINAR IRAQ AND DONG VIETNAM UPDATE (Don't These Same Stories Ever Get Old? LOL)

STATUS OF THE RV

I need to point out that there are two different stories floating around in the dinar RV intel community about the timing of the RV.

One story tells about having a fully completed government first, then the other says the CBI is not going to wait and the government is formed enough now for them the proceed.

So, have they not yet proceeded in the second case?

It is mid-January already.

Maybe there is a bit of truth in both stories, either way we sit and wait for the CBI to act.

There was a target this past weekend but this soon faded away since the government was not yet formed.

We still wait for the president to be elected and then to announce the new prime minister.

These are the remaining key positions.

Do we also need the cabinet to be fully formed once the prime minister is announced?

There is nothing but good articles this period once again reinforcing the notion that Iraq must do something with their currency revaluation and do it very soon.

In today’s news the CBI also talks about the most important reason why the dinar was devalued in December 2020 in the first place.

Hint: it was NOT to slow down or stop the currency auctions.

There is so much news about the necessity to change the exchange rate of the dinar against the dollar to a higher rate to reflect the TRUE value of the dinar.

But, still I wonder are they talking about just raising the “program” rate again or are they talking about the project to delete the zeros and then the reinstatement to the “glory days” of the dinar.

Remember prior to the 1991 Gulf war with Iraq the dinar was over $3.

If you go back to the late 1940’s it was over $4.

So, what has changed?

Here is what changed: Iraq is pumping and exporting almost 3 times the amount of oil, it now has two huge gold mines and is now ranked 39th in gold reserves worldwide, it has close to 96 billion in currency reserves, the potential to collect over 200 billion USD in DFI funds, fertile agriculture lands along the Tigris and Euphrates which they now export fruits and vegetables, huge quantities of minerals now being mined, huge, huge tourism industry, huge ability for customs and tariff revenues etc.

Correct me if I am wrong but it seems to me the only thing that has changed in Iraq is in even a better economic position now then in the early 1990″s or 1940’s. 

Iraq is now even by far a richer country so why do they still suppress the RATE of the currency if the VALUE has risen so much?

Remember my lecture on VALUE vs RATE.

Value is the total package of resources/assets and the ability to bring them to market.

The RATE is the assignment of a number to reflect the value of a currency in the “open” global market.

So, technically the IQD does not even have a rate.

It is all a fake number imposed upon the country.

So the fact that Iraq has not yet gone to FOREX and the rate is still suppressed tells us there is still some “hanky-panky” going on with the currency.

Yes, it is being intentionally suppressed.

But why? Why do they continue to do this to Iraq?

Remember the RATE should reflect the VALUE.

But we know once they move the dinar to the global trading platforms i.e. FOREX, the ability to manipulate the currency is restricted.

This restricts corruption and stops much of the stealing of the Iraqi wealth by all the shenanigans. 

One Iraqi economic expert, Ihsan Al-Kinani, recently confirmed that the government does not have any justification to continue to raise the exchange rate of the dollar in the local markets, (which lowers the rate of the dinar), pointing out that oil prices and financial abundance make it imperative for the next government to take measures to reduce the exchange rate of the dollar (thus raise the exchange rate of the dinar).

Another expert, the economic affairs specialist, Muhammad Ali al-Moussawi, also recently explained that the current year’s budget may be approved at an amount of 135 trillion dinars, pointing out that the dollar exchange rate needs to be modified according to what the next government plans to accomplish.

Then there is a recent interview with the Iraqi financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed today, Friday, that raising Iraq from the list of high risks encourages the entry of capital into the country, while noting that Iraq’s financial rating is high and has the ability to pay off debts and confront them.

I can go on and on what we have read in the recent months about the exchange rate and so where is the new rate?

EXCHANGE RATE FIRST

When you read it carefully you can see they are NOT talking about the program rate but a rate to go international and back to normal, off the sole “de facto peg” to the U.S. Dollar and to the basket of currencies, then a float.

It is time to adjust the exchange rate to enhance the value of the national currency (the Iraqi dinar) against the dollar.

And now that the reasons that prompted the decrease in the exchange rate of the dinar against the dollar as a monetary treatment to overcome the obstacle of the country being forced to borrow externally and internally have disappeared, there is no justification for sticking to this painful measure that touched the lives of all segments of society.

The direct reason for this tight monetary policy was the drop in global oil prices with the effects of the Corona pandemic, and the world has largely overcome this difficult ordeal.

With the return of oil prices to the rise, a cash surplus was achieved that contributed to supporting and strengthening the Iraqi cash reserve, the safety valve for periodic financial crises and natural disasters.

In addition to the above, Iraq was able to close the curtain on the debts imposed on Iraq forcibly to Kuwait.

These factors and indicators are encouraging to readjust the exchange rate to what it was before the revaluation of the dollar against the dinar Iraqi.

Perhaps one of the most important reasons and justifications for the demand to return the exchange rate to its normal state is the situation and the painful effects that the citizen has endured, forcing him to give the government the opportunity to address the already dire financial situation.

The measure to reduce the exchange rates of the Iraqi dinar against the dollar has caused chaos in the market and broke down the stability that the market enjoyed at the previous rate.

The prices of materials and goods have been inflamed, which has affected the purchasing power of the citizen.

You can imagine the extent of the suffering caused by the prices of medicines and basic materials for all segments of society, especially the poor, the retired and the employees.

The measures taken by the government to treat the poor segments were not equivalent to the effects of the exchange rate difference.

Accordingly, one of the tasks of the new government is to take decisions to restore the price and take strict measures against price manipulators, especially medicines and important commodities that touch the citizen’s livelihood by activating the role of careful monitoring of the market.

In mentioning the prices of medicines, the Pharmacists and Physicians Syndicates must activate their role in monitoring and accountability.

For this reason, let us make readjusting the exchange rate the first task of the next government and parliament to relieve the burden of the citizen.

A question that comes to mind, can the concerned authorities begin to gradually reduce the exchange rate until the formation of the government to mitigate the double effects on both sides of the equation?