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"STATUS OF RV" BY DINAR IRAQ AND DONG VIETNAM UPDATE 2/22/23  DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1


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Post by Ssmith Wed Feb 22, 2023 2:22 pm

The news from Iraq this period is all very good and moving in the direction that we could possibly see the reinstatement soon.

All these efforts they are now taking for electronic banking, Point of Sale, electric grid, 2023 budget, etc, projects are all part of the equation leading Iraq’s monetary system to where it needs to go.

Yes, folks these are the needed reforms. 
So today let me explain to you how these events are all inter-related and work together to get us what we want – the RV. 
They do want to reinstate the dinar, they have told us this many times and it is even written in their plan as to how to get there.
The important part now is that the Al-Sudani government, the CBI are SERIOUS along with the US government.

We know that ditching the dollar was key and is here to stay only there are other reforms that should have already been completed and put in place but have lagged behind due to corruption and stealing of funds to accomplish them.
Iraqi Delegation Returns From the US
The conclusion of the dialogues of the Iraqi delegation in the United States of America, related to the dollar crisis are completed. 
In a way this visit was different from all previous delegations that visited Washington previously.

We are being told today in an article that the results of this negotiation were more than positive, and there was a very big surprise coming. 
The two parties have reached new mechanisms in cooperation, and they will contribute to the release of large batches of hard currency into Iraq, and agreement on the method of implementing the new electronic platform, and this matter will contribute, and within a very short period, to the stability of the dollar exchange rate in the local market, according to its official price.”

This price will be stable in the coming days.

Why is the 2023 budget delayed?
We heard the budget would be passed on to parliament for review and voting on weeks ago and it still resides in the council of ministers today. 
Today they tell us that work on the budget is continuous in order to change and reformulate the paragraphs and provisions of the budget law according to the new exchange rate for the dollar of 1300 that was recently announced.

This is what is holding it up. 
I note this today in the newsletter because I question if this really effects the program rate of 1300 alone or are they really just holding it back to wait to implement the process of the planned series of rate adjustments coming up as we were told they are targeting 1000 and that 1300 was just the first step from 1450.
We were told that when the rate is adjusted down to 1166-1000 and stabilized, they plan to continue to monitor for inflation and if they can keep the rate stabilized for a period (I do not know how long), the rate then will go to 1:1 with the US dollar, the final target to the process prior to the reinstatement back to FOREX. 
I can only think due to the rest of the news, that they are now targeting maybe June.

On Friday, the Diyala Chambers of Commerce presented a road map that will reduce the demand for buying dollars by 50%. 
This is all very good news for us long-term investors in the dinar.

The budget for the year 2023 will be completely different from previous budgets, in terms of service projects and financial allocations to complete important projects that have high completion rates, and the deficit in them will be estimated, and it will be filled through surplus funds from the last fiscal year. 
It is noteworthy that, according to parliamentary leaks, the budget for the year 2023 is expected to be the highest in the history of the country. 
Folks this all points to spending an enormous amount of money to rebuild Iraq and finally fix the energy grid.

We can also conclude from the budget articles in today’s news that it is not easy just to change the rate in the budget as it has many ramifications that trickle down throughout the budget. 

This is why I believe they are delaying for yet another reason which is to see if they can stabilize the this 1300 rate first, then move to the next step and the next prior to passing the final budget to parliament.

American Companies Ready to Come Into Iraq
On Saturday, the US Ambassador to Baghdad, Alina Romanowsky, expressed the readiness of American companies to increase investment in Iraq, especially in the field of energy, to serve the achievement of sovereignty for this country. 
The US ambassador also indicated, Iraq should do such things to enhance its security in order for companies to enter it and invest in a stable and calm atmosphere to serve the Iraqis.

The Iraqi government encourages the presence of American companies to work in Iraq, and new plans must be put in place to expand energy plants and develop the electricity network,” stressing that “the electricity infrastructure in Iraq is a good place to start the investment process."
The US Ambassador to Iraq, Elena Romansky, confirmed that America is determined to create new opportunities in the Iraqi energy sector, stressing the need for Iraq to do three things, namely investment, fighting corruption, and creating a work environment to encourage foreign capital to work in the country.  
Implementing Electronic Payments Throughout Iraq

The government media team with the prime minister held a meeting with the Central Bank of Iraq and the Ministry of Finance, and there is also communication with the Association of Iraqi Banks on the need to develop a tight media plan to demonstrate to the citizens the importance of these electronic devices used for point of sale and the ease of their use.
We were also told that this media campaign will start soon to educate the public about the benefits of these devices, which are scheduled to start operating in early June of this year. 
This is not the re-education for the lower denominations that is to precede the issuing of them for the project to delete the zeros.

This education is simply letting the citizens know how electronic payment systems can help them and how easy they are to use. 
Remember also that years ago the CBI attempted to get all citizens on the CBI debit card to they could be paid government salaries, retirement, pensions, etc via electronic transfer to their bank accounts.

This effort in the past was only partially successful and so there is work to be done in this aspect of the 2011 reinstatement plan since electronic payments will mean having a debit card to swipe.

Having a debit card means money in a bank account since this is where the money is drawn from to pay the merchant. 
We all should know by now the resistance of citizens in Iraq to trust the banks.

After all why should they, since corruption has been rapid and ISIS came in and raided many of them, wiping out peoples life’s savings. 
This is why the CBI and the GOI are partnering up with the news media channels in the effort.
So this recent effort we are now hearing about of implementing this electronic devices for point of sale is all very good news, but only if they can pull it off. 
This is all part of the process, as I explain it from the 2011 
reinstatement plan from the then governor of the CBI, Dr Shabibi.

Do you see now the signs that the CBI and the GOI are working hand in hand and getting really serious on implementing this 2011 plan that ultimately leads to the reinstatement? 
By the way the “White Paper” too is a more detailed plan that also parallels the 2011 plan.

My question about this play for these electronic devices is this- why wait until June as they told us and I quote “benefits of these devices, which are scheduled to start operating in early June of this year”.

I believe the delay is due to the target to get the electric grid generating power to the town of Iraq 24/7. 
We read many recent articles already on Siemens and General Electric coming into Iraq and doing this work on the grid. 
By the way this money was allocated during Nori al-Maliki’s tenor as prime minister and the work was even started but the generators never ran or got hooked up since the funds were stolen and the contractors simply left the job. 
So it appears they are going to try to entire gambit of work again. 
Let’s see if they can get it all working now in 2023 and by June. 

On Monday, a spokesman for the Iraqi government, Basem Al-Awadi, confirmed that Prime Minister Muhammad Shia Al-Sudani insisted on regulating the market and the trade process, while indicating that new packages and procedures would be launched to protect the Iraqi currency and modernize the financial system. 
Folks, could the news get any better? 
I think perhaps our prayers are working as he is turning out to be a very good prime minister, so far.

The Oil and Gas Law
The Information and Information Department of the Kurdistan Regional Government announced on Sunday that the Kurdish delegation agreed with the Federal Ministry of Oil to form a joint committee to prepare and write the oil and gas law. 
Yes, this is what we need to happen at this time.

Seems to me that whenever Iraq gets serious about the reinstatement of the IQD the topic of getting the referendum (the needed law) to implement the provisions of the Iraqi constitution are discussed. 
From what I heard over a decade now, is that the reinstatement WILL NOT occur until the new 2005 Iraq Constitution is fully implemented. 
This also means Article 140, which also seems to coincide with the efforts for the Oil and Gas law.

The Oil and Gas law is the Hydrogen Carbon Law (HCL). 
However, I will also add there are provisions in the Iraq constitution that state the people should receive a share of the excess oil revenues, which to this day they have already received indirectly through many sources such as social welfare programs (food ration cards, employment for doing nothing all day, large pensions and unemployment benefits, etc,) 
So the GOI cannot make this part of the HCL oil payouts to every citizen automatic every month yet, until they can withdraw many of these other payout programs. 
If they don’t end many of these other programs the government would not have enough money to support the country in other vital and essential areas of rebuilding the war torn country.

So, the excess oil revenue payments are coming but just not yet. 
This provision has absolutely nothing to do with the reinstatement, just so you also know this.

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