On Friday, the Central Bank of Iraq revealed the registration of a list of the names of complexes and companies that are not committed to the official exchange rate.
The CBI stated in the article the dollar is a foreign currency used for international payments abroad, and the Iraqi dinar must have the main role in the economy, not the dollar.
Do you believe now that Iraq is off the de facto peg?
Seems now the big push is to clean up any lose ends with the de-dollarizing process and prosecuting business that are not following the CBI reform procedures.
Al-Sudani: The dollar will drop to 1,320 dinars, and the Kurdistan region was the main port for smuggling it.
The CBI recently announced the push to emphasis that the Iraqi dinar is the national currency of Iraq and not the dollar.
The public has began to deal with the Iraqi dinar as the “national currency,”
The CBI told us this is considered a real step and a big shift for the organized economy, explaining and I quote from the article – “that the real value of the dinar that exists now is more than one and a half dinars, because the bank’s reserves are very high and therefore the national currency cover is high”.
What did this recent statement mean?
To me they are confirming that Al-Sudani told us about a month ago that the dinar is more valuable than the dollar.
Now they are saying about 1.5 times are valuable or $1.50 dinar to $1.00 dollar.
So when will they change the rate then in the street and in the CBI to finally reflect this true rate?
Why are still suppressing it then?
The CBI has recently told us the currency reforms will extend to the private sector, including car showrooms, and at a close stage, the furniture and electrical dealer will not need the dollar.”
And he stated, “This is considered a real step and a big shift for the organized economy.
This tells me they need more time to make this shift to the dinar but it is happening.
A government advisor confirmed, on Tuesday, yesterday, that the parallel market for selling the dollar will witness a new decline during the next ten days and will come closer to the official price, indicating that transfers are currently taking place in an easy and accurate manner, after the agreement with the American side.
Remember I was told that they must get the parallel market for the dinar stable first and then they intended to try to get to 1,000 and then target the reinstatement.
You can see by the trading summary chart taken on 04/19, that the Iraqi dinar is out pacing all other currencies as the EUR, JPY, GBP, AUD, CHF, etc.
When you read the chart is it a good thing that these other currencies are dropping in relation to the dinar since this means the dinar is gaining strength over them.
I am being told now and have been told that the currency reform plan of 2011 calls for a rollout to FOREX of a rate that reflects its true rate based on the QFS.
This means the true value is asset backed.
I have already showed you the assets of Iraq and so the makeup is much greater than prior to the 1991 and 2003 gulf wars when they were trading at around $3+.
Iraq can now almost fully back their currency with gold and this is only one of their valuable assets.
Remember they are now pumping 2/3 more oil than in 1991 and have a record high reserves way over 115 billion.
Also there is a huge potential for customs & tariffs revenue that could rival the oil revenues if handled and managed correctly.
I fully believe they will execute the currency reform plan of 2011 to the finish to the letter.
Also last Friday, in Baghdad – Mawazine News, the Parliamentary Finance Committee determined that the most prominent files to be discussed with Prime Minister Mohamed Shia Al-Sudani during the Saturday session, while revealing the possibility of 3 new amendments to the draft general budget 2023.
A member of the Parliamentary Finance Committee, Mueen Al-Kazemi, expected to start the second reading of the budget immediately after Eid Al-Fitr, pointing out that there will be amendments to it read at that time.
These amendments should satisfy any oppositions to passing the budget.
According to more recent news the second reading has begun.
This may take a week to complete.
There are still some political differences mainly stemming around the size of the deficit.
