Frank26: [Boots on the ground Firefly report] “Al Baiji, he’s on our TV Channel news one. He’s saying that the exchange rate must be raised for the fairness of our people and this cannot last long…this is a duty of parliament committee.” All these guys are coming on Iraqi television saying, ‘hey we need to raise the value of our currency...’ For votes. Hypocritical liars.
[Boots on the ground Firefly report continued] Parliament has nothing to do with the monetary reform that the CBI is doing a masterful job on right now. They are the ones with full authority. That’s why they are going to come out very soon and talk to you [the Iraqi citizens]. What this guy is doing is nothing more than a political stance but it is positive because he’s reigniting the idea that you are going to have a new exchange rate…everyone knows that Iraq is about to go up in value.
MilitiaMan: Good evening. Aside from any triangulation that has been done by me and others, and that we have from gleaned from just about all 4 corners of the world support that our event we are waiting for is just about upon us.
Pointing out that the debt ceiling issue lately is real and it too, upon us again yesterday. They are to extend the debt ceiling by a couple days by doing another Bond Sale for Tuesday – Wednesday next week for 126 billion. The link I’ll provide shows at a present burn rate real close gets them a UST a mere couple days allowance, if that.. lol
Before I received the news article yesterday about that increase, I was called by a source. I was told there would be an additional allowance of time for things to take place and there we have it, imo that increase buys time. Imo we are seriously close now.
MilitiaMan: Keep in mind countries own foreign reserves. We are seeing a change for Iraq to a market economy. Not another devaluation. We are to see and should expect a digital transformation that gets Iraq into a market economy, exposes a rate, opens the 2021 Budget and on into the WTO, etc..
It appears now they apparently have had Kadhimi and his peeps have a Q&A session for the citizens. Results still yet to be known. It was said to start tomorrow. It has and or was moved up. There may have been a Tit for Tat situation going on. The UST needs Iraq and Iraq needs the UST.. Nothing new. It is negotiations.
The WTO knows full well about that topic too. Either way what we see from just the news of late that this time is so very compelling that the final push to a market economy is upon us.
I have no need to address the idea of December. It is folly and un supported imo. This is a digital transformation not a devaluation internally.. We are in uncharted waters and that means anytime this can roll out when all is in line and in sync.. Digitally…
The emergency 126 billion bond sale buys them only a couple days at an approximate 35 billion – 48 billion + a day burn rate and even less if over that.. My view we are seriously coming to the end. Let’s see what Kadhimi and clan have to say tonight.
The bond sales are next week and the original burn rate for August got them to forecasted time frame of about out to the 13th-14th real close and then add a couple days from the 126 billion addition gets us to about the 15th – 16th.. Unless they had an escrow time line that may have been missed..
Therefore, they may need to have little time to fund the debt with other means. That last
126 billion may have been a pressure and clue to as why Kadhimi sped things up today.
We shall see of course.. I don’t hear any sleigh bells yet.. lol imo ~ MM It is all in Gods hands be sure!! ~ MM
MilitiaMan “The Central Bank calls on exchange companies to follow up on the banned names 3rd August, 2021 The Central Bank of Iraq would like to emphasize the controls of money laundering and terrorist financing for companies brokering the sale and purchase of foreign currencies, which stipulated (the need for companies to follow the names prohibited from dealing received from the official authorities concerned with this) Therefore, this bank calls on your respected companies to own an electronic system that includes the daily movements of their activities, with the necessity of linking this system with the international and local deprivation lists supervised by the Central Bank of Iraq”
” Therefore, this bank calls on your respected companies to own an electronic system that includes the daily movements of their activities, with the necessity of linking this system with the international and local deprivation lists supervised by the Central Bank of Iraq””
MilitiaMan: Linking with the international system!! OR Linked?
Al-Kazemi: The White Paper is a Strategy for a Prosperous, Modern, Productive Iraq
That needs linkage
Gulf Cooperation: “During the reception, they discussed aspects of cooperation between the GCC countries and the Republic of Iraq and ways to strengthen relations, in addition to discussing the developments of the electrical interconnection program, developments in the regional situation and issues of common interest.”
Linkage.. “electrical interconnection program, developments in the regional situation and issues of common interest.” imo
Prime Minister Mustafa Al-Kazemi announced, on Monday, the third of August, the launch of the signal to start the administrative and executive mechanisms for what he said is the reform “white paper”
Al-Kazemi wrote on his Twitter account: “Today we launched the signal to start the administrative and executive mechanisms of the reform “white paper”. We promised that reform would be Iraq’s road map for the next stages, and we fulfilled our promise despite the challenges”. He also added that “the White Paper is a strategy for a prosperous, modern, productive Iraq that invests its enormous potential and human energies, combats corruption and stops waste
This supports my view that a directed float is what they chose to do.. “* Floating the local currency: is to make the exchange rate free from the authority of the state and the central bank, and it is decided automatically in the currency market through the mechanism of supply and demand, and it is the most tragic condition when the money is at the mercy of whales of greedy speculators, which will negatively affect the value of monetary assets in The central bank and the catastrophic result of poverty, unemployment and outrageous prices.
MilitiaMan: They need stability and they have got that support from the IMF imo
“The largest in its history .. the International Monetary Fund provides 650 billion dollars to support countries in the face of Corona”
MilitiaMan: Well my friends that 650 billion infusion being the largest in history is not a Christmas Gift.. lol One that comes in December. It is about to be on us now. Lets think out side the box and off our tricycles.. lol
Banks and lending facilities need liquidity. Deposits are debts.. Large entities tapping into lending facilities will help with a rising tide of debt.. AS in deposits. We are those that will be depositing. Banks with not enough liquidity will have the ability to exchange us.. Imo
The dilution of the SDR by adding more, may offset the tides rise.
THE UST has foreign reserves.. MASSIVE AMOUNTS……….MilitiaMan
Petra: The US needs the funding…he really has nothing to say about it. It’s numbers…liquidity, budget, rates and “INTEREST!!!!”…Almost 1/2 the money Yellen is looking to raise next week is to pay interest!!! So, that leaves, as MM indicated about 2 or so days of cashflow and then it’s gone. Get why the timing is now so critical????? PETRA
MilitiaMan: INTEREST is killer.. Hence the negotiations last week were imo hot and heavy.
My view is that now with Kazemi having sped up, is that the Tit for Tat has and is in play..MilitiaMan
Petra: Yes. And, we need to pay down our debt to reduce our expenses and increase positive cash flow….hence, the reserves, and KEY reserves are so critical….that’s why we are so bullish on the next several days. And, why we believe, K has upped his calendar!…….PETRA
MilitiaMan: Petra, not all debt needs to be paid down, but as much as needed helps of course. But, we have a very large economy, so not all reserves may be needed to draw down our debt to be effective…..MilitiaMan
Petra: Yes, now we are talking economic policy. Central banks dictate the monetary policy so now it’s up to UST/FED/Congress to figure that one out…PETRA
MilitiaMan: Yes, it appears is has been an honor system from negotiations….MilitiaMan
Petra: Yes MM, but he who holds he gold, makes the rules….for the most part…And don’t forget the Repo Markets!!!……….PETRA
MilitiaMan: Iraq has 40 tonnes not spoke of yet.. And or inground proven reserves.. imo……..MilitiaMan
Petra: But, the key thing, and we agreed MM that this bond purchase, may be just a cover to buy just a little time, but for all of the world….it’s Iraq’s time!!! IMO……PETRA
MilitiaMan: Always a reason for everything……MilitiaMan
Petra: So, we have strong expenditures lasting us until sometime next week with the addition of the “bond” sales, we have PM K announcing on Monday the launch of the reforms. And now, PM K is talking to the citizens. The perfect Trifecta! IMO…..PETRA
MilitiaMan: Petra, that is what we see today.. There are no coincidences now. Interest rates from market participants may have to much risk associated with what that does to the UST books…..They need the FRs to support the move. Hence the Tit for Tat we see on going.. imo…..IT also may mean they have cut a deal.. imo yep……..MilitiaMan
Petra: Agreed MM. The major players met in DC 2 weeks ago and things have been on hyper-speed ever since. There is no good scenario for the US with out the impact of those key reserves. Absolutely agree MM…Remember, Allawi and Yellen “met”…..IMO, I think we know why!!!!……..PETRA