Iraqi Faces Threat As US Closes Oil Revenue Account - ZIM In Free Fall.

[Luigi1]

Here's some articles of Dinarian interests...

Zimbabwe Set To Announce Fate Of Local Currency After 73% Plunge.

Iraqi Economy Faces Threat As US Closes Oil Revenue Account.

Treat as rumors.  Not verified.  Your opine.

 

 

 

TNT via Harambe:           Zimbabwe Set To Announce Fate Of Local Currency After 73% Plunge.

ARTICLE:  Zimbabwe’s currency plunged to yet another record low as citizens rushed to the safety of the USD amid speculation an announcement from the CBZ on the fate of the local unit is imminent. 

 

The Zimbabwe Dollar traded at 22,476 against the greenback, taking its losses this year to 73%, the world’s 2nd-worst performance only after the Lebanese pound.  A sense of urgency has gripped the nation after authorities brought forward the start date of the new governor, John Mushayavanhu, by a month.

 

The local media reported the move was made to announce a new currency plan that may include embracing the gold standard.

 

The southern African nation’s unstable currency risks sending the nation back into hyperinflation 15 years after its old local dollar had to be abandoned. The latest two Reserve Bank of Zimbabwe governors, John Mangudya and Gideon Gono, failed to bring order to the exchange rate despite multiple efforts.

These included the launch of gold coins and gold-backed digital tokens under Mangudya’s watch, while Gono repeatedly slashed zeros off banknotes as hyper-inflation spiraled & topped 231 million percent in 2008.

 

“What we are seeing is anxiety & people preferring to hold USD,” said Lloyd Mlotshwa, head of research at IH Securities, a Harare based brokerage. “This signals reverting to a place of safety ahead of the currency announcement.”

 

Local media reports at the weekend said Mushayavanhu, who assumed office on March 28 instead of  as planned, may announce at the end of this week the new currency policy in a monetary policy statement, which has been delayed for almost two months. 

 

The CBZ has not given a date on the release of the monetary-policy statement that was originally scheduled for February but had been deferred to give policymakers time to finetune the currency plan. 

 

David Mnangagwa, the country’s deputy finance minister, said last week the statement’s release was imminent, attributing volatility in the exchange rate to “anxiety & anticipation” over the policy’s delay.

 

Meanwhile, the premium for Dollars in the parallel market over official rates has widened 60% to as much Z$36,000, according to which monitors the exchange rates. 

 

 

 

Tishwash:                   Iraqi Economy Faces Threat As US Closes Oil Revenue Account.

ARTICLE:  According to the letter, Iraq maintained this account with the US Federal Reserve Bank, allowing it to receive oil revenues in Dollars & utilize them to cover essential expenses in accordance with agreements with the US.

 

 In a recent development that has raised concerns over the stability of the Iraqi economy, the US has closed the account through which Iraq collects revenue from its oil sales.

 

This revelation came to light through a letter addressed to the Finance Committee of the Iraqi Parliament, dated March 18, 2024.

The letter, signed by Ammar Khalaf, Deputy Governor of the CBI, outlines the closure of the account known as the Development Fund for Iraq (DFI), which has been operational since 2003.

 

The DFI, under the supervision and protection of the UN & the US, served as a crucial mechanism for Iraq to collect & manage its oil revenues.

According to the letter, Iraq maintained this account with the US Federal Reserve Bank, allowing it to receive oil revenues in Dollars & utilize them to cover essential expenses in accordance with agreements with the US.

[BETTYBOOP]

If the account has been closed and the money in it is returned to Iraq then if they mess up it is their problem to fix. Clearly somebody , somewhere feels they are able to manage without the protection of the UN & USA

[BETTYBOOP]

I do not believe the USA or the UN would let them loose if they didn't think they were capable or ready

[Luigi1]

1 minute ago, BETTYBOOP said:

If the account has been closed and the money in it is returned to Iraq then if they mess up it is their problem to fix. Clearly somebody , somewhere feels they are able to manage without the protection of the UN & USA

 

Last count, there were over 40 countries with lawsuits or liens against Iraq for non payment of loans.

 

The Paris Club only offered some protection.

[BETTYBOOP]

7 minutes ago, Luigi1 said:

 

Last count, there were over 40 countries with lawsuits or liens against Iraq for non payment of loans.

 

The Paris Club only offered some protection.

Well if that's the case why let them loose unless they have agreed payment or have paid and we don't know about it. Or they are giving oil as payment

[DinarDavo]

33 minutes ago, Luigi1 said:

 Iraqi Economy Faces Threat As US Closes Oil Revenue Account.

 

As much as I would like to think of this as a good thing, I suspect we will be amazed as to how quickly the cookie jar empties....

 

[edbeach]

This seems reason why they have not RV pver last 20 yrs and stalling. Oh well looks like they getting ready to take off their training pants and put on the big boy pants. They screw up after this too bad no more crying  poor will have to stand on their own feet instead of begging for hand outs from other countries. Ao they want to join the Brics they better be dam sure is the right move.

[NWGUY]

Let them sink or swim.  There is no easy way to do it.  Kind of like you teach your children the best you can, and when you turn them loose in the world, it is up to them to succeed!   Iraq has had plenty of help, they have huge oil reserves, and gold reserves, so if they sink, it is totally on them.  Nobody should be their keepers!  

[BETTYBOOP]

Agreed @NWGUY ! It's now or never for them. 

[Luigi1]

1 hour ago, NWGUY said:

Let them sink or swim.  There is no easy way to do it.  Kind of like you teach your children the best you can, and when you turn them loose in the world, it is up to them to succeed!   Iraq has had plenty of help, they have huge oil reserves, and gold reserves, so if they sink, it is totally on them.  Nobody should be their keepers!  

 

Yup.

Iraq has got a global free ride for 20 years.

It's time to stop playing victim.

Their debts have been forgiven.

The free ride is over.

Pay up.

[Luigi1]

Here's some more confirmation...

 

 

Militia Man:           Account Closed.

Article: “The US has closed the account through with the Iraq collects revenue from its oil sales”   The DFI fund was closed on March 18th…Big change.  We have not seen this before.  Is it a smoking gun? …If they were going to stop an account that had protection for all their oil money and they just now relinquished a couple weeks ago I think that’s pretty big…They must have felt comfortable in a sense they could handle recourse on that debt…I’ll tell you this, if they change the value from 1310 to a previous era, it’ll become a lot cheaper to pay off their debts…

[Luigi1]

More confirmation....

 

 

MarkZ via PDK:           Confirmation.

Question:  Did Iraq get their bank accounts & money back from the US? 

MarkZ: YES. This is huge. This is enormous. Iraqs money for oil sales is no longer going through the United States. I was told this is what Iraq has been waiting on before they forced things to fruition…The closed DFI account is huge…And one of the things I was consistently told from government contacts in Iraq is how hard it has been for them with oil revenues going through the US. This has enormous repercussions for Iraq and their economic sovereignty. This is an important key piece that we just saw occur…Now we need the announcement on the HCL front, which I believe has already happened- we just need the announcement.

[BETTYBOOP]

Great work @Luigi1 !!

[BETTYBOOP]

I don't want to jump the gun.... but with all the positive news today , it actually feels as if they could move forward. 

GO RV! 

GO IRAQ!

GO PURCHASING POWER!!

GO NEW RATE!!

GO HCL!!

GO INTERNATIONAL MARKET!!!

[NWGUY]

You forgot one thing BB...Go to the bank!!!  

[edbeach]

Bettyboop- I agree they just finalized a deal to devrlope Iraq al Faw port and economic zones with AD Ports Group a UAE company. Plus we know how important this al Faw port is to Iraqto bring in billions of dollars for years to come. Another important signing for future income of Iraq. This article was brought over by SocialDinar Thank you for the articleSD

[BETTYBOOP]

13 minutes ago, NWGUY said:

You forgot one thing BB...Go to the bank!!!  

🤣🤣🤣🤣  that as well!