Currencies, Gold & Dinar Updates.

[Luigi1]

Here's some articles of currencies interests...

Direct From The SANDBOX Report.

The Dollar Rose Amid Anticipation Of US Data & A Supreme Court Ruling.

Treat as rumors.  Not verified.  Your opine.

 

 

 

FROM IRAQI SOURCES:  Gold Prices Fell As The Market Awaited US Data& The USD Strengthened.

ARTICLE:  Gold prices fell on Friday, pressured by adjustments to a commodity index, anticipation of US jobs data & a stronger USD which added downward pressure on prices in the near term.

 

Gold fell 0.4 percent to $4,458.10 an ounce in spot trading by 0126 GMT.  The precious metal had hit a record high of $4,549.71 on December 26. 

 

The USD rose in early Asian trading, as traders awaited the latest U.S. jobs report & a Supreme Court decision on President Donald Trump's use of extraordinary powers to impose tariffs.

 

This week marks the start of the annual rebalancing of the Bloomberg Commodity Index, a periodic adjustment of commodity weights to keep the index in line with market conditions & this is expected to continue to put pressure on the precious metals market.

 

 According to FedWatch, investors currently expect the Federal Reserve (the US central bank) to cut interest rates at least twice this year. Investors are awaiting non-farm payroll data for clues about the future path of monetary policy.

 

 Non-yielding assets such as gold typically tend to rise during times of low interest rates & geopolitical or economic turmoil.

 

As for other precious metals, silver fell 1.5 percent in spot trading to $75.71 an ounce after hitting an all-time high of $83.62 on December 29.

 

 Platinum fell 2.9 percent in spot trading to $2,202.50 an ounce after hitting an all-time high of $2,478.50 last Monday.

 

Palladium fell 2.1 percent to $1,749.25 an ounce.

 

The Dollar Rose Amid Anticipation Of US Data & A Supreme Court Ruling.

ARTICLE:  The USD rose at the start of Asian trading on Friday as traders awaited a U.S. jobs report & a Supreme Court decision on President Donald Trump’s use of extraordinary powers to impose tariffs.

 

The Dollar Index, which measures the performance of the US currency against a basket of six currencies, rose 0.2% to 98.883 & continued its rise for the 3rd day in a row.

 

The upcoming U.S. non-farm payrolls report for December is expected to clear up much of the data uncertainty that has persisted during the government shutdown, but analysts say the data may not provide enough clues to clarify the future path of interest rates, according to Reuters.

 

Weekly unemployment benefit claims data released on Thursday showed a slight increase in claims.

 

According to the CME FedWatch tool, there is an 89% expectation that the Federal Reserve (the US central bank) will keep interest rates unchanged at its next meeting on January 27 & 28, compared to a 68% expectation a month ago.

 

The U.S. Supreme Court could issue a ruling later today that would determine whether Trump can invoke the International Emergency Economic Powers Act to impose tariffs without congressional approval, a move that could drastically alter U.S. trade policy & throw into chaos after months of negotiations.

 

The USD reached 156.885 Yen, little changed after data showed that Japanese household spending unexpectedly increased in November compared to the same month last year, indicating that consumption is accelerating ahead of the Bank of Japan raising interest rates to a 30-year high in December.

 

The Euro held steady at $1.1657 ahead of German trade data & eurozone retail sales figures due later today.

 

The British Pound fell 0.1% to $1.3436, the Australian Dollar was steady at $0.6698 & the NZ Dollar fell 0.1% to $0.5749.    Bitcoin fell 0.2% to $91,002.39 & Ether dropped 0.4% to $3,104.38. 

 

Sudanese Advisor: The Financial Deficit Is Short-Term & Will Not Hinder The Development Process.

ARTICLE:  The PM's financial advisor, Mazhar Muhammad Salih, confirmed on Saturday that the financial deficit is short-term & will not hinder the development process.

 

Saleh said, according to the official agency, that “the financial deficit in Iraq is mostly linked to fluctuations in oil prices,” explaining that “investors realize that this deficit does not necessarily reflect institutional weakness, as much as it reflects global market fluctuations beyond national control.”

 

He added that "this perception becomes more firmly established when the deficit is accompanied by disciplined financing tools, such as issuing domestic bonds & sound management of public spending, which sends a clear message of confidence that the government is able to control the course of public finances & not slide into chronic imbalances."

 

He explained that “the presence of strong financial institutions, foremost among them the CBI with its independence under Law No. 56 of 2004, constitutes an important reassuring factor for investors, as it reflects the state’s ability to absorb external financial shocks & maintain monetary stability.”

 

He pointed out that “despite the financial deficit, a number of investment attractions stand out that enhance investor confidence, foremost among them the low external public debt, which is a rare strength in the surrounding regional countries, as it means that Iraq is not burdened with stifling int'l obligations, which opens up a wider field for financing investment & future growth.”

 

He noted that “the relative weight of foreign reserves provides a solid cover for the nat'l currency & gives investors high confidence that financial transfers & capital movements will not face severe restrictions or sudden disruptions,” explaining that “the stability of the ER, even in the presence of a financial deficit, creates a predictable economic environment, which is one of the most important criteria that foreign investors look for when making their long-term decisions.”

 

He stressed that “the government’s commitment to major strategic projects in the fields of energy & infrastructure, such as the Development Road project, sends a clear positive signal to the investment community that the short-term fiscal deficit will not hinder the development process, nor limit Iraq’s ambitions to achieve sustainable economic growth and prosperity.”

 

 

Exchange Rates Have Decreased In Local Markets.

ARTICLE:  The markets of the capital Baghdad and the city of Erbil witnessed a decrease in the ER of the USD against the Iraqi Dinar on Saturday morning, in a decline that is considered the most prominent in recent days.

 

The Al-Kifah and Al-Harithiya exchanges in Baghdad recorded an ER of 146,800 Dinars per 100 USD, compared to a previous rate of 147,800 Dinars last Thursday.

 

ER also decreased in local money exchange shops, with the selling price reaching 147,250 Dinars, while the buying price reached 146,250 Dinars per 100 USD.  

 

The Iraqi Economy & The Impact Of Oil Rent Shocks & Financial Imbalances On The Sustainability Of Stability & Growth Policies.

ARTICLE:  As the new year 2026 begins, the Iraqi economy continues to suffer from accumulated financial imbalances, linked to its chronic structural deficiencies.  These imbalances act as a chain reaction, weakening the state's ability to achieve stability & growth.

 

The financial sector is subject to the same rentier nature each year, which fuels budget allocations & expenditure items.  This dependence makes public finances vulnerable to any price decreases or declines in exports, leading to sudden revenue shortfalls that quickly translate into spending pressures.

 

These pressures can result in delayed payments, project reductions, or increased borrowing.  This volatility makes long-term planning difficult & undermines the capacity to develop policies that support stability & growth.

 

While diversifying income sources beyond oil is a strategic option for mitigating risks, the reality of tax revenues remains far below potential.

 

The tax system does not reflect the size of the economy, the volume of consumption, or imports.  It also faces fundamental challenges, primarily the absence of a comprehensive GDP (industrial, agricultural, & tourism), resulting in tax revenue being concentrated on unproductive activities.

 

While a stable revenue base is not established to ensure the regular funding of essential services & provide the budget with the flexibility to withstand shocks through tax revenues, the state's management has become captive to a single source of rent.

 

On the expenditure side, the imbalance between current & investment spending is evident, with a large share of the budget allocated to consumption, while investment remains less stable & more susceptible to reduction during any crisis.

 

The danger of this pattern lies in its consumption of resources without building productive assets & infrastructure that enhance long-term economic capacity.   Furthermore, the inflated size of operational spending has created substantial obligations, reducing the effectiveness of fiscal policy.

 

When revenues decline, the state cannot reduce operational spending & often resorts to postponing investment, increasing borrowing, or accumulating arrears, which weakens growth & increases economic fragility.

 

When deficit financing is employed, the problem is exacerbated by the financing mechanisms.  While domestic or external borrowing may be necessary in some years to bridge temporary gaps, it raises the cost of debt servicing, squeezes out future budget resources & may reduce the available space for investment spending & services.

 

Similarly, the accumulation of arrears, such as contractors' dues or inter-institutional debts, leads to a partial paralysis of the economic cycle.

 

This is because it delays payments owed to companies, which in turn delays wage payments, purchase payments, or business expansion.  The crisis then spills from the state's records into the market & employment.

 

These imbalances are exacerbated by the inefficiency of public investment management & projects. Problems such as inaccurate planning, inflated costs, delayed implementation & declining quality all reduce the "productivity of expenditure."  This means the state may spend heavily without achieving commensurate results in infrastructure projects like roads, electricity, hospitals, or schools.

 

When project management is weak, public investment becomes less capable of generating growth & employment & the perception that spending does not translate into services becomes entrenched.  This, in turn, increases political pressure to boost current spending rather than restructuring it to enhance investment.

 

Therefore, financial imbalances cannot be discussed without addressing the contradictions between the overall economic objectives, the policies adopted & the implementation procedures, on the one hand, and the external shocks that affect the ability of economic policy to achieve its goals, on the other.

 

For example, in a fixed ER system, the effectiveness of sterilizing the money supply to stabilize the real exchange rate around its target value has diminished in terms of absorbing the impact of rising inflation & limiting the decline in the real value of the Dinar & the purchasing power of individuals.

 

Inflation has begun to erode welfare, as the impact of the instability of the foreign exchange gap has not been limited to financial activities but has extended to basic consumer sectors, which represent a net import balance.  This necessitates monetary policy intervention to achieve the goal of Dinar stability.

 

Since the General Budget is financed by the movement of global oil prices & their shocks that reduce oil revenues, the effectiveness of economic policy has also become affected by these fluctuations & shocks.  Hence, coordination between the objectives of monetary & fiscal policy is necessary to ensure the sustainability of government support for inflation targeting & maintaining the stability of the Dinar's value.

 

Therefore, any disruption in the dollar market or in financial transfer & compliance channels is reflected in prices & inflation, impacting purchasing power & social stability.  When inflation rises or prices fluctuate, demands for salary increases or expanded subsidies intensify, placing renewed pressure on the Budget.

 

The imbalance in the banking system is evident in the large size of the public sector in financial operations.  Banking activity plays a limited role in financing the real economy & due to weak financial intermediation, long-term financing for industrial, agricultural & service projects remains limited.

 

This is accompanied by weak financial inclusion & the prevalence of cash transactions, which reduces the effectiveness of fiscal & monetary policies, as well as oversight & collection processes.   This, in turn, weakens the decision-maker's ability to build an economic database that supports planning & revenue collection.

 

In such an environment, the private sector becomes more fragile, while government activity continues as the largest financier & operator of the banking sector, increasing pressure on the Budget instead of alleviating it through diversification by the private sector.

 

Not far removed from this situation are corruption, the squandering of public funds & tax evasion, representing a continuous leakage of resources & a weakening of trust & commitment.  Corruption increases contract costs, distorts spending priorities & reduces the quality of implementation.  Tax evasion & manipulation at various stages of collection or in certain commercial outlets lead to direct revenue losses.

 

When trust in institutions declines, society's willingness to accept necessary reforms, such as broadening the tax base, restructuring subsidies, or improving tax collection, weakens.  This traps the state in a vicious cycle of incomplete reforms, limited results & increased resistance to reform.

 

In Conclusion:

Iraq's financial imbalances stem from the rentier nature & volatility of its revenues, the inflation of current spending compared to weak & ineffective investment & the lack of sustainable economic stability due to its dependence on & vulnerability to fluctuations in oil production.

 

 Furthermore, the banking system's limited role in financing private sector activity & the economy's sensitivity to foreign ER volatility exacerbate these problems.

 

Therefore, crucial financial solutions include administrative reforms to consumer & investment spending, linking employment to productivity, improving project management through transparent contracting, oversight & evaluation standards & restructuring the banking sector, promoting financial inclusion & linking it to productive financing.

 

Additionally, reforming service sectors such as electricity, water & telecommunications, reorganizing revenue collection & reducing leakage are essential.

 

This comprehensive package can transform public funds from a tool for crisis management into a tool for building a more diversified economy.

 

Therefore, in short, it is impossible to achieve financial & economic stability & growth without addressing aggregate supply imbalances, sustaining government support for the fixed ER system, stimulating the market & reducing dependence on imports by diversifying non-oil GDP sources.

 

 In reality, these are policies that are still within the scope of long-term planning & the challenges of the chronic structural imbalance of the Iraqi economy, which require well-established structural policies & treatments. 

[Luigi1]

Here's another article related to the above...the BRICS Gold Backed UNIT...

 

 

FROM OTHER SOURCES:  BRICS TAKE CHARGE — Gold-Backed Trade Units Signal A Shift Away From Dollar Dependence.
ARTICLE:  This is not de-dollarization — it’s a parallel system quietly taking shape.

 

Overview:

-BRICS has launched a pilot “Unit” settlement instrument that blends 40% physical gold backing   with 60% member currencies, offering a structured alternative for int'l trade settlement.

-Designed for governments & banks, not consumers, the Unit reduces reliance on correspondent   banking & mitigates sanctions exposure while maintaining ties to existing financial systems.

-Stability is anchored in gold, addressing volatility concerns common to purely fiat or digital   instruments.

 

Key Developments:

-Gold-Backed Structure: Each Unit is anchored by physical gold alongside proportional   allocations of BRICS member currencies.

-Blockchain Settlement: The system operates on a dedicated ledger maintained by an   independent research institute, with reserves placed in escrow within member borders.

-Trade-Only Instrument: Units are used for invoicing & clearing, avoiding intermediary FX   conversions & reducing transaction friction.

-Reserve Depth: BRICS nations collectively hold more than 6,000 tonnes of gold, reinforcing   credibility & long-term backing.

-Measured Rollout: The pilot phase limits scale & access, emphasizing testing, governance &   coordination over speed.

 

Why It Matters:

This initiative reframes gold from a passive reserve into an active settlement asset, positioning BRICS to diversify trade rails without triggering abrupt market disruption.  It signals a pragmatic approach: build alternatives without attempting to replace the dollar outright.

 

Implications for the Global Reset:

Pillar 1 – Asset-Linked Settlement: Tying trade units to physical gold restores credibility & dampens volatility during fiat stress cycles.

Pillar 2 – Multipolar Trade Rails: Parallel settlement options reduce systemic risk tied to single-currency dependence & sanctions chokepoints.

 

Key Takeaway:

The BRICS Unit is not a consumer currency & not a Dollar killer.  It is a strategic settlement layer—gold-anchored, institution-only & deliberately paced.  The message is clear: financial sovereignty is being engineered quietly, not announced loudly.

This is not just innovation — it’s the architecture of multipolar finance being laid.

 

[nannab]

Thank you Luigi 🙂

[Luigi1]

Here's another article/with video related to currencies...silver, the poor man's gold & it's future impact on the USD...

 

 

Lynette Zang:   2000% Silver Revaluation! What Every Silver Stacker Should Do.

ARTICLE:  The True Value of Precious Metals Silver & Gold Valuation: Lynette Zang argues that based on a historic 20:1 gold-to-silver ratio, silver's true fundamental value should be a minimum of *$300 per oune*. Applying this historical context, she calculates the true fundamental value of an ounce of gold to be between *$33,000 & $40,000*.

 

Gold Revaluation:

Lynette Zang views a revaluation of U.S. gold reserves as inevitable.  She believes the Federal Reserve would not implement this at current market prices because the current nominal price does not reflect the amount of paper money that has been issued. Its main purpose would be to regain public confidence after a catastrophic event.

 

⭐️ Prediction of Hyperinflation and Currency Reset The Scenario: The core argument is that hyperinflation is coming to "burn off the debt."  This period will see prices soar dramatically—the speaker gives an extreme example of a loaf of bread costing $80,000.

 

The Reset:

After the hyperinflationary crisis, the speaker predicts a government action, such as "lopping off zeros" in an overnight revaluation to bring prices back down (e.g., $80,000 to $8).  While all fiat savings would be reset, she suggests gold's newly high nominal price would hold value for a period before beginning to climb again in the new currency system.

  

⭐️ The Genius Act & the Stablecoin Market A New Monetary System:  She discusses the Genius Act as the1st legal foundation for cryptocurrencies & stablecoins, claiming it has already fundamentally changed the global monetary system.

 

Artificial Market:

By requiring new U.S. stablecoins to be dollar-backed on a one-to-one basis, the government is creating a new artificial market to support the Dollar, replacing the reliance on the UST market.

She highlights that the stablecoin market, currently at around $125 billion, is projected by some to grow to *$2 trillion by 2028*.

 

Criminal Cartels:
The video concludes by asserting that the legal framework being created is similar to the 2008 financial crisis, effectively allowing bankers to act unethically without legal consequence, which the speaker refers to as the legalization of "theft" (inflation).

Google key words in title to bring up VIDEO at source.