DeepWoodz: Contracts using foreign contractors can use whatever exchange rate they choose. One that will guarantee the VALUE of the contract, more so than the actual number of units of currency.
They said they were paying contracts in dinars.
Well if the dinar was worth a dollar,
but during the contract, the dinar became worth 3 dollars instead of 1(hypothetically speaking), it wouldn’t be fair to Iraq to still pay out 3 million dinars on a 3 million dinar contract. The value of the contract was originally 3 million dollars, which could now be paid using only 1 million dinars.
Vice versa, the VALUE would be protected for the contractor as well. If the dinar lost value during the contract, it wouldn’t be fair to expect the contractor to settle for 3 million dinar if its now only worth 1 million dollars.
So what it boils down to is the government is taking advantage of a new rate while the citizens continue to wait. The upside is that the dinar is building trust with the world. Which should reflect positively to us all eventually.
Hence the sovereign guarantees
~~~~~~~~~~
Buckeyetree: The contract rate is hidden and known only between the parties involved. That rate would likely match at least the start up rate to be revealed where it will then enter Forex to be traded globally. Start up could be $1.50 or $3.22 and still go higher till a cap. We do not know the initial rate or the exact cap or the rate in the contracts. We look at the guide posts.
Who would do big business with Iraq at a 1310 or 1320 rate? Iraq would have to pay an enormous amount of dinars to make it worth their while. Impossible to build hospitals, industrial cities, a railroad, and more at a program rate. If we were to know details of those contracts, the intended rate may be exposed before it is time.
What Iraq has contracted and will pay those companies is a private matter. We wait for the public reveal of the initial international exchange value to then reach its real value in the float on Forex. This is what I understand thus far in our study and is all In My Opinion. We will see what happens on Sunday. With pressure to keep promises and videos made and ready to be shown, the times are changing. Again IMO.
************
The Sudanese advisor issues a clarification regarding the discussion of budget schedules in an extraordinary session
5/18/2024
Saleh said, in an interview followed by Al-Iqtisad News, that “during the extraordinary session of the Council of Ministers, the financial tables will be discussed,” pointing out that “these tables will be approved by a decision of the Council of Ministers and then referred to the House of Representatives for approval, in implementation of the provisions of Article 77/ Secondly, from the Tripartite Federal General Budget Law No. 13 of 2023.”
During the last cabinet session, Prime Minister Muhammad Shiaa Al-Sudani directed that an extraordinary session of the council be held on Sunday to discuss the budget schedules. LINK
DeepWoodz: I approve this message.
Like I said earlier, they are doing things the right way.
They showed up to vote.
Schedules are on the way.
Everyone has a part to play to make everything legitimate. There will be no more questioning Alak or Sudani because the majority is on board. They voted to extend their work for thirty days even though they are getting the budget schedules real soon according to Saleh. Why?
Because there are a plethora of things going on. This is not the time to sit home and watch. This is the time to be a part of history for your country.
************
Courtesy of Dinar Guru: https://www.dinarguru.com/
Frank26 [Iraq boots-on-the-ground report] FIREFLY: The news has that specialist...talking about the best way to fill in the gap for the dinar and the dollar (illegal market). He's telling us the best thing for it to do this is to float...Saleh now talking saying the CBI is the only one that can control this needed float. FRANK: They're going to float your currency because with a float they can come out at a higher rate than 1 to 1...this is a reinstatement of your exchange rate...The fact that they're talking about floating all day long...is because this is the next step in the monetary reform. Once they give you the new exchange rate and your new currency seconds later your currency will start to float...on international platforms
Mnt Goat Yes, we all want to know what is the holdup of the RV and I say there is no holdup, only time...The process must just play out. The plan of Dr Shabibi must be executed and there are many stumbling blocks and deviations along the way. But Iraq must and does, always come back to the 2011 Dr Shabibi plan... I know through the past articles and my CBI contact that the reinstatement will happen and has to happen if Iraq is to regain their national sovereignty.
