Is there any hope for the Iraqi Dinar? Many of our readers at “Going Global East Meets West” and listeners of “Phoenix Rising Radio” are asking this very question and I will answer that very question within this article.

The Iraqi Dinar (IQD) is the currency that has been used by the nation of Iraq and a concise history of the Iraqi Dinar can be found on the Wikipedia:

“The dinar was introduced into circulation in 1932, by replacing the Indian rupee, which had been the official currency since the British occupation of the country in World War I, at a rate of 1 dinar = 11 rupees. The dinar was pegged at par with the British pound until 1959 when, without changing its value, the peg was switched to the United States dollar at the rate of 1 dinar = $2.80 dollars.  By not following the devaluations of the U.S. currency in 1971 and 1973, the dinar rose to a value of US $3.3778, before a 5 percent devaluation reduced the value of the dinar to US $3.2169, a rate which remained until the Gulf War, although in late 1989, the black market rate was reported at five to six times higher (3 dinars for US$1) than the official rate. This translates into a Gulf war “market rate” of 1 dinar = .30 cents US.

After the Gulf War in 1991, due to UN sanctions, the previously used Swiss printing was no longer available. A new, inferior quality notes issue was produced. The previous issue became known as the Swiss dinar and continued to circulate in the Kurdish region of Iraq. Due to sanctions placed on Iraq by the United States and the international community and excessive government printing of the new notes issue, the dinar devalued quickly, and in late 1995, US$1 was valued at 3,000 dinars.

Following the deposition of Saddam Hussein in the 2003 invasion of Iraq, the Iraqi Governing Council and the Office for Reconstruction and Humanitarian Assistance began printing more Saddam dinar notes as a stopgap measure to maintain the money supply until new currency could be introduced.

Between October 15, 2003, and January 15, 2004, the Coalition Provisional Authority issued new Iraqi dinar coins and notes, with the notes printed by De La Rue using modern anti-forgery techniques, to "create a single unified currency that is used throughout all of Iraq and will also make money more convenient to use in people’s everyday lives". Old banknotes were exchanged for new at a one-to-one rate, except for the Swiss dinars, which were exchanged at a rate of 150 new dinars for one Swiss dinar.

The Dinar is currently pegged to the dollar at a rate of 1166/1164 (sell/buy) dinars per dollar as can be seen on the Central Bank Of Iraq's home page.

There is considerable confusion around the role of the International Monetary Fund in Iraq. The IMF as part of the rebuilding of Iraq is monitoring their finances and for this purpose uses a single rate (not a sell/buy) of 1170 dinars per dollar. This "program rate" is used for calculations in the IMF monitoring program and is not a rate imposed on Iraq by the IMF.”

So as you can see the history of the value of the IQD has seen a strong dinar opposed to the value of the USD and also it is apparent that this strong rate existed long before the nation of Iraq saw the rise to power of the former dictator Saddam Hussein.  Many false rumors have been circulated stating that the former high rate of the IQD was a false inflated rate done by Saddam Hussein but as you can see long before Saddam was even born the IQD had a high value compared to the US dollar.

That being said let us advance to the present situation in Iraq and the question at hand.

The nation of Iraq for decades suffered under stringent article 7 sanctions that had been placed on Iraq by the United Nations Security Council following the 1990 invasion of Kuwait by Iraq. The UN Security Council voted to remove Iraq from Chapter 7 of the UN Charter, unanimously agreeing to lift the UN sanctions imposed on Baghdad following the 1990 invasion of Kuwait by the executed dictator Saddam Hussein. On Thursday, June 15th 2013.

So as we see the nation of Iraq has been operating free of sanctions for almost 2 years but what Iraq has struggled with is to recover fully to full economic status and is still functioning under the IMF “program rate”. The next needed step for the Central Bank of Iraq which is to move the IQD to article 8 compliance according to IMF standards and this involves as our readers and listeners know the action of de-pegging of the Iraqi dinar (IQD) from the US dollar. This will be done as I have been reporting for almost 2 years now the announcement from the Central Bank of Iraq of a new currency backing basket for the Iraqi dinar which should be a basket of 5 currencies and possibly gold. The exact structuring of the backing basket and percentages of value of each basket item is classified and will only be made known upon the announcement of the CBI. What is known is the proposed currencies of the basket which are said to be the US dollar, the British pound, the Euro, the Japanese yen and possibly the Chinese yuan?

I speculate that when the CBI announces the dropping of the US dollar peg and the adoption of the new backing basket that the new adjusted rate of the Iraqi dinar due to the sum total of the basket percentages will be at or near .30 cents US. This move will not only protect the IQD from a falling dollar but will also do 2 other important things.  The first important point of this action will be the restoration of value to the IQD as its former street value of .30 cents that was seen right before the overnight devaluation with the introduction of the new Iraqi dinar by the coalition forces on October 15th 2003.  The second important factor of this action will be the moving of the IQD to parity with three of the six nations of the Gulf Cooperation Council (the GCC).  This action will also bring the Central Bank of Iraq and the Iraqi dinar into IMF, article 8 compliance.

The importance of the IQD gaining parity with 3 of the other GCC nations is huge and should not be overlooked as it is an important step needed for the final launching of the economic union of the GCC which has been planned for over a decade. Established in Abu Dhabi on 25 May 1981, the original union comprised the Persian Gulf states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates . The unified economic agreement between the countries of the Gulf Cooperation Council was signed on 11 November 1981 in Abu Dhabi. These countries are often referred to as "the GCC states".

Not all of the countries neighboring the Persian Gulf are members of the council (such as Iran and Iraq). The associate membership of Iraq in certain GCC-related institutions was discontinued after the invasion of Kuwait in 1990. The GCC States have announced that they support the Document of the International Compact with Iraq that was adopted at Sharm El-Sheikh, Egypt, in May 2007.

In 2011 Iraq received an invitation of Iraq's accession to the GCC but is yet to accept and I speculate the reason for Iraq not accepting is the need to de-peg from the US dollar adopting the backing basket and full IMF Article 8 compliance.  As stated the move to de-peg from the US dollar and the resulting rate change will bring the Iraqi dinar into rate parity with 3 of the GCC nations those being Saudi Arabia, Qatar and the U.A.E. all having an exchange rate of .27 cents US at this time. So as we can see a rate of the Iraqi dinar after de-pegging from the US dollar would give 4 nations of the gulf region economic parity making any future economic unity an easy task with little to no disruption to regional markets.

This we speculate will be the first step to full economic union within the GCC and at that time the world may see the launch of a strong gold backed gulf dinar at a projected rate of at or near $2.60 US.

Now as our readers and listeners remember I put out a warning near the beginning of the year about the possibility of the manipulation of the nation of Iraq and Central Bank of Iraq from external forces that were and are hell bent on preventing Iraq from de-pegging from the US dollar. The current move away from the petrodollar by major nations in the world is threating any and all nations that dare to remain in the dangerous position of a sole dollar peg for their national currencies. I have likened this dangerous situation to being strapped to an unsecured anchor on the edge of a ship deck in tumultuous seas…NOT a good place to be! The recent action of the Swiss unannounced de-peg from the Euro is an example of the same type of action we will soon see by the CBI but instead of the euro the Iraqis will de-peg from the dollar.

Now as I have stated in the past the pressure being placed upon the Iraqis to remain pegged to the petrodollar is HUGE and has been suspected as the possible motivation behind some of the destabilizing violence seen in Iraq. The pressure placed upon the current pro US Iraqi regime to remain pegged to the USD is intense but the question is…is there hope that the Central Bank of Iraq will make the move and drop the US dollar peg of the Iraqi dinar which threatens to be its demise?

My answer to this is…YES…there is hope! Why you ask? My answer to this is because of the self determination of the Iraqis and also the pressure of the GCC and BRICS nations for Iraq to de-peg from the USD. We are in a currency war…we are witnessing a battle of will and a battle of economic dominance and I expect to see a cascading series of economic events akin to what was just witness by the world with the actions of the Swiss in a move of economic self-preservation.

The action economic self-preservation for the nation of Iraq will be the unexpected announcement of dropping the Iraqi dinar peg to the US dollar and the adoption of a multi-currency backing basket with a new associated rate of at or near .30 cents bringing the IQD into a more realistic economic parity within the gulf region and also becoming IMF Article 8 compliant…all in one step.

When will this happen? As you know we have also for over 2 years been anticipating a major temporal marker that was seen by a group of professional remote views…this temporal marker was dubbed “the shot heard around the world”.  This is still the marker we are watching for and it is a very specific event that has very specific parameters.  The event is as follows, a man is standing behind a podium. On the front of the podium is a plaque or symbol of some sort. Behind the man is an arch. This is an arch shape and may be an arched doorway…or an image of an arch…or an arch shape such as a building or hill. There is a shot from a man with a rifle off to the side. The person at the podium is pushed down by people on the stage to protect him. It appears this is an assassination attempt but it is unknown if it is successful. It is unknown who the person is or where the event takes place. This event will be referred to by the media as “the shot heard around the world”. This event marks the time right before the central bank of Iraq de-pegs from the US dollar resulting in an upward change of value of the Iraqi Dinar.

As our readers and listeners know we have been watching for this remote viewing temporal marker for over 2 years and the expectation of the appearance of this event has not changed or wavered and is expected at any time.

So YES there is hope…so be advised that as we see these economic changes on a worldwide level the importance of having a plan and planning to act has never been higher.

For updates, news and interesting guest be sure to bookmark Going Global East Meets West and to listen to Phoenix Rising Radio Monday thru Thursday at 10 pm to midnight EST on Truth Frequency Radio!

Please feel free to share this article but permission is only given to do so in its entirety.

HOPE .. it’s a good thing!

Phoenix

http://goingglobaleastmeetswest.blogspot.ca/2015/01/message-from-phoenix-is-there-any-hope.html