Seeds of Wisdom RV and Economics Updates Tuesday Morning 9-8-26

YEN SURGE SHAKES THE $2.35 TRILLION CARRY TRADE: JAPAN’S CURRENCY REVERSAL COULD REPRICE GLOBAL CAPITAL FLOWS

Japan’s rapidly strengthening yen is forcing investors to reconsider one of the world’s largest funding trades, raising the possibility of broader shifts in global liquidity, asset prices and capital flows.

OVERVIEW

• The yen has surged nearly 4% in about a week, reaching a seven-month high as markets increasingly expect the Bank of Japan to raise interest rates.

• Cross-border yen borrowing — a proxy for the carry trade — reached a record 360 trillion yen, or approximately $2.35 trillion, in March, according to Jefferies analysis of Bank for International Settlements data.

• A sustained yen rally could force investors to unwind leveraged positions and repatriate capital, potentially affecting currencies, bonds and other global assets.

KEY DEVELOPMENTS

1. The Yen Has Suddenly Reversed Direction

The Japanese yen has moved sharply higher after spending much of the year under pressure.

The yen reached approximately 152.89 per dollar on September 8, its strongest level since February. It was trading around 160 to the dollar less than a week earlier.

Reuters reports that the yen has gained roughly 4.5% in one week, marking one of its fastest moves in years.

The immediate catalyst is growing expectations that the Bank of Japan will raise interest rates, potentially as soon as its next policy meeting.

But monetary policy is only part of the story.

Markets are also watching whether Japanese investors begin bringing money home and whether leveraged investors continue closing short-yen positions.

2. The $2.35 Trillion Carry Trade Is the Bigger Story

The carry trade works by allowing investors to borrow in a relatively low-interest-rate currency and invest in assets offering higher returns elsewhere.

For years, the yen was one of the world's most important funding currencies because Japanese interest rates remained exceptionally low.

That created an enormous cross-border financial position.

According to Jefferies analysis of Bank for International Settlements data cited by Reuters, cross-border yen borrowing reached approximately 360 trillion yen — about $2.35 trillion — in March.

That figure should not be interpreted as $2.35 trillion that will automatically be sold.

It is a proxy for the scale of yen-funded borrowing, and the actual size of the global carry trade is difficult to measure precisely.

But the number demonstrates why a rapid change in the yen can matter far beyond Japan.

3. A Stronger Yen Can Force a Global Deleveraging

The danger for global markets is not simply that the yen becomes more valuable.

It is what happens if investors begin unwinding positions financed with borrowed yen.

Consider the basic sequence:

Yen strengthens → yen borrowing becomes more expensive to repay → leveraged positions are reduced → foreign assets may be sold → capital returns to Japan → global liquidity changes.

That process can create additional upward pressure on the yen because investors need to purchase yen to close their positions.

The result can become partially self-reinforcing.

Reuters reported that analysts are already seeing short-yen positions being reduced and warned that continued yen strength could turn a gradual reduction in leverage into a much faster unwind.

4. The 2024 Warning Is Still Fresh

The global financial system has already experienced what a rapid yen reversal can do.

In August 2024, a sharp strengthening of the yen contributed to a major unwind of carry trades.

Global equities suffered a sudden sell-off as leveraged positions were reduced and investors moved rapidly to protect capital.

The current situation is not necessarily a repeat of 2024.

The important difference is that investors are watching the risk much more closely this time.

Japan's currency policy has also changed significantly.

Japan and the United States coordinated intervention in July to support the yen, and Japanese Finance Minister Satsuki Katayama said September 8 that Tokyo and Washington remain aligned and are continuing close communication to maintain orderly foreign-exchange markets.

That means the yen is now moving within an environment where market forces, Japanese monetary policy and international currency coordination are all interacting.

5. The Bigger Question Is Where Global Capital Goes Next

A sustained yen appreciation could become more important if it changes the behavior of Japanese investors and international funds.

Japan is one of the world's largest pools of institutional capital.

If higher Japanese yields make domestic bonds and other Japanese assets more attractive, some capital that previously moved overseas could remain at home or return to Japan.

At the same time, investors unwinding yen-funded positions could reduce exposure to higher-yielding foreign currencies and assets.

That could affect markets far beyond Japan.

The potential consequences include currency volatility, changes in bond demand, shifts in equity valuations and changes in global liquidity conditions.

This does not mean that a $2.35 trillion liquidation is inevitable.

It means that the direction of the yen has become an important variable in global capital markets.

WHY IT MATTERS

Economy: A stronger yen changes Japan's import costs, corporate earnings and domestic financial conditions while potentially altering the flow of Japanese capital abroad.

Markets: A large carry-trade unwind could create selling pressure in foreign assets as leveraged investors reduce positions.

Policy: The Bank of Japan's interest-rate decisions are becoming increasingly important to global investors because Japanese monetary policy can influence international capital flows.

Global System: The yen's reversal demonstrates how a change in one major funding currency can transmit financial stress or liquidity changes across multiple markets.

WHY IT MATTERS TO FOREIGN CURRENCY HOLDERS

The yen's move is an important reminder that currency values are connected to global capital flows, not simply to individual countries' economic conditions.

For foreign-currency holders, a major change in the yen-funded carry trade could increase volatility across other currencies as investors reassess risk and move capital between markets.

Currencies that have benefited from carry-trade flows can come under pressure if investors suddenly reverse those positions.

The broader lesson is that exchange-rate movements can accelerate when large pools of leveraged capital begin moving in the same direction.

That makes global currency diversification increasingly important to understand as central banks move away from the unusually low-interest-rate environment that dominated much of the previous decade.

IMPLICATIONS FOR THE GLOBAL RESET

• Pillar 1: Assets — Global Capital Could Be Repriced

The yen's reversal highlights the potential for large cross-border positions to move quickly when interest-rate expectations change.

If the carry trade continues to unwind, capital could shift among currencies, sovereign bonds, equities and other assets.

That would represent a repricing of global capital — not necessarily a crisis, but a structural adjustment worth watching.

• Pillar 2: Trade — Currency Relationships Are Becoming More Strategic

Japan and the United States are already coordinating closely on foreign-exchange stability.

At the same time, Japan's monetary policy is increasingly influencing the value of the yen and the behavior of Japanese investors.

Currency policy is therefore becoming intertwined with trade competitiveness, capital flows and financial stability.

The global financial system is increasingly interconnected, making major-currency movements a strategic issue rather than simply a foreign-exchange-market story.

CONCLUSION

The yen's sudden surge is more significant than a normal currency rally.

Behind the move is a much larger question: what happens when one of the world's most important funding currencies stops behaving like a cheap source of global liquidity?

The approximately $2.35 trillion yen-borrowing proxy does not represent a guaranteed wave of forced selling. But it shows why investors are watching the yen so closely.

If the Bank of Japan continues tightening and the yen remains strong, more carry trades could be unwound and more capital could potentially flow back toward Japan.

That could influence currencies, bonds and asset prices around the world.

The global financial system does not need a single dramatic event to reprice. Sometimes the repricing begins when the direction of a major currency — and the flow of capital behind it — suddenly changes.

Seeds of Wisdom TeamNewshounds News™ Exclusive

SOURCES

1. Reuters — The yen's sudden surge is upsetting the carry trade faithful

2. Reuters — Japan, US remain aligned on FX policy to foster stable markets, Katayama says

~~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's News Telegram Room Link

RV Facts with Proof Links Link

RV Updates Proof links - Facts Link

Start Here room with Most Asked Questions Link

Follow the Gold/Silver Rate COMEX

Follow Fast Facts

Seeds of Wisdom Team™Website

Thank you Dinar Recaps

Marc Faber: Imminent Financial Collapse, Money Printing & Gold

Marc Faber: Imminent Financial Collapse, Money Printing & Gold

Palisades Gold Radio:  9-8-2026

Stijn Schmitz welcomes back Contrarian Investor and Publisher of the Gloom, Boom, & Doom Report Marc Faber to the show.

 Faber opened the discussion by emphasizing the unprecedented complexity facing economists and investors today, driven by a confluence of dismal fiscal situations in Western democracies, geopolitical tensions, and the central role of central banks in financing massive deficits.

He questioned whether Western economies have experienced real growth over the last 20 years or merely nominal expansion fueled by money printing, which has inflated asset prices for the wealthy while eroding the purchasing power and living standards of the middle and lower classes.

Timestamps:

00:00:00 - Introduction

00:01:04 - Key Economic Trends Focus

00:05:31 - Real vs Nominal Growth

00:09:19 - Capitalism and Market Reforms

00:14:40 - Money Printing Unsustainability

00:15:40 - Debt & Economic Growth

00:17:40 - Future Asset Bubble Crash

00:20:48 - US Treasury Market Health

00:22:30 - Inflation Measurement Issues

00:29:06 - Gold as Value Store

00:35:49 - Correction in Asset Prices

00:38:12 - Energy Markets Outlook

00:44:37 - Gloom Boom Doom Report

00:47:33 - Concluding Thoughts

https://www.youtube.com/watch?v=Zvy9QNnKKV0

Tuesday Iraq News posted by Tishwash at TNT 9-8-2026

TNT:

Tishwash:  After September 30th, a new security agreement will keep Marines protecting the US Embassy in Baghdad.

On Monday, Hoshyar Zebari, a leader in the Kurdistan Democratic Party, revealed new details regarding the American withdrawal from Iraq, pointing to bilateral security arrangements between Baghdad and Washington, which include the continued presence of US Marines to protect the embassy .

Zebari said in a televised interview followed by Al-Sa’a Network that “this operation will end on September 30,” explaining that “the Iraqi government agreed with the American side two years ago that in 2026 there will be no need for Operation Inherent Resolve .”

He added that "Operation Inherent Resolve is an international coalition operation against ISIS, in which US forces and forces from the international coalition are participating," indicating that "this operation will be declared over, which means there is no need for the presence of US combat forces for this mission ."

Zebari explained that "the end of the mission in Iraq does not mean the end of the operation in Syria or Jordan," stressing that "the American side has already reduced its presence in Baghdad and Baghdad Airport, as well as in Erbil Airport ."

He noted that "Washington has contacts with the Iraqi government to reach security arrangements other than Operation Inherent Resolve and the military presence," indicating that "these arrangements may be bilateral, and may include the Kurdistan Region ."

He added that "the United States has an embassy in Baghdad and needs to protect it," noting that "Marine forces are present in American embassies around the world, including the embassy in London," as he put it  link

Tishwash:  Expert: The Iraqi banking sector faces tough reform, not collapse.

Economic expert Manar Al-Obaidi said on Monday that the Iraqi banking sector is not going through a phase of collapse, but rather a process of "sorting, reforming and restructuring" that may be harsh, but is necessary to prepare the sector for a phase of greater growth.

Concerns have recently increased after the Central Bank of Iraq decided to place Al-Taif Islamic Bank under guardianship for 18 months, following the detection of serious violations that affected its financial position. This sparked demonstrations and protests by depositors in front of the bank's branches in Baghdad and Basra to demand their money, while these events further deepened the erosion of Iraqis' confidence in banks.

Al-Ubaidi said in a post followed by Shafaq News Agency that his monitoring of the data and indicators of Iraqi banks for more than five years showed that the banking sector is practically divided into three categories, foremost among them the leading banks that were able to develop their systems, management and services and approach international standards, and build real trust with customers and depositors, noting that their number does not exceed about five banks.

He explained that the second category consists of medium-sized banks, some of which have an opportunity to grow and move to the leading category, provided they develop governance, capital, technical systems, risk management and compliance, while others may decline if they do not move at the required speed.

As for the third category, according to Al-Obaidi, it is the small banks, which are the weakest link and the most vulnerable to change during the next stage, suggesting that some of these banks will face limited options including mergers, restructuring, or exiting the market.

He stressed that these developments "are not necessarily an indication of the sector's collapse," explaining that banking is no longer limited to licenses, branches, and receiving deposits, but requires real capital, governance, risk management, compliance, advanced technological infrastructure, the ability to protect depositors' funds, and dealing with a financial system more connected to international markets.

He pointed out that the crises facing some banks may affect public confidence in the short term, but the essence of what is happening is "a sorting, reforming and reshaping process of the Iraqi banking market."

He added that some institutions "will not be able to continue in the current form," but the banking sector itself, in his opinion, is about to enter a major growth phase driven by the increasing need of the Iraqi economy for financial services.

Al-Obaidi pointed out that the trade, import, payments, transfers, corporate services, liquidity management, credit, guarantees and digital services sectors all need a more efficient and developed banking sector, stressing that the next stage will witness a shift in confidence from weaker banks to stronger ones, and from traditional services to digital ones.

He concluded by saying that Iraq will still need government, commercial and Islamic banks, "but not necessarily all the banks that exist today in the same form, size and model," stressing that the real question for the next stage is "which banks will be able to survive and gain the trust of the market?"  link

************

Tishwash:  Central Bank: No more sanctions on the banking sector.

The Central Bank of Iraq affirmed on Sunday its continued commitment to the reform process and denied the existence of any sanctions on the banking sector.

A statement issued by the bank, and reported by Al-Maalomah News Agency, quoted Governor Nizar Nasser Hussein as saying during a meeting with economic experts that the banking sector reform process is ongoing in coordination with Oliver Wyman. He clarified that there are no longer any international sanctions on the banking sector.

The statement added that international confidence in the Central Bank is very high, noting that the seven banks authorized to conduct transactions in currencies other than the US dollar may begin operations soon.

It further stated that the majority of depositors' funds at Al-Taif Bank are guaranteed, and that the Central Bank will intervene if a shortfall occurs. The statement emphasized that Iraq invests in the United States as a safe haven and the only country that has granted Iraq immunity, adding that the risks of investing in other countries are significant.

The statement concluded by noting that the total issued currency amounts to 107 trillion dinars, while the amount circulating in the markets is close to 40 trillion dinars.
He pointed out that "changing the currency is within the purview of the Central Bank," noting that "removing zeros requires legislation in the House of Representatives."

He affirmed that "the current government is run with a private sector mindset, and the media plays a crucial role in improving Iraq's international image," adding that "there are new lending initiatives to support important and vital projects."  link

Tishwash:   The "cash economy" weakens investment and deepens the shadow economy.

 Cash liquidity outside the banking system constitutes one of the most prominent challenges facing the banking sector and the Iraqi economy, given the continued reliance of individuals on cash transactions and keeping part of their savings outside banks, which raises questions about the reasons for this phenomenon and its repercussions on investment, growth and confidence in the banking sector.

 Economic experts believe that the large amount of liquidity leaving the banking system is not related to a single factor, but rather to factors related to confidence, banking services and procedures, as well as the nature of the Iraqi economy and its extensive reliance on cash.

Trust gap

In this regard, economist Abdul Rahman Al-Mashhadani said that the percentage of liquidity held by individuals outside the banking system exceeds 85 percent, while the Central Bank estimates it at about 90 percent, attributing this to the existence of a trust gap between the citizen and the banking system, both governmental and private.

Al-Mashhadani explained in an interview with Al-Sabah that bureaucratic procedures and inflexible dealings with customers are among the reasons for citizens’ reluctance to use banks, in addition to the large number of documents and procedures that accompany deposit and withdrawal operations.

He added that the measures taken by banks during crises, particularly restricting withdrawals, reinforce depositors' fears and push them to keep their money in cash, noting that citizens want to ensure they can access their money when needed.

He explained that the banking system relies primarily on individual deposits, and therefore restricting withdrawals or the bank's inability to provide the required amounts to depositors leads to a decline in confidence in the banking sector.

Deposit Guarantee

Al-Mashhadani pointed out that the failure of some banks or their exposure to bankruptcy represents another factor that affects the confidence of depositors, calling for strengthening the role of the Central Bank in protecting the banking system and individuals’ deposits.

He called for the establishment of an effective deposit guarantee system in order to contribute to reassuring citizens and encouraging them to deposit their money, noting that the limited guarantee is not commensurate with the amount of liquidity that individuals can deposit.

He pointed out that the weakness of banking services and the imposition of commissions on some transactions represent an additional reason for citizens’ reluctance, explaining that the need to pay commissions for some services, coupled with the insufficient availability of services, reduces the attractiveness of banking transactions.

He stressed the need for a "reform revolution" in this regard, explaining that the entry of savings into banks could allow them to be reinvested in development projects and productive sectors.

Disrupted liquidity

For his part, Dr. Maitham Al-Aibi, Professor of Public Finance at Al-Mustansiriya University, believes that the high percentage of liquidity outside the banking system means that there is a weakness in individual savings within the banking system, which makes the banking system less able to inject real investment into the local economy.

Al-Aibi told Al-Sabah: “The dominance of the cash economy affects the ability of monetary and fiscal policies to manage the money supply effectively and efficiently, and the money supply becomes outside the control of the two authorities, with the resulting negative effects on inflation and government spending.”

He added that storing money at home leads to a decrease in the velocity of money circulation between individuals and businesses, which is reflected in the recovery and economic growth, and leads to a decline in private sector growth and unemployment.

High liquidity is an important indicator of the growing phenomenon of the shadow economy, indicating that this leads to the emergence of money laundering, currency trading and informal operations that deprive the treasury of significant revenues.

He stressed that the lack of trust in the state by individuals has become a major obstacle to abandoning household cash, noting that the salary crisis, the delay in its disbursement, and the ill-considered and contradictory government announcements contribute to perpetuating this behavior.

He called for strengthening confidence by not allowing banks to withhold any part of individuals’ deposits and guaranteeing those deposits, guaranteeing deposits and withdrawals in the same currency, protecting the funds of depositors and small banks, as well as promoting digital transformation in a real and effective way.

hybrid economy

In contrast, economist Ahmed Al-Ansari believes that the rise in the money supply outside the banking system is due to two reasons together, but to varying degrees. The first is a relative weakness in confidence and use of banking services, while the second is related to the hybrid nature of the Iraqi economy and the spread of cash transactions and the informal economy.

Al-Ansari explained in an interview with Al-Sabah that the high percentage of liquidity outside the banking system cannot be considered on its own as evidence of a banking confidence crisis, but rather represents an indicator of weak financial inclusion and the economy’s reliance on cash, as well as the significant delay in digital transformation.

Experts suggest that addressing the phenomenon of liquidity outside the banking system requires addressing multiple aspects, starting with restoring citizens' trust in banks, moving through improving services and reducing their cost and protecting deposits, and culminating in promoting inclusion. 

Finance and digital transformation.

According to previous arguments, keeping savings outside the banking system not only means losing them from the economy, but also limits the possibility of employing them through banking channels in investment and production activity, at a time when strengthening confidence remains one of the key factors in changing individuals’ behavior towards saving and banking transactions. link

Monday Iraq News Posted by Tishwash at TNT 9-7-2026

‍TNT:

Tishwash:  An economist predicts the return of the 50 and 100 dinar denominations with the currency change.

Economic expert Mustafa Hantoush suggested on Sunday that the 50 and 100 dinar denominations would return to circulation if the currency change were to proceed, noting the possibility of issuing new currency denominations with stronger security features .

Hantoush said in a televised interview followed by Al-Sa’a Network that “the Central Bank may issue a new currency with advanced security features, with the possibility of introducing currency denominations less than 250 dinars, such as 100 fils .”

He added that "the Central Bank may move towards issuing 50 and 100 dinar denominations in the next stage," indicating that "the return of these denominations may contribute to supporting the currency and strengthening the position of the Central Bank ."

He explained that "the Central Bank has not yet made a final decision regarding this step, while the government is working on forming a committee to study the issue, pending the completion of the procedures related to it within the House of Representatives  link

Tishwash:  Baghdad, Washington Discuss Wider Bilateral Cooperation

Iraqi PM Ali al-Zaidi meets US Chargé d'Affaires Steven Fagin in Baghdad to discuss strengthening bilateral ties and easing regional tensions through dialogue.

Iraqi Prime Minister Ali al-Zaidi received Steven Fagin, Chargé d'Affaires of the US Embassy in Baghdad, Steven Fagin, on Sunday, with both sides underscoring the importance of dialogue and diplomatic tools in easing regional tensions and safeguarding the interests of the region's peoples.

According to a statement from the Iraqi prime minister's office, the meeting addressed ways to strengthen bilateral relations between Iraq and the United States, with discussions covering the expansion of joint cooperation across various sectors in a manner intended to serve the shared interests of both countries.

The statement said the meeting also touched on the broader situation in the region, with al-Zaidi and Fagin agreeing on the necessity of relying on dialogue and diplomatic means as the sole path to reducing tensions. Both sides framed this approach as essential to reinforcing the foundations of security and stability and protecting the overriding interests of the region's peoples.

The meeting reflected continued engagement between Baghdad and Washington as both governments signaled a shared commitment to diplomacy amid ongoing regional uncertainty link

************

Tishwash:  Governor of the Central Bank of Iraq: America is considered a safe haven for Iraqi investments.

The Governor of the Central Bank of Iraq , Nizar Nasser Hussein, said that the United States of America is considered a safe haven for Iraqi investments.

Hussein added on Sunday: "We invest in the United States as it is a safe haven and the only country that has granted Iraq immunity, and the risks of investing in other countries are significant."

 He explained that “the total amount of currency issued in Iraq is $81.7 billion (107 trillion dinars), and what is circulating in the markets is close to $30.5 billion (40 trillion dinars), and that changing the currency is within the powers of the Central Bank, and removing zeros requires legislation in the Iraqi parliament,” according to the German Press Agency “DPA”.

Hussein continued: “There will be no more sanctions from international bodies on the Iraqi banking sector. We are continuing the reform process in coordination with Oliver Wyman. International confidence in the Central Bank of Iraq is very high, and the seven banks that were allowed to deal in currencies other than the dollar may start operating soon.”

He explained that "the majority of depositors' funds in the Iraqi Islamic Spectrum Bank are guaranteed, and if a deficit occurs, the Central Bank of Iraq will intervene. The current government is run with a private sector mindset, and the media plays an important role in improving Iraq's image internationally." ink

************

Tishwash:  Ford officially enters the Iraqi market on October 1st.

 Ford is officially returning to the Iraqi market starting from October 1st, after appointing North Island Automotive Trading and Commercial Agencies Company (SAT) as its exclusive distributor in the country.

The appointment was based on a strategic alliance between March Holding Group and Al-Alayan Group, and North Island Company will be responsible for distributing cars, providing original spare parts, and offering after-sales services throughout the country.

Ford indicated in a statement received by Kalima News that "North Island Company (SAT) will, under this appointment, be responsible for distributing Ford vehicles, providing original spare parts, and offering after-sales services throughout Iraq."

The company added that "this embodies the depth of our long-term strategic commitment to the Republic of Iraq, and our keenness to facilitate our customers' access to modern Ford models, original spare parts and advanced maintenance services," explaining that "we are working to strengthen our sales and service network, consolidating the strong bridges of trust that customers in Iraq have built with the brand over the past decades."

Ford Middle East and North Africa President Ravi Ravichandran said: “Iraq is a key focus of Ford’s growth plans in the region, and we always strive to provide the best services to our customers there in the long term. North Island Company (SAT) shares the same vision that puts the customer first, based on quality standards and sustainable growth, and the company’s experience and deep understanding of the local market will contribute to enhancing the Ford customer experience from the purchase decision to after-sales services.”

For his part, North Island CEO Mohammed Aliyan affirmed that "Ford has a long and distinguished history in the Iraqi market, as it has represented a symbol of reliability and quality for several generations," adding that "our role today is not limited to distributing cars only, but also includes preserving this legacy and enhancing the trust that the brand has built over the decades."

Aliyan continued, "We established North Island Company (SAT) on a sophisticated infrastructure, qualified human resources, and a full commitment to delivering the integrated Ford experience that customers in Iraq look forward to and deserve."  link

Tishwash:  Central Bank Governor: We are continuing to reform the banking sector and support the national economy.

The Governor of the Central Bank of Iraq, Mr. Nizar Nasser Hussein, affirmed the bank's continued commitment to implementing its banking sector reform program in coordination with Oliver Wyman. He indicated that the coming phase will witness further positive developments in the banking sector and enhanced integration with the international financial system.

During a dialogue with several economic experts, the Governor explained that international confidence in the Central Bank of Iraq is very high, emphasizing the strengthening of internal oversight and the implementation of preventative measures for financial and banking institutions.
Regarding depositors' funds, the Governor stressed that the vast majority of deposits in the banking sector are guaranteed. He clarified that in the event of any disruption or shortfall, the Central Bank will intervene within its powers and responsibilities. He reassured the public that the Central Bank is capable of managing crises, given its reserves, financial instruments, and contingency plans.

Regarding the money supply, the governor explained that the total amount of currency issued for circulation is approximately 107 trillion Iraqi dinars, and that changing the currency will help determine the true amount of money circulating in the markets.
He emphasized the important role of the media in supporting economic and banking reforms and contributing to improving Iraq's image and enhancing international confidence in the country. He also noted that the current government is operating with a vision based on the private sector and its role in economic development.

In support of economic activity, the Governor revealed new lending initiatives that the Central Bank intends to launch to support important and vital projects, thereby stimulating investment and production and strengthening the role of the private sector in the national economy.

He emphasized that banking reform is an ongoing process aimed at building a more efficient and competitive banking sector and strengthening its relationship with the international financial system, thus serving financial and economic stability in Iraq.

 Baghdad - Media Office   link

Seeds of Wisdom RV and Economics Updates Monday Afternoon 9-7-26

CLARITY ACT HITS A CRITICAL WALL: U.S. DIGITAL-FINANCE LEADERSHIP NOW FACES A REGULATORY GAP

Congressional deadlock is putting the future of comprehensive U.S. crypto market-structure legislation in doubt just as federal regulators and other financial centers move ahead with their own digital-asset frameworks.

OVERVIEW

• The CLARITY Act remains stalled in the Senate, with a September 15 cloture vote now representing the next major test of whether the legislation can advance.

• The delay is being driven by unresolved disagreements over ethics provisions, anti-money-laundering safeguards, stablecoin rewards, community-bank deposits, law-enforcement authority and SEC-CFTC jurisdiction.

• The SEC and CFTC have already taken important steps under existing authority, but agency action cannot fully substitute for a durable federal market-structure law.

KEY DEVELOPMENTS

1. The CLARITY Act Has Reached a Critical Legislative Test

The latest reporting has intensified concerns that the CLARITY Act may not advance during the current congressional session. Former federal prosecutor Renato Mariotti has characterized the bill as effectively “dead” following discussions with lawmakers and congressional staff.

That is an assessment, not an official congressional determination. The formal process remains alive, with the Senate scheduled for a September 15 cloture vote.

Cloture is particularly important because the Senate generally requires 60 votes to overcome procedural obstacles and move legislation forward. A failure to reach that threshold could effectively end the bill's current path.

Reuters previously reported that the Senate's delay reflected unresolved disagreements and a shrinking legislative calendar ahead of the November elections.

2. Why Hasn't the CLARITY Act Passed?

The delay is not attributable to one issue.

Ethics and conflicts-of-interest provisions have become one of the most politically sensitive disputes surrounding the legislation.

Lawmakers have also disagreed over anti-money-laundering requirements and enforcement mechanisms, including how much authority should be available to law-enforcement agencies.

Another major issue involves stablecoin rewards. Banking groups have raised concerns that rewards paid on dollar-backed stablecoins could pull deposits away from banks that use those deposits to support lending. Crypto-industry participants have argued that restricting such rewards could reduce competition.

There are also disagreements involving community-bank protections, decentralized finance and the precise division of regulatory authority between the SEC and CFTC.

The result is not simply partisan disagreement. Different lawmakers and financial-sector interests have competing concerns about how the market should be regulated. Reuters reported that both Democrats and some Republicans have raised objections to different provisions of the bill.

3. Could the SEC and CFTC Fill the Gap If Congress Fails to Act?

Partially — but not completely.

The SEC and CFTC have already demonstrated that they can provide considerably more clarity using their existing authority.

On March 17, 2026, the two agencies issued a joint interpretation establishing categories including digital commodities, digital collectibles, digital tools, stablecoins and digital securities. The interpretation also addressed how a non-security crypto asset can become subject to — and potentially cease being subject to — an investment contract.

The agencies have therefore already created a more defined regulatory foundation without waiting for Congress.

The CFTC is also continuing work on emerging financial technology through its Innovation Advisory Committee, which is examining the intersection of technology, law, policy and finance.

But there is an important limitation.

An agency interpretation is not the same thing as an act of Congress.

The SEC's own chairman, Paul Atkins, made this unusually clear in August. He said legislation remains indispensable for establishing durable rules that cannot simply be changed by a future regulator.

That distinction is critical for investors and financial institutions.

Regulators can interpret existing statutes, issue rules within their authority, bring enforcement actions and establish regulatory frameworks. Congress can establish or change the underlying statutory authority itself.

Without legislation, questions surrounding jurisdiction, market structure, registration, custody, trading platforms, decentralized finance and the precise boundaries between securities and commodities can remain vulnerable to future rule changes, litigation or changes in agency leadership.

4. What Happens If the CLARITY Act Does Not Pass?

A failed CLARITY Act would not mean that U.S. crypto regulation suddenly disappears.

The SEC and CFTC would continue operating under their existing statutory authorities. The March 2026 joint interpretation would remain an important piece of the regulatory landscape, and both agencies could continue developing rules and guidance within the authority Congress has already provided.

The problem would be durability and completeness.

The United States could continue building digital-asset regulation through a combination of agency rules, interpretations, enforcement policies, court decisions and existing statutes rather than through one comprehensive market-structure framework.

That creates a more fragmented system.

It could also leave some companies uncertain about which regulator has primary authority over particular activities and leave important questions dependent on future agency decisions or litigation.

In other words, the United States could continue moving forward — but without the statutory foundation that CLARITY was designed to provide.

5. Why This Matters Beyond Cryptocurrency

The CLARITY debate is ultimately larger than Bitcoin or individual digital tokens.

Financial markets are increasingly moving toward tokenized assets, blockchain-based settlement, digital securities, stablecoins and programmable financial infrastructure.

The regulatory question therefore becomes:

Who will establish the rules for the next generation of financial markets?

The United States is not operating in isolation. Other major financial centers are also developing regulatory frameworks for digital assets.

The longer comprehensive U.S. legislation remains unresolved, the greater the possibility that companies will structure portions of their digital-finance operations around jurisdictions where regulatory requirements are more clearly established.

That does not mean the United States automatically loses financial leadership.

But it does mean that regulatory uncertainty becomes a competitive factor.

WHY IT MATTERS

Economy: Digital assets are becoming increasingly connected to capital formation, payments, financial services and investment infrastructure.

Markets: Investors and institutions need predictable rules governing custody, trading platforms, token classification and market oversight.

Policy: The central unresolved issue is whether existing agency authority is sufficient or whether Congress needs to establish a more comprehensive statutory framework.

Global System: The regulatory framework established today could influence where future digital financial infrastructure, capital and financial technology businesses are located.

WHY IT MATTERS TO FOREIGN CURRENCY HOLDERS

For foreign-currency holders, the significance is indirect but important.

A larger digital-asset and stablecoin ecosystem could eventually affect cross-border payments, settlement systems, liquidity and demand for different forms of digital money.

Dollar-backed stablecoins are particularly important because they can extend the reach of the U.S. dollar into blockchain-based financial networks.

If U.S. regulators can maintain clarity even without CLARITY, dollar-based digital finance can continue developing.

If regulatory uncertainty persists for years, however, some digital-finance activity could increasingly develop outside the United States.

That could influence the future architecture of cross-border payments, digital currencies and global capital flows — all of which ultimately affect the environment in which foreign currencies are valued and exchanged.

IMPLICATIONS FOR THE GLOBAL RESET

• Pillar 1: Technology — The Battle Over Digital Financial Infrastructure

The CLARITY debate is part of a much larger transition from traditional financial infrastructure toward blockchain, tokenization, stablecoins and programmable settlement.

The country or financial center that establishes durable rules for that infrastructure could attract a significant share of the next generation of financial innovation.

• Pillar 2: Assets — The Legal Foundation for Tokenized Finance

As more financial assets become digitally represented, the distinction between securities, commodities, stablecoins and other digital assets becomes increasingly important.

Without comprehensive legislation, the United States can continue developing this market through regulators, but the legal foundation remains less durable than a framework established directly through federal statute.

CONCLUSION

The CLARITY Act has reached a pivotal moment.

The September 15 Senate cloture vote will provide a much clearer indication of whether Congress can move the legislation forward, but failure would not stop the digital-asset market from developing.

The SEC and CFTC have already shown that they can provide meaningful regulatory clarity under existing law. Their March 2026 joint interpretation is evidence that the agencies can move even while Congress remains divided.

But there is a fundamental difference between regulatory action and statutory law.

Agencies can build a bridge across part of the regulatory gap. Congress is still needed to build the permanent legal road.

That is why the CLARITY debate matters beyond cryptocurrency: the United States is deciding how much of the next generation of financial infrastructure will be governed by durable legislation — and how much will continue to depend on regulators, courts and changing rules.

The digital financial system is moving forward. The question is whether U.S. law will move forward with it.

Seeds of Wisdom TeamNewshounds News™ Exclusive

SOURCES

• Reuters — Crypto bill faces long odds after Senate punts vote to September

• U.S. Securities and Exchange Commission — SEC Clarifies the Application of Federal Securities Laws to Crypto Assets
  

~~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's News Telegram Room Link

RV Facts with Proof Links Link

RV Updates Proof links - Facts Link

Start Here room with Most Asked Questions Link

Follow the Gold/Silver Rate COMEX

Follow Fast Facts

Seeds of Wisdom Team™ Website

Thank you Dinar Recaps

Sunday Dinar Update: Things Are Moving FAST!

Sunday Dinar Update: Things Are Moving FAST!

The Dinar Den:  9-6-2026

Iraq’s financial landscape is undergoing a pivotal transition as state institutions work toward comprehensive economic modernization. Market analysts, economists, and international observers have increasingly turned their focus to the Iraqi dinar (IQD) and the broader policy adjustments managed by the Central Bank of Iraq (CBI).

Understanding these developments requires evaluating a combination of legal frameworks, currency circulation metrics, banking sector overhauls, and significant political milestones.

While public discussions often center on potential monetary redenomination or revaluation, a realistic perspective depends on examining the concrete structural steps currently being taken in Baghdad.

A foundational distinction in Iraq’s ongoing monetary discussions lies in the division of authority between regulatory bodies and legislative institutions. Recent statements from the Governor of the Central Bank of Iraq have provided crucial legal clarity regarding currency modification.

While the CBI holds the administrative authority to alter daily management policies and routine currency denominations, the structural policy often referred to as “deleting the three zeros”—or full redenomination—is not solely an executive decision.

Executing a structural redenomination requires formal legislation enacted by the Iraqi Parliament. This legal requirement underscores that any significant change to the nation’s currency unit involves a deliberate, thorough legislative procedure rather than a sudden administrative decision.

Analyzing Iraq’s official monetary metrics reveals compelling dynamics regarding cash distribution and public liquidity. Current estimates indicate that the Central Bank of Iraq has issued approximately 107 trillion dinars.

 However, only roughly 40 trillion dinars actively circulate within the public economy. This noticeable gap demonstrates that a substantial portion of the official currency supply remains hoarded, held in private reserves, or stored outside formal banking channels.

For economic policy to operate effectively, federal institutions must incentivize these inactive funds back into the formal financial framework, ensuring healthier capital movement and improved monetary policy transmission.

To address systemic inefficiency and build global confidence, the Iraqi government and monetary authorities are executing aggressive reforms across the domestic banking sector. A primary objective of this regulatory effort is tightening oversight on financial transfers and shuttering unauthorized currency exchange companies that operated outside national guidelines.

By enforcing stricter regulatory standards, Iraq is actively improving its international financial compliance. Central to this strategy is enhanced cooperation with global financial bodies, most notably the United States Department of the Treasury.

These structural adjustments serve as essential preparatory measures designed to eradicate illicit financial flows, build institutional credibility, and stabilize the domestic banking system before any broad currency adjustments can succeed.

Alongside regulatory enforcement, parliamentary discussions regarding the introduction of lower denomination banknotes reflect long-term economic planning. Introducing smaller banknote values into circulation typically aims to streamline everyday transactions, reduce reliance on bulk physical cash, and support an overall increase in domestic purchasing power. Rather than serving as an immediate overnight transformation, discussions surrounding lower denominations signal a proactive effort to prepare the public and financial institutions for a modern, efficient monetary environment.

Geopolitical developments also play a significant role in shaping Iraq’s economic outlook. Observers have closely tracked key national milestones, including political discussions surrounding September 30th, 2024, regarding the scheduled transition of foreign military arrangements and Iraq’s continued trajectory toward full national sovereignty.

A stable, fully self-governed political environment provides the baseline predictability required for large-scale economic initiatives. As national security and diplomatic framework stabilize, the government gains greater capacity to prioritize long-term fiscal strategies, international investment incentives, and domestic monetary policies.

Evaluating Iraq’s financial landscape requires grounded optimism balanced with practical policy realities. Industry observers and long-term market followers, including individuals who have studied the dinar for over fifteen years, recognize that structural reform is an incremental process.

While tangible progress is visible through improved banking governance, international cooperation, and legislative debate, speculative timelines and guaranteed exchange rates remain inappropriate measures for real economic development. The true indicator of progress rests in the systematic, verifiable modernization of Iraq’s financial institutions.

https://www.youtube.com/watch?v=EkxtItekvbQ

Iraq Economic News and Points To Ponder Late Sunday Evening 9-6-26

Removing Zeros From The Dinar: Parliamentary Finance Committee Sets Conditions For Proceeding With This Matter.

Today 12:19 The Information/Baghdad...  Member of the Parliamentary Finance Committee, Amer Rahim, confirmed on Saturday that voting on a bill to remove zeros from the local currency requires extensive discussions and the enforcement of a package of laws within the Parliament. He indicated that raising this issue at the present time is premature.

Rahim told Al-Maalouma, “The step of removing zeros from the currency cannot be decided hastily; rather, it requires a series of lengthy and in-depth discussions within Parliament.” He explained that "the process is closely linked to the economic reality and requires amending and enacting several supporting financial laws and regulations to ensure market stability."

He added, "Raising the discussion about this topic at this stage is premature, given the financial challenges that require first providing a comprehensive economic and banking environment before embarking on any structural change to the currency."

 He pointed out that "any measure of this kind without careful and prior study may negatively impact the purchasing power of citizens."

Rahim stressed "the need to focus currently on supporting the stability of the national currency and implementing banking reforms, while leaving the issue of removing zeros until economic conditions are more favorable and full legislative support is available within the House of Representatives." End/25z

https://almaalomah-me.translate.goog/news/143235/economy/حذف-الأصفار-من-الدينار-المالية-النيابية-تحدد-شروط-المضي-بهذا?_x_tr_sl=ar&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=sc

The Central Bank Reassures Depositors: No Bank Failures... And Liquidity Exceeds 60%

Baghdad Today - Baghdad   The Central Bank of Iraq reassured depositors on Saturday (September 5, 2026) about the safety of the banking sector, stressing that “imposing supervisory or guardianship committees on a licensed bank does not mean its bankruptcy, but rather comes within the framework of precautionary and legal supervisory measures aimed at protecting the rights of depositors and ensuring the stability of banking operations.”

The bank stated in a statement received by "Baghdad Today" that "all licensed banks participate in the Deposit Guarantee Company, which is responsible for compensating depositors in the event that the bank fails to meet its obligations, in accordance with applicable laws."

He added that "depositors' funds are protected under laws, regulations and instructions," stressing the need to follow up on bank procedures, particularly those related to ensuring depositors' access to their funds without delay.

He pointed out that "the Iraqi banking system has sufficient liquidity to enable it to manage its operations efficiently in the face of potential pressures," indicating that "the ratio of liquid assets to short-term liabilities exceeds 60%."

It also emphasized the application of the best international banking standards to the banking sector, ensuring its safety and compliance and providing competitive traditional and digital financial services, without compromising the rights of depositors.

https://baghdadtoday.news/305588-60.html

The Central Bank Reassures Depositors And Confirms The Protection Of Their Funds

The Central Bank of Iraq confirmed on Saturday that all depositors' funds in licensed banks are protected, while noting that the Iraqi banking system enjoys sufficient liquidity to manage its operations efficiently.

The bank stated in a statement that "the Central Bank of Iraq's application of its powers to impose supervisory or trusteeship committees on one of the banks licensed by it directly (does not mean the bank's bankruptcy) as has been circulated in some media outlets, but rather it is a legal precautionary supervisory measure to ensure the safety of the bank and the stability of its operations in general and to protect the rights of depositors in particular."

He added that "the Central Bank of Iraq applies the best international banking standards to the banking sector to ensure its safety, compliance and provision of the best financial services without compromising the rights of its depositors."

He explained that "all licensed banks are participating in the Deposit Guarantee Company, which is one of the pillars of banking stability, through its function of compensating depositors in the event that the bank fails to meet this in accordance with the applicable laws."

The bank added that “depositors’ funds are protected under applicable laws, regulations and instructions, and the Central Bank of Iraq pays great attention to monitoring the procedures of banks, especially those related to ensuring that depositors can access their funds at any time they wish without delay.”

The bank confirmed that "the Iraqi banking system has sufficient liquidity to manage its operations efficiently and under any potential pressures; the ratio of liquid assets to short-term liabilities is more than (60%)."   https://burathanews.com/arabic/24xUeJ_t

Baghdad Airport Warns Of Currency Exchange Delays After CBI Closures

Shafaq News- Baghdad   Baghdad International Airport on Saturday warned travelers of possible delays in currency exchange services after the Central Bank of Iraq (CBI) closed several exchange companies operating at the airport.

The airport urged passengers who need to exchange currency before traveling to arrive well ahead of their scheduled flights, saying the closures could create congestion and longer waiting times.

It did not specify how many exchange companies were closed or the reasons behind the CBI’s decision

.https://www.shafaq.com/en/society/Baghdad-Airport-warns-of-currency-exchange-delays-after-CBI-closures

Baghdad Airport Announces The Closure Of Exchange Companies By Order Of The Central Bank

2026-09-05 Shafaq News - Baghdad   On Saturday, the Baghdad International Airport administration announced that the Central Bank of Iraq had closed a number of exchange companies operating at the airport, urging travelers to arrive early due to the expected surge in currency exchange activity.

The administration stated in a statement received by Shafaq News Agency, “To our esteemed travelers, whose travel requires the completion of currency exchange procedures, we urge you to arrive at the airport early and well before the flight time, due to the closure of a number of exchange companies operating at the airport by the Central Bank of Iraq, which may lead to congestion and delays in the currency exchange process.”

The Baghdad Airport administration urged the concerned travelers to arrive well before the flight time, in order to avoid any delays that might affect travel procedures. https://www.shafaq.com/ar/اقتصـاد/مطار-بغداد-يعلن-عن-غلق-شركات-صرافة-ب-مر-البنك-المركزي

Date Output To Hit 150K Tonnes In Iraq’s Diyala

2026-09-06 /  Shafaq News- Diyala   Diyala's date production is expected to reach about 150,000 tonnes during the 2026 season, up roughly 20,000 tonnes from last year, the province's Agriculture Directorate said on Sunday.  

Mohammed al-Mandlawi, a spokesman for the Directorate, told Shafaq News that the current season has seen further expansion in the cultivation of rare and commercially important date varieties, particularly Barhi and Medjool. New palm orchards have also been established, with more than 60,000 palm offshoots planted so far.  

"Diyala's palm sector has expanded significantly in recent years," he added, noting that the number of palm trees in the province has reached more than 2 million. 

On Friday, the Ministry of Agriculture announced that Iraq has achieved self-sufficiency in wheat and dates, detailing that the number of date palms in the country has risen from about 12 million after 2003 to 22 million in 2026.  

Read more: Iraq’s date harvest thrives in extreme heat, but water crisis bites

https://www.shafaq.com/en/society/Date-output-to-hit-150K-tonnes-in-Iraq-s-Diyala

No More International Sanctions On Iraqi Banking Sector.

Iraqi Media Network@iraqmedianet   Translated from Arabic

Central Bank Governor Nizar Nasser Hussein:

◾ No sanctions from international entities on the banking sector after today, and we continue the reform process in coordination with Oliver Wyman company

◾We invest in the United States as the safe haven and the only country that granted Iraq immunity, and investment risks in other countries are significant

◾ The issued currency base amounts to 107 trillion dinars, and what circulates in the markets approaches 40 trillion dinars

◾ Currency change is under the Central Bank's authority, and deleting zeros requires legislation in the House of Representatives

◾ The current government is managed with a private sector mindset, and the media's role is important in improving Iraq's international image

◾We have new lending initiatives to support important and vital projects

https://x.com/iraqmedianet/status/2096576576024359410

CBI Governor: Currency Changes Within CBI Scope

The new headquarters of the Central bank of Iraq (CBI). Photo: Zaha Hadid Architects

Baghdad (IraqiNews.com) — The Governor of the Central Bank of Iraq (CBI), Nizar Nasser Hussein, affirmed on Sunday, September 6, 2026, that redesigning or issuing new currency denominations falls strictly under the legal jurisdiction of the central bank, whereas re-denominating the currency by deleting zeros requires formal legislation passed by the Council of Representatives.

Speaking during an economic dialogue with financial specialists and reported by the Iraqi News Agency (INA), Hussein outlined ongoing banking sector restructuring programs overseen in technical partnership with international consultancy Oliver Wyman, while providing comprehensive updates on monetary circulation, sovereign foreign investments, and international banking compliance.

Key Monetary and Institutional Positions

• Currency Re-denomination vs. Currency Design: Hussein clarified the legal division of monetary authority: updating currency notes, aesthetics, and security specifications remains an autonomous CBI prerogative, but deleting zeros from the Iraqi Dinar necessitates primary statutory approval by parliament.
  

• Monetary Mass Breakdown: The total sovereign issued monetary mass stands at 107 trillion IQD, while active liquidity circulating within domestic market transactions approaches 40 trillion IQD, reflecting persistent physical cash-hoarding outside formal bank balance sheets.
  

• Banking Sector Reforms & Sanctions Status: Ongoing structural audits and institutional reforms are advancing in direct coordination with Oliver Wyman.Hussein stated that international restrictions on Iraqi financial institutions are being systematically addressed, affirming that international confidence in the CBI remains robust.
  

• Non-Dollar Foreign Exchange Clearances: Seven Iraqi commercial banks previously cleared to conduct trade transactions in currencies other than the U.S. Dollar (such as the UAE Dirham, Euro, and Chinese Yuan) are slated to commence operational activities in the near term.
  

• Depositor Guarantees (Al-Taif Islamic Bank): Addressing concerns surrounding Al-Taif Bank, Hussein reassured markets that the majority of depositor funds remain fully secured, confirming that the Central Bank will intervene directly to cover liabilities should any capital shortfall emerge.
  

• Sovereign Reserves in the United States: Iraq continues to anchor its primary foreign sovereign reserves and investments within the United States, citing U.S. sovereign immunity protections and high asset safety compared to risk profiles present in alternative foreign jurisdictions.
  

• Private-Sector Governance Model: Emphasized that the current administration operates under private-sector-aligned economic management, alongside plans to launch specialized credit initiatives directed toward strategic infrastructure and productive enterprises.

Central Bank Policy and Liquidity Overview

Financial Parameter / Policy Area‍ ‍Status / Metric‍ ‍Regulatory & Economic Context

Total Currency Issued (M0) 107 Trillion IQD Total domestic monetary liability base

Currency Redesign & Specs 8 Full CBI Legal Authority Handled internally via CBI executive board

Deleting Zeros (Re-denomination) Requires Parliamentary Statute Needs legislative enactment by Council of Representatives

Restructuring Advisor Oliver Wyman Comprehensive audit & compliance integration

Alternative-Currency Lenders 7 Authorized Private Banks Imminent launch of non-USD cross-border clearing

Depositor Protections Guaranteed Coverage (Al-Taif) CBI backstop commitment against liquidity gaps

Reserve Custody Venue United States (Federal Reserve) Leverages sovereign immunity and low asset risk

Governor Hussein’s statements draw a clear regulatory boundary between cosmetic or security upgrades to the national currency and structural re-denomination. By emphasizing that eliminating zeros requires legislative consent, the CBI signals that any future re-denomination strategy must align with broader fiscal reforms approved by lawmakers.

Furthermore, committing state backstops for depositor funds at private institutions like Al-Taif, combined with international compliance audits via Oliver Wyman, serves to stabilize depositor confidence at a time when domestic banking liquidity faces close scrutiny.

https://www.iraqinews.com/iraq/central-bank-iraq-currency-redesign-removing-zeros-parliament-nizar-hussein-2026/#google_vignette

Seeds of Wisdom RV and Economics Updates Monday Morning 9-7-26

Good Morning Dinar Recaps,

CHINA'S $3.44 TRILLION RESERVE WALL RISES: YUAN STRENGTH SIGNALS A SHIFT IN GLOBAL CURRENCY BALANCES

China's enormous foreign-exchange reserve position is rising as the yuan strengthens and the dollar weakens, highlighting how exchange rates, reserve management and competing currencies are reshaping the global financial landscape.

OVERVIEW

• China's foreign-exchange reserves rose to $3.438 trillion in August, up from $3.419 trillion in July and above the $3.425 trillion Reuters poll forecast.

• The increase occurred as the yuan gained 0.49% against the dollar while the U.S. dollar weakened 0.4% against a basket of major currencies.

• The development does not mean China is abandoning the dollar, but it highlights the growing importance of currency valuation, reserve diversification and the yuan in the evolving global monetary system.

KEY DEVELOPMENTS

1. China's Reserve Wall Climbs to $3.438 Trillion

China's foreign-exchange reserves—the largest reserve holdings of any country—increased by roughly $19 billion in August.

The total reached $3.438 trillion, compared with $3.419 trillion in July and above the $3.425 trillion expected by economists surveyed by Reuters.

The increase gives Beijing an enormous pool of external financial assets that can help provide stability during periods of currency, trade or financial-market stress.

2. A Weaker Dollar Helped Lift the Dollar Value of China's Reserves

The reserve increase occurred alongside significant currency movements.

The yuan appreciated 0.49% against the dollar during August, while the dollar declined 0.4% against a basket of major currencies.

That distinction matters.

A country's reserve total is reported in U.S. dollars, so changes in exchange rates can alter the dollar value of assets even when a central bank has not dramatically changed the underlying composition of its reserves.

The IMF has emphasized that exchange-rate valuation effects can account for a significant portion of changes in reserve-currency shares.

3. The Yuan Is Gaining Ground—But the Dollar Still Dominates

The broader reserve picture is more complicated than a simple "dollar versus yuan" story.

The IMF reported that the U.S. dollar represented 57.13% of global official foreign-exchange reserves in the first quarter of 2026, compared with 56.42% in the previous quarter.

The renminbi's share rose modestly from 1.95% to 1.99%.

That means the yuan remains a relatively small component of official global reserves compared with the dollar.

But even a small increase matters when it occurs alongside China's enormous reserve base, expanding international trade relationships and efforts to increase the yuan's use in cross-border transactions.

4. Reserve Management Is Becoming More Important in a Fragmenting Financial System

Central banks are not simply holding reserves passively.

They manage portfolios containing currencies, government securities and other reserve assets, and the value of those assets can change because of exchange rates, interest rates and market prices.

The IMF notes that changes in reserve composition can result from both active buying and selling and valuation effects.

That makes China's $3.44 trillion reserve position strategically important.

It represents not only financial protection for Beijing, but also a substantial pool of assets connected to the global currency and bond markets.

5. The Bigger Story Is the Evolution of the Global Reserve System

China's reserve position should not be interpreted as proof that the yuan is replacing the dollar.

The evidence does not support that conclusion.

Instead, the more significant development is that the global monetary system is becoming more complex and increasingly influenced by multiple currencies, reserve strategies and competing financial centers.

The dollar remains dominant, but the yuan is part of a broader trend in which countries are paying greater attention to currency diversification, reserve security and control over cross-border financial flows.

WHY IT MATTERS

Economy: China's enormous reserve position provides a substantial external financial buffer as the country manages trade, currency and economic pressures.

Markets: Changes in the dollar and yuan can affect the reported value of reserve assets and influence international capital flows.

Policy: Central banks increasingly have to manage reserves while considering exchange rates, interest rates, geopolitical risk and financial stability simultaneously.

Global System: The key structural question is not whether one currency suddenly replaces another, but whether the world is moving toward a more diversified and fragmented reserve system.

WHY IT MATTERS TO FOREIGN CURRENCY HOLDERS

For foreign currency holders, this development reinforces the importance of watching central-bank reserve policies and exchange-rate trends.

• A stronger yuan can improve the dollar value of yuan-denominated assets, while a weaker dollar can increase the reported U.S.-dollar value of foreign reserve holdings.

• China's enormous reserve position also demonstrates why currency strength cannot be evaluated solely by the exchange rate.

• Reserves, trade balances, capital flows, interest-rate differentials and central-bank policy all influence the long-term position of a currency.

For holders of foreign currencies, the important question is increasingly how governments and central banks are positioning their reserves—not simply what today's exchange rate happens to be.

IMPLICATIONS FOR THE GLOBAL RESET

• Pillar 1: Assets

China's $3.44 trillion reserve position demonstrates the enormous scale of sovereign financial assets held outside the United States. How these assets are managed can influence global bonds, currencies and capital flows.

• Pillar 2: Trade

China's role as a major global trading power gives the yuan an expanding platform for international use. If more cross-border trade is settled in currencies other than the dollar, the architecture of global payments and reserves could gradually become more diversified.

CONCLUSION

China's latest reserve data does not signal the end of dollar dominance.

It does, however, provide another piece of evidence that currency management and reserve strategy are becoming increasingly important to the structure of global finance.

The yuan's August appreciation occurred alongside a weaker dollar, while China's reserve holdings climbed above $3.4 trillion. Meanwhile, the IMF's data shows that the dollar remains overwhelmingly dominant in official reserves, with the yuan still occupying a much smaller share.

The real story, therefore, is not "China is replacing the dollar."

It is that the global monetary system is gradually becoming more complex, more actively managed and potentially more diversified.

The next phase of global finance may be defined not by one currency replacing another, but by how major nations manage the currencies and assets they hold in an increasingly fragmented financial system.

Seeds of Wisdom Team
Newshounds News™ Exclusive

SOURCES

• Reuters — China's forex reserves rise more than expected in August

• IMF Data — World Official Foreign Currency Reserves Largely Unchanged in the First Quarter of 2026

~~~~~~~~~~

🌱 A Message to Our Currency Holders🌱

If you’ve been holding foreign currency for many years, you were not foolish.
You were not wrong to believe the global financial system would change.

What failed was not your patience — it was the information you were given.

For years, dates, rumors, and personalities replaced facts, structure, and proof. “This week” predictions created cycles of hope and disappointment that were never based on how currencies actually change.

That is not your failure.

Our mission here is different:   • No dates • No rates • No hype • No gurus

Instead, we focus on:
• Verifiable developments • Institutional evidence
• Global financial structure • Where countries actually sit in the process

Currency value changes only come after sovereignty, trade, banking, settlement systems, and fiscal coordination are in place. History and institutions confirm this sequence.

You will see silence. You will see denials. That is not delay — that is discipline.

Protect your identity. Organize your documents.    Verify everything.
Never hand your discernment to anyone who cannot show proof.

You deserve truth — not timelines.

Seeds of Wisdom Team
Newshounds News

~~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's News Telegram Room Link

RV Facts with Proof Links Link

RV Updates Proof links - Facts Link

Start Here room with Most Asked Questions Link

Follow the Gold/Silver Rate COMEX

Follow Fast Facts

Seeds of Wisdom Team™Website

Thank you Dinar Recaps

2,500 Years of Monetary History Reveal the Same Pattern. Is It Happening Again? | Bob Klein

2,500 Years of Monetary History Reveal the Same Pattern. Is It Happening Again? | Bob Klein

Miles Franklin Media:  9-6-2026

Michelle Makori, President & Editor-in-Chief of Miles Franklin Media, interviews Bob Klein, Founder and Chief Investment Officer of Medici Capital.

 Klein, who identified the dot-com and housing bubbles before they burst, explains why the U.S. stock market is once again in bubble territory and what could ultimately bring the boom to an end.

He warns that major technology companies may struggle to generate adequate returns on the trillions of dollars being committed to AI, but believes the bubble could continue until the Federal Reserve tightens liquidity more forcefully.

The conversation also examines rising sovereign debt, mounting interest costs and the risk of losing control of the U.S. Treasury market.

 Klein argues that the dollar-based monetary system is steadily losing credibility as central banks & governments rebuild their gold reserves.

He believes this monetary shift is only in the “fourth inning” and says $10,000 gold by 2030 is a realistic possibility, with the potential for gold to move considerably higher.

Klein also reveals why gold mining shares represent his highest-conviction investment theme. Drawing on more than 40 years of financial-market experience and his extensive collection of historical coins & paper currencies, he explains how monetary debasement has repeatedly produced financial booms, inflation and destructive busts throughout history.

In this episode of The Real Story:

• Why $10,000 gold by 2030 is realistic
  

• The AI bubble & its potential trigger
  

• Stocks falling by a third or more
  

• Sovereign debt and rising Treasury yields
  

• Central banks rebuilding their gold reserves

00:00 Introduction

02:12 Macro Boom Outlook

03:27 How Long Can It Run

04:46 Bubble Valuations & AI Hype

08:27 AI Capex Returns Risk

09:44 What Pricks the Bubble

11:34 Fed Warsh & Rate Path

16:28 Downturn Shape Stagflation

19:24 China Catalyst & Rotation

22:27 Sovereign Debt Warning

24:26 Why Not Shorting Now

25:33 Gold & Monetary Reset

30:38 Gold Miners Value Case

37:14 Miners Tailwinds & Safety

39:15 Gold Versus Miners

40:37 Producers Not Explorers

41:02 Miners New Discipline

43:04 Gold Price Target

44:59 Crash Or Grind Down

46:46 Rotation Into Gold

48:03 Michael Lewis Shoutout

50:57 Coin History Lesson

53:39 Rome Debasement Parallels

56:38 China Paper Money Fail

01:01:23 Gold System Takeaways

01:06:15Gold As Real Money

01:12:14 Highest Conviction Now

https://www.youtube.com/watch?v=UIMDuYAJA9U

Iraq Economic News and Points To Ponder Sunday Afternoon 9-6-26

Al-Taif Bank Pledges To Return Depositors’ Funds

2026-09-06 Shafaq News- Baghdad   Al-Taif Islamic Bank said it would soon return depositors’ funds after a committee appointed by the Central Bank of Iraq (CBI) formally took control of the bank’s management.

The bank said on Sunday the committee began its work and is preparing a plan to set procedures for customers and settle their financial claims.

Earlier today, depositors protested outside Al-Taif Islamic Bank in Baghdad over frozen banking services and the suspension of withdrawals and deposits. The CBI later said the measure did not mean the bank was bankrupt, explaining that it was a precautionary regulatory action intended to protect depositors’ rights.

https://www.shafaq.com/en/Economy/Al-Taif-Bank-pledges-to-return-depositors-funds

CBI: Most Al-Taif Deposits Guaranteed

2026-09-06 Shafaq News- Baghdad   Most depositors’ funds at Al-Taif Islamic Bank are guaranteed, and the Central Bank of Iraq (CBI) will intervene if the lender faces a shortfall, Governor Nizar Nasser Hussein said on Sunday.

Speaking with a group of economic specialists, Hussein said the CBI has reserves, financial tools and contingency plans to manage crises, adding that it has strengthened internal oversight and taken preventive measures toward financial and banking institutions.

The CBI is continuing its banking sector reform program in coordination with consulting firm Oliver Wyman. Hussein said the next phase would bring further changes aimed at strengthening the sector and integrating it more closely with the international financial system.

He added that international confidence in the CBI was “very high.”

On Iraq’s money supply, Hussein said the CBI has issued about 107 trillion dinars (about $81.7 billion) in currency, while roughly 40 trillion dinars (about $30.5 billion) is circulating in the market.

He also said changing the currency falls within the CBI’s authority, while removing zeros would require legislation from parliament.

The CBI plans to launch new lending initiatives for key projects to stimulate investment and production and expand the private sector’s role in the Iraqi economy, Hussein said.

He described banking reform as an ongoing process aimed at building a more efficient and competitive sector, adding that the government’s economic approach places greater emphasis on the private sector’s role in development.

Al-Taif Islamic Bank was placed under CBI guardianship on Sept. 2 over violations that the Central Bank said had affected its financial position and depositors’ funds.

Read more: Banking reform: Between necessary change and crippling conditions

https://www.shafaq.com/en/Economy/CBI-Most-Al-Taif-deposits-guaranteed

ISX Trading Value Plunges 81.6% In August

2026-09-06 Shafaq News- Baghdad   The Iraq Stock Exchange (ISX) recorded 22.03 billion Iraqi dinars in trading value during August (roughly $16.8M), down 81.6% from July.

According to market data, more than 50.93 billion shares were traded during the month, a 69.4% decline from July, across 18 trading sessions.

The ISX60 index closed the month at 1,006.76 points, down 3.3% from July’s 1,041.07 points, while the ISX15 index fell 2% to 1,243.40 points from 1,267.67.

Throughout the month, the exchange executed 19,174 sale and purchase contracts, down 21.3% month-on-month, with 82 of the 125 listed companies recording trading activity.

https://www.shafaq.com/en/Economy/ISX-trading-value-plunges-81-6-in-August

Amman Chamber Exports To Iraq Surpasses $585M

2026-09-06 Shafaq News- Baghdad/ Amman   Iraq imported 415 million Jordanian dinars ($585.2 million) worth of exports certified by the Amman Chamber of Commerce during the first eight months of 2026, ranking first among the chamber’s export destinations, the chamber data showed on Sunday.

Exports to Iraq were issued 1,912 certificates of origin, putting the country ahead of Switzerland at 102 million dinars ($143.8 million), the United Arab Emirates at 78 million dinars ($110 million), Saudi Arabia at 72 million dinars ($101.5 million) and Egypt at 54 million dinars ($76.1 million).

Overall, the value of exports covered by certificates of origin issued by the chamber reached 1.031 billion dinars ($1.45 billion) during the period, up 20.7% from 854 million dinars ($1.20 billion) in the same period last year.

By the end of August, the exports included foreign products worth 493 million dinars ($695.1 million), agricultural products worth 153 million dinars ($215.7 million), industrial products worth about 119 million dinars ($167.8 million) and Arab products worth 118 million dinars ($166.4 million), with other products accounting for the remainder.

Iraq accounted for about 40% of the chamber’s total exports in the first seven months of 2026, with exports to the country valued at 365 million dinars ($514.65 million).

https://www.shafaq.com/en/Economy/Amman-Chamber-exports-to-Iraq-surpasses-585M

Gold Prices Stabilize In Baghdad, Erbil

2026-09-06 Shafaq News- Baghdad/ Erbil   Gold prices remained near 960,000 IQD per mithqal in Baghdad and Erbil markets on Sunday, according to a Shafaq News survey.

Baghdad's Al-Nahr Street recorded a selling price of 970,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 966,000 IQD, the same as Saturday.

The selling price for 21-carat Iraqi gold stood at 940,000 IQD, with a buying price of 936,000 IQD.

In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 970,000 and 980,000 IQD, while Iraqi gold sold for between 940,000 and 950,000 IQD.

In Erbil, 22-carat gold was sold at 1,004,000 IQD per mithqal, 21-carat gold at 960,000 IQD, and 18-carat gold at 822,000 IQD. https://www.shafaq.com/en/Economy/Gold-prices-stabilize-in-Baghdad-Erbil-4-0

US Dollar Rises In Baghdad And Erbil

2026-09-06   Shafaq News- Baghdad/ Erbil   The US dollar opened Sunday’s trading higher in Iraq, hovering around 155,000 dinars per 100 dollars.

According to a Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 154,900 dinars per 100 dollars, up from 154,650 in Saturday’s session.

In the Iraqi capital, exchange shops sold the dollar at 155,500 dinars and bought it at 154,500 dinars, while in Erbil, selling prices stood at 154,800 dinars and buying prices at 154,750 dinars.

https://www.shafaq.com/en/Economy/US-dollar-rises-in-Baghdad-and-Erbil-0

2026-09-06 Shafaq News- Baghdad   US crude oil imports from Iraq resumed at 38,000 barrels per day (bpd) in the week ending Aug. 28, after no Iraqi shipments were recorded the previous week, preliminary Energy Information Administration (EIA) data showed.

Canada remained the largest supplier at 4.011 million bpd, followed by Venezuela with 598,000 bpd, Saudi Arabia with 379,000, Mexico with 210,000, Brazil with 137,000, Colombia with 111,000, Ecuador with 101,000, Nigeria with 71,000, and Libya with 1,000. https://www.shafaq.com/en/Economy/EIA-US-crude-imports-from-Iraq-resume-at-38-000-bpd

Hormuz Disruption Reroutes Thai Rice To Iraq

2026-09-05 Shafaq News- Bangkok    Thai rice shipments to Iraq are being rerouted overland through Jordan and Turkiye as disruption in the Strait of Hormuz alters trade flows, Thai Rice Exporters Association Deputy Secretary-General Waniwat Kittiranglarp said.

Kittiranglarp stated that the sharp drop in recorded Iraqi purchases largely reflected the route shift rather than weaker demand. Iraq was Thailand’s largest rice market in 2025, importing 1,001,306 metric tons, according to association data.

Earlier this year, Thai exporters said shipments to Iraq had stopped for about three months after Gulf shipping was disrupted, cutting more than 200,000 tons from Middle East sales.

Transit cargo through Jordan’s Aqaba port rose 155.1% year-on-year in the first half of 2026, driven largely by goods trucked onward to Iraq as Gulf shipping remained disrupted.

https://www.shafaq.com/en/Economy/Hormuz-disruption-reroutes-Thai-rice-to-Iraq

Seeds of Wisdom RV and Economics Updates Sunday Afternoon 9-6-26

Good Afternoon Dinar Recaps,

U.S. STRIKES THREE IRANIAN OIL TANKERS: WAR MOVES DEEPER INTO THE GLOBAL ENERGY-SUPPLY SYSTEM

The conflict is no longer only threatening oil supplies — military action is now directly targeting vessels carrying Iranian crude, raising the financial stakes for energy markets, shipping, currencies and global trade.

OVERVIEW

• U.S. forces struck three Iranian crude-oil carriers on Saturday after Iran launched ballistic missiles at two U.S. Navy ships, according to U.S. Central Command.

• The strikes demonstrate that the conflict is reaching directly into the physical transportation of energy, while U.S. pressure is simultaneously weakening Iran's ability to use the Strait of Hormuz as economic leverage.

• The financial risk is expanding beyond oil prices: shipping disruption → higher energy costs → inflation pressure → higher interest rates → greater debt and currency volatility.

KEY DEVELOPMENTS

1. U.S. Forces Strike Three Iranian Oil Carriers

U.S. Central Command confirmed that American forces struck three Iranian crude-oil tankers after Iran launched ballistic missiles at two U.S. Navy ships.

The development is significant because the targets were not simply military installations. Oil carriers are part of the physical infrastructure that connects energy production to the global economy.

Any expansion of attacks involving commercial or oil-related shipping increases the potential for disruption to energy flows and raises the risk premium embedded in global oil prices.

2. The Conflict Is Moving Directly Into Energy Transportation

The Strait of Hormuz has become one of the most important pressure points in the conflict.

Reuters reported that U.S. and Iranian forces exchanged fire around vessels near Iran, including the three Iranian oil carriers struck by the United States.

This means the energy risk is no longer limited to how much oil is being produced. The critical question is whether oil can be safely transported through the region.

That distinction is crucial for global markets because additional production cannot immediately solve a transportation bottleneck.

3. Iran's Hormuz Leverage Is Being Challenged

A new Reuters analysis published Sunday says the United States has significantly weakened Iran's ability to use the Strait of Hormuz as economic leverage through its naval blockade and intensified sanctions campaign.

Iran is simultaneously facing restricted oil exports, reduced access to foreign currency and growing economic pressure.

That creates an unusual situation: Iran retains the ability to threaten disruption, but its own capacity to sustain that leverage is being increasingly constrained.

4. Oil Risk Is Becoming a Global Inflation Risk

The consequences extend well beyond the Middle East.

Brent crude rose 7.6% last week, while U.S. crude gained nearly 10%. U.S. diesel prices also reached a record as shipping disruptions tightened fuel supplies.

The longer the conflict affects energy transportation, the greater the possibility that higher fuel costs will spread into transportation, manufacturing, food and consumer prices.

That creates a difficult environment for central banks already confronting inflation concerns.

5. Energy Disruption Can Become a Debt and Currency Problem

The financial chain reaction is increasingly important:

Oil disruption → higher energy prices → higher inflation → higher interest rates → higher bond yields → higher government borrowing costs.

For heavily indebted governments, this can create additional fiscal pressure at precisely the time when economies are already dealing with higher energy expenses.

For currencies, the impact can diverge sharply. Energy exporters may benefit from higher revenues, while energy-importing nations can face worsening trade balances and pressure on their currencies.

WHY IT MATTERS

Economy: Higher energy and transportation costs can reinforce inflation while reducing household and business purchasing power.

Markets: Oil-related geopolitical risk can increase volatility across equities, bonds, commodities and currencies.

Policy: Central banks could face renewed pressure to keep rates higher if energy prices generate another inflation wave.

Global System: The conflict demonstrates how quickly a regional military confrontation can affect global energy transportation and financial markets.

WHY IT MATTERS TO FOREIGN CURRENCY HOLDERS

Foreign currency holders should watch energy exposure and capital flows closely.

• Countries that export significant amounts of oil can see stronger external revenues when crude prices rise. By contrast, countries dependent on imported energy can face higher import bills, inflation and pressure on their currencies.

• The dollar can also benefit from periods of geopolitical stress if investors seek liquidity and U.S. assets, particularly if higher oil prices reinforce expectations for higher U.S. interest rates.

• The key point is that currency values can increasingly reflect geopolitical energy exposure, interest-rate expectations and international capital flows at the same time.

IMPLICATIONS FOR THE GLOBAL RESET

• Pillar 1: Energy

The global financial system depends on the uninterrupted movement of energy. When military conflict reaches oil carriers and strategic shipping routes, energy security becomes a financial-system issue.

• Pillar 2: Trade

The conflict highlights the vulnerability of global trade to disruptions at strategic maritime chokepoints. Shipping costs, insurance, energy prices and trade flows can all be affected when a major commercial route becomes a military flashpoint.

CONCLUSION

The significance of the three tanker strikes goes beyond the individual vessels.

• The war is moving deeper into the infrastructure that connects energy production with the global economy.

• At the same time, the United States is attempting to restrict Iran's ability to use the Strait of Hormuz as economic leverage, while Iran continues to warn that additional attacks could trigger a stronger response.

That creates a difficult environment for global markets: oil remains vulnerable, shipping remains exposed, inflation risks are elevated and governments are already carrying historically large debt burdens.

The financial impact of this conflict will ultimately depend not only on how much oil is produced, but on whether the world's energy and trade arteries remain open.

When war reaches the ships carrying the world's energy, the consequences can reach every market connected to that energy.

Seeds of Wisdom Team
Newshounds News™ Exclusive

SOURCES

• Reuters —US military strikes three Iranian crude oil carriers, Central Command says

• Reuters —Iran's Hormuz leverage wanes as US economic squeeze bites

~~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's News Telegram Room Link

RV Facts with Proof Links Link

RV Updates Proof links - Facts Link

Start Here room with Most Asked Questions Link

Follow the Gold/Silver Rate COMEX

Follow Fast Facts

Seeds of Wisdom Team™Website

Thank you Dinar Recaps