Iraqi Dinar Guru opinions 7-21-15
Iraqi Dinar Guru opinions 7-21-15
7-21-2015 Newshound Guru tlm724 Article quote: “Naim Khudair, director general of the Anti-Money Laundering Office at the Central Bank of Iraq, said the government had pledged to pass new legislation for anti-money laundering and terrorism financing by October 2015″ thats right from the CBI, by October! Article quote: “The new law will facilitate the entry of big companies into Iraq and increase their confidence in the country’s economic environment…” Central Bank Governor Ali Al Allaq said the new law would help reassure foreign investors.
7-21-2015 Newshound Guru Kaperoni If the CBI loan program works, it should help expedite employment and create some stability which hopefully will perpetuate the process which will begin to create inflationary pressure for the CBI… Like a snowball rolling downhill. But really, this all comes back to the same problem… Parliament needs to pass laws to create the environment…the CBI official made a very clear statement…That early 2017 they would release category 50, 100 and 200. The dinar exchange rate has to be appropriate for those valued notes…They did not mention anything lower…So we can make a very educated “guess” as to the rate at that time. I do not think there is anyway to tell when the dinar will start to appreciate unless you can see growth, investment in the market economy. Everything else is speculation as to timing… Which means IMO, that the dinar must appreciate between now and then (2017) to at least a penny or dime…And to be honest, that is pretty substantial.
7-21-2015 Newshound Guru Kaperoni [but Kap you stated / said within a few years we will see a 1 to $1 rate, so your saying not till 2017?] …again, if you believe what the CBI publishes as a timeframe, then yes. You all must understand the appreciation of the dinar is part of the process. Therefore, when you see the other pieces fall into place, you will know the dinar will rise. I think many economists in Iraq, including Dr Bakri have also said the experts think about “long term” meaning they want to do this right, and not create a situation where the dinar could or would collapses. The dinar clearly can appreciate fast if investors come in…And if it does, it will be great. But it will be directly tied to the economy so it cannot fail! The CBI will never just arbitrary create an exchange rate (RV) without sound principles to support it. Investment and exchange rate are directly related.
7-21-2015 Newshound/Intel Guru BGG [What chance do we have in seeing tariffs on August 1st?] worst case – the not-so-good side, they tread water for a little while, personally – I don’t see how that works, but there may be that slim possibility…they will either add value (buying power) to their currency (which has obviously been the plan – on some level) and fully implement the tariff protocols… or they will delay…their own economists have PLAINLY warned them about tariffs with no value – it would be hard on the average citizen.
7-20-2015 Newshound/Intel Guru BGG …there are NUMEROUS – REGULAR – DETAILED articles, reports and comments by very powerful figures in Iraq about Monetary policy and Monetary Reform – ALMOST EVERY DAY…either something is happening – or the Iraqi people are going to be one very unhappy bunch! What? How much? When? What will it look like? What about the exchange mechanism? Who knows? BUT – something is PLAINLY UP…
7-20-2015 Newshound Guru My Ladies THERE IS NO DOUBT IN MY MIND AT LEAST THAT THE DINAR WILL TRADE GLOBALLY. IN WHAT TIME IS THE ONLY QUESTION.
7-20-2015 Newshound Guru sczin11 Article qutoe: “Financial distress affect the investment budget for the ministries and cut off the livelihood of more than four million Iraqis” CONFIRMATION 2 SIDES OF THE BUDGET… INVESTMENT SIDE NOT FUNDED. WHAT WE SEE HERE, IS SPECIFIC REFERENCE TO THE INVESTMENT SIDE OF THE BUDGET, AND DIRECT REPORTING THAT THE CBI HAS NOT FUNDED IT…CLEARLY SOME IN COUNTRY SALARIES HAVE BEEN PAID, AND THAT WOULD BE IN DINARS… REMEMBER, THE DINAR IS THE DINAR…A CHANGE IN VALUE WOULD HAVE NO BEARING WITHIN THE COUNTRY…SHORT TERM IMMEDIATE LOANS WOULD CERTAINLY HELP WITH CASH FLOW, IN ORDER TO GET SOME OF THE PROJECTS CONTRACTED FOR, GOING….BUT, THEY CERTAINLY WOULD NOT SOLVE THE PROBLEM LONG TERM… IT WOULD SEEM, THEY ARE WAITING FOR A CHANGE IN VALUE OF THE EXCHANGE RATE, IN ORDER TO MAXIMIZE THE RETURN ON THE ALLOCATED FUNDS FOR THE INVESTMENT SIDE OF THE BUDGET… OTHERWISE, WHY NOT TAKE A BEATING, AND USE THE FUNDS SET ASIDE FOR THE BUDGET NOW?
7-20-2015 Newshound Guru Kaperoni [Are we still floating?] Well, I can assure you the CBI will not randomly assign a new rate…And the rate will be based on the activation of the market economy and growth of that economy. Can it go up fast? Sure it can…And some experts in and out of Iraq expect it to do so because it is..in their words..”grossly undervalued”. [when inflation hits how do you see them dealing with that issue at 1166 or pennies on the iqd?] the monetary tool for controlling inflation is raising the value of the currency. That is why the dinar is being held at 1166. I really cannot tell you how fast it would rise. It is really a direct result of the investment in Iraq.
7-20-2015 Newshound Guru Kaperoni [but you said— I would guess at least 2-4 years before the CBI would be in compliance for the blessing from the IMF to move to VIII (reference Guru Kaperoni’s post 7-19-15).] the faster the investment comes into Iraq, and capital flows through the CBI’s Capital Account, the more aggressively the CBI would have to manage the rate. [Where is all the influx of foreign currency coming from?] Iraq has signed well over 200 (maybe even higher) investment contracts with other countries for investment in many areas including agriculture, manufacturing, tourism, etc. It will come when the situation is appropriate…And the capital will flow like no other has ever seen before once it starts. And we should all hope for that because that “is” what will raise the value of the dinar.