Iraqi Dinar Guru opinions 3-20-16
Iraqi Dinar Guru opinions 3-20-16
3-20-2016 Newshound Guru Tlar Article: “Governor of the Central Bank of Iraq will receive substantial financial support soon” Iraq still needs loans even after they change the value of their currency and they need huge infusion of capital because fiscally, they are still draining whether they raise the value of their currency or not. The advantages to raising the value are many…1st is investment. With an international Article Viii currency companies are more apt to invest large sums in Iraq because they see an easy path to get their money out. Secondly, it will stop the auctions because there usefulness will have run its course due to Iraqi companies not needing to convert to USD before they pay. No more remittances needed. No more systemic theft through the auctions. Third they will be pulling in dollars and letting dinars out as long as the rate is attractive enough, meaning the spread between the program rate and street rate disappears. Auctions will no longer be a vehicle with which speculators make a short profit and devalue the dinar and the CBI is expecting a resurgence in people coming back to use the banks again. These and many other reasons by raising the rate and going to Article VIII, will help Iraq immensely…
3-20-2016 Newshound Guru wmawhite Here is some information that I believe tells you exactly where we are: Iraq: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding December 22, 2015: 12. The spread between the official and the parallel foreign exchange market rate receded to around 2 percentage points since August… 19. The government will gradually remove remaining exchange restrictions and multiple currency practice (MCP) with a view to eliminating exchange rate distortions. Such a move towards acceptance of the obligations under Article VIII of the IMF’s Articles of Agreement will send a positive signal to the investment community that Iraq is committed to maintain an exchange system that is free of restrictions and MCPs for current international transactions and thus facilitate creation of a favorable business climate. folks…if you wonder what remains to be done in order for Iraq to move into Article 8…there it is…dated December 22, 2015.
3-20-2016 Newshound Guru wmawhite There are numerous issues at play… the move into the international markets is totally separate from the reforms being pushed ay Abadi. The price of oil is secondary to the move into Article 8. Once Iraq can order that rice from Thialand and pay for it with an account with IQD in it then there will be no need for the auctions. When that happens…and we believe the IMF gave us a timeframe then it is best for Iraq to conduct business at a value that will not kill them financially…their true value.
3-19-2016 Intel/Newshound Guru Poppy3 [I am putting my money and hope on the statement by the IMF:..The director of the Middle East Department and Central Asia for the International Monetary Fund Masood Ahmed in a press statement…he stressed that Iraq will return to economic market during the first half of next year.] YES, THAT HAS BEEN MY THOUGHTS THAT THEY SHOULD NEED A RATE SOME TIME PRIOR TO THE JUNE PUTTING US IN A GOOD POSITION TO SEE THE VALUE CHANGE PRIOR TO THAT.
3-19-2016 Newshound Guru wmawhite I am putting my money and hope on the statement by the IMF:..The director of the Middle East Department and Central Asia for the International Monetary Fund Masood Ahmed in a press statement…he stressed that Iraq will return to economic market during the first half of next year…this statement was made at the end of October 2015…just prior to the Article 4 Consultation in Amman, Jordan that produced the Technical Letter of Agreement that is the most detailed document to date outlining Iraq’s move into article 8 and the world’s markets. I also believe that the reforms of the GOI are a separate issue…not directly related to what we are looking for.