Iraqi Dinar Guru opinions 4-30-18
Iraqi Dinar Guru opinions 4-30-18
4-30-2018 Newshound/Intel Guru Mnt Goat [There appears to be still $4.5 billion remaining with regards to Kuwait War Reparations. Does that remaining $4.5 billion have to be paid out before the reinstatement of the Dinar can occur?] Months ago Kuwait and Iraq signed an agreement to pay down this debt in propane gas. Only they need a pipeline and are now building it. The recent payment to Kuwait is part of the agreement. …the key to pay off of the war reparations is whether the IMF and Kuwait both agree to it. As long as both are satisfied then as far as the sanctions go it is done. …in December 2017 it was announced Iraq is now “fully” out of Chapter VII? Just weeks before this announcement they told us this gas deal with Kuwait.
4-30-2018 Newshound/Intel Guru Mnt Goat So they couldn’t have gotten out of Chapter VII sanctions without also having struck some deal with Kuwait and the IMF for repayment. You see it is not the actual repayment that is important, but rather it is the satisfying the IMF and Kuwait of assurances of repayment in the future much like a secured loan would do. With Abadi as prime minister (and probably will get a second term) they know the govt will not default on the agreement. So the IMF took them off the sanctions. This was the last item to complete to get out of sanctions and they told us this many times in articles. So this is done as it would have to be to get our of Chapter VII.
4-30-2018 Intel/Newshound Guru sandyf …The fundamental problem in all this is the interpretation of the term “revaluation”. Revaluation is a recognised term in respect of an upward change in the value of a currency on a fixed exchange rate. Currencies on a floating exchange appreciate rather than revalue. Revaluation can also be used as the overall outcome of a redenomination, in this case it is a revaluation of the monetary unit and not the currency itself. Under certain circumstances the term can be used when the price of something changes value. It is just financially impossible for the Iraqi dinar to move from the current rate to around $4 in a currency revaluation per se. If there is to be any significant return on the dinar it has to come from a different direction. …As far as Iraq is concerned, the redenomination could be the end of monetary reform, not the beginning…
4-29-2018 Newshound Guru Kaperoni Well here’s the deal… None of these numbers that are being reported are official so even though they may be in compliance or out of compliance there is nothing official from the CBI these are just third-party numbers being reported from media outlets. So now visiting two or three other media outlets I have found yet another set of reported spread numbers from today’s auction and these numbers are within compliance. These are reporting sale of the dollar at 1200 to $1. Since there is no way to confirm the legitimacy of these numbers all we can do is wait out the 3 month IMF requirement and see what happens.
4-29-2018 Newshound/Intel Guru Mnt Goat …I base my news about the FLOAT not on my opinion but on research and articles. So if you study the entire process of deleting the zeros and then eventually reinstating the dinar you can see that they are going to take the dinar off the de facto peg to the US dollar go instead re-peg it to an SDR basket of 5 currencies. How in hell are they going to do this if they leave the dinar as it is and wait for the currency on the de facto peg rate of 1184 to just float higher on it own? Has it floated higher on it own? Why is it staying at 1184? It stays at this rate because it is artificially being suppressed…The 1184 rate is solely based on the US dollar peg. It is an temporary /unnormalized peg.
4-29-2018 Newshound/Intel Guru Mnt Goat Besides the CBI and IMF came out many times and already told us they fully intend to FLOAT the dinar and peg it to the SDR basket. There were lots of recent arguments in articles about putting the dinar on a float but they were talking about leaving it on the de facto peg and then floating it. If you read the articles carefully you can clearly see they decided against this action due to the wide amount of corruption in the currency auctions. …Many of confusing this float with the float once on the SDR basket…once they do peg it differently to the SDR basket this will drive the rate up since it is being pegged differently. Get it? The IMF and the CBI is not just arbitrarily assigning a higher rate to the dinar. The higher rate is coming from the market and the SDR basket peg.
4-29-2018 Newshound Guru Kaperoni Well today’s auction sales are a bit surprising they are at 1215 to $ 1 which technically has fallen out of compliance within the 2% as required by the IMF. Can the get that back in compliance by tomorrow? With 48 days to go to meet the 90-day requirement this is a setback if they have to start over. Today’s CBI auction was $210 million so it was fairly large in an attempt to get the spread back in alignment. We will just have to see how this plays out but I’m getting the feeling that we’re going to have to start the 90-day requirement.
4-29-2018 Newshound Guru Kaperoni What this all means is that it could possibly postpone the CBI desire to move to Article VIII kicking the can down the road at least another 3 months. We will have to see how this plays out. Maintaining the spread within 2% for 90 days is a requirement by the IMF there is no shortcuts and it’s apparent now based on today’s report, the CBI couldn’t comply. My guess is if the CBI could get it in alignment tomorrow they may overlook today’s report. But this requirement is not something to play games with you either do it or you don’t. So our tentative guideline was June 15th. I can’t answer if that still holds true or if it’s starting over but it is for certain that nothing will happen before then.
4-29-2018 Intel Guru RayRen98 The Association of Private banks partnered with the CBI at the University of Baghdad college campus to promote the new banking services at no charge to the students. The CBI says that the Memorandum of Understanding signed with VISA International allows the Iraqi citizens worldwide use.