9-11-2014 *Kaperoni

[Vixen]

9-10-2014 *Kaperoni ~"Basic premises of the Government's program" "The strategic priorities of the government program ... provide housing, services, and social security" This is the Iraqi government's priority list of sorts.. And the first three tell the story for the dinar. Nothing is going to happen with the dinar this week, nor next week, nor the end of this month. Here is the proof! Details...First: a stable and secure Iraq. Secondly, upgrading service and living of the citizen. Third: to encourage the shift towards private sector. ...first and foremost they must deal with ISIS first...it says.."First: a stable and secure Iraq" So until the coalition kicks ISIS out of Iraq, we are in a holding pattern. I have heard others (people in the know) say the same thing. Clearly #2 and #3 are exactly what we want to read. So we are in a good position and the dinar will be unleashed hopefully in the coming months once they get boot the scum bags out. Let's all watch how fast that happens. I am sure that they will work expeditiously to get step #1 done as soon as possible for sure. But it will take some time. The good news is we are on the right track and it does appear that changing the economic conditions are a huge priority for the new GOI. Going to be a fun next couple of months as we watch all this unfold.

9-11-2014 *Kaperoni ~Article: "Central Bank raises a new class of 10 thousand dinars characteristics of high security" So it's clear now that they have begun to circulate the replacements 3 zero notes (10,000 dinar) as stated last month in which they had hoped by the end of the month (Aug). This IMO also reaffirms as we have been saying for over a year that no overnight RV is coming today, tomorrow or a month from now. I stand firmly believing the dinar will appreciate as the IMF states..."gradual appreciation"... Keep in mind, the purpose for reprinting the existing notes is to strengthen the banking system (so citizens use the dinar, and it reduces corruption or counterfeiting as said by the CBI). IMO, this move does not support an overnight RV, nor a redenomination (LOP) at least not in the near future. That being said, we also know monetary change must occur for the success of a transition to a market economy and the CBI opening the Capital Account (it is a requirement). Therefore, IMO the only thing left is a gradual appreciation as I stated above. One thing people may not understand, is that as capital investment comes into Iraq (and they expect a lot of it) it will create inflation. To counter that result, the monetary tool to use is to appreciate the nominal exchange rate of the currency. That is the very reason an overnight RV makes no sense. I want to say one more thing...on a good note...the faster the investment comes in (and that is why they are lining up all the banks, etc) the faster the dinar must appreciate to offset the inflation it causes.