8-16-2013 *Kaperoni

[Vixen]

8-15-2013 *Kaperoni ~Article: "Parliamentary Finance reveal postpone the deletion of zeros until after parliamentary elections" You can only put off the currency and banking reforms so long. The laws are now getting close to be passed (this or the next session) it appears that set the laws for the free market economy. The currency and banking system play a key roll in that they become the conduit from Iraq to the world. This must occur for it to succeed. IMO, the CBI will accept Article VIII once the laws are passed in fairly short order.

8-16-2013 *Kaperoni ~The Kuwait dinar never revalued...I think it was some kind of re-reinstatement. Many middle eastern countries have weak dinar. Saudi is .26 cents and is next to Iraq and Kuwait that is at 3.46 or so. UAE is also weak at 28 cents. So the argument that Iraq cannot have a weak currency is nonsense. I do agree that the Iraqi dinar will have a high value, it just is going to take time. Now, to the main event...the float...the AMF (Arab Monetary Fund) and the CBI (Central Bank of Iraq) have stated they plan to implement a "floating orbit of exchange" which is a free float. Now this is where it gets good...the fact is the IMF has encouraged all emerging market economies since 1973 to float their currencies...its a fact! ...the IMF no longer sets what is known as "par" values for currencies. They prefer to let the market dictate the rate..and that is going to be the fun part of the dinar investment once it starts to rise. So now we come down to the actual IMF docs with Iraq. Specifically the Article IV consultations. They clearly state they support the CBI's target to "liberalize the foreign exchange" which is a precursor to a float. The only question left is the actual transition from the current pegged regime to the new float regime. This is know as a "exit" and can be either normal or disorderly. It really does not matter to us, but may effect the timing. I do expect once the dinar hits the foreign exchange market it will rise fairly quickly.