Article: “Parliamentary Economy: Investment Law will happen quantum leap in Iraq’s revenues.”
The very fact that this announcement came from the Parliamentary Committee on the Economy means that this will happen. I find that what the Parliamentary Committee is saying echoes exactly what KAP and I have said for some time now, namely that once the Investment Law is passed investment will flow into Iraq and literally create a “quantum leap” for the economy.
The term I have often used is that it will be like the “wild west” was in the US at the end of the 19th century…foreign investment will mean that the financial crisis will be ameliorated significantly and will allow the government to return to “normal” in terms of salaries, projects, etc.
Furthermore, foreign investment will inject new money into the local economies, which means that the CBI will be enabled, finally to float the currency.
As new money comes into the economy the only way to avoid inflation (too much money chasing the same amount of goods) will be to raise the value of the dinar to offset those affects.
By reducing the amount of dinar currency in the market the REAL value of the dinar will rise, meaning that the same dinar will buy MORE goods, thus reducing the upward pressure on prices themselves. I was also pleased to see that the IMF is chiming in on this today, stating that early next year will see Iraq “entering the market.“
This means that they expect this process to take place and that the float will begin early next year. The phrase “entering the market” means allowing their currency to become internationally recognized.
The phrase “entering the market” means allowing their currency to become internationally recognized. We know that because it comes from the world’s biggest money controller, the IMF. In other words, for the IMF the phrase is extremely powerful. It is synonymous with the phrase “become a world player.”
Only a country in Article 8 with an internationally recognized currency can “enter the market” in IMF terms. Of course it may take some time for the actual movement to Article 8. That is not our concern. What is our concern is that they begin the float, and the passing of the Investment Law, as KAP and I have said numerous times, is an essential element in making that possible.
Even more importantly for us, however, is that passing that law will go a long way toward allowing the CBI to begin the float. Once the money starts coming to Iraq the CBI will leap on the opportunity to continue the execution of The Plan.