Frank26 [Iraq boots-on-the-ground report] FIREFLY: International finance team is on the television channel one…They’re saying the economic reform is Iraq is at an increasing rate and we have invested over $2 billion in this Iraq. FRANK: This is the international finance community. They all know what’s going on. When they say your economic reform has increased…what they’re talking to you about without saying it because they cannot, is the float.
Kaperoni Just because the central bank is changing monetary policy doesn’t mean the exchange rate is going to rise. Only with the success and growth of Iraq’s economy can the dinar go up in value.
Bruce [via WiserNow] We know that there’s a lot going on behind the scenes. One of our bankers – Wells Fargo said, Just hang in there…just hang in there a couple more days…So I’m excited…we will be able to look back at years of waiting and say, it was worth it.
Fnu Lnu Holding early elections in Iraq could have significant consequences for the country’s stability and politics. While some potential outcomes may be positive, such as the strengthening of political parties and the promotion of democracy, others may be more negative, such as increased political polarization and violence.
MarkZ [via PDK] In Iraq news: “KBR wins $46 million dollar contract to support sustainable development in Iraq” This is actually more exciting then you think. This is an American engineering firm that was just awarded this 5 year options to support infrastructure and energy ambitions. This is a long term contract and they are moving forward with these mega projects. What do they need to do these mega projects that they want to start immediately? They need a heck of a lot more money than the current rate will support…It has moved beyond the planning phase and is in the execution stage. For it to be executed it needs dollars…and we certainly think we know where those dollars are coming from.
Buckeyetree National Bank of Iraq Tutorial “With simple steps, you can now deposit your money through ATMs with ease” The ATM tutorial about ability to make deposits into the ATMs is not only a convenience for Iraqis, but IMO another way for the CBI to collect 3 zero notes that may be in the dinar mattresses.
Clare National Bank of Iraq Tutorial “With simple steps, you can now deposit your money through ATMs with ease” IMO We are extremely close.
Frank26 $3.22 is the actual reinstatement…They’re not going to reinstate it…but it would be enough to launch it into the float, let the float take care of it. The float will take it up to…$3.86…$4.25…$4.72. Inflation is the reason why they have been doing this RV that’s leading into an RI but the RI is not feasible therefore due to inflation a float is necessary to take it to the real effective exchange rate, which may be around the numbers I suggested…
MarkZ [via PDK] Question: will the rate be fixed or a float? MarkZ: I don’t look for a wild float but a very controlled or fixed float. IF there is a float…I can’t see more than a 2-5% change as allowed in a float. I am not looking for wild swings. …Of course we won’t know until we get there. It’s possible $3.22 or higher. To me it doesn’t make sense to start at .76 cents or $1.32 to take 15-20 years to wait for it to grow. IMO they need to start closer to their end goal…imo. …It looks like to me $1.32 is our worst case scenario…
Militia Man [via PDK] Question: will the rate be fixed or a float? Militia Man: Saleh who is the prime ministers financial advisor has released several articles on this. I think a managed float is exactly what they are talking about. It’s a form of a fixed…and a form of a float. It’s a component of both…If there was to be growth…imo it would be as conservative as they can. They will need to keep the rate stable on the dinar. Contractors would not appreciate rate or price changes every day…remember the reinstatement rate 20 years ago of $3.22. Even the IMF has documents stating this was a relevant number. If it came out at that…they would keep the rate in a relevant range. Could it grow from there? It could. And they could adjust that accordingly but would probably keep it pretty tight.
