Militia Man There’s a lot of money going to to be made in Iraq and it’s all starting to come together. When the World Bank is sitting at the table and they’re working to finance projects, take a look at it. It doesn’t smell of, ‘oh, this is never going to happen, blah, blah, blah, we heard this two years ago.’ No you didn’t. I have to tease because I still get that on occasion.
Frank26 Question “What does your gut say the rate will be in the end?” Remember I said IMO the float would probably be between $3.36 and $4.25 would be a good place to cap it.
Breitling Don’t…be in a state of perpetual question. Make a decision. Do you want to be in this investment or not? If you don’t, then who cares? Get out. You’re still my friend. I’m not offended…Show a little backbone. Make a decision whether you’re in this investment or not…If you’re really paranoid, diversify.
Kaperoni By the end of the year when the Central Bank of Iraq ends the currency auction, only transfers amongst established Iraqi banks and regional or International banks will occur. In other words, the float of the dinar and transfer of funds will be institutional. What this means for us is the future of the dinar exchange rate is directly tied to the capital flowing through the CBI, economic growth, and success of Iraq. As Iraq prospers, so will the dinar! Though we may not see the dinar exchange rate improve initially. This is a significant change in monetary policy for the Central Bank of Iraq. Some 20 years in the waiting.
Pimpy Floating the currency means the value is determined by the market, so if people for whatever reason want to start investing in the Iraqi dinar and the start buying up the Iraqi dinar that means the demand for it is there, think supply and demand. Since they have a liquidity issue, there’s not going to have a lot of Iraqi dinar out there and if that’s the case then they don’t have the supply to feed the demand…But we’ll be more than happy to sell our Iraqi dinar back to them if they get the exchange rate up around a quarter or more. I know I would.
MarkZ [via PDK] Community Comment: “[Guru] Frank said…Iraq is working out of 2 sets of books. One at 1310 and one with a float of over $3.00 US” MarkZ: I whole heartedly agree with [Guru] Frank. It’s the only thing that makes logistical sense. When I see the projects and some of the moves and ways the contractors are getting paid…I very much believe they are operating out of 2 sets of books until they get the opportunity to announce it to the world. Then is should be one set of books.
Samson Article: ”Parliamentary Finance: Voting on the budget tables will not exceed next June 9”
Militia Man Iraq…increased their non-oil revenues by 6%. That in itself is a massive amount. Is it going to grow? Of course it’s going to grow. They’re just getting started. It’s going to be amazing.
Frank26 Is Iraq a member of the WTO? ‘Well, Frank you say they’re a member of the WTO, they qualified for it.’ But do you see any official paper that tells you they’re a member of the WTO. ‘No.’ Why not? Until you see the new exchange rate. ‘But you don’t have to have a high exchange rate to join the WTO. Why do you say something like that?’ Because commitments were made in contracts that were guaranteed by Sudani for all these people through the WTO investments for the economic reform of Iraq.
Mnt Goat The UN, IMF and World Bank all on one day, Thursday, noted significant progress that Iraq has made in recent years, despite ongoing challenges. The reinstatement spigot has been opened. The direction is now clear.
MarkZ [via PDK] I have been in touch with a number of contractors …projects that were moth-balled and stalled now suddenly have funding in place…2 contractors in Iraq…believe they will see their rate…(about $3.90)…this week for their projects…I find this very interesting…Where is the money coming from to start these massive projects. Their whole budget is about $162 Billion. But one contractor was told they are getting ready to start a $150 billion dollar project. Which means there is a lot more money moving than what we are seeing right now.
