Kazemi came out last week and said they need to get 90 billion dollars in their reserves and they’re only at 60. That kinda freaked everybody out. But if you think about it…if they were to come out with a strong rate…you’ve got to remember they’ve done currency swaps with a lot of other countries…Saudi Arabia, Jordan, Qatar, a lot of the GCC countries. They all hold dinar…if Iraq came out and kept their 1450 it would absolutely tank that middle eastern basket. All their currencies would drop. You know that’s not going to happen. That’s ridiculous.
If they come out really strong with their rate when they do their revaluation then all the middle eastern currencies that are the basket value increases. Iraq has their currencies because they did the swap so guess what happens? The reserves inside of Iraq skyrocket. So to me, to cover that 30 billion is going to happen very very quickly if it hasn’t happened already. Not to mention the amount of funds that are out there that they are going to go and repatriate and bring back into the country that were stolen, smuggled or whatever. It’s like $500 billion…yeah I don’t think it’s an issue at all.Tags: petra /