Abadi (the new prime minister) has been fighting an uphill battle internally. Maliki had stuffed the government with his corrupt relatives and cronies.
In addition to that battle Abadi has been trying to remove the tentacles that Iran was allowed to put in place under the leadership of the Maliki government.
Obviously this is not finished but many good things have started to come about…Maliki almost destroyed Iraq and with it our investment.
So where are we today?
Abadi has done a masterful job of consolidating the people and parliament around him. Recently Abadi implemented draconian reforms which in the long run are intended to fix Iraq.
The integrity Committee is proceeding collecting more repatriated funds than ever before from corrupt officials. Finally we are seeing real change coming to Iraq. Most important are the laws that Parliament has recently passed.
The anti-money laundering law was absolutely necessary to our investment. We now know Iraq was never going to be allowed to go international with the amount of corruption and theft that was going on.
Parliament passed the 2016 budget. That is a real first for Iraq. Also an article appeared…that stated the ISX (Iraqi Stock Exchange) will be introduced to the London Stock Exchange on the 20th and 21st of January.
The article implied that they are reworking values so that when the ISX exchange is introduced, real values based on world values will be be shown. Two days ago the CBI instructed all banks to stop selling the dollar and the CBI is targeting the end of this month to shut down the auctions.
The government stated in November that they would institute tariffs and taxes in mid December. It has long been suspected that tariffs must be accompanied by a raise in the currency value.
An article came out in the last couple of days that implied that the lower denominations are now in place the banks.
Iraq is compliant with international banking standards. Most of their banks are ready to do internet banking and the technology installed is current.
Recently the IMF signed an accord with Iraq and is now going to be closely monitoring the Iraqi economy and banking system.
Iraq has made a great deal of progress in the last few months. Are they prepared to go to 1 to 1 as early as next month? On paper it is beginning to look like we are close, but this is still Iraq.
There have been a number of articles as well as the Economy Ministry calling for the CBI to raise the value now. We know as of day before yesterday Abadi said in a speech that the time has come to start the new economy.
Iraq has been preparing for this change to a market economy attempting to attract investors for over a year. It looks to me as they are getting ready to make great changes.
My best guess because it is Iraq, is April first. But who knows. It could happen earlier as many economists and folks in government are pushing for it now.