Doc says, that the Iraqis are looking for a float

by **Ponee** Mon Nov 18, 2013 9:36 pm

11-18-2013

Newshound Guru Doc

The landscape continues fairly quite with reports of progress as slow as it may seem. The were a couple of articles worth mentioning, however. The first maybe recycled from a few months ago but appears fairly recent. It is quoted as "predicted MP Mahmh Khalil to go up the value of the national currency accumulated balance of the sovereign so that the Iraqi dinar equivalent to the U.S. dollar within the next four years (where Iraq plans to increase its oil production to 8 million barrels per day by the year 1917, also said a member of the Economic Committee of Parliament."

Obviously 1917 should read 2017 but what has been missed by most is the principle being outlined here. Basically we see this as saying as the currency accumulates value (economy), the value of the IQD will rise against the USD. In fact it predicts that when the output reached 8 million barrels per day of oil the value of the IQD will be equal to the USD. The key here is the principle of the value rising as the economic output of Iraq rises. Also keep in mind that the prediction here is to almost triple their output in 3-4 years. No small feat but doable.

We conclude from this that the "people in the know" in Iraq are not looking for a immediate RV but an increase in value over time ie float. This is also supported by private sources. We do not, however, rule out a small step increase, followed by a float regime. What we disagree with is the suggestions that there will be a large $3+ or $30+ RV. The body of public and private information does not support this. What concerns us most is interference with the CBI by the GOI. The article went on to point this out as a threat to monetary reform. This is evident by other article saying the GOI is trying to tap into the currency reserves of the CBI.

by **Jayzze** Mon Nov 18, 2013 10:39 pm

the only thing i am expecting ia a root beer float. remember you just have to love everyone take good or bad in the famous show as iraq turns

by **Kevind53** Mon Nov 18, 2013 11:26 pm

Well at least Doc makes a little sense. His scenario is possible anyway.

by **catman** Tue Nov 19, 2013 2:18 am

Well, if it happens that way we are going to get screwed because long before the value approaches a 1 to 1, they will have deleted the zeros as a lop.

by **Ponee** Tue Nov 19, 2013 6:20 am

11-19-2013

Newshound Guru Doc

A second article is quoted as ""We expect that the first issuance will be in the value of 3 billion Iraqi dinars ($2.58 million)," said Abdul-Basit Turki Saeed." This is referring to the issuance of domestic bonds in dinar. We will not dwell on the importance of this in that it is necessary monetary tool for interest rates and moves Iraq a little ways away from USD dependency. Our opinion is this is the initial test case. 3 billion dinar represents less than 0.01% of the money supply. With that it will take some time for the bond program to have a substantial impact on monetary controls. However, if the initial launch is successful it could become a significant factor fairly quickly. We see this as another piece of the infrastructure that will support a stable healthy currency in the long term.

The sixty four dollar question is will it truly take 4 years. The short answer is no one can be absolutely certain. Our opinion continues as previously which is the infrastructure needs to be in place before we see any appreciable movement. We would like to see HCl passed as another key piece of that puzzle. We are seeing movement toward that end but can not absolutely say for certain when that might be. With that we counsel all to sit back and relax. All good things come to those who wait. We report, you decide.

by **Jayzze** Tue Nov 19, 2013 9:20 am

if it does float anything under 1 to 1 cannot work to solve iraqs proplems. they want the people to use dinars over dollars,then they want to start selling bonds also oil and trade agreements pennies do not work and lastly if they want foreign investment pennies do not work either. the problem with this investment is first you have the gurus who are liars ans scammers then you have people who think they know but know squat but like there name in the limelight and lastly people who take an educational guess based on facts since no one really knows whats going on

by pama Tue Nov 19, 2013 2:48 pm

I guess we will find out more next month, what is going on. The CBI is going to do something starting December 1. It will be interesting how the month of December pans out. Cross my fingers and hope things move along. What I am worried about even tho it will still be a very good return, is that it will come in very low. If that is the case, will it behoove us to hang onto the dinar until it goes up, or are we taking too big a chance. Time will tell and we shall all see.

by **Jayzze** Tue Nov 19, 2013 2:59 pm

here is another reason for a float. on dunday the parlimintary eco commision stated by 2015 they will drop the zeros and the dinars will have great value. so to me they will start out around a dollar and work its way up. if they start less then a dollar no one will use it and that defeats its purpose

by ou812 Tue Nov 19, 2013 3:09 pm

FLOAT THIS......."LOL'

by **Kevind53** Tue Nov 19, 2013 4:23 pm

by pama Fri Nov 29, 2013 2:18 pm

I would be very happy with a $1.00

by ou812 Sat Nov 30, 2013 11:56 am

I would be happy with .10 at this point.

by **Ponee** Sat Nov 30, 2013 12:04 pm

ou812 wrote:I would be happy with .10 at this point.

I got in with the thought of a penny..... a dime on the high end. So, a dime would be just fine with me.

by **Kevind53** Sat Nov 30, 2013 5:26 pm

Doc says, that the Iraqis are looking for a float

Doc says, that the Iraqis are looking for a float

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