Kaperoni says, there will be NO instant RV

by **Ponee** Fri May 16, 2014 9:17 am

5-16-2014 Newshound Guru Kaperoni Article: "In order to revive the Iraqi economy experts: the diversity of the currency basket is the best solution to address the low value of the dinar against other currencies" People don't understand there is no benefit for Iraq to RV the dinar. A gradual appreciation from 1166 is very profitable for Iraq as the dinar rises, the CBI buys/sells controlling the pace as a monetary tool receiving commissions just like they do now with the currency auctions. What incentive would the CBI have to RV and pass up that financial opportunity? None.

...IMF Article IV Consultation [does] not mention any adjustment, RV prior to moving to a more flexible exchange rate policy. It is very clear that the dinar will simply move from the current policy (currency board) to a new Exchange Regime (some kind of float under Article VIII). This change does not involve a rate change first. Once they do so, the dinar will begin to rise based on Iraq's economic progress, oil production and effects of supply and demand. Those expecting an overnight event are mistaken.

by **Kevind53** Fri May 16, 2014 10:15 am

I disagree with the idea that a nation operates under Article VIII, but otherwise, Kap may be dead on ... time will tell.

by Producer1 Fri May 16, 2014 10:25 am

Sheesh....Kap-tain Obvious!

by **Kevind53** Fri May 16, 2014 10:40 am

Yep pretty much ... but at least he's consistent ...

by **Ponee** Fri May 16, 2014 1:34 pm

Oh but wait PRODUCER1-- there is more Kap Trap ---

5-16-2014 Newshound Guru Kaperoni Article: "In order to revive the Iraqi economy experts: the diversity of the currency basket is the best solution to address the low value of the dinar against other currencies" Banks are in the business to make money, not give it out. For a currency to appreciate there must be an upside to the bank...which is the commission. The CBI is the manager of sorts for the dinar.[b] Once they move to a float, the CBI's roll will change from in country currency daily auctions, to using those monetary tools to control the pace of the dinar appreciation buying/selling blocks of currency to control the liquidity in the global market. That is their job. That is what they are learning to do now under Article XIV. It make no sense to RV the Iraqi dinar and circumvent that responsibility. Nor will they.
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Kaperoni says, there will be NO instant RV

Kaperoni says, there will be NO instant RV

Re: Kaperoni says, there will be NO instant RV

Re: Kaperoni says, there will be NO instant RV

Re: Kaperoni says, there will be NO instant RV

Re: Kaperoni says, there will be NO instant RV