Enorrste says that Iraq could begin the float any time after the beginning of the new year, as the CBI has stated its intention.

by **Ponee** Wed Dec 10, 2014 10:44 am

Enorrste   Article: "Statement at the End of an IMF Mission on Iraq"    The article...makes it clear that the decision to release some of the reserves was made by the CBI in concert with the GOI to fund the deficit. It is speculation to say that Maliki and/or Turki were behind this, since we do not know when the funds were released. In any case, the fact that this came out in an officially recognized IMF article implies to me that the release was on the "up and up" as far as the IMF was concerned. In other words, the IMF didn't mention anything "fishy" in the reduction of reserves and, furthermore, didn't even make a comment about the fall in reserves. Therefore, I do not believe this is an issue with respect to the future of our investment.

   At the same time, ...KAP [Guru Kaperoni] he made it clear that the IMF will require that the street rate and official rate be within 2% for at least 90 days prior to a move to Article VIII. Whether that means that the country wouldn't begin the float is open to question. The float decision is Iraq's to make as a sovereign country. This has been made amply clear in previous articles. We are therefore left with some speculation: Iraq could begin the float any time after the beginning of the new year, as the CBI has stated its intention. OR, they could wait until March when they will have, theoretically, been at 2% for 90 days or more, and, presumably, begin the float with the move to Article VIII.

However, I do not see a direct connection between Article VIII and the beginning of the float other than that the float could not be initiated AFTER moving to Article VIII. I do believe that the float could begin PRIOR to movement to Article VIII. I have predicted, based on the articles only and not on any specific evidence, that I believe the float will be initiated shortly after the new year. I see no reason in this article to change my position.   I just got to thinking that entering Article VIII isn't necessarily directly connected to the value of the dinar. Of course the dinar would have to be tradable in order to move to Article VIII, but that does not mean that the two have to happen at the same time. Also...a free float will bring the official rate and the street rate together overnight.

by **Kevind53** Wed Dec 10, 2014 11:08 am

Wow talk about doubletalk and circular arguments ...

Enorrste says that Iraq could begin the float any time after the beginning of the new year, as the CBI has stated its intention.

Enorrste says that Iraq could begin the float any time after the beginning of the new year, as the CBI has stated its intention.

Re: Enorrste says that Iraq could begin the float any time after the beginning of the new year, as the CBI has stated its intention.