LOBO thinks the CBI is working a plan

by **Ponee** on Mon Dec 28, 2015 1:20 pm

LOBO

Even though the CBI says the dinar has not been devalued and the rates show differently (see below), I think it is a way for the CBI to bring in more dinar, and I have to keep in mind that Iraq is not yet IMF Art. 8 compliant. I think the CBI is working a plan; the IMF has said Iraq will become a market economy within the first six months of 2016. Can't do that without being Art.

8 compliant and the rate of the dinar at this moment, won't be helping the citizens and Iraq won't be able pay back international loans, sell the bonds, etc., etc., let alone be able to use the Smart Card which has been given out to the employees of the government and pensioners to receive their wages and retirement funds - which is to be a global card. I would venture to say, since the budget is passed and to be "operational" January 1, the start date of Iraq's fiscal year, and the government has said the salaries and pension funds would be placed on the Smart Cards - we might see "something". Keeping the prayers going for the blessing.

by **Terbo56** on Mon Dec 28, 2015 4:11 pm

Never happen, cripes, they haven't even passed laws they said they were going to- Just forget about it, PERIOD-

by **Kevind53** on Mon Dec 28, 2015 8:29 pm

@Ponee wrote:
LOBO

Even though the CBI says the dinar has not been devalued and the rates show differently (see below), I think it is a way for the CBI to bring in more dinar, and I have to keep in mind that Iraq is not yet IMF Art. 8 compliant.

I think the CBI is working a plan; the IMF has said Iraq will become a market economy within the first six months of 2016. Can't do that without being Art. 8 compliant Article 8 governs how and when countries exchange reserves they hold. That is all. Go back and try again. Better luck next time.

and the rate of the dinar at this moment, won't be helping the citizens and Iraq won't be able pay back international loans, sell the bonds, etc., etc., let alone be able to use the Smart Card which has been given out to the employees of the government and pensioners to receive their wages and retirement funds - which is to be a global card.

A rate is a rate is a rate. A bond with a 10% interest rate will still pay 10% regardless of the currency it is valued in. The bonds they tried to sell this fall were "Euro" bonds monetized in USD, even at 10+% they could not sell them. Why? The answer is simple although not conducive to the BS the gurus are feeding you. In reality, all investor care about is the rate of return relative to the degree of risk in the investment. The currency they are denominated in and the value of that currency make little, if any difference. Simply put, the risk was too high given the current financial, political and security issues in Iraq. Likewise for smart cards (if actually being used) or any other aspect of the retail or import-export systems you might want to mention. A loaf of bread will cost the same equivalent amount whether the IQD is worth 1 dollar or 1166/USD. None of this makes a difference, none of this is impetus to RV, none of this is needed for full membership in the IMF.

I would venture to say, since the budget is passed and to be "operational" January 1, the start date of Iraq's fiscal year, and the government has said the salaries and pension funds would be placed on the Smart Cards - we might see "something". Keeping the prayers going for the blessing.

One last item, if you are pinning your hopes on them becoming full members of the IMF, it didn't happen at their biennial meeting just concluded, so it will not be happening before their next meeting in November/December 2017. That is when they vote on new members.

LOBO thinks the CBI is working a plan