BGG "Just Get Started!!" 2/27/18

by roxy22222222 Tue Feb 27, 2018 7:39 pm

What is this 90 day 2 % everyone talking about has it started and does it mean we have to have 2 % for 90 days before a rv?] If I recall correctly, the “IMF 2% rule” refers to the spread between the Official rate and Market rate of the currency on any given day. The rule is, basically – they must maintain this 2% (or less) gap for at least 90 days prior to accepting IMF Article 8 general obligations (as a member country) and concurrently from then on. Now – would the IMF allow them some latitude on the 90 day entry point? Possibly. However, the real issue everyone is stewing over is this… Does this recent closing of the gap between the “Official rate” and “Market rate” forecast some coming change or is it much ado about nothing?

There are articles regularly touting the tightening of this gap...or the “Strengthening of the Dinar against the Dollar” or some other various titles along those same lines. Ask yourself why? Because they know what it means. Whichever side of the fence you are on here, this tightening of the OR/MR gap is the single most visible, interesting and encouraging “data point” we’ve seen in a very, very long time. Personally, as I have said many times, I don’t care if it is a fixed rate, a managed rate, a dirty float, a naked float or some weird combination. I DON’T CARE! My confidence in the future of Iraq is such that, I believe whichever it goes – in a reasonably short period of time, the value will wind up in the same place any way. The key for me? Just get STARTED!