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 "As to RI vs RV" - Thoughts from KTFA 2Cents 11/3/18 DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

"As to RI vs RV" - Thoughts from KTFA 2Cents 11/3/18

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Post by Ssmith Sun Nov 04, 2018 11:05 am


2Cents » November 3rd, 2018

As to RI vs RV......

IMO, the auctions will have to continue until they RI........An RI will only occur when Iraq Accepts Article VIII obligations and the IMF recognizes this by removing them from Article 14 and announces they are now compliant with Article VIII..... they can then use the IQD to pay for imports and no longer have a need to exchange IQD for USD in order to do so.....

Banks can then freely accept IQD and exchange it with the CBI as they wish....IMO, this will not occur at the current rate of 1190 as too much IQD would be required and additionally, it is my understanding that Article VIII compliance will require a reality rate which Ernst & Young valued at $1.30 all the way back in 2010....IMSO, a reality rate has to be North of that now......we hopefully will find out KPMG's assessment soon......

As to RV........IMO, an RV is any significant change in the exchange rate.......this can happen multiple times both prior to and after an RI......It already has since 2003.......

Ultimately, any RV of their currency is what I care about........That being said, if their next move is an RI with the associated RV that would be necessary to prevent mass IQD requirements to purchase imports, more power to them!!!!! And us, haha

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