Kaperoni - NO Overnight RV/RI! 1/13/19

by **Ssmith** Mon Jan 14, 2019 8:32 am

I’ll say it again…there can never be an overnight RV or RI, there is just too much dinar in circulation. Our best hope is for the CBI to move off the peg to a float and allow the dinar to rise gradually. Such an event could allow for a gradual reduction of currency.

The simple fact that over 40 trillion dinar is in circulation is all one needs to know to realize there NEVER can be a RV or RI…Simply put, there is just to much dinar in circulation for such an event. The good news is the IMF documented very clearly the intent to float the dinar and if investment comes into Iraq as expected it should create the Balassa-Samuelson effect allowing the dinar to rise gradually. I believe once the CBI begins the float, the dinar could rise significantly within 6-12 months.

So, some are asking the significance of why the government needs to be offically formed for the IMF to engage with Iraq? Usually on these types of agreements a legitimate government is needed for validating/confirm signatures. [The normal cycle for Article IV consultations for countries under a program is 24 months. Thus Iraq is not due for an Article IV until the summer of 2019.] Kaperoni: Wrong. Iraq under its programs meets annually. Not to mention, the representative to Iraq told me directly they will not meet with Iraq until the completed formation of the government… Kaperoni: The dinar you own will never go back to Iraq. It will become part of the global traded currencies.