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Sunday, October 18, 2015

DINAR GURUS UPDATE, 18 OCT

10-18-2015   Newshound Guru wmawhite   What is missing in the following list of currencies?

1 Egyptian Pound = $0.13
1 Jordanian Dinar = $1.41
1 Qatar Riyal = $0.27
1 Bahraini Dinar $2.65
1 Israeli Shekel = $0.26
1 Saudi Riyal = $0.27
1 United Arab Emirates Dirham = $0.27
1 Omani Riyal = $2.59
1 Kuwaiti Dinar = $3.31
1 Iraqi Dinar $0.00085
 
...think of sesame street..."from the list of currencies what is not like the others?" From the list of currecnies, which country has the largest economy?  [the largest economy to be Iraq and the currency has leading zeros...which shows it's weak at the moment.]  Very good...actually the current value is not weak...it is actually...worthless.  Yet, many of the other countries that have only a fraction of the GDP have currencies valued a 1,000 times greater.

10-18-2015   Newshound Guru Aggiedad77
   Well from the sound of initial reports we should be hearing that the COM approved the budget today and will be forwarding it on to Parliament where there is a request to keep political differences away from the budget process and get this budget approved as quickly as possible...well I'm not holding my breath yet for that to happen...be looking today for a vote on the Investment Law by Parliament if they hold true to their word.

10-18-2015   Newshound Guru Enorrste   I, for one, remain cautiously optimistic that the plan is moving forward, even though at a snail's pace... I see that pressure is increasing to make a "leap" forward.  The passage of the Investment Law this week, hopefully, will be a big  step in the plan because it will open the door for protected investment and land ownership from foreigners...we could begin to see a significant increase in foreign investment in the near term. Then we need some banking relief through a new Banking Law.  Third, we need to see the introduction of the large 50K notes. Reducing the Iraqi money supply...will lead to a rise in the value of the dinar.  Once this process begins, hopefully before the year ends, I foresee a rapid rise in the value of the dinar...most importantly due to the influx of new money from abroad.  I'm actually excited to see this plan laid out in detail for the first time.  [post 3 of 3]

10-18-2015   Newshound Guru Enorrste  The article is also fairly clear on those elements that have caused the "plan" to be stalled to a large extent...in addition to those things that we have always known, there were a couple new points made that make the lack of progress more understandable. The article is also specific in that it sees that the role of the government is obstructive rather than helpful in moving toward a more open market driven economy.   It is my view that Abadi is a good guy and that he is actually looking for ways to help move this process along.   Ideally, the CBI will give him suggestions that he can implement unilaterally (without approval from Parliament) to remove some of the strings that exist in government funding and expenditure, reducing the move to a market economy.  [post 2 of 3....stay tuned]

10-18-2015   Newshound Guru Enorrste   Article:  "Monetary policies in Iraq and proposals for the next phase applications"    We are all, or at least most of us, frustrated that the CBI has seemed to be unable to move "around the corner" leading to a rise in the value of the dinar...this article for once outlines in detail...the fact that the CBI definitely has a plan and that the plan includes, first, stabilizing the dinar rate, then second, raising the rate, and, third, eventually removing the large notes from circulation ( a clear goal of at least $1 for the dinar).  Therefore, if nothing else, this article is a confirmation that the overall plan remains in place in spite of the obvious drawbacks.  [post 1 of 3....stay tuned]

10-18-2015   Newshound Guru Millionday   Article quote:  "...the first deputy speaker of parliament Humam Hamoudi, on Thursday, that the amendment of the Investment Law will be submitted to parliament next Monday, in order to vote on it..."  THIS IS THE FINAL VERSION OF THE AMENDMENT...THEY PLANNED ON VOTING IT THROUGH LAST MONTH IT APPEARS BUT --- THE FINAL AMENDMENT GOES ON MONDAY.  THIS WILL OPEN IRAQ FOR FOREIGN INVESTMENT --- WIDE OPEN IT SAYS...KNOW HOW HUGE THIS IS?  HUGE.

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