Saturday, October 3, 2015


Progress of Reform Laws:
1) Islamic Banking Act, passed by the House of Representatives at its meeting on Thursday 10/1.
2) second reading of the Law of the Three Presidencies. I believe this law is not needed for RV but surely puts more nails in the political future of Maliki in Iraq. It does add to the political stability of Iraq. We have already seen the Parties Law passed in parliament in mid August and I feel this presidencies law goes hand in hand with it.
3) We are told that the Investment Law also is done but we still await the formal announcement (much needed for the RV).
4) We still wait for the National Guard, Amnesty and Accountability and Justice laws (high priority and critical prior to any RV)
They are holding back the investment law for timing purposes that are tied to certain focal points… those point can be several items…I believe they are tied to what the conference agrees upon (post 2015 conference) 10/1 – 10/5 …and an announcement by the IMF on 10/6… Have not heard a word on the bond sale…and it won’t until the “investment law” is voted in… Budget goes to Parliament by 10/11…so we have 5 days – 10 days…to see 2 events roll together. Just remember…it has been said by several parties that there is no opposition to the investment law…it has been read twice and is ready for vote…they just keep delaying it after announcing they will be voting on it. IMO…IT IS THAT BIG OF A DEAL!!!
RV is a revaluation of a nation's currency upward or downward in comparison to a fixed locked in basket of currencies such as the USD & Euro.
RI is a reinstatement of the old rate before UN sanctions were imposed on a nation's currency value.
A Float is unlocking of a nation's currency upwards or downwards in respect to another nation's currency. When locked in, their currency will rise or lower to the same rate of movement as the currency it is tied to.
A managed Float is usually approved by the IMF. The currency can move up or down in much larger approved increments in a short amount of time.
A Fixed Float such as the USD can only revalue at no more than 2.5% a per quarter.
I hope this clears up some questions. In the case of the IQD...we are looking for an RI or RV. A LOP or Re denomination is a change in a currency by removing or adding zeros without changing it's values to other currencies it is locked into. We do not want a Re-denom.

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