Saturday, December 5, 2015


Iraq is actually making the necessary changes to their monetary and currency reforms!
The fact that it moved 16 pips is indeed a huge change for all of us!

In addition, this will entice the citizens to dump their dinars, thus creating less dinar on the streets and keeping speculators at bay.
This proves that the IMF has their hands in deep.


One thing the IMF told the CBI in order to be in compliance with Article 8 you must be 2% of your CBI rate within the market rate…commonly known as the street rate…so they brought the rate down…they brought the street rate down to make it Article 8 complaint with a 2% movement….look at 1166 what is 2%…23.32…add that to 1166…it comes out to 1189.32…what is the rate that the CBI put out today…1180 to 1182 up to 1214…1214 is the street value…1189 is the 2% compliance…they are moving from the RI to the RV…this is started…it is public…

…yesterday they decreased the street rate of 1214 to match within a 2% which is in Article 8 compliance…they are out of Article 8 but the rate must make it official before they tell you… The IMF who tells all countries what to do with their currency..print, destroy…increase their rate, decrease…this I think is the last demand they had on the Iraqi currency…you have to be within 2% compliance of that street rate…we will help you but you have to be ready by the first quarter 2016 otherwise it does not work.


“New exchange rate from CBI” This minor adjustment does not concern me even one small bit. In fact…this appears to be a “repositioning” for the takeoff. The 1% drop is insignificant in the long run but it does help to adjust the official rate closer to the street rate. …I doubt that the IMF would suspend its own rules for Iraq on the 2% requirement for 90 days. Therefore, I conclude that the IMF itself made this recommendation to the CBI, even though reluctantly… In doing so it positions the CBI to be able to meet the IMF guidelines and may actually improve their financial position slightly by reducing the auction some.

I like to think of this as “backing up to leap forward.” I sincerely feel that this is a repositioning that is being made just prior to an official change of the exchange rate regime to a float. Think about it this way: if they move the official rate closer to the street rate then there is less stress on the official rate and a lower chance that it will fall, rather than rise, when the exchange rate regime moves to a float. In other words, it is a stress relief measure just prior to the official release to a float.

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