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Friday, June 3, 2016

Delta: (Reposted from Wed. CC) , 3 JUNE

Delta: (Reposted from Wed. CC)  I know we are getting very close to a lot of things going on…

Number 1 is an announcement from the Minister of Planning…this coming Thursday they are going to launch something…very important…and very significant for our investment…they call it the Development Management System...we know the CBI with help from the GOI...they decided to be a cashless society in the long run...their goal is to move the whole country in this direction of e-government or electronic...the launching of this project will be this coming Thursday and it looks like PM Abadi will be present to launch to this...

Without this Management System the financial reform cannot proceed...they have to have this system in place to do the currency reform and the financial reform...So this coming Thursday they will celebrate the launching of this system...so indications are we are getting really close…but we don’t know exactly a date...
 
 Second point...we all know of the deal between Iraq and the IMF...there was information on Iraqia TV and another article today...from the Financial Advisor to Abadi...One thing he stressed is that the IMF Board has to give the final go ahead for Iraq to get their funds...so he said that for Iraq to get this loan they have until June 15th to submit a letter from Iraqi authorities to the IMF board that they do agree to all the IMF conditions and the framework of the loan…and the most important condition to us concerns the financial reform…

They talked of two things...one was about taxes...and the other...they HAVE to lift the 000’s and basically do the currency reform...so this seems to give us a very small window...they have less than two weeks to accomplish everything and send the letter to the IMF...so this letter being submitted will be exactly the same as Iraq accepting Article 8...so by the end of the month of June then...the IMF board will look at all of what Iraq has said they have done...and one is the currency reform and the establishment of the true value of the Iraqi dinar...Again…now these two things seem to point to the idea that we are very close.
 
Third point….it is about the CBI...my TEAM has been digging into and watching the CBI really closely for a very long time...there is a spreadsheet that the CBI has they have been doing for years and in this is a calculated ratio that they provide…they come up with this ratio to determine the value of the currency…by dividing the foreign exchange assets divided by the money supply…this ratio reflects very close to the exchange rate…and for the last six or eight months the ratio has been showing like 0.85 or 0.86 cents which is close to the value of the USD...

But it looks like we have the magic number in that spreadsheet...when you put all the numbers into the ratio it appears the ratio is basically saying 1 to 1...the magic number is there... I would like to add that even though it is showing 1 to 1...I believe it will come out even higher...because remember they have to add inflation into it...so we could see “out the door” more than one dollar...maybe 1.15 or 1.20...even up to 1.42 is possible...

IMO I think we will see 1.13-1.20 after inflation is added to it...there are so many indicators that we are so very close

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