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Friday, July 7, 2017

KTFA UPDATE, 7 JULY

Frank26:  BRAVO !!!

BondServant888: Post 213  After years of economic neglect, poverty for the common man and turmoil in the region, Iraq has finally reached a state of constant economic growth under democratic leadership in the aftermath of the US invasion in 2003 and the deposing of Saddam Hussein’s tyrannical regime.

The following post is courtesy of fractalerts, a division of fractal SA, Switzerland, a trading alert service based on unique algorithms that intuitively predict patterns in the market. Each market forecast is systematic, unemotional and data-driven – resulting in specific entry and exit points and historically astounding gains across 34 different markets.

Iraq’s Economy is Rising

The main driving force behind Iraq’s economic growth is the wealth of natural resources reflected in a large number of oil and gas fields which are now open to international trade.

Companies from around the world are investing into the development of these resources,which is reflected in the country’s ever-increasing oil exports. It seems that Iraq has completely recovered from the damage and downfall it suffered under the rule of Saddam Hussein.

An even greater exploration of Iraq’s oil reserves by international companies will lead to an even bigger tally of the country’s oil wealth, along with its already-known, vast reserves. In addition to all that wealth, Iraq seems to be blessed with geological formations that are perfectly accessible for drilling as opposed to most countries, which significantly brings down the costs of oil extraction.

The most obvious example of Iraq’s production advantages can be seen in the most recent Saudi Arabian oil production war which was designed to bankrupt the US shale-oil producers. And while oil producers in the US have been severely impacted by the overproduction “attack” from Saudi Arabia, Iraq still continues to produce and sell oil profitably.

What does this mean for the Iraqi Dinar?

The value of a nation’s economy, as well as its currency, is directly reflected in its natural resources, and Iraq’s oil reserves are big enough to drive its young democratic economy to prosperity.

Given the fact that there is an insatiable need for gas and oil across the world, Iraq is can look forward to constant growth in its ever-growing role of the oil supplier to the world.

Although Iraq is not there yet, it is becoming increasingly obvious that the country will take on the role of a regional and international energy super-power given its natural reserves in the near future. In fact, just recently the country’s Minister of Oil stated that Iraq will be able to produce 5 million barrels of oil a day in the second half of 2017.


With the economic boom led by Iraq’s oil industry, the national currency in the form of the Dinar will eventually rise to reflect the true value of the country’s oil wealth.

The rise will most likely happen when the National Bank of Iraq lifts the artificially low value placed on the nation’s currency in 2003.


Historically, the new Iraqi Dinar reached an all-time low against USD of 1680 in January of 2004 and a record high of 1106 in December of 2015. Currently trading at 1180. USD/IQD chart from Yahoo Finance.

Additionally, current political events play a key role in predicting the future of any given currency, and the controversial “Muslim ban” instituted by Donald Trump could have had major consequences for the Iraqi economy, had it not been lifted on March 6th this year.

This new order to exempt Iraq from the list of banned countries has proven to be very beneficial for the country’s currency with foreign currency investors being able to exchange Iraqi dinar at favorable rates, keeping the country a valuable asset in the foreign exchange market.

All in all, it seems that the Iraqi dinar is looking at a bright future.

In the end, it is important to note that Iraq presents a wealth of investment opportunities in many industries, with the economic rise being driven by oil and gas reserves. These opportunities will become even more apparent in the following years, as the newly-established government continues to offer new possibilities to international investors.

https://www.leaprate.com/forex/market-news/iraqs-current-economic-outlook-and-how-it-can-affect-dinar-value/
 
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McDan:  Frank , Randy looks like post 212/213/214 should help Iraq make good yardage in the Red Zone for next week IMO 

Frank26:  (Big Grin)
 
Aggiedad77: I  agree McD.....it appears to me they are in the process of stirring up some good PR for themselves....watch for the results as next week unfolds before our eyes......keep in mind the 10th-15th.....and what falls right in the middle of it all.....the 12th......it can't get any better IMO.....watch for the BEST to come......another hot week IMO.   Aloha   Randy

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Bondservant88:  Post 214  Emerging Markets: Outlook upgrade could help push Iraq's economic evolution to its next step

War-torn Iraq recently got an unexpected boost on its way to becoming an investment hot spot, which may take its next step sooner than conventional wisdom suggests.

Even as military forces wage a fierce offensive against ISIS, global ratings agency Fitch upgraded last month Iraq's outlook to stable, based largely on the country's improving public finances.

To be sure, Iraq's B+ credit rating is still deeply entrenched in speculative, or junk territory. The low rating reflects what Fitch analysts called political risk and instability associated with the conflict-ridden country that's "among the highest faced by any sovereign rated by Fitch."
 
Yet as a marker for big institutional buyers like hedge funds and sovereign wealth arms, Fitch's vote of confidence could mark the start of a broader shift among investors about Iraq's long-term potential. The upgrade could be pivotal for a country still considered besieged, but considered by a handful of savvy market watchers to be a potential diamond in the rough.

http://www.cnbc.com/2017/03/30/outlook-upgrade-could-help-push-iraqs-economic-evolution-to-its-next-step.html

Aggiedad77:  IMO today we have seen good things pointing to the LL waiting on Iraq and getting restless for some action......they know the investment they stand before is ripe and they are equipped and prepared to start the cherry-picking of projects.....
Clowns to the left of me......jokers to the right......we of the LL are standing directly in the middle of Iraq's door awaiting it to open......disorderly like a Wal-Mart Black Friday sale.....oh heavens no......

We are professionals who have stood in this LL against the hands of time and know the bell will soon be tolling in our favor......order and professionalism will abound.....now that Security and Stability have been dealt with.......Give me Mosul......no.......it's become......We've got Mosul.......IMO. Aloha   Randy
 
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Don961:  Getting in Early is Key to Success in Iraq, Conference told

July 6, 2017 

More than 300 delegates attended a major Iraqi business event in London on Monday and Tuesday.

The Iraq Conference for Trade and Investment (ICTI) was intended to highlight Iraq’s openness for business as it rebuilds its infrastructure and institutions, and it facilitated face-to-face discussions with key decision makers, Iraqi and British ministers, and business people and investors from all the major sectors.

Opening the event, H.E. Dr. Salih Husain Ali Al-Tamimi, Iraq’s Ambassador to the UK, said:

There could be no better time to hold this conference … Security is no longer an acceptable excuse for the reluctance of British companies to enter the Iraqi market.

Iraqi Minister of Foreign Affairs, Ibrahim Al-Jaafari, added:

“Iraq is open [to investment] from all countries of the world.”

Sir Jeffrey Donaldson, MP, emphasised the importance of acting quickly:

“Now is the right time to invest in Iraq. Getting in early is the key to success.”

Speakers included Baroness Nicholson of Winterbourne, the British Prime Minister’s Trade Envoy to Iraq and President of the Iraq Britain Business Council (IBBC); Dr. Sami Al-Araji, Chairman of Iraq’s National Investment Commission (NIC); and Jabar Al-Luaibi, Iraqi Minster of Oil; while the keynote speech was delivered by UK’s Minister for Trade and Investment, Greg Hands.

http://www.iraq-businessnews.com/2017/07/06/getting-in-early-is-key-to-success-in-iraq-conference-told/

Aggiedad77:  Well Sir Jeffrey......I hope you and yours have been in the LL for quite some time already.....you need to wait your turn.....and that turn will be soon in coming IMO. Aloha  Randy


Don961:  Iraq to pay $500m to Kuwait Airways

July 7, 2017 

By John Lee.
Kuwait’s Ministry of Finance and Kuwait Airways Corporation (KAC) are reported to have been coordinating efforts to receive $500 million from Iraqi Airways.

The money is scheduled to be paid in one or two tranches over the next few months.

According to Arab Times, an initial agreement for Iraq Airways to pay $300 million cash and convert the remaining $200 million to capital base for establishing Kuwait-Iraq Airways as a joint venture has been cancelled.

Iraq will now pay the debt in full as part of an out-of-court settlement; cases filed against Iraq Airways for damage to Kuwait Airways fleet during the Iraqi invasion of Kuwait in 1990 are to be dropped.
(Source: Arab Times)
http://www.iraq-businessnews.com/2017/07/07/iraq-to-pay-500m-to-kuwait-airways/
 
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McDan:  IMF and Zim

IMF Executive Board Concludes 2017 Article IV Consultation with Zimbabwe

 
July 7, 2017

On July 5, 2017, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation [1] with Zimbabwe.

Zimbabwe’s economy is facing difficulties. A severe drought and slow reform momentum have led to high expenditure levels since late 2015 despite subdued revenues. With limited access to foreign inflows, the ensuing fiscal imbalances have become unsustainable, and are being financed by rising domestic borrowing.

The expansionary fiscal stance, curtailed net capital flows, and declining investor confidence have resulted in cash shortages. In response the government has introduced capital and current account controls and quasi-currency instruments in the dollarized economy. An overvalued real exchange rate is hurting external competitiveness.

http://www.imf.org/en/News/Articles/2017/07/07/pr17267-imf-executive-board-concludes-2017-article-iv-consultation-with-zimbabwe?cid=em-COM-123-35561


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